Code of Federal Regulations 49 Parts 1200-1599

49
Part 1200 to End

Revised as of October 1, 2007
Transportation
Containing a codification of documents

of general applicability and future effect
As of October 1, 2007
With Ancillaries
Published by
Office of the Federal Register
National Archives and Records
Administration
A Special Edition of the Federal Register

mstockstill on PROD1PC66 with CFR
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Table of Contents
Page
Explanation ................................................................................................ v
Title 49:
Subtitle B—Other Regulations Relating to Transportation (Contin-

ued)
Chapter X—Surface Transportation Board, Department of Trans-

portation (Continued) .................................................................. 5
Chapter XI—Research and Innovative Technology Administration,

Department of Transportation [RESERVED] .............................. 236
Chapter XII—Transportation Security Administration, Depart-

ment of Homeland Security ......................................................... 237
Finding Aids:
Material Approved for Incorporation by Reference ............................ 415
Table of CFR Titles and Chapters ....................................................... 417
Alphabetical List of Agencies Appearing in the CFR ......................... 435
Redesignation Table ............................................................................ 445
List of CFR Sections Affected ............................................................. 447

iii
Cite this Code: CFR
To cite the regulations in

this volume use title,
part and section num-
ber. Thus, 49 CFR
1200.1 refers to title 49,
part 1200, section 1.
iv
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 agen-
cies 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 sub-
divided 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 deter-
mine 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, 2007), 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 Reg-
ister 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 usu-
ally 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.
Many agencies have begun publishing numerous OMB control numbers as amend-
ments to existing regulations in the CFR. These OMB numbers are placed as
close as possible to the applicable recordkeeping or reporting requirements.
OBSOLETE PROVISIONS
Provisions that become obsolete before the revision date stated on the cover
of each volume are not carried. Code users may find the text of provisions in
effect on a given date in the past by using the appropriate numerical list of
sections affected. For the period before January 1, 2001, consult either the List
of CFR Sections Affected, 1949–1963, 1964–1972, 1973–1985, or 1986–2000, published
in 11 separate volumes. For the period beginning January 1, 2001, a ‘‘List of CFR
Sections Affected’’ is published at the end of each CFR volume.
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 regu-
lations in the Federal Register by referring to materials already published else-
where. 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 mate-
rial 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 pub-
lished 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.
Properly approved incorporations by reference in this volume are listed in the
Finding Aids at the end of this volume.
What if the material incorporated by reference cannot be found? If you have any
problem locating or obtaining a copy of material listed in the Finding Aids of
this volume as an approved incorporation by reference, please contact the agency
that issued the regulation containing that incorporation. If, after contacting the
agency, you find the material is not available, please notify the Director of the
Federal Register, National Archives and Records Administration, Washington DC
20408, or call 202-741-6010.
CFR INDEXES AND TABULAR GUIDES
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volume, revised annually as of January 1, entitled CFR INDEX AND FINDING AIDS.
This volume contains the Parallel Table of Statutory Authorities and Agency
Rules (Table I). A list of CFR titles, chapters, and parts and an alphabetical
list of agencies publishing in the CFR are also included in this volume.
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is based on a consolidation of the ‘‘Contents’’ entries in the daily Federal Reg-
ister.
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revision dates of the 50 CFR titles.
vi
REPUBLICATION OF MATERIAL
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in the Code of Federal Regulations.
INQUIRIES
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odd-numbered pages.
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RAYMOND A. MOSLEY,
Director,
Office of the Federal Register.
October 1, 2007.
vii
THIS TITLE
Title 49—TRANSPORTATION is composed of nine volumes. The parts in these vol-

umes are arranged in the following order: Parts 1–99, parts 100–185, parts 186–
199, parts 200–299, parts 300–399, parts 400–599, parts 600–999, parts 1000–1199, part
1200 to End. The first volume (parts 1–99) contains current regulations issued
under subtitle A—Office of the Secretary of Transportation; the second volume
(parts 100–185) and the third volume (parts 186–199) contain the current regula-
tions issued under chapter I—Pipeline and Hazardous Materials Safety Adminis-
tration (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 400–599) con-
tains the current regulations issued under chapter IV—Coast Guard (DHS), chap-
ter V—National Highway Traffic Safety Administration (DOT); the seventh vol-
ume (parts 600–999) contains 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 Trans-
portation Board, chapter XI—Research and Innovative Technology Administra-
tion, 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, 2007.
In the volume containing parts 100–185, see § 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 Administra-

tion, Department of Transportation and chapter XII—Transportation Security
Administration, Department of Transportation appear in the Finding Aids sec-
tion of the fifth and ninth volumes.
For this volume, Elmer Barksdale was Chief Editor. The Code of Federal Regu-
lations publication program is under the direction of Michael L. White, assisted
by Ann Worley.
ix
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Title 49—Transportation
(This book contains part 1200 to end)
Part
SUBTITLE B—OTHER REGULATIONS RELATING TO TRANSPORTATION

(CONTINUED)
CHAPTER X—Surface Transportation Board, Department of

Transportation (Continued) ............................................... 1200
CHAPTER XI—Research and Innovative Technology Adminis-
tration, Department of Transportation [Reserved]
CHAPTER XII—Transportation Security Administration, De-
partment of Homeland Security ........................................ 1510
Subtitle B—Other Regulations
Relating to Transportation
(Continued)
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 Inter-
state Commerce Act ............................................. 7
1201 Railroad companies ................................................. 8
1202–1219 [Reserved]
PARTS 1220–1239—PRESERVATION OF RECORDS
1220 Preservation of records ........................................... 164

PARTS 1240–1259—REPORTS
1241 Annual, special, or periodic reports—Carriers sub-

ject to Part I of the Interstate Commerce Act ..... 169
1242 Separation of common operating expenses between
freight service and passenger service for rail-
roads ..................................................................... 170
1243 Quarterly operating reports—railroads ................... 183
1244 Waybill analysis of transportation of property—
railroads ............................................................... 185
1245 Classification of railroad employees; reports of
service and compensation .................................... 191
1246 Number of railroad employees ................................ 205
1247 Report of cars loaded and cars terminated ............. 205
1248 Freight commodity statistics ................................. 205
49 CFR Ch. X (10–1–07 Edition)
Part Page
1253 Rate-making organization; records and reports ...... 211
PARTS 1260–1269—VALUATION
PARTS 1280–1299—CLASSIFICATION AND DECLASSIFICATION OF NATIONAL
SECURITY INFORMATION AND MATERIAL
1280 Handling of national security information and

classified material ................................................ 212
SUBCHAPTER D—CARRIER RATES AND SERVICE TERMS
1300 Disclosure, publication, and notice of change of

rates and other service terms for rail common
carriage ................................................................ 215
1301 [Reserved]
1302 Export and import shipments; railroads ................. 217
1305 Disclosure and notice of change of rates and other
service terms for pipeline common carriage ........ 217
1310 Tariff requirements for household goods carriers ... 219
1312 Regulations for the publication, posting and filing
of tariffs for the transportation of property by or
with a water carrier in noncontiguous domestic
trade ..................................................................... 221
1313 Railroad contracts for the transportation of agri-
cultural products .................................................. 227
1319 Exemptions ............................................................. 233
1325 Extension of credit to candidates for Federal office
or their representatives ....................................... 233
1331 Applications under 49 U.S.C. 10706 and 13703 ........... 234
1332 Filing contracts for surface mail transportation .... 235
SUBCHAPTER C—ACCOUNTS, RECORDS AND REPORTS
Parts 1200–1219—Uniform Systems (b) Carriers’ and Interested Parties’

of Accounts Comments on the ASC. The ASC issued
by the Office of Economics, Environ-
mental Analysis, and Administration
PART 1200—GENERAL ACCOUNT- will remain effective until revoked by
ING REGULATIONS UNDER THE the Office of Economics, Environ-
INTERSTATE COMMERCE ACT mental Analysis, and Administration.
After an ASC is issued, the Office of
Sec. Economics, Environmental Analysis,
1200.1 Financial statements released by car-
and Administration shall allow carriers
riers.
1200.2 Adoption of generally accepted ac-
and interested parties 45 days following
counting principles issued by the Finan- the service date of the ASC during
cial Accounting Standards Board which the respondents may submit to
(FASB). the Office their comments and reasons
AUTHORITY: 49 U.S.C. 721, 11142, 11143, 11144, either supporting or opposing the ASC.
11145. (c) Formal Adoption of the New Ac-
counting Standards. After considering
§ 1200.1 Financial statements released the comments submitted in response to
by carriers. the ASC, and based on the proposal of
Carriers desiring to do so may pre- the Office of Economics, Environ-
pare and publish financial statements mental Analysis, and Administration,
in reports to stockholders and others, the Board will decide whether or not to
except in reports to this Board, based adopt the new accounting standards
on generally accepted accounting prin- specified in the ASC by revising the
ciples for which there is authoritative Uniform Systems of Accounts, (49 CFR
support, provided that any variance 1201 through 1210).
from this Board’s prescribed account- (d) Accounting Standards Not Appro-
ing rules contained in such statements priate for Board’s Use. The Office of Ec-
is clearly disclosed in footnotes to the onomics, Environmental Analysis, and
statements. Administration may determine that a
[32 FR 20123, Dec. 20, 1967] new FASB Statement of Financial Ac-
counting Standards is not appropriate
§ 1200.2 Adoption of generally accept- for use by carriers under the Board’s
ed accounting principles issued by jurisdiction. In such instances, the Of-
the Financial Accounting Standards fice shall issue an ASC to advise the
Board (FASB). carriers that the new standards shall
(a) Accounting Series Circulars. Fol- not be used in their reports filed with
lowing the release of a Statement of the Board. The carriers and interested
Financial Accounting Standards by the parties shall be allowed 45 days fol-
FASB, and provided that the Office of lowing the ASC’s service date to sub-
Economics, Environmental Analysis, mit comments to the Board. The Board
and Administration of the Board con- will then determine whether or not to
siders such standards appropriate for revise the Uniform Systems of Ac-
the Board’s accounting regulations, the counts to conform to the new account-
Office of Economics, Environmental ing standards.
Analysis, and Administration shall
issue an Accounting Series Circular [43 FR 26314, June 19, 1978, as amended at 67
(ASC) requiring carriers under the FR 57533, Sept. 11, 2002]
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 ac-
counting procedures that the carriers

shall follow.
Pt. 1201 49 CFR Ch. X (10–1–07 Edition)
PART 1201—RAILROAD 2–19 List of units of property.

2–20 Accounting for leases.
COMPANIES 2–21 Freight train car repair costing.
2–22 Map specifications.
Subpart A—Uniform System of Accounts 2–23 Accounting for engineering costs.
2–24 Accounting for other general expendi-
LIST OF INSTRUCTIONS AND ACCOUNTS tures.
REGULATIONS PRESCRIBED INSTRUCTIONS FOR MAINTENANCE EXPENSES
(i) Regulations prescribed. 3–1 Items to be charged.
(ii) Definitions.
INSTRUCTIONS FOR DEPRECIATION ACCOUNTS
GENERAL INSTRUCTIONS
4–1 Method.
Sec. 4–2 Rates of depreciation.
1–1 Classification of carriers.
4–3 Depreciation records to be kept.
1–2 Classification of accounts.
4–4 Leased property—depreciation.
1–3 Records.
4–5 Jointly used property—depreciation.
1–4 Accounting period.
1–5 Accrual method of accounting. INSTRUCTIONS FOR INCOME AND BALANCE SHEET
1–6 Charges to be just and reasonable. ACCOUNTS
1–7 Changes in accounting estimates.
1–8 Accounting for computer systems and 5–1 Current assets.
word processing costs. 5–2 Recorded value of securities owned.
1–9 Transactions with affiliated companies. 5–3 Discounts, expenses, and premiums on
1–10 Accounting for income taxes. debt.
1–11 Items in texts of accounts. 5–4 Discount, premium, and assessment on
1–12 Distribution of pay and expenses of em- capital stock.
ployees. 5–5 Joint liabilities.
1–13 Payroll related expenses. 5–6 Contingencies.
1–14 Submission of questions. 5–7 Long-term obligations.
1–15 Transfers from government authori-
ties. INSTRUCTIONS FOR CLEARING ACCOUNTS
1–16 Business entertainment expenses. 6–1 Items to be charged.
1–17 Disclosure guideline. 6–2 Material and stationery store expenses.
1–18 Distribution of expenses for material, 6–3 Shop expenses.
tools, fuel, lubricants, purchased services 6–4 Gravel and sand pits and quarries.
and general. 6–5 Power plant operations.
INSTRUCTIONS FOR PROPERTY ACCOUNTS PROPERTY ACCOUNTS
2–1 Items to be charged.
Road
2–2 Minimum rule applicable to additions to
property. 0 Road.
2–3 Land. 2 Land for transportation purposes.
2–4 Structures. 3 Grading.
2–5 Equipment. 4 Other right-of-way expenditures.
2–6 Components of construction cost. 5 Tunnels and subways.
2–7 Additions to and retirements of prop- 6 Bridges, trestles, and culverts.
erty—General. 7 Elevated structures.
2–8 Additions to and retirements of units of 8 Ties.
property. 9 Rails and other track material.
2–9 Additions and retirements of other than 11 Ballast.
units of property. 13 Fences, snowsheds, and signs.
2–10 Additions to and retirements of track. 16 Station and office buildings.
2–11 Expenses in connection with additions 17 Roadway buildings.
and betterments. 18 Water stations.
2–12 Units of property rebuilt or converted. 19 Fuel stations.
2–13 Changes in line of road and relocation 20 Shops and enginehouses.
of yard tracks. 22 Storage warehouses.
2–14 Track connections. 23 Wharves and docks.
2–15 Merger, consolidation, and purchase of 24 Coal and ore wharves.
a railway operating entity or system. 25 TOFC/COFC terminals.
2–16 Reorganization of railway. 26 Communication systems.
2–17 Construction projects in which govern- 27 Signals and interlockers.
mental agencies, individuals, or others, 29 Power plants.
and the carrier participate. 31 Power-transmission systems.
2–18 Leased property improvements and re- 35 Miscellaneous structures.

tirements. 37 Roadway machines.
Surface Transportation Board, DOT Pt. 1201
39 Public improvements; construction. 600000 General.
44 Shop machinery. 610000 Other expenses.
45 Power-plant machinery. 620000 Depreciation.
630000 Uncollectible accounts.
Equipment 640000 Property taxes.
50 Equipment. 650000 Other taxes.
52 Locomotives. INCOME ACCOUNTS
53 Freight-train cars.
54 Passenger-train cars. Ordinary Items
55 Highway revenue equipment.
56 Floating equipment. 501 Railway operating revenues.
57 Work equipment. 502 Railway operating revenues—transfers
58 Miscellaneous equipment. from government authorities for current
59 Computer systems and word processing operations.
equipment. 503 Railway operating revenues—amortiza-
tion of deferred transfers from govern-
General Expenditures ment authorities.
506 Revenues from property used in other
70 General expenditures.
than carrier operations.
76 Interest during construction.
510 Miscellaneous rent income.
Other Property Accounts 512 Separately operated properties; profit.
513 Dividend income.
80 Other elements of investment. 514 Interest income.
90 Construction in progress. 516 Income from sinking and other funds.
517 Release of premiums on funded debt.
RAILWAY OPERATING REVENUE ACCOUNTS
518 Reimbursement received under con-
Transportation Revenue Accounts tracts and agreements.
519 Miscellaneous income.
100 Transportation; rail line. 531 Railway operating expenses.
101 Freight. 534 Expenses of property used in other than
102 Passenger. carrier operations.
103 Passenger-related. 544 Miscellaneous taxes.
104 Switching. 545 Separately operated properties; loss.
105 Water transfers. 546 Interest on funded debt.
106 Demurrage. 547 Interest on unfunded debt.
110 Incidental. 548 Amortization of discount on funded
debt.
Joint Facility Revenue Accounts
549 Maintenance of investment organiza-
120 Joint facility. tion.
121 Joint facility—credit. 550 Income transferred under contracts and
122 Joint facility—debit. agreements.
551 Miscellaneous income charges.
OPERATING EXPENSE ACCOUNT 553 Uncollectible accounts.
555 Unusual or infrequent items (debit)
Operating Expense Accounts Explanations
credit.
100000 Personnel. 556 Income taxes on ordinary income.
110000 Salaries and wages. 557 Provision for deferred taxes.
120000 Fringe benefits. 560 Income or loss from operations of dis-
200000 Materiel. continued segments.
210000 Materials, tools, supplies, fuels, lu- 562 Gain or loss on disposal of discontinued
bricants. segments.
300000 Purchased services. 570 Extraordinary items (net).
310000 Lease rentals—Debit. 590 Income taxes on extraordinary items.
320000 Lease rentals—Credit. 591 Provision for deferred taxes—extraor-
330000 Joint facility rents—Debit. dinary items.
340000 Joint facility rents—Credit. 592 Cumulative effect of changes in ac-
350000 Other rents—Debit. counting principles.
360000 Other rents—Credit.
370000 Joint facility—Debit. RETAINED EARNINGS ACCOUNTS
380000 Joint facility—Credit.
Credit
390000 Repairs billed by others—Debit.
400000 Repairs billed to others—Credit. 601 Credit balance (at beginning of calendar
410000 Other purchased services. year).
500000 Claims and insurance. 601.5 Prior period adjustments to beginning
510000 Loss and damage claims. retained earnings account.
520000 Other casualties. 602 Credit balance transferred from income.

530000 Insurance. 603 Appropriations released.
606 Other credits to retained earnings. 737 Property used in other than carrier op-
erations.
Debit 738 Accumulated depreciation; property
611 Debit balance (at beginning of calendar used in other than carrier operations.
year). INTANGIBLE PROPERTY
612 Debit balance transferred from income.
616 Other debits to retained earnings. 739 Organization expenses.
620 Appropriations for sinking and other
OTHER ASSETS AND DEFERRED DEBITS
funds.
621 Appropriations for other purposes. 741 Other assets.
623 Dividends. 743 Other deferred debits.
744 Accumulated deferred income tax deb-
GENERAL BALANCE SHEET ACCOUNTS its.
EXPLANATIONS
Liabilities and Shareholders’ Equity
Assets
CURRENT LIABILITIES
CURRENT ASSETS
751 Loans and notes payable.
701 Cash. 752 Accounts payable; interline and other
702 Temporary cash investments. balances.
703 Special deposits. 753 Audited accounts and wages payable.
704 Loans and notes receivable. 754 Accounts payable; other.
705 Accounts receivable; interline and other 755 Interest payable.
balances. 756 Dividends payable.
706 Accounts receivable; customers. 757 Payables to affiliated companies.
707 Accounts receivable; other. 759 Accrued accounts payable.
708 Interest and dividends receivable. 760 Federal income taxes accrued.
708.5 Receivables from affiliated companies. 761 State and other income taxes accrued.
709 Accrued accounts receivable. 761.5 Other taxes accrued.
709.5 Allowance for uncollectible accounts. 762 Deferred income tax credits.
710 Working funds. 763 Other current liabilities.
764 Equipment obligations and other long-
711 Prepayments.
term debt due within one year.
712 Material and supplies.
713 Other current assets. LONG-TERM DEBT DUE AFTER ONE YEAR
714 Deferred income tax debits.
765 Funded debt unmatured.
SPECIAL FUNDS 766 Equipment obligations.
766.5 Capitalized lease obligations.
715 Sinking funds. 767 Receivers’ and trustees’ securities.
716 Capital funds. 768 Debt in default.
717 Other funds. 769 Accounts payable; affiliated companies.
770.1 Unamortized debt discount.
INVESTMENTS
770.2 Unamortized premium on debt.
721 Investments and advances; affiliated
companies. OTHER LONG-TERM LIABILITIES
721.5 Adjustments; investments and ad- 771 Accrued liability; pension and welfare.
vances—affiliated companies. 772 Accrued liability; leased property.
722 Other investments and advances. 774 Accrued liability; casualty and other
723 Adjustments; other investments and ad- claims.
vances. 775 Other accrued liabilities.
724 Allowance for net unrealized loss on 781 Interest in default.
noncurrent marketable equity securi- 782 Other liabilities.
ties—Cr. 783 Deferred revenues—transfers from gov-
ernment authorities.
TANGIBLE PROPERTY
DEFERRED CREDITS
731 Road and equipment property.
732 Improvements on leased property. 784 Other deferred credits.
733 Accumulated depreciation; improve- 786 Accumulated deferred income tax cred-
ments on leased property. its.
734 Accumulated amortization; improve-
ments on leased property—defense SHAREHOLDERS’ EQUITY
projects. 791 Capital stock.
735 Accumulated depreciation; road and 792 Capital stock to be distributed.
equipment property. 793 Discount on capital stock.
736 Accumulated amortization; road and 794 Premiums and assessments on capital
equipment property—defense project. stock.
10
795 Other capital. issued or assumed by the carrier means
797 Retained earnings; appropriated. those which have been actually issued
798 Retained earnings; unappropriated. and are neither retired and canceled
798.1 Net unrealized loss on noncurrent
marketable securities. nor reacquired and held by or for the
798.5 Treasury stock accounting company.
5. (a) Affiliated companies means com-
Conversion Tables panies or persons that directly, or indi-
rectly through one or more inter-
Subpart B—Branch Line Accounting
mediaries control, or are controlled by,
System
or are under common control with, the
900 Definitions. accounting carrier.
910 Purpose and scope. (b) Control (including the terms con-
920 Collection of data. trolling, controlled by, and under common
930 Publication of data. control with) means the possession di-
940 Annual branch line report.
rectly or indirectly, of the power to di-
950 Text and chart of accounts.
rect or cause the direction of the man-
APPENDIX I TO PART 1201—CERTIFICATION OF
agement and policies of a company,
BRANCH LINE ACCOUNTING SYSTEM
RECORDS whether such power is exercised
through one or more intermediary
AUTHORITY: 49 U.S.C. 11142 and 11164. companies, or alone, or in conjunction
with, or pursuant to an agreement, and
Subpart A—Uniform System of whether such power is established
Accounts through a majority of minority owner-
ship or voting of securities, common
SOURCE: 42 FR 35017, July 7, 1977, unless directors, officers or stockholders, vot-
otherwise noted. ing trusts, holding trusts, associated
companies, contract or any other di-
LIST OF INSTRUCTIONS AND ACCOUNTS rect or indirect means.
6. Amortization means the gradual ex-
REGULATIONS PRESCRIBED tinguishment of an amount in an ac-
count by distributing such amount
(i) Regulations prescribed. Carriers by over a fixed period dependent on the re-
railroad subject to provisions of the quirements of regulatory bodies, over
Interstate Commerce Act and not inde- the life of the asset or liability to
pendently operated as electric lines, which it applies, or over the period dur-
and each lessor of such a carrier, shall ing which it is anticipated the benefit
comply with regulations in this part as will be realized.
presented hereinafter. 7. Carrier as used herein and when not
(ii) Definitions. otherwise indicated in the context
1. Abandonment means the with- means any carrier to which this system
drawal from transportation service of a of accounts is applicable.
branch line or other track segment or 8. Consolidation means the formation
facility, representing a permanent re- of a new company. See instruction 2–15.
duction in plant. 9. Board means the Surface Transpor-
2. Accounts means the accounts pre- tation Board.
scribed in this system of accounts. 10. Compensating balance means the
3. Actually issued as applied to funded portion of any demand deposit (or any
debt securities or capital stock issued time deposit or certificate of deposit)
or assumed by the company, means maintained by a carrier (or by any per-
those which have been sold to bona fide son on behalf of the carrier) which con-
purchasers or holders for a valuable stitutes support for existing borrowing
consideration (including those issued arrangements of the carrier with a
in exchange for other securities or lending institution. Such arrangements
other property) and such purchasers or include both outstanding borrowings
holders secured them free from control and the assurance of future credit
by the carriers. Also securities issued availability. (The compensating bal-
as dividends on stock. ance requirement should be adjusted by
4. Actually outstanding as applied to the amount of float unless such adjust-

funded debt securities or capital stock ment would cause the compensating
11
balance to be greater than the cash value of the consideration received

balance per carrier’s books.) The float from their sale.
adjustment is made by subtracting the 16. Equity security encompasses any
float from the compensating balance instrument representing ownership
requirement if the collected bank ledg- shares (e.g., common, preferred and
er balance exceeds the cash balance per other capital stock), or the right to ac-
carrier’s books or by adding the float quire (e.g., warrants, rights, and call
to the compensating balance require- options) or dispose of (e.g., put options)
ment if the collected bank ledger bal- ownership shares in an enterprise at
ance is less than the cash balance per fixed or determinable prices. The term
carrier’s books. does not encompass preferred stock
(a) Float means deposits and with- that by its terms either must be re-
drawals in transit which constitute a deemed by the issuing enterprise or is
difference between the collected bank redeemable at the option of the inves-
ledger balance and the cash balance per tor, nor does it include treasury stock
carrier’s books. or convertible bonds.
11. Cost center refers to an organiza- (a) Marketable, as applied to an eq-
tional subdivision for which cost data uity security, means an equity security
are desired and for which provision is as to which sales prices or bid and ask
made to accumulate costs such as a prices are currently available on a na-
terminal, yard, or track segment. A tional securities exchange (i.e., those
cost center may correspond to a given registered with the Securities and Ex-
area of responsibility for which costs change Commission) or in the over-the-
are presently accumulated for planning counter market. In the over-the-
and control. A cost center is the small- counter market, an equity security
est segment of activity or area of re- shall be considered marketable when a
sponsibility for which costs are accu- quotation is publicly reported by the
mulated and directly traceable. National Association of Securities
12. Cost of renewal means the cost of Dealers Automatic Quotations System
additional material applied (other than or by the National Quotations Bureau,
the value assigned second-hand parts Inc. (provided, in the latter case, that
remaining in the rebuilt unit) plus the quotations are available from at least
cost of labor used in the rebuilding three dealers). Equity securities traded
process, exclusive of the portion appli- in foreign markets shall be considered
cable to dismantling and repair of old marketable when such markets are of a
parts reused. breadth and scope comparable to those
13. Cost of removal means cost of de- referred to above. This definition is not
molishing, dismantling, tearing down met by restricted stock (securities for
or otherwise removing property. which sale is restricted by a govern-
14. Debt issue cost means all costs in mental or contractual requirement ex-
connection with the issuance and sale cept where such requirement termi-
of evidences of debt, such as fees for nates within one year or where the
drafting mortgages and trust deeds; holder has the power to cause the re-
fees for issuing or recording evidences quirement to be met within one year).
of debt; cost of engraving and printing Any portion of the stock which can
bonds and certificates of indebtedness; reasonably be expected to qualify for
fees paid trustees, specific costs of ob- sale within one year, such as may be
taining governmental authority; fees the case under Rule 144 or similar rules
for legal services; fees and commissions of the Securities and Exchange Com-
paid underwriters, brokers and sales- mission, is not considered restricted.
people for marketing such evidences (b) Market value refers to the aggre-
for debt; fees and costs of listing on ex- gate of the market price of a single
changes; and other like costs. share or unit times the number of
15. Discount as applied to funded debt shares or units of each marketable eq-
securities or capital stock issued or as- uity security in the portfolio. When an
sumed by the carrier, means the excess equity has taken positions involving
of the par or face value of the securi- short sales, sales of calls, and pur-
ties plus interest or dividends accrued chases of puts for marketable equity
at the date of the sale over the cash securities and the same securities are
12
included in the portfolio, those con- and into the determination of taxable
tracts shall be taken into consider- income in another period, (2) deduc-
ation in the determination of market tions or credits that may be carried
value of the marketable equity securi- backward or forward for income tax
ties. purposes and (3) adjustments of prior
(c) Cost, as applied to a marketable periods and direct entries to other
equity security, refers to the original stockholders’ equity accounts which
cost unless a new cost basis has been enter into the determination of taxable
assigned based on recognition of an im- income in a period but which do not
pairment of value that was deemed enter into the determination of pretax
other than temporary or as the result accounting income of that period. A
of a transfer between current and non- permanent difference does not result in
current classifications. In such cases, a tax effect as that term is used in this
the new cost basis assigned shall be definition.
considered cost. (h) Deferred taxes means tax effects
17. (a) Income taxes means taxes based which are deferred for allocation to in-
on income determined under provisions come tax expense of future periods.
of the United States Internal Revenue (i) Interperiod tax allocation means the
Code and foreign, state and other taxes process of apportioning income taxes
(including franchise taxes) based on in- among periods.
come. (j) Tax allocation within a period
(b) Income tax expense means the means the process of apportioning in-
amount of income taxes (whether or come tax expenses applicable to a
not currently payable or refundable) given period between income before ex-
allocable to a period in the determina- traordinary items and extraordinary
tion of net income. items, and of associating the income
(c) Pretax accounting income means in- tax effects of adjustments of prior peri-
come or loss for a period, exclusive of ods and direct entries to other stock-
related income tax expense. holders’ equity accounts with these
(d) Taxable income means the excess items.
of revenues over deductions or the ex- 18. (a) Investor means a business enti-
cess of deductions over revenue to be ty that holds an investment in voting
reported for income tax purposes for a stock of another company.
period. (b) Investee means a corporation that
(e) Timing differences means dif- issued voting stock held by an inves-
ferences between the periods in which tor.
transactions affect taxable income and (c) Corporate joint venture is a com-
the periods in which they enter into pany owned and operated as a separate
the determination of pretax accounting and specific business or project for the
income. Timing differences originate in mutual benefit of the members of the
one period and reverse or turn around group. Joint facilities for purposes of
in one or more subsequent periods. this system of accounts are not consid-
Some timing differences reduce income ered corporate joint ventures.
taxes that would otherwise be payable (d) Dividends when applied to dis-
currently; others increase income taxes tributions received from investees un-
that would otherwise be payable cur- less otherwise specified, means divi-
rently. dends received or receivable in cash,
(f) Permanent differences means dif- other assets, or another class of stock
ferences between taxable income and and does not include stock dividends or
pretax accounting income arising from stock splits.
transactions that, under applicable tax (e) Earnings or losses of an investee and
laws and regulations, will not be offset financial position of an investee refer to
by corresponding differences or turn net income (or net loss) and financial
around in other periods. position of an investee determined in
(g) Tax effects means differentials in accordance with generally accepted ac-
income taxes of a period attributable counting principles.
to (1) revenue or expense transactions (f) Undistributed earnings of an
which enter into the determination of investee means net income less divi-
pretax accounting income in one period dends declared whether received or not.
13
(g) Date of acquisition is the date on means those which, after being actu-
which the investor assumes the rights ally issued, have been reacquired by or
of ownership. Ordinarily, this is the for the accounting company under such
date assets are received and other as- circumstances which require them to
sets are given or securities issued. be considered as held alive and not re-
19. Joint facility means any owned or tired and canceled.
leased carrier operating property occu- 27. Premium as applied to funded debt
pied or operated jointly by the carrier securities or capital stock issued or as-
and one or more other carriers, under sumed by the carrier, means the excess
an arrangement whereby the cost and of the cash value of the consideration
income are apportioned to the parties received from their sale over the sum
to the joint agreement. Portions of a of their par (stated value of no par
structure or other property used exclu- stock) or face value and interest or
sively by each of two or more carriers dividends accrued at the date of sale.
are not joint facilities. 28. Programmed track replacements are
20. Ledger value of an account means costs incurred as part of a track re-
the undepreciated or unamortized cost placement program or planned expendi-
of acquisition of the item to the car- tures. Programmed track replacements
rier, recorded in the general ledger. In are generally performed by relatively
case the cost of any item of property is large work gangs which, on the basis of
not shown separately in the ledger, the programmed and authorized work or-
ledger value of that item shall be its ders, use heavy mechanized equipment
proportionate share of the value of the to replace rail, ties and other track
entire group in which the particular material. For guidance on what not to
property is included. capitalize, see the notes to the text of
21. Merger means the acquisition of Accounts 8, 9 and 11.
one company by another. See instruc- 29. Property retired means units of
tion 2–15. property which have been removed,
22. Minor items of property means the sold, abandoned, destroyed, or which
associated parts or items of which for any cause have been permanently
units of property are composed. withdrawn from service; also minor
23. Net railway operating income: Oper- items of property not replaced.
ating revenue remaining after deduct- 30. Rail Transportation Property. Rail
ing operating expenses, income taxes transportation property is all property
on ordinary income, and the provision and other assets, irrespective of owner-
for deferred income taxes. Also, in ar- ship, that comprise the entire oper-
riving at NROI, deduct the Income ating unit devoted to rail transpor-
from Lease of Road and Equipment and tation service. This definition com-
add the Rent for Leased Road and prises the following accounts:
Equipment, formerly accounts 509 and 701 Cash
542, respectively. 703 Special deposits
24. Net salvage value means salvage 704 Loans and notes receivable
value of property retired less the cost 705 Accounts receivable—interline and
of removal. other balances
25. Nominally issued as applied to 706 Accounts receivable—customers
funded debt securities or capital stock 707 Accounts receivable—other
708.5 Receivable with affiliated companies
issued or assumed by the carrier, 709 Accrued accounts receivable
means those which have been signed, 710 Working funds
certified by trustees, or otherwise exe- 711 Prepayments
cuted, and placed with the proper offi- 712 Material and supplies
cer for sale and delivery, or pledged, or 713 Other current assets
otherwise placed in some special fund 714 Deferred income tax charges
of the accounting company, but which 731 Road and equipment property
732 Improvements on leased property
have not been sold or issued directly to
the trustees of such fund in accordance 31. Salvage value means the amount
with contractual requirements. received from the sale of operating
26. Nominally outstanding as applied property retired less any expenses in
to funded debt securities or capital connection with the sale or in pre-

stock issued or assumed by the carrier, paring the property for sale. If the
14
property is retained for reuse, the sal- and which is used in the carrier’s work
vage value shall be recorded in account service. See equipment listing for ac-
712, Materials and Supplies, or other count 57, Work equipment.
appropriate account at an amount not
[42 FR 35017, July 7, 1977, as amended at 44
to exceed its recorded cost (actual or FR 3493, Jan. 19, 1979; 45 FR 31110, May 12,
average), or current market value, 1980; 48 FR 7183, Feb. 18, 1983; 48 FR 33718,
whichever is lower. July 25, 1983; 49 FR 2254, Jan. 19, 1984; 52 FR
32. Segment of a business refers to a 4321, Feb. 11, 1987]
component of an entity whose activi-
ties represent a separate major line of GENERAL INSTRUCTIONS
business or class of customer. A seg-
ment may be in the form of a sub-
1–1 Classification of carriers. (a) For
sidiary, a division, or a department,
purposes of accounting and reporting,
and in some cases a joint venture or
carriers are grouped into the following
other non-subsidiary investee, provided
three classes:
that its assets, results of operations,
and activities can be clearly distin- Class I: Carriers having annual car-
guished, physically and operationally rier operating revenues of $250 million
and for financial reporting purposes, or more after applying the railroad rev-
from the other assets, results of oper- enue deflator formula shown in Note A.
ations, and activities of the entity. The Class II: Carriers having annual car-
fact that the results of operations of rier operating revenues of less than
the segment being sold or abandoned $250 million but in excess of $20 million
cannot be separately identified strong- after applying the railroad revenue
ly suggests that the transaction should deflator formula shown in Note A.
not be classified as a disposal of a seg- Class III: Carriers having annual car-
ment of business. rier operating revenues of $20 million
(a) Measurement date means the date or less after applying the railroad rev-
on which the management having au- enue deflator formula shown in Note A.
thority to approve the action commits (b)(1) The class to which any carrier
itself to a formal plan to dispose of a belongs shall be determined by annual
segment of the business, whether by carrier operating revenues after the
abandonment or sale. The measure- railroad revenue deflator adjustment.
ment date for disposals requiring Com- Families of railroads operating within
mission approval shall be the service the United States as a single, inte-
date of the Order authorizing the dis- grated rail system will be treated as a
posal. single carrier for classification pur-
(b) Disposal date refers to the date of poses. Upward and downward reclassi-
closing the sale, if the disposal is by fication will be effected as of January 1
sale or the date that operations cease if in the year immediately following the
the disposal is by abandonment. third consecutive year of revenue qual-
33. Service life means the period be- ification.
tween the date when operating prop- (2) If a Class II or Class III carrier’s
erty is placed in service and the date of classification is changed based on three
its retirement. years’ adjusted revenues the carrier
34. Service value means the ledger shall complete and file the Classifica-
value of operating property less its sal- tion Index Survey Form with the Board
vage value (see definition 17). by March 31 of the year following the
35. Track maintenance is material and end of the period to which it relates.
labor costs of routine track repairs (3) Newly organized carriers shall be
such as sporadic tie replacement, reclassified on the basis of their annual
pair of broken rails, tightening track carrier operating revenues after rail-
bolts and track spikes. A more com- road revenue deflator adjustment for
plete list of maintenance items are in- the latest period of operation. If actual
cluded in notes to the text of Accounts data are not available, new carriers
8, 9 and 11. shall be classified on the basis of their
36. Work equipment means equipment carrier operating revenues known and
which can be coupled in a train for estimated for a year (after railroad
movement over the carrier’s tracks, revenue deflator adjustment).
15
(4) When a business combination oc- come account and the equity section of
curs, such as a merger, reorganization, the balance sheet. They are provided to
or consolidation, the surviving carrier record the transfer of net income or
shall be reclassified effective January 1 loss for the year; certain capital trans-
of the next calendar year on the basis actions; and, when authorized by the
of the combined revenue for the year Board, other items.
when the combination occurred (after (b) The cost of property, and the rev-
railroad revenue deflator adjustment). enues, expenses, taxes and rents for
(5) In unusual circumstances, such as miscellaneous operations involving the
partial liquidation and curtailment or use of such facilities as hotels, res-
elimination of contracted services, taurants, grain elevators, storage
where regulations will unduly burden warehouses, power plants, cold storage
the carrier, the carrier may request the
plants, etc., shall not be included in
Board for an exception to the regula-
the accounts prescribed for transpor-
tions. This request shall be in writing
tation operations unless the operation
specifying the conditions justifying an
exception. of the facilities is conducted by the
(c) Class I carriers shall keep all of railway companies in connection with
the accounts of this system which are furnishing transportation services.
applicable to their operations. Class II Likewise, the cost of property, the rev-
and III carriers are not required to enues, expenses, taxes, and rents aris-
maintain the accounts of this system. ing from the operation of stockyards
(d) All switching and terminal com- shall not be included in accounts pre-
panies, regardless of their operating scribed for transportation operations
revenues will be designated Class III unless operation of the facilities is con-
carriers. ducted in connection with transpor-
(e) Unless provided for otherwise, all tation of livestock. It is not intended
electric railway carriers, regardless of that cost of property and income aris-
operating revenues, will be designated ing from incidental public stockyards
Class III carriers. service rendered by stockyards pri-
marily devoted to transportation serv-
NOTE A: The railroad revenue deflator for-
mula is based on the Railroad Freight Price
ices shall be excluded from transpor-
Index developed by the Bureau of Labor Sta- tation operation accounts.
tistics. The formula is as follows: (c) Joint facility accounts are pro-
Current Year’s Revenues × (1991 Average vided for the joint users of tracks,
Index/Current Year’s Average Index) bridges, yards, wharves, stations, and
NOTE B: See related regulations 49 CFR other facilities in which to record
1241.15 Railroad classification survey form. items in settlement for use of such fa-
[57 FR 27185, June 18, 1992; 57 FR 31754, July cilities. When the compensation for the
17, 1992; 66 FR 56245, Nov. 7, 2001; 67 FR 57533, use of facilities is a fixed amount or is
Sept. 11, 2002] based upon a charge per passenger, ton,
1–2 Classification of accounts. (a) Ac- car or other unit, the amount shall be
counts are prescribed to cover cost of fairly apportioned by the operating
property used in transportation oper- company among the joint facility oper-
ations and operations incidental there- ating expense and income accounts.
to and for revenues, expenses, taxes, The creditor shall show the distribu-
rents, and other items of income for tion of these charges upon its bills, and
such operations. Separate accounts are such distribution shall be adhered to
prescribed for investment in property by the debtor. Train service in connec-
not used in transportation operations tion with the line haul of traffic, in-
and for other investments and income cluding that operated under a joint ar-
therefrom; for unusual and infrequent rangement for the benefit of two or
items; for operations and disposal of more carriers, is not considered a joint
discontinued segments; for extraor- facility operation.
dinary items and accounting changes; (d)(1) Extraordinary Items. All items of
and for assets, liabilities and capital profit and loss recognized during the
includable in the balance sheet state- year are includable in ordinary income
ment. Retained earnings accounts form unless evidence clearly supports their
the connecting link between the in- classification as extraordinary items.
16
Extraordinary items are character- (1) Correction of an error in the fi-

ized by both their unusual nature and nancial statements of a prior period,
infrequent occurrence taking into ac- and
count the environment in which the (2) Adjustments that result from re-
firm operates; they must also meet the alization of income tax benefits of
materiality standard. preacquisition operating loss
Unusual means the event or trans- carryforwards of purchased subsidi-
action must possess a high degree of aries.
abnormality and be of a type clearly With the exception of the two items
unrelated to, or only incidentally re- just mentioned, all items of profit and
lated to the ordinary and typical ac- loss recognized during a period shall be
tivities of the entity. included in the determination of net
Infrequent occurrence means the income for that period.
NOTE: The carrier shall follow generally
event or transaction shall be of a type accepted accounting principles where an in-
not reasonably expected to recur in the terpretation of the rules is needed or obtain
foreseeable future. an interpretation from its public accountant
(2) Unusual or Infrequent Items. Mate- or the Board.
rial events unusual in nature or infre- (5) Accounting Changes. Errors in fi-
quent in occurrence but not both, thus nancial statements result from mathe-
not meeting both criteria for classi- matical mistakes, mistakes in the ap-
fication as extraordinary, shall be in- plication of accounting principles, or
cludable in the accounts provided as oversight or misuse of facts that ex-
separate components of income/expense isted at the time the financial state-
from continuing operations. ments were prepared. In contrast, a
(3) Discontinued Operations. The re- change in an accounting estimate re-
sults of continuing operations shall be sults from new information or subse-
reported separately from discontinued quent developments and from better in-
operations and any gain or loss result- sight or judgment. Correction of an
ing from disposal of a segment of a error should be accomplished through a
prior period adjustment [See Instruc-
business (see definition 23(a)) shall be
tion 1–2(d)(4)]. Changes in an account-
reported in conjunction with the re-
ing estimate should be accounted for in
lated results of discontinued operations
the period of change (and future period
and not as an extraordinary item. The
if the change affects both)(See Instruc-
disposal of a segment of a business tion 1–7). A change in an accounting
shall be distinguished from other dis- principle or accounting entity should
posals of assets incident to the evo- be referred to this Board for approval.
lution of the entity’s business, such as The cumulative effect of a change in
the disposal of part of a line of busi- accounting principle should ordinarily
ness, the shifting of production or mar- be reflected in the account provided for
keting activities for a particular line in determining net income.
of business from one location to an- (6) Materiality. As a general standard
other, the phasing out of a product line an item shall be considered material
or class of service, and other changes when it exceeds 10 percent of annual in-
occasioned by technological improve- come (loss) before extraordinary items.
ments. If a loss is expected from the An item may also be considered in rela-
proposed sale or abandonment of a seg- tion to the trend of annual earnings be-
ment, the estimated loss shall be pro- fore extraordinary items or other ap-
vided for at the measurement date (see propriate criteria. Items shall be con-
definition 23(b)). If a gain is expected, sidered individually and not in the ag-
it shall be recognized when realized, gregate in determining materiality.
which ordinarily is the disposal date However, the effects of a series of re-
(see definition 23(c)). lated transactions arising from a single
(4) Prior period adjustments. Only the specific and identifiable event or plan
following two items of profit and loss of action shall be aggregated to deter-
shall be accounted for and reported as mine materiality.
prior period adjustments and excluded (7) Board Approval and Accountant’s
from the determination of net income Letter. Items shall be included in the
for the current period: accounts provided for extraordinary
17
items, unusual or infrequent items, dis- designated area of responsibility. These

continued operations, prior period ad- cost centers shall be similarly defined
justments and cumulative effect of as the railroads’ existing responsibility
changes in accounting principles only centers. Cost center information shall
upon approval of the Board. If the car- therefore be kept at the same level of
rier retains the service of an inde- detail presently collected, categorized,
pendent accountant, a request for and maintained in railroad internal
using these accounts shall be accom- managerial accounting systems. This
panied by a letter from the inde- detailed information shall not be re-
pendent accountant approving or oth- ported to the Board on an ongoing
erwise commenting on the request. basis. However, the carrier shall keep
NOTE: The carrier may refer to generally the detailed information to provide a
accepted accounting principles for further ready analysis and verification of the
guidance in applying paragraph (d) above. costs collected by cost center.
[42 FR 35017, July 7, 1977 as amended at 43 FR
37455, Aug. 23, 1978; 52 FR 4321, 4324, Feb. 11, [42 FR 35017, July 7, 1977, as amended at 52
1987] FR 4324, Feb. 11, 1987; 61 FR 9113, Mar. 7, 1996]
1–3 Records. (a) Each carrier shall 1–4 Accounting period. (a) Each car-
keep its books of account, and all other rier shall keep its books on a monthly
books, records, and memoranda which basis so that known transactions, as
support the entries in such books of ac- nearly as may be ascertained, shall be
count so as to be able to furnish read- entered in the accounts not later than
ily full information as to any item in- 60 days after the last day of the period
cluded in any account. Each entry for which the accounts are stated, ex-
shall be supported by such detailed in- cept that the time within which the
formation as will permit ready identi- final entries for the year ending De-
fication, analysis, and verification of cember 31 shall be made may be ex-
all facts relevant thereto. tended to such date in the following
(b) All expenditures including the ex- March as shall not interfere with the
pense accounts of officers and employ- preparation and filing of annual report.
ees shall be supported by vouchers, (b) A trial balance of the general
payrolls, receipted bills, canceled ledger accounts shall be prepared at
checks, receipts for petty cash pay- the close of each month setting out the
ments, or other evidences of the ex- account number, title, and amount of
penditures incurred. each ledger account. (Mechanical, elec-
(c) The books referred to herein in- tronic or automatic data processing
clude not only books of accounts in a printout documentation producing the
limited technical sense but all other equivalent of manually prepared trial
records such as minute books, stock balances shall identify balances by ac-
books, reports, correspondence, memo- count numbers.) At the end of the cal-
randa, etc., which will be useful in de- endar year, the revenue, expense, and
veloping the history of or facts regard- other income accounts shall be closed
ing any transaction. into retained earnings account, and the
(d) No carrier shall destroy any balance sheet account balances shall be
books, records, memoranda, etc., which brought forward to the general ledger
support entries to its accounts unless for the succeeding year.
destruction is permitted by the regula- (c) No changes shall be made in the
tions governing preservation of accounts for periods covered by quar-
records, Part 1220 of this chapter. terly and annual reports that have
(e) In addition to prescribed ac- been filed with the Board unless the
counts, clearing accounts, temporary changes have first been authorized by
accounts, and subdivisions of any ac- the Board.
counts may be kept, provided the in- 1–5 Accrual method of accounting.
tegrity of the prescribed accounts is The accounting for operating revenues,
not impaired. operating expenses, income and other
(f) Cost detail shall be maintained by items each month and year shall be, as
cost centers for purposes of cost assign- nearly as practicable, upon the basis of
ments effective 1-1-79. This provides for accruals consistently applied. Any
cost control and cost planning at any change in practice of accounting for
18
accruals or any unusual accruals in- only, such operating costs shall be
volving material amounts shall be re- charged to the activity/function bene-
ported promptly to the Board. fited.
1–6 Charges to be just and reasonable. [52 FR 4324, Feb. 11, 1987]
All charges to the accounts prescribed
in this system of accounts for carrier 1–9 Transactions with affiliated com-
property, operating revenues, oper- panies. (a) The records and supporting
ating and maintenance expenses, and data of all transactions with affiliated
other carrier expenses, shall be just, companies shall be maintained in a
reasonable and not exceed amounts separate file. The types of transactions
necessary to the honest and efficient referred to in this paragraph are for
operation and management of carrier management services or any other type
business. Payments shall not exceed of services rendered, sale or use of fa-
the fair market value of goods and cilities or any other type of assets or
services acquired in an arm’s length property. The file shall be maintained
transaction. Any payments in excess of so as to enable the carrier, upon a
such just and reasonable charges shall Board request, to furnish accurate in-
be included in account 551, Miscella- formation with supporting documenta-
neous income charges. tion about particular transactions
1–7 Changes in accounting estimates. within 15 days of the request. We do
Changes in accounting estimate arising not intend the file to include data re-
during the current year which are ap- lating to ordinary carrier operations
plicable to prior years shall be included (e.g. lawful tariff charges or inter-
in the same account which would have change of equipment).
been charged or credited if the item (b) Each bill rendered by an affiliated
had been taken up or the adjustment company shall state specifically the
made in the year to which it pertained. basis used for determining charges, un-
[See Instruction 1–2(d)(5) for Account- less the file contains the information
ing Changes]. to support the specific basis for
[42 FR 35017, July 7, 1977, as amended at 52 charges.
FR 4324, Feb. 11, 1987] (c) Punched cards, magnetic tapes,
1–8 Accounting for computer systems discs, or other machine-sensible de-
and word processing costs. (a) Capital- vices used for recording, consolidating,
ized costs for computer systems and and summarizing accounting trans-
word processing equipment shall be actions and records with a carrier’s
charged to property account 59, when electronic or automatic data proc-
such costs are not dedicated to a par- essing system may constitute a file
ticular function (See Account 59). Re- within the meaning of this instruction.
lated depreciation expenses for capital- (d) The carrier shall record, as the
ized costs shall be charged to account cost of assets or services received from
62–23–00, Depreciation, Other Equip- an affiliated supplier, the invoice price
ment. (plus any incidental costs related to
(b) Repair and maintenance costs re- those transactions) in those cases
lated to computer systems and word where the invoice price can be deter-
processing equipment shall be charged mined from a prevailing price list of
to function 46 of the Other equipment the affiliated supplier available to the
subactivity by appropriate natural ex- general public in the normal course of
pense (labor, material, purchased serv- business. If no such price list exists,
ices, other). Repairs performed by an the charges shall be recorded at the
outside company shall be charged to lower of their cost to the originating
operating expense account 39–23–46. affiliated supplier (less all applicable
(c) Operating costs related to com- valuation reserves in case of asset
puter systems and word processing sales, or their estimated fair market
equipment shall be charged to function value determined on the basis of a rep-
87, Management services and data and resentative study of similar competi-
word processing, when the equipment tive and arm’s-length or bargained
benefits more than one activity. When transaction. Any difference between
the equipment benefits one activity actual transaction price and the above,
19
as well as charges that are not trans- Similar timing differences originating
portation related, shall be considered and reversing in the current account-
of a financing nature and shall be re- ing period should be combined into
corded, accordingly, as nonoperating groups and the current tax rates ap-
charges or credits. (See instruction 1– plied to determine the tax effect of
6.) each group. A carrier shall not apply
(e) Nothing contained herein shall be other than current tax rates in deter-
construed as restraining the carrier mining the tax effect of reversing dif-
from subdividing accounts (see instruc- ferences except upon approval of the
tion I–3(e)) for the purpose of recording Board. When determining the amount
separately transactions with affiliated of deferred taxes, rather than com-
companies. puting state and other taxes individ-
(f) Carriers reporting information on ually by jurisdiction, the Federal in-
a consolidated or combined basis in come tax rate may be increased by a
railroad Annual Report Form R–1 shall percent equivalent to the effect of
maintain a file with appropriate taxes imposed by the jurisdictions. In
records and supporting data. This shall classifying a deferred charge or credit
include work sheets showing revenues, as current or noncurrent a carrier shall
expenses, earnings, investment in as- follow the classification criteria used
sets and accumulated depreciation for for the related asset or liability which
all affiliated railroads and rail-related caused the timing difference. A de-
affiliated companies. The work sheets ferred charge or credit that is not re-
shall also disclose any eliminations. lated to an asset or liability because
Carriers shall also disclose the method- (a) there is no associated asset or li-
ology used to support segregation of ability or (b) reduction of an associated
rail-related or other items as appro- asset or liability will not cause the
priate. Further, a file shall be main- timing difference to reverse shall be
tained to support and reconcile entity classified based on the expected rever-
sales, transfers and reclassifications as sal date of the specific timing dif-
well as taxes deducted from gains or ference. Such classification disregards
losses. any additional timing differences that
may arise and is based on the criteria
used for classifying other assets and li-
FR 46620, Nov. 18, 1988]
abilities.
1–10 Accounting for income taxes. (a) (c) The future tax benefits of loss
The interperiod tax allocation method carryforwards shall normally be recog-
of accounting shall be applied where nized in the year in which such loss is
material timing differences (see defini- applied to reduce taxes. Only in those
tion 17(e)) occur between pretax ac- unusual instances when realization is
counting income and taxable income. assured beyond any reasonable doubt
Carriers may elect, as provided by the should the future tax benefits of loss
Revenue Act of 1971, to account for the carryforwards be recognized in the year
investment tax credit by either the of loss. The tax effects of any realizable
flow through method or the deferred loss carrybacks shall be recognized in
method of accounting. See paragraphs the determination of net income (loss)
(d) and (e) below. All income taxes of the loss periods; appropriate adjust-
(Federal, state and other) currently ments of existing net deferred tax cred-
accruable for income tax return pur- its may also be necessary in the loss
poses shall be charged to account 556, period.
Income taxes on ordinary income, and ac- (d) Carriers electing to account for
count 590, Income Taxes on Extraor- the investment tax credit by the flow
dinary Items, as applicable. through method shall credit account
(b) Under the interperiod tax alloca- 556 Income taxes on ordinary income, or
tion method of accounting the tax ef- account 590, Income taxes on extraor-
fect of timing differences (see defini- dinary items, as applicable, and charge
tion 17) originating in the current ac- account 760, Federal income taxes ac-
counting period are allocated to in- crued, with the amount of investment
come tax expense of future periods tax credit utilized in the current ac-
when the timing differences reverse. counting period. When the flow
20
through method is followed for the in- 1–12 Distribution of pay and expenses
vestment tax credit, account 557, Provi- of employees. (a) The pay and expenses
sion for Deferred Taxes, shall reflect the of officers or employees regularly as-
difference between the tax payable signed to specific duties who perform
(after recognition of allowable invest- incidental services of a different nature
ment tax credit) based on taxable in- involving small expense may be in-
come and tax expense (with full rec- cluded in the appropriate expense ac-
ognition of investment tax credit that counts for the duties to which such of-
would be allowable based on account- ficers or employees are regularly as-
ing income) based on accounting in- signed.
come. (b) When it is necessary to apportion
(e) Carriers electing to account for the pay of officers and employees
the investment tax credit by the de- among various accounts, the carrier
ferred method shall concurrently with shall apportion the pay on the basis of
making the entries prescribed in (d) the directly assignable pay to the var-
above charge account 557, Provision for ious accounts.
deferred taxes, or account 591, Provision
for deferred taxes—extraordinary item, as 1–13 Payroll related expenses. (a)
applicable, and shall credit account 786, Fringe benefits (account series 12–00–
Accumulated deferred income tax credits, 00) distributed to the activities using
with the investment tax credit utilized one of the following techniques (in
as a reduction of the current year’s tax order of preference):
liability but deferred for accounting (1) Apply appropriate factors to the
purposes. The investment tax credit so total of the fringe expense account, in
deferred shall be amortized by credits such a way as to distribute an equi-
to account 557, Provision for deferred table proportion of cost to each activ-
taxes. ity. These factors shall be developed to
take into account variables such as the
NOTE A: Any change in practice of account-
ing for the investment tax credit shall be re-
following:
ported promptly to the Board. Carriers desir- (i) The effect of seniority on the ex-
ing to clear deferred investment tax credits pense. For example, profit sharing or
because of a change from the deferral meth- pensions may be available to only cer-
od to the flow though method shall submit tain categories of employees, which
the proposed journal entry to the Board for may be more predominant in one activ-
consideration and advice.
ity than another.
NOTE B: The carrier shall follow generally
accepted accounting principles where an in- (ii) The effect of the type of work
terpretation of the accounting rules for in- performed. For example, workmen’s
come taxes is needed or obtain an interpreta- compensation expense may vary for
tion from its public accountant or the Board. each category of employees because of
[42 FR 35017, July 7, 1977, as amended at 47 the rate charged or the claims experi-
FR 12350, Mar. 23, 1982; 52 FR 4321, Feb. 11, ence of the category.
1987; 67 FR 57533, Sept. 11, 2002] (iii) Any other variable which may
1–11 Items in texts of accounts. The have an appreciable effect on the eq-
items appearing in the texts of the acuity of the apportionment.
counts or elsewhere herein are for the (2) Distribute the amount in the
purpose of more clearly indicating the same proportion as the pay charged to
application of the prescribed account- each activity in account series 11–00–00
ing. The items are intended to be rep- (salaries and wages).
resentative, but not exhaustive. The (3) Distribute the amounts using any
appearance of an item in the text of a other equitable basis which the carrier
primary account warrants the inclu- can substantiate.
sion of the item in the account men- (b) All carriers shall be prepared to
tioned only when the whole text also describe the basis of apportionment
indicates inclusion inasmuch as the used to distribute expenses included in
same item frequently appears in more this instruction.
than one primary account. The proper (c) Any carrier which finds it imprac-
entry in each instance must be deter- ticable to distribute expenses as re-
mined by the entire text of each pri- quired by this instruction should fur-
mary account. nish the Board with full particulars of
21
the conditions which prevent the prop- to, or improvement of depreciable or

er distribution. Upon receipt of such nondepreciable operating property
information carrier will be advised of shall be included in account 796 in the
the procedure to be followed. manner described in the text of that
1–14 Submission of questions. To account.
maintain uniformity of accounting, (2) Transfers from the Federal Gov-
carriers shall submit questions of ernment to Amtrak and ConRail other
doubtful interpretation to the Board than those described in paragraph (d)(1)
for consideration and decision. shall be accounted for in accordance
1–15 Transfers from government au- with paragraph (a) of this section.
thorities. When a Federal, State, or mu- (e) The provisions of this section do
nicipal government transfers cash or not apply to the following forms of
other assets to a railroad, the trans- government transfers:
action shall be accounted for in accord- (1) Government contributions in con-
ance with the provisions set forth here- nection with construction projects in
under. which government agencies and rail-
(a) The following forms of govern- roads participate. Transfers of this
ment transfers shall be included in ac- type shall be accounted for in accord-
count 502, Railway Operating Revenues— ance with the provisions of instruction
Transfers from Government Authorities 2–17. Paragraph (b) of that instruction
for Current Operations when received: lists applicable construction projects.
(1) Payments as reimbursement for (2) Government payment for specific
operating losses sustained on a specific services rendered by the carrier in
line, or in a certain region. Examples transporting property or persons by
include support of commuter oper-
rail line other than services described
ations of a railroad, and local rail serv-
in paragraph (a)(1) of this section. Such
ice assistance subsidies granted to a
payments shall be included in account
railroad under authority of the Rail-
501, Railway Operating Revenues (Exclu-
road Revitalization and Regulatory Re-
sive of Transfers from Government Au-
form Act of 1976;
thorities).
(2) Subsidies designated by the donor
to offset operating expenses of the rail- (3) Government transfers relating to
road, and other than carrier operations.
(3) Subsidies which may be applied at (4) Government transfers in exchange
the discretion of the recipient to oper- for debt and/or equity securities of re-
ating expenses and/or operating prop- cipients.
erty. (f) Government transfers shall gen-
(b) Government transfers relating to erally be recorded when made available
the acquisition, addition to, or im- to the railroad. However, transfers re-
provement of depreciable operating lating to specific operations shall be
property shall be included in account recorded as earned.
783, Deferred Revenues—Transfers from (g) Government transfers in the form
Government Authorities when received. of assets other than cash shall be re-
Account 783 shall be periodically corded at fair value when received.
charged, and account 503, Railway Oper-
ating Revenues—Amortization of Deferred FR 4321, Feb. 11, 1987]
Transfers from Government Authorities
shall be credited with amounts equal to 1–16 Business entertainment expenses.
the depreciation costs of the assets to (a) Business entertainment expenses
which they apply. are to be accounted for as operating ex-
(c) Government transfers in the form penses when incurred in conjunction
of, or designated for the purchase of with sales or marketing related activi-
nondepreciable operating property ties. Sales or marketing related activi-
shall be included in account 796, Other ties are those that emphasize a car-
Capital Surplus in the manner described rier’s ability to provide efficient, time-
in the text of that account. ly and competitive service. These ac-
(d)(1) Transfers from the Federal tivities include outlays designed to
Government to Amtrak and ConRail promote new business as well as out-

relating to the acquisitions, addition lays incurred in maintaining existing
22
business. The entertainment expendi- (4) Paid admission to any sporting,

tures must be reasonable in relation to cultural, educational, recreational, or
the business conducted and the busi- entertaining occurrence or event;
ness purpose for the entertainment (5) Gifts such as athletic equipment,
must be adequately supported. Exam- food or liquor, beverages of all types,
ples of this type of activity include the smoking materials, clothing and per-
following: sonal accessories;
(1) Salespersons’ salaries and travel (6) The furnishing of lunches, din-
expenses, advertising, promotional and ners, appetizers or beverages where
educational material; there is no true business purpose;
(2) The conduct of shipper sympo- (7) Social occasions such as holiday
siums, conferences, meetings and traf- parties.
fic related functions; It must be noted that an activity listed
(3) The use of direct mail solicita- above is not to be automatically ac-
tions and the publication and distribu- counted for as a non-operating expense.
tion of routing guides and service di- If a carrier can justify that the activ-
rectories; ity was primarily sales or marketing
(4) Incidental promotional materials related, it may be accounted for as an
such as road atlases, calendars, pens, operating expense.
scratchpads, and other materials of
nominal value; NOTE: The examples listed above are not
(5) The conduct of business oriented inclusive, but are intended as a guide to give
carriers an indication of what will or will
lunches and dinners, public affairs pro- not be permitted to be recovered through the
gramming, conferences and customer rate structure. In all instances the burden of
service calls; proof will fall on the carrier involved.
(6) Sponsoring sales promotion func-
[47 FR 9467, Mar. 5, 1982, as amended at 52 FR
tions, involving a number of customers 4321, Feb. 11, 1987]
or potential customers.
It must be noted that an activity listed 1–17 Disclosure guideline. In addition
above is not to be automatically ac- to the accounting policies presented in
counted for as an operating expense. A these regulations, all disclosures relat-
carrier must be able to justify that an ing to APB Opinions and FASB State-
activity was primarily sales or mar- ments adopted by the Board are re-
keting related. quired.
(b) Business entertainment expenses [52 FR 4324, Feb. 11, 1987]
are to be accounted for as non-oper- 1–18 Distribution of expenses for mate-
ating expenses when they cannot be rial, tools, fuel, lubricants, purchased
shown to be related to the sales or services and general. (a) These expenses
marketing activity. These are expenses shall be assigned directly to activities
that are primarily related to recre- based on usage whenever possible.
ation or to the convenience and com- (b) When it is necessary to apportion
fort of the individuals rather than to these expenses to two or more activi-
the transaction of business. Examples ties they shall be equitably appor-
of this type of activity include the fol- tioned only to the activities in which
lowing: they are actually used or to the activi-
(1) Recreational or resort entertain- ties they support.
ment, including but not limited to,
fishing, hunting, tennis, golfing, skiing [67 FR 57533, Sept. 11, 2002]
or other sporting or recreational trips
or outings; INSTRUCTIONS FOR PROPERTY
(2) Expense paid transportation in ACCOUNTS
any carrier owned, leased or furnished
vehicles, planes, helicopters, boats, 2–1 Items to be charged. (a) To the
yachts, or other methods; road and equipment property accounts
(3) Expense paid lodging in any car- shall be charged the cost of purchasing
rier owned, leased or furnished motels, land, the cost of purchasing and con-
hotels, apartments, condominiums, structing buildings, facilities and
lodges, rooms and other places of over- equipment, and the cost of additions
night accommodation; and betterments to property, Cost
23
means the amount of cash disbursed, or get them ready for their intended use
the fair value of other assets distrib- (acquisition period). Qualifying assets
uted, or the present value of amounts are those that are (1) either con-
to be paid. Where the fair market value structed or otherwise produced for a
of resources given up (assets, services carrier’s own use (including assets con-
or items of stockholder’s equity) is not structed or produced for the carrier by
clearly determinable, the cost may be others for which deposits or progress
determined by the fair market value of payments have been made) or (2) assets
the resources acquired. The carrier intended for sale or lease that are con-
shall be prepared to furnish the Board structed or otherwise produced as dis-
with the particulars of its method of crete projects. The amount of interest
determining cash value when the con- to be capitalized for qualifying assets
sideration is other than monetary. The shall be based upon the average
amount of liabilities incurred with sup- amount of accumulated expenditures
pliers in the normal course of business, for the asset during the acquisition pe-
which are due in customary trade riod at the rate used on specific new
terms not exceeding approximately one borrowings associated with the quali-
year, shall be recorded at the maturity fying asset. If average accumulated ex-
value. Acquisition date is the date title penditures for the asset exceed the
passes to the carrier. amount of specific new borrowings as-
(b) The cost of road and equipment sociated with the asset, the rate to be
purchased under a plan involving other applied to such excess shall be a
deferred payments (debt or capital
weighted average of the rates applica-
lease) shall be recorded at the dis-
ble to other borrowings of the enter-
counted present value of the payment,
prise. The total amount of interest cost
net of executory costs such as insur-
capitalized in an accounting period
ance, maintenance, and taxes. The in-
shall not exceed the total amount of
terest rate used to discount the pay-
interest cost incurred by the enterprise
ments should be the prevailing market
during that period.
rate for similar debt instruments of
issues with similar credit ratings. In (d) Suitable records shall be main-
any event, the rate used for valuation tained showing expenditures during the
purposes will normally be at least year for original road and equipment
equal to the rate at which the carrier and road extensions; for merger and
can obtain financing of a similar na- purchase of existing lines and reorga-
ture from other sources at the date of nizations; for additions and better-
the transaction (the carrier’s incre- ments; and credits for property retire-
mental borrowing rate). In the case of ment.
a capital lease, when it is practical to (e) When the carrier exchanges road
ascertain the implicit rate computed and equipment for other road and
by the lessor, and that rate is less than equipment with no other consideration
the carrier’s incremental borrowing involved, the road and equipment re-
rate, the carrier should use the im- ceived shall be recorded at the ledger
plicit rate. Acquisition date for a cap- value of the road and equipment relin-
ital lease is the date the lease agree- quished. Where the carrier receives a
ment is signed. If the property covered monetary consideration in the ex-
by the lease has yet to be constructed change, the carrier shall recognize gain
or has not been acquired by the lessor on the exchange to the extent that the
at the date the lease agreement or consideration received exceeds a pro-
commitment is signed, the acquisition portionate share of the recorded cost of
date shall be the date the property the road and equipment surrendered.
under construction is completed or the The portion of the cost applicable to
date the property not yet acquired is the realized amount shall be based on
acquired by the lessor. (See Instruction the ratio of the monetary consider-
2–20.) ation to the total consideration re-
(c) Where actually incurred, interest ceived (monetary consideration plus
cost is to be added to the cost of road the estimate fair value of the road and
and equipment deemed qualifying assets equipment received) or, if more clearly
during the period of time required to evident, the fair value of the road and
24
equipment transferred. Where the car- tained by the carrier the original cost
rier pays a monetary consideration in (estimated, if not known) shall be
the exchange, it shall not recognize transferred to the account prescribed
any gain on the transaction but shall for property used in other than trans-
record the road and equipment received portation operations. It is not con-
at the amount of the monetary consid- templated that irregular parcels of
eration paid plus the recorded costs of land acquired in connection with acqui-
the road and equipment surrendered. If sition of right-of-way which have no
a loss is indicated by the terms of an value as commercial property shall be
exchange transaction, the carrier shall thus transferred, either for the purpose
recognize the entire loss on the ex- of making right-of-way boundaries run
change. Immaterial gains and losses on more or less regular or for the purpose
these exchanges shall be included in of eliminating from transportation
account 519, Miscellaneous Income, or property account the cost of unoccu-
551, Miscellaneous Income Charges, as pied lands between tracks in yards and
appropriate. Material amounts shall be terminals. When any land, the cost of
recorded in accordance with Instruc- which is included in the accounts, is
tion 1–2(d). sold or otherwise retired, the ledger
value shall be credited to the appro-
[52 FR 4324, Feb. 11, 1987]
priate property investment account.
2–2 Minimum rule applicable to addi- The profit or loss from sale or loss
tions to property. An exception to the from retirement or land shall be in-
rule in Instruction 2–1 is that when the cluded in the accounts prescribed for
cost of acquisition of units of road such amounts.
property and of additions to existing (b) [Reserved]
units of road property (other than land
and tracks) is less than $5,000, such
FR 4324, Feb. 11, 1987]
costs may be charged to operating ex-
penses. This amount (rounded to the 2–4 Structures. Accounts are pro-
nearest $100) will be adjusted by the vided for the cost of several classes of
June Producer Price Index for all com- buildings and facilities, including fix-
modities when an aggregate adjust- tures permanently attached to and
ment is $500 or more. The revision will made a part thereof. When a building
be published in the Federal Register or other structure is used or held pri-
and be effective as of January 1 of the marily for transportation operations
following year. The carrier shall not and is an integral part of the carrier’s
parcel expenditures under a general transportation plant, but a part there-
plan bringing the accounting for such of is used or held for commercial pur-
expenditures within this minimum poses such as for rental to others or for
rule. An amount of less than the cur- use in other than transportation oper-
rent minimum capitalization level, for ations by the carrier, the entire cost of
the railroad as a whole or for indi- the building or other structure is in-
vidual property accounts may be cludable in the accounts for transpor-
adopted for purposes of this rule pro- tation property. When a building or
vided the carrier first notifies the other structure is used or held pri-
Board of the amount it proposes to marily for commercial purposes or for
adopt and thereafter makes no change use in other than transportation oper-
in the amount unless authorized by the ations by the carrier, the entire cost of
Board. An amount adopted shall be ad- the building or structure is includable
hered to in reporting property changes in account 737, Property used in other
for valuation purposes. than carrier operations. Reclassification
of property from its primary classifica-
[55 FR 42016, Oct. 17, 1990]
tion as transportation or other than
2–3 Land. (a) Accounts are provided transportation property, as the case
for the cost of land used in transpor- may be, to the other classification is
tation operations and also for land not required where changes in use are
used in other than transportation oper- of a temporary nature or for a short pe-
ations. When land is retired from riod of time. The accounting for costs
transportation operations but is re- of maintenance, taxes, other operating
25
costs, and for revenues and rentals especially assigned to construction

shall be consistent with the classifica- work their pay and their traveling and
tion of the building or other structure. incidental expenses while thus engaged
2–5 Equipment. Accounts are pro- shall be included in the cost of the
vided for several classes of equipment, work. No charge shall be made against
such as locomotives, passenger-train road and equipment accounts for the
cars, freight-train cars, highway rev- pay of officers and employees who
enue equipment, work equipment, merely render services incidentally in
floating equipment, and the necessary connection with extensions, additions,
appurtenance, furniture, and fixtures or betterments, although traveling and
first to equip for service, including the incidental expenses incurred by such
cost of inspection, setting up, and try- officers and employees solely on ac-
ing out, and transportation over for- count of such work shall be included in
eign lines; also the cost of additions the account to which the cost of the
and betterments, such as improved ap- work is chargeable.
pliances, parts, or appurtenances. (b) Cost of materials and supplies. This
When retired equipment is held with- includes the purchase price of mate-
out being torn down, the estimated rials and supplies, including small
value of the salvage therefrom shall be tools, at the point of free delivery plus
included in account 741, Other assets, the cost of inspection and loading as-
until the salvage is recovered, except sumed by the carrier; a suitable pro-
that the estimated scrap value of re- portion of store expenses; also sales
tired equipment held for sale in the or- and excise taxes on materials and sup-
dinary course of business, and on which plies except as otherwise provided in
sale and realization of the proceeds the text of account 712, Material and
within one year is assured, is includ- supplies. In calculating the cost of ma-
able in account 713, Other current assets. terials used, proper allowance shall be
2–6 Components of construction cost. made for the value of unused portions
The cost of constructing property in- and of cuttings, turnings, borings, etc.;
cludable in the property accounts shall for the value of the material recovered
include the direct and other costs as from temporary tracks, scaffolding,
described hereunder. cofferdams, and other temporary struc-
(a) Cost of labor. This includes the tures used in construction; and for the
amount paid for labor expended by the value of small tools recovered and used
carrier’s own employees, including the for other purposes.
cost of labor expended for preliminary (c) Cost of work-train service. This in-
work, such as sinking test holes or cludes amounts paid to others for rent
making soundings for tunnels, grading, and maintenance of equipment used;
buildings, and other structures; and cost of labor of enginemen, trainmen,
cost of labor expended in laying and and enginehousemen, including wages
taking up tracks for temporary use in of engine crews and train crews held in
construction, except the cost of labor readiness for such service; and cost of
expended on tracks provided for the fuel and other supplies consumed in
protection of traffic during the connection with the operation of work
progress of addition and betterment trains. It shall also include the cost of
work. The cost of labor shall also in- maintaining the carrier’s own equip-
clude the accounting company’s ex- ment used in construction service.
penditures for associated fringe bene- Amounts representing constructive
fits, such as vacation and holiday pay, rent or return upon the investment in
health and welfare group insurance, owned equipment shall not be included
pensions and retirement plans, payroll as a part of the cost of work-train serv-
taxes and unemployment insurance. Of- ice.
fice expenses and traveling and other (d) Cost of special machine service. This
personal expenses of employees, when includes the cost of labor expended and
borne by the carrier, shall be consid- of materials and supplies consumed in
ered a part of the cost of the labor, as maintaining and operating power shov-
shall also the cost of fidelity bonds and els, scrapers, rail unloaders, ballast
employer’s liability insurance pre- unloaders, pile drivers, dredges,

miums. When officers or employees are ditchers, weed burners, and other
26
labor-saving machines; also rents paid for transportation purposes, or 3, Grad-

for use of such machines. ing, as appropriate.
(e) Cost of transportation. This in- (i) Cost of privileges. This includes
cludes the amounts paid to other com- compensation for temporary privileges,
panies or individuals for the transpor- such as the use of public property or
tation of men, materials and supplies, streets, in connection with the con-
special machine outfits, appliances, struction of the property of the carrier.
and tools in connection with construc- (j) Material excavated. The cost of dis-
tion. Freight charges paid foreign lines posing of material excavated in con-
for the transportation of construction nection with construction shall be con-
material to the carrier’s line shall be sidered as a part of the cost of work,
included, so far as practicable, as a except that when such material is used
part of the cost of the material. for filling, the cost of removal and
(f) Cost of contract work. This includes dumping shall be equitably appor-
amounts paid for work performed tioned between the work in connection
under contract by other companies, with which the removal occurs and the
firms, or individuals, and costs inci- work in connection with which the ma-
dent to the award of the contract. terial is used.
(g) Cost of protection from casualties. (k) Interest cost. [See Instruction 2–
This includes expenditures for protec- 1(c)].
tion against fire, such as payments for [42 FR 35017, July 7, 1977, as amended at 52
discovery or extinguishment of fires, FR 4325, Feb. 11, 1987]
cost of detecting and prosecuting in-
cendiaries, witness fees in relation 2–7 Additions to and retirements of
thereto, amounts paid to municipal property—General. (a) In accounting for
corporations and other for fire protec- additions to and retirements and re-
tion, and other analogous items of ex- placements of road and equipment
penditure incurred directly in connec- property (excluding land) used in trans-
tion with construction work. portation operations, such property
(h) Cost of injuries and damages. This changes shall be considered as con-
includes expenditures on account of in- sisting of: (1) Units of property, and (2)
other than units of property as pre-
juries to persons or damage to property
scribed in Instruction 2–19. Track prop-
when incurred directly as a result of
erty changes will be distinguished by
construction projects, and shall be in-
units of property as approved by the
cluded in the cost of the work in con-
Commission.
nection with which the injury or dam-
age occurs. It also includes that por- (b) The cost of removal of retired
tion of premiums paid for insuring property, both depreciable and other
property applicable to the period prior than depreciable, when borne by the
carrier, shall be charged, as appro-
to the completion or coming into serv-
priate, to account 11–13–39, Personnel—
ice of the property insured. Insurance
Salaries and Wages—Way and Struc-
recovered on account of compensation
tures—Other—Dismantling retired prop-
paid for injuries to persons incident to
erty, or 11–23–39. Personnel—Salaries and
construction shall be credited to the
Wages—Equipment—Other Equipment—
accounts to which such compensation
Dismantling retired property, and other
is charged, and insurance recovered on
appropriate accounts (including sub-
account of damages to property inci-
activities 11 and 12). 1
dent to construction shall be credited
(c) An equitable proportion of a bal-
to the accounts chargeable with the ex-
ance in property accounts 76, Interest
penditures necessary for restoring the
damaged property. The cost of injuries
1 The references to solely related freight
and damages incident to the removal of
old structures, or parts thereof, shall operating expense activity/subactivity num-
bers and titles used throughout the system
be charged to operating expenses, ex-
are for convenience and brevity. Refer to the
cept that such costs in connection with specific account texts to determine the ap-
the removal of old structures which are propriate solely related passenger and/or
incumberances on newly acquired lands common expense activity/subactivity num-

shall be included in accounts 2, Land bers.
27
During Construction, and 80, Other ele- (d) When property included in the de-
ments of investment, applicable to re- preciable accounts but excluded from
tired property shall be cleared from the depreciation base is retired, the
these accounts concurrently with the service value (including engineering
retirement accounting. Unless provided expenditures assignable to retired
for otherwise, interest costs shall be property but not included in the depre-
capitalized in accordance with gen- ciation base) shall be charged to oper-
erally accepted accounting principles. ating expense.
(d) When retired property is held and 2–9 Additions and retirements of other
not removed, the estimated value of than units of property. (a) When an item
the salvage therefrom shall be included of road or equipment property, other
in account 741, Other assets, until the than a complete unit, is added to the
salvage is recovered, except that the plant and the addition is not a replace-
estimated scrap value of retired prop- ment, the cost thereof shall be ac-
erty held for sale in the ordinary counted for in the same manner as an
course of business, and on which sale addition of a complete unit of property,
and realization of the proceeds within subject to the minimum rule applicable
one year is assured, is includible in ac- to road property (see Instruction 2–2).
count 713, Other current assets. When an item of property other than a
(e) The accounting for track addi- complete unit (minor item) is replaced,
tions and retirements (with and with- independent of the complete unit of
out replacement) shall be guided by In- which it is a part, the cost of replace-
struction 2–10. ment shall be treated as maintenance
[42 FR 35017, July 7, 1977, as amended at 46 and charged to operating expenses. If
FR 10920, Feb. 5, 1981; 48 FR 7183, Feb. 18, the replacement constitutes an im-
1983; 49 FR 2254, Jan. 19, 1984; 52 FR 4321, Feb. provement then the cost of replace-
11, 1987] ment should be accounted for as a re-
2–8 Additions to and retirements of building expenditure under Instruction
units of property. (a) When a unit of 2–12.
road or equipment property is added to (b) When second-hand property ac-
the plant, the cost thereof shall be in- quired is in such physical condition
cluded in the appropriate primary ac- that it is necessary to rehabilitate the
count. When a unit of property is re- property to bring it up to the standard
tired, with or without replacement, the required by the carrier, the cost of
cost thereof shall be written out of the such rehabilitation shall be included in
property account at time of retire- the appropriate account for the prop-
ment. erty.
(b) When a unit of road or equipment
property (or a minor item not replaced) FR 42016, Oct. 17, 1990]
classified as depreciable and included
in the accounts prescribed for depre- 2–10 Additions to and retirements of
ciable property is retired the service track.
value shall be charged to account 735, (a) When track or its components are
Accumulated depreciation; Road and added to the plant, the cost shall be in-
equipment property. cluded in the track primary account.
(c) When road property (other than a When track components are replaced as
minor item constituting repairs) clas- part of a track replacement program,
sified as other than depreciable prop- the replacement cost shall be ac-
erty is retired, the cost thereof shall be counted for as an addition to the track
cleared from the property account and property account. The cost of track
the service value shall be charged to components which are retired with or
account 61–13–99, General—Other Ex- without replacement shall be written
penses—Way and Structures—Other— out of the track property account at
Other. When the retirement requires the time of retirement.
Board approval, the carrier shall clear (b) When track is retired the service
the cost from the property account value (ledger value less net salvage)
upon the effective date of the abandon- shall be charged to account 735, Accu-
ment. Subactivities 11 and 12 also mulated depreciation; Road and equip-

apply. ment property.
28
(c) All repairs of tracks shall be ac- cient, more durable, or has greater ca-
counted for as operating expenses. pacity.
(d) Track investment written out of (4) Rebuilt or converted road or
the accounts shall be at original cost equipment property shall be accounted
or estimated standard or average cost for as an addition to the appropriate
for that density category. Material to property accounts, with the old units
be reused shall be put in an investment accounted for as retired from service.
pool at unrecovered cost and, when re- The charge to the appropriate property
used, included in the appropriate den- accounts shall be composed of (i) the
sity category at the average cost of the cost (estimated if necessary) less a fair
investment pool. allowance for depreciation, or salvage
value, whichever is lower, of the parts
[48 FR 7183, Feb. 18, 1983]
reused, (ii) the cost of labor expended
2–11 Expenses in connection with addi- in rebuilding or in the conversion proc-
tions and betterments. The cost of re- ess, (iii) the cost of additional mate-
moving old material from equipment rials applied, and (iv) any other ex-
and from buildings, bridges, wharves, penses incurred directly with the re-
tracks, and other fixed improvements, building or conversion. In no case shall
shall be charged to the appropriate op- the total amount charged to the prop-
erating expense accounts. Such charges erty accounts for these units exceed
shall include the cost of removing old the current replacement costs of simi-
foundations and filling old excavations, lar new units that would be used for
and restoring condition of grounds the same purpose. When a unit of road
after addition and betterment work; property or equipment is transferred
and maintaining or protecting traffic from one class of service to another,
during the progress of addition and bet- with or without physical conversion,
terment work, including the cost of the unit shall be accounted for as re-
constructing, maintaining, and remov- tired from its original account and be
ing temporary tracks required for recorded in a primary investment ac-
maintaining traffic during the progress count appropriate to its new class of
of the work. service.
[42 FR 35017, July 7, 1977. Redesignated at 48
(5) If it is necessary to repair the sec-
FR 7183, Feb. 18, 1983] ondhand or reused parts remaining in a
rebuilt unit, the repair cost may be
2–12 Units of property rebuilt or con- added to the value assigned parts in de-
verted—(a) Rebuilding expenditures. Car- termining the related cost to be cap-
riers shall be governed by the following italized. Associated dismantling costs
provisions when determining and ac- shall be included in operating expenses.
counting for depreciable road and (b) Repair expenses. Expenses per-
equipment property rebuilding expend- taining to road and equipment prop-
itures: erty, which represent normal or de-
(1) Rebuilding expenditures are those layed repairs and maintenance, shall be
cost actually incurred which substan- expensed in the year incurred.
tially extend the service life or sub- (c) File and Storage. Carriers shall
stantially increase the utility of depre- keep records of each rebuilding pro-
ciable road and equipment property. gram readily available. These records
The rebuilding expenditures shall be shall be provided to representatives of
material in nature relative to the cur- the Board when requested. The reten-
rent replacement cost of a similar new tion period shall be as required by 49
unit of road or equipment property. Ex- CFR part 1220, Preservation of Records.
penses resulting from delayed mainte-
nance and repairs shall not be consid- [44 FR 67426, Nov. 26, 1979. Redesignated at 48
ered in determining materiality. FR 7183, Feb. 18, 1983, and amended at 52 FR
4321, Feb. 11, 1987]
(2) The phrase extend the service life
means to extend the life of a property 2–13 Changes in line of road and relo-
unit past its estimated service life. cation of yard tracks.
(3) The term increased utility means (a) When changes are made in a line
that the road or equipment property of road for the purpose of reducing
has become more useful, more effi- curves or grades, or to eliminate
29
bridges, tunnels, tracks in the installa- (c) The cost of constructing a track
tion of a centralized traffic control sys- connection on the right-of-way of an-
tem, or other physical features, the other carrier which acquires the owner-
part of the line so changed shall be ship of and salvage rights to the track,
considered property retired and its shall be charged by the carrier bearing
ledger value credited to the property such cost to accounts 37–11–00, Pur-
accounts. The new line of road, includ- chased service—Joint facility—Debit—
ing land, grading, ballast, track ele- Way and Structures—Running, or 37–12–
ments, and other transportation facili- 00, Purchased services—Joint facility—
ties serving the road shall be consid- Debit—Way and Structures—Switching.
ered an addition and the cost charged The owner carrier shall charge the
to the property accounts. The cost of amount of the construction cost to ac-
track changes which do not involve count 731, Road and equipment—prop-
change in the existing roadbed shall be erty, with contra credit to accounts 38–
charged to operating expenses, even 11–00, Purchases services—Joint facility—
though the tracks may be dismantled Credit—Way and Structures—Running,
in the process, but the resulting track or 38–12–00, Purchases services—Joint fa-
extensions or reductions shall be ac- cility—Credit—Way and Structures—
counted for as additions or retirements Switching. Material amounts for such
as appropriate. costs shall be referred to the Board for
consideration and decision.
(b) The cost of shifting or rear-
(d) The cost of constructing a side
ranging tracks within a yard shall be
track under a deposit refund agreement
charged to operating expenses, even
shall be charged to account 731, Road
though the tracks may be dismantled
and equipment property. The deposit
in the process, but resulting increases
shall be credited to account 782, Other
or decreases in grading, ballast, or
liabilities. Deposit amounts refunded
track length shall be accounted for as
during the agreement period shall be
additions or retirements, as appro- charged to account 782, Other liabilities.
priate. Where tracks in whole or in Upon termination of the agreement,
part within a yard are determined to be the amount of any unrefunded deposit
no longer permanently used, the ledger shall be credited to the applicable pri-
value of such tracks shall be elimi- mary property accounts on an equi-
nated from the property account. If table basis.
yard tracks and facilities are con- 2–15 Merger, consolidation, and pur-
structed in another location to take chase of a railway operating entity or sys-
the place of tracks retired, such tracks tem. (a) When a railway or portion
and facilities shall be accounted for as thereof constituting an operating unit
additions and the cost thereof shall be or system is acquired by merger or con-
included in the property account. solidation in a pooling of interests or
[48 FR 7183, Feb. 18, 1983] by purchase the cost of acquisition rep-
resented by cash, capital stock or other
2–14 Track connections. (a) When the securities issued or assumed, liabilities
accounting carrier bears the construc- assumed, and other consideration, shall
tion cost of a connecting track situ- be recorded in the accounts in the man-
ated on the property of another carrier, ner stated hereunder. Separate instruc-
but acquires the salvage rights to the tions are provided for a merger of sub-
track, the cost of the track construc- sidiaries.
tion shall be charged to account 731, (b) Pooling of interests:
Road and equipment property. (1) When the acquisition results from
(b) When carriers (1) share the cost of a merger or consolidation constituting
constructing a connecting track of a pooling of interests, in which all or
which a portion is situated on each car- substantially all of the equity interest
rier’s right-of-way, and (2) own and ob- in predecessor companies continue, as
tain the salvage rights to the track such, in a surviving company or a new
segment located on their respective company created for the purpose, the
properties, the construction cost borne road and equipment, the other assets,
by each carrier shall be charged to ac- and the liabilities of the predecessor
count 731, Road and equipment property. companies, together with the balances
30
in the accumulated amortization and (2) When the costs of individual units
depreciation accounts and the retained or classes of transportation property
earnings accounts shall be recorded in are not specified in the agreement, the
the appropriate balance sheet accounts cost assigned such property shall be ap-
at the amounts shown in the accounts portioned among the appropriate pri-
of predecessor companies, adjusted as mary accounts using the percentage re-
may be necessary to conform with the lationship between the fair values for
accounting rules of the Board. Such ad- each class of property acquired and the
justments shall be included in retained total of such values.
earnings or the other accounts that (d) Merger of subsidiaries:
would have been appropriate had the The acquisition and merger of prop-
adjustments been made in the books of erty of subsidiaries controlled through
account of the predecessor company. ownership of the majority shares of
(2) When the total par or the stated voting stock is to be accounted for as a
value of no par capital stock issued or pooling of interests or as a purchase
outstanding pursuant to the pooling of depending on the circumstances in
interests is more than the aggregate each case. Where control was initially
amount of the capital stock of the sep- acquired through issuance of capital
arate companies before such pooling of stock to stockholders of the subsidiary
interests, the excess shall be charged the rule applicable to pooling of inter-
to account 795, Other capital, if unre- ests ordinarily is applicable. Where
stricted capital is available for such control was initially acquired through
purpose; otherwise, the excess shall be purchase of stock the rule applicable to
charged to retained earnings. purchase of property may be appro-
(3) When the total par or stated value priate even though the shares were
of no par capital stock issued or out- purchased gradually from time to time
standing pursuant to the pooling of in- over a period of years, in which event
terests is less than aggregate amount recognition of retained earnings since
of the capital stock of the separate date of acquisition assignable to such
companies before such pooling of inter- shares may be proper. The journal
ests, the difference for reduction in entry pertaining to acquisition of prop-
capital stock shall be credited to ac- erty of subsidiaries shall be submitted
count 795, Other capital. to the Board for consideration based on
(c) Purchase: the principles herein and procedures
(1) When the acquisition results from for which there is authoritative sup-
a purchase (except from subsidiaries port, and the accounting for the merg-
controlled through ownership of the er shall become final only after ap-
majority share of voting stock) includ- proval by the Board.
ing mergers or consolidations other 2–16 Reorganization of railway. (a)
than pooling of interests, the amount When a railway reorganization or re-
includible in account 731, Road and ceivership has been consummated, the
equipment property, shall be the cost at assets acquired, liabilities assumed,
the date of acquisition to the purchaser and the capital stock or other securi-
of the transportation property ac- ties issued or assumed, and other con-
quired. The cost assigned the property, sideration, shall be recorded in the ac-
as well as other assets acquired, shall counts in the manner stated hereunder.
be the amount of the cost consider- An adjustment of capitalization result-
ation given. Where property and other ing in modification and reformation of
assets are acquired for other than cash, classes of securities pursuant to vol-
including liabilities assumed and untary action of the holders of securi-
shares of stock issued, cost shall be de- ties but not resulting in a formal reor-
termined by either the fair value of the ganization following a bankruptcy or
consideration given or the fair value of other receivership proceedings (some-
the assets acquired, whichever is more times called a quasi-reorganization) is
clearly evident. In addition to any li- not covered by this instruction 2–16.
abilities assumed, provision shall be Reduction of capital stock and other
made for such estimated liabilities as contributions to capital by stock-

may be necessary. holders shall be recorded in accordance
31
with the instructions in the text of ac- rangement and retired from service
count 795, Other capital. less the value of salvage recovered
(b) The amounts includable in pri- therefrom by the carrier and less de-
mary road and equipment property ac- preciation accrued on depreciable prop-
counts shall be recorded at cost as erty, which is part of the carrier’s cost
shown in the predecessor companies’ of the project. The amount so includ-
accounts except as otherwise provided able in the property account shall be
in paragraphs (c) and (d) of this in- distributed equitably among the pri-
struction 2–16. The remaining assets mary accounts applicable to railway
and the liabilities of the predecessor property constructed. This amount
companies, adjusted as necessary to shall first be applied to railway facili-
conform with the accounting rules of ties includable in accounts other than
the Board, together with the balances 4, Other right-of-way expenditures, or 39,
in the accumulated amortization and Public improvements—Construction, then
depreciation accounts, shall be re- any remaining balance shall be in-
corded in the appropriate balance sheet cluded in account 4 or 39, as appro-
accounts. priate. In no case shall the amount in-
(c) When the amount recorded for as- cluded in the primary accounts for the
sets acquired is more than the par or railway facilities acquired exceed the
stated value of no par capital stock actual cost of constructing such facili-
issued and other consideration paid, in- ties. The property account shall not in-
cluding liabilities assumed, the dif- clude any cost or value for facilities or
ference shall be applied to such extent
land contributed or paid for by govern-
as necessary and is available to provide
mental agencies, individuals or others.
first for any deficiency in past accrued
Property acquired as a specific con-
depreciation on property classified as
tribution to capital by stockholders
depreciable; and, second, for any esti-
does not come under this rule. (See
mated loss from retirement of a branch
text of account 795, Other capital.)
line, segment of track or other impor-
tant facility indicated by supporting (b) Construction projects as used in
records to be imminent. The remaining this section means widening of high-
amount of the difference, if any, shall ways, construction of spillways, drain-
be applied proportionately to reduce age canals, farm and other private
the amounts includable in the property passes, pipelines, drains or other facili-
accounts in accordance with paragraph ties across the right-of-way; construc-
(b) of this instruction 2–16, based on tion of overhead highway bridges, and
the percentage relationship between railroad bridges over public highways
such difference and the aggregate cost and across streams, which provide a
of the property shown in the prede- railroad use in the operation of trains
cessor companies’ accounts. and a public use in the uninterrupted
(d) When the amount applicable to passage of highway and river traffic;
the assets acquired is less than the par installation of warning signals to pro-
or stated value of no par capital stock tect highway traffic; and industrial
issued and other consideration paid, inside tracks. Also, reconstruction and
cluding liabilities assumed, the ac- relocation of tracks and appurtenant
counting shall be referred to the Board facilities such as occur in connection
for consideration and decision. with carrying out flood control, rec-
2–17 Construction projects in which lamation, and other public improve-
governmental agencies, individuals, or ment projects where it becomes nec-
others, and the carrier participate. (a) essary to abandon part of the line of
The amount includible in the property railroad and relocate the tracks.
account for construction projects in 2–18 Leased property improvements
which the carrier and governmental and retirements. The cost to lessee of
agencies, individuals, or others partici- structures, facilities, additions and
pate shall be (1) the payment made by betterments on leased property and for
the carrier for its share of the cost of retirement of property the cost of
construction plus (2) the recorded cost which is included in account 732 Im-
(estimated if unknown) of property re- provements on leased property, shall be

linquished as a direct result of the ar- accounted for in conformity with the
32
principles in the instructions for property retired are set forth in instruc-
erty owned. When lessor’s property is tions 2–12 and 2–13.
retired and replaced and lessee is not
obligated to reimburse the lessor for FR 7183, Feb. 18, 1983]
the retired property other than
through the replacement, the lessee Account 3, Grading
shall (1) charge the cost of the replace- A retaining wall, riprap (hand placed), a
ment to account 732, Improvements on protecting dyke, a protecting crib, a wing
leased property, (2) discontinue accruing dam, a revetment, mattress, pipe or other
depreciation for lessor’s retired prop- structures to provide drainage. Each entire
erty, and (3) when recording final set- installation.
tlement with the lessor, consider joint- Account 5, Tunnels and Subways
ly the amount accrued in account 772,
Accrued liability; Leased property, for The entire masonry, entire timber, and en-
lessor’s retired property and the retire metal lining of a tunnel or subway, in-
cluding portals and wing walls.
spective amounts for the replacement
included in accounts 732, Improvements Drainage. Entire installation.
on leased property, and 733, Accumulated Lighting. Each entire installation.
depreciation; Improvements on leased Ventilation. Each entire installation.
property. When lessee is obligated to re- Account 6, Bridges, Trestles, and Culverts
imburse the lessor currently or at the
A steel superstructure.
termination of the lease for property
A concrete or stone substructure.
retired other than through replace- A concrete trestle, a complete bridge or ap-
ment, the lessee shall include the proach.
amount of the obligation in the appro- A timber trestle, a complete bridge or ap-
priate liability account. The lessee proach.
shall furnish the lessor such informa- Complete machinery for operating a movable
tion as is required to enable the lessor span.
to perform necessary accounting. The A protecting dyke, a protecting crib (a fend-
accounting by the lessee and the lessor er), a wing dam, a complete culvert. Each
entire installation.
shall be consistent with contractual ar-
rangements. Account 7, Elevated Structures
[47 FR 26635, June 21, 1982, as amended at 52 Any applicable units listed under account
FR 4321, Feb. 11, 1987] 6, Bridges, trestles, and culverts.
2–19 List of units of property. (a) This Account 13, Fences, Snowsheds, and Signs
list of units is established for the pur- A complete snowshed.
pose of designating the units of prop- One continuous mile of right-of-way fence.
erty to be used in accounting for addi- One continuous mile of permanent sand or
tions to and retirements and replace- snow fence.
ments of property. Detailed informa-
tion is included in instructions 2–7 and Account 16, Station and Office Buildings
2–8. Items listed under road property A complete building, including attached
accounts are subject to the minimum platform.
rule applicable to additions to prop- A complete platform structurally detached
erty. See instruction 2–2 pertaining to from a building.
Each retaining wall installation.
the minimum rule.
Each timber trestle installation.
(b) This list of units will be revised Each outside steam, water, air, etc., pipe line
from time to time as may be necessary installation.
to meet conditions. A carrier desiring Each storm or sanitary sewer installation.
to include in any account an appro- A complete fence.
priate unit not now specified therein Paving. Each complete installation.
may, upon approval of the Board, make A station stockyard. Each complete installa-
such authorized addition to this list of tion.
A track scale.
units.
A track scale pit.
(c) Rules applicable to units of prop- An outside crane or conveying system for
erty rebuilt or converted and to handling freight.
changes in line of road or tracks which A motor truck.

involve accounting for units or prop- A motor tractor.
33
Any applicable units listed under other ac- Float racks.
counts. Each complete machinery installation.
For additional items, see accounts 3, Grad-
Account 17, Roadway Buildings ing, 6, Bridges, testles and culverts, and 44,
Any applicable units listed under account Shop machinery.
16, Station and office buildings, and 44, shop
machinery. Account 24, Coal and Ore Wharves
Car dumper complete.
Account 18, Water Stations Timber bridges.
A complete water supply piping system. Steel bridges.
A dam or reservoir. Each complete machinery installation.
A pump house. A loading or unloading machine complete.
Pumping machinery. Each complete installa- Each coal or ore pocket installation.
tion. For additional items, see accounts 6, Bridges,
A water tank. Each complete installation. trestles and culverts, 16, Station and office
A complete track trough at one location. buildings, 20, Shops and enginehouses, 23,
A water crane. Complete with pit. Wharves and docks, and 44, Shop machinery.
A water treating plant.
Account 25, TOFC/COFC Terminals
Account 19, Fuel Stations
A complete building.
A complete fuel supply system, including ap- A complete building, including attached
purtenances. platform and ramp.
A pump house. A complete platform and attached ramp,
A fuel oil storage tank (large). structurally detached from a building.
A portable ramp.
Account 20, Shops and Enginehouses A complete fence.
A complete building, including attached Paving, each complete installation.
platform. An overhead crane, complete.
A complete platform structually detached Each sewer installation.
from a building. A truck or tractor used exclusively at TOFC/
A turntable. COFC terminals.
A turntable pit. Each floodlighting pole or tower installa-
A transfer table with machinery. tion.
A transfer table pit. Each floodlighting installation.
A sand storage and handling and drying ap- A power distribution system, complete.
paratus. Any applicable units listed under all other
Outdoor bins. Each complete installation. accounts.
A lorry track system (outside).
A boiler washing plant. Each complete in- Account 26, Communication Systems
stallation. A complete mile section or complete instal-
An overhead crane, outside. lation if less than a mile of pole line in-
Each outside pipe installation, steam, air, cluding cross arms, wires and appur-
water, etc. tenances.
Each sewer installation, storm or sanitary. Each mile or complete installation of cable
Paving. Each complete installation. with associated parts.
Each shop fence or wall installation. Each mile or complete installation of con-
Any applicable unit under account 16, Station duit with associated parts.
and office buildings. A complete tower.
A complete installation at each location
Account 22, Storage Warehouses
constituting a separate means of commu-
A complete building, including attached nication, such as radio, radar, carrier tele-
platform. phone, teletype, or other communication
A complete platform structurally detached systems.
from a building. For additional items see account 16, Station
For additional items, see accounts 16 Station and office buildings.
and office buildings, and 44, Shop machinery.
Account 27, Signals and Interlockers
Account 23, Wharves and Docks
A signal system installation complete, or
A timber float bridge. section thereof, with associated parts, in-
A steel float bridge. cluding masts, batteries, relays, ladder,
A wharf (including pile clusters). etc.
A timber incline. A complete mile section or complete instal-
A bulkhead. lation if less than a mile, or pole line in-
Jetties or breakwater. cluding cross arms, wires and appur-

Ferry racks (including pile clusters). tenances.
34
Each mile or complete installation if less Account 44, Shop Machinery
than one mile of cable with associated
A machine (including foundation and motor,
parts.
if any), such as lathes, shapers, slotters,
Each mile or complete installation if less
boring machines.
than one mile of conduit with associated
A furnace.
parts.
A boiler installation complete.
Switch movement with associated parts.
A complete building. A motor vehicle used in shops only.
An interlocking plant complete (excluding Testing equipment.
machine). Overhead crane, complete.
An interlocking machine. Account 45, Power Plant Machinery
Signal bridge complete.
Each highway crossing protection installa- A power plant machine, including founda-
tion complete. tion, such as a turbine, rectifier, dynamo,
Each car retarder installation complete. generator.
A traffic control or C.T.C. system installa- Any applicable unit listed under account 44,
tion complete. Shop machinery.
Account 29, Power Plants Account 52, Locomotives

Any applicable units listed under accounts Diesel electric, lead or booster, i.e., ‘‘A’’ or
16, Station and office buildings, and 20, Shops ‘‘B’’ units.
and enginehouses. Diesel electric. Extra or spare engines.
Electric locomotive.
Account 31, Power Transmission Systems Radio control locomotive.
A continuous mile, or a separate installation
Account 53, Freight-Train Cars
if less than a mile, of catenary complete
including catenary hangers, trolley wire A complete car.
and appurtenances. Motor equipment of a motor driven car.
A continuous mile, or a separate installation A propulsion motor, including generator.
if less than a mile, of transmission line, in- A freight container, complete.
cluding poles, wires, transformers, switch-
es, and other appurtenances. Account 54, Passenger-Train Cars
Each outside steam, air, etc., pipe line in- A complete car, including interior fur-
stallation. nishings.
A manhole. Motor equipment of a motor driven car.
Substation or switching station complete.
A propulsion motor, including generator.
Each mile, or installation if less than a mile,
of third rail. Account 55, Highway Revenue Equipment
A catenary bridge or support.
A high-tension transmission tower. A complete vehicle.
Any applicable units listed under accounts A chassis.
26, Communication systems, and 27, Signals A container.
and interlockers. A bogie.
Account 35, Miscellaneous Structures Account 56, Floating Equipment

A complete building, including attached A complete vessel or boat, exclusive of ma-
platform. chinery.
A complete platform structurally detached Machinery: a boiler, a motor, an engine.
from a building.
A conveyor system complete. Account 57, Work Equipment
An elevator system complete. (a) Rail equipment: (1) A complete car or ma-
A blowing system complete. chine, (2) A boiler, (3) An engine, (4) A
Any applicable units listed under other ac- motor, (5) Machinery equipment (with or
counts. without tractive machinery) such as con-
crete mixer, snow plow, derrick, steam
Account 37, Roadway Machines
shovel, or pile driver, (6) A complete motor
Each roadway machine complete including equipment.
accessories. (b) Floating equipment—Work: (1) A com-
Each on and/or off-track automotive vehicle plete vessel or boat, (2) A boiler, (3) An en-
complete, including appurtenant special- gine, (4) A motor. Any applicable units
purpose machinery. listed under other accounts.
Account 39, Public Improvements—Construction Account 58, Miscellaneous Equipment

Any applicable units listed under other ac- An airplane.

counts. A complete vehicle.
35
Account 59, Computer Systems and Word (d) Leased assets that meet the cri-
Processing Equipment teria for classification as a capital
A Mainframe lease shall be subject to depreciation
A Mini-computer over their useful lives in the same
A Word processing system manner as assets owned. If the capital
A Printer lease meets the criteria of either In-
A Monitor
A Modem struction 2–20(a)(1) or 2–20(a)(2), the
A Storage device asset shall be amortized in a manner
consistent with the lessee’s normal de-
FR 4325, Feb. 11, 1987]
preciation policy for owned assets. If
the lease does not meet either of these
2–20 Accounting for leases. (a) Leases two criteria, the asset shall be amor-
shall be accounted for as capital leases tized in a manner consistent with the
whenever the lease meets one or more lessee’s normal depreciation policy ex-
of the following four criteria: cept that the period of amortization
(1) The lease transfers ownership of shall be the lease term.
the property to the lessee by the end of (e) The accounting accorded the lease
the lease term, shall be subject to the same consider-
(2) The lease contains a bargain pur- ations as other obligations in
chase option, classifying them with current and non-
(3) The lease term is equal to 75 per- current liabilities in the classified bal-
cent or more of the estimated eco- ance sheet. Leases that meet the cri-
nomic life of the property, and, teria requiring capitalization shall be
(4) The present value at the begin- recorded in those accounts that provide
ning of the lease term of the minimum for carrier operating property or prop-
lease payments equals or exceeds 90 erty used in other than carrier oper-
percent of the fair value of the leased ations, as appropriate. The accounts
property to the lessor at the inception shall segregate the amounts pertaining
of the lease less any related investment to capital leases.
tax credit retained by the lessor.
(f) If the lease qualifies as an oper-
(b) If the lease does not meet any of
ating lease it should be accounted for
the four criteria, the lease shall be
by charging the rent to expense over
classified and accounted for as an oper-
ating lease. the lease term. The rental expense
(c) When accounting for capital should be recognized on a straight line
leases the lessee shall record the asset basis over the lease term unless an-
and the related obligation. The amount other method is more representative of
recorded as the asset and the obliga- the use and the benefits derived.
tion shall be the present value at the (g) The criteria specified in para-
beginning of the lease term of the min- graph (a) should be applied to all leases
imum lease payments during the lease regardless of the relationship between
term, excluding that portion of the the lessor and the lessee unless it is
payments representing executory costs clear that the terms of the lease trans-
such as insurance, maintenance, and action have been significantly affected
taxes to be paid by the lessor. However, by their relationship. In this situation,
if that amount exceeds the fair value of the accounting should be modified to
the leased property, the amount re- recognize economic substance rather
corded as the asset and the obligation than legal form.
shall be the fair value. The lessee shall (h) In the case of subsidiary compa-
compute the present value of the min- nies or companies under common con-
imum lease payments using its incre- trol whose principal business activity
mental borrowing rate unless (1) it is is leasing property or facilities to the
practicable to learn the implicit rate carrier, the carrier is encouraged to re-
computed by the lessor and (2) the im- quest special authority to file consoli-
plicit rate computed by the lessor is dated or combined financial state-
less than the lessee’s incremental bor- ments. If the carrier does not wish to
rowing rate. If both of those conditions file consolidated or combined financial
are met, the lessee shall use the im- statements, capitalization of the lease
plicit rate. will be required if the lease meets the
36
criteria that would require capitaliza- fined as a repair that is relatively so

tion. material in cost, repair time, or phys-
NOTE: The carrier shall follow generally ical damage that management’s in-
accepted accounting principles where an in- volvement in the determination of the
terpretation of the rules for lease accounting repair to be made is necessary and rel-
is needed or obtain an interpretation from
atively greater than usual. Program or
its public accountant or the Board.
project repairs are those repairs which
[42 FR 56611, Oct. 27, 1977, as amended at 52 are performed under a predetermined
FR 4321, 4325, Feb. 11, 1987] plan where estimates costs, time peri-
2–21 Freight train car repair costing. ods, and car types to be repaired are
Class I railroads shall report the costs identified.
of repairing freight train cars by car (2) The repair costs relating to light
types. and running repairs of system cars
(a) The accounting for freight train shall be allocated to the car types by
car repair costs shall agree with the using the Association of American
applicable instructions and texts of ac- Railroads’ Car Repair Billing System
counts in 49 CFR Part 1201 relating to (CRBS) as the process for distributing
the equipment repair process (see Note light and running repairs. The CRBS
A). will be the tracking system for record-
(b) Railroads may assign either ac- ing the number of repairs, the car
tual costs, standard costs, or a com- types and types of repairs. Then by ap-
bination of both to the accounting plying the CRBS standard costs to the
process. Standard costs, if used, shall particular repairs, standard costs rela-
recognize the differences in performing tionships by car type can be developed
repairs on various types of equipment, and used to distribute actual light and
and the differences related to specific running repair cost pools to the car
repair facilites. Standard costs shall be types.
based on adequate operational data (3) Railroads shall match repair costs
which are reviewed at least annually. billed by and paid to foreign roads with
The resulting variances (price, effi- the car types that were repaired. For-
ciency, capacity, etc.) shall be reason- eign billings for light and running re-
ably allocated back to the car types to pairs are usually conducted through
derive the amounts reported in Form CRBS, and therefore, the car types can
R–1. be identified. For heavy off-line re-
(c) Railroads shall report repair costs pairs, car type identification is pos-
by the freight train car types shown in sible because system management is
Schedule 415 of Form R–1. In assigning generally involved with the authoriza-
repair costs, railroads may use either tion of such heavy repairs and car iden-
one of the following methodologies: tification numbers are generally in-
cluded in the billing process.
Level I: Job Order Cost System
(4) Repair costs relating to foreign
Railroads may use a job order cost system freight train cars shall also be reported
for assigning repair costs to the car types for by car types. However, a separate
freight train cars. Under this methodology, breakdown between foreign and system
railroads shall directly match direct labor
and materials with the specific unit of equip-
repair costs is not required for Board
ment that was repaired. Actual costs, stand- reporting purpose. Car type identifica-
ard costs, or a combination of both may be tion for light and running repairs to
used as stated above. foreign cars can be obtained from
CRBS tapes. The cost of heavy repairs
Level II: Alternative Repair Costs Methodology
to foreign cars should be accumulated
Railroads not using the job order cost sys- by car types. The resulting expense
tem shall report freight train car repair credits from foreign railroads should be
costs by using the methodology described assigned to the car types to which they
below:
relate.
(1) The repair costs relating to heavy, (5) Railroads shall match any result-
program, or project repairs of freight ing expense credits with the car types
train cars shall be directly assigned to to which they relate. This can occur,
the car types repaired by using actual for example, when a railroad is charged
or standard costs. A heavy repair is de- with the repair costs of system cars,
37
but the responsibility of the repair ul- 2–23 Accounting for engineering costs.
timately rests with and is paid by a (a) The pay and expenses of engi-
foreign road. neers, assistants and clerks engaged in
(d) Railroads shall submit to the the survey and construction of new
Board any repair cost by car type lines and extensions shall be included
methodology which does not agree with in the cost of the particular property
item (c) above. The Board shall review involved. This accounting treatment
the methodology and determine if it is also applies in making additions to and
acceptable for reporting purposes. improvements of the carriers road, in-
(e) Railroads may submit justifica- cluding wharves and docks.
tion and supporting documents re-
List of Officers and Employees
questing waiver from provisions re-
quired by this instruction. This provi- Chief engineer.
sion is intended to provide relief for Assistant engineers.
those smaller Class I railroads that Bridge and signal engineer.
Architects and draftsmen.
might be unduly burdened by the cost
Chief clerk and other clerks.
of developing and maintaining the re- Transitmen and levelmen.
quired system. Waivers shall be di- Rodmen and chainmen.
rected to the Board’s Accounting and Cooks and porters on business cars.
Valuation Board.
(f) Equipment repair cost records, in- ITEMS OF EXPENSE AND SUPPLIES
cluding the allocation methods used, Atlases and maps.
shall be maintained and made available Barometers.
to the Board upon request. Books for office use.
Business car service.
NOTE A: The following accounts and ref- Cameras; compasses.
erence pertain to the freight train car repair Camp equipage.
process: Chains for surveyors.
11–22–42 Drawing boards.
21–22–42 Drawing instruments.
39–22–42 Field glasses.
40–22–42 Furniture repairs and renewals.
41–22–42 Heating and lighting.
61–22–42 Magnets and magnifiers.
Instruction 2–12, Units of property rebuilt or Official train service.
converted. Paper, blue-print.
Periodicals and newspapers.
[46 FR 52951, Dec. 4, 1981, as amended at 52 Photographic supplies.
FR 4321, 4325, Feb. 11, 1987] Printing and stationery.
2–22 Map specifications. Provisions for business cars.
Rent and repairs of offices.
(a) Class I Railroad companies shall Rods for surveyors.
maintain current maps of its property Sextants and slide rules.
and shall promptly record any changes Telegraph and telephone service.
that may take place. Traveling expenses.
(b) Class I companies shall furnish, Triangles and tripods.
on request, copies of maps showing its (b) When employees listed in (a)
property as it exists on such date or above are engaged in the repair and
dates as may be fixed by the Board. maintenance of the roadway, their pay
(c) Class I companies shall maintain and expenses shall be charged to the
planimetric maps that show right-of- appropriate operating expense ac-
way, track and other important facili- counts.
ties at a scale to show sufficient detail. (c) Expenditures for tentative or pre-
(d) Maps shall be indexed and titled liminary surveys shall be carried in ac-
to clearly indicate the specific area de- count 743, Other deferred debits, until it
picted. is determined whether or not to con-
(e) All maps shall be prepared in ac- tinue the work. If the project is contin-
cordance with generally accepted map- ued, expenditures for all surveys shall
ping practices. be transferred to the appropriate prop-
[47 FR 50267, Nov. 5, 1982; 48 FR 32833, July 19, erty account and, if abandoned, to ap-
1983] propriate income accounts.
38
(d) The cost of designing, making point of free delivery plus freight
plans and specificaitons, and super- charges of foreign lines, and the costs
vising the construction of equipment of inspection and loading assumed by
shall be included in the cost of the par- the carrier; also a proportion of store
ticular equipment. expenses. Such costs shall not include
(e) Fees and expenses of architects expenses of transportation over the
specially employed for designing or su- carrier’s line. Royalties for patent
pervising the construction of buildings rights on mechanical appliances used
shall be included in the accounts ap- in repairs of equipment shall be in-
propriate for the cost of the buildings cluded in the cost of the repairs. The
constructed. cost of boarding, traveling, and other
[49 FR 2254, Jan. 19, 1984, as amended at 52 incidental expenses of employees shall
FR 4321, Feb. 11, 1987] be included in the accounts to which
the pay of the employees is chargeable,
2–24 Accounting for other general ex- except where otherwise specified in the
penditures. text of the accounts. In calculating the
Expenditures of a general nature that cost of materials used proper allowance
are attributable but not directly as- shall be made for the value of unused
signable to original construction or im-
portions and of cuttings, turnings, bor-
portant expansion of road shall be equi-
ings, etc., and for the value of the ma-
tably assigned to the cost of specific
terial recovered from property repaired
units or segments of property. These
and from temporary tracks, scaf-
expenditures include the pay and ex-
folding, cofferdams, and other tem-
penses of executive and general officers
porary structures used in repair work.
and their assistants engaged exclu-
(c) The cost of repairs shall include
sively with such construction, law ex-
the cost of inspecting to determine the
penses (other than organization ex-
repairs necessary, and of adjusting or
penses), stationery and printing, and
taxes before property is used in trans- repairing parts, both of road property
portation operations. and of equipment, such as the repairing
of locomotives, cars, frogs, switches,
[49 FR 2255, Jan. 19, 1984, as amended at 52 rails, etc.; the cost of inspecting and
FR 4321, Feb. 11, 1987] testing after repairs have been made
such as the testing of locomotives after
INSTRUCTIONS FOR MAINTENANCE repairs to determine whether the re-
EXPENSES pairs have been properly made, and the
running of repaired locomotives light
3–1 Items to be charged. (a) The ac- in order to break them in for regular
counts provided for maintenance of service; incidental costs of repairs,
road property and of equipment are de- such as the construction or removal of
signed to show the cost of repairs and false work in connection with mainte-
also the loss through depreciation of nance, cost of demolishing retired road
the property used in transportation op- property and disposing of the wreckage
erations, including expenses resulting therefrom when the property is dis-
from ordinary wear and tear of service, mantled by or for the carrier; cost of
exposure to the elements, inadequacy, maintaining or protecting traffic dur-
obsolesence, or other depreciation, or ing the progress of construction work,
from accident, fire, flood, or other cas- including the cost of constructing,
ualty. maintaining and removing temporary
(b) These accounts shall include the tracks required for maintaining traffic
cost of labor, materials and supplies, during the progress of the work; cost of
work-train service, floating equipment mowing and beautifying grounds
work service, special machine service, around buildings; repairing fences,
contract work, privileges, protection sidewalks, driveways, and streets with-
from casualties, and other analogous in or adjacent to such grounds; cost of
items of expense in connection with removing snow from roofs of buildings
the maintenance of the plant used in (when not removed by those employed
railway service. The cost of materials in the buildings); cost of periodical res-
and supplies, which shall include small torations of seasonal features, such as
tools, shall include the cost at the gardens, shrubbery, and lawns; cost of
39
operating hothouses in connection with (c) For the purpose of the group plan
the work of beautifying grounds; and of depreciation accounting, the fol-
cost of clearing and removing casual lowing primary accounts are classed as
incumbrances, such as ice, snow, and depreciable accounts:
fallen timber.
Road accounts:
(d) An employee’s job classification 3. Grading.
shall not govern the accounting for 4. Other right-of-way expenditures.
work performed. Charges to a par- 5. Tunnels and subways.
ticular expense function shall be based 6. Bridges, trestles and culverts.
on the nature of the work performed. 7. Elevated structures.
8. Ties.
[42 FR 35017, July 7, 1977, as amended at 52 9. Rails and other track material.
FR 4325, Feb. 11, 1987] 11. Ballast.
13. Fences, snowsheds, and signs.
INSTRUCTIONS FOR DEPRECIATION 16. Station and office buildings.
17. Roadway buildings.
ACCOUNTS 18. Water stations.
19. Fuel stations.
4–1 Method. (a) There shall be 20. Shops and enginehouses.
charged monthly to operating expenses 22. Storage warehouses.
or other appropriate accounts and cred- 23. Wharves and docks.
ited to account 735, Accumulated depre- 24. Coal and ore wharves.
ciation; Road and equipment property, 25. TOFC/COFC terminals.
during the service life of depreciable 26. Communication systems.
road and equipment property, includ- 27. Signals and interlockers.
29. Power plants.
able in accounts classed as depreciable, 31. Power transmission systems.
amounts which will approximate the 35. Miscellaneous structures.
loss in service value not restored by 37. Roadway machines.
current repairs or covered by insur- 39. Public improvements-construction.
ance. The charges for accruing depre- 44. Shop machinery.
ciation currently shall be computed in 45. Power plant machinery.
conformity with the group plan by ap- Equipment accounts:
plying to the cost of property such per- 52. Locomotives.
centage rates as will distribute the 53. Freight-train cars.
54. Passenger-train cars.
service value by the straight-line 55. Highway revenue equipment.
method in equal annual charges to op- 56. Floating equipment.
erating expenses or other accounts dur- 57. Work equipment.
ing the estimated life of the property. 58. Miscellaneous equipment.
In the case of track accounts 8, 9 and 59. Computer systems and word processing
11, service value shall reflect net sal- equipment.
vage value. For road property, the cost (d) When abandonment of a branch
shall be original cost or estimated line or other important segment of the
original cost, as used in the valuation track structure or other part of the
records, adjusted to current date. If a plant for which depreciation charges
carrier submits proof that the actual are not includable in the accounts as
cost of depreciable property is substan- foreseeable within a reasonable period
tially different from cost figures in the of time due to exhaustion of traffic, ob-
valuation records, the carrier may, solescence or other causes, application
with the approval of the Board, use may be made to the Board for author-
such cost figures as the depreciation ity to record a suitable provision in an-
base. ticipation of a probable loss.
(b) The term group plan means the
plan under which depreciation charges [42 FR 35017, July 7, 1977, as amended at 48
are accrued upon the basis of the cost FR 4183, Feb. 18, 1983; 52 FR 4325, Feb. 11,
1987]
of depreciable property includable in
accounts classed as depreciable using 4–2 Rates of depreciation. (a) A sepa-
the service lives of the individual de- rate composite annual percentage rate
preciable units in the accounts and for each depreciable property account,
properly weighing to determine the or a subgroup in that account, shall be

composite annual rate of depreciation. used in computing annual depreciation
40
expenses and accumulated deprecia- data bearing on prospective service

tion. The composite rates shall be lives.
based on the results of a depreciation (b) The carrier also shall keep such
study performed by each railroad. A de- records of depreciable property and
preciation study shall, in general, con- property retirements as will reflect the
tain the following components: service life of each class of property
(i) Actuarial or semiactuarial meth- which has been retired, or will permit
ods for determining service lives for the determination of service life indi-
road and equipment properties; cations by past experience of useful life
(ii) Salvage value calculations for tenure of comparable property, turn-
road and equipment properties; over, or other appropriate methods;
(iii) Accumulated depreciation for also such records as will reflect the
each account or subaccount as appro- percentage of value of the salvage for
priate; property retired from each class of de-
(iv) Other factors and related cal- preciable property.
culations involving the depreciation (c) For purposes of analysis the car-
process; and rier shall maintain subsidiary records
(v) A commentary on any adjust- in which the accumulated depreciation
ments and judgmental factors used in account is broken down into compo-
the study. nent parts corresponding to each pri-
(b) Railroads shall submit to the mary account to show the current
Board for review and approval a report credits and debits and the balance for
on depreciation studies and proposed each account. Such detailed informa-
depreciation rates every three years for tion shall be reported annually to this
equipment property, and every six Board. For balance sheet purposes, the
years for road property. Railroads can, accumulated depreciation account
however, submit depreciation studies shall be treated as a single composite
prior to its scheduled year, in which account for depreciable property.
case a new cycle will begin. (d) Carriers shall be prepared to jus-
(c) In computing monthly deprecia- tify all track depreciation rates by
tion charges, the annual percentage keeping appropriate data on the service
rates shall be applied to the deprecia- lives and salvage values of track com-
tion base as of the first of each month ponents which went into the life and
and the results shall be divided by net salvage computation of each pri-
twelve. mary account in each density category.
(d) Class II railroads are exempt from (e) The investment and related accu-
the three-year and six-year cyclical re- mulated depreciation for accounts 3, 4,
views, but shall submit depreciation 5, 8, 9, 11 and 39 must be maintained by
studies when requested by the Board. distinct traffic density categories.
Class III railroads are not required to Each line segment shall be identified
submit depreciation studies. on January 1 of each year as belonging
(e) A separate track depreciation rate to one of the following traffic density
shall apply to each primary property classes, based on the average traffic
account in each track density category density in the preceding three years:
as provided in Instruction 4–3(d). Track
depreciation rates shall be developed DENSITY
by estimating the average life based on
an acceptable depreciation method- Class Description
ology, consistently applied, including I Lines carrying at least 20 million gross ton-miles per
as an option the units of production mile on an annual basis and not designated as be-
method based on gross ton-miles per longing to Density Class III.
II Lines carrying less than 20 million gross ton-miles
mile of track. per mile on an annual basis and not designated as
[42 FR 35017, July 7, 1977, as amended at 46 belonging to Density Class III.
III Lines identified as potentially subject to abandon-
FR 20210, Apr. 3, 1981; 48 FR 7184, Feb. 18, ment pursuant to Section 10904 of the Interstate
1983; 52 FR 4321, Feb. 11, 1987] Commerce Act.
IV Yard and way switching tracks.
4–3 Depreciation records to be kept. (a) V Electronic yards.
The carrier shall maintain for each
class of property in convenient and ac- NOTE A: For purposes of designating line
cessible form engineering and other segments as belonging to one of the density
41
classes, the carrier shall consider all traffic portion of the service loss on property
carried over the segment whether in the car- retired from service whether billed cur-
rier’s trains or in the trains of other carriers
rently as depreciation or when retire-
(estimated if not known).
NOTE B: When a carrier operates systems of ments occur as the loss in service
parallel tracks on a single roadbed, the den- value. The using carriers shall be re-
sity associated with the related segment of a quired to account for depreciation or
rail route shall be the aggregate gross ton- retirement of units of road property
miles on all individual tracks. jointly used but not owned to the ex-
[42 FR 35017, July 7, 1977, as amended at 46 tent of their contract liability. The
FR 20210, Apr. 3, 1981; 48 FR 7183, Feb. 18, same principle shall apply to terminal
1983; 52 FR 4321, Feb. 11, 1987] companies and their nonowner tenants
4–4 Leased property—depreciation. (a) in accounting for depreciation accruals
The carrier shall include in operating or retirement charges recorded in the
expenses charges for depreciation on accounts of the terminal companies.
road property and equipment used but
not owned, the rent for which is includ- INSTRUCTIONS FOR INCOME AND
able in the lease rental accounts, and
shall maintain the same records of BALANCE SHEET ACCOUNTS
service lives, salvage values, etc., as
provided for owned road property and 5–1 Current assets. (a) In the group of
equipment. The excess of the total accounts designated as current assets
compensation paid over the amount shall be included cash, those assets
chargeable for depreciation shall be in- which are readily convertible into cash
cluded in the rent account. If settle- or are held for current use in oper-
ment between the carrier and the les- ations, current claims against others
sor is not currently made, the amount and amounts accruing to the carrier
of the depreciation accrued during the which are subject to settlement in the
period of the lease shall be credited by ordinary course of business within one
the carrier to account 772. Accrued li- year. There shall not be included in
ability; Leased property. The necessary this group of accounts any amount the
adjustments of the difference between collection of which is not reasonably
the balance thus accrued in that ac- assured within one year because of the
count and the actual amount of settle- known financial conditions of the debt-
ment shall be made appropriately or or otherwise. Such items shall be in-
through accounts 519, Miscellaneous included in account 741, Other assets, at
come, or 551, Miscellaneous income an amount not in excess of a reason-
charges, at the time settlement for de- able estimate of realizable value. Items
preciation on the property is made of current character but of doubtful
with the lessor. value shall be written down or written
(b) The carrier shall not include in
off by charge to account 63–61–00, Gen-
the depreciation account in operating
eral—Uncollectible accounts—General and
expenses any charges for depreciation
administrative, or account 553,
of equipment used but not owned when
the rents therefor are not included in Uncollectible accounts, as appropriate.
the lease rental accounts but shall in- Adjustment of these items of doubtful
clude such charges in the appropriate value shall be made by direct reduction
other rent expense accounts. of the asset account in which such
4–5 Jointly used property—deprecia- items are carried or by provision in ac-
tion. The owning carrier shall include count 709.5, Allowance for uncollectible
in the depreciation accounts in oper- accounts, for the estimated
ating expenses the charges for depre- uncollectible amount.
ciation on units of depreciable property (b) The carrier shall transfer the esti-
jointly used with one or more other mated realizable value of obsolete ma-
carriers. The owning carrier shall cred- terial to account 741, Other assets, equi-
it and each using carrier shall charge tably distribute the loss due to obsoles-
the appropriate joint facility accounts cence among the accounts ordinarily
in operating expenses with the chargeable for such classes of material,
amounts billed by the owning carrier and concurrently credit account 712,
against each using carrier for its pro- Material and Supplies.
42
5–2 Recorded value of securities 798.1, Net Unrealized Loss on Noncurrent

owned. (a)(1) The investment in securi- Marketable Equity Securities, with a
ties other than those issued or assumed contra entry to valuation account 724.
by the accounting company shall be re- (5) If there is a change in the classi-
corded in these accounts at cost, but fication of a marketable equity secu-
excluding amounts paid for accrued in- rity between current and noncurrent,
terest and accrued dividends. the security shall be transferred at the
(2) Accounts 702, Temporary Cash In- lower of its cost or market value at
vestments, 721, Investments in Affiliated date of transfer. If market value is less
Companies, and 722, Other Investments, than cost, the market value shall be-
shall be maintained in such a manner come the new cost basis, and the dif-
as to reflect the marketable equity se- ference shall be accounted for as if it
curities’ portion (see definition 26) and were a realized loss and included in the
other securities or investments. determination of net income.
(3) For the purpose of determining (6) The accounting company shall
net ledger value, the marketable eq- write down the ledger value of any se-
uity securities in account 702 shall be curities to the extent of impairment in
considered the current portfolio and their value or write off entirely if there
the marketable equity securities in ac- is no reasonable prospect of realizing
counts 721 and 722 (combined) shall be any value therefrom. For long term in-
considered the noncurrent portfolio. vestments in marketable equity securi-
The net ledger value of each portfolio ties, when the decline in market value
shall be the lower of its aggregate cost
below cost is judged to be other than
or market value. (See definition 26.)
temporary, the cost basis of the indi-
The amount by which aggregate cost
vidual security shall be writen down to
exceeds market value shall be ac-
a new cost basis. The amount of the
counted for as the valuation allowance.
write-down shall be accounted for as
Account 702, Temporary Cash Invest-
realized loss by a charge to account
ments, shall be subdivided to include
551, Other Income Charges, and a credit
the valuation allowance for the mar-
to account 723, Reserve for Adjustment of
ketable equity securities included
Investment in Securities. The new cost
therein. Account 724, Allowance for Net
basis shall not be changed for subse-
Unrealized Loss on Noncurrent Market-
able Equity Securities—Cr., is the valu- quent recoveries in value.
ation allowance for the marketable eq- (b)(1) For financial statement pur-
uity securities recorded in account 721, poses the carrier shall follow the prin-
Investments in Affiliated Companies, and ciples of equity accounting for (1) all
722, Other Investments. Marketable eq- investments in corporate joint ven-
uity securities accounted for by the eq- tures (see definition 21(c)), and (2) all
uity method shall not be combined investments in voting stock of affili-
with other marketable equity securi- ated companies giving the carrier the
ties when determining aggregate cost ability to significantly influence the
and market value. operating and financial policies of an
(4) Realized gains and losses (the dif- investee (see definition 21(b)). For pur-
ference between net proceeds from sale poses of this instruction an investment
and cost) shall be included in the deter- of 20 percent or more of the out-
mination of net income of the period in standing voting stock of an investee
which they occur. Changes in the valu- will indicate the ability to exercise sig-
ation allowance for marketable equity nificant influence over an investee in
securities included in account 702 shall the absence of evidence to the con-
be charged to account 551, Miscella- trary.
neous Income Charges, or credited to ac- (2) Since the equity method is not to
count 519, Miscellaneous Income, as ap- be effected by entries in the books of
propriate, with a contra entry to the accounts but is to apply only in finan-
valuation allowance contained within cial reports to the Board, the carrier
account 702. Changes in the valuation shall establish worksheet or memo-
allowance for marketable equity secu- randum accounts. Three basic work-
rities included in accounts 721 and 722 sheet or memorandum accounts are
shall be recorded in equity account needed:
43
(i) An investment account to include (iv) Accumulated amortization of dif-

(1) equity in the undistributed earnings ference between cost and equity in net
or losses of the investee since the date assets.
of acquisition (see definition 21(g)); (2) (v) Unamortized balance of difference
accumulated amortization of the dif- between cost and equity in net assets.
ference between cost and net assets at (vi) Equity in undistributed earnings/
date of acquisition (see (b)(3) below); losses for each year since date of acqui-
and other adjustments for disposition sition.
or writedown of investments. (vii) Dividends received since date of
(ii) An income account to include (1) acquisition if determinable.
the investor’s share of the investee’s (viii) Proceeds from sale of invest-
undistributed profits or losses for each ments.
reporting period subsequent to acquisi- (4) Any difference between the inves-
tion of the investment except that in tor’s cost and its share of the net as-
the year of acquisition such amount sets of the investee at date of acquisi-
shall be determined from the date of tion shall be allocated to specific as-
acquisition; (2) amortization for the re- sets of the investee to the extent the
porting period of the difference be- difference is attributable to them.
tween cost and net assets at date of ac- When the difference is allocated to de-
quisition. This account shall be closed preciable or amortizable assets, depre-
at year-end to the retained earnings ciation and amortization (through the
memorandum account discussed in investment and income memorandum
paragraph (iii) below. accounts) should absorb the difference
(iii) A retained earnings account to over the remaining life of the related
include (1) equity in the undistributed assets. If the difference is not related
earnings or losses of the investee since to specific accounts, it should be con-
the date of acquisition; (2) accumu- sidered goodwill and amortized over a
reasonable period not to exceed 40
lated amortization of the difference be-
years. For investments made prior to
tween cost and net assets acquired at
November 1, 1970, amortization of good-
date of acquisition (see (b)(3) below).
will is not required in the absence of
(iv) Other memorandum accounts evidence that the goodwill has a lim-
will be needed for such adjustments as ited term of existence.
gains and losses on disposition of in- (5) The financial statements of the
vestments, recognition of impairments investee that are used for equity ac-
in value, the investor’s share of ex- counting should be timely. If the ac-
traordinary and prior period adjust- counting year of the investee differs
ments reported in the investee’s finan- from that of the investor then the most
cial statements (see instruction 1–2(d)), recent available financial statements
and provision for deferred taxes where may be used. The lag in reporting
it is reasonable to assume that undis- should be consistent from period to pe-
tributed earnings of an investee will be riod.
transferred to the investor in a taxable (6) Material profits or losses on
distribution. These memorandum ac- transactions between the investor and
counts shall be closed at year-end to investee shall be eliminated until real-
the retained earnings memorandum ac- ized by either company as if the two
count discussed in paragraph (iii) were consolidated.
above. (7) A transaction of the investee of a
(3) The carrier shall retain the fol- capital nature that affects the inves-
lowing information for each investee in tor’s share of the investee’s stock-
support of the worksheet or memo- holder’s equity should be reported in
randum accounts: the financial statements as if the two
(i) Original cost of investment. were consolidated.
(ii) Equity in net assets of investee at (8) The investor shall deduct any
date of acquisition. dividends applicable to outstanding cu-
(iii) Allocation of difference between mulative preferred stock whether or
cost and equity in net assets, namely, not declared, and any other dividends
to specific assets of investee or to declared when computing its share of

goodwill. undistributed earnings or losses.
44
(9) The investor shall suspend appli- (i.e., when total cost including broker-
cation of the equity method when the age fees, taxes, commissions, etc., is
investment (including the investment less than par), such discounts may be
memorandum account) together with amortized over the remaining life of
any net advances made to the investee the securities through periodic debits
is reduced to zero. Additional losses to the account in which the securities
shall not be provided for unless the in- are carried (preferably coincident with
vestor has guaranteed obligations of entries recording interest accruals) and
the investee or is otherwise committed credits to the same account in which
to provide further financial support for interest income is credited. No debits
the investee. If the investee subse- shall be made in respect to discounts
quently reports net income the inves- upon securities held as investments or
tor shall resume applying the equity in special funds if there is reason to be-
method at such time as its share of lieve that such securities will be dis-
that net income equals the share of net posed of by redemption or otherwise at
losses not recognized during the period less than par or will not be paid at date
of suspension. of maturity. When securities with a
(10) When the investor’s voting stock fixed maturity date are purchased at a
interest falls below the level of owner- premium (i.e., when the total cost in-
ship described in paragraph (b)(1) of cluding brokerage fees, taxes, commis-
this instruction, the investment no sions, etc., is in excess of par), such
longer qualifies for the equity method. premium may be amortized over the re-
Should dividends received on the in- maining life of the securities through
vestment in subsequent periods exceed periodic credits to the account in
the investor’s share of earnings for which the securities are carried (pref-
such periods, the investment memo- erably coincident with entries record-
randum and income memorandum ac- ing interest accruals) and debits to the
counts shall be reduced by the excess same accounts in which the interest in-
amount. come is recorded.
(11) When the level of ownership of an NOTE: The carrier shall follow generally
accepted accounting principles where an in-
investment increases to that described terpretation of the rules for equity account-
in paragraph (b)(1) of this instruction, ing is needed or obtain an interpretation
the equity method shall be applied. The from its public accountant or the Board.
memorandum accounts for the invest- 5–3 Discounts, expenses, and premiums
ment, income (for current year’s equity on debt. (a) Ledger accounts shall be
in undistributed earnings less provided to cover the discounts, ex-
amoritzation), and retained earnings penses, and premiums on the sale or re-
(for prior years’ equity in undistrib- sale of each subclass of funded debt and
uted earnings less amortization) shall of receivers’ and trustees’ securities
be adjusted retroactively on a step-by- issued for the benefit of or assumed by
step basis determining the equity in the company. (For explanation of sub-
net assets at date of acquisition, amor- class see account 765, Funded debt
tization adjustment, and equity in un- unmatured.) The net debit balances re-
distributed earnings or losses at each maining in the ledger accounts for dis-
level of ownership. Where small pur- count and premium shall be included in
chases are made over a period of time account 770.1, Unamortized debt dis-
and then a purhase is made which count, and the net credit balances in
qualifies the investment for the equity account 770.2, Unamortized premium on
method, the date of latest purchase debt. Debt expense shall be included in
may be used as date of acquisition. account 743, Other deferred debits.
(12) Information having significance (b) Each fiscal period there shall be
with respect to the investor’s owner- charged to account 548, Amortization of
ship in investees shall be disclosed in discount on funded debt, a proportion on
notes to financial statements of annual a consistent basis of each of the debit
reports filed with the Board in accord- balances in the discount and premium
ance with generally accepted account- accounts and correspondingly there
ing principles. shall be credited to income account 517,
(c) When securities with a fixed ma- Release of premiums on funding debt, a
turity date are purchased at a discount similar proportion of each of the credit
45
balances in these accounts. Related 5–4 Discount, premium, and assessment

debt expense shall also be charged to on capital stock. (a) Separate ledger ac-
account 548 on a proportional and con- counts shall be provided for each sub-
sistent basis. The amounts for the re- class of capital stock issued or assumed
spective debit balances for discount by the accounting company to cover
and expenses applicable to a particular discount suffered and premium realized
issue of obligations may be charged di- at the time of sale of capital stock.
rectly to account 548 at time of issue General levies or assessments against
when the aggregate of such amounts stockholders shall be credited to the
does not appreciably affect the ac- appropriate ledger accounts for the
counts. The method of apportioning subclass of capital stock against which
debt discount, issue costs, and pre- the levy or assessment is made.
mium to accounts 517 and 548 shall be (b) The total of net debit balance in
the interest method, where the effective these ledger accounts shall be included
in account 793, Discount on capital stock,
interest rate on the date of issuance is
and the total of net credit balances in
applied to the carrying value (debt, less
account 794, Premiums and assessments
related discount, and issue cost, plus
on capital stock.
related premium of each specific issue (c) Discount on each subclass of cap-
to the beginning of any given period.) ital stock may be offset or reduced by
However, other methods of amortiza- charges to account 794, Premiums and
tion may be used if the results ob- assessments on capital stock, to the ex-
tained are not materially different tent that net gains from premiums or
from those which would result from the assessments have been included therein
interest method. or to account 795, Other capital, to the
(c) When any funded debt which has extent that net gains from reacquisi-
been actually issued to bona fide hold- tion and resale or retirement of capital
ers for value is reacquired by the ac- stock applicable to such subclass have
counting company, that proportion of been included therein. Any remaining
the balance remaining in accounts con- discount may be amortized by charge
taining discount, expense and premium to account 616. Other debits to retained
on funded debt for the subclass of the earnings, or may be retained and car-
security reacquired applicable to the ried in account 793, Discount on capital
portion reacquired shall be credited or stock, until the stock to which the dis-
charged thereto, as appropriate, and count applies is retired.
concurrently charged or credited to ac- (d) In case the accounting company is
count 519, Miscellaneous income, account permitted and elects with the approval
551, Miscellaneous income charges; or to of the Board, to distribute all or any
account 570, Extraordinary items, as ap- part of the net balance of other paid-in
propriate, in accordance with the text capital to its stockholders, the amount
of these accounts. Such proportion thus distributed shall be charged to ac-
shall be based upon the ratio of the par count 795, Other capital.
value of the security reacquired to the (e) When capital stock is reacquired,
par value of all the securities of the either by purchase or donation, and is
subclass actually outstanding imme- retired or cancelled, account 791, Cap-
diately before such reacquirement. ital stock, shall be charged with the par
Gains and losses from extinguishment value, stated value of no par stock, or
of debt (excluding debt maturing seri- if no par stock without stated value,
ally) which is acquired to satisfy sink- the proportionate amount at which the
ing fund requirements, shall not be re- particular class of stock is included in
corded as extraordinary items regard- account 791. Any excess of reacquisi-
tion cost over the recorded value of the
less of amount, but shall be included in
stock shall be charged to account 795,
accounts 519 and 551, as appropriate.
Other capital, to the extent of the accu-
Such gains and losses shall be sepa-
mulated net gains included in this ac-
rately disclosed in reports to this
count applicable to reacquisition and
Board.
resale or retirement of such subclass.
[42 FR 35017, July 7, 1977, as amended at 52 Any remaining excess reacquisition

FR 4325, Feb. 11, 1987] cost shall be charged to account 616,
46
Other debits to retained earnings. Any closure shall be made of contingencies

excess of recorded value over that might result in gain, but care
reaquisition cost shall be credited to shall be exercised to avoid misleading
account 795, Other capital. implications as to the likelihood of re-
(f) When capital stock is reacquired, alization.
either by purchase or donation, and is [42 FR 35017, July 7, 1977, as amended at 52
not retired or cancelled, nor properly FR 4326, Feb. 11, 1987]
includable in sinking or other funds,
the reacquisition cost shall be charged 5–7 Long-term obligations. Commit-
to account 798.5, Treasury stock. ments under unconditional purchase
(g) When treasury stock is resold, ac- obligations associated with suppliers’
count 798.5, Treasury stock, shall be financing arrangements and future
credited with the cost paid for it. Gains payments on long-term borrowings and
shall be credited to account 795, ‘Other redeemable stock shall be disclosed in
capital.’ Losses shall be charged to ac- accordance with generally accepted ac-
count 795, Other capital, to the extent counting principles. Such disclosures
that previous net gains from sales or shall not preclude accounting recogni-
retirements of the same class of stock tion if the substance of a financing ar-
are included therein; otherwise, to ac- rangement is the acquisition of an
asset or incurrence of a liability.
count 616, Other debits to retained earn-
ings. [47 FR 4266, Jan. 29, 1982, as amended at 52
5–5 Joint liabilities. The accounting FR 4321, Feb. 11, 1987]
company shall state as a liability in its
balance sheet the difference between INSTRUCTIONS FOR CLEARING
the total par value of securities jointly ACCOUNTS
or severally issued by it and others and
the portion of such liability which, 6–1 Items to be charged. In recogni-
under the joint arrangement, it is ex- tion of the fact that certain expendi-
pected will be liquidated by the other tures incident to the construction and
party or parties to the joint arrange- the operation of property are not
ment. The amount of the jointly or chargeable directly to any particular
severally issued securities expected to property investment or expense ac-
be liquidated by the other party or par- count, clearing accounts have been pro-
ties shall be shown as a contingent li- vided for the purpose of securing an eq-
ability in accordance with instruction uitable distribution of such items to
5–6 pertaining to contingent assets and the proper primary accounts.
liabilities. 6–2 Material and stationery store ex-
5–6 Contingencies. (a) The proper ac- penses. (a) To clearing accounts called
counting treatment for contingencies Material store expenses and Stationery
depends upon whether the contingency store expenses shall be charged expenses
is: Probable: the event or events are in connection with purchasing, han-
likely to occur; Reasonably possible: the dling and storing material and sta-
chance of occurrence of the future tionery in and distributing it from the
event or events is more than remote, company’s storehouses. Including the
but less than likely; or Remote: the pay of officers and employees in the
chance of occurrence of the future purchasing and store departments and
event or events is slight. their traveling, office, and other ex-
(b) Loss contingencies must be ac- penses; also expenses, including wages,
crued when they are probable and the fuel, and supplies, of operating switch-
amount of loss can be reasonably esti- ing locomotives when exclusively as-
mated. Where they are only reasonably signed to the service of switching at
possible, only footnote disclosure is re- material storehouses. (Expenses of in-
quired. Where they are remote, foot- cidental switching at material yards by
note disclosure is not required, but is locomotives in regular switching serv-
permitted. ice shall be charged to the appropriate
(c) Gain contingencies usually are transportation accounts.) The pay and
not reflected in the accounts since to expenses of men employed in pur-
do so might be to recognize revenue chasing or inspecting a single class of

prior to its realization. Adequate dis- material, such as ties, shall be added as
47
store expenses to the cost of that par- transportation switching service shall
ticular material. be charged to appropriate transpor-
(b) The total amount of storehouse tation accounts).
expenses charged to these accounts 6–4 Gravel and sand pits and quarries.
shall be distributed among the ac- (a) When a gravel or sand pit or quarry
counts to which material and sta- is opened for operations likely to ex-
tionery has been charged, in proportion tend over a long period, an account
to the amounts charged to each ac- shall be set up designated, Operations of
count for the items issued, except that gravel pit at lllllll, or Operations
the amount representing the pur- of quarry at llll, as the case may
chasing department expenses shall be be. To this account shall be charged
apportioned on the value of the items cost of the land in excess of its esti-
issued which were purchased by that mated value after the gravel, sand, or
department. To avoid monthly fluctua- stone has been removed (credit to the
tions in the ratio of store expenses to property account in which the cost of
the value of material and statonery the land is included); payments for
purchased or issued, carriers may make right to enter upon and remove ballast
a monthly apportionment on the basis from land not owned by the carrier;
of fair percentage rates, provided the cost of sinking test holes; and costs
store expense accounts are adjusted preparatory to opening the pit or quar-
and closed out at the end of each year. ry. To this account shall be charged
6–3 Shop expenses. (a) To a clearing also the cost, in excess of the esti-
account entitled Shop expenses shall be mated salvage value, of rails and fas-
charged items of expense at shops, tenings, ties, other material and labor
enginehouses, repair tracks, and other used in constructing tracks to and in
places where mechanical work is per- the gravel pit or quarry (the estimated
formed, not assignable directly to spe- salvage being carried in an appropriate
cific accounts. Such expenses shall be suspense account); cost of labor and
apportioned among the various ac- train service employed in producing,
counts affected. The basis of distribu- quarrying, and loading ballast, includ-
tion shall be the relative proportion ing the cost of operation, repairs, and
which the total amount of charges to depreciation of power shovels and other
Shop expenses bears to the total of the machines and machinery; pay and ex-
directly distributed labor. To avoid penses of watchmen; cost of explosives
monthly fluctuations in the ratio of and hand tools, and miscellaneous ex-
shop expenses to the total of distrib- penses; and cost of installing, oper-
uted labor, carriers are permitted to ating and maintaining signals and
make the monthly apportionment on interlockers at gravel pits.
the basis of a percentage of the distrib- (b) Credit to the clearing account
uted labor, provided the shop expense shall be made each month to cover the
account is adjusted and closed out at cost of ballast material produced dur-
the end of the year. ing the month. The cost of production
(b) The expenses assignable to this shall include the expenses directly as-
account shall include the pay of fore- signable to the monthly output plus a
men (who exercise supervision over all proportion of the expenses not directly
departments), their clerks, and other assignable, such as cost of land, tracks,
employees engaged in general work in machinery, and interlockers. This lat-
and about shops, cost of heat, light and ter amount shall be computed upon the
power; cost of small tools and supplies basis of the ratio which the monthly
and water and power purchased; also output bears to the total estimated
cost of removal of snow and ice from yardage to be taken from the pit. When
transfer tables and shop yards, and any portion of the product of such pits
other incidental shop expenses. To this or quarries is sold, the cost thereof
account shall be charged expenses, in- shall be credited to this clearing ac-
cluding wages, fuel and supplies, of op- count and any related profit shall be
erating switching locomotives when ex- credited to account 110, Incidental.
clusively assigned to switching service 6–5 Power plant operations. (a) The
at shops (the expenses of incidental accounting for the expenses of main-

switching at shops by locomotives in taining and operating an electric,
48
steam, or other power plant (both ance with instructions pertaining to

building and machinery) shall be deter- power plant operations.
mined by the purpose for which the
power produced is used. When a power PROPERTY ACCOUNTS
plant is intended and used for pro-
ducing power solely for the carrier’s Road
own operations and the cost of oper-
ating the plant is chargeable to clear- 0 Road.
ing account Shop expenses, or to any
The several primary accounts in-
one specific account for operating ex-
cluded in this general account are de-
penses, the expenses of maintenance
signed to show the cost of land and
shall be charged to the appropriate
road property owned by the carrier and
maintenance accounts, and the cost of devoted to transportation service.
operation to the account appropriate
according to the use of the power. 2 Land for transportation purposes.
(b) When the power from such a plant This account shall include the cost of
is properly chargeable to more than land of necessary width acquired for
one account, the expenses of maintain- roadway; the cost of land for station,
ing and operating the plant shall be in- office, shop, and other grounds; for in-
cluded in clearing account designated gress to or egress from such grounds;
Power plant operations. The expense of for borrow pits, waste banks, snow
maintenance shall be cleared from that fences, sand fences, and other railway
account to the appropriate mainte- appurtenances; and for storage of ma-
nance accounts. The expenses of oper- terial adjoining the right-of-way; the
ation shall be apportioned to the ap- cost of land for wharves and docks and
propriate accounts upon the basis of the cost of riparian or water rights
quantity of power used for the various necessary therefor; the cost of remov-
purposes. ing from the right-of-way and locating
(c) When a part of the power pro- elsewhere the property of others, and
duced by a power plant is sold and the the cost of the necessary land for relo-
remainder is used in the carrier’s own cation of the property, when such costs
operations, the cost of maintaining and are assumed by the accounting carrier.
operating the plant shall be charged to The carrier’s records shall be kept in
a clearing account. The expense of such manner as to show separately the
maintenance shall be cleared from that cost of land purchased. Proceeds from
account to the appropriate mainte- the sale of timber or of improvements
nance accounts. The proportion of the purchased with right-of-way, less any
expenses of operation assignable to the cost of removal, shall be credited to
power sold, on the basis of ratio of this account.
quantity of power sold to total quan-
ITEMS OF EXPENSE
tity of power produced, shall be cred-
ited to this clearing account and any Abstracts.
Appraisals.
related profit shall be credited to ac-
Arbitrators in condemnation cases.
count 110, Incidental. The remainder of Commissions paid to others.
the cost of operation shall be distrib- Condemnation expenses, including court
uted to the appropriate expense ac- costs and special counsel fees.
counts for the carrier’s own operations. Damages to property of others.
(d) When power plants are intended Deferred payments for right-of-way.
Ditches for waterways when part of consider-
and used solely for furnishing power to
ation.
others, their investment cost shall be Judgments and decreed costs to clear or de-
included in account 737, Property used fend titles.
in other than carrier operations, and the Notarial fees.
revenues and operating expenses shall Plats.
be included in the accounts provided Premiums on condemnation bonds.
Recording deeds.
for operations of such property.
Payments for relinquishment of cattle passes
(e) The accounting for the mainte- and other rights.
nance of transmission systems and dis- Removal and relocation of buildings and
tribution systems shall be in accord- other structures not purchased.
49
Rent of land when part of consideration for Bulkheading.
purchase. Clearing land.
Right-of-way agents’ compensation (engaged Cribbing.
solely in acquiring right of way). Dikes (including those of earthen construc-
Taxes accrued and assumed at time of pur- tion which are intended to function indefi-
chase. nitely).
NOTE A: The cost of land acquired in excess Ditches (not required by right-of-way agree-
of that necessary for transportation oper- ment).
ations shall be included in balance sheet ac- Dressing slopes.
count 737, ‘‘Property used in other than car- Excavation for conversion of tunnels into
rier operations.’’ When the purchase of land open cuts.
acquired for transportation operations in- Filling bridges, trestles, and culverts.
volves land not used for such purposes, the Grading outfits.
charges to this account shall be based upon Grubbing land.
the estimated cost of only that portion Material taken from borrow pits.
which is used for such purposes, and the cost New channels for streams.
of the remaining land shall be included in ac- Operations of steam shovels.
count 737, ‘‘Property used in other than car- Payments for privilege of wasting material
rier operations.’’ Only the actual cost borne on the property of others.
by the carrier for right-of-way and other Payments for waste banks off the right-of-
lands acquired through vacation of streets way.
and highways shall be included in this ac- Retaining walls.
count. No donation should be considered as Revetments.
involved in the acquisition of such property. Riprap.
NOTE B: Amounts paid for options to pur- Spoil banks.
chase land for use in transportation oper- Temporary trestles for fills.
ations shall be charged to account 743, Tools for grading.
‘‘Other deferred debits.’’ If the carrier subse- Wing dams.
quently purchases the land, the amount of
the option payment shall be transferred to [42 FR 35017, July 7, 1977, as amended at 49
this account. If the carrier does not acquire FR 2255, Jan. 19, 1984]
the land and forfeits the option paid, the
amount shall be charged to account 551, 4 Other right-of-way expenditures.
‘‘Miscellaneous income charges.’’ This account shall include the cost
(in excess of cost of railway facilities
3 Grading. installed, if any) actually borne by the
(a) This account shall include the carrier of improvement projects (other
cost of clearing and grading the road- than public improvement projects),
way, and of constructing protection for such as the construction of canals,
the roadway, tracks, embankments and farm and other private passes, pipe
cuts. lines, drains, and other facilities across
(b) When a part of a bridge or trestle, the carrier’s right-of-way.
or the entire structure, is converted by
filling into an earth embankment, and 5 Tunnels and subways.
the bridge or trestle is used in lieu of a This account shall include the cost of
temporary trestle which would other- tunnels and subways for the passage of
wise be required for the filling, the es- trains, including apparatus for ven-
timated cost of such temporary trestle tilating and lighting and safety devices
shall be included in the cost of the fill- therein, other than signals.
ing, and charged to this account. (See
NOTE A: The cost of tracks, including
note A, under account 6, ‘‘Bridges, tres- guard rails, in tunnels shall not be charged
tles, and culverts.’’) to this account.
(c) When a tunnel is converted into NOTE B: Station subways not highway
an open cut, the cost of clearing, grub- crossings are includible in account 16, ‘‘Sta-
bing, and excavating shall be included tion and office buildings.’’
in this account. (Also see instruction 2– NOTE C: When a tunnel is converted into an
11.) open cut, the ledger value of the tunnel shall
be credited to this account. The service
DETAILS OF ROADBED AND ITEMS OF EXPENSE value of the tunnel shall be charged to ac-
count 735, ‘‘Accumulated depreciation; Road
Advertising for contractors’ bids.
and equipment property.’’
Berm ditches.
Blasting. [42 FR 35017, July 7, 1977, as amended at 48

Breakwaters. FR 7183, Feb. 18, 1983]
50
6 Bridges, trestles, and culverts. NOTE: The cost of stations and other struc-
tures built on elevated structures shall be
This account shall include the cost of accounted for according to the class of the
the substructure and superstructure of structure and not in this account.
bridges, trestles, and culverts which
carry the tracks of the carrier over 8 Ties.
water-courses, ravines, public and pri- (a) This account shall include the
vate highways, and other railways. cost of cross, switch, bridge and other
DETAILS OF BRIDGE STRUCTURES track ties used in the construction of
tracks for the movement or storage of
Abutments.
Bridge signs. locomotives and cars (including tracks
Cofferdams. in shop, fuel station, supply yard areas,
Concrete and masonry ends for culvert. etc.), and the cost of additional ties
Cribs. subsequently laid in such tracks. This
Decking, including gravel for fire protection. account should also include the cost of
Dike protection. labor for unloading, distributing and
Drainage systems.
Draw protection.
placing ties in tracks.
Drawbridge engines and machinery. (b) The cost of handling ties in gen-
False work. eral supply and storage yards shall be
Guard timbers. included as store expenses.
Ice breakers. NOTE: The cost of ties used in the construc-
Painting (except repainting). tion of car floats shall be included in the
Pier protection. cost of such floating equipment, and the cost
Piers and foundations. of ties used in the construction of temporary
Pipe culverts. tracks, such as gravel-pit and quarry tracks,
Retaining walls. shall be included in the appropriate clearing
Riprap around abutments. accounts.
Riprap at culverts ends. NOTE: Respacing crossties is to be consid-
Supports. ered maintenance and expense.
Water channels.
Waterproofing. [48 FR 7183, Feb. 18, 1983]
Wind dams.
Wing walls. 9 Rails and other track material.
NOTE A: When a part or the entire struc- (a) This account shall include the
ture of a bridge or trestle is converted, by cost of rails and other track material
filling, into an earth embankment, the ledg-
used in the construction of tracks for
er value of the structure, or of the portion
thereof filled, shall be credited to this ac- the movement or storage of loco-
count. In case the bridge or trestle is used in motives and cars (including tracks in
lieu of a temporary trestle for the purpose of shop, fuel station, supply yard areas,
filling, the estimated cost of such temporary etc.); the cost of welding two or more
trestle shall be charged to account 3, ‘‘Grad- lengths or rail into continuous lengths
ing.’’ The ledger value of the structure or for use in construction of tracks; and
portion thereof, filled, less the value of the the cost of labor associated with un-
salvage and the estimated cost of trestle
loading and installation of the rail and
charged to account 3 shall be charged to ac-
count 735, ‘‘Accumulated depreciation; Road other track material.
and equipment property.’’ (b) The cost of handling rails and
NOTE B: The cost of bridges to carry the other track material in general supply
carrier’s tracks over undergrade crossings, and storage yards shall be included as
including the necessary piers and abutments store expenses.
to sustain them, shall be included in this ac-
count. ITEMS OF OTHER TRACK MATERIAL
Angle bars.
7 Elevated structures. Anticreepers.
This account shall include the cost of Bumping posts.
elevated structures and foundations of Compromise joints.
elevated railway systems. This account Connecting rods.
Crossings, including foundations or bases.
is applicable to structures other than
Derails.
earthwork, which are for the purpose of Frog blocking.
elevating tracks above the grade of Frogs.
streets, and which are not properly Guard-rail blocking.

classifiable as bridges or trestles. Guard-rail clamps.
51
Guard-rail fasteners. areas, etc.) including cost of worktrain
Guard rails, switch and other. service and the cost of labor expended
Main rods. in placing ballast in tracks.
Nut locks.
Nuts. NOTE A: The cost of ballast used in the
Offset bars. construction of temporary tracks, such as
Rail braces. gravel-pit and quarry tracks, shall be in-
Rail chairs. cluded in the appropriate clearing accounts.
Rail clips. NOTE B: Earth placed to form a crown in
Rail joints. the middle of the track is not considered as
Rail rests. ballast.
Rail shims. NOTE C: The cost of ballast material placed
Rail splices. on the decking of bridges solely for fire-pro-
Splice bars. tected purposes shall be included in account
Step chairs. 6, ‘‘Bridges, trestles and culverts.’’
Switch chairs. NOTE D: Surfacing (surface correction of
Switch crossings. existing ballast) is to be considered mainte-
Switch lamps. nance and expensed.
Switch locks and keys.
Switch points. [48 FR 7183, Feb. 18, 1983, as amended at 49
Switch stands. FR 2255, Jan. 19, 1984]
Switch targets.
Switches. 13 Fences, snowsheds, and signs.
Tie plates.
Tie plugs. This account shall include:
Tie rods. (a) Fences. The cost of right-of-way
Track bolts. fences and snow and sand fences, farm
Track insulators. gates, cattle guards, wing fences,
Track spikes. aprons, and hedges, on property not
NOTE A: The cost of rails and other track previously fenced, excluding those
material used in the construction of car around stockyards, fuel stations, sta-
floats shall be included in the cost of such tion and shop grounds, and building
floating equipment and the cost of rails and
other track material used in the construc-
sites.
tion of temporary tracks, such as gravel-pit (b) Snowsheds. The cost of
and quarry tracks, shall be included in the snowsheds, including initial cost of
appropriate clearing accounts. planting trees for protecting tracks
NOTE B: The following activities are con- from snow.
sidered as maintenance and should be ex- (c) Signs. The initial cost of signs
pensed accordingly.
other than those for identification of
• Rail flaw detection
• Track inspection bridges, signals, stations and other
• Shifting of existing track structures.
• Removing weeds in track
• Transposing rail SIGN ITEMS
• Restoring chipped and battered rail ends Boundary signs.
by welding and/or by rail grinding train or Bridge-caution signs.
other such equipment. Crossing signs.
• Gauging track Curve and elevation markers.
• Loading scrap track materials
Division-limit signs.
• Lubricating rail
• Tightening bolts Mileposts.
• Resetting spikes and rail anchors in exist- Monuments.
ing track Safety-first signs at crossings.
• Any other maintenance work not involving Section-limit signs.
the placement of track material Slow or stop signs.
Tunnel-caution signs.
[48 FR 7183, Feb. 18, 1983, as amended at 49
Water-station signs.
FR 2255, Jan 19, 1984; 52 FR 4326, Feb. 11, 1987]
Whistle signs.
11 Ballast. Yard-limit signs.
NOTE A: The cost of fences (other than
(a) This account shall include the
right-of-way boundary fences) around stock-
cost of gravel, stone, slag, cinders, yards, fuel and water stations, and other
sand, and like material used in building sites, shall be charged to the ac-
ballasting tracks (including tracks in counts appropriate for the cost of the struc-
shop, fuel station, and supply yard tures.
52
NOTE B: The cost of signs for identifying tects employed to design or supervise the
bridges, signals, stations, and other struc- construction in the buildings shall also be
tures shall be included in the account appro- included in the cost of the buildings. How-
priate for the cost of the structures. ever, the cost of restoring the grounds after
NOTE C: The cost of crossing signals, in- addition and betterment work shall be in-
cluding crossing gates, shall be included in cluded in the appropriate operating expense
account 27, ‘‘Signals and interlockers.’’ accounts.
NOTE D: This account shall also include the
cost of replacing units of such property or
FR 4326, Feb. 11, 1987]
substantial parts of fences or snowsheds the
original cost of which are charged to this ac-
17 Roadway buildings.
count.
This account shall include the cost of
16 Station and office buildings. roadway shops and other roadway
This account shall include the cost of buildings, including drainage, water,
station and general office structures, gas, and sewer pipes and connections;
their fixtures, appurtenances, and fur- and all machinery, fixtures, and fur-
niture necessary to equip the buildings niture to equip the building ready for
ready for use. use.
STATION AND OFFICE STRUCTURES AND LIST OF ROADWAY BUILDINGS
DETAILS Breakwaters for protection of buildings.
Breakwaters for protection of buildings. Carpenters shops.
Buildings and rooms for trainmen. Fire-engine houses.
Buildings on piers. Frog shops for repair of track material.
Coal transferring machinery (not on coal and Hand-car houses.
ore wharves). Lighting plants.
Coal trestles (not at fuel stations). Lumber sheds.
Drainage and sewerage systems. Planning mills.
Elevators and machinery. Rail reclamation plant.
Fences. Rail shops for repair of track material.
Freight cranes and derricks. Rail welding plant.
Freight handling machinery. Repair shops.
Gas-supply systems. Scrap bins.
General office buildings. Section dwelling houses.
Grain elevators and warehouses. Tool houses.
Heating plants. NOTE: The cost of grading and preparing
Hoisting engines, for handling freight. grounds both before and after the construc-
Lighting plants. tion of roadway buildings, the cost of con-
Ore-transferring machinery. structing sidewalks, driveways, and fences
Pavement within ground limits. thereon, and the cost of permanent water
Platforms, passengers, including planking rights, shall be included in the cost of the
between tracks. buildings. The fees and expenses of archi-
Power distribution systems, interior. tects, employed to design or supervise the
Sidewalks. construction of the buildings, shall also be
Station footbridges (not highway crossings). included in the cost of the buildings. How-
Station intertrack fences. ever, the cost of restoring the grounds after
Telegraph offices. addition and betterment work shall be in-
Track scales. cluded in the appropriate operating expense
Water-supply systems. accounts.
Yard offices.
18 Water stations.
NOTE A: Office buildings used exclusively
in connection with maintenance of way shall This account shall include the cost of
be included in account 17, ‘‘Roadway build- structures, facilities, and appliances
ings.’’ Those used exclusively in connection necessary to equip for service, stations
with maintenance of equipment shall be infor supplying water. The cost of anal-
cluded in account 20, ‘‘Shops and
yses of water preliminary to the estab-
enginehouses.’’
NOTE B: The cost of grading and preparing lishment of water stations shall be in-
grounds both before and after the construc- cluded in this account.
tion of station buildings, the cost of con-
WATER STATION STRUCTURES AND DETAILS
structing sidewalks, driveways, and fences
thereon, and the cost of permanent water Boilers.
rights shall be included in the cost of the Breakwaters for protection of buildings.
buildings. The fees and expenses of archi- Buildings on piers.
53
Cisterns and dams. mary accounts charged with the construc-
Fences. tion costs.
Pump houses. NOTE C: The cost of grading and preparing
Purifying plants. grounds both before and after the construc-
Reservoirs and wells. tion of fuel station buildings, the cost of con-
Settling basins. structing sidewalks, driveways, and fences
Stationary engines. thereon, and the cost of permanent water
Steam pipes. rights shall be included in the cost of the
Tanks and foundations. buildings. The fees and expenses of archi-
Water pipe lines. tects employed to design or supervise the
Water-treating plants. construction of the buildings shall also be in-
NOTE A: The cost of water stations used cluded in the cost of the buildings. However,
solely for supplying water to shops, power the cost of restoring the grounds after addi-
plants, stations, hotels, tenement houses, or tion and betterment work shall be included
section houses shall be charged to the appro- in the appropriate operating expense ac-
priate accounts relating to the property so counts.
supplied.
NOTE B: The cost of a temporary water sta- 20 Shops and enginehouses.
tion established only for use during the con- This account shall include the cost of
struction period shall be included in the pri-
buildings to be used as shops and
mary accounts to which is charged the cost
of the work in connection with which the enginehouses and storehouses for mate-
water station is used. rial for maintenance of equipment;
NOTE C: The cost of grading and preparing foundations, except those special to
grounds both before and after the construc- particular machines and other appa-
tion of water station buildings, the cost of ratus; furniture and fixtures other than
constructing sidewalks, driveways, and equipment chargeable to account 44,
fences thereon, and the cost of permanent Shop machinery; drainage, sewerage,
water rights shall be included in the cost of
and water supply systems; and plants
the buildings. The fees and expenses of archi-
tects employed to design or supervise the for heat and light.
construction of the buildings shall also be in- SHOP AND ENGINEHOUSE STRUCTURES AND
cluded in the cost of the buildings. However, DETAILS
the cost of restoring the grounds after addi-
tion and betterment work shall be included Air-compressor houses.
in the appropriate operating expense ac- Bins for material.
counts. Blacksmith shops.
Breakwaters for protection of buildings.
19 Fuel stations. Buildings on piers.
Car sheds and shops.
This account shall include the cost of Carpenter shops.
structures, facilities other than tracks, Electric-power distribution systems within
and appliances necessary to equip for buildings.
service, stations for supplying fuel to Enginehouses.
locomotives and floating equipment. Fire engine houses.
Footbridges (not public highways).
FUEL STATION STRUCTURES AND DETAILS Foundries and machine shops.
Gas-compressor houses.
Breakwaters for protection of buildings. Heating and lighting plants.
Buildings on piers. Laboratories.
Dumping machinery. Lumber sheds.
Elevating machinery. Material and supply truck tracks.
Fences. Motor-crane tracks.
Fuel houses or stations. Offices, shop.
Fuel-oil plants, pumps, and tanks. Paint shops.
Fuel platforms on wharves. Pipe lines, air, and heat.
Stationary engines. Pipe lines, gas, interior.
Weighing apparatus. Planning mills and repair shops.
NOTE A: The cost of fuel stations, coal Platforms, shop and yard.
houses, etc., used solely for supplying fuel to Scale houses and scales.
shops, power plants, stations, hotels, tene- Scrap bins.
ment houses, or section houses shall be Sidewalks.
charged to the appropriate accounts relating Steam-distribution systems, interior.
to the property so supplied. Storehouses.
NOTE B: The cost of a temporary fuel sta- Tanks, gas, and oil.
tion established only for use during the con- Test rooms.
struction period shall be allocated to the pri- Turntables.
54
Upholstering shops. and other necessary devices and appa-
Warehouses. ratus for the operation or protection of
NOTE A: The cost of distinct power plant wharves and docks.
buildings for shop purposes shall be included
in account 29, ‘‘Power plants.’’ The cost of DETAILS OF WHARVES AND DOCKS
distribution systems leading from such
power plants to shops shall be included in ac- Bridge pontoons.
count 31, ‘‘Power-transmission systems.’’ Bulkheads.
NOTE B: The cost of grading and preparing Caissons and cribwork.
grounds both before and after the construc- Dry docks.
tion of shop buildings, the cost of con- Ferry-bridge machinery.
structing sidewalks, driveways, and fences Ferry bridges.
thereon, and the costs of permanent water Ferry slips.
rights shall be included in the costs of the Jetties and inclines.
buildings. The fees and expenses of archi- Transfer-bridge machinery.
tects employed to design or supervise the
Transfer bridges.
construction of the buildings shall also be in-
cluded in the cost of the buildings. However, NOTE A: The cost of coal and ore wharves
the cost of restoring the grounds after addi- and docks shall be included in account 24,
tion and betterment work shall be included ‘‘Coal and ore wharves.’’
in the appropriate operating expense ac- NOTE B: The cost of the land on which
counts. wharves are built and cost of riparian or
NOTE C: The cost of shop buildings devoted water rights for wharves and docks shall be
solely to the maintenance of way and struc- charged to account 2, ‘‘Land for transpor-
tures shall be included in account 17, ‘‘Road- tation purposes.’’
way buildings.’’ NOTE C: The cost of buildings located on
wharves shall be included in the accounts ap-
22 Storage warehouses. propriate for the class of buildings.
This account shall include the cost of NOTE D: The cost of grading and preparing
storage warehouses, including machin- grounds both before and after the construc-
tion of wharves (other than coal and ore
ery and fixtures therein. The buildings wharves), the cost of constructing sidewalks,
herein referred to are not the ordinary driveways, and fences thereon, and the cost
freight warehouses or stations where of permanent water rights shall be included
freight is received for shipment, etc., in the cost of the wharves. However, the cost
but warehouses in which merchandise of restoring the grounds after addition and
is stored and which the railway compa- betterment work shall be included in the ap-
nies operate as storage warehouses. propriate operating expense accounts.
NOTE A: The cost of grading and preparing
24 Coal and ore wharves.
grounds both before and after the construc-
tion of storage warehouse buildings, the cost This account shall include the cost of
of constructing sidewalks, driveways, and wharves and docks for the transfer,
fences thereon, and the cost of permanent treatment, blending, or storage of coal
water rights shall be included in the cost of or ore, including the cost of necessary
the buildings. The fees and expenses of archi-
tects employed to design or supervise the
dredging and of conveyors, machinery,
construction of the buildings shall also be in- and fixtures.
cluded in the cost of buildings. However, the NOTE A: The structures referred to in the
cost of restoring the grounds after addition account do not include small transfer or
and betterment work shall be included in the storage trestles or wharves at stations where
appropriate operating expense accounts. coal is stored or delivered, such trestles
NOTE B: The cost of warehouses leased to being classed as station buildings.
noncarriers shall be charged to account 737, NOTE B: The cost of grading and preparing
‘‘Property used in other than carrier oper- grounds both before and after the construc-
ations.’’ tion of coal and ore wharves, the cost of con-
structing sidewalks, driveways, and fences
23 Wharves and docks. thereon, and the cost of permanent water
This account shall include the cost of rights shall be included in the cost of the
wharves, docks, dry docks, slips, float wharves. The fees and expenses of architects
employed to design or supervise the con-
bridges, and other landings for vessels,
struction of whaves shall also be included in
including the cost of necessary dredg- the cost of the wharves. However, the cost of
ing and the cost of float-bridge ma- restoring the grounds after addition and bet-
chinery; also the cost of piling, pile terment work shall be included in the appro-
protection, cribs, cofferdams, walls, priate operating expense accounts.
55
25 TOFC/COFC terminals. Engines, stationary.

Fuses and mechanical protectors.
This account shall include the cost of Rectifiers.
structures, fixtures, machinery and ap- Rheostats.
purtenances comprising terminals used Sending and receiving instruments.
for loading and unloading trailers and Switchboards.
containers on and from flat cars. Telegraph repeaters.
Telephone repeaters.
TOFC/COFC TERMINAL STRUCTURES AND Teletypewriters.
DETAILS Testing outfits.
Cranes and hoists, including related machin- Transformers.
ery and appurtenances. DETAILS OF TELEGRAPH AND TELEPHONE
Drainage and sewerage. OUTSIDE PLANT
Fences.
Grading and preparing grounds for TOFC/ Aerial attachments.
COFC terminals. Braces.
Offices, TOFC/COFC terminal. Brackets.
Lighting system. Cable boxes and appurtenances.
Platforms, ramps and appurtenances. Cable and wires, aerial.
Power distribution systems. Conduits and appurtenances.
Sidewalks, pavements and driveways on ter- Cross arms.
minal grounds. Gas and associated facilities for cables.
Terminal trucks and tractors. Guy stubs.
NOTE A: ‘‘Trailer,’’ as used in the text and Guy wires.
elsewhere in this system of accounts unless Insulators.
otherwise indicated in the context, means Load coils.
trailer bodies used in TOFC/COFC service Submarine cables and connections.
which are permanently mounted on running Telephone pole boxes.
gear. ‘‘Containers’’ means trailer bodies used Towers.
in TOFC/COFC service which are not perma- Underground cables and connections.
nently mounted on wheels or chassis, but are DETAILS OF RADIO, RADAR, AND INDUCTIVE
separated from such running gear before TRAIN COMMUNICATION EQUIPMENT
being loaded on flat cars.
NOTE B: The cost of grading and preparing Aerials or antenna, and attachments.
grounds both before and after the construc- Buildings or towers used exclusively for
tion of TOFC/COFC terminals, the cost of wireless.
constructing sidewalks, driveways, and Control units.
fences thereon, and the cost of permanent Power generating, converting, or supply
water rights shall be included in the cost of equipment.
the buildings. The fees and expenses of archi- Radar console and associated equipment.
tects employed to design or supervise the Roadside or office equipment for all wireless
construction of the buildings shall also be in- systems operated on special channels be-
cluded in the cost of the buildings. However, tween train and train, train and tower or
the cost of restoring the grounds after addi- office, or between ship and shore.
tion and betterment work shall be included Specialized testing and repair equipment.
in the appropriate operating expense ac- Transmitters and receivers, including mobile
counts. units.
NOTE A: Radio, radar or trainphone equip-
26 Communication systems. ment (except portable apparatus) which is
This account shall include the cost of permanently attached to locomotives, cars,
work equipment, or other rolling stock or
telegraph, telephone, radio, radar, in-
floating equipment shall be included in the
ductive train communication, and same accounts as the equipment on which in-
other communication systems, includ- stalled. Wireless sets for instruction, adver-
ing terminal equipment. tising, or entertainment shall be included in
the same accounts as the building in which
DETAILS OF TELEGRAPH AND TELEPHONE located.
TERMINAL EQUIPMENT NOTE B: Communication systems of lim-
Batteries. ited extent, not connected with other sys-
Cables and wires, interior. tems used for special purposes and usually
Carrier terminating equipment. installed within a single building, group of
Conduits, interior. buildings, or within the limits of a station or
Connecting wires. shop layout or yard, shall be included in the
Current-controlling instruments. same account as the building in which lo-
Electric generators and motors. cated or in the account appropriate for the
Electric meters. service with which associated.
56
ITEMS with interlockers, shall be included in ac-
count 9, ‘‘Rail and other track material.’’
Buzzers, bells, dictaphone or other inter-
NOTE C: When derails are arranged so as to
office communication systems in an office
be thrown from switch stands, the cost of
or group of buildings.
labor expended in the installation of the con-
Loud speakers, bells, or whistles in shop and
nections between the switch stand and derail
other yards.
and the devices for throwing the derail shall
Loud speakers, public address devices, press be included in account 9, ‘‘Rail and other
button control lights, telautograph or track material.’’ The cost of the material
other systems in stations or on platforms. shall be included in account 9, ‘‘Rail and
Whistles, klaxons, or horns operated from other track material.’’
signals towers. NOTE D: The cost of grading and preparing
NOTE C: Test sets shall be classified as grounds both before and after the construc-
tools and included in the account appro- tion of signal and interlocker buildings, the
priate for their use. cost of constructing sidewalks, driveways,
and fences thereon, and the cost of perma-
27 Signals and interlockers. nent water rights shall be included in the
This account shall include the cost of cost of the buildings. The fees and expenses
of architects employed to design or supervise
interlocking and other signals appa- the construction of the buildings shall also
ratus for governing the movements of be included in the cost of the buildings. How-
locomotives, cars, and trains, and for ever, the cost of restoring the grounds after
the protection of traffic at crossings, addition and betterment work shall be in-
including towers and other buildings, cluded in the appropriate operating expense
furniture, fixtures, and machinery in accounts.
connection therewith; roadway instal- [42 FR 35017, July 7, 1977, as amended at 52
lations for train control and remote FR 4326, Feb. 11, 1987]
control including the cost of the initial
tests of such installation; also the cost 29 Power plants.
of buildings and machinery of power This account shall include the cost of
plants used primarily for the produc- power-plant and substation buildings
tion of power for the operation of sig- (housing machinery provided for in ac-
nals and interlockers. count 45, ‘‘Power-plant machinery’’);
ITEMS all foundations other than those spe-
cial to particular machines and appa-
Automatic-train control devices other than ratus; and also dams, canals, pipe lines,
on equipment.
and accessories devoted to the utiliza-
Call-bell systems along track to call in
flagmen.
tion of water for power. Gas and sewer
Call boxes, electric. pipes and their connections, fixtures
Car-retarder systems. (including wiring) for lighting and
Centralized traffic control. heating, and furniture and miscella-
Crossing flasher-light signals. neous fixtures shall be considered as a
Crossing gates, highway and railway. part of the power-plant buildings.
Crossing signals bells.
Crossing warning signals. POWER-PLANT STRUCTURE ITEMS
Interlocker buildings and machinery. Buildings.
Power apparatus primarily for the operation Coal bunkers, pockets and trestles.
of signals and interlockers. Fences (other than right-of-way boundary
Power-distribution lines primarily for the fences).
operation of signals and interlockers. Fixtures for lighting (including wiring) and
Signal buildings. heating power-plant buildings.
Signal machinery, poles and foundations. Foundations (except special foundations for
Train-order signals. machines and other apparatus).
NOTE A: When signal or interlocking appa- Fuel-oil tanks.
ratus is located in a station building, only Furniture.
the cost of the signal or interlocking appa- Hose and appliances for protecting buildings
ratus shall be charged to this account. The against fire.
entire cost of the building shall be included Pavement within ground limits.
in account 16, ‘‘Station and office buildings.’’ Permanent rights in water supply.
NOTE B: The cost of track material, such as Platforms.
switches, special rail braces, special roads, Smoke stacks and chimneys and their foun-
special track fastenings, split rails, derails, dations when distinct from and not resting
derail stands, and frogs, used in connection on boilers.
57
Water, sewer, gas, and drainage, pipes and Transformers (not at power houses and sub-
connections. stations).
Wells (but not pumps). Underground power tubes.
DAM, CANAL, AND PIPE-LINE ITEMS POLE-LINE AND CONDUIT ITEMS
Aqueducts. Braces and other support for holding poles in
Bridges. position.
Fences (other than right-of-way boundary Brackets, cross arms, and other pole fix-
fences). tures.
Footbridges. Conduits for wires and cables.
Reservoirs. Cutting and trimming trees.
Roadways. Guy stubs and wires.
Sluices. Manholes.
Valves. Poles and towers.
Water rights. Sewer traps.
NOTE A: The cost of power-plant machin- Stenciling or painting letters or numbers on
ery, including stacks resting on boilers, and poles.
special foundations for machines, shall be in-
NOTE A: The cost of wire and pipe-distribu-
cluded in account 45, ‘‘Power-plant machin-
tion systems located within shop buildings
ery.’’
and in stations and office buildings shall be
NOTE B: The cost of the buildings and the
included in the cost of the buildings, except
power machinery and other apparatus of
that lateral service lines to equipment-shop
plants used primarily for operating signals
machines shall be included in account 44,
and interlockers shall be included in account
‘‘Shop machinery.’’ The cost of distribution
27, ‘‘Signals and interlockers.’’
systems used primarily for operating signals
NOTE C: Investment in buildings and ma-
and interlockers shall be included in account
chinery of detached plants for furnishing
27, ‘‘Signals and interlockers.’’
power both for operating purposes and for
NOTE B: The cost of conduits and of poles
sale shall be included in this account and in
and fixtures for telegraph and telephone, or
account 45, ‘‘Power-plant machinery,’’ re-
signal lines shall be included in account 26,
spectively. When plants are intended and
‘‘Communication systems,’’ or account 27,
used primarily for generating power for sale
‘‘Signals and interlockers,’’ as appropriate.
to other than common carriers, the invest-
The cost of poles and conduits used for tele-
ment shall be included in account 737.
graph and telephone or signal lines and for
‘‘Property used in other than carrier oper-
power-distribution lines shall be included in
ations.’’
the account appropriate according to their
predominant use.
31 Power-transmission systems.
This account shall include the cost of 35 Miscellaneous structures.
systems for conveying electricity, This account shall include the cost of
steam, and compressed air from pro- all permanent structures not provided
ducing plants to place or building for elsewhere, including all fixtures
where used; also the cost of conduits and furniture to equip them for use.
and of poles, cross arms, insulator pins,
brackets, and other pole fixtures, and MISCELLANEOUS STRUCTURES ITEMS
of other structures for power-trans- Floodlight tower installations in yards.
mission and distribution systems, in- Grain elevators where grain is stored for
cluding those for electric railway oper- owners.
ation, and lighting systems for general Storehouses for general purpose materials
lighting purposes. and supplies.
NOTE A: Small storage elevators at way
POWER-TRANSMISSION SYSTEM ITEMS
stations where grain is received for shipment
Air pipe-line in car yards. are classed as station buildings.
Compressed air pipe-lines. NOTE B: The cost of grading and preparing
Compressed air storage tanks (not at power grounds both before and after the construc-
houses or shops). tion of miscellaneous structures and the cost
Cut-outs (not at power houses and sub- of constructing sidewalks, driveways, and
stations). fences thereon, shall be included in the cost
Overhead trolley wires. of the structures. The fees and expenses of
Rail-insulating devices. architects employed to design or supervise
Steam-heating pipe-lines in car yards. the construction of the buildings shall also
Switchboards (not at power houses and sub- be included in the cost of the structures.
stations). However, the cost of restoring the grounds

Third-rail insulation and protection. after addition and betterment work shall be
58
included in the appropriate operating ex- NOTE B: The cost of machines for the
pense accounts. equipment of roadway shops shall be in-
cluded in account 17, ‘‘Roadway buildings.’’
37 Roadway machines. NOTE C: The cost of roadway machines,
such as pile drivers, log loaders, hoist en-
This account shall include the cost of gines, and concrete mixers, when perma-
the initial outfit of roadway machines nently mounted for movement on the car-
provided for the maintenance of road- rier’s tracks, shall be included in account 57,
way and structures at the time the ‘‘Work equipment.’’
road is opened for commercial traffic,
and the cost of additional roadway ma- 39 Public improvements; construction.
chines acquired subsequently. This ac- This account shall include amounts
count shall also include the cost of on assessed on carrier property by govern-
and/or off-track automotive vehicles, mental authority (by mutual agree-
permanently equipped with special- ment or otherwise) to cover the cost of
purpose machinery such as hydraulic constructing public improvements,
cranes, derricks, ditching apparatus, when such assessments are made
pile-driving equipment, and similar against property within defined areas
machines listed below, and used exclu- of taxing districts. The account also
sively in maintenance of way and shall include carrier’s portion of the
structures. cost of public improvements con-
LIST OF ROADWAY MACHINES structed under governmental require-
ments. (See instruction 2–17.) The en-
Adzers. tire amount of each assessment and
Anchor applicators.
other liabilities for public improve-
Ballast regulators.
Cars, lever.
ments shall be included in this account
Cars, motor inspection. as soon as the amounts are determined.
Cars, push. ITEMS
Cars (small), crane, for supply yards and gen-
eral use. Cost of land outside carrier’s right-of-way to
Concrete mixers. provide for the relocation of streets or
Ditching machines. highways or providing slopes therefor.
Dredging machines. Cost of removal and relocation of buildings
Engines, portable. and other structures in connection with
Grading outfits. the construction of streets and highways.
Hydraulic outfits. Curbing streets and highways.
Jacks, hydraulic. Damage to property of others when inci-
Pile drivers. dental to highway construction.
Plows, unloading. Drainage systems.
Rail grinders. Engineering—When such costs apply to
Rail unloaders. items chargeable to this account.
Rock crushers. Flood protection.
Scarifier-inserters. Grading streets and highways.
Spike drivers. Guttering streets and highways.
Spike pullers. Irrigation systems.
Tie tampers. Levees.
Timber trucks. Overhead highway bridges, including ap-
Trackliners. proaches.
NOTE A: When an important addition and Paving streets and highways, including such
betterment project or the construction of a pavings at crossings.
new line necessitates the purchase of road- Planking, highway crossings.
way machines to be used exclusively there- Sewer systems.
on, the cost shall be included in the accounts Sidewalks.
to which the cost of the work is charged. The Street-lighting systems.
amount realized from any subsequent sale, Water works.
or the appraised value of the machines re- NOTE A: The cost of railway facilities in-
tained after the completion of the special stalled in connection with joint public im-
work for which they were purchased, shall be provement projects if not in excess of total
credited to the accounts charged with the costs borne by the carrier shall be included
cost thereof. The appraised value of such main accounts other than account 39, ‘‘Public
chines retained shall be debited to this ac- improvements; construction,’’ appropriate
count and thereafter considered as the cost for the class of property installed. Any costs
of such property. borne by the carrier in excess of the cost of
59
railway facilities shall be charged to this ac- Blowers.
count. The carrier shall charge the cost of Boilers for furnishing power.
assessments for public improvements which Boring machines.
is borne by joint owner tenants to the appro- Cars, motor.
priate property accounts other than account Cars, push.
39, ‘‘Public improvements; construction,’’ as- Cranes.
sessments from tenant owners shall be cred- Drilling machines.
ited to account 795, ‘‘Other capital.’’ The Drop tables.
owner tenants shall charge their propor- Forges.
tionate share of the assessment to account Framing machines.
721, ‘‘Investments and advances; affiliated Furnaces.
companies.’’ The carrier shall charge the ap- Grinding and polishing machines.
propriate property accounts other than the Hoists.
public improvement account for the cost of Hydraulic jacks.
public improvement assessments borne by Lathes.
nonowner tenants with contra credit to ac- Lifting magnets.
count 38–00–00, ‘‘Purchased services—Joint Metal chimneys.
facility—Credit,’’ and the tenants shall Milling machines.
charge their proportionate share of the as- Motors.
sessments to account 37–00–00, ‘‘Purchased Pipe cutting and threading machines.
services—Joint facility—Debit.’’ Planers.
NOTE B: The cost to the carrier of main- Pneumatic hammers.
taining public improvements shall be in- Power equipment.
cluded in operating expenses. Punches.
NOTE C: Any portion of the cost of public Riveters.
improvements which is included in the gen- Saws.
eral tax levy for a regular taxing district Shafting.
shall be included in the account appropriate Shapers.
for the taxes. Slotters.
NOTE D: The amount of the deferred pay- Stationary engines.
ments of assessments for public improve- Steam hammers.
ments, if payments are to be made within Vises.
one year, shall be included in account 763, Welding machines.
‘‘Other current liabilities.’’ If the payments Woodworking machines.
are spread over a longer period they shall be NOTE A: The cost of power-plant machinery
credited to account 782, ‘‘Other liabilities.’’ and other apparatus for shop purposes, when
The interest paid on such assessments shall located in distinct buildings, shall be in-
be included in account 547, ‘‘Interest on un- cluded in account 45, ‘‘Power-plant machin-
funded debt.’’ ery.’’
NOTE E: Interest imposed for failure to pay NOTE B: The cost of foundations other than
assessments within the allocated time shall those special to particular machines and
be charged to Account 547, Interest on un- other apparatus shall be included in the cost
funded debt. Any related penalties shall be of the building and not in this account.
charged to Account 551, Miscellaneous in-
come charges. 45 Power-plant machinery.
NOTE F: Assessments on noncarrier prop- This account shall include the cost of
erty for the cost of constructing public im-
provements shall be charged to account 737,
machinery and other apparatus in
‘‘Property used in other than carrier oper- power plants and substations for gener-
ations.’’ ating and transforming power used for
the operation of trains and cars or to
FR 4326, Feb. 11, 1987] furnish power, heat, and light for sta-
tions, shops, and general purposes, and
44 Shop machinery. also the cost of foundations special to
This account shall include the cost of particular machines or other apparatus
machinery and other apparatus in including the cost of installation.
shops and engine houses, including the ITEMS
cost of special foundations and instal- Air compressors.
lation and cost of small hand tools nec- Ash-conveying machinery.
essary first to equip a shop. Battery-charging apparatus.
Boiler-room appliances and tools.
LIST OF SHOP MACHINERY
Boilers and fittings.
Ash conveyors. Circuit breakers.
Air compressors. Furnaces.

Belting. Ice-manufacturing machinery and apparatus.
60
Lubricating devices. 52 Locomotives.
Mechanical stokers.
Metal stacks on boilers.
Refrigerating—machinery and apparatus. cost of locomotives and tenders pur-
Rotary converters. chased or built by the carrier, and of
Sewer connection for machinery. appurtenances, furniture, and fixtures
Coal-conveying machinery. necessary to equip them for service, in-
Condensers. cluding the cost of inspection, setting
Cranes. up, and trying out after receipt from
Draft machinery. builders, and transportation charges to
Dynamos. the carrier’s line. This account may
Engine-room appliances and tools. also include the cost of spare engines
Feed water heaters. carried on hand for the purpose of tem-
Special foundations for machines.
porarily replacing similar units re-
Steam-distribution systems within the
plant. moved from locomotives for overhaul,
Switchboards. repair or other reason.
Tanks. (b) Records shall be maintained to re-
Tractors, trailers, and trucks, permanently flect separately the investment cost of
assigned to power plants. locomotives on the basis of their ini-
Transformers. tial identification for depreciation pur-
Turbines. poses; i.e., road passenger, road freight,
Water meters. road switching and yard switching.
Well pumps.
NOTE A: The cost of power machinery and LIST OF APPURTENANCES TO LOCOMOTIVES
other apparatus installed in a shop as part of Airbrake equipment and hose.
the shop equipment shall be included in ac- Arm rests.
count 44, ‘‘Shop machinery.’’ Brake fixtures.
NOTE B: The cost of power machinery and Cab cushions.
other apparatus installed in station and of- Clocks.
fice buildings shall be included in account 16, Fire-extinguishing apparatus.
‘‘Station and office buildings.’’ Gongs.
NOTE C: The cost of buildings and the Headlamps.
power machinery and other apparatus of Metallic packing.
plants used primarily for operating signals Pneumatic sanding equipment.
and interlockers shall be included in account Radio equipment, permanently attached.
27, ‘‘Signals and interlockers.’’ Seat boxes.
NOTE D: The cost of foundations other than Signal lamps.
those special to particular machines and Speed recorders.
other apparatus shall be included in the cost Steam-gauge lamps.
of the building and not in this account. Steam-heat equipment and hose.
NOTE E: The cost of machinery and build- Storm doors.
ings of detached plants for producing power Tool boxes.
both for operating purposes and for sale shall Train-signal equipment and hose.
be included in this account and in account NOTE: Cars with motor equipment are not
29, ‘‘Power plants,’’ respectively. When to be classed as locomotives.
plants are intended and used primarily for
generating power for sale to noncarriers the 53 Freight-train cars.
investment shall be included in account 737, This account shall include the cost of
‘‘Property used in other than carrier oper- freight-train cars of all classes, such as
ations.’’ motor-driven cars, purchased or built
by the carrier, including all appur-
Equipment tenances, furniture, and fixtures nec-
essary to equip them for service, and
50 Equipment. the cost of inspection and transpor-
The several primary accounts in- tation charges to the carrier’s line.
cluded in this general account are de- LIST OF FREIGHT-TRAIN CARS
signed to show the cost of the several
classes of equipment vehicles and shop Automobile.
Ballast (commercial).
and power plant equipment owned by Beer.
the carrier, or held under equipment Box.
trust agreements or other contractual Cabin.

obligation for purchase of the property. Caboose.
61
Charcoal. Passenger.
Coal. Passenger-baggage.
Coke. Passenger-baggage-mail.
Dump (commercial). Postal.
Express. Refrigerator-express.
Flat. Sleeping.
Fruit. Smoking.
Furniture. Tourists.
Gondola.
Gondola (hopper). LIST OF APPURTENANCES TO PASSENGER-TRAIN
Gondola (long). CARS
Hay. Air-brake equipment including hose.
Lime. Bedding.
Mail. Chairs.
Oil tank. Coat hooks.
Ore. Curtains and fixtures.
Logging. Cushions.
Platform. Electric bells.
Polling. Floor coverings.
Poultry. Heating equipment.
Produce. Ice boxes.
Rack. Ice tanks.
Refrigerator. Kitchen equipment and utensils.
Stock. Lighting equipment.
Tank and water (when used as commercial Mail catchers.
cars). Parcel racks.
Ranges and boilers.
LIST OF APPURTENANCES TO FREIGHT-TRAIN
Seats.
CARS
Speed recorders.
Air-brake equipment, including hose. Steam-heat hose.
Cooking equipment and utensils. Table china.
Heating units. Table glassware.
Lamps and fixtures. Table linen.
Loading devices. Table silver.
Refrigeration units. Toilet equipment.
Seats. Train-signal equipment, including hose.
Speed recorders. Water tanks.
Train-signal equipment, including hose.
Water tanks.
55 Highway revenue equipment.
54 Passenger-train cars.
cost of highway vehicles used in rev-
This account shall include the cost of enue transportation service, including
passenger-train cars of all classes, such pickup and delivery service, substitute
as motor-driven cars, purchased or line-haul service, and TOFC/COFC serv-
built by the carrier, including all ap- ice; also the cost of appurtenances
purtenances, furniture, and fixtures (such as radio communication equip-
necessary to equip them for service, ment) necessary to equip them for
and cost of inspection and transpor- service, and the inspection and trans-
tation charges to the carrier’s line. portation costs and charges required
LIST OF PASSENGER-TRAIN CARS for delivery of the vehicles into the
carrier’s revenue service.
Automobile. (b) Records shall be maintained to
Baggage.
identify the carrier’s investment in the
Baggage-express.
Baggage-mail. following equipment, including appur-
Baggage-mail-express. tenances:
Buffet.
LIST OF HIGHWAY REVENUE EQUIPMENT
Cafe, chair, and club.
Dining. Bogies.
Library. Buses.
Milk. Chassis.
Observation. Containers.
Parlor. Semi-trailers.
Parlor-baggage. Tractors.
62
Trailers. Logs.
Trucks. Machinery and foundations.
Masts.
LIST OF APPURTENANCES TO HIGHWAY Boilers and foundations.
REVENUE EQUIPMENT Cables.
Fire extinguishers. Capstan bars.
Heating units. Charts.
Radio communication equipment. Pianos and other musical instruments.
Refrigeration units. Pumps.
Rigging equipment. Railings.
Road dollies. Rigging.
Tarpaulins. Scales.
NOTE: The cost of trucks and tractors, Seats, chairs, and cushions.
which are used exclusively at TOFC/COFC Spyglasses and telescopes.
terminals for loading and unloading trailers Steam distribution systems.
and containers on and from flat cars shall be Steering equipment.
charged to account 25, ‘‘TOFC/COFC termi- Ticket cases.
nals.’’ Tool boxes and tools.
Tracks on car floats.
Ventilating equipment.
56 Floating equipment.
This account shall include the cost of 57 Work equipment.
marine or floating equipment of all This account shall include the cost of
kinds except work equipment, pur- work equipment, including motor-driv-
chased or built by the carrier, includ- en equipment, purchased or built by
ing all appurtenances, furniture, and the carrier; cost of appurtenances, fur-
fixtures necessary to equip it for serv- niture, and fixtures necessary to equip
ice, and cost of inspection and transit for service; and cost of inspection
portation charges to the carrier’s line. and transportation charges to the car-
LIST OF FLOATING EQUIPMENT rier’s line.
Barges. LIST OF RAIL WORK EQUIPMENT
Canal boats.
Car and other floats. Air-brake instruction cars.
Ferryboats. Ballast cars.
Lighters. Ballast unloader cars.
Power launches. Boarding cars.
Power lighters. Bridge cars.
Scows. Business cars.
Camp cars.
Steam boats.
Cinder cars.
Steamships.
Concrete mixers (mounted).
Transfer boats.
Derrick cars.
Tugboats.
Dirt spreaders (mounted).
LIST F APPURTENANCES TO FLOATING Ditching cars.
EQUIPMENT Dump cars.
Dynamometer cars.
Anchors. Gas tank cars.
Barometers. Grading cars.
Beds and bedding. Gravel cars.
Binnacle lamps. Indicator cars.
Blocks and tackle. Locomotive tanks used permanently as
China, crockery, and glassware. water cars.
Chronometers. Locomotives.
Compasses. Officers’ cars.
Desks and furniture. Outfit cars.
Engines and foundations. Painters’ cars.
Fire buckets and extinguishers. Pay cars.
Floor coverings. Pile drivers (mounted).
Gangplanks. Rail cars.
Heating equipment Rail saws (mounted).
Hoisting equipment. Salt cars.
Kitchen equipment. Sanding cars.
Life preservers. Scale test cars.
Lighting equipment. Scraper cars.

Linen. Snow dozers.
63
Snow drags. data processing equipment as well as
Snow plows (moved by but not attached to the cost of word processing equipment
locomotives). that is not dedicated to a particular
Sprinkling cars.
Steam shovels.
function. Essentially this account con-
Steam wrecking derricks. sists of all computer-related equipment
Supply cars. that remains under the control of the
Sweeper cars. data processing department. This ac-
Tool cars. count shall also include the cost of
Tool and block cars. foundations, power supply, fixtures, ap-
Water cars. purtenances and other devices to pre-
Weed burners (mounted).
Wrecking cars.
pare this equipment for use.
ITEMS
LIST OF FLOATING WORK EQUIPMENT
Mainframes, Mini-computers, Word proc-
Derricks.
essing systems, Printers, Monitors, Modems,
Dredges.
Storage devices.
Pile drivers.
NOTE A: The cost of micro computers, data
processing equipment, and word processing
58 Miscellaneous equipment. equipment which are an integral part of and
(a) This account shall include the essential to the operation of a separate facil-
cost of automobiles, trucks and other ity shall be charged to the appropriate prop-
erty account for that facility.
highway equipment not used in rev- NOTE B: Carriers desiring to adopt other
enue transportation service and not methods of accounting for computers and
provided for elsewhere; the cost of air- word processing equipment that are consid-
planes; the cost of appurtenances (such ered more suitable for their operational
as radio communication equipment) structure shall submit justification and sup-
necessary to equip them for service; porting documents to the Board for consider-
and the inspection and transportation ation and decision.
costs and charges required for delivery [52 FR 4326, Feb. 11, 1987]
of the vehicles to the carrier.
(b) The cost of on and/or off-track General Expenditures
automotive vehicles, which are perma-
nently equipped with special-purpose 70 General expenditures.
machinery and used exclusively in
The primary accounts of this general
maintenance of way and structures,
account are designed to include ex-
shall be charged to account 37, Road-
penditures made in connection with
way machines.
the acquisition and construction of
LIST OF MISCELLANEOUS EQUIPMENT original road and equipment, and with
Airplanes. extension, additions, and betterments
Automobiles. to road and equipment property, when
Buses. such expenditures cannot properly be
Emergency repair vehicles. included in any of the foregoing ac-
Road dollies. counts as a part of the cost of any spe-
Semi-trailers. cific work. When assignable, such ex-
Tractors.
Trailers.
penditures shall be included in the cost
Trucks. of the property for which the expendi-
Wreckers. tures occurred.
LIST OF APPURTENANCES TO MISCELLANEOUS 76 Interest during construction.
EQUIPMENT
(a) When any bonds, notes, or other
Fire extinguisher. evidences of indebtedness are sold, or
Radio communication equipment. any interest-bearing debt is incurred
Rigging equipment.
for acquisition and construction of
Tarpaulins.
original road and equipment, exten-
sions, additions, and betterments, the
59 Computer systems and word proc- interest accruing on the part of the
essing equipment. debt representing the cost of property
This account shall include the cost of chargeable to road and equipment ac-
mainframe and mini-computers and counts (less interest, if any, allowed by
64
depositaries on unexpended balances) ance with generally accepted accounting

after such funds become available for principles.
use and before the receipt or the com- NOTE D: This account shall not include in-
pletion or coming into service of the terest during the construction period on the
carrier’s own funds expended in connection
property so acquired shall be charged with the acquisition or construction of origi-
to this account. nal road and equipment, extensions, addi-
(b) When such securities are sold at a tions, and betterments.
premium, the proportion of such pre-
(5 U.S.C. 553; 49 U.S.C. 10321)
mium assignable to the time between
the date of the actual issuance of the [42 FR 35017, July 7, 1977, as amended at 46
securities and the time when the prop- FR 10920, Feb. 5, 1981]
erty acquired or the improvement
made becomes available for service Other Property Accounts
shall be credited to this account.
(c) This account shall also include 80 Other elements of investment.
such proportion of the discount and ex-
(a) This account shall include
pense on funded debt issued for the ac-
amounts resulting from adjustment of
quisition of original road, original
the primary property accounts to con-
equipment, road extensions, additions,
form with cost of property in valuation
and betterments, as is equitably as-
records. The amount in this account
signable to the period between the date
shall be cleared on a consistent basis as
of the actual issuance of securities and property is retired from service or oth-
the time when the property acquired or erwise in accordance with the rules in
the improvement made become avail- paragraphs (b), (c), and (d) of this ac-
able for the service for which it is in- count. Any material amount in this ac-
tended. The proportion of discount and count assignable to property pre-
expense thus chargeable shall be deter- viously retired from service shall be
mined by the ratio between the period cleared immediately.
prior to the completion or coming into
(b) When property is retired from
service of the facilities or improve- service, an equitable portion of the bal-
ments acquired and the period of the ance in this account assignable to such
entire life of the securities issued. property shall be cleared when the re-
NOTE A: Interest on bonds, notes, or other tirement entry is made. The amount so
evidences of indebtedness accruing before cleared, when a debit, shall be charged
the proceeds from the sale of the securities to account 551, Miscellaneous income
become available for use shall not be in-
charges, or, when a credit, shall be re-
cluded in this account, nor shall there be in-
cluded any interest accruing after the prop-
corded in account 519, Miscellaneous in-
erty with respect to which the proceeds are come. The exception to this general
expended is received or becomes available for rule with respect to a credit balance
use in connection with commercial service. assignable to property retired is that
NOTE B: If securities issued or assumed by when property classified as depreciable
the carrier are subsequently sold or ex- is retired from service and the balance
changed by or for the carrier, the excess of in the accumulated depreciation ac-
the par value and accrued interest of the se- count for the property is materially de-
curities over the actual money value of the ficient, because of sudden retirement
consideration received shall be deemed a dis-
count. In no case (except as provided in the
or other unusual cause, the portion of a
third paragraph of this account) shall dis- credit balance cleared for the retire-
count be included as part of the cost of items ment, equal to the deficiency, shall be
included in the accounts prescribed in this applied to reduce the amount of loss
classification. otherwise chargeable to the accumu-
NOTE C: Whenever interest, premium, or lated depreciation account.
discount assignable to the construction pe- (c) A carrier may apply to the Board
riod is incurred in connection with an ex- for authority to clear the entire bal-
penditure covered by some specific road and
ance from this account immediately or
equipment account or accounts, such inter-
est, premium, or discount shall be charged amortize the balance over a short pe-
directly to the specific accounts to which it riod of time by appropriate inclusion in
is related. Unless provided for otherwise, in- account 616, Other debits to retained
terest costs shall be capitalized in accord- earnings, or account 606 Other credits to
65
retained earnings. Any amount so au- show amounts of money which the car-
thorized or directed by the Board to be rier becomes entitled to receive or
cleared and written off to retained in- which accrue to its benefit from serv-
come shall be in lieu of amounts in- ices rendered in transporting property
cludible in accounts indicated in para- or persons by rail line. The detail ac-
graph (b). counts include in this general account
(d) Other plans for clearance, disposi- series are summarized in account 501,
tion, or classification of a balance in Railway Operating Revenues.
this account in conformity with sound
accounting principles may be sub- FR 4326, Feb. 11, 1987]
mitted to the Board with suitable de-
tails for consideration. This includes 101 Freight.
application for disposition of a balance
(a) This account shall include rev-
in this account attributable to reduc-
enue from the transportation of freight
tion of capitalization in a reorganiza-
and from transit, stop, and recon-
tion. An accounting procedure so ap-
signing privileges, upon the basis of
plied for shall become effective only
lawful tariff rates.
after Board approval. Each carrier
(b) This account shall include collec-
shall maintain a record of items ini-
tions in excess of tariff charges, except
tially included in and cleared later
where such amounts are segregated and
from this account and the basis used in
held subject to refund.
computing such items.
(c) Proceeds derived from the sale of
NOTE: The amounts attributable to past
mergers, consolidations and purchases of unclaimed and refused freight which
property included in this account shall be has been transported in accordance
merged with the adjustment made pursuant with the contract of shipment shall be
to paragraph (a) of this text. credited to this account in cases where
such items can be readily identified.
90 Construction in progress. Uncollected tariff charges on such ship-
This account shall include expendi- ments shall be charged to this account.
tures incurred by the carrier in the (d) Amounts determined to be
process of constructing road and equip- uncollectible shall be accounted for in
ment with its own forces or under con- accordance with the text of account 63–
tract during the period prior to the 61–00 General—Uncollectible accounts.
time property is placed in transpor-
ITEMS TO BE CREDITED
tation operations, including cost of
materials and supplies located at point (a) Revenue upon the basis of local freight
of use and of necessary land acquired tariff rates, regardless of class of train in
for such projects. When a project is which the freight is transported.
(b) The carrier’s proportion of revenue
completed or when a segment of a large upon the basis of through freight tariff rates,
project is completed and placed in serv- regardless of class of train on which the
ice, the cost of the completed project freight is transported.
or the completed segment thereof shall (c) Revenue from transportation of mail
be transferred to the appropriate road matter, and empty mail pouches, at freight
and equipment primary accounts. Sep- rates.
arate subaccounts may be maintained (d) Revenue from transportation of freight
on special trains at rates based on weights of
for road, equipment, or other classes of
shipments.
expenditures. Expenditures for rel- (e) Revenue on basis of classifications and
atively unimportant projects may be freight tariffs from transportation of care-
included directly in primary accounts. takers of freight shipments.
(f) Revenue from reconsigning privileges.
RAILWAY OPERATING REVENUE (g) Revenue from stop privileges.
(h) Revenue from transit privileges.
ACCOUNTS (i) Revenue upon the basis of arbitraries
out of freight, rates for water transfers
Transportation Revenue Accounts (ferriage, lighterage, and floatage).
(j) Revenue from transportation of trailers
100 Transportation; rail line. and containers on flat cars in TOFC/COFC
service upon the basis of all-rail line-haul
The primary accounts included in freight tariff rates and under arrangements
this general account are designed to for motor carrier-railroad joint haul, and
66
from the loading and unloading of trailers NOTE D: Revenue from the transportation
and containers on and from flat cars upon of caretakers of freight shipments, when not
the basis of tariff rates and under arrange- included as a part of the freight charges on
ments for motor carrier-railroad joint haul. the waybill covering the freight shipments,
shall be credited to account 102, ‘‘Pas-
ITEMS TO BE CHARGED senger.’’
(a) Amounts paid as bridge and ferry NOTE E: This account shall be maintained
arbitraries on freight. so as to show separately payments and al-
(b) Amounts paid for completing a haul. lowances for (a) terminal collection and de-
(c) Amounts paid for elevation of freight. livery services when performed in connection
(d) Amounts paid for switching services, in with line-haul transportation of freight on
connection with the transportation of the basis of freight tariff rates, further sepa-
freight, on the basis of switching tariffs, and rated between (1) TOFC/COFC service, and (2)
allowances out of through rates, including all other freight service; also (b) payments
amounts paid for switching empty cars in for switching services when performed in
connection with a freight revenue move- connection with line-haul transportation of
ment. freight on the basis of switching tariffs and
(e) Amounts paid for transferring freight allowances out of freight rates, including the
between stations. switching of empty cars in connection with a
(f) Arbitraries and allowances to others for revenue movement, and (c) payments on
lighterage and wharfage. basis of tariff rates for loading and unloading
(g) The carrier’s proportion of overcharges livestock.
resulting from the use of erroneous rates,
weights, classifications or computations. 102 Passenger.
(h) The carrier’s proportion of refunds on This account shall include the rev-
account of errors in routing and billing. enue from transportation of passengers
(i) The carrier’s proportion of uncollected
at passenger tariff fares, from the
revenue on freight lost or destroyed in tran-
sit. transportation of passengers at special
(j) The carrier’s proportion of uncollected fares as provided by law, and from inci-
tariff charges on damaged shipments for dental charges in connection there-
which charges neither shipper nor consignee with.
is liable.
(k) Amounts paid on basis of tariff rates ITEMS TO BE CREDITED
for loading and unloading livestock. (a) Revenue from local passenger fares.
(l) Amounts paid to motor truck compa- (b) The carrier’s proportion of revenue
nies for hauling trailers and containers to from interline passenger fares.
and from TOFC/COFC terminals, and allow-
(c) Revenue from extra fares.
ances to shippers who perform such service
on the basis of tariff rates. (d) Revenue from additional fares or
charges for exclusive use of a passenger car,
NOTE A: Amounts paid for switching empty drawing room, compartment, bedroom, etc.
cars other than in connection with loaded (e) Revenue from mileage and scrip cou-
movements shall be charged to operating ex- pons honored for all services covered by this
pense account 61–32–XX, ‘‘General—Other account.
Expenses—Transportation—Yard—Freight,’’
(f) Revenue from transportation of pas-
except that amounts paid for switching
sengers in special cars or on special trains
equipment for repairs shall be included in
when charge is based on passenger fare per
the appropriate equipment repair accounts.
capita, regardless of the number of pas-
NOTE B: Other carriers’ proportion of rev-
sengers actually transported.
enue and of uncollectible undercharges paid
(g) Revenue from a guaranteed minimum
by the carrier on account of its errors in
amount not based on per capita fare, for
routing and billing shall be charged to oper-
transportation of passengers on special or
ating expense account 61–35–76, ‘‘General—
chartered trains.
Other Expenses—Transportation—Adminis-
trative Support.’’ (h) Cash fare penalty collections.
NOTE C: When a lessee company transports (i) Unclaimed collections and deposits for
freight over the tracks of another carrier on transportation of passengers.
the basis of a proportion of revenues under a (j) Passenger fare overcharges.
joint arrangement, it shall include the entire (k) Revenue from transportation of
compensation in its revenues and statistics, corpses, based on passenger fares.
charging the appropriate joint facility ex- (l) Revenue from water transfers (ferriage),
pense and rental accounts with the amounts bridge tolls, and transfers between railway
paid the lessor company, and the lessor com- stations or between railway stations and
pany shall credit the corresponding ac- docks, received as arbitraries in divisions of
counts. passenger fares.
67
ITEMS TO BE CHARGED The amounts recorded in this account
(a) Amounts paid as bridge tolls, and also shall not include aid in the form of
for ferry, depot to depot and depot to dock abatement or forgiveness of taxes, as-
passenger transfer service. sumption by local governments of sta-
(b) Amounts paid for switching in com- tion maintenance costs, and other
pleting a passenger transportation move- similar special indirect benefits, con-
ment. tributed by governmental agencies.
(c) Amounts paid for switching empty pas-
senger-train cars in connection with trans- 104 Switching.
portation of passengers. (See note C.)
(d) Redemptions of unused and partially (a) This account shall include the
unused local tickets and redemptions of car- revenue from switching service upon
rier’s proportions of unused and partially un- the basis of lawful tariff rates. To this
used interline tickets. account shall be credited the carrier’s
(e) Refund of extra fares, cash fare penalty revenue upon the basis of tariff rates,
collections, and overcharges in excess of tar- or the carrier’s allowance out of
iff fares. through rates, from the switching of
(f) Uncollectible undercharges. cars of all kinds, loaded or empty, ei-
NOTE A: Gross receipts from the sale of ther locally at a station or within a
mileage tickets, and scrip books shall be switching district, between connecting
credited to a suspense account. The suspense
lines, between local industries, or be-
account shall be charged and this account
credited with the value of coupons as hon- tween connecting lines and local indus-
ored, in connection with any of the services tries; revenue upon the basis of distinct
provided for in Items To Be Credited. tariff rates for trapcar and ferry-car
NOTE B: When a lessee company transports service and for spotting cars; also the
passengers over the tracks of another com- revenue from interwork switching at
pany under a joint arrangement upon the industrial plants, and the revenue from
basis of a proportion of the passenger rev- penalty switching incident to the im-
enue, it shall include the entire compensa- proper delivery of cars by other car-
tion in its passenger revenue and statistics,
charging the appropriate joint facility ex-
riers.
pense and rental accounts with the amounts (b) To this account shall be charged
paid the lessor company and the lessor com- amounts paid others for switching
pany shall credit the corresponding joint fa- when such switching service is pro-
cility accounts. vided for in the switching rate charged
NOTE C: Amounts paid for switching empty by the carrier.
passenger-train cars other than in connec- NOTE: Penalty switching charges paid by the
tion with loaded movements, shall be carrier shall be included in expense account
charged to account 61–42–XX. General—Other 61–32–XX, General—Other Expenses—Transpor-
Expenses—Transportation—Yard—Passenger, tation—Yard—Freight.
except that when switched for repairs, the
amounts paid shall be included in account 105 Water transfers.
39–25–45, Purchased Services—Repairs Billed by
Others—Equipment—Other Equipment. (a) This account shall include the
NOTE D: Amounts determined to be revenue, from the transfer by water
uncollectible shall be accounted for in ac- (ferriage, lighterage, and floatage) of
cordance with the text of account 63–62–00, passenger, freight, vehicles and live-
General—Uncollectible accounts. stock, upon the basis of lawful local
tariff rates.
103 Passenger-related. (b) This account also shall include
This account shall include the rev- revenue from water transfers of other
enue from the transportation of bag- traffic, such as the revenue from tow-
gage, packages, etc. on passenger ing beyond lighterage limits and all
trains at other than freight or express other towing for which an extra charge
tariff rates. This account shall also in- is made; insurance of freight afloat
clude the revenue from berth and seat when billed out at other than cost;
accommodations furnished in sleeping, storage of freight afloat; grain overage
parlor observation, chair, and other in boats; pumping performed for out-
special passenger cars, also the revenue side parties; and from other similar
derived from the operation of passenger sources.
trains not provided for elsewhere, and (c) To this account shall be charged
dining and buffet service. amounts payable to other companies or
68
individuals for extra lighterage, extra the amount payable by the carrier to
towing, and for all other service when other companies from operation of
such payments represent revenue col- joint facilities.
lected and credited to this account and
not a direct expense. 121 Joint facility—credit.
NOTE: No revenue shall be included in this This account shall include the car-
account for water transfers of passengers or rier’s proportion of revenue collected
shipments upon the basis of arbitraries out
by others in connection with the oper-
of rates for transportation involving rail line
haul. ation of joint tracks, yards, terminals,
and other facilities, including revenue
106 Demurrage. from hotels, restaurants, grain ele-
vators, sale of power, and other mis-
This account shall include the rev-
cellaneous operations.
enue from the detention of cars inci-
dent to loading, unloading, recon- NOTE A: The purpose of this account is to
signing, and stops in transit upon the show the amounts of revenue from the oper-
ation of joint tracks, yards, terminals and
basis of lawful tariffs for demurrage.
other facilities operated by other companies,
This account shall also include the rev- which under existing contracts or agree-
enue from the detention of trailers and ments are credited by the operating com-
containers used in TOFC/COFC service, pany to the tenant companies which partici-
incident to loading and unloading, pate therein. The bill rendered by any cred-
upon the basis of tariff rates. itor company against a debtor company for
NOTE: This account shall be maintained so the latter’s proportion of the expense of
as to reflect separately (1) revenue from de- maintenance and operation of joint facili-
tention of cars, and (2) revenue from deten- ties, which includes also a credit covering a
tion of trailers and containers used in TOFC/ proportion of the revenue to be paid over,
COFC service. shall show the distribution of the credit for
such proportion of the revenue separately
110 Incidental. from the distribution of the expense of oper-
ation.
This account is designed to show the NOTE B: No credits shall be made to this
amounts which the carrier becomes en- account representing amounts creditable by
titled to receive from services rendered the operating company to primary accounts
incidentally with rail-line and water- 101–103, 105 and 110.
line transportation; for the use of fa-
cilities of which the expenses for oper- 122 Joint facility—debit.
ation and maintenance are not sepa- This account shall include that pro-
rable from railway expenses and from portion of revenue from the operation
incidental sources not provided for of joint tracks, yards, terminals, and
elsewhere. Among the items included other facilities, which is creditable to
in this account are revenues derived other companies, including revenue
from (1) hotels and restaurants, (2) op- from hotels, restaurants, grain ele-
erations conducted at stations and on vators, sale of power, and other mis-
trains by individual or companies other cellaneous operations.
than railway companies, (3) storage, (4)
NOTE A: The purpose of this account is to
the sale of electric power, (5) renting show the amount of revenue from operation
property operated and maintained in of a terminal company or other carrier
connection with the property used in which, under the terms of existing contracts
the carrier’s transportation operations or agreements covering the joint use of
and from railway operations not pro- tracks, yards, and other facilities, is credited
vided for elsewhere. to other carriers that participate in the ben-
efits from such joint use. The bill rendered
by a creditor company against a debtor com-
Joint Facility Revenue Accounts pany for the latter’s proportion of expense of
maintaining and operating joint facilities,
120 Joint facility. which includes a credit covering the debtor
company’s proportion of the revenues from
The primary accounts included in
operation of such joint facilities, shall indi-
this general account are designed to cate separately the proper distribution of
show the carrier’s proportion of reve- both the revenues and the expenses included
nues collected by others in connection in the bill, and such distribution shall be ad-
with operation of joint facilities and hered to by the debtor.
69
NOTE B: No debits shall be made to this ac- explanations. Section 3 explains the
count representing amounts creditable by functions appropriate for each activity/
the operating company to primary accounts subactivity. To obtain a complete ex-
101–103, 105 and 110.
planation for a particular account,
refer to section 1 to locate the natural
OPERATING EXPENSE ACCOUNTS expense and activity/subactivity (first
four digits) and read the appropriate
SOURCE: 52 FR 4326, Feb. 11, 1987, unless account text. Accounts that are as-
otherwise noted. signed to functions are appropriately
listed. For further information, refer to
INSTRUCTION section 2 and section 3.
(1) The operating expense accounts (3) All accounts listed in Table A and
use a six-digit code. The first two dig- section 1 are for freight only. Refer to
its denote natural expense, the second Table F for applicable passenger or
two digits denote activity/subactivity, common account codes. Account num-
and the third two digits denote de- bers designated with an asterisk in sec-
tailed functions. [See Table A for an tion 1 denote freight only accounts,
overview of the coding structure and while other accounts are used for both
Tables B–E for detailed functions.] freight and passenger or common ac-
(2) The operating expense account ex- counts.
planations use a three-tier format. Sec- (4) All expense assigned to common
tion 1 contains natural expense expla- operating accounts shall be allocated
nations with applicable activity/sub- to freight and passenger accounts in
activity and function assignment. Sec- accordance with Part 1242 of this chap-
tion 2 details the activity/subactivity ter.
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19:24 Nov 02, 2007
Surface Transportation Board, DOT

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
Gen-
Jkt 211217
Train Admin- eral

Other and Spe-
Run- Switch- Loco- Freight istra- and
Control Other equip- Train Yard yard cialized
ning ing motive cars tive admin-
ment com- SVDS support istra-
mon tive
PO 00000
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 11–11 3 11–12 3 11–13 3 11–21 3 11–22 11–23 3 11–31 3 11–32 3 11–33 3 11–34 3 11–35 3 11–61
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 ............ ............ ............ ............ ............ ............ ............ ............ ............ ............ ............ ............
Frm 00081
Materiel, tools, supp, fuel, lubricants .............................. 21–00 3 21–11 3 21–12 3 21–13 3 21–21 3 21–22 3 21–23 3 21–31 3 21–32 3 21–33 3 21–34 3 21–35 3 21–61
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 ............ ............ ............ ............ ............ ............
Fmt 8010
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 ............ ............ ............ ............ ............ ............
71
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
Sfmt 8010
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 39–11 3 39–12 3 39–13 3 39–21 3 39–22 3 39–23 ............ ............ ............ ............ ............ ............
Repairs billed to others—CR .......................................... 40–00 3 40–11 3 40–12 3 40–13 3 40–21 3 40–22 3 40–23 ............ ............ ............ ............ ............ ............
Other purchase services ................................................ 41–00 3 41–11 3 41–12 3 41–13 3 41–21 3 41–22 3 41–23 3 41–31 3 41–32 3 41–33 3 41–34 3 41–35 3 41–61
Claims and insurance ............................................................ 50–00 ............ ............ ............ ............ ............ ............ ............ ............ ............ ............ ............ ............
Y:\SGML\211217.XXX
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 61–11 3 61–12 3 61–13 3 61–21 3 61–22 3 61–23 3 61–31 3 61–32 ............ 3 61–34 3 61–35 3 61–61
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
211217
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 de-
notes 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].
Pt. 1201
TABLE B—FUNCTION CODE USE—WAY AND STRUCTURES
Running Switching Other

Code Functions
1F 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 Equip-

ment
Code Functions
1F 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.
72
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19:24 Nov 02, 2007

TABLE D—FUNCTION CODE USE—TRANSPORTATION
Train Yard Train and yard Specialized Administrative

common services support
Code
Jkt 211217
*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
PO 00000
56 Engine .............................................................................................................................. X X X ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ......
57 Train crews ....................................................................................................................... X X X ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ......
58 Dispatching trains ............................................................................................................. X X X ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ......
59 Operating switches, signals, interlockers, retarders, humps ........................................... X X X X X X ...... ...... ...... ...... ...... ...... ...... ...... ......
60 Operating drawbridges ..................................................................................................... X X X ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ......
Frm 00083
61 Highway crossing protection ............................................................................................ X X X ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ......
62 Train inspection and lubrication ....................................................................................... X X X ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ......
63 Clearing wrecks ................................................................................................................ X X X X X X ...... ...... ...... ...... ...... ...... ...... ...... ......
64 Switch crews .................................................................................................................... ...... ...... ...... X X X ...... ...... ...... ...... ...... ...... ...... ...... ......
65 Controlling operations ...................................................................................................... ...... ...... ...... X X X ...... ...... ...... ...... ...... ...... ...... ...... ......
Fmt 8010
66 Yard and terminal clerical ................................................................................................ ...... ...... ...... X X X ...... ...... ...... ...... ...... ...... ...... ...... ......
67 Locomotive fuel ................................................................................................................ X X X X X X ...... ...... ...... ...... ...... ...... ...... ...... ......
68 Power purchased/produced for motive power ................................................................. X X X X X X ...... ...... ...... ...... ...... ...... ...... ...... ......
73
69 Servicing locomotives ....................................................................................................... X X X X X X ...... ...... ...... ...... ...... ...... ...... ...... ......
Sfmt 8010
70 Cleaning car interior ......................................................................................................... ...... ...... ...... ...... ...... ...... X X X ...... ...... ...... ...... ...... ......
71 Adjusting, transferring loads ............................................................................................. ...... ...... ...... ...... ...... ...... X ...... ...... ...... ...... ...... ...... ...... ......
72 Car loading devices and grain doors ............................................................................... ...... ...... ...... ...... ...... ...... X ...... ...... ...... ...... ...... ...... ...... ......
73 Pick up and delivery, marine haul, rail substitute service ............................................... ...... ...... ...... ...... ...... ...... ...... ...... ...... X ...... ...... ...... ...... ......
74 Loading, unloading, local marine ..................................................................................... ...... ...... ...... ...... ...... ...... ...... ...... ...... X ...... ...... ...... ...... ......
Y:\SGML\211217.XXX
75 Protective services ........................................................................................................... ...... ...... ...... ...... ...... ...... ...... ...... ...... X ...... ...... ...... ...... ......
76 Clerks and accounting employees ................................................................................... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... X X X
77 Communications systems operations .............................................................................. ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... X X X
78 Loss and damage claims processing ............................................................................... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... X X X
OTHER
99 Other ................................................................................................................................. X X X X X X ...... ...... ...... X ...... ...... X X X
211217
Pt. 1201
TABLE E—FUNCTIONAL CODE USE—GENERAL AND ADMINISTRATIVE
Code Functions Freight Passenger Common
ADMINISTRATION
Administration ....................................................................................................... X X X
GENERAL
86 Accounting, auditing, finance ............................................................................... X X X
87 Management services and data and word processing ........................................ X X X
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 advertising ........................................................................... X X X
94 Research and development ................................................................................. X X X
OTHER
99 Other ..................................................................................................................... X X X
TABLE F—ACTIVITY/SUBACTIVITY CODE USE
Code pas-
Activity/subactivity Freight Common
senger
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 ered direct compensation for time not

worked. Amounts of labor billed by
Section 1—Natural Expense Explanations* contractors, other companies, and joint
facilities, are not considered salaries
and wages of the carrier company and
Personnel are not to be included in this account
group. Its components shall be distrib-
Control—10–00–00
uted to the following accounts in ac-
This account may be used as a con- cordance with Instruction 1–12.
trol account for all accounts in the
PERSONNEL Series: Salaries and Wages. Salaries and Wages—Way and Struc-
Fringe Benefits Not Included in Com- tures—Running—11–11–XX
pensation.
This account includes the compensation
Salaries and Wages—Control 11–00–00 payable to all repair and maintenance em-
ployees and others who are associated with
This account series includes the com- the repair and maintenance of the carrier’s
pensation payable to employees for roadway and track on the line of road and
services performed. It includes outside of classification yards. Compensa-
amounts payable in connection with tion payable to officers and technical and
profit sharing and stock option plans clerical employees shall only be assigned to
Way and Structures—Other. This account
that are part of employee compensa- shall be subdivided by the following func-
tion. This account series also includes tions:
amounts of compensation payable to Repair and Maintenance:
employees for paid time off as a fringe Roadway ................................. 11–11–10
benefit: Vacation pay, holiday pay, Tunnels and Subways ............. 11–11–11
sick pay, and other payments consid- Bridges and Culverts ............... 11–11–12
74
Ties ......................................... 11–11–13 Locomotive Servicing Facili-

Rails and Other Track Mate- ties ....................................... 11–13–27
rial ....................................... 11–11–14 Miscellaneous Buildings and
Ballast .................................... 11–11–16 Structures ............................ *11–13–28
Signals and Interlockers ......... 11–11–19 Coal Terminals ....................... *11–13–29
Highway Grade Crossings ....... 11–11–22 Ore Terminals ......................... *11–13–30
Dismantling Retired Property 11–11–39 TOFC/COFC Terminals ........... *11–13–31
Road Property and Equipment Other Marine Terminals ......... *11–13–32
Damaged .............................. 11–11–48 Motor Vehicle Loading and
Other—Other ................................. 11–11–99 Distribution Facilities ......... *11–13–33
Facilities for Other Special-
Salaries and Wages—Way and Struc- ized Services Operations ...... *11–13–35
tures—Switching—11–12–XX Roadway Machines ................. 11–13–36
Snow Removal ........................ 11–13–38
Dismantling Retired Property 11–13–39
payable to all repair and maintenance em-
ployees and others who are associated with Road Property and Equipment
the repair and maintenance of the carrier’s Damaged .............................. 11–13–48
roadway and track within classification Other—Other ........................... 11–13–99
yards and stations. Compensation payable to
officers and technical and clerical employees Salaries and Wages—Equipment—Loco-
shall be assigned to Way and Structures— motives—11–21–XX
Other. This account shall be subdivided by This account includes the compensation
the following functions: payable to all officers and technical and cler-
Repair and Maintenance: ical employees, repair and maintenance em-
Roadway ................................. 11–12–10 ployees, and others who are associated with
Tunnels and Subways ............. 11–12–11 the repair and maintenance of locomotives,
Bridges and Culverts ............... 11–12–12 whether owned by the carrier or by others.
Ties ......................................... 11–12–13 This account shall be subdivided by the fol-
Rails and Other Track Mate- lowing functions:
rial ....................................... 11–12–14 Administration—General .............. 11–21–01
Ballast .................................... 11–12–16 Repair and Maintenance:
Signals and Interlockers ......... 11–12–19 Dismantling Retired Property 11–21–39
Highway Grade Crossings ....... 11–12–22 Locomotives ........................... 11–21–41
Dismantling Retired Property 11–12–39 Road Property and Equipment
Road Property and Equipment Damaged .............................. 11–21–48
Damaged .............................. 11–12–48 Other—Other ................................. 11–21–99
Other—Other ........................... 11–12–99
Salaries and Wages—Equipment—
Salaries and Wages—Way and Struc- Freight Cars—11–22–XX*
tures—Other—11–13–XX
This account includes the compensation payable to all officers, technical and clerical
payable to all repair and maintenance em- employees, repair and maintenance employ-
ployees and others who are associated with ees, and others, who are associated with the
the repair and maintenance of the carrier’s repair and maintenance of freight cars,
structures other than roadway and track. whether owned by the carrier or by others.
Each administration account (functions 02– This account shall be subdivided by the fol-
06) includes the compensation payable to all lowing functions:
officers and technical and clerical employees
associated with the Way and Structures Ac- Administration—General .............. 11–22–01
tivity. This account shall be subdivided by Repair and Maintenance:
the following functions: Dismantling Retired Property 11–22–39
Freight Cars ............................ 11–22–42
Administration:
Road Property and Equipment
Track ...................................... 11–13–02
Damaged .............................. 11–22–48
Bridges and Buildings ............. 11–13–03
Other—Other ................................. 11–22–99
Signals .................................... 11–13–04
Communications ..................... 11–13–05
Salaries and Wages—Equipment—Other
Other ....................................... 11–13–06
Repair and Maintenance:
Equipment—11–23–XX
Communication Systems ........ 11–13–20 This account includes the compensation
Power Systems ....................... 11–13–21 payable to all officers, technical and clerical
Station and Office Buildings ... 11–13–23 employees, repair and maintenance employ-
Shop Buildings—Locomotives 11–13–24 ees, and others, who are associated with the
Shop Buildings—Freight Cars *11–13–25 repair and maintenance of equipment other

Shop Buildings—Other ............ 11–13–26 than locomotives and freight cars, whether
75
owned by the carrier or by others. This ac- Clearing Wrecks ...................... 11–32–63
count shall be subdivided by the following Switch Crews .......................... 11–32–64
functions: Controlling Operations ........... 11–32–65
Administration—General .............. 11–23–01 Yard and Terminal Clerical .... 11–32–66
Repair and Maintenance: Locomotive Fuel ..................... 11–32–67
Dismantling Retired Property 11–23–39 Electric Power Purchased/Pro-
Trucks, Trailers, Containers duced for Motive Power ....... 11–32–68
in Revenue Service .............. *11–23–43 Servicing Locomotives ........... 11–32–69
Floating Equipment—Revenue Other—Other ................................. 11–32–99
Service ................................. *11–23–44
Passenger and Other Revenue Salaries and Wages—Transportation—
Service ................................. 11–23–45 Train and Yard—Common—11–33–
Work and Other Non-Revenue
Equipment ........................... 11–23–47
XX
Road Property and Equipment This account includes the compensation
Damaged .............................. 11–23–48 payable to all officers, performing functions
Shop Machinery—Locomotives 11–23–49 incurred on behalf of both train and yard op-
Shop Machinery—Other erations. This account shall be subdivided by
Equipment ........................... 11–23–51 the following functions:
Other—Other ................................. 11–23–99 Operations:
Cleaning Car Interiors ............ 11–33–70
Salaries and Wages—Transportation—
Adjusting and Transferring
Train—11–31–XX Loads ................................... *11–33–71
This account includes the compensation Car Loading Devices and
payable to all officers, technical and clerical Grain Doors ......................... *11–33–72
employees, engine and train crews, and other
operational employees, who are associated Salaries and Wages—Transportation—
with the dispatching and operation of freight Specialized Services—11–34–XX*
trains over the roadway and outside of clas-
sification yards. This account shall be sub- This account includes the compensation
divided by the following functions: payable to all officers, technical and clerical
employees, and other operational employees
Administration—General .............. 11–31–01 who are associated with operating services
Operations: which are specialized in nature and in cost
Engine Crews .......................... 11–31–56 characteristics. The specialized services des-
Train Crews ............................ 11–31–57 ignated by the Board appear within the ex-
Dispatching Trains ................. 11–31–58
planation of activities/subactivities. This ac-
Operating Switches, Signals,
count shall be subdivided by the following
Interlockers, Retarders,
functions:
Humps .................................. 11–31–59
Operating Drawbridges ........... 11–31–60 Administration—General .............. 11–34–01
Highway Crossing Protection 11–31–61 Operations:
Train Inspection and Lubrica- Pick Up and Delivery, Marine
tion ...................................... 11–31–62 Line Haul, and Rail Sub-
Clearing Wrecks ...................... 11–31–63 stitute Service ..................... 11–34–73
Locomotive Fuel ..................... 11–31–67 Loading, Unloading, and Local
Electric Power Purchased/Pro- Marine ................................. 11–34–74
duced for Motive Power ....... 11–31–68 Protective Services ................. 11–34–75
Servicing Locomotives ........... 11–31–69 Other—Other ................................. 11–34–99
Other—Other ................................. 11–31–99
Salaries and Wages—Transportation—
Salaries and Wages—Transportation— Administrative Support—11–35–XX
Yard—11–32–XX
This account includes the compensation payable to all officers, are associated with
payable to all officers, technical and clerical providing direct administrative support for
employees, engine and train crews, and other the Transportation Activity. For further
operational employees, who are associated clarification refer to the explanation of the
with the movement of freight cars within Administrative Support Operations Sub-
classification yards and in terminal switch- activity. Each account shall be subdivided by
ing and transfer service. This account shall the following functions:
be subdivided by the following functions: Administration—General .............. 11–35–01
Administration—General .............. 11–32–01 Operations:
Operations: Clerical and Accounting Em-
Operating Switches, Signals, ployees ................................. 11–35–76
Interlockers, Retarders, Communication Systems Op-

Humps .................................. 11–32–59 erations ................................ 11–35–77
76
Loss and Damage Claims Proc- Fringe Benefits Not Included in

essing ................................... 11–35–78 Compensation—Way and Struc-
Other—Other ................................. 11–35–99 tures—Switching ....................... 12–12–00
Fringe Benefits Not Included in
Salaries and Wages—General and Ad- Compensation—Way and Struc-
ministrative—11–61–XX tures—Other .............................. 12–13–00
This account includes the compensation Compensation—Equipment Lo-
payable to all employees who are associated comotives ................................... 12–21–00
with overall administration or other general
support for carrier operations. Overall ad-
Compensation—Equipment—
ministration includes executive, legal, finan-
Freight Cars ............................... *12–22–00
cial, treasury, accounting, budgeting, tax-
ation, corporate planning, costing, mar- Fringe Benefits Not Included in
keting, advertising, traffic, corporate sec- Compensation—Equipment—
retary, public relations, real estate, insur- Other Equipment ....................... 12–23–00
ance administration, personnel administra- Fringe Benefits Not Included in
tion, pension plan administration, general Compensation—Transpor-
purchasing, labor relations, internal audit- tation—Train ............................. 12–31–00
ing, industrial engineering, and regulatory Fringe Benefits Not Included in
reporting. For further clarification refer to Compensation—Transpor-
the explanation of the General and Adminis- tation—Yard .............................. 12–32–00
trative Activity. This account shall be sub- Fringe Benefits Not Included in
divided by the following functions: Compensation—Transpor-
tation—Train and Yard Common 12–33–00
Administration—General .............. 11–61–01
General:
Compensation—Transpor-
Accounting, Auditing, Finance 11–61–86
tation—Specialized Services ...... 12–34–00
Marketing ............................... 11–61–88
Sales ....................................... 11–61–89 Compensation—Transpor-
Industrial Development .......... *11–61–90 tation—Administrative Support 12–35–00
Personnel and Labor Relations 11–61–91 Fringe Benefits Not Included in
Legal and Secretarial ............. 11–61–92 Compensation—General and Ad-
Public Relations and Adver- ministrative ............................... 12–61–00
tising ................................... 11–61–93
Research and Development ..... 11–61–94 Materiel Control—20–00–00
Other—Other ................................. 11–61–99
This account may be used as a con-
Fringe Benefits Not Included in Com- trol account for the MATERIEL series:
pensation—Control—12–00–00 Materials, Tools, Supplies, Fuels, Lu-
This account series includes amounts bricants.
payable to others, or other costs
Materials, Tools, Supplies, Fuels, Lubri-
charged to expense, for employee bene-
cants—Control—21–00–00
fits which are not considered part of di-
rect compensation. These benefits in- This account group includes the cost
clude the carrier portions of Railroad of items installed or commodities con-
Retirement contributions, pension ex- sumed which are charged to expense in
pense, unemployment taxes, dental connection with carrier operations.
plans, health plans, hospitalization in- This account group includes charges to
surance, life insurance, subsidies for expense for all materials, small tools,
employee lunchrooms, company enter- supplies, fuels, lubricants, purchased
tainment facilities for personal use, standard stationery and forms, freight-
and other benefits to employees that in on materials and supplies, and simi-
are not includible in direct compensa- lar items. This account group excludes
tion. They exclude travel expense on purchased services such as utilities,
company business, casualties, work-
communications, postage and other
men’s compensation, as well as dues,
items of similar nature. Its compo-
memberships, and similar items when
nents shall be distributed to the fol-
the direct beneficiary is clearly the
company rather than the employee. lowing accounts:
Compensation—Way and Struc-

tures—Running .......................... 12–11–00
77
Materials, Tools, Supplies, Fuels, Lubri- Materials, Tools, Supplies, Fuels, Lubri-
cants—Way and Structures—Run- cants—Way and Structures—
ning—21–11–XX Other—21–13–XX
This account includes the cost of items in- This account includes the cost of items in-
stalled or commodities consumed which are stalled or commodities consumed which are
charged to expense, where such items are charged to expense, where such items are
consumed in the performance or support of consumed in the performance or support of
the repair and maintenance of the carrier’s the repair and maintenance of the carrier’s
roadway and track on the line of the road structures not provided for in running or
and outside of classification yards. Each ac- switching. Each account includes charges to
count includes charges to expense for all ma- expense for all materials, small tools, sup-
terials, small tools, supplies, fuels, lubri- plies, fuels, lubricants, purchased standard
cants, purchased standard stationery and stationery and forms, freight-in on materials
forms, freight-in on materials, and supplies, and supplies, and similar items. Its compo-
and similar items. Its components shall be nents shall be distributed to the following
distributed to the following functions in ac- functions in accordance with Instruction 1–
cordance with Instruction 1–18: 18:
Repair and Maintenance: Administration:
Track ...................................... 21–13–02
Roadway ................................. 21–11–10
Bridges and Buildings ............. 21–13–03
Tunnels and Subways ............. 21–11–11 Signals .................................... 21–13–04
Bridges and Culverts ............... 21–11–12 Communications ..................... 21–13–05
Ties ......................................... 21–11–13 Other ....................................... 21–13–06
Rails and Other Track Mate- Repair and Maintenance:
rial ....................................... 21–11–14 Communication Systems ........ 21–13–20
Ballast .................................... 21–11–16 Power Systems ....................... 21–13–21
Signals and Interlockers ......... 21–11–19 Station and Office Buildings ... 21–13–23
Dismantling Retired Property 21–11–39 Shop Buildings—Locomotives 21–13–24
Road Property and Equipment Shop Buildings—Freight Cars *21–13–25
Damaged .............................. 21–11–48 Shop Buildings—Other Equip-
ment .................................... 21–13–26
Other—Other ........................... 21–11–99
Locomotive Servicing Facili-
ties ....................................... 21–13–27
Materials, Tools, Supplies, Fuels, Lubri- Coal Terminals ....................... *21–13–29
cants—Way and Structures— Ore Terminals ......................... *21–13–30
Switching—21–12–XX TOFC/COFC Terminals ........... *21–13–31
Other Marine Terminals ......... *21–13–32
Motor Vehicle Loading and
This account includes the cost of items in-
Distribution Facilities ......... *21–13–33
stalled or commodities consumed which are
charged to expense, where such items are
ized Services Operations ...... *21–13–35
consumed in the performance or support of
Roadway Machines ................. 21–13–36
the repair and maintenance of the carrier’s
Snow Removal ........................ 21–13–38
roadway and track within classification Dismantling Retired Property 21–13–39
yards and stations. This account includes Road Property and Equipment
charges to expense for all materials, small Damaged .............................. 21–13–48
tools, supplies, fuels, lubricants, purchased Other—Other ................................. 21–13–99
standard stationery and forms, freight-in on
materials and supplies, and similar items. Its
components shall be distributed to the fol- Materials, Tools, Supplies, Fuels, Lubri-
lowing functions in accordance with Instruc- cants—Equipment—Locomotives—
tion 1–18: 21–21–XX
Roadway ................................. 21–12–10 This account includes the cost of items in-
Tunnels and Subways ............. 21–12–11 stalled or commodities consumed which are
Bridges and Culverts ............... 21–12–12
Ties ......................................... 21–12–13 the repair and maintenance of locomotives,
Rails and Other Track Mate- whether owned by the carrier or by others.
rial ....................................... 21–12–14 This account includes charges to expense for
Ballast .................................... 21–12–16 all materials, small tools, supplies, fuels, lu-
Signals and Interlockers ......... 21–12–19 bricants, purchased standard stationery and
Highway Grade Crossings ....... 21–12–22 forms, freight-in on materials and supplies,
Dismantling Retired Property 21–12–29 and similar items. Its components shall be
Road Property and Equipment distributed to the following functions in ac-

Damaged .............................. 21–12–48 cordance with Instruction 1–18:
78
Administration—General .............. 21–21–01 Shop Machinery—Locomotives 21–23–49

Repair and Maintenance: Shop Machinery—Freight Cars *21–23–50
Locomotives ........................... 21–21–41 Shop Machinery—Other
Road Property and Equipment Equipment ........................... 21–23–51
Damaged .............................. 21–21–48 Other—Other ................................. 21–23–99
Other—Other ................................. 21–21–99
Materials, Tools, Supplies, Fuels, Lubri-
Materials, Tools, Supplies, Fuels, Lubri- cants—Transportation—Train—21–
cants—Equipment—Freight Cars— 31–XX
21–22–XX*
This account includes the cost of items installed or commodities consumed which are
stalled or commodities consumed which are charged to expense, where such items are
charged to expense, where such items are consumed in association with the dis-
consumed in the performance or support of patching and operation of freight trains over
the repair and maintenance of freight-cars, the charges to expense for all materials,
whether owned by the carrier or by others. small tools, supplies, fuels, lubricants, pur-
This account includes charges to expense for chased standard stationery and forms,
all materials, small tools, supplies, fuels, lu- freight-in on materials and supplies, and
bricants, purchased standard stationery and similar items. Its components shall be dis-
forms, freight-in on materials and supplies, tributed to the following functions in accord-
and similar items. Its components shall be ance with Instruction 1–18:
distributed to the following functions in ac- Administration—General .............. 21–31–01
cordance with Instruction 1–18: Operations:
Engine Crews .......................... 21–31–56
Train Crews ............................ 21–31–57
Dismantling Retired Property 21–22–39
Freight Cars ............................ 21–22–42
Humps .................................. 21–31–59
Damaged .............................. 21–22–48
Operating Drawbridges ........... 21–31–60
Other—Other ................................. 21–22–99 Highway Crossing Protection 21–31–61
Train Inspection and Lubrica-
Materials, Tools, Supplies, Fuels, Lubri- tion ...................................... 21–31–62
cants—Equipment—Other Equip- Clearing Wrecks ...................... 21–31–63
ment—21–23–XX Locomotive Fuels ................... 21–31–67
Electric Power Purchased/Pro-
This account includes the cost of items in- duced for Motive Power ....... 21–31–68
Servicing Locomotives ........... 21–31–69
Other—Other ................................. 21–31–99
the repair and maintenance of equipment by Materials, Tools, Supplies, Fuels, Lubri-
others. This account includes charges to ex- cants—Transportation—Yard—21–
pense for all materials, small tools, supplies, 32–XX
fuels, lubricants, purchased standard sta-
tionery and forms, freight-in on materials This account includes the cost of items in-
and supplies, and similar items. Its compo- stalled or commodities consumed which are
nents shall be distributed to the following charged to expense, where such items are
functions in accordance with Instruction 1– consumed in and in terminal switching and
18: transfer service. This account includes
Administration—General .............. 21–23–01 charges to expense for all materials, small
Repair and Maintenance: tools, supplies, fuels, lubricants, purchased
Dismantling Retired Property 21–23–39 standard stationery and forms, freight-in on
Trucks, Trailers, Containers materials and supplies, and similar items. Its
in Revenue Service .............. *21–23–43 components shall be distributed to the fol-
Floating Equipment—Revenue lowing functions in accordance with Instruc-
Service ................................. *21–23–44 tion 1–18:
Passenger and Other Revenue Administration—General .............. 21–32–01
Equipment ........................... 21–23–45 Operations:
Computer Systems and Word Operating Switches, Signals,
Processing Equipment ......... 21–23–46 Interlockers, Retarders,
Work and Other Non-Revenue Humps .................................. 21–32–59
Equipment ........................... 21–23–47 Clearing Wrecks ...................... 21–32–63
Road Property and Equipment Switch Crews .......................... 21–32–64

Damaged .............................. 21–23–48 Controlling Operations ........... 21–32–65
79
Yard and Terminal Clerical .... 21–32–66 Administration—General .............. 21–35–01
Locomotive Fuel ..................... 21–32–67 Operations:
Electric Power Purchased/Pro- Clerks, Accounting Employees 21–35–76
duced for Motive Power ....... 21–32–68 Communication Systems Op-
Servicing Locomotives ........... 21–32–69 erations ................................ 21–35–77
Other—Other ................................. 21–32–99 Loss and Damage Claims Proc-
essing ................................... 21–35–78
Materials, Tools, Supplies, Fuels, Lubri- Other—Other ................................. 21–35–99
cants—Transportation—Train and
Yard Common—21–33–XX Materials, Tools, Supplies, Fuels, Lubri-
cants—General and Administra-
This account includes the cost of items in- tive—21–61–XX
stalled or commodities consumed which are This account includes the cost of items in-
charged to expense, where such items are stalled or commodities consumed which are
consumed on behalf of both train and yard charged to expense, where such items are
operations. This account includes charges to consumed in providing overall administra-
expense for all materials, small tools, sup- tion or other general support for carrier op-
plies, fuels, lubricants, supplies, and similar erations. For further clarification refer to
items. Its components shall be distributed to the definition of the General and Adminis-
the following functions in accordance with trative Activity. This account shall be sub-
Instruction 1–18: divided by the following functions:
Operations: Administration—General .............. 21–61–01
Cleaning Car Interiors ........ 21–33–70 General:
Adjusting, Transferring *21–33–71 Accounting, Auditing, Finance 21–61–86
Loads. Management Services and
Car Loading Devices and *21–33–72 Data and Word Processing ... 21–61–87
Grain Doors. Marketing ............................... 21–61–88
Sales ....................................... 21–61–89
Materials, Tools, Supplies, Fuels, Lubri- Industrial Development .......... *21–61–90
cants—Transportation—Specialized Legal and Secretarial ............. 21–61–92
Public Relations and Adver-
Services—21–34–XX*
tising ................................... 21–61–93
Research and Development ..... 21–61–94
Other—Other ........................... 21–61–99
consumed in operating services which are
Purchased Services
specialized in nature and in cost characteris-
tics. The specialized services designated by
Control—30–00–00
the Board appear within the explanation of This account may be used as a con-
specialized services. This account shall be trol account for all accounts in the
subdivided by the following functions: PURCHASED SERVICES series:
Operations: Lease Rentals—Dr.
Pick Up and Delivery, Marine Lease Rentals—Cr.
Line Haul, and Rail Sub- Joint Facility Rent—Dr.
stitute Service ..................... 21–34–73 Joint Facility Rent—Cr.
Loading, Unloading, and Local Other Rents—Dr.
Marine ................................. 21–34–74 Other Rents—Cr.
Protective Services ................. 21–34–75 Joint Facility—Dr.
Other—Other ................................. 21–34–99 Joint Facility—Cr.
Repairs Billed by Others—Dr.
Materials, Tools, Supplies, Fuels, Lubri- Repairs Billed to Others—Cr.
Other Purchased Services
cants—Transportation—Administra-
tive Support—21–35–XX Lease Rentals—Debit—Control—31–00–
00
stalled or commodities consumed which are This account series includes the rent-
charged to expense, where such items are als of road property and equipment
consumed in association with providing di- with terms of 30 days or more. This ac-
rect administrative support for the Trans- count excludes joint facility and joint
portation Activity. For further clarification
trackage rents, insurance and mainte-
refer to the explanation of the Administra-
tive Support Operations Subactivity. This nance elements of lease payments, and
account shall be subdivided by the following all elements of capital leases as defined
functions: in FASB Statement No. 13. Capitalized
80
leases shall be included in the applica- property jointly used shall be charged
ble property account for the particular to this account.
asset leased [See Instruction 2–11b]. The cost of maintenance, operation,
The components of this natural ex- or administration of joint facilities,
pense will be distributed to the fol- chargeable to the accounting company,
lowing accounts in accordance with In- shall be charged to the various joint fa-
struction 1–18: cility accounts (37–XX–00). When the
Lease Rentals—Dr.—Way and compensation for the use of joint fa-
Structures—Running ................. 31–11–00 cilities is a fixed amount or is based
Lease Rentals—Dr.—Way and upon a charge per passenger, ton, car,
Structures—Switching .............. 31–12–00 or other unit, it shall be fairly appor-
Lease Rentals—Dr.—Way and tioned between this account and Joint
Structures—Other ...................... 31–13–00
Lease Rentals—Dr.—Equipment— Facility—Dr. (37–XX–00). This appor-
Locomotives .............................. 31–21–00 tionment shall be made by the oper-
Lease Rentals—Dr.—Equipment— ating company and shall be followed by
Freight Cars ............................... *31–22–00 the accounting company.
Lease Rentals—Dr.—Equipment— The components of this natural ex-
Other Equipment ....................... 31–23–00 pense consist of the following accounts:
Joint Facility Rents—Dr.—Way
Lease Rentals—Credit—Control—32–00–
and Structures—Running .......... 33–11–00
00 Joint Facility Rents—Dr.—Way
This account group includes the rent- and Structures—Switching ........ 33–12–00
als of owned property and equipment or Joint Facility Rents—Dr.—Way
subleases of leased road property and and Structures—Other ............... 33–13–00
Joint Facility Rents—Dr. Equip-
equipment with terms of from 30 days
ment—Locomotives ................... *33–21–00
to one year. Longer term leases are in- Joint Facility Rents—Dr. Equip-
dicative of a noncarrier operation and ment—Freight Cars ................... *33–22–00
all revenues and expenses related to Joint Facility Rents—Dr. Equip-
such property and equipment should be ment—Other Equipment ............ 33–23–00
classified accordingly and excluded
from railroad operations. This account Joint Facility Rents—Credit—Control—
excludes joint facilities and joint 34–00–00
trackage, capital leases, and portions This account series includes amounts
of lease receipts covering maintenance receivable accrued for rent of equip-
and insurance. The components of this ment, tracks, yards, terminals and
natural expense account will be distrib- other facilities owned or controlled by
uted to the following accounts in ac- the accounting company and used
cordance with Instruction 1–18: jointly with other companies or indi-
Lease Rentals—Cr.—Way and viduals. Amounts receivable from other
Structures—Running ................. 32–11–00 companies in reimbursement for taxes
Lease Rentals—Cr.—Way and on property jointly used shall be cred-
Structures—Switching ............... 32–12–00 ited to this account.
Lease Rentals—Cr.—Way and
The portion of the cost of mainte-
Lease Rentals—Cr.—Equipment— nance, operation, or administration of
Locomotives .............................. 32–21–00 joint facilities recoverable from others
Lease Rentals—Cr.—Equipment— shall be credited to the various joint
Freight Cars ............................... *32–22–00 facility accounts (38–XX–00). When the
compensation for the use of joint fa-
Joint Facility Rents—Debits—Control— cilities is a fixed amount or is based
33–00–00 upon a charge per passenger, ton, car,
This account group includes amounts or other unit, it shall be fairly appor-
payable accrued as rent for equipment, tioned by the creditor between this ac-
tracks, yards, terminals, and other fa- count and Joint Facility—Cr. (38–XX–
cilities owned or controlled by other 00).
carriers, companies, or individuals, and The components of this account se-
in the joint use of which the account- ries shall be distributed to the fol-
ing company participates. Amounts lowing accounts:
paid or payable by the accounting com- Joint Facility Rents—Cr.—Way

pany in reimbursement for taxes on and Structures—Running .......... 34–11–00
81
Joint Facility Rents—Cr.—Way Joint Facility—Debit—Control—37–00–

and Structures—Switching ........ 34–12–00 00
Joint Facility Rents—Cr.—Way This account includes joint trackage
and Structures—Other ............... 34–13–00
and joint facility costs, exclusive of
Joint Facility Rents—Cr.—Equip-
ment—Locomotives ................... *34–21–00
rents, payable by the railroad to oth-
Joint Facility Rents—Cr.—Equip- ers. The components of this account
ment—Freight Cars ................... *34–22–00 will be distributed to the following ac-
Joint Facility Rents—Cr.—Equip- counts in accordance with Instruction
ment—Other Equipment ............ 34–23–00 1–18:
Joint Facility—Dr.—Way and
Other Rents—Debit—Control—35–00–00 Structures—Running ................. 37–11–00
Joint Facility—Dr.—Way and
This account group includes the Structures—Switching ............... 37–12–00
rents with terms of less than 30 days Joint Facility—Dr.—Way and
which are not renewed. This account Structures—Other ...................... 37–13–00
includes all time and mileage pay- Joint Facility—Dr.—Equipment—
ments for interchange locomotive, Locomotives .............................. 37–21–00
Joint Facility—Dr.—Equipment—
freight car, and other revenue equip-
Freight Cars ............................... *37–22–00
ment hire. The components of this ac- Joint Facility—Dr.—Equipment—
count will be distributed to the fol- Other Equipment ....................... 37–23–00
lowing accounts in accordance with In- Joint Facility—Dr.—Transpor-
struction 1–18: tation—Train ............................. 37–31–00
Joint Facility—Dr.—Transpor-
Other Rents—Dr.—Way and Struc-
tation—Yard .............................. 37–32–00
tures—Running .......................... 35–11–00
Joint Facility—Dr.—Transpor-
Other Rents—Dr.—Way and Struc- tation—Specialized Services ...... *37–34–00
tures—Switching ....................... 35–12–00 Joint Facility—Dr.—Transpor-
Other Rents—Dr.—Way and Struc- tation—Administrative Support 37–35–00
tures—Other .............................. 35–13–00 Joint Facility—Dr.—General and
Other Rents—Dr.—Equipment— Administrative .......................... 37–61–00
Locomotives .............................. 35–21–00
Other Rents—Dr.—Equipment— Joint Facility—Credit—Control—38–00–
Freight Cars ............................... *35–22–00 00
Other Rents—Dr.—Equipment—
Other Equipment ....................... 35–23–00 This account group includes joint
trackage and joint facility costs, exclu-
Other Rents—Credit—Control—36–00– sive of rents, payable by others to the
00 railroad. The components of this ac-
count will be distributed to the fol-
This account includes rents with lowing accounts in accordance with In-
terms of less than 30 days which are struction 1–18:
not renewed. This account includes all Joint Facility—Cr.—Way and
time and mileage receipts for inter- Structures—Running ................. 38–11–00
changed locomotive, freight car, and Joint Facility—Cr.—Way and
other revenue equipment hire. The Structures—Switching .............. 38–12–00
components of this account will be dis- Joint Facility—Cr.—Way and
tributed to the following accounts in
Joint Facility—Cr.—Equipment—
accordance with Instruction 1–18: Locomotives .............................. 38–21–00
Other Rents—Cr.—Way and Struc- Joint Facility—Cr.—Equipment—
tures—Running .......................... 36–11–00 Freight Cars ............................... *38–22–00
Other Rents—Cr.—Way and Struc- Joint Facility—Cr.—Equipment—
tures—Switching ....................... 36–12–00 Other Equipment ....................... 38–23–00
Other Rents—Cr.—Way and Struc- Joint Facility—Cr.—Transpor-
tures—Other .............................. 36–13–00 tation—Train ............................. 38–31–00
Other Rents—Cr.—Equipment— Joint Facility—Cr.—Transpor-
Locomotives .............................. 36–21–00 tation—Yard .............................. 38–32–00
Other Rents—Cr.—Equipment— Joint Facility—Cr.—Transpor-
Freight Cars ............................... *36–22–00 tation—Specialized Services ...... *38–34–00
Joint Facility—Cr.—Transpor-
Other Rents—Cr.—Equipment—
tation—Administrative Support 38–35–00
Other Equipment ....................... 36–23–00
Joint Facility—Cr.—General and

Administrative .......................... 38–61–00
82
Repairs Billed by Others—Debit—Con- roadway and track. This account shall be

trol—39–00–00 subdivided by the following functions:
This account group includes amounts Communication Systems ........ 39–13–20
payable by the railroad to others for Power Systems ....................... 39–13–21
repair and maintenance of the report- Station and Office Buildings ... 39–13–23
ing railroad’s property and equipment. Shop Buildings—Locomotives 39–13–24
The components of this account shall Shop Buildings—Freight Cars *39–13–25
be distributed to the following ac- Shop Buildings—Other Equip-
counts in accordance with Instruction ment .................................... 39–13–26
Locomotive Servicing Facili-
1–18: ties ....................................... 39–13–27
Miscellaneous Buildings and
Repairs Billed by Others—Dr.—Way Structures ............................ 39–13–28
and Structures—Running—39–11– Coal Terminals ....................... *39–13–29
XX Ore Terminals ......................... *39–13–30
This account includes amounts payable by TOFC/COFC Terminals ........... *39–13–31
the railroad to others for repair and mainte-
nance of the reporting railroad’s property as-
sociated with the carrier’s roadway and
track on the line of road and outside of clas-
ized Services Operations ...... *39–13–35
sification yards. This account shall be sub-
Roadway Machines ................. 39–13–36
divided by the following functions:
Snow Removal ........................ 39–13–38
Repair and Maintenance: Road Property and Equipment
Roadway ................................. 39–11–10 Damaged .............................. 39–13–48
Tunnels and Subways ............. 39–11–11
Bridges and Culverts ............... 39–11–12 Repairs Billed by Others—Dr.—Equip-
Ties ......................................... 39–11–13 ment—Locomotives—39–21–XX
Rails and Other Track Mate-
rial ....................................... 39–11–14 This account includes amounts payable by
Ballast .................................... 39–11–16 the railroad to others for repair and mainte-
Signals and Interlockers ......... 39–11–19 nance under the Locomotive subactivity.
Highway Grade Crossings ....... 39–11–22 This account shall be subdivided by the fol-
Road Property and Equipment lowing functions:
Damaged .............................. 39–11–48 Repair and Maintenance:
Locomotives ........................... 39–21–41
Repairs Billed by Others—Dr.—Way Road Property and Equipment
and Structures—Switching—39–12– Damaged .............................. 39–21–48
XX
Repairs Billed by Others—Dr.—Equip-
This account includes amounts payable by ment—Freight Cars—39–22–XX*
the railroad to others for repair and mainte-
nance of the reporting railroad’s property as- This account includes amounts payable by
sociated with the carrier’s roadway and the railroad to others for repair and mainte-
track within classification yards and sta- nance under the Freight Car subactivity.
tions. This account shall be subdivided by This account shall be subdivided by the fol-
the following functions: lowing functions:
Repair and Maintenance: Repair and Maintenance:
Roadway ................................. 39–12–10 Freight Cars ............................ 39–22–42
Tunnels and Subways ............. 39–12–11 Road Property and Equipment
Bridges and Culverts ............... 39–12–12 Damaged .............................. 39–22–48
Ties ......................................... 39–12–13
Rails and Other Track Mate- Repairs Billed by Others—Dr.—Equip-
rial ....................................... 39–12–14 ment Other Equipment—39–23–XX
Ballast .................................... 39–12–16 This account includes amounts payable by
Signals and Interlockers ......... 39–12–19 the railroad to others for the repair and
Highway Grade Crossings ....... 39–12–22 maintenance of equipment not pertaining to
Road Property and Equipment the Locomotive or Freight Car subactivity.
Damaged .............................. 39–12–48 This account shall be subdivided by the fol-
lowing functions:
Repairs Billed by Others—Dr.—Way
and Structures—Other—39–13–XX
Trucks, Trailers, and Con-
This account includes amounts payable by tainers in Revenue Service .. *39–23–43
the railroad to others for repair and mainte- Floating Equipment—Revenue

nance of the carrier’s structures other than Service ................................. *39–23–44
83
Passenger and Other Revenue Repairs Billed to Others—Cr.—Way and
Equipment ........................... 39–23–45 Structures—Other—40–13–XX
Computer Systems and Word
Processing Equipment ......... 39–23–46 This account includes amounts payable by
Work and Other Non-Revenue others to the railroad for repair and mainte-
Equipment ........................... 39–23–47 nance of other railroads’ structures other
Road Property and Equipment than roadway and track. This account shall
Damaged .............................. 39–23–48 be subdivided by the following functions:
Shop Machinery—Locomotives 39–23–49 Repair and Maintenance:
Shop Machinery—Freight Cars *39–23–50 Communication Systems ........ 40–13–20
Shop Machinery—Other Power Systems ....................... 40–13–21
Equipment ........................... 39–23–51 Station and Office Buildings ... 40–13–23
Shop Buildings Locomotives .. 40–13–24
Repairs Billed to Others—Cr.—Control Shop Buildings—Freight Cars *40–13–25
40–00–00 Shop Buildings—Other Equip-
ment .................................... 40–13–26
This account series includes amounts Locomotive Servicing Facili-
payable by others to the railroad for ties ....................................... 40–13–27
repair and maintenance of others’ road Miscellaneous Buildings and
property and equipment. The compo- Structures ............................ 40–13–28
nents of this account shall be distrib- Coal Terminals ....................... *40–13–29
uted to the following accounts in ac- Ore Terminals ......................... *40–13–30
cordance with Instruction 1–18: TOFC/COFC Terminals ........... *40–13–31
Repairs Billed to Others—Cr.—Way and Motor Vehicle Loading and
Structures—Running—40–11–XX Distribution Facilities ......... *40–13–33
This account includes amounts payable by ized Services Operations ...... *40–13–35
others to the railroad for repair and mainte- Roadway Machines ................. 40–13–36
nance of other railroads’ roadway and track Snow Removal ........................ 40–13–38
on the line of road and outside of classifica- Road Property and Equipment
tion yards. This account shall be subdivided Damaged .............................. 40–13–48
by the following functions:
Repair and Maintenance: Repairs Billed to Others—Cr.—Equip-
Roadway ................................. 40–11–10 ment Locomotives—40–21–XX
Bridges and Culverts ............... 40–11–12 This account includes amounts payable by
Ties ......................................... 40–11–13 others to the railroad for repair and mainte-
Rails and Other Track Mate- nance of other railroads’ locomotives. This
rial ....................................... 40–11–14 account shall be subdivided by the following
Ballast .................................... 40–11–16 functions:
Signals and Interlockers ......... 40–11–19 Repair and Maintenance:
Highway Grade Crossings ....... 40–11–22 Locomotives ........................... 40–21–41
Road Property and Equipment Road Property and Equipment
Damaged .............................. 40–11–48 Damaged .............................. 40–21–48
Repairs Billed to Others—Cr.—Way and Repairs Billed to Others—Cr.—Equip-

Structures Switching—40–12–XX ment—Freight Cars—40–22–XX*
This account includes amounts payable by This account includes amounts payable by
others to the railroad for repair and mainte- others to the railroad for repair and mainte-
nance of other railroads’ roadway and track nance of other railroads’ freight cars. This
within classification yards and stations. This account shall be subdivided by the following
account shall be subdivided by the following functions:
functions: Repair and Maintenance:
Repair and Maintenance: Freight Cars ............................ 40–22–42
Roadway ................................. 40–12–10 Road Property and Equipment
Tunnels and Subways ............. 40–12–11 Damaged .............................. 40–22–48
Ties ......................................... 40–12–13 Repairs Billed to Others—Cr.—Equip-
Rails and Other Track Mate- ment—Other Equipment—40–23–XX
rial ....................................... 40–12–14
Ballast .................................... 40–12–16 This account includes amounts payable by
Signals and Interlockers ......... 40–12–19 others to the railroad for repair and mainte-
Highway Grade Crossings ....... 40–12–22 nance of other railroads’ other equipment.
Road Property and Equipment Each account shall be subdivided by the fol-
Damaged .............................. 40–12–48 lowing functions:
84
Repair and Maintenance: Repair and Maintenance:

Trucks, Trailers, and Con- Roadway ................................. 41–12–10
tainers in Revenue Service .. *40–23–43 Tunnels and Subways ............. 41–12–11
Floating Equipment—Revenue Bridges and Culverts ............... 41–12–12
Service ................................. *40–23–44 Ties ......................................... 41–12–13
Passenger and Other Revenue Rails and Other Track Mate-
Equipment ........................... 40–23–45 rial ....................................... 41–12–14
Computer Systems and Word Ballast .................................... 41–12–16
Processing Equipment ......... 40–23–46 Signals and Interlockers ......... 41–12–19
Road Property and Equipment Highway Grade Crossings ....... 41–12–22
Damaged .............................. 40–23–48 Dismantling Retired Property 41–12–39
Shop Machinery—Locomotives 40–23–49 Road Property and Equipment
Shop Machinery—Freight Cars *40–23–50 Damaged .............................. 41–12–48
Shop Machinery—Other Other—Other ................................. 41–12–99
Equipment ........................... 40–23–51
Other Purchased Services—Way and
Other Purchased Services—Control— Structures—Other—41–13–XX
41–00–00 This account includes amounts charged or
credited to operating expenses for other pur-
This account group includes amounts
chased services specified in control account
charged or credited to operating ex- 41–00–00. This account shall be subdivided by
penses for purchased advertising; pur- the following functions:
chased printing; outside professional Administration:
services such as legal, accounting, Track ...................................... 41–13–02
audit, engineering, and consulting; Bridges and Buildings ............. 41–13–03
payments for detour of trains; utilities, Signals .................................... 41–13–04
telephone, postage, subscriptions, com- Communications ..................... 41–13–05
munications, purchased electric power Other ....................................... 41–13–06
for train and locomotive propulsion;
Communication Systems ........ 41–13–20
and other services purchased. The com- Power Systems ....................... 41–13–21
ponents of this account group shall be Station and Office Buildings ... 41–13–23
distributed to the following accounts Shop Buildings—Locomotives 41–13–24
in accordance with Instruction 1–18: Shop Buildings—Freight Cars *41–13–25
Shop Buildings—Other Equip-
Other Purchased Services—Way and ment .................................... 41–13–26
Structures—Running—41–11–XX Locomotive Servicing Facili-
ties ....................................... 41–13–27
This account includes amounts charged or Miscellaneous Buildings and
credited to operating expenses for other pur- Structures ............................ 41–13–28
chased services specified in control account Coal Terminals ....................... *41–13–29
41–00–00. This account shall be subdivided by Ore Terminals ......................... *41–13–30
the following functions: TOFC/COFC Terminals ........... *41–13–31
Repair and Maintenance: Other Marine Terminals ......... *41–13–32
Roadway ................................. 41–11–10 Motor Vehicle Loading and
Tunnels and Subways ............. 41–11–11 Distribution Facilities ......... *41–13–33
Bridges and Culverts ............... 41–11–12 Facilities for Other Special-
Ties ......................................... 41–11–13 ized Services Operations ...... *41–13–35
Rails and Other Track Mate- Roadway Machines ................. 41–13–36
rial ....................................... 41–11–14 Snow Removal ........................ 41–13–38
Ballast .................................... 41–11–16 Dismantling Retired Property 41–13–39
Signals and Interlockers ......... 41–11–19 Road Property and Equipment
Highway Grade Crossings ....... 41–11–22 Damaged .............................. 41–13–48
Dismantling Retired Property 41–11–39 Other—Other ................................. 41–13–99
Damaged .............................. 41–11–48 Other Purchased Services—Equip-
Other—Other ................................. 41–11–99 ment—Locomotives—41–21–XX
This account includes amounts charged or
Other Purchased Services—Way and credited to operating expenses for other pur-
Structures—Switching—41–12–XX chased services specified in control account
This account includes amounts charged or 41–00–00. This account shall be subdivided by
credited to operating expenses for other pur- the following functions:
chased services specified in control account Administrative—General .............. 41–21–01
41–00–00. This account shall be subdivided by Repair and Maintenance:

the following functions: Dismantling Retired Property 41–21–39
85
Locomotives ........................... 41–21–41 Highway Crossing Protection 41–31–61
Road Property and Equipment Train Inspection and Lubrica-
Damaged .............................. 41–21–48 tion ...................................... 41–31–62
Other—Other ................................. 41–21–99 Clearing Wrecks ...................... 41–31–63
Locomotive Fuel ..................... 41–31–67
Other Purchased Services—Equip- Electric Power Purchased/Pro-
ment—Freight Cars—41–22–XX* duced for Motive Power ....... 41–31–68
This account includes amounts charged or Servicing Locomotives ........... 41–31–69
credited to operating expenses for other pur- Other—Other ................................. 41–31–99
41–00–00. This account shall be subdivided by Other Purchased Services—Transpor-
the following functions: tation—Yard—41–32–XX
Administrative—General .............. 41–22–01 This account includes amounts charged or
Repair and Maintenance: credited to operating expenses for other pur-
Dismantling Retired Property 41–22–39 chased services specified in control account
Freight Cars ............................ 41–22–42 41–00–00. This account shall be subdivided by
Road Property and Equipment the following functions:
Damaged .............................. 41–22–48 Administration—General .............. 41–32–01
Other—Other ................................. 41–22–99 Operations:
Other Purchased Services—Equip- Interlockers, Retarders,
ment—Other Equipment—41–23–XX Humps .................................. 41–32–59
This account includes amounts charged or Clearing Wrecks ...................... 41–32–63
credited to operating expenses for other pur- Switch Crews .......................... 41–32–64
chased services specified in control account Controlling Operations ........... 41–32–65
41–00–00. This account shall be subdivided by Yard and Terminal Clerical .... 41–32–66
the following functions: Locomotive Fuel ..................... 41–32–67
Electric Power Purchased/Pro-
Administrative—General .............. 41–23–01
Repair and Maintenance: duced for Motive Power ....... 41–32–68
Dismantling Retired Property 41–23–39 Servicing Locomotives ........... 41–32–69
Trucks, Trailers, Containers Other—Other ................................. 41–32–99
in Revenue Service .............. 41–23–43
Floating Equipment—Revenue Other Purchased Services—Transpor-
Service ................................. *41–23–44 tation—Train and Yard Common—
Passenger and Other Revenue 41–33–XX
Equipment ........................... 41–23–45 This account includes amounts charged or
Computer Systems and Word credited to operating expenses for other pur-
Processing Equipment ......... 41–23–46 chased services specified in control account
Work and Other Non-Revenue
41–00–00. This account shall be subdivided by
Equipment ........................... 41–23–47
the following functions:
Damaged .............................. 41–23–48 Operations:
Shop Machinery—Locomotives 41–23–49 Cleaning Car Interiors ............ 41–33–70
Shop Machinery—Freight Cars *41–23–50 Adjusting, Transferring Loads 41–33–71
Shop Machinery—Other Car Loading Devices and
Equipment ........................... 41–23–51 Grain Doors ......................... 41–33–72
Other—Other ................................. 41–23–99
Other Purchased Services—Transpor-
Other Purchased Services—Transpor- tation—Specialized Services—41–
tation—Train—41–31–XX 34–XX
This account includes amounts charged or This account includes amounts charged or
credited to operating expenses for other pur- credited to operating expenses for other pur-
chased services specified in control account chased services specified in control account
41–00–00. This account shall be subdivided by 41–00–00. This account shall be subdivided by
the following functions: the following functions:
Administration—General .............. 41–31–01 Administration—General .............. 41–34–73
Operations: Operations:
Engine Crews .......................... 41–31–56 Pick Up and Delivery, Marine
Train Crews ............................ 41–31–57 Line Haul, and Rail Sub-
Dispatching Trains ................. 41–31–58 stitute Service ..................... 41–34–73
Operating Switches, Signals, Loading, Unloading, and Local
Interlockers, Retarders, Marine ................................. 41–34–74
Humps .................................. 41–31–59 Protective Services ................. 41–34–75

Operating Drawbridges ........... 41–31–60 Other—Other ................................. 41–34–99
86
Other Purchased Services—Transpor- damage claim shall be charged to the

tation—Administrative Support— Train and Yard Subactivity. This ac-
41–35–XX count series excludes amounts payable
This account includes amounts charged or to employees or other parties for inju-
credited to operating expenses for other pur- ries sustained or loss of life; for dam-
chased services specified in control account age to real property of others or per-
41–00–00. This account shall be subdivided by sonal property not carried in revenue
the following functions: services; all payments for other dam-
Administration—General .............. 41–35–01 ages of any kind; and related insurance
Operations: premiums. These costs are appro-
Clerks, Accounting Employees 41–35–76 priately charged to the following ac-
Communication Systems Op- counts:
erations ................................ 41–35–77
Loss and Damage Claims Proc- Loss and Damage Claims—Trans-
essing ................................... 41–35–78 portation—Train ........................ 51–31–00
Other—Other ................................. 41–35–99 Loss and Damage Claims—Trans-
portation—Yard ......................... 51–32–00
Other Purchased Services—General Loss and Damage Claims—Trans-
and Administrative—41–61–XX portation—Train and Yard Com-
mon ............................................ 51–33–00
This account includes amounts charged or Loss and Damage Claims—Trans-
credited to operating expenses for other pur- portation—Specialized Services *51–34–00
Other Casualties—Control—52–00–00
Administration—General .............. 41–61–01 This account includes amounts pay-
General: able to employees or other parties for
Accounting, Auditing, Finance 41–61–86 injuries sustained or loss of life in con-
Management Services and nection with the construction, mainte-
Data and Word Processing ... 41–61–87 nance, operations, and administration
Marketing ............................... 41–61–88
of railroad property and equipment; for
Sales ....................................... 41–61–89
Industrial Development .......... *41–61–90 damage to real property, property of
Personnel and Labor Relations 41–61–91 others or personal property not carried
Legal and Secretarial ............. 41–61–92 in revenue service; all payments for
Public Relations and Adver- other damages of any kind. This ac-
tising ................................... 41–61–93 count excludes freight and other goods
Research and Development ..... 41–61–94 carried in a revenue service, and insur-
Other—Other ................................. 41–61–99
ance premiums related to the casual-
ties chargeable to this account.
Claims and Insurance NOTE: The costs of clearing wrecks and re-
pairing casualty-caused damage to the rail-
Control—50–00–00 road’s property and equipment are properly
classified under other natural expense ac-
This account may be used as a con-
counts as appropriate and further classified
trol account for all accounts in the by relevant activities and functions. These
CLAIMS AND INSURANCE series: Loss and costs are appropriately charged to the fol-
Damage Claims, Other Casualties, In- lowing accounts:
surance. Other Casualties—Way and Struc-
tures—Running .......................... 52–11–00
Loss and Damage Claims—Control—51– Other Casualties—Way and Struc-
00–00 tures—Switching ....................... 52–12–00
This account series includes amounts Other Casualties—Way and Struc-
payable to compensate for the loss or tures—Other .............................. 52–13–00
damage of freight or other goods car- Other Casualties—Equipment—
ried in revenue service. Loss and dam- Locomotives .............................. 52–21–00
Other Casualties—Equipment—
age claims should not be allocated.
Freight Cars ............................... *52–22–00
When specific identification of loss and
Other Casualties—Equipment—
damage claims is possible, the related Other Equipment ....................... 52–34–00
expenses shall be directly assigned to Other Casualties—Transpor-
the Train, Yard, or Specialized service tation—Train ............................. 52–31–00
Subactivity. If a solely related deter- Other Casualties—Transpor-

mination cannot be made the loss and tation—Yard .............................. 52–32–00
87
Other Casualties—Transpor- associated with the carrier’s roadway and
tation—Specialized Services ...... *52–34–00 track on the line of road and outside of clas-
Other Casualties—Transpor- sification yards. Each account shall be sub-
tation—Administrative Support 52–35–00 divided by the following functions:
Other Casualties—General and Ad- Repair Maintenance:
ministrative ............................... 52–61–00 Roadway ................................. 61–11–10
Insurance—Control—53–00–00 Bridges and Culverts ............... 61–11–12
This account series include premiums Ties ......................................... 61–11–13
Rails and Other Track Mate-
for insurance to cover property and rial ....................................... 61–11–14
equipment loss and damage, liability, Ballast .................................... 61–11–16
business interruption, and the like. Signals and Interlockers ......... 61–11–19
These costs are appropriately charged Highway Grade Crossings ....... 61–11–22
to the following accounts: Dismantling Retired Property 61–11–39
Insurance—Way and Structures— Road Property and Equipment
Running ..................................... 53–11–00 Damaged .............................. 61–11–48
Insurance—Way and Structures— Other—Other ................................. 61–11–99
Switching ................................... 53–12–00
Insurance—Way and Structures— Other Expenses—Way and Structures—
Other .......................................... 53–13–00 Switching—61–12–XX
Insurance—Equipment—Loco- Each account includes amount charged to
motives ...................................... 53–21–00 operating expenses for items not otherwise
Insurance—Equipment—Freight provided for in the other natural expense ac-
Cars ............................................ *53–22–00 counts, including travel and other expenses
Insurance—Equipment—Other of employees, road property retirement
Equipment ................................. 53–23–00 losses, and other items of a general nature
Insurance—Transportation—Train 53–31–00 associated with the carrier’s roadway and
Insurance—Transportation—Yard 53–32–00 track within classification yards and sta-
Insurance—Transportation—Spe- tions. Each account shall be subdivided by
cialized Services ........................ *53–34–00 the following functions:
Insurance—Transportation—Ad-
ministrative Support ................. 53–35–00 Repair and Maintenance:
Insurance—General and Adminis- Roadway ................................. 61–12–10
trative ........................................ 53–61–00 Tunnels and Subways ............. 61–12–11
Ties ......................................... 61–12–13
General Rails and Other Track Mate-
rial ....................................... 61–12–14
Control—60–00–00 Ballast .................................... 61–12–16
Signals and Interlockers ......... 61–12–19
This account may be used as a con- Highway Grade Crossings ....... 61–12–22
trol account for all accounts in the Dismantling Retired Property 61–12–39
GENERAL series: Other Expenses, Depre- Road Property and Equipment
ciation, Uncollectible Accounts, Prop- Damaged .............................. 61–12–48
erty Taxes, Other Taxes. Other—Other ................................. 61–12–99
Other Expenses—Control—61–00–00 Other Expenses—Way and Structures—

Other—61–13–XX
This account series includes amounts
charged to operating expenses for This account includes amounts
items not otherwise provided for in the charged to operating expenses for
other natural expense accounts, includ- items not otherwise provided for in the
ing travel and other expenses of em- other natural expense accounts, includ-
ployees, road property and equipment ing travel and other expenses of em-
retirement losses, and other items of a ployees, road property retirement
general nature. losses, and other items of a general na-
ture associated with the carrier’s
Other Expenses—Way and Structures— structures other than roadway and
Running—61–11–XX track. This account shall be subdivided
Each account includes amounts charged to by the following functions:
operating expenses for items not otherwise Administration:
provided for in the other natural expense ac- Track ...................................... 61–13–02
counts, including travel and other expenses Bridges and Buildings ............. 61–13–03
of employees, road property retirement Signals .................................... 61–13–04

losses, and other items of a general nature Communications ..................... 61–13–05
88
Other ....................................... 61–13–06 Other Expenses—Equipment—Other
Repair and Maintenance: Equipment—61–23–XX
Communication Systems ........ 61–13–20
Power Systems ....................... 61–13–21 This account includes amounts charged to
Station and Office Buildings ... 61–13–23 operating expenses for items not otherwise
Shop Buildings—Locomotives 61–13–24 provided for in the other natural expense ac-
Shop Buildings—Freight Cars *61–13–25 counts, including travel and other expenses
Shop Buildings—Other Equip- of employees, equipment retirement losses,
ment .................................... 61–13–26 associated with the repair and maintenance
Locomotive Servicing Facili- of equipment other than locomotives and
ties ....................................... 61–13–27 freight cars, whether owned by the carrier or
Miscellaneous Buildings and by others. This account shall be subdivided
Structures ............................ 61–13–28 by the following functions:
Coal Terminals ....................... *61–13–29 Administration—General .............. 61–23–01
Ore Terminals ......................... *61–13–30 Repair and Maintenance:
TOFC/COFC Terminals ........... *61–13–31 Dismantling Retired Property 61–23–39
Trucks, Trailers, Containers
in Revenue Service .............. *61–23–43
Facilities for Other Special- Floating Equipment—Revenue
ized Services Operations ...... *61–13–35 Service ................................. *61–23–44
Roadway Machines ................. 61–13–36 Passenger and Other Revenue
Snow Removal ........................ 61–13–38 Equipment ........................... 61–23–45
Dismantling Retired Property 61–13–39 Computer Systems and Word
Road Property and Equipment Processing Equipment ......... 61–23–46
Damaged .............................. 61–13–48 Work and Other Non-Revenue
Other—Other ................................. 61–13–99 Equipment ........................... 61–23–47
Other Expenses—Equipment—Loco- Damaged .............................. 61–23–48
motives 61–21–XX Shop Machinery—Locomotives 61–23–49
This account includes amounts charged to Shop Machinery—Freight Cars *61–23–50
operating expenses for items not otherwise Shop Machinery—Other
provided for in the other natural expense ac- Equipment ........................... 61–23–51
counts, including travel and other expenses Other—Other ................................. 61–23–99
of employees and equipment retirement
losses, associated with the repair and main- Other Expenses—Transportation—
tenance of locomotives, whether owned by Train—61–23–XX
the carrier or by others. This account shall
be subdivided by the following functions: This account includes amounts charged to
operating expenses for items not otherwise
Administration—General .............. 61–21–01 provided for in the other natural expense ac-
Repair and Maintenance: counts, including travel and other expenses
Dismantling Retired Property 61–21–39 of employees, associated with the dis-
Locomotives ........................... 61–21–41 patching and operations of freight-trains
Road Property and Equipment over the roadway and outside of classifica-
Damaged .............................. 61–21–48 tion yards. This account shall be subdivided
Other—Other ................................. 61–21–99 by the following functions:
Other Expenses—Equipment—Freight Administration—General .............. 61–31–01
Cars—61–22–XX* Operations:
Engine Crews .......................... 61–31–56
This account includes amounts charged to Train Crews ............................ 61–31–57
provided for in the other natural expense ac-
counts, including travel and other expenses
of employees, equipment retirement losses,
Humps .................................. 61–31–59
associated with the repair and maintenance
of freight cars, whether owned by the carrier Operating Drawbridges ........... 61–31–60
or by others. This account shall be sub- Highway Crossing Protection 61–31–61
divided by the following functions: Train Inspection and Lubrica-
tion ...................................... 61–31–62
Repair and Maintenance: Clearing Wrecks ...................... 61–31–63
Dismantling Retired Property 61–22–39 Locomotive Fuel ..................... 61–31–67
Freight Cars ............................ 61–22–42 Electric Power Purchased/Pro-
Road Property and Equipment duced for Motive Power ....... 61–31–68
Damaged .............................. 61–22–48 Servicing Locomotives ........... 61–31–69

Other—Other ................................. 61–22–99 Other—Other ................................. 61–31–99
89
Other Expenses—Transportation— Operations:

Yard—61–32–XX Clerks, Accounting Employees 61–35–76
Communication Systems Op-
This account includes amounts charged to erations ................................ 61–35–77
operating expenses for items not otherwise Loss and Damage Claims Proc-
provided for in the other natural expense ac- essing ................................... 61–35–78
counts, including travel and other expenses Other—Other ................................. 61–35–99
of employees, and other items of a general
nature associated with the movement of Other Expenses—General and Adminis-
freight cars within classification yards and trative—61–61–XX
in terminal switching and transfer service.
This account shall be subdivided by the fol- This account includes amounts charged to
lowing functions: operating expenses for items not otherwise
Administration—General .............. 61–32–01 provided for in the other natural expense ac-
Operations:
nature incurred in providing overall admin-
istration or other support for carrier oper-
Humps .................................. 61–32–59
ations. This account shall be subdivided by
Clearing Wrecks ...................... 61–32–63
Switch Crews .......................... 61–32–64
Controlling Operations ........... 61–32–65 Administration—General .............. 61–61–01
Yard and Terminal Clerical .... 61–32–66 General:
Locomotive Fuel ..................... 61–32–67 Accounting, Auditing, Finance 61–61–86
Electric Power Purchased/Pro- Management Services and
duced for Motive Power ....... 61–32–68 Data Processing ................... 61–61–87
Servicing Locomotives ........... 61–32–69 Marketing ............................... 61–61–88
Sales ....................................... 61–61–89
Other—Other ................................. 61–32–99
Industrial Development .......... *61–61–90
Personnel Labor Relations ..... 61–61–91
Other Expenses—Transportation—Spe- Legal and Secretarial ............. 61–61–92
cialized Services—61–34–XX* Public Relations and Adver-
This account includes amounts charged to tising ................................... 61–61–93
operating expenses for items not otherwise Research and Development ..... 61–61–94
provided for in the other natural expense ac- Other—Other ................................. 61–61–99
of employees, and other items of a general Depreciation—Control—62–00–00
nature incurred in operating services which This account group includes the
are specialized in nature and in cost charac- amounts charged to operating expenses
teristics. The specialized services designated
for depreciation of owned road property
by the Board appear within the explanation
of activities/ subactivities. This account and equipment, and the depreciation
shall be subdivided by the following func- element of road property held under
tions: capital lease in accordance with FASB
Administration—General .............. 61–34–01 Statement No. 13. These costs are ap-
Operations: propriately charged to the following
Pick Up and Delivery, Marine accounts:
Line Haul, and Rail Sub- Depreciation—Way and Struc-
stitute Service ..................... 61–34–73 tures—Running .......................... 62–11–00
Loading, Unloading, and Local Depreciation—Way and Struc-
Marine ................................. 61–34–74 tures—Switching ....................... 62–12–00
Protective Services ................. 61–34–75 Depreciation—Way and Struc-
Other—Other ................................. 61–34–99 tures—Other .............................. 62–13–00
Depreciation—Equipment—Loco-
Other Expenses—Transportation—Ad- motives ...................................... 62–21–00
ministrative Support—61–35–XX Depreciation—Equipment—
Freight Cars ............................... *62–22–00
This account includes amounts charged to Depreciation—Equipment—Other
operating expenses for items not otherwise Equipment ................................. 62–23–00
counts, including travel and other expenses Uncollectible Accounts—Control—63–
nature incurred in association with pro-
00–00
viding direct administrative support for the This account includes charges to op-
Transportation Activity. This account shall erating expenses for the writedown of
be subdivided by the following functions:
accounts and notes due to the railroad,

Administration—General .............. 61–35–01 whether classified as current or long-
90
term. This account includes any cred- described functions on property of the
its to allowance accounts for collect- type included in property accounts 2
ibility and total writeoff of receivables. through 45, excluding 44, whether such
This account does not include property is owned or leased. It includes
writedowns of property, equipment, or the costs of operating work trains in
investments (except accounts, notes, or support of this activity.
other receivables held as investments). This activity excludes all expenses
Proper adjustments of incorrect receiv- related to transportation and other
ables are not to be charged to this ac- equipment described in property ac-
count. Collections of amounts pre- counts 44, 46 and 52 through 58, all of
viously written off or down are to be which should be charged to the Equip-
credited to this account. The total of ment activity. It also excludes ex-
this account shall be charged to the penses in performance or support of
following account: Transportation, General and Adminis-
Uncollectible Accounts—General trative activities, property used for
and Administrative .................... 63–61–00 noncarrier operations, non-operating
property, and interest or other fixed
Property Taxes—Control—64–00–00 charges.
This account includes only taxes
based on the value of real estate and Running Subactivity—(XX–11–XX)
personal property used in railroad op- (1) Running subactivity of the Way
erations. The total of this account and Structures activity refers to the
shall be charged to the following ac- functions of repairing, maintaining,
count: leasing, renting, depreciating, and re-
Property Taxes—General and Ad- tiring right-of-way, trackage, signals
ministrative ............................... 64–61–00 and interlockers, and highway grade
crossings for running tracks, passing
Other Taxes—Control—65–00–00 tracks, crossovers, etc., including turn-
This account includes taxes on gross outs from those tracks, passing clear-
receipts, franchise fees, excise taxes, ance points. It includes all natural ex-
and similar items. This account expense object subclassifications under
cludes property taxes and taxes charge- the Way and Structures activity that
able as employee benefits. The total of are applicable to right-of-way and
this account shall be charged to the trackage as defined above. This sub-
following account: activity specifically excludes expenses
Other Taxes—General and Admin- incurred in operating signals and inter-
istrative ..................................... 65–61–00 lockers and highway grade crossings,
which are properly charged to the
OPERATING EXPENSE ACCOUNTS Transportation activity.
Section 2—Activity/Subactivity Switching Subactivity—(XX–12–XX)

Explanations (2) Switching subactivity of the Way
and Structures activity refers to the
Way and Structures Activity—(XX–10– function of repairing, maintaining,
XX) leasing, renting, depreciating, and re-
(A) Way and Structures activity refers tiring right-of-way, trackage, signals
to repairing, maintaining, leasing, and interlockers, and highway grade
renting, depreciating, and retiring crossings for yards where separate
right-of-way and trackage, structures, switching services are maintained, in-
buildings, and facilities. It includes all cluding classification, house, team, in-
natural expense object subclassifica- dustry, and other tracks switched by
tions such as salaries and wages, fringe yard locomotives, and for station,
benefits, material and supplies, lease team, industry, and other switching
rentals, purchased services, casualties, tracks for which no separate switching
depreciation and retirements, where service is maintained. It includes all
such objects are in the performance or natural expense object subclassifica-
support of the above functions. Specifi- tions under the Way and Structures ac-
cally included are all natural expense tivity that are applicable to right-of-
objects in the performance of the above way and trackage as defined above.
91
This subactivity specifically excludes Locomotives Subactivity—(XX–21–XX)

expenses incurred in operating signals (1) Locomotives subactivity of the
and interlockers, and highway grade Equipment activity refers to repairing,
crossings, which are properly charged maintaining, leasing, renting, depre-
to the Transportation activity. ciating, and retiring locomotives. It in-
cludes all natural expense object sub-
Other Subactivity—(XX–13–XX)
classifications under the Equipment
(3) Other subactivity of the Way and activity that are applicable to loco-
Structures activity refers to the func- motives. This subactivity specifically
tion of repairing, maintaining, leasing, excludes expenses incurred in oper-
renting, depreciating, and retiring ating locomotives, such as locomotive
other roadway property structures, fuel and lubricants, train crew wages,
buildings, and facilities not provided operating supplies, servicing (as op-
for in the Running and Switching sub- posed to maintaining or repairing), and
activities. It includes all natural ex- cleaning which are includable in the
pense object subclassifications under Transportation activity, except when
the Way and Structures activity that locomotive use is clearly in support of
are applicable to the structures, build- other activities or subactivities. When
ings, and facilities as defined above. locomotives are operated in support of
The specifically excludes expenses in- repairing or maintaining locomotives,
curred in operating such structures, the operating costs shall be charged to
buildings, and facilities, which are this subactivity.
properly charged to the Equipment,
Transportation, and General and Ad- Freight Train Cars Subactivity—(XX–
ministrative activities. 22–XX)
(2) Freight Train Cars subactivity of
Equipment Activity—(XX–20–XX)
the Equipment activity refers to re-
(B) Equipment activity refers to repairing, maintaining, leasing, renting,
pairing, maintaining, leasing, renting, depreciating, and retiring freight train
depreciating, and retiring transpor- cars. It includes all natural expense ob-
tation and other operating equipment. ject subclassifications under the Equip-
It includes all natural expense object ment activity that are applicable to
subclassifications such as salaries and freight train cars. This subactivity per-
wages, fringe benefits, material and tains to all freight train cars described
supplies, lease rentals, purchased serv- in property account 53, whether owned
ices, casualties, depreciation, and re- or leased, including freight cars used
tirements. Specifically included are all for hauling freight in company service
natural expense objects in the perform- and cabooses. It does not pertain to
ance of the above functions on property work equipment. This subactivity spe-
of the type included in property ac- cifically excludes expenses incurred in
counts 44, 46 and 52 through 58, whether running trains or operating freight
such property is owned or leased. The cars, such as for locomotive fuel and
costs of operating work trains in sup- lubricants, train crew wages, inspect-
port of the Equipment activity are to ing trains, operating supplies, servicing
be included herein. (as opposed to maintaining or repair-
This activity excludes all expenses ing), and cleaning, which are includ-
related to road property as described in able in the Transportation activity, ex-
property accounts 2 through 45, exclud- cept where such costs are clearly in
ing account 44, all of which should be support of repairing or maintaining
charged to the Way and Structures ac- freight cars, other activities or sub-
tivity. It also excludes expenses in per- activities. When locomotives or trains
formance of, or support for Transpor- are operated in support of repairing or
tation, General and Administrative ac- maintaining freight cars, the operating
tivities, property used for noncarrier costs shall be charged to this sub-
operations, nonoperating property, and activity.
interest or other fixed charges.
92
Other Equipment Subactivity—(XX–23– terial and supplies, purchased services,

XX) lost or damaged freight, and casualties.
(3) Other Equipment subactivity of the Train Operations Subactivity—(XX–31–
Equipment activity refers to repairing, XX)
maintaining, leasing, renting, depre-
ciating, and retiring other equipment. This activity excludes all expenses
It includes all natural expense object assignable to the Way and Structures,
subclassifications under the Equipment Equipment, and General and Adminis-
activity which are applicable to other trative activities, as well as those ex-
equipment. The subactivity pertains to penses for noncarrier operations and
all equipment described in property ac- nonoperating functions.
counts 44, 46 and 54 through 58, whether (1) Train Operations subactivity of the
such property is owned or leased. This Transportation activity refers to oper-
subactivity specifically excludes ex- ations of all trains except those per-
penses incurred in operating other forming yard functions in terminals. It
equipment, such as for fuel and lubri- includes running trains in road or way
cants, crew wages, inspecting equip- service; switching trains except where
ment, operating supplies, servicing (as such switching is performed within
opposed to maintaining or repairing), yards or terminals; and making cus-
and cleaning, which are includible in tomer pick-ups and deliveries except in
the Transportation activity, except yards and terminals.
where such costs are clearly in support It also provides for dispatching, con-
of other activities or subactivities. trolling, reporting, and monitoring
When locomotives, trains, or other road train movements; inspecting and
equipment are operating in support of lubricating trains; servicing, fueling,
repairing or maintaining other equip- and cleaning (not repairing or main-
ment, the operating costs shall be taining) locomotives; purchasing or
charged to this subactivity. producing electric power for motive
power; and operating supporting activi-
Transportation Activity—(XX–30–XX) ties such as communications, sig-
(C) Transportation activity refers to naling, crossing protection, and
operating, servicing, inspecting, weigh- interlockings.
ing, assembling, and switching trains; This subactivity also includes crew
operating highway revenue services; calling and transporting; crew lodging,
operating facilities in connection with meals, and other expenses; lost or dam-
carrier transportation operations in- aged freight; casualties and insurance;
cluding coal and ore terminals, inter- clearing wrecks; and operating joint
modal terminals, terminal grain ele- tracks and facilities except for yards or
vators, and others; operating carfloat specialized services. It also includes
and carferry services and related facili- salaries and wages, fringe benefits, ma-
ties; operating communications sys- terial and supplies, fuel and lubricants,
tems which primarily support train op- purchased services, casualty and dam-
erations; and joint facility transpor- ages, and other natural expense ele-
tation operations. It includes various ments incurred in operating trains.
administrative functions directly sup- The Train Operations subactivity ex-
porting transportation operations includes the operation of specialized
cluding those described in the Adminis- services, all of which should be charged
trative Support Operations sub- to the Specialized Services Operations
activity. Work train costs in support of subactivity. However, road or way
the Way and Structures or the Equip- switching between trains and special-
ment activities should be charged to ized service facilities outside of ter-
those activities. However, shipments of minal areas belongs to the Train Oper-
company materials, handled in pre- ations subactivity.
dominantly revenue freight trains, are Work and other nonrevenue train op-
appropriately included in this activity. erating costs are to be charged to the
This activity includes all natural ex- appropriate supported activity. Ship-
pense object subclassifications such as ments of company materials normally

salaries and wages, fringe benefits, ma- should be charged to this subactivity,
93
except where the train movement is ex- when they are performed in a yard or
clusively or predominantly for such terminal area.
nonrevenue purpose where the sup-
ported activity should bear the train Train and Yard Common Subactivity—
operating costs. (XX–33–XX)
(3) Train and Yard Common sub-
Yard Operations Subactivity—(XX–32– activity of the Transportation activity
XX) refers to the function of adjusting and
(2) Yard Operations subactivity of the transferring loads; and placing and re-
Transportation activity refers to moving car loading devices and grain
classifying cars to make-up or break- doors. It also includes lost or damaged
down trains; sorting and handling way- freight not specifically traceable to nu-
bills in connection with freight car merous activities resulting from per-
classification and switching in yards or formance of train, yard, or specialized
terminals; inspecting, servicing, fuel- services operations. It also includes
ing, and cleaning (not repairing or salaries and wages, fringe benefits, ma-
maintaining) locomotives and cabooses terial and supplies, purchased services,
used to provide yard or terminal serv- and other natural expense elements in-
curred in performing the functions de-
ices; purchasing or producing electric
fined above. It excludes the natural ex-
power for motive power; diverting or
pense elements of casualties and insur-
holding cars; and reporting operating
ance, which shall be charged to the
and car movement data related to
Train Operations and Yard Operations
yards and terminals. It also includes
subactivities.
operating supporting activities in
yards or terminals, such as commu- Specialized Services Operations Sub-
nications, signaling, and interlockings; activity—(XX–34–XX)
yard crew calling and transporting;
(4) Specialized Services Operations sub-
yard crew lodging, meals, and other ex-
activity of the Transportation activity
penses; lost or damaged freight specifi-
refers to operating services which are
cally traceable to occurrences result-
specialized in nature and in cost char-
ing from the performance of yard oper-
acteristics, including all of those so
ations; casualties and insurance re-
designated by the Board. The purpose
lated to yard operations; clearing
of segregating the cost of such services
wrecks which occurred in the perform-
is primarily to preclude distortion of
ance of yard operations; and operating general costs applicable to the Train
joint yards and terminals. Operations and Yard Operations sub-
Within terminals, this subactivity in- activities. Secondarily, further break-
cludes pick-up or delivery of freight out of the costs of operating individual
cars from or to customer spur tracks, specialized services can be provided in
team tracks, freight houses, inter- less detail than the full range of nat-
change tracks, rip tracks, and special- ural expense accounts, in reports used
ized service facilities. It also includes for recurring cost analysis purposes
salaries and wages, fringe benefits, ma- pertaining to each type of specialized
terial and supplies, fuel and lubricants, service.
purchased services, casualty and dam- The designated specialized services
ages, and other natural expense ele- operations are as follows:
ments incurred in operating yards and (a) TOFC/COFC Operations refers to
terminals. the function of operating rail-to-
The Yard Operations subactivity in- ground or water and ground or water-
cludes the cost of switching operations to-rail transfer facilities for handling
within facilities for Specialized Serv- trailers or containers, including re-
ices and switching or transfer oper- lated storage; and the highway move-
ations between yards and the special- ment of trailers or containers within a
ized service facilities. The latter is not terminal area for purposes of pick-up,
limited or affected by definitions or re- delivery, or interchange.
strictions contained in carrier oper- The service includes loading, tie-
ating rules or labor agreements. It is down, and/or unloading flat cars or dol-
related solely to the defined operations lies and piggyback trailers to or from
94
highway tractors; moving trailers, dol- whatever means; operating the facili-
lies, or containers within the facility; ty’s pollution control equipment; oper-
servicing, cleaning, and fueling (but ating and directing the operations of
not repairing or maintaining) facility moorings and tugboats; servicing,
equipment; operating storage areas; cleaning, and fueling (but not repairing
and casualties, claims, and insurance or maintaining) facility equipment; op-
relating to the facility. erating storage areas; and casualties,
TOFC/COFC Operations do not in- claims, and insurance relating to the
clude Plan V or other arrangements, facility.
where there is a division of revenues These terminal operations do not in-
between the rail and motor carrier. clude costs appropriate to the Way and
They do not include switching services Structures, Equipment, or General and
performed within the facility by yard Administrative activities. They also do
or road crews. They also do not include not include costs appropriate to the
the functions of the Way and Struc- Train Operations, Yard Operations,
tures, Equipment, and General and Ad- Train and Yard Operations Common, or
ministrative activities, or the Train, Administrative Support Services Oper-
Yard, Train and Yard Common, or Ad- ations subactivities. Switching trans-
ministrative Support Operations sub- fer of cars between general yards or
activities. trains and the facility or a dedicated
(b) Floating Operations refers to oper- yard serving the facility and switching
ations of water vessels and equipment within the dedicated supporting ter-
in revenue service. They include the minal facility when performed by yard
operation of carferries, tugs, barges, crews should be charged to the Yard
lighterage, and all other forms of water Operations subactivity.
craft. (d) Other Marine Terminal Operations
Floating operations exclude oper- refers to the operations of marine ter-
ations includable in the Administra- minals other than those for which a
tive Support Operations subactivity, separate designated specialized service
and the switching transfer of cars be- operation category is provided.
tween general yards or trains and the (e) Motor Vehicle Loading and Distribu-
facility or a dedicated yard serving the tion Facility Operations refers to the op-
facility, or switching within the dedi- erations of facilities for loading, un-
cated supporting terminal facility loading, or storing motor vehicles.
when performed by yard crews. They (f) Protective Service Operations refers
also do not include costs appropriate to to the function of servicing, cleaning,
the Way and Structures, Equipment, or and fueling (but not repairing or main-
General and Administrative activities. taining) mechanical protective service
Floating operations should be classi- equipment.
fied by line and terminal operations. (g) Other Specialized Services Oper-
The distribution should be made based ations refers to the function of per-
on the nature of the operation and not forming rail substitute service, other
the facility or equipment. When the highway revenue service, LCL terminal
service occurs between distinct termi- operations, warehouse operations,
nals, the operation should be consid- freight car transloading, grain elevator
ered a line operation. When the service terminal operations, livestock feeding
is conducted within a general terminal operations, and other specialized serv-
or harbor area, the operation should be ices designated by the Board. It in-
considered a terminal operation. cludes the transportation operating ex-
(c) Coal Terminal Operations and Ore penses of only those services listed
Terminal Operations refers to operations above.
of rail-to-water or water-to-rail
transloading facilities for coal or for Administrative Support Operations
ores, including related storage, blend- Subactivity—(XX–35–XX)
ing, and other processing or handling (5) Administrative Support Operations
at the facility. These operations in- subactivity refers to operations pro-
clude loading and/or unloading rail cars viding direct administrative support to
or water vessels at the facility; moving the overall Transportation activity. It

commodities within the facility by includes administrative support for the
95
Common, and the Specialized Services tions, internal auditing, industrial en-
Operations subactivities. The adminis- gineering, and regulatory reporting.
trative support operations includes re- This activity excludes expenses in-
ceiving and processing customer or- curred for noncarrier operations of the
ders, requesting cars, preparing way- carrier company as well as for general
bills, rating shipments, billing cus- administration of the corporate entity
tomers, collecting customer receiv- and nonoperating income or expenses.
ables in the ordinary course of business It also excludes expenses in perform-
(not to include treasury, legal, general ance of or direct support for Way and
accounting, revenue accounting, or Structures, Equipment, and Transpor-
credit operations, all of which are tation activities, with particular atten-
chargeable to the General and Admin- tion to the Administrative Support Op-
istrative activity), billing and record- erations subactivity.
ing demurrage, reporting interchanges,
reporting advances, and the initial re- OPERATING EXPENSE ACCOUNTS
porting and summarization of input
documents for purposes of cash collec- Section 3—Function Explanations
tion and accounting. Any operations
beyond the initial summarization and NOTE: Functions do not necessarily cor-
relate to organizational structure. A par-
reporting of input data are assignable
ticular department may not have a specific
to the General and Administrative ac- USOA expense function code. However, its
tivity except for those otherwise in- costs may be includable under various func-
cluded in the definition of this sub- tion codes. Costs not properly chargeable to
activity. specific functions should be assigned to
Carrier staff, administrative, or cler- Function Code 99, Other.
ical operations related to operating or (a) Functions Related to the Way and
transportation department general ad- Structures Activity
ministration should not be charged to (1) Administration Functions.
this subactivity. The Administrative (02) Administration, Track—General
Support Operations subactivity may be administration and supervision of cen-
performed at local stations, regional tral, regional, and divisional engineer-
offices, or even at the general offices; ing functions related to repair and
however, the location of the operation maintenance of track. Used only in
performance does not affect its nature. Way and Structures—Other. Included
The operations included in this sub- are:
activity should reasonably correlate to • General engineering and design.
the quantity of shipments or to the • Valuation engineering for maintenance
quantity of carloadings. and improvements.
• Planning and supervision of repair and
General and Administrative Activity— maintenance work.
(XX–60–XX) • Budget preparation, clerical support, and
similar functions.
(D) General and Administrative activ-
ity refers to the providing of overall (03) Administration, Bridges and
administration or other general sup- Buildings—General administration and
port for carrier operations. It com- supervision of central, regional and di-
prehends only that portion of general visional engineering functions related
and administrative activities that re- to repair and maintenance of bridges
lates to carrier operations (as distin- and buildings. Used only in Way and
guished from noncarrier operations or Structures—Other. Included are:
nonoperating activities) including ex- • General engineering and design.
ecutive, legal, financial, treasury, ac- • Valuation engineering for maintenance
counting, budgeting, taxation, cor- and improvements.
porate planning, costing, marketing, • Planning and supervision of repair and
advertising, traffic, corporate sec- maintenance work.
retary, public relations, real estate, in- • Budget preparation, clerical support, and
similar functions.
surance administration, personnel ad-
ministration, pension plan administra- (04) Administration, Signals—Gen-

tion, general purchasing, labor rela- eral administration and supervision of
96
central, regional, and divisional engi- fires; patrolling and inspection; road-
neering functions related to repair and way relocation.
maintenance of signals. Used only in (11) Repair and Maintenance, Tunnels
Way and Structures—Other. Included and Subways—Repaving, ventilating,
are: lighting, other maintenance.
• General engineering and design.
(12) Repair and Maintenance, Bridges
• Valuation engineering for maintenance and Culverts—Bridges, trestles, cul-
and improvements. verts and elevated structures which
• Planning and supervision of repair and carry tracks; repairing, filling, dredg-
maintenance work. ing, cleaning, watching these struc-
• Budget preparation, clerical support, and tures.
similar functions. (13) Repair and Maintenance, Ties—
(05) Administration, Communica- Cross, switch, bridge, and other track
tions—General administration and su- ties. This function includes expenses
pervision of central, regional, and divi- associated with unloading, distributing
sional engineering functions related to and placing ties in tracks.
repair and maintenance of communica- (14) Repair and Maintenance, Rails
tion facilities. Used only in Way and and Other Track Material—All track
Structures—Other. Included are: material used in repair of tracks ex-
cept ballast and ties. This function in-
• General engineering and design.
• Valuation engineering for maintenance cludes expenses associated with un-
and improvements. loading and installing Rail and Other
• Planning and supervision of repair and Track Material.
maintenance work. (16) Repair and Maintenance, Bal-
• Budget preparation, clerical support, and last—Gravel, stone, slag, cinders, sand,
similar functions. and like material.
(06) Administration, Other—General (19) Repair and Maintenance, Signals
administration and supervision of cen- and Interlockers—Signals and inter-
tral, regional, and divisional engineer- lockers and related apparatus gov-
ing functions related to repair and erning train movement.
maintenance of other roadway prop- (20) Repair and Maintenance, Com-
erty. Used only in Way and Struc- munications Systems—Telephone, tele-
tures—Other. Included are: graph, radio, radar, inductive train
communication, and other communica-
• General engineering and design. tion systems, including terminal equip-
• Valuation engineering for maintenance
and improvements. ment.
• Planning and supervision of repair and (21) Repair and Maintenance, Power
maintenance work. Systems—Power plants, substations,
• Budget preparation, clerical support, and transmission and distribution systems.
similar functions. (22) Repair and Maintenance, High-
(2) Repair and Maintenance Func- way Grade Crossings—Highway grade
tions—These functions include: crossing signals, gates, and related ap-
paratus.
• Repair and maintenance work on road (23) Repair and Maintenance, Station
property and equipment, including gang fore- and Office Buildings—Station and of-
man, shop foreman, and other supervisors
with direct authority over workers; all high-
fice buildings, fixtures, appurtenances,
er levels of supervision are included in the and grounds.
Administration function. (24) Repair and Maintenance, Shop
• Work train service. Crew wages are to be Buildings—Locomotives—Shops and
charged directly; other work train expenses buildings, fixtures, appurtenances, and
except fuel may be apportioned if not solely grounds, used for the repair, mainte-
identifiable to work train service. nance and servicing of locomotives.
• Store expense and shop expense.
(25) Repair and Maintenance, Shop
(10) Repair and Maintenance, Road- Buildings—Freight Cars—Shops and
way—Roadway, cuts, fills, banks, em- buildings, fixtures, appurtenances, and
bankments, subgrade, roadbed, ditches, grounds, used for the repair, mainte-
drains, landscaping; cutting and re- nance, and servicing of freight cars.
moving grass, brush, debris; dressing (26) Repair and Maintenance, Shop
ballast; preventing and extinguishing Buildings—Other—Shops and buildings,
97
fixtures, appurtenances, and grounds, fences. If the amount of labor expense

used for the repair, maintenance, and is not substantial, the wages of those
servicing of revenue service equipment employees who perform snow removal
other than locomotives and freight duties may be included in the appro-
cars; roadway machines; work equip- priate expense accounts for the duties
ment and the like. they are normally assigned.
(27) Repair and Maintenance, Loco- (39) Dismantling Retired Property—
motive Servicing Facilities—Fuel and Dismantling retired road property
water stations, fixtures, appur- when the property is not to be replaced
tenances, and grounds. through normal maintenance, addition
(28) Repair and Maintenance, Mis- or betterment.
cellaneous Buildings and Structures. (48) Road Property Damaged—Repair
All permanent buildings and struc- of roadway property and structures,
tures, and their fixtures, appur- used in revenue service, and all equip-
tenances, and grounds, not otherwise ment not used in revenue service, when
provided for. (Includes storehouses.) damage is caused by derailments, colli-
(29) Repair and Maintenance, Coal sion, fire, explosions, sabotage, other
Terminals—Wharves, docks, and other casualties, and excluding damage re-
loading or unloading facilities for han- sulting through normal operations or
dling coal, including conveyors, ma- use; such as part failures, overloads,
chinery and fixtures. overheating, short circuits and similar
(30) Repair and Maintenance, Ore events. Part failures through normal
Terminal—Wharves, docks, and other operations are those where the result-
loading or unloading facilities for han- ing damage is restricted to the unit of
dling ores and other bulk mineral com- road property which experienced the
modities, including conveyors, machin- failure. When the damage extends to
ery and fixtures. other units of road property, related
(31) Repair and Maintenance, TOFC/ expenses shall be charged to this func-
COFC—Terminals—TOFC/COFC ter- tion.
minal structures, fixtures, machinery (3) Other Function.
and appurtenances, used for transfer of (99) Other—All expenses not properly
trailers and containers. includable in the above functions.
(32) Repair and Maintenance, Other (b) Functions Related to the Equip-
Marine Terminals—Marine terminal ment Activity
structures, fixtures, machinery and ap- (1) Administrative Functions.
purtenances not otherwise provided (01) Administration, General—Gen-
for. eral administration and supervision of
(33) Repair and Maintenance, Motor central, regional, and divisional repair
Vehicle Loading and Distribution Fa- and maintenance functions. Included
cilities—Buildings, structures, fixtures, are:
machinery and appurtenances used for
receipt, loading, unloading, and dis- • General engineering and design.
tribution of motor vehicles. • Valuation engineering for maintenance
and improvements.
(35) Repair and Maintenance Facili-
• Planning and supervision of repair and
ties for Other Specialized Services Op- maintenance of equipment.
erations—Buildings, structures, ma- • Budget preparation, clerical support, and
chinery, fixtures and grounds, used as similar functions.
part or whole of a revenue-producing
specialized service. (2) Repair and Maintenance Func-
(36) Repair and Maintenance, Road- tions—These functions include:
way Machines—Machines and equip- • Repair and maintenance work on equip-
ment used for repairs of roadway and ment including gang foreman, shop foreman,
structures. and other supervisors with direct authority
(37) Small tools and Supplies—Cost of over workers; all higher levels of supervision
small tools and supplies used in repair are included in the Administrative function.
• Store expense and shop expense.
and maintenances.
(38) Snow Removal—Removal of snow (39) Dismantling Retired Property—
and ice; plow and flange service; set- Dismantling retired equipment when
ting up, taking down and storing the property is not to be replaced
98
through normal maintenance, addition the repair, maintenance and servicing

or betterment. of locomotives.
(40) [Reserved] (50) Repair and Maintenance, Shop
(41) Repair and Maintenance, Loco- Machinery—Freight Cars—Repair of
motives—Repair of locomotives in rev- shop machinery and other apparatus,
enue service. including special foundations for the
(42) Repair and Maintenance, Freight repair, maintenance and servicing of
Cars—Repair of freight cars and at- freight cars.
tached motor equipment in revenue (51) Repair and Maintenance, Shop
service. Machinery—Other Equipment—Repair
(43) Repair and Maintenance, Trucks, of shop machinery and other appa-
Trailers, Containers in Revenue Serv- ratus, including special foundations for
ice—Repair, inspection, and lubrica- the repair, maintenance and servicing
tion of trucks, trailers and containers of other equipment.
in revenue service. (3) Other Function.
(44) Repair and Maintenance, Float- (99) Other—All equipment expenses
ing Equipment in Revenue Service— not properly includable in the above
Floating equipment including appur- functions.
tenances. (c) Functions Related to the Trans-
(45) Repair and Maintenance, Pas- portation Activity
senger and Other Revenue Equipment— (1) Administrative Function.
Repair, inspection and lubrication of (01) Administration, General—Gen-
passenger train cars and attached eral administration and supervision of
motor equipment, and other equipment central, regional, and divisional oper-
used in revenue service. ational functions. Included are:
(46) Repair and Maintenance, Com- • Planning and supervision of train, yard,
puter Systems and Word Processing common, specialized services and support op-
Systems—Computers and attached pe- erations.
ripheral equipment; data recording and • Budget preparation, clerical support, and
punch-card processing equipment; word similar functions.
processing equipment. [Not applicable to the Train and Yard
(47) Repair and Maintenance, Work Common Subactivity.]
and Other Non-Revenue Equipment— (2) Operations Functions.
Rail and floating work equipment and (56) Engine Crews—Operation of
appurtenances, and all other equip- trains in line-haul revenue service by
ment not used in revenue service and enginemen, including crew meals, lodg-
not provided for elsewhere. ing, deadheading and other expenses.
(48) Equipment Damaged—Repair of (57) Train Crews—Operation of trains
locomotives, freight cars, other equip- in line-haul revenue service by train-
ment used in revenue service, and all men, including crew meals, lodging,
equipment not used in revenue service, deadheading, and other expenses.
when damage is caused by derailment, (58) Dispatching Trains—Costs in-
collision, fire, explosions, sabotage, clude dispatchers, supporting staff,
washouts, or other casualties, and ex- train order stations and operators, of-
cluding damage resulting through nor- fice and supplies expense.
mal operations or use, such as part (59) Operating Switches, Signals,
failures, overloads, overheating, short Interlockers, Retarders, Humps—Oper-
circuits and the like. Part failures ators, switch tenders, supplies, etc.
through normal operations are those (60) Operating Drawbridges—Engi-
where the resulting damage is re- neers, tenders, watchmen, supplies, etc.
stricted to the equipment that experi- (61) Highway Crossing Protection—
enced the failure. When the damage ex- Gatekeepers, flagmen, lighting, sup-
tends to other units of equipment, replies, etc.
lated repairs shall be charged to this (62) Train Inspection and Lubrica-
function. tion—Inspection and lubrication of
(49) Repair and Maintenance, Shop trains (cars and locomotives), includ-
Machinery—Locomotives—Repair of ing minor repairs made by inspectors.
shop machinery and other apparatus, This includes the inspection of train lo-
including special foundations used for comotives when indistinguishable from
99
the inspection and lubrication of train ation of trucks, floating equipment,

cars. and all other specialized equipment
(63) Clearing Wrecks—Removal of providing line haul movement for rev-
equipment, freight or other goods, and enue including TOFC/COFC pick-up
property of others damaged in wrecks; and delivery.
note that repair of wreck damage (74) Loading & Unloading and Local
caused to roadway property and equip- Marine—All other specialized services
ment is classified as function Code 48— in the transportation activity such as
Road Property and Equipment Dam- TOFC/COFC loading, unloading, and tie
aged. down; coal and ore loading and unload-
(64) Switch Crews—Operation of ing; and other similar functions.
trains and locomotives in yard and ter- (75) Protective Services—Inspecting,
minal revenue switching service by servicing, cleaning, and fueling protec-
enginemen and trainmen, including as- tive equipment and devices.
sociated expenses. (76) Clerical and Accounting Employ-
(65) Controlling Operations—Direct- ees—Direct administrative support to
ing the operations of yard and terminal the Transportation Activity, including
interchange and classification service, receiving and processing customer or-
including office and supplies expense. ders, requesting cars, preparing way-
(66) Yard and Terminal Clerical— bills, rating shipments, billing cus-
Clerical work in support of the oper- tomers, collecting customer receiv-
ation of yard and terminal switching ables in the ordinary course of busi-
and classification service, including of- ness, billing and recording demurrage,
fice and supplies expense. reporting interchanges, reporting ad-
(67) Locomotive Fuel—Cost of loco- vances, and the initial summarization
motive fuel used in all service, includ- and reporting of input data.
ing the receipt, storage, and dispensing (77) Communications Systems Oper-
of the fuel. ation—Cost of operating communica-
(68) Electric Power Purchased/Pro- tions systems; when such operations
duced for Motive Power—Purchase cost are an integral part of other functions,
and cost of producing electric power for only specifically identifiable costs of
use by electrically-powered motive operating communications systems are
equipment in all service. to be allocated to this function.
(69) Servicing Locomotives—Pre- (78) Loss and Damage Claims Proc-
paring locomotives for switching serv- essing—Receipt, investigation, other
handling, and adjustment and settle-
ice in yards and for train service, in-
ment of claims for loss or damage of
cluding moving locomotives around en-
freight or other goods carried in rev-
gine yards. This includes the inspec-
enue service. Does not include handling
tion and lubrication of yard loco-
claims for personal injury or for loss or
motives and may include the inspec-
damage of other property.
tion and lubrication of train loco-
(3) Other Function.
motives where distinguishable from the
(99) Other—All transportation ex-
inspection and lubrication of train penses not properly includable in the
cars. above functions.
(70) Cleaning Car Interiors—Cleaning (d) Functions Related to the General
and preparing car interiors for revenue and Administration Activity
service, including minor repairs made (1) Administrative Function.
by car cleaners. This includes payment (01) Administration, General—Gen-
for cleaning cars due to spoilage of per- eral administration and supervision of
ishable shipments. central, regional, and divisional gen-
(71) Adjusting and Transferring eral functions. Included are:
Loads—Transferring, picking up,
straightening, and reloading freight in • Planning and supervision of general and
the ordinary course of transportation. administrative functions.
• Budget preparation, clerical support, and
(72) Car Loading Devices and Grain
similar functions. It includes the overall re-
Doors—Servicing car loading devices sponsibility for two or more of the General
and placing and removing grain doors. and Administrative functions listed below or
(73) Pickup & Delivery, Marine Line the responsibility that expands to more than
Haul & Rail Substitute Service—Oper- one activity.
100
(2) General Functions. (94) Research and Development—Re-

(86) Accounting, Auditing, Finance— search into the use of methods, proce-
General and corporate accounting, au- dures, practices, equipment, machinery
diting by internal auditors and outside tools, and plant, and in determining
accountants, treasury, tax accounting and measuring the impact of factors or
and returns, financial reporting, cor- costs not previously known, with the
porate planning related to investment intention of finding ways to improve
decisions and budgeting. maintenance, operations, administra-
(87) Management Services and Data tion, rates, productivity, environ-
and Word Processing—Systems plan- mental impact, and similar items. Does
ning and design, programming, com- not include specific studies or develop-
puter operations, data control, key ment efforts for which an implementa-
entry of data, and related activities; tion decision has already been made.
This includes operating expenses asso- (3) Other Function.
ciated with a particular computer sys- (99) Other—All general and adminis-
tem or word processing equipment that tration expenses not properly includ-
is dedicated to more than one activity. able in the above functions.
This does not include expenses associ-
ated with computer systems or word INCOME ACCOUNTS
processing equipment dedicated exclu-
sively to the Way and Structure, Ordinary Items
Equipment or Transportation Activity;
these expenses shall be charged to the 501 Railway operating revenues.
appropriate subactivity/function.
This account is a summarization of
(88) Marketing—Market planning and
Railway Operating Revenue Accounts
analysis, traffic analysis, costing, pric-
101 to 122. It excludes transfers from
ing, and related activities.
governmental authorities except when
(89) Sales—Traffic solicitation and
the transfer payment is for specific
related sales efforts.
services for transporting property or
(90) Industrial Development—Efforts
persons by rail line other than com-
to locate industries on real estate ac-
muter operations and local rail service
cessible to the railroad’s lines for the
subsidies granted under authority of
purpose of creating future revenues.
the Railroad Revitalization and Regu-
(91) Personnel and Labor Relations—
latory Reform Act of 1976 [See Instruc-
Efforts to attract and retain employ-
tion 1–15(e)(2)].
ees, handle fringe benefit plans, mon-
itor and negotiate labor contracts, [52 FR 4346, Feb. 11, 1987]
maintain employee data and records,
coordinate training programs, handle 502 Railway operating revenues—
grievances, handle employee transfers, transfers from government authori-
operate job safety and equal oppor- ties for current operations.
tunity programs, and related activi- This account shall include amounts
ties. received or receivable from Federal,
(92) Legal and Secretarial—Legal state, or municipal authorities which
functions handled by attorneys and are specifically designated to offset op-
supporting staff; including lawsuits, in- erating expenses, or which may be ap-
jury and damage claims, commerce plied at the discretion of the railroad
matters, and similar functions; cor- to operating expenses and/or railroad
porate secretarial functions involving property.
shareholder records, corporate min- This account shall also include
utes, stock certificates, and similar amounts received from government au-
items. thorities to offset operating costs sus-
(93) Public Relations and Adver- tained on specific lines or in certain re-
tising—Public relations activities with gions. Examples are: (1) Local Rail
governmental bodies, shippers, and the Service Assistance Subsidies granted
general public; advertising in the to the carrier under authority of the
media, booklets, publications; open Railroad Revitalization and Regu-
houses and tours; and similar activi- latory Reform Act of 1976, and (2) pay-
ties. ments by regional transit authorities
101
in connection with specified operations NOTE B: The rent from property carried in
performed by the carrier. account 737, Property used in other than car-
This account shall also include indi- rier operations, shall not be included in this
account. Such rents shall be included in ac-
rect receipts which reduce operating
count 506, Revenues from property used in
expenses, such as assumption of station other than carrier operations.
maintenance costs, abatement of taxes, NOTE C: Rent and other income from real
or other indirect contributions by gov- estate acquired for new lines or for additions
ernment agencies, if clearly identifi- and betterments shall be credited to the ap-
able and measurable. propriate road and equipment accounts until
NOTE: This account shall not include re- the completion or coming into service of the
ceipts from government authorities des- property.
ignated for the acquisition, addition to, or NOTE D: Rent and other income from real
improvement of railway operating property. estate acquired for new lines or for additions
(See instruction 1–15.) and betterments shall be credited to the ap-
propriate road and equipment accounts until
(49 U.S.C. 304, 320) the completion or coming into service of the
[43 FR 30558, July 17, 1978] property.
503 Railway operating revenues—am- FR 4346, Feb. 11, 1987]
ortization of deferred transfers
from government authorities. 512 Separately operated properties;
This account shall include the amor- profit.
tization applicable to amounts rep- (a) This account shall include
resenting the cost of acquisition, addi- amounts earned under the terms of
tion to, or improvement of depreciable agreements or contracts whereby the
operating property received from Fed- net income resulting from the oper-
eral, state, or municipal authorities. ation by others or properties of other
(See instruction 1–15, and account 783, companies having a separate corporate
‘‘Deferred Revenues—Transfers from existence is to be paid, in whole or in
Government Authorities.’’) part, to the accounting company.
(49 U.S.C. 304, 320) (b) In determining the amount earned
[43 FR 30558, July 17, 1978]
by the accounting company, consider-
ation shall be given not only to the op-
506 Revenues from property used in erating revenues and operating ex-
other than carrier operations. penses but also to other items of in-
come or deduction which affect that
This account shall include the total
amount.
revenues derived from property used in
other than carrier operations, the cost NOTE A: The amount payable by the oper-
of which is includible in balance-sheet ating company shall be charged by it to ac-
count 550, Income Transferred under Con-
account 737, ‘‘Property used in other tracts and Agreements.
than carrier operations.’’ NOTE B: Dividends or other returns upon
securities issued by separately operated
510 Miscellaneous rent income. companies, and held or controlled by the ac-
(a) This account shall include such counting company, shall be included in ac-
rents of property owned and controlled counts 513, ‘‘Dividend income,’’ 514, ‘‘Interest
by the accounting carrier as are not income,’’ or 516, ‘‘Income from sinking and
other funds,’’ as may be appropriate.
provided for in the foregoing accounts.
(b) This account shall be charged [42 FR 35017, July 7, 1977, as amended at 52
with the cost of maintenance of the FR 4347, Feb. 11, 1987]
property rented, also specific inci-
dental expenses in connection with 513 Dividend income.
such property, such as the cost of nego- (a) This account shall include divi-
tiating contracts, advertising for ten- dends declared on railway and other
ants, fees paid conveyancers, collec- stocks, the income from which is the
tors’ commissions, and analogous property of the accounting company,
items. whether such stocks are owned by the
NOTE A: Taxes on property the rent of accounting company and held in its
which is creditable to this account shall be treasury or deposited in trust, or are

charged to account 64–61–00, Property Taxes. controlled through lease or otherwise.
102
(b) Dividends declared shall not be NOTE A: This account shall not include in-
credited prior to actual collection un- terest on securities issued or assumed by the
less their payment is reasonably as- accounting company and owned by it, wheth-
er pledged as collateral or held in its treas-
sured by past experience, guaranty, an- ury, in special deposits, or in sinking or
ticipated provision, or otherwise. (See other funds.
note C to account 708, ‘‘Interest and NOTE B: Interest on securities other than
dividends receivable.’’) those of the accounting company, and on
(c) Accruals of guaranteed dividends other assets held in sinking or other funds
may be included in this account if their shall be included in account 516, ‘‘Income
from sinking and other funds.’’
payment is reasonably assured. NOTE C: Discount on bills for material pur-
NOTE A: This account shall not include chased shall be credited to the accounts to
credits for dividends on stocks issued or as- which is charged the cost of the material
sumed by the accounting company and with respect to which the discount is al-
owned by it, whether pledged as collateral or lowed.
held in its treasury, in special deposits, or in
sinking or other funds. 516 Income from sinking and other
NOTE B: Dividends on stocks of other com- funds.
panies held in sinking or other funds shall be (a) This account shall include the in-
credited to account 516, ‘‘Income from sink-
come on cash, securities, and other as-
ing and other funds.’’
sets (not including securities issued or
514 Interest income. assumed by the accounting company)
held in sinking and other funds. (See
(a) This account shall include the in- note C to account 708, ‘‘Interest and
terest on securities and debenture dividends receivable.’’)
stock of other companies, the income (b) At the option of the accounting
from which is the property of the accompany there may be included each
counting company whether such secu- year in this account the portion, appli-
rities are owned by the accounting cable to the fiscal period, of the
company and held in its treasury or de- amount requisite to extinguish, during
posited in trust, or are controlled the interval between the date of acqui-
through lease or otherwise. sition and the date of maturity, the
(b) The account shall also include in- discount or premium on funded securi-
terest on notes and other evidences of ties held in sinking or other funds.
indebtedness and interest on bank bal- Amounts thus credited or charged shall
ances, open accounts, and other analo- be concurrently charged or credited to
gous items, including discount or the account in which the cost of the se-
short-term notes. Interest shall not be curities is carried.
accrued unless its payment is reason-
ably assured by past experience, guar- 517 Release of premiums on funded
anty, anticipated provision, or other- debt.
wise. (See note C to account 708, ‘‘In- This account shall include, during
terest and dividends receivable.’’) each fiscal year, such proportion of the
(c) At the option of the accounting premiums on outstanding funded debt
company there may be included each as may be applicable to the period.
year in this account the portion, appli- (See instruction 5–3.)
cable to the fiscal period, of the
amount requisite to extinguish, during 518 Reimbursement received under
the interval between the date of acqui- contracts and agreements.
sition and the date of maturity, the (a) This account shall include
discount or premium on securities of amounts received or receivable from
other companies owned (other than other companies or individuals, rep-
short-term notes). Amounts thus cred- resenting the whole or a part of the net
ited or charged shall be concurrently loss of the accounting company, when
charged or credited to the account in under the terms of agreements or con-
which the cost of the securities is car- tract, no obligation for subsequent re-
ried. The discount on short-term notes imbursement is incurred.
shall be distributed through equal (b) In determining the amount re-
monthly credits, over the terms of the ceivable by the accounting company,
notes. consideration shall be given not only
103
to the operating revenues and oper- count 506, Revenues from property used in
ating expenses, but also to other items other than carrier operations.
of income or deduction which affect [42 FR 35017, July 7, 1977, as amended at 52
that amount. FR 4347, Feb. 11, 1987]
NOTE: The amount payable shall be
charged by the contributing company to ac- 544 Miscellaneous taxes.
count 545, ‘‘Separately operated properties—
Loss.’’
This account shall include all accru-
als for taxes not provided for else-
[42 FR 35017, July 7, 1977, as amended at 52 where, such as taxes on securities
FR 4347, Feb. 11, 1987] owned, and taxes on income from secu-
rities owned.
519 Miscellaneous income.
(a) This account shall include all 545 Separately operated properties;
items, not provided for elsewhere, prop- loss.
erly creditable to income accounts dur- (a) This account shall include
ing the current year. Among the items amounts payable under the terms of
which shall be included in this account agreements or contracts whereby the
are: net loss resulting from the operation
Cancellation of balance sheet accounts rep- by others of properties of other compa-
resenting unclaimed wages and vouchered nies having a separate corporate exist-
accounts written off because of carrier’s in- ence is to be paid, in whole or in part,
ability to locate the creditor. by the accounting company.
Profit from sale of securities carried as (b) In determining the amount pay-
temporary cash investments.
able by the accounting company, con-
Profit from sale of land used for transpor-
tation purposes, of noncarrier property and
sideration shall be given not only to
of securities acquired for investment pur- the operating revenues and operating
poses. expenses, but also to other items of in-
Profit from company bonds reacquired. come or deductions which affect that
Decreases in the valuation allowance (con- amount.
tained within account 702) for the market- NOTE A: The amounts receivable by the op-
able equity securities included in current as- erating company shall be credited by it to
sets. account 518, Reimbursements received under
(b) Gains from extinguishment of contracts and agreements.
debt shall be aggregated and, if mate- NOTE B: Dividends or other returns upon
securities issued by separately operated
rial, credited to account 570, ‘‘Extraor-
companies and held or controlled by the ac-
dinary Items,’’ upon approval by the counting company shall not be included in
Board; however, gains from extinguish- this account to offset a deficit payable, but
ment of debt (excluding debt maturing in accounts 513, ‘‘Dividend income,’’ or 514,
serially) which is made to satisfy sink- ‘‘Interest income,’’ as may be appropriate.
ing fund requirements, shall be re- [42 FR 35017, July 7, 1977, as amended at 52
corded in this account regardless of FR 4347, Feb. 11, 1987]
amount.
546 Interest on funded debt.
531 Railway operating expenses.
This account shall include the cur-
This account shall include total ex- rent accruals of interest on all classes
penses caused by operations, as shown of long-term debt, the principal of
in the primary expense accounts pro- which is includable in accounts 765,
vided in these regulations. Funded debt unmatured; 766, Equip-
ment obligations; 767, Receivers’ and
534 Expenses of property used in
trustees’ securities; 768, Debt in de-
other than carrier operations.
fault; and 769, Accounts Payable; affili-
This account shall include deprecia- ated companies.
tion, rent, taxes, and other expenses in- NOTE A: This account shall not include
curred on property used in other than charges for interest on funded debt obliga-
carrier operations. tions issued or assumed by the accounting
NOTE: If property for which rent expense is company and owned by it, whether pledged
includable in this account is sublet, the rent as collateral or held in its treasury, in spe-
from the sublease shall be included in ac- cial deposits, or in sinking or other funds.
104
NOTE B: When funded debt is incurred for to that period so long as any portion of
new lines or extensions, or for addition and the discount remains unextinguished.
betterment purposes, the accruals of interest However, the entire amount for the dis-
on such funded debt (less interest received on
unexpended balances), to the date of comple-
count and expense applicable to any
tion or coming into service of the property particular issue of obligations may be
so acquired shall be includable in the road charged directly to this account at
and equipment accounts. time of issue when the aggregate of
NOTE C: This account shall be maintained such amounts does not appreciably af-
so as to show separately: (a) Fixed interest fect the accounts. (See instruction 5–
which will be paid, or for which provision for 3(b).)
payment will be made, when the interest ma-
tures; (b) interest in default; and (c) contin- 549 Maintenance of investment orga-
gent interest determined to be payable.
nization.
FR 4347, Feb. 11, 1987] This account shall include the di-
rectly assignable administration ex-
547 Interest on unfunded debt. penses of the accounting company
This account shall include interest which are incident to its investments
accrued on unfunded debt, such as in leased or nonoperating physical
short-term notes payable on demand or property, and in stocks, bonds, or other
having maturity dates of one year or securities.
less from dates of issue, and open ac- ITEMS OF EXPENSE
counts, including discount and expense
Advertising annual reports (lessor companies
on demand and short-term loans, inter- only).
est on receipts outstanding for install- Calls for bonds in accordance with sinking
ments paid on capital stock, interest fund provisions of mortgages.
on deferred payments for public im- Directors’ fees.
provements, interest on tax defi- Printing and mailing dividend checks.
ciencies, overcharge claims and court Publishing and mailing annual reports and
awards, and other analogous items. other corporate statements to share-
The discount on short-term notes, if of holders.
Publishing notices of declaration of divi-
a considerable amount shall be distrib-
dends.
uted through equal monthly charges, Law expenses.
over the term of the notes. Office expenses.
NOTE: When short-term notes or other evi- Salaries of officers, clerks, and attendant.
dences of unfunded indebtedness are issued Stationery and printing.
for new lines or extensions or for addition NOTE: Administration expenses incident to
and betterment purposes the accrual of in- railway operation are includible in the pri-
terest to the date of completion or coming mary accounts provided for in operating ex-
into service of the property shall be included pense general account series 60–00–00.
in the road and equipment accounts.
[42 FR 35017, July 7, 1977, as amended at 52 550 Income transferred under con-
FR 4347, Feb. 11, 1987] tracts and agreements.
548 Amortization of discount on fund- whole or any portion of the income of
ed debt. the accounting company payable to an-
(a) This account shall be charged dur- other company under the terms of
ing each fiscal period with the propor- agreements or contracts without obli-
tion of the discount on funded debt ob- gation for reimbursement.
ligations applicable to that period. (b) In determining the amount pay-
This proportion shall be determined ac- able by the accounting company, con-
cording to a rule the uniform applica- sideration shall be given not only to
tion of which through the interval be- operating revenues and operating ex-
tween the date of sale and the date of penses, but also to other items of in-
maturity will extinguish the discount come or deduction which affect that
on funded debt. amount.
(b) The charge to this account for NOTE A: The amount receivable by the
any period must not be either greater other company shall be credited by it to ac-
or less than the proportion of the bal- count 512, ‘‘Separately operated properties—
ance remaining unamortized applicable Profit.’’
105
NOTE B: Dividends or other payments upon 553 Uncollectible accounts.
securities issued or assumed by the account-
ing company shall not be included in this ac- This account shall include losses on
count. receivable, notes, or claims that are
not includible in account 63–61–00.
FR 4347, Feb. 11, 1987] ‘‘General—Uncollectible Accounts—
General and Administrative.’’
551 Miscellaneous income charges.
555 Unusual or infrequent items
(a) This account shall include items, (debit) credit.
not otherwise provided for in the other
income accounts. This includes: This account shall include material
items unusual in nature or infrequent
Income tax on the interest on the accounting in occurrence, but not both, accounted
company’s funded debt when these taxes
are assumed by the company.
for in the current year in accordance
Payments of old accounts previously written with the text of instruction 1–2(d),
off. upon approval by the Board.
Penalties and fines for violation of the Inter-
state Commerce Act or other federal and 556 Income taxes on ordinary income.
state laws.
This account shall include accruals
Loss on sale of securities carried as tem-
porary cash investments. for Federal, State and other income
Loss on sale of land used for transportation taxes applicable to ordinary income.
purposes and of noncarrier property. See the text of account 590, for record-
Loss on sale of securities acquired for investing other income tax consequences.
ment purposes, and charges to write down
the ledger value of such securities because 557 Provision for deferred taxes.
of impairment in their value.
Loss from company bonds reacquired. (a) This account shall include the net
Increases in the valuation allowance (con- tax effect of all material timing dif-
tained within account 702) for the market- ferences [See definition 17(e)] origi-
able equity securities included in current nating and reversing in the current ac-
assets. counting period and the future tax ben-
Contributions for charitable, social, efits of loss carryforwards recognized
or community welfare purposes that do in accordance with Instruction 1–10.
not have a direct relation to the pro- (b) This account shall include credits
tection of company property, develop- for the amortization of the investment
ment of its business, or welfare of its tax credit if the carrier elected to use
employees. the deferred method of accounting for
(b) Losses from extinguishment of the investment tax credit. (See instruc-
debt shall be aggregated and, if mate- tion 1–10.)
rial, charged to account 570, ‘‘Extraor- [42 FR 35017, July 7, 1977, as amended at 52
dinary Items (net),’’ upon approval by FR 4347, Feb. 11, 1987; 67 FR 57533, Sept. 11,
the Board; however, losses from extin- 2002]
guishment of debt (excluding debt ma-
turing serially) which is made to sat- 560 Income or loss from operations of
isfy sinking fund requirements, shall discontinued segments.
be included in this account regardless This account shall include the results
of amount. of operations of a segment of a business
(c) Contributions for charitable, so- (see definition 32(a)), after giving effect
cial, or community welfare purposes to income tax consequences, that has
that have a direct relation to the pro- been or will be discontinued in accord-
tection of company property, develop- ance with the text of instruction 1–2(d),
ment of its business, or welfare of its upon approval by the Board.
employees should be charged to ac-
count 61–61–99, Other Expenses—Gen- 562 Gain or loss on disposal of discon-
eral and Administrative—Other. tinued segments.
(49 U.S.C. 12, 20, 304, 913, and 1012) This account shall include the gain
[42 FR 35017, July 7, 1977, as amended at 42 or loss from the disposal of a segment
FR 64350, Dec. 23, 1977; 52 FR 4347, Feb. 11, of a business, after giving effect to in-
1987; 67 FR 57533, Sept. 11, 2002] come tax consequences, in accordance
106
with the text of instruction 1–2(d), 592 Cumulative effect of changes in

upon approval by the Board. accounting principles.
[42 FR 35017, July 7, 1977, as amended at 67 This account shall include the cumu-
FR 57533, Sept. 11, 2002] lative effect of changing to a new ac-
counting principle, after giving effect
570 Extraordinary items (net). of income tax consequences, in accord-
ance with instruction 1–2(d), upon ap-
(a) This account shall include ex-
proval by the Board.
traordinary items accounted for during
the current accounting year in accord- FORM OF INCOME STATEMENT
ance with the text of instruction 1–2(d), I. Ordinary Items
upon submission of a letter from the 501 Railway operating revenues (exclusive of trans-
carrier’s independent accountants, ap- fers from government authorities) ............................ ..........
503 Railway operating revenues (amortization of
proving or otherwise commenting on deferred transfers from government authorities) ..... ..........
the item and upon approval by the 502 Railway operating revenues (amortization of
Board. deferred transfers from government authorities ...... ..........
531 Railway operating expenses .............................. ..........
(b) This account shall be maintained
in a manner sufficient to identify the Net Revenue from Railway Operation 1 ............... ..........
nature and gross amount of each debit
II. Other Income
and credit.
506 Revenues from property used in other than car-
(c) Income tax consequences of rier operations .......................................................... ..........
charges and credits to this account 510 Miscellaneous rent income ................................ ..........
512 Separately operated properties—profit .............. ..........
shall be recorded in account 590, ‘‘In- 513 Dividend income ................................................. ..........
come taxes on extraordinary items,’’ or 514 Interest income ................................................... ..........
account 591, ‘‘Provision for deferred 516 Income from sinking and other funds ................ ..........
517 Release of premiums on funded debt ............... ..........
taxes—extraordinary items.’’ 518 Reimbursements received under contracts and
agreements .............................................................. ..........
590 Income taxes on extraordinary 519 Miscellaneous income ........................................ ..........
items. Income from affiliated companies:
Dividends .............................................................. ..........
This account shall include the esti- Equity in undistributed earnings (losses) ............. ..........
mated income tax consequences (debit Total income from affiliated companies ........ ..........
or credit) assignable to the aggregate
of items of both taxable income and de- Total other income ........................................ ..........
ductions from taxable income which Total income .................................................. ..........

for accounting purposes are classified
as unusual and infrequent, and are re- III. Miscellaneous Deductions From Income
corded in account 570, ‘‘Extraordinary 534 Expenses of property used in other than carrier
operations ................................................................. ..........
Items (Net).’’ The tax effect of any tim- 535 Taxes on property used in other than carrier
ing differences caused by recognizing operations ................................................................. ..........
an item in the account provided for ex- 543 Miscellaneous rent expense .............................. ..........
544 Miscellaneous taxes ........................................... ..........
traordinary items in different periods 545 Separately operated properties-loss .................. ..........
in determining accounting income and 549 Maintenance of investment organization ........... ..........
taxable income shall be included in ac- 550 Income transferred under contracts and agree-
ments ........................................................................ ..........
count 591, ‘‘Provision for deferred 551 Miscellaneous income charges .......................... ..........
taxes—extraordinary items.’’ 553 Uncollectible accounts ....................................... ..........
Total miscellaneous deductions .................... ..........

591 Provision for deferred taxes—ex-
traordinary items. Income available for fixed charges ............... ..........
IV. Fixed Charges
This account shall include debits or
546 Interest on funded debt:
credits for the current accounting pe- (a) Fixed interest not in default ............................ ..........
riod for income taxes deferred cur- (b) Interest in default ............................................ ..........
rently, or for amortization of income 547 Interest on unfunded debt .................................. ..........
548 Amortization of discount on funded debt ........... ..........
taxes deferred in prior accounting peri-
ods applicable to items of revenue or Total fixed charges ........................................ ..........
expense included in account 570, ‘‘Ex- Income after fixed charges ............................ ..........
traordinary Items (Net).’’ (See instruc- V. Other Deductions

tion 1–10.) 546 Interest on funded debt: (c) Contingent interest ..........
107
FORM OF INCOME STATEMENT—Continued 601.5 Prior period adjustments to be-

VI. Unusual or Infrequent Items ginning retained earnings account.
555 Unusual or infrequent items (debt) credit .......... .......... This account shall include adjust-
Income (loss) from continuing operations (before ments net of assigned income taxes, in
income taxes) .................................................... ..........
accordance with the text of instruction
VII. Provision for Income Taxes
1–2(d), to the balance in the retained
556 Income taxes on ordinary income: earnings account at the beginning of
Federal income taxes ........................................... ..........
the calendar year, upon approval by
State income taxes ............................................... ..........
Other income taxes .............................................. ..........
the Board.
557 Provision for deferred taxes ............................... ..........
Income from continuing operations ...................... ..........
602 Credit balance transferred from
VIII. Discontinued Operations
income.
560 Income or loss from operations of discontinued This account shall show the net cred-
segments (less applicable income taxes of $lll .......... it balance brought forward from the in-
562 Gain or loss on disposal of discontinued seg- come account for the calendar year.
ments (less applicable income taxes of $lll ....... ..........
603 Appropriations released.
Income (loss) before extraordinary items ..... ..........
This account is provided to return to
IX. Extraordinary Items and Accounting Changes unappropriated retained earnings the
570 Extraordinary items (net) .................................... .......... amount of appropriations no longer re-
590 Income taxes on extraordinary items ................. .......... quired. The account shall be subdivided
591 Provision for deferred taxes—extraordinary to show the nature of the appropria-
items ......................................................................... .......... tions being released and the cir-
Total extraordinary items ............................... .......... cumstances of the release shall be fully
described.
592 Cumulative effect of changes in accounting
principles (less applicable income taxes of $lll .. .......... 606 Other credits to retained earnings.
Net income .................................................... .......... This account shall include other
credit adjustments, net of assigned in-
1 Reconciliation of net railway operating income come taxes, not provided for elsewhere
(NROI):
in this system but only after such in-
Net revenues from railway operations ................. ..........
(556) Income taxes on ordinary income ................... ..........
clusion has been authorized by the
(557) Provision for deferred income taxes ................ .......... Board.
(560) Taxes applicable to income or loss from oper-
ations of discontinued segments ............................. ..........
(562) Taxes applicable to gain or loss on disposal
Debit
of discontinued segments ........................................ ..........
Income from lease of road and equipment (for- 611 Debit balance (at beginning of cal-
merly account 509) ........................................... .......... endar year).
Rent for leased roads and equipment (formerly
account 542) ..................................................... .......... This account shall include the net
debit balance in the retained earnings
Net railway operating income ........................ .......... account at the beginning of the cal-
endar year.
(49 U.S.C. 304, 320)
612 Debit balance transferred from in-
FR 30558, July 17, 1978; 67 FR 57533, Sept. 11, come.
2002] This account shall show the net debit
balance brought forward from the in-
RETAINED EARNINGS ACCOUNTS come account for the calendar year.
616 Other debits to retained earnings.
Credit (a) This account shall include losses
from resale of reacquired capital stock,
601 Credit balance (at beginning of and charges which reduce or write-off
calendar year). discount on capital stock issued by the
This account shall include the net company, but only to the extent that
credit balance in the retained earnings such charges exceed credit balances in
account at the beginning of the cal- account 795, ‘‘Other capital,’’ applica-
endar year. ble to net gains from reacquisition and
108
resale or retirement of such subclass of GENERAL BALANCE SHEET

capital stock. See instruction 5–4. ACCOUNTS EXPLANATIONS
(b) This account shall also include
other debit adjustments, net of as-
Assets
signed income taxes, not provided for
elsewhere in this system but only after
CURRENT ASSETS
such inclusion has been authorized by
the Board. 701 Cash.
620 Appropriations for sinking and (a) This account shall include money,
other funds. checks, sight drafts, and sight bills of
exchange in the hands of the account-
This account shall be charged and ac- ing company’s financial officers and
count 797, ‘‘Retained earnings; Appro- agents, or in transit from its agents
priated,’’ shall be credited with and conductors for which such agents
amounts appropriated pursuant to pro- and conductors have received credit. It
visions of reorganization plans, mort- shall include, also, deposits with banks
gages, deeds of trust, or other con- and trust companies available for use
tracts requiring payments into sinking on demand, and savings accounts sub-
funds, capital funds, and other funds. ject to the usual clause reserving the
right to defer payment for a specified
621 Appropriations for other pur- number of days.
poses. (b) The amount of checks and drafts,
This account shall be charged and ac- which have been transmitted to payees
count 797, ‘‘Retained earnings; Appro- and which remain unpaid at the close
priated,’’ shall be credited with the of the accounting period, shall be cred-
amount of appropriations for general ited to this account. When the amount
contingencies, indefinite possible fu- of such checks and drafts cannot be de-
termined with absolute accuracy, an
ture losses and other corporate pur-
estimate of the amount shall be used.
poses not provided for elsewhere. The
Amounts not transmitted to payees
appropriations shall be released when
shall be included in the appropriate li-
their respective purposes have been ability accounts.
served.
NOTE: Compensating balances under an
agreement which legally restricts the use of
623 Dividends. such funds shall not be included in this ac-
This account shall be charged with count. Such balances shall be included in ac-
the amount of dividends declared on count 703, ‘‘Special Deposits,’’ or 717, ‘‘Other
Funds,’’ as appropriate.
actually outstanding capital stock
issued or assumed by the company. If 702 Temporary cash investments.
the dividend is not payable in cash, the
securities or other property to be This account shall include the cost of
distribruted shall be described with securities and other obligations ac-
sufficient particularity to identify the quired for the purpose of temporarily
investing cash, such as United States
distribution. This account shall be sub-
Treasury certificates, marketable secu-
divided to show separately the divi-
rities, time drafts receivable, demand
dends declared on the various sub-
loans, time loans, time deposits with
classes of capital stock. banks and trust companies, and other
NOTE: This account shall not include similar investments of a temporary
charges for dividends on capital stock issued
character, which are readily convert-
or assumed by the company and owned by it,
ible into cash at substantially their re-
whether pledged as collateral or held in its
treasury, in special deposits, or sinking or
corded cost.
other funds. This account shall be subdivided to
reflect the marketable equity securi-
ties portion (and its corresponding
valuation allowance) and other tem-
porary investments. (See instruction 5–

2.)
109
703 Special deposits. NOTE: The amount to be entered in this ac-

count is not the net balance between this ac-
This account shall include cash de- count and account 752, ‘‘Accounts payable;
posits, either placed in the hands of Interline and other balances.’’ Net credit bal-
trustees or under the direct control of ances payable to other companies shall be in-
the reporting company, which are re- cluded in account 752.
stricted for specific purposes. Examples
are those deposits made for the pay- 706 Accounts receivable; customers.
ment of dividends and interest due This account shall include amounts
within one year, the liquidation of currently due from customers for
other current liabilities, to guarantee transportation and other charges inci-
fulfillment of current contract obliga- dental to transportation, and from
tions to meet specific operating re- agents and other representatives
quirements, or compensating balances charged with the collection or custody
(See definition 10) under an agreement of current revenues.
which legally restricts the use of such
NOTE: Amounts advanced to general and
funds, and which constitute support for special agents as working funds shall be in-
short-term borrowing arrangements. cluded in account 710, ‘‘Working funds.’’
Subaccounts may be set up, if nec-
essary, to account for special deposits 707 Accounts receivable; other.
for specific purposes.
NOTE: Deposits available for general com-
This account shall include amounts
pany purposes shall be included in account due in audited accounts, such as those
701, ‘‘Cash.’’ due from the United States or other
Governments for the transportation of
FR 57533, Sept. 11, 2002]
mails and Government property, and
from express companies for express fa-
704 Loans and notes receivable. cilities furnished under contract; mis-
cellaneous bills against other railway
This account shall include the book
companies, corporations, firms, and in-
value of all collectible obligations in
dividuals; and other similar items.
the form of demand or time loans and
notes receivable, or other similar evi- NOTE A: The amount to be entered in this
dences (except interest coupons) of account is not the net balance between this
money receivable within a time not ex- account and account 754, ‘‘Accounts payable;
Other.’’
ceeding one year from date of issue.
NOTE B: Amounts due from affiliated com-
NOTE A: Current loans and notes receivable panies for miscellaneous bills and other
from affiliated companies shall be included items subject to current settlement shall be
in account 708.5, ‘‘Receivables from affiliated included in account 708.5, ‘‘Receivables from
companies.’’ affiliated companies.’’
NOTE B: Obligations held as investments
which mature more than one year after date 708 Interest and dividends receivable.
of issue shall be included in accounts 721,
‘‘Investments and advances: Affiliated com- This account shall include the
panies,’’ or 722, ‘‘Other investments and ad- amount of interest accrued to the date
vances,’’ as appropriate. of the balance sheet on bonds, mort-
NOTE C: Loans and notes receivable ac- gages, notes, and other commercial
quired for the purpose of temporarily invest- paper owned, on loans made, open ac-
ing cash shall be included in account 702,
‘‘Temporary cash investments.’’
counts, bank deposits, and the amount
of dividends declared on stocks owned,
705 Accounts receivable; interline and and dividends accrued on such stocks
other balances. when contracts require that the divi-
dends be paid at stated times.
This account shall include the net
debit balances receivable from other NOTE A: No amount representing interest
companies representing items such as or dividends receivable shall be included in
this account unless its payment is reason-
interline freight, passenger, switching,
ably assured by past experience, anticipated
and baggage revenues, charges for provision, or otherwise.
equipment interchanged on a per diem NOTE B: No dividends or other returns on
or mileage basis, and charges, for car securities issued or assumed by the account-
repairs, loss and damage freight ing company shall be included in this ac-
claims, and overcharge claims. count.
110
NOTE C: If settlement of amounts included may become uncollectible, and shall be
in this account is not made when due, such maintained to show the amount of each
amounts that are not subject to current set- separate allowance set out below and
tlement shall be transferred to account 741,
‘‘Other assets,’’ at their estimated realizable
the amounts of debits and credits
value. Items of current character but of thereto:
doubtful value, as well as noncurrent items, (a) Allowance for receivables applica-
shall be written off to the extent of any esti- ble to transportation operations. Cred-
mated uncollectible portion by charge to ac- its to this subdivision shall be concur-
count 553, ‘‘Uncollectible accounts’’. If notes rently charged to account 63–60–00,
are taken in settlement of amounts included
‘‘Uncollectible Accounts; General and
in this account, the amounts shall be trans-
ferred to account 704, ‘‘Loans and notes re- administrative.’’
ceivable,’’ or account 741, as appropriate. (b) Allowances for receivables not ap-
(See instruction 5–1.) plicable to transportation operations.
NOTE D: Current interest and dividends re- Credits to this subdivision shall be con-
ceivable from affiliated companies shall be currently charged to account 553, ‘‘Un-
included in account 708.5, ‘‘Receivables from collectable accounts.’’
affiliated companies,’’ and noncurrent
amounts receivable shall be included in ac- [42 FR 35017, July 7, 1977, as amended at 67
count 721, ‘‘Investments and advances; Affili- FR 57533, Sept. 11, 2002]
ated companies.’’
710 Working funds.
708.5 Receivables from affiliated com-
panies. This account shall include amounts
advanced to general and special agents,
This account shall include amounts and to other officers and employees, as
due from affiliated companies which working funds from which certain ex-
are subject to current settlement such penditures are to be made and ac-
as deposits, demand or time loans, counted for. It also includes advances
notes receivable, interest, dividends, to fast freight lines and to demurrage
miscellaneous bills and similar items. and other bureaus.
NOTE: Receivables from affiliated compa-
nies, representing net debit balances for NOTE: Advances to jointly owned or used
items such as operating revenues, charges terminal companies and other companies for
for equipment interchanged, car repairs and permanent working funds or capital purposes
claims, shall not be included in this account shall be included in accounts 721, ‘‘Invest-
but in account 705, ‘‘Accounts receivable; ments and advances; Affiliated companies,’’
Interline and other balances.’’ or 722, ‘‘Other investments and advances,’’ as
appropriate.
709 Accrued accounts receivable.
711 Prepayments.
This account shall include estimates
of all unaudited current items receiv- This account shall include the bal-
able by the carrier to the date of the ances in the accounts representing
balance sheet, including those which short-term prepaid rents chargeable to
are creditable to revenue, expense, or the appropriate rent accounts as the
income accounts. Among the items term is consumed for which the rents
which shall be included in this account are paid; also short-term interest, and
are: insurance premiums, taxes and li-
censes, and similar items paid in ad-
Amounts receivable from others for unre- vance of their accrual, which are to be
ported interline traffic.
apportioned and charged, as they ac-
Amounts receivable from others for use of fa-
cilities, including equipment, for which crue, to the appropriate accounts.
bills have not been rendered.
Amounts receivable from others for services 712 Material and supplies.
for which bills have not been rendered. (a) This account shall include the
Rents receivable for which bills have not
balances representing the cost of all
been rendered.
unapplied material, such as road and
shop material, articles in process of
709.5 Allowance for uncollectible ac- manufacture by the accounting com-
counts. pany, fuel, stationery, and dining car
This account shall be credited with and other supplies. In determining the
amounts provided for receivables which cost of material and supplies suitable
111
allowance shall be made for any pur- to which the classes of material are or-
chase discounts allowed. The cost shall dinarily chargeable. Other differences
include all specifically assignable shall be equitably apportioned among
transportation charges incurred in ob- the primary accounts to which mate-
taining the delivery of such materials rial has been charged since the last in-
and supplies upon the premises of the ventory. (Also see instruction 5–1(b).)
carrier including loading and unload- NOTE: Balances representing the cost of
ing, and a suitable proportion of pur- unapplied construction material and supplies
chasing and store expenses. The cost located at the point of use, which have been
purchased for projected new roads and exten-
shall also include sales and excise sions, or for new railroad equipment, shall be
taxes on material purchases; however, included in account 90, ‘‘Construction in
sales and excise taxes may be charged progress.’’
to account 65–60–00, ‘‘Other taxes; Gen-
eral and administrative,’’ provided this FR 57533, Sept. 11, 2002]
procedure will not adversely affect the
accounts and is consistently followed. 713 Other current assets.
Taxes on gasoline, other motor fuel, This account shall include amounts
and motor oil are also includible in for other current assets which are not
this account. includible in the foregoing current
(b) Materials recovered for reuse in asset accounts.
connection with construction, mainte-
nance, or the retirement of property 714 Deferred income tax debits.
shall be charged to this account at
This account shall include the cur-
cost, or average cost, estimated if not
rent portion of deferred income tax
known, less accumulated depreciation,
debits and credits determined in ac-
if any, plus the cost to restore the ma-
cordance with Instruction 1–10, when
terials to a serviceable condition, or
the balance is a net debit. A net credit
current market value, whichever is
balance shall be included in account
lower. (See definition 31, Salvage value.)
762, ‘‘Deferred income tax credits’’.
(c) Scrap and other nonusable mate-
rials, including obsolete parts, shall be (49 U.S.C. 10321, 11145; 5 U.S.C. 553)
included in account 713, ‘‘Other current [47 FR 12350, Mar. 23, 1982]
assets,’’ at the estimated salvage value
when the sale of the materials is immi- SPECIAL FUNDS
nent and there is a relatively firm mar-
ket price. Obsolete parts not subject to 715 Sinking funds.
imminent sale shall be included in ac- (a) This account shall include the
count 741, ‘‘Other assets,’’ at their net amount of cash, the ledger value of live
realizable value. securities of other companies, and
(d) Material and supplies shall be other assets which are held by trustees
credited to this account and charged to of sinking and other funds for the pur-
the appropriate operating expense or pose of redeeming outstanding obliga-
other account on the basis of recorded tions, including such assets held in the
cost, average cost, or other recognized hands of the accounting company’s
pricing system, provided that such sys- treasurer when the assets are seg-
tem is consistently applied and is based regated in a distinct fund.
on the cost of such material and sup- (b) This account shall include
plies. amounts deposited with trustees on ac-
(e) An inventory of material and sup- count of mortgaged property sold,
plies shall be taken during each cal- where the proceeds are held for the re-
endar year and the necessary adjust- demption of securities; and also the par
ments to bring this account into har- value (or the amount recorded for no
mony with the actual inventory bal- par stock) of live securities issued or
ances shall be made in the accounts of assumed by the accounting company
the year in which the inventories are and held in such funds.
taken. In effecting this adjustment, de- (c) A separate subaccount shall be
termined differences in accounting for kept for each fund. The title of each
important classes of material shall be subaccount shall designate the obliga-

equitably assigned among the accounts tion redeemable from the fund.
112
NOTE: In stating the balance sheet in the for specific purposes not provided for
annual reports to the Board the total elsewhere; also the par value (or the
amount of the funds and the par value (or amount recorded for no par stock) of
the amount recorded for no par stock) of se-
curities issued or assumed by the accounting
securities issued or assumed by the ac-
company and held in the funds shall be counting company and held in such
shown in the short columns, and the net funds. A separate subaccount shall be
amount of the funds (total amount less secu- kept for each fund.
rities issued or assumed) shall be shown in NOTE A: Sinking funds and capital funds
the long column. are provided for in accounts 715, ‘‘Sinking
funds,’’ and 716, ‘‘Capital funds,’’ respec-
716 Capital funds. tively.
(a) This account shall include cash NOTE B: In stating the balance sheet in the
and the ledger value of other assets annual reports to the Board, the total
held by trustees or by the accounting amount of the funds and the par value (or
the amount recorded for no par stock) of se-
company’s treasurer when segregated
curities issued or assumed by the accounting
in distinct funds that have been (1) re- company and held in the funds shall be
alized from the sale of equipment obli- shown in the short columns, and the net
gations or other long-term obligations amount of the funds (total amount less secu-
and not yet applied toward the specific rities issued or assumed) shall be shown in
purposes for which the obligations were the long column.
incurred, and (2) set aside in accord- NOTE C: This account shall not include
ance with governmental, mortgage, or funds held by the accounting company solely
as trustee and in which it has no beneficial
contractual requirements in connec-
interest.
tion with reorganizations or otherwise. NOTE D: This account shall include com-
This account shall also include funds pensating balances (see definition 10) under
deposited with trustees to be held until an agreement which legally restricts the use
mortgaged property sold is replaced. of such funds and which constitute support
(b) An appropriate record shall be for long-term borrowing arrangements.
maintained for securities issued or as- [42 FR 35017, July 7, 1977, as amended at 67
sumed by the accounting company and FR 57533, Sept. 11, 2002]
held in the funds, identifying those
that are nominally issued or nominally INVESTMENTS
outstanding.
NOTE: Funds specifically set aside for sink- 721 Investments and advances; affili-
ing fund purposes shall be included in ac- ated companies.
count 715, ‘‘Sinking funds.’’ If one purpose of (a) This account shall include the
a capital fund is to provide contributions to
a sinking fund under specified conditions,
ledger value of the accounting com-
the entire amount of the fund shall be in- pany’s investment in securities issued
cluded in this account until the contribu- or assumed by affiliated companies
tions to the sinking fund are made, at which other than securities held in special de-
time the amounts thereof shall be trans- posits or special funds; and also invest-
ferred to account 715. ment advances made to affiliated com-
NOTE: The ledger value of assets of the panies not subject to current settle-
character indicated in paragraph (a)(2) of ment; notes receivable from affiliated
this section, shall be transferred to the ap-
propriate current asset account when the as-
companies which mature later than 1
sets are definitely assigned in advance of ex- year from date of the balance sheet;
penditure to the payment of interest or and similar noncurrent items of affili-
other current liabilities payable within one ated companies.
year. (b) This account shall be maintained
in such manner as to show each of the
717 Other funds. following classes of investment in each
This account shall include the affiliated company:
amount of cash and the ledger value of (1) Stocks.
securities of other companies and other (2) Bonds.
assets which are in the hands of trust- (3) Other secured obligations.
ees or managers of insurance, employ- (4) Unsecured notes.
ees’ pension, savings, relief, hospital, (5) Investment advances.
and other funds which have been raised (c) A complete record of securities
and specifically set aside or invested pledged shall be maintained to show
113
separately the ledger value of securi- shall not be included in this account. A
ties pledged and unpledged in the an- memorandum record shall be kept.
nual report to the Board. NOTE D: The value of securities pledged for
purposes other than that of security for
NOTE A: Accounts with affiliated compa- funded debt or short-term loans shall be in-
nies which are subject to current settlement, cluded in accounts 715, ‘‘Sinking funds,’’ 716,
if their collection is reasonably assured, ‘‘Capital funds,’’ or 717, ‘‘Other funds,’’ as ap-
shall be classed as current assets, and if set- propriate.
tlement is deferred beyond one year such
items shall be transferred to this account.
FR 57533, Sept. 11, 2002]
NOTE B: The term affiliated companies
(also see definition 5(a)) includes:
721.5 Adjustments; investments and
1. Controlled companies, including compa-
nies solely controlled by the accounting
advances—affiliated companies.
company, and also companies jointly con- (a) This account shall be credited
trolled by the accounting company and oth- with amounts charged to account 551,
ers under a joint arrangement. ‘‘Miscellaneous income charges,’’ to
2. Controlling companies, including both provide for impairment in the value of
companies solely controlling the accounting investment securities and other assets
company, and companies which jointly con-
included in account 721, ‘‘Investments
trol the accounting company under a joint
arrangement. and advances; affiliated companies.’’
3. Companies controlled by controlled com- (b) If provision is made for antici-
panies. pated losses in specific assets, when the
4. Companies controlled by controlling assets are written down or written off,
companies. or are sold or otherwise disposed of at
By control (also see definition 5(a)) is a loss, the reduction in the book value
meant the ability to determine the ac- or the losses sustained shall be charged
tion of a corporation. For the purposes to this account to the extent of the
of this account, the following are to be credit balance in the account applica-
considered forms of control: ble to the particular items involved,
and the remainder, if any, shall be
(a) Right through title to securities
charged to account 551, ‘‘Miscellaneous
issued or assumed to exercise the
income charges.’’ Where a general pro-
major part of the voting power in the
vision for losses in unspecified asset
controlled corporation.
values is maintained, all such losses re-
(b) Right through agreement or
sulting from write-downs, write-offs,
source other than title to securities, to etc., shall be charged to this account to
name the majority of the board of di- the extent of the total credit balance
rectors, managers, or trustees of the in the account, and the remainder, if
controlled corporation. any, shall be charged to account 551,
(c) Right to foreclose a first lien upon ‘‘Miscellaneous income charges.’’
all or a major part in value of the tan-
gible property of the controlled cor- 722 Other investments and advances.
poration. (a) This account shall include the
(d) Right to secure control because of ledger value of the accounting com-
advances made for construction of the pany’s investment in securities issued
operating property of the controlled or assumed by nonaffliated companies
corporation. other than securities held in special de-
(e) Right to control only in a specific posits or special funds; and also invest-
respect the action of the controlled ment advances made to nonaffiliated
corporation. companies not subject to current set-
A leasehold interest in the property of tlement; notes receivable from non-
a corporation is not considered a form affiliated companies which mature
of control over the lessor corporation. later than 1 year from date of the bal-
Sole control is that which rests in one ance sheet; and similar noncurrent
corporation. items of nonaffiliated companies.
Joint control is that which rests in (b) This account shall be maintained
two or more corporations and which is in such manner as to show each of the
held under a joint arrangement. following classes of investment in each
NOTE C: The value of securities borrowed nonaffiliated company:

by the accounting company and pledged (1) Stocks.
114
(2) Bonds. 724 Allowance for net unrealized loss

(3) Other secured obligations. on noncurrent marketable equity
(4) Unsecured notes. securities—Cr.
(5) Investment advances.
This account shall reflect the
(c) A complete record of securities
amount by which aggregate cost ex-
pledged shall be maintained to show
ceeds market value for the noncurrent
separately the ledger value of securi-
ties pledged and unpledged in the an- marketable equity securities found in
nual report to the Board. accounts 721 and 722. This account
shall be debited or credited so that the
NOTE A: Accounts with nonaffiliated com-
panies which are subject to current settle-
balance at the balance sheet date shall
ment, if their collection is reasonably as- reflect such difference. (Refer to in-
sured, shall be classed as current assets, and struction 5–2.)
if settlement is deferred beyond one year This account shall not include amounts
such items shall be transferred to account
by which aggregate cost exceeds mar-
741, ‘‘Other assets.’’
NOTE B: The term nonaffiliated companies ket value if such differences are judged
includes all companies other than those de- to be other than temporary. (Such dif-
fined as affiliated in note B of account 721, ferences should be charged to account
‘‘Investments and advances: Affiliated com- 723.)
panies.’’
NOTE C: The value of securities borrowed TANGIBLE PROPERTY
by the accounting company and pledged
shall not be included in this account. A 731 Road and equipment property.
memorandum record shall be kept.
NOTE D: The value of securities pledged for This account shall include the ac-
purposes other than that of security for counting company’s investment in road
funded debt or short-term loans shall be in- and equipment (including that held
cluded in accounts 715, ‘‘Sinking funds,’’ 716, under contract for purchase), used or
‘‘Capital funds,’’ or 717, ‘‘Other funds,’’ as ap-
propriate. held for use as transportation property
in existence at the date of the balance
723 Adjustments; other investments sheet. When property is retired from
and advances. service, this account shall be credited
(a) This account shall be credited with the ledger value of the property
with amounts charged to account 551, retired.
‘‘Miscellaneous income charges,’’ to NOTE A: This account shall not include any
provide for impairment in the value of items representing titles to securities.
investment securities and other assets NOTE B: When equipment or other property
included in account 722, ‘‘Other invest- is acquired under an agreement which pro-
ments and advances.’’ vides that the cost shall be paid in install-
(b) If provision is made for antici- ments, the cost (its money value at time of
purchase) shall be charged to the appropriate
pated losses in specific assets, when the
road and equipment accounts at the time the
assets are written down or written off, equipment is delivered to the carrier, and in-
or are sold or otherwise disposed of at cluded in this account in the same manner as
a loss, the reduction in the book value the cost of equipment purchased outright.
or the losses sustained shall be charged When the par value of notes or other securi-
to this account to the extent of the ties issued in payment, or in part payment,
credit balance in the account applica- for such equipment is more (or less) than the
ble to the particular items involved, actual cash value of the equipment at the
and the remainder, if any, shall be time of the purchase, or of the proportion to
charged to account 551. ‘‘Miscellaneous which the securities are applicable, the dif-
income charges.’’ Where a general pro- ference between the par value of the securi-
vision for losses in unspecified asset ties and the actual cash value of the equip-
ment, or of the proportion paid for by the se-
values is maintained, all such losses re-
curities, shall be charged (or credited) to the
sulting from write-down, write-offs, proper discount and premium accounts.
etc., shall be charged to this account to NOTE C: Held for use, as referred to above,
the extent of the total credit balance implies the ability of the carrier to substan-
in the account, and the remainder, if tiate within a reasonable period of time, by
any shall be charged to account 551, plan or policy, the probable future use which
‘‘Miscellaneous income charges.’’ is to be made of the property.
115
732 Improvements on leased property. to leased property applicable to defense

(a) This account shall include the projects, the cost of which is included
cost of improvements made by the les- in account 732, ‘‘Improvements on
see to property which is held under leased property.’’ This account shall be
lease from others or through control of charged with the amount of the credit
the company owning the property, balance applicable to specific property
where such improvements are used by at the time the property is retired. The
the lessee in transportation service, accounting company shall maintain
and the lessee is not to be reimbursed separate subaccounts for amortization
by the lessor for such improvements. of (1) road property and (2) equipment.
(See instruction 2–18.)
(b) The carrier’s records shall be kept 735 Accumulated depreciation; road
in such manner as to show the debits and equipment property.
and credits to this account in accord- (a) This account shall be credited
ance with the provisions for road and with amounts concurrently charged to
equipment. operating expenses or other authorized
NOTE A: This account shall not include any accounts to cover the loss in service
itmes representing titles to securities. value of depreciable road and equip-
NOTE B: When the lessor company includes ment property. It shall also include ad-
in account 731, ‘‘Road and equipment prop-
erty,’’ the cost of improvements made by the justments which the Board may au-
lessee to property, leased by it from the les- thorize the accounting company to
sor and settlement is not made at the time make such as adjustments for past ac-
for the cost thereof, the lessee, pending set- cruals of depreciation, and provision
tlement with the lessor, shall include the for material abandonment or other
cost thereof in account 721, ‘‘Investments losses applicable to nondepreciable
and advances; Affiliated companies,’’ or 722,
property.
‘‘Other investments and advances,’’ as appro-
priate. (b) The service value of each unit of
depreciable property retired (and also
733 Accumulated depreciation; im- of each minor item, less than a unit,
provements on leased property. retired and not replaced) shall be
(a) This account shall be credited charged to this account. This account
with amounts concurrently charged to shall also be charged for amounts for
operating expenses or other authorized losses applicable to nondepreciable
accounts for depreciation accrued on property retired for which provision
improvements to leased property, the was previously made by approval of the
cost of which is included in account Board, and any resultant adjustment of
732, ‘‘Improvements on leased prop- such provision shall be referred to the
erty.’’ Board for consideration and decision.
(b) The service value of each unit of (c) Comprehensive instructions per-
property retired (and also of each taining to depreciation accounts, rates
minor item, less than a unit, retired of depreciation, and records to be
and not replaced) for which this accu- maintained, are contained in instruc-
mulated depreciation account has been tion 4.
established shall be charged to this ac-
count. 736 Accumulated amortization; road
(c) Instructions for depreciation ac- and equipment property—defense
counts, rates of depreciation, and project.
records to be maintained, as contained This account shall include the
in instruction 4 for owned property, amount of accumulated past provisions
shall also apply to improvements on for amortization of road and equipment
leased property. defense projects, the cost of which is
included in account 731, ‘‘Road and
734 Accumulated amortization; im- equipment property.’’ This account
provements on leased property—de- shall be charged with the amount of
fense projects. the credit balance applicable to spe-
This account shall include the cific property at the time the property
amounts of accumulated past provi- is retired. The accounting company

sions for amortization of improvements shall maintain separate subaccounts
116
for amortization of (1) road property essary and proper in organizing the en-
and (2) equipment. terprise.
NOTE: Cost of soliciting for loans or for the
737 Property used in other than car- sale of bonds or other evidences of indebted-
rier operations. ness shall be charged to balance sheet ac-
count 743, ‘‘Other deferred debits.’’ (See in-
This account shall include the ac- struction 5–3.)
counting company’s investment in
property other than property assign- OTHER ASSETS AND DEFERRED DEBITS
able to accounts 731, ‘‘Road and equip-
ment property,’’ and 732, ‘‘Improve- 741 Other assets.
ments on leased property,’’ such as ho- This account shall include the esti-
tels, restaurants, powerplants, which mated value of salvage recoverable
are not operated by the accounting from property retired when the recov-
company or another carrier in connec- ery of the salvage is deferred for any
tion with its transportation service. reason. (See instruction 2–5 and 2–7.)
ITEMS OF INVESTMENT This account shall also include the es-
timated realizable amount for other as-
Coal and other mines. sets of doubtful value, collection of
Commercial power plants.
which within one year is not assured;
Hotels and restaurants.
Lands and buildings not used in transpor- also other deferred assets and miscella-
tation operations. neous assets not otherwise provided for
Lands and other property acquired and held in general balance sheet accounts. (See
in anticipation of future use. instruction 5–1.)
Mineral and timber lands.
Rails and other track material leased to oth- 743 Other deferred debits.
ers. (a) This account shall include the
Saw mills and other manufacturing plants
amount of debit balances in suspense
not operated in connection with transpor-
tation service. accounts that cannot be cleared and
disposed of until additional informa-
738 Accumulated depreciation; prop- tion is received, such as frieght claims
erty used in other than carrier op- paid when found to be correct, but in
erations. advance of investigation with other
carriers; unextinguished discount on
This account shall be credited with
short-term notes; unadjusted debit
amounts charged to income or other
items not otherwise provided for and
authorized accounts for depreciation
similar items the proper disposition of
accrued on property, the cost of which
which is uncertain
is included in account 737, ‘‘Property
(b) This account shall also include
used in other than carrier operations.’’
the aggregate amount of the expenses
When such property is destroyed, sold,
incurred in connection with the
or otherwise retired from service, this
issuance of each class of the carrier’s
account shall be charged with the
outstanding long-term or equipment
amount of the credit balance applica-
obligations, such as fees for listing
ble to the property retired.
long-term obligations on stock ex-
INTANGIBLE PROPERTY changes, legal and other fees, cost of
tax stamps and similar items. (See ac-
739 Organization expenses. count 14.) Separate subdivisions shall
be maintained for each issue of such
This account shall include all fees
obligations. (See instruction 5–3.)
paid to governments for the privilege
of incorporation, and office and other [42 FR 35017, July 7, 1977, as amended at 67
expenditures incident to organizing the FR 57533, Sept. 11, 2002]
corporation and putting it in readiness
to do business; cost of preparing and 744 Accumulated deferred income tax
distributing prospectuses; special coun- debits.
sel fees; cost of preparing and issuing This account shall include the
certificates of stock; cost of procuring amount of deferred noncurrent income
the necessary certificates from State tax debits and credits determined in
authorities; and other like costs nec- accordance with Instruction 1–10 when
117
the balance is a net debit. A net credit equipment interchanged on a per diem
balance shall be included in account or mileage basis, and charges for car
786, ‘‘Accumulated deferred income tax repairs, loss and damage freight
credits’’. claims, and overcharge claims.
(49 U.S.C. 10321, 11145; 5 U.S.C. 553) NOTE: The amount to be entered in this ac-
count is not the net balance between this ac-
[47 FR 12350, Mar. 23, 1982] count and account 705, ‘‘Accounts receivable;
Interline and other balances.’’ Net debit bal-
Liabilities and Shareholders’ Equity ances receivable from other companies shall
be included in account 705.
CURRENT LIABILITIES 753 Audited accounts and wages pay-
751 Loans and notes payable. able.
(a) This account shall include the This account shall include the
balances representing obligations out- amount of audited vouchers or ac-
standing in the form of loans and notes counts and audited payrolls unpaid on
payable or other similar evidence (ex- the date of the balance sheet. It shall
cept interest coupons) of indebtedness include balances representing un-
payable on demand or within a time claimed wages and outstanding pay and
not exceeding one year from date of time or discharge checks issued in pay-
issue. ment of wages and all other unpaid
(b) This account shall be kept in such vouchered items.
form so as to show separately the NOTE: The amount of checks and drafts,
amounts of notes payable within one which have been transmitted to payees and
which remain unpaid at the close of the ac-
year from date of issue that are se-
counting period, shall be credited to account
cured by collateral. 701, ‘‘Cash.’’
NOTE A: Loans and notes payable to affili-
ated companies which are subject to current 754 Accounts payable; other.
settlement shall be included in account 757,
‘‘Payables to affiliated companies,’’ and non- This account shall include out-
current obligations in account 769, ‘‘Ac- standing drafts drawn by station
counts payable; Affiliated companies.’’ agents, conductors’ refund and extra-
NOTE B: This account shall not include ob- fare checks not presented for redemp-
ligations due within one year which are in- tion, taxes collected from employees
tended to be refinanced on a long-term basis. and others for the account of taxing
Long-term refinancing of short-term obliga- agencies, and other items of the nature
tions means: (1) Replacement with long-term
of demand liabilities not covered by ac-
obligations or equity securities, or (2) re-
newal, extension, or replacement with short- counts 751, 752, 753, 755, 756, and 757.
term obligations for an uninterrupted period NOTE A: The amount to be reported under
extending beyond one year from the balance this account is not the net balance between
sheet date. this account and account 707, ‘‘Accounts re-
The intention to refinance on a long-term ceivable; Other.’’
basis shall be supported by the ability to re- NOTE B: The amount of checks and drafts,
finance. Evidence of this ability includes ei- which have been transmitted to payees and
ther: (1) The actual issuance of an obliga- which remain unpaid at the close of the ac-
tion, after the balance sheet date but before counting period, shall be credited to account
the balance sheet is issued, or (2) before the 701, ‘‘Cash.’’ When the amount of such checks
balance sheet is issued, the existence of a fi- and drafts cannot be determined with abso-
nancing agreement which is long-term and lute accuracy an estimate of the amount
based on terms readily determinable with no shall be used.
existing violations of its provisions, and with NOTE C: Deposits and other items of affili-
a lender which is financially capable of hon- ated companies subject to current settle-
oring the agreement. ment shall be included in account 757,
‘‘Payables to affiliated companies.’’
752 Accounts payable; interline and
other balances. 755 Interest payable.
This account shall include the net This account shall include the
credit balances payable to other com- amount of matured and unpaid interest
panies representing items such as on funded debt, and other obligations
interline freight, passenger, switching of the accounting company for which

and baggage revenues, charges for provision has been made for current
118
settlement. This account shall also in- persons, loss and damage, and similar
clude the amount of interest subject to items.
current settlement accrued to the date Amounts payable (estimated if necessary)
within one year pursuant to agreements
of the balance sheet, but payable after with labor organizations or otherwise for
that date, on obligations of the ac- employees vacations now earned.
counting company.
NOTE: Interest payable on debt to affiliated 760 Federal income taxes accrued.
companies, if subject to current settlement,
This account shall be credited with
shall be included in account 757, ‘‘Payables
to affiliated companies.’’ Noncurrent inter- the amount accrued for Federal income
est shall be included in account 769, ‘‘Ac- taxes which has been concurrently
counts payable; Affiliated companies.’’ Inter- charged to the appropriate income or
est payable to others which is not paid when other authorized accounts. Credits to
it matures shall be included in account 781. this account that are based upon esti-
‘‘Interest in default,’’ if not subject to cur- mates shall be adjusted during the year
rent settlement. Where interest is in default, so that this account may show, as
subsequent accruals shall be credited di- nearly as practicable the approximate
rectly to account 781.
amount of the carrier’s unpaid liability
756 Dividends payable. for such taxes. Payments of taxes for
which accruals have been made shall be
This account shall include the debited to this account.
amount of dividends payable on capital
stock but unpaid, at the date of the 761 State and other income taxes ac-
balance sheet. crued.
NOTE: Dividends payable to affiliated com- This account shall be credited with
panies shall be included in account 757, the amounts accrued for state and
‘‘Payables to affiliated companies.’’
other income taxes which have been
757 Payables to affiliated companies. concurrently charged to the appro-
priate income or other authorized ac-
This account shall include amounts counts. Credits to this account that are
payable to affiliated companies which based upon estimates shall be adjusted
are subject to current settlement such during the year so that this account
as deposits, demand or time loans, may show, as nearly as practicable, the
notes payable, interest, dividends, mis- approximate amount of the carrier’s
cellaneous bills, and similar items. unpaid liability for such taxes. Pay-
NOTE: Payables to affiliated companies, ments of taxes for which accruals have
representing net credit balances for items been made shall be debited to this ac-
such as revenues, charges for equipment count.
interchanged, car repairs and claims, shall
not be included in this account but in ac- 761.5 Other taxes accrued.
count 752, ‘‘Accounts payable; Interline and
other balances.’’ (a) This account shall be credited
with the accruals of all taxes, other
759 Accrued accounts payable. than income taxes, which have been
This account shall include estimates concurrently charged to the appro-
of unaudited items payable by the car- priate income or other accounts for
rier to the date of the balance sheet, taxes. Such accruals may be based
including those which are chargeable upon estimates, provided such esti-
to revenue, expense, or income ac- mates shall be adjusted during the year
counts. Among the items which should so that this account may show, as
be included in this account are: nearly as practicable, the approximate
amount of the carrier’s unpaid liability
Rents payable. for such taxes. Payments of taxes for
Amounts payable to others for unreported which accruals have been made shall be
interline traffic. debited to this account.
Amounts payable to others for use of facili-
(b) The records supporting the en-
ties, including equipment, for which bills
have not been rendered.
tries in this account shall be kept to
Amounts payable to others for services for show separately by classes of taxes the
which bills have not been rendered. amount of the tax accruals for the cur-
Estimated amounts payable within one year rent year and adjustments of accruals
covering liability for claims for injuries to for prior years.
119
NOTE: Amounts for prepayments of taxes the accounting company or the pay-
shall be included in account 711, ‘‘Prepay- ment was assumed by the accounting
ments.’’ company after being issued as the debt
762 Deferred income tax credits. of other companies. (See account 764,
‘‘Equipment obligations and other
This account shall include the cur- long-term debt due within one year.’’)
rent portion of deferred income tax (b) The amounts included in this ac-
charges and credits determined in account shall be divided to show the par
cordance with Instruction 1–10 when value of (1) certificates or other evi-
the balance is a net credit. A net debit dences of funded debt (pledged and
balance shall be included in account unpledged) held in the company’s
714, ‘‘Deferred income tax debits’’. treasury, by its agents or trustees, or
(49 U.S.C. 10321, 11145; 5 U.S.C. 553) otherwise subject to its control, includ-
[47 FR 12350, Mar. 23, 1982] ing both those reacquired after actual
issue and those nominally but never
763 Other current liabilities. actually issued; and (2) certificates or
other evidences of funded debt issued
There shall be included in this ac-
count the principal amount of and actually outstanding, being those
unpresented bonds drawn for redemp- not held by the company, its agents or
tion through the operation of sinking trustees, or subject to its control.
and redemption fund agreements, also (c) The amounts included herein shall
the principal amount of unpresented be further divided so as to show the
fund debt obligations, and receivers’ amount of each class of funded debt, as
and trustees’ securities which have ma- follows:
tured (for which provision has been (1) Mortgage bonds. Bonds secured by
made for current settlement), and lien on physical property and not in-
other current liabilities not includible cludible in the other subdivisions of
in the foregoing current liability ac- this account.
counts. (2) Collateral trust bonds. Bonds and
notes secured by a lien on securities or
764 Equipment obligations and other other negotiable paper; and stock trust
long-term debt due within one year. certificates that are similar in char-
This account shall include the total acter to collateral trust bonds.
amount of bonds, equipment obliga- (3) Income bonds. Bonds which are a
tions, and other long-term debt, includ- lien on a carrier’s revenue alone, or
ing obligations maturing serially or bonds which, while being a lien on its
payable in installments which are due property and franchises, can claim pay-
and payable within one year, and for ment of interest only in case interest is
which arrangements for long-term refi- earned.
nancing have not been made (See note (4) Miscellaneous obligations. All fund-
B to account 751, ‘‘Loans and notes ed obligations not provided for by the
payable’’) or for which no sinking funds other subdivisions of this account, also
have been provided. This account shall notes, unsecured certificates of indebt-
be subdivided according to the dif- edness, debenture bond, plain bonds,
ferent classes of debt. real estate mortgages executed or as-
sumed and other similar obligations
LONG-TERM DEBT DUE AFTER ONE YEAR maturing more than one year from
date of issue, but excluding liabilities
765 Funded debt unmatured. for assessments for public improve-
(a) This account shall include the ments and those evidenced by condi-
total par value of unmatured debt tional or deferred equipment purchase
(other than equipment obligations), contracts for which provision is made
maturing more than one year from the in accounts 782, ‘‘Other liabilities,’’ and
close of the accounting period, includ- 766, ‘‘Equipment obligations,’’ respec-
ing obligations due within one year tively.
which are expected to be refinanced on (5) Receipts outstanding for funded
a long-term basis (see note B to ac- debt. Receipts for payments on account
count 751, ‘‘Loans and notes payable’’), of funded debt. When certificates are
whether the securities were issued by issued for such payments, the par value
120
shall be included in the account cov- shall be shown the amount actually out-
ering the class of funded debt for which standing.
the certificates are issued. [42 FR 35017, July 7, 1977, as amended at 67
(d) Each of the above classes shall FR 57533, Sept. 11, 2002]
also be divided into subclasses accord-
ing to differences in mortgage or other 766 Equipment obligations.
lien or security therefor, rate of inter- (a) This account shall include the par
est, interest dates, or date of maturity. value of equipment securities and the
Parts of any issue agreeing in other principal amount of contractual obli-
characteristics but maturing serially gations for the purchase of equipment,
may be treated as of the same subclass. excluding principal or obligations ma-
(e) Records shall be maintained in turing serially or payable in install-
such manner as to show (1) securities ments within one year from the close
the issuance or assumption of which of the accounting period, and including
has been authorized by the Board under obligations due within one year which
provisions of the Interstate Commerce are expected to be refinanced on a
Act, and similar securities issued or as- long-term basis (see account 764,
sumed prior to the effective date of ‘‘Equipment obligations and other
such provisions of the Act, and (2) long-term debt due within one year’’);
other obligations of a kind which may for explanation of long-term refi-
legally be issued or assumed without nancing, see note B to account 751,
such authorization. ‘‘Loans and notes payable.’’
NOTE A: Securities (other than equipment (b) The amounts included herein
obligations) maturing one year or less from shall be divided as follows:
date of issue shall be included in accounts (1) Principal amount of equipment
757, ‘‘Payables to affiliated companies,’’ 769, securities including those maturing se-
‘‘Accounts payable; Affiliated companies,’’ rially, issued or assumed by the ac-
or 751, ‘‘Loans and notes payable,’’ as appro- counting company or by receivers and
priate, except that where an issue of securi-
ties maturing serially over a period of years
trustees, which have been authorized
contains short-term obligations such obliga- by the Board under provisions of the
tions may be included as funded debt. Ma- Interstate Commerce Act and similar
ture funded debt shall be included in account securities issued or assumed prior to
763, ‘‘Other current liabilities,’’ if provision the effective date of such provisions of
has been made for current settlement. If no the act.
provision has been made for current settle- (2) Principal sums of obligations for
ment, matured funded debt shall be included equipment purchased under conditional
in account 768, ‘‘Debt in default,’’ except
that when the collection of matured funded
or deferred payment contracts, which
debt of affiliated companies is not enforced may be legally entered into or assumed
by controlling companies, the principal by the accounting company or by re-
amount (to the extent held by a controlling ceivers and trustees, without author-
company) shall be included in account 769, ization by the Board.
‘‘Accounts payable; Affiliated companies.’’
NOTE B: See definitions 3, actually issued; 766.5 Capitalized lease obligations.
4, actually outstanding; 25, nominally issued;
and 26, nominally outstanding.
(a) Long-term leases which are clear-
NOTE C: Nonnegotiable notes having a ma- ly in substance installment purchases
turity of more than one year after date of shall be capitalized. The liability under
issue, held by affiliated companies, shall be such leases which have been capitalized
included in account 769, ‘‘Accounts payable; in fixed asset accounts shall be re-
Affiliated companies.’’ corded in this account. (See instruction
NOTE D: Securities nominally issued or re- 2–20.)
acquired and held in the company’s treasury, (b) This account shall be kept so as
except securities held by trustees in sinking
to show the liability under each lease
or other funds, shall be included in a subdivi-
sion of this account. In the general balance obligation.
sheet statement the total unmatured funded NOTE A: The portion of the liability for
debt included in this account shall be shown long-term leases which is payable within 1
in the first short column. The amount nomi- year of the close of the accounting period is
nally but not actually issued and the amount includible in account 764, Equipment obliga-
nominally outstanding shall be shown in the tions and other long-term debt due within
second short column, and in the long column one year.
121
NOTE B: Leases which merely state the terest accrued on notes, matured fund-
right to use property and a related obliga- ed debt of affiliated companies and
tion to pay specific rents over a definite fu- open accounts included in this account,
ture period shall not be considered to be as-
when such interest is not subject to
sets and liabilities.
current settlements. The amounts in-
(49 U.S.C. 12, 20, 304, 913 and 1012) cluded herein shall be divided as fol-
[42 FR 56611, Oct. 27, 1977] lows:
(a) Notes, including not only non-
767 Receivers’ and trustees’ securities. negotiable notes that run longer than a
When receivers or trustees acting term of one year, but also such notes
under the orders of a court are in pos- payable on demand or within one year
session of the property of the company, from the date of issue when it is mutu-
and under the order of such court issue ally agreed that the notes shall not be
or assume evidences of indebtedness enforced as current assets by the hold-
(other than equipment securities or ob- er.
ligations) the par value of such evi- (b) Par value of matured funded debt
dences shall be credited to this ac- of affiliated companies held by control-
count. ling companies where there is no agree-
NOTE: The par value of equipment securi- ment for an extension of time and col-
ties or the principal amount of obligations lection is not enforced.
incurred for the purchase of equipment under (c) Open accounts not subject to cur-
conditional or deferred payment contracts rent settlement.
shall be included in account 766, ‘‘Equipment (d) Interest accrued on amounts in-
obligations.’’
cluded in this account when not sub-
768 Debt in default. ject to current settlement.
This account shall include amounts NOTE A: Accounts with affiliated compa-
nies which are subject to current settlement
transferred from other accounts rep- shall be classed as current assets or current
resenting matured funded securities or liabilities, as appropriate.
obligations, receivers’ and trustees’ se- NOTE B: No item shall be included in this
curities, equipment obligations and account which is not known to be the prop-
short-term notes, when maturity dates erty of an affiliated company.
of such obligations have not been ex- NOTE C: The term affiliated companies in-
tended cludes:
1. Controlled companies, including compa-
NOTE A: The principle amount of matured
nies solely controlled by the accounting
funded debt of affiliated companies the col-
company, and also companies jointly con-
lection of which is not enforced by the con-
trolled by the accounting company and oth-
trolling company shall (to the extent of the
ers under a joint arrangement. (See defini-
principal amount held by the controlling
tion 4.)
company) be included in account 769, ‘‘Ac-
counts payable; Affiliated companies.’’ 2. Controlling companies, including both
NOTE B: The principal amount unpresented companies solely controlling the accounting
funded debt obligations which have matured, company, and companies which jointly con-
and for which provision has been made for trol the accounting company under a joint
payment shall be included in account 763, arrangement.
‘‘Other current liabilities.’’ 3. Companies controlled by controlled com-
panies.
769 Accounts payable; affiliated com- 4. Companies controlled by controlling
panies. companies.
By control (See definition 8) is meant the
This account shall include the par ability to determine the action of a corpora-
value of nonnegotiable notes issued to tion. For the purposes of this account, the
affiliated companies; also matured following are to be considered forms of con-
funded debt of affiliated companies trol:
held by controlling companies where (a) Right through title to securities issued
there is no agreement for an extension or assumed to exercise the major part of the
voting power in the controlled corporation.
as to time of payment and collection of
(b) Right through agreement of some char-
the principal is not enforced; credit acter or through some source other than
balances in open accounts with such title to securities, to name the majority of
companies other than credit balances the board of directors, managers, or trustees
classable as current liablilities, and in- of the controlled corporation.
122
(c) Right to foreclose a first lien upon all sions, accident and death benefits, sav-
or a major part in value of the tangible prop- ings, relief, hospital, or other provident
erty of the controlled corporation. purposes.
(d) Right to secure control in consequence
of advances made for construction of the op-
(b) The carrier may use the ‘‘full ac-
erating property of the controlled corpora- crual basis’’ to account for pension
tion. costs upon prior approval of the Board.
(e) Right to control only in a specific re- Full accrual basis as used herein means
spect the action of the controlled corpora- recording in the accounts now and
tion. hereafter costs of employees pensions
A leasehold interest in the property of a accrued, including credits for past serv-
corporation is not to be classed as a form of
ices, upon the basis of actuarial com-
control over the lessor corporation.
Sole control is that which rests in one cor- putations, even though the sum has not
poration. been funded by payment to the trust-
Joint control is that which rests in two or ees. Applications for such accounting
more corporations and which is held under a shall show the method of computation,
joint arrangement. together with the carrier’s proposal for
recording in the accounts the related
770.1 Unamortized debt discount. income tax credits to be realized in
This account shall include the total subsequent years.
of the net debit balances representing (c) This account shall be charged
the excess of the discount over the when payments are made to retired
premimium in connection with the employees, or disbursements are made
issuance of each class of the carrier’s for the purposes for which liability was
outstanding long-term or equipment provided.
obligations. Separate subdivisions (d) Separate subaccounts shall be
shall be maintained for each issue of maintained to show the amount pro-
such obligations. (See instruction 5–3.) vided for each liability and the nature
NOTE A: Issue costs related to long-term of and amounts of debits and credits to
debt (debt expense) shall be included in ac- the subaccounts.
count 743, ‘‘Other deferred debits.’’ (See in-
struction 5–3.) 772 Accrued liability; leased property.
NOTE B: When long-term obligations are
(a) This account shall be credited
refinanced the balance of debt discount and
expense pertaining to the old obligations with amounts concurrently charged to
shall be transferred to account 551, ‘‘Mis- operating expenses or other accounts
cellaneous income charges.’’ to cover the accrued liability on leased
road and equipment when settlement
770.2 Unamortized premium on debt. between the accounting carrier and the
This account shall include the total lessor is not made currently. The
of all credit balances representing the amounts recorded shall include unset-
excess of the premium over the dis- tled rent, based on depreciation or
count and expenses in connection with other factors, and liability for property
the issuance of each class of the car- retired.
rier’s outstanding long-term or equip- (b) This account shall be divided to
ment obligations. Separate subdivi- show the liability to (1) affiliated com-
sions shall be maintained for each issue panies (See definition 4), and (2) others.
of obligations. (See instruction 5–3.)
774 Accrued liability; casualty and
OTHER LONG-TERM LIABILITIES other claims.
(a) This account shall be credited
771 Accrued liability; pension and wel- with the amounts charged to operating
fare. expense to provide for estimated liabil-
(a) This account shall include the ities for claims for deaths of or injuries
credit balances accrued representing to employees and others, and for dam-
the estimated liability of the carrier ages to property not owned or held
for amounts provided by charges to op- under lease by the carrier; for claims
erating expenses, including amounts for loss, destruction, damage, or delays
contributed by employees, irrespective to property entrusted to the carrier for
of whether carried in special funds or transportation or storage; for revenue

in general funds of the carrier, for pen- over charges, such as those covered by
123
reparation claims; and for similar 781 Interest in default.

items. No credits shall be made to this This account shall include the
account for amounts recoverable from amount of matured and unpaid interest
insurance companies or others. (for which no provision has been made
(b) Separate subaccounts shall be for current settlement) on all indebted-
maintained to show the amount pro- ness issued or assumed by the account-
vided for each liability and the nature ing company except interest which is
of and amounts of debits and credits to added to the principal of the debt on
the subaccounts. which incurred. Where interest is in de-
(c) If settlements for claims when au- fault, subsequent accruals shall be
dited are charged to this account, the credited to this account.
balances for each year shall be kept NOTE: Interest matured and unpaid on debt
separately until all items have been to affiliated companies, if not subject to cur-
adjusted and cleared. If the settlements rent settlement, shall be included in account
when audited are charged to the appro- 769, ‘‘Accounts payable; Affiliated compa-
priate expense accounts, the balance in nies.’’
this account shall be adjusted through
the expense accounts so as to reflect 782 Other liabilities.
the probable liability at the close of This account shall include assess-
each accounting period for claims ments for public improvements; re-
which have been or may be filed for ac- tained amounts due governmental
tuarial occurrences. agencies for construction work; per-
(d) Estimates of amounts payable centages due contractors to be paid
within one year covering liability for upon completion of contracts; deposits
claims shall be transferred from this for construction of side tracks to be re-
account to account 759, ‘‘Accrued ac- funded on basis of an agreed portion of
counts payable.’’ the earnings from the traffic handled
775 Other accrued liabilities. over the tracks and similar liabilities
not payable within one year: This ac-
(a) This account shall be credited count shall also include other deferred
with the amounts accrued for esti- and noncurrent liabilities not other-
mated liabilities or losses provided by wise provided for in general balance
charges to operating expense or income sheet accounts. Assessments for public
accounts which are not provided for in improvements and amounts due gov-
any of the preceding accrued liability ernmental agencies and others for pay-
accounts. ments to be made within one year,
(b) Separate subaccounts shall be shall be included in account 763, ‘‘Other
maintained to show the amount pro- current liabilities,’’ or other appro-
vided for each liability and the nature priate current liability account.
of and amounts of debits and credits to
the subaccounts. 783 Deferred revenues—transfers from
(c) Upon accomplishment of the pur- government authorities.
pose for which each accrued liability
This account shall include amounts
was provided in this account, any re-
representing the cost of acquisition,
maining balance in the applicable sub-
account shall be cleared to the appro- addition to, or improvement of depre-
priate operating expense or other ac- ciable operating property received, or
count. Prior Board approval shall be receivable from Federal, state, or local
required for clearance of balances in authorities. Items to be included in
accrued liability subaccounts which this account shall be determined in ac-
were originally established by author- cordance with instruction 1–15.
ity of the Board. An appropriate record shall be main-
(d) Estimates of amounts payable tained of each asset associated with
within one year covering any liability these transfers showing: (1) Original
included in this account shall be trans- cost to carrier (or fair value if not pur-
chased), (2) accumulated depreciation,
ferred to account 759, ‘‘Accrued ac-

counts payable.’’ and (3) estimated salvage value, if any.
124
This account shall be charged peri- (b) This account shall be credited
odically, and account 503, ‘‘Railway Op- with the amount of investment tax
erating Revenues—Amortization of De- credits utilized in the current year for
ferred Transfers from Government Au- income tax purposes but deferred for
thorities,’’ shall be credited with accounting purposes (see Instruction 1–
amounts equal to the depreciation 10).
costs of the assets to which they apply. (c) This account shall be concur-
When such assets are retired or other- rently debited with amounts credited
wise disposed of, this account shall be to account 557, ‘‘Provision for deferred
charged, and account 503 concurrently taxes,’’ representing amortization of
credited with any remaining associated amounts for investment tax credits de-
amounts. (See instruction 1–15.) ferred in prior accounting periods.
(d) This account shall be maintained
NOTE A: This account shall not include
in such a manner as to show sepa-
government transfers in the form of, or des-
ignated for the purchase of land or other
rately:
non-depreciable property. Transfers of this (1) the unamortized balance of de-
type are includible in account 795, ‘‘Other ferred income taxes and deferred in-
Capital.’’ vestment tax credit separately as of
NOTE B: This account shall not include the beginning and as of the end of each
transfers from the Federal Government to ei- year (2) the entries that affected the
ther Amtrak or ConRail representing the account balance, and (3) the current
cost of depreciable and non-depreciable oper- year’s net credits or charges applicable
ating property. to timing differences and deferred in-
(49 U.S.C. 304, 320) vestment tax credits.
[43 FR 30558, July 17, 1978] NOTE A: For definitions of income tax ter-
minology see Definition 17. Account 557,
‘‘Provision for deferred taxes’’, and account
DEFERRED CREDITS 591, ‘‘Provision for deferred taxes—Extraor-
dinary item,’’ shall concurrently be charged
784 Other deferred credits. (credited) with the net effect of material
(a) This account shall include the timing effects. Other related deferred income
amount of credit balances in suspense tax balance sheet accounts are:
Account 714, ‘‘Deferred income tax debit.’’
accounts that cannot be disposed of Account 744, ‘‘Accumulated deferred income
until services are performed or addi- tax debits.’’
tional information is received, such as Account 762, ‘‘Deferred income tax credits.’’
amounts received from sale of mileage (49 U.S.C. 10321, 11145; 5 U.S.C. 553)
tickets, to be disposed of as mileage is
honored; amounts received from sales [47 FR 12350, Mar. 23, 1982, as amended at 67
FR 57533, Sept. 11, 2002]
of excess baggage script, to be disposed
of as coupons are honored; interchange- SHAREHOLDERS’ EQUITY
able mileage credential ticket redemp-
tion funds, amounts collected from the 791 Capital stock.
sale of damaged, unclaimed, and over (a) This account shall include the par
freight held pending final disposition, value of stocks with par value; the
unadjusted credit items not otherwise stated value of no par stock having a
provided for; and similar items, the stated value; and the cash value of the
proper disposition of which is uncer- consideration received or the amount
tain. approved by the Board for no par
stocks without stated value for all
786 Accumulated deferred income tax
shares of capital stock or other form of
credits. proprietary interest in the accounting
(a) This account shall be credited company which have been issued to
with the noncurrent portions of de- bona fide purchasers and have not been
ferred income tax debits and credits reacquired and canceled, also shares of
when the balance is a net credit, as de- stock nominally issued.
termined by Instruction 1–10. A net (b) This account also shall include
debit balance shall be included in ac- amounts transferred from retained
count 744, ‘‘Accumulated deferred in- earnings for no par stock without stat-
come tax debits’’. ed value when approved by the Board.
125
(c) The amount of the consideration (g) When the subscriber has paid his
received from the sale of par value subscription in full and is entitled to
stock and no par stock having a stated receive certificates representing the
value in excess of the amount credited shares for which he has subscribed, the
to this account shall be credited to ac- par value of stocks having par value,
count 794, ‘‘Premiums and assessments the stated value of no par stock, or the
on capital stock.’’ agreed purchase price or the price au-
(d) When capital stock is retired or thorized by the Board for no par stock
canceled, this account shall be charged without stated value, as appropriate,
with the amount at which such stock is shall be included in the division for the
carried in this account. In the case of class for which the certificates are
no par stock without stated value, the issued.
amount to be charged shall be the pro- (h) Each of the above classes shall
portion, applicable to the reacquired also be divided into subclasses accord-
shares immediately prior to reacquisi- ing to differences in dividend or inter-
tion, of the total book liability in- est rights, voting rights, or conditions
cluded herein of actually outstanding under which the securities may be re-
shares of the particular class and series tired.
of stock of which the reacquired shares
NOTE A: When a general levy or assessment
are a part. is made against the holders of capital stock
(e) The amounts included in this ac- requiring the payment of any sum in addi-
count shall be recorded so as to show tion to the consideration agreed upon at the
(1) par value of shares of par value time of sale, the amount collected shall be
stock; the stated value of shares of no credited to account 794, ‘‘Premiums and as-
par stock, and the amount paid in or sessments on capital stock.’’
approved by the Board for no par stock NOTE B: When no par stock without stated
without stated value (pledged or value is issued in exchange for par stock, or
no par stock with stated value, amounts in-
unpledged), held in the company’s
cluded in account 794, ‘‘Premiums and as-
treasury, by its agents or trustees, or sessments on capital stock,’’ for the retired
otherwise subject to its control, includ- stock, shall be transferred to this account,
ing shares nominally but never actu- and any amounts icluded in the discount ac-
ally issued and (2) par value of shares count for the retired stock shall be charged
of par value stock, the stated value of to account 795, ‘‘Other capital’’; Provided,
shares of no par stock, and the amount however, That any excess over the amount of
paid in or approved by the Board for accumulated net gains applicable to the sub-
class exchanged included in account 795 shall
shares of no par stock without stated
be charged to account 616, ‘‘Other debits to
value, issued and actually outstanding, retained earnings.’’
being the shares not held by the com- NOTE C: An appropriate record shall be
pany, its agents, or trustees, or subject maintained with respect to shares of capital
to its control. stock showing the number of shares nomi-
(f) The amounts recorded shall be fur- nally issued, nominally outstanding, actu-
ther divided so as to show the amount ally issued and actually outstanding.
of each class of stock issued, separated NOTE D: See definitions 3, actually issued;
as between par value and no par value 4, actually outstanding; 25, nominally issued;
stock, as follows: and 26, nominally outstanding.
(1) Common stock. Stocks which have [42 FR 35017, July 7, 1977, as amended at 67
no preference over other issues of stock FR 57533, Sept. 11, 2002]
in distribution of dividends or of as-
sets. 792 Capital stock to be distributed.
(2) Preferred stock. Stocks having This account shall include the com-
preference over other issues of stock in pany’s liability under agreements to
distribution of dividends or of assets. exchange its capital stock for the out-
(3) Debenture stock. Stock issued standing securities of companies whose
under a contract to pay a specified re- physical property has been acquired
turn at specified intervals. under such agreements, but whose se-
(4) Receipts outstanding for installments curities have not yet been surrendered
paid. Receipts for payments on account for exchange. This account shall also
of subscriptions to capital stock. include stock dividends declared that
126
remain undistributed at the end of an pany’s capital stock; and forgiveness

accounting period. by stockholders as a contribution to
capital of long-term debt owed to
FR 4347, Feb. 11, 1987] them.
(b) This account shall be charged
793 Discount on capital stock. with amounts included herein when
This account shall include the excess capitalized by stock dividends or other-
of the par or stated value recorded in wise with the approval of the Board,
account 791, ‘‘Capital stock,’’ (at the and losses from retirement or resale of
time of original sale of par value stock reacquired shares up to an amount not
and no par stock with a stated value) in excess of credits included herein ap-
plus accrued dividends, if any, over the plicable to the reacquired shares; and
cash value of the consideration re- may be charged with the amortization
ceived. of discount on capital stock to the ex-
tent of credits herein for such stock.
794 Premiums and assessments on (c) This account shall be subdivided
capital stock. to show each source of other capital.
(a) This account shall include the ex- (d) This account shall be subdivided
cess of the actual cash vlaue of the to show the cumulative amounts rep-
consideration received (at the time of resenting the cost of nondepreciable
original sale of par value stock and no operating property received from gov-
par stock with a stated value) over the ernment authorities, in accordance
par or stated value of the stock issued, with the provisions of instruction 1–15.
plus accrued dividends, if any, and sub- (e) This account shall also be sub-
sequent assessments against stock- divided to show the cumulative
holders representing payments re- amounts representing the cost of de-
quired in excess of par or stated value. preciable and nondepreciable operating
(b) Separate subdivisions shall be property received by Amtrak or Con-
maintained for premiums and for as- rail from the Federal Government. (See
sessments on each class and series of instruction 1–15.)
stock. (49 U.S.C. 304, 320)
(c) When capital stock is retired and
canceled, this account shall be charged [42 FR 35017, July 7, 1977, as amended at 43
FR 30558, July 17, 1978]
with the amount of assessments and
premiums originally recorded for the 797 Retained earnings; appropriated.
shares of stock retired and canceled.
This account shall include the accu-
795 Other capital. mulated amount of retained earnings
(a) This account shall include all which has been appropriated and set
other capital not classified as retained aside according to provisions of mort-
earnings. It shall include such items as gages, deeds of trust, reorganization
the amount of consent dividends on the plans, or other agreements requiring
accounting company’s capital stock; payments into capital funds, sinking
capital arising from donations by funds, or other funds; and also appro-
stockholders of capital stock of the priations for general contingencies,
company or other contribution to cap- possible future losses (not in the cat-
ital; amounts representing reduction of egory of liabilities actually incurred),
the par or recorded value of the ac- and other corporate purposes. This ac-
counting company’s capital stock, in- count shall be subdivided by classes of
cluding reductions arising in merger of appropriations showing the purpose for
a railroad and pooling of interest (see which each appropriation is made.
instruction 2–15(d)); capital from reor-
ganization of the company (see instruc- 798 Retained earnings; unappropri-
tion 2–16); and amounts of forfeited ated.
subscriptions to the accounting com- (a) This account shall include the net
pany’s capital stock. This account balance (debit or credit) of the
shall also include gains from the acqui- amounts included in accounts 601 to
sition, retirement, or resale of reac- 623, inclusive. It shall not include

quired shares of the accounting com- transfers either to or from account 795,
127
‘‘Other capital,’’ unless authorized ASSETS—Continued

upon application to the Board. Total current assets.
(b) Any balance representing retained Special funds:
715. Sinking funds.
earnings not segregated at the date of 716. Capital funds.
the balance sheet shall be included in a 717. Other funds.
subdivision of this account. Total special funds.
(c) The balance of accounts 601 to 623, Investments:
721. Investments and advances; affiliated companies.
inclusive, shall be closed into this ac- Undistributed earnings from certain invest-
count at the end of each calendar year. ments in account 751.
721.5. Adjustments; investments and advances—affili-
798.1 Net unrealized loss on noncur- ated companies.
rent marketable securities. Net—investments and advances—affiliated
companies.
This account shall include the accu- 722. Other investments and advances.
mulated changes in account 724 to the 723. Adjustments; Other investments and advances.
724. Allowance for net unrealized loss on noncurrent
extent that these changes represent a marketable equity securities—Cr.
net unrealized loss (aggregate cost ex- Net—other investments and advances.
ceeds market value). Total investments.
Tangible property:
798.5 Treasury stock. 731. Road and equipment property.
735. Accumulated depreciation; Road and equipment
(a) This account shall include in sub- property.
divisions for each class the reacquisi- 736. Accumulated amortization; Road and equipment
property—Defense projects.
tion cost of capital stock which has Net road and equipment property.
been actually issued or assumed by the 732. Improvements on leased property.
carrier, then reacquired, and is neither 733. Accumulated depreciation; Improvements on
retired nor canceled, nor properly in- leased property.
734. Accumulated amortization; Improvements on
cludable in sinking or other funds. leased property—Defense projects.
(b) This account shall be maintained Net improvements on leased property.
to reflect separately securities pledged Total carrier property.
737. Property used in other than carrier operations.
and unpledged. 738. Accumulated depreciation; Property used in
(c) This account shall be shown on other than carrier operations.
the balance sheet as a deduction in ar- Net—property used in other than carrier oper-
ations.
riving at stockholders’ equity. Total tangible property.
NOTE: The accounting for the reacquisition
Intangible property:
and resale of capital stock shall be in accord- 739. Organization expenses.
ance with instruction 5–4, paragraphs (e)
Other assets and deferred debits:
through (g). 741. Other assets.
743. Other deferred debits.
FORM OF GENERAL BALANCE SHEET 744. Accumulated deferred income tax debits.
STATEMENT Total other assets and deferred debits.
Total assets.
The classified form of general balance LIABILITIES AND SHAREHOLDERS’ EQUITY
sheet statement is designed to show the fi- Current liabilities:
nancial condition of the accounting company 751. Loans and notes payable.
at any specified date. 752. Accounts payable; Interline and other balances.
753. Audited accounts and wages payable.
ASSETS 754. Accounts payable; Other.
755. Interest payable.
Current assets: 756. Dividends payable.
701. Cash. 757. Payables to affiliated companies.
702. Temporary cash investments.
759. Accrued accounts payable.
703. Special deposits.
760. Federal income taxes accrued.
704. Loans and notes receivable.
761. State and other income taxes accrued.
705. Accounts receivable; Interline and other bal-
761.5. Other taxes accrued.
ances.
762. Deferred income tax credits.
706. Accounts receivable; Customers.
707. Accounts receivable; Other. 763. Other current liabilities.
708. Interest and dividends receivable. 764. Equipment obligations and other long-term debt
708.5. Receivables from affiliated companies. due within one year.
709. Accrued accounts receivable. Total current liabilities.
709.5. Allowance for uncollectible accounts. Long-term debt due after one year: 1
Net receivables. 765. Funded debt unmatured.
710. Working funds. 766. Equipment obligations.
711. Prepayments. 766.5. Capitalized lease obligations.
712. Material and supplies. 767. Receivers’ and trustees’ securities.
713. Other current assets. 768. Debt in default.

714. Deferred income tax debits. 769. Accounts payable; Affiliated companies.
128
ASSETS—Continued ASSETS—Continued
770.1 Unamortized debt discount. 798. Retained earnings; Unappropriated.
770.2 Unamortized premium on debt. 798.1 Net unrealized loss on noncurrent marketable
Total long-term debt due after one year. equity securities.
Other long-term liabilities: Total retained earnings.
771. Accrued liability; Pension and welfare. 798.5 Treasury stock.
772. Accrued liability; Leased property. Total shareholders’ equity.
774. Accrued liability; Casualty and other claims. Total liabilities and shareholders’ equity.
775. Other accrued liabilities.
781. Interest in default.
782. Other liabilities. 1 To be divided as to ‘‘Total issued’’ and ‘‘Held by or for
Total other long-term liabilities.
company.’’
Deferred credits:
783. Deferred revenues—transfers from government
authorities.
(49 U.S.C. 12, 20, 304, 913 and 1012)
784. Other deferred credits. [42 FR 35017, July 7, 1977, as amended at 42
786. Accumulated deferred income tax credits.
Total deferred credits.
FR 56611, Oct. 27, 1977; 43 FR 30558, July 17,
1978]
Shareholders’ equity:
Capital stock:
791. Capital stock. CONVERSION TABLES
792. Liability for conversion of capital stock.
793. Discount on capital stock.
Total capital stock. Operating Expense Accounts.
Additional capital: Transportation Operating Revenue Ac-
794. Premiums and assessments on capital stock. counts.
795. Other capital.
Total additional capital. Income Accounts.
Retained earnings: Retained Income Accounts.
797. Retained earnings; Appropriated. 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 ...................... .................. ..................
129
OPERATING EXPENSE ACCOUNTS—CONVERSION TABLE—Continued

Account No.1
Account title No.
.................. 21–12–16 ...................... .................. ..................

.................. 21–11–48 ...................... .................. ..................
.................. 21–12–48 ...................... .................. ..................
Track laying and surfacing .................................... 220 11–11–17 21–11–17 39/40–11–17 41–11–17 61–11–17
11–12–17 21–12–17 39/40–12–17 41–12–17 61–12–17
11–11–48 21–11–48 39/40–11–48 41–11–48 61–11–48
11–12–48 21–12–48 39/40–12–48 41–12–48 61–12–48
Fences, snowsheds and signs .............................. 221 11–13–28 21–13–28 39/40–13–28 41–13–28 61–13–28
11–13–48 21–13–48 39/40–13–48 41–13–48 61–13–48
Station and office buildings ................................... 227 11–13–23 21–13–23 39/40–13–23 41–13–23 61–13–23
11–13–33 21–13–33 39/40–13–33 41–13–33 61–13–33
11–13–35 21–13–35 39/40–13–35 41–13–35 61–13–35
11–13–48 21–13–48 39/40–13–48 41–13–48 61–13–48
Roadway buildings ................................................ 229 11–13–28 21–13–28 39/40–13–28 41–13–28 61–13–28
11–13–48 21–13–48 39/40–13–48 41–13–48 61–13–48
Water stations ....................................................... 231 11–13–27 21–13–27 39/40–13–27 41–13–27 61–13–27
11–13–48 21–13–48 39/40–13–48 41–13–48 61–13–48
Fuel stations .......................................................... 233 11–13–27 21–13–27 39/40–13–27 41–13–27 61–13–27
11–13–48 21–13–48 39/40–13–48 41–13–48 61–13–48
Shops and enginehouses ..................................... 235 11–13–24 21–13–24 39/40–13–24 41–13–24 61–13–24
11–13–25 21–13–25 39/40–13–25 41–13–25 61–13–25
11–13–26 21–13–26 39/40–13–26 41–13–26 61–13–26
11–13–48 21–13–48 39/40–13–48 41–13–48 61–13–48
Grain elevators ...................................................... 237 11–13–35 21–13–35 39/40–13–35 41–13–35 61–13–35
11–13–48 21–13–48 39/40–13–48 41–13–48 61–13–48
Storage warehouses ............................................. 239 11–13–28 21–13–28 39/40–13–28 41–13–28 61–13–28
11–13–48 21–13–48 39/40–13–48 41–13–48 61–13–48
Wharves and docks .............................................. 241 11–13–32 21–13–32 39/40–13–32 41–13–32 61–13–32
11–13–48 21–13–48 39/40–13–48 41–13–48 61–13–48
Coal and ore wharves ........................................... 243 11–13–29 21–13–29 39/40–13–29 41–13–29 61–13–29
11–13–30 21–13–30 39/40–13–30 41–13–30 61–13–30
11–13–48 21–13–48 39/40–13–48 41–13–48 61–13–48
TOFC/COFC terminals .......................................... 244 11–13–31 21–13–31 39/40–13–31 41–13–31 61–13–31
11–13–48 21–13–48 39/40–13–48 41–13–48 61–13–48
Communication systems ....................................... 247 11–13–20 21–13–20 39/40–13–20 41–13–20 61–13–20
11–13–48 21–13–48 39/40–13–48 41–13–48 61–13–48
Signals and interlockers ........................................ 249 11–11–19 21–11–19 39/40–11–19 41–11–19 61–11–19
11–12–48 21–12–48 39/40–12–48 41–12–18 61–12–18
11–11–48 21–11–48 39/40–11–48 41–11–48 61–11–48
11–12–48 21–12–48 39/40–12–48 41–12–48 61–12–48
Power plants ......................................................... 253 11–13–21 21–13–21 39/40–13–21 41–13–21 61–13–21
11–13–24 21–13–24 39/40–13–24 41–13–24 61–13–24
11–13–28 21–13–25 39/40–13–25 41–13–25 61–13–25
11–13–26 21–13–26 39/40–13–26 41–13–26 61–13–26
11–13–48 21–13–48 39/40–13–48 41–13–48 61–13–48
Power transmission systems ................................ 257 11–13–21 21–13–21 39/40–13–21 41–13–21 61–13–21
11–13–24 21–13–24 39/40–13–24 41–13–24 61–13–24
11–13–25 21–13–25 39/40–13–25 41–13–25 61–13–25
11–13–26 21–13–26 39/40–13–26 41–13–26 61–13–26
11–13–48 21–13–48 39/40–13–48 41–13–48 61–13–48
Miscellaneous structures ....................................... 265 11–13–28 21–13–28 39/40–13–28 41–13–28 61–13–28
11–13–48 21–13–48 39/40–13–48 41–13–48 61–13–48
Roadway property; depreciation ........................... 266 .................. .................. ...................... .................. 62–11–00
.................. .................. ...................... .................. 62–12–00
.................. .................. ...................... .................. 62–13–00
Retirements; road .................................................. 267 .................. .................. ...................... .................. 2 61–11–99
.................. .................. ...................... .................. 61–12–99

.................. .................. ...................... .................. 61–13–99
Roadway machines ............................................... 269 11–13–36 21–13–36 39/40–13–36 41–13–36 61–13–36
11–13–48 21–13–48 39/40–13–48 41–13–48 61–13–48
Dismantling retired road property ......................... 270 11–11–39 21–11–39 ...................... 41–11–39 61–11–39
11–12–39 21–12–39 ...................... 41–12–39 61–12–39
11–13–39 21–13–39 ...................... 41–13–39 61–13–39
Small tools and supplies ....................................... 271 11–13–37 21–13–37 39/40–13–37 41–13–37 61–13–37
Removing snow, ice and sand .............................. 272 11–13–38 21–13–38 39/40–13–38 41–13–38 61–13–38
Public improvements; maintenance ...................... 273 11–11–22 21–11–22 39/40–11–22 41–11–22 61–11–22
11–12–22 21–12–22 39/40–12–22 41–12–22 61–12–22
130

Account No.1
Account title No.
Injuries to persons ................................................ 274 11–11–99 .................. ...................... .................. 61–11–99

11–12–99 .................. ...................... .................. 61–12–99
11–13–99 .................. ...................... .................. 61–13–99
11–61–92 21–61–92 41–61–92 .................. 61–61–92
.................. .................. ...................... .................. 52–11–00
.................. .................. ...................... .................. 52–12–00
.................. .................. ...................... .................. 52–13–00
Insurance ............................................................... 275 .................. .................. ...................... .................. 53–11–00
.................. .................. ...................... .................. 53–12–00
.................. .................. ...................... .................. 53–13–00
Stationery and printing .......................................... 276 .................. 21–11–xx ...................... 2 41–11–xx ..................
.................. 21–12–xx ...................... 41–12–xx ..................
.................. 21–13–xx ...................... 41–13–xx ..................
Employees health and welfare benefits ................ 277 12–11–00 .................. ...................... .................. ..................
12–12–00 .................. ...................... .................. ..................
12–13–00 .................. ...................... .................. ..................
Maintaining joint tracks, yards and other facili-
ties—Dr .............................................................. 278 .................. .................. 37–11–00 .................. ..................
.................. .................. 37–12–00 .................. ..................
.................. .................. 37–13–00 .................. ..................
Maintaining joint tracks, yards and other facili-
ties—Cr .............................................................. 279 .................. .................. 38–11–00 .................. ..................
.................. .................. 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

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; depreciation ... 305 .................. .................. ...................... .................. 62–13–00
.................. .................. ...................... .................. 62–21–00
.................. .................. ...................... .................. 62–22–00
.................. .................. ...................... .................. 62–23–00
Dismantling retired shop and power plant ma-
chinery ............................................................... 306 11–13–39 21–13–39 ...................... 41–13–39 61–13–39
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
131

Account No.1
Account title No.
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
11–22–99 .................. ...................... .................. 61–22–99
11–23–99 .................. ...................... .................. 61–23–99
11–61–99 21–61–92 41–61–92 .................. 61–61–92
.................. .................. ...................... .................. 52–21–00
.................. .................. ...................... .................. 52–22–00
.................. .................. ...................... .................. 52–23–00
Insurance ............................................................... 333 .................. .................. ...................... .................. 53–21–00
.................. .................. ...................... .................. 53–22–00
.................. .................. ...................... .................. 53–23–00
Stationery and printing .......................................... 334 .................. 2 21–21–xx ...................... 2 41–21–xx ..................
.................. 21–22–xx ...................... 41–22–xx ..................
.................. 21–23–xx ...................... 41–23–xx ..................
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

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
Other expenses ..................................................... 360 11–61–99 21–61–99 ...................... 41–61–99 61–61–99
Transportation Expense Accounts

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 .................. ...................... .................. ..................
132

Account No.1
Account title No.
Yard enginemen .................................................... 380 11–32–64 .................. ...................... .................. ..................

Yard switching fuel ................................................ 382 11–32–67 21–32–67 ...................... 41–32–67 61–32–67
Yard switching power produced ............................ 383 11–32–68 21–32–68 ...................... 41–32–68 61–32–68
Yard switching power purchased .......................... 384 .................. .................. ...................... 41–32–68 ..................
Servicing yard locomotives ................................... 388 11–32–69 21–32–69 ...................... 41–32–69 61–32–69
Yard supplies and expenses ................................. 389 .................. 21–32–59 ...................... 41–32–59 61–32–59
.................. 21–32–64 ...................... 41–32–64 61–32–64
.................. 21–32–65 ...................... 41–32–65 61–32–65
.................. 21–32–66 ...................... 41–32–66 61–32–66
Operating joint yards and terminals—Dr .............. 390 .................. .................. 37–32–00 .................. ..................
Operating joint yards and terminals—Cr .............. 391 .................. .................. 38–32–00 .................. ..................
Train enginemen ................................................... 392 11–31–56 .................. ...................... .................. ..................
Train fuel ............................................................... 394 11–31–67 21–31–67 ...................... 41–31–67 61–31–67
Train power produced ........................................... 395 11–31–68 21–31–68 ...................... 41–31–68 61–31–68
Train power purchased ......................................... 396 .................. .................. ...................... 41–31–68 ..................
Servicing train locomotives ................................... 400 11–31–69 21–31–69 ...................... 41–31–69 61–31–69
Trainmen ............................................................... 401 11–31–57 .................. ...................... .................. ..................
Train supplies and expenses ................................ 402 .................. 21–31–56 ...................... 41–31–56 61–31–56
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
12–32–00 .................. ...................... .................. ..................
12–33–00 .................. ...................... .................. ..................
12–34–00 .................. ...................... .................. ..................
12–35–00 .................. ...................... .................. ..................
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
133

Account No.1
Account title No.
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
11–32–99 .................. ...................... .................. 61–31–99
11–34–99 .................. ...................... .................. 61–32–99
11–35–99 .................. ...................... .................. 61–34–99
11–61–92 21–61–92 41–61–92 .................. 61–35–99
.................. .................. ...................... .................. 52–13–00
.................. .................. ...................... .................. 52–32–00
.................. .................. ...................... .................. 52–34–00
.................. .................. ...................... .................. 52–35–00
11–35–78 21–35–78 ...................... 41–35–78 61–35–78
TOFC/COFC terminals .......................................... 421 11–34–73 21–34–73 ...................... 41–34–73 61–34–73
11–34–74 21–34–74 ...................... 41–34–74 61–34–74
11–34–75 21–34–75 ...................... 41–34–75 61–34–75
Other highway transportation ................................ 422 11–34–73 21–34–73 ...................... 41–34–73 61–34–73
11–34–74 21–34–74 ...................... 41–34–74 61–34–74
11–34–75 21–34–75 ...................... 41–34–75 61–34–75
Miscellaneous Operations Expense
Dining and buffet service ...................................... 441 11–41–01 21–41–01 ...................... 41–41–01 61–41–01
11–41–57 21–41–57 ...................... 41–41–57 61–41–57
11–41–99 21–41–99 ...................... 41–41–99 61–41–99
Hotels and restaurants .......................................... 442 11–34–99 21–34–99 ...................... 41–34–99 61–34–99
Grain elevators ...................................................... 443 11–34–01 21–34–01 ...................... 41–34–01 61–34–01
11–34–74 21–34–74 ...................... 41–34–74 61–34–74
11–34–75 21–34–75 ...................... 41–34–75 61–34–75
Producing power sold ........................................... 445 11–31–68 21–31–68 ...................... 41–31–68 61–31–68
11–32–68 21–32–68 ...................... 41–32–68 61–32–68
Other miscellaneous operations ........................... 446 11–34–99 21–34–99 ...................... 41–34–99 61–34–99
Operating joint miscellaneous facilities—Dr ......... 447 .................. .................. 37–34–00 .................. ..................
.................. .................. 37–35–00 .................. ..................
Operating joint miscellaneous facilities—Cr ......... 448 .................. .................. 38–34–00 .................. ..................
.................. .................. 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 attendants .. 452 11–61–01 21–61–01 ...................... 41–61–01 61–61–01
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

134

Account No.1
Account title No.
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 .................. ...................... .................. ..................
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 Pas-
senger 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. 1, 1978 System of accounts eff. Jan. 1, 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 privileges .............................................. 133 110 Do.
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 property ......................................... 142 110 Do.
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

Income Accounts
Railway operating revenues ....................................................... 501 501 Railway operating revenues.

Revenues from miscellaneous operations ................................. 502 506 Revenues from property used in other than car-
rier operations.
135
INCOME ACCOUNTS CONVERSION TABLE—Continued

Hire of freight cars and highway revenue freight equipment; 503 ........ 32–22–00, 32–23–00, 36–22–00, and 36–23–00.
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 equipment ................................ 509 ........ 32–11–00, 32–12–00, 32–13–00, 32–21–00, 32–
22–00, and 32–23–00.
Miscellaneous rent income ........................................................ 510 510 Miscellaneous rent income.
Income from nonoperating property ........................................... 511 506 Revenues from property used in other than car-
rier operations.
534 Expenses of property used in other than carrier
operations.
Separately operated properties; profit ....................................... 512 512 Separately operated properties; profit.
Dividend income ......................................................................... 513 513 Dividend income.
Interest income ........................................................................... 514 514 Interest income.
Income from sinking and other reserve funds ........................... 516 516 Income from sinking and other reserve funds.
Release of premiums on funded debt ....................................... 517 517 Release of premiums on funded debt.
Contributions from other companies .......................................... 518 518 Contributions from other 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.
Provision for deferred taxes ....................................................... 533 557 Provision for deferred taxes.
Expenses of miscellaneous operations ..................................... 534 534 Expenses of property used in other than carrier
operations.
Taxes on miscellaneous operating property .............................. 535 535 Taxes on property used in other than carrier op-
erations.
Hire of freight cars and highway revenue freight equipment— 536 ........ 31–22–00, 35–22–00, 31–23–00, and 35–23–00.
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 than carrier operations .......... 535
Separately operated properties; loss ......................................... 545 545 Separately operated 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 funded debt ................................... 548 548 Amortization of discount on funded debt.
Maintenance of investment organization ................................... 549 549 Maintenance of investment organization.
Income transferred to other companies ..................................... 550 550 Income transferred to other companies.
Miscellaneous income charges .................................................. 551 551 Miscellaneous income charges.
553 Uncollectible accounts.
Unusual or infrequent items (debit) credit ................................. 555 555 Unusual or infrequent items (debit) credit.
Income or loss from operations of discontinued segments ....... 560 560 Income or loss from operations of discontinued
segments.
Gain or loss on disposal of discontinued segments .................. 562 562 Gain or loss on disposal of discontinued seg-
ments.
Extraordinary items (net) ............................................................ 570 570 Extraordinary items (net).
Income taxes on extraordinary items ......................................... 590 590 Income taxes on extraordinary items.
Provision for deferred taxes—extraordinary items .................... 591 591 Provision for deferred taxes—extraordinary
items.
Cumulative effect of changes in accounting principles ............. 592 592 Cumulative effect of changes in accounting prin-
ciples.
136
RETAINED INCOME ACCOUNTS CONVERSION TABLE

Credit
Credit balance (at beginning of calendar year) ........................ 601 601 Credit balance (at beginning of calendar year).
Prior period adjustments to beginning retained income ac- 601.5 601.5 Prior period adjustments to beginning retained
count. earnings account.
Credit balance transferred from income ................................... 602 602 Credit balance transferred from income.
Other credits to retained income .............................................. 606 606 Other credits to retained earnings.
Debit
Debit balance (at beginning of calendar year) ......................... 611 611 Debit balance (at beginning of calendar year).
Debit balance transferred from income .................................... 612 612 Debit balance transferred from income.
Other debits to retained income ............................................... 616 616 Other debits to retained earnings.
Appropriations for sinking and other reserve funds ................. 620 620 Appropriations for sinking and other funds.
Appropriations for other purposes ............................................ 621 621 Appropriations for other purposes.
Appropriations released ............................................................ 622 603 Appropriations released.
Dividends .................................................................................. 623 623 Dividends.
GENERAL BALANCE SHEET ACCOUNTS CONVERSION TABLE

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 balances—dr ............................. 705 705 Accounts receivable; interline and other bal-
ances.
709.5 Allowances for uncollectible accounts.
752 Accounts payable; interline and other balances.
Net balance receivable from agents and conductors ............... 706 706 Accounts receivable; customers.
Miscellaneous accounts receivable .......................................... 707 707 Accounts receivable; other.
Interest and dividends receivable ............................................. 708 708 Interest and dividends receivable.
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 funds ............................................... 716 716 Capital funds.
Insurance and other funds ........................................................ 717 717 Other funds.
Investment in affiliated companies ........................................... 721 721 Investments and advances; affiliated compa-
nies.
Other investments ..................................................................... 722 722 Other investments and advances.
Reserve for adjustment of investment in securities—cr ........... 723 721.5 Adjustments; investments and advances—affili-
ated 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 property ............................................ 732 732 Improvements on leased property.
Accrued depreciation; improvements on leased property ........ 733 733 Accumulated depreciation; improvements on
leased property.
Accrued depreciation; road and equipment ............................. 735 735 Accumulated depreciation; road and equipment
property.
Amortization of defense projects; road and equipment ........... 736 736 Accumulated amortization; road and equipment
property—defense projects.
734 Accumulated amortization; improvements on
leased property—defense projects.
Miscellaneous physical property ............................................... 737 737 Property used in other than carrier operations.
Accrued depreciation; miscellaneous physical property .......... 738 738 Accumulated depreciation; property used in
other than carrier operations.
137
GENERAL BALANCE SHEET ACCOUNTS CONVERSION TABLE—Continued

Other assets ............................................................................. 741 741 Other assets.

Unamortized discount on long-term debt ................................. 770.1 770.1 Unamortized debt discount.
Other deferred charges ............................................................ 743 743 Other deferred debits.
Accumulated deferred income tax charges .............................. 744 744 Accumulated deferred income tax debits.
Liabilities
Loans and notes payable ......................................................... 751 751 Loans and notes payable.
757 Payables to affiliated companies.
Traffic, car service and other balances—cr ............................. 752 752 Accounts payable; interline and other balances.
705 Accounts receivable; interline and other bal-
ances.
Audited accounts and wages payable ...................................... 753 753 Audited accounts and wages payable.
Miscellaneous accounts payable .............................................. 754 754 Accounts payable; other.
Interest matured unpaid ............................................................ 755 755 Interest payable.
Dividends matured unpaid ........................................................ 756 756 Dividends payable.
Unmatured interest accrued ..................................................... 757 755 Interest payable.
Unmatured dividends declared ................................................. 758 756 Dividends payable.
Accrued accounts payable ....................................................... 759 759 Accrued accounts payable.
Federal income taxes accrued ................................................. 760 760 Federal income taxes accrued.
Other taxes accrued ................................................................. 761 711 Prepayments.
761 State and other income taxes accrued.
761.5 Other taxes accrued.
Deferred income tax credits ..................................................... 762 762 Deferred inome tax credits.
Other current liabilities .............................................................. 763 763 Other currrent liabilities.
Equipment obligations and other debt due within one year ..... 764 764 Equipment obligations and other long-term debt
due within 1 year.
Funded debt unmatured ........................................................... 765 765 Funded debt unmatured.
Equipment obligations .............................................................. 766 766 Equipment obligations.
Receivers’ and trustees’ securities ........................................... 767 767 Receivers’ and trustees’ securities.
Debt in default .......................................................................... 768 768 Debt in default.
Amounts payable to affiliated companies ................................. 769 769 Accounts payable; 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-term debt ................................. 790.2 770.2 Unamortized premium on debt.
Other deferred credits ............................................................... 784 784 Other deferred credits.
Accrued liability; leased property .............................................. 785 772 Accrued liability; leased property.
Accumulated deferred income tax credits ................................ 786 786 Accumulated deferred 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 capital stock ............................ 794 794 Premiums and assessments 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; unappropriated ............................................ 798 798 Retained earnings; unappropriated.
Treasury stock .......................................................................... 798.5 798.5 Treasury stock.
138
Subpart B—Branch Line counts containing 31 (train operations)

Accounting System and 67 (locomotive fuel).
[43 FR 1733, Jan. 11, 1978, as amended at 47
900 Definitions. FR 49596, Nov. 1, 1982; 67 FR 57533, Sept. 11,
2002]
Unless otherwise required by context,
the following definitions apply in this 910 Purpose and scope.
subpart:
Section 205(e)(1)(A) of the 3R Act di-
Account means an account in the rects the office to issue regulations
STB’s Uniform System of Accounts which will permit the collection and
(USOA), for Railroad companies (49 publication by the Consolidated Rail
CFR Part 1201, Subpart A). Corp. (ConRail), or by profitable rail-
IC Act means the Interstate Com- roads of information necessary to de-
merce Act (49 U.S.C. 1 et seq.), as termine accurately the revenues at-
amended. tributable, avoidable costs, and service
Branch Line or Branch means a rail units of light-density lines scheduled
line or segment of line which (a) has for abandonment. This accurate infor-
been designated on a transportation mation is intended to facilitate the de-
system diagram in categories (1), (2), termination of the revenues and avoid-
(3), or (4) (49 CFR 1152.10(b) (1), (2), (3), able costs in abandonment proceedings
(4)); or (b) is the subject of a directed and in potential offers of subsidy. This
service order under section 304(d)(3) of information is intended to be compat-
the 3R Act; or (c) is the subject of a ible with the Regional Subsidy Stand-
rail continuation service agreement ards, for those lines which were not
entered into prior to the designation of conveyed to ConRail under the final
the line on a system diagram. system plan and with the National
STB or Board means the Surface Subsidy Standards (49 CFR Part 1152,
Transportation Board. Subpart D), for all other lines. The pur-
Designated State agency means the in- pose of the Branch Line Accounting
strumentality created by a State or System regulations is to specify an ac-
designated by appropriate authority to counting system for the collection and
administer or coordinate its State rail publication of this information.
plan as required by section 5(j)(2) of the [43 FR 1733, Jan. 11, 1978, as amended at 47
Department of Transportation Act (90 FR 49596, Nov. 1, 1982; 67 FR 57533, Sept. 11,
Stat. 131) or section 402(c)(1)(A) of the 2002]
3R Act (87 Stat. 985) or regulations pro-
920 Collection of data.
mulgated pursuant thereto.
Railroad means a common carrier by (a) Lines for which data collection is re-
railroad, as defined in section 1(3) of quired. The railroad shall collect data
the Interstate Commerce Act (49 U.S.C. on all branch lines which meet the cri-
1(3)). teria listed in paragraphs 1 through 4
below. The data to be collected are
3R Act means the Regional Rail Reor-
specified in section 920(b).
ganization Act of 1973, Pub. L. 93–236, 87
(1) Branch lines in categories (1), (2),
Stat. 985, as amended. and (3) on the System Diagram Map in-
4R Act means the Railroad Revital- clude, respectively, lines for which a
ization and Regulatory Reform Act of carrier intends to file an abandonment
1976, Pub. L. 94–210, 90 Stat. 31. application within three years, lines
XX, when used in place of digits in a which the carrier has under study and
six-digit account number, means that are potentially subject to abandon-
all accounts containing the remaining ment, and lines for which an abandon-
four-digits are included. Example: 11– ment application is pending before the
21–XX refers to all salary and wage ac- Board. The collection of data on such
counts for locomotives because 11 des- lines shall commence on the first day
ignates salaries and wages and 21 des- of the month after the line has been
ignates locomotives. Thus, 11–21–XX in- designated in one of the categories and
cludes all of the following accounts: 11– will continue so long as the branch line
21–01; 11–21–40; 11–21–48; 11–21–39; and 11– is retained in one of these categories.
21–99. Similarly, XX–31–67 means all ac- The assignment and apportionment
139
methodology set forth in Part 1152, states and counties traversed, delinea-
Subchapter B (National Subsidy Stand- tion of mileposts, and location of agen-
ards), shall be applied. cy and terminal stations.
(2) For branch lines operated under (b) [Reserved]
an order directing service, under sec- (c) Access to records. The records, ac-
tion 304(d)(3) of the 3R Act, data shall counts, working papers, and other doc-
be collected from the effective date of uments reflecting the revenues, cost,
the order until the order is withdrawn. and service unit data of each branch
(3) For branch lines operated under a line for which the railroad must main-
rail service continuation agreement tain data shall be made available for
under section 1a(6)(a) of the IC Act, inspection and examination by the
data shall be collected from the effec- Board and, for lines situated within its
tive date of the agreement until the State, by the designated State agency
termination of the agreement. The as- at a time and place mutually agreeable
signment and apportionment method- to the parties. The railroad shall also
ology set forth in Part 1152, Subchapter reproduce such records for the des-
B (National Subsidy Standards), shall ignated State agency, provided the
be applied. agency pays the reasonable cost there-
(4) For branch lines operated under a of.
rail service continuation agreement (d) Waivers and modifications. The
under section 304 of the 3R Act, data STB’s Office of Economics, Environ-
collection shall commence on the effec- mental Analysis, and Administration
tive date of the agreement and shall may, with respect to individual re-
continue until the termination date of quests, upon good cause shown, waive
the agreement. or modify any requirement of this sec-
(b) Data to be collected. The data col- tion not required by law.
lected shall include the items of rev-
enue, expense, and service units which [43 FR 1733, Jan. 11, 1978, as amended at 44
are specified in 49 CFR 1152, as de- FR 9730, Feb. 14, 1979; 47 FR 49596, Nov. 1,
scribed in the account texts listed in 1982; 67 FR 57533, Sept. 11, 2002]
section 950. The format for presen- 940 Annual branch line report.
tation of these data is specified in sec-
tion 940. This section specifies the format in
which the data collected for each
[43 FR 1733, Jan. 11, 1978, as amended at 47 branch line shall be maintained. Defi-
FR 49596, Nov. 1, 1982; 67 FR 57533, Sept. 11,
2002] nitions of each account are presented
in section 950.
930 Publication of data. (A) Attributable revenue Amount
(a) General. The railroad shall file on
101 Freight ........................................................ ..................
or before June 30 of each calendar year 104 Switching .................................................... ..................
the certification included in these reg- 105 Water transfers .......................................... ..................
ulations as Appendix I. The railroad 106 Demurrage ................................................. ..................
shall include a description of each 110 Incidental .................................................... ..................
121 Joint facility—credit .................................... ..................
branch line using the format set forth 122 Joint facility—debit ..................................... ..................
in Appendix I of these regulations. The 506 Revenue from property used in other than
description of each branch line requires carrier operations ............................................. ..................
510 Miscellaneous rent income ........................ ..................
the same data as that submitted under 519 Miscellaneous income ................................ ..................
49 CFR 1152.11. This section prescribes 599 Subsidy payments from preexisting con-
the branch line information required in tracts ................................................................ ..................
conjunction with the system diagram
Total attributable revenues ....................... ..................
maps specifying the line’s designation,
140
(B) ON-BRANCH AVOIDABLE COSTS

Freight
Material,
Salaries
Line item—(a) tools, sup- Purchased
and General—
plies, fuels, services—
wages— (e)
and lubri- (d)
(b) cants—(c)
(1) Actual or apportioned expense accounts:

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

130 Other Rents—Debit—Running ................................................... N/A N/A .................. N/A
141
(B) ON-BRANCH AVOIDABLE COSTS—Continued

Freight
Material,
Salaries
and General—
wages— (e)
and lubri- (d)
(b) cants—(c)
131 Other Rents—Debit—Switching ................................................. N/A N/A .................. N/A

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

304 Floating and Other Revenue Equipment ................................... .................. .................... .................. ..................
142

Freight
Material,
Salaries
and General—
wages— (e)
and lubri- (d)
(b) cants—(c)
305 Computers and Data Processing Systems ................................ .................. .................... .................. ..................
306 Machinery ................................................................................... .................. .................... .................. ..................
307 Work and Other Non-Revenue Equipment ................................ .................. .................... .................. ..................
320 Repairs Billed to Others—(Credit) ............................................. .................. .................... .................. ..................
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 ......................................................................... .................. .................... .................. ..................
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 ............................................................... .................. .................... .................. ..................
429 Clearing Wrecks ......................................................................... .................. .................... .................. ..................
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 ..................
506 Total Train and Yard Operations Common ........................ .................. .................... .................. ..................
Specialized Service Operations:
507 Administration ............................................................................. .................. .................... .................. ..................

508 Pickup and Delivery and Marine Line Haul ............................... .................. .................... .................. ..................
143

Freight
Material,
Salaries
and General—
wages— (e)
and lubri- (d)
(b) cants—(c)
509 Loading and Unloading and Local Marine ................................. .................. .................... .................. ..................
510 Protection Services .................................................................... .................. .................... .................. ..................
513 Casualties and Insurance .......................................................... 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 ....................................... .................. .................... .................. ..................
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 ...................................................... .................. .................... .................. ..................
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 Payrolls ............. 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 ..................................................................................................................................... ..................
144
Amount
663 Freight train revenue ton-mile costs ............................................................................................................... ..................

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

Direct on- Overhead
branch movement
(1) On-Branch Service Units—Freight-Car Accounts:

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

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

852 Floating equipment car-days .............................................................................. .................. .................. ..................
145

855 Locomotive days ................................................................................................. .................. .................. ..................

Train hours
861 Train hours ......................................................................................................... .................. .................. ..................

(2) Off-Branch Service Units—Car-Mile Accounts:

822 Freight train loaded car-miles by car type:
01 Box—General service—unequipped .................................................................... .................. .................. ..................
02 Box—General service—equipped ........................................................................ .................. .................. ..................
03 Box—Special service ............................................................................................ .................. .................. ..................
04 Gondola—General service ................................................................................... .................. .................. ..................
05 Gondola—Special service .................................................................................... .................. .................. ..................
06 Hopper—open—General service ......................................................................... .................. .................. ..................
07 Hopper—open—Special service .......................................................................... .................. .................. ..................
08 Hopper—covered .................................................................................................. .................. .................. ..................
09 Stock ..................................................................................................................... .................. .................. ..................
10 Flat—General service ........................................................................................... .................. .................. ..................
11 Flat—Special service ............................................................................................ .................. .................. ..................
12 Flat—TOFC .......................................................................................................... .................. .................. ..................
13 Autorack ................................................................................................................ .................. .................. ..................
14 Refrigerator—Meat mechanical ............................................................................ .................. .................. ..................
15 Refrigerator—Other mechanical ........................................................................... .................. .................. ..................
16 Refrigerator—Meat nonmechanical ...................................................................... .................. .................. ..................
17 Refrigerator—Other nonmechanical ..................................................................... .................. .................. ..................
18 Tank 9,999 gallons and under ............................................................................. .................. .................. ..................
19 Tank 10,000–18,999 gal ....................................................................................... .................. .................. ..................
20 Tank 19,000–21,999 gal ....................................................................................... .................. .................. ..................
21 Tank 22,000–27,999 gal ....................................................................................... .................. .................. ..................
22 Tank 28,000–31,999 gal ....................................................................................... .................. .................. ..................
23 Tank 32,000 and over .......................................................................................... .................. .................. ..................
24 All other ................................................................................................................ .................. .................. ..................
Ton-Mile Accounts
831 Revenue ton-miles ..................................................................................................... .................. .................. ..................
[43 FR 1733, Jan. 11, 1978, as amended at 43 FR 28498, June 30, 1978; 44 FR 9730, Feb. 14, 1979]
950 Text and chart of accounts. (4) Amounts determined to be

This section defines each account uncollectible shall be accounted for in
outlined in the format shown under accordance with the text of account 63–
61–00, ‘‘General—Uncollectible ac-
section 940 of these regulations.
counts.’’
(a) Attributable revenues—101 Freight.
(1) This account shall include revenue ITEMS TO BE CREDITED
from the transportation of freight and (a) Revenue upon the basis of local freight
from transit, stop, and recognizing tariff rates, regardless of class of train in
privileges, upon the basis of lawful tar- which the freight is transported.
iff rates. (b) The carrier’s proportion of revenue
(2) This account shall include collec- upon the basis of through freight tariff rates,
tions in excess of tariff charges, except regardless of class of train in which the
freight is transported.
where such amounts are segregated and
(c) Revenue from transportation of mail
held subject to refund. matter, and empty mail pouches, at freight
(3) Proceeds derived from the sale of rates.
unclaimed and refused freight which (d) Revenue from transportation of freight
has been transported in accordance on special trains at rates based on weights of
with the contract of shipment shall be shipments.
credited to this account in cases where (e) Revenue on basis of classifications and
such items can be readily identified. freight tariffs from transportation of care-
takers of freight shipments.
Uncollectible tariff charges on such
(f) Revenue from reconsigning privileges.
shipments shall be charged to this ac-
(g) Revenue from stop privileges.

count. (h) Revenue from transit privileges.
146
(i) Revenue upon the basis of arbitraries joint arrangement, it shall include the entire
out of freight, rates for water transfers compensation in its revenue and statistics,
(ferriage, lighterage, and floatage). charging the appropriate joint facility ex-
(j) Revenue from transportation of trailers pense and rental accounts with the amounts
and containers on flat cars in TOFC/COFC paid the lessor company, and the lessor com-
service upon the basis of all-rail line-haul pany shall credit the corresponding ac-
freight tariff rates and under arrangements counts.
for motor carrier-railroad joint haul, and NOTE D: Revenue from the transportation
from the loading and unloading of trailers of caretakers of freight shipments, when not
and containers on and from flat cars upon included as a part of the freight charges on
the basis of tariff rates and under arrange- the waybill covering the freight shipments,
ments for motor carrier-railroad joint haul. shall be credited to account 102, ‘‘Pas-
senger.’’
ITEMS TO BE CHARGED NOTE E: This account shall be maintained
(a) Amounts paid as bridge and ferry so as to show separately payments and al-
arbitraries on freight. lowances for (a) terminal collection and de-
(b) Amounts paid for completing a haul. livery services when performed in connection
(c) Amounts paid for elevation of freight. with line-haul transportation of freight on
(d) Amounts paid for switching services, in the basis of freight tariff rates, further sepa-
rated between (1) TOFC/COFC service, and (2)
connection with the transportation of
all other freight service; also (b) payments
freight, on the basis of switching tariffs, and
for switching services when performed in
allowances out of through rates, including
connection with line-haul transportation of
amounts paid for switching empty cars in
freight on the basis of switching tariffs and
connection with a freight revenue move-
allowances out of freight rates, including the
ment.
switching of empty cars in connection with a
(e) Amounts paid for transferring freight
revenue movement, and (c) payments on
between stations.
basis of tariff rates for loading and unloading
(f) Arbitraries and allowances to others for
livestock.
lighterage and wharfage.
(g) The carrier’s proportion of overcharges 104 Switching. (1) This account shall
resulting from the use of erroneous rates, include the revenue from switching
weights, classifications or computations. service upon the basis of lawful tariff
(h) The carrier’s proportion of refunds on rates. To this account shall be credited
account of errors in routing and billing. the carrier’s revenue upon the basis of
(i) The carrier’s proportion of uncollected tariff rates, or the carrier’s allowance
revenue on freight lost or destroyed in tran- out of through rates, from the switch-
sit.
ing of cars of all kinds, loaded or
(j) The carrier’s proportion of uncollected
tariff charges on damaged shipments for empty, either locally at a station or
which charges neither shipper nor consignee within a switching district, between
is liable. connecting lines, between local indus-
(k) Amounts paid on basis of tariff rates tries, or between connecting lines and
for loading and unloading livestock. local industries; revenue upon the basis
(l) Amounts paid to motor truck compa- of distinct tariff rates for ‘‘trapcar’’
nies for hauling trailers and containers to and ‘‘ferry-car’’ service and for spot-
and from TOFC/COFC terminals, and allow-
ting cars; also the revenue from
ances to shippers who perform such service
on the basis of tariff rates. interwork switching at industrial
plants, and the revenue from ‘‘penalty
NOTE A: Amounts paid for switching empty
cars other than in connection with loaded switching’’ incident to the improper
movements shall be charged to operating ex- delivery of cars by other carriers.
pense account 61–32–XX, ‘‘General—Other (2) To this account shall be charged
Expenses—Transportation, Yard, Freight,’’ amounts paid for switching when such
except that amounts paid for switching switching service is provided for in the
equipment for repairs shall be included in switching rate charged by the carrier.
the appropriate equipment repair accounts. NOTE: ‘‘Penalty switching’’ charges paid by
NOTE B: Other carriers’ proportion of rev- the carrier shall be included in expense ac-
enue and of uncollectible undercharges paid count 61–32–XX, ‘‘General—Other Expenses—
by the carrier on account of its errors in Transportation, Yard, Freight.’’
routing and billing shall be charged to oper- 105 Water transfers. (1) This account
ating expense account 61–35–76, ‘‘General—
shall include the revenue, from the
Other Expenses—Transportation, Adminis-
trative Support.’’ transfer by water (ferriage, lighterage,
NOTE C: When a lessee company transports and floatage), of passenger, freight, ve-
freight over the tracks of another carrier on hicles, and livestock, upon the basis of
the basis of a proportion of revenues under a lawful local tariff rates.
147
(2) This account also shall include 121 Joint facility, credit. This account
revenue from water transfers of other shall include the carrier’s proportion of
traffic, such as the revenue from tow- revenue collected by others in connec-
ing beyond lighterage limits and all tion with the operation of joint tracks,
other towing for which an extra charge yards, terminals, and other facilities,
is made; insurance of freight afloat including revenue from hotels, res-
when billed out at other than cost; taurants, grain elevators, sale of
storage of freight afloat; grain overage power, and other miscellaneous oper-
in boats; pumping performed for out- ations.
side parties; and for other similar
NOTE A: The purpose of this account is to
sources. show the amounts of revenue from the oper-
(3) To this account shall be charged ation of joint tracks, yards, terminals and
amounts payable to other companies or other facilities operated by other companies,
individuals for extra lighterage, extra which under existing contracts or agree-
towing, and for all other service when ments are credited by the operating com-
such payments represent revenue col- pany to the tenant companies which partici-
lected and credited to this account and pate therein. The bill rendered by any cred-
not a directed expense. itor company against a debtor company for
the latter’s proportion of the expense of
NOTE: No revenue shall be included in this
maintenance and operation of joint facili-
account for water transfers of passengers or
ties, which includes also a credit covering a
shipments upon the basis of arbitraries out
proportion of the revenue to be paid over,
of rates for transportation involving rail line
shall show the distribution of the credit for
haul.
such proportion of the revenue separately
106 Demurrage. This account shall in- from the distribution of the expense of oper-
clude the revenue from the detention of ation.
cars incident to loading, unloading, re- NOTE B: No credits shall be made to this
consigning, and stops in transit upon account representing amounts creditable by
the basis of lawful tariffs for demur- the operating company to primary accounts
rage. This account shall also include 101–103, 105, and 110.
the revenue from the detention of trail- 122 Joint facility, debit. This account
ers and containers used in TOFC/COFC shall include that proportion of rev-
service, incident to loading and unload- enue from the operation of joint
ing, upon the basis of tariff rates. tracks, yards, terminals, and other fa-
NOTE: This account shall be maintained so cilities, which is creditable to other
as to reflect separately (1) revenue from de- companies, including revenue from ho-
tention of cars, and (2) revenue from deten- tels, restaurants, grain elevators, sale
tion of trailers and containers used in TOFC/
COFC service.
of power, and other miscellaneous oper-
ations.
110 Incidental. This account is de-
signed to show the amounts which the NOTE A: The purpose of this account is to
carrier becomes entitled to receive show the amount of revenue from operation
from services rendered incidentally of a terminal company or other carrier
which, under the terms of existing contracts
with rail-line and water-line transpor-
or agreements covering the joint use of
tation; for the use of facilities of which tracks, yards, and other facilities, is credited
the expenses for operation and mainte- to other carriers that participate in the ben-
nance are not separable from railway efits from such joint use. The bill rendered
expenses and from incidental sources by a creditor company against a debtor com-
not provided for elsewhere. Among the pany for the latter’s proportion of expense of
items included in this account are rev- maintaining and operating joint facilities,
enues derived from (1) hotels and res- which includes a credit covering the debtor
taurants, (2) operations conducted at company’s proportion of the revenues from
stations and on trains by individual or operation of such joint facilities, shall indi-
cate separately the proper distribution of
companies other than railway compa-
both the revenues and the expenses included
nies, (3) storage, (4) the sale of electric in the bill, and such distribution shall be ad-
power, (5) renting property operated hered to the debtor.
and maintained in connection with the NOTE B: No debits shall be made to this ac-
property used in the carrier’s transpor- count representing amounts creditable by
tation operations and from railway op- the operating company to primary accounts
erations not provided for elsewhere. 101–103, 105, and 110.
148
OTHER INCOME ACCOUNTS credited to account 570 ‘‘Extraordinary

Items,’’ upon approval by the Commis-
506 Revenues from property used in sion; however, gains from extinguish-
other than carrier operations. This ac- ment of debt (excluding debt maturing
count shall include the total revenues serially), which is made to satisfy sink-
derived from property used in other ing fund requirements, shall be re-
than carrier operations, the cost of corded in this account regardless of
which is includible in balance-sheet ac- amount.
count 737, ‘‘Property used in other than 599 Subsidy payments from preexisting
carrier operations.’’ contracts. This account shall include all
510 Miscellaneous rent income. (1) This payments made to the operating car-
account shall include such rents of rier of a subsidized line that (1) existed
property owned and controlled by the prior to the commencement of oper-
accounting carrier as are not provided ations under a subsidy operating agree-
for in the foregoing accounts. ment and (2) would cease if freight
(2) This account shall be charged
service on the line were discontinued.
with the cost of maintenance of the (b) On-branch avoidable cost—(1) Ac-
property rented, also specific inci- tual and apportioned expense accounts.
dental expenses in connection with
such property, such as the cost of nego- PERSONNEL
tiating contracts, advertising for ten- Control ............................................................... 10–00–00
ants, fees paid conveyancers, collec-
This account may be used as a control ac-
tors’ commissions, and analogous count for all accounts in the PERSONNEL
items. Series: Salaries and Wages; Fringe Benefits
NOTE A: If property the rent of which is Not Included in Compensation.
chargeable to account 543—‘‘Miscellaneous Salaries and Wages—Control. This control
rents,’’ is sublet by the accounting company, account includes the compensation payable
the rent receivable therefore shall be cred- to employees for services performed. It in-
ited to this account. cludes amounts payable in connection with
NOTE B: Taxes on property the rent of profit sharing and stock option plans that
which is creditable to this account shall be are part of employee compensation. This
charged to account 553—‘‘Taxes on property control account also includes amounts of
used in other than carrier operations.’’ compensation payable to employees for paid
NOTE C: The rent from property carried in time off as a fringe benefit: vacation pay,
balance-sheet account 737—‘‘Property used holiday pay, sick pay, and other payments
in other than carrier operations,’’ shall not considered direct compensation for time not
be included in this account, but in account worked. Amounts of labor billed by contrac-
506—‘‘Revenues from property used in other tors, other companies, and joint facilities,
than carrier operations.’’ are not considered salaries and wages of the
NOTE D: Rent and other income from real carrier company and are not to be included
estate acquired for new lines or for additions in this account group. Its components shall
and betterments shall be credited to the ap- be distributed to the following accounts in
propriate road and equipment accounts until accordance with instruction 1–14 of Part 1201,
the completion or coming into service of the Subpart A:
property. Salaries and wages—way and structures—run-
519 Miscellaneous income. (1) This ac- ning: Freight ................................................... 11–11–XX
count shall include all items, not pro- This account includes the compensation
vided for elsewhere, properly creditable payable to all repair and maintenance em-
to income accounts during the current ployees and others who are associated with
year. Among the items which shall be the repair and maintenance of the carrier’s
included in this account are: roadway and track on the line of road and
(i) Cancellation of balance sheet ac- outside of classification yards. Compensa-
tion payable to officers and technical and
counts representing unclaimed wages
clerical employees shall only be assigned to
and vouchered accounts written off be- Way and Structures—Other. This account
cause of carrier’s inability to locate shall be subdivided by the following func-
the creditor. tions:
(ii) Profit from sale of land used for Repair and maintenance
transportation purposes, of noncarrier Roadway ............................................................ 11–11–10
property and of securities acquired for Tunnels and subways ........................................ 11–11–11
investment purposes. Bridges and culverts .......................................... 11–11–12
Track laying and surfacing ................................ 11–11–17
(2) Gains for extinguishment of debt Signals and interlockers .................................... 11–11–19
shall be aggregated and, if material, Highway grade crossings .................................. 11–11–22
149
Dismantling retired property .............................. 11–11–39 ical employees, repair and maintenance em-
Road property and equipment damaged ........... 11–11–48 ployees, and others who are associated with
Other—other ...................................................... 11–11–99 the repair and maintenance of locomotives,
Salaries and wages—way and structures—
switching: Freight ........................................... 11–12–XX
whether owned by the carrier or by others.
This account shall be subdivided by the fol-
This account includes the compensation lowing functions:
payable to all repair and maintenance em- Administration—general ..................................... 11–21–01
ployees and others who are associated with Repair and maintenance
the repair and maintenance of the carrier’s Dismantling retired property .............................. 11–21–39
roadway and track within classification Shop machinery ................................................. 11–21–40
yards and stations. Compensation payable to Locomotives ....................................................... 11–21–41
officers and technical and clerical employees Road property and equipment damaged ........... 11–21–48
shall be assigned to Way and Structures— Other—other ...................................................... 11–21–99
Other. This account shall be subdivided by Salaries and Wages—Equipment—Freight
Cars: Freight .................................................. 11–22–XX
Repair and maintenance This account includes the compensation
Roadway ............................................................ 11–12–10 payable to all officers, technical and clerical
Tunnels and subways ........................................ 11–12–11 employees, repair and maintenance employ-
Bridges and culverts .......................................... 11–12–12 ees, and others, who are associated with the
Track laying and surfacing ................................ 11–12–17 repair and maintenance of freight cars,
Signals and interlockers .................................... 11–12–19
Highway grade crossings .................................. 11–12–22
whether owned by the carrier or by others.
Dismantling retired property .............................. 11–12–39 This account shall be subdivided by the fol-
Road property and equipment damaged ........... 11–12–48 lowing functions:
Other—other ...................................................... 11–12–99 Administration—general ..................................... 11–22–01
Salaries and wages—way and structures—
Repair and maintenance
other: Freight .................................................. 11–13–XX
Dismantling retired property .............................. 11–22–39
This account includes the compensation Shop machinery ................................................. 11–22–40
payable to all repair and maintenance em- Freight cars ........................................................ 11–22–42
ployees and others who are associated with Road property and equipment damaged ........... 11–22–48
Other—other ...................................................... 11–22–99
the repair and maintenance of the carrier’s
Salaries and wages—equipment—other equip-
structures other than roadway and track. ment: Freight .................................................. 11–23–XX
Each administration account (functions 02–
06) includes the compensation payable to all This account includes the compensation
officers and technical and clerical employees payable to all officers, technical and clerical
associated with the Way and Structures Ac- employees, repair and maintenance employ-
tivity. This account shall be subdivided by ees, and others, who are associated with the
the following functions: repair and maintenance of equipment other
Administration than locomotives and freight cars, whether
Track .................................................................. 11–13–02
owned by the carrier or by others. This ac-
Bridges and buildings ........................................ 11–13–03 count shall be subdivided by the following
Signals ............................................................... 11–13–04 functions:
Communications ................................................ 11–13–05 Administration—general ..................................... 11–23–01
Other .................................................................. 11–13–06 Repair and maintenance
Repair and maintenance Dismantling retired property .............................. 11–23–39
Communication systems .................................... 11–13–20 Shop machinery ................................................. 11–23–40
Electric power systems ...................................... 11–13–21 Trucks, trailers, containers in revenue service .. 11–23–43
Station and office buildings ............................... 11–13–23 Floating equipment—revenue service ............... 11–23–44
Shop buildings—locomotives ............................. 11–13–24 Passenger and other revenue equipment ......... 11–23–45
Shop buildings—freight cars .............................. 11–13–25 Computers and data processing equipment ..... 11–23–46
Shop buildings—other ....................................... 11–13–26 Work and other non-revenue equipment ........... 11–23–47
Locomotive servicing facilities ........................... 11–13–27 Road property and equipment damaged ........... 11–23–48
Miscellaneous buildings and structures ............. 11–13–28 Other—other ...................................................... 11–23–99
Coal terminals .................................................... 11–13–29 Salaries and wages—transportation—train:
Ore terminals ..................................................... 11–13–30 Freight ............................................................ 11–31–XX
TOFC/COFC terminals ...................................... 11–13–31
Other marine terminals ...................................... 11–13–32 This account includes the compensation
Motor vehicle loading and distribution facilities 11–13–33 payable to all officers, technical and clerical
Facilities for other specialized services oper- employees, engine and train crews, and other
ations .............................................................. 11–13–35 operational employees, who are associated
Roadway machines ........................................... 11–13–36
with the dispatching and operation of freight
Small tools and supplies .................................... 11–13–37
Snow removal .................................................... 11–13–38 trains over the roadway and outside of clas-
Dismantling retired property .............................. 11–13–39 sification yards. This account shall be sub-
Road property and equipment damaged ........... 11–13–48 divided by the following functions:
Other—other ...................................................... 11–13–99 Administration—general ..................................... 11–31–01
Salaries and wages—equipment—locomotives:
Operations
Freight ............................................................ 11–21–XX
Engine crews ..................................................... 11–31–56
This account includes the compensation Train crews ........................................................ 11–31–57

payable to all officers and technical and cler- Dispatching trains .............................................. 11–31–58
150
Operating switches, signals, interlockers, re- This account includes the compensation
tarders, humps ............................................... 11–31–59 payable to all officers, technical and clerical
Operating drawbridges ...................................... 11–31–60 employees, engine and train crews, and other
Highway crossing protection .............................. 11–31–61 operational employees, who are associated
Train inspection and lubrication ......................... 11–31–62
with providing direct administrative support
Clearing wrecks ................................................. 11–31–63
Locomotive fuel .................................................. 11–31–67
for the Transportation Activity. For further
Electric power purchased/produced for motive clarification refer to the definition of the
power .............................................................. 11–31–68 Administrative Support Operations Sub-
Servicing locomotives ........................................ 11–31–69 activity contained in Part 1201, Subpart A.
Other—other ...................................................... 11–31–99 This account shall be subdivided by the fol-
Salaries and wages—transportation—yard: lowing functions:
Freight ............................................................ 11–32–XX
Administration—general ..................................... 11–35–01
This account includes the compensation Operations
payable to all officers, technical and clerical Clerical and accounting employees ................... 11–35–76
employees, engine and train crews, and other Communication systems operations .................. 11–35–77
operational employees, who are associated Loss and damage claims processing ................ 11–35–78
with the movement of freight cars within Other—other ...................................................... 11–35–99
classification yards and in terminal switch- Salaries and wages—general and administra-
ing and transfer service. This account shall tive: Freight .................................................... 11–61–XX
be subdivided by the following functions: This account includes the compensation
Administration—general ..................................... 11–32–01 payable to all employees who are associated
Operations with overall administration or other general
Operating switches, signals, interlockers, re- support for carrier operations. Overall ad-
tarders, humps ............................................... 11–32–59 ministration includes executive, legal, finan-
Clearing wrecks ................................................. 11–32–63 cial, treasury, accounting, budgeting, tax-
Switch crews ...................................................... 11–32–64 ation, corporate planning, costing, mar-
Controlling operations ........................................ 11–32–65 keting, advertising, traffic, corporate sec-
Yard and terminal clerical .................................. 11–32–66
Locomotive fuel .................................................. 11–32–67
retary, public relations, real estate, insur-
Electrical power purchased/produced for mo- ance administration, personnel administra-
tive power ....................................................... 11–32–68 tion, pension plan administration, general
Servicing locomotives ........................................ 11–32–69 purchasing, labor relations, internal audit-
Other—other ...................................................... 11–32–99 ing, industrial engineering, and regulatory
Salaries and wages—transportation—train and reporting. For further clarification refer to
yard common: Freight .................................... 11–33–XX the definition of the General and Adminis-
This account includes the compensation trative Activity contained in Part 1201, Sub-
payable to all officers, technical and clerical part A. This account shall be subdivided by
employees, engine and train crews, and other the following functions:
operational employees performing functions Administration—general ..................................... 11–61–01
incurred on behalf of both train and yard op- General
erations. This account shall be subdivided by Accounting, auditing, finance ............................. 11–61–86
the following functions: Management services and data processing ...... 11–61–87
Operations ......................................................... .................... Marketing ........................................................... 11–61–88
Cleaning car interiors ......................................... 11–33–70 Sales .................................................................. 11–61–89
Adjusting and transferring loads ........................ 11–33–71 Industrial development ....................................... 11–61–90
Car loading devices and grain doors ................ 11–33–72 Personnel and labor relations ............................ 11–61–91
Salaries and wages—transportation—special- Legal and secretarial ......................................... 11–61–92
ized services: Freight ..................................... 11–34–XX Public relations and advertising ......................... 11–61–93
Research and development ............................... 11–61–94
This account includes the compensation Other—other ...................................................... 11–61–99
payable to all officers, technical and clerical Fringe benefits not included in compensation—
employees, engine and train crews, and other control ............................................................. 12–00–00
operational employees who are associated
This control account includes amounts
with operating services which are specialized
payable to others, or other costs charged to
in nature and in cost characteristics. The
expense, for employee benefits which are not
specialized services designated by the Board
considered part of direct compensation.
appear within the definition of specialized
These benefits include the carrier portions of
services. This account shall be subdivided by
Railroad Retirement contributions, pension
expense, unemployment taxes, dental plans,
health plans, hospitalization insurance, life
Operations insurance, subsidies for employee
Pickup and delivery, marine line haul, and rail lunchrooms, company entertainment facili-
substitute service ........................................... 11–34–73 ties for personal use, and other benefits to
Loading, unloading, and local marine ............... 11–34–74
employees that are not includable in direct
Protective service .............................................. 11–34–75
Other—other ...................................................... 11–34–99 compensation. They exclude travel expense
Salaries and wages—transportation—adminis- on company business, casualties, workmen’s

trative support: Freight ................................... 11–35–XX compensation, as well as dues, memberships,
151
and similar items when the direct bene- This account includes the amounts payable
ficiary is clearly the company rather than to others, or other costs charged to expense,
the employee for employee benefits which are not consid-
Fringe benefits not included in compensation— ered part of direct compensation for employ-
way and structures—running: Freight ............ 12–11–00 ees who are associated with the dispatching
and operating of freight trains over the road-
This account includes amounts payable to way and outside of classification yards.
others, or other costs charged to expense, for
Fringe benefits not included in compensation—
employee benefits which are not considered transportation—yard: Freight ......................... 12–32–00
part of direct compensation for employees
who are associated with the repair and main- This account includes the amounts payable
tenance of the carrier’s roadway and track to others, or other costs charged to expense,
on the line of road and outside of classifica- for employee benefits which are not consid-
tion yards. ered part of direct compensation for employ-
Fringe benefits not included in compensation— ees who are associated with the movement of
way and structures—switching: Freight ......... 12–12–00 freight cars within classification yards and
This account includes amounts payable to
others, or other costs charged to expense, for transportation—train and yard Common:
employee benefits which are not considered Freight ............................................................ 12–33–00
who are associated with repair and mainte- This account includes the amounts payable
nance of the carrier’s roadway and track to others, or other costs charged to expense,
within classification yards and stations. for employee benefits which are not consid-
Fringe benefits not included in compensation— ered part of direct compensation for employ-
way and structures—other: Freight ................ 12–13–00 ees performing functions incurred on behalf
of both train and yard operations.
This account includes amounts payable to Fringe benefits not included in compensation—
others, or other costs charged to expense, for transportation—specialized services: Freight 12–34–00
employee benefits which are not considered
part of direct compensation for employees This account includes the amounts payable
who are associated with the repair and main- to others, or other costs charged to expense,
tenance of the carrier’s structures other for employee benefits which are not consid-
than roadway and track, and who are associ- ered part of direct compensation for employ-
ated with the Administration of the Way and ees who are associated with operating serv-
Structures Activity. ices which are specialized in nature and in
cost characteristics. The specialized services
equipment—locomotives: Freight ................... 12–21–00 designated by the Board appear within the
definition of specialized services.
This account includes amounts payable to Fringe benefits not included in compensation—
others, or other costs charged to expense, for transportation—administrative support:
employee benefits which are not considered Freight ............................................................ 12–35–00
who are associated with the repair and main- This account includes the amounts payable
tenance of locomotives, whether owned by to others, or other costs charged to expense,
the carrier or by others. for employee benefits which are not consid-
ered part of direct compensation for employ-
equipment—freight cars: Freight .................... 12–22–00
ees who are associated with providing direct
administrative support for the Transpor-
This account includes amounts payable to tation Activity. For further clarification
others, or other costs charged to expense, for refer to the definition of the Administrative
employee benefits which are not considered Support Operations Subactivity contained in
part of direct compensation for employees Part 1201, Subpart A.
who are associated with the repair and main- Fringe benefits not included in compensation—
tenance of freight cars, whether owned by general and administrative: Freight ............... 12–61–00
the carrier or by others.
This account includes the amounts payable
to others, or other costs charged to expense,
equipment—other equipment: ........................ 12–23–00
for employee benefits which are not consid-
This account includes the amounts payable ered part of direct compensation for employ-
to others, or other costs charged to expense, ees who provide overall administration or
for employee benefits which are not consid- other general support for carrier operations.
ered part of direct compensation for employ- Overall administration includes executive,
ees who are associated with the repair and legal, financial, treasury, accounting, budg-
maintenance of equipment other than loco- eting, taxation, corporate planning, costing,
motives and freight cars, whether owned by marketing, advertising, traffic, corporate
the carrier or by others. secretary, public relations, real estate, in-
Fringe benefits not included in compensation— surance administration, personnel adminis-

transportation—train: Freight ......................... 12–31–00 tration, pension plan administration, general
152
purchasing, labor relations, internal audit- charges to expense for all materials, small
ing, industrial engineering, and regulatory tools, supplies, fuels, lubricants, purchased
reporting. For further clarification refer to standard stationery and forms, freight-in on
the definition of the General and Adminis- materials and supplies, and similar items. Its
trative Activity contained in Part 1201, Sub- components shall be distributed to the fol-
part A. lowing functions in accordance with instruc-
tion 1–8 of Part 1201, Subpart A:
MATERIEL Repair and maintenance
Control ............................................................... 20–00–00 Roadway ............................................................ 21–12–10
Tunnels and subways ........................................ 21–12–11
This account may be used as a control ac- Bridges and culverts .......................................... 21–12–12
count for the MATERIEL series: Materials, Ties .................................................................... 21–12–13
Tools, Supplies, Fuels, Lubricants. Rails ................................................................... 21–12–14
Materials, tools, supplies, fuels, lubricants— Other track material ........................................... 21–12–15
Control ............................................................ 21–00–00 Ballast ................................................................ 21–12–16
This account group includes the cost of Signals and interlockers .................................... 21–12–19
items installed or commodities consumed Highway grade crossings .................................. 21–12–22
which are charged to expense in connection Dismantling retired property .............................. 21–12–39
with carrier operations. This account in- Road property and equipment damaged ........... 21–12–48
Other—other ...................................................... 21–12–99
cludes charges to expense for all materials, Materials, tools, supplies, fuels, lubricants—
small tools, supplies, fuels, lubricants, pur- way and structures—other: Freight ................ 21–13–XX
chased standard stationery and forms,
freight-in on materials and supplies, and This account includes the cost of items in-
similar items. This account excludes pur- stalled or commodities consumed which are
chased services such as utilities, commu- charged to expense, where such items are
nications, postage and other items of similar consumed in the performance or support of
nature. the repair and maintenance of the carrier’s
Materials, tools, supplies, fuels, lubricants— structures not provided for in running or
way and structures—Running: Freight .......... 21–11–XX switching. This account includes charges to
expense for all materials, small tools, sup-
This account includes the cost of items in- plies, fuels, lubricants, purchased standard
stalled or commodities consumed which are stationery and forms, freight-in on materials
charged to expense, where such items are and supplies, and similar items. Its compo-
consumed in the performance or support of nents shall be distributed to the following
the repair and maintenance of the carrier’s functions in accordance with instruction 1–8
roadway and track on the line of the road of Part 1201, Subpart A:
and outside of classification yards. This ac-
Administration
count includes charges to expense for all ma-
Track .................................................................. 21–13–02
terials, small tools, supplies, fuels, lubri-
Bridges and buildings ........................................ 21–13–03
cants, purchased standard stationery and Signals ............................................................... 21–13–04
forms, freight-in on materials, and supplies, Communications ................................................ 21–13–05
and similar items. Its components shall be Other .................................................................. 21–13–06
distributed to the following functions in ac- Repair and maintenance
cordance with instruction 1–8 of Part 1201, Communication systems .................................... 21–13–20
Subpart A: Electric power systems ...................................... 21–13–21
Repair and maintenance Station and office buildings ............................... 21–13–23
Shop buildings—locomotives ............................. 21–13–24
Roadway ............................................................ 21–11–10
Shop buildings—freight cars .............................. 21–13–25
Shop buildings—other equipment ..................... 21–13–26
Bridges and culverts .......................................... 21–11–12
Locomotive servicing facilities ........................... 21–13–27
Ties .................................................................... 21–11–13
Miscellaneous buildings and structures ............. 21–13–28
Rails ................................................................... 21–11–14
Coal terminals .................................................... 21–13–29
Other track material ........................................... 21–11–15
Ore terminals ..................................................... 21–13–30
Ballast ................................................................ 21–11–16
Other marine terminals ...................................... 21–13–32
Motor vehicle loading and distribution facilities 21–13–33
Facilities for other specialized services oper-
ations .............................................................. 21–13–35
Road property and equipment damaged ........... 21–11–48
Roadway machines ........................................... 21–13–36
Other—other ...................................................... 21–11–99
Small tools and supplies .................................... 21–13–37
Materials, tools, supplies, fuels, lubricants—
Snow removal .................................................... 21–13–38
way and structures—switching: Freight ......... 21–12–XX
This account includes the cost of items in- Road property and equipment damaged ........... 21–13–48
stalled or commodities consumed which are Other—other ...................................................... 21–13–99
charged to expense, where such items are Materials, tools, supplies, fuels, lubricants—
equipment—locomotives: Freight ................... 21–21–XX
the repair and maintenance of the carrier’s This account includes the cost of items in-
roadway and track within classification stalled or commodities consumed which are
yards and stations. This account includes charged to expense, where such items are
153
consumed in the performance or support of Road property and equipment damaged ........... 21–23–48
the repair and maintenance of locomotives, Other—other ...................................................... 21–23–99
whether owned by the carrier or by others. Materials, tools, supplies, fuels, lubricants—
transportation—train: Freight ......................... 21–31–XX
This account includes charges to expense for
all materials, small tools, supplies, fuels, lu- This account includes the cost of items in-
bricants, purchased standard stationery and stalled or commodities consumed which are
forms, freight-in on materials and supplies, charged to expense, where such items are
and similar items. Its components shall be consumed in association with the dis-
distributed to the following functions in ac- patching and operation of freight trains over
cordance with instruction 1–8 of Part 1201, the roadway and outside of classification
Subpart A: yards. This account includes charges to ex-
Administration—General .................................... 21–21–01 pense for all materials, small tools, supplies,
Repair and maintenance fuels, lubricants, purchased standard sta-
Dismantling retired property .............................. 21–21–39 tionery and forms, freight-in on materials
Machinery .......................................................... 21–21–40 and supplies, and similar items. Its compo-
Locomotives ....................................................... 21–21–41 nents shall be distributed to the following
Road property and equipment ........................... 21–21–48 functions in accordance with instruction 1–8
Other—other ...................................................... 21–21–99 of Part 1201, Subpart A:
Materials, tools, supplies, fuels, lubricants—
equipment—freight cars: Freight .................... 21–22–XX Administration—general ..................................... 21–31–01
Operations
This account includes the cost of items in- Engine crews ..................................................... 21–31–56
stalled or commodities consumed which are Train crews ........................................................ 21–31–57
charged to expense, where such items are Dispatching trains .............................................. 21–31–58
consumed in the performance or support of Operating switches, signals, interlockers, re-
the repair and maintenance of freight cars, tarders, humps ............................................... 21–31–59
whether owned by the carrier or by others. Operating drawbridges ...................................... 21–31–60
Highway crossing protection .............................. 21–31–61
This account includes charges to expense for Train inspection and lubrication ......................... 21–31–62
all materials, small tools, supplies, fuels, lu- Clearing wrecks ................................................. 21–31–63
bricants, purchased standard stationery and Locomotive fuels ................................................ 21–31–67
forms, freight-in on materials and supplies, Electric power purchased/produced for motive
and similar items. Its components shall be power .............................................................. 21–31–68
Servicing locomotives ........................................ 21–31–69
distributed to the following functions in ac-
Other—other ...................................................... 21–31–99
cordance with instruction 1–8 of Part 1201, Materials, tools, supplies, fuels, lubricants—
Subpart A: transportation—yard: Freight ......................... 21–32–XX
Dismantling retired property .............................. 21–22–39 charged to expense, where such items are
Machinery .......................................................... 21–22–40
Freight cars ........................................................ 21–22–42 consumed in association with the movement
Road property and equipment damaged ........... 21–22–48 of freight cars within classification yards
Other—other ...................................................... 21–22–99 and in terminal switching and transfer serv-
Materials, tools, supplies, fuels, lubricants— ice. This account includes charges to expense
equipment—other equipment: Freight ........... 21–23–XX for all materials, small tools, supplies, fuels,
This account includes the cost of items in- lubricants, purchased standard statonery
stalled or commodities consumed which are and forms, freight-in on materials and sup-
charged to expense, where such items are plies, and similar items. Its components
consumed in the performance or support of shall be distributed to the following func-
the repair and maintenance of equipment tions in accordance with instruction 1–8 of
other than locomotives and freight cars, Part 1201, Subpart A:
whether owned by the carrier or by others. Administration—general ..................................... 21–32–01
This account includes charges to expense for Operations
all materials, small tools, supplies, fuels, lu- Operating switches, signals, interlockers, re-
bricants, purchased standard stationery and tarders, humps ............................................... 21–32–59
forms, freight-in on materials and supplies, Clearing wrecks ................................................. 21–32–63
Switch crews ...................................................... 21–32–64
and similar items. Its components shall be Controlling operations ........................................ 21–32–65
distributed to the following functions in ac- Yard and terminal clerical .................................. 21–32–66
cordance with instruction 1–8 of Part 1201, Locomotive fuel .................................................. 21–32–67
Subpart A: Electric power purchased/produced for motive
Administration—general ..................................... 21–23–01 power .............................................................. 21–32–68
Repair and maintenance Other—other ...................................................... 21–32–99
Dismantling retired property .............................. 21–23–39 Materials, tools, supplies, fuels, lubricants—
Machinery .......................................................... 21–23–40 transportation—train and yard common:
Trucks, trailers, containers in revenue service .. 21–23–43 Freight ............................................................ 21–33–XX
Floating equipment—revenue service ............... 21–23–44
Passenger and other revenue equipment ......... 21–23–45 This account includes the cost of items in-
Computers and data processing equipment ..... 21–23–46 stalled or commodities consumed which are
Work and other nonrevenue equipment ............ 21–23–47 charged to expense, where such items are
154
consumed on behalf of both train and yard Marketing ........................................................... 21–61–88
operations. This account includes charges to Sales .................................................................. 21–61–89
expense for all materials, small tools, sup- Industrial development ....................................... 21–61–90
Personnel and labor relations ............................ 21–61–91
plies, fuels, lubricants, purchased standard Legal and secretarial ......................................... 21–61–92
stationery and forms, freight-in on materials Public relations and advertising ......................... 21–61–93
and supplies, and similar items. Its compo- Research and development ............................... 21–61–94
nents shall be distributed to the following Other—other ...................................................... 21–61–99
functions in accordance with instruction 1–8
of Part 1201, Subpart A: PURCHASED SERVICES
Operations Control ............................................................... 30–00–00
Cleaning car interiors ......................................... 21–33–70 This account may be used as a control ac-
Adjusting, transferring loads .............................. 21–33–71
Car loading devices and grain doors ................ 21–33–72 count for all accounts in the PURCHASED
Materials, tools, supplies, fuels, lubricants— SERVICES series:
transportation—specialized services: Freight 21–34–XX Lease rentals—Credit ........................................ ....................
Joint facility rent—Debit ..................................... ....................
This account includes the cost of items in- Joint facility rent—Credit .................................... ....................
stalled or commodities consumed which are Other rents—Debit ............................................. ....................
charged to expense, where such items are Other rents—Credit ............................................ ....................
consumed in operating services which are Joint facility—Debit ............................................ ....................
specialized in nature and in cost characteris- Joint facility—Credit ........................................... ....................
Repairs billed by others—Debit ......................... ....................
tics. The specialized services designated by Repairs billed to others—Credit ........................ ....................
the Commission appear within the definition Other purchased services .................................. ....................
of specialized services. This account shall be Lease rentals—debit—control ........................... 31–00–00
subdivided by the following functions:
This control account includes the rentals
of road property and equipment with terms
Operations
of 30 days or more. This account excludes
Pick up and delivery, marine line haul, and rail joint facility and joint trackage rents, insur-
substitute service ........................................... 21–34–73
ance and maintenance elements of lease pay-
Loading, unloading, and local marine ............... 21–34–74
Protective services ............................................. 21–34–75 ments, and all elements of capital leases as
Other—other ...................................................... 21–34–99 defined in FASB Statement No. 13. The com-
Materials, tools, supplies, fuels, lubricants— ponents of this natural expense will be dis-
transportation—administrative support: tributed to the following accounts in accord-
Freight ............................................................ 21–35–XX ance with instruction 1–8 of Part 1201, Sub-
This account includes the cost of items in- part A:
stalled or commodities consumed which are Lease rentals—debit—way and structures—
charged to expense, where such items are running: freight ............................................... 31–11–00
Lease rentals—debit—way and structures—
consumed in association with providing di- switching: freight ............................................ 31–12–00
rect administrative support for the Trans- Lease rentals—debit—way and structures—
portation Activity. For further clarification other: freight ................................................... 31–13–00
refer to the definition of the Administrative Lease rentals—debit—equipment—loco-
Support Operations Subactivity contained in motives: freight ............................................... 31–21–00
Part 1201, Subpart A. This account shall be Lease rentals—debit—equipment—freight cars:
subdivided by the following functions. freight ............................................................. 31–22–00
Lease rentals—debit—equipment—other equip-
Administration—general ..................................... 21–35–01 ment: freight ................................................... 31–23–00
Operations Lease rentals—credit—control .......................... 32–00–00
Clerks, accounting employees ........................... 21–35–76
This control account includes the rentals
Communication systems operations .................. 21–35–77
Loss and damage claims processing ................ 21–35–78 of owned property and equipment or sub-
Other—other ...................................................... 21–35–99 leases of leased road property and equipment
Materials, tools, supplies, fuels, lubricants— with terms of from 30 days to one year.
general and administrative: Freight ............... 21–61–XX Longer term leases are indicative of a non-
This account includes the cost of items in- carrier operation and all revenues and ex-
stalled or commodities consumed which are penses related to such property and equip-
charged to expense, where such items are ment should be classified accordingly and ex-
consumed in providing overall administra- cluded from railroad operations. This ac-
tion or other general support for carrier op- count excludes joint facilities and joint
erations. For further clarification refer to trackage, capital leases, and portions of
the definition of the General and Adminis- lease receipts covering maintenance and in-
trative Activity contained in Part 1201, Sub- surance. The components of this natural ex-
part A. This account shall be subdivided by pense account will be distributed to the fol-
the following functions: lowing accounts in accordance with instruc-
tion 1–8 of Part 1201, Subpart A:
Lease rentals—credit—way and structures—
General running: freight ............................................... 32–11–00
Accounting, auditing, finance ............................. 21–61–86 Lease rentals—credit—way and structures—

Management services and data processing ...... 21–61–87 switching: freight ............................................ 32–12–00
155
Lease rentals—credit—way and structures— Joint facility rents—credit—way and struc-
other: freight ................................................... 32–13–00 tures—other: Freight ...................................... 34–13–00
Lease rentals—credit—equipment—loco- Joint facility rents—credit—equipment—loco-
motives: freight ............................................... 32–21–00 motives: Freight .............................................. 34–21–00
Lease rentals—credit—equipment—freight Joint facility rents—credit—equipment—freight
cars: freight .................................................... 32–22–00 cars: Freight ................................................... 34–22–00
Lease rentals—credit—equipment—other Joint facility rents—credit—equipment—other
equipment: freight .......................................... 32–23–00 equipment: Freight ......................................... 34–23–00
Joint facility rents—debit—control ..................... 33–00–00 Other rents—debit—control ............................... 35–00–00
This control account includes amounts This account includes the rents with terms
payable accrued as rent for equipment, of less than 30 days which are not renewed.
tracks, yards, terminals, and other facilities This account includes all time and mileage
owned or controlled by other carriers, com- payments for interchange locomotive,
panies, or individuals, and in the joint use of freight car, and other revenue equipment
which the accounting company participates. hire. The components of this account will be
Amounts paid or payable by the accounting distributed to the following accounts in ac-
company in reimbursement for taxes on cordance with instruction 1–8 of Part 1201,
property jointly used shall be charged to this Subpart A:
account. Other rents—debit—way and structures—run-
NOTE: The cost of maintenance, operation, ning: Freight: Freight ...................................... 35–11–00
or administration of joint facilities, charge- Other rents—debit—way and structures—
able to the accounting company, shall be switching: Freight ........................................... 35–12–00
charged to the various joint facility ac- Other rents—debit—way and structures—other:
counts (37–XX–00). When the compensation Freight ............................................................ 35–13–00
for the use of joint facilities is a fixed Other rents—debit—equipment—locomotives:
amount or is based upon a charge per ton, Freight ............................................................ 35–21–00
Other rents—debit—equipment—freight cars:
car, or other unit, it shall be fairly appor- Freight ............................................................ 35–22–00
tioned between this account and Joint Facil- Other rents—debit—equipment—other equip-
ity—Dr. (37–XX–00). This apportionment ment: Freight .................................................. 35–23–00
shall be made by the operating company, and Other rents—credit—control .............................. 36–00–00
shall be followed by the accounting com-
pany. The components of this natural ex- This account includes rents with terms of
pense consist of the following accounts: less than 30 days which are not renewed. This
account includes all time and mileage re-
Joint facility rents—debit—way and struc-
tures—running: Freight .................................. 33–11–00 ceipts for interchanged locomotive, freight
Joint facility rents—debit—way and struc- car, and other revenue equipment hire. The
tures—switching: Freight ................................ 33–12–00 components of this account will be distrib-
Joint facility rents—debit—way and struc- uted to the following accounts in accordance
tures—other: Freight ...................................... 33–13–00 with instruction 1–8 of Part 1201, Subpart A:
Joint facility rents—debit—equipment—loco-
Other rents—credit—way and structures—run-
motives: Freight .............................................. 33–21–00
Joint facility rents—debit—equiment—freight ning: Freight ................................................... 36–11–00
cars: Freight ................................................... 33–22–00 Other rents—credit—way and structures—
Joint facility rents—debit—equipment—other switching: Freight ........................................... 36–12–00
equipment: Freight ......................................... 33–23–00 Other rents—credit—way and structures—
Joint facility rents—credit—control .................... 34–00–00 other: Freight .................................................. 36–13–00
Other rents—credit—equipment—locomotives:
This control account includes amounts re- Freight ............................................................ 36–21–00
ceivable accrued for rent of equipment, Other rents—credit—equipment—freight cars:
tracks, yards, terminals and other facilities Freight ............................................................ 36–22–00
Other rents—credit—equipment—other equip-
owned or controlled by the accounting com-
ment: Freight .................................................. 36–23–00
pany and used jointly with other companies Joint facility—debit—control .............................. 37–00–00
or individuals. Amounts receivable from
other companies in reimbursement for taxes This account includes joint trackage and
on property jointly used shall be credited to joint facility costs, exclusive of rents, pay-
this account. able by the railroad to others. The compo-
NOTE: The portion of the cost of mainte- nents of this account will be distributed to
nance, operation, or administration of joint the following accounts in accordance with
facilities recoverable from others shall be instruction 1–8 of Part 1201, Subpart A:
credited to the various joint facility ac- Joint Facility—debit—way and structures—run-
counts (38–XX–00). When the compensation ning: Freight ................................................... 37–11–00
for the use of joint facilities is a fixed Joint Facility—debit—way and structures—
amount or is based upon a charge per ton, switching: Freight ........................................... 37–12–00
Joint Facility—debit—way and structures—
car, or other unit, it shall be fairly appor-
other: Freight .................................................. 37–13–00
tioned by the creditor between this account Joint facility—debit—equipment—locomotives:
and Joint Facility—credit (28–XX–00). Freight ............................................................ 37–21–00
Joint facility rents—credit—way and struc- Joint facility—debit—equipment—freight cars:
tures—running: Freight .................................. 34–11–00 Freight ............................................................ 37–22–00
Joint facility rents—credit—way and struc- Joint facility—debit—equipment—other equip-

tures—switching: Freight ................................ 34–12–00 ment: Freight .................................................. 37–23–00
156
Joint facility—debit—transportation—train: track within classification yards and sta-
Freight ............................................................ 37–31–00 tions. This account shall be subdivided by
Joint facility—debit—transportation—yard: the following functions:
Freight ............................................................ 37–32–00
Joint facility—debit—transportation—special- Repair and maintenance
ized services: Freight ..................................... 37–34–00 Roadway ............................................................ 39–12–10
Joint facility—debit—transportation—adminis- Tunnels and subways ........................................ 39–12–11
trative support: Freight ................................... 37–35–00 Bridges and culverts .......................................... 39–12–12
Joint facility—debit—general and administra- Track laying and surfacing ................................ 39–12–17
tive: Freight .................................................... 37–61–00 Signals and interlockers .................................... 39–12–19
Joint facility—credit—control ............................. 38–00–00 Highway grade crossings .................................. 39–12–22
This account includes joint trackage and Repairs billed by others—debit—way and
joint facility costs, exclusive of rents, pay- structures—other: Freight .............................. 39–13–XX
able by others to the railroad. The compo-
nents of this account will be distributed to This account includes amounts payable by
the following accounts in accordance with the railroad to others for repair and mainte-
instruction 1–8 of Part 1201, Subpart A: nance of the carrier’s structures other than
roadway and track. This account shall be
Joint facility—credit—way and structures—run-
ning: Freight ................................................... 38–11–00 subdivided by the following functions:
Joint facility—credit—way and structures— Repair and maintenance
switching: Freight ........................................... 38–12–00 Communication systems .................................... 39–13–20
Joint facility—credit—way and structures— Electric power systems ...................................... 39–13–21
other: Freight .................................................. 38–13–00 Station and office buildings ............................... 39–13–23
Joint facility—credit—equipment—locomotives: Shop buildings—locomotives ............................. 39–13–24
Freight ............................................................ 38–21–00 Shop buildings—freight cars .............................. 39–13–25
Joint facility—credit—equipment—freight cars: Shop buildings—other equipment ..................... 39–13–26
Freight ............................................................ 38–22–00 Locomotive servicing facilities ........................... 39–13–27
Joint facility—credit—equipment—other equip- Miscellaneous buildings and structures ............. 39–13–28
ment: Freight .................................................. 38–23–00 Coal terminals .................................................... 39–13–29
Joint facility—credit—transportation—train: Ore terminals ..................................................... 39–13–30
Freight ............................................................ 38–31–00 TOFC/COFC terminals ...................................... 39–13–31
Joint facility—credit—transportation—yard: Other marine terminals ...................................... 39–13–32
Freight ............................................................ 38–32–00 Motor vehicle loading and distribution facilites .. 39–13–33
Joint facility—credit—transportation—special- Facilities for other specialized services oper-
ized services: Freight ..................................... 38–34–00 ations .............................................................. 39–13–35
Joint facility—credit—transportation—adminis- Roadway machines ........................................... 39–13–36
trative support: Freight ................................... 38–35–00 Small tools and supplies .................................... 39–13–37
Joint facility—credit—general and administra-
Snow removal .................................................... 39–13–38
tive: Freight .................................................... 38–61–00
Repairs billed by others—debit—control ........... 39–00–00
Repairs billed by others—debit—equipment—
This account includes amounts payable by locomotives: Freight ....................................... 39–21–XX
the railroad to others for repair and mainte- This account includes amounts payable by
nance of the reporting railroad’s property the railroad to others for repair and mainte-
and equipment. The components of this ac- nance under the locomotive subactivity.
count shall be distributed to the following This account shall be subdivided by the fol-
accounts in accordance with instruction 1–8 lowing functions:
of Part 1201, Subpart A:
Repairs billed by others—debit—way and
Machinery .......................................................... 39–21–40
structures—running: Freight ........................... 39–11–XX
Locomotives ....................................................... 39–21–41
This account includes amounts payable by Road property and equipment damaged ........... 39–21–48
the railroad to others for repair and mainte- Repairs billed by others—debit—equipment—
nance of the reporting railroad’s property as- freight cars: Freight ........................................ 39–22–XX
sociated with the carrier’s roadway and This account includes amounts payable by
track on the line of road and outside of clas- the railroad to others for repair and mainte-
sification yards. This account shall be sub- nance under the freight car subactivity. This
divided by the following functions: account shall be subdivided by the following
Repair and maintenance function:
Roadway ............................................................ 39–11–10 Repair and maintenance
Tunnels and subways ........................................ 39–11–11 Machinery .......................................................... 39–22–40
Freight cars ........................................................ 39–22–42
Repairs billed by others—debit—equipment—
other equipment: Freight ................................ 39–23–XX
Repairs billed by others—debit—way and This account includes amounts payable by
structures—switching: Freight ........................ 39–12–XX
the railroad to others for the repair and
This account includes amounts payable by maintenance of equipment not pertaining to
the railroad to others for repair and mainte- the locomotive or freight car subactivity.
nance of the reporting railroad’s property as- This account shall be subdivided by the fol-
sociated with the carrier’s roadway and lowing functions:
157
Repair and maintenance Other marine terminals ...................................... 40–13–32

Motor vehicle loading and distribution facilities 40–13–33
Machinery .......................................................... 39–23–40 Facilities for other specialized services oper-
Trucks, trailers, and containers in revenue ations .............................................................. 40–13–35
service ............................................................ 39–23–43 Roadway machines ........................................... 40–13–36
Floating equipment—revenue service ............... 39–23–44 Small tools and supplies .................................... 40–13–37
Passenger and other revenue equipment ......... 39–23–45 Snow removal .................................................... 40–13–38
Computers and data processing equipment ..... 39–23–46 Road property and equipment damaged ........... 40–13–48
Work and other nonrevenue equipment ............ 39–23–47 Repairs billed to others—credit—equipment—
Road property and equipment damaged ........... 39–23–48 locomotives: Freight ....................................... 40–21–XX
Repairs billed to others—credit—control ........... 40–00–00
This account includes amounts payable by
This control account includes amounts others to the railroad for repair and mainte-
payable by others to the railroad for repair nance of other railroads’ locomotives. This
and maintenance of others’ road property account shall be subdivided by the following
and equipment. The components of this ac- functions:
count shall be distributed to the following
accounts in accordance with instruction 1–8
Machinery .......................................................... 40–21–40
Locomotives ....................................................... 40–21–41
Repairs billed to others—credit—way and Road property and equipment damaged ........... 40–21–48
structures—running: Freight ........................... 40–11–XX Repairs billed to others—credit—equipment—
freight cars: Freight ........................................ 40–22–XX
others to the railroad for repair and mainte- This account includes amounts payable by
nance of other railroads’ roadway and track others to the railroad for repair and mainte-
on the line of road and outside of classifica- nance of other railroads’ freight cars. This
tion yards. This account shall be subdivided account shall be subdivided by the following
by the following functions: functions:
Repair and maintenance Repair and maintenance
Roadway ............................................................ 40–11–10 Machinery .......................................................... 40–22–40
Tunnels and subways ........................................ 40–11–11 Freight cars ........................................................ 40–22–42
Bridges and culverts .......................................... 40–11–12 Road property and equipment damaged ........... 40–22–48
Track laying and surfacing ................................ 40–11–17 Repairs billed to others—credit—equipment—
Signals and interlockers .................................... 40–11–19 other equipment: Freight ................................ 40–23–XX
Road property and equipment damaged ........... 40–11–48 This account includes amounts payable by
Repairs billed to others—credit—way and others to the railroad for repair and mainte-
structures—switching: Freight ........................ 40–12–XX nance of other railroads’ other equipment.
lowing functions:
others to the railroad for repair and mainte-
nance of other railroads’ roadway and track Repair and maintenance
within classification yards and stations. This Machinery .......................................................... 40–23–40
account shall be subdivided by the following Trucks, trailers, and containers in revenue
service ............................................................ 40–23–43
functions: Floating equipment—revenue service ............... 40–23–44
Repair and maintenance Passenger and other revenue equipment ......... 40–23–45
Roadway ............................................................ 40–12–10 Computers and data processing equipment ..... 40–23–46
Tunnels and subways ........................................ 40–12–11 Work and other non-revenue equipment ........... 40–23–47
Bridges and culverts .......................................... 40–12–12 Road property and equipment damaged ........... 40–23–48
Track laying and surfacing ................................ 40–12–17 Other purchased services—control ................... 41–00–00
Highway grade crossings .................................. 40–12–22 This control account includes amounts
Road property and equipment damaged ........... 40–12–48 charged or credited to operating expenses for
Repairs billed to others—credit—way and purchased advertising; purchased printing;
structures—other: Freight .............................. 40–13–XX outside professional services such as legal,
accounting, audit, engineering, and con-
sulting; payments for detour of trains; utili-
others to the railroad for repair and mainte-
ties, telephone, postage, subscriptions, com-
nance of other railroads’ structures other
munications, purchased electric power for
than roadway and track. This account shall
train and locomotive propulsion; and other
be subdivided by the following functions:
services purchased. The components of this
account shall be distributed to the following
Communication systems .................................... 40–13–20 accounts in accordance with instruction 1–8
Electric power systems ...................................... 40–13–21
Station and office buildings ............................... 40–13–23
Shop buildings—locomotives ............................. 40–13–24 Other purchased services—way and struc-
Shop buildings—freight cars .............................. 40–13–25 tures—running: Freight .................................. 41–11–XX
Shop buildings—other equipment ..................... 40–13–26
Locomotive servicing facilities ........................... 40–13–27
Miscellaneous buildings and structures ............. 40–13–28 credited to operating expenses for other pur-
Coal terminals .................................................... 40–13–29 chased services specified in control account
Ore terminals ..................................................... 40–13–30 41–00–00. This account shall be subdivided by

TOFC/COFC terminals ...................................... 40–13–31 the following functions:
158
Repair and maintenance Repair and maintenance

Roadway ............................................................ 41–11–10 Dismantling retired property .............................. 41–21–39
Tunnels and subways ........................................ 41–11–11 Machinery .......................................................... 41–21–40
Bridges and culverts .......................................... 41–11–12 Locomotive ......................................................... 41–21–41
Track laying and surfacing ................................ 41–11–17 Road property and equipment damaged ........... 41–21–48
Signals and interlockers .................................... 41–11–19 Other—other ...................................................... 41–21–99
Highway grade crossings .................................. 41–11–22 Other purchased services—equipment—freight
Dismantling retired property .............................. 41–11–39 cars: Freight ................................................... 41–22–XX
Other—other ...................................................... 41–11–99 This account includes amounts charged or
Other purchased services—way and struc- credited to operating expenses for other pur-
tures—switching: Freight ................................ 41–12–XX chased services specified in control account
This account includes amounts charged or 41–00–00. This account shall be subdivided by
credited to operating expenses for other pur- the following functions:
chased services specified in control account Administration—general ..................................... 41–22–01
41–00–00. This account shall be subdivided by Repair and maintenance
the following functions: Dismantling retired property .............................. 41–22–39
Repair and maintenance Machinery .......................................................... 41–22–40
Freight cars ........................................................ 41–22–42
Roadway ............................................................ 41–12–10 Road property and equipment damaged ........... 41–22–48
Tunnels and subways ........................................ 41–12–11 Other—other ...................................................... 41–22–99
Bridges and culverts .......................................... 41–12–12 Other purchased services—equipment—other
Track laying and surfacing ................................ 41–12–17 equipment: Freight ......................................... 41–23–XX
Highway grade crossings .................................. 41–12–22 This account includes amounts charged or
Dismantling retired property .............................. 41–12–39 credited to operating expenses for other pur-
Other—other ...................................................... 41–12–99
Other purchased services—way and struc- 41–00–00. This account shall be subdivided by
tures—other: Freight ...................................... 41–13–XX the following functions:
chased services specified in control account Dismantling retired property .............................. 41–23–39
Machinery .......................................................... 41–23–40
41–00–00. This account shall be subdivided by Trucks, trailers, containers in revenue service .. 41–23–43
the following functions: Floating equipment—revenue service ............... 41–23–44
Administration Passenger and other revenue equipment ......... 41–23–45
Track .................................................................. 41–13–02 Computers and data processing equipment ..... 41–23–46
Bridges and buildings ........................................ 41–13–03 Work and other nonrevenue equipment ............ 41–23–47
Signals ............................................................... 41–13–04 Road property and equipment damaged ........... 41–23–48
Communications ................................................ 41–13–05 Other—other ...................................................... 41–23–99
Other .................................................................. 41–13–06 Other purchased services—transportation—
Repair and maintenance train: Freight ................................................... 41–31–XX
Communication systems .................................... 41–13–20 This account includes amounts charged or
Electric power systems ...................................... 41–13–21 credited to operating expenses for other pur-
Station and office buildings ............................... 41–13–23 chased services specified in control account
Shop buildings—freight cars .............................. 41–13–25
Shop buildings—other equipment ..................... 41–13–26 the following functions:
Locomotive servicing facilities ........................... 41–13–27 Administration—general ..................................... 41–31–01
Miscellaneous buildings and structures ............. 41–13–28 Operations
Coal terminals .................................................... 41–13–29
Engine crews ..................................................... 41–31–56
Ore terminals ..................................................... 41–13–30
Train crews ........................................................ 41–31–57
Other marine terminals ...................................... 41–13–32 Dispatching trains .............................................. 41–31–58
Motor vehicle loading and distribution facilities 41–13–33 Operating switches, signals, interlockers, re-
Facilities for other specialized services oper- tarders, humps ............................................... 41–31–59
ations .............................................................. 41–13–35 Operating drawbridges ...................................... 41–31–60
Roadway machines ........................................... 41–13–36 Highway crossing protection .............................. 41–31–61
Small tools and supplies .................................... 41–13–37 Train inspection and lubrication ......................... 41–31–62
Snow removal .................................................... 41–13–38 Clearing wrecks ................................................. 41–31–63
Dismantling retired property .............................. 41–13–39 Locomotive fuel .................................................. 41–31–67
Road property and equipment damaged ........... 41–13–48 Electric power purchased/produced for motive
Other—other ...................................................... 41–13–99 power .............................................................. 41–31–68
Other purchased services—equipment—loco- Servicing locomotives ........................................ 41–31–69
motives: Freight .............................................. 41–21–XX Other—other ...................................................... 41–31–99
Other purchased services—transportation—
This account includes amounts charged or yard: Freight ................................................... 41–32–XX

159
Administration—general ..................................... 41–32–01 Public relations and advertising ......................... 41–61–93

Operations Research and development ............................... 41–61–94
Other—other ...................................................... 41–61–99
Operating switches, signals, interlockers, re-
tarders, humps ............................................... 41–32–59
Clearing wrecks ................................................. 41–32–63 CLAIMS AND INSURANCE
Switch crews ...................................................... 41–32–64 Control ............................................................... 50–00–00
Controlling operations ........................................ 41–32–65
Yard and terminal clerical .................................. 41–32–66 This account may be used as a control ac-
Locomotive fuel .................................................. 41–32–67 count for all accounts in the CLAIMS AND
Electric power purchased/produced for motive INSURANCE series: loss and damage claims;
power .............................................................. 41–32–68 other casualties; insurance.
Other—other ...................................................... 41–32–99 Loss and damage claims—control .................... 51–00–00
Other purchased services—transportation—
train and yard common: Freight ..................... 41–33–XX
compensate for the loss or damage of freight
This account includes amounts charged or or other goods carried in revenue service.
credited to operating expenses for other pur- This account excludes amounts payable to
chased services specified in control account employees or other parties for injuries sus-
41–00–00. This account shall be subdivided by tained or loss of life; for damage to real prop-
the following functions: erty of others or personal property not car-
Operations ried in revenue service; all payments for
Cleaning car interiors ......................................... 41–33–70 other damages of any kind; and related in-
Adjusting, transferring loads .............................. 41–33–71 surance premiums.
Car loading devices and grain doors ................ 41–33–72 Loss and damage claims—transportation—
Other purchased services—transportation— train: freight .................................................... 51–31–00
specialized services: Freight .......................... 41–34–XX
compensate for the loss or damage of freight
or other goods carried in revenue service
while operating all trains except those per-
forming yard functions in terminals.
Loss and damage claims—transportation—
yard: freight .................................................... 51–32–00
Operations
Pick up and delivery, marine line haul, and rail This account includes amounts payable to
substitute service ........................................... 41–34–73 compensate for the loss or damage of freight
Loading, unloading, and local marine ............... 41–34–74 or other goods carried in revenue service
Protective Services ............................................ 41–34–75 which is lost or damaged in yards or termi-
Other—other ...................................................... 41–34–99 nals.
Other purchased services—transportation—ad-
ministrative support: freight ............................ 41–35–XX Loss and damage claims—transportation—train
and yard common: freight .............................. 51–33–00
credited to operating expenses for other pur- This account includes amounts payable to
chased services specified in control account compensate for the loss or damage of freight
41–00–00. This account shall be subdivided by or other goods carried in revenue service
the following functions: which are not predominantly train or yard.
Administration—general ..................................... 41–35–01 Loss and damage claims—transportation—spe-
cialized services: freight ................................. 51–34–00
Operations
Clerks, accounting employees ........................... 41–35–76 This account includes amounts payable to
Communication systems operations .................. 41–35–77 compensate for the loss or damage of freight
Loss and damage claims processing ................ 41–35–78 or other goods carried in revenue service in-
Other—other ...................................................... 41–35–99 curred in designated specialized services op-
Other purchased services—general and admin-
istrative: freight ............................................... 41–61–XX
erations.
Other casualties—control .................................. 52–00–00
credited to operating expenses for other pur- This account includes amounts payable to
chased services specified in control account employees or other parties for injuries sus-
41–00–00. This account shall be subdivided by tained or loss of life in connection with the
the following functions: construction, maintenance, operations, and
Administration—general ..................................... 41–61–01 administration of railroad property and
equipment; for damage to real property,
General
property of others or personal property not
Accounting, auditing, finance ............................. 41–61–86
carried in revenue service; all payments for
Management services and data processing ...... 41–61–87
Marketing ........................................................... 41–61–88 other damages of any kind. This account ex-
Sales .................................................................. 41–61–89 cludes freight and other goods carried in rev-
Industrial development ....................................... 41–61–90 enue service, and insurance premiums re-
Personnel and labor relations ............................ 41–61–91 lated to the casualties chargeable to this ac-
Legal and secretarial ......................................... 41–61–92 count.
160
NOTE: The costs of clearing wrecks and re- This account includes amounts charged to
pairing casualty-caused damage to the rail- operating expenses for items not otherwise
road’s property and equipment are properly provided for in the other natural expense ac-
classified under other natural expense accounts, including travel and other expenses
counts as appropriate and further classified of employees, road property retirement
by relevant activities and functions. lossses, and other items of a general nature
These costs are appropriately charged to associated with the carrier’s roadway and
the following natural accounts: track on the line of road and outside of clas-
Other casualties—way and structures—run-
sification yards. This account shall be sub-
ning: freight .................................................... 52–11–00 divided by the following functions:
Other casualties—way and structures—switch- Repair and maintenance
ing: freight ...................................................... 52–12–00 Roadway ............................................................ 61–11–10
Other casualties—way and structures—other: Tunnels and subways ........................................ 61–11–11
freight ............................................................. 52–13–00 Bridges and culverts .......................................... 61–11–12
Other casualties—equipment—locomotives: Track laying and surfacing ................................ 61–11–17
freight ............................................................. 52–21–00 Signals and interlockers .................................... 61–11–19
Other casualties—equipment—freight cars: Highway grade crossings .................................. 61–11–22
freight ............................................................. 52–22–00 Dismantling retired property .............................. 61–11–39
Other casualties—equipment—Other equip- Road property and equipment damaged ........... 61–11–48
ment: freight ................................................... 52–23–00 Other—other ...................................................... 61–11–99
Other casualties—transportation—train: freight 51–31–00 Other expenses—way and structures—switch-
Other casualties—transportation—yard: freight 51–32–00 ing: freight ...................................................... 61–12–XX
Other casualties—transportation—specialized This account includes amount charged to
services: freight .............................................. 52–34–00
Other casualties—transportation—administra-
tive support: freight ........................................ 52–35–00 provided for in the other natural expense ac-
Other casualties—general and administrative: counts, including travel and other expenses
freight ............................................................. 52–61–00 of employees, road property retirement
Insurance—control ............................................. 53–00–00 losses, and other items of a general nature
associated with the carrier’s roadway and
This account includes premiums for insur-
track within classification yards and sta-
ance to cover property and equipment loss
tions. This account shall be subdivided by
and damage, liability, business interruption,
and the like. These costs are appropriately
charged to the following accounts:
Roadway ............................................................ 61–12–10
Insurance—way and structures—running:
freight ............................................................. 53–11–00
Insurance—way and structures—switching: Track laying and surfacing ................................ 61–12–17
freight ............................................................. 53–12–00 Signals and interlockers .................................... 61–12–19
Insurance—way and structures—other: freight 53–13–00 Highway grade crossings .................................. 61–12–22
Insurance—equipment—locomotives: freight .... 53–21–00 Dismantling retired property .............................. 61–12–39
Insurance—equipment—freight cars: freight ..... 53–22–00 Road property and equipment damaged ........... 61–12–48
Insurance—equipment—other equipment: Other—other ...................................................... 61–12–99
freight ............................................................. 53–23–00 Other expenses—way and structures—other:
Insurance—transportation—train: freight ........... 53–31–00 freight ............................................................. 61–13–XX
Insurance—transportation—yard: freight ........... 53–32–00
Insurance—transportation—specialized serv- This account includes amounts charged to
ices: freight ..................................................... 53–34–00 operating expenses for items not otherwise
Insurance—transportation—administrative sup- provided for in the other natural expense ac-
port: freight ..................................................... 53–35–00 counts, including travel and other expenses
Insurance—general and administrative: freight 53–61–00 of employees, road property retirement
losses, and other items of a general nature
GENERAL associated with the carrier’s structures
Control ............................................................... 60–00–00 other than roadway and track. This account
This account may be used as a control ac- shall be subdivided by the following func-
count for all accounts in the GENERAL se- tions:
ries: other expenses; depreciation; Administration
uncollectible accounts; property taxes; other Track .................................................................. 61–13–02
taxes. Bridges and buildings ........................................ 61–13–03
Signals ............................................................... 61–13–04
Other expenses—control ................................... 61–00–00 Communications ................................................ 61–13–05
This account includes amounts charged to Other .................................................................. 61–13–06
operating expenses for items not otherwise Repair and maintenance
provided for in the other natural expense ac- Communication systems .................................... 61–13–20
counts, including travel and other expenses Electric power systems ...................................... 61–13–21
of employees, road property and equipment Station and office buildings ............................... 61–13–23
retirement losses, and other items of a gen- Shop buildings—freight cars .............................. 61–13–25
eral nature. Shop buildings—other equipment ..................... 61–13–26
Other expenses—way and structures—running: Locomotive servicing facilities ........................... 61–13–27

freight ............................................................. 61–11–XX Miscellaneous buildings and structures ............. 61–13–28
161
Coal terminals .................................................... 61–13–29 Computers and data processing equipment ..... 61–23–46
Ore terminals ..................................................... 61–13–30 Work and other nonrevenue equipment ............ 61–23–47
TOFC/COFC terminals ...................................... 61–13–31 Road property and equipment damaged ........... 61–23–48
Other marine terminals ...................................... 61–13–32 Other—other ...................................................... 61–23–99
Motor vehicle loading and distribution facilities 61–13–33 Other expenses—transportation—train: Freight 61–31–XX
Facilities for other specialized services oper-
ations .............................................................. 61–13–35 This account includes amounts charged to
Roadway machines ........................................... 61–13–36 operating expenses for items not otherwise
Small tools and supplies .................................... 61–13–37 provided for in the other natural expense ac-
Snow removal .................................................... 61–13–38 counts, including travel and other expenses
Dismantling retired property .............................. 61–13–39 of employees, associated with the dis-
Other—other ...................................................... 61–13–99
patching and operations of freight trains
Other expenses—equipment—locomotives: over the roadway and outside of classifica-
Freight ............................................................ 61–21–XX tion yards. This account shall be subdivided
by the following functions:
This account includes amounts charged to
Operations
counts, including travel and other expenses Engine crews ..................................................... 61–31–56
Train crews ........................................................ 61–31–57
of employees and equipment retirement
Dispatching trains .............................................. 61–31–58
losses, associated with the repair and main- Operating switches, signals, interlockers, re-
tenance of locomotives, whether owned by tarders, humps ............................................... 61–31–59
the carrier or by others. This account shall Operating drawbridges ...................................... 61–31–60
be subdivided by the following functions: Highway crossing protection .............................. 61–31–61
Administration—general ..................................... 61–21–01 Train inspection and lubrication ......................... 61–31–62
Clearing wrecks ................................................. 61–31–63
Locomotive fuel .................................................. 61–31–67
Dismantling retired property .............................. 61–21–39 Electric power purchased/produced for motive
Machinery .......................................................... 61–21–40 power .............................................................. 61–31–68
Locomotives ....................................................... 61–21–41 Servicing locomotives ........................................ 61–31–69
Road property and equipment damaged ........... 61–21–48 Other—other ...................................................... 61–31–99
Other—other ...................................................... 61–21–99 Other expenses—transportation—yard: Freight 61–32–XX
Other expenses—equipment—freight cars:
Freight ............................................................ 61–22–XX This account includes amounts charged to
nature associated with the movement of
freight cars within classification yards and
associated with the repair and maintenance
of freight cars, whether owned by the carrier
or by others. This account shall be sub-
lowing functions:
divided by the following functions:
Operations
Operating switches, signals, interlockers, re-
tarders, humps ............................................... 61–32–59
Machinery .......................................................... 61–22–40
Clearing wrecks ................................................. 61–32–63
Freight cars ........................................................ 61–22–42
Switch crews ...................................................... 61–32–64
Controlling operations ........................................ 61–32–65
Other—other ...................................................... 61–22–99
Yard and terminal clerical .................................. 61–32–66
Other expenses—equipment—other equip-
Locomotive fuel .................................................. 61–32–67
ment: Freight .................................................. 61–23–XX
Electric power purchased/produced for motive
This account includes amounts charged to power .............................................................. 61–32–68
operating expenses for items not otherwise Servicing locomotives ........................................ 61–32–69
Other—other ...................................................... 61–32–99
provided for in the other natural expense ac- Other expenses—transportation—specialized
counts, including travel and other expenses services: Freight ............................................. 61–34–XX
associated with the repair and maintenance This account includes amounts charged to
of equipment other than locomotives and operating expenses for items not otherwise
freight cars, whether owned by the carrier or provided for in the other natural expense ac-
by others. This account shall be subdivided counts, including travel and other expenses
by the following functions: of employees, and other items of a general
Administration—general ..................................... 61–23–01 nature incurred in operating services which
are specialized in nature and in cost charac-
teristics. The specialized services designated
by the Board appear within the definition of
Machinery .......................................................... 61–23–40
Trucks, trailers, containers in revenue service .. 61–23–43 specialized services. This account shall be
Floating equipment—revenue service ............... 61–23–44 subdivided by the following functions:

Passenger and other revenue equipment ......... 61–23–45 Administration—general ..................................... 61–34–01
162
Operations notes due to the railroad, whether classified

Pick up and delivery, marine line haul, and rail as current or long-term. This account in-
substitute service ........................................... 61–34–73 cludes any credits to allowance accounts for
Loading, unloading, and local marine ............... 61–34–74 collectibility and total writeoff of receiv-
Protective services ............................................. 61–34–75 ables. This account does not include
Other—other ...................................................... 61–34–99 writedowns of property, equipment, or in-
Other expenses—transportation—administra-
vestments (except accounts, notes, or other
tive support: Freight ....................................... 61–35–XX
receivables held as investments). Proper ad-
This account includes amounts charged to justments of incorrect receivables are not to
operating expenses for items not otherwise be charged to this account. Collections of
provided for in the other natural expense ac- amounts previously written off or down are
counts, including travel and other expenses to be credited to this account. The total of
of employees, and other items of a general this account shall be charged to the fol-
nature incurred in association with pro- lowing account:
viding direct administrative support for the Uncollectible accounts—general and adminis-
Transportation Activity. This account shall trative: Freight ................................................ 63–61–00
be subdivided by the following functions: Property taxes—control ..................................... 64–00–00
Administration—general ..................................... 61–35–01 This account includes only taxes based on
Operations the value of real estate and personal prop-
Clerks, accounting employees ........................... 61–35–76 erty used in railroad operations. The total of
Communication systems operations .................. 61–35–77 this account shall be charged to the fol-
Loss and damage claims processing ................ 61–35–78
lowing account:
Other—other ...................................................... 61–35–99
Other expenses—general and administrative: Property taxes—general and administrative:
Freight ............................................................ 61–61–XX Freight ............................................................ 64–61–00
Other taxes—control .......................................... 65–00–00
operating expenses for items not otherwise This account includes taxes on gross re-
provided for in the other natural expense ac- ceipts, franchise fees, excise taxes, and simi-
counts, including travel and other expenses lar items. This account excludes property
of employees, and other items of a general taxes and taxes chargeable as emloyee bene-
nature incurred in providing overall admin- fits. The total of this account shall be
istration of other support for carrier oper- charged to the following account:
ations. This account shall be subdivided by Other taxes—general and administrative:
the following functions: Freight ............................................................ 65–61–00
Administration—general ..................................... 61–61–01 (2) Other computed cost elements.
General
Accounting, auditing, finance ............................. 61–61–86 651 Locomotives return on investment.
Management services and data processing ...... 61–61–87 652 Freight train car costs.
Marketing ........................................................... 61–61–88 01 Per day costs.
Sales .................................................................. 61–61–89 02 Mileage costs.
Industrial development ....................................... 61–61–90 654 Rehabilitation.
Personnel labor relations ................................... 61–61–91
664 Deadheading, taxi and hotel costs.
Legal and secretarial ......................................... 61–61–92
Public relations and advertising ......................... 61–61–93 01 Deadheading.
Research and development ............................... 61–61–94 02 Taxi.
Other—other ...................................................... 61–61–99 03 Hotel.
Depreciation—control ........................................ 62–00–00 665 Overhead movement costs.
This control account includes the amounts 01 Transportation.
charged to operating expenses for deprecia- 02 Equipment.
tion of owned road property and equipment, 03 Freight-train cars—mileage portion.
and the depreciation element of road prop- (3) Off-branch avoidable costs.
erty held under capital lease in accordance
with FASB Statement No. 13. These costs are 661 Terminal costs.
appropriately charged to the following nat- 01 Modified terminal costs.
ural accounts: 02 Normal terminal costs.
Depreciation—way and structures—running: 03 Interchange costs.
Freight ............................................................ 62–11–00 662 Freight train car costs.
Depreciation—way and structures—switching: 663 Freight train revenue ton-mile costs.
Freight ............................................................ 62–12–00
Depreciation—way and structures—other: (4) All other avoidable costs.1
Freight ............................................................ 62–13–00
Depreciation—equipment—locomotives: Freight 62–21–00 671 Working capital.
Depreciation—equipment—freight cars: Freight 62–22–00 672 Required capital expenditures.
Depreciation—equipment—other equipment: 673 Deferred maintenance.
Freight ............................................................ 62–23–00
Uncollectible accounts—control ......................... 63–00–00
1 Accounts 671–675 apply to Part 1152 only.

This account includes charges to operating
expenses for the writedown of accounts and Accounts 677 and 682 apply to Part 1155 only.
163
Pt. 1201, App. I 49 CFR Ch. X (10–1–07 Edition)
674 Current cost of freight train cars, loco- (g) Previous category.
motives, and other equipment.
675 Foregone tax benefits.
FR 49596, Nov. 1, 1982]
676 Administrative costs.
677 Deferred subsidy payment costs.
678 Casualty reserve expenses. PARTS 1202–1219 [RESERVED]
Total, all other avoidable costs.
681 Reasonable return on the value of prop- Parts 1220–1239—Preservation of
erties.
682 Management fee. Records
[43 FR 1733, Jan. 11, 1978, as amended at 43 NOTE: Section 20(7)(b) of the Interstate
FR 28498, June 30, 1978; 44 FR 9730, Feb. 14, Commerce Act includes the following provi-
1979; 47 FR 49596, Nov. 1, 1982; 67 FR 57533, sion:
Sept. 11, 2002] Any person who shall knowingly and will-
fully make, cause to be made, or participate
APPENDIX I TO PART 1201—CERTIFI- in the making of, any false entry in any an-
CATION OF BRANCH LINE ACCOUNTING nual or other report required under this sec-
SYSTEM RECORDS tion to be filed, or in the accounts of any
book of accounts or in any records or memo-
Carrier: (Exact legal title or name of the re- randa kept by a carrier, or required under
spondent) lllllllllllllllll this section to be kept by a lessor or other
llllllllllllllllllllllll person, or who shall knowingly and willfully
Name, title, telephone number and address of destroy, mutilate, alter, or by any other
the person to be contacted: means or device falsify the record of any
such accounts, records, or memoranda, * * *
Name llllllllllllllllllll shall be deemed guilty of a misdemeanor and
Title lllllllllllllllllllll shall be subject, upon conviction in any
Telephone Number: (Area Code) and (Tele- court of the United States of competent ju-
phone number) llllllllllllll risdiction to a fine of not more than five
Office Address: (Street and number) (City, thousand dollars or imprisonment for not
State, and ZIP code) lllllllllll more than two years, or both such fine and
llllllllllllllllllllllll imprisonment: Provided, That the Board may
in its discretion issue orders specifying such
CERTIFICATION
operating, accounting, or financial papers,
I, the undersigned, lllllllllllll records, books, blanks, tickets, stubs, cor-
of (Title of officer in charge of accounts) ll respondence, or documents of such carriers,
llllllllllllllllllllllll lessors, or other persons as may, after a rea-
(Full name of reporting company) lllll sonable time, be destroyed, and prescribing
the length of time the same shall be pre-
certify that during the calendar year 19ll served.
the branch line accounting system data were
collected and maintained for each line that
met the criteria set forth in 49 CFR 1201, PART 1220—PRESERVATION OF
Subpart B, section 920(a), Lines For Which RECORDS
Data Collection Is Required, (Docket No.
36366). Sec.
Signature llllllllll 1220.0 Applicability.
1220.1 Records required to be retained.
Datellllll 1220.2 Protection and storage of records.
The lines covered by this certification are 1220.3 Preservation of records.
described below: (Describe each branch line 1220.4 Companies going out of business.
separately using the following format as set 1220.5 Waiver of requirements of these regu-
forth in 49 CFR 1152.11.) lations.
(a) Carrier’s designation for line (Ex. 1220.6 Schedule of records and periods of re-
Zanesville Secondary Track); tention.
(b) State or states in which line is located;
(c) County or counties in which line is lo- AUTHORITY: 49 U.S.C. 721, 11144, 11145.
cated; SOURCE: 50 FR 10775, Mar. 18, 1985; 51 FR
(d) Milepost delineating each line or por- 22083, June 18, 1986, unless otherwise noted.
tion of line;
(e) Agency or terminal station(s) located § 1220.0 Applicability.
on line or portion of line with milepost des-
ignations; The preservation of record rules con-
(f) Current category designation and date tained in this part shall apply to the
placed in that category; and following:
164
Surface Transportation Board, DOT § 1220.5
Railroad companies production of an accurate and
Electric railway companies unaltered paper copy.
Express companies
Persons furnishing cars to railroads (b) Records not originally preserved
Ratemaking organizations on hard copy shall be accompanied by a
statement executed by a person having
This part applies also to the preserva- personal knowledge of the facts indi-
tion of accounts, records and memo- cating the type of data included within
randa of traffic associations, demur- the records. One comprehensive state-
rage and car service bureaus, weighing ment may be executed in lieu of indi-
and inspection bureaus, and other joint vidual statements for multiple records
activities maintained by or on behalf of if the type of data included in the mul-
companies listed in the above para- tiple records is common to all such
graph of this subpart. records. The records shall be indexed
[50 FR 1075, Mar. 18, 1985 and 51 FR 22083, and retained in such a manner as will
June 18, 1986, as amended at 51 FR 44297, Dec. render them readily accessible. The
9, 1986; 62 FR 50525, Sept. 26, 1997] company shall have facilities available
§ 1220.1 Records required to be re- to locate, identify and produce legible
tained. paper copies of the records.
(c) Any significant characteristic,
Companies subject to this part shall
retain records for the minimum reten- feature or other attribute that a par-
tion periods required by § 1220.6, Sched- ticular medium will not preserve shall
ule of records and periods of retention. be clearly indicated at the beginning of
After the required retention periods, the applicable records as appropriate.
the records may be destroyed at the (d) The printed side of forms, such as
discretion of each company’s manage- instructions, need not be preserved for
ment. It shall be the obligation of the each record as long as the printed mat-
subject company to maintain records ter is common to all such forms and an
that adequately support financial and identified specimen of the form is
operational data required by the Board. maintained on the medium for ref-
The company may request a ruling erence.
from the Board on the retention of any [50 FR 10775, Mar. 18, 1985, as amended at 56
record. The provisions of this part shall FR 30874, July 8, 1991]
not be construed as excusing compli-
ance with the lawful requirements of § 1220.4 Companies going out of busi-
any other governmental body pre- ness.
scribing longer retention periods for
The records referred to in these regu-
any category of records.
lations may be destroyed after business
§ 1220.2 Protection and storage of is discontinued and the company is
records. completely liquidated. The records
(a) The company shall protect may not be destroyed until dissolution
records subject to this part from fires, is final and all pending transactions
floods, and other hazards, and safe- and claims are completed. When a com-
guard the records from unnecessary ex- pany is merged with another company
posure to deterioration from excessive under jurisdiction of the Board, the
humidity, dryness, or lack of ventila- successor company shall preserve
tion. records of the merged company in ac-
(b) The company shall notify the cordance with these regulations.
Board if prescribed records are substan-
tially destroyed or damaged before the § 1220.5 Waiver of requirements of
term of the prescribed retention peri- these regulations.
ods. A waiver from any provision of these
regulations may be made by the Board
§ 1220.3 Preservation of records. upon its own initiative or upon submis-
(a) All records may be preserved by sion of a written request by the com-
any technology that is immune to al- pany. Each request for waiver shall
teration, modification, or erasure of demonstrate that unusual cir-

the underlying data and will enable cumstances warrant a departure from
165
§ 1220.6 49 CFR Ch. X (10–1–07 Edition)
prescribed retention periods, proce- for convenient reference and identifica-

dures, or techniques, or that compli- tion, and are intended to apply to the
ance with such prescribed requirements items named regardless of what the
would impose an unreasonable burden records are called in individual compa-
on the company. nies and regardless of the record media.
The retention periods represent the
§ 1220.6 Schedule of records and peri-
ods of retention. prescribed number of years from the
date of the document and not calendar
The following schedule shows periods
years. Records not listed below shall be
that designated records shall be pre-
retained as determined by the manage-
served. The descriptions specified
ment of each company.
under the various general headings are
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 and amendments ....................................... Note A.
(b) Legal documents related to mergers, consolidations, reorganization, receiver- Do.
ships and similar actions which affect the identity or organization of the company.
2. Minutes of Directors, Executive Committees, Stockholders and other corporate meetings Do.
3. Titles, franchises and authorities:
(a) Certificates of public convenience and necessity issued by regulating bodies .... Until expiration or cancellation.
(b) Operating authorizations and exemptions to operate ........................................... Do.
(c) Copies of formal orders of regulatory bodies served upon the company ............. Note A.
(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 operational management, accounting, financial or Until expiration or termination plus
legal services, and agreements with agents. 3 years.
(b) Contracts and other agreements relating to the construction, acquisition or sale Do.
of real property and equipment except as otherwise provided in (a) above.
(c) Contracts for the purchase or sale of material and supplies except as provided Until expiration.
in (a) above.
(d) Shipping contracts for transportation or caretakers of freight ............................... Do.
(e) Contracts with employees and employee bargaining groups ............................... Until expiration.
(f) Contracts, leases and agreements, not specifically provided for in this section ... Until expiration or termination plus
1 year.
6. Accountant’s auditor’s, and inspector’s reports:
(a) Certifications and reports of examinations and audits conducted by public ac- 3 years
countants.
(b) Reports of examinations and audits conducted by internal auditors, time inspec- Do.
tors, 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 or stubs of ................................................... Do.
(c) Stock transfer register ............................................................................................ Do.
2. Long-term debt records:
(a) Bond indentures, underwritings, mortgages, and other long-term credit agree- Until redemption plus 3 years.
ments.
(b) Registered bonds and debenture ledgers ............................................................. Do.
(c) Stubs or similar records of bonds or other long-term debt issued ........................ Note A.
3. Authorizations from regulatory bodies for issuance of securities including applications, re- Do.
ports, and supporting papers.
4. Records of securities owned, in treasury, or held by custodians, detailed ledgers and Until the securities are sold, re-
journals, or their equivalent. deemed or otherwise disposed
of.
C. FINANCIAL AND ACCOUNTING
1. Ledgers:
(a) General and subsidiary ledgers with indexes ....................................................... Until discontinuance of use plus 3
years.
(b) Balance sheets and trial balance sheets of general and subsidiary ledgers ....... 3 years.
2. Journals:
(a) General journals .................................................................................................... Until discontinuance of use plus 3
years.
(b) Subsidiary journals and any supporting data, except as otherwise provided for, 3 years.
necessary to explain journal entries.
166
SCHEDULE OF RECORDS AND PERIODS OF RETENTION—Continued

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 equivalent ............................................................. Do.
(b) Paid and canceled vouchers, expenditure authorizations, detailed distribution Do.
sheets and other supporting data including original bills and invoices, if not pro-
vided for elsewhere.
(c) Paid drafts, paid checks, and receipts for cash paid out ...................................... 3 years.
5. Accounts receivable:
(a) Record or register of accounts receivable, indexes thereto, and summaries of 3 years after settlement.
distribution.
(b) Bills issued for collection and supporting data ...................................................... Do.
(c) Authorization for writing off receivables ................................................................. 1 year.
(d) Reports and statements showing age and status of receivables ......................... Do.
6. Records of accounting codes and instructions ..................................................................... 3 years after discontinuance.
7. Other: (Note A)
D. PROPERTY AND EQUIPMENT
NOTE.—All accounts, records, and memoranda necessary for making a complete analysis of the cost or value of property shall
be retained for the periods shown. If any of the records elsewhere provided for in this schedule are of this character, they
shall be retained for the periods shown below, regardless of any lesser retention period assigned
1. Property records:
(a) Records which maintain complete information on cost or other value of all real 3 years after disposition of prop-
and personal property or equipment. erty.
(b) Records of additions and betterments made to property and equipment ............ Do.
(c) Records pertaining to retirements and replacements of property and equipment Do.
(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 stenciled ................................................ Only current or latest records.
2. Engineering records of property changes actually made ..................................................... 3 years after disposition of prop-
erty.
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, storms, and other hazards and records of Until expiration plus 1 year.
premium payments.
(b) Records of losses and recoveries from insurance companies and supporting 1 year after settlement.
papers.
(c) Insurance policies .................................................................................................. Until expiration of coverage plus 1
year.
2. Claims records:
(a) Claim registers, card or book indexes, and other records which record personal 1 year after settlement.
injury, fire and other claims against the company, together with all supporting
data.
(b) Claims registers, card or book indexes, and other records which record over- Do.
charges, damages, and other claims filed by the company against others, to-
gether with all supporting data.
(c) Records giving the details of authorities issued to agents, carriers, and others 3 years.
for participation in freight claims.
(d) Reports, statements and other data pertaining to personal injuries or damage to Do.
property when not necessary to support claims or vouchers.
(e) Reports, statements, tracers, and other data pertaining to unclaimed, over, 1 year.
short, damaged, and refused freight, when not necessary to support claims or
vouchers.
(f) Authorities for disposal of unclaimed, damaged, and refused freight .................... 3 years.
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’ shipping tickets, and copies of bills of 1 year.
lading freight bills from other carriers and other similar documents furnished the
carrier for movement of freight.
(b) Shippers’ order-to-notify bills of lading taken up and cancelled ........................... Do.
2. Freight waybills:
(a) Local waybills ......................................................................................................... Do.
167
§ 1220.6 49 CFR Ch. X (10–1–07 Edition)

(b) Interline waybills received from and made to other carriers ................................. Do.
(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 claim has been filed ................................... Do.
(2) All other freight bills ............................................................................................... Do.
(b) Paid copy of freight bill retained to support payment of freight charges to other car-
riers:
(1) Bus express freight bills provided no claim has been filed ................................... Do.
(2) All other freight bills ............................................................................................... Do.
(c) Records of unsettled freight bills and supporting papers ............................................. 1 year after disposition.
(d) Records and reports of correction notices ................................................................... 1 year.
4. Other freight records:
(a) Records of freight received, forwarded, and delivered ......................................... Do.
(b) Notice to consignees of arrival of freight; tender of delivery ................................ Do.
5. Agency records (to include conductors, pursers, stewards, and others):
(a) Cash books ............................................................................................................ Do.
(b) Remittance records, bank deposit slips and supporting papers ........................... Do.
(c) Balance sheets and supporting papers ................................................................. Do.
(d) Statements of corrections in agents’ accounts ..................................................... Do.
(e) Other records and reports pertaining to ticket sales, baggage handled, miscella- Do.
neous 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 captain’s reports, demurrage records, 2 years.
towing reports and checks sheets.
3. Car distribution and movement-railroads only:
(a) Records of car allotment and distribution .............................................................. Do.
(b) Records of cars ordered, furnished and loaded .................................................... Do.
(c) Records showing dates and numbers of trains, initials and number of cars, Do.
movement of cars, and mileage of cars and trains.
(d) Report of cars interchanged with connecting lines ............................................... Do.
(e) Reports of unfilled car orders ................................................................................ 1 year.
(f) Per diem and mileage reports made and received, including reclaims and dis- 2 years.
crepancy and adjustment reports.
(g) Demurrage and storage records ........................................................................... Do.
4. Dispatchers’ sheets, registers, and other records pertaining to movement of transpor- 3 years
tation equipment.
5. Import and export records including bonded freight and steamship engagements ............. 2 years.
6. Records, reports, orders and tickets pertaining to weighting of freight ................................ 3 years.
7. Records of loading and unloading of transportation equipment ........................................... 2 years.
8. Records pertaining to the diversion or reconsignment of freight, including requests, trac- Do.
ers, and correspondence.
K. TARIFFS AND RATES
1. Official file copies of tariffs, classifications, division sheets, and circulars relative to the 3 years after expiration or can-
transportation of persons or property. cellation.
2. Authorities and supporting papers for transportation of property or passengers free or at 3 years.
reduced rates.
3. Records and documents required by provisions of § 1253.20 to be maintained ................. 2 years.
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, operating and statistical reports ................. 3 years.
(b) Supporting data for periodical reports of operating revenues, expenses, and in- Do.
come.
(c) Supporting data for reports detailing use of proceeds from issuance or sale of Do.
company securities.
(d) Supporting data for valuation inventory reports and records. This includes re- 3 years after disposition of the
lated notes, maps and sketches, underlying engineering, land, and accounting property.
reports, pricing schedules, summary or collection sheets, yearly reports of
changes and other miscellaneous data, all relating to the valuation of the com-
pany’s property by the Surface Transportation Board or other regulatory body.
168

2. Supporting data for periodical reports of accidents, inspections, tests, hours of service, 3 years.
repairs, freight car locations, etc.
3. Supporting data for periodical statistical of operating results or performance by tonnage, Do.
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 destroyed or lost ...................................................... For the remainder of the period as
prescribed for records de-
stroyed.
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 regu-
latory requirements.
[50 FR 10775, Mar. 18, 1985, as amended at 51 FR 22083, June 18, 1986]
Parts 1240–1259—Reports § 1241.2 Reporting companies defined.

(a) Every common carrier by rail
NOTE: The report forms prescribed by parts which is required by the act to regulate
1241–1259 are available upon request from the
Office of the Secretary, Surface Transpor-
commerce to file with the Board any
tation Board, Washington, DC 20423. tariff or schedule of rates, fares, or
charges, or any concurrence in such
PART 1241—ANNUAL, SPECIAL, OR tariff or schedule, shall be required to
keep operating accounts and to file an
PERIODIC REPORTS—CARRIERS
annual operating report unless specifi-
SUBJECT TO PART I OF THE INTER- cally excused by the Board.
STATE COMMERCE ACT (b) Every railway corporation owning
but not operating a railway used in
Sec.
1241.1 Common carriers. interstate or foreign commerce shall be
1241.2 Reporting companies defined. required to file with the Board an an-
1241.11 Annual reports of class I railroads. nual nonoperating report unless re-
1241.15 Railroad classification survey form. lieved therefrom under the provisions
AUTHORITY: 49 U.S.C. 11145. of rule following.
NOTE: The report forms prescribed by part (c) Any actually existing inactive
1241 are available upon request from the Of- corporation coming within the scope of
fice of the Secretary, Surface Transportation rule given above may be relieved from
Board, Washington, DC 20423.
the requirements of that rule if it has
§ 1241.1 Common carriers. no outstanding stocks or obligations
not held by or for its controlling cor-
All common carriers subject to the
poration and the controlling corpora-
provisions of Part I of Interstate Com-
tion reports for the inactive corpora-
merce Act, as amended, and the owners
of all railroads engaged in interstate tion such facts as the Board may re-
commerce as therein defined, are here- quire to be reported.
by required hereafter to file in the of- (d) Reports of a controlling corpora-
fice of the Board on or before the 31st tion and its controlled corporations
day of March in each year, reports cov- must exclude duplications in respect of
ering the period of 12 months ending investments in railway plant and
with the 31st day of December pre- equipment and in respect of securities
ceding said date, giving the particulars outstanding.
heretofore called for in the annual re-
[32 FR 20456, Dec. 20, 1967, as amended at 46
ports required by the Board of said car- FR 9115, Jan. 28, 1981]
riers and owners of railroads.
[32 FR 20456, Dec. 20, 1967]
169
§ 1241.11 49 CFR Ch. X (10–1–07 Edition)
§ 1241.11 Annual reports of class I rail- GENERAL

roads. 1242.01 Expenses solely related to freight
(a) Commencing with reports for the service and passenger service.
1242.02 Common expenses.
year ended December 31, 1973, and 1242.03 Made by accounting divisions.
thereafter, until further order, all line- 1242.04 Special tests.
haul railroad companies of class I, as 1242.05 Operating expense account number
defined in § 1240.1 of this chapter, sub- notation.
ject to section 20, Part I of the Inter- 1242.06 Instructions for separation.
state Commerce Act, are required to OPERATING EXPENSES—WAY AND STRUCTURES
file annual reports in accordance with
1242.10 Administration—track (account XX–
Railroad Annual Report Form R–1.
19–02).
Such annual report shall be filed in du- 1242.11 Administration—bridges and build-
plicate in the office of the Office of Ec- ings (account XX–19–03).
onomics, Environmental Analysis, and 1242.12 Administration—signals (account
Administration, Surface Transpor- XX–19–04).
tation Board, Washington, DC 20423, on 1242.13 Administration—communications
or before March 31 of the year fol- (account XX–19–05).
1242.14 Administration—other (account XX–
lowing the year which is being re- 19–06).
ported. 1242.15 Roadway, tunnels and subways,
(b) [Reserved] bridges and culverts, ties, rails, other
track material, ballast, track laying and
(49 U.S.C. 220, 313, 412 and 10321; 5 U.S.C. 553) surfacing, and road property damaged
[38 FR 32920, Nov. 29, 1973, as amended at 41 (accounts XX–17–10 to XX–18–12, inclu-
FR 21354, May 25, 1976; 42 FR 1475, Jan. 7, sive; 21–17–13 to 21–18–16, inclusive, XX–
1977; 44 FR 65402, Nov. 13, 1979; 67 FR 57534, 17–17, XX–18–17, XX–17–48, and XX– 18–48).
Sept. 11, 2002] 1242.16 Road property damaged—other (ac-
count XX–19–48).
1242.17 Signals and interlockers (accounts
§ 1241.15 Railroad classification sur-
XX–17–19 and XX–18–19).
vey form.
1242.18 Communication systems (account
Commencing with the year ending XX–19–20).
December 31, 1982, and thereafter, until 1242.19 Electric power systems (account
further order, all railroad companies XX–19–21).
1242.20 Highway grade crossings (accounts
not required to file an Annual Report XX–17–22 and XX–18–22).
(Form R–1) shall compute their ad- 1242.21 Station and office buildings (account
justed revenues using the railroad rev- XX–19–23).
enue deflator formula. If there is a 1242.22 Shop buildings—locomotives (ac-
change in a carrier’s classification the count XX–19–24).
survey form shall be filed with the Bu- 1242.23 Shop buildings—freight cars (ac-
reau of Accounts, Surface Transpor- 1242.24 Shop buildings—other equipment
tation Board, Washington, DC 20423, on (account XX–19–26).
or before March 31. 1242.25 Locomotive servicing facilities (ac-
[48 FR 2544, Jan. 20, 1983] 1242.26 Miscellaneous buildings and struc-
tures (account XX–19–28).
PART 1242—SEPARATION OF COM- 1242.27 Coal marine terminals, ore marine
terminals, TOFC/COFC terminals, other
MON OPERATING EXPENSES BE- marine terminals, motor vehicle loading
TWEEN FREIGHT SERVICE AND and distribution facilities, and facilities
PASSENGER SERVICE FOR RAIL- for other specialized service operations
ROADS 1 (accounts XX–13–29 to XX–13–35, inclu-
sive).
1242.28 Roadway machines, small tools and
LIST OF INSTRUCTIONS supplies, and snow removal (accounts
Sec. XX–19–36 to XX–19–38, inclusive).
1242.00 Separation of common operating ex- 1242.29 Fringe benefits (accounts 12–17–00,
penses. 12–18–00, 12–19–00).
1242.30 Dismantling retired road property
and depreciation (accounts XX–17–39,
1 The accounts mentioned in this part refer XX–18–39, XX–19–39, 62–17–00, 62–18–00, and
to and agree with part 1201 of this chapter. 62–19–00).
170
1242.31 Lease rentals—debit and credit and 1242.50 Fringe benefits (account 12–27–00).
other rents—debit and credit (accounts 1242.51 Dismantling retired property and de-
31–17–00, 31–18–00, 31–19–00, 32–17–00, 32–18– preciation (accounts XX–27–39 and 62–27–
00, 32–19–00, 35–17–00, 35–18–00, 35–19–00, 36– 00).
17–00, 36–18–00, and 36–19–00). 1242.52 Lease rentals—debit and credit,
1242.32 Joint facility rents—debit and credit other rents—debit and credit, repairs
and joint facility—debit and credit (ac- billed to others—credit (accounts 31–27–
counts 33–17–00, 33–18–00, 33–19–00, 34–17– 00, 32–27–00, 35–27–00, 36–27–00, and 40–27–
00, 34–18–00, 34–19–00, 37–17–00, 37–18–00, 37– 98).
19–00, 38–17–00, 38–18–00, and 38–19–00). 1242.53 Joint facility rents—debit and credit
1242.33 Other expenses and casualties and and joint facility—debit and credit (ac-
insurance (accounts XX–17–99, XX–18–99, counts 33–27–00, 34–27–00, 37–27–00, and 38–
XX–19–99, 50–17–00, 50–18–00, and 50–19–00). 27–00).
1242.54 Other and casualties and insurance
OPERATING EXPENSES—EQUIPMENT (accounts XX–27–99 and 50–27–00).
Locomotives OPERATING EXPENSES—TRANSPORTATION
1242.34 Administration (account XX–26–01).
Train Operations
1242.35 Repair and maintenance (account
XX–26–41). 1242.55 Administration (account XX–51–01).
1242.36 Machinery repair and equipment 1242.56 Engine crews and train crews (ac-
damaged (accounts XX–26–40 and XX–26– counts XX–51–56 and XX–51–57).
48). 1242.57 Dispatching trains (account XX–51–
1242.37 Dismantling retired property and de- 58).
preciation (accounts XX–26–39 and 62–26– 1242.58 Operating signals and interlockers,
00). operating drawbridges, highway crossing
1242.38 Fringe benefits (account 12–26–00). protection (accounts XX–51–59, XX–51–60,
1242.39 Lease rentals—debit and credit, and XX–51–61).
other rents—debit and credit, and repairs 1242.59 Train inspection and lubrication (ac-
billed to others (accounts 31–26–00, 32–26– count XX–51–62).
00, 35–26–00, 36–26–00, and 40–26–98). 1242.60 Locomotive fuel, electric power pur-
1242.40 Joint facility rents—debit and cred- chased/produced for motive power, and
it, and joint facility—debit and credit servicing locomotives (accounts XX–51–
(accounts 33–26–00, 34–26–00, 37–26–00, and 67, XX–51–68, and XX–51–69).
38–26–00). 1242.61 Freight lost or damaged—solely re-
1242.41 Other and casualties and insurance lated (to train) (account 51–51–00).
(accounts XX–26–99 and 50–26–00). 1242.62 Clearing wrecks (account XX–51–63).
1242.63 Fringe benefits (account 12–51–00).
Freight Cars 1242.64 Joint facility—debit and credit (ac-
1242.42 Administration, repair and mainte- counts 37–51–00 and 38–51–00).
nance, machinery repair, equipment 1242.65 Other and casualties and insurance
damaged, dismantling retired property, (accounts XX–51–99 and 50–51–00).
fringe benefits, other casualties and in-
Yard Operations
surance, lease rentals, joint facility
rents, other rents, depreciation, joint fa- 1242.66 Administration (account XX–52–01).
cility, repairs billed to others, and other 1242.67 Switch crews; controlling oper-
(accounts XX–22–01, XX–22–42, XX–22–40, ations; yard and terminal clerical; loco-
XX–22–48, XX–22–39, 12–22–00, 50–22–00, 31– motive fuel; electric power purchased/
22–00 to 38–22–00 inclusive, 62–22–00, 40–22– produced for motive power; operating
98, and XX–22–99). switches, signals, retarders, and humps;
and servicing locomotives (accounts XX–
other equipment 52–64, XX–52–65, XX–52–66, XX–52–59, XX–
1242.43 Administration (account XX–27–01). 52–67, XX–52–68, and XX–52–69).
1242.44 Trucks, trailers, and containers (rev- 1242.68 Freight lost or damaged—solely re-
enue service) and floating equipment lated (to yard) (account 51–52–00).
(revenue service) (accounts XX–23–43 and 1242.69 Clearing wrecks (account XX–52–63).
XX–23–44). 1242.70 Fringe benefits (account 12–52–00).
1242.45 Passenger and other revenue equip- 1242.71 Joint facility—debit and credit (ac-
ment (account XX–27–45). counts 37–52–00 and 38–52–00).
1242.46 Computers and data processing 1242.72 Other and casualties and insurance
equipment (account XX–27–46). (accounts XX–52–99 and 50–52–00).
1242.47 Machinery (account XX–27–40).
Train and Yard Operations Common
1242.48 Work and other non-revenue equip-
ment (account XX–27–47). 1242.73 Cleaning car interiors and freight
1242.49 Equipment damaged (account XX– lost and damaged—all other (accounts
27–48). XX–53–70 and 51–53–00).
171
§ 1242.00 49 CFR Ch. X (10–1–07 Edition)
1242.74 Adjusting and transferring loads, LIST OF INSTRUCTIONS
and car loading devices and grain doors
(accounts XX–33–71 and XX–33–72). § 1242.00 Separation of common oper-
1242.75 Fringe benefits (account 12–53–00). ating expenses.
Specialized Service Operations (a) Commencing with annual reports
for the year 1978 or for any portion
1242.76 Administration; pickup and delivery,
marine line haul and rail substitute serv-
thereof until further order, all class I
ice; loading, unloading and local marine; railroad companies including class I
protective services; freight lost or dam- switching and terminal companies sub-
aged—solely related; fringe benefits; cas- ject to section 20 of the Interstate
ualties and insurance; joint facility, and Commerce Act as amended shall sepa-
other (accounts XX–34–01, XX–34–73, XX– rate operating expenses common to
34–74, XX–34–75, 51–34–00, 12–34–00, 50–34– both freight service and passenger serv-
00, 37–34–00, 38–34–00, and XX–34–99). ice in accordance with the regulation
Administrative Support Operations in this part.
(b) The carrier shall maintain records
1242.77 Administration (account XX–55–01).
supporting its common operating ex-
1242.78 Employees performing clerical and
accounting functions, and loss and dam-
pense apportionments to freight and
age claims processing (accounts XX–55–76 passenger services. The carrier shall re-
and XX–55–78). port common expense apportionments
1242.79 Communication systems operations to the Board as required.
(account XX–55–77).
FR 57534, Sept. 11, 2002]
1242.81 Joint facility—debit and credit (ac-
counts 37–55–00 and 38–55–00).
GENERAL
1242.82 Other and casualties and insurance
(accounts XX–55–99 and 50–55–00). § 1242.01 Expenses solely related to
OPERATING EXPENSES freight service and passenger serv-
ice.
General and Administration The Uniform System of Accounts for
1242.83 Officers—general superintendence; Railroad Companies (49 CFR part 1201)
accounting, auditing and finance; man- requires that carriers assign directly to
agement services and data processing; freight service or to passenger service,
personnel and labor relations; legal and including allied services, the expenses,
secretarial; research and development;
taxes, and purchased services incurred
writedown of uncollectible accounts;
property taxes; other taxes except on
solely for the benefit of either freight
corporate income or payrolls; and other or passenger service.
(accounts XX–63–01, XX–63–86, XX–63–87,
XX–63–91, XX–63–92, XX–63–94, 63–63–00, § 1242.02 Common expenses.
64–63–00, 65–63–00, and XX–63–99). The Uniform System of Accounts
1242.84 Marketing, sales, and public rela- also requires that carriers assign to
tions and advertising (accounts XX–63–88, common expense accounts the remain-
XX–63–89, and XX–63–93).
ing expenses, taxes and purchased serv-
1242.86 Industrial development (account
ices which are not solely related to ei-
XX–61–90). ther freight or passenger service. The
1242.87 Joint facility—debit and credit and following instructions govern the sepa-
casualties and insurance (accounts 37–63– ration of common expense accounts be-
00, 38–63–00, and 50–63–00). tween freight and passenger services.
AUTHORITY: 49 U.S.C. 721, 11142.
§ 1242.03 Made by accounting divi-
SOURCE: 43 FR 7637, Feb. 24, 1978, unless sions.
otherwise noted.
The separation shall be made by ac-
NOTE: The report forms prescribed by part
counting divisions, where such divi-
1242 are available upon request from the Of-
fice of the Secretary, Surface Transportation sions are maintained, and the aggre-
gate of the accounting divisions re-

ported for the quarter and for the year.
172
§ 1242.04 Special tests. 1X–XX, repairs billed by others, Dr.; 40–

1X–XX, repairs billed to others, cr.; and
When the separation of common ex-
41–1X–XX, other purchased services.
pense accounts between freight and
For the equipment activity excluding
passenger services is based upon special
administration functions, the ‘‘30’’ des-
tests or service unit factors, such tests
ignation denotes the summation of 39–
shall be made at sufficiently frequent
2X–XX and 41–2X–XX.
intervals to represent actual operating
(e) The ‘‘41’’ natural expense designa-
conditions. The service unit factors
tion (other purchased services) is the
used are those of the reporting period.
purchased service category of the
§ 1242.05 Operating expense account ‘‘XX’’ code for the following:
number notation. (1) Way and structures activity ad-
ministration—function accounts,
(a) The operating expense account
(2) Equipment activity administra-
numbers consist of a six-digit coding
tion—function accounts,
structure divided into three two-digit
(3) Transportation activity expense
groups. The first two-digit group de-
accounts, and
notes natural expenses; the second
(4) General and administration activ-
group denotes activities/subactivities
ity expense accounts.
for freight, passenger or common serv-
(f) The ‘‘61’’ general natural expense
ice; and the third group signifies appli-
designation is applicable to all ac-
cable function assignment.
counts with the ‘‘XX’’ symbol except
transportation, train and yards ac-
counts (XX–(33/43/53)–XX).
(g) The natural expense account
(b) For reporting purposes, four nat- number ‘‘50’’ is used throughout the
ural expense categories are utilized. separation instructions to indicate the
The categories are: salaries and wages summation of accounts 52-XX-XX,
(account 11-XX-XX); material, tools, Other casualties, and 53-XX-XX, Insur-
supplies, fuels and lubricants (account ance, that are reported as one item,
21-XX-XX); purchased services (ac- ‘‘Casualties and Insurance,’’ (50-XX-
counts 31-XX-XX to 41-XX-XX, inclu- XX).
sive); and general (accounts 61-XX-XX (h) The number ‘‘98’’ in the function
to 65-XX-XX, inclusive, 51-XX-XX, 52- account group (last two digits) is used
XX-XX, 53-XX-XX and 12-XX-XX). in the separation rules to designate the
(c) The symbol ‘‘XX’’ in the first two- summation of a natural expense con-
digit group is used throughout the sep- sisting of more than one functional as-
aration instructions to denote more signment that is reported as one item.
than one natural expense associated This includes Repairs Billed to Others,
with the same activity/subactivity- Cr.—Equipment (40–2X–XX). For exam-
function account structure. For report- ple, the locomotive subactivity con-
ing purposes, the natural expense ac- tains accounts 40–(21/24/26)–40, 40–(21/24/
count numbers represented by ‘‘XX’’ 26)–41, and 40–(21/24/26)–48 which are
include: treated as 40–(21/24/26)–98.
11—Salaries and wages; § 1242.06 Instructions for separation.
21—Materials, tools, supplies, fuels, and lu-
bricants; (a) Certain instructions for sepa-
30 or 41—Purchased services: rating common expense accounts (de-
30—Summation of certain purchased serv- pendent accounts) between freight and
ice accounts; passenger services base the allocation
41—Other purchased services; on the proportional freight/passenger
61—General.
separation of other common expense
(d) The ‘‘30’’ natural expense designa- accounts (independent accounts). The
tion indicates a summation of specific dependent account is frequently identi-
purchased service accounts that are re- fied by an ‘‘XX’’ symbol in the natural
ported in total rather than individ- expense position (first two digits) with
ually. The specific accounts under the corresponding independent accounts
way and structures activity except for also identified by the ‘‘XX’’ natural ex-
administration functions include 39– pense symbol. Unless otherwise stated,
173
ec03mr91.050</GPH>
§ 1242.10 49 CFR Ch. X (10–1–07 Edition)
the applicable natural expense associ- Switching (21–18–15)

ated with ‘‘XX’’ symbol shall be the Ballast:
same for both the dependent and inde- Running (21–17–16)
Switching (21–18–16)
pendent accounts. Track Laying and Surfacing:
(b) To illustrate, § 1242.10 provides in- Running (XX–17–17)
structions for separating common Way Switching (XX–18–17)
and Structures, Administration—Track Road Property Damaged:
accounts (dependent accounts) des- Running (XX–17–48)
ignated by XX–19–02. The separation is Switching (XX–18–48)
based on certain other common Way Other (XX–19–48)
Dismantling Retired Road Property:
and Structures accounts including Running (XX–17–39)
Roadway—Running, XX–17–10, and Switching (XX–18–39)
Roadway—Switching, XX–18–10. Other (XX–19–39)
(c) As § 1242.05 states, the ‘‘XX’’ sym-
bol denotes the following natural ex- § 1242.11 Administration—bridges and
penses for Way and Structures admin- buildings (account XX–19–03).
istration functions: Separate common administration—
11—Salaries and wages, bridges and buildings expenses between
21—Materials, tools, supplies, fuels, and lu- freight and passenger services in the
bricants, same proportion as the common ex-
41—Other purchased services, and penses of the following accounts are
61—General. separated between freight and pas-
These natural expenses shall be indi- senger services:
vidually applied to the separation rules Tunnels and Subways:
in § 1242.10. In each case, the inde- Running (XX–17–11)
pendent accounts providing the basis Switching (XX–18–11)
for freight/passenger separation of the Bridges and Culverts:
Running (XX–17–12)
dependent account shall have the same Switching (XX–18–12)
natural expense designation. For exam- Electric Power Systems (XX–19–21)
ple, the basis of separating account 11– Station and Office Buildings (XX–19–23)
19–02, Salaries and Wages, Way and Shop Buildings:
Structures, Administration—Track, Locomotives (XX–19–24)
would be based on certain independent Other Equipment (XX–19–26)
accounts including 11–17/18–10, Salaries Locomotive Servicing Facilities (XX–19–27)
Miscellaneous Buildings and Structures
and Wages, Way and Structures, Run- (XX–19–28)
ning/Switching, Repair and Mainte-
nance, Roadway. § 1242.12 Administration—signals (ac-
OPERATING EXPENSES—WAY AND
STRUCTURES Separate common administration—
signals expenses between freight and
§ 1242.10 Administration—track (ac- passenger services in the same propor-
count XX–19–02). tion as the common expenses of the fol-
Separate common administration— lowing accounts are separated between
track expenses between freight and freight and passenger services:
passenger services in the same propor- Signals and Interlockers:
tion as the common expenses of the fol- Running (XX–17–19)
lowing accounts are separated between Switching (XX–18–19)
freight and passenger services:
§ 1242.13 Administration—communica-
Roadway: tions (account XX–19–05).
Running (XX–17–10) Separate common administration—
Switching (XX–18–10)
Ties: communications expenses between
Running (21–17–13) freight and passenger services in the
Switching (21–18–13) same proportion as the common ex-
Rails: penses of the following accounts are
Running (21–17–14) separated between freight and pas-
Switching (21–18–14) senger services:
Other Track Materials:

Running (21–17–15) Communications Systems (XX–19–20)
174
§ 1242.14 Administration—other (ac- § 1242.17 Signals and interlockers (ac-

count XX–19–06). counts XX–17–19 and XX–18–19).
Separate common administration— Separate common expenses on the
other expenses between freight and basis of the total train-hours in run-
passenger services in the same propor- ning service, and/or the yard-switching
tion as the common expenses of the fol- plus train switching hours in the
lowing accounts are separated between switching service over the tracks on
freight and passenger services: which the common signals and inter-
lockers are used.
Administration:
Track (XX–19–02) § 1242.18 Communication systems (ac-
Bridges and Buildings (XX–19–03) count XX–19–20).
Signals (XX–19–04) Separate common expenses on the
Communications (XX–19–05) basis of the common expense separa-
tion in:
§ 1242.15 Roadway, tunnels and sub-
ways, bridges and culverts, ties, Way and Structures—Administration—
rails, other track material, ballast, Track, Bridges and Culverts, and Signals
track laying and surfacing, and (accounts XX–19–02 to XX–19–04, inclusive)
road property damaged (accounts Equipment—Administration—Locomotives
XX–17–10 to XX–18–12 inclusive, 21– and Other Equipment (accounts XX–26–01
17–13 to 21–18–16 inclusive, XX–17– and XX–27–01)
17, XX–18–17, XX–17–48, and XX–18– Transportation—Administration—Train,
48). Yard, and Administrative Support (ac-
counts XX–51–01, XX–52–01, and XX–55–01)
The expenses for running and switch- Dispatching Trains (Account XX–51–58)
ing subactivities shall be separated be-
tween freight service and passenger § 1242.19 Electric power systems (ac-
service as follows: count XX–19–21).
(a) Switching tracks. (1) Yard: Ex- Separate common expenses on basis
penses for yards used in common by of common expenses of electric power
freight and passenger services shall be purchased or produced for motive
apportioned on the basis of the respec- power (accounts XX–51–68 and XX–52–
tive switching locomotive unit-hours 68).
in the common yards.
(2) Way: Where the tracks at any one § 1242.20 Highway grade crossings (ac-
counts XX–17–22 and XX–18–22).
location are used in common by both
freight and passenger services, ex- Separate running and switching com-
penses may be assigned to that service mon expenses according to distribution
which makes the dominant use of of the running and switching portions
them. only of common expense accounts list-
(b) Running tracks. The expenses of ed in § 1242.10, Administration—Track
tracks used in common by both serv- (account XX–19–02).
ices shall be apportioned on the basis
§ 1242.21 Station and office buildings
of gross ton-miles (including loco- (account XX–19–23).
motive ton-miles) handled over these
tracks in the respective services. If the sum of the direct freight and
the direct passenger expenses is more
§ 1242.16 Road property damaged— than 50 percent of the total charges to
other (account XX–19–48). this account for an accounting divi-
sion, separate the common expenses on
Separate common expenses in pro- the basis of the directly assigned ex-
portion to the total common expenses penses in this account for the account-
assigned to freight/passenger from the ing division involved. If the sum of the
following Way and Structures ac- direct freight and the direct passenger
counts: expenses does not aggregate to more
Road Property Damaged—Running (XX–17– than 50 percent of the total charges for
48) an accounting division, the common
Road Property Damaged—Switching (XX–18– expenses should be separated on the

48) basis of special test. Where common
175
§ 1242.22 49 CFR Ch. X (10–1–07 Edition)
expenses exist in an accounting divi- § 1242.27 Coal marine terminals, ore

sion but the direct expenses are appli- marine terminals, TOFC/COFC ter-
cable to only one service, i.e., freight minals, other marine terminals,
or passenger, the common expenses motor vehicle loading and distribu-
tion facilities, and facilities for
shall be separated on the basis of a spe- other specialized service operations
cial test. If the accounting is per- (accounts XX–13–29 to XX–13–35, in-
formed on a system basis rather than clusive).
by accounting divisions, the common These accounts pertain solely to
expenses shall be separated on the freight service and contain no common
basis of a special study. expenses for separation herein.
§ 1242.22 Shop buildings—locomotives § 1242.28 Roadway machines, small
(account XX–19–24). tools and supplies, and snow re-
moval (accounts XX–19–36 to XX–19–
Separate common expenses according 38, inclusive).
to distribution of common expenses in
Separate common expenses according
the following accounts:
to distribution of common expenses
Machinery Repair (XX–26–40) listed in § 1242.10, Administration—
Locomotive—Repair and Maintenance (XX– Track (account XX–19–02).
26–41)
§ 1242.29 Fringe benefits (accounts 12–
§ 1242.23 Shop buildings—freight cars 17–00, 12–18–00, and 12–19–00).
(account XX–13–25). Separate common expenses in the
These accounts pertain solely to running subactivity in the same pro-
freight service and contain no common portion as the salaries and wages, way
expense for separation herein. and structures, common expenses in all
accounts with a designated running
§ 1242.24 Shop buildings—other equip- subactivity. Separate common ex-
ment (account XX–19–26). penses in the switching subactivity in
the same proportion as the salaries and
Assign directly to freight (or as par- wages, way and structure, common ex-
ticular facts suggest otherwise). pense accounts with a designated
switching activity. Separate common
§ 1242.25 Locomotive servicing facili- expenses in the other subactivity in
ties (account XX–19–27).
the same proportion as the salaries and
Separate common expenses according wages, way and structures, common ex-
to distribution of common expenses in penses in all accounts with a des-
the following accounts: ignated other subactivity.
Locomotive Fuel (XX–51–67 and XX–52–67) § 1242.30 Dismantling retired road
Electric Power Purchased or Produced for property and depreciation (ac-
Motive Power (XX–51–68 and XX–52–68) counts XX–17–39, XX–18–39, XX–19–
Servicing Locomotives (XX–51–69 and XX–52– 39, 62–17–00, 62–18–00, and 62–19–
69) 00).
Separate common expenses in each
§ 1242.26 Miscellaneous building and account for each subactivity (running,
structures (account XX–19–28). switching and other) in proportion to
Separate common expenses as spe- the separation of common repair and
cific facts indicate or according to dis- maintenance expenses associated with
tribution of common expenses listed in the particular common properties de-
§ 1242.10, Administration-Track (ac- preciated and/or dismantled.
§ 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,
176
switching and other) in proportion to OPERATING EXPENSES—EQUIPMENT

the separation of solely related freight
or passenger service in each account. If locomotives
there are no solely related expenses in
an account or if the solely related ex- § 1242.34 Administration (account XX–
penses are assignable entirely to 26–01).
freight or to passenger service, sepa- Separate common expenses according
rate common debit expense accounts to distribution of common expenses in
on the basis of the same percentages the following accounts:
calculated for the separation of admin- Repair and Maintenance (XX–26–41)
istration—other (account XX–19–06). Machinery Repair (XX–26–40)
(b) Separate all common credit ex- Equipment Damage (XX–26–48)
pense accounts on the same percent- Dismantling Retired Property (XX–26–39)
ages calculated for the separation of
§ 1242.35 Repair and maintenance (ac-
administration—other (account XX–19– count XX–26–41).
06).
(a) Where the carrier maintains
§ 1242.32 Joint facility rents—debit records of the repairs by individual lo-
and credit and joint facility—debit comotive units or classes of locomotive
and credit (accounts 33–17–00, 33– units:
18–00, 33–19–00, 34–17–00, 34–18–00, (1) If individual locomotive units or
34–19–00, 37–17–00, 37–18–00, 37–19– classes of locomotive units are used ex-
00, 38–17–00, 38–18–00, and 38–19– clusively in road-freight, road-pas-
00). senger, yard-freight, or yard-passenger
(a) Solely related (freight or pas- service, the separation shall be actual.
(2) If individual locomotive units or
senger service) debit expense accounts
classes or locomotive units are used
in each subactivity (running, switching
interchangeably (common) in road-
and other) shall be assigned according freight (including train-switching),
to the use made of each facility by the road passenger (including train switch-
reporting carrier, regardless of the use ing), yard-freight or yard-passenger
by other carriers. Common debit ex- service, separate the heavy shop re-
penses shall be separated on the basis pairs between these services on the
of the percentage separations of the basis of run-out unit miles of indi-
solely related expenses in each individual locomotive units or classes of
vidual account. If there are no solely locomotive units since the previous
related expenses or if the solely related shopping; and separate the cost of run-
expenses are assigned entirely to ning repairs between such services on
freight or to passenger service, sepa- the basis of the miles run by the indi-
rate common debit expenses on the vidual locomotive unit or class of loco-
same percentages calculated for the motive unit in each service during the
separation of administrative—other accounting period for which the separa-
(account XX–19–06). tion is being made.
(b) Separate all common credit ex- (b) Where the carrier maintains
pense accounts on the same percent- records of heavy shop repair costs by
individual locomotive units or classes
of locomotive units, but does not main-
administration—other (account XX–19–
tain records of the cost of running re-
06). pairs by individual locomotive units:
(1) The heavy shop repairs shall be
§ 1242.33 Other expenses and casual-
ties and insurance (accounts XX–17– separated as indicated in paragraph (a)
99, XX–18–99, XX–19–99, 50–17–00, of this section.
50–18–00, and 50–19–00). (2) The common expenses of running
repairs shall be separated among road-
Separate common expenses on the freight (including train switching),
basis of the percentages calculated for road-passenger (including train switch-
the separation of administrative— ing), yard-freight and yard-passenger
other (account XX–19–06).
services on the basis of locomotive unit

miles or locomotive ton-miles for the
177
§ 1242.36 49 CFR Ch. X (10–1–07 Edition)
accounting period for which the separa- aration of administration (account XX–
tion is being made. 26–01).
(c) Where the carrier does not main- (b) Separate all common credit ex-
tain records of either heavy shop re- pense accounts on the same percent-
pairs or running repairs by individual ages calculated for the separation of
locomotive units or classes of loco- administration (account XX–26–01).
motive units: The expenses shall be
separated among road-freight service § 1242.40 Joint facility rents—debit
(including train-switching), road-pas- and credit, and joint facility—debit
senger service (including train switch- and credit (accounts 33–26–00, 34–
ing), yard freight, and yard-passenger 26–00, 37–26–00 and 38–26–00).
services, on the basis of locomotive
(a) Solely related freight and pas-
unit-miles or locomotive ton-miles for
the accounting period for which the senger debit expense accounts shall be
separation is being made. assigned according to the use made of
each facility by the reporting carrier,
§ 1242.36 Machinery repair and equip- regardless of the use by other carriers.
ment damaged (accounts XX–26–40 Common debit expenses shall be sepa-
and XX–26–48). rated on the basis of the percentage
Separate common expenses according separation of the solely related ex-
to separation of common expenses in penses; or if the solely related expenses
repair and maintenance (account XX– are assigned entirely to freight or pas-
26–41). senger service, separate common ex-
penses on the same percentages cal-
§ 1242.37 Dismantling retired property
and depreciation (accounts XX–26– culated for the separation of adminis-
39 and 62–26–00). tration (account XX–26–01).
Separate common expenses in each (b) Separate all common credit ex-
account in proportion to the separation pense accounts on the same percent-
of common repair and maintenance ex- ages calculated for the separation of
penses associated with the particular administration (account XX–26–01).
common properties depreciated and/or
dismantled. § 1242.41 Other and casualties and in-
surance (accounts XX–26–99 and 50–
§ 1242.38 Fringe benefits (account 12– 26–00).
26–00). Separate common expenses on the
Separate common expenses in pro- basis of percentages calculated for the
portion to the split of common salaries separation of administration (account
and wages in administration, loco- XX–26–01).
motive repair and maintenance, ma-
chinery repair, equipment damaged, FREIGHT CARS
and dismantling retired road property
(accounts 11–26–01, 11–26–41, 11–26–40, 11– § 1242.42 Administration, repair and
26–48, and 11–26–39). maintenance, machinery repair,
equipment damaged, dismantling
§ 1242.39 Lease rentals—debit and retired property, fringe benefits,
credit, other rents—debit and cred- other casualties and insurance,
it, and repairs billed to others (ac- lease rentals, joint facility rents,
counts 31–26–00, 32–26–00, 35–26–00, other rents, depreciation, joint fa-
36–26–00 and 40–26–98). cility, repairs billed to others, and
(a) Separate common debit expense other (accounts XX–22–01, XX–22–42,
accounts in proportion to the assign- XX–22–40, XX–22–48, XX–22–39, 12–
22–00, 50–22–00, 31–22–00 to 38–22–
ment of solely related freight or pas- 00 inclusive, 62–22–00, 40–22–98 and
senger service in each individual debit XX–22–99).
account. If there are no solely related
expenses or if the solely related ex- These accounts pertain solely to
penses are assigned entirely to freight freight service and contain no common
or passenger service, separate common expenses for separation herein.
debit expense accounts on the same

percentage basis calculated for the sep-
178
OTHER EQUIPMENT § 1242.48 Work and other non-revenue

equipment (account XX–27–47).
§ 1242.43 Administration (account XX–
27–01). Separate common expenses according
to distribution of common expenses in
Separate common expenses according Way and structures—administration—
to freight/passenger separation of the other (account XX–19–06).
following accounts:
Passenger and Other Revenue Equipment § 1242.49 Equipment damaged (ac-
(XX–27–45) count XX–27–48).
Work and Other Non-Revenue Equipment Separate common expenses according
(XX–27–47) to distribution of common expenses in
machinery, passenger and other rev-
§ 1242.44 Trucks, trailers, and con-
enue equipment, computer and data
tainers (revenue service) and float-
ing equipment (revenue service) processing equipment and work and
(accounts XX–23–43 and XX–23–44). other non-revenue equipment accounts
(accounts XX–27–40, XX–27–45, XX–27–
These accounts pertain solely to
46, and XX–27–47).
freight service and contain no common
expenses for separation herein. § 1242.50 Fringe benefits (account 12–
27–00).
§ 1242.45 Passenger and other revenue
equipment (account XX–27–45). Separate common expenses in pro-
portion to the percentage separation of
Separate as particular facts suggest.
common salaries and wages in adminis-
§ 1242.46 Computers and data proc- tration (account XX–27–01).
essing equipment (account XX–27–
46). § 1242.51 Dismantling retired property
and depreciation (accounts XX–27–
If the sum of the direct freight and 39 and 62–27–00).
Separate common expenses in pro-
than 50 percent of the total charges to
portion to the separation of common
this account for an accounting divi-
repair and maintenance expenses asso-
sion, separate the common expenses on
ciated with the particular common
the basis of the directly assigned ex-
property depreciated and/or disman-
penses in this account for the account-
tled.
ing division involved. If the sum of the
direct freight and the direct passenger § 1242.52 Lease rentals—debit and
expenses does not aggregate 50 percent credit, other rents—debit and cred-
of the total charges for an accounting it, repairs billed to others—credit
division, the common expenses shall be (accounts 31–27–00, 32–27–00, 35–27–
separated on the basis of a special test. 00, 36–27–00, and 40–27–98).
If common expenses exist in an ac- (a) Separate common debit expense
counting division but the direct ex- accounts in proportion to the separa-
penses are applicable to only one serv- tion of solely related (freight or pas-
ice, i.e., freight or passenger, the com- senger service) in each individual ac-
mon expenses shall be separated on the count. If there are no solely related ex-
basis of a special test. If the account-
penses or if the solely related expenses
ing is performed on a system basis
are assignable entirely to freight or
rather than by accounting divisions,
passenger service, separate common
follow the intent of the above instruc-
debit expense accounts on the same
tions.
percentages calculated for the separa-
§ 1242.47 Machinery (account XX–27– tion of administration (account XX–27–
40). 01).
(b) Separate common credit expense
Separate common expenses on the
accounts on the basis of the same per-
basis of the freight/passenger separa-
centages calculated for the separation
tion of administration (account XX–27–

01). of administration (account XX–27–01).
179
§ 1242.53 49 CFR Ch. X (10–1–07 Edition)
§ 1242.53 Joint facility rents—debit § 1242.56 Engine crews and train

and credit and joint facility—debit crews (accounts XX–51–56 and XX–
and credit (accounts 33–27–00, 34– 51–57).
27–00, 37–27–00 and 38–27–00).
(a) Solely related freight and pas- basis of direct assignment or if there
senger service debit expense accounts are no directly assignable expenses,
shall be assigned according to the use separate on the basis of train hours, in-
made of each facility by the reporting cluding train switching hours.
carrier, regardless of the use made of
the facility by other carriers. Common § 1242.57 Dispatching trains (account
debit expense accounts shall be sepa- XX–51–58).
rated on the basis of the percentage Separate common expenses on the
separation of the solely related ex- basis of train hours, including train
penses in each individual account. If switching hours.
there are no solely related expenses or
if the solely related expenses are as- § 1242.58 Operating signals and inter-
signed entirely to freight or passenger lockers, operating drawbridges,
service, separate common expenses on highway crossing protection (ac-
the same percentages calculated for counts XX–51–59, XX–51–60 and XX–
51–61).
the separation of administration (ac-
count XX–27–01). Separate common expenses on the
(b) Separate all common credit ex- basis of total train hours (including
pense accounts on the basis of the same train switching hours) of the particular
percentages calculated for the separa- common operating divisions or track
tion of administration (account XX–27– segment on which the common signals,
01). interlockers, drawbridges and highway
crossings are located.
§ 1242.54 Other and casualties and in-
surance (accounts XX–27–99 and 50– § 1242.59 Train inspection and lubrica-
27–00). tion (account XX–51–62).
Separate common expenses on the Separate common expenses on basis
basis of the percentages calculated for of directly assigned expenses. If there
the separation of administration (ac- are no directly assignable expenses,
count XX–27–01). separate on the basis of train miles.
OPERATING EXPENSES— § 1242.60 Locomotive fuel, electric

TRANSPORTATION power purchased/produced for mo-
tive power and servicing loco-
motives (accounts XX–51–67, XX–51–
train operations 68 and XX–51–69).
Separate common expenses in each
§ 1242.55 Administration (account XX– account on basis of direct expenses. If
51–01).
there are no direct expenses, separate
Separate common expenses according on the basis of train hours and way-
to distribution of common expenses in switching service hours.
the following accounts:
§ 1242.61 Freight lost or damaged—
Engine Crews (XX–51–56) solely related (to train) (account 51–
Train Crews (XX–51–57) 51–00).
Dispatching Trains (XX–51–58)
Operating Signals and Interlockers (XX–51–
59) basis of proportion of the solely related
Operating Drawbridges (XX–51–60) expenses assigned to freight and pas-
Highway Crossing Protection (XX–51–61) senger services or on the basis of a spe-
Train Inspection and Lubrication (XX–51–62) cial study.
Locomotive Fuel (XX–51–67)
Electric Power Purchased/Produced for Mo-
§ 1242.62 Clearing wrecks (account
tive Power (XX–51–68)
XX–51–63).
Servicing Locomotives (XX–51–69) Separate common expenses according

Clearing Wrecks (XX–51–63) to specific circumstances.
180
§ 1242.63 Fringe benefits (account 12– § 1242.67 Switch crews; controlling op-
51–00). erations; yard and terminal clerical;
locomotive fuel; electric power pur-
Separate common expenses in pro- chased/produced for motive power;
portion to the percentage separation operating switches signals, retard-
calculated for the salaries and wages ers, and humps; and servicing loco-
account—administration (account 11– motives (accounts XX–52–64, XX–52–
51–01). 65, XX–52–66, XX–52–59, XX–52–67,
XX–52–68 and XX–52–69).
§ 1242.64 Joint facility—debit and Separate common expenses on the
credit (accounts 37–51–00 and 38– basis of the distribution of freight and
51–00). passenger yard-switching hours in
(a) Solely related freight and pas- those yards common to both freight
senger service debit expense accounts and passenger services.
shall be assigned according to the use
made of each facility by the reporting § 1242.68 Freight lost or damaged—
solely related (to yard) (account 51–
carrier, regardless of the use made of 52–00).
the facility by other carriers. Common
debit expense accounts shall be sepa- Separate common expenses on the
rated on the basis of the percentage basis of the solely related freight and
separation of the solely related ex- passenger expenses or on the basis of a
penses. If there are no solely related special study.
expenses or if the solely related ex- § 1242.69 Clearing wrecks (account
penses are assigned entirely to either XX–52–63).
freight or passenger service, separate
common expenses on the same percent- Separate common expenses according
ages calculated for the separation of to specific circumstances.
administration (account XX–51–01). § 1242.70 Fringe benefits (account 12–
(b) Separate common credit expense 52–00).
accounts on the basis of the percent-
Separate common expenses in pro-
portion to the percentage separation
administration (account XX–51–01).
calculated for the salaries and wages
§ 1242.65 Other and casualties and in- administration account (account 11–52–
surance (accounts XX–51–99 and 50– 01).
51–00).
§ 1242.71 Joint facility—debit and
Separate common expenses on the credit (accounts 37–52–00 and 38–
basis of the percentages calculated for 52–00).
the separation of administration (ac- (a) Solely related freight and pas-
count XX–51–01). senger service debit expenses accounts
shall be assigned according to the use
YARD OPERATIONS
made of each facility by the reporting
§ 1242.66 Administration (account XX– carriers, regardless of the use made of
52–01). the facility by other carriers. Common
debit expenses shall be separated on
Separate common expenses according the basis of the percentage separation
to distribution of common expenses in of the solely related expenses. If there
the following accounts: are no solely related expenses or if the
Switch Cews (XX–52–64) solely related expenses are assigned en-
Controlling Operations (XX–52–65) tirely to freight or passenger service,
Yard and Terminal Clerical (XX–52–66) separate common expenses on the same
Operating Switches, Signals, Retarders and percentages calculated for the separa-
Humps (XX–52–59) tion of administration (account XX–52–
Locomotive Fuel (XX–52–67) 01).
Servicing Locomotives (XX–52–69) (b) Separate common credit expense
Electric Power Purchased/Produced for Mo- accounts on the basis of the percent-
tive Power (XX–52–68) ages calculated for the separation of

Clearing Wrecks (XX–52–63) administration (account XX–51–01).
181
§ 1242.72 49 CFR Ch. X (10–1–07 Edition)
§ 1242.72 Other and casualties and in- counts XX–55–76, XX–55–77 and XX–55–
surance (accounts XX–52–99 and 50– 78).
52–00).
§ 1242.78 Employees performing cler-
Separate common expenses on the ical and accounting functions, and
basis of the percentages calculated for loss and damage claims processing
the separation of administration (ac- (accounts XX–55–76 and XX–55–78).
count XX–52–01). If the sum of the direct freight and
TRAIN AND YARD OPERATIONS COMMON
than 50 percent of the total charges to
§ 1242.73 Cleaning car interiors and this account for an accounting divi-
freight lost and damaged—all other sion, separate the common expenses on
(accounts XX–53–70 and 51–53–00). the basis of the directly assigned ex-
penses in this account for the par-
Separate common expenses on basis
ticular accounting division. If the sum
of solely related freight and passenger
of the direct freight and the direct pas-
expenses or special study.
senger expenses does not aggregate 50
§ 1242.74 Adjusting and transferring percent of the total charges for an ac-
loads, and car loading devices and counting division, the common ex-
grain doors (accounts XX–33–71 and penses shall be separated on the basis
XX–33–72). of special test. If common expenses
exist in an accounting division but the
These accounts pertain solely to
direct expenses are applicable to only
one service, i.e., freight or passenger,
expenses for separation herein.
and even though the direct charges are
§ 1242.75 Fringe benefits (account 12– over 50 percent of the total charges,
53–00). the common expenses shall be sepa-
rated on the basis of a special test. If
Separate common expenses in pro- the accounting is performed on a sys-
portion to the freight/passenger separa- tem basis rather than by accounting
tion calculated for the salaries and division, follow the intent of the above
wages—cleaning car interiors common instructions.
account (account 11–53–70).
§ 1242.79 Communication systems op-
SPECIALIZED SERVICE OPERATIONS erations (account XX–55–77).
§ 1242.76 Administration; pickup and Separate common expenses on bases
delivery, marine line haul, and rail of the percentages calculated for the
substitute service; loading, unload- separation of Communication Systems
ing and local marine; protective (account XX–19–20), § 1242.18.
services; freight lost or damaged—
solely related; fringe benefits; cas- § 1242.80 Fringe benefits (account 12–
ualties and insurance; joint facility, 55–00).
and other (accounts XX–34–01, XX– Separate common expenses in pro-
34–73, XX–34–74, XX–34–75, 51–34–00, portion to the percentage separation
12–34–00, 50–34–00. 37–34–00, 38–34–
00 and XX–34–99). calculated for the salaries and wages—
administration account (account 11–55–
These accounts pertain solely to 01).
expenses for separation herein. § 1242.81 Joint facility—debit and
credit (accounts 37–55–00 and 38–
ADMINISTRATIVE SUPPORT OPERATIONS 55–00).
Solely related freight and passenger
§ 1242.77 Administration (account XX– service debit expense accounts shall be
55–01). assigned according to the use made of
Separate common expenses in the each facility by the reporting carriers,
same proportion as common expenses regardless of the use made of the facil-
are separated in employees performing ity by other carriers. Common debit
clerical and accounting functions, com- expenses shall be separated on the
munication systems operations and basis of the percentage separation of

loss and damage claims processing (ac- the solely related expenses. If there are
182
no solely related expenses or if the § 1242.86 Industrial development (ac-

solely related expenses are assigned en- count XX–61–90).
tirely to either freight or passenger These accounts pertain solely to
service, separate common expenses on freight service and contain no common
the same percentages calculated for expenses for separation herein.
the separation of administration (ac-
count XX–55–01). § 1242.87 Joint facility—debit and
credit and casualties and insurance
Separate common credit expenses on (accounts 37–63–00, 38–63–00 and
the basis of the percentages calculated 50–63–00).
for the separation of administration Separate the common expenses in
(account XX–55–01). proportion to the total of all common
expense separations determined in
§ 1242.82 Other and casualties and in-
surance (accounts XX–55–99 and 50– §§ 1242.83 and 1242.84 above.
55–00). NOTE: If compilation of the data in compli-
ance with any of the above separation rules
Separate common expenses on the results in an undue burden in accounting ex-
basis of the percentages calculated for pense, the carrier may request relief from
the separation of administration (ac- 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
OPERATING EXPENSES methods also by letter to the Director, Bu-
reau of Accounts. In both cases, the carrier
general and administration shall support the request with full details.
§ 1242.83 Officers—general super- PART 1243—QUARTERLY

intendence; accounting, auditing OPERATING REPORTS—RAILROADS
and finance; management services
and data processing; personnel and Sec.
labor relations; legal and secre- 1243.1 Revenues, expenses and income.
tarial; research and development; 1243.2 Condensed balance sheet.
writedown of uncollectible ac- 1243.3 Report of fuel cost, consumption, and
counts; property taxes; other taxes surcharge revenue.
except on corporate income or pay-
AUTHORITY: 49 U.S.C. 721, 11145.
rolls; and other (accounts XX–63–01,
XX–63–86, XX–63–87, XX–63–91, XX– SOURCE: 37 FR 5503, Mar. 16, 1972, unless
63–92, XX–63–94, 63–63–00, 64–63–00, otherwise noted.
65–63–00 and XX–63–99). NOTE: The report forms prescribed by part
Separate common expenses in pro- fice of the Secretary, Surface Transportation
portion to the separation of all other Board, Washington, DC 20423.
common expenses except General and
Administrative Expenses. § 1243.1 Revenues, expenses and in-
come.
§ 1242.84 Marketing, sales, and public Commencing with reports for the 3
relations and advertising (accounts months beginning January 1, 1972, and
XX–63–88, XX–63–89 and XX–63–93). for subsequent quarters thereafter,
Separate each common expense ac- until further ordered, all class I rail-
count on the basis of the solely related roads, except switching and terminal
freight and passenger expense ac- companies, subject to the provisions of
counts. Part I of the Interstate Commerce Act,
be, and they are hereby, required to
§ 1242.85 Fringe benefits (account 12– compile and file quarterly reports of
63–00). revenues, expenses and income in ac-
cordance with quarterly report Form
Separate the common expenses in
RE&I, and instructions thereon. Such
proportion to the total common sala- quarterly reports shall be filed, in du-
ries and wages expense separation (ac- plicate, in the Office of Economics, En-
count 11-XX-XX) determined in
vironmental Analysis, and Administra-

§§ 1242.83 and 1242.84. tion, Surface Transportation Board,
183
§ 1243.2 49 CFR Ch. X (10–1–07 Edition)
Washington, DC 20423, within 30 days the end of the quarter to which they
after the end of the quarter to which relate.
they relate. [37 FR 5503, Mar. 16, 1972, as amended at 67
[37 FR 5503, Mar. 16, 1972, as amended at 67 FR 57534, Sept. 11, 2002]
FR 57534, Sept. 11, 2002]
§ 1243.3 Report of fuel cost, consump-
§ 1243.2 Condensed balance sheet. tion, and surcharge revenue.
Commencing with reports for the 3
Commencing with reports for the 3
months beginning October 1, 2007, all
months beginning January 1, 1972, and Class I railroads are required to file
for subsequent quarters thereafter, quarterly a Report of Fuel Cost, Con-
until further ordered, all class I rail- sumption, and Surcharge Revenue, in
roads, except switching and terminal accordance with the Board’s reporting
companies, subject to the provisions of form. Such reports shall be filed, in du-
Part I of the Interstate Commerce Act, plicate, with the Office of Economics,
be, and they are hereby, required to Environmental Analysis, and Adminis-
compile and file quarterly reports of tration, Surface Transportation Board,
balance sheet items in accordance with Washington, DC 20423–0001, within 30
quarterly report Form CBS, and in- days after the end of the quarter re-
structions thereon. Such quarterly reported.
ports shall be filed, in duplicate, with
the Office of Economics, Environ- APPENDIX TO SECTION 49 CFR 1243.3
mental Analysis, and Administration, OMB Control No. 2140–0014
Surface Transportation Board, Wash- Expires llll, 2010
ington, DC 20423, within 30 days after
Railroad Name llllll
QUARTERLY REPORT OF FUEL COST, CONSUMPTION, AND SURCHARGE REVENUE FOR THE QUARTER
ENDING llll, 20ll
[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
Data
Line No. (in thousands)
(a) (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—Loco-
motive 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, llllll, Title: The estimated annual hourly, per respond-
llllll, state that this report was pre- ent burden for filing this report is 12 hours.
pared by me or under my supervision and This report is mandatory for Class I car-
that I have carefully examined it and on the riers.
basis of my knowledge, belief, and Information collected through this report
verification declare it to be full, true and is published on the Board’s website and is
correct. maintained by the agency for at least 2
SUPPLEMENTAL INFORMATION ABOUT THE FUEL years.
SURCHARGE REPORT The display of a currently valid OMB con-
trol number for this collection is required by
The following information is provided in law. Under 5 CFR 1320.5(b), persons are not
compliance with OMB requirements, pursu- required to respond to this collection of in-
ant to the Paperwork Reduction Act of 1995,
formation unless it displays a currently
44 U.S.C. 3501 et seq.:
valid OMB control number.
Information in this report is intended to
permit the Board to monitor the fuel sur- [72 FR 45386, Aug. 14, 2007]
charge practices of Class I carriers.
184
EFFECTIVE DATE NOTE: At 72 FR 45386, Aug. in any of the three preceding years. A
14, 2007, § 1243.3 was added effective Nov. 12, railroad required to file waybill sample
2007. information under this section shall
herein be referred to as subject railroad.
PART 1244—WAYBILL ANALYSIS OF (b) Waybill terminations shall in-
TRANSPORTATION OF PROP- clude all line-haul revenue movements
ERTY—RAILROADS terminating for waybilling purposes on
the subject railroad’s line whether the
Sec. lading is destined for the terminating
1244.1 Definitions. station as denoted on the waybill or
1244.2 Applicability. the shipment is being rebilled or for-
1244.3 Reporting contract shipment waybills
warded to the ultimate destination by
and Canadian and Mexican international
waybills. another railroad or another mode of
1244.4 Sampling of waybills. transportation (e.g., lake cargo, in-
1244.5 Date of filing. bound transit, or other rebilled move-
1244.6 Retention of files. ments).
1244.7 Special studies. (c) Each subject railroad shall also
1244.8 Analysis of waybill data. file the required waybill sample infor-
1244.9 Procedures for the release of waybill
data.
mation for all of its railroad subsidi-
aries.
AUTHORITY: 49 U.S.C. 721, 10707, 11144, 11145. (d) Each subject railroad shall also
SOURCE: 46 FR 26784, May 15, 1981, unless file the required waybill sample infor-
otherwise noted. mation for any other railroad for which
it performs revenue billing and/or
§ 1244.1 Definitions. interline settlements under special
(a) Railroad—an individual railroad agreement.
or terminal company subject to the (e) The surviving corporate entity of
Interstate Commerce Act and every re- railroads (subject to the Interstate
ceiver, trustee, executor, administrator Commerce Act) who have merged or re-
or assignee of any such railroad. If a organized shall be required to report
railroad and its railroad subsidiaries waybill sample information if its pred-
report to the Board on a consolidated ecessor railroad or any of its prede-
basis, they would collectively be con- cessor railroads were required to report
sidered as a railroad. under this section.
(b) A railroad subsidiary—a railroad (f) In order to determine the number
owned or controlled by another rail- of carloads terminated in each state,
road. railroads not otherwise submitting
(c) A waybill, which may be referred waybill information must report annu-
to by other names such as mine tick- ally the number of carloads terminated
ets, is the document or instrument pre- by state for the last calendar year.
pared from the bill of lading contract These reports shall be submitted by
or shipper’s instructions as to the dis- March 1 of the year following the re-
position of the freight, and used by the port year.
railroad(s) involved as the authority to (g) Transition. This final rule will
move the shipment and as the basis for apply to all subject waybills which are
determining the freight charges and in the subject railroad’s audit month of
interline settlements. July 1981 and all audit months there-
after. The former rule will continue to
§ 1244.2 Applicability. apply to all subject waybills for the
(a) Effective July 1, 1981 and there- prior audit months up to and including
after, unless otherwise ordered, each June 1981.
railroad as defined in § 1244.1 above is
required to file waybill sample infor- § 1244.3 Reporting contract shipment
mation for all line-haul revenue way- waybills and Canadian and Mexican
bills terminated on its lines if it termi- international waybills.
nates at least 4,500 revenue carloads in (a) All railroads shall identify (flag)
any of the three preceding years, or if contract shipment waybills.
it terminates at least 5% of the rev- (b) The revenue associated with con-
enue carloads terminating in any state tract shipments may be encrypted
185
§ 1244.4 49 CFR Ch. X (10–1–07 Edition)
(masked) to safeguard the confiden- (b) The Manual System. (1) The sample
tiality of the contract rates. of subject waybills shall be as follows:
(1) Upon written request, the Board (i) All waybills with less than 6 car-
will provide a masking procedure for a loads per waybill whose serial numbers
railroad’s use or will mask the con- are 1 or end in 01,
tract revenues when the Waybill Sam- (ii) All waybills with 6 to 25 carloads
ple is filed with the Board. per waybill whose serial numbers end
(2) When a railroad intends to use its in 1; and,
own proprietary masking procedure, (iii) All waybills with 26 or more car-
those procedures, and any changes in loads per waybill whose serial numbers
those procedures, must be approved by end in 1 or 7.
the Board thirty (30) days prior to their (2) The expected sampling rates for
use. the manual system are as follows:
(3) All railroads that use a propri-
Ex-
etary masking procedure, and intend to pect-
continue to use the same procedure, Numbers of carloads on waybill ed
sam-
must certify, by letter to the Board, ple
prior to January 31 each year, that the rate
contract revenue masking procedures
1 to 5 ........................................................................... 1/100
are unchanged. 6 to 25 ......................................................................... 1/10
(4) All correspondence and certifi- 26 and over ................................................................. 1/5
cations concerning masking procedures
should be addressed to: Director, Office (3) Upon giving the subject roads 60
of Economics, Environmental Analysis, days notice, the Board may require
and Administration, Surface Transpor- random serial number endings in lieu
tation Board, Washington, DC 20423– of the respective endings shown in
0001, ATTN: WAYBILL COORDI- § 1244.3(b). These random serial number
NATOR. endings would have the expected sam-
(c) Railroads moving traffic on the ple rates shown in § 1244.3(b)(2).
U.S. rail system to the Canadian or (4) If the subject waybills have no
Mexican border shall include a rep- waybill numbers or serial numbers, or
resentative sample of such inter- have seriously flawed waybill or serial
national export traffic in the Waybill numbers, then the subject railroad
Sample. should serialize those documents in
(d) Railroads shall identify (flag) blocks of 1,000 or blocks of multiples of
such movements as international traf- 1,000 (e.g., 1, 2, . . . 1,000; 1, 2, . . .) and
fic in the waybill records. use these constructed serial numbers
(e) Railroads may report information for selection purposes.
on the complete rail routing or report (c) The Computerized System. (1) The
only information related to the U.S. tape shall be required to conform to
portion of the movement. the standards and format specified in
(f) Railroads may mask revenue divi- Statement No. 81–1, Procedure for Sam-
sions associated with cross-border traf- pling Waybill Records by Computer,
fic following the masking procedures issued by the Surface Transportation
set forth in paragraphs (a) and (b) of Board, which may be revised from time
this section. to time.
[65 FR 37711, June 16, 2000, as amended at 66
(2) The sampling rates for the com-
FR 53735, Oct. 24, 2001] puterized system are as follows:
Sam-
§ 1244.4 Sampling of waybills. Number of carloads on waybill ple
rate
(a) Subject railroads shall file way-
bill sample information in one of the 1 to 2 ............................................................................. 1/40
following two ways. (1) Authenticated 3 to 15 ........................................................................... 1/12
16 to 60 ......................................................................... 1/4
copies of a sample of audited revenue 61 to 100 ....................................................................... 1/3
waybills—the manual system 101 and over ................................................................. 1/2
(§ 1244.3(b)). (2) A computer tape con-
taining specified information from a (d) Controls and Annual Counts. (1)
Each subject railroad shall maintain a
sample of waybills—the computerized

system (§ 1244.3(c)). control procedure to ensure complete
186
and accurate reporting for the waybill the end of the reporting period to the
sampling. All pertinent waybill data Board.
shall be included on hard copy waybill (c) When the submitted waybill sam-
submissions including inbound ref- ple information is returned to the sub-
erences for transit waybills. All such mitting railroad for correction, that
pertinent waybill data shall be legible. railroad shall resubmit corrected data
(2) All subject railroads shall main- to the Board promptly but no later
tain a record of the number of line-haul than 60 days after its receipt.
revenue carloads that terminated on (d) Transmittal Forms. (1) Subject rail-
their line in a calendar year and shall roads using the manual system of re-
furnish this number when requested by porting shall complete the Transmittal
the Board. Form OPAD–2, to accompany each
(3) All subject railroads using the waybill sample submission.
manual system of reporting shall fur- (2) Subject railroads using the com-
nish the Board, in accordance with in- puterized system of reporting shall
structions on the Transmittal Form complete the Transmittal Form OPAD–
OPAD–2, the total counts of line-haul 1, to accompany each waybill tape sub-
revenue waybills terminated in each mission.
reporting period for the following three [46 FR 26784, May 15, 1981. Redesignated at 65
categories: FR 37711, June 16, 2000]
(i) Waybills, with less than six car-
loads per waybill, § 1244.6 Retention of files.
(ii) Waybills with 6 to 25 carloads per (a) Subject railroads which submit
waybill, and waybill sample data by the computer-
(iii) Waybills with 26 or more car- ized system instead of the manual sys-
loads per waybill. tem shall retain the underlying hard
(4) All subject railroads on the com- copy waybills or facsimilies capable of
puterized system of reporting shall fur- producing legible copies, which shall be
nish the Board the control counts and complete including inbound references
tape specification information as re- for transit waybills, for a minimum pe-
quired by the Statement No. 81–1. riod of four years.
(5) Certification by a responsible offi- (b) This file of retained waybills shall
cer of the subject railroad as to the be maintained in such a manner that
completeness and accuracy of sample the railroads on the computerized sys-
shall be made once a year in accord- tem may readily retrieve waybill cop-
ance with the instructions on the ies using the waybill identifier code as
Transmittal Forms OPAD–1 or OPAD– shown on the submitted computerized
2. waybill record.
[46 FR 26784, May 15, 1981, as amended at 46 [46 FR 26784, May 15, 1981. Redesignated at 65
FR 45141, Sept. 10, 1981. Redesignated at 65 FR 37711, June 16, 2000]
FR 37711, June 16, 2000]
§ 1244.7 Special studies.
§ 1244.5 Date of filing. (a) Although routine submission of
(a) The reporting period for which hard copy waybills is eliminated when
subject railroads submit waybill sam- a railroad reports under the computer-
ple information shall be the audit (ac- ized system, the Board may order that
counting) month except as specified railroad to submit hard copies of the
below: underlying waybills for special studies.
(1) Subject railroads using the com- (b) The Board may order the subject
puterized system may submit waybill railroads to supply additional data for
sample information quarterly as speci- submitted waybill copies or records for
fied in Statement 81–1. special studies.
(2) Subject railroad using the manual [46 FR 26784, May 15, 1981. Redesignated at 65
system may submit waybill sample in- FR 37711, June 16, 2000]
formation quarterly if it submits fewer
than 1,000 waybills per year. § 1244.8 Analysis of waybill data.
(b) Waybill sample information shall Users of the waybill sample when
be forwarded no later than 60 days from presenting waybill analysis before the
187
§ 1244.9 49 CFR Ch. X (10–1–07 Edition)
Board shall ensure that the appropriate data elements are aggregated to con-
weighting factors are applied to ac- tain at least three shippers and to pre-
count for the stratified sampling. See vent identification of an individual
Statement 81–1 for guidelines for railroad.
weighting waybill data and for com- (iv) The Federal agency will refer
puting sampling errors. any requests for waybill data and ac-
[46 FR 26784, May 15, 1981. Redesignated at 65 companying documentation to the STB
FR 37711, June 16, 2000] for processing and will so inform the
requesting party of such referral to the
§ 1244.9 Procedures for the release of Board.
waybill data. (v) The Federal agency must sign an
(a) General. The procedures for the re- agreement annually with the Board
lease of waybill data identify five agreeing to these restrictions.
classes of users of the STB Waybill (3) States. Each requesting State may
Sample, define the waybill information obtain any waybill record pertaining to
or data that each class of users may traffic that was originated, terminated,
obtain, and set forth the applicable re- interchanged in, or that passed
quirements for the data’s release. They through its State subject to the same
also formalize notice and protest pro- requirements imposed on federal agen-
cedures for the possible release of way- cies under paragraphs (b)(2)(i) through
bill data to other users to protect (v) of this section.
against the inappropriate release of (4) Transportation practitioners, con-
confidential data. The Director of the sulting firms, and law firms—specific pro-
Office of Economics, Environmental
ceedings. Transportation practitioners,
Analysis, and Administration shall be
consulting firms and law firms may use
responsible for releasing waybill data
data from the STB Waybill Sample in
in accordance with these procedures.
preparing verified statements to be
(b) Class of user, available data, and
submitted in formal proceedings before
applicable release requirements—(1) Rail-
the STB and/or State Boards (Board)
roads. Each requesting railroad may
subject to the following requirements:
obtain any waybill record from the
STB Waybill Sample covering traffic (i) The STB Waybill Sample is the
that originated, terminated, or was only single source of the data or ob-
bridged by that railroad. The railroad taining the data from other sources is
shall not have access to waybill data burdensome or costly, and the data is
pertaining to traffic in which it did not relevant to issues pendng before the
participate. Also, it must meet all STB Board.
and legal requirements concerning re- (ii) The requestor submits to the STB
lease of shipper information in accord- a written waybill request that complies
ance with 49 U.S.C. 11910(a). with § 1244.8(e).
(2) Federal agencies. Each requesting (iii) All waybill data must be re-
Federal agency (including quasi-gov- turned to the STB, and the firm must
ernmental agencies) may obtain any not keep any copies.
waybill record from the STB Waybill (iv) A transportation practitioner,
Sample subject to the following re- consulting firm, or law firm must sub-
quirements: mit any evidence drawn from the STB
(i) The Federal agency shall make Waybill Sample to the Board only un-
the information contained in the STB less the evidence is aggregated to the
Waybill Sample available only to its level of at least three shippers and will
employees or those contractors work- prevent the identification of an indi-
ing on the particular project or study vidual railroad. Nonaggregated evi-
requiring the waybill data. dence submitted to the Board will be
(ii) The Federal agency will ensure made part of the public record only if
that railroads and shippers are afforded the Board finds that it does not reveal
the same privilege and protection competitively sensitive data. However,
against disclosure of the waybill data evidence found to be sensitive may be
as the Board provides. provided to counsel or other inde-
(iii) The Federal agency will not re- pendent representatives for other par-
lease any data to the public unless the ties subject to the usual and customary
188
protective order issued by the Board or (xxix) Population Count/Strata

appropriate authorized official. Count (expansion factor).
(v) For each Board proceeding, a firm (xxx) Theoretical Expansion Factor.
must sign a confidentiality agreement (xxxi) Number of Interchanges.
with the STB agreeing to the above re- (xxxii) Origin BEA (omitted if STCC
strictions before any data will be re- and BEA pair reveals competitively
leased. This agreement will permit use sensitive shipper data).
of the released data for a period of one (xxxiii) Origin STB Rate Territory.
year from the date the agreement is (xxxiv) States of Interchanges (first
signed by the user. If the data is re- through ninth).
quired for an additional period of time (xxxv) Termination BEA (omitted if
because a proceeding is still pending STCC and BEA pair reveals competi-
before the Board, the firm must sign a tively sensitive shipper data).
new confidentiality agreement cov-
(xxxvi) Termination STB Rate Ter-
ering the data needed for each addi-
ritory.
tional year the proceeding is opened.
(xxxvii) Waybill Reporting Period
(5) Public use. Nonconfidential way-
Length.
bill data may be obtained from the
‘‘Public Use Waybill File’’. Reports (xxxviii) AAR Provided UMBLER
produced from the Public Use Waybill Data.
File may be used, published, or re- (xl) Bad Routing Code.
leased. The Public Use Waybill File (xli) Miscellaneous Factored Ex-
contains the following nonconfidential panded Data (e.g., carloads).
items: (c) Other Users. (1) Users other than
(i) Waybill Date (Month, Day, Year). those described in paragraphs (b)(1)
(ii) Accounting Period (Month, through (b)(5) of this section may file
Year). written requests in accordance with
(iii) Number of Carloads. paragraph (e) of this section for per-
(iv) Car Ownership (Rail or Private). mission to use data from the STB Way-
(v) AAR Car Type. bill Sample.
(vi) AAR Mechanical Designation. (2) All written requests filed by such
(vii) STB Car Type. users are subject to the notice and pro-
(viii) TOFC/COFC Plan. test procedures described in paragraph
(ix) Number of TOFC/COFC Units. (d) of this section.
(x) TOFC/COFC Unit Ownership. (d) Notice and protest procedures for
(xi) TOFC/COFC Unit Type (Trailer waybill requests by other users. Railroads
or Container). and shippers will be notified and af-
(xii) Hazardous/Bulk Material in forded the opportunity to protest way-
Box Car Flag. bill requests filed by users other than
(xiii) Commodity Code—Excluding those described in paragraphs (b)(1)
STCC 49/50 (All 5 digit STCC Codes, ex- through (b)(5) of this section in accord-
cept STCC 19). ance with the following procedures:
(xiv) Billed Weight in Tons. (1) Notice of request for confidential
(xv) Actual Weight in Tons. waybill data. Affected railroads and
(xvi) Linehaul Freight Revenue. shippers will receive notice by FED-
(xvii) Transit Revenue. ERAL REGISTER Publication. If railroad
(xviii) Miscellaneous Revenue. specific or shipper specific data are re-
(xix) Interstate/Intrastate Code. quested, those parties will be given
(xx) Type of Move (Import/Export/ written notice of the request.
Minibridge). (2) Form of notice. The notice shall
(xxi) All Rail/Intermodal Code. identify the parties requesting the
(xxii) Type Move Via Water. data; describe the type of waybill data
(xxiii) Outbound Transit Code. requested; and state the purpose for
(xxiv) Substituted Truck for Rail which the data is requested. The notice
Service. shall include a statement that parties
(xxv) Rebill Code. seeking information concerning the fil-
(xxvi) Estimate of Miles. ing of objections should refer to Ex
(xxvii) Stratum Identification. Parte No. 385 (Sub-No. 2), 49 CFR 1224.8,
(xxviii) Replicate Number. or contact the Surface Transportation
189
§ 1244.9 49 CFR Ch. X (10–1–07 Edition)
Board’s Office of Economics, Environ- Surface Transportation Board, Wash-

mental Analysis, and Administration. ington, DC 20423.
(3) Objections to release. (i) Objections (f) Aggregation of confidential ship-
to release of the confidential waybill per data.
data must be filed by the railroad and/ (1) Any shipper data obtained from
or shipper no later than 14 calendar the Waybill Sample shall not be pub-
days from publication of the notice in licly released unless the data are ag-
the FEDERAL REGISTER. gregated to include at least three ship-
(ii) An original and 3 copies of each pers.
objection shall be filed with the Direc- (2) To aggregate the waybill data to
tor, Office of Economics, Environ- the level of three shippers, the three-
mental Analysis, and Administration, FSAC Rule shall be used. Under this
Surface Transportation Board, Wash- rule, there must be at least three dif-
ington, DC 20423. ferent freight stations as identified by
(iii) The objection shall identify the the Freight Station Accounting Code
parties seeking the confidential way- (FSAC) on one railroad or there must
bill data, reiterate the purpose for be at least two more FSAC’s than there
which the data is sought, and state all are railroads present in the waybill
grounds for objection to full or partial data being aggregated.
disclosure of the requested data. (3) The three-FSAC Rule shall apply
(4) Board determination. (i) The Direc- to every number and calculation pub-
tor of the Office of Economics, Envi- licly released.
ronmental Analysis, and Administra-
(4) The Director of OTA will consider
tion will consider all objections in de-
requests to apply an alternative aggre-
termining whether to release the re-
gation method provided the requestor
quested waybill data. Each railroad or
establishes that a particular project
shipper who filed objections will be
necessitates an alternative approach
sent written notice of the Director’s
decision not less than 14 calendar days and that approach effectively protects
prior to the disclosure date. the identity of individual shippers.
(ii) The Board reserves the right to (g) Complaint procedures. (1) Com-
deny the release of waybill data al- plaints for alleged breaches of con-
though no objections may be filed. fidentiality or misuse of confidential
waybill data must include the fol-
(iii) Appeals must be filed with the
Chairman within 10 days of the date of lowing:
the Director’s decision. Responses to (i) Identification of all known parties
appeals must be filed within 10 days involved in the alleged violation.
thereafter (49 CFR 1011.7(b)(1)). The fil- (ii) The approximate date(s) of the al-
ing of an appeal will automatically leged violations.
stay the effect of the Director’s deci- (iii) A full and detailed description of
sion. the alleged violation.
(e) Content of waybill requests. (1) All (iv) A description of any resulting
requestors under paragraphs (b)(4) and harm to the complainant.
(c) of this section shall include the fol- (2) Prior to filing a complaint, a com-
lowing information: plainant, upon written request, may
(i) A complete and detailed expla- obtain a copy of the incoming waybill
nation of the purpose for which the re- request and the applicable confiden-
quested data are needed. tiality agreement. This request must
(ii) A description of the specific way- identify the party involved, give the
bill data or fields actually required (in- approximate date the data was re-
cluding pertinent geographic areas). leased, briefly describe the alleged vio-
(iii) A detailed justification as to lation, and substantiate the need for
why the specified waybill data are this information for purposes of filing a
needed. complaint.
(2) An original and 2 copies of the (3) An original and three (3) copies of
waybill request shall be filed with the the complaint shall be filed with the
Director, Office of Economics, Environ- Director, Office of Economics, Environ-

mental Analysis, and Administration, mental Analysis, and Administration,
190
Surface Transportation Board, Wash- lined in §§ 1245.3 and 1245.4 are required,
ington, DC 20423. A copy of the com- and all Class I railroads within the
plaint shall also be served on the al- scope of Section 11145 of the Interstate
leged violator(s). Commerce Act shall be governed by
(4) An answer must be filed within 20 such rules in the preparation and sub-
days after service of the complaint. mission of their annual and other peri-
(5) All parties will be notified in writ- odic reports to the Surface Transpor-
ing of the Director’s decision. If the Di- tation Board in accordance with the
rector determines that a violation has forms adopted for such returns
occurred, the offending parties will be (§ 1245.2); and also with respect to any
denied access to the waybill sample for other matters covered by these rules.
a period of time commensurate with
the nature of the violation. [47 FR 53867, Nov. 30, 1982]
(6) Appeals to the Director’s deter-
mination shall be filed in accordance § 1245.2 Reports of railroad employees,
with paragraph (d)(4)(iii) of this sec- service and compensation.
tion. Beginning with the reporting period
(h) Munitions shipments. All waybill commencing January 1, 1983, and quar-
requests for munition data at the 3- terly thereafter until further ordered,
digit Standard Transportation Com- each Class I railroad is required to file
modity Code (STCC) level or greater a Quarterly Report of Railroad Em-
will be forwarded by the STB to the ployees, Service, and Compensation,
Department of Defense’s Military Traf- (Form QRSC). In addition, such car-
fic Management Command (MTMC). riers shall also file an Annual Report of
The STB will not release this type of Railroad Employees, Service, and Com-
information without MTMC’s consent. pensation, (Form ARSC) for each cal-
[52 FR 12416, Apr. 16, 1987. Redesignated at 65 endar year. Both reports shall be filed
FR 37711, June 16, 2000, as amended at 67 FR with the Bureau of Accounts, Surface
57534, Sept. 11, 2002] Transportation Board, Washington, DC
20423. The quarterly report shall be
PART 1245—CLASSIFICATION OF filed within thirty days after the end of
RAILROAD EMPLOYEES; REPORTS each calendar quarter. The annual re-
OF SERVICE AND COMPENSA- port shall be filed within forty five
TION days after the end of the reporting
year.
Sec. [47 FR 53867, Nov. 30, 1982]
1245.1 Rules governing classification of em-
ployees, service, and compensation. § 1245.3 Employees; definition, service
1245.2 Reports of railroad employees, serv- hours, and compensation.
ice and compensation.
1245.3 Employees; definition, service hours, (a) Definition of ‘‘employees’’. The
and compensation. word employees, as used in this part, is
1245.4 Forms required to be used. intended to include every person in the
1245.5 Classification of job titles.
1245.6 Cross reference to standard occupa-
service of the reporting carrier subject
tional classification manual. to its continuing authority to super-
vise and direct the manner of rendition
AUTHORITY: 49 U.S.C. 721, 11145.
of his service. Persons engaged to
SOURCE: 32 FR 20462, Dec. 20, 1967, unless render only specifically defined service
otherwise noted. and not subject to the continuing au-
NOTE: The report forms prescribed by part thority of the carrier to supervise and
fice of the Secretary, Surface Transportation
control their acts, such as custom-
Board, Washington, DC 20423. house brokers, lawyers retained only
for specific cases and not under general
§ 1245.1 Rules governing classification or continuing retainer, etc., are not
of employees, service, and com- employees in the meaning of the term
pensation. used in this part.
The rules governing the classifica- (b) Counting employees. Since the
tion of railroad employees and reports number of employees fluctuates, car-

of their service and compensation out- riers are required to classify and count
191
§ 1245.4 49 CFR Ch. X (10–1–07 Edition)
all of their employees at twelve dif- or other time basis. Service hours for
ferent times each year. officers and employees who do not re-
(c) Joint employees. Each person joint- ceive payment for overtime should be
ly employed shall, if carried on the reported as the number of hours in
payrolls of the several joint employers, each month at 8 hours per day con-
be counted by each employer and rep- templated for the position.
resented in its return of number of em- (e) Compensation. The compensation
ployees by a fraction based on the of employees as defined in the rules in
number of employers reporting him; if this part is to be stated in such manner
a person, for example, is reportable by and detail as the forms adopted for pe-
three employers, each should include riodical returns require.
him in its number of employees as one-
third of an employee. When the entire § 1245.4 Forms required to be used.
compensation of a joint employee is (a) The report of information to the
shown on the payroll of a single joint Surface Transportation Board on rail-
employer and is paid to the employee road employees, service and compensa-
by that employer such employee tion includes two forms. Form A re-
should, for the purpose of returns, be lates to employees other than train
treated as if employed solely by such and engine service employees. Form B
employer. relates to train and engine service em-
(d) Service hours. (1) The number of ployees.
hours on duty, or held for duty, and the (b) With general reference to the
number of hours paid for are to be statement of the compensation of em-
ascertained and recorded for every ployees in Forms A and B, it should be
class of employee. For enginemen and understood that the total compensa-
trainmen, the actual number of miles tion received by the employees in each
run and miles paid for but not run are Reporting Division, as well as the
to be recorded, as well as the number of amount of work they perform, should
hours on duty and the number of hours be shown properly distributed under
paid for. (The service time of all class- the prescribed column heads as indi-
es of employees shall be recorded in cated by the forms. It should be noted
hours instead of days or hours as here- that if the work of an employee varies
tofore.) during a report period, his time and
(2) Whenever an employee works at compensation should be apportioned
more than one occupation, or in more accordingly. Amounts reported should
than one class of service, both the be gross compensation paid.
number of hours worked and the com-
pensation paid, should be separated and Illustrations. (a) In the course of a month,
an employee works as a Machinist, and as
reported under the proper Reporting
such earns $200 and he works also as a Gang
Divisions. Foreman and earns $130. The pay received by
(3) If an employee is paid a day’s him in the occupation of Machinist with cor-
wage for a smaller number of hours responding time should be included in re-
than constitutes a day’s work, the turns for Division 61, ‘‘Machinists’’, and his
number of hours paid for as well as the other pay and time as indicated should be in-
actual number of hours the employee is cluded in returns for Division 53, ‘‘Gang
on duty should be ascertained and re- Foremen and Gang Leaders’’. (b) When an
employee works at two or more of the occu-
corded. Time allowed for meals, part
pations of engineer, fireman, conductor, and
holidays, holidays, absences on leave, brakeman, his time and compensation should
vacations, etc., should be excluded be assigned in accordance with the facts. For
from time actually worked, but if such example, in a certain month an employee
time is paid for it should be appro- earns as a Through Freight Engineer $110, as
priately reported as ‘‘Time paid for but a Local or Way Freight Engineer $140, as a
not worked’’ on Form A or as a ‘‘con- Yard Engineer $100, and as a Local or Way
structive allowance’’ on Form B. These Freight Fireman $75. The time and the com-
pensation of this employee should be cor-
requirements apply to enginemen and
respondingly distributed among Reporting
trainmen paid on the basis of trips or Divisions 122, 123, 124, and 127 as they are re-
of miles run, and to employees paid at spectively applicable, without regard to the
piece rates, as well as to employees predominance of the time worked or the

paid on hourly, daily, weekly, monthly, amount earned by him in one occupation.
192
(c) As elsewhere indicated, the state- schedule in the annual reports of rail-
ment of the number of employees in roads of classes I and II to the Board.
the service of a company with respect Railroads of class III and lessor compa-
to Reporting Divisions depends upon nies shall report only the information
the allocation of the individual em- required in the annual report forms
ployees as of the day of count. prescribed for such companies.
(d) The Reporting Divisions shown in
Forms A and B following will also be [32 FR 20462, Dec. 20, 1967, as amended at 47
used in connection with the employees’ FR 53867, Nov. 30, 1982]
193
VerDate Aug<31>2005
19:24 Nov 02, 2007
§ 1245.5
§ 1245.5 Classification of job titles.
Number Classification Description Typical titles Relation to present classification
Jkt 211217
100 EXECUTIVES, OFFICIALS, AND

STAFF ASSISTANTS
101 Executives and General Officers Chief executives, corporate de- President, Vice President, Assistant Vice President, Controller, More precisely defined than present
partment heads and major Treasurer, Director (head of subdepartment), General Super- No. 1, limited to executive manage-
subdepartment heads. intendent (subdepartment head), Chief Engineer, General Man- ment positions; adds new titles.
ager (department or subdepartment head).
PO 00000
102 Corporate Staff Managers .......... Corporate executives and man- Director (other than subdepartment head), Assistant Director, As- New classification, providng a specific
agers assisting department sistant General Manager (not regional), Manager, Assistant assignment for staff managers; adds
and subdepartment heads. Manager, Assistant Chief Engineer, Purchasing Agent, Super- new title.
intendent (not division), Assistant to (corporate executive or
general officer), Executive Assistant (to corporate executive)
Frm 00204
Budget Officer.
103 Regional and Division Officers, Regional managers and assist- Assistant General Manager, Assistant Regional Manager, Gen- Similar to present No. 2 but limited to
Assistants and Staff Assist- ants below the executive man- eral Superintendent, Assistant to General Manager, Division regional and divisional management;
ants. agement level, and chief divi- Superintendent, Master Mechanic, Division Sales Manager, adds new title.
sion officers. District Sales Manager, Assistant Master Mechanic, District En-
Fmt 8010
gineer, Assistant Superintendent, Captain of Police, Division

Engineer, Manager of Materials, Safety Inspector, Real Estate
Agent, Real Estate Supervisor, Tax Agent, Buyer, Assistant
194
Buyer, Sales Agent, Assistant Sales Agent.

104 Transportation Officers/Man- Managers directly supervising Train Master, Assistant Train Master, General Yardmaster, Gen- New classification providing specific as-
Sfmt 8010
agers. train and yard operations. eral Road Foreman, Road Foreman, Assistant Road Foreman, signment for Operations Managers.
Chief Power Supervisor (motive).
200 PROFESSIONAL AND
ADMINISTRATIVE
201 Professionals (other than those Technical occupations requiring General Counsel, Assistant General Counsel, General Attorney, Corresponds to present STB No. 3, but

Y:\SGML\211217.XXX
reported in 101 and 102). a high degree of training and/ Assistant General Attorney, Attorney, Commerce Counsel, limited to professionals; adds new ti-
or supervising subprofes- Chief Medical Officer, Medical Officer, Surgeon, Company Sur- tles.
sionals and technicians. geon, Engineer, Architect, Chief Chemist, Nurse, Tax Account-
ant, Internal Auditor to General Accountant, Corporate Account-
ant, Supervisor Programing, Senior Computer System Spe-
cialist, Senior System Analyst.
202 Subprofessionals ........................ Technical occupations requiring Draftsman, Chemist, Assistant Chemist, X-ray Technician, Super- Corresponds to present STB No. 3 but
a high degree of knowledge visor Estimating, Junior Engineer, Engineering Trainee, Photog- limited to subprofessionals; adds
and/or skill. rapher, Computer Programmer, Computer Analyst, Market Ana- new titles.
lyst, Pricing Analyst, Employment Supervisor, Research Analyst.
211217
203 Auditors, Traveling Auditors or Title is descriptive ....................... Traveling Auditor, Accounting Specialist Auditors, Operations Corresponds to present STB No. 13.
Accountants. Traveling Auditors, Station Auditors.
204 General and Administrative Su- Supervisors responsible for ad- General Supervisor, Supervisor, Chief Clerk, Office Supervisor, Consolidation of present STB Nos. 4
pervisors. ministrative activity of a de- Supervisor Administration, Office Manager, Supervising Clerk, and 5; adds new titles.
partment, subdepartment, of- Head Clerk, Assistant Chief Clerk, Supervising Cashier, Divi-
fice or region. sion Supervisor, Regional Supervisor, Budget Supervisor, Ad-
ministrative Supervisor, Administrative Assistant.
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19:24 Nov 02, 2007

205 Sales and Traffic Representa- Non-supervisory occupations Freight Traffic Agent, Coal Traffic Agent, Sales Representative, New classification, containing a portion
tives and Agents. with predominant responsibil- Freight Sales Representative, Freight Traffic Representative, of present STB No. 19; adds new ti-
ities for sales and customer Passenger Sales Representative. tles.
relations.
206 Freight and Other Claim Agents Occupations which have pre- Claim Agent, Claim Investigator, Freight Claim Agent, Freight Consolidates present STB Nos. 20 and
Jkt 211217
and Investigators. dominant duties investigating Claim Investigator. 21; adds new titles.
and handling freight and per-
sonal injury claims.
207 Supervising and Chief Claim Title is descriptive ....................... Chief Claim Agent, Chief Freight Claim Agent, Assistant Chief Corresponds with present STB No. 22.
Agents. Claim Agent, Chief District Claim Agent, District Freight Claim
PO 00000
Agent, Chief Claim Investigator.

208 Lieutenants and Sergeants of Title is descriptive ....................... Police Lieutenant, Police Sergeant ................................................. Corresponds to present STB No. 17.
Police.
209 Police Officers, Watchmen and Title is descriptive ....................... Police Officer, Patrolman, Watchman, Guard ................................. Corresponds with present STB No. 18.
Guards (Except Crossing and
Frm 00205
Bridge).
210 Inspectors (Except Maintenance Miscellaneous occupations Rules Examiner, Supervisor Rules, Safety Supervisor, Fire Mar- Classification for a portion of similar oc-
of Way and Equipment), Other which have predominant du- shall, Fire Chief, Instructor, Supervisor Procedures, Supervisor cupations included in present STB
Investigators, Examiners, In- ties of investigating, inspect- Yard Procedures. No. 19; adds new titles.
structors, and Other Agents ing, reviewing, and instructing
Fmt 8010
(Except Station Agents). and which require a high de-

gree of technical knowledge.
212 Clerical Technicians and Clerical Clerical occupations with duties Lead Clerk, Staff Assistant (clerical), Statistician, Cashier, Teller, Corresponds to present STB No. 6;
195
Specialists. to perform independently re- Assistant Statistician, Rate Clerk, Pricing Clerk, Computer adds new titles.
sponsible work requiring spe- Technician.
Sfmt 8010
cial financial cost, accounting,

or other technical knowledge.
213 Office Machine and Data Equip- Occupations with predominant Machine Operator, Clerk, Computer Operator, Keypunch Oper- Corresponds to present STB No. 8;
ment Operators. duties of operating office ma- ator Office Machine Technician. adds new titles.
chines and computer equip-
Y:\SGML\211217.XXX
ment.
214 Secretaries, Stenographers, and Secretaries, Stenographers, and Secretary, Stenographer, Typists, Clerk Typist, Steno-clerk .......... Consolidates present STB Nos. 9 and
Typists. Typists. 10.
215 General and Other Clerks (ex- Clerical occupations not other- File Clerk, General Clerk, Bookkeeper, Ticket Clerk, Records Corresponds to present STB NO. 7;
cluding yard clerk and crew wise classified. Clerk, Trace Clerk, Assignment Clerk, Personnel Clerk, M of W adds new titles.
dispatcher). Clerks, M of E Clerks.
216 Telephone and Switchboard Op- Title is descriptive ....................... Switchboard Operator, Chief Operator ............................................ Present STB No. 14.
erators.
217 Building and Office Attendants ... Miscellaneous occupations asso- Elevator Operator, Elevator Starter, Janitor, Cleaner, Porter ......... Consolidates present STB Nos. 16 and
ciated with office building func- 26.
211217
tions.
218 Messengers and Office Persons Title is descriptive ....................... Messenger, Office Person ............................................................... Present STB No. 15.
219 Motor Vehicle Operators ............ Occupations associated with Truck Driver, Bus Driver, Driver, Chauffeur .................................... Consolidates present STB Nos. 24 and
automobile and truck driving. 25.
§ 1245.5
300 MAINTENANCE OF WAY AND
STRUCTURES
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§ 1245.5
301 Supervisors, Maintenance of Occupations with supervisor re- Roadmaster, Division Roadmaster, Supervisor Track, Supervisor Corresponds with present STB Nos. 27
Way, Structures, Communica- sponsibility for maintenance of Bridges and Buildings, Supervisor Communications and Sig- and 44.
tion and Signals. way and structures (other than nals, Assistant Supervisor, General Foreman (MW&S), Assist-
Jkt 211217
regional and divisional offi- ant General Foreman (MW&S), Master Carpenter, Chief Drafts-
cers). man.
302 Maintenance of Way, Structures, Title is descriptive ....................... Chief Bridge and Building Inspector, Chief Scale Inspector, Corresponds with present STB No. 28
Communication and Signals, Bridge and Building Inspector, Scale Inspector, Roadway plus part of old No. 44.
and Scale Inspectors. Equipment Inspector, Track and Roadway Inspector, Instru-
PO 00000
ment Man, Rodman, Chainman, Inspector Communications and

Signals, Signal Inspector.
303 Bridge and Building Gang Fore- Title is descriptive ....................... Gang Foreman, Lead Workman ...................................................... Consolidates present STB No. 29 with
man. bridge and building portion of present
STB No. 39.
Frm 00206
304 Bridge and Building Carpenters Title is descriptive ....................... Carpenter ......................................................................................... Corresponds with present STB No. 30.
305 Bridge and Building Ironworkers Title is descriptive ....................... Ironworker ........................................................................................ Corresponds with present STB No. 31.
306 Bridge and Building Painters ...... Title is descriptive ....................... Painter, Sign Painter ....................................................................... Corresponds with present STB No. 32.
307 Masons, Bricklayers, Plasterers, Title is descriptive ....................... Mason, Bricklayer, Plasterer, Plumber, Operator, Grinder, Welder Corresponds with present STB Nos. 23
and Plumbers. (M of W). and 33.
308 Bridge and Building Helpers and Title is descriptive ....................... Carpenter Helper, Ironworker Helper, Mason Helper, Plumber Corresponds with present STB No. 34;
Fmt 8010
Apprentices. Helper, Painter Helper, Apprentice Carpenter, Apprentice Iron- adds new titles.
worker, Apprentice Mason, Plumber Apprentice, Apprentice
Painter, Welder Helper.
196
309 Bridge and Building Gang and Title is descriptive ....................... Bridge and Building Laborer ............................................................ Corresponds with present STB No. 43.
Sfmt 8010
Bridge and Building Depart-

ment Laborers.
310 Track Gang Foremen (Extra Title is descriptive ....................... Gang Foreman, Assistant Foreman ................................................ Corresponds with present STB No. 38.
Gang work train laborers).
311 Gang or Section Foreman .......... Title is descriptive ....................... Gang Foreman, Assistant Foreman, Section Foreman .................. Corresponds with present STB No. 40.

312 Extra Gang Laborers .................. Title is descriptive ....................... Trackman, Fence Laborer ............................................................... Corresponds with present STB No. 41.
Y:\SGML\211217.XXX
313 Section Laborers ........................ Title is descriptive ....................... Trackman, Track and Roadway Section Laborer ........................... Corresponds with present STB No. 42.
314 Machine Operators ..................... Title is descriptive ....................... Craneman, Portable Equipment Engineer, Portable Equipment Consolidates present STB No. 35, 36,
Operator, Machine Operator, Helper. and 37.
315 Gang Foremen, Communications Title is descriptive ....................... Gang Foreman, Assistant Gang Foreman, Lead Signal Maintainer Consolidates present STB No. 45 with
and Signals. communications and signals occupa-
tions included in present STB No.
39.
316 Signalmen and Signal Maintain- Title is descriptive ....................... Signalman, Signal Maintainer .......................................................... Corresponds with present STB No. 46.
ers.
317 Linemen and Groundmen and Communications equipment in- Electrical Worker (Lineman), Electrical Worker (Groundman) Corresponds with present STB No. 47.
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Communications Craftsman. stallers, Maintainers, and re- Communications maintainer.

pairmen.
318 Assistant Signalmen and Assist- Title is descriptive ....................... Assistant Signalman, Assistant Signal Maintainer .......................... Corresponds with present STB No. 48.
ant Signal Maintainers.
319 Signal Helpers and Signal Main- Title is descriptive ....................... Signalman Helper, Signal Maintainer Helper .................................. Corresponds with present STB No. 49.
tainer Helpers.
320 Camp Car Cooks ........................ Occupations engage in food Camp Car Cook, Camp Car Helper ................................................ Corresponds with part of present STB
service in camp cars. No. 97.
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400 MAINTENANCE OF EQUIPMENT AND
STORES
401 Supervisors and General Fore- Occupations with supervisory re- General Foreman Shop, General Foreman Enginehouse, General Corresponds with present STB No. 50;
men, Maintenance of Equip- sponsibility for maintenance of Foreman Diesel Terminal, Assistant General Foreman (M of E). adds new titles.
ment. equipment (other than regional
Jkt 211217
and division officers).

402 Supervisors and General Fore- Occupations with supervisory re- Supervisor Materials, Assistant Supervisor Materials, General Corresponds with present STB No. 51;
men, Materials and Stores. sponsibility for stores and ma- Foreman Stores, General Foreman Reclamation Plant, Assist- adds new titles.
terials. ant General Foreman.
403 Equipment, Shop, Electrical In- Title is descriptive ....................... Chief Electrical Inspector, Chief Shop and Equipment Inspector, Corresponds with part of present STB
PO 00000
spectors. Electrical Inspector, Equipment Inspector, Inspector Diesel Lo- No. 52.
comotive, Fuel Inspector.
404 Materials and Supplies Inspec- Title is descriptive ....................... Materials and Supplies Inspector, Chief Materials and Supplies Corresponds with part of present STB
tors. Inspector, Timber Inspector, Tie Inspector. No. 52.
405 Storekeeper ................................ Title is descriptive ....................... Storekeeper, Assistant Storekeeper, Materials Clerk, Store Clerk Corresponds to materials and stores
Frm 00207
occupation in present STB No. 11.

406 Gang Foremen, Maintenance of Title is descriptive ....................... Gang Foreman ................................................................................ Consolidates present STB Nos. 53 and
Equipment. 68.
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 freight cars .. Car Repairmen, Car Inspector, Carman, Painter ............................ Corresponds with present STB No. 57.
Fmt 8010
410 Carmen (Other) .......................... Title is descriptive ....................... Carmen ............................................................................................ Corresponds with present STB No. 56.
411 Electrical Workers (A) ................ Electricians ................................. Electrician, Electrical Worker ........................................................... Corresponds with present STB No. 58.
412 Electrical Workers (B) ................ Electrical workers—occupations Crane Operator, Load Dispatcher, Power Station Operator, As- Corresponds with present STB No. 59.
197
specialized in operating heavy sistant Power Director.

Sfmt 8010
equipment.
413 Electrical Workers (C) ................ Electrical Workers—occupation Coal and Ore Elevator Operator (electrical), Grain Elevator Oper- Corresponds with present STB No. 60.
specialized in heavy equip- ator (electrical).
ment operating at coal, grain,
and ore docks.
414 Machinists ................................... Title is descriptive ....................... Machinist .......................................................................................... Corresponds with present STB No. 61.
Y:\SGML\211217.XXX
415 Sheet Metal Workers .................. Title is descriptive ....................... Sheet Metal Worker ......................................................................... Corresponds with present STB No. 63.
416 Skilled Trades, Helpers, Mainte- Title is descriptive ....................... Helper .............................................................................................. Corresponds with present STB No. 64.
nance of Equipment and
Stores.
417 Apprentices, Maintenance of Title is descriptive ....................... Apprentice, Helper Apprentice ........................................................ Consolidates present STB Nos. 65 and
Equipment and Stores. 66.
418 Coach Cleaners .......................... Title is descriptive ....................... Coach Cleaner ................................................................................. Corresponds with present STB No. 67.
419 Laborers: Shops, Enginehouses, Title is descriptive ....................... Laborer ............................................................................................ Consolidates present STB Nos. 70 and
and Power Plants. 71.
420 Gang Foremen, Materials and Title is descriptive ....................... Gang Foremen ................................................................................ Corresponds with present STB No. 69.
211217
Stores.
421 Equipment Operators and Gen- Title is descriptive ....................... Laborer, Materials Handler, Equipment Operators, Machine Oper- Corresponds with present STB No. 72,
eral Laborers, Materials and ators. plus part of STB No. 24.
§ 1245.5
Stores.
422 Stationary Engineers .................. Title is descriptive ....................... Chief Engineer (Steam Plant) Engineer, Stationary Engineer ........ Corresponds with present STB No. 73.
423 Stationary Firemen ..................... Title is descriptive ....................... Stationary Fireman, Power Equipment Operator Helper, Oiler ...... Corresponds with present STB No. 74.
500 TRANSPORTATION, OTHER THAN
TRAIN AND ENGINE
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19:24 Nov 02, 2007
§ 1245.5
501 Transportation Supervisor and Occupational directly supervising Chief Train Dispatcher, Supervisor Train Operations, Transpor- Corresponds with present STB No. 75;
Chief Train Dispatcher. train operation. tation Supervisor, Supervisor Train Operations, Supervisor Lo- adds new titles.
comotive and Car Distribution, Assistant Chief Train Dispatcher.
Jkt 211217
502 Train Dispatchers ....................... Title is descriptive ....................... Train Dispatcher .............................................................................. Corresponds with present STB No. 76.
503 Station, Freight and Passenger Occupations with responsibility Supervising Station Agent, Assistant Supervising Station Agent, Consolidates present STB Nos. 12, 78,
Agents. for station operations. Station Agent, Freight Agent, Passenger Agent, Ticket Agent, 79, and 80.
Traveling Agent, Agent Operators.
504 Chief Operators and Wire Chiefs Title is descriptive ....................... Supervising Operator, Chief Operator, Assistant Supervising Op- Corresponds with present STB No. 81.
PO 00000
erator, Wire Chief.

505 Clerk Operators, Towerman, Title is descriptive ....................... Clerk Operator, Block Operator, Operator, Towerman, Train Di- Consolidates present STB Nos. 77, 82
Train Directors. rectors. and 83.
506 Station Masters and Assistants, Title is descriptive ....................... Stationmaster, Assistant Stationmaster, Supervising Baggage Consolidates present STB Nos. 84, 85,
Supervising Baggage Agents, Agent, Baggage Agent, Assistant Baggage Agent, Parcel Room and 86.
Frm 00208
Baggage Agents and Assist- Agent.

ants.
507 Baggage, Parcel Room and Sta- Title is descriptive ....................... Baggage Attendant, Parcel Room Attendant, Station Attendant, Corresponds with present STB No. 87.
tion Attendants. Gateman, Announcer, Station Usher, Red Cap, Information Bu-
reau Attendant.
508 General and Assistant General Title is descriptive ....................... General Foreman, Assistant General Foreman .............................. Consolidates present STB Nos. 88 and
Fmt 8010
Foremen, Stations, Ware- 89.

houses, Grain Elevators, and
Docks.
198
509 Gang Foremen, Stations, Ware- Title is descriptive ....................... Gang Foreman ................................................................................ Corresponds with present STB No. 90.
houses, Grain Elevators and
Sfmt 8010
Docks.
510 Grain Elevator, and Dock Labor- Title is descriptive ....................... Laborer ............................................................................................ Consolidates present STB Nos. 93 and
ers. 94.
511 Station, and Warehouse Labor- Title is descriptive ....................... Loader, Sealer ................................................................................. Corresponds with present STB No. 91.
ers.

Y:\SGML\211217.XXX
512 Truckers (Station, Warehouse Title is descriptive ....................... Trucker ............................................................................................. Corresponds with present STB No. 92.
and Platforms).
513 Food and Lodging Manager, Su- Occupations with responsibility Manager Lodging House, Restaurant Manager, Dining Car Super- Corresponds with present STB No. 95.
pervisors. for supervision of food service visor, Dining Car Steward.
or lodging.
514 Transportation and Dining-Serv- Title is descriptive ....................... Instructor Chef, Restaurant Inspector, Freight Service Inspector, Corresponds with present STB No. 99.
ice Inspectors. Baggage Inspector.
515 Waiters and Kitchen Helpers Title is descriptive ....................... Waiter-in-charge, Waiter .................................................................. Corresponds with present STB No. 97.
(Restaurant and Dining Car).
516 Chefs and Cooks (Restaurant Title is descriptive ....................... Chef, Cook ...................................................................................... Corresponds with present STB No. 96.
and Dining Car).
211217
517 Marine Officers and Workers All occupations with predominant Captain, Engineer, Mate, Deckhand, Oiler, Purser, Boat Master, Corresponds with present STB No. 98.
and Shore Workers. duties which are the operation Fireman, Wharf Master, Able Seaman, Baggageman, Boat Dis-
of marine service. patcher.
518 Train Attendants ......................... Passenger train occupations Porter, Buffet Lounge Attendant, Stewardess ................................. Consolidates present STB Nos. 100
other than train service and and 101.
dining car operation.
519 Bridge Operators and Helpers ... Title is descriptive ....................... Bridge Operator ............................................................................... Corresponds with present STB No.
102.
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19:24 Nov 02, 2007

520 Bridge and Crossing Flagmen Title is descriptive ....................... Bridge Flagman, Crossing Gateman ............................................... Corresponds with present STB No.
and Gatemen. 103.
521 Yard Clerks ................................. Clerical occupations situated in Yard Clerk, Yard Clerk Caller, Yard Demurrage Clerk, Yard Dis- New classification.
yards and yard offices. patcher Clerk, Piggyback Clerk.
522 Crew Dispatchers ....................... Title is descriptive ....................... Crew Dispatcher, Crew Caller ......................................................... New classification.
Jkt 211217
523 Yardmasters and Assistant Title is descriptive ....................... Yardmaster, Assistant Yardmaster .................................................. Consolidates present STB No. 105 and
Yardmasters. 106.
600 TRANSPORTATION, TRAIN AND
ENGINE
601 Switchtenders ............................. Title is descriptive ....................... Switchtender .................................................................................... Corresponds to present STB No. 107.
PO 00000
602 Car Retarder Operators and Ground occupations not part of Car Retarder Operator, Skatesman, Herder, Yard Pilot ................. New classification—part of present
Ground Service Employees. yard crew. STB No. 119; adds new titles.
603 Outside Hostlers ......................... Title is descriptive ....................... Outside Hostler ................................................................................ Corresponds to present STB No. 108.
604 Outside Hostler Helpers ............. Title is descriptive ....................... Outside Hostler Helper .................................................................... Corresponds to present STB No. 110.
605 Inside Hostler ............................. Title is descriptive ....................... Inside Hostler ................................................................................... Corresponds to present STB No. 109.
606 Road Passenger Conductors ..... Title is descriptive ....................... Passenger Conductor ...................................................................... Corresponds to present STB No. 111.
Frm 00209
607 Assistant Road Passenger Con- Title is descriptive ....................... Assistant Passenger Conductor, Ticket Collector ........................... Corresponds to present STB No. 112.
ductors and Ticket Collectors.
608 Road Freight Conductors Title is descriptive ....................... Freight Conductor, Work Train Conductor, (paid through rate) ...... Corresponds to present STB No. 113.
(Through Freight).
609 Road Freight Conductors (Local Title is descriptive ....................... Freight Conductor, Work Train Conductor, (paid local rate) ........... Corresponds to present STB No. 114.
Fmt 8010
and Way Freight).

610 Road Passenger Title is descriptive ....................... Baggageperson ............................................................................... Corresponds to present STB No. 115.
Baggageperson.
199
611 Road Passenger Brakemen and Title is descriptive ....................... Passenger Brakeman, Passenger Flagman ................................... Corresponds to present STB No. 116.
Flagmen.
Sfmt 8010
612 Road Freight Brakemen and Title is descriptive ....................... Freight Brakeman, Freight Flagman, Work Train Brakeman (paid Corresponds to present STB No. 117.
Flagmen (Through Freight). through rate).
613 Road Freight Brakemen and Title is descriptive ....................... Freight Brakeman, Freight Flagman, Work Train Brakeman, (paid Corresponds to present STB No. 118.
Flagmen (Local and Way local rate).
Freight).
Y:\SGML\211217.XXX
614 Yard Conductors and Yard Fore- Title is descriptive ....................... Yard Conductor, Yard Foreman ...................................................... Corresponds to present STB No. 119
men. Less Car Retarder Operator and
other ground occupations not part of
Yard Crew.
615 Yard Brakemen and Yard Help- Title is descriptive ....................... Yard Brakeman, Yard Helper .......................................................... Corresponds to present STB No. 120;
ers. adds new titles.
616 Road Passenger Engineers and Title is descriptive ....................... Passenger Engineer, Motorman, Operator ..................................... Corresponds to present STB No. 121.
Motormen.
617 Road Freight Engineers Title is descriptive ....................... Freight Engineer, Work Train Engineer, (paid through rate) .......... Corresponds to present STB No. 122.
(Through Freight).
618 Road Freight Engineers (Local Title is descriptive ....................... Freight Engineer, Work Train Engineer, (paid local rate) ............... Corresponds to present STB No. 123.
211217
and Way Freight).

619 Yard Engineers ........................... Title is descriptive ....................... Yard Engineer ................................................................................. Corresponds to present STB No. 124.
620 Road Passenger Firemen and Title is descriptive ....................... Passenger Fireman ......................................................................... Corresponds to present STB No. 125.
§ 1245.5
Helpers.
621 Road freight Firemen and Help- Title is descriptive ....................... Freight Fireman ............................................................................... Corresponds to present STB No. 126.
ers (Through Freight).
622 Road Freight Firemen and Help- Title is descriptive ....................... Freight Fireman ............................................................................... Corresponds to present STB No. 127.
ers (Local and Way Freight).
VerDate Aug<31>2005
19:24 Nov 02, 2007
§ 1245.5
623 Yard Firemen and Helpers ......... Title is descriptive ....................... Yard Fireman ................................................................................... Corresponds to present STB No. 128.
Jkt 211217
[47 FR 53868, Nov. 30, 1982, as amended at 50 FR 947, Jan. 8, 1985]

PO 00000
Frm 00210
Fmt 8010
200
Sfmt 8017

Y:\SGML\211217.XXX
211217
§ 1245.6 Cross reference to standard Job title SOC

occupational classification manual.
Chief Medical Officer ....................... 261.
Job title SOC Medical Officer ................................ 261.
Surgeon ........................................... 261.
100 Executives, Officials and Staff As- Company Surgeon .......................... 261.
sistants Engineer .......................................... 1639.
101 Executive and General Officers: Architect .......................................... 161.
President ......................................... 121. Chief Chemist .................................. 1845.
Vice President ................................. 121. Nurse ............................................... 29 and 366.
Assist. Vice President ..................... 121. Tax Accountant ............................... 1412.
Controller ......................................... 122. Internal Auditor to Gen. Accountant 1412.
Treasurer ......................................... 122. Corporate Accountant ..................... 1412.
Director (Head of Sub-Department) 139. Supervisor Programming ................ 137.
General Superintendent .................. 139. Senior Computer System ................ 1712.
Subdepartment Head ...................... 139. Specialist Senior System Analyst ... 1712.
Chief Engineer ................................ 1342 and 1639. 202 Subprofessionals:
General Manager (Dept. or Sub- 137. Draftsman ........................................ 372.
department Head). Chemist ........................................... 1845.
102 Corporate Staff Managers: Assist. Chemist ............................... 1845.
Director (Other Than Sub-depart- 139. X-ray Technician ............................. 365.
ment Head). Supv. Estimating ............................. 149.
Assist. Director ................................ 139. Junior Engineer ............................... 1639.
Assist. General Manager (Not Re- 137. Engineer Trainee ............................. 1639.
gional). Photographer ................................... 326.
Manager .......................................... 137. Computer Programmer ................... 397.
Assist. Manager .............................. 137. Computer Analyst ............................ 1712.
Assist. Chief Engineer ..................... 1639. Market Analyst ................................ 1912.
Purchasing Agent ............................ 1449. Pricing Analyst ................................ 4716.
Superintendent (Not Division) ......... 1342. Employment Supv. .......................... 123.
Assist. to (Corporate Executive or 149. Research Analyst ............................ 1721.
Gen. Officer). 203 Auditors, Traveling Auditors or Ac-
Executive Assist. (To Corporate Ex- 149. countants:
ecutive). Traveling Auditor ............................. 1412.
Budget Officer ................................. 1419. Accounting Specialist Auditor ......... 1412.
103 Regional and Division Officers, Operations Traveling Auditor .......... 1412
Assistants and Staff Assistants: Station Auditors ............................... 1412.
Assist. General Manager ................ 137. 204 General and Administrative Su-
Assist. Regional Manager ............... 1342. pervisors:
General Superintendent .................. 1342. General Supv. ................................. 4511 and 137.
Assist. to General Manager ............ 137. Supv. ............................................... 4511 and 137.
Division Superintendent .................. 1342. Chief Clerk ...................................... 4511 and 137.
Master Mechanic ............................. 6117. Office Supv. ..................................... 4511 and 137.
Division Sales Manager .................. 125. Supv. Admin. ................................... 149.
District Sales Manager .................... 125. Office Manager ................................ 137.
Assist. Master Mechanic ................. 6117. Supv. Clerk ...................................... 4511 and 137.
District Engineer .............................. 1342 and 1639. Head Clerk ...................................... 4511 and 137.
Assist. Superintendent .................... 1342. Assist. Chief Clerk ........................... 4511 and 137.
Captain of Police ............................. 5112. Supv. Cashier .................................. 4529.
Division Engineer ............................ 1638 and 1342. Division Supv. ................................. 4511 and 137.
Manager of Materials ...................... 4525. Regional Supv. ................................ 4511 and 137.
Safety Inspector .............................. 1473. Budget Supv. ................................... 1419.
Real Estate Agent ........................... 1353. Admin. Supv. ................................... 149.
Real Estate Supv ............................ 1353. Admin. Assist. ................................. 149.
Tax Agent ........................................ 1412. 205 Sales and Traffic Representatives
Buyer ............................................... 1449. and Agents:
Assist. Buyer ................................... 1449. Freight Traffic Agent ....................... 4152.
Sales Agent ..................................... 4235. Coal Traffic Agent ........................... 4152.
Assist. Sales Agent ......................... 4235. Sales Representative ...................... 4152.
104 Transportation Officers/Managers: Freight Sales Representative .......... 4152.
Train Master .................................... 1342. Freight Traffic Representative ......... 4152.
Assist. Train Master ........................ 1342. Passenger Sales Representative .... 4152.
General Yard Master ....................... 8113. 206 Freight and other Claim Agents
General Road Foreman .................. 1342. and Investigators:
Road Foreman ................................ 1342. Claim Agent ..................................... 4712.
Assist. Road Foreman .................... 1342. Claim Investigator ........................... 4783.
Chief, Power Supervisor (Motive) ... 1342. Freight Claim Agent ........................ 4712.
200 Professional and Administrative Freight Claim Investigator ............... 4783.
201 Professionals (Other Than Those 207 Supervising and Chief Claim
Reported in 101 and 102): Agents:
General Counsel ............................. 211. Chief Claim Agent ........................... 4529 and 1473.
Assist. General Counsel ................. 211. Chief Freight Claim Agent ............... 4528.
General Attorney ............................. 211. Assist. Chief Claim Agent ............... 4528 and 1473.
Assist. General Attorney ................. 211. Chief District Claim Agent ............... 4528.
Attorney ........................................... 211. District Freight Claim Agent ............ 4528.

Commerce Counsel ........................ 211. Chief Claim Investigator .................. 4783.
201
§ 1245.6 49 CFR Ch. X (10–1–07 Edition)
Job title SOC Job title SOC
208 Lieutenants and Sergeants of Po- Bus Driver ....................................... 8215.

lice: Driver Chauffeur .............................. 8216.
Police Lieutenant ............................. 5112. 300 Maintenance of Way and Struc-
Police Sergeant ............................... 5112. tures
209 Police Officers, Watchmen and 301 Supervisors, Maintenance of Way,
Guards (Except Crossing and Bridge): Structures, Communication and Sig-
Police Officer ................................... 5132. nals:
Patrolman ........................................ 5144. Roadmaster ..................................... 1342.
Watchman ....................................... 5144. Division Roadmaster ....................... 1342.
Guard .............................................. 5144. Supv. Track ..................................... 812.
210 Inspectors (Except Maintenance Supv. Bridges and Buildings ........... 133.
of Wage and Equipment) other Inves- Supv. Communications & Signals ... 1341.
tigators, Examiners, Instructors, and Assist. Supv .................................... 1341.
other Agents (except Station Agents): General Foreman ............................ 1342.
Rules Examiner ............................... 1473. Assist. General Foreman ................ 1342.
Supv. Rules ..................................... 1473. Master Carpenter ............................ 6313.
Safety Supv. .................................... 1473. Chief Draftsman .............................. 372.
Fire Marshall ................................... 5122. 302 Maintenance of Way, Structures,
Fire Chief ......................................... 1131 and 5111. Communication and Signals, and
Instructor ......................................... 239. Scale Inspectors:
Supv. Procedures ............................ 4525. Chief Bridges & Building Inspector 782.
Supv. Yard Procedure ..................... 4525. Chief Scale Inspector ...................... 782.
212 Clerical Technicians and Clerical Bridge & Building Inspector ............ 1472.
Specialists: Scale Inspector ............................... 782.
Lead Clerk ....................................... 4511 and 463. Roadway Equipment Inspector ....... 828.
Staff Assistant (Clerical) .................. 4511 and 463. Track and Roadway Inspector ........ 828.
Statistician ....................................... 1733. Instrument Man ............................... 6881 and 6151.
Cashier ............................................ 4364. Roadman ......................................... 1472 and 8769.
Teller ............................................... 4364. Chainman ........................................ 613.
Assist. Statistician ........................... 1733. Inspector Communications & Sig- 1341.
Rate Clerk ....................................... 4716. nals.
Pricing Clerk .................................... 4716. Signal Inspector .............................. 1341.
Computer Technician ...................... 4612. 303 Bridge and Building Gang Fore-
213 Office Machine and Data Equip- man:
ment Operators: Gang Foreman ................................ 6318.
Machine Operator ........................... 4718. Lead Foreman ................................. 6318.
Clerk ................................................ 463 304 Bridge and Building Carpenter: 6422.
Computer Operator ......................... 4612. Carpenter.
Keypunch Operator ......................... 4793. 305 Bridge and Building Ironworkers: 6473.
Office Machine Technician .............. 4718. Iron Worker.
214 Secretaries, Stenographers, and 306 Bridge and Building Painter:
Typists: Painter ............................................. 6442.
Secretary ......................................... 4622. Sign Painter ..................................... 6863.
Stenographer ................................... 4623. 307 Masons, Bricklayers, Plasterers,
Typist ............................................... 4624. and Plumbers:
Clerk Typists ................................... 4624. Mason .............................................. 6413, 6444, 6463,
Steno. Clerk .................................... 4623. and 6412.
215 General and other Clerks (Exclud- Bricklayer ......................................... 6412.
ing Yard Clerk and Crew Dispatcher): Plasterer .......................................... 6444.
File Clerk ......................................... 4696. Plumber ........................................... 645.
General Clerk .................................. 463. Operator .......................................... 6467.
Bookkeeper ..................................... 4712. Grinder ............................................ 6467.
Ticket Clerk ..................................... 4644. Welder ............................................. 7714.
Records Clerk ................................. 4696. 308 Bridge and Building Helpers and
Trace Clerk ...................................... 463. Apprentices:
Assignment Clerk ............................ 4752. Bridge and Building Helper Appr .... 6473.
Personnel Clerk ............................... 4692. Carpenter Helper ............................. 8642.
M of W Clerks ................................. 4699. Iron Worker Helper .......................... 6473 and 862.
M of E Clerks .................................. 4699. Mason Helper .................................. 8641.
216 Telephone and Switchboard Oper- Plumber Helper ............................... 8645.
ators: Painter Helper ................................. 8644.
Switchboard Operator ..................... 4732. Apprentice, Carpenter ..................... 6422.
Chief Operator ................................. 4523. Apprentice, Iron Worker .................. 6473.
217 Building and Office Attendants: Apprentice Mason ........................... 6412, 6413, 6444,
Elevator Operator ............................ 5245. and 6463.
Elevator Starter ............................... 5241. Plumber Apprentice ......................... 645.
Janitor .............................................. 5244. Apprentice Painter ........................... 6442 and 8644.
Cleaner ............................................ 5244. Welder Helper ................................. 862.
Porter ............................................... 5244. 309 Bridge and Building Gang and 871.
218 Messengers and Office Persons: Bridge and Building Department La-
Messenger ....................................... 4745. bors: Bridge and Building Labor.
Office Person .................................. 4745. 310 Track Gang Foreman (Extra Gang
219 Motor Vehicle Operators: Work Train Laborers):

Truck Driver ..................................... 8213 and 8214. Gang Foreman (Track) ................... 6318.
202
Assist. Foreman .............................. 6318. Materials Clerk ................................ 4754.

311 Gang or Section Foreman: Store Clerk ...................................... 4754.
Gang Foreman ................................ 6318. 406 Gang Foreman, Maintenance of 6318.
Assist. Foreman .............................. 6318. Equipment: Gang Foreman.
Section Foreman ............................. 6318. 407 Blacksmith:.
312 Extra Gang Laborers: Blacksmiths ..................................... 6179.
Trackman ........................................ 6467. 408 Boilermakers:.
Fence Laborer ................................. 6479 and 8769. Boilermaker ..................................... 6814.
313 Section Laborers: 409 Carmen (Freight):
Trackman ........................................ 8769. Car Repairmen ................................ 6117.
Track & Roadway Section Labor .... 8769. Car Inspector ................................... 828.
314 Machine Operators: Car Painter ...................................... 6442.
Craneman ........................................ 8315. 410 Carmen (other):.
Portable Equipment Engineer ......... 8312. Carman ............................................ 6117.
Portable Equipment Operator ......... 8319. 411 Electrical Workers (A):
Machine Operator ........................... 8319. Electrician ........................................ 6432.
Helper .............................................. 8618. Electrical Worker ............................. 6159.
315 Gang Foreman, Communications 412 Electrical Workers (B):
and Signals: Crane Operator ............................... 8315.
Gang foreman ................................. 6318. Load Dispatcher .............................. 4751.
Assist. Gang Foreman .................... 6318. Power Station Operator .................. 6932.
Lead Signal Maintainer ................... 6318. Assist. Power Director ..................... 6932.
316 Signal and Signal Maintainer: 413 Electrical Workers (C):
Signalman ....................................... 8233. Coal and Ore Elevator Operator 8319.
Signal Maintainer ............................ 6151 and 8233. (elec).
317 Linemen and Groundmen and Grain Elevator Operator (electrical) 8319.
Communications Craftsman: 414 Machinists:.
Electrical Worker (lineman) ............. 6433. Machinist ......................................... 6813.
Electrical Worker (groundsman) ..... 6432. 415 Sheet Metal Workers:.
Communications Maintainer ............ 6151. Sheet Metal Worker ........................ 6824.
318 Assistant Signalmen and Assist- 416 Skilled Trades, Helpers, Mainte- 861, 862, 863, and
ant Signalmen Maintainers: nance of Equipment and Stores: 864.
Assist. Signalman ............................ 8233 and 6151. Helper.
Assist. Signal Maintainer ................. 6151 and 8233. 417 Apprentices, Maintenance of
319 Signal Helpers and Signal Main- Equipment and Stores:
tainer Helpers: Apprentice ....................................... 863.
Signalman Helper ............................ 8635. Helper Apprentices .......................... 863.
Signalman Maintainer Helper .......... 8635. 418 Coach Cleaners: Coach Cleaner .. 875.
320 Camp Car Cooks: 419 Laborers; Shops, Enginehouses, 8769, 86, and 87.
Camp Car Cook .............................. 5214. and Power Plants: Laborer.
Camp Car Helper ............................ 5219. 420 Gang Foreman, Materials and 6318.
400 Maintenance of Equipment and Stores: Gang Foreman.
Stores 421 Equipment Operators and General
401 Supervisors and General Fore- Laborers, Materials and Stores:
man, Maintenance of Equipment: Laborer ............................................ 8725, and 8769.
General Foreman Shop .................. 6318 and 1342. Materials Handler ............................ 8726.
General Foreman Enginehouse ...... 6318 and 1342. Equipment Operator ........................ 8239.
General Foreman Diesel Terminal .. 6318 and 1342. Machine Operator ........................... 8319.
Assist. General Foreman (M&E) ..... 6318 and 1342. 422 Stationary Engineers:
402 Supervisors and General Fore- Chief Engineer (Steam Plant) ......... 6932.
man, Materials and Stores: Engineer .......................................... 6932.
Supv. Materials ............................... 4525. Stationary Engineer ......................... 6931.
Assist. Supv. Materials .................... 4525. 423 Stationary Firemen:
General Foreman Stores ................ 4524. Stationary Fireman .......................... 5122 and 8619.
General Foreman Reclamations 6318. Power Equipment Operator Helper 8319.
Plant. Oiler ................................................. 614.
Assist. General Foreman ................ 6318. 500 Transportation other Than Train
403 Equipment, Shop, Electrical In- and Engine
spectors: 501 Transportation Supervisor and
Chief Electrical Inspector ................ 6314. Chief Train Dispatcher:
Chief Shop & Equipment Inspector 1472. Chief Train Dispatcher .................... 8113.
Electrical Inspector .......................... 1472. Supv. Train Operator ...................... 1342.
Equipment Inspector ....................... 6881. Transportation Supv ........................ 1342.
Inspector Diesel locomotive ............ 6881. Supv. Locomotives and Car Dist .... 4759 and 8111.
Fuel Inspector ................................. 6831. Assist. Chief Train Dispatcher ........ 8113.
404 Materials and Supplies Inspector: 502 Train Dispatchers: Train Dis- 8113.
Materials and Supplies Inspector .... 782. patcher.
Chief Materials and Supplies .......... 4525. 503 Station, Freight and Passenger
Inspector .......................................... 782. Agents:
Timber Inspector ............................. 782. Supv. Station Agent ........................ 4514.
Tie Inspector ................................... 782. Assist. Supv. Station Agent ............ 4514.
405 Storekeeper: Station Agent ................................... 4514.
Storekeeper ..................................... 4754. Freight Agent ................................... 4644.

Assist. Storekeeper ......................... 4754. Passenger Agent ............................. 4644.
203
§ 1245.6 49 CFR Ch. X (10–1–07 Edition)
Ticket Agent .................................... 4644. Engineer .......................................... 8244.

Traveling Agent ............................... 4644. Mate ................................................ 8242.
Agent Operators .............................. 4514. Deckhand ........................................ 8243.
504 Chief Operators and Wire Chiefs: Oiler Purser ..................................... 8244.
Supv. Operator ................................ 4523. Boat Master ..................................... 8241.
Chief Operator ................................. 4523. Fireman ........................................... 8243.
Assist. Supv. Operator .................... 4523. Wharf Master ................................... 1342.
Wire Chief ....................................... 4523 and 60. Able Seaman ................................... 8243.
505 Clerk Operators, Towerman, Train Baggageman ................................... 5262.
Directors: Boat Dispatcher ............................... 1342.
Clerk Operator ................................. 4632. 518 Train Attendants:
Block Operator ................................ 4632. Porter ............................................... 5262.
Operator .......................................... 4632. Buffet Lounge Attendant ................. 4366.
Towerman ....................................... 8239. Stewardess ...................................... 5211.
Train Director .................................. 8113. 519 Bridge Operators and Helpers: 8245.
506 Station Masters and Assistants, Bridge Operator.
Supervising Baggage Agents, Bag- 520 Bridge and Crossing Flagmen and
gage Agents and Assistants: Gatemen:
Stationmaster .................................. 1342. Bridge Flagman ............................... 8769.
Assist. Station Master ..................... 1342. Crossing Gateman .......................... 5144.
Supv. Baggage Agent ..................... 4525. 521 Yard Clerks:
Baggage Agent ............................... 5262. Yard Clerk ....................................... 4754.
Assist. Baggage Agent .................... 5262. Yard Caller ...................................... 4745.
Parcel Room Agent ......................... 4744. Yard Dispatcher Clerk ..................... 4752.
507 Baggage Parcel Room and Sta- Piggyback Clerk .............................. 4753.
tion Attendants: Yard Demurrage Clerk .................... 4715.
Baggage Attendant ......................... 5262. 522 Crew Dispatchers:
Parcel Room Attendant ................... 4744. Crew Dispatcher .............................. 4751 and 4525.
Station Attendant ............................. 4514. Crew Caller ..................................... 4745.
Gateman .......................................... 5144. 523 Yardmasters and Assistant
Announcer ....................................... 4649. Yardmasters:
Station Usher .................................. 5256. Yardmaster ...................................... 8113.
Red Cap .......................................... 5262. Assist. Yardmaster .......................... 8113.
Information Bureau Attendant ......... 4649. 600 Transportation, Train and Engine
508 General and Assistant General 601 Switchtenders: Switchtender ........ 8233.
Foreman, Stations. Warehouses, 602 Car Retarder Operators and
Grain Elevators and Docks: Ground Service Employees:
General Foreman ............................ 6318. Car Retarder Operator .................... 8239.
Assist. General Foreman ................ 6318. Skatesman ...................................... 8769.
509 Gang Foreman, Stations, Ware- Herder ............................................. 8769.
houses, Grain Elevators and Docks: Yard Pilot ......................................... 8113.
Gang Foreman ................................ 6318. 603 Outside Hostlers: Outside Hostler 8232.
510 Grain Elevator and Dock Labor- 604 Outside Hostlers Helpers: Outside 8232.
ers: Hostler Helper.
Laborer ............................................ 8242. 605 Inside Hostlers: Inside Hostler ...... 8232.
511 Station and Warehouse Laborers: 606 Road Passenger Conductors: 8113.
Loader ............................................. 8726. Passenger Conductor.
Sealer .............................................. 8769 and 8724. 607 Assistant Road Passenger Con-
512 Trucks (Station, Warehouse and ductor and Ticket Collectors:
Platforms): Assistant Passenger Conductor ...... 8113.
Trucker ............................................ 8214. Ticket Collector ............................... 5256.
513 Food and Lodging Manager, Su- 608 Road Freight Conductors
pervisors: (Through Freight):
Manager Lodging House ................. 1351. Freight Conductor ........................... 8113.
Restaurant Manager ....................... 1351. Work Train Conductor ..................... 8113.
Dining Car Supv. ............................. 5211, and 1473. 609 Road Freight Conductors (Local
Dinning car Steward ........................ 5211. and Way Freight):
514 Transportation and Dining Service Freight Conductor ........................... 8113.
Inspectors: Work Train Conductor ..................... 8113.
Instructor Chef ................................. 5214. 610 Road Passenger 5262.
Restaurant Inspector ....................... 828. Baggagepersons: Baggageperson.
Freight Service Inspector ................ 828. 611 Road Passenger Brakeman and
Baggage Inspector .......................... 828. Flagman:
515 Waiters and Kitchen Helpers Passenger Brakeman ...................... 8233.
(Restaurant and Dining): Passenger Flagman ........................ 5142.
Waiter-in-Charge ............................. 5211. 612 Road Freight Brakemen and
Waiter .............................................. 5211. Flagmen (Through Freight):
516 Chefs and Cooks (Restaurant and Freight Brakeman ............................ 8233.
Dining Car): Freight Flagman .............................. 5142.
Chef ................................................. 5211. Work Train Brakeman ..................... 8233.
Cook ................................................ 5211 and 5214. 613 Road Freight Brakemen and
517 Marine Officers and Workers and Flagmen (Local and Way Freight):
Shore Workers: Freight Brakeman ............................ 8233.

Captain ............................................ 8242. Freight Flagman .............................. 5142.
204
Job title SOC § 1247.1 Annual Report of Cars Loaded

and Cars Terminated.
Work Train Brakeman ..................... 8233.
614 Yard Conductors and Yard Fore- Beginning with the reporting period
men: commencing January 1, 2001, and annu-
Yard Conductor ............................... 8113.
Yard Foreman ................................. 8113. ally thereafter, each Class I railroad
615 Yard Brakemen and Yard Help- shall file Form STB–54, Annual Report
ers: of Cars Loaded and Cars Terminated,
Yard Brakeman ............................... 8233. together with the accompanying cer-
Yard Helper ..................................... 8769.
616 Road Passengers Engineers and tification, with the Office of Econom-
Motormen: ics, Environmental Analysis, and Ad-
Passenger Engineer ........................ 8232. ministration (OEEAA), Surface Trans-
Motorman Operator ......................... 8232. portation Board, Washington, DC 20243,
617 Road Freight Engineers (Through
Freight): within 90 days after the end of the re-
Freight Engineer .............................. 8232. porting year. Blank forms and instruc-
Work Train Engineer ....................... 8232. tions are available on the Board’s web
618 Road Freight Engineers (Local
and Way Freight):
site (http://www.stb.dot.gov/
Freight Engineer .............................. 8232. infoex1.htm#forms) or can be obtained
Work Train Engineer ....................... 8232. by contacting OEEAA.
619 Yard Engineers: Yard Engineer .... 8232.
620 Road Passenger Firemen and 8232.
Helpers: Passenger Fireman. PART 1248—FREIGHT COMMODITY
621 Road Freight Firemen and Help-
ers (Through Freight): Freight Fire-
8232. STATISTICS
man.
622 Road Freight Firemen and Help- 8232. Subpart A—Railroads
ers (Local and Way Freight): Freight
Fireman. Sec.
623 Yard Firemen and Helpers: Yard 8232. 1248.1 Freight commodity statistics.
Fireman. 1248.2 Items to be reported.
1248.3 Carload and L.C.L. traffic defined.
[47 FR 53871, Nov. 30, 1982, as amended at 50 1248.4 Originating and connecting line traf-
FR 947, Jan. 8, 1985] fic.
1248.5 Report forms and date of filing.
1248.6 Public inspection—railroad reports.
PART 1246—NUMBER OF RAILROAD
EMPLOYEES Subpart B—Commodity Code
1248.100 Commodity classification des-
AUTHORITY: 49 U.S.C. 721, 11145. ignated.
1248.101 Commodity codes required.
§ 1246.1 Monthly report of number of NOTE: The report forms prescribed by part
railroad employees. 1248 are available upon request from the Of-
fice of the Secretary, Surface Transportation
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 Subpart A—Railroads
of Accounts, Surface Transportation
Board, Washington, DC 20423, by the AUTHORITY: 49 U.S.C. 721, 11144 and 11145.
end of the month to which it applies.
§ 1248.1 Freight commodity statistics.
[47 FR 53868, Nov. 30, 1982]
NOTE: The report forms prescribed by parts All class I railroads, as described in
1245 and 1246 are available upon request from § 1240.1 of this chapter, subject to Part
the Office of the Secretary, Surface Trans- I of the Interstate Commerce Act, shall
portation Board, Washington, DC 20423. compile and report freight commodity
statistics on the basis of the com-
PART 1247—REPORT OF CARS modity codes named in § 1248.101. Car-
LOADED AND CARS TERMINATED riers shall report quarterly on the basis
of the 3, 4 and 5-digit commodity codes
named in that section. Such reports
AUTHORITY: 49 U.S.C. 721, 10707, 11144, 11145. shall be made in conformity with the
SOURCE: 66 FR 1052, Jan. 5, 2001, unless oth- outline of terms set forth in §§ 1248.2 to
erwise noted. 1248.5, inclusive, as supplemented by
205
§ 1248.2 49 CFR Ch. X (10–1–07 Edition)
instructions included in the appro- into one car, each shipment shall be re-
priate report form to be supplied to the ported separately as a carload.
reporting railroads. [32 FR 20466, Dec. 20, 1967]
[47 FR 6880, Feb. 17, 1982]
§ 1248.4 Originating and connecting
§ 1248.2 Items to be reported. line traffic.
(a) The following items are to be re- (a) Revenue freight reported as re-
ported quarterly and annually by class ceived from connecting rail carriers shall
I railroads: include all shipments received from
(1) Average number of miles of road connecting rail carriers, either directly
operated in freight service. or indirectly, so far as apparent from
(2) For each commodity code used in information on the waybills or ab-
reporting, except that the number of stracts.
carloads for commodity code 431, (b) Revenue freight reported as origi-
‘‘Small packaged freight shipments,’’ nating on respondent’s road shall include
shall be omitted, the following items: shipments originating on line and ship-
ments received from water lines and
Revenue freight originating on respondent’s
highway motor truck lines, except
road:
Terminating on line: when identified as having had previous
Number of carloads. rail transportation, as provided in
Number of tons (2,000 pounds). paragraph (a) of this section.
Delivered to connecting rail carriers. (c) Freight which receives its first
Number of carloads. line-haul on respondent’s road, but
Number of tons (2,000 pounds). originates on switching roads con-
Revenue freight received from connecting necting directly or indirectly with re-
rail carriers:
Terminating on line:
spondent’s line, shall be reported as
Number of carloads. freight originated by respondent.
Number of tons (2,000 pounds). (d) Revenue freight reported as deliv-
Delivered to connecting rail carriers: ered to connecting rail carriers shall in-
Number of carloads. clude shipments delivered to con-
Number of tons (2,000 pounds). necting rail carriers, either directly or
Total revenue freight carried: indirectly, as far as apparent from in-
Number of carloads.
Number of tons (2,000 pounds). formation on waybills or abstracts.
Gross freight revenue. (e) Revenue freight reported as termi-
nating on respondent’s road shall include
(b) [Reserved] shipments terminating on line and
[32 FR 20466, Dec. 20, 1967, as amended at 47 shipments delivered to water lines and
FR 6880, Feb. 17, 1982] highway motor truck lines, except
when identified as to receive further
§ 1248.3 Carload and L.C.L. traffic derail transportation as provided in para-
fined. graph (d) of this section.
(a) Commodity codes 01 through 422 (f) Freight which receives its last line
and 44 through 462, named in § 1248.101, haul on respondent’s line, but is deliv-
shall include only carload traffic. All ered to a switching road connecting di-
shipments weighing less than 10,000 rectly or indirectly with respondent’s
pounds shall be included in commodity line, shall be reported as freight termi-
code 431, ‘‘Small packaged freight ship- nated by respondent.
ments.’’ (g) Import and export traffic received
(b) A carload for the purpose of this from or delivered to water carriers and
order shall consist of a shipment of not traffic from and to outlying posses-
less than 10,000 pounds of one com- sions of the United States received
modity. A mixed carload for the pur- from or delivered to water carriers
pose of this order shall be treated as a shall be reported as originating or ter-
carload of that commodity which forms minating at the port of entry or exit.
the major portion of the shipment in (h) Traffic interchanged with con-
weight. If a single shipment is loaded necting rail lines operating in Canada
into more than one car, each car used and Mexico shall be reported as deliv-
shall be reported as a carload. If more ered to or received from connecting

than one carload shipment is loaded rail carriers.
206
(i) Lake cargo coal delivered to lower § 1248.6 Public inspection—railroad re-
Lake and St. Lawrence River ports for ports.
transshipment by vessel shall be re- The individual commodity statistics
ported as delivered to connecting rail car- reports of class I railroads, required to
rier. Lake cargo coal received at upper be filed, for the year beginning Janu-
Lake ports shall be reported as received ary 1, 1964, or for quarters thereof, and
from connecting rail carriers. for the quarters of 1965, as the case
(j) Iron ore delivered to upper Lake might be, under the terms of § 123.1,
ports for transshipment by vessel shall shall not be open to public inspection,
be reported as delivered to connecting and such required commodity statistics
rail carriers. Iron ore received at lower reports, to be filed for the years begin-
Lake and St. Lawrence River ports ning January 1, 1965, and for the quar-
shall be reported as received from con- ters of the year beginning January 1,
necting rail carriers. 1966, and later, to the extent that they
(k) Tidewater coal to Atlantic ports involve traffic of less than three ship-
shall be reported as ‘‘delivered to con- pers, reportable in one of the com-
necting rail carriers.’’ Tidewater coal modity reporting classes, may be ex-
from Atlantic ports shall be reported cluded from a railroad’s regular freight
as ‘‘received from connecting rail car- commodity statistics report and filed
in a supplemental report which will not
riers.’’
be open for public inspection, except
(l) Freight accorded transit privi-
that access to supplemental reports
leges shall be reported as ‘‘originated may be given upon approval by the
on respondent’s road’’ at the transit Board.
point, even though the outbound ship-
ment may move under transit balances [32 FR 20466, Dec. 20, 1967, as amended at 47
or proportional rates. FR 6881, Feb. 17, 1982]
(m) ‘‘Gross freight revenue’’ means
respondent’s gross revenue from freight Subpart B—Commodity Code
without adjustment for absorptions or
corrections. AUTHORITY: 49 U.S.C. 721, 11144, 11145.
(n) Commodity codes 44 and 441,
§ 1248.100 Commodity classification
‘‘Freight forwarder traffic,’’ as named designated.
in § 1248.101, include freight traffic in
carloads shipped by or consigned to Commencing with reports for the
any forwarder holding a certificate year or quarter beginning January 1,
under Part IV of the Interstate Com- 1964, as the case might be, and there-
after until further order, reports of
merce Act.
commodity statistics required to be
[32 FR 20466, Dec. 20, 1967] made to the Board, shall be based on
the commodity codes, up to 5 digits, in
§ 1248.5 Report forms and date of fil- groups 01 through 40, in the Commodity
ing. Classification for Transportation Sta-
(a) Reports required from class I car- tistics, 1963, issued by the Bureau of
riers by this section shall be filed in the Budget, and on additional codes 411
duplicate with the Bureau of Accounts, through 462 shown in § 1248.101.
Surface Transportation Board, Wash- [32 FR 20466, Dec. 20, 1967. Redesignated at 46
ington, DC 20423, on forms which will FR 9116, Jan. 28, 1981, and 46 FR 10745, Feb. 4,
be furnished to the carriers. Data re- 1981]
quired under § 1248.2 shall be filed on
§ 1248.101 Commodity codes required.
Form QCS on or before the 60th day
succeeding the close of the period for Commodity codes required to be re-
which they are compiled. ported, as referred to in this part, are
(b) [Reserved] as follows:
NOTE: The outline of Report Form QCS fol- Code Description
lows the tenor of the order.
01 FARM PRODUCTS.
[32 FR 20466, Dec. 20, 1967, as amended at 47 011 Field Crops.

FR 6881, Feb. 17, 1982] 0112 Cotton, raw.
207
§ 1248.101 49 CFR Ch. X (10–1–07 Edition)
Code Description Code Description
01121 Cotton in bales. 104 Gold and Silver Ores.

01131 Barley. 105 Bauxite and Other Aluminum Ores.
01132 Corn, except popcorn. 106 Manganese Ores.
01133 Oats. 107 Tungsten Ores.
01134 Rice, rough. 108 Chromium Ores.
01135 Rye. 109 Miscellaneous Metal Ores.
01136 Sorghum grains. 11 COAL.
01137 Wheat, except buckwheat. 111 Anthracite Coal.
01139 Grain, n.e.c. 11111 Raw anthracite (lump).
0114 Oil seeds, oil nuts, and oil kernels, except ed- 11112 Cleaned or prepared anthracite (crushed,
ible tree nuts. screened, or sized).
01144 Soybeans. 112 Bituminous Coal and Lignite.
0115 Field seeds, except oil seeds. 1121 Bituminous coal.
0119 Miscellaneous field crops. 13 CRUDE PETROLEUM, NATURAL GAS, AND NATURAL
01193 Leaf tobacco. GASOLINE.
01195 Potatoes, other than sweet. 131 Crude Petroleum and Natural Gas.
01197 Sugar beets. 132 Natural Gasoline.
012 Fresh Fruits and Tree Nuts. 14 NONMETALLIC MINERALS, EXCEPT FUELS.
0121 Citrus fruits. 141 Dimension Stone, quarry.
0122 Deciduous fruits. 142 Crushed and Broken Stone, including riprap.
01221 Apples. 14211 Agricultural limestone.
01224 Grapes. 14219 Crushed and broken stone, including riprap,
01226 Peaches. n.e.c.
0123 Tropical fruits, except citrus. 144 Sand and Gravel.
01232 Bananas. 14411 Sand (aggregate and ballast).
0129 Miscellaneous fresh fruits and tree nuts. 14412 Gravel (aggregate and ballast).
01295 Coffee, green. 14413 Industrial sand and gravel.
013 Fresh Vegetables. 145 Clay, Ceramic and Refractory Minerals.
0131 Bulbs, roots, and tubers, with or without tops 14511 Bentonite.
except potatoes. 14512 Fire clay.
01318 Onions, dry. 14514 Kaolin and ball clay.
0133 Leafy fresh vegetables. 147 Chemical and Fertilizer Minerals.
01334 Celery. 14711 Barite.
01335 Lettuce. 14713 Potash, soda and borate.
0134 Dry ripe vegetable seeds, etc. (except 14714 Phosphate rock.
artifically dried). 14715 Rock salt.
01341 Beans, dry ripe. 14716 Sulphur.
01342 Peas, dry. 149 Miscellaneous Nonmetallic Minerals. Except
0139 Miscellaneous fresh vegetables: Fuels.
01392 Watermelons. 14911 Gypsum and anhydrite.
01394 Tomatoes. 14913 Native asphalt and bitumens.
01398 Melons, except watermelons (cantaloupes, 14914 Pumice and pumicite.
muskmelons, etc.). 19 ORDINANCE AND ACCESSORIES.
014 Livestock and Livestock Products. 191 Guns, Howitzers, Mortars, and Related Equip-
0141 Livestock. ment, Over 30 mm.
01411 Cattle. 192 Ammunition, Except for Small Arms (over 30
01413 Hogs and pigs. mm.).
01414 Sheep and lambs. 193 Full Tracked Combat Vehicles and Parts.
0142 Dairy farm products, except pasteurized. 194 Sighting and Fire Control Equipment.
0143 Animal fibers. 195 Small Arms, 30 mm. and Under.
01431 Wool. 196 Small Arms Ammunition, 30 mm. and Under.
015 Poultry and Poultry Products. 199 Miscellaneous Ordnance and Accessories.
0151 Live poultry. 20 FOOD AND KINDRED PRODUCTS.
0152 Poultry eggs. 201 Meat (Including Poultry and Small Game):
019 Miscellaneous Farm Products. Fresh, Chilled, or Frozen.
0191 Horticultural specialities. 2011 Meat, fresh or chilled, except salted.
0192 Animal specialties. 2012 Meat, fresh-frozen.
08 FOREST PRODUCTS 2013 Meat products.
084 Gums and Barks, Crude. 2014 Animal by-products, inedible.
08423 Latex and allied gums (crude natural rub- 20141 Hides, skins, and pelts, not tanned (cattle,
ber). pig, goat, sheep, mule, and horse).
086 Miscellaneous Forest Products. 2015 Dressed poultry, small game, and related
09 FRESH FISH AND OTHER MARINE PRODUCTS. products, fresh, chilled or canned.
091 Fresh Fish and Other Marine Products. 2016 Dressed poultry, small game and related
0912 Fresh fish and whale products, including fro- products, fresh-frozen.
zen unpackaged fish. 202 Dairy Products.
09131 Shells (oyster, crab, clam, etc.) 2021 Creamery butter.
10 METALLIC ORES. 2023 Condensed, evaporated milk and dry milk.
101 Iron Ores. 2024 Ice cream and related frozen desserts.
10112 Beneficiating-grade ore, crude. 2025 Cheese and other special dairy products.
102 Copper Ores. 2026 Processed whole milk, skim milk, cream and
103 Lead and Zinc Ores. other fluid products.
1031 Lead ores. 203 Canned and Preserved Fruits, Vegetables and
1032 Zinc ores. Sea Foods.
208
2031 Canned and cured sea foods. 228 Yarn and Thread.
2032 Canned specialties. 229 Miscellaneous Basic Textiles.
2033 Canned fruits and vegetables. 2296 Tire cord and fabrics.
2034 Dried and dehydrated fruits and vegetables 2297 Wool and mohair (scoured, combed, carbon-
(except field dried) and soup mix. ized): Tops, noils, nubs, slubs and grease.
2035 Pickled fruits and vegetables; sauces and 2298 Cordage and twine.
seasoning; salad dressing. 23 APPAREL AND OTHER FINISHED TEXTILE PRODUCTS
2036 Fresh or frozen packaged fish. INCLUDING KNIT.
2037 Frozen fruits, fruit juices, vegetables and spe- 231 Men’s, Youths’, and Boys’ Clothing.
cialties. 233 Women’s, Misses’, Girls’, and Infants’ Clothing.
204 Grain Mill Products. 235 Millinery, Hats and Caps.
2041 Flour and other grain mill products. 237 Fur Goods.
20411 Wheat flour, except blended and prepared. 238 Miscellaneous Apparel and Accessories.
20421 Prepared feeds for animals and fowls, ex- 239 Miscellaneous Fabricated Textile Products.
cept canned. 24 LUMBER AND WOOD PRODUCTS, EXCEPT FUR-
20423 Canned feed for animals and poultry. NITURE.
2043 Cereal preparations. 241 Primary Forest Products (Pulpwood, Piling,
2044 Milled rice, flour and meal. Posts, Logs, Bolts, etc.).
2045 Blended and prepared flour. 24114 Pulpwood logs.
2046 Corn starch, sirup, oil, sugar and by-products 24115 Pulpwood chips.
(wet process). 24116 Woodposts, poles and piling.
20461 Corn sirup. 242 Lumber and Dimension Stock:
20462 Corn starch. 2421 Lumber and dimension stock:
20463 Corn sugar. 24212 Sawed ties (railroads, mine, etc.).
205 Bakery Products. 2429 Miscellaneous sawmill and planing mill prod-
206 Sugar (beet and cane). ucts (shingles, cooperage stock, etc.).
2061 Sugar mill products and by-products. 243 Millwork, Veneer, Plywood, Prefabricated Struc-
20611 Raw cane and beet sugar. tural Wood Products.
20616 Sugar molasses, except blackstrap. 2431 Millwood.
20617 Blackstrap molasses. 2432 Veneer and plywood.
2062 Sugar, refined: Cane and beet. 244 Wooden Containers.
20625 Sugar refining by-products. 249 Miscellaneous Wood Products.
20626 Pulp, molasses, beet. 2491 Creosoted or oil treated wood products.
207 Confectionery and related products. 25 FURNITURE AND FIXTURES
208 Beverages and flavoring extracts. 251 Household and Office Furniture.
20821 Beer, ale, porter, stout: Bottled, barrels, 253 Public Building and Related Furniture.
kegs. 254 Partitions, Shelving, Lockers, Office, and Store
20823 Malt extract and brewers’s spent grains. Fixtures.
2083 Malt. 259 Miscellaneous Furniture and Fixtures.
2084 Wines, brandy, and brandy spirits. 26 PULP, PAPER AND ALLIED PRODUCTS
20851 Distilled, rectified and blended liquors. 261 Pulp and pulp mill products.
20859 By-products of liquor distilling. 26111 Pulp.
2086 Bottled and canned soft drinks and carbon- 262 Paper, except building paper.
ated and mineral waters. 26211 Newsprint.
2087 Miscellaneous flavoring extracts and flavoring 26216 Coarse paper, including wrapping paper.
sirups and compounds except chocolate syrups. 263 Paperboard, pulpboard and fiberboard, except
209 Miscellaneous Food Preparations and Kindred insulating board.
Products. 264 Converted paper and paperboard products, ex-
20911 Cottonseed oil, crude or refined. cept containers and boxes.
20914 Cottonseed cake, meal and other by-prod- 2643 Paper bags.
ucts. 265 Containers and boxes, paperboard, fiberboard
20921 Soybean oil, crude or refined. and pulpboard.
20923 Soybean cake, meal, flour, grits, and other 266 Building paper and building board.
by-products. 2661 Building paper and building board.
2093 Vegetable and nut oils and by-products, ex- 26613 Wallboard.
cept cottonseed and soybean. 27 PRINTED MATTER.
2094 Marine fats and oils. 271 Newspapers.
2095 Roasted coffee, including instant coffee. 272 Periodicals.
2096 Shortening, table oils, margarine and other 273 Books.
edible fats and oils, n.e.c. 274 Miscellaneous Printed Matter.
2097 Ice, natural or manufactured. 276 Manifold Business Forms.
2098 Macaroni, spaghetti, vermicelli, and noodles. 277 Greeting Cards, Seals, Labels, And Tags.
21 TOBACCO PRODUCTS: 278 Blankbooks, Looseleaf Binders and Devices.
211 Cigarettes. 279 Products of Service Industries for the Printing
212 Cigars. Trades.
213 Chewing and Smoking Tobacco and Snuff. 28 CHEMICAL AND ALLIED PRODUCTS
214 Stemmed and Redried Tobacco. 281 Industrial Inorganic and Organic Chemicals.
22 BASIC TEXTILES: 2812 Sodium, potassium, and other basic inorganic
221 Cotton Broad Woven Fabrics. chemical compounds and chlorine.
222 Man-made Fiber and Silk Broad Woven Fabrics. 28123 Sodium compounds, except sodium alka-
223 Wool Broad Woven Fabrics. lies.
224 Narrow Fabrics. 2813 Industrial gases (compressed and liquefied).
225 Knit Fabrics. 2814 Crude products from coal tar, petroleum and
227 Carpets and Rugs, Textile. natural gas.
209
§ 1248.101 49 CFR Ch. X (10–1–07 Edition)
2816 Inorganic pigments. 32594 Roofing tile.

2818 Miscellaneous industrial organic chemicals. 326 Pottery and Related Products.
28184 Alcohols. 327 Concrete, Gypsum, and Plaster Products.
2819 Miscellaneous industrial inorganic chemicals. 3271 Concrete products.
28193 Sulphuric acid. 3274 Lime.
282 Plastics Materials and Synthetic Resins, Syn- 3275 Gypsum products.
thetic Rubbers and Fibers. 328 Cut Stone and Stone Products.
28212 Synthetic rubber. 329 Abrasives, Asbestos, and Miscellaneous Non-
28213 Synthetic organic fibers. metallic Mineral Products.
283 Drugs (Biological Products, Medicinal Chemi- 3291 Abrasive products.
cals, Botanical Products and Pharmaceutical 33 PRIMARY METAL PRODUCTS.
Preparations). 331 Steel Works and Rolling Mill Products.
284 Soap, Detergents, and Cleaning Preparations, 33111 Pig iron.
Perfumes, Cosmetics and Other Toilet Prepara- 33112 Slag.
tions. 33113 Coke, screenings and breeze.
2841 Soap and other detergents, except specialty 33119 Coke oven and blast furnace products,
cleansers. n.e.c.
285 Paints, Varnishes, Lacquers, Enamels, and Al- 3312 Primary iron and steel products, except coke
lied Products. oven by-products.
286 Gum and Wood Chemicals. 33121 Steel ingot and semi-finished shapes.
287 Agricultural Chemicals. 3313 Ferro-alloys.
2871 Fertilizers. 3315 Steel wire, nails, and spikes.
289 Miscellaneous Chemical Products. 332 Iron and Steel Castings.
2892 Explosives. 33211 Iron and steel cast pipe and fittings.
28991 Salt. 333 Nonferrous Metals Primary Smelter Products
29 PETROLEUM AND COAL PRODUCTS. (Slab, Ingot, Pig, etc., and Residues).
291 Products of Petroleum Refining. 3331 Primary copper and copper base alloys smelt-
29111 Gasoline, jet fuels and other high volatile er products.
petroleum fuels, except natural gasoline. 3332 Primary lead and lead base alloys smelter
29112 Kerosene. products.
29113 Distillate fuel oil. 3333 Primary zinc and zinc base alloys smelter
29114 Lubricating and similar oils and derivatives. products.
29115 Lubricating greases. 3334 Primary aluminum and aluminum base alloys
29116 Asphalt, tar and pitches (petroleum, smelter products.
cokeoven, coal tar). 335 Nonferrous Metal Basic Shapes.
29117 Residual fuel oil and other low volatile pe- 3351 Copper, brass or bronze and other copper
troleum fuels. base alloy basic shapes.
29119 Products of petroleum refining, n.e.c. 3352 Aluminum and aluminum base alloy basic
2912 Liquefied petroleum gases and coal gases. shapes except aluminum foil.
295 Paving and Roofing Materials. 3357 Nonferrous wire, including insulated wire.
2951 Paving mixtures and blocks. 336 Nonferrous and Nonferrous Base Alloy Cast-
2952 Asphalt felt and coatings. ings.
299 Miscellaneous Petroleum and Coal Products. 3361 Aluminum and aluminum base alloy castings.
29911 Coke and coal briquettes. 2262 Brass, bronze, copper, and copper base alloy
30 RUBBER AND MISCELLANEOUS PLASTIC PRODUCTS. castings.
301 Tires and Inner Tubes. 339 Miscellaneous Primary Metal Products.
302 Rubber Footwear. 3391 Iron and steel forgings.
303 Reclaimed Rubber. 3392 Nonferrous forgings.
306 Miscellaneous Fabricated Rubber Products. 34 FABRICATED METAL PRODUCTS, EXCEPT ORDNANCE,
307 Miscellaneous Plastics Products. MACHINERY, AND TRANSPORTATION EQUIPMENT.
31 LEATHER AND LEATHER PRODUCTS. 341 Metal Cans.
311 Leather. 342 Cutlery, Hand Tools, and General Hardware.
312 Industrial Leather Belting and Packing. 343 Plumbing Fixtures and Heating Apparatus, Ex-
313 Boot and Shoe Cut Stock and Findings, All Ma- cept Electric.
terials. 3433 Heating equipment, except electric.
314 Footwear, Except Rubber. 344 Fabricated structural metal products.
315 Leather Gloves and Mittens. 3441 Fabricated structural metal products.
316 Luggage, Handbags, and Other Personal Leath- 345 Bolts, Nuts, Screws, Rivets, Washers, and
er Goods (all materials). Other Industrial Fasteners.
319 Miscellaneous Leather Goods. 346 Metal Stampings.
32 STONE, CLAY AND GLASS PRODUCTS. 348 Miscellaneous Fabricated Wire Products.
321 Flat Glass. 349 Miscellaneous Fabricated Metal Products.
322 Glass and Glassware, Pressed and Blown. 3491 Metal barrels, drums, kegs, and pails.
3221 Glass containers. 3494 Valves and pipe fittings (except plumbers’
324 Hydraulic Cement. brass goods and fittings), fabricated pipe and
32411 Cement, hydraulic; Portland, natural, ma- fabricated pipe fittings.
sonry, puzzolan. 35 MACHINERY, EXCEPT ELECTRICAL.
325 Structural Clay Products. 351 Engines and Turbines.
3251 Brick and structural clay tile. 352 Farm Machinery and Equipment.
32511 Brick, except ceramic glazed and refractory 353 Construction, Mining and Materials Handling
brick. Equipment.
3253 Ceramic wall and floor tile. 3531 Construction machinery and equipment.
3255 Refractories, clay and nonclay. 3532 Mining machinery and equipment, except oil
3259 Miscellaneous structural clay products. field machinery and equipment.
210
3533 Oil field machinery and equipment. 4026 Rubber and plastic scrap and waste.
3537 Industrial trucks, tractors, trailers, and stack- 41 MISC. FREIGHT SHIPMENTS.
ers. 411 Misc. Freight Shipments.
354 Metalworking Machinery and Equipment. 41111 Outfits or kits.
355 Special Industry Machinery, Except Metal- 41114 Articles, used except for repair, recondi-
working Machinery. tioning (41115), returned empty (421), remelting
356 General Industrial Machinery and Equipment. 4021).
357 Office, Computing, and Accounting Machines.
41115 Articles, used, returned for repair, incl. for
358 Service Industry Machines.
reconditioning.
359 Miscellaneous Machinery and Parts, Except
Electrical. 412 Miscellaneous Commodities Not Taken in
36 ELECTRICAL MACHINERY, EQUIPMENT AND SUPPLIES. Regular Freight Service.
361 Electrical Transmission and Distribution Equip- 42 CONTAINERS, SHIPPING, RETURNED EMPTY.
ment. 421 Containers, Shipping, Returned Empty Inc. Car-
362 Electrical Industrial Apparatus. riers or Devices.
363 Household Appliances. 422 Trailers, Semi-Trailers, Returned Empty.
3631 Household cooking equipment, all types. 44 FREIGHT FORWARDER TRAFFIC.
3632 Household refrigerators and home and farm 441 Freight Forwarder Traffic, Carload or Truckload.
freezers. 45 SHIPPER ASSOCIATION OR SIMILAR TRAFFIC.
3633 Household laundry equipment. 451 Shipper Association or Similar Traffic, Carload
364 Electric Lighting and Wiring Equipment. or Truckload.
365 Radio and TV Receiving Sets, Except Commu- 46 MISCELLANEOUS MIXED SHIPMENTS EXC. FOR-
nication Types. WARDER SEE 44 SHIPPER ASSOCIATION SEE 45.
366 Communication Equipment.
461 All Freight Rate Shipments, N.E.C., Inc. TOFC.
367 Electronic Components and Accessories.
369 Miscellaneous Electrical Machinery, Equipment, 462 Mixed Shipments on One Factor Rates Cnstg.
and Supplies. of Commodities Representing Two or More
37 TRANSPORTATION EQUIPMENT. Major Industry Groups Where it is Impossible to
371 Motor Vehicles and Motor Vehicle Equipment. Determine the Predominant Industry.
3711 Motor vehicles. 47 SMALL PACKAGED FREIGHT SHIPMENTS.
37111 Passenger cars, assembled. 471 Small Packaged Freight Shipments, Including
37112 Truck tractors, and trucks, assembled. LCL or LTL.
37113 Motor coaches, assembled (including trolley
busses) and fire department vehicles.
3712 Passenger car bodies and body parts. [32 FR 20466, Dec. 20, 1967. Redesignated at 46
3713 Truck and bus bodies and body parts. FR 9116, Jan. 28, 1981, and 46 FR 10745, Feb. 4,
3714 Motor vehicle parts and accessories. 1981]
3715 Truck trailers.
372 Aircraft and Parts.
373 Ships and Boats. PARTS 1250–1252 [RESERVED]
374 Railroad Equipment.
375 Motorcycles, Bicycles, and Parts.
379 Miscellaneous Transportation Equipment. PART 1253—RATE-MAKING ORGA-
38 INSTRUMENTS, PHOTOGRAPHIC AND OPTICAL GOODS,
WATCHES AND CLOCKS.
NIZATION; RECORDS AND REPORTS
381 Engineering, Laboratory, and Scientific Instru-
ments. Sec.
382 Measuring, Controlling, and Indicating Instru- 1253.10 Accounts.
ments.
383 Optical Instruments and Lenses.
1253.20 Other records.
384 Surgical, Medical, and Dental Instruments and 1253.30 Retention of records.
Supplies.
385 Ophthalmic or Opticians’ Goods.
AUTHORITY: 49 U.S.C. 721, 10706, 13703, 11144,
386 Photographic Equipment and Supplies. and 11145.
387 Watches, Clocks, Clockwork Operated Devices, NOTE: The report forms prescribed by part
and Parts. 1253 are available upon request from the Of-
39 MISCELLANEOUS PRODUCTS OF MANUFACTURING. fice of the Secretary, Surface Transportation
391 Jewelry, Silverware, and Plated Ware. Board, Washington, DC 20423.
393 Musical Instruments and Parts.
394 Toys, Amusement, Sporting and Athletic Goods.
3949 Sporting and athletic goods. § 1253.10 Accounts.
395 Pens, Pencils, and Other Office and Artists’ Ma- Accounts shall be kept by each con-
terials.
396 Costume Jewelry, Novelties, Buttons, and No- ference, bureau, committee, or other
tions. organization subject to sections 5a or
398 Miscellaneous Manufactured Products—A. 5b to record all receipts and expendi-
399 Miscellaneous Manufactured Products—B.
40 WASTE AND SCRAP MATERIALS.
tures of moneys. Such accounts shall
401 Ashes. be kept with sufficient particularity to
402 Waste and Scrap, Except Ashes. show the facts pertaining to all trans-
4021 Metal scrap, waste and tailings. actions reflected in the entries made in
40211 Iron and steel scrap, wastes and tailings.
4022 Textile waste, scrap and sweepings. the accounts. All receipts shall be sup-
4024 Paper waste and scrap. ported by records, including records
211
§ 1253.20 49 CFR Ch. X (10–1–07 Edition)
showing the basis for charges to mem- Preservation of Records, of this chap-
bers. All disbursements shall be sup- ter.
ported by vouchers, payrolls, canceled [40 FR 50389, Oct. 29, 1975]
checks, and other evidences of expendi-
tures, including the basis for any ap- Parts 1260–1269—Valuation
portionment of expense items to mem-
bers. NOTE: Forms prescribed in parts 1260–1269
[32 FR 20474, Dec. 20, 1967] are available upon request from the Office of
the Secretary, Surface Transportation
§ 1253.20 Other records.
Each such organization subject to PARTS 1260–1261 [RESERVED]
sections 5a or 5b shall maintain:
(a)(1) A file for each proposal relating Parts 1280–1299—Classification
to rates, fares, classifications, divi-
sions, allowances, or charges (including
and Declassification of National
charges between carriers and com-
Security Information and Mate-
pensation paid or received for the use rial
of facilities and equipment), or rules
and regulations pertaining thereto, PART 1280—HANDLING OF NA-
which shall contain the complete pro- TIONAL SECURITY INFORMATION
posal, all procedural documents issued, AND CLASSIFIED MATERIAL
protests, memoranda, amendments, re-
ports, etc., submitted and any other Sec.
1280.1 Purpose.
correspondence respecting the matter 1280.2 Policy.
proposed. Also reports or minutes of all 1280.3 Authority to classify.
proceedings at any oral, committee or 1280.4 Responsibility for handling of classi-
public hearing held thereon and the de- fied documents.
termination relating thereto; 1280.5 Safeguarding of classified material.
1280.6 Storage of classified documents.
(2) a file covering each petition or 1280.7 Education of employees.
protest filed by the organization 1280.8 Requests for mandatory review.
against tariff publications of a member
AUTHORITY: E.O. 12356.
for suspension of rates or other mat-
ters published for such member carrier; SOURCE: 49 FR 7832, Mar. 2, 1984, unless oth-
erwise noted.
(3) a file covering each instruction or
request for publication by independent § 1280.1 Purpose.
action.
To set forth those provisions of the
(b) All accounts and other records Surface Transportation Board Security
covered by this part shall be filed in Regulations to the extent that they af-
such manner as to be readily accessible fect the general public.
for examination by representatives of
the Board. § 1280.2 Policy.
(c) All rate bureaus are required to It is the policy of the Surface Trans-
(1) advise the Board of any change in portation Board to act in accordance
legal address by notifying the Office of with Executive Order 12356, dated April
the Secretary and (2) submit informa- 6, 1982, in matters relating to national
tion to the Board when requested. security information.
(49 U.S.C. 10706, 11145; 5 U.S.C. 553)
§ 1280.3 Authority to classify.
[32 FR 20474, Dec. 20, 1967, as amended at 47 The Board does not have authority of
FR 37904, Aug. 27, 1982] its own to classify any of its internally
generated documents. The only docu-
§ 1253.30 Retention of records.
ments handled by the Board which are
Each organization subject to sections classified as confidential, secret, or top
5a or 5b shall retain records or docu- secret are those generated by Execu-
ments relating to its transactions or tive Branch Agencies with original

activities in accordance with part 1220, classification authority.
212
§ 1280.4 Responsibility for handling of § 1280.5 Safeguarding of classified ma-

classified documents. terial.
(a) Responsible Official. Primary re- (a) Reproduction of classified mate-
sponsibility for the handling of classi- rial shall take place only when abso-
fied documents shall rest with the As- lutely necessary, and in accordance
sistant to the Director of the Office of with section 2001.46 of the Directive.
Compliance and Consumer Assistance, Should copies be made, they are sub-
who is also Emergency Coordinator for ject to the same controls as the origi-
the Board. All documents bearing the nal document. Records showing the
terms ‘‘Top Secret,’’ ‘‘Secret,’’ and number and distribution of copies shall
‘‘Confidential’’ shall be delivered to the be maintained by the Emergency Coor-
Emergency Coordinator or his/her al- dinator and the log stored with the
ternate immediately upon receipt. The original documents.
alternate is also an Assistant to the
(b) Any suspected or actual unau-
Director of the Office of Compliance
thorized disclosures of classified infor-
and Consumer Assistance as set forth
mation shall be reported to the Emer-
in § 1280.4(b) of the rules. All potential
gency Coordinator or Alternate. An im-
recipients of such documents shall be
advised of the name of the Emergency mediate investigation will be under-
Coordinator. In the event that the taken by the Emergency Coordinator
Emergency Coordinator or his/her al- or Alternate to establish all facts sur-
ternate is not available to receive such rounding the disclosure. The Emer-
documents, they shall be turned over gency Coordinator or Alternate shall
to the Associate Director, Office of ascertain the nature of the information
Compliance and Consumer Assistance, disclosed and the extent to which it
and secured, unopened, in the combina- has been disseminated and will main-
tion safe located in Room 5325 of the tain records of disclosures as evaluated
headquarters building until the Emer- and investigated.
gency Coordinator or alternate is (c) Any suspected or actual unau-
available. All material not imme- thorized disclosure of classified infor-
diately deliverable to either the Emer- mation will be reported as soon as pos-
gency Coordinator, alternate, or the sible to the Department of Justice and
Associate Director, Office of Compli- the Information Security Oversight Of-
ance and Consumer Assistance, shall be fice.
delivered at the earliest opportunity. (d) Any unauthorized disclosure of
Under no circumstances shall classified classified information or any failure to
material that cannot be delivered to cooperate with the investigation of un-
the Emergency Coordinator be stored authorized disclosures by an employee
other than in the designated safe in shall be cause for appropriate discipli-
Room 5325 of the STB headquarters
nary or other remedial action as pro-
building.
vided in the Board’s Canons of Con-
(b) The alternate to the Emergency
duct, 49 CFR 1000.735–31.
Coordinator for the receipt and han-
dling of documents mentioned in para- [49 FR 7832, Mar. 2, 1984, as amended at 54 FR
graph (a) of this section, shall be the 38998, Sept. 22, 1989]
other Assistant to the Director, Office
of Compliance and Consumer Assist- § 1280.6 Storage of classified docu-
ance. ments.
(c) Any person whose position re- All classified documents shall be
quires access to classified information stored in the safe located in Room 5325
must execute Form SF #189. of the STB headquarters building. In
(d) Any contracts with media rep- those instances where the Emergency
resentatives by personnel with access Coordinator is not available to receive
to classified material and involving classified documents, they may be
such material will be cleared through stored, unopened, in the safe located in
the Emergency Coordinator and more Room 5325.
than one person shall be present during

any briefing or interview.
213
§ 1280.7 49 CFR Ch. X (10–1–07 Edition)
§ 1280.7 Education of employees. § 1280.8 Requests for mandatory re-

All employees who have been granted view.
a security clearance and who have oc- Because the Board does not itself
casion to handle classified materials generate classified documents, any re-
shall be advised of the procedures out- quests made for mandatory review
lined in 49 CFR part 1280. They shall shall be coordinated by the Emergency
also be required to review Executive Coordinator with appropriate officials
Order 12356 and appropriate directives of the Department or Agency respon-
of the Information Security Oversight sible for issuance of the document in-
Office (ISOO). This shall be achieved by volved.
a memorandum to all affected employ-
ees at the time these procedures are
implemented, and by appropriate in- PARTS 1281–1299 [RESERVED]
structions to new employees receiving
security clearances in the future.
214
SUBCHAPTER D—CARRIER RATES AND SERVICE TERMS
PART 1300—DISCLOSURE, PUBLICA- § 1300.2 Disclosure requirement for ex-

TION, AND NOTICE OF CHANGE isting rates.
OF RATES AND OTHER SERVICE (a) A rail carrier must disclose to any
TERMS FOR RAIL COMMON CAR- person, upon formal request, the spe-
RIAGE cific rate(s) requested (or the basis for
calculating the specific rate(s)), as well
Sec.
as all charges and service terms that
1300.1 Scope; definitions. may be applicable to transportation
1300.2 Disclosure requirement for existing covered by the rate(s). For purposes of
rates. § 1300.4(a)(1) of this part, a formal re-
1300.3 Response to request for establish- quest under this part is one that clear-
ment of a new rate. ly notifies the railroad that the re-
1300.4 Notice requirement. quester seeks not only immediate in-
1300.5 Additional publication requirement formation but also notification of any
for agricultural products and fertilizer. future increases in the rate(s) involved
AUTHORITY: 49 U.S.C. 721(a) and 11101(f). or changes in pertinent service terms.
(b) The information provided by a
SOURCE: 61 FR 35140, July 5, 1996, unless rail carrier under this section must be
otherwise noted.
provided immediately. (It is expected
§ 1300.1 Scope; definitions. that the response will be sent within
hours, or at least by the next business
(a) The provisions of this part ad- day, in most situations.) Such informa-
dress the requirements imposed on rail tion may be provided either in written
carriers by 49 U.S.C. 11101(b), 11101(c), or electronic form as agreed to by the
11101(d) and 11101(f). parties. If the parties cannot agree,
(b) Except as otherwise provided in such information is to be provided in
this section, the provisions of this part electronic (non-passive) form where
apply to any common carriage trans- both parties have the requisite capa-
portation or service provided by a rail bilities; otherwise, it is to be provided
carrier subject to the jurisdiction of in writing.
the Surface Transportation Board (c) A rail carrier may, at its option,
under 49 U.S.C. 10501. require that all requests submitted
(c) The provisions of this part do not under this section be in written or elec-
apply to any transportation or service tronic form, although the carrier may
provided by a rail carrier under a con- permit oral requests.
tract authorized under 49 U.S.C. 10709
or former 49 U.S.C. 10713 (repealed ef- § 1300.3 Response to request for estab-
fective January 1, 1996). lishment of a new rate.
(d) The provisions of this part do not Where a shipper or a prospective
apply to any transportation or service shipper or person acting on behalf of a
provided by a rail carrier to the extent shipper or a prospective shipper re-
that such transportation or service is quests that the carrier establish a rate
exempted from rate notice and disclo- in the absence of an existing rate for
sure requirements pursuant to an ex- particular transportation, the carrier
emption issued under 49 U.S.C. 10502 or must promptly establish and provide to
former 49 U.S.C. 10505 (repealed effec- the requester a rate and applicable
tive January 1, 1996). service terms. The information may be
(e) For the purposes of this part, provided either in written or electronic
form, as agreed to by the parties. If the
‘‘service terms’’ means all classifica-
parties cannot agree, such information
tions, rules, and practices that affect
is to be provided in electronic (non-pas-
the rates, charges, or level of service
sive) form where both parties have the
for rail transportation.
requisite capabilities; otherwise, it is

to be provided in writing. The response
215
§ 1300.4 49 CFR Ch. X (10–1–07 Edition)
should be provided as soon as reason- § 1300.5 Additional publication re-

ably possible, but no later than 10 busi- quirement for agricultural products
ness days from receipt of the request. If and fertilizer.
a carrier determines that additional in- (a) With respect to transportation of
formation is required from the re- agricultural products (including grain,
quester before a rate or term can be es- as defined in 7 U.S.C. 75, and all prod-
tablished, the carrier must so notify ucts thereof) and fertilizer, a rail car-
the requester as soon as possible, but rier shall publish, make available, and
no later than 10 business days after re- retain for public inspection its cur-
ceipt of the request. Once the addi- rently effective rates, schedules of
tional information is received, the car- rates, charges, and other service terms,
rier must set the rate and related serv- and any scheduled changes to such
ice terms, and relay them to the re- rates, charges, and service terms. This
quester, as soon as reasonably possible, requirement is in addition to the re-
but no later than 10 business days from quirements imposed by §§ 1300.2, 1300.3,
the receipt of the additional informa- and 1300.4 of this part.
tion. (However, the parties may agree (b) The information published under
to a different time period, in which this section must include an accurate
case these time periods would not description of the services offered to
apply.) A rail carrier may, at its op- the public; must provide the specific
tion, require that requests submitted applicable rates (or the basis for calcu-
under this section be in written or elec- lating the specific applicable rates),
tronic form, although the carrier may charges, and service terms; and must
permit oral requests. be arranged in a way that allows for
the determination of the exact rate,
§ 1300.4 Notice requirement. charges, and service terms applicable
to any given shipment (or to any given
(a) A rail carrier may not increase group of shipments). Increases, reduc-
any rates or charges, or change any tions and other changes must be sym-
service terms (except for changes that bolized or highlighted in some way to
are equivalent to rate reductions), un- facilitate ready identification of the
less 20 days have expired after written changes, the nature of those changes
or electronic notice has been provided and their effective dates.
to all persons who, within the previous (c) A rail carrier must make the in-
12 months: formation available at offices where it
(1) Have formally requested under normally keeps rate information. Ac-
§§ 1300.2 or 1300.3 of this part the af- cess to the information at such offices
fected rates or service terms; or must be provided to any person, with-
(2) Have made arrangements with the out charge, during normal business
carrier for a future shipment that hours.
would be subject to the increased rates (d) A rail carrier must also make the
or changed service terms. required publications available to all
(b) The notice required by this sec- persons (hereinafter referred to as sub-
tion may be in written or electronic scribers) who have subscribed to a pub-
form, as agreed to by the parties. If the lication service operated either by the
parties cannot agree, the information rail carrier itself or by an agent acting
is to be provided in electronic (non-pas- at the rail carrier’s direction. Such
sive) form where both parties have the publications may be made available ei-
requisite capabilities; otherwise, it is ther in printed or in electronic form as
to be provided in writing. agreed to by the parties. Any scheduled
changes must be published in a manner
(c) For purposes of this section, a
that provides timely notice to sub-
mailed notice is deemed ‘‘provided’’ on
scribers. A rail carrier may impose rea-
the date such notice is postmarked. sonable charges for such publications.
(d) The notice required by this sec- Publications may be limited to the spe-
tion must clearly identify the increases cific information requested by the sub-
in rates or charges or the changes in
scriber, and charges for such limited

service terms. publications should be set accordingly.
216
PART 1301 [RESERVED] ders aforesaid suspending the provi-

sions of section 28 of the Merchant Ma-
PART 1302—EXPORT AND IMPORT rine Act, that is to say, that notwith-
SHIPMENTS; RAILROADS standing the provisions of the aforesaid
section 28 may become effective during
CHARGES FOR RAIL TRANSPORTATION WHEN the time when export or import ship-
WATER TRANSPORTATION PERFORMED IN ments are in transit to or from the
VESSELS NOT DOCUMENTED UNDER LAWS OF ports of export or import the following
THE UNITED STATES conditions shall be observed.
Sec. (a) With respect to all export ship-
1302.41 Suspension of statute. ments delivered to and receipted for by
1302.42 Further suspension of statute. common carriers subject to the provi-
1302.43 Applicable rates on shipments in sions of section 6 of the Interstate
transit when statute becomes effective.
Commerce Act (section 6, 24 Stat. 380,
AUTHORITY: 49 U.S.C. 884. as amended; 49 U.S.C. 6(13)) the rates to
SOURCE: 32 FR 20541, Dec. 20, 1967, unless the ports in force and applicable upon
otherwise noted. said shipments via the lines of said car-
CROSS REFERENCES: For United States Cus- riers upon the date of delivery to and
toms Service, Department of the Treasury; receipt by such carriers shall be ap-
see Customs Duties, 19 CFR Chapter I. For plied to said shipments; and,
Foreign-Trade Zones Board; see Commerce, (b) With respect to all import ship-
15 CFR Chapter IV. For regulations of Inter-
national Trade Administration concerning
ments delivered to and receipted for by
foreign trade statistics; see Commerce, 15 common carriers subject to the provi-
CFR Chapter III. sions of section 6 of the Interstate
Commerce Act (49 U.S.C. 6 (13)) the
CHARGES FOR RAIL TRANSPORTATION rates from the ports in force and appli-
WHEN WATER TRANSPORTATION PER- cable to said shipments over the lines
FORMED IN VESSELS NOT DOCUMENTED of said carriers upon the date of deliv-
UNDER LAWS OF THE UNITED STATES ery to and receipt by such carriers
§ 1302.41 Suspension of statute. shall be applied to said shipments.
The provisions of section 28 of the
Merchant Marine Act, 1920, are hereby PART 1305—DISCLOSURE AND NO-
further suspended from and including TICE OF CHANGE OF RATES AND
the first day of January, 1921, until fur- OTHER SERVICE TERMS FOR PIPE-
ther order of this Board. LINE COMMON CARRIAGE
§ 1302.42 Further suspension of stat- Sec.
ute. 1305.1 Scope; definitions.
(a) Order of March 11, 1924, as modi- 1305.2 Disclosure requirement for existing
fied, which terminated order of June rates.
14, 1920, as modified, suspending provi- 1305.3 Response to request for establish-
sions of section 28 of the Merchant Ma- ment of a new rate.
rine Act, 1920, until further order of the 1305.4 Notice requirement.
Board, is hereby vacated and set aside. AUTHORITY: 49 U.S.C. 721(a) and 15701(e).
(b) The provisions of said order of
June 14, 1920, as modified by the sup- SOURCE: 61 FR 35141, July 5, 1996, unless
plemental orders of July 27, 1920, De- otherwise noted.
cember 11, 1920, and February 7, 1921,
specified in paragraph (a) of this sec- § 1305.1 Scope; definitions.
tion, shall continue in force until fur- (a) The provisions of this part ad-
ther order of the Board. dress the requirements imposed on
pipeline carriers by 49 U.S.C. 15701(b)
§ 1302.43 Applicable rates on ship- and 15701(c). Such requirements apply
ments in transit when statute be-
comes effective. to pipeline carriers only with respect
to the transportation of commodities
The following conditions are hereby other than water, gas, or oil.
prescribed as supplemental to the or-
217
§ 1305.2 49 CFR Ch. X (10–1–07 Edition)
(b) Except as otherwise provided in service terms. The information may be

paragraph (c) of this section, the provi- provided either in writing or in elec-
sions of this part apply to any trans- tronic form, as agreed to by the par-
portation or service provided by a pipe- ties. If the parties cannot agree, such
line carrier subject to the jurisdiction information is to be provided in elec-
of the Surface Transportation Board tronic form where both parties have
under 49 U.S.C. 15301. the requisite capabilities; otherwise, it
(c) The provisions of this part do not is to be provided in writing. The re-
apply to any transportation or service sponse should be provided as soon as
provided by a pipeline carrier to the ex- reasonably possible, but no later than
tent that such transportation or serv- 10 business days from receipt of the re-
ice is exempted from rate notice and quest. If a carrier determines that ad-
disclosure requirements pursuant to 49 ditional information is required from
U.S.C. 15302. the requester before a rate or term can
(d) For the purposes of this part, serv- be established, the carrier must so no-
ice terms means all classifications, tify the requester as soon as possible,
rules, and practices that affect the but no later than 10 business days after
rates, charges, or level of service for receipt of the request. Once the addi-
pipeline transportation. tional information is received, the car-
rier must set the rate and related serv-
§ 1305.2 Disclosure requirement for ex- ice terms, and relay them to the re-
isting rates. quester, as soon as possible, but no
(a) A pipeline carrier must disclose to later than 10 business days. The time
any person, on request, the specific period for response set forth in this
rate(s) requested (or the basis for cal- section will not apply when the parties
culating the specific rate(s)), as well as agree to a different time period. A
all charges and service terms that may pipeline carrier may, at its option, re-
be applicable to transportation covered quire that requests submitted under
by those rate(s). this section be in writing or electronic
(b) The information provided by a form, or the carrier may permit oral
pipeline carrier under this section requests.
must be provided immediately. (It is
expected that the response will be sent § 1305.4 Notice requirement.
within hours, or at the latest by the (a) A pipeline carrier may not in-
next business day, in most situations.) crease any rates or charges, or change
Such information may be provided ei- any service terms (except for changes
ther in writing or in electronic form, as that are equivalent to rate reductions)
agreed to by the parties. If the parties unless 20 days have expired after writ-
cannot agree, such information is to be ten or electronic notice has been pro-
provided in electronic form where both vided to all persons who, within the
parties have the requisite capabilities; previous 12 months:
otherwise, it is to be provided in writ- (1) Have requested, under § 1305.2 or
ing. § 1305.3, the affected rates or service
(c) A pipeline carrier may, at its op- terms; or
tion, require that all requests sub- (2) Have made arrangements with the
mitted under this section be in writing carrier for a shipment that would be
or electronic form, or the carrier may subject to the increased rates or
permit oral requests. changed service terms.
(b) The notice required by this sec-
§ 1305.3 Response to request for estab- tion may be provided either in writing
lishment of a new rate. or in electronic form, as agreed to by
Where a shipper or a prospective the parties. If the parties cannot agree,
shipper, or a person acting on behalf of the information is to be provided in
a shipper or a prospective shipper, re- electronic form where both parties
quests that the carrier establish a rate have the requisite capabilities; other-
in the absence of an existing rate for wise, it is to be provided in writing.
particular transportation, the carrier (c) For purposes of this section, a
must promptly establish and provide to mailed notice is deemed ‘‘provided’’ on

the requester a rate and applicable the date such notice is postmarked.
218
(d) The notice required by this sec- (d) For the purposes of this part serv-
tion must clearly identify the increase ice terms means all classifications,
in rates or charges or the change in rules, regulations and practices that
service terms. affect the rates, charges, or level of
service for movements of household
PART 1310—TARIFF REQUIREMENTS goods.
FOR HOUSEHOLD GOODS CAR- § 1310.2 Requirement to maintain tar-
RIERS iffs.
(a) Except when providing transpor-
Sec.
1310.1 Scope; definitions. tation for charitable purposes without
1310.2 Requirement to maintain tariffs. charge, carriers subject to the Board’s
1310.3 Contents of tariffs. jurisdiction under Chapter 135 of Title
1310.4 Incorporation of tariff provisions by 49 of the United States Code may pro-
reference. vide transportation or service for
1310.5 Availability of tariffs at carrier of- movements of household goods only if
fices. the rates, and related rules and prac-
1310.6 Furnishing copies of tariff publica-
tices, for such transportation or serv-
tions.
ice are contained in a published tariff
AUTHORITY: 49 U.S.C. 721(a), 13702(a), that is in effect under this section. The
13702(c) and 13702(d). carrier may not charge or receive a dif-
SOURCE: 62 FR 5171, Feb. 4, 1997, unless oth- ferent compensation for the transpor-
erwise noted. tation or service than the rate speci-
fied in the tariff, whether by returning
§ 1310.1 Scope; definitions. a part of that rate to a person, by giv-
(a) The provisions of this part ad- ing a person a privilege, by allowing
dress the tariff requirements imposed the use of a facility that affects the
by 49 U.S.C. 13702 on motor carriers and value of that transportation or service,
freight forwarders for the transpor- or through another device. Tariffs shall
tation of household goods, and the no- be published in the English language
tice requirements with which such car- and rates shall be stated in money of
riers must comply in order to be enti- the United States.
tled to enforce the provisions of their (b) Tariffs maintained pursuant to
tariffs against individuals whose ship- this part must be available for inspec-
ments are subject to such tariffs. tion by the Board, and must be pro-
(b) The provisions of this part apply vided to the Board promptly and free of
to all movements of household goods charge, upon request, by mail or other
defined in paragraph (c)(1) of this sec- delivery service.
tion, and to those movements of house- (c) A carrier that maintains a tariff
hold goods defined in paragraph (c)(2) pursuant to this part may not enforce
of this section that are not provided the provisions of the tariff unless the
under contracts entered into pursuant carrier has given notice that the tariff
to 49 U.S.C. 14101(b) or former 49 U.S.C. is available for inspection in its bill of
10702 (repealed January 1, 1996). lading or by other actual notice to in-
(c) For the purposes of this part, the dividuals whose shipments are subject
term household goods means personal to the tariff, as provided in § 1310.4 of
effects and property used or to be used this part.
in a dwelling, when a part of the equip- (d) The Board may invalidate a tariff
ment or supply of such dwelling, and prepared by or on behalf of a carrier
similar property if the transportation under this part if that tariff violates 49
of such effects or property is: U.S.C. 13702 or the regulations con-
(1) Arranged and paid for by the tained in this part.
householder, including transportation
of property from a factory or store § 1310.3 Contents of tariffs.
when the property is purchased by the (a) Tariffs prepared under this part
householder with intent to use in his or must include an accurate description of
her dwelling; or the services offered to the public; must
(2) Arranged and paid for by another provide the specific applicable rates,
party. charges and service terms; and must be
219
§ 1310.4 49 CFR Ch. X (10–1–07 Edition)
arranged in a way that allows for the and the shipper must be able to obtain
determination of the exact rate, a more complete explanation of such
charges and service terms applicable to terms upon request.
any given shipment. Increases, reduc- (i) Limits on the carrier’s liability
tions and other changes must be sym- for loss, damage, or delay of goods, in-
bolized or highlighted in some way to cluding fragile or valuable goods.
facilitate ready identification of the (ii) Claim restrictions, including
changes and their effective dates. time periods within which shippers or
(b) All information necessary to de- consignees must file a claim or bring
termine applicable rates, charges and an action against the carrier for its
service terms for a given shipment acts or omissions or those of its agents.
need not be contained in a single tariff, (iii) Rights of the carrier to impose
but if multiple tariffs are used to con- monetary penalties on shippers or con-
vey that information, the tariff consignees, increase the price of the trans-
taining the rates must make specific portation, or change any terms of the
reference to all other tariffs required contract.
to determine applicable rates, charges (b) A carrier may not claim the ben-
and service terms. The carrier(s) party efit as against a shipper or consignee
to the rate(s) must participate in all of of, and a shipper or consignee shall not
the tariffs so linked and all such tariffs be bound by, any tariff term that is in-
must be made available to shippers corporated by reference under this sec-
upon reasonable request. tion unless the carrier has complied
with the requirements of paragraph (a)
§ 1310.4 Incorporation of tariff provi- of this section.
sions by reference. (c) The disclosure requirements es-
(a) Carriers that maintain tariffs pur- tablished by this section preempt any
suant to this part may incorporate the State requirements on the same sub-
terms of such tariffs by reference (i.e., ject, for tariff terms that are incor-
without stating their full text) into the porated by reference into the bill of
bill of lading or other document em- lading or other document embodying
bodying the contract of carriage for the contract of carriage for the trans-
the transportation of household goods, portation of household goods.
provided that:
(1) The bill of lading or other docu- § 1310.5 Availability of tariffs at car-
ment must contain a conspicuous no- rier offices.
tice that the contract of carriage in- (a) Each carrier shall maintain, at its
corporates the terms of the carrier’s principal office, a complete set of its
tariffs; the carrier must give notice effective tariffs and those to which it is
that its tariffs are available for inspec- a party.
tion in its bill of lading or by other ac- (b) Each carrier shall also maintain
tual notice to individuals whose ship- some or all of its tariffs at its other
ments are subject to such tariffs; and business offices, upon request. Carriers
the carrier must make the full text of shall provide information regarding all
incorporated terms readily available locations where tariffs may be viewed.
for inspection by the shipper, free of (c) At all points where tariffs are
charge, upon request. If such terms maintained, they shall be made avail-
cannot be made available immediately, able for inspection by any person dur-
they must be made available promptly ing the carrier’s normal business
and free of charge by mail or other de- hours. The tariffs shall be accessible
livery service. and readable. The carrier shall also dis-
(2) If the incorporated terms include play, in a conspicuous place in those
any of the terms set forth in para- locations, a notice, in large print,
graphs (a)(2)(i) through (a)(2)(iii) of which contains a statement that the
this section, the notice on the bill of tariffs are available for public inspec-
lading or other document must indi- tion.
cate that such terms are included; the (d) At all other carrier business of-
shipper must be provided with a brief fices, the carrier shall display a notice
summary of the principal features of advising the public of the location of

such terms on or with the document; the nearest available tariff. The notice
220
shall be in large print and posted in a 1312.10 Notification of tariff changes and
conspicuous place. In addition, the car- nature of changes.
rier shall, upon request, make its tar- 1312.11 Special notification for ordered mat-
ter.
iffs available at that location as soon 1312.12 Posting requirements.
as possible but not later than within 20 1312.13 Furnishing copies of tariff publica-
days, or provide the sought informa- tions.
tion orally if satisfactory to the re- 1312.14 Powers of attorney and concur-
questor. rences.
(e) Any publication referred to in a 1312.15 Change of carrier or agent.
tariff must be maintained with that 1312.16 Substitution of service.
tariff. AUTHORITY: 49 U.S.C. 721(a), 13702(a),
(f) If any tariff maintained pursuant 13702(b) and 13702(d).
to paragraph (b) of this section has not SOURCE: 62 FR 19058, Apr. 18, 1997, unless
been used for a substantial length of otherwise noted.
time, the availability of that tariff, in-
cluding its reissues, may be discon- § 1312.1 Scope; definitions.
tinued at that office until such time as (a) Applicability. The provisions of
it is again requested. It shall then be this part address the requirements in
made available within 20 days. 49 U.S.C. 13702 that carriers subject to
the Board’s jurisdiction under 49 U.S.C.
§ 1310.6 Furnishing copies of tariff
publications. Chapter 135 and providing transpor-
tation or service for the movement of
(a) Copies of tariffs, specific tariff property (except bulk cargo, forest
provisions or tariff subscriptions shall products, recycled metal scrap, waste
be provided upon request to any inter- paper, and paper waste) by or with a
ested person. water carrier in noncontiguous domes-
(b) Except for providing to shippers tic trade shall publish and file with the
the full text of tariff terms incor- Board tariffs containing the rates for
porated by reference into the bill of such transportation.
lading or other document embodying (b) Exceptions. The provisions of this
the contract of carriage for the trans- part do not apply to:
portation of household goods, as de- (1) Any transportation or service pro-
scribed in § 1310.4(a)(1), carriers may as- vided by a carrier pursuant to 49 U.S.C.
sess charges for furnishing copies of 14101(b); or
tariff publications to interested per- (2) The transportation of any cargo
sons. If a charge is made, the charge or type of cargo or service which was
must be reasonable, and identical for not subject to regulation by, or under
the same publications and delivery the jurisdiction of, either the Federal
service. Maritime Commission (FMC) or the
Interstate Commerce Commission
PART 1312—REGULATIONS FOR THE under Federal law in effect on Novem-
PUBLICATION, POSTING AND FIL- ber 1, 1995.
ING OF TARIFFS FOR THE TRANS- (c) Definitions. For the purposes of
PORTATION OF PROPERTY BY OR this part:
WITH A WATER CARRIER IN NON- Act means part B of subtitle IV of
title 49 of the United States Code.
CONTIGUOUS DOMESTIC TRADE Agent means a person, association or
corporation authorized to publish and
Sec.
1312.1 Scope; definitions. file rates and provisions on behalf of
1312.2 Requirement to publish and file a tar- one or more carriers in tariffs pub-
iff. lished in the agent’s name.
1312.3 Tariff contents and standards; Essen- Agent’s tariff means a tariff filed in
tial criteria. the name of an agent.
1312.4 Filing of tariffs. Board means the Surface Transpor-
1312.5 Amendments to tariffs. tation Board.
1312.6 Advance notice required.
1312.7 STB tariff designation. Bound tariff means a tariff consisting
1312.8 Identification of tariff publication. of two or more sheets bound at the left
1312.9 Statement of tariff application and edge in pamphlet or book form or a sin-
other title page requirements. gle-sheet tariff.
221
§ 1312.2 49 CFR Ch. X (10–1–07 Edition)
Carrier means a motor carrier, water edge in pamphlet or book form, identi-
carrier or freight forwarder subject to fied as a supplement and published to
the Board’s jurisdiction under 49 U.S.C. amend or cancel a bound or looseleaf
Chapter 135. tariff.
Carrier’s tariff means a tariff filed in Tariff means an issuance (in whole or
the name of a carrier. in part) bearing designations required
Collectively established tariff matter by this part and containing rates,
means a rate, charge, rule or other tar- rules, regulations, classifications or
iff provision established pursuant to 49 other provisions published and filed
U.S.C. 13703. with the Board for compliance with 49
Independently established tariff matter U.S.C. 13702.
means any rate, charge, rule or other
tariff provision not established pursu- [62 FR 19058, Apr. 18, 1997, as amended at 64
ant to 49 U.S.C. 13703. FR 5195, Feb. 3, 1999]
Item means a tariff provision of any
kind bearing an item number designa- § 1312.2 Requirement to publish and
file a tariff.
tion.
Joint rate means a rate that applies (a) Requirement for tariff. Except when
over the lines or routes of two or more providing transportation for charitable
carriers made by an agreement be- purposes without charge, or when pro-
tween the carriers and effected by a viding transportation or service de-
concurrence or power of attorney. scribed in § 1312.1(b), carriers subject to
Joint tariff means a tariff that con- the Board’s jurisdiction under 49 U.S.C.
tains joint rates or provisions affecting Chapter 135 may provide transpor-
joint rates. tation or service described in § 1312.1(a)
Local rate means a rate that applies only if the rates, and related rules and
only to one carrier. practices, for such transportation or
Local tariff means a tariff that con- service are contained in a published
tains local rates or provisions affecting tariff that is on file with the Board and
local rates. in effect under this part.
Looseleaf page means a single page (b) Adherence to tariff. The carrier
published as part of a new or reissued may not charge or receive a different
looseleaf tariff or as an amendment to compensation for the transportation or
such a tariff. service than the rate specified in the
Looseleaf tariff means a tariff con- tariff, whether by returning a part of
sisting of looseleaf pages. that rate to a person, giving a person a
Noncontiguous domestic trade means privilege, allowing the use of a facility
transportation subject to jurisdiction that affects the value of that transpor-
under 49 U.S.C. Chapter 135 involving
tation or service, or another device.
traffic originating in or destined to
The carrier shall keep such tariffs
Alaska, Hawaii, or a territory or pos-
available for public inspection and
session of the United States.
shall make such tariffs available to
Original tariff means a bound or
subscribers as required in this part.
looseleaf tariff as originally filed ex-
cluding amendments. (c) Other information. Provisions for
Page means that portion of a tariff or information purposes only may be in-
supplement printed on one side of a cluded in a tariff, provided they are
sheet. clearly identified as such. Such provi-
Post refers to making filed tariffs sions may include rates and service
available to the public. terms covering transportation not sub-
Publication means a bound tariff, a ject to regulation by the Board, and ad-
tariff supplement, or a looseleaf tariff vertising and promotional material.
page. (d) Effect of filing. The tender of a tar-
Rate means a rate or charge. iff and its receipt and acceptance by
Service terms mean all classifications, the Board do not relieve a carrier of li-
rules and practices that affect the ability for violations of the Act, other
rates or level of service. laws, the Board’s regulations, or any
Supplement means a single sheet, or decision of the Board or a court, or

two or more sheets bound at the left have any effect on the rights of persons
222
to file complaints for substantive vio- (d) Explanations. Reference marks

lations of the Act or the Board’s regu- and abbreviations, other than com-
lations. monly used abbreviations, shall be ex-
(e) Tariff relief. Relief from the provi- plained either in the item in which
sions of this part may be sought. Re- they are used or in a separate item.
quests for such relief shall be sub-
mitted in duplicate and accompanied § 1312.4 Filing of tariffs.
by the appropriate fee (see 49 CFR part (a) Filing requirements. (1) Tariffs
1002). Packages containing applications shall be filed in English with rates ex-
for relief shall be prominently marked plicitly stated in U.S. dollars and
‘‘SPECIAL TARIFF AUTHORITY AP- cents. Two copies of each tariff publi-
PLICATION.’’ The application shall
cation shall be filed with the Board.
cite all pertinent tariff matter and
Packages containing tariff filings
shall provide complete information re-
should be prominently marked ‘‘TAR-
garding applicant’s justification, pur-
IFF FILING’’ and addressed to: Section
pose and manner of relief sought.
of Tariffs, Surface Transportation
(f) Invalidation of tariffs. Tariffs that
violate section 13702 of the Act, or a Board, 1925 K Street, NW., Washington,
regulation of the Board carrying out DC 20423–0001.
that section, may be invalidated by the (2) A tariff filing must be accom-
Board. When a tariff is invalidated, the panied by an authorized document of
party that filed it will be furnished a transmittal identifying each publica-
written explanation of the reasons for tion filed, and by the appropriate filing
such action. Tariffs issued in lieu of in- fee (see 49 CFR part 1002). Acknowledg-
validated tariffs shall so state. ment of Board receipt of a tariff filing
can be obtained by enclosing a dupli-
§ 1312.3 Tariff contents and standards; cate transmittal letter and a postage-
Essential criteria. paid, self-addressed return envelope.
(a) Contents. Tariffs filed with the Each transmittal letter shall clearly
Board must include an accurate de- indicate in the upper left-hand corner
scription of the services offered to the thereof:
public; must provide the specific appli- (i) The assigned alpha code of the
cable rates (or the basis for calculating issuing carrier or agent;
the specific applicable rates) and serv- (ii) The number of pages transmitted;
ice terms; and must be arranged in a (iii) The filing fee enclosed, the ac-
way that allows for the determination count number to be billed, or the credit
of the exact rate(s) and service terms card to be charged;
applicable to any given shipment (or to (iv) The transmittal number if the
any given group of shipments). filer utilizes transmittal numbers; and
(b) Use of multiple tariffs. All informa-
(v) If the filing fee is charged to a
tion necessary to determine applicable
credit card, the credit card number and
rates and service terms for a given
expiration date, and an authorized sig-
shipment need not be contained in a
nature.
single tariff, but if multiple tariffs are
used to convey that information, the (b) Paper size. Tariffs shall be printed
tariff containing the rates must make on paper not larger than 81⁄2×11 inches.
specific reference (by STB tariff des-
§ 1312.5 Amendments to tariffs.
ignation) to all other tariffs required
to determine applicable rates and serv- (a) Manner of making changes. An
ice terms, and the carrier(s) party to amendment is a change in, addition to,
the rates must participate in all of the or cancellation of part of a tariff. Sup-
tariffs so linked. plements are the tariff publications
(c) Clarity. Tariff information must used to amend bound tariffs, and new
be presented in a way that facilitates or revised pages are the tariff publica-
the determination of the prices and tions normally used to amend looseleaf
services offered, and the related service tariffs, although looseleaf tariffs can
terms. Ambiguous terms and complex also be amended by supplements. Tar-
methods of presentation shall not be iffs can also be canceled by new or re-
used. issued tariffs (see § 1312.7).
223
§ 1312.6 49 CFR Ch. X (10–1–07 Edition)
(b) Supplements. Supplements issued in a tariff (other than the cancellation

to amend a tariff shall be consecu- of a carrier’s participation), an exten-
tively numbered. Each new supplement sion of the expiration date of tariff
shall identify any supplement(s) that it matter, or a postponement of the effec-
cancels, and any supplement(s) that tive date of proposed tariff matter.
are still in effect. A tariff amendment (c) Receipt of tariffs by the Board. The
published in a supplement may be car- Board will receive tariff filings be-
ried forward to later supplements if it tween the hours of 8:30 A.M. and 5:00
is identified as reissued without change P.M. Eastern Time on workdays. Tariff
from the supplement in which it was filings delivered to the Board on other
originally published. than a workday, or after 5:00 P.M. on a
(c) Looseleaf pages. Looseleaf pages to workday, will be considered as received
an original tariff shall be designated as the next workday.
‘‘Original’’ (e.g., Original Title Page, (d) Definitions. For the purposes of
Original Page 1, Original Page 2, etc.). this section:
Looseleaf pages issued to amend the Increased means any tariff change
tariff shall bear consecutive revision that results in higher charges to the
numbers and shall cancel the prior payer of freight charges or reduced
version(s) of the same page (e.g., 1st service at the same rate;
Revised Page 1 Cancels Original Page 1, New means an initial rate or other
2nd Revised Page 1 Cancels 1st Revised provision for a new service;
Page 1, etc.). Additional original pages Reduced means any tariff change that
may also be issued to amend a tariff, results in lower charges to the payer of
by adding new numbered pages after freight charges or expanded service at
the last numbered page, or by adding the same rate; and
existing numbered pages with alpha- Workdays means all days except Sat-
betic suffixes (e.g., a page designated urdays, Sundays and all Federal holi-
as Original Page 2–A could be added be- days observed in the District of Colum-
tween pages 2 and 3, etc.). Each loose- bia.
leaf tariff shall include a Check Sheet,
a Correction Number Check Sheet, or [62 FR 19058, Apr. 18, 1997, as amended at 64
some other method of determining the FR 5195, Feb. 3, 1999]
looseleaf pages issued to amend such
tariff. § 1312.7 STB tariff designation.
(a) Format. Every tariff shall show an
§ 1312.6 Advance notice required. authorized tariff designation consisting
(a) Notice requirement. Unless other- of:
wise specifically authorized by the (1) The characters ‘‘STB’’;
Board, tariffs must be filed with the (2) The assigned alpha code of the
Board on not less than the notice carrier or agent issuing the tariff; and
shown in paragraph (b) of this section. (3)(i) The tariff number (selected by
Notice means the number of days the the carrier or agent) to distinguish
publication is on file with the Board that tariff from all other tariffs filed
prior to its effective date(s). The date by the same issuing carrier or agent.
the publication is received by the Tariff numbers shall not exceed 5 nu-
Board counts as the first day of notice. merical digits and may be followed by
(b) Length of notice. A tariff may not not more than 2 letter suffixes. Exam-
become effective earlier than: ples of tariff numbers are:
(1) Thirty days after filing for all col-
STB XXXX 100
lectively established tariff matter.
STB XX 8000–A
(2) Seven workdays after filing for
STB XXXX 12345–AB
independently established increased
tariff matter. (ii) Suffixes may be used only to des-
(3) Upon filing for independently es- ignate reissues of tariffs. As an exam-
tablished new tariff matter, independ- ple, a reissue of tariff 1000 could be des-
ently established reduced tariff matter, ignated 1000–A, a reissue of tariff 1000–
the addition or restoration of a car- A could be designated 1000–B, etc.
rier’s participation in a tariff, a correc- (b) Alpha codes. Alpha codes are as-
tion to the list of participating carriers signed to carriers and tariff agents by
224
the National Motor Freight Traffic As- § 1312.10 Notification of tariff changes
sociation, Inc., 2200 Mill Road, Alexan- and nature of changes.
dria, VA 22314. Every publication filed with the
(c) Fees for assignment. Fees may be Board containing tariff changes shall
assessed for the assignment of codes, clearly identify such changes and their
but may not exceed the processing nature (whether an increase or de-
costs. crease in service, rates or transpor-
(d) Code listing. A list of the assigned tation charges).
alphabetical codes, and the names of
the carriers and agents to which they § 1312.11 Special notification for or-
are assigned, as well as subsequent dered matter.
changes to the list, shall be submitted Every tariff publication containing
to the Board’s Section of Tariffs. matter filed in compliance with a
Board decision or court order shall in-
§ 1312.8 Identification of tariff publica- dicate in the publication the relevant
tion. decision or order, and as well the num-
(a) Every tariff publication filed with ber of days’ notice authorized or re-
the Board shall include: quired.
(1) The STB tariff designation; § 1312.12 Posting requirements.
(2) The name of the issuing carrier or
agent; (a) General posting requirements. (1)
Each carrier shall maintain, at its
(3) The name of the tariff; and
principal office, a complete set of its
(4) The issue and effective dates of tariffs (proposed and effective) and
the publication. those to which it is a party.
(b) If the publication contains matter (2) Each carrier shall also maintain
effective on other than the general ef- some or all of its tariffs at other loca-
fective date, the notation (Except as tions, as may be useful. Carriers shall
Noted) shall be included with the gen- provide information regarding all loca-
eral effective date. tions where tariffs may be viewed.
(3) At all points where tariffs are
§ 1312.9 Statement of tariff application posted, they shall be made available
and other title page requirements. for inspection by any person during the
Every new or reissued tariff or sup- carrier’s normal business hours. The
plement filed with the Board shall lead tariffs shall be accessible and readable.
with a title page. The title page of each The carrier shall also post, in a con-
tariff or supplement shall include the spicuous place in those locations, a no-
expiration date of the tariff or supple- tice, in large print, which contains a
ment, if applicable. The title page of statement that the tariffs are available
each tariff shall also provide the com- for public inspection.
plete name and address of the issuing (4) At all other carrier business of-
carrier or agent; a contact person and fices, the carrier shall display a notice
telephone number; the certificate or advising the public of the location of
operating authority number, if applica- the nearest available tariff. The notice
ble; and a succinct statement of terri- shall be in large print and posted in a
conspicuous place. In addition, the car-
torial application, mode of serving car-
rier shall, upon request, make par-
rier(s), type of rates, and description of
ticular tariffs available at that loca-
tariff content. EXAMPLES: tion as soon as possible but not later
(a) Local water carrier rates on than within 20 days, or provide the
FREIGHT, ALL KINDS from points in sought information orally if satisfac-
Alaska to points in the United States. tory to the requestor.
(b) Joint motor/water commodity (5) Any publication referred to in a
rates in containerized service between tariff must be posted with that tariff.
interior points in the United States (b) Exception to the posting require-
and ports in Puerto Rico and Hawaii; ments. If any tariff maintained pursu-
and governing rules.
ant to paragraph (a)(2) of this section

has not been used for a substantial
225
§ 1312.13 49 CFR Ch. X (10–1–07 Edition)
length of time, the posting of that tar- § 1312.14 Powers of attorney and con-
iff, including its reissues, may be dis- currences.
continued at that station until such
(a) Authorization. Rates and services
time as a request is made to have it re-
of a carrier must be filed in a tariff
posted. It shall then be reposted within
issued in that carrier’s name unless
20 days.
they are filed:
§ 1312.13 Furnishing copies of tariff (1) In an agent’s tariff when the car-
publications. rier has executed a power of attorney
(a) Definitions. Subscriber, as used in authorizing that individual or entity to
this section, means any person (other serve as its tariff agent; or
than carrier participants in a tariff) (2) In a tariff of another carrier
that is voluntarily furnished, or that through issuance of a concurrence to
requests that it be furnished, one or the latter carrier authorizing the first
more copies of a particular tariff with carrier’s participation in joint rates
or without subsequent amendments or and through routes.
reissues of that tariff. (b) Disclosure of authorization. If two
(b) Sending new publications to sub- or more carriers execute powers of at-
scribers. (1) The publishing carrier or torney to the same agent, it is not nec-
agent shall send each newly-issued tar- essary for those carriers to exchange
iff, supplement, or loose-leaf page as concurrences to participate in joint
requested to each subscriber by first rates in that agent’s tariffs. Powers of
class mail, or other means requested in attorney and concurrences are not to
writing by the subscriber. be filed with the Board, but shall be
(2) Newly-issued tariffs, supplements, provided to any person on request.
or loose-leaf pages shall be sent to each
subscriber not later than the time the § 1312.15 Change of carrier or agent.
copies for official filing are sent to the (a) Change in carrier. When a carrier’s
Board. name is lawfully changed, or a fidu-
(3) Carriers or agents may, if accept- ciary assumes possession and control of
able to a subscriber, furnish only spe- a carrier’s property, all affected tariffs
cific portions of original tariffs and must be amended to reflect the change.
amendments affecting those portions. The amendments required by this para-
(c) Certification. The letter of trans- graph shall be filed promptly and, if
mittal accompanying the copies filed possible, prior to their effective date,
with the Board shall contain the fol- but in no case later than 60 days there-
lowing certification:
after. Regardless of the date the tariff
I certify that compliance with 49 CFR is actually filed, the effective date for
1312.13 has been made. an amendment required by this para-
(d) Charges. (1) If any charge is made, graph is the date the event occurs.
the charge for copies of tariff publica- (b) Change of agent. When a new
tions sent to subscribers shall be rea- agent is appointed to take over an
sonable, and identical for the same agency, or when an alternate agent as-
publications. sumes the duties of the principal agent,
(2) No charge may be made (even for each of the superseded agent’s effective
the cost of sending the publication) for tariffs shall immediately be amended
any publication that is invalidated by to reflect the change, bearing an effec-
the Board. tive date the same as the date of the
(e) Notice of invalidation. If a publica- transfer. In the case of a new agent,
tion is invalidated, the subscribers this may only occur after one or more
shall be notified. of the participating carriers issues a
(f) Alternative subscription services. power of attorney to the new agent,
The service described in this section and revokes the previous power of at-
must be available to any subscriber re- torney. At the same time, all affected
questing it; however, the requirement tariffs will be amended to reflect the
to offer such service does not preclude new powers of attorney, and all car-
the offering of different services to sub- riers who have not issued them must be
scribers requesting those services. canceled from the tariff.
226
§ 1312.16 Substitution of service. lation pursuant to an exemption issued

If a water or motor carrier (hereafter under 49 U.S.C. 10502 or former 49
referred to as Carrier A) desires to have U.S.C. 10505 (repealed effective January
the option of substituting the services 1, 1996).
of a carrier of a different transpor- (c) For purposes of this part, the
tation mode (hereafter referred to as term contract means an agreement, in-
Carrier B) for part of its movement of cluding any amendment thereto, en-
a shipment, it may do so if: tered into by one or more rail carriers
(a) The shipment moves on the bill of and one or more purchasers of rail
lading that would be used if Carrier A services to provide specified transpor-
were performing the service; tation of agricultural products (includ-
(b) Carrier A assumes the responsi- ing grain, as defined in 7 U.S.C. 75 and
bility for the lading while it is in the products thereof) under specified rates
possession of Carrier B; and and conditions. The term amendment
(c) Movement of the lading has been includes contract modifications agreed
made prior to, or will be made subse- to by the parties.
quent to, the service performed by Car- (d) An amended contract is treated as
rier B. a new contract under this part. Rem-
edies are revived and review is again
PART 1313—RAILROAD CON- available, upon complaint.
TRACTS FOR THE TRANSPOR- § 1313.2 Contract summary filing re-
TATION OF AGRICULTURAL quirement.
PRODUCTS (a) Rail carriers subject to the juris-
diction of the Surface Transportation
Sec. Board under 49 U.S.C. 10501 must
1313.1 Scope; definition of terms.
1313.2 Contract summary filing require-
promptly file with the Board a sum-
ment. mary of each contract entered into for
1313.3 Board review; contract disapproval. the transportation of agricultural
1313.4 Filing procedures and formats for products.
contract summaries. (b) Contract summaries not in com-
1313.5 Contract and contract summary pliance with this part may be rejected
availability. by the Board. If a contract summary is
1313.6 Contract summary for agricultural
commodities.
rejected, it will be considered as not
1313.7 Contract summary for grain prod- filed, and the carrier must promptly
ucts—involving a port. file a corrected contract summary to
1313.8 Contract summary for grain prod- replace the rejected summary.
ucts—not involving a port.
1313.9 Grounds for complaints and contract § 1313.3 Board review; contract dis-
review. approval.
1313.10 Procedures for complaints and dis-
(a) Board review. (1) No later than 30
covery.
days after a contract summary is filed,
AUTHORITY: 49 U.S.C. 721(a) and 10709. the Board may, on complaint, begin a
SOURCE: 61 FR 68669, Dec. 30, 1996, unless proceeding to review such contract on
otherwise noted. the grounds described in § 1313.9.
(2) If the Board begins a proceeding,
§ 1313.1 Scope; definition of terms. it shall determine, within 30 days after
(a) This part addresses the provisions the proceeding is commenced, whether
of 49 U.S.C. 10709 that require rail car- the contract is in violation of 49 U.S.C.
riers to file with the Board a summary 10709.
of each contract for the transportation (b) Contract disapproval. If the Board
of agricultural products (including finds that the contract is in violation
grain, as defined in 7 U.S.C. 75 and of 49 U.S.C. 10709, it will:
products thereof) and that allow com- (1) Disapprove the contract; or
plaints to be filed with the Board re- (2) Where the Board finds unreason-
garding such contracts. able discrimination, in accordance
(b) The provisions of this part do not with 49 U.S.C. 10709(g)(2)(B)(i), order
apply to any transportation that is ex- the contracting carrier(s) to provide to

empted from the Board’s contract regu- the complainant(s) rates and service
227
§ 1313.4 49 CFR Ch. X (10–1–07 Edition)
substantially similar to those con- amendment number if an amended con-

tained in the contract at issue, with tract summary.
such differences in terms and condi- (2) In the center of the page, the fil-
tions as are justified by the evidence. ing carrier’s name, followed by the
(c) Applicable rates/charges if a con- words ‘‘CONTRACT SUMMARY’’ or
tract is disapproved. If the Board dis- ‘‘AMENDED CONTRACT SUMMARY’’,
approves a contract (or contract as applicable, in large print.
amendment), the appropriate non-con- (3) Date of contract and its effective
tract rates/charges (or the contract date.
provisions otherwise in effect) will be (4) In the center lower portion, the
applicable. individual submitting the filing, and
the name of the individual(s) for serv-
§ 1313.4 Filing procedures and formats ice of complaints (if not the same indi-
for contract summaries.
vidual). If not otherwise noted, a com-
(a) Filing of Summaries. (1) Two copies plainant may rely on service to the in-
of each contract summary, containing dividual submitting the filing.
the applicable information specified in (c) Contract summary numbering sys-
§§ 1313.6, 1313.7, or 1313.8, as appropriate, tem. (1) The contract summary identi-
must be filed with the Board as soon as fication number must include the word
possible, but no longer than 7 days ‘‘STB,’’ the standard carrier alphabetic
after the date of the contract (or con- code for the filing railroad (limited to
tract amendment). four letters), the letter ‘‘C,’’ and a se-
(2) The outside envelope or wrapper quential number, with each separated
containing one or more contract sum- by a hyphen. The following is an exam-
maries must be prominently marked ple: the 357th contract summary filed
‘‘Rail Contract Summary’’ and ad- by the Conrail would have the fol-
dressed to: Tariffs Branch, Surface lowing identification number: ‘‘STB-
Transportation Board, Washington, DC CR-C-357.’’
20423. (2) At its option, the carrier may
(3) A transmittal letter identifying issue contract summaries with non-
the submitted publication(s), and the consecutive numbers if it assigns
name and telephone number of a con- blocks of numbers for specific uses. An
tact person, must accompany each fil- index to the blocks of reserved num-
ing of one or more contract summaries. bers shall be filed with the Board.
Each transmittal letter shall clearly (d) Format requirements for contract
indicate in the upper left-hand corner summary information. (1) The contract
thereof: summary must enumerate and have
(i) The assigned alpha code of the fil- each item required in §§ 1313.6, 1313.7 or
ing carrier; 1313.8 of this part, as applicable, com-
(ii) The number of summaries trans- pleted. When the item does not pertain
mitted; to the contract, the term ‘‘Not Appli-
(iii) The filing fee enclosed, the ac- cable’’ (‘‘NA’’) shall be used.
count number to be billed, or the credit (2) Changes in prior contract sum-
card to be charged; maries must be underscored and must
(iv) The transmittal number if the be followed by the words ‘‘addition,’’
filer utilizes transmittal numbers; and ‘‘deletion,’’ ‘‘extension,’’ ‘‘cancella-
(v) If the filing fee is charged to a tion,’’ or other appropriate descriptive
credit card, the information must in- phrase in parentheses. If the change to
clude the credit card number and expi- the contract is only in confidential
ration date, and an authorized signa- matter, a statement to that effect
ture. must be made in the amended contract
(b) Contract summary title page. The summary and must indicate the par-
title page of each contract summary ticular feature to which the change ap-
must contain only the following infor- plies (i.e., rate, special feature, etc.). If
mation: ‘‘not applicable’’ is permitted in the
(1) In the upper right corner, the con- original summary under §§ 1313.6
tract summary number (see paragraph through 1313.8 of this part, the amend-
(c) of this section), followed by the ed summary may use ‘‘not applicable’’
228
with a notation that a change per- applies. Vague descriptions such as

tained only to confidential data. ‘‘various points in Kansas’’ are not ac-
(3) Amended contract summaries ceptable. Broad geographic descrip-
may not substitute phrases such as tions such as ‘‘all stations in Kansas’’
‘‘not applicable’’ or ‘‘no change’’ where are permitted only to the extent such
disclosure was required in the original terms are actually used in the contract
contact summary (such as in the com- and such origins and destinations are
modity description); amended contract subject to specific identification by ref-
summaries must set forth all required erence to available publications.
non-confidential terms in the contract, (ii) Each port involved.
whether amended or not. (iii) Each transit point identified in
the contract.
§ 1313.5 Contract and contract sum- (iv) Each shipper facility affecting
mary availability. performance under the contract (if not
(a)(1) A contract summary filed included in the origin/destination
under these rules shall be made avail- points or transit points), to the extent
able for public inspection in the Tariffs identified in the contract or known to
Branch of the Surface Transportation the contracting parties.
Board. (5) Contract duration. (i) The date on
(2) A contract summary filed under which the contract has or will become
these rules also shall be made available applicable to the transportation serv-
by the carrier(s) participating in the ices covered by the contract.
contract, upon reasonable request. (ii) The termination date of the con-
(b) Where not already required by tract, and any terms for automatic ex-
§ 1313.10(a)(5) of this part, the contract tension or renewal of the contract.
for which a summary is filed under (iii) Any provisions for optional ex-
these rules shall be provided imme- tension.
diately to the Board, upon request, for (6) Rail car data. (i) Either the infor-
its use in carrying out its functions mation in paragraph (a)(6)(A) of this
under the statute. section or the certified statement in
paragraph (a)(6)(B) of this section as
§ 1313.6 Contract summary for agricul- follows:
tural commodities. (A) The number of dedicated cars (or,
(a) Summary information. The sum- at the carrier’s option, car days), by
mary of a contract for the transpor- major car type, to be used to fulfill the
tation of agricultural commodities contract or contract options, including
must contain the following informa- those that are:
tion: (1) Available and owned by the car-
(1) Carrier names. A list, alphabeti- rier(s) listed in paragraph (a)(1) of this
cally arranged, of the corporate names section;
of all carriers that are parties to the (2) Available and leased by those car-
contract, and their addresses for serv- rier(s), with average number of bad-
ice of complaints. order cars identified; and
(2) Specific commodity. The specific (3) (Optional) On order (for ownership
commodity or commodities to be or lease), along with delivery dates.
transported under the contract. Vague (B) A certified statement that:
commodity descriptions such as (1) The shipper will furnish the rail
‘‘grain’’ are not permitted, even if that cars used for the transportation pro-
is the commodity description in the vided under the contract, and that
contract. those rail cars will not be leased from
(3) Shipper identity. The specific iden- the carrier; or
tity of the shipper party to the con- (2) The contract is restricted to serv-
tract, as well as any other party or par- ices which do not entail car supply.
ties on whose behalf that shipper is (ii) For contract summaries filed on
acting (to the extent known). or before September 30, 1998, a certified
(4) Specific origins, destinations, transit statement that the cumulative equip-
points, and other shipper facilities. (i) ment total for all contracts for the
Each specific origin and destination transportation of agricultural com-

point to and from which the contract modities (including forest products,
229
§ 1313.7 49 CFR Ch. X (10–1–07 Edition)
but not including wood pulp, wood scriptions such as ‘‘grain products’’ are
chips, pulpwood or paper) does not ex- permitted only to the extent that is
ceed 40 percent of the capacity of car- the commodity description in the con-
rier-owned and -leased cars by applica- tract.
ble car type. (3) Contract duration. (i) The date on
(7) Rates and charges. (i) The specific which the contract has or will become
base rates and/or charges that would applicable to the transportation serv-
apply without the contract. ices covered by the contract.
(ii) A summary of any escalation pro- (ii) The termination date of the con-
visions in the contract. tract, and any terms for automatic ex-
(8) Volume. All volume, car and/or tension or renewal of the contract.
train size requirements, as set forth in (4) Rates and charges. (i) The specific
the contract, including: base rates and/or charges that would
(i) Movement type (single-car, mul- apply without the contract.
tiple-car, unit-train). (ii) The existence (but not the terms
(ii) Minimum and actual volume re- or amount) of any escalation provi-
quirements under the contract, by ap- sions.
plicable period(s) (annual, quarterly, (5) Volumes. The existence (but not
etc.). the terms or amount) of any provisions
(iii) Volume breakpoints affecting regarding movement type (e.g. single-
the contract. car, multiple-car, unit-train) or min-
(9) Special features. The existence (but imum volume requirements.
not the terms or amount) of any spe- (6) Special features. The existence (but
cial features, such as transit-time com- not the terms or amount) of special
mitments, credit terms, discounts, features such as transit time commit-
switching, special demurrage, guaran- ments, guaranteed car supply, min-
teed or minimum percentages, etc. imum percentage of traffic require-
(b) Supplemental information. In the ments, credit terms, discounts, etc.
event a complaint is filed that is di- (7) Rail car data. Either the informa-
rected at a carrier’s ability to fulfill its tion in paragraph (a)(7)(i) of this sec-
common carrier obligation with car- tion or the certified statement in para-
rier-furnished cars, the carrier(s) shall graph (a)(7)(ii) of this section as fol-
immediately supplement the informa- lows:
tion contained in the contract sum- (i) The number of dedicated cars (or,
mary by submitting to the Board, and at the carrier’s option, car days), by
supplying to the complainant, addi- major car type, to be used to fulfill the
tional data on the cars used to fulfill contract or contract options, including
the challenged contract. This addi- those that are:
tional data shall include (by major car (A) Available and owned by the car-
type used to fulfill the contract): rier(s) listed in paragraph (a)(1) of this
(1) Total bad-car orders; section;
(2) Assigned car obligations; and (B) Available and leased by those car-
(3) Free-running cars. rier(s), with average number of bad-
order cars identified; and
§ 1313.7 Contract summary for grain (C) (Optional) On order (for owner-
products—involving a port. ship or lease), along with delivery
(a) Summary information. The sum- dates.
mary of a contract for the transpor- (ii) A certified statement that:
tation of grain products that involves (A) The shipper will furnish the rail
service to or from a port must contain cars used for the transportation pro-
the following information: vided under the contract, and that
(1) Carrier names. A list, alphabeti- those rail cars will not be leased from
cally arranged, of the corporate names the carrier; or
of all carriers that are parties to the (B) The contract is restricted to serv-
contract, and their addresses for services which do not entail car supply.
ice of complaints. (8) Ports. (i) The port(s) involved.
(2) Specific commodity. The specific (ii) Either the mileages (rounded to
commodities to be transported under the nearest 50 miles) between the port

the contract. Broad commodity de- and each inland origin or destination,
230
or the specific inland origin and des- per individually will be harmed be-
tination points. cause:
(b) Supplemental information. In the (i) The rail carrier has unreasonably
event a complaint is filed that is di- discriminated by refusing to enter into
rected at a carrier’s ability to fulfill its a contract with such shipper for rates
common carrier obligation with car- and services for the transportation of
rier-furnished cars, the carrier(s) shall the same type of commodity under
immediately supplement the informa- similar conditions to the contract at
tion contained in the contract sum- issue, and that such shipper was ready,
mary by submitting to the Board, and willing, and able to enter into such a
supplying to the complainant, addi- contract at a time essentially contem-
tional data on the cars used to fulfill poraneous with the period during
the challenged contract. This addi- which the contract at issue was of-
tional data shall include (by major car fered; or
type used to fulfill the contract): (ii) The contract constitutes a de-
(1) Total bad-car orders; structive competitive practice.
(2) Assigned car obligations; and (b) Unreasonable discrimination, for
(3) Free-running cars. purposes of paragraph (a)(3)(i) of this
section, has the same meaning as the
§ 1313.8 Contract summary for grain term has under 49 U.S.C. 10741.
products—not involving a port.
(a) Summary information. The sum- § 1313.10 Procedures for complaints
mary of a contract for the transpor- and discovery.
tation of grain products that does not (a) Complaints, discovery petitions, re-
involve service to or from a port must plies, and appeals—(1) Initial filing. Com-
contain the information specified in plaints must be filed by the 18th day
§ 1313.7, paragraphs (a)(1), (2), (3) and after the contract summary is filed.
(7). It must also contain the informa- Any discovery petition must accom-
tion specified in § 1313.7(a)(6) if the con- pany the complaint.
tract contains such terms. (2) Complaint. A complaint must con-
(b) Supplemental information. In the tain the correct, unabbreviated names
event a complaint is filed that is di- and addresses of the complainant(s)
rected at a carrier’s ability to fulfill its and defendant(s). The complainant
common carrier obligation with car- must set out the statutory provisions
rier-furnished cars, the carrier(s) shall under which it has standing to file a
immediately supplement the informa- complaint, and its reasons for request-
tion contained in the contract sum- ing that the Board find the challenged
mary by submitting to the Board, and contract unlawful.
supplying to the complainant, addi- (3) Discovery petition. A discovery pe-
tional data specified in § 1313.7(b). tition must note on the front page
‘‘Petition for Discovery of Rail Con-
§ 1313.9 Grounds for complaints and tract’’ and note the contract (and any
contract review. applicable amendment) number. It
(a) A complaint may be filed against should provide the following informa-
a contract covered by this part: tion:
(1) By any shipper on the ground that (i) Standing—grounds. The ground
such shipper individually will be upon which the petitioner’s complaint
harmed because the contract unduly is based under § 1313.9.
impairs the ability of the contracting (ii) Standing—affected party. Perti-
rail carrier or carriers to meet their nent information regarding the peti-
common carrier obligations to the tioner’s actual or potential participa-
complainant under 49 U.S.C. 11101; tion in the relevant market, including:
(2) By a port on the ground that such (A) The nature and volume of peti-
port individually will be harmed be- tioner’s relevant business.
cause the contract will result in unrea- (B) The relevant commodities that
sonable discrimination against such petitioner ships or receives.
port; and (C) Comparisons of the petitioner’s
(3) By a shipper of agricultural com- commodities, locations of shipping fa-

modities on the ground that such ship- cilities and serving carriers, actual or
231
§ 1313.10 49 CFR Ch. X (10–1–07 Edition)
potential traffic patterns and serving (i) An appeal must be received within
carrier(s), with the traffic patterns and 2 days of the initial decision, but in no
serving carrier(s) identified in the con- event later than the 28th day after the
tract summary. State whether peti- contract summary is filed.
tioner is a consignor or consignee. (ii) The appeal must be marked ‘‘Ap-
(D) The petitioner’s ability to ship peal of Delegated Authority Action Re-
the commodity in question at a time garding Rail Contract Discovery’’.
generally simultaneous with the chal- (iii) Telegraphic notice or its equiva-
lenged contract. lent must be given to the opposing par-
(E) The potential effect of the con-
ties.
tract on the petitioner’s relevant busi-
ness. (iv) Replies to the appeal must be
(F) Any additional supporting infor- filed within one day after the appeal is
mation, including prior negotiations, if filed.
any. (v) An original and 10 copies of ap-
(iii) Relevance. The relevance of the peals and replies must be filed with the
information sought to the petitioner’s Board.
challenge to the contract. (9) Furnishing of information. If dis-
(iv) Nexus. Where the complaint chal- covery is granted, the carrier must fur-
lenges a carrier’s ability to perform its nish the required information to the
common carrier obligation, the nexus petitioner by the 1st working day after
between the information sought and the Board issues its decision.
the common carrier obligation of the (b) Informal discovery. (1) Prior to fil-
contracting carrier(s). ing a petition for formal discovery
(4) Service of pleadings. The complain- under paragraph (a) of this section, a
ant must certify that 2 copies of the petitioner may request discovery from
complaint, and discovery petition if the carrier.
filed, have been sent to the contracting
(2) The carrier must promptly grant
carrier(s) either by hand, express mail,
or deny the request.
or other overnight delivery service the
same day as filed at the Board. The (3) Agreements between carriers and
contracting carrier shall in turn serve shippers for informal discovery are per-
the contracting shipper with a copy of mitted under these rules.
the complaint and petition. Replies (c) Confidentiality. If confidential con-
shall be served in the same manner on tract data are filed with the Board in a
complainant/petitioner. pleading, the party filing these data
(5) Submission of contract. Imme- should submit them as a separate pack-
diately upon the filing of a complaint, age, clearly marked on the outside
the rail carrier filing the contract sum- ‘‘Confidential Material Subject to Pro-
mary shall forward to the Board, by tective Order.’’ The order in paragraph
hand, express mail, or other overnight (d) of this section applies to the parties
delivery service, the subject contract specified in the order who receive con-
or amended contract. fidential information through pro-
(6) Replies. Replies to the complaint/ ceedings before the Board or through
petition are due within 5 days from the informal discovery.
date of filing of the complaint/petition, (d) Protective order. Petitioner and
and in no event later than noon on the carriers, and their duly authorized
23rd day following filing of the con- agents, shall limit to the contract com-
tract summary.
plaint proceeding the use of contract
(7) Copies. An original and 10 copies of
information or other confidential com-
complaints, petitions and replies must
be filed with the Board in a package mercial information which may be re-
marked ‘‘Confidential Rail Contract vealed in the contract, the complaint,
Material’’. reply, or in any other pleading relating
(8) Discovery appeals. If action on a to the contract. This restriction shall
petition for discovery is taken under be a condition to release of any con-
delegated authority, that action may tract term to a petitioner/complainant
and shall operate similarly on a carrier
be appealed to the Board, subject to

the following:
232
in possession of confidential informa- PARTS 1320–1324 [RESERVED]

tion which may be contained in a com-
plaint, petition for discovery, or re-
quest for informal disclosure. Any in-
PART 1325—EXTENSION OF CREDIT
formation pertaining to parties to the TO CANDIDATES FOR FEDERAL
contract or subject to the contract (in- OFFICE OR THEIR REPRESENTA-
cluding consignors, consignees and car- TIVES
riers), or pertaining to the terms of the
contract, or relating to the peti- Sec.
tioner’s/complainant’s confidential 1325.1 Extension of unsecured credit prohib-
commercial information, must be kept ited.
confidential. Neither the information 1325.2 Credit agreements.
nor the existence of the information 1325.3 Federal office.
shall be disclosed to third parties, ex- AUTHORITY: Pub. L. 92–225, the Federal
cept for: consultants or agents who Election Campaign Act of 1971, enacted Feb.
agree, in writing, to be bound by this 7, 1972.
regulation; information which is pub- SOURCE: 37 FR 10446, May 23, 1972, unless
licly available; information which, otherwise noted.
after receipt, becomes publicly avail-
able through no fault of the party seek- § 1325.1 Extension of unsecured credit
ing to disclose the information after it prohibited.
has become publicly available, or is ac- Persons subject to regulation by the
quired from a third party free of any Surface Transportation Board shall not
restriction as to its disclosure. The pe- knowingly and willfully provide, for
titioner/complainant or carrier must candidates for Federal office or their
take all necessary steps to assure that representatives, service or goods re-
the information will be kept confiden- lated to their campaign without ob-
tial by its employees and agents. No taining either prepayment or a binding
copies of the contract terms or other guarantee of payment through a suffi-
confidential information are to be re- cient deposit, bond, collateral, or other
tained by the parties not originally means of security. The extension of
privy to the data subsequent to the ter- credit to such persons shall not exceed
mination of the proceeding. the amount of the security posted.
(e) Contract review proceeding. If the
Board institutes a proceeding to review § 1325.2 Credit agreements.
the contract, the complainant’s case-
in-chief is due 9 days after the institu- (a) All agreements to extend credit to
tion of the proceeding, but no later candidates for Federal office or their
than 39 days after the filing of the con- representatives by persons subject to
tract summary. Replies are due 16 days regulation by the Surface Transpor-
after the institution of the proceeding, tation Board (1) must be in writing, (2)
but no later than 46 days after the fil- must contain a detailed description of
ing of the contract summary. the deposit, bond, collateral, or other
means of security, used to secure pay-
ment of the debt, and (3) must be
PART 1319—EXEMPTIONS signed by all parties to the agreement.
A copy of each such agreement must be
AUTHORITY: 49 U.S.C. 721(a) and 13541. filed with this Board’s Bureau of Oper-
ations in Washington, DC, within 20
SOURCE: 62 FR 9110, Feb. 28, 1997, unless
days of the date of its execution.
otherwise noted.
(b) [Reserved]
§ 1319.1 Exemption of freight for-
warders in the noncontiguous do- § 1325.3 Federal office.
mestic trade from tariff filing re- For the purposes of this section, Fed-
quirements. eral office means the office of President
Freight forwarders subject to the or Vice President of the United States;
Board’s jurisdiction under 49 U.S.C. or of Senator or Representative in, or
13531 are exempted from the tariff fil- Delegate or Resident Board Member to,
ing requirements of 49 U.S.C. 13702. the Congress of the United States.
233
PART 1331—APPLICATIONS UNDER (f) The name, title, and address of the
49 U.S.C. 10706 AND 13703 person to whom correspondence is to be
sent.
Sec.
§ 1331.2 Required exhibits.
1331.1 Form and content of application.
1331.2 Required exhibits. There shall be filed with and made a
1331.3 Procedure. part of each original application, and
1331.4 New parties to an agreement. each copy, the following exhibits:
1331.5 Additional standards for retaining (a) As Exhibit 1, a true copy of the
antitrust immunity by passenger bus in-
agreement.
dustry rate bureaus.
(b) If the agreement pertains to a
AUTHORITY: 49 U.S.C. 721, 10706 and 13703. conference, bureau, committee, or
SOURCE: 55 FR 11206, Mar. 27, 1990, unless other organization:
otherwise noted. (1) As Exhibit 2, a copy of the con-
stitution, bylaws, or other documents
§ 1331.1 Form and content of applica- or writings specifying the organiza-
tion. tion’s powers, duties, and procedures,
The application and supporting ex- unless incorporated in the agreement
hibits shall conform to 49 CFR part filed as Exhibit 1;
1104 and shall show, in the order and (2) As Exhibit 3, an organization
with the paragraph designations indi- chart; and
cated, the following: (3) As Exhibit 4, a schedule of its
(a) Full name and business address of charges to members or a statement
the carrier applicant(s); whether each showing how the expenses are divided
applicant is a corporation, individual, among the members.
or partnership; if a corporation, the (c) As Exhibit 5, opinion of counsel
State of incorporation; and if a part- that the application meets the require-
nership, the names of the partners and ments of 49 U.S.C. 10706, with specific
date of the partnership’s formation. reference to any specially pertinent
(b) Full name and business address of provisions of articles of incorporation
each entity on whose behalf the appli- or association.
cation is filed and whether it is a cor-
poration, individual, or partnership. § 1331.3 Procedure.
(c) Whether applicant and each enti- (a) Applicant shall serve a copy of
ty on whose behalf the application is the application by first class mail upon
filed is a rail, motor, or water carrier, the regulatory body having jurisdiction
a household goods freight forwarder, or over rates, fares, or charges of each
express, sleeping-car, or pipeline com- State or territory covered by the
pany. agreement, and the original applica-
(d) If the agreement of which ap- tion filed with the Board shall include
proval is sought pertains to a con- a certificate naming the bodies upon
ference, bureau, committee, or other whom the application has been served.
organization, a complete description of (b) The Board will publish in the FED-
such organization, including any ERAL REGISTER a notice that an appli-
subunits, and of its or their functions cation has been filed under these rules
and methods of operation, together and indicating how a hearing on the
with a description of the territorial application may be obtained.
scope of such operations, and a com- (c) A protest to an application should
plete description of any working or conform to 49 CFR part 1104.
other arrangement or relationship that (d) The Board’s general rules of prac-
such organization has with any other tice govern procedural matters not spe-
organization. If the agreement is of cifically covered by these rules.
any other character, a precise state-
ment of its nature and scope and the § 1331.4 New parties to an agreement.
mode of procedure thereunder. Where a carrier becomes a party to
(e) The facts and circumstances re- an agreement which has been approved
lied upon to establish that the agree- by the Board, such approval will extend
ment will promote the national trans- to such carrier upon the filing with the
portation policy at 49 U.S.C. 10101. Board by the carrier or its authorized
234
agent of a verified statement that it (ii) Attractive price or level of serv-

has become a party to the agreement, ice quality; and
which statement shall show the infor- (iii) Some added feature in addition
mation prescribed at § 1331.1(b). Such to those normally offered.
carrier may provide transportation
under joint rates or over through PART 1332—FILING CONTRACTS
routes, but may not otherwise act with FOR SURFACE MAIL TRANSPOR-
carriers of a different class (as defined TATION
at 49. U.S.C. 10706(d)).
Sec.
§ 1331.5 Additional standards for re-
1332.1 Applicability.
taining antitrust immunity by pas-
1332.2 Availability of contracts.
senger bus industry rate bureaus.
1332.3 Manner of submitting contracts.
(a) Rate bureaus must comply with AUTHORITY: Sec. 5005(b)(3), 84 Stat. 767, 39
the terms of their agreements, as ap- U.S.C. 5005.
proved by the Board. Failure to do so
will result in lack of immunity for that § 1332.1 Applicability.
activity. The provisions of this part shall
(b) The bureaus are required to main- apply to copies of all contracts or
tain detailed minutes of all meetings agreements entered into by the U.S.
where immunized matters are dis- Postal Service with any common car-
cussed. The bureaus will be subject to rier by rail or motor vehicle (including
withdrawal of their immunity for seri- passenger-carrying vehicle), or freight
ous continuing violations of Board forwarder, express company, or other
standards, and individual tariff publi- person, for the surface transportation
cations will be subject to rejection, of mail as authorized by Chapters 50
suspension, or investigation for impro- and 52 of Title 39, United States Code,
prieties in the rate bureau process. as revised and reenacted by the Postal
(c) Absent Board approval, no other Reorganization Act, 84 Stat. 719, 39
changes may be made in any approved U.S.C. 5001 and 5201.
agreement.
[36 FR 6426, Apr. 3, 1971]
(d) For the purposes of the statute,
the following definitions shall apply: § 1332.2 Availability of contracts.
(1) A general increase is a proposed
general adjustment of substantially all Upon request from any member of
the rates published in a rate bureau’s the public to inspect a contract(s) or
tariff(s). agreement(s) described in § 1332.1, at
any time between the effective date of
(2) A broad change in tariff structure
such contract(s) or agreement(s) and 15
modifies in a relatively non-uniform
days prior thereto, the Board will ob-
fashion the relationship between most
tain the requested contract(s) or agree-
rates published in a rate bureau’s tar-
ment(s) from the U.S. Postal Service
iff, and applies to a large area, either
and make it (them) available for in-
nationally or regionally.
spection.
(3) An innovative fare will be deter-
mined on a case-by-case basis; the [57 FR 23539, June 4, 1992]
Board will, on request, issue opinions
on whether particular rate proposals § 1332.3 Manner of submitting con-
tracts.
may be regarded as innovative. Two ex-
amples of an innovative fare are: The U.S. Postal Service will submit
(i) A fare for unlimited passenger to the Board, upon request, a copy of
travel; and the requested contract(s) or agree-
(ii) An experimental fare providing ment(s). Such contract(s) or agree-
for transportation at the passenger’s ment(s) will be submitted by facsimile
option over the line of one or more car- transmission or messenger service
riers. where feasible, and, where such serv-
(4) A promotional fare generally has ices are not feasible, by the fastest
three characteristics: available mail service.
(i) Limited duration; [57 FR 23539, June 4, 1992]
235
§ 1332.3 49 CFR Ch. X (10–1–07 Edition)
CHAPTER XI—RESEARCH AND INNOVATIVE TECHNOLOGY

ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
[RESERVED]
236
CHAPTER XII—TRANSPORTATION SECURITY
ADMINISTRATION, DEPARTMENT OF
HOMELAND SECURITY
EDITORIAL NOTE: Nomenclature changes to chapter XII appear at 68 FR 49720, Aug. 19, 2003.
Part Page
SUBCHAPTER A—ADMINISTRATIVE AND PROCEDURAL

RULES
1500 Applicability, terms, and abbreviations .................. 239
1502 Organization, functions, and procedures ................. 239
1503 Investigative and enforcement procedures .............. 240
1507 Privacy Act-Exemptions ......................................... 267
1510 Passenger civil aviation security service fees ......... 274
1511 Aviation security infrastructure fee ....................... 277
1515 Appeal and waiver procedures for security threat
assessments for individuals .................................. 288
SUBCHAPTER B—SECURITY RULES FOR ALL MODES OF
TRANSPORTATION
1520 Protection of sensitive security information .......... 296
SUBCHAPTER C—CIVIL AVIATION SECURITY
1540 Civil aviation security: general rules ...................... 303
1542 Airport security ...................................................... 311
1544 Aircraft operator security: air carriers and com-
mercial operators ................................................. 329
1546 Foreign air carrier security .................................... 356
1548 Indirect air carrier security .................................... 367
1550 Aircraft security under general operating and
flight rules ........................................................... 375
1552 Flight schools .......................................................... 376
1562 Operations in the Washington, DC, metropolitan
area ...................................................................... 382
SUBCHAPTER D—MARITIME AND LAND TRANSPORTATION SECURITY
1570 General rules ........................................................... 391
237
49 CFR Ch. XII (10–1–07 Edition)
1572 Credentialing and security threat assessments ...... 393

238
SUBCHAPTER A—ADMINISTRATIVE AND PROCEDURAL RULES
PART 1500—APPLICABILITY, TERMS, (1) Words importing the singular in-

AND ABBREVIATIONS clude the plural.
(2) Words importing the plural in-
Sec. clude the singular.
1500.1 Applicability. (3) Words importing the masculine
1500.3 Terms and abbreviations used in this gender include the feminine.
chapter. (b) In this chapter, the word:
1500.5 Rules of construction.
(1) ‘‘Must’’ is used in an imperative
AUTHORITY: 49 U.S.C. 114, 5103, 40113, 44901– sense;
44907, 44913–44914, 44916–44918, 44935–44936, (2) ‘‘May’’ is used in a permissive
44942, 46105.
sense to state authority or permission
SOURCE: 67 FR 8351, Feb. 22, 2002, unless to do the act prescribed, and the words
otherwise noted. ‘‘no person may * * *’’ or ‘‘a person
may not * * *’’ mean that no person is
§ 1500.1 Applicability.
required, authorized, or permitted to
This chapter, this subchapter, and do the act prescribed; and
this part apply to all matters regulated (3) ‘‘Includes’’ means ‘‘includes but is
by the Transportation Security Admin- not limited to’’.
istration.
§ 1500.3 Terms and abbreviations used PART 1502—ORGANIZATION,
in this chapter. FUNCTIONS, AND PROCEDURES
As used in this chapter:
Administrator means the Under Sec- AUTHORITY: 5 U.S.C. 3345, 49 U.S.C. 114,
retary of Transportation for Security 40113, 44901–44907, 44913–44914, 44916–44920,
identified in 49 U.S.C. 114(b) who serves 44935–44936, 44942, 46101–46105, 45107, 46110.
as the Administrator of the Transpor- SOURCE: 67 FR 48049, July 23, 2002, unless
tation Security Administration. otherwise noted.
Person means an individual, corpora-
tion, company, association, firm, part- § 1502.1 Responsibilities of the Admin-
nership, society, joint-stock company, istrator.
or governmental authority. It includes (a) The Administrator is responsible
a trustee, receiver, assignee, successor, for the planning, direction, and control
or similar representative of any of of the Transportation Security Admin-
them. istration (TSA) and for security in all
Transportation Security Regulations modes of transportation. The Adminis-
(TSR) means the regulations issued by trator’s responsibility includes car-
the Transportation Security Adminis- rying out chapter 449 of title 49, United
tration, in title 49 of the Code of Fed- States Code, relating to civil aviation
eral Regulations, chapter XII, which security, and related research and de-
includes parts 1500 through 1699. velopment activities, and security re-
TSA means the Transportation Secu- sponsibilities over other modes of
rity Administration. transportation that are exercised by
United States, in a geographical sense, the Department of Transportation.
means the States of the United States, (b) The Deputy Administrator is the
the District of Columbia, and terri- ‘‘first assistant’’ to the Administrator
tories and possessions of the United for purposes of the Federal Vacancies
States, including the territorial sea Reform Act of 1998, and shall, in the
and the overlying airspace. event the Administrator dies, resigns,
[67 FR 8351, Feb. 22, 2002, as amended at 68 or is otherwise unable to perform the
FR 49720, Aug. 19, 2003] functions and duties of the office, serve
as the Acting Administrator, subject to
§ 1500.5 Rules of construction. the limitations in the Federal Vacan-
(a) In this chapter, unless the context cies Reform Act of 1998. In the event of
requires otherwise: the absence or disability of both the
239
Pt. 1503 49 CFR Ch. XII (10–1–07 Edition)
Administrator and the Deputy Admin- 1503.215 Withdrawal of complaint or request

istrator, officials designated by TSA’s for hearing.
internal order on succession shall serve 1503.216 Waivers.
as Acting Deputy Administrator and 1503.217 Joint procedural or discovery
schedule.
shall perform the duties of the Admin-
1503.218 Motions.
istrator, except for any non-delegable 1503.219 Interlocutory appeals.
statutory and/or regulatory duties. 1503.220 Discovery.
1503.221 Notice of hearing.
PART 1503—INVESTIGATIVE AND 1503.222 Evidence.
ENFORCEMENT PROCEDURES 1503.223 Standard of proof.
1503.224 Burden of proof.
Subpart A—Investigative Procedures 1503.225 Offer of proof.
1503.226 Public disclosure of evidence.
Sec. 1503.227 Expert or opinion witnesses.
1503.1 Reports of violations. 1503.228 Subpoenas.
1503.3 Investigations (general). 1503.229 Witness fees.
1503.5 Formal complaints. 1503.230 Record.
1503.7 Records, documents and reports. 1503.231 Argument before the administra-
tive law judge.
Subpart B—Administrative Actions 1503.232 Initial decision.
1503.11 Administrative disposition of cer- 1503.233 Appeal from initial decision.
tain violations. 1503.234 Petition to reconsider or modify a
final decision and order of the TSA deci-
Subpart C—Legal Enforcement Actions sion maker on appeal.
1503.235 Judicial review of a final order.
1503.12 Request for portions of the enforce-
ment investigative report (EIR). Subpart H—Civil Monetary Penalty Inflation
1503.13 Consent orders. Adjustment
1503.15 Civil penalties: Civil penalties in-
volving an amount in controversy in ex- 1503.301 Scope and purpose.
cess of $50,000, an in rem action, or in- 1503.303 Definitions.
junctive relief. 1503.305 Cost of living adjustments of civil
1503.16 Civil penalties: Civil penalties in- monetary penalties.
volving an amount in controversy not ex-
ceeding $50,000. AUTHORITY: 18 U.S.C. 6002; 28 U.S.C. 2461
1503.17 [Reserved] (note); 49 U.S.C. 114, 40113–40114, 44901–44907,
1503.19–1503.20 [Reserved] 46101–46107, 46109–46110, 46301, 46305, 46311,
1503.21 Military personnel. 46313–46314.
1503.23 [Reserved] SOURCE: 67 FR 51483, Aug. 8, 2002, unless
1503.25 Injunctions.
otherwise noted.
1503.27 [Reserved]
1503.29 Civil penalties: Streamlined enforce-
ment procedures for certain security vio- Subpart A—Investigative
lations. Procedures
Subparts D–F [Reserved] § 1503.1 Reports of violations.
Subpart G—Rules of Practice in Transpor- (a) Any person who knows of a viola-
tation Security Administration (TSA) tion of 49 U.S.C. chapter 449 (except
Civil Penalty Actions sections 44902, 44903(d), 44907(a)–
(d)(1)(A), 44907(d)(1)(C)–(f), 44908, and
1503.201 Applicability. 44909), or a regulation prescribed or
1503.202 Definitions.
1503.203 Separation of functions. order issued under any of those provi-
1503.204 Appearances and rights of parties. sions, should report it to appropriate
1503.205 Administrative law judges. personnel of any TSA office.
1503.206 Intervention. (b) Each report made under this sec-
1503.207 Certification of documents. tion, together with any other informa-
1503.208 Complaint. tion the TSA may have that is relevant
1503.209 Answer. to the matter reported, will be re-
1503.210 Filing of documents.
1503.211 Service of documents. viewed by TSA personnel to determine
1503.212 Computation of time. the nature and type of any additional
1503.213 Extension of time. investigation or enforcement action

1503.214 Amendment of pleadings. the TSA will take.
240
Transportation Security Administration, DHS § 1503.5
§ 1503.3 Investigations (general). (3) Set forth the name and address, if
known, of each person who is the sub-
(a) The Administrator may conduct
ject of the complaint and, with respect
investigations, hold hearings, issue
to each person, the specific provisions
subpoenas, require the production of
of the statute or regulation or order
relevant documents, records, and prop-
that the complainant believes were
erty, and take evidence and deposi-
violated;
tions.
(4) Contain a concise but complete
(b) For the purpose of investigating
statement of the facts relied upon to
alleged violations of 49 U.S.C. chapter
substantiate each allegation;
449 (except sections 44902, 44903(d),
(5) State the name, address, and tele-
44907(a)–(d)(1)(A), 44907(d)(1)(C)–(f),
phone number of the person filing the
44908, and 44909), or a regulation pre-
complaint; and
scribed or order issued under any of
(6) Be signed by the person filing the
those provisions, the Administrator’s
complaint or a duly authorized rep-
authority may be exercised by the var-
resentative.
ious offices for matters within their re-
(c) Complaints that do not meet the
spective areas for all routine investiga-
requirements of paragraph (b) of this
tions. When the compulsory processes
section will be considered reports
of section 49 U.S.C. 46104 are invoked,
under § 1503.1.
the Administrator’s authority has been
(d) Complaints that meet the require-
delegated to the Chief Counsel, each
ments of paragraph (b) of this section
Deputy Chief Counsel, and in consulta-
will be docketed and a copy mailed to
tion with the Office of the Chief Coun-
each person named in the complaint.
sel, the Assistant Under Secretary for
(e) Any complaint filed against a
Aviation Operations, the Assistant
member of the Armed Forces of the
Under Secretary for Maritime and
United States acting in the perform-
Land Security, the Assistant Under
ance of official duties will be referred
Secretary for Inspections, and each
to the Secretary of the Department
Federal Security Director.
concerned for action in accordance
[67 FR 51483, Aug. 8, 2002, as amended at 68 with the procedures set forth in
FR 49720, Aug. 19, 2003] § 1503.21.
(f) The person named in the com-
§ 1503.5 Formal complaints. plaint must file an answer within 20
(a) Any person may file a complaint days after service of a copy of the com-
with the Administrator with respect to plaint.
any act or omission by any person in (g) After the complaint has been an-
contravention of any provision of 49 swered or after the allotted time in
U.S.C. chapter 449 (except sections which to file an answer has expired, the
44902, 44903(d), 44907(a)–(d)(1)(A), Administrator will determine if there
44907(d)(1)(C)–(f), 44908, and 44909), or a are reasonable grounds for inves-
regulation prescribed or order issued tigating the complaint.
under any of those provisions. This sec- (h) If the Administrator determines
tion does not apply to complaints that a complaint does not state facts
against the Administrator or employ- that warrant an investigation or ac-
ees of the TSA acting within the scope tion, the complaint may be dismissed
of their employment. without a hearing and the reason for
(b) Complaints filed under this sec- the dismissal will be given, in writing,
tion must— to the person who filed the complaint
(1) Be submitted in writing and iden- and the person named in the com-
tified as a complaint filed for the pur- plaint.
pose of seeking an appropriate order or (i) If the Administrator determines
other enforcement action; that reasonable grounds exist, an infor-
(2) Be submitted to the U.S. Depart- mal investigation may be initiated.
ment of Homeland Security, Transpor- Each person named in the complaint
tation Security Administration, Office will be advised which official has been
of the Chief Counsel, TSA–2, Attention: delegated the responsibility under
Enforcement Docket, 601 South 12th § 1503.3(b) for conducting the investiga-
Street, Arlington, VA 22202–4220; tion.
241
§ 1503.7 49 CFR Ch. XII (10–1–07 Edition)
(j) If the investigation substantiates Subpart B—Administrative Actions

the allegations set forth in the com-
plaint, a notice of proposed order may § 1503.11 Administrative disposition of
be issued or other enforcement action certain violations.
taken in accordance with this part. (a) If it is determined that a viola-
(k) The complaint and other plead- tion or an alleged violation of 49 U.S.C.
ings and official TSA records relating chapter 449 (except sections 44902,
to the disposition of the complaint are 44903(d), 44907(a)–(d)(1)(A),
maintained in current docket form in 44907(d)(1)(C)–(f), 44908, and 44909), or a
the TSA Enforcement Docket, TSA regulation prescribed or order issued
Headquarters, Visitor Center, 701 under any of those provisions, does not
South 12th Street, Arlington, Virginia require legal enforcement action, an
22202. appropriate official of the TSA may
(1) Generally. Any person interested take administrative action in disposi-
in reviewing or obtaining a copy of a tion of the case.
record may do so only by submitting a (b) An administrative action under
this section does not constitute a for-
FOIA request under 5 U.S.C. 552 and 49
mal adjudication of the matter, and
CFR part 7. Portions of the record may
may be taken by issuing the alleged vi-
be exempt from disclosure pursuant to
olator—
FOIA. (1) A ‘‘Warning Notice’’ that recites
(2) Docket Files or Documents Not for available facts and information about
Public Disclosure. (i) Only the following the incident or condition and indicates
persons may review docket files or par- that it may have been a violation; or
ticular documents that are not for pub- (2) A ‘‘Letter of Correction’’ that
lic disclosure: confirms the TSA decision in the mat-
(A) Parties to the proceedings; ter and states the necessary corrective
(B) Their designated representatives; action the alleged violator has taken
and or agrees to take. If the agreed correc-
(C) Persons who have a need to know tive action is not fully completed, legal
as determined by the Administrator. enforcement action may be taken.
(ii) Those persons with permission to
review these documents or docket files Subpart C—Legal Enforcement
may view the materials at the TSA En- Actions
forcement Docket, TSA Headquarters,
Visitor Center, 701 South 12th Street, § 1503.12 Request for portions of the
Arlington, Virginia 22202. Persons with enforcement investigative report
(EIR).
access to these records may have a
copy of the records after payment of (a) Discovery and pre-litigation dis-
reasonable costs. closure. Pursuant to this section, any
alleged violator or designated rep-
[67 FR 51483, Aug. 8, 2002, as amended at 68 resentative may request, from the
FR 49720, Aug. 19, 2003; 68 FR 58281, Oct. 9, Chief Counsel or designee, portions of
2003] the EIR that are not privileged (e.g.,
under the deliberative process, attor-
§ 1503.7 Records, documents and re-
ports. ney work-product, or attorney-client
privileges). This information will be
Each record, document, and report provided for the sole purpose of pro-
that the Transportation Security Reg- viding the information necessary to
ulations require to be maintained, ex- prepare a response to the allegations
hibited, or submitted to the Adminis- contained in the legal enforcement ac-
trator may be used in any investigation document. SSI contained in the
tion conducted by the Administrator; EIR is released pursuant to 49 CFR part
and, except to the extent the use may 1520. Information released under this
be specifically limited or prohibited by section is not produced under the Free-
the section that imposes the require- dom of Information Act (FOIA).
ment, the records, documents, and re- (b) Any person not listed in para-
ports may be used in any civil penalty graph (a) of this section that is inter-
action or other legal proceeding. ested in obtaining a copy of the EIR
242
must submit a FOIA request pursuant Counsel and the Deputy Chief Counsel
to 49 U.S.C. 552 and 49 CFR part 7. Por- for Civil Enforcement.
tions of the EIR may be exempt from (c) The Administrator may com-
disclosure pursuant to FOIA. promise any civil penalty, proposed in
accordance with 49 U.S.C. 46301, involv-
§ 1503.13 Consent orders. ing an amount in controversy in excess
(a) At any time before the issuance of of $ 50,000, an in rem action, or suit for
an order under this subpart, the official injunctive relief, prior to referral of
who issued the notice and the person the civil penalty action to the United
subject to the notice may agree to dis- States Attorney General, or the dele-
pose of the case by the issuance of a gate of the Attorney General, for pros-
consent order by the official. ecution.
(1) The Administrator, through the
(b) A proposal for a consent order,
Chief Counsel or the Deputy Chief
submitted to the official who issued
Counsel for Civil Enforcement, will
the notice, under this section must in-
send a civil penalty letter to the person
clude—
charged with a violation of 49 U.S.C.
(1) A proposed order; chapter 449 (except sections 44902,
(2) An admission of all jurisdictional 44903(d), 44907(a)–(d)(1)(A),
facts; 44907(d)(1)(C)–(f), 44908, and 44909), or a
(3) An express waiver of the right to regulation prescribed or order issued
further procedural steps and of all under any of those provisions. The civil
rights to judicial review; and penalty letter contains a statement of
(4) An incorporation of the notice by the charges; the applicable law, rule,
reference and an acknowledgment that regulation, or order; the amount of
the notice may be used to construe the civil penalty that the Administrator
terms of the order. will accept in full settlement of the ac-
tion or an offer to compromise the civil
§ 1503.15 Civil penalties: Civil pen- penalty.
alties involving an amount in con- (2) Not later than 30 days after re-
troversy in excess of $ 50,000, an in ceipt of the civil penalty letter, the
rem action, or injunctive relief.
person charged with a violation may
(a) Any person who violates any pro- present any material or information in
vision of 49 U.S.C. chapter 449 (except answer to the charges to the agency at-
sections 44902, 44903(d), 44907(a)– torney, either orally or in writing, that
(d)(1)(A), 44907(d)(1)(C)–(f), 44908, and may explain, mitigate, or deny the vio-
44909), or a regulation prescribed or lation or that may show extenuating
order issued under any of those provi- circumstances. The Administrator will
sions, is subject to a civil penalty of consider any material or information
not more than the amount specified for submitted in accordance with this
each violation in accordance with 49 paragraph (c) to determine whether the
U.S.C. 46301, in conformity with the person is subject to a civil penalty or
Federal Civil Penalties Inflation Ad- to determine the amount for which the
justment Act of 1990, 28 U.S.C. 2461 Administrator will compromise the ac-
(note), as amended. tion.
(b) The authority of the Adminis- (3) If the person charged with the vio-
trator, under 49 U.S.C. 46301 to propose lation offers to compromise for a spe-
a civil penalty for a violation of that cific amount, that person must send a
chapter, or a rule, regulation, or order certified check or money order for that
issued thereunder, and the ability to amount to the agency, made payable to
refer cases to the United States Attor- the Transportation Security Adminis-
ney General, or the delegate of the At- tration. The Chief Counsel or the Dep-
torney General, for prosecution of civil uty Chief Counsel for Civil Enforce-
penalty actions proposed by the Ad- ment may accept the certified check or
ministrator, involving an amount in money order or may refuse and return
controversy in excess of $ 50,000, an in the certified check or money order.
rem action, or suit for injunctive re- (4) If the offer to compromise is ac-
lief, or for collection of an assessed cepted by the Administrator, the agen-

civil penalty, is delegated to the Chief cy will send a letter to the person
243
charged with the violation stating that tion within 15 days after receipt of a
the certified check or money order is final notice of proposed civil penalty.
accepted in full settlement of the civil (3) Unless an appeal is filed in a time-
penalty action. ly manner, an initial decision or order
(5) If the parties cannot agree to of an administrative law judge will be
compromise the civil penalty action or considered an order assessing civil pen-
the offer to compromise is rejected and alty if an administrative law judge
the certified check or money order sub- finds that an alleged violation occurred
mitted in compromise is returned, the and determines that a civil penalty, in
Administrator may refer the civil pen- an amount found appropriate by the
alty action to the United States Attor- administrative law judge, is warranted.
ney General, or the delegate of the At- (4) For penalties issued under
torney General, to begin proceedings in § 1503.16(a)(1), unless a petition for re-
a United States district court, pursu-
view is filed with a U.S. court of ap-
ant to the authority in 49 U.S.C. 46305
peals in a timely manner, a final deci-
to prosecute and collect the civil pen-
sion and order of the Administrator
alty.
will be considered an order assessing
[67 FR 51483, Aug. 8, 2002, as amended at 68 civil penalty if the TSA decision maker
FR 46720, Aug. 19, 2003] finds that an alleged violation occurred
and a civil penalty is warranted.
§ 1503.16 Civil penalties: Civil pen-
alties involving an amount in con- (c) Delegation of authority. The au-
troversy not exceeding $50,000. thority of the Administrator, under 49
U.S.C. 46301 to initiate and assess civil
(a) General. The following penalties penalties for a violation under chapter
apply to persons who violate chapter 449, or a rule, regulation, or order
449, as specified in subsection (1), of issued thereunder, is delegated to the
Title 49 of the United States Code:
Deputy Chief Counsel for Civil Enforce-
(1) Any person who violates any pro- ment. The authority of the Adminis-
vision of 49 U.S.C. chapter 449 (except trator to refer cases to the Attorney
sections 44902, 44903(d), 44907(a)–
General of the United States, or the
(d)(1)(A), 44907(d)(1)(C)–(f), 44908, and
delegate of the Attorney General, for
44909), or a regulation prescribed or
the collection of civil penalties, is dele-
order issued under any of those provi-
sions is subject to a civil penalty of not gated to the Chief Counsel and the Dep-
more than the amount specified in the uty Chief Counsel for Civil Enforce-
chapter or section for each violation in ment.
accordance with 49 U.S.C. 46301, in con- (d) Notice of proposed civil penalty. A
formity with the Federal Civil Pen- civil penalty action is initiated by
alties Inflation Adjustment Act of 1990, sending a notice of proposed civil pen-
28 U.S.C. 2461 (note), as amended. alty to the person charged with a viola-
(2)–(3) [Reserved] tion of 49 U.S.C. chapter 449 (except
(b) Orders assessing civil penalty. An sections 44902, 44903(d), 44907(a)–
order assessing civil penalty may be (d)(1)(A), 44907(d)(1)(C)–(f), 44908, and
issued for a violation described in para- 44909), or a regulation prescribed or
graph (a) of this section, or as other- order issued under any of those provi-
wise provided by statute, after notice sions. A notice of proposed civil pen-
and opportunity for a hearing. A per- alty will be sent to the individual
son charged with a violation may be charged with a violation or to the
subject to an order assessing civil pen- president of the corporation or com-
alty in the following circumstances: pany charged with a violation. In re-
(1) An order assessing civil penalty sponse to a notice of proposed civil
may be issued if a person charged with penalty, a corporation or company may
a violation submits or agrees to submit designate in writing another person to
a civil penalty for a violation. receive documents in that civil penalty
(2) An order assessing civil penalty action. The notice of proposed civil
may be issued if a person charged with penalty contains a statement of the
a violation does not request a hearing charges and the amount of the pro-
under paragraph (e)(2)(ii) of this sec- posed civil penalty. Not later than 30
244
days after receipt of the notice of pro- ing informal procedures, may modify
posed civil penalty, the person charged an allegation or a proposed civil pen-
with a violation must— alty contained in a notice of proposed
(1) Submit the amount of the pro- civil penalty.
posed civil penalty or an agreed-upon (1) A final notice of proposed civil
amount, in which case either an order penalty may be issued—
assessing civil penalty or compromise (i) If the person charged with a viola-
order must be issued in that amount; tion fails to respond to the notice of
(2) Submit to the agency attorney proposed civil penalty within 30 days
one of the following: after receipt of that notice; or
(i) Written information, including (ii) If the parties participated in any
documents and witness statements, informal procedures under paragraph
demonstrating that a violation of the (d)(2) of this section and the parties
regulations did not occur or that a pen- have not agreed to compromise the ac-
alty or the amount of the penalty is tion or the agency attorney has not
not warranted by the circumstances; agreed to withdraw the notice of pro-
(ii) A written request to reduce the posed civil penalty.
proposed civil penalty, the amount of
(2) Not later than 15 days after re-
reduction, and the reasons and any
ceipt of the final notice of proposed
documents supporting a reduction of
civil penalty, the person charged with
the proposed civil penalty, including
a violation must do one of the fol-
records indicating a financial inability
lowing—
to pay or records showing that pay-
ment of the proposed civil penalty (i) Submit the amount of the pro-
would prevent the person from con- posed civil penalty or an agreed-upon
tinuing in business; amount, in which case either an order
(iii) A written request for an infor- assessing civil penalty or a com-
mal conference to discuss the matter promise order will be issued in that
with the agency attorney and to sub- amount; or
mit relevant information or docu- (ii) Request a hearing in which case a
ments; or complaint will be filed with the En-
(3) Request a hearing in which case a forcement Docket Clerk.
complaint will be filed with the En- (f) Request for a hearing. Any person
forcement Docket Clerk. charged with a violation may request a
(e) Final notice of proposed civil pen- hearing, pursuant to paragraph (d)(3)
alty. A final notice of proposed civil or paragraph (e)(2)(ii) of this section,
penalty may be issued after participa- to be conducted in accordance with the
tion in informal procedures provided in procedures in subpart G of this part. A
paragraph (d)(2) of this section or fail- person requesting a hearing must file a
ure to respond in a timely manner to a written request for a hearing with the
notice of proposed civil penalty. A final Enforcement Docket Clerk (U.S. De-
notice of proposed civil penalty will be partment of Homeland Security, Trans-
sent to the individual charged with a portation Security Administration, Of-
violation, to the president of the cor- fice of the Chief Counsel, TSA–2, Atten-
poration or company charged with a tion: Enforcement Docket Clerk, 601
violation, or a person previously des- South 12th Street, Arlington, VA 22202–
ignated in writing by the individual, 4220) and must mail a copy of the re-
corporation, or company to receive quest to the agency attorney. The per-
documents in that civil penalty action. son requesting the hearing must date
If not previously done in response to a and sign the request, and must include
notice of proposed civil penalty, a cor- his or her current address. The request
poration or company may designate in for hearing must be typewritten or leg-
writing another person to receive docu- ibly written.
ments in that civil penalty action. The (g) Hearing. If the person charged
final notice of proposed civil penalty with a violation requests a hearing
contains a statement of the charges pursuant to paragraph (d)(3) or para-
and the amount of the proposed civil graph (e)(2)(ii) of this section, the
penalty and, as a result of information original complaint will be filed with

submitted to the agency attorney dur- the Enforcement Docket Clerk and a
245
copy will be sent to the person request- to section 49 U.S.C. 46110. Neither an
ing the hearing. The procedural rules initial decision or order issued by an
in subpart G of this part apply to the administrative law judge that has not
hearing and any appeal. At the close of been appealed to the TSA decision
the hearing, the administrative law maker, nor an order compromising a
judge will issue, either orally on the civil penalty action constitutes a final
record or in writing, an initial deci- order of the Administrator for the pur-
sion, including the reasons for the deci- poses of judicial appellate review under
sion, that contains findings or conclu- 49 U.S.C. 46110.
sions on the allegations contained, and (l) Compromise. The TSA may com-
the civil penalty sought, in the compromise any civil penalty action initi-
plaint. ated in accordance with 49 U.S.C. 46301,
(h) Appeal. Either party may appeal involving an amount in controversy
the administrative law judge’s initial not exceeding $ 50,000, or any civil pen-
decision to the TSA decision maker alty action initiated in accordance
pursuant to the procedures in subpart with 49 U.S.C. 46301 at any time before
G of this part. If a party files a notice referring the action to the United
of appeal pursuant to § 1503.233, the ef- States Attorney for collection.
fectiveness of the initial decision is (1) An agency attorney may com-
stayed until a final decision and order promise any civil penalty action where
of the Administrator have been entered a person charged with a violation
on the record. The TSA decision maker agrees to pay a civil penalty and the
will review the record and issue a final TSA agrees to make no finding of vio-
decision and order of the Adminis- lation. Pursuant to such agreement, a
trator that affirms, modifies, or re- compromise order will be issued, stat-
verses the initial decision. The TSA de- ing:
cision maker may assess a civil penalty (i) The person agrees to pay a civil
but will not assess a civil penalty in an penalty;
amount greater than that sought in the (ii) The TSA makes no finding of a
complaint. violation; and
(i) Payment. A person must pay a (iii) The compromise order will not
civil penalty by sending, to the agency, be used as evidence of a prior violation
a certified check or money order made in any subsequent civil penalty pro-
payable to the Transportation Security ceeding.
Administration. (2) An agency attorney may com-
(j) Collection of civil penalties. If a per- promise the amount of any civil pen-
son does not pay a civil penalty im- alty proposed in a notice, assessed in
posed by an order assessing civil pen- an order, or imposed in a compromise
alty or a compromise order within 60 order.
days after service of the order, the Ad-
[67 FR 51483, Aug. 8, 2002, as amended at 68
ministrator may refer the order to the FR 49720, Aug. 19, 2003; 68 FR 58281, Oct. 9,
United States Attorney General, or the 2003]
delegate of the Attorney General, to
begin proceedings to collect the civil § 1503.17 [Reserved]
penalty. The action will be brought in
a United States district court, pursu- §§ 1503.19–1503.20 [Reserved]
ant to the authority in 49 U.S.C. 46305.
(k) Exhaustion of administrative rem- § 1503.21 Military personnel.
edies. For violations of 49 U.S.C. chap- If a report made under this part indi-
ter 449 (except sections 44902, 44903(d), cates that, while performing official
44907(a)–(d)(1)(A), 44907(d)(1)(C)–(f), duties, a member of the Armed Forces,
44908, and 44909), or a regulation pre- or a civilian employee of the Depart-
scribed or order issued under any of ment of Defense who is subject to the
those provisions, a party may only pe- Uniform Code of Military Justice (10
tition for review of a final decision and U.S.C. Ch. 47), has violated 49 U.S.C.
order of the Administrator to the chapter 449 (except sections 44902,
courts of appeals of the United States 44903(d), 44907(a)–(d)(1)(A),
or the United States Court of Appeals 44907(d)(1)(C)–(f), 44908, and 44909), or a

for the District of Columbia pursuant regulation prescribed or order issued
246
under any of those provisions, the part 1540, is delegated to each Federal
Chief Counsel or the Deputy Chief Security Director for the purpose of
Counsel for Civil Enforcement will issuing notices of violation in cases in-
send a copy of the report to the appro- volving violations of 49 U.S.C. chapter
priate military authority for such dis- 449, or a regulation prescribed or order
ciplinary action as that authority con- issued under any of those provisions.
siders appropriate and a report to the (b) Notice of violation. A civil penalty
Administrator thereon. action is initiated by sending a notice
[67 FR 51483, Aug. 8, 2002, as amended at 68 of violation to the person charged with
FR 49720, Aug. 19, 2003] the violation. The notice of violation
contains a statement of the charges
§ 1503.23 [Reserved] and the amount of the proposed civil
penalty. Not later than 30 days after
§ 1503.25 Injunctions. receipt of the notice of violation, the
Whenever it is determined that a per- person charged with a violation must:
son has engaged, or is about to engage, (1) Submit the amount of the pro-
in any act or practice constituting a posed civil penalty or an agreed-upon
violation of 49 U.S.C. chapter 449 (ex- amount, in which case either an order
cept sections 44902, 44903(d), 44907(a)– assessing a civil penalty or a com-
(d)(1)(A), 44907(d)(1)(C)–(f), 44908, and promise order will be issued in that
44909), or a regulation prescribed or amount; or
order issued under any of those provi- (2) Submit to the agency attorney
sions for which the TSA exercises en- identified in the material accom-
forcement responsibility, the Chief panying the notice any of the fol-
Counsel or the Deputy Chief Counsel lowing:
for Civil Enforcement may request the (i) Written information, including
United States Attorney General, or the documents and witness statements,
delegate of the Attorney General, to demonstrating that a violation of the
bring an action in the appropriate regulations did not occur or that a pen-
United States district court for such alty or the penalty amount is not war-
relief as is necessary or appropriate, in- ranted by the circumstances; or
cluding mandatory or prohibitive in- (ii) A written request to reduce the
junctive relief, interim equitable relief, proposed civil penalty, the amount of
and punitive damages, as provided by reduction, and the reasons and any
49 U.S.C. 46107. documents supporting a reduction of
[68 FR 49720, Aug. 19, 2003]
the proposed civil penalty, including
records indicating a financial inability
§ 1503.27 [Reserved] to pay or records showing that pay-
ment of the proposed civil penalty
§ 1503.29 Civil penalties: Streamlined would prevent the person from con-
enforcement procedures for certain tinuing in business; or
security violations. (iii) A written request for an infor-
This section may be used, at the mal conference to discuss the matter
agency’s discretion, in enforcement ac- with an agency attorney and submit
tions involving individuals presenting relevant information or documents; or
dangerous or deadly weapons for (3) Request a hearing in which case a
screening at airports or in checked complaint will be filed with the En-
baggage where the amount of the pro- forcement Docket Clerk.
posed civil penalty is less than $5,000. (c) Final notice of violation and civil
In these cases, §§ 1503.16(a), 1503.16(c), penalty assessment order. A final notice
and 1503.16 (f) through (l) are used, as of violation and civil penalty assess-
well as paragraphs (a) through (d) of ment order (‘‘final notice and order’’)
this section: may be issued after participation in
(a) Delegation of authority. The au- any informal proceedings as provided
thority of the Administrator, under 49 in paragraph (b)(2) of this section, or
U.S.C. 46301, to initiate civil penalty after failure of the respondent to re-
actions in accordance with TSA poli- spond in a timely manner to a notice of
cies and procedures promulgated pursu- violation. A final notice and order will
ant to 49 U.S.C. 46301 et seq. and 49 CFR be sent to the individual charged with
247
a violation. The final notice and order a compromise order will be issued in
will contain a statement of the charges that amount; or
and the amount of the proposed civil (ii) Requests a hearing in which case
penalty and, as a result of information a complaint will be filed with the En-
submitted to the agency attorney dur- forcement Docket Clerk.
ing any informal procedures, may re- (5) Unless there is an appeal to the
flect a modified allegation or proposed TSA decision maker, filed in a timely
civil penalty. A final notice and order manner, an initial decision or order of
may be issued— an administrative law judge will be
(1) If the person charged with a viola- considered an order assessing civil pen-
tion fails to respond to the notice of alty if an administrative law judge
violation within 30 days after receipt of finds that an alleged violation occurred
that notice; or and determines that a civil penalty, in
(2) If the parties participated in any an amount found to be appropriate by
informal procedures under paragraph the administrative law judge, is war-
(b)(2) of this section and the parties ranted.
have not agreed to compromise the ac- (6) Unless a petition for review is
tion or the agency attorney has not filed with a U.S. court of appeals in a
agreed to withdraw the notice of viola- timely manner, a final decision and
tion. order of the Administrator will be con-
(d) Order assessing civil penalty. An sidered an order assessing civil penalty
order assessing civil penalty may be if the TSA decision maker finds that
issued after notice and opportunity for an alleged violation occurred and a
a hearing. A person charged with a vio- civil penalty is warranted.
lation may be subject to an order as-
sessing civil penalty in the following
circumstances: Subparts D–F [Reserved]
(1) An order assessing civil penalty
may be issued if a person charged with Subpart G—Rules of Practice in
a violation submits, or agrees to sub- Transportation Security Ad-
mit, the amount of civil penalty pro- ministration (TSA) Civil Penalty
posed in the notice of violation. Actions
(2) An order assessing civil penalty
may be issued if a person charged with § 1503.201 Applicability.
a violation submits, or agrees to sub- (a) This subpart applies to the fol-
mit, an agreed-upon amount of civil
lowing actions:
penalty that is not reflected in either
(1) A civil penalty action in which a
the notice of violation or the final no-
tice and order. request for hearing has been filed and
the amount sought does not exceed
(3) The final notice and order be-
$50,000 for a violation arising under 49
comes (and contains a statement so in-
U.S.C. chapter 449 (except sections
dicating) an order assessing a civil pen-
alty when the person charged with a 44902, 44903(d), 44907(a)–(d)(1)(A),
violation submits the amount of the 44907(d)(1)(C)–(f), 44908, and 44909), or a
proposed civil penalty that is reflected regulation prescribed or order issued
in the final notice and order. under any of those provisions.
(4) The final notice and order be- (b) [Reserved]
comes (and contains a statement so in- (c) Notwithstanding the provisions of
dicating) an order assessing a civil pen- paragraph (a) of this section, the
alty 16 days after receipt of the final United States district courts will have
notice and order, unless not later than exclusive jurisdiction of any civil pen-
15 days after receipt of the final notice alty action initiated by the Adminis-
and order, the person charged with a trator:
violation does one of the following— (1) Which involves an amount in con-
(i) Submits an agreed-upon amount troversy in excess of $50,000;
of civil penalty that is not reflected in (2) Which is an in rem action or in
the final notice and order, in which which an in rem action based on the
case an order assessing civil penalty or same violation has been brought;
248
(3) Regarding which an aircraft sub- penalty. Unless there is an appeal to

ject to lien has been seized by the the TSA decision maker, filed in a
United States; and timely manner, an initial decision or
(4) In which a suit for injunctive re- order of an administrative law judge
lief based on the violation giving rise will be considered an order assessing
to the civil penalty has also been civil penalty if an administrative law
brought. judge finds that an alleged violation
occurred and determines that a civil
§ 1503.202 Definitions. penalty, in an amount found appro-
The following definitions apply to priate by the administrative law judge,
this subpart: is warranted. Unless a petition for re-
Administrative law judge means an ad- view is filed with a U.S. court of ap-
ministrative law judge appointed pur- peals in a timely manner, a final deci-
suant to the provisions of 5 U.S.C. 3105. sion and order of the Administrator
Agency attorney means the Deputy will be considered an order assessing
Chief Counsel for Civil Enforcement or civil penalty if the TSA decision maker
an attorney that he or she designates. finds that an alleged violation occurred
An agency attorney will not include: and a civil penalty is warranted.
(1) Any attorney in the Office of the Party means the respondent or the
Chief Counsel who advises the TSA de- complainant.
cision maker regarding an initial deci- Personal delivery includes hand-deliv-
sion or any appeal to the TSA decision ery or use of a contract or express mes-
maker; or senger service. Personal delivery does
(2) Any attorney who is supervised in not include the use of Government
a civil penalty action by a person who interoffice mail service.
provides such advice to the TSA deci- Pleading means a complaint, an an-
sion maker in that action or a factu- swer, and any amendment of these doc-
ally related action. uments permitted under this subpart.
Attorney means a person licensed by a Properly addressed means a document
state, the District of Columbia, or a that shows an address contained in
territory of the United States to prac- agency records, a residential, business,
tice law or appear before the courts of or other address submitted by a person
that state or territory. on any document provided under this
Complainant means those persons subpart, or any other address shown by
within the TSA responsible for inves- other reasonable and available means.
tigating and bringing possible viola- Respondent means a person, corpora-
tions of statute and regulation. tion, or company named in a com-
Complaint means a document issued plaint.
by an agency attorney alleging a viola- TSA decision maker means the Admin-
tion of 49 U.S.C. chapter 449 (except istrator, acting in the capacity of the
sections 44902, 44903(d), 44907(a)– decision maker on appeal, or any per-
(d)(1)(A), 44907(d)(1)(C)–(f), 44908, and son to whom the Administrator has
44909), or a regulation prescribed or delegated the Administrator’s decision-
order issued under any of those provi- making authority in a civil penalty ac-
sions that has been filed with the en- tion. As used in this subpart, the TSA
forcement docket after a hearing has decision maker is the official authorized
been requested pursuant to to issue a final decision and order of
§ 1503.16(d)(3) or § 1503.16(e)(2)(ii). the Administrator in a civil penalty ac-
Mail includes U.S. certified mail, U.S. tion.
registered mail, or use of an overnight
express courier service. [67 FR 51483, Aug. 8, 2002, as amended at 68
Order assessing civil penalty means a FR 49720, Aug. 19, 2003]
document that contains a finding of
§ 1503.203 Separation of functions.
violation of 49 U.S.C. chapter 449 (ex-
cept sections 44902, 44903(d), 44907(a)– (a) Civil penalty proceedings, includ-
(d)(1)(A), 44907(d)(1)(C)–(f), 44908, and ing hearings, will be prosecuted by an
44909), or a regulation prescribed or agency attorney.
order issued under any of those provi- (b) An agency employee engaged in
sions and may direct payment of a civil the performance of investigative or
249
prosecutorial functions in a civil pen- (5) Receive relevant and material evi-
alty action must not, in that case or a dence;
factually related case, participate or (6) Regulate the course of the hearing
give advice in a decision by the admin- in accordance with the rules of this
istrative law judge or by the TSA deci- subpart;
sion maker on appeal, except as coun- (7) Hold conferences to settle or to
sel or a witness in the public pro- simplify the issues by consent of the
ceedings. parties;
(c) The Chief Counsel or an attorney (8) Dispose of procedural motions and
not covered by paragraph (b) of this requests; and
section will advise the TSA decision
(9) Make findings of fact and conclu-
maker regarding an initial decision or
sions of law, and issue an initial deci-
any appeal of a civil penalty action to
sion.
the TSA decision maker.
(b) Limitations on the power of the ad-
§ 1503.204 Appearances and rights of ministrative law judge. The administra-
parties. tive law judge must not issue an order
of contempt, award costs to any party,
(a) Any party may appear and be
or impose any sanction not specified in
heard in person.
this subpart. If the administrative law
(b) Any party may be accompanied,
judge imposes any sanction not speci-
represented, or advised by an attorney
fied in this subpart, a party may file an
or representative designated by the
interlocutory appeal of right pursuant
party and may be examined by that at-
to § 1503.219(c)(4). This section does not
torney or representative in any pro-
ceeding governed by this subpart. An preclude an administrative law judge
attorney or representative who rep- from issuing an order that bars a per-
resents a party may file a notice of ap- son from a specific proceeding based on
pearance in the action, in the manner a finding of obstreperous or disruptive
provided in § 1503.210, and must serve a behavior in that specific proceeding.
copy of the notice of appearance on (c) Disqualification. The administra-
each party, in the manner provided in tive law judge may disqualify himself
§ 1503.211, before participating in any or herself at any time. A party may file
proceeding governed by this subpart. a motion, pursuant to § 1503.218(f)(6), re-
The attorney or representative must questing that an administrative law
include the name, address, and tele- judge be disqualified from the pro-
phone number of the attorney or rep- ceedings.
resentative in the notice of appearance.
(c) Any person may request a copy of § 1503.206 Intervention.
a document upon payment of reason- (a) A person may submit a motion for
able costs. A person may keep an origi- leave to intervene as a party in a civil
nal document, data, or evidence, with penalty action. Except for good cause
the consent of the administrative law shown, a motion for leave to intervene
judge, by substituting a legible copy of must be submitted not later than 10
the document for the record. days before the hearing.
(b) If the administrative law judge
§ 1503.205 Administrative law judges.
finds that intervention will not unduly
(a) Powers of an administrative law broaden the issues or delay the pro-
judge. In accordance with the rules of ceedings, the administrative law judge
this subpart, an administrative law may grant a motion for leave to inter-
judge may: vene if the person will be bound by any
(1) Give notice of, and hold, pre-hear- order or decision entered in the action
ing conferences and hearings; or the person has a property, financial,
(2) Administer oaths and affirma- or other legitimate interest that may
tions; not be addressed adequately by the par-
(3) Issue subpoenas authorized by law ties. The administrative law judge may
and issue notices of deposition re- determine the extent to which an in-
quested by the parties;
tervenor may participate in the pro-

(4) Rule on offers of proof; ceedings.
250
§ 1503.207 Certification of documents. complaint with the Enforcement Dock-

(a) Signature required. The attorney of et Clerk, or may file a written motion
record, the party, or the party’s rep- pursuant to § 1503.218(f)(2)(i) instead of
resentative must sign each document filing a complaint, not later than 20
tendered for filing with the Enforce- days after receipt by the agency attor-
ment Docket Clerk, or served on the ney of a request for hearing. The agen-
administrative law judge, the TSA de- cy attorney should suggest a location
cision maker on appeal, or each party. for the hearing when filing the com-
(b) Effect of signing a document. By plaint.
signing a document, the attorney of (b) Service. An agency attorney must
record, the party, or the party’s rep- personally deliver or mail a copy of the
resentative certifies that the attorney, complaint to the respondent, the presi-
the party, or the party’s representative dent of the corporation or company
has read the document and, based on named as a respondent, or a person des-
reasonable inquiry and to the best of ignated by the respondent to accept
that person’s knowledge, information, service of documents in the civil pen-
and belief, the document is— alty action.
(1) Consistent with the rules in this (c) Contents. A complaint must set
part; forth the facts alleged, any regulation
(2) Warranted by existing law or that allegedly violated by the respondent,
a good faith argument exists for exten- and the proposed civil penalty in suffi-
sion, modification, or reversal of exist- cient detail to provide notice of any
ing law; and factual or legal allegation and pro-
(3) Not unreasonable or unduly bur- posed civil penalty.
densome or expensive, not made to har- (d) [Reserved]
ass any person, not made to cause un-
necessary delay, not made to cause § 1503.209 Answer.
needless increase in the cost of the pro- (a) Writing required. A respondent
ceedings, or for any other improper must file a written answer to the com-
purpose. plaint, or may file a written motion
(c) Sanctions. If the attorney of pursuant to § 1503.218(f)(1)-(4) instead of
record, the party, or the party’s rep- filing an answer, not later than 30 days
resentative signs a document in viola- after service of the complaint. The an-
tion of this section, the administrative swer may be in the form of a letter but
law judge or the TSA decision maker, must be dated and signed by the person
as appropriate, will: responding to the complaint. An an-
(1) Strike the pleading signed in vio- swer may be typewritten or may be
lation of this section; legibly handwritten.
(2) Strike the request for discovery or (b) Filing and address. A person filing
the discovery response signed in viola- an answer must personally deliver or
tion of this section and preclude fur- mail the original and one copy of the
ther discovery by the party; answer for filing with the Enforcement
(3) Deny the motion or request signed Docket Clerk, not later than 30 days
in violation of this section; after service of the complaint. Filing
(4) Exclude the document signed in must be made by mail to the U.S. De-
violation of this section from the partment of Homeland Security, Trans-
record; portation Security Administration, Of-
(5) Dismiss the interlocutory appeal fice of the Chief Counsel, TSA–2, Atten-
and preclude further appeal on that tion: Enforcement Docket Clerk, 601
issue by the party who filed the appeal South 12th Street, Arlington, VA 22202–
until an initial decision has been en- 4220 or by personal delivery to TSA En-
tered on the record; or forcement Docket, TSA Headquarters,
(6) Dismiss the appeal of the adminis- Visitor Center, 701 South 12th Street,
trative law judge’s initial decision to Arlington, Virginia 22202. The person
the TSA decision maker. filing an answer should suggest a loca-
tion for the hearing when filing the an-
§ 1503.208 Complaint. swer.
(a) Filing. The agency attorney must (c) Service. A person filing an answer
file the original and one copy of the must serve a copy of the answer on the
251
agency attorney who filed the com- (d) Contents. Unless otherwise speci-
plaint. fied in this subpart, each document
(d) Contents. An answer must specifi- must contain a short, plain statement
cally state any affirmative defense of the facts supporting the person’s po-
that the respondent intends to assert sition and a brief statement of the ac-
at the hearing. A person filing an an- tion requested in the document.
swer may include a brief statement of
any relief requested in the answer.
FR 49720, Aug. 19, 2003; 68 FR 58281, Oct. 9,
(e) Specific denial of allegations re- 2003]
quired. A person filing an answer must
admit, deny, or state that the person is § 1503.211 Service of documents.
without sufficient knowledge or infor-
mation to admit or deny, each num- (a) General. A person must serve a
bered paragraph of the complaint. Any copy of any document filed with the
statement or allegation contained in Enforcement Docket on each party and
the complaint that is not specifically the administrative law judge or the
denied in the answer may be deemed an chief administrative law judge if no
admission of the truth of that allega- judge has been assigned to the pro-
tion. A general denial of the complaint ceeding at the time of filing. Service
is deemed a failure to file an answer. on a party’s attorney of record or a
(f) Failure to file answer. A person’s party’s designated representative is
failure to file an answer without good service on the party.
cause will be deemed an admission of (b) Type of service. A person may
the truth of each allegation contained serve documents by personal delivery
in the complaint. or by mail.
(c) Certificate of service. A person may
attach a certificate of service to a doc-
FR 49720, Aug. 19, 2003; 68 FR 58281, Oct. 9,
2003] ument tendered for filing with the En-
forcement Docket Clerk. A certificate
§ 1503.210 Filing of documents. of service must consist of a statement,
dated and signed by the person filing
(a) Address and method of filing. A
the document, that the document was
person tendering a document for filing
personally delivered or mailed to each
must personally deliver or mail the
party on a specific date.
signed original and one copy of each
document. Filing must be made either (d) Date of service. The date of service
by mail to the U.S. Department of will be the date of personal delivery; or
Homeland Security, Transportation Se- if mailed, the mailing date shown on
curity Administration, Office of the the certificate of service, the date
Chief Counsel, TSA–2, Attention: En- shown on the postmark if there is no
forcement Docket Clerk, 601 South 12th certificate of service, or other mailing
Street, Arlington, VA 22202–4220 or by date shown by other evidence if there
personal delivery to TSA Enforcement is no certificate of service or postmark.
Docket, TSA Headquarters, Visitor (e) Additional time after service by mail.
Center, 701 South 12th Street, Arling- Whenever a party has a right or a duty
ton, Virginia 22202. A person must to act or to make any response within
serve a copy of each document on each a prescribed period after service by
party in accordance with § 1503.211. mail, or on a date certain after service
(b) Date of filing. A document will be by mail, 5 days will be added to the
considered to be filed on the date of prescribed period.
personal delivery; or if mailed, the (f) Service by the administrative law
mailing date shown on the certificate judge. The administrative law judge
of service, the date shown on the post- must serve a copy of each document he
mark if there is no certificate of serv- or she issues including, but not limited
ice, or other mailing date shown by to, notices of pre-hearing conferences
other evidence if there is no certificate and hearings, rulings on motions, deci-
of service or postmark. sions, and orders, upon each party to
(c) Form. Each document must be the proceedings by personal delivery or

typewritten or legibly handwritten. by mail.
252
(g) Valid service. A document that was an extension of time where the parties
properly addressed, was sent in accord- agree to the extension.
ance with this subpart, and that was (b) Written motion. A party must file a
returned, that was not claimed, or that written motion for an extension of
was refused, is deemed to have been time not later than 7 days before the
served in accordance with this subpart. document is due unless good cause for
The service will be considered valid as the late filing is shown. The adminis-
of the date and the time that the docu- trative law judge may grant the exten-
ment was deposited with a contract or sion of time if good cause for the exten-
express messenger, the document was sion is shown.
mailed, or personal delivery of the doc- (c) Failure to rule. If the administra-
ument was refused. tive law judge fails to rule on a written
(h) Presumption of service. There will motion for an extension of time by the
be a presumption of service where a date the document was due, the motion
party or a person, who customarily re- for an extension of time is deemed
ceives mail, or receives it in the ordi- granted for no more than 20 days after
nary course of business, at either the the original date the document was to
person’s residence or the person’s prin- be filed.
cipal place of business, acknowledges
receipt of the document. § 1503.214 Amendment of pleadings.
§ 1503.212 Computation of time. (a) Filing and service. A party must
file the amendment with the Enforce-
(a) This section applies to any period
ment Docket Clerk and must serve a
of time prescribed or allowed by this
copy of the amendment on the adminis-
subpart, or by notice or order of the ad-
trative law judge and all parties to the
ministrative law judge.
proceeding.
(b) The date of an act, event, or de-
fault, after which a designated time pe- (b) Time. A party must file an amend-
riod begins to run, is not included in a ment to a complaint or an answer
computation of time under this sub- within the following:
part. (1) Not later than 15 days before the
(c) The last day of a time period is in- scheduled date of a hearing, a party
cluded in a computation of time unless may amend a complaint or an answer
it is a Saturday, Sunday, a legal holi- without the consent of the administra-
day, or a day on which the enforcement tive law judge.
docket is officially closed. If the last (2) Less than 15 days before the
day of the time period is a Saturday, scheduled date of a hearing, the admin-
Sunday, legal holiday, or a day on istrative law judge may allow amend-
which the enforcement docket is offi- ment of a complaint or an answer only
cially closed, the time period runs for good cause shown in a motion to
until the end of the next day that is amend.
not a Saturday, Sunday, legal holiday, (c) Responses. The administrative law
or a day on which the enforcement judge must allow a reasonable time,
docket is officially closed. but not more than 20 days from the
date of filing, for other parties to re-
§ 1503.213 Extension of time. spond if an amendment to a complaint,
(a) Oral requests. The parties may answer, or other pleading has been filed
agree to extend for a reasonable period with the administrative law judge.
the time for filing a document under
this subpart. If the parties agree, the § 1503.215 Withdrawal of complaint or
administrative law judge must grant request for hearing.
one extension of time to each party. At any time before or during a hear-
The party seeking the extension of ing, an agency attorney may withdraw
time must submit a draft order to the a complaint or a respondent may with-
administrative law judge to be signed draw a request for a hearing without
by the administrative law judge and the consent of the administrative law
filed with the Enforcement Docket judge. If an agency attorney withdraws
Clerk. The administrative law judge the complaint or a party withdraws the
may grant additional oral requests for request for a hearing and the answer,
253
the administrative law judge must dis- (e) Disputes. The administrative law
miss the proceedings under this sub- judge must resolve disputes regarding
part with prejudice. discovery or disputes regarding compli-
ance with the joint schedule as soon as
§ 1503.216 Waivers. possible so that the parties may con-
Waivers of any rights provided by tinue to comply with the joint sched-
statute or regulation must be in writ- ule.
ing or by stipulation made at a hearing (f) Sanctions for failure to comply with
and entered into the record. The par- joint schedule. If a party fails to comply
ties must set forth the precise terms of with the administrative law judge’s
the waiver and any conditions. order establishing a joint schedule, the
administrative law judge may direct
§ 1503.217 Joint procedural or dis- that party to comply with a motion or
covery schedule. discovery request or, limited to the ex-
(a) General. The parties may agree to tent of the party’s failure to comply
submit a schedule for filing all pre- with a motion or discovery request, the
hearing motions, a schedule for con- administrative law judge may:
ducting discovery in the proceedings, (1) Strike that portion of a party’s
or a schedule that will govern all pre- pleadings;
hearing motions and discovery in the (2) Preclude pre-hearing or discovery
proceedings. motions by that party;
(b) Form and content of schedule. If the (3) Preclude admission of that por-
parties agree to a joint procedural or tion of a party’s evidence at the hear-
discovery schedule, one of the parties ing; or
must file the joint schedule with the (4) Preclude that portion of the testi-
administrative law judge, setting forth mony of that party’s witnesses at the
the dates to which the parties have hearing.
agreed, and must serve a copy of the
joint schedule on each party. § 1503.218 Motions.
(1) The joint schedule may include, (a) General. A party applying for an
but need not be limited to, requests for order or ruling not specifically pro-
discovery, any objections to discovery vided in this subpart must do so by mo-
requests, responses to discovery re- tion. A party must comply with the re-
quests to which there are no objec- quirements of this section when filing
tions, submission of pre-hearing mo- a motion. A party must serve a copy of
tions, responses to pre-hearing mo- each motion on each party.
tions, exchange of exhibits to be intro- (b) Form and contents. A party must
duced at the hearing, and a list of wit- state the relief sought by the motion
nesses that may be called at the hear- and the particular grounds supporting
ing. that relief. If a party has evidence in
(2) Each party must sign the original support of a motion, the party must at-
joint schedule to be filed with the En- tach any supporting evidence, includ-
forcement Docket Clerk. ing affidavits, to the motion.
(c) Time. The parties may agree to (c) Filing of motions. A motion made
submit all pre-hearing motions and re- prior to the hearing must be in writing
sponses and may agree to close dis- or orally on the record. Unless other-
covery in the proceedings under the wise agreed by the parties or for good
joint schedule within a reasonable time cause shown, a party must file any pre-
before the date of the hearing, but not hearing motion, and must serve a copy
later than 15 days before the hearing. on each party, not later than 30 days
(d) Order establishing joint schedule. before the hearing. Motions introduced
The administrative law judge must ap- during a hearing may be made orally
prove the joint schedule filed by the on the record unless the administrative
parties. One party must submit a draft law judge directs otherwise.
order establishing a joint schedule to (d) Answers to motions. Any party may
the administrative law judge to be file an answer, with affidavits or other
signed by the administrative law judge evidence in support of the answer, not
and filed with the Enforcement Docket later than 10 days after service of a
Clerk. written motion on that party. When a
254
motion is made during a hearing, the the motion to dismiss under

answer may be made at the hearing on § 1503.219(b).
the record, orally or in writing, within (i) Motion to dismiss a request for a
a reasonable time determined by the hearing. An agency attorney may file a
administrative law judge. motion to dismiss a request for a hear-
(e) Rulings on motions. The adminis- ing instead of filing a complaint. If the
trative law judge must rule on all mo- motion to dismiss is not granted, the
tions as follows: agency attorney must file the com-
(1) Discovery motions. The administra- plaint and must serve a copy of the
tive law judge must resolve all pending complaint on each party not later than
discovery motions not later than 10 20 days after service of the administra-
days before the hearing. tive law judge’s ruling or order on the
(2) Pre-hearing motions. The adminis- motion to dismiss. If the motion to dis-
trative law judge must resolve all miss is granted and the proceedings are
pending pre-hearing motions not later terminated without a hearing, the re-
than 7 days before the hearing. If the spondent may file an appeal pursuant
administrative law judge issues a rul- to § 1503.233. If required by the decision
ing or order orally, the administrative on appeal, the agency attorney must
law judge must serve a written copy of file a complaint and must serve a copy
the ruling or order, within 3 days, on of the complaint on each party not
later than 20 days after service of the
each party. In all other cases, the ad-
decision on appeal.
ministrative law judge must issue rul-
(ii) Motion to dismiss a complaint. A re-
ings and orders in writing and must
spondent may file a motion to dismiss
serve a copy of the ruling or order on
a complaint instead of filing an answer.
each party.
If the motion to dismiss is not granted,
(3) Motions made during the hearing. the respondent must file an answer and
The administrative law judge may must serve a copy of the answer on
issue rulings and orders on motions each party not later than 20 days after
made during the hearing orally. Oral service of the administrative law
rulings or orders on motions must be judge’s ruling or order on the motion
made on the record. to dismiss. If the motion to dismiss is
(f) Specific motions. A party may file granted and the proceedings are termi-
the following motions with the En- nated without a hearing, the agency
forcement Docket Clerk: attorney may file an appeal pursuant
(1) Motion to dismiss for insufficiency. to § 1503.233. If required by the decision
A respondent may file a motion to dis- on appeal, the respondent must file an
miss the complaint for insufficiency in- answer and must serve a copy of the
stead of filing an answer. If the admin- answer on each party not later than 10
istrative law judge denies the motion days after service of the decision on ap-
to dismiss the complaint for insuffi- peal.
ciency, the respondent must file an an- (3) Motion for more definite statement.
swer not later than 20 days after serv- A party may file a motion for more
ice of the administrative law judge’s definite statement of any pleading that
denial of the motion. A motion to dis- requires a response under this subpart.
miss the complaint for insufficiency A party must set forth, in detail, the
must show that the complaint fails to indefinite or uncertain allegations con-
state a violation of 49 U.S.C. chapter tained in a complaint or response to
449 (except sections 44902, 44903(d), any pleading and must submit the de-
44907(a)-(d)(1)(A), 44907(d)(1)(C)-(f), tails that the party believes would
44908, and 44909), or a regulation pre- make the allegation or response defi-
scribed or order issued under any of nite and certain.
those provisions. (i) Complaint. A respondent may file a
(2) Motion to dismiss. A party may file motion requesting a more definite
a motion to dismiss, specifying the statement of the allegations contained
grounds for dismissal. If an administra- in the complaint instead of filing an
tive law judge grants a motion to dis- answer. If the administrative law judge
miss in part, a party may appeal the grants the motion, the agency attorney
administrative law judge’s ruling on must supply a more definite statement
255
not later than 15 days after service of the administrative law judge has been
the ruling granting the motion. If the assigned to the proceedings but must
agency attorney fails to supply a more make the motion before the adminis-
definite statement, the administrative trative law judge files an initial deci-
law judge must strike the allegations sion in the proceedings.
in the complaint to which the motion (i) Motion and supporting affidavit. A
is directed. If the administrative law party must state the grounds for dis-
judge denies the motion, the respond- qualification, including, but not lim-
ent must file an answer and must serve ited to, personal bias, pecuniary inter-
a copy of the answer on each party not est, or other factors showing disquali-
later than 20 days after service of the fication, in the motion for disqualifica-
order of denial. tion. A party must submit an affidavit
(ii) Answer. An agency attorney may
with the motion for disqualification
file a motion requesting a more defi-
that sets forth, in detail, the matters
nite statement if an answer fails to re-
alleged to constitute grounds for dis-
spond clearly to the allegations in the
qualification.
complaint. If the administrative law
judge grants the motion, the respond- (ii) Answer. A party must respond to
ent must supply a more definite state- the motion for disqualification not
ment not later than 15 days after serv- later than 5 days after service of the
ice of the ruling on the motion. If the motion for disqualification.
respondent fails to supply a more defi- (iii) Decision on motion for disqualifica-
nite statement, the administrative law tion. The administrative law judge
judge must strike those statements in must render a decision on the motion
the answer to which the motion is di- for disqualification not later than 20
rected. The respondent’s failure to sup- days after the motion has been filed. If
ply a more definite statement may be the administrative law judge finds that
deemed an admission of unanswered al- the motion for disqualification and
legations in the complaint. supporting affidavit show a basis for
(4) Motion to strike. Any party may disqualification, the administrative
make a motion to strike any insuffi- law judge must withdraw from the pro-
cient allegation or defense, or any re- ceedings immediately. If the adminis-
dundant, immaterial, or irrelevant trative law judge finds that disquali-
matter in a pleading. A party must file fication is not warranted, the adminis-
a motion to strike before a response is trative law judge must deny the mo-
required under this subpart or, if a re- tion and state the grounds for the de-
sponse is not required, not later than 10 nial on the record. If the administra-
days after service of the pleading. tive law judge fails to rule on a party’s
(5) Motion for decision. A party may motion for disqualification within 20
make a motion for decision, regarding days after the motion has been filed,
all or any part of the proceedings, at the motion is deemed granted.
any time before the administrative law (iv) Appeal. A party may appeal the
judge has issued an initial decision in administrative law judge’s denial of
the proceedings. The administrative
the motion for disqualification in ac-
law judge must grant a party’s motion
cordance with § 1503.219(b).
for decision if the pleadings, deposi-
tions, answers to interrogatories, ad- § 1503.219 Interlocutory appeals.
missions, matters that the administra-
tive law judge has officially noticed, or (a) General. Unless otherwise pro-
evidence introduced during the hearing vided in this subpart, a party may not
show that there is no genuine issue of appeal a ruling or decision of the ad-
material fact and that the party mak- ministrative law judge to the TSA de-
ing the motion is entitled to a decision cision maker until the initial decision
as a matter of law. The party making has been entered on the record. A deci-
the motion for decision has the burden sion or order of the TSA decision
of showing that there is no genuine maker on the interlocutory appeal does
issue of material fact. not constitute a final order of the Ad-
(6) Motion for disqualification. A party ministrator for the purposes of judicial
may file the motion at any time after appellate review under 49 U.S.C. 46110.
256
(b) Interlocutory appeal for cause. If a as a part of the decision in the pro-
party files a written request for an in- ceedings, within a reasonable time
terlocutory appeal for cause with the after receipt of the interlocutory ap-
administrative law judge, or orally re- peal.
quests an interlocutory appeal for (e) Frivolous appeals. The TSA deci-
cause, the proceedings are stayed until sion maker may reject frivolous, repet-
the administrative law judge issues a itive, or dilatory appeals, and may
decision on the request. If the adminis- issue an order precluding one or more
trative law judge grants the request, parties from making further interlocu-
the proceedings are stayed until the tory appeals in a proceeding in which
TSA decision maker issues a decision there have been frivolous, repetitive, or
on the interlocutory appeal. The ad- dilatory interlocutory appeals.
ministrative law judge must grant an
interlocutory appeal for cause if a § 1503.220 Discovery.
party shows that delay of the appeal (a) Initiation of discovery. Any party
would be detrimental to the public in- may initiate discovery described in
terest or would result in undue preju- this section, without the consent or ap-
dice to any party. proval of the administrative law judge,
(c) Interlocutory appeals of right. If a at any time after a complaint has been
party notifies the administrative law filed in the proceedings.
judge of an interlocutory appeal of (b) Methods of discovery. The fol-
right, the proceedings are stayed until lowing methods of discovery are per-
the TSA decision maker issues a deci- mitted under this section: depositions
sion on the interlocutory appeal. A on oral examination or written ques-
party may file an interlocutory appeal, tions of any person; written interrog-
without the consent of the administra- atories directed to a party; requests for
tive law judge, before an initial deci- production of documents or tangible
sion has been entered in the case of: items to any person; and requests for
(1) A ruling or order by the adminis- admission by a party. A party is not re-
trative law judge barring a person from quired to file written discovery re-
the proceedings. quests and responses with the adminis-
(2) Failure of the administrative law trative law judge or the Enforcement
judge to dismiss the proceedings in ac- Docket Clerk. In the event of a dis-
cordance with § 1503.215. covery dispute, a party must attach a
(3) A ruling or order by the adminis- copy of these documents in support of
trative law judge in violation of a motion made under this section.
§ 1503.205(b). (c) Service on the agency. A party
(4) A ruling or order by the adminis- must serve each discovery request di-
trative law judge regarding public ac- rected to the agency or any agency em-
cess to a particular docket or docu- ployee on the agency attorney of
ments. record.
(d) Procedure. Not later than 10 days (d) Time for response to discovery re-
after the administrative law judge’s de- quests. Unless otherwise directed by
cision forming the basis of an inter- this subpart or agreed by the parties, a
locutory appeal of right or not later party must respond to a request for
than 10 days after the administrative discovery, including filing objections
law judge’s decision granting an inter- to a request for discovery, not later
locutory appeal for cause, a party must than 30 days after service of the re-
file a notice of interlocutory appeal, quest.
with supporting documents, and the (e) Scope of discovery. Subject to the
party must serve a copy of the notice limits on discovery set forth in para-
and supporting documents on each graph (f) of this section, a party may
party. Not later than 10 days after discover any matter that is not privi-
service of the appeal brief, a party leged and that is relevant to the sub-
must file a reply brief, if any, and the ject matter of the proceeding. A party
party must serve a copy of the reply may discover information that relates
brief on each party. The TSA decision to the claim or defense of any party in-
maker must render a decision on the cluding the existence, description, na-
interlocutory appeal, on the record and ture, custody, condition, and location
257
of any document or other tangible item that the material may be discovered
and the identity and location of any and disclosed under limited conditions
person having knowledge of discover- or may be used only under certain
able matter. A party may discover terms and conditions.
facts known, or opinions held, by an (4) If the administrative law judge de-
expert who any other party expects to termines that the requested material is
call to testify at the hearing. A party necessary to decide the case and that a
may not object to a discovery request confidential order is warranted, the ad-
on the basis that the information ministrative law judge must provide:
sought would not be admissible at the (i) An opportunity for review of the
hearing if the information sought dur- document by the parties off the record;
ing discovery is reasonably calculated (ii) Procedures for excluding the in-
to lead to the discovery of admissible formation from the record; and
evidence. (iii) Order that the parties must not
(f) Limiting discovery. The administra- disclose the information in any manner
tive law judge must limit the fre- and the parties must not use the infor-
quency and extent of discovery per- mation in any other proceeding.
mitted by this section if a party shows (h) Protective orders. A party or a per-
that— son who has received a request for dis-
(1) The information requested is cu- covery may file a motion for protective
mulative or repetitious; order and must serve a copy of the mo-
(2) The information requested can be tion for protective order on each party.
obtained from another less burdensome The party or person making the mo-
and more convenient source; tion must show that the protective
(3) The party requesting the informa- order is necessary to protect the party
tion has had ample opportunity to ob- or the person from annoyance, embar-
tain the information through other dis- rassment, oppression, or undue burden
covery methods permitted under this or expense. As part of the protective
section; or order, the administrative law judge
(4) The method or scope of discovery may:
requested by the party is unduly bur- (1) Deny the discovery request;
densome or expensive. (2) Order that discovery be conducted
(g) Confidential orders. A party or per- only on specified terms and conditions,
son who has received a discovery re- including a designation of the time or
quest for information that is related to place for discovery or a determination
a trade secret, confidential or sensitive of the method of discovery; or
material, competitive or commercial (3) Limit the scope of discovery or
information, proprietary data, or infor- preclude any inquiry into certain mat-
mation on research and development, ters during discovery.
may file a motion for a confidential (i) Duty to supplement or amend re-
order with the administrative law sponses. A party who has responded to a
judge and must serve a copy of the mo- discovery request has a duty to supple-
tion for a confidential order on each ment or amend the response, as soon as
party. the information is known, as follows:
(1) The party or person making the (1) A party must supplement or
motion must show that the confiden- amend any response to a question re-
tial order is necessary to protect the questing the identity and location of
information from disclosure to the pub- any person having knowledge of discov-
lic. erable matters.
(2) If the administrative law judge de- (2) A party must supplement or
termines that the requested material is amend any response to a question re-
not necessary to decide the case, the questing the identity of each person
administrative law judge must pre- who will be called to testify at the
clude any inquiry into the matter by hearing as an expert witness and the
any party. subject matter and substance of that
(3) If the administrative law judge de- witness’ testimony.
termines that the requested material (3) A party must supplement or
may be disclosed during discovery, the amend any response that was incorrect
administrative law judge may order when made or any response that was
258
correct when made but is no longer under this subpart to the extent that
correct, accurate, or complete. the response is relevant, material, and
(j) Depositions. The following rules not repetitious.
apply to depositions taken pursuant to (1) A party must not serve more than
this section: 30 interrogatories to each other party.
(1) Form. A deposition must be taken Each subpart of an interrogatory will
on the record and reduced to writing. be counted as a separate interrogatory.
The person being deposed must sign the (2) Before serving additional inter-
deposition unless the parties agree to rogatories on a party, a party must file
waive the requirement of a signature. a motion for leave to serve additional
(2) Administration of oaths. Within the interrogatories on a party with the ad-
United States, or a territory or posses- ministrative law judge and must serve
sion subject to the jurisdiction of the a copy on each party before serving ad-
United States, a party must take a ditional interrogatories on a party.
deposition before a person authorized The administrative law judge may
to administer oaths by the laws of the grant the motion only if the party
United States or authorized by the law shows good cause for the party’s failure
of the place where the examination is to inquire about the information pre-
held. In foreign countries, a party will viously and that the information can-
take a deposition in any manner al- not reasonably be obtained using less
lowed by the Federal Rules of Civil burdensome discovery methods or be
Procedure (28 U.S.C. App.). obtained from other sources.
(3) Notice of deposition. A party must (l) Requests for admission. A party
serve a notice of deposition, stating the may serve a written request for admis-
time and place of the deposition and sion of the truth of any matter within
the name and address of each person to the scope of discovery under this sec-
be examined, on the person to be de- tion or the authenticity of any docu-
posed, on the administrative law judge, ment described in the request. A party
on the Enforcement Docket Clerk, and must set forth each request for admis-
on each party not later than 7 days be- sion separately. A party must serve
fore the deposition. A party may serve copies of documents referenced in the
a notice of deposition less than 7 days request for admission unless the docu-
before the deposition only with consent ments have been provided or are rea-
of the administrative law judge. If a sonably available for inspection and
subpoena duces tecum is to be served copying.
on the person to be examined, the (1) Time. A party’s failure to respond
party must attach a copy of the sub- to a request for admission, in writing
poena duces tecum that describes the and signed by the attorney or the
materials to be produced at the deposi- party, not later than 30 days after serv-
tion to the notice of deposition. ice of the request, is deemed an admis-
(4) Use of depositions. A party may use sion of the truth of the statement or
any part or all of a deposition at a statements contained in the request for
hearing authorized under this subpart admission. The administrative law
only upon a showing of good cause. The judge may determine that a failure to
deposition may be used against any respond to a request for admission is
party who was present or represented not deemed an admission of the truth if
at the deposition or who had reason- a party shows that the failure was due
able notice of the deposition. to circumstances beyond the control of
(k) Interrogatories. A party, the par- the party or the party’s attorney.
ty’s attorney, or the party’s represent- (2) Response. A party may object to a
ative may sign the party’s responses to request for admission and must state
interrogatories. A party must answer the reasons for objection. A party may
each interrogatory separately and com- specifically deny the truth of the mat-
pletely in writing. If a party objects to ter or describe the reasons why the
an interrogatory, the party must state party is unable to truthfully deny or
the objection and the reasons for the admit the matter. If a party is unable
objection. An opposing party may use to deny or admit the truth of the mat-
any part or all of a party’s responses to ter, the party must show that the
interrogatories at a hearing authorized party has made reasonable inquiry into
259
the matter or that the information (b) Date, time, and location of the hear-
known to, or readily obtainable by, the ing. The administrative law judge to
party is insufficient to enable the whom the proceedings have been as-
party to admit or deny the matter. A signed must set a reasonable date,
party may admit or deny any part of time, and location for the hearing. The
the request for admission. If the ad- administrative law judge must consider
ministrative law judge determines that the need for discovery and any joint
a response does not comply with the re- procedural or discovery schedule sub-
quirements of this rule or that the remitted by the parties when deter-
sponse is insufficient, the matter is mining the hearing date. The adminis-
deemed admitted. trative law judge must give due regard
(3) Effect of admission. Any matter ad- to the convenience of the parties, the
mitted or deemed admitted under this location where the majority of the wit-
section is conclusively established for nesses reside or work, and whether the
the purpose of the hearing and appeal. location is served by a scheduled air
(m) Motion to compel discovery. A carrier.
party may make a motion to compel § 1503.222 Evidence.
discovery if a person refuses to answer
a question during a deposition, a party (a) General. A party is entitled to
fails or refuses to answer an interrog- present the party’s case or defense by
atory, if a person gives an evasive or oral, documentary, or demonstrative
incomplete answer during a deposition evidence, to submit rebuttal evidence,
or when responding to an interrog- and to conduct any cross-examination
atory, or a party fails or refuses to that may be required for a full and true
produce documents or tangible items. disclosure of the facts.
During a deposition, the proponent of a (b) Admissibility. A party may intro-
question may complete the deposition duce any oral, documentary, or demon-
or may adjourn the examination before strative evidence in support of the par-
making a motion to compel if a person ty’s case or defense. The administra-
refuses to answer. tive law judge must admit any oral,
documentary, or demonstrative evi-
(n) Failure to comply with a discovery
dence introduced by a party but must
order or order to compel. If a party fails
exclude irrelevant, immaterial, or un-
to comply with a discovery order or an
duly repetitious evidence.
order to compel, the administrative
(c) Hearsay evidence. Hearsay evi-
law judge, limited to the extent of the
dence is admissible in proceedings gov-
party’s failure to comply with the dis-
erned by this subpart. The fact that
covery order or motion to compel,
evidence submitted by a party is hear-
may:
say goes only to the weight of the evi-
(1) Strike that portion of a party’s dence and does not affect its admissi-
pleadings; bility.
(2) Preclude prehearing or discovery
motions by that party; § 1503.223 Standard of proof.
(3) Preclude admission of that por- The administrative law judge may
tion of a party’s evidence at the hear- issue an initial decision or may rule in
ing; or a party’s favor only if the decision or
(4) Preclude that portion of the testi- ruling is supported by, and in accord-
mony of that party’s witnesses at the ance with, the reliable, probative, and
hearing. substantial evidence contained in the
record. In order to prevail, the party
§ 1503.221 Notice of hearing. with the burden of proof must prove
(a) Notice. The administrative law the party’s case or defense by a prepon-
judge must give each party at least 60 derance of reliable, probative, and sub-
days notice of the date, time, and loca- stantial evidence.
tion of the hearing. With the consent of
the administrative law judge, the par- § 1503.224 Burden of proof.
ties may agree to hold the hearing on (a) Except in the case of an affirma-
an earlier date than the date specified tive defense, the burden of proof is on
in the notice of hearing. the agency.
260
(b) Except as otherwise provided by hearing or to require the production of

statute or rule, the proponent of a mo- documents or tangible items from the
tion, request, or order has the burden administrative law judge who is as-
of proof. signed to the case, or, if no administra-
(c) A party who has asserted an af- tive law judge is assigned or the as-
firmative defense has the burden of signed law judge is unavailable, from
proving the affirmative defense. the chief administrative law judge. The
party must complete the subpoena,
§ 1503.225 Offer of proof. stating the title of the action and the
A party whose evidence has been ex- date and time for the witness’ attend-
cluded by a ruling of the administra- ance or production of documents or
tive law judge may offer the evidence items. The party who obtained the sub-
for the record on appeal. poena must serve the subpoena on the
witness.
§ 1503.226 Public disclosure of evi- (b) Motion to quash or modify the sub-
dence. poena. A party, or any person upon
This section applies to information whom a subpoena has been served, may
other than Sensitive Security Informa- file a motion to quash or modify the
tion (SSI). All release of SSI is gov- subpoena at or before the time speci-
erned by § 1503.230. fied in the subpoena for compliance.
(a) The administrative law judge may The applicant must describe, in detail,
order that any other information con- the basis for the application to quash
tained in the record be withheld from or modify the subpoena including, but
public disclosure. Any person may ob- not limited to, a statement that the
ject to disclosure of information in the testimony, document, or tangible evi-
record by filing a written motion to dence is not relevant to the proceeding,
withhold specific information with the that the subpoena is not reasonably
administrative law judge and serving a tailored to the scope of the proceeding,
copy of the motion on each party. The or that the subpoena is unreasonable
party must state the specific grounds and oppressive. A motion to quash or
for nondisclosure in the motion. modify the subpoena will stay the ef-
(b) The administrative law judge fect of the subpoena pending a decision
must grant the motion to withhold in- by the administrative law judge on the
formation in the record if, based on the motion.
motion and any response to the mo- (c) Enforcement of subpoena. Upon a
tion, the administrative law judge de- showing that a person has failed or re-
termines that disclosure would be det- fused to comply with a subpoena, a
rimental to transportation safety, dis- party may apply to the local Federal
closure would not be in the public in- district court to seek judicial enforce-
terest, or that the information is not ment of the subpoena in accordance
otherwise required to be made avail- with 49 U.S.C. 46104.
able to the public.
§ 1503.229 Witness fees.
§ 1503.227 Expert or opinion witnesses. (a) General. Unless otherwise author-
An employee of the agency may not ized by the administrative law judge,
be called as an expert or opinion wit- the party who applies for a subpoena to
ness, for any party other than the TSA, compel the attendance of a witness at
in any proceeding governed by this sub- a deposition or hearing, or the party at
part. An employee of a respondent may whose request a witness appears at a
not be called by an agency attorney as deposition or hearing, must pay the
an expert or opinion witness for the witness fees described in this section.
TSA in any proceeding governed by (b) Amount. Except for an employee
this subpart to which the respondent is of the agency who appears at the direc-
a party. tion of the agency, a witness who ap-
pears at a deposition or hearing is enti-
§ 1503.228 Subpoenas. tled to the same fees and mileage ex-
(a) Request for subpoena. A party may penses as are paid to a witness in a
obtain a subpoena to compel the at- court of the United States in com-
tendance of a witness at a deposition or parable circumstances.
261
§ 1503.230 Record. are entitled to submit oral proposed

findings of fact and conclusions of law,
(a) Exclusive record. The request for
exceptions to rulings of the adminis-
hearing, complaint, answer, transcript
of all testimony in the hearing, all ex- trative law judge, and supporting argu-
hibits received into evidence, and all ments for the findings, conclusions, or
motions, applications, requests, and exceptions. At the conclusion of the
rulings will constitute the exclusive hearing, a party may waive final oral
record for decision of the proceedings argument.
and the basis for the issuance of any (c) Posthearing briefs. The administra-
orders in the proceeding. tive law judge may request written
(b) Examination and copying of posthearing briefs before the adminis-
record—(1) Generally. Any person inter- trative law judge issues an initial deci-
ested in reviewing or obtaining a copy sion in the proceedings. If a party files
of a record may do so only by submit- a written posthearing brief, the party
ting a FOIA request under 5 U.S.C. 552 must include proposed findings of fact
and 49 CFR part 7. Portions of the and conclusions of law, exceptions to
record may be exempt from disclosure rulings of the administrative law
pursuant to FOIA. judge, and supporting arguments for
(2) Docket Files or Documents Not for the findings, conclusions, or excep-
Public Disclosure. (i) Only the following tions. The administrative law judge
persons may review docket files or par- must give the parties a reasonable op-
ticular documents that are not for pub- portunity, not more than 30 days after
lic disclosure: receipt of the transcript, to prepare
(A) parties to the proceedings; and submit the briefs.
(B) their designated representatives;
and § 1503.232 Initial decision.
(C) persons who have a need to know (a) Contents. The administrative law
as determined by the Administrator. judge must issue an initial decision at
(ii) Those persons with permission to the conclusion of the hearing. In each
review these documents or docket files oral or written decision, the adminis-
may view the materials at the TSA En- trative law judge must include findings
forcement Docket, TSA Headquarters, of fact and conclusions of law, and the
Visitor Center, 701 South 12th Street, grounds supporting those findings and
Arlington, Virginia 22202. Persons with conclusions, upon all material issues of
access to these records may have a fact, the credibility of witnesses, the
copy of the records after payment of applicable law, any exercise of the ad-
reasonable costs. ministrative law judge’s discretion, the
[67 FR 51483, Aug. 8, 2002, as amended at 68 amount of any civil penalty found ap-
FR 49720, Aug. 19, 2003] propriate by the administrative law
judge, and a discussion of the basis for
§ 1503.231 Argument before the admin- any order issued in the proceedings.
istrative law judge. The administrative law judge is not re-
(a) Arguments during the hearing. Dur- quired to provide a written explanation
ing the hearing, the administrative law for rulings on objections, procedural
judge must give the parties a reason- motions, and other matters not di-
able opportunity to present arguments rectly relevant to the substance of the
on the record supporting or opposing initial decision. If the administrative
motions, objections, and rulings if the law judge refers to any previous unre-
parties request an opportunity for ar- ported or unpublished initial decision,
gument. The administrative law judge the administrative law judge must
may request written arguments during make copies of that initial decision
the hearing if the administrative law available to all parties and the TSA de-
judge finds that submission of written cision maker.
arguments would be reasonable. (b) Oral decision. Except as provided
(b) Final oral argument. At the conclu- in paragraph (c) of this section, at the
sion of the hearing and before the ad- conclusion of the hearing, the adminis-
ministrative law judge issues an initial trative law judge must issue the initial
decision in the proceedings, the parties decision and order orally on the record.
262
(c) Written decision. The administra- by filing an appeal brief with the En-
tive law judge may issue a written ini- forcement Docket Clerk.
tial decision not later than 30 days (1) Extension of time by agreement of
after the conclusion of the hearing or the parties. The parties may agree to
submission of the last post-hearing extend the time for perfecting the ap-
brief if the administrative law judge peal with the consent of the TSA deci-
finds that issuing a written initial de- sion maker. If the TSA decision maker
cision is reasonable. The administra- grants an extension of time to perfect
tive law judge must serve a copy of any the appeal, the Enforcement Docket
written initial decision on each party. Clerk will serve a letter confirming the
(d) Order assessing civil penalty. Unless extension of time on each party.
appealed pursuant to § 1503.233, the ini- (2) Written motion for extension. If the
tial decision issued by the administra- parties do not agree to an extension of
tive law judge will be considered an time for perfecting an appeal, a party
order assessing civil penalty if the ad- desiring an extension of time may file
ministrative law judge finds that an al- a written motion for an extension with
leged violation occurred and deter- the Enforcement Docket Clerk and
mines that a civil penalty, in an must serve a copy of the motion on
amount found appropriate by the ad- each party. The TSA decision maker
ministrative law judge, is warranted. may grant an extension if good cause
for the extension is shown in the mo-
§ 1503.233 Appeal from initial decision. tion.
(a) Notice of appeal. A party may ap- (d) Appeal briefs. A party must file
peal the initial decision, and any deci- the appeal brief with the TSA Enforce-
sion not previously appealed pursuant ment Docket Clerk and must serve a
to § 1503.219, by filing a notice of appeal copy of the appeal brief on each party.
with the Enforcement Docket Clerk. A (1) A party must set forth, in detail,
party must file the notice of appeal the party’s specific objections to the
with the U.S. Department of Homeland initial decision or rulings in the appeal
Security, Transportation Security Ad- brief. A party also must set forth, in
ministration, Office of the Chief Coun- detail, the basis for the appeal, the rea-
sel, TSA–2, Attention: Enforcement sons supporting the appeal, and the re-
Docket Clerk, 601 South 12th Street, lief requested in the appeal. If the
Arlington, VA 22202–4220. A party must party relies on evidence contained in
file the notice of appeal not later than the record for the appeal, the party
10 days after entry of the oral initial must specifically refer to the pertinent
decision on the record or service of the evidence contained in the transcript in
written initial decision on the parties the appeal brief.
and must serve a copy of the notice of (2) The TSA decision maker may dis-
appeal on each party. miss an appeal, on the TSA decision
(b) Issues on appeal. A party may ap- maker’s own initiative or upon motion
peal only the following issues: of any other party, where a party has
(1) Whether each finding of fact is filed a notice of appeal but fails to per-
supported by a preponderance of reli- fect the appeal by timely filing an ap-
able, probative, and substantial evi- peal brief.
dence; (e) Reply brief. Unless otherwise
(2) Whether each conclusion of law is agreed by the parties, any party may
made in accordance with applicable file a reply brief not later than 35 days
law, precedent, and public policy; and after the appeal brief has been served
(3) Whether the administrative law on that party. The party filing the
judge committed any prejudicial errors reply brief must serve a copy of the
during the hearing that support the ap- reply brief on each party. If the party
peal. relies on evidence contained in the
(c) Perfecting an appeal. Unless other- record for the reply, the party must
wise agreed by the parties, a party specifically refer to the pertinent evi-
must perfect an appeal, not later than dence contained in the transcript in
50 days after entry of the oral initial the reply brief.
decision on the record or service of the (1) Extension of time by agreement of

written initial decision on the party, the parties. The parties may agree to
263
extend the time for filing a reply brief cally refer to the pertinent evidence
with the consent of the TSA decision from the record in the brief.
maker. If the TSA decision maker (j) The TSA decision maker’s decision
grants an extension of time to file the on appeal. The TSA decision maker will
reply brief, the Enforcement Docket review the briefs on appeal and the oral
Clerk will serve a letter confirming the argument, if any, to determine if the
extension of time on each party. administrative law judge committed
(2) Written motion for extension. If the prejudicial error in the proceedings or
parties do not agree to an extension of that the initial decision should be af-
time for filing a reply brief, a party de- firmed, modified, or reversed. The TSA
siring an extension of time may file a decision maker may affirm, modify, or
written motion for an extension and reverse the initial decision, make any
will serve a copy of the motion on each necessary findings, or may remand the
party. The TSA decision maker may case for any proceedings that the TSA
grant an extension if good cause for the decision maker determines may be nec-
extension is shown in the motion. essary.
(f) Other briefs. The TSA decision (1) The TSA decision maker may
maker may allow any person to submit raise any issue, on the TSA decision
an amicus curiae brief in an appeal of maker’s own initiative, that is required
an initial decision. A party may not for proper disposition of the pro-
file more than one appeal brief or reply ceedings. The TSA decision maker will
brief. A party may petition the TSA give the parties a reasonable oppor-
decision maker, in writing, for leave to tunity to submit arguments on the new
file an additional brief and must serve issues before making a decision on ap-
a copy of the petition on each party. peal. If an issue raised by the TSA deci-
The party may not file the additional sion maker requires the consideration
brief with the petition. The TSA deci- of additional testimony or evidence,
sion maker may grant leave to file an the TSA decision maker will remand
additional brief if the party dem- the case to the administrative law
onstrates good cause for allowing addi- judge for further proceedings and an
tional argument on the appeal. The initial decision related to that issue. If
TSA decision maker will allow a rea- an issue raised by the TSA decision
sonable time for the party to file the maker is solely an issue of law or the
additional brief. issue was addressed at the hearing but
(g) Number of copies. A party must file was not raised by a party in the briefs
the original appeal brief or the original on appeal, a remand of the case to the
reply brief, and two copies of the brief, administrative law judge for further
with the Enforcement Docket Clerk. proceedings is not required but may be
(h) Oral argument. The TSA decision provided in the discretion of the TSA
maker has sole discretion to permit decision maker.
oral argument on the appeal. On the (2) The TSA decision maker will issue
TSA decision maker’s own initiative or the final decision and order of the Ad-
upon written motion by any party, the ministrator on appeal in writing and
TSA decision maker may find that oral will serve a copy of the decision and
argument will contribute substantially order on each party. Unless a petition
to the development of the issues on ap- for review is filed pursuant to § 1503.235,
peal and may grant the parties an op- a final decision and order of the Ad-
portunity for oral argument. ministrator will be considered an order
(i) Waiver of objections on appeal. If a assessing civil penalty if the TSA deci-
party fails to object to any alleged sion maker finds that an alleged viola-
error regarding the proceedings in an tion occurred and a civil penalty is
appeal or a reply brief, the party warranted.
waives any objection to the alleged (3) A final decision and order of the
error. The TSA decision maker is not Administrator after appeal is precedent
required to consider any objection in in any other civil penalty action. Any
an appeal brief or any argument in the issue, finding or conclusion, order, rul-
reply brief if a party’s objection is ing, or initial decision of an adminis-
based on evidence contained on the trative law judge that has not been ap-
record and the party does not specifi- pealed to the TSA decision maker is
264
not precedent in any other civil pen- and support, the basis for the allega-
alty action. tions.
(4) The TSA decision maker will de- (2) If the petition is based, in whole
termine whether the decision and order or in part, on new material not pre-
of the TSA decision maker, with the viously raised in the proceedings, the
administrative law judge’s initial deci- party must set forth the new material
sion or order attached, may be released and include affidavits of prospective
to the public, either in whole or in re- witnesses and authenticated docu-
dacted form. In making this deter- ments that would be introduced in sup-
mination, the TSA decision maker will port of the new material. The party
consider whether disclosure of any of must explain, in detail, why the new
the information in the decision and material was not discovered through
order would be detrimental to trans- due diligence prior to the hearing.
portation safety, would not be in the
(d) Repetitious and frivolous petitions.
public interest, or should not otherwise
The TSA decision maker will not con-
be required to be made available to the
sider repetitious or frivolous petitions.
public.
The TSA decision maker may sum-
[67 FR 51483, Aug. 8, 2002, as amended at 68 marily dismiss repetitious or frivolous
FR 49720, Aug. 19, 2003; 68 FR 58281, Oct. 9, petitions to reconsider or modify.
2003]
(e) Reply petitions. Any other party
§ 1503.234 Petition to reconsider or may reply to a petition to reconsider
modify a final decision and order of or modify, not later than 10 days after
the TSA decision maker on appeal. service of the petition on that party,
by filing a reply with the Enforcement
(a) General. Any party may petition
Docket Clerk. A party must serve a
the TSA decision maker to reconsider
copy of the reply on each party.
or modify a final decision and order
issued by the TSA decision maker on (f) Effect of filing petition. Unless oth-
appeal from an initial decision. A party erwise ordered by the TSA decision
must file a petition to reconsider or maker, filing of a petition pursuant to
modify not later than 30 days after this section will stay the effective date
service of the TSA decision maker’s of the TSA decision maker’s final deci-
final decision and order on appeal and sion and order on appeal.
must serve a copy of the petition on (g) The TSA decision maker’s decision
each party. The TSA decision maker on petition. The TSA decision maker
will not reconsider or modify an initial has sole discretion to grant or deny a
decision and order issued by an admin- petition to reconsider or modify. The
istrative law judge that has not been TSA decision maker will grant or deny
appealed by any party to the TSA deci- a petition to reconsider or modify
sion maker and filed with the Enforce- within a reasonable time after receipt
ment Docket Clerk. of the petition or receipt of the reply
(b) Form and number of copies. A party petition, if any. The TSA decision
must file a petition to reconsider or maker may affirm, modify, or reverse
modify, in writing. The party must file the final decision and order on appeal,
the original petition with the Enforce- or may remand the case for any pro-
ment Docket Clerk and must serve a ceedings that the TSA decision maker
copy of the petition on each party. determines may be necessary.
(c) Contents. A party must state brief-
ly and specifically the alleged errors in § 1503.235 Judicial review of a final
the final decision and order on appeal, order.
the relief sought by the party, and the
A person may seek judicial review of
grounds that support, the petition to
reconsider or modify. a final order of the Administrator as
provided in 49 U.S.C. 46110. A party
(1) If the petition is based, in whole
or in part, on allegations regarding the seeking judicial review of a final order
consequences of the TSA decision mak- must file a petition for review not later
than 60 days after the final order has
er’s decision, the party must describe

these allegations and must describe, been served on the party.
265
Subpart H—Civil Monetary Penalty etary penalties or range of minimum

Inflation Adjustment and maximum civil monetary penalties
set forth in paragraph (c) of this sec-
§ 1503.301 Scope and purpose. tion, the inflation adjustment under
(a) This subpart provides a mecha- this subpart is determined by increas-
nism for the regular adjustment for in- ing the maximum civil monetary pen-
flation of civil monetary penalties in alty or range of minimum and max-
conformity with the Federal Civil Pen- imum civil monetary penalty for each
alties Inflation Adjustment Act of 1990, civil monetary penalty by the cost-of-
28 U.S.C. 2461 (note), as amended, in living adjustment. Any increase deter-
order to maintain the deterrent effect mined under this paragraph (a) is
of civil monetary penalties and to pro- rounded to the nearest:
mote compliance with the law. This (1) Multiple of $10 in the case of pen-
subpart also sets out the current ad- alties less than or equal to $100;
justed maximum civil monetary pen- (2) Multiple of $100 in the case of pen-
alties or range of minimum and max- alties greater than $100 but less than or
imum civil monetary penalties for each equal to $1,000;
statutory civil penalty subject to the (3) Multiple of $1,000 in the case of
TSA’s jurisdiction. penalties greater than $1,000 but less
(b) Each adjustment to the maximum than or equal to $10,000;
civil monetary penalty or the range of (4) Multiple of $5,000 in the case of
minimum and maximum civil mone- penalties greater than $10,000 but less
tary penalties, as applicable, made in than or equal to $100,000;
accordance with this subpart applies (5) Multiple of $10,000 in the case of
prospectively from the date it becomes penalties greater than $100,000 but less
effective to actions initiated under this than or equal to $200,000; and
part, notwithstanding references to a
(6) Multiple of $25,000 in the case of
specific maximum civil monetary pen-
penalties greater than $200,000.
alty or range of minimum and max-
imum civil monetary penalties con- (b) Definition. For purposes of para-
tained elsewhere in this part. graph (a) of this section, the term cost-
of-living adjustment means the percent-
§ 1503.303 Definitions. age (if any) for each civil monetary
penalty by which the Consumer Price
The following definitions apply to this
subpart: Index for the month of June of the cal-
Civil monetary penalty means any pen- endar year preceding the adjustment
alty, fine, or other sanction that: exceeds the Consumer Price Index for
(1) Is for a specific monetary amount the month of June of the calendar year
as provided by Federal law or has a in which the amount of such civil mon-
maximum amount provided by Federal etary penalty was last set or adjusted
law; pursuant to law.
(2) Is assessed or enforced by the TSA (c) Limitation on initial adjustment.
pursuant to Federal law; and The initial adjustment of maximum
(3) Is assessed or enforced pursuant civil penalty or range of minimum and
to an administrative proceeding or a maximum civil monetary penalties
civil action in the Federal courts. made pursuant to this subpart does not
Consumer Price Index means the Con- exceed 10 percent of the statutory max-
sumer Price Index for all urban con- imum civil penalty before an adjust-
sumers published by the Department of ment under this subpart is made. This
Labor. limitation applies only to the initial
adjustment, effective on January 21,
§ 1503.305 Cost of living adjustments of 1997.
civil monetary penalties. (d) Inflation adjustment. Minimum and
(a) Adjustment determination. Except maximum civil monetary penalties
for the limitation to the initial adjust- within the jurisdiction of the TSA are
ment to statutory maximum civil mon- adjusted for inflation as follows:
266
MINIMUM AND MAXIMUM CIVIL PENALTIES—ADJUSTED FOR INFLATION, EFFECTIVE MARCH 13, 2002
New ad- Maximum penalty
justed New or adjusted
United States Code ci- Civil monetary penalty descrip- Minimum amount when last
minimum maximum penalty
tation tion penalty set or adjusted pur-
penalty amount
suant to law
amount
49 U.S.C. 46301(a)(1) Violations of statutory provi- N/A ......... N/A ......... $1,100 per violation, $1,100 per violation,
sions listed in 49 U.S.C. adjusted 1/21/97. adjusted 1/21/97.
46301(a)(1), regulations pre-
scribed, or orders issued
under those provisions.
49 U.S.C. 46301(a)(2) Violations of statutory provi- N/A ......... N/A ......... $11,000 per viola- $11,000 per viola-
sions listed in 49 U.S.C. tion, adjusted 1/ tion, adjusted 1/
46301(a)(2), regulations pre- 21/97. 21/97.
scribed, or orders issued
under those provisions by a
person operating an aircraft
for the transportation of pas-
sengers or property for com-
pensation.
PART 1507—PRIVACY ACT- any additional exemptions in accord-

EXEMPTIONS ance with this part.
(a) Transportation Security Enforce-
Sec. ment Record System (DHS/TSA 001). The
1507.1 Scope. Transportation Security Enforcement
1507.3 Exemptions. Record System (TSERS) (DHS/TSA 001)
enables TSA to maintain a system of
AUTHORITY: 49 U.S.C. 114(l)(1), 40113, 5
records related to the screening of pas-
U.S.C. 552a(j) and (k).
sengers and property and they may be
SOURCE: 69 FR 35537, June 25, 2004, unless used to identify, review, analyze, inves-
otherwise noted. tigate, and prosecute violations or po-
tential violations of criminal statutes
§ 1507.1 Scope. and transportation security laws. Pur-
This part implements provisions of suant to exemptions (j)(2), (k)(1), and
the Privacy Act of 1974 (the Act) that (k)(2) of the Privacy Act, DHS/TSA 001
permit TSA to exempt any system of is exempt from 5 U.S.C. 552a(c)(3), (d),
records within the agency from certain (e)(1), (e)(3), (e)(4)(G), (H), and (I), and
requirements of the Act. The proce- (f). Exemptions from the particular
dures governing access to, and correc- subsections are justified for the fol-
tion of, records in a TSA system of lowing reasons:
records are set forth in 6 CFR part 5, (1) From subsection (c)(3) (Account-
subpart B. ing for Disclosures) because release of
the accounting of disclosures could
§ 1507.3 Exemptions. alert the subject of an investigation of
The following TSA systems of an actual or potential criminal, civil,
records are exempt from certain provi- or regulatory violation to the existence
sions of the Privacy Act of 1974 pursu- of the investigation and reveal inves-
ant to 5 U.S.C. 552a(j), (k), or both, as tigative interest on the part of TSA, as
set forth in this section. During the well as the recipient agency. Disclosure
course of normal agency functions, ex- of the accounting would therefore
empt materials from one system of present a serious impediment to trans-
records may become part of one or portation security, law enforcement ef-
more other systems of records. To the forts, and efforts to preserve national
extent that any portion of system of security. Disclosure of the accounting
records becomes part of another Pri- would also permit the individual who is
vacy Act system of records, TSA here- the subject of a record to impede the
by claims the same exemptions as were investigation and avoid detection or
claimed in the original primary system apprehension, which undermines the

of which they are a part and claims entire system.
267
(2) From subsection (d) (Access to 002). The Transportation Workers Em-
Records) because access to the records ployment Investigations System
contained in this system of records (TWEI) (DHS/TSA 002) enables TSA to
could inform the subject of an inves- facilitate the performance of back-
tigation of an actual or potential ground checks on employees of trans-
criminal, civil, or regulatory violation portation operators and others who are
to the existence of the investigation issued credentials or clearances by
and reveal investigative interest on the transportation operators, other than
part of TSA, as well as the recipient TSA employees. Pursuant to exemp-
agency. Access to the records would tions (k)(1) and (k)(2) of the Privacy
permit the individual who is the sub- Act, DHS/TSA 002 is exempt from 5
ject of a record to impede the inves- U.S.C. 552a(c)(3), (d), (e)(1), (e)(4)(G), (H)
tigation and avoid detection or appre- and (I), and (f). Exemptions from the
hension. Amendment of the records particular subsections are justified for
would interfere with ongoing investiga- the following reasons:
tions and law enforcement activities, (1) From subsection (c)(3) (Account-
and impose an impossible administra- ing for Disclosures), because release of
tive burden by requiring investigations the accounting of disclosures could re-
to be continuously reinvestigated. The veal investigative interest on the part
information contained in the system of the recipient agency that obtained
may also include properly classified in- the record pursuant to a routine use.
formation, the release of which would Disclosure of the accounting could
pose a threat to national defense and/or therefore present a serious impediment
foreign policy. In addition, permitting to law enforcement efforts on the part
access and amendment to such infor- of the recipient agency, as the indi-
mation also could disclose sensitive se- vidual who is the subject of a record
curity information, which could be det- would learn of third-agency investigate
rimental to transportation security. interests and thereby avoid detection
(3) From subsection (e)(1) (Relevancy or apprehension.
and Necessity of Information) because (2) From subsection (d) (Access to
in the course of investigations into po- Records), because access to the records
tential violations of transportation se- contained in this system could reveal
curity laws, the accuracy of informa- investigate techniques and procedures
tion obtained or introduced occasion- in the transportation workers employ-
ally may be unclear or the information ment investigation process, as well as
may not be strictly relevant or nec- the nature and scope of the employ-
essary to a specific investigation. In ment investigation, the disclosure of
the interests of effective enforcement which could enable individuals to cir-
of transportation security laws, it is cumvent agency regulations or stat-
appropriate to retain all information utes and obtain access to sensitive in-
that may aid in establishing patterns formation and restricted areas in the
of unlawful activity. transportation industry. The informa-
(4) From subsection (e)(3) (Privacy tion contained in the system might in-
Act Statement) because disclosing the clude properly classified information,
authority, purpose, routine uses, and the release of which would pose a
potential consequences of not pro- threat to national defense and/or for-
viding information could reveal the in- eign policy. In addition, permitting ac-
vestigative interests of TSA, as well as cess and amendment to such informa-
the nature and scope of an investigation could reveal sensitive security in-
tion, the disclosure of which could en- formation protected pursuant to 49
able individuals to circumvent agency U.S.C. 114(s), the disclosure of which
regulations or statutes. could be detrimental to the security of
(5) From subsections (e)(4)(G), (H), transportation.
and (I) (Agency Requirements), and (f) (3) From subsection (e)(1) (Relevancy
(Agency Rules), because this system is and Necessity of Information), because
exempt from the access provisions of third-agency records obtained or made
subsection (d). available to TSA during the course of
(b) Transportation Workers Employ- an employment investigation may oc-

ment Investigations System (DHS/TSA casionally contain information that is
268
not strictly relevant or necessary to a related duties. This system covers in-
specific employment investigation. In formation regarding investigations of
the interests of administering an effec- allegations or appearances of mis-
tive and comprehensive transportation conduct of current or former TSA em-
worker employment investigation pro- ployees or contractors and provides
gram, it is appropriate and necessary support for any adverse action that
for TSA to retain all such information may occur as a result of the findings of
that may aid in that process. the investigation. It is being modified
(4) From subsections (e)(4)(G), (H), to cover investigations of security-re-
and (I) (Agency Requirements), and (f) lated incidents and reviews of TSA pro-
(Agency Rules), because this system is grams and operations. Pursuant to ex-
exempt from the access provisions of emptions (j)(2), (k)(1), and (k)(2) of the
subsection (d). Privacy Act, DHS/TSA 005 is exempt
(c) Personnel Background Investigation from 5 U.S.C. 552a(c)(3), (d), (e)(1),
File System (DHS/TSA 004). The Per- (e)(3), (e)(4)(G), (H), and (I), and (f). Ex-
sonnel Background Investigation File emptions from the particular sub-
System (PBIFS) (DHS/TSA 004) enables sections are justified for the following
TSA to maintain investigative and reasons:
background material used to make (1) From subsection (c)(3) (Account-
suitability and eligibility determina- ing for Disclosures) because release of
tions regarding current and former the accounting of disclosures could re-
TSA employees, applicants for TSA veal investigative interest on the part
employment, and TSA contract em- of the recipient agency that obtained
ployees. Pursuant to exemptions (k)(1) the record pursuant to a routine use.
and (k)(5) of the Privacy Act, the Per- Disclosure of the accounting could,
sonnel Background Investigation File therefore, present a serious impedi-
System is exempt from 5 U.S.C. ment to law enforcement efforts on the
552a(c)(3) (Accounting of Disclosures) part of the recipient agency, as the in-
and (d) (Access to Records). Exemp- dividual who is the subject of a record
tions from the particular subsections would learn of third-agency investiga-
are justified because this system con- tive interests and thereby avoid detec-
tains investigatory material compiled tion or apprehension, as well as to TSA
solely for determining suitability, eli- investigative efforts.
gibility, and qualifications for Federal (2) From subsection (d) (Access to
civilian employment. To the extent Records) because access to the records
that the disclosure of material would contained in this system could reveal
reveal any classified material or the investigative techniques and proce-
identity of a source who furnished in- dures of the investigators, as well as
formation to the Government under an the nature and scope of the investiga-
express promise that the identity of tion, the disclosure of which could en-
the source would be held in confidence, able individuals to circumvent agency
or, prior to September 27, 1975, under regulations or statutes. The informa-
an implied promise that the identity of tion contained in the system might in-
the source would be held in confidence, clude properly classified information,
the applicability of exemption (k)(5) the release of which would pose a
will be required to honor promises of threat to national defense and/or for-
confidentiality should the data subject eign policy. In addition, permitting ac-
request access to or amendment of the cess and amendment to such records
record, or access to the accounting of could reveal sensitive security infor-
disclosures of the record. Exemption mation protected pursuant to 49 U.S.C.
(k)(1) will be required to protect any 114(s), the disclosure of which could be
classified information that may be in detrimental to the security of trans-
this system. portation.
(d) Internal Investigation Record Sys- (3) From subsection (e)(1) (Relevancy
tem (DHS/TSA 005). The Internal Inves- and Necessity of Information) because
tigation Record System (IIRS) (DHS/ third agency records obtained or made
TSA 005) contains records of internal available to TSA during the course of
investigations for all modes of trans- an investigation may occasionally con-

portation for which TSA has security- tain information that is not strictly
269
relevant or necessary to a specific in- (2) From subsection (d) (Access to

vestigation. In the interests of admin- Records), because access to the records
istering an effective and comprehen- contained in this system could reveal
sive investigation program, it is appro- investigative interest on the part of
priate and necessary for TSA to retain TSA or other agency and the nature of
all such information that may aid in that interest, the disclosure of which
that process. could enable individuals to circumvent
(4) From subsection (e)(3) (Privacy agency regulations or statutes. The in-
Act Statement) because disclosing the formation contained in the system
authority, purpose, routine uses, and might include properly classified infor-
potential consequences of not pro- mation, the release of which would
viding information could reveal the pose a threat to national defense and/or
targets of interests of the investigating foreign policy. In addition, permitting
office, as well as the nature and scope access and amendment to such infor-
of an investigation, the disclosure of mation could reveal sensitive security
which could enable individuals to cir- information protected pursuant to 49
cumvent agency regulations or stat- U.S.C. 114(s), the disclosure of which
utes. could be detrimental to transportation
(5) From subsections (e)(4)(G), (H) security.
and (I) (Agency Requirements), and (f) (3) From subsection (e)(1) (Relevancy
(Agency Rules), because this system is and necessity of Information), because
exempt from the access provisions of third-agency records obtained or made
available to TSA during the course of
subsection (d).
an investigation may occasionally con-
(e) Correspondence and Matters Track-
tain information that is not strictly
ing Records (DHS/TSA 006). The Cor-
relevant or necessary to a specific in-
respondence and Matters Tracking vestigation. In the interests of admin-
Records (CMTR) (DHS/TSA 006) system istering an effective and comprehen-
allows TSA to manage, track, retrieve, sive investigation program, it is appro-
and respond to incoming correspond- priate and necessary for TSA to retain
ence, inquiries, claims and other mat- all such information that may aid in
ters presented to TSA for disposition, that process.
and to monitor the assignment, dis- (4) From subsections (e)(4)(G), (H)
position and status of such matters. and (I) (Agency Requirements), and (f)
This system covers information coming (Agency rules), because this system is
into TSA from individuals as well as exempt from the access provisions of
information recorded by TSA employ- subsection (d).
ees in the performance of their duties. (f) Freedom of Information and Privacy
Pursuant to exemptions (k)(1) and Act Records (DHS/TSA 007). The Free-
(k)(2) of the Privacy Act, DHS/TSA 006 dom of Information and Privacy Act
is exempt from 5 U.S.C. 552a(c)(3), (d), (FOIA/PA) Records System (DHS/TSA
(e)(1), (e)(4)(G), (H) and (I), and (f). Ex- 007) system enables TSA to maintain
emptions from the particular sub- records that will assist in processing
sections are justified for the following access requests and administrative ap-
reasons: peals under FOIA and access and
(1) From subsection (c)(3) (Account- amendments requests and appeals
ing for Disclosures), because release of under the PA; participate in associated
the accounting of disclosures could re- litigation; and assist TSA in carrying
veal investigative interest on the part out any other responsibilities under
of the recipient agency that obtained FOIA/PA. Pursuant to exemptions
the record pursuant to a routine use. (k)(1) and (k)(2) of the Privacy Act,
Disclosure of the accounting could Freedom of Information and Privacy
therefore present a serious impediment Act Records are exempt from 5 U.S.C.
to law enforcement efforts on the part 552a(c)(3), (d), (e)(1), (e)(4)(G), (H) and
of the recipient agency, as the indi- (I), and (f). Exemptions from the par-
vidual who is the subject of a record ticular subsections are justified for the
would lean of third-agency investiga- following reasons:
tive interests and thereby avoid detec- (1) From subsection (c)(3) (Account-
tion or apprehension. ing for Disclosures), because release of
270
the accounting of disclosures could re- Pursuant to exemptions (k)(1) and

veal investigative interest on the part (k)(2) of the Privacy Act, DHS/TSA 009
of the recipient agency that obtained is exempt from 5 U.S.C. 552a(c)(3), (d),
the record pursuant to a routine use. (e)(1), (e)(4)(G), (H) and (I), and (f). Ex-
Disclosure of the accounting could emptions from the particular sub-
therefore present a serious impediment sections are justified for the following
to law enforcement efforts on the part reasons:
of the recipient agency, as the indi- (1) From subsection (c)(3) (Account-
vidual who is the subject of a record ing for Disclosures), because release of
would learn of third-agency investiga- the accounting of disclosures could re-
tive interests and thereby avoid detec- veal investigative interest on the part
tion or apprehension. of the recipient agency that obtained
(2) From subsection (d) (Access to the record pursuant to a routine use.
Records), because access to the records Disclosure of the accounting could
contained in this system could reveal therefore present a serious impediment
investigative interest on the part of to law enforcement efforts on the part
TSA or other agency and the nature of of the recipient agency, as the indi-
that interest, the disclosure of which vidual who is the subject of a record
could enable individuals to circumvent would learn of third-agency investiga-
agency regulations or statutes. The in- tive interests and thereby avoid detec-
formation contained in the system tion or apprehension.
might include properly classified infor- (2) From subsection (d) (Access to
mation, the release of which would
Records), because access to the records
pose a threat to national defense and/or
contained in this system could reveal
foreign policy. In addition, permitting
investigative interest on the part of
access and amendment to such infor-
TSA or other agency and the nature of
mation could reveal sensitive security
that interest, the disclosure of which
information protected pursuant to 49
would enable individuals to circumvent
U.S.C. 114(s), the disclosure of which
agency regulations or statutes. The in-
would be detrimental to transportation
formation contained in the system
security.
might include properly classified infor-
(3) From subsection (e)(1) (Relevancy
mation, the release of which would
and necessity of Information), because
third-agency records obtained or made pose a threat to national defense and/or
available to TSA during the course of foreign policy. In addition, permitting
an investigation may occasionally con- access and amendment to such infor-
tain information that is not strictly mation could reveal sensitive security
relevant or necessary to a specific in- information protected pursuant to 49
vestigation. In the interests of admin- U.S.C. 114(s), the disclosure of which
istering an effective and comprehen- could be detrimental to transportation
sive investigation program, it is appro- security.
priate and necessary for TSA to retain (3) From subsection (e)(1) (Relevancy
all such information that may aid in and Necessity of Information), because
that process. third-agency records obtained or made
(4) From subsections (e)(4)(G), (H) available to TSA during the course of
and (I) (Agency Requirements), and (f) an investigation may occasionally con-
(Agency Rules), because this system is tain information that is not strictly
exempt from the access provisions of relevant or necessary to a specific in-
subsection (d). vestigation. In the interests of admin-
(g) General Legal Records System (DHS/ istering an effective and comprehen-
TSA 009). The General Legal Records sive investigation program, it is appro-
(GLR) System (DHS/TSA 009) enables priate and necessary for TSA to retain
TSA to maintain records that will as- all such information that may aid in
sist attorneys to perform their func- that process.
tions within the office of Chief Coun- (4) From subsections (e)(4)(G), (H)
sel, to include providing legal advice, and (I) (Agency Requirements), and (f)
responding to claims filed by employ- (Agency Rules), because this system is
ees and others, and assisting in litiga- exempt from the access provisions of
tion and in the settlement of claims. subsections (d).
271
(h) Federal Flight Deck Officer Records that individual. In the interests of ef-
System (DHS/TSA 013). The Federal fective program administration, it is
Flight Deck Officer Record System appropriate and necessary for TSA to
(FFDORS) (DHS/TSA 013) enables TSA collect all such information that may
to maintain a system of records docu- aid in the FFDO selection process.
menting the application, selection, (i) Registered Traveler Operations Files
training, and requalification of pilots (DHS/TSA 015). The purpose of this sys-
deputized by TSA to perform the duties tem is to pre-screen and positively
of a Federal Flight Deck Officer identify volunteer travelers using ad-
(FFDO). Pursuant to exemptions (k)(1), vanced identification technologies and
(k)(2), and (k)(6) of the Privacy Act, conduct a security threat assessment
DHS/TSA 013 is exempt from 5 U.S.C. to ensure that the volunteer does not
552a(c)(3), (d), and (e)(1). Exemptions pose a security threat. This system
from the particular subsections are jus- may expedite the pre-boarding process
tified for the following reasons: for the traveler and improve the allo-
(1) From (c)(3) (Accounting of Certain cation of TSA’s security resources on
Disclosures) and (d) (Access to individuals who may pose a security
Records), because access to the ac- threat. Pursuant to exemptions (k)(1)
counting of disclosures in this system and (k)(2) of the Privacy Act, DHS/TSA
could reveal the identity of a confiden- 015 is exempt from 5 U.S.C. 552a(c)(3),
tial source that provided information (d), (e)(1), (e)(4)(G), (H) and (I), and (f).
during the background check process. Exemptions from the particular sub-
Without the ability to protect the iden- sections are justified for the following
tity of a confidential source, the agen- reasons:
cy’s ability to gather pertinent infor- (1) From subsection (c)(3) (Account-
mation about candidates for the pro- ing for Disclosures) because release of
gram may be limited. In addition, the the accounting of disclosures could
system might contain information that alert the subject of heightened security
is properly classified, the release of concerns relating to an actual or po-
which would pose a threat to national tential criminal, civil, or regulatory
security and/or foreign policy, or infor- violation to the existence of an inves-
mation the disclosure of which could be tigative interest on the part of the De-
detrimental to the security of trans- partment of Homeland Security or an-
portation pursuant to 49 U.S.C. 114(s). other Federal law enforcement or other
Finally, the agency must be able to recipient agency. Disclosure of the ac-
protect against access to testing or ex- counting would therefore present a se-
amination material as release of this rious impediment to transportation se-
material could compromise the effec- curity law enforcement efforts and ef-
tiveness of the testing and examination forts to preserve national security. Dis-
procedure itself. The examination ma- closure of the accounting would also
terial contained in this system is so permit the individual who is the sub-
similar in form and content to the ex- ject of a record to impede the program
amination material used in the selec- suitability determination, which un-
tion process for TSA security screen- dermines the entire system.
ers, or potential selection processes (2) From subsection (d) (Access to
that TSA may utilize in the future, Records) because access to some of the
that release of the material would records contained in this system of
compromise the objectivity or fairness records could permit the individual
of the testing or examination process who is the subject of a record to im-
of those TSA employees. pede the program suitability deter-
(2) From (e)(1) (Relevancy and Neces- mination. Amendment of the records
sity of Information), because informa- would interfere with ongoing security
tion obtained or made available to TSA assessment investigations and program
from other agencies and other sources suitability determinations and impose
during the evaluation of an individual’s an impossible administrative burden by
suitability for an FFDO position may requiring such investigations to be
occasionally include information that continuously reinvestigated. The infor-
is not strictly relevant or necessary to mation contained in the system may

the specific determination regarding also include classified information, the
272
release of which would pose a threat to portation security law enforcement ef-
national defense and/or foreign policy. forts and efforts to preserve national
In addition, permitting access and security. Disclosure of the accounting
amendment to such information also would also permit the individual who is
could disclose sensitive security infor- the subject of a record to impede oper-
mation protected pursuant to 49 U.S.C. ations and avoid detection and appre-
114(s) and 49 CFR part 1520, the disclo- hension, which undermined the entire
sure of which could be detrimental to system. Disclosure of the accounting
transportation security. may also reveal the existence of infor-
(3) From subsection (e)(1) (Relevancy mation that is classified or sensitive
and Necessity of Information) because security information, the release of
in the course of screening applicants which would be detrimental to the se-
for program suitability, TSA must be curity of transportation.
able to review information from a vari-
(2) From subsection (d) (Access to
ety of sources. What information is rel-
Records) because access to the records
evant and necessary may not always be
apparent until after the evaluation is contained in this system of records
completed. In the interests of transpor- could inform the subject of intelligence
tation security, it is appropriate to in- gathering operations and reveal inves-
clude a broad range of information that tigative interest on the part of the
may aid in determining an applicant’s Transportation Security Administra-
suitability for the Registered Traveler tion. Access to the records would per-
program. mit the individual who is the subject of
(4) From subsections (e)(4)(G), (H) a record to impede operations and pos-
and (I) (Agency Requirements), and (f) sibly avoid detection or apprehension.
(Agency Rules), because this system is Amendment of the records would inter-
exempt from the access and amend- fere with ongoing intelligence and law
ment provisions of subsection (d). enforcement activities and impose an
(j) Transportation Security Intelligence impossible administrative burden by
Service (TSIS) Operations Files. Trans- requiring investigations to be contin-
portation Security Intelligence Service ually reinvestigated. The information
Operations Files (TSIS) (DHS/TSA 011) contained in the system may also in-
enables TSA to maintain a system of clude properly classified information,
records related to intelligence gath- the release of which would pose a
ering activities used to identify, re- threat to national defense and/or for-
view, analyze, investigate, and prevent eign policy. In addition, permitting ac-
violations or potential violations of cess and amendment to such informa-
transportation security laws. This sys- tion also could disclose sensitive secu-
tem also contains records relating to rity information, which could be detri-
determinations about individuals’ mental to transportation security if re-
qualifications, eligibility, or suit- leased. This system may also include
ability for access to classified informa- information necessary to make a deter-
tion. Pursuant to exemptions (j)(2),
mination as to an individual’s quali-
(k)(1), (k)(2), and (k)(5) of the Privacy
fications, eligibility, or suitability for
Act, DHS/TSA 011 is exempt from 5
access to classified information, the re-
U.S.C. 552a(c)(3), (d), (e)(1), (e)(4)(G),
lease of which would reveal the iden-
(H), and (I), and (f). Exemptions from
particular subsections are justified for tity of a source who received an ex-
the following reasons: press or implied assurance that their
(1) From subsection (c)(3) (Account- identity would not be revealed to the
ing for Disclosures) because release of subject of the record.
the accounting of disclosures could (3) From subsection (e)(1) (Relevancy
alert the subject of intelligence gather and Necessity of Information) because
operations and reveal investigative in- in the course of gathering and ana-
terest on the part of the Transpor- lyzing information about potential
tation Security Administration, as threats to transportation security, the
well as the recipient agency. Disclosure accuracy of information obtained or in-
of the accounting would therefore troduced occasionally may be unclear

present a serious impediment to trans- or the information may not be strictly
273
relevant or necessary to a specific op- Air transportation means intrastate,

eration. In the interests of transpor- interstate or foreign air transpor-
tation security, it is appropriate to re- tation.
tain all information that may aid in Aircraft means a device that is used
identifying threats to transportation or intended to be used for flight in the
security and establishing other pat- air.
terns of unlawful activity. Airport means any landing area used
(4) From subsections (e)(4)(G), (H), regularly by aircraft for receiving or
and (I) (Agency Requirements), and (f) discharging passengers or cargo.
(Agency Rules), because this system is Direct air carrier and foreign air carrier
exempt from the access and amend- means a selling carrier.
ment provisions of subsection (d). Foreign air carrier means any person
other than a citizen of the United
[69 FR 35537, June 25, 2004, as amended at 70
FR 33384, June 8, 2005; 71 FR 44227, Aug. 4, States who undertakes directly to en-
2006] gage in or provide air transportation.
Foreign air transportation means the
carriage by aircraft of persons for com-
PART 1510—PASSENGER CIVIL pensation or hire between a place in
AVIATION SECURITY SERVICE FEES the United States and any place out-
side of the United States.
Sec.
Frequent flyer award means a zero-
1510.1 Applicability and purpose.
1510.3 Definitions.
fare award of air transportation that a
1510.5 Imposition of security service fees. domestic air carrier or foreign air car-
1510.7 Air transportation advertisements rier provides to a passenger in ex-
and solicitations. change for accumulated travel mileage
1510.9 Collection of security service fees. credits in a customer loyalty program,
1510.11 Handling of security service fees. whether or not the term frequent flyer
1510.13 Remittance of security service fees. is used in the definition of that pro-
1510.15 Accounting and auditing require- gram.
ments.
1510.17 Reporting requirements.
Interstate air transportation means the
1510.19 Federal oversight. carriage by aircraft of persons for com-
1510.21 Enforcement. pensation or hire within the United
States.
AUTHORITY: 49 U.S.C. 114, 40113, and 44940.
Intrastate air transportation means the
SOURCE: 66 FR 67701, Dec. 31, 2001, unless carriage of persons for compensation or
otherwise noted. hire wholly within the same State of
the United States.
§ 1510.1 Applicability and purpose. Nonrevenue passenger means a pas-
This part prescribes a uniform fee to senger receiving air transportation
be paid by passengers of direct air car- from an air carrier or foreign air car-
riers and foreign air carriers in air rier for which the air carrier or foreign
transportation, foreign air transpor- air carrier does not receive remunera-
tation, and intrastate air transpor- tion.
tation originating at airports in the One-way trip means any trip that is
United States to pay for the costs of not a round trip.
providing civil aviation security serv- Origin point means the location at
ices as described in 49 U.S.C. 44940. which a trip on a complete air travel
itinerary begins.
§ 1510.3 Definitions. Passenger enplanement means a person
The following definitions apply in boarding in the United States in sched-
this part: uled or nonscheduled service on air-
Administrator means the Adminis- craft in intrastate, interstate, or for-
trator of the Transportation Security eign air transportation.
Administration or the Administrator’s Principal means the aggregate
designee. amount of all passenger security serv-
Air carrier means a citizen of the ices fees due to be remitted to the
United States who undertakes directly Transportation Security Administra-
to engage in or provide air transpor- tion by an air carrier as required by

tation. this part.
274
Round trip means a trip on an air aircraft having a passenger seating

travel itinerary that terminates at the configuration of less than 61 seats
origin point. when passengers are enplaned from or
Selling carrier means an air carrier or deplaned into a sterile area.
foreign air carrier that provides or of- (b) Direct air carriers and foreign air
fers to provide air transportation and carriers must collect from each pas-
has control over the operational func- senger, to the extent provided in
tions performed in providing that air § 1510.5, a security service fee on air
transportation. transportation sold on or after Feb-
[66 FR 67701, Dec. 31, 2001, as amended at 68 ruary 1, 2002. The security service fee
FR 49720, Aug. 19, 2003] must be based on the air travel
itinerary at the time the air transpor-
§ 1510.5 Imposition of security service tation is sold. Any changes by the pas-
fees. senger to the itinerary that alter the
(a) The security service fee will be number of enplanements are subject to
$2.50 per passenger enplanement. The additional collection or refund of the
security service fee is imposed only on security service fee by the direct air
passengers of direct air carriers and carrier or foreign air carrier as appro-
foreign air carrier described in priate. Direct air carriers and foreign
§ 1510.9(a). Passengers may not be air carriers are solely liable to TSA for
charged for more than two additional security service fees im-
enplanements per one-way trip or four posed because of involuntary
enplanements per round trip. enplanement changes to the itinerary.
(b) The security service fee will be (c) Whether or not the security serv-
imposed on all flight segments origi- ice fee is collected as required by this
nating at an airport in the United part, the direct air carrier or foreign
States. air carrier selling the air transpor-
(c) The security service fee must be tation is solely liable to TSA for the
imposed on passengers who obtained fee and must remit the fee as required
the ticket for air transportation with a in § 1510.13.
frequent flyer award, but may not be (d) Direct air carriers and foreign air
imposed on any other nonrevenue pas- carriers may not collect security serv-
sengers. ice fees not imposed by this part.
(d) Passengers enplaning a flight seg-
ment outside of the United States are § 1510.11 Handling of security service
fees.
not subject to the security service fee
for that enplanement. (a) Direct air carriers and foreign air
carriers are responsible for the safe-
§ 1510.7 Air transportation advertise- keeping of all security service fees
ments and solicitations. from the time of collection to remit-
A direct air carrier and foreign air tance.
carrier must identify the security serv- (b) Security service fees collected by
ice fee imposed by this part as ‘‘Sep- a direct air carrier or foreign air car-
tember 11th Security Fee’’ in all its ad- rier are held in trust by that direct
vertisements and solicitations for air carrier for the beneficial interest of the
transportation. United States in paying for the costs of
providing civil aviation security serv-
§ 1510.9 Collection of security service ices described in 49 U.S.C. 44940. The di-
fees. rect air carrier or foreign air carrier
(a) The following direct air carriers holds neither legal nor equitable inter-
and foreign air carriers must collect se- est in the security service fees except
curity service fees from passengers en- for the right to retain any accrued in-
planing: terest on the principal amounts col-
(1) A scheduled passenger or public lected pursuant to § 1510.13(b).
charter passenger operation with an (c) Direct air carriers and foreign air
aircraft having passenger seating con- carriers must account for security
figuration of more than 60 seats. service fees separately, but the fees
(2) A scheduled passenger or public may be commingled with the carriers’

charter passenger operation with an other sources of revenue.
275
(d) Direct air carriers and foreign air (c) Audits pursuant to paragraph (b)
carriers must disclose in their finan- of this section must be performed by an
cial statements the existence and the independent certified public account-
amount of security service fee held in ant and may be of limited scope. The
trust. accountant must express an opinion on
the fairness and reasonableness of the
§ 1510.13 Remittance of security serv- direct air carrier’s and foreign air car-
ice fees. rier’s procedures for collecting, hold-
(a) Each direct air carrier and foreign ing, and remitting the fees. The opin-
air carrier must remit all security ion must also address whether the
service fees imposed each calendar quarterly reports required in § 1510.17
month to TSA, as directed by the Ad- fairly represent the net transactions in
ministrator, by the last calendar day of the security service fee accounts.
the month following the imposition.
(b) Direct air carriers and foreign air § 1510.17 Reporting requirements.
carriers may retain any interest that (a) Each direct air carrier and foreign
accrues on the principal amounts col- air carrier collecting security service
lected between the date of collection fees must provide TSA with quarterly
and the date the fee is remitted to TSA reports that provide an accounting of
in accordance with paragraph (a) of fees imposed, collected, refunded and
this section. remitted.
(c) Direct air carriers and foreign air (b) Quarterly reports must state:
carriers are prohibited from retaining (1) The direct air carrier or foreign
any portion of the principal to offset air carrier involved;
the costs of collecting, handling, or re- (2) The total amount of September
mitting the passenger security service 11th Security Fees imposed on pas-
fees. sengers in U.S. currency for each
(d) Security service fees are payable month during the previous quarter of
to the ‘‘Transportation Security Ad- the calendar year;
ministration’’ in U.S. currency and (3) The net amount of September 11th
drawn on a U.S. bank. Security Fees collected in U.S. cur-
(1) Fees of $1,000 or more must be re- rency by the direct air carrier or for-
mitted by electronic funds transfer. eign air carrier for each month during
(2) Fees under $1,000 may be remitted the previous quarter of the calendar
by electronic funds transfer, check, year;
money order, wire transfer, or draft. (4) The total amount of September
(e) Direct air carriers and foreign air 11th Security Fees refunded in U.S.
carriers are responsible for paying any currency by the direct air carrier or
bank processing charges on the secu- foreign air carrier for each month dur-
rity service fees collected or remitted ing the previous quarter of the cal-
under this part when such charges are endar year; and
assessed on the U.S. government. (5) The total amount of September
§ 1510.15 Accounting and auditing re- 11th Security Fees remitted in U.S.
quirements. currency by the direct air carrier or
foreign air carrier for each month dur-
(a) Direct air carriers and foreign air ing the previous quarter of the cal-
carriers must establish and maintain endar year.
an accounting system to account for
(c) The report must be filed by the
the security service fees imposed, col-
last day of the calendar month fol-
lected, refunded and remitted. The ac-
lowing the quarter of the calendar year
counting records must identify the air-
in which the fees were imposed.
ports at which the passengers were en-
planed. [66 FR 67701, Dec. 31, 2001, as amended at 67
(b) Each direct air carrier and foreign FR 14881, Mar. 28, 2002]
air carrier that collects security serv-
ices fees from more than 50,000 pas- § 1510.19 Federal oversight.
sengers annually must provide for an Direct air carriers and foreign air
audit at least annually of its security carriers must allow any authorized rep-
service fee activities or accounts. resentative of the Administrator, the
276
Secretary of Transportation, the Sec- § 1511.3 Definitions.

retary of Homeland Security, the In- The following definitions apply for
spector General of the Department of purposes of this part. For other defini-
Transportation, the Inspector General tions that may be applicable to this
of the Department of Homeland Secu- part refer to 49 U.S.C. 40102.
rity, or the Comptroller General of the Administrator means the Adminis-
United States to audit or review any of trator of the Transportation Security
its books and records and provide any Administration or the Administrator’s
other information necessary to verify designee.
that the security service fees were Air transportation means the carriage
properly collected and remitted con- by passenger aircraft of persons or
sistent with this part. property for compensation or hire in
[68 FR 49720, Aug. 19, 2003] intrastate air transportation, inter-
state air transportation, or foreign air
§ 1510.21 Enforcement. transportation.
Aircraft means a device that is used
A direct air carrier’s or foreign air
or intended to be used for flight in the
carrier’s failure to comply with the re-
air.
quirements 49 U.S.C. 44940 or the provi-
Fiscal year means the fiscal year for
sions of this part may be considered to
the Federal government, which begins
be an unfair and deceptive practice in
each year October 1 and ends on Sep-
violation of 49 U.S.C. 41712 and may
tember 30. The fiscal year is designated
also result in a claim due the United
by the calendar year in which it ends,
States by the carrier collectable pursu- e.g., fiscal year 2002 is the year begin-
ant to 49 CFR part 89. These remedies ning October 1, 2001, and ending Sep-
are in addition to any others remedies tember 30, 2002.
provided by law. Foreign air transportation means air
transportation between a place in the
PART 1511—AVIATION SECURITY United States and any place outside of
INFRASTRUCTURE FEE the United States.
Interstate air transportation means air
Sec. transportation within the United
1511.1 Applicability and purpose. States.
1511.3 Definitions. Intrastate air transportation means air
1511.5 Imposition of Aviation Security In- transportation wholly within the same
frastructure Fees. State of the United States.
1511.7 Remittance of Aviation Security In- Passenger aircraft means an aircraft
frastructure Fees. that is used to transport passengers in
1511.9 Accounting and auditing require-
air transportation.
ments.
1511.11 Federal oversight.
Property means mail, cargo, carry-on
1511.13 Enforcement. and checked baggage, and any other ar-
ticles transported by passenger aircraft
APPENDIX A TO PART 1511—AVIATION SECU-
RITY INFRASTRUCTURE FEE.
operated by an air carrier or foreign air
carrier in air transportation, but ex-
AUTHORITY: 49 U.S.C. 114, 40113, 44901, and cluding property transported under the
44940. ‘‘Known Shipper Program.’’
SOURCE: 67 FR 7929, Feb. 20, 2002, unless [67 FR 7929, Feb. 20, 2002, as amended at 68
otherwise noted. FR 49720, Aug. 19, 2003]
§ 1511.1 Applicability and purpose. § 1511.5 Imposition of Aviation Secu-
(a) This part prescribes the imposi- rity Infrastructure Fees.
tion of a fee on air carriers and foreign (a) Effective February 18, 2002, an
air carriers in air transportation to Aviation Security Infrastructure Fee
pay for the costs of providing U.S. civil will be imposed on air carriers and for-
aviation security services as described eign air carriers engaged in air trans-
in 49 U.S.C. 44940. portation.
(b) For purposes of this part, the fee (b) The amount of the Aviation Secu-
will be described as the ‘‘Aviation Se- rity Infrastructure Fee for each fiscal
curity Infrastructure Fee.’’ year will not exceed, in the aggregate,
277
the amounts paid in calendar year 2000 2005 and beyond, and such redetermina-
by air carriers and foreign air carriers tions may be based on the carrier’s re-
for the screening of passengers and spective market share or any other ap-
property transported by passenger air- propriate measure in lieu of the meas-
craft in the United States, as deter- ure provided in paragraph (c) of this
mined by the Administrator. section.
(c) For fiscal years 2002, 2003 and 2004,
the amount of the Aviation Security § 1511.7 Remittance of Aviation Secu-
Infrastructure Fee imposed on each air rity Infrastructure Fees.
carrier and foreign air carrier will not (a) No later than May 31, 2002, each
exceed the amount each such carrier air carrier and foreign air carrier en-
paid for the screening of passengers gaged in air transportation must remit
and property transported by passenger to TSA.
aircraft in the United States during (1) 3.273 percent of the total amount
calendar year 2000, as determined by the carrier has indicated in Appendix A
the Administrator. of this part, or an amount as otherwise
(d) Each air carrier and foreign air determined by the Administrator,
carrier that paid for the screening of which will represent the Aviation Se-
passengers and property in calendar curity Infrastructure Fee due for the
year 2000 must fully complete the form period running from February 18
set forth in Appendix A to this part ti- through February 28, 2002; and,
tled, ‘‘Calendar Year 2000 Costs Paid
(2) 16.666 percent of the total amount
for Passenger and Property Screen-
the carrier has indicated in Appendix A
ing,’’ and submit the completed form
of this part, or an amount as otherwise
to the Transportation Security Admin-
determined by the Administrator,
istration by May 18, 2002.
which will represent the Aviation Se-
(e) In the case of a merger, acquisi-
curity Infrastructure Fee due for pe-
tion, corporate restructuring, reorga-
riod running from March 1 through
nization, or name change involving an
April 30, 2002.
air carrier or foreign air carrier that
paid for the screening of passengers (b) Each air carrier and foreign air
and property transported by passenger carrier engaged in air transportation
aircraft in the United States during must remit to TSA 8.333 percent of the
calendar year 2000, the successor entity total amount the carrier has indicated
must include those screening costs in in Appendix A of this part, or an
Appendix A of this part and submit amount as otherwise determined by the
those costs together with its own costs Administrator, by the last calendar
on one form in accordance with para- day of each month following May 2002
graph (d) of this section. Any other air up to and including September 2004.
carrier or foreign air carrier that paid (c) Each air carrier and foreign air
for the screening of passengers and carrier engaged in air transportation
property transported by passenger air- must remit to TSA 8.333 percent of the
craft in the United States during cal- total amount as determined by the Ad-
endar year 2000 but is no longer pro- ministrator pursuant to section
viding air transportation must also 1511.5(g) of this part by the last cal-
complete the form set forth in Appen- endar day of each month following Sep-
dix A and submit the form in accord- tember 2004.
ance with paragraph (d) of this section. (d) Aviation Security Infrastructure
(f) The Administrator has determined Fees must be payable to the ‘‘Trans-
that the information submitted pursu- portation Security Administration’’ in
ant to this part and 49 U.S.C. U.S. currency and drawn on a U.S.
44940(a)(2)(B) is Sensitive Security In- bank.
formation and is subject to the non-dis- (1) Aviation Security Infrastructure
closure requirements of 49 U.S.C. Fees of $1,000 or more must be remitted
40119(b). by electronic funds transfer.
(g) The amount of the Aviation Secu- (2) Aviation Security Infrastructure
rity Infrastructure Fee imposed on Fees under $1,000 may be remitted by
each air carrier and foreign air carrier electronic funds transfer, check, money
will be redetermined for fiscal years order, wire transfer, or draft.
278
Transportation Security Administration, DHS Pt. 1511, App. A
(e) Air carriers and foreign air car- (2) The Aviation Security Infrastruc-
riers are responsible for paying any ture Fees were remitted consistent
bank processing charges on Aviation with this part.
Security Infrastructure Fees remitted [67 FR 7929, Feb. 20, 2002, as amended at 68
under this part when such charges are FR 49720, Aug. 19, 2003]
assessed on the U.S. government.
§ 1511.13 Enforcement.
[67 FR 7929, Feb. 20, 2002; 67 FR 8579, Feb. 25,
2002] (a) In addition to any other remedies
allowed by law, willful falsification by
§ 1511.9 Accounting and auditing re- any party, directly or indirectly, of in-
quirements. formation provided by an air carrier or
foreign air carrier pursuant to this
(a) Each air carrier and foreign air part, including information submitted
carrier must submit an audit per- in Appendix A as required by section
formed by an independent certified 1511.5 of this part, may be prosecuted
public accountant of the information criminally resulting in a fine and/or
provided pursuant to this part to the imprisonment under 18 U.S.C 1001.
Transportation Security Administra- (b) An air carrier’s or foreign air car-
tion by July 1, 2002. The cost of the rier’s failure to comply with the re-
audit will be borne by the carrier. The quirements of 49 U.S.C. 44940 or the
accountant must express an opinion as provisions of this part may result in a
to the fairness and reasonableness of claim due the United States by the car-
the air carrier’s and foreign air carrier, which claim shall be collectable
rier’s procedures used for accounting pursuant to 31 U.S.C. Chapter 37 and
and remitting the fees. The account- the Department of Transportation’s
ant’s working papers with respect to implementing regulations at 49 CFR
the audit must accompany this submis- part 89.
sion. APPENDIX A TO PART 1511—AVIATION
(b) Each air carrier and foreign air SECURITY INFRASTRUCTURE FEE
carrier must maintain and retain any
and all documents, records, or informa- Instructions
tion related to the amount of the Avia- General guidance
tion Security Infrastructure Fees im- When filling out this form, the responding
posed on the carrier pursuant to this air carrier or foreign air carrier shall include
part, including all information applica- all costs incurred in calendar year 2000 by
ble to the costs submitted in Appendix that air carrier for the screening of pas-
A, and information that is reasonably sengers and property. Costs are those attrib-
uted to the screening of passengers and prop-
necessary to complete an audit.
erty in the United States for both flights
within the United States and flights from
§ 1511.11 Federal oversight. the United States to foreign destinations.
(a) Upon request, air carriers and for- Reported costs must be consistent with the
eign air carriers must allow any au- air carrier’s financial accounting informa-
tion reported in accordance with generally
thorized representative of the Adminis- accepted accounting principles.
trator, the Secretary of Transpor- Where actual costs of screening passengers
tation, the Secretary of Homeland Se- and property cannot be directly identified
curity, the Inspector General of the De- through an air carrier’s accounting system,
partment of Transportation, the In- the air carrier shall use an appropriate alter-
nate cost assignment methodology. Docu-
spector General of the Department of
mentation that explains and supports the as-
Homeland Security, or the Comptroller signment methodology used, the applicable
General of the United States to audit pool and the allocation basis must be made
or review any of the books and records available upon request. For costs related to
and provide any other information nec- capitalized property, please report the asso-
essary to verify that: ciated depreciation expense incurred during
calendar year 2000. Capitalization policy
(1) The information submitted pursu-
must also be made available upon request.
ant to 49 U.S.C. 44940(a)(2)(B) and this To the extent necessary, the reporting air
part, including that provided in Appen- carrier may aggregate those specific costs
dix A, is true and correct; or that have been incurred but cannot be stated
279
Pt. 1511, App. A 49 CFR Ch. XII (10–1–07 Edition)
in the detailed cost categories requested by carriers and foreign air carriers must submit
this form. However, all of the costs identified all of their relevant costs, regardless of
by this form must be included in the total whether those costs have been specifically il-
calculations. In addition, explanations re- lustrated in the notes.
garding costs that have been aggregated
need to be provided. Costs reported in Appen- Submission of Data
dix A do not need to include costs that may This form will be available electronically
have been incurred for a position higher than from the Department of Transportation’s
those of the air carrier’s director of security website at www.dot.gov. Air carriers are
(or equivalent). Costs incurred for higher po- asked to return the completed form by cer-
sitions, such as those of the air carrier’s tified mail to: Chief Financial Officer, Trans-
chief executive officer, do not need to be in- portation Security Administration, Depart-
cluded. ment of Transportation, 400 Seventh Street
When including cost information on ac- SW, Washington, DC 20590. Please also sub-
quired and/or merged air carriers, the suc- mit the same information in Microsoft Word
cessor air carrier must specify the names of either on a computer disk or by e-mail to
all of such entities whose calendar year 2000 TSA-Fees@ost.dot.gov.
passenger and property screening costs are
included in that air carrier’s submission as Confidentiality of Data
Appendix A.
Consistent with 49 CFR § 1511.5(f), informa-
The costs listed below are to be in US dol- tion submitted in Appendix A is deemed to
lars, rounded to the nearest dollar. Place a be Sensitive Security Information and will
zero in the appropriate box to indicate cost be so protected from public disclosure under
categories in which the air carrier did not 49 U.S.C. 40119(b). In addition, confidential
incur costs for passenger and property business information and economic informa-
screening in calendar year 2000. tion provided in Appendix A will be pro-
Supporting Notes tected from public disclosure, as appropriate,
under 5 U.S.C. § 552 (the Freedom of Informa-
Examples of cost types that appear in the tion Act), 14 CFR § 302.12, and 18 U.S.C. § 1905.
supporting notes below are for illustrative Requests for confidentiality must be filed
purposes only and are not intended to set with the Office of the General Counsel, De-
forth all relevant costs that must be re- partment of Transportation (C–10), 400 Sev-
ported by air carriers and foreign air car- enth Street, SW, Room 10102, Washington,
riers. In submitting information to TSA, air DC 20590.
280
281
ER20FE02.007</GPH>
282
ER20FE02.008</GPH>
283
ER20FE02.009</GPH>
Supporting Notes other costs incurred through contracts with

a. These are costs that the air carrier in- third party security companies.
curred directly. Includes costs incurred for c. These are costs that the air carrier in-
air carrier personnel salaries and benefits, curred through other means. Includes costs
equipment owned, leased or rented directly incurred through air carrier security consor-
by that air carrier and any other costs di- tiums.
rectly incurred. 1. Salary, benefits, overtime, retirement
b. These are costs that the air carrier in- and other costs of checkpoint screening per-
curred through contracts with security sonnel.

firms. Includes personnel, equipment and
284
ER20FE02.010</GPH>
2. Salary, benefits, overtime, retirement costs recognized in calendar year 2000 for the
and other costs of exit lane monitors. modification and/or construction of any fa-
3. Salary, benefits, overtime, retirement cility needed to accommodate screening, in-
and other costs of cargo screeners. cluding architecture and engineering. Also
4. Salary, benefits, overtime, retirement includes the costs of any refurbishment and/
and other costs of checked baggage screen- or modernization of the equipment.
ers. 17. Costs of operating, maintaining, and
5. Salary, benefits, overtime, retirement calibrating installed screening equipment.
and other costs of all baggage runners who This includes such equipment as Metal De-
move property such as baggage to and from tection Devices, Hand Wands, X-ray screen-
screening areas. ing machines, Explosives Trace Detection
6. Salary, benefits, overtime, retirement Devices, Explosives Detection Systems, or
and other costs of all supervisory personnel, any other such similar technologies. In-
including Checkpoint Screening Supervisors. cludes such costs as test objects and X-ray
7. All associated expensed non-labor costs radiation surveys, electricity costs and
including computers, communications equip- maintenance contract costs incurred for the
ment, time management systems, supplies, operations of such equipment.
parking, identification badging, furniture, 18. Costs of maintaining integrity of sterile
fixtures, and travel. areas. Includes costs of opening sterile areas,
8. All costs of performing required back- emergency evacuations of sterile areas, and
ground investigations on all screening per- re-screenings not included elsewhere.
sonnel and supervisors. Screening personnel 19. The cost of purchase or rent, installa-
and supervisors includes checkpoint screen- tion, testing, and maintenance of checkpoint
ing personnel, exit lane monitors, cargo signs, barriers, lane markers, and exit lane
screeners, checked baggage screeners, bag- doors.
gage runners, and their supervisors. 20. Any additional costs for special screen-
9. All costs incurred for the training and ing such as for disabled passengers, VIP pas-
testing of all screening personnel and super- sengers, classified and/or high value items.
visors, including initial, recurrent and reme- 21. All security company contract costs for
dial training. Includes any computer-based the screening of persons and property that
training and the development of training cannot be detailed into any other cost cat-
programs for the screening of persons and egory.
property as well as any travel, room and 22. All direct costs for the real estate uti-
board, and all other such expenses related to lized for the screening of persons and prop-
training. erty. Includes space at airports for the per-
10. The costs of implementing and main- formance of these functions, as well as such
taining training records for all screening space used for break rooms, private screen-
personnel and supervisors. ing rooms, storages space, training rooms,
11. The costs of completing evaluations for and office space. Also includes appropriate
all screening personnel and supervisors. space for the oversight of the screening func-
12. All costs for drug and alcohol testing as tions outside of airports such as in head-
well as any associated counseling and/or quarters or regional offices.
treatment for all screening personnel and su- 23. All costs for utilities used for screening.
pervisors. Includes electricity, heating/ventilation/
13. All costs of renting, purchasing, main- cooling, and telecommunications costs not
taining, and/or cleaning of uniforms and any elsewhere specified.
related equipment such as flashlights and ba- 24. All costs incurred for the Ground Secu-
tons for all screening personnel and super- rity Coordinator’s oversight of the screening
visors. functions. Includes personnel salaries, bene-
14. All costs incurred by air carriers for the fits, retirement, training, and non-labor
use of canines and their handlers used for the costs.
screening of persons and property. 25. All air carrier head office, regional, or
15. All costs associated with obtaining se- airport specific costs associated with the ad-
curity clearances for personnel relating to ministration and oversight of screening not
the screening of persons and property. elsewhere specified. Includes personnel sala-
16. All costs associated with the purchase, ries, benefits, retirement, training, and non-
installation, and testing of all screening labor costs.
equipment. In instances where the equip- 26. All costs associated with the adminis-
ment is capitalized, provide the depreciation tration and oversight of screening contracts.
expense in lieu of costs associated with pur- Includes personnel, benefits, retirement,
chase, installation, and final acceptance training, and non-labor costs.
testing. This includes such equipment as 27. All costs not elsewhere specified for
Metal Detection Devices, Hand Wands, X-ray background audit checks for all screeners
screening machines, Explosives Trace Detec- and supervisors.
tion Devices, Explosives Detection Systems, 28. All legal support costs incurred during
or any other such similar technologies. In- calendar year 2000 relating to aviation secu-
cludes any costs incurred or depreciation rity screening. Includes legal assistance for
285
the implementation and execution of secu- 33. All costs associated with the recruit-
rity screening contracts. ment of screening personnel and supervisors.
29. All costs for accounting and financial Includes signing bonuses, travel, and other
services incurred for the support of the recruitment expenses.
screening functions. 34. Any costs incurred for fees charged by
30. Includes all labor and non-labor costs other organizations for the management of
for such items as human resource adminis-
contracts for the screening of persons and
tration, clerical assistance, information
property.
technology, and other support functions re-
lated to screening. 35. Any costs incurred not elsewhere speci-
31. All insurance costs relating to screen- fied during calendar year 2000 for the screen-
ing. Includes worker’s compensation and ing of passengers and property. These costs
general liability insurance. should be itemized on a separate sheet. In-
32. All costs incurred by the air carriers for cludes any fines or monetary penalties in-
law enforcement personnel costs that were curred for screening as well as any profit/bo-
reimbursed by the air carriers for services nuses paid to contractors for screening serv-
performed in connection with the screening ices not included elsewhere on the form.
of persons and property.
286
287
ER20FE02.011</GPH>
PART 1515—APPEAL AND WAIVER AUTHORITY: 46 U.S.C. 70105; 49 U.S.C. 114,

5103a, 40113, and 46105; 18 U.S.C. 842, 845; 6
PROCEDURES FOR SECURITY U.S.C. 469.
THREAT ASSESSMENTS FOR INDI-
SOURCE: 72 FR 3588, Jan. 25, 2007, unless
VIDUALS otherwise noted.
Sec. § 1515.1 Scope.

1515.1 Scope.
1515.3 Terms used in this part. (a) Appeal. This part applies to appli-
1515.5 Appeal of Initial Determination of cants who are appealing an Initial De-
Threat Assessment based on criminal termination of Threat Assessment or
conviction, immigration status, or men- an Initial Determination of Threat As-
tal capacity. sessment and Immediate Revocation in
1515.7 Procedures for waiver of criminal of- a security threat assessment as de-
fenses, immigration status, or mental ca- scribed in:
pacity standards.
(1) 49 CFR part 1572 for a hazardous
1515. 9 Appeal of security threat assessment
materials endorsement (HME) or a
based on other analyses.
Transportation Worker Identification
1515.11 Review by administrative law judge

and TSA Final Decision Maker. Credential (TWIC); or
288
ER20FE02.012</GPH>
(2) 49 CFR part 1540, Subpart C, for Personal delivery includes hand-deliv-
air cargo workers. ery or use of a contract or express mes-
(b) Waivers. This part applies to ap- senger service, but does not include the
plicants for an HME or TWIC who un- use of Government interoffice mail
dergo a security threat assessment de- service.
scribed in 49 CFR part 1572 and are eli- Properly addressed means a document
gible to request a waiver of certain that shows an address contained in
standards. agency records, a residential, business,
or other address submitted by a person
§ 1515.3 Terms used in this part. on any document provided under this
The terms used in 49 CFR parts 1500, subpart, or any other address shown by
1540, 1570, and 1572 also apply in this other reasonable and available means.
part. In addition, the following terms Substantial Evidence means such rel-
are used in this part: evant evidence as a reasonable person
Administrative law judge means an ad- might accept as adequate to support a
ministrative law judge appointed pur- conclusion.
suant to the provisions of 5 U.S.C. 3105. Security threat assessment means the
Applicant means an individual who threat assessment for which the appli-
has applied for one of the security cant has applied, as described in 49
threat assessments identified in 49 CFR CFR 1515.1.
1515.1. This includes an individual who TSA Final Decision Maker means the
previously applied for and was found to Administrator, acting in the capacity
meet the standards for the security of the decision maker on appeal, or any
threat assessment but TSA later deter- person to whom the Administrator has
mined that the individual poses a secu- delegated the Administrator’s decision-
rity threat. making authority. As used in this sub-
Date of service means— part, the TSA Final Decision Maker is
(1) In the case of personal service, the the official authorized to issue a final
date of personal delivery to the resi- decision and order of the Adminis-
dential address listed on the applica- trator.
tion; § 1515.5 Appeal of Initial Determina-
(2) In the case of mailing with a cer- tion of Threat Assessment based on
tificate of service, the date shown on criminal conviction, immigration
the certificate of service; status, or mental capacity.
(3) In the case of mailing and there is (a) Scope. This section applies to ap-
no certificate of service, 10 days from plicants appealing from an Initial De-
the date mailed to the address des- termination of Threat Assessment that
ignated on the application as the mail- was based on one or more of the fol-
ing address; lowing:
(4) In the case of mailing with no cer- (1) TSA has determined that an appli-
tificate of service or postmark, the cant for an HME or a TWIC has a dis-
date mailed to the address designated qualifying criminal offense described in
on the application as the mailing ad- 49 CFR 1572.103.
dress shown by other evidence; or (2) TSA has determined that an appli-
(5) The date on which an electronic cant for an HME or a TWIC does not
transmission occurs. meet the immigration status require-
Day means calendar day. ments as described in 49 CFR 1572.105.
Final Agency Order means an order (3) TSA has determined that an appli-
issued by the TSA Final Decision cant for an HME or a TWIC is lacking
Maker. mental capacity as described in 49 CFR
Decision denying a review of a waiver 1572.109.
means a document issued by an admin- (b) Grounds for appeal. An applicant
istrative law judge denying a waiver may appeal an Initial Determination of
requested under 49 CFR 1515.7. Threat Assessment if the applicant is
Mail includes U.S. mail, or use of an asserting that he or she meets the
express courier service. standards for the security threat as-
Party means the applicant or the sessment for which he or she is apply-
agency attorney. ing.
289
(1) Initiating an appeal. An applicant propriate entity, before TSA deter-

initiates an appeal by submitting a mines that the applicant meets the
written reply to TSA, a written request standards for the security threat as-
for materials from TSA, or by request- sessment.
ing an extension of time in accordance (5) Reply. (i) The applicant may serve
with § 1515.5(f). If the applicant does not upon TSA a written reply to the Initial
initiate an appeal within 60 days of re- Determination of Threat Assessment
ceipt, the Initial Determination of within 60 days of service of the Initial
Threat Assessment becomes a Final Determination, or 60 days after the
Determination of Threat Assessment. date of service of TSA’s response to the
(i) In the case of an HME, TSA also applicant’s request for materials under
serves a Final Determination of Threat paragraph (b)(1) of this section, if the
Assessment on the licensing State. applicant served such request. The
(ii) In the case of a mariner applying reply must include the rationale and
for TWIC, TSA also serves a Final De- information on which the applicant
termination of Threat Assessment on disputes TSA’s Initial Determination.
the Coast Guard. (ii) In an applicant’s reply, TSA will
(iii) In the case of a TWIC, TSA consider only material that is relevant
serves a Final Determination of Threat to whether the applicant meets the
Assessment on the appropriate Federal standards applicable for the security
Maritime Security Coordinator threat assessment for which the appli-
(FMSC). cant is applying.
(2) Request for materials. Within 60 (6) Final determination. Within 60 days
days of the date of service of the Initial after TSA receives the applicant’s
Determination of Threat Assessment, reply, TSA serves a Final Determina-
the applicant may serve upon TSA a tion of Threat Assessment or a With-
written request for copies of the mate- drawal of the Initial Determination as
rials upon which the Initial Determina- provided in paragraphs (c) or (d) of this
tion was based. section.
(3) TSA response. (i) Within 60 days of (c) Final Determination of Threat As-
receiving the applicant’s request for sessment. (1) If the Assistant Adminis-
materials, TSA serves the applicant trator concludes that an HME or TWIC
with copies of the releasable materials applicant does not meet the standards
upon the applicant on which the Initial described in 49 CFR 1572.103, 1572.105, or
Determination was based. TSA will not 1572.109, TSA serves a Final Determina-
include any classified information or tion of Threat Assessment upon the ap-
other protected information described plicant. In addition—
in paragraph (f) of this section. (i) In the case of an HME, TSA serves
(ii) Within 60 days of receiving the a Final Determination of Threat As-
applicant’s request for materials or sessment on the licensing State.
written reply, TSA may request addi- (ii) In the case of a TWIC, TSA serves
tional information or documents from a Final Determination of Threat As-
the applicant that TSA believes are sessment on the Coast Guard.
necessary to make a Final Determina- (2) The Final Determination includes
tion. a statement that the Assistant Admin-
(4) Correction of records. If the Initial istrator has reviewed the Initial Deter-
Determination of Threat Assessment mination, the applicant’s reply and any
was based on a record that the appli- accompanying information, and any
cant believes is erroneous, the appli- other materials or information avail-
cant may correct the record, as fol- able to him or her, and has determined
lows: that the applicant poses a security
(i) The applicant contacts the juris- threat warranting denial of the secu-
diction or entity responsible for the in- rity threat assessment for which the
formation and attempts to correct or applicant has applied.
complete information contained in his (d) Withdrawal of Initial Determina-
or her record. tion. If the Assistant Administrator or
(ii) The applicant provides TSA with Assistant Secretary concludes that the
the revised record, or a certified true applicant does not pose a security
copy of the information from the ap- threat, TSA serves a Withdrawal of the
290
Initial Determination upon the appli- (i) An applicant for an HME or TWIC
cant, and the applicant’s employer who has a disqualifying criminal of-
where applicable. fense described in 49 CFR 1572.103(a)(5)
(e) Nondisclosure of certain informa- through (a)(12) or 1572.103(b) and who
tion. In connection with the procedures requests a waiver.
under this section, TSA does not dis- (ii) An applicant for an HME or TWIC
close classified information to the ap- who is an alien under temporary pro-
plicant, as defined in E.O. 12968 sec. tected status as described in 49 CFR
1.1(d), and reserves the right not to dis- 1572.105 and who requests a waiver.
close any other information or mate- (iii) An applicant applying for an
rial not warranting disclosure or pro- HME or TWIC who lacks mental capac-
tected from disclosure under law. ity as described in 49 CFR 1572.109 and
(f) Extension of time. TSA may grant who requests a waiver.
an applicant an extension of time of (b) Grounds for waiver. TSA may issue
the limits for good cause shown. An ap- a waiver of the standards described in
plicant’s request for an extension of paragraph (a) and grant an HME or
time must be in writing and be re- TWIC if TSA determines that an appli-
ceived by TSA within a reasonable cant does not pose a security threat
time before the due date to be ex- based on a review of information de-
tended; or an applicant may request an scribed in paragraph (c) of this section.
extension after the expiration of a due (c) Initiating waiver. (1) An applicant
date by sending a written request de- initiates a waiver as follows:
scribing why the failure to file within (i) Providing to TSA the information
the time limits was excusable. TSA required in 49 CFR 1572.9 for an HME or
may grant itself an extension of time 49 CFR 1572.17 for a TWIC.
for good cause. (ii) Paying the fees required in 49
(g) Judicial review. For purposes of ju- CFR 1572.405 for an HME or in 49 CFR
dicial review, the Final Determination 1572.501 for a TWIC.
of Threat Assessment constitutes a (iii) Sending a written request to
final TSA order of the determination TSA for a waiver at any time, but not
that the applicant does not meet the later than 60 days after the date of
standards for a security threat assess- service of the Final Determination of
ment, in accordance with 49 U.S.C. Threat Assessment. The applicant may
46110. The Final Determination is not a request a waiver during the application
final TSA order to grant or deny a process, or may first pursue some or all
waiver, the procedures for which are in of the appeal procedures in 49 CFR
49 CFR 1515.7 and 1515.11. 1515.5 to assert that he or she does not
(h) Appeal of immediate revocation. If have a disqualifying condition.
TSA directs an immediate revocation, (2) In determining whether to grant a
the applicant may appeal this deter- waiver, TSA will consider the following
mination by following the appeal pro- factors, as applicable to the disquali-
cedures described in paragraph (b) of fying condition:
this section. This applies— (i) The circumstances of the disquali-
fying act or offense.
(1) If TSA directs a State to revoke
(ii) Restitution made by the appli-
an HME pursuant to 49 CFR 1572.13(a).
cant.
(2) If TSA invalidates a TWIC by
(iii) Any Federal or State mitigation
issuing an Initial Determination of
remedies.
Threat Assessment and Immediate
(iv) Court records or official medical
Revocation pursuant to 49 CFR
release documents indicating that the
1572.21(d)(3).
applicant no longer lacks mental ca-
[72 FR 3588, Jan. 25, 2007; 72 FR 14049, Mar. 26, pacity.
2007] (v) Other factors that indicate the
applicant does not pose a security
§ 1515.7 Procedures for waiver of threat warranting denial of the HME or
criminal offenses, immigration sta- TWIC.
tus, or mental capacity standards. (d) Grant or denial of waivers. (1) The
(a) Scope. This section applies to the Assistant Administrator will send a
following applicants: written decision granting or denying
291
the waiver to the applicant within 60 a security threat. The appeal will be
days of service of the applicant’s re- conducted in accordance with the pro-
quest for a waiver, or longer period as cedures set forth in 49 CFR 1515.5(b),
TSA may determine for good cause. (e), and (f) and this section.
(2) In the case of an HME, if the As- (c) Final Determination of Threat As-
sistant Administrator grants the waiv- sessment. (1) If the Assistant Adminis-
er, the Assistant Administrator will trator concludes that the applicant
send a Determination of No Security poses a security threat, following an
Threat to the licensing State within 60 appeal, TSA serves a Final Determina-
days of service of the applicant’s re- tion of Threat Assessment upon the ap-
quest for a waiver, or longer period as plicant. In addition—
TSA may determine for good cause. (i) In the case of an HME, TSA serves
(3) In the case of a mariner applying a Final Determination of Threat As-
for a TWIC, if the Assistant Adminis- sessment on the licensing State.
trator grants the waiver, the Assistant (ii) In the case of a TWIC, TSA serves
Administrator will send a Determina- a Final Determination of Threat As-
tion of No Security Threat to the Coast sessment on the Coast Guard.
Guard within 60 days of service of the
(iii) In the case of an air cargo work-
applicant’s request for a waiver, or
er, TSA serves a Final Determination
longer period as TSA may determine
of Threat Assessment on the operator.
for good cause.
(2) The Final Determination includes
(4) If the Assistant Administrator de-
a statement that the Assistant Admin-
nies the waiver the applicant may seek
istrator has reviewed the Initial Deter-
review in accordance with 49 CFR
mination, the applicant’s reply and any
1515.11. A denial of a waiver under this
accompanying information, and any
section does not constitute a final
other materials or information avail-
order of TSA as provided in 49 U.S.C.
able to him or her, and has determined
46110.
that the applicant poses a security
(e) Extension of time. TSA may grant
threat warranting denial of the secu-
an applicant an extension of the time
rity threat assessment for which the
limits for good cause shown. An appli-
applicant has applied.
cant’s request for an extension of time
must be in writing and be received by (d) Withdrawal of Initial Determina-
TSA within a reasonable time before tion. If the Assistant Administrator
the due date to be extended; or an ap- concludes that the applicant does not
plicant may request an extension after pose a security threat, TSA serves a
the expiration of a due date by sending Withdrawal of the Initial Determina-
a written request describing why the tion upon the applicant, and the appli-
failure to file within the time limits cant’s employer where applicable.
was excusable. TSA may grant itself an (e) Further review. If the Assistant
extension of time for good cause. Administrator denies the appeal, the
applicant may seek review in accord-
§ 1515.9 Appeal of security threat as- ance with § 1515.11 of this part. A Final
sessment based on other analyses. Determination issued under this sec-
(a) Scope. This section applies to an tion does not constitute a final order of
applicant appealing an Initial Deter- TSA as provided in 49 U.S.C. 46110.
mination of Threat Assessment as fol- (f) Appeal of immediate revocation. If
lows: TSA directs an immediate revocation,
(1) TSA has determined that the ap- the applicant may appeal this deter-
plicant for an HME or TWIC poses a semination by following the appeal pro-
curity threat as provided in 49 CFR cedures described in paragraph (b) of
1572.107. this section. This applies—
(2) TSA had determined that an air (1) If TSA directs a State to revoke
cargo worker poses a security threat as an HME pursuant to 49 CFR 1572.13(a).
provided in 49 CFR 1540.205. (2) If TSA invalidates a TWIC by
(b) Grounds for appeal. An applicant issuing an Initial Determination of
may appeal an Initial Determination of Threat Assessment and Immediate
Threat Assessment if the applicant is Revocation pursuant to 49 CFR

asserting that he or she does not pose 1572.21(d)(3).
292
(3) If TSA withdraws a Determina- and the pending request for review of a
tion of No Threat issued for an air denial of a waiver will be dismissed.
cargo worker. (ii) In the case of a review of a Final
Determination of Threat Assessment, a
§ 1515.11 Review by administrative copy of the Initial Notification of
law judge and TSA Final Decision Threat Assessment and Final Notifica-
Maker. tion of Threat Assessment; and a copy
(a) Scope. This section applies to the of the applicant’s appeal under 49 CFR
following applicants: 1515.9, including all materials provided
(1) An applicant who seeks review of by the applicant to TSA in support of
a decision by TSA denying a request the appeal. The request for review may
for a waiver under 49 CFR 1515.7. not include evidence or information
(2) An applicant for an HME or a that was not presented to TSA in the
TWIC who has been issued a Final De- appeal under § 1515.9. The ALJ may
termination of Threat Assessment on consider only evidence or information
the grounds that he or she poses a secu- that was presented to TSA in the ap-
rity threat after an appeal as described peal. If the applicant has new evidence
in 49 CFR 1515.9. or information, the applicant must file
(3) An air cargo worker who has been a new appeal under § 1515.9 and the
issued a Final Determination of Threat pending request for review of the Final
Assessment after an appeal as de- Determination will be dismissed.
scribed in 49 CFR 1515.9. (2) The applicant may include in the
(b) Request for review. No later than 30 request for review a request for an in-
calendar days from the date of service person hearing before the ALJ.
of the decision by TSA denying a waiv- (3) The applicant must file the re-
er or of the Final Determination of quest for review with the ALJ Dock-
Threat Assessment, the applicant may eting Center, U.S. Coast Guard, 40 S.
request a review. The review will be Gay Street, Room 412, Baltimore,
conducted by an administrative law Maryland 21202–4022, ATTN: Hearing
judge who possesses the appropriate se- Docket Clerk.
curity clearance necessary to review (c) Extension of Time. The ALJ may
classified or otherwise protected infor- grant an extension of the time limits
mation and evidence. If the applicant described in this section for good cause
fails to seek review within 30 calendar shown. A request for an extension of
days, the Final Determination of time must be in writing and be re-
Threat Assessment will be final with ceived by the ALJ within a reasonable
respect to the parties. time before the due date to be ex-
(1) The request for review must clear- tended; or an applicant may request an
ly state the issue(s) to be considered by extension after the expiration of a due
the administrative law judge (ALJ), date by sending a written request de-
and include the following documents in scribing why the failure to file within
support of the request: the time limits was excusable. This
(i) In the case of a review of a denial paragraph does not apply to time lim-
of waiver, a copy of the applicant’s re- its set by the administrative law judge
quest for a waiver under 49 CFR 1515.7, during the hearing.
including all materials provided by the (d) Duties of the Administrative Law
applicant to TSA in support of the Judge. The ALJ may:
waiver request; and a copy of the deci- (1) Receive information and evidence
sion issued by TSA denying the waiver presented to TSA in the request for a
request. The request for review may waiver under 49 CFR 1515.7 or an appeal
not include evidence or information under 49 CFR 1515.9.
that was not presented to TSA in the (2) Consider the following criteria to
request for a waiver under 49 CFR determine whether a request for an in-
1515.7. The ALJ may consider only evi- person hearing is warranted:
dence or information that was pre- (i) The credibility of evidence or in-
sented to TSA in the waiver request. If formation submitted in the applicant’s
the applicant has new evidence or in- request for a waiver; and
formation, the applicant must file a (ii) Whether TSA’s waiver denial was
new request for a waiver under § 1515.7 made in accordance with the governing
293
regulations codified at 49 CFR part 1515 vided upon request at the expense of
and 49 CFR part 1572. the requesting party. In cases in which
(3) Give notice of and hold con- classified or otherwise protected evi-
ferences and hearings; dence is received, the transcript may
(4) Administer oaths and affirma- require redaction of the classified or
tions; otherwise protected information.
(5) Examine witnesses; (8) The hearing will be held at TSA’s
(6) Regulate the course of the hearing Headquarters building or, on request of
including granting extensions of time a party, at an alternate location se-
limits; and lected by the administrative law judge
(7) Dispose of procedural motions and for good cause shown.
requests, and issue a decision. (f) Decision of the Administrative Law
(e) Hearing. If the ALJ grants a re- Judge. (1) The record is closed once the
quest for a hearing, except for good certified transcript and all documents
cause shown, it will begin within 60 and materials have been submitted for
calendar days of the date of receipt of the record.
the request for hearing. The hearing is (2) The ALJ issues an unclassified
a limited discovery proceeding and is written decision to the applicant no
conducted as follows: later than 30 calendar days from the
(1) If applicable and upon request, close of the record and serves the deci-
TSA will provide to the applicant re- sion on the parties. The ALJ may issue
questing a review an unclassified sum- a classified decision to TSA.
mary of classified evidence upon which (3) The ALJ’s decision may be ap-
the denial of the waiver or Final Deter- pealed by either party to the TSA
mination was based. Final Decision Maker in accordance
(i) TSA will not disclose to the appli- with paragraph (g).
cant, or the applicant’s counsel, classi- (i) In the case of review of a waiver
fied information, as defined in E.O. denial, unless appealed to the TSA
12968 section 1.1(d). Final Decision Maker, if the ALJ up-
(ii) TSA reserves the right not to dis- holds the denial of the applicant’s re-
close any other information or mate- quest for waiver, TSA will issue a Final
rial not warranting disclosure or pro- Order Denying a Waiver to the appli-
tected from disclosure by law or regu- cant.
lation. (ii) In the case of review of a waiver
(2) The applicant may present the denial, unless appealed to the TSA
case by oral testimony, documentary, Final Decision Maker, if the ALJ re-
or demonstrative evidence, submit reverses the denial of the applicant’s re-
buttal evidence, and conduct cross-ex- quest for waiver, TSA will issue a Final
amination, as permitted by the ALJ. Order granting a waiver to the appli-
Oral testimony is limited to the evi- cant; and
dence or information that was pre- (A) In the case of an HME, send a De-
sented to TSA in the request for a termination of No Security Threat to
waiver or during the appeal. The Fed- the licensing State.
eral Rules of Evidence may serve as (B) In the case applicant for a TWIC,
guidance, but are not binding. send a Determination of No Security
(3) The ALJ will review any classified Threat to the Coast Guard.
information on an ex parte, in camera (C) In the case of an air cargo work-
basis, and may consider such informa- er, send a Determination of No Secu-
tion in rendering a decision if the in- rity Threat to the operator.
formation appears to be material and (iii) In the case of review of an appeal
relevant. under 49 CFR 1515.9, unless appealed to
(4) The standard of proof is substan- the TSA Final Decision Maker, if the
tial evidence on the record. ALJ determines that the applicant
(5) The parties may submit proposed poses a security threat, TSA will issue
findings of fact and conclusions of law. a Final Order of Threat Assessment to
(6) If the applicant fails to appear, the applicant.
the ALJ may issue a default judgment. (iv) In the case of review of an appeal
(7) A verbatim transcript will be under 49 CFR 1515.9, unless appealed to

made of the hearing and will be pro- the TSA Final Decision Maker, if the
294
ALJ determines that the applicant Maker upholds the denial of the appli-
does not pose a security threat, TSA cant’s request for waiver, TSA issues a
will issue a Withdrawal of the Final Final Order Denying a Waiver to the
Determination to the applicant, and to applicant.
the applicant’s employer where appli- (ii) In the case of review of a waiver
cable. denial, if the TSA Final Decision
(g) Review by the TSA Final Decision Maker reverses the denial of the appli-
Maker. (1) Either party may request cant’s request for waiver, TSA will
that the TSA Final Decision Maker re- grant the waiver; and
view the ALJ’s decision by serving the (A) In the case of an HME, send a De-
request no later than 30 calendar days termination of No Security Threat to
after the date of service of the decision the applicant and to the licensing
of the ALJ. State.
(i) The request must be in writing, (B) In the case of a TWIC, send a De-
served on the other party, and may termination of No Security Threat to
only address whether the decision is the applicant and to the Coast Guard.
supported by substantial evidence on (C) In the case of an air cargo work-
the record. er, send a Determination of No Secu-
(ii) No later than 30 calendar days rity Threat to the applicant and the
after receipt of the request, the other operator.
party may file a response.
(iii) In the case of review of an appeal
(2) The ALJ will provide the TSA
under 49 CFR 1515.9, if the TSA Final
Final Decision Maker with a certified
Decision Maker determines that the
transcript of the hearing and all un-
applicant poses a security threat, TSA
classified documents and material sub-
will issue a Final Order of Threat As-
mitted for the record. TSA will provide
sessment to the applicant.
any classified materials previously
(iv) In the case of review of an appeal
submitted.
(3) No later than 60 calendar days under 49 CFR 1515.9, if the TSA Final
after receipt of the request, or if the Decision Maker determines that the
other party files a response, 30 calendar applicant does not pose a security
days after receipt of the response, or threat, TSA will issue a Withdrawal of
such longer period as may be required, the Final Determination to the appli-
the TSA Final Decision Maker issues cant, and to the applicant’s employer
an unclassified decision and serves the where applicable.
decision on the parties. The TSA Final (h) Judicial Review of a Final Order De-
Decision Maker may issue a classified nying a Waiver. A person may seek judi-
opinion to TSA, if applicable. The deci- cial review of a final order of the TSA
sion of the TSA Final Decision Maker Final Decision Maker as provided in 49
is a final agency order. U.S.C. 46110.
(i) In the case of review of a waiver [72 FR 3588, Jan. 25, 2007; 72 FR 5633, Feb. 7,
denial, if the TSA Final Decision 2007]
295
SUBCHAPTER B—SECURITY RULES FOR ALL MODES OF
TRANSPORTATION
PART 1520—PROTECTION OF Administrator means the Under Sec-

SENSITIVE SECURITY INFORMATION retary of Transportation for Security
referred to in 49 U.S.C. 114(b), or his or
Sec. her designee.
1520.1 Scope. Coast Guard means the United States
1520.3 Terms used in this part. Coast Guard.
1520.5 Sensitive security information. Covered person means any organiza-
1520.7 Covered persons. tion, entity, individual, or other person
1520.9 Restrictions on the disclosure of SSI.
described in § 1520.7. In the case of an
1520.11 Persons with a need to know.
1520.13 Marking SSI. individual, covered person includes any
1520.15 SSI disclosed by TSA or the Coast individual applying for employment in
Guard. a position that would be a covered per-
1520.17 Consequences of unauthorized disclo- son, or in training for such a position,
sure of SSI. regardless of whether that individual is
1520.19 Destruction of SSI. receiving a wage, salary, or other form
AUTHORITY: 46 U.S.C. 70102–70106, 70117; 49 of payment. Covered person includes a
U.S.C. 114, 40113, 44901–44907, 44913–44914, person applying for certification or
44916–44918, 44935–44936, 44942, 46105. other form of approval that, if granted,
SOURCE: 69 FR 28082, May 18, 2004, unless would make the person a covered per-
otherwise noted. son described in § 1520.7.
DHS means the Department of Home-
§ 1520.1 Scope. land Security and any directorate, bu-
(a) Applicability. This part governs reau, or other component within the
the maintenance, safeguarding, and Department of Homeland Security, in-
disclosure of records and information cluding the United States Coast Guard.
that TSA has determined to be Sen- DOT means the Department of Trans-
sitive Security Information, as defined portation and any operating adminis-
in § 1520.5. This part does not apply to tration, entity, or office within the De-
the maintenance, safeguarding, or dis- partment of Transportation, including
closure of classified national security the Saint Lawrence Seaway Develop-
information, as defined by Executive ment Corporation and the Bureau of
Order 12968, or to other sensitive un- Transportation Statistics.
classified information that is not SSI, Federal Flight Deck Officer means a
but that nonetheless may be exempt pilot participating in the Federal
from public disclosure under the Free- Flight Deck Officer Program under 49
dom of Information Act. In addition, in U.S.C. 44921 and implementing regula-
the case of information that has been tions.
designated as critical infrastructure in- Maritime facility means any facility as
formation under section 214 of the defined in 33 CFR part 101.
Homeland Security Act, the receipt, Record includes any means by which
maintenance, or disclosure of such in- information is preserved, irrespective
formation by a Federal agency or em- of format, including a book, paper,
ployee is governed by section 214 and drawing, map, recording, tape, film,
any implementing regulations, not by photograph, machine-readable mate-
this part. rial, and any information stored in an
(b) Delegation. The authority of TSA electronic format. The term record also
and the Coast Guard under this part includes any draft, proposed, or rec-
may be further delegated within TSA ommended change to any record.
and the Coast Guard, respectively. Security contingency plan means a
plan detailing response procedures to
§ 1520.3 Terms used in this part. address a transportation security inci-
In addition to the terms in § 1500.3 of dent, threat assessment, or specific
this chapter, the following terms apply threat against transportation, includ-
in this part: ing details of preparation, response,
296
mitigation, recovery, and reconstitu- (1) Constitute an unwarranted inva-

tion procedures, continuity of govern- sion of privacy (including, but not lim-
ment, continuity of transportation op- ited to, information contained in any
erations, and crisis management. personnel, medical, or similar file);
Security program means a program or (2) Reveal trade secrets or privileged
plan and any amendments, developed or confidential information obtained
for the security of the following, in- from any person; or
cluding any comments, instructions, or (3) Be detrimental to the security of
implementing guidance: transportation.
(1) An airport, aircraft, or aviation (b) Information constituting SSI. Ex-
cargo operation; cept as otherwise provided in writing
(2) A fixed base operator; by TSA in the interest of public safety
(3) A maritime facility, vessel, or or in furtherance of transportation se-
port area; or curity, the following information, and
(4) A transportation-related auto- records containing such information,
mated system or network for informa- constitute SSI:
tion processing, control, and commu- (1) Security programs and contingency
nications. plans. Any security program or secu-
Security screening means evaluating a rity contingency plan issued, estab-
person or property to determine wheth- lished, required, received, or approved
er either poses a threat to security. by DOT or DHS, including—
SSI means sensitive security infor- (i) Any aircraft operator, airport op-
mation, as described in § 1520.5. erator, or fixed base operator security
Threat image projection system means program, or security contingency plan
an evaluation tool that involves peri- under this chapter;
odic presentation of fictional threat (ii) Any vessel, maritime facility, or
images to operators and is used in con- port area security plan required or di-
nection with x-ray or explosives detec- rected under Federal law;
tion systems equipment. (iii) Any national or area security
TSA means the Transportation Secu- plan prepared under 46 U.S.C. 70103; and
rity Administration. (iv) Any security incident response
Vulnerability assessment means any re- plan established under 46 U.S.C. 70104.
view, audit, or other examination of (2) Security Directives. Any Security
the security of a transportation infra- Directive or order—
structure asset; airport; maritime fa- (i) Issued by TSA under 49 CFR
cility, port area, vessel, aircraft, train, 1542.303, 1544.305, 1548.19, or other au-
commercial motor vehicle, or pipeline, thority;
or a transportation-related automated (ii) Issued by the Coast Guard under
system or network, to determine its the Maritime Transportation Security
vulnerability to unlawful interference, Act, 33 CFR part 6, or 33 U.S.C. 1221 et
whether during the conception, plan- seq. related to maritime security; or
ning, design, construction, operation, (iii) Any comments, instructions, and
or decommissioning phase. A vulner- implementing guidance pertaining
ability assessment may include proposed, thereto.
recommended, or directed actions or (3) Information Circulars. Any notice
countermeasures to address security issued by DHS or DOT regarding a
concerns. threat to aviation or maritime trans-
[69 FR 28082, May 18, 2004, as amended at 70 portation, including any—
FR 41599, July 19, 2005] (i) Information circular issued by
TSA under 49 CFR 1542.303, 1544.305,
§ 1520.5 Sensitive security informa- 1548.19, or other authority; and
tion. (ii) Navigation or Vessel Inspection
(a) In general. In accordance with 49 Circular issued by the Coast Guard re-
U.S.C. 114(s), SSI is information ob- lated to maritime security.
tained or developed in the conduct of (4) Performance specifications. Any
security activities, including research performance specification and any de-
and development, the disclosure of scription of a test object or test proce-

which TSA has determined would— dure, for—
297
(i) Any device used by the Federal cases referred to TSA or FAA counsel
Government or any other person pursu- for legal enforcement action, and num-
ant to any aviation or maritime trans- ber of cases closed.
portation security requirements of (7) Threat information. Any informa-
Federal law for the detection of any tion held by the Federal government
person, and any weapon, explosive, in- concerning threats against transpor-
cendiary, or destructive device, item, tation or transportation systems and
or substance; and sources and methods used to gather or
(ii) Any communications equipment develop threat information, including
used by the Federal government or any threats against cyber infrastructure.
other person in carrying out or com- (8) Security measures. Specific details
plying with any aviation or maritime of aviation or maritime transportation
transportation security requirements security measures, both operational
of Federal law. and technical, whether applied directly
(5) Vulnerability assessments. Any vul-
by the Federal government or another
nerability assessment directed, cre-
person, including—
ated, held, funded, or approved by the
DOT, DHS, or that will be provided to (i) Security measures or protocols
DOT or DHS in support of a Federal se- recommended by the Federal govern-
curity program. ment;
(6) Security inspection or investigative (ii) Information concerning the de-
information. (i) Details of any security ployments, numbers, and operations of
inspection or investigation of an al- Coast Guard personnel engaged in mar-
leged violation of aviation or maritime itime security duties and Federal Air
transportation security requirements Marshals, to the extent it is not classi-
of Federal law that could reveal a secu- fied national security information; and
rity vulnerability, including the iden- (iii) Information concerning the de-
tity of the Federal special agent or ployments and operations of Federal
other Federal employee who conducted Flight Deck Officers, and numbers of
the inspection or audit. Federal Flight Deck Officers aggre-
(ii) In the case of inspections or in- gated by aircraft operator.
vestigations performed by TSA, this in- (iv) Any armed security officer proce-
cludes the following information as to dures issued by TSA under 49 CFR part
events that occurred within 12 months 1562.
of the date of release of the informa- (9) Security screening information. The
tion: the name of the airport where a following information regarding secu-
violation occurred, the airport identi- rity screening under aviation or mari-
fier in the case number, a description time transportation security require-
of the violation, the regulation alleg- ments of Federal law:
edly violated, and the identity of any (i) Any procedures, including selec-
aircraft operator in connection with tion criteria and any comments, in-
specific locations or specific security structions, and implementing guidance
procedures. Such information will be
pertaining thereto, for screening of
released after the relevant 12-month
persons, accessible property, checked
period, except that TSA will not re-
baggage, U.S. mail, stores, and cargo,
lease the specific gate or other location
that is conducted by the Federal gov-
on an airport where an event occurred,
ernment or any other authorized per-
regardless of the amount of time that
has passed since its occurrence. During son.
the period within 12 months of the date (ii) Information and sources of infor-
of release of the information, TSA may mation used by a passenger or property
release summaries of an aircraft opera- screening program or system, including
tor’s, but not an airport operator’s, an automated screening system.
total security violations in a specified (iii) Detailed information about the
time range without identifying specific locations at which particular screening
violations or locations. Summaries methods or equipment are used, only if
may include total enforcement actions, determined by TSA to be SSI.
total proposed civil penalty amounts, (iv) Any security screener test and
number of cases opened, number of scores of such tests.
298
(v) Performance or testing data from operational or administrative data sys-

security equipment or screening systems operated by the Federal govern-
tems. ment that have been identified by the
(vi) Any electronic image shown on DOT or DHS as critical to aviation or
any screening equipment monitor, in- maritime transportation safety or se-
cluding threat images and descriptions curity, including automated informa-
of threat images for threat image pro- tion security procedures and systems,
jection systems. security inspections, and vulnerability
(10) Security training materials. information concerning those systems.
Records created or obtained for the (14) Confidential business information.
purpose of training persons employed (i) Solicited or unsolicited proposals
by, contracted with, or acting for the received by DHS or DOT, and negotia-
Federal government or another person
tions arising therefrom, to perform
to carry out any aviation or maritime
work pursuant to a grant, contract, co-
transportation security measures re-
operative agreement, or other trans-
quired or recommended by DHS or
action, but only to the extent that the
DOT.
(11) Identifying information of certain subject matter of the proposal relates
transportation security personnel. (i) to aviation or maritime transportation
Lists of the names or other identifying security measures;
information that identify persons as— (ii) Trade secret information, includ-
(A) Having unescorted access to a se- ing information required or requested
cure area of an airport or a secure or by regulation or Security Directive,
restricted area of a maritime facility, obtained by DHS or DOT in carrying
port area, or vessel or; out aviation or maritime transpor-
(B) Holding a position as a security tation security responsibilities; and
screener employed by or under con- (iii) Commercial or financial infor-
tract with the Federal government pur- mation, including information required
suant to aviation or maritime trans- or requested by regulation or Security
portation security requirements of Directive, obtained by DHS or DOT in
Federal law, where such lists are aggre- carrying out aviation or maritime
gated by airport; transportation security responsibil-
(C) Holding a position with the Coast ities, but only if the source of the in-
Guard responsible for conducting vul- formation does not customarily dis-
nerability assessments, security close it to the public.
boardings, or engaged in operations to (15) Research and development. Infor-
enforce maritime security require- mation obtained or developed in the
ments or conduct force protection; conduct of research related to aviation
(D) Holding a position as a Federal
or maritime transportation security
Air Marshal; or
activities, where such research is ap-
(ii) The name or other identifying in-
proved, accepted, funded, rec-
formation that identifies a person as a
ommended, or directed by the DHS or
current, former, or applicant for Fed-
DOT, including research results.
eral Flight Deck Officer.
(12) Critical aviation or maritime infra- (16) Other information. Any informa-
structure asset information. Any list tion not otherwise described in this
identifying systems or assets, whether section that TSA determines is SSI
physical or virtual, so vital to the avia- under 49 U.S.C. 114(s) or that the Sec-
tion or maritime transportation sys- retary of DOT determines is SSI under
tem that the incapacity or destruction 49 U.S.C. 40119. Upon the request of an-
of such assets would have a debili- other Federal agency, TSA or the Sec-
tating impact on transportation secu- retary of DOT may designate as SSI in-
rity, if the list is— formation not otherwise described in
(i) Prepared by DHS or DOT; or this section.
(ii) Prepared by a State or local gov- (c) Loss of SSI designation. TSA or the
ernment agency and submitted by the Coast Guard may determine in writing
agency to DHS or DOT. that information or records described
(13) Systems security information. Any in paragraph (b) of this section do not
information involving the security of constitute SSI because they no longer
299
meet the criteria set forth in para- provided to DOT or DHS in support of
graph (a) of this section. a Federal security program.
[69 FR 28082, May 18, 2004, as amended at 70
(m) Each person receiving SSI under
FR 41599, July 19, 2005; 71 FR 30507, May 26, § 1520.15(d) or (e).
2006] [69 FR 28082, May 18, 2004, as amended at 70
FR 41600, July 19, 2005]
§ 1520.7 Covered persons.
Persons subject to the requirements § 1520.9 Restrictions on the disclosure
of part 1520 are: of SSI.
(a) Each airport operator, aircraft op- (a) Duty to protect information. A cov-
erator, and fixed base operator subject ered person must—
to the requirements of subchapter C of (1) Take reasonable steps to safe-
this chapter, and each armed security guard SSI in that person’s possession
officer under subpart B of part 1562. or control from unauthorized disclo-
(b) Each indirect air carrier, as de- sure. When a person is not in physical
fined in 49 CFR 1540.5. possession of SSI, the person must
(c) Each owner, charterer, or oper- store it a secure container, such as a
ator of a vessel, including foreign ves- locked desk or file cabinet or in a
sel owners, charterers, and operators, locked room.
required to have a security plan under (2) Disclose, or otherwise provide ac-
Federal or International law. cess to, SSI only to covered persons
(d) Each owner or operator of a mari- who have a need to know, unless other-
time facility required to have a secu- wise authorized in writing by TSA, the
rity plan under the Maritime Transpor- Coast Guard, or the Secretary of DOT.
tation Security Act, (Pub.L. 107–295), 46 (3) Refer requests by other persons
U.S.C. 70101 et seq., 33 CFR part 6, or 33 for SSI to TSA or the applicable com-
U.S.C. 1221 et seq. ponent or agency within DOT or DHS.
(e) Each person performing the func- (4) Mark SSI as specified in § 1520.13.
tion of a computer reservation system (5) Dispose of SSI as specified in
or global distribution system for air- § 1520.19.
line passenger information. (b) Unmarked SSI. If a covered person
(f) Each person participating in a na- receives a record containing SSI that is
tional or area security committee es- not marked as specified in § 1520.13, the
tablished under 46 U.S.C. 70112, or a covered person must—
port security committee. (1) Mark the record as specified in
(g) Each industry trade association § 1520.13; and
that represents covered persons and (2) Inform the sender of the record
has entered into a non-disclosure that the record must be marked as
agreement with the DHS or DOT. specified in § 1520.13.
(h) DHS and DOT. (c) Duty to report unauthorized disclo-
(i) Each person conducting research sure. When a covered person becomes
and development activities that relate aware that SSI has been released to un-
to aviation or maritime transportation authorized persons, the covered person
security and are approved, accepted, must promptly inform TSA or the ap-
funded, recommended, or directed by plicable DOT or DHS component or
DHS or DOT. agency.
(j) Each person who has access to (d) Additional Requirements for Critical
SSI, as specified in § 1520.11. Infrastructure Information. In the case
(k) Each person employed by, con- of information that is both SSI and has
tracted to, or acting for a covered per- been designated as critical infrastruc-
son, including a grantee of DHS or ture information under section 214 of
DOT, and including a person formerly the Homeland Security Act, any cov-
in such position. ered person who is a Federal employee
(l) Each person for which a vulner- in possession of such information must
ability assessment has been directed, comply with the disclosure restrictions
created, held, funded, or approved by and other requirements applicable to
the DOT, DHS, or that has prepared a such information under section 214 and
vulnerability assessment that will be any implementing regulations.
300
§ 1520.11 Persons with a need to know. § 1520.13 Marking SSI.

(a) In general. A person has a need to (a) Marking of paper records. In the
know SSI in each of the following cir- case of paper records containing SSI, a
cumstances: covered person must mark the record
(1) When the person requires access by placing the protective marking con-
to specific SSI to carry out transpor- spicuously on the top, and the distribu-
tation security activities approved, action limitation statement on the bot-
cepted, funded, recommended, or di- tom, of—
rected by DHS or DOT. (1) The outside of any front and back
(2) When the person is in training to cover, including a binder cover or fold-
carry out transportation security ac- er, if the document has a front and
tivities approved, accepted, funded, back cover;
recommended, or directed by DHS or (2) Any title page; and
DOT. (3) Each page of the document.
(3) When the information is necessary (b) Protective marking. The protective
for the person to supervise or otherwise marking is: SENSITIVE SECURITY
manage individuals carrying out trans- INFORMATION.
portation security activities approved, (c) Distribution limitation statement.
accepted, funded, recommended, or di- The distribution limitation statement
rected by the DHS or DOT. is:
(4) When the person needs the infor- WARNING: This record contains Sensitive
mation to provide technical or legal Security Information that is controlled
advice to a covered person regarding under 49 CFR parts 15 and 1520. No part of
transportation security requirements this record may be disclosed to persons with-
of Federal law. out a ‘‘need to know’’, as defined in 49 CFR
parts 15 and 1520, except with the written
(5) When the person needs the infor- permission of the Administrator of the
mation to represent a covered person Transportation Security Administration or
in connection with any judicial or ad- the Secretary of Transportation. Unauthor-
ministrative proceeding regarding ized release may result in civil penalty or
those requirements. other action. For U.S. government agencies,
public disclosure is governed by 5 U.S.C. 552
(b) Federal employees, contractors, and
and 49 CFR parts 15 and 1520.
grantees. (1) A Federal employee has a
need to know SSI if access to the infor- (d) Other types of records. In the case
mation is necessary for performance of of non-paper records that contain SSI,
the employee’s official duties. including motion picture films, video-
(2) A person acting in the perform- tape recordings, audio recording, and
ance of a contract with or grant from electronic and magnetic records, a cov-
DHS or DOT has a need to know SSI if ered person must clearly and conspicu-
access to the information is necessary ously mark the records with the pro-
to performance of the contract or tective marking and the distribution
grant. limitation statement such that the
(c) Background check. TSA or Coast viewer or listener is reasonably likely
Guard may make an individual’s access to see or hear them when obtaining ac-
cess to the contents of the record.
to the SSI contingent upon satisfac-
tory completion of a security back- § 1520.15 SSI disclosed by TSA or the
ground check or other procedures and Coast Guard.
requirements for safeguarding SSI that
are satisfactory to TSA or the Coast (a) In general. Except as otherwise
Guard. provided in this section, and notwith-
standing the Freedom of Information
(d) Need to know further limited by the
Act (5 U.S.C. 552), the Privacy Act (5
DHS or DOT. For some specific SSI,
U.S.C. 552a), and other laws, records
DHS or DOT may make a finding that
containing SSI are not available for
only specific persons or classes of per-
public inspection or copying, nor does
sons have a need to know. TSA or the Coast Guard release such
[69 FR 28082, May 18, 2004, as amended at 70 records to persons without a need to
FR 1382, Jan. 7, 2005] know.
301
(b) Disclosure under the Freedom of In- tion that individual becomes a covered
formation Act and the Privacy Act. If a person under § 1520.7 and is subject to
record contains both SSI and informa- the obligations of a covered person
tion that is not SSI, TSA or the Coast under this part.
Guard, on a proper Freedom of Infor- (g) No release under FOIA. When TSA
mation Act or Privacy Act request, discloses SSI pursuant to paragraphs
may disclose the record with the SSI (b) through (e) of this section, TSA
redacted, provided the record is not makes the disclosure for the sole pur-
otherwise exempt from disclosure pose described in that paragraph. Such
under the Freedom of Information Act disclosure is not a public release of in-
or Privacy Act. formation under the Freedom of Infor-
(c) Disclosures to committees of Con- mation Act.
gress and the General Accounting Office. (h) Disclosure of Critical Infrastructure
Nothing in this part precludes TSA or Information. Disclosure of information
the Coast Guard from disclosing SSI to that is both SSI and has been des-
a committee of Congress authorized to ignated as critical infrastructure infor-
have the information or to the Comp- mation under section 214 of the Home-
troller General, or to any authorized land Security Act is governed solely by
representative of the Comptroller Gen- the requirements of section 214 and any
eral. implementing regulations.
(d) Disclosure in enforcement pro-
ceedings—(1) In general. TSA or the § 1520.17 Consequences of unauthor-
Coast Guard may provide SSI to a per- ized disclosure of SSI.
son in the context of an administrative Violation of this part is grounds for a
enforcement proceeding when, in the civil penalty and other enforcement or
sole discretion of TSA or the Coast corrective action by DHS, and appro-
Guard, as appropriate, access to the priate personnel actions for Federal
SSI is necessary for the person to pre- employees. Corrective action may in-
pare a response to allegations con- clude issuance of an order requiring re-
tained in a legal enforcement action trieval of SSI to remedy unauthorized
document issued by TSA or the Coast disclosure or an order to cease future
Guard. unauthorized disclosure.
(2) Security background check. Prior to
providing SSI to a person under para- § 1520.19 Destruction of SSI.
graph (d)(1) of this section, TSA or the (a) DHS. Subject to the requirements
Coast Guard may require the indi- of the Federal Records Act (5 U.S.C.
vidual or, in the case of an entity, the 105), including the duty to preserve
individuals representing the entity, records containing documentation of a
and their counsel, to undergo and sat- Federal agency’s policies, decisions,
isfy, in the judgment of TSA or the and essential transactions, DHS de-
Coast Guard, a security background stroys SSI when no longer needed to
check. carry out the agency’s function.
(e) Other conditional disclosure. TSA (b) Other covered persons—(1) In gen-
may authorize a conditional disclosure eral. A covered person must destroy
of specific records or information that SSI completely to preclude recognition
constitute SSI upon the written deter- or reconstruction of the information
mination by TSA that disclosure of when the covered person no longer
such records or information, subject to needs the SSI to carry out transpor-
such limitations and restrictions as tation security measures.
TSA may prescribe, would not be detri- (2) Exception. Paragraph (b)(1) of this
mental to transportation security. section does not require a State or
(f) Obligation to protect information. local government agency to destroy in-
When an individual receives SSI pursu- formation that the agency is required
ant to paragraph (d) or (e) of this sec- to preserve under State or local law.
302
SUBCHAPTER C—CIVIL AVIATION SECURITY
PART 1540—CIVIL AVIATION authority over a function, the author-

SECURITY: GENERAL RULES ity is exercised by the Administrator
or the Deputy Administrator, or any
Subpart A—General individual formally designated to act
as the Administrator or the Deputy
Sec. Administrator.
1540.1 Applicability of this subchapter and (b) Where TSA or the designated offi-
this part. cial is named in this subchapter as ex-
1540.3 Delegation of authority.
1540.5 Terms used in this subchapter.
ercising authority over a function, the
authority is exercised by the official
Subpart B—Responsibilities of Passengers designated by the Administrator to
and Other Individuals and Persons perform that function.
1540.101 Applicability of this subpart. § 1540.5 Terms used in this sub-
1540.103 Fraud and intentional falsification chapter.
of records.
1540.105 Security responsibilities of employ-
In addition to the terms in part 1500
ees and other persons. of this chapter, the following terms are
1540.107 Submission to screening and inspec- used in this subchapter:
tion. Air operations area (AOA) means a
1540.109 Prohibition against interference portion of an airport, specified in the
with screening personnel. airport security program, in which se-
1540.111 Carriage of weapons, explosives, curity measures specified in this part
and incendiaries by individuals. are carried out. This area includes air-
1540.113 Inspection of airman certificate.
1540.115 Threat assessments regarding citi-
craft movement areas, aircraft parking
zens of the United States holding or ap- areas, loading ramps, and safety areas,
plying for FAA certificates, ratings, or for use by aircraft regulated under 49
authorizations. CFR part 1544 or 1546, and any adjacent
1540.117 Threat assessments regarding areas (such as general aviation areas)
aliens holding or applying for FAA cer- that are not separated by adequate se-
tificates, ratings, or authorizations. curity systems, measures, or proce-
dures. This area does not include the
Subpart C—Security Threat Assessments
secured area.
1540.201 Applicability and terms used in this Aircraft operator means a person who
subpart. uses, causes to be used, or authorizes
1540.203 Operator responsibilities. to be used an aircraft, with or without
1540.205 Procedures for security threat as- the right of legal control (as owner,
sessment.
lessee, or otherwise), for the purpose of
1540.207 [Reserved]
1540.209 Security threat assessment fee. air navigation including the piloting of
aircraft, or on any part of the surface
AUTHORITY: 49 U.S.C. 114, 5103, 40113, 44901– of an airport. In specific parts or sec-
44907, 44913–44914, 44916–44918, 44935–44936,
tions of this subchapter, ‘‘aircraft oper-
44942, 46105.
ator’’ is used to refer to specific types
SOURCE: 67 FR 8353, Feb. 22, 2002, unless of operators as described in those parts
otherwise noted. or sections.
Airport operator means a person that
Subpart A—General operates an airport serving an aircraft
operator or a foreign air carrier re-
§ 1540.1 Applicability of this sub- quired to have a security program
chapter and this part.
under part 1544 or 1546 of this chapter.
This subchapter and this part apply Airport security program means a secu-
to persons engaged in aviation-related rity program approved by TSA under
activities. § 1542.101 of this chapter.
Airport tenant means any person,
§ 1540.3 Delegation of authority. other than an aircraft operator or for-
(a) Where the Administrator is eign air carrier that has a security pro-
named in this subchapter as exercising gram under part 1544 or 1546 of this
303
chapter, that has an agreement with States not in possession of an FAA air
the airport operator to conduct busi- carrier operating certificate, that un-
ness on airport property. dertakes to engage indirectly in air
Airport tenant security program means transportation of property, and uses
the agreement between the airport op- for all or any part of such transpor-
erator and an airport tenant that tation the services of an air carrier.
specifies the measures by which the This does not include the United States
tenant will perform security functions, Postal Service (USPS) or its represent-
and approved by TSA, under § 1542.113 ative while acting on the behalf of the
of this chapter. USPS.
Approved, unless used with reference Loaded firearm means a firearm that
to another person, means approved by has a live round of ammunition, or any
TSA. component thereof, in the chamber or
Cargo means property tendered for cylinder or in a magazine inserted in
air transportation accounted for on an the firearm.
air waybill. All accompanied commer- Passenger seating configuration means
cial courier consignments, whether or the total maximum number of seats for
not accounted for on an air waybill, are which the aircraft is type certificated
also classified as cargo. Aircraft oper- that can be made available for pas-
ator security programs further define senger use aboard a flight, regardless of
the term ‘‘cargo.’’ the number of seats actually installed,
Checked baggage means property ten- and includes that seat in certain air-
dered by or on behalf of a passenger craft that may be used by a representa-
and accepted by an aircraft operator tive of the FAA to conduct flight
for transport, which is inaccessible to checks but is available for revenue pur-
passengers during flight. Accompanied poses on other occasions.
commercial courier consignments are
Private charter means any aircraft op-
not classified as checked baggage.
erator flight—
Escort means to accompany or mon-
itor the activities of an individual who (1) For which the charterer engages
does not have unescorted access au- the total passenger capacity of the air-
thority into or within a secured area or craft for the carriage of passengers; the
SIDA. passengers are invited by the
Exclusive area means any portion of a charterer; the cost of the flight is
secured area, AOA, or SIDA, including borne entirely by the charterer and not
individual access points, for which an directly or indirectly by any individual
aircraft operator or foreign air carrier passenger; and the flight is not adver-
that has a security program under part tised to the public, in any way, to so-
1544 or 1546 of this chapter has assumed licit passengers.
responsibility under § 1542.111 of this (2) For which the total passenger ca-
chapter. pacity of the aircraft is used for the
Exclusive area agreement means an purpose of civilian or military air
agreement between the airport oper- movement conducted under contract
ator and an aircraft operator or a for- with the Government of the United
eign air carrier that has a security pro- States or the government of a foreign
gram under parts 1544 or 1546 of this country.
chapter that permits such an aircraft Public charter means any charter
operator or foreign air carrier to as- flight that is not a private charter.
sume responsibility for specified secu- Scheduled passenger operation means
rity measures in accordance with an air transportation operation (a
§ 1542.111 of this chapter. flight) from identified air terminals at
FAA means the Federal Aviation Ad- a set time, which is held out to the
ministration. public and announced by timetable or
Flightcrew member means a pilot, schedule, published in a newspaper,
flight engineer, or flight navigator as- magazine, or other advertising me-
signed to duty in an aircraft during dium.
flight time. Screening function means the inspec-
Indirect air carrier (IAC) means any tion of individuals and property for
person or entity within the United weapons, explosives, and incendiaries.
304
Screening location means each site at § 1540.103 Fraud and intentional fal-
which individuals or property are in- sification of records.
spected for the presence of weapons, ex- No person may make, or cause to be
plosives, or incendiaries. made, any of the following:
Secured area means a portion of an (a) Any fraudulent or intentionally
airport, specified in the airport secu- false statement in any application for
rity program, in which certain security any security program, access medium,
measures specified in part 1542 of this or identification medium, or any
chapter are carried out. This area is amendment thereto, under this sub-
where aircraft operators and foreign
chapter.
air carriers that have a security pro-
(b) Any fraudulent or intentionally
gram under part 1544 or 1546 of this
false entry in any record or report that
chapter enplane and deplane passengers
is kept, made, or used to show compli-
and sort and load baggage and any ad-
ance with this subchapter, or exercise
jacent areas that are not separated by
adequate security measures. any privileges under this subchapter.
Security Identification Display Area (c) Any reproduction or alteration,
(SIDA) means a portion of an airport, for fraudulent purpose, of any report,
specified in the airport security pro- record, security program, access me-
gram, in which security measures spec- dium, or identification medium issued
ified in this part are carried out. This under this subchapter.
area includes the secured area and may § 1540.105 Security responsibilities of
include other areas of the airport. employees and other persons.
Sterile area means a portion of an air-
port defined in the airport security (a) No person may:
program that provides passengers ac- (1) Tamper or interfere with, com-
cess to boarding aircraft and to which promise, modify, attempt to cir-
the access generally is controlled by cumvent, or cause a person to tamper
TSA, or by an aircraft operator under or interfere with, compromise, modify,
part 1544 of this chapter or a foreign air or attempt to circumvent any security
carrier under part 1546 of this chapter, system, measure, or procedure imple-
through the screening of persons and mented under this subchapter.
property. (2) Enter, or be present within, a se-
Unescorted access authority means the cured area, AOA, SIDA or sterile area
authority granted by an airport oper- without complying with the systems,
ator, an aircraft operator, foreign air measures, or procedures being applied
carrier, or airport tenant under part to control access to, or presence or
1542, 1544, or 1546 of this chapter, to in- movement in, such areas.
dividuals to gain entry to, and be (3) Use, allow to be used, or cause to
present without an escort in, secured be used, any airport-issued or airport-
areas and SIDA’s of airports. approved access medium or identifica-
Unescorted access to cargo means the tion medium that authorizes the ac-
authority granted by an aircraft oper- cess, presence, or movement of persons
ator or IAC to individuals to have ac- or vehicles in secured areas, AOA’s, or
cess to air cargo without an escort. SIDA’s in any other manner than that
for which it was issued by the appro-
[67 FR 8353, Feb. 22, 2002, as amended at 67 priate authority under this subchapter.
FR 8209, Feb. 22, 2002; 71 FR 30507, May 26,
(b) The provisions of paragraph (a) of
2006]
this section do not apply to conducting
inspections or tests to determine com-
Subpart B—Responsibilities of Pas- pliance with this part or 49 U.S.C. Sub-
sengers and Other Individuals title VII authorized by:
and Persons (1) TSA, or
(2) The airport operator, aircraft op-
§ 1540.101 Applicability of this sub- erator, or foreign air carrier, when act-
part. ing in accordance with the procedures
This subpart applies to individuals described in a security program ap-

and other persons. proved by TSA.
305
§ 1540.107 Submission to screening (3) An individual authorized to carry

and inspection. a weapon in a sterile area under a secu-
No individual may enter a sterile rity program.
area or board an aircraft without sub- (c) In checked baggage. A passenger
mitting to the screening and inspection may not transport or offer for trans-
of his or her person and accessible port in checked baggage or in baggage
property in accordance with the proce- carried in an inaccessible cargo hold
dures being applied to control access to under § 1562.23 of this chapter:
that area or aircraft under this sub- (1) Any loaded firearm(s).
chapter. (2) Any unloaded firearm(s) unless—
(i) The passenger declares to the air-
[67 FR 41639, June 19, 2002] craft operator, either orally or in writ-
ing, before checking the baggage, that
§ 1540.109 Prohibition against inter- the passenger has a firearm in his or
ference with screening personnel.
her bag and that it is unloaded;
No person may interfere with, as- (ii) The firearm is unloaded;
sault, threaten, or intimidate screen- (iii) The firearm is carried in a hard-
ing personnel in the performance of sided container; and
their screening duties under this sub- (iv) The container in which it is car-
chapter. ried is locked, and only the passenger
retains the key or combination.
§ 1540.111 Carriage of weapons, explo- (3) Any unauthorized explosive or in-
sives, and incendiaries by individ-
uals. cendiary.
(d) Ammunition. This section does not
(a) On an individual’s person or acces- prohibit the carriage of ammunition in
sible property—prohibitions. Except as checked baggage or in the same con-
provided in paragraph (b) of this sec- tainer as a firearm. Title 49 CFR part
tion, an individual may not have a 175 provides additional requirements
weapon, explosive, or incendiary, on or governing carriage of ammunition on
about the individual’s person or acces- aircraft.
sible property—
(1) When performance has begun of
FR 41639, June 19, 2002; 70 FR 41600, July 19,
the inspection of the individual’s per- 2005; 71 FR 30507, May 26, 2006]
son or accessible property before enter-
ing a sterile area, or before boarding an § 1540.113 Inspection of airman certifi-
aircraft for which screening is con- cate.
ducted under this subchapter; Each individual who holds an airman
(2) When the individual is entering or certificate, medical certificate, author-
in a sterile area; or ization, or license issued by the FAA
(3) When the individual is attempting must present it for inspection upon a
to board or onboard an aircraft for request from TSA.
which screening is conducted under
§§ 1544.201, 1546.201, or 1562.23 of this § 1540.115 Threat assessments regard-
chapter. ing citizens of the United States
(b) On an individual’s person or acces- holding or applying for FAA certifi-
sible property—permitted carriage of a cates, ratings, or authorizations.
weapon. Paragraph (a) of this section (a) Applicability. This section applies
does not apply as to carriage of fire- when TSA has determined that an indi-
arms and other weapons if the individual who is a United States citizen
vidual is one of the following: and who holds, or is applying for, an
(1) Law enforcement personnel re- airman certificate, rating, or author-
quired to carry a firearm or other ization issued by the Administrator,
weapons while in the performance of poses a security threat.
law enforcement duty at the airport. (b) Definitions. The following terms
(2) An individual authorized to carry apply in this section:
a weapon in accordance with §§ 1544.219, Administrator means the Adminis-
1544.221, 1544.223, 1546.211, or subpart B trator of the Transportation Security

of part 1562 of this chapter. Administration.
306
Assistant Administrator means the As- for copies of the releasable materials
sistant Administrator for Intelligence upon which the Initial Notification was
for TSA. based.
Date of service means— (3) TSA response. Not later than 30
(1) The date of personal delivery in calendar days, or such longer period as
the case of personal service; TSA may determine for good cause,
(2) The mailing date shown on the after receiving the individual’s request
certificate of service; for copies of the releasable materials
(3) The date shown on the postmark upon which the Initial Notification was
if there is no certificate of service; or based, TSA serves a response. TSA will
(4) Another mailing date shown by not include in its response any classi-
other evidence if there is no certificate fied information or other information
of service or postmark.
described in paragraph (g) of this sec-
Deputy Administrator means the offi-
tion.
cer next in rank below the Adminis-
trator. (4) Reply. The individual may serve
FAA Administrator means the Admin- upon TSA a written reply to the Initial
istrator of the Federal Aviation Ad- Notification of Threat Assessment not
ministration. later than 15 calendar days after the
Individual means an individual whom date of service of the Initial Notifica-
TSA determines poses a security tion, or the date of service of TSA’s re-
threat. sponse to the individual’s request
(c) Security threat. An individual under paragraph (e)(2) if such a request
poses a security threat when the indi- was served. The reply may include any
vidual is suspected of posing, or is information that the individual be-
known to pose— lieves TSA should consider in review-
(1) A threat to transportation or na- ing the basis for the Initial Notifica-
tional security; tion.
(2) A threat of air piracy or ter- (5) TSA final determination. Not later
rorism; than 30 calendar days, or such longer
(3) A threat to airline or passenger period as TSA may determine for good
security; or cause, after TSA receives the individ-
(4) A threat to civil aviation secu- ual’s reply, TSA serves a final deter-
rity. mination in accordance with paragraph
(d) Representation by counsel. The in- (f) of this section.
dividual may, if he or she so chooses, (f) Final Notification of Threat Assess-
be represented by counsel at his or her ment—(1) In general. The Deputy Ad-
own expense. ministrator reviews the Initial Notifi-
(e) Initial Notification of Threat Assess-
cation, the materials upon which the
ment—(1) Issuance. If the Assistant Ad-
Initial Notification was based, the indi-
ministrator determines that an indi-
vidual’s reply, if any, and any other
vidual poses a security threat, the As-
sistant Administrator serves upon the materials or information available to
individual an Initial Notification of him.
Threat Assessment and serves the de- (2) Review and Issuance of Final Notifi-
termination upon the FAA Adminis- cation. If the Deputy Administrator de-
trator. The Initial Notification in- termines that the individual poses a se-
cludes— curity threat, the Administrator re-
(i) A statement that the Assistant views the Initial Notification, the ma-
Administrator personally has reviewed terials upon which the Initial Notifica-
the materials upon which the Initial tion was based, the individual’s reply,
Notification was based; and if any, and any other materials or in-
(ii) A statement that the Assistant formation available to him. If the Ad-
Administrator has determined that the ministrator determines that the indi-
individual poses a security threat. vidual poses a security threat, the Ad-
(2) Request for Materials. Not later ministrator serves upon the individual
than 15 calendar days after the date of a Final Notification of Threat Assess-
service of the Initial Notification, the ment and serves the determination
individual may serve a written request upon the FAA Administrator. The
307
Final Notification includes a state- Deputy Administrator means the offi-

ment that the Administrator person- cer next in rank below the Adminis-
ally has reviewed the Initial Notifica- trator.
tion, the individual’s reply, if any, and FAA Administrator means the Admin-
any other materials or information istrator of the Federal Aviation Ad-
available to him, and has determined ministration.
that the individual poses a security Individual means an individual whom
threat. TSA determines poses a security
(3) Withdrawal of Initial Notification. If threat.
the Deputy Administrator does not de- (c) Security threat. An individual
termine that the individual poses a se- poses a security threat when the indi-
curity threat, or upon review, the Ad- vidual is suspected of posing, or is
ministrator does not determine that known to pose—
the individual poses a security threat, (1) A threat to transportation or na-
TSA serves upon the individual a With- tional security;
drawal of the Initial Notification and (2) A threat of air piracy or ter-
provides a copy of the Withdrawal to rorism;
the FAA Administrator. (3) A threat to airline or passenger
(g) Nondisclosure of certain informa- security; or
tion. In connection with the procedures (4) A threat to civil aviation secu-
under this section, TSA does not dis- rity.
close to the individual classified infor-
(d) Representation by counsel. The in-
mation, as defined in Executive Order
dividual may, if he or she so chooses,
12968 section 1.1(d), and reserves the
be represented by counsel at his or her
right not to disclose any other infor-
own expense.
mation or material not warranting dis-
(e) Initial Notification of Threat Assess-
closure or protected from disclosure
ment—(1) Issuance. If the Assistant Ad-
under law.
ministrator determines that an indi-
[68 FR 3761, Jan. 24, 2003, as amended at 68 vidual poses a security threat, the As-
FR 49721, Aug. 19, 2003] sistant Administrator serves upon the
individual an Initial Notification of
§ 1540.117 Threat assessments regard- Threat Assessment and serves the de-
ing aliens holding or applying for termination upon the FAA Adminis-
FAA certificates, ratings, or author-
izations. trator. The Initial Notification in-
cludes—
(a) Applicability. This section applies (i) A statement that the Assistant
when TSA has determined that an indi- Administrator personally has reviewed
vidual who is not a citizen of the the materials upon which the Initial
United States and who holds, or is ap- Notification was based; and
plying for, an airman certificate, rat- (ii) A statement that the Assistant
ing, or authorization issued by the Administrator has determined that the
FAA Administrator, poses a security individual poses a security threat.
threat. (2) Request for materials. Not later
(b) Definitions. The following terms than 15 calendar days after the date of
apply in this section: service of the Initial Notification, the
Assistant Administrator means the As- individual may serve a written request
sistant Administrator for Intelligence for copies of the releasable materials
for TSA. upon which the Initial Notification was
Date of service means— based.
(1) The date of personal delivery in (3) TSA response. Not later than 30
the case of personal service; calendar days, or such longer period as
(2) The mailing date shown on the TSA may determine for good cause,
certificate of service; after receiving the individual’s request
(3) The date shown on the postmark for copies of the releasable materials
if there is no certificate of service; or upon which the Initial Notification was
(4) Another mailing date shown by based, TSA serves a response. TSA will
other evidence if there is no certificate not include in its response any classi-
of service or postmark. fied information or other information
308
described in paragraph (g) of this sec- formation or material not warranting

tion. disclosure or protected from disclosure
(4) Reply. The individual may serve under law.
upon TSA a written reply to the Initial
[68 FR 3768, Jan. 24, 2003]
Notification of Threat Assessment not
later than 15 calendar days after the
date of service of the Initial Notifica- Subpart C—Security Threat
tion, or the date of service of TSA’s re- Assessments
sponse to the individual’s request
under paragraph (e)(2) if such a request SOURCE: 72 FR 3592, Jan. 25, 2007, unless
was served. The reply may include any otherwise noted.
information that the individual be-
lieves TSA should consider in review- § 1540.201 Applicability and terms
ing the basis for the Initial Notifica- used in this subpart.
tion. (a) This subpart includes the proce-
(5) TSA final determination. Not later dures that certain aircraft operators,
than 30 calendar days, or such longer foreign air carriers, and indirect air
period as TSA may determine for good carriers must use to have security
cause, after TSA receives the individ- threat assessments done on certain in-
ual’s reply, TSA serves a final deter- dividuals pursuant to 49 CFR 1544.228,
mination in accordance with paragraph
1546.213, 1548.7, 1548.15, and 1548.16. This
(f) of this section.
subpart applies to the following:
(f) Final Notification of Threat Assess-
(1) Each aircraft operator operating
ment—(1) In general. The Deputy Ad-
ministrator reviews the Initial Notifi- under a full program or full all-cargo
cation, the materials upon which the program described in 49 CFR 1544.101(a)
Initial Notification was based, the indi- or (h).
vidual’s reply, if any, and any other (2) Each foreign air carrier operating
materials or information available to under a program described in 49 CFR
him. 1546.101(a), (b), or (e).
(2) Issuance of Final Notification. If the (3) Each indirect air carrier operating
Deputy Administrator determines that under a security program described in
the individual poses a security threat, 49 CFR part 1548.
the Deputy Administrator serves upon (4) Each applicant applying for
the individual a Final Notification of unescorted access to cargo under one of
Threat Assessment and serves the de- the programs described in (a)(1)
termination upon the FAA Adminis- through (a)(3) of this section.
trator. The Final Notification includes (5) Each proprietor, general partner,
a statement that the Deputy Adminis- officer, director, or owner of an indi-
trator personally has reviewed the Ini- rect air carrier as described in 49 CFR
tial Notification, the individual’s 1548.16.
reply, if any, and any other materials (b) For purposes of this subpart—
or information available to him, and Applicant means the individuals list-
has determined that the individual ed in paragraph (a)(4) and (a)(5) of this
poses a security threat. section.
(3) Withdrawal of Initial Notification. If Operator means an aircraft operator,
the Deputy Administrator does not de- foreign air carrier, and indirect air car-
termine that the individual poses a se- rier listed in paragraphs (a)(1) through
curity threat, TSA serves upon the in- (a)(3) of this section.
dividual a Withdrawal of the Initial (c) An applicant poses a security
Notification and provides a copy of the threat under this subpart when TSA
Withdrawal to the FAA Administrator. determines that he or she is known to
(g) Nondisclosure of certain informa- pose or suspected of posing a threat—
tion. In connection with the procedures (1) To national security;
under this section, TSA does not dis-
(2) To transportation security; or
close to the individual classified infor-
mation, as defined in Executive Order (3) Of terrorism.
12968 section 1.1(d), and TSA reserves [72 FR 3592, Jan. 25, 2007; 72 FR 14049, Mar. 26,
the right not to disclose any other in- 2007]
309
§ 1540.203 Operator responsibilities. to appropriate governmental agencies for

law enforcement or security purposes, or in
(a) Each operator subject to this sub- the interests of national security; and to for-
part must ensure that each applicant eign and international governmental au-
described in § 1540.201(a)(4) and (a)(5) thorities in accordance with law and inter-
completes the Security Threat Assess- national agreement. For further informa-
ment described in this section. tion, please consult DHS/TSA 002 Transpor-
(b) Each operator must: tation Security Threat Assessment System.
The information I have provided on this
(1) Authenticate the identity of the
application is true, complete, and correct to
applicant by— the best of my knowledge and belief and is
(i) Reviewing two forms of identifica- provided in good faith. I understand that a
tion, one of which must be a govern- knowing and willful false statement, or an
ment-issued picture identification; or omission of a material fact, on this applica-
(ii) Other means approved by TSA. tion can be punished by fine or imprison-
(2) Submit to TSA a Security Threat ment or both (see section 1001 of Title 18
Assessment application for each appli- United States Code), and may be grounds for
denial of authorization or in the case of par-
cant that is signed by the applicant
ties regulated under this section, removal of
and that includes: authorization to operate under this chapter,
(i) Legal name, including first, mid- if applicable.
dle, and last; any applicable suffix; and
any other names used previously. (3) Retain the applicant’s signed Se-
(ii) Current mailing address, includ- curity Threat Assessment application,
ing residential address if it differs from and any communications with TSA re-
the current mailing address, and all garding the applicant’s application, for
other residential addresses for the pre- 180 days following the end of the appli-
vious five years, and e-mail address, if cant’s service to the operator.
the applicant has an e-mail address. (c) Records under this section may
(iii) Date and place of birth. include electronic documents with
(iv) Social security number (submis- electronic signature or other means of
sion is voluntary, although failure to personal authentication, where accept-
provide it may delay or prevent com- ed by TSA.
pletion of the threat assessment). [72 FR 3592, Jan. 25, 2007; 72 FR 14050, Mar. 26,
(v) Gender. 2007]
(vi) Country of citizenship, and if
naturalized in the United States, date § 1540.205 Procedures for security
of naturalization and certificate num- threat assessment.
ber. (a) Contents of security threat assess-
(vii) Alien registration number, if ap- ment. The security threat assessment
plicable. TSA conducts includes an intelligence-
(viii) The following statement read- related check and a final disposition.
ing: (b) Intelligence-related check. To con-
Privacy Act Notice: Authority: The authority duct an intelligence-related check,
for collecting this information is 49 U.S.C. TSA completes the following proce-
114, 40113, and 49 U.S.C. 5103a. Purpose: This dures:
information is needed to verify your identity (1) Reviews the applicant information
and to conduct a Security Threat Assess- required in 49 CFR 1540.203(b);
ment to evaluate your suitability for com-
(2) Searches domestic and inter-
pleting the functions required by this posi-
tion. Failure to furnish your SSN may result national Government databases to de-
in delays in processing your application, but termine if an applicant meets the re-
will not prevent completion of your Security quirements of 49 CFR 1540.201(c) or to
Threat Assessment. Furnishing the other in- confirm an applicant’s identity; and
formation is also voluntary; however, failure (3) Adjudicates the results in accord-
to provide it may delay or prevent the com- ance with 49 CFR 1540.201(c).
pletion of your Security Threat Assessment, (c) Final disposition. Following com-
without which you may not be granted au- pletion of the procedures described in
thorization to have unescorted access to air
cargo subject to TSA security requirements.
paragraph (b), the following procedures
Routine Uses: Routine uses of this informa- apply, as appropriate:
tion include disclosure to TSA contractors (1) TSA serves a Determination of No
or other agents who are providing services Security Threat on the applicant and
relating to the Security Threat Assessments; the operator, if TSA determines that
310
Transportation Security Administration, DHS Pt. 1542
the applicant meets the security threat (2) Fees remitted to TSA under this
assessment standards in 49 CFR subpart must be payable to the ’’Trans-
1540.201(c). portation Security Administration’’ in
(2) TSA serves an Initial Determina- U.S. currency and drawn on a U.S.
tion of Threat Assessment on the appli- bank.
cant and the operator, if TSA deter- (3) TSA will not issue any fee re-
mines that the applicant does not meet funds, unless a fee was paid in error.
the security threat assessment stand-
ards in 49 CFR 1540.201(c). The Initial
Determination of Threat Assessment PART 1542—AIRPORT SECURITY
includes—
(i) A statement that TSA has deter- Subpart A—General
mined that the applicant poses a secu- Sec.
rity threat; 1542.1 Applicability of this part.
(ii) The basis for the determination; 1542.3 Airport security coordinator.
(iii) Information about how the appli- 1542.5 Inspection authority.
cant may appeal the determination, as
described in 49 CFR 1515.9; and Subpart B—Airport Security Program
(iv) A statement that if the applicant
chooses not to appeal TSA’s determina- 1542.101 General requirements.
tion within 60 days of receipt of the 1542.103 Content.
Initial Determination, or does not re- 1542.105 Approval and amendments.
quest an extension of time within 60 1542.103 Changed conditions affecting secu-
days of the Initial Determination of rity.
Threat Assessment in order to file an 1542.109 Alternate means of compliance.
appeal, the Initial Determination be- 1542.111 Exclusive area agreements.
comes a Final Determination of Secu- 1542.113 Airport tenant security programs.
rity Threat Assessment.
Subpart C—Operations
(3) If the applicant does not appeal
the Initial Determination of Threat As- 1542.201 Security of the secured area.
sessment, TSA serves a Final Deter- 1542.203 Security of the air operations area
mination of Threat Assessment on the (AOA).
operator and the applicant. 1542.205 Security of the security identifica-
(d) Withdrawal by TSA. TSA serves a tion display area (SIDA).
Withdrawal of the Initial Determina- 1542.207 Access control systems.
tion of Threat Assessment on the appli- 1542.209 Fingerprint-based criminal history
cant and a Determination of No Secu- records checks (CHRC).
rity Threat on the operator, if the ap- 1542.211 Identification systems.
peal results in a determination that 1542.213 Training.
the applicant does not pose a security 1542.215 Law enforcement support.
threat. 1542.217 Law enforcement personnel.
1542.219 Supplementing law enforcement
[72 FR 3588, Jan. 25, 2007; 72 FR 5633, Feb. 7, personnel.
2007; 72 FR 14050, Mar. 26, 2007] 1542.221 Records of law enforcement re-
sponse.
§ 1540.207 [Reserved]
§ 1540.209 Security threat assessment Subpart D—Contingency Measures
fee. 1542.301 Contingency plan.
(a) Imposition of fees. The fee of $28 is 1542.303 Security Directives and Informa-
required for TSA to conduct a security tion Circulars.
threat assessment for an applicant. 1542.305 Public advisories.
(b) Remittance of fees. (1) The fee re- 1542.307 Incident management.
quired under this subpart must be re- AUTHORITY: 49 U.S.C. 114, 5103, 40113, 44901–
mitted to TSA, in a form and manner 44905, 44907, 44913–44914, 44916–44917, 44935–
acceptable to TSA, each time the ap- 44936, 44942, 46105.
plicant or an aircraft operator, foreign
air carrier, or indirect air carrier sub- SOURCE: 67 FR 8355, Feb. 22, 2002, unless
otherwise noted.
mits the information required under

§ 1540.203 to TSA.
311
Subpart A—General gram, and applicable Security Direc-

tives.
§ 1542.1 Applicability of this part. (5) Review and control the results of
This part describes aviation security employment history, verification, and
rules governing: criminal history records checks re-
(a) The operation of airports regu- quired under § 1542.209.
larly serving aircraft operations re- (6) Serve as the contact to receive no-
quired to be under a security program tification from individuals applying for
under part 1544 of this chapter, as de- unescorted access of their intent to
scribed in this part. seek correction of their criminal his-
(b) The operation of airport regularly tory record with the FBI.
serving foreign air carrier operations (c) After July 17, 2003, no airport op-
required to be under a security pro- erator may use, nor may it designate
gram under part 1546 of this chapter, as any person as, an ASC unless that indi-
described in this part. vidual has completed subject matter
(c) Each airport operator that re- training, as specified in its security
ceives a Security Directive or Informa- program, to prepare the individual to
tion Circular and each person who re- assume the duties of the position. The
ceives information from a Security Di- airport operator must maintain ASC
rective or Information Circular issued training documentation until at least
by the Designated official for Civil 180 days after the withdrawal of an in-
Aviation Security. dividual’s designation as an ASC.
(d) Each airport operator that does (d) An individual’s satisfactory com-
not have a security program under this pletion of initial ASC training required
part that serves an aircraft operator under paragraph (c) of this section sat-
operating under a security program isfies that requirement for all future
under part 1544 of this chapter, or a for- ASC designations for that individual,
eign air carrier operating under a secu- except for site specific information, un-
rity program under part 1546 of this less there has been a two or more year
chapter. Such airport operators must break in service as an active and des-
comply with § 1542.5(e). ignated ASC.
[67 FR 8355, Feb. 22, 2002, as amended at 71 § 1542.5 Inspection authority.
FR 30509, May 26, 2006]
(a) Each airport operator must allow
§ 1542.3 Airport security coordinator. TSA, at any time or place, to make
(a) Each airport operator must des- any inspections or tests, including
ignate one or more Airport Security copying records, to determine compli-
Coordinator(s) (ASC) in its security ance of an airport operator, aircraft op-
program. erator, foreign air carrier, indirect air
(b) The airport operator must ensure carrier, or other airport tenants with—
that one or more ASCs: (1) This subchapter and any security
(1) Serve as the airport operator’s program under this subchapter, and
primary and immediate contact for se- part 1520 of this chapter; and
curity-related activities and commu- (2) 49 U.S.C. Subtitle VII, as amend-
nications with TSA. Any individual ed.
designated as an ASC may perform (b) At the request of TSA, each air-
other duties in addition to those de- port operator must provide evidence of
scribed in this paragraph (b). compliance with this part and its air-
(2) Is available to TSA on a 24-hour port security program, including copies
basis. of records.
(3) Review with sufficient frequency (c) TSA may enter and be present
all security-related functions to ensure within secured areas, AOA’s, and
that all are effective and in compliance SIDA’s without access media or identi-
with this part, its security program, fication media issued or approved by an
and applicable Security Directives. airport operator or aircraft operator,
(4) Immediately initiate corrective in order to inspect or test compliance,
action for any instance of non-compli- or perform other such duties as TSA
ance with this part, its security pro- may direct.
312
(d) At the request of TSA and upon (2) Refer all requests for SSI by other
the completion of SIDA training as re- persons to TSA.
quired in a security program, each air-
port operator promptly must issue to FR 30509, May 26, 2006]
TSA personnel access and identifica-
tion media to provide TSA personnel § 1542.103 Content.
with unescorted access to, and move-
(a) Complete program. Except as other-
ment within, secured areas, AOA’s, and
wise approved by TSA, each airport op-
SIDA’s.
erator regularly serving operations of
(e) TSA may enter and be present at
an aircraft operator or foreign air car-
an airport that does not have a secu-
rier described in § 1544.101(a)(1) or
rity program under this part, without
§ 1546.101(a) of this chapter, must in-
access media or identification media
clude in its security program the fol-
issued or approved by an airport oper-
lowing:
ator or aircraft operator, to inspect an
aircraft operator operating under a se- (1) The name, means of contact, du-
curity program under part 1544 of this ties, and training requirements of the
chapter, or a foreign air carrier oper- ASC required under § 1542.3.
ating under a security program under (2) [Reserved]
part 1546 of this chapter. (3) A description of the secured areas,
including—
[67 FR 8355, Feb. 22, 2002, as amended at 71 (i) A description and map detailing
FR 30509, May 26, 2006] boundaries and pertinent features;
(ii) Each activity or entity on, or ad-
Subpart B—Airport Security jacent to, a secured area that affects
Program security;
(iii) Measures used to perform the ac-
§ 1542.101 General requirements. cess control functions required under
(a) No person may operate an airport § 1542.201(b)(1);
subject to § 1542.103 unless it adopts and (iv) Procedures to control movement
carries out a security program that— within the secured area, including
(1) Provides for the safety and secu- identification media required under
rity of persons and property on an air- § 1542.201(b)(3); and
craft operating in air transportation or (v) A description of the notification
intrastate air transportation against signs required under § 1542.201(b)(6).
an act of criminal violence, aircraft pi- (4) A description of the AOA, includ-
racy, and the introduction of an unau- ing—
thorized weapon, explosive, or incen- (i) A description and map detailing
diary onto an aircraft; boundaries, and pertinent features;
(2) Is in writing and is signed by the (ii) Each activity or entity on, or ad-
airport operator; jacent to, an AOA that affects security;
(3) Includes the applicable items list- (iii) Measures used to perform the ac-
ed in § 1542.103; cess control functions required under
(4) Includes an index organized in the § 1542.203(b)(1);
same subject area sequence as (iv) Measures to control movement
§ 1542.103; and within the AOA, including identifica-
(5) Has been approved by TSA. tion media as appropriate; and
(b) Each airport operator subject to (v) A description of the notification
§ 1542.103 must maintain one current signs required under § 1542.203(b)(4).
and complete copy of its security pro- (5) A description of the SIDA’s, in-
gram and provide a copy to TSA upon cluding—
request. (i) A description and map detailing
(c) Each airport operator subject to boundaries and pertinent features; and
§ 1542.103 must— (ii) Each activity or entity on, or ad-
(1) Restrict the distribution, disclo- jacent to, a SIDA.
sure, and availability of sensitive secu- (6) A description of the sterile areas,
rity information (SSI), as defined in including—
part 1520 of this chapter, to persons (i) A diagram with dimensions detail-
with a need to know; and ing boundaries and pertinent features;
313
(ii) Access controls to be used when (1) Name, means of contact, duties,
the passenger-screening checkpoint is and training requirements of the ASC,
non-operational and the entity respon- as required under § 1542.3.
sible for that access control; and (2) A description of the law enforce-
(iii) Measures used to control access ment support used to comply with
as specified in § 1542.207. § 1542.215(a).
(7) Procedures used to comply with (3) Training program for law enforce-
§ 1542.209 regarding fingerprint-based ment personnel required under
criminal history records checks. § 1542.217(c)(2), if applicable.
(8) A description of the personnel (4) A system for maintaining the
identification systems as described in records described in § 1542.221.
§ 1542.211. (5) The contingency plan required
(9) Escort procedures in accordance under § 1542.301.
with § 1542.211(e). (6) Procedures for the distribution,
(10) Challenge procedures in accord- storage, and disposal of security pro-
ance with § 1542.211(d). grams, Security Directives, Informa-
(11) Training programs required tion Circulars, implementing instruc-
under §§ 1542.213 and 1542.217(c)(2), if ap- tions, and, as appropriate, classified in-
plicable. formation.
(12) A description of law enforcement (7) Procedures for public advisories as
support used to comply with specified in § 1542.305.
§ 1542.215(a).
(8) Incident management procedures
(13) A system for maintaining the
used to comply with § 1542.307.
records described in § 1542.221.
(c) Partial program. Except as other-
(14) The procedures and a description
wise approved by TSA, each airport
of facilities and equipment used to sup-
regularly serving operations of an air-
port TSA inspection of individuals and
craft operator or foreign air carrier de-
property, and aircraft operator or for-
scribed in § 1544.101(b) or § 1546.101(d) of
eign air carrier screening functions of
this chapter, must include in its secu-
parts 1544 and 1546 of this chapter.
rity program a description of the fol-
(15) A contingency plan required
lowing:
under § 1542.301.
(16) Procedures for the distribution, (1) Name, means of contact, duties,
storage, and disposal of security pro- and training requirements of the ASC
grams, Security Directives, Informa- as required under § 1542.3.
tion Circulars, implementing instruc- (2) A description of the law enforce-
tions, and, as appropriate, classified in- ment support used to comply with
formation. § 1542.215(b).
(17) Procedures for posting of public (3) Training program for law enforce-
advisories as specified in § 1542.305. ment personnel required under
(18) Incident management procedures § 1542.217(c)(2), if applicable.
used to comply with § 1542.307. (4) A system for maintaining the
(19) Alternate security procedures, if records described in § 1542.221.
any, that the airport operator intends (5) Procedures for the distribution,
to use in the event of natural disasters, storage, and disposal of security pro-
and other emergency or unusual condi- grams, Security Directives, Informa-
tions. tion Circulars, implementing instruc-
(20) Each exclusive area agreement as tions, and, as appropriate, classified in-
specified in § 1542.111. formation.
(21) Each airport tenant security pro- (6) Procedures for public advisories as
gram as specified in § 1542.113. specified in § 1542.305.
(b) Supporting program. Except as oth- (7) Incident management procedures
erwise approved by TSA, each airport used to comply with § 1542.307.
regularly serving operations of an air- (d) Use of appendices. The airport op-
craft operator or foreign air carrier de- erator may comply with paragraphs
scribed in § 1544.101(a)(2) or (f), or (a), (b), and (c) of this section by in-
§ 1546.101(b) or (c) of this chapter, must cluding in its security program, as an
include in its security program a de- appendix, any document that contains
scription of the following: the information required by paragraphs
314
(a), (b), and (c) of this section. The ap- official, in writing, either approves or
pendix must be referenced in the cor- denies the request to amend.
responding section(s) of the security (3) An amendment to a security pro-
program. gram may be approved if the des-
ignated official determines that safety
§ 1542.105 Approval and amendments. and the public interest will allow it,
(a) Initial approval of security program. and the proposed amendment provides
Unless otherwise authorized by the des- the level of security required under
ignated official, each airport operator this part.
required to have a security program (4) Within 30 days after receiving a
under this part must submit its initial denial, the airport operator may peti-
proposed security program to the des- tion the Administrator to reconsider
ignated official for approval at least 90 the denial.
days before the date any aircraft oper- (5) Upon receipt of a petition for re-
ator or foreign air carrier required to consideration, the designated official
have a security program under part either approves the request to amend
1544 or part 1546 of this chapter is ex- or transmits the petition within 30
pected to begin operations. Such re- days of receipt, together with any per-
quests will be processed as follows: tinent information, to the Adminis-
(1) The designated official, within 30 trator for reconsideration. The Admin-
days after receiving the proposed secu- istrator disposes of the petition within
rity program, will either approve the 30 days of receipt by either directing
program or give the airport operator the designated official to approve the
written notice to modify the program amendment or affirming the denial.
to comply with the applicable require-
(c) Amendment by TSA. If safety and
ments of this part.
the public interest require an amend-
(2) The airport operator may either
ment, the designated official may
submit a modified security program to
the designated official for approval, or amend a security program as follows:
petition the Administrator to recon- (1) The designated official sends to
sider the notice to modify within 30 the airport operator a notice, in writ-
days of receiving a notice to modify. A ing, of the proposed amendment, fixing
petition for reconsideration must be a period of not less than 30 days within
filed with the designated official. which the airport operator may submit
(3) The designated official, upon re- written information, views, and argu-
ceipt of a petition for reconsideration, ments on the amendment.
either amends or withdraws the notice, (2) After considering all relevant ma-
or transmits the petition, together terial, the designated official notifies
with any pertinent information, to the the airport operator of any amendment
Administrator for reconsideration. The adopted or rescinds the notice. If the
Administrator disposes of the petition amendment is adopted, it becomes ef-
within 30 days of receipt by either di- fective not less than 30 days after the
recting the designated official to with- airport operator receives the notice of
draw or amend the notice to modify, or amendment, unless the airport oper-
by affirming the notice to modify. ator petitions the Administrator to re-
(b) Amendment requested by an airport consider no later than 15 days before
operator. Except as provided in the effective date of the amendment.
§ 1542.103(c), an airport operator may The airport operator must send the pe-
submit a request to the designated offi- tition for reconsideration to the des-
cial to amend its security program, as ignated official. A timely petition for
follows: reconsideration stays the effective date
(1) The request for an amendment of the amendment.
must be filed with the designated offi- (3) Upon receipt of a petition for re-
cial at least 45 days before the date it consideration, the designated official
proposes for the amendment to become either amends or withdraws the notice,
effective, unless a shorter period is al- or transmits the petition, together
lowed by the designated official. with any pertinent information to the
(2) Within 30 days after receiving a Administrator for reconsideration. The

proposed amendment, the designated Administrator disposes of the petition
315
within 30 days of receipt by either di- approved. Each interim measure must
recting the designated official to with- be acceptable to TSA.
draw or amend the amendment, or by (c) For changed conditions expected
affirming the amendment. to be less than 60 days duration, each
(d) Emergency amendments. Notwith- airport operator must forward the in-
standing paragraph (c) of this section, formation required in paragraph (b) of
if the designated official finds that this section in writing to TSA within
there is an emergency requiring imme- 72 hours of the original notification of
diate action with respect to safety and the change condition(s). TSA will no-
security in air transportation or in air tify the airport operator of the disposi-
commerce that makes procedures in
tion of the notification in writing. If
this section contrary to the public in-
approved by TSA, this written notifica-
terest, the designated official may
issue an amendment, effective without tion becomes a part of the airport secu-
stay on the date the airport operator rity program for the duration of the
receives the notice of it. In such a case, changed condition(s).
the designated official must incor- (d) For changed conditions expected
porate in the notice a brief statement to be 60 days or more duration, each
of the reasons and findings for the airport operator must forward the in-
amendment to be adopted. The airport formation required in paragraph (b) of
operator may file a petition for recon- this section in the form of a proposed
sideration under paragraph (c) of this amendment to the airport operator’s
section; however, this does not stay the security program, as required under
effective date of the emergency amend- § 1542.105. The request for an amend-
ment. ment must be made within 30 days of
the discovery of the changed condi-
§ 1542.107 Changed conditions affect- tion(s). TSA will respond to the request
ing security.
in accordance with § 1542.105.
(a) After approval of the security pro-
gram, each airport operator must no- § 1542.109 Alternate means of compli-
tify TSA when changes have occurred ance.
to the—
If in TSA’s judgment, the overall
(1) Measures, training, area descrip-
safety and security of the airport, and
tions, or staffing, described in the secu-
rity program; aircraft operator or foreign air carrier
(2) Operations of an aircraft operator operations are not diminished, TSA
or foreign air carrier that would re- may approve a security program that
quire modifications to the security pro- provides for the use of alternate meas-
gram as required under § 1542.103; or ures. Such a program may be consid-
(3) Layout or physical structure of ered only for an operator of an airport
any area under the control of the air- at which service by aircraft operators
port operator, airport tenant, aircraft or foreign air carriers under part 1544
operator, or foreign air carrier used to or 1546 of this chapter is determined by
support the screening process, access, TSA to be seasonal or infrequent.
presence, or movement control func-
tions required under part 1542, 1544, or § 1542.111 Exclusive area agreements.
1546 of this chapter. (a) TSA may approve an amendment
(b) Each airport operator must notify to an airport security program under
TSA no more than 6 hours after the which an aircraft operator or foreign
discovery of any changed condition de- air carrier that has a security program
scribed in paragraph (a) of this section, under part 1544 or 1546 of this chapter
or within the time specified in its secu-
assumes responsibility for specified se-
rity program, of the discovery of any
curity measures for all or portions of
changed condition described in para-
the secured area, AOA, or SIDA, in-
graph (a) of this section. The airport
operator must inform TSA of each including access points, as provided in
terim measure being taken to maintain
adequate security until an appropriate

amendment to the security program is
316
§ 1542.201, § 1542.203, or § 1542.205. The as- (5) TSA must find that the tenant is
sumption of responsibility must be ex- able and willing to carry out the air-
clusive to one aircraft operator or for- port tenant security program.
eign air carrier, and shared responsi- (b) An airport tenant security pro-
bility among aircraft operators or for- gram must be in writing, signed by the
eign air carriers is not permitted for an airport operator and the airport ten-
exclusive area. ant, and maintained in the airport se-
(b) An exclusive area agreement must curity program. The airport tenant se-
be in writing, signed by the airport op- curity program must include the fol-
erator and aircraft operator or foreign lowing:
air carrier, and maintained in the air- (1) A description and a map of the
port security program. This agreement boundaries and pertinent features of
must contain the following: each area over which the airport ten-
(1) A description, a map, and, where ant will exercise security responsibil-
appropriate, a diagram of the bound- ities.
aries and pertinent features of each (2) A description of the measures the
area, including individual access airport tenant has assumed.
points, over which the aircraft oper- (3) Measures by which the airport op-
ator or foreign air carrier will exercise erator will monitor and audit the ten-
exclusive security responsibility. ant’s compliance with the security pro-
(2) A description of the measures gram.
used by the aircraft operator or foreign (4) Monetary and other penalties to
air carrier to comply with § 1542.201, which the tenant may be subject if it
§ 1542.203, or § 1542.205, as appropriate. fails to carry out the airport tenant se-
(3) Procedures by which the aircraft curity program.
operator or foreign air carrier will im- (5) Circumstances under which the
mediately notify the airport operator airport operator will terminate the air-
and provide for alternative security port tenant security program for cause.
measures when there are changed con- (6) A provision acknowledging that
ditions as described in § 1542.103(a). the tenant is subject to inspection by
TSA in accordance with § 1542.5.
(c) Any exclusive area agreements in
(7) A provision acknowledging that
effect on November 14, 2001, must meet
individuals who carry out the tenant
the requirements of this section and
security program are contracted to or
§ 1544.227 no later than November 14,
acting for the airport operator and are
2002.
required to protect sensitive informa-
§ 1542.113 Airport tenant security pro- tion in accordance with part 1520 of
grams. this chapter, and may be subject to
civil penalties for failing to protect
(a) TSA may approve an airport ten- sensitive security information.
ant security program as follows: (8) Procedures by which the tenant
(1) The tenant must assume responsi- will immediately notify the airport op-
bility for specified security measures erator of and provide for alternative se-
of the secured area, AOA, or SIDA as curity measures for changed conditions
provided in §§ 1542.201, 1542.203, and as described in § 1542.103(a).
1542.205. (c) If TSA has approved an airport
(2) The tenant may not assume re- tenant security program, the airport
sponsibility for law enforcement sup- operator may not be found to be in vio-
port under § 1542.215. lation of a requirement of this part in
(3) The tenant must assume the re- any case in which the airport operator
sponsibility within the tenant’s leased demonstrates that:
areas or areas designated for the ten- (1) The tenant or an employee, per-
ant’s exclusive use. A tenant may not mittee, or invitee of the tenant, is re-
assume responsibility under a tenant sponsible for such violation; and
security program for the airport pas- (2) The airport operator has complied
senger terminal. with all measures in its security pro-
(4) Responsibility must be exclusive gram to ensure the tenant has com-
to one tenant, and shared responsi- plied with the airport tenant security
bility among tenants is not permitted. program.
317
(d) TSA may amend or terminate an ground vehicles into or within the AOA
airport tenant security program in ac- by doing the following:
cordance with § 1542.105. (1) Establish and carry out measures
for controlling entry to the AOA of the
Subpart C—Operations airport in accordance with § 1542.207.
(2) Provide for detection of, and re-
§ 1542.201 Security of the secured sponse to, each unauthorized presence
area. or movement in, or attempted entry to,
(a) Each airport operator required to the AOA by an individual whose access
have a security program under is not authorized in accordance with
§ 1542.103(a) must establish at least one its security program.
secured area. (3) Provide security information as
described in § 1542.213(c) to each indi-
(b) Each airport operator required to
vidual with unescorted access to the
establish a secured area must prevent
AOA.
and detect the unauthorized entry,
(4) Post signs on AOA access points
presence, and movement of individuals
and perimeters that provide warning of
and ground vehicles into and within
the prohibition against unauthorized
the secured area by doing the fol-
entry to the AOA. Signs must be posted
lowing:
by each airport operator in accordance
(1) Establish and carry out measures with its security program not later
for controlling entry to secured areas than November 14, 2003.
of the airport in accordance with (5) If approved by TSA, the airport
§ 1542.207. operator may designate all or portions
(2) Provide for detection of, and re- of its AOA as a SIDA, or may use an-
sponse to, each unauthorized presence other personnel identification system,
or movement in, or attempted entry to, as part of its means of meeting the re-
the secured area by an individual quirements of this section. If it uses
whose access is not authorized in ac- another personnel identification sys-
cordance with its security program. tem, the media must be clearly distin-
(3) Establish and carry out a per- guishable from those used in the se-
sonnel identification system described cured area and SIDA.
under § 1542.211.
(4) Subject each individual to em- § 1542.205 Security of the security
ployment history verification as de- identification display area (SIDA).
scribed in § 1542.209 before authorizing (a) Each airport operator required to
unescorted access to a secured area. have a complete program under
(5) Train each individual before § 1542.103(a) must establish at least one
granting unescorted access to the se- SIDA, as follows:
cured area, as required in § 1542.213(b). (1) Each secured area must be a
(6) Post signs at secured area access SIDA.
points and on the perimeter that pro- (2) Each part of the air operations
vide warning of the prohibition against area that is regularly used to load
unauthorized entry. Signs must be cargo on, or unload cargo from, an air-
posted by each airport operator in ac- craft that is operated under a full pro-
cordance with its security program not gram or a full all-cargo program as
later than November 14, 2003. provided in § 1544.101(a) or (h) of this
chapter, or a foreign air carrier under a
§ 1542.203 Security of the air oper- security program as provided in
ations area (AOA). § 1546.101(a), (b), or (e), must be a SIDA.
(a) Each airport operator required to (3) Each area on an airport where
have a security program under cargo is present after an aircraft oper-
§ 1542.103(a) must establish an AOA, un- ator operating under a full program or
less the entire area is designated as a a full all-cargo program under
secured area. § 1544.101(a) or (h) of this chapter, or a
(b) Each airport operator required to foreign air carrier operating under a
establish an AOA must prevent and de- security program under § 1546.101(a),
tect the unauthorized entry, presence, (b), or (e) of this chapter, or an indirect
and movement of individuals and air carrier, accepts it must be a SIDA.
318
This includes areas such as: Cargo fa- (c) Air operations area. The measures
cilities; loading and unloading vehicle for controlling entry to the AOA re-
docks; and areas where an aircraft op- quired under § 1542.203(b)(1) must incor-
erator, foreign air carrier, or indirect porate accountability procedures to
air carrier sorts, stores, stages, con- maintain their integrity.
solidates, processes, screens, or trans- (d) Secondary access media. An airport
fers cargo. operator may issue a second access me-
(4) Other areas of the airport may be dium to an individual who has
SIDAs. unescorted access to secured areas or
(b) Each airport operator required to the AOA, but is temporarily not in pos-
establish a SIDA must establish and session of the original access medium,
carry out measures to prevent the un- if the airport operator follows meas-
authorized presence and movement of ures and procedures in the security
individuals in the SIDA and must do program that—
the following: (1) Verifies the authorization of the
(1) Establish and carry out a per- individual to have unescorted access to
sonnel identification system described secured areas or AOAs;
under § 1542.211. (2) Restricts the time period of entry
(2) Subject each individual to a with the second access medium;
criminal history records check as de- (3) Retrieves the second access me-
scribed in § 1542.209 before authorizing dium when expired;
unescorted access to the SIDA. (4) Deactivates or invalidates the
(3) Train each individual before original access medium until the indi-
granting unescorted access to the vidual returns the second access me-
SIDA, as required in § 1542.213(b). dium; and
(c) An airport operator that is not re- (5) Provides that any second access
quired to have a complete program media that is also used as identifica-
under § 1542.103(a) is not required to es- tion media meet the criteria of
tablish a SIDA under this section. § 1542.211(b).
FR 30509, May 26, 2006] § 1542.209 Fingerprint-based criminal
history records checks (CHRC).
§ 1542.207 Access control systems. (a) Scope. The following persons are
(a) Secured area. Except as provided within the scope of this section—
in paragraph (b) of this section, the (1) Each airport operator and airport
measures for controlling entry to the user.
secured area required under (2) Each individual currently having
§ 1542.201(b)(1) must— unescorted access to a SIDA, and each
(1) Ensure that only those individuals individual with authority to authorize
authorized to have unescorted access others to have unescorted access to a
to the secured area are able to gain SIDA (referred to as unescorted access
entry; authority).
(2) Ensure that an individual is im- (3) Each individual seeking
mediately denied entry to a secured unescorted access authority.
area when that person’s access author- (4) Each airport user and aircraft op-
ity for that area is withdrawn; and erator making a certification to an air-
(3) Provide a means to differentiate port operator pursuant to paragraph
between individuals authorized to have (n) of this section, or 14 CFR 108.31(n)
access to an entire secured area and in- in effect prior to November 14, 2001 (see
dividuals authorized access to only a 14 CFR Parts 60 to 139 revised as of
particular portion of a secured area. January 1, 2001). An airport user, for
(b) Alternative systems. TSA may ap- the purposes of this section only, is
prove an amendment to a security pro- any person other than an aircraft oper-
gram that provides alternative meas- ator subject to § 1544.229 of this chapter
ures that provide an overall level of se- making a certification under this sec-
curity equal to that which would be tion.
provided by the measures described in (b) Individuals seeking unescorted ac-

paragraph (a) of this section. cess authority. Except as provided in
319
paragraph (m) of this section, each air- (11) Unlawful entry into an aircraft
port operator must ensure that no indi- or airport area that serves air carriers
vidual is granted unescorted access au- or foreign air carriers contrary to es-
thority unless the individual has un- tablished security requirements; 49
dergone a fingerprint-based CHRC that U.S.C. 46314.
does not disclose that he or she has a (12) Destruction of an aircraft or air-
disqualifying criminal offense, as de- craft facility; 18 U.S.C. 32.
scribed in paragraph (d) of this section. (13) Murder.
(c) Individuals who have not had a (14) Assault with intent to murder.
CHRC. (1) Except as provided in para- (15) Espionage.
graph (m) of this section, each airport (16) Sedition.
operator must ensure that after De- (17) Kidnapping or hostage taking.
cember 6, 2002, no individual retains (18) Treason.
unescorted access authority, unless the (19) Rape or aggravated sexual abuse.
airport operator has obtained and sub- (20) Unlawful possession, use, sale,
mitted a fingerprint under this part. distribution, or manufacture of an ex-
(2) When a CHRC discloses a disquali- plosive or weapon.
fying criminal offense for which the (21) Extortion.
conviction or finding of not guilty by (22) Armed or felony unarmed rob-
reason of insanity was on or after De- bery.
cember 6, 1991, the airport operator (23) Distribution of, or intent to dis-
must immediately suspend that indi- tribute, a controlled substance.
vidual’s authority. (24) Felony arson.
(d) Disqualifying criminal offenses. An (25) Felony involving a threat.
individual has a disqualifying criminal (26) Felony involving—
offense if the individual has been con- (i) Willful destruction of property;
victed, or found not guilty of by reason (ii) Importation or manufacture of a
of insanity, of any of the disqualifying controlled substance;
crimes listed in this paragraph (d) in (iii) Burglary;
any jurisdiction during the 10 years be- (iv) Theft;
fore the date of the individual’s appli- (v) Dishonesty, fraud, or misrepresen-
cation for unescorted access authority, tation;
or while the individual has unescorted (vi) Possession or distribution of sto-
access authority. The disqualifying len property;
criminal offenses are as follows— (vii) Aggravated assault;
(1) Forgery of certificates, false (viii) Bribery; or
marking of aircraft, and other aircraft (ix) Illegal possession of a controlled
registration violation; 49 U.S.C. 46306. substance punishable by a maximum
(2) Interference with air navigation; term of imprisonment of more than 1
49 U.S.C. 46308. year.
(3) Improper transportation of a haz- (27) Violence at international air-
ardous material; 49 U.S.C. 46312. ports; 18 U.S.C. 37.
(4) Aircraft piracy; 49 U.S.C. 46502. (28) Conspiracy or attempt to commit
(5) Interference with flight crew any of the criminal acts listed in this
members or flight attendants; 49 U.S.C. paragraph (d).
46504. (e) Fingerprint application and proc-
(6) Commission of certain crimes essing. (1) At the time of fingerprinting,
aboard aircraft in flight; 49 U.S.C. the airport operator must provide the
46506. individual to be fingerprinted a finger-
(7) Carrying a weapon or explosive print application that includes only
aboard aircraft; 49 U.S.C. 46505. the following—
(8) Conveying false information and (i) The disqualifying criminal of-
threats; 49 U.S.C. 46507. fenses described in paragraph (d) of this
(9) Aircraft piracy outside the special section.
aircraft jurisdiction of the United (ii) A statement that the individual
States; 49 U.S.C. 46502(b). signing the application does not have a
(10) Lighting violations involving disqualifying criminal offense.
transporting controlled substances; 49 (iii) A statement informing the indi-

U.S.C. 46315. vidual that Federal regulations under
320
49 CFR 1542.209 (l) impose a continuing (f) Fingerprinting fees. Airport opera-
obligation to disclose to the airport op- tors must pay for all fingerprints in a
erator within 24 hours if he or she is form and manner approved by TSA.
convicted of any disqualifying criminal The payment must be made at the des-
offense that occurs while he or she has ignated rate (available from the local
unescorted access authority. After Feb- TSA security office) for each set of fin-
ruary 17, 2002, the airport operator may gerprints submitted. Information about
use statements that have already been payment options is available though
printed referring to 14 CFR 107.209 until the designated TSA headquarters point
stocks of such statements are used up. of contact. Individual personal checks
(iv) A statement reading, ‘‘The infor- are not acceptable.
mation I have provided on this applica- (g) Determination of arrest status. (1)
tion is true, complete, and correct to When a CHRC on an individual seeking
the best of my knowledge and belief unescorted access authority discloses
and is provided in good faith. I under- an arrest for any disqualifying crimi-
stand that a knowing and willful false nal offense listed in paragraph (d) of
statement on this application can be this section without indicating a dis-
punished by fine or imprisonment or position, the airport operator must de-
both. (See section 1001 of Title 18 termine, after investigation, that the
United States Code.)’’ arrest did not result in a disqualifying
(v) A line for the printed name of the offense before granting that authority.
individual. If there is no disposition, or if the dis-
(vi) A line for the individual’s signa- position did not result in a conviction
ture and date of signature. or in a finding of not guilty by reason
(2) Each individual must complete of insanity of one of the offenses listed
and sign the application prior to sub- in paragraph (d) of this section, the in-
mitting his or her fingerprints. dividual is not disqualified under this
section.
(3) The airport operator must verify
(2) When a CHRC on an individual
the identity of the individual through
with unescorted access authority dis-
two forms of identification prior to
closes an arrest for any disqualifying
fingerprinting, and ensure that the
criminal offense without indicating a
printed name on the fingerprint appli-
disposition, the airport operator must
cation is legible. At least one of the
suspend the individual’s unescorted ac-
two forms of identification must have
cess authority not later than 45 days
been issued by a government authority,
after obtaining the CHRC unless the
and at least one must include a photo.
airport operator determines, after in-
(4) The airport operator must advise
vestigation, that the arrest did not re-
the individual that:
sult in a disqualifying criminal offense.
(i) A copy of the criminal record re- If there is no disposition, or if the dis-
ceived from the FBI will be provided to position did not result in a conviction
the individual, if requested by the indi- or in a finding of not guilty by reason
vidual in writing; and of insanity of one of the offenses listed
(ii) The ASC is the individual’s point in paragraph (d) of this section, the in-
of contact if he or she has questions dividual is not disqualified under this
about the results of the CHRC. section.
(5) The airport operator must collect, (3) The airport operator may only
control, and process one set of legible make the determinations required in
and classifiable fingerprints under di- paragraphs (g)(1) and (g)(2) of this sec-
rect observation of the airport operator tion for individuals for whom it is
or a law enforcement officer. issuing, or has issued, unescorted ac-
(6) Fingerprints may be obtained and cess authority, and who are not cov-
processed electronically, or recorded ered by a certification from an aircraft
on fingerprint cards approved by the operator under paragraph (n) of this
FBI and distributed by TSA for that section. The airport operator may not
purpose. make determinations for individuals
(7) The fingerprint submission must described in § 1544.229 of this chapter.
be forwarded to TSA in the manner (h) Correction of FBI records and notifi-
specified by TSA. cation of disqualification. (1) Before
321
making a final decision to deny criminal offense, the individual must

unescorted access authority to an indi- notify the airport operator in writing
vidual described in paragraph (b) of of his or her intent to correct any in-
this section, the airport operator must formation he or she believes to be inac-
advise him or her that the FBI crimi- curate. The airport operator must ob-
nal record discloses information that tain a copy, or accept a copy from the
would disqualify him or her from re- individual, of the revised FBI record, or
ceiving or retaining unescorted access a certified true copy of the information
authority and provide the individual from the appropriate court, prior to re-
with a copy of the FBI record if he or instating unescorted access authority.
she requests it. (j) Limits on dissemination of results.
(2) The airport operator must notify Criminal record information provided
an individual that a final decision has by the FBI may be used only to carry
been made to grant or deny unescorted out this section and § 1544.229 of this
access authority. chapter. No person may disseminate
(3) Immediately following the suspen- the results of a CHRC to anyone other
sion of unescorted access authority of than:
an individual, the airport operator (1) The individual to whom the record
must advise him or her that the FBI pertains, or that individual’s author-
criminal record discloses information ized representative.
that disqualifies him or her from re-
(2) Officials of other airport operators
taining unescorted access authority
who are determining whether to grant
and provide the individual with a copy
unescorted access to the individual
of the FBI record if he or she requests
under this part.
it.
(3) Aircraft operators who are deter-
(i) Corrective action by the individual.
mining whether to grant unescorted
The individual may contact the local
access to the individual or authorize
jurisdiction responsible for the infor-
the individual to perform screening
mation and the FBI to complete or cor-
functions under part 1544 of this chap-
rect the information contained in his
ter.
or her record, subject to the following
conditions— (4) Others designated by TSA.
(1) For an individual seeking (k) Recordkeeping. The airport oper-
unescorted access authority on or after ator must maintain the following in-
December 6, 2001, the following applies: formation:
(i) Within 30 days after being advised (1) Investigations conducted before De-
that the criminal record received from cember 6, 2001. The airport operator
the FBI discloses a disqualifying crimi- must maintain and control the access
nal offense, the individual must notify or employment history investigation
the airport operator in writing of his or files, including the criminal history
her intent to correct any information records results portion, or the appro-
he or she believes to be inaccurate. The priate certifications, for investigations
airport operator must obtain a copy, or conducted before December 6, 2001.
accept a copy from the individual, of (2) Fingerprint application process on or
the revised FBI record, or a certified after December 6, 2001. Except when the
true copy of the information from the airport operator has received a certifi-
appropriate court, prior to granting cation under paragraph (n) of this sec-
unescorted access authority. tion, the airport operator must phys-
(ii) If no notification, as described in ically maintain, control, and, as appro-
paragraph (h)(1) of this section, is re- priate, destroy the fingerprint applica-
ceived within 30 days, the airport oper- tion and the criminal record. Only di-
ator may make a final determination rect airport operator employees may
to deny unescorted access authority. carry out the responsibility for main-
(2) For an individual with unescorted taining, controlling, and destroying
access authority before December 6, criminal records.
2001, the following applies: Within 30 (3) Certification on or after December 6,
days after being advised of suspension 2001. The airport operator must main-
because the criminal record received tain the certifications provided under
from the FBI discloses a disqualifying paragraph (n) of this section.
322
(4) Protection of records—all investiga- quiring unescorted access authority by

tions. The records required by this sec- another airport operator, airport user,
tion must be maintained in a manner or aircraft operator, or contractor to
that is acceptable to TSA and in a such an entity, provided the grant for
manner that protects the confiden- his or her unescorted access authority
tiality of the individual. was based upon a fingerprint-based
(5) Duration—all investigations. The CHRC through TSA or FAA.
records identified in this section with (ii) An individual who has been con-
regard to an individual must be main- tinuously employed by an aircraft op-
tained until 180 days after the termi- erator or aircraft operator contractor,
nation of the individual’s unescorted
in a position with authority to perform
access authority. When files are no
screening functions, provided the grant
longer maintained, the criminal record
must be destroyed. for his or her authority to perform
(l) Continuing responsibilities. (1) Each screening functions was based upon a
individual with unescorted access au- fingerprint-based CHRC through TSA
thority on December 6, 2001, who had a or FAA.
disqualifying criminal offense in para- (n) Certifications by aircraft operators.
graph (d) of this section on or after De- An airport operator is in compliance
cember 6, 1991, must, by January 7, with its obligation under paragraph (b)
2002, report the conviction to the air- or (c) of this section when the airport
port operator and surrender the SIDA operator accepts, for each individual
access medium to the issuer. seeking unescorted access authority,
(2) Each individual with unescorted certification from an aircraft operator
access authority who has a disquali- subject to part 1544 of this chapter in-
fying criminal offense must report the dicating it has complied with § 1544.229
offense to the airport operator and sur- of this chapter for the aircraft opera-
render the SIDA access medium to the tor’s employees and contractors seek-
issuer within 24 hours of the conviction ing unescorted access authority. If the
or the finding of not guilty by reason airport operator accepts a certification
of insanity. from the aircraft operator, the airport
(3) If information becomes available operator may not require the aircraft
to the airport operator or the airport
operator to provide a copy of the
user indicating that an individual with
CHRC.
unescorted access authority has a dis-
qualifying criminal offense, the airport (o) Airport operator responsibility. The
operator must determine the status of airport operator must—
the conviction. If a disqualifying of- (1) Designate the ASC, in the secu-
fense is confirmed the airport operator rity program, or a direct employee if
must immediately revoke any the ASC is not a direct employee, to be
unescorted access authority. responsible for maintaining, control-
(m) Exceptions. Notwithstanding the ling, and destroying the criminal
requirements of this section, an airport record files when their maintenance is
operator must authorize the following no longer required by paragraph (k) of
individuals to have unescorted access this section.
authority: (2) Designate the ASC, in the secu-
(1) An employee of the Federal, state, rity program, to serve as the contact
or local government (including a law to receive notification from individuals
enforcement officer) who, as a condi- applying for unescorted access author-
tion of employment, has been subjected ity of their intent to seek correction of
to an employment investigation that their FBI criminal record.
includes a criminal records check. (3) Audit the employment history in-
(2) Notwithstanding the requirements
vestigations performed by the airport
of this section, an airport operator
operator in accordance with this sec-
may authorize the following individ-
uals to have unescorted access author- tion and 14 CFR 107.31 in effect prior to
ity: November 14, 2001 (see 14 CFR Parts 60
through 139 revised as of January 1,
(i) An individual who has been con-

tinuously employed in a position re-
323
2001), and those investigations con- longer have unescorted access author-
ducted by the airport users who pro- ity.
vided certification to the airport oper- (ii) Reporting lost or stolen identi-
ator. The audit program must be set fication media.
forth in the airport security program. (iii) Securing unissued identification
(p) Airport user responsibility. (1) The media stock and supplies.
airport user must report to the airport (iv) Auditing the system at a min-
operator information, as it becomes imum of once a year or sooner, as nec-
available, that indicates an individual essary, to ensure the integrity and ac-
with unescorted access authority may countability of all identification
have a disqualifying criminal offense. media.
(2) The airport user must maintain (v) As specified in the security pro-
and control, in compliance with para- gram, revalidate the identification sys-
graph (k) of this section, the employ- tem or reissue identification media if a
ment history investigation files for in- portion of all issued, unexpired identi-
vestigations conducted before Decem- fication media are lost, stolen, or oth-
ber 6, 2001, unless the airport operator erwise unaccounted for, including iden-
decides to maintain and control the tification media that are combined
employment history investigation file. with access media.
(3) The airport user must provide the (vi) Ensure that only one identifica-
airport operator with either the name tion medium is issued to an individual
or title of the individual acting as cus- at a time, except for personnel who are
todian of the files described in this employed with more than one company
paragraph (p), the address of the loca- and require additional identification
tion where the files are maintained, media to carry out employment duties.
and the phone number of that location. A replacement identification medium
The airport user must provide the air- may only be issued if an individual de-
port operator and TSA with access to clares in writing that the medium has
these files. been lost, stolen, or destroyed.
(b) Temporary identification media.
§ 1542.211 Identification systems. Each airport operator may issue per-
(a) Personnel identification system. The sonnel identification media in accord-
personnel identification system under ance with its security program to per-
§§ 1542.201(b)(3) and 1542.205(b)(1) must sons whose duties are expected to be
include the following: temporary. The temporary identifica-
(1) Personnel identification media tion media system must include proce-
that— dures and methods to—
(i) Convey a full-face image, full (1) Retrieve temporary identification
name, employer, and identification media;
number of the individual to whom the (2) Authorize the use of a temporary
identification medium is issued; media for a limited time only;
(ii) Indicate clearly the scope of the (3) Ensure that temporary media are
individual’s access and movement distinct from other identification
privileges; media and clearly display an expira-
(iii) Indicate clearly an expiration tion date; and
date; and (4) Ensure that any identification
(iv) Are of sufficient size and appear- media also being used as an access
ance as to be readily observable for media meet the criteria of § 1542.207(d).
challenge purposes. (c) Airport-approved identification
(2) Procedures to ensure that each in- media. TSA may approve an amend-
dividual in the secured area or SIDA ment to the airport security program
continuously displays the identifica- that provides for the use of identifica-
tion medium issued to that individual tion media meeting the criteria of this
on the outermost garment above waist section that are issued by entities
level, or is under escort. other than the airport operator, as de-
(3) Procedures to ensure account- scribed in the security program.
ability through the following: (d) Challenge program. Each airport
(i) Retrieving expired identification operator must establish and carry out
media and media of persons who no a challenge program that requires each
324
individual who has authorized be implemented by each airport oper-

unescorted access to secured areas and ator not later than November 14, 2003.
SIDA’s to ascertain the authority of
any individual who is not displaying an § 1542.213 Training.
identification medium authorizing the (a) Each airport operator must en-
individual to be present in the area. sure that individuals performing secu-
The challenge program must include rity-related functions for the airport
procedures to challenge individuals not operator are briefed on the provisions
displaying airport approved identifica- of this part, Security Directives, and
tion media. The procedure must— Information Circulars, and the security
(1) Apply uniformly in secured areas, program, to the extent that such indi-
SIDAs, and exclusive areas; viduals need to know in order to per-
(2) Describe how to challenge an indi- form their duties.
vidual directly or report any individual (b) An airport operator may not au-
not visibly displaying an authorized thorize any individual unescorted ac-
identification medium, including process to the secured area or SIDA, ex-
cedures to notify the appropriate au- cept as provided in § 1542.5, unless that
thority; and individual has successfully completed
(3) Describe support of challenge pro- training in accordance with TSA-ap-
cedures, including law enforcement and proved curriculum specified in the se-
any other responses to reports of indi- curity program. This curriculum must
viduals not displaying authorized iden- detail the methods of instruction, pro-
tification media. vide attendees with an opportunity to
(e) Escorting. Each airport operator ask questions, and include at least the
must establish and implement proce- following topics—
dures for escorting individuals who do (1) The unescorted access authority
not have unescorted access authority of the individual to enter and be
to a secured area or SIDA that— present in various areas of the airport;
(1) Ensure that only individuals with (2) Control, use, and display of air-
unescorted access authority are per- port-approved access and identification
mitted to escort; media;
(2) Ensure that the escorted individ- (3) Escort and challenge procedures
uals are continuously accompanied or and the law enforcement support for
monitored while within the secured these procedures;
area or SIDA in a manner sufficient to (4) Security responsibilities as speci-
identify whether the escorted indi- fied in § 1540.105;
vidual is engaged in activities other (5) Restrictions on divulging sen-
than those for which escorted access sitive security information as de-
was granted, and to take action in ac- scribed in part 1520 of this chapter; and
cordance with the airport security pro- (6) Any other topics specified in the
gram; security program.
(3) Identify what action is to be (c) An airport operator may not au-
taken by the escort, or other author- thorize any individual unescorted ac-
ized individual, should individuals cess to the AOA, except as provided in
under escort engage in activities other § 1542.5, unless that individual has been
than those for which access was grant- provided information in accordance
ed; with the security program, including—
(4) Prescribe law enforcement sup- (1) The unescorted access authority
port for escort procedures; and of the individual to enter and be
(5) Ensure that individuals escorted present in various areas of the airport;
into a sterile area without being (2) Control, use, and display of air-
screened under § 1544.201 of this chapter port-approved access and identification
remain under escort until they exit the media, if appropriate;
sterile area, or submit to screening (3) Escort and challenge procedures
pursuant to § 1544.201 or § 1546.201 of this and the law enforcement support for
chapter. these procedures, where applicable;
(f) Effective date. The identification (4) Security responsibilities as speci-

systems described in this section must fied in § 1540.105;
325
(5) Restrictions on divulging sen- used to meet the requirements of

sitive security information as de- § 1542.215, meet the following qualifica-
scribed in part 1520 of this chapter; and tions while on duty at the airport—
(6) Any other topics specified in the (1) Have arrest authority described in
security program. paragraph (b) of this section;
(d) Each airport operator must main- (2) Are identifiable by appropriate in-
tain a record of all training and infor- dicia of authority;
mation given to each individual under (3) Are armed with a firearm and au-
paragraphs (b) and (c) of this section thorized to use it; and
for 180 days after the termination of (4) Have completed a training pro-
that person’s unescorted access author- gram that meets the requirements of
ity. paragraphs (c) and (d) of this section.
(e) As to persons with unescorted ac- (b) Each airport operator must en-
cess to the SIDA on November 14, 2001, sure that each individual used to meet
training on responsibility under the requirements of § 1542.215 have the
§ 1540.105 can be provided by making authority to arrest, with or without a
relevant security information avail- warrant, while on duty at the airport
able. for the following violations of the
(f) Training described in paragraph criminal laws of the State and local ju-
(c) of this section must be implemented risdictions in which the airport is lo-
by each airport operator not later than cated—
November 14, 2002.
(1) A crime committed in the pres-
§ 1542.215 Law enforcement support. ence of the individual; and
(2) A felony, when the individual has
(a) In accordance with § 1542.217, each
reason to believe that the suspect has
airport operator required to have a se-
committed it.
curity program under § 1542.103(a) or (b)
(c) The training program required by
must provide:
(1) Law enforcement personnel in the paragraph (a)(4) of this section must—
number and manner adequate to sup- (1) Meet the training standard for law
port its security program. enforcement officers prescribed by ei-
(2) Uniformed law enforcement per- ther the State or local jurisdiction in
sonnel in the number and manner ade- which the airport is located for law en-
quate to support each system for forcement officers performing com-
screening persons and accessible prop- parable functions.
erty required under part 1544 or 1546 of (2) Specify and require training
this chapter, except to the extent that standards for private law enforcement
TSA provides Federal law enforcement personnel acceptable to TSA, if the
support for the system. State and local jurisdictions in which
(b) Each airport required to have a the airport is located do not prescribe
security program under § 1542.103(c) training standards for private law en-
must ensure that: forcement personnel that meets the
(1) Law enforcement personnel are standards in paragraph (a) of this sec-
available and committed to respond to tion.
an incident in support of a civil avia- (3) Include training in—
tion security program when requested (i) The use of firearms;
by an aircraft operator or foreign air (ii) The courteous and efficient treat-
carrier that has a security program ment of persons subject to inspection,
under part 1544 or 1546 of this chapter. detention, search, arrest, and other
(2) The procedures by which to re- aviation security activities;
quest law enforcement support are pro- (iii) The responsibilities of law en-
vided to each aircraft operator or for- forcement personnel under the security
eign air carrier that has a security pro- program; and
gram under part 1544 or 1546 of this (iv) Any other subject TSA deter-
chapter. mines is necessary.
(d) Each airport operator must docu-
§ 1542.217 Law enforcement personnel. ment the training program required by
(a) Each airport operator must en- paragraph (a)(4) of this section and
sure that law enforcement personnel maintain documentation of training at
326
a location specified in the security pro- (c) In response to a request submitted

gram until 180 days after the departure in accordance with this section, TSA
or removal of each person providing may authorize, on a reimbursable
law enforcement support at the air- basis, the use of personnel employed by
port. a Federal agency, with the consent of
the head of that agency.
§ 1542.219 Supplementing law enforce-
ment personnel. § 1542.221 Records of law enforcement
response.
(a) When TSA decides, after being no-
tified by an airport operator as pre- (a) Each airport operator must en-
scribed in this section, that not enough sure that—
qualified State, local, and private law (1) A record is made of each law en-
enforcement personnel are available to forcement action taken in furtherance
carry out the requirements of § 1542.215, of this part; and
TSA may authorize the airport oper- (2) The record is maintained for a
ator to use, on a reimbursable basis, minimum of 180 days.
personnel employed by TSA, or by an- (b) Data developed in response to
other department, agency, or instru- paragraph (a) of this section must in-
mentality of the Government with the clude at least the following, except as
consent of the head of the department, authorized by TSA:
agency, or instrumentality to supple- (1) The number and type of weapons,
ment State, local, and private law en- explosives, or incendiaries discovered
forcement personnel. during any passenger-screening proc-
(b) Each request for the use of Fed- ess, and the method of detection of
eral personnel must be submitted to each.
TSA and include the following infor- (2) The number of acts and attempted
mation: acts of aircraft piracy.
(1) The number of passengers en- (3) The number of bomb threats re-
planed at the airport during the pre- ceived, real and simulated bombs
ceding calendar year and the current found, and actual detonations on the
calendar year as of the date of the re- airport.
quest. (4) The number of arrests, including—
(2) The anticipated risk of criminal (i) Name, address, and the immediate
violence, sabotage, aircraft piracy, and disposition of each individual arrested;
other unlawful interference to civil (ii) Type of weapon, explosive, or in-
aviation operations. cendiary confiscated, as appropriate;
(3) A copy of that portion of the secu- and
rity program which describes the law (iii) Identification of the aircraft op-
enforcement support necessary to com- erators or foreign air carriers on which
ply with § 1542.215. the individual arrested was, or was
(4) The availability of law enforce- scheduled to be, a passenger or which
ment personnel who meet the require- screened that individual, as appro-
ments of § 1542.217, including a descrip- priate.
tion of the airport operator’s efforts to
obtain law enforcement support from Subpart D—Contingency
State, local, and private agencies and Measures
the responses of those agencies.
(5) The airport operator’s estimate of § 1542.301 Contingency plan.
the number of Federal personnel need- (a) Each airport operator required to
ed to supplement available law enforce- have a security program under
ment personnel and the period of time § 1542.103(a) and (b) must adopt a con-
for which they are needed. tingency plan and must:
(6) A statement acknowledging re- (1) Implement its contingency plan
sponsibility for providing reimburse- when directed by TSA.
ment for the cost of providing Federal (2) Conduct reviews and exercises of
personnel. its contingency plan as specified in the
(7) Any other information TSA con- security program with all persons hav-
siders necessary. ing responsibilities under the plan.
327
(3) Ensure that all parties involved (f) Each airport operator that re-
know their responsibilities and that all ceives a Security Directive or an Infor-
information contained in the plan is mation Circular and each person who
current. receives information from a Security
(b) TSA may approve alternative im- Directive or an Information Circular
plementation measures, reviews, and must:
exercises to the contingency plan (1) Restrict the availability of the Se-
which will provide an overall level of curity Directive or Information Cir-
security equal to the contingency plan cular, and information contained in ei-
under paragraph (a) of this section. ther document, to those persons with
an operational need-to-know.
§ 1542.303 Security Directives and In- (2) Refuse to release the Security Di-
formation Circulars.
rective or Information Circular, and in-
(a) TSA may issue an Information formation contained in either docu-
Circular to notify airport operators of ment, to persons other than those who
security concerns. When TSA deter- have an operational need to know with-
mines that additional security meas- out the prior written consent of TSA.
ures are necessary to respond to a
threat assessment or to a specific § 1542.305 Public advisories.
threat against civil aviation, TSA When advised by TSA, each airport
issues a Security Directive setting operator must prominently display and
forth mandatory measures. maintain in public areas information
(b) Each airport operator must com- concerning foreign airports that, in the
ply with each Security Directive issued judgment of the Secretary of Transpor-
to the airport operator within the time tation, do not maintain and administer
prescribed in the Security Directive. effective security measures. This infor-
(c) Each airport operator that re- mation must be posted in the manner
ceives a Security Directive must— specified in the security program and
(1) Within the time prescribed in the for such a period of time determined by
Security Directive, verbally acknowl- the Secretary of Transportation.
edge receipt of the Security Directive
to TSA. § 1542.307 Incident management.
(2) Within the time prescribed in the
Security Directive, specify the method (a) Each airport operator must estab-
by which the measures in the Security lish procedures to evaluate bomb
Directive have been implemented (or threats, threats of sabotage, aircraft
will be implemented, if the Security piracy, and other unlawful interference
Directive is not yet effective). to civil aviation operations.
(d) In the event that the airport oper- (b) Immediately upon direct or re-
ator is unable to implement the meas- ferred receipt of a threat of any of the
ures in the Security Directive, the air- incidents described in paragraph (a) of
port operator must submit proposed al- this section, each airport operator
ternative measures and the basis for must—
submitting the alternative measures to (1) Evaluate the threat in accordance
TSA for approval. The airport operator with its security program;
must submit the proposed alternative (2) Initiate appropriate action as
measures within the time prescribed in specified in the Airport Emergency
the Security Directive. The airport op- Plan under 14 CFR 139.325; and
erator must implement any alternative (3) Immediately notify TSA of acts,
measures approved by TSA. or suspected acts, of unlawful inter-
(e) Each airport operator that reference to civil aviation operations, in-
ceives a Security Directive may com- cluding specific bomb threats to air-
ment on the Security Directive by sub- craft and airport facilities.
mitting data, views, or arguments in (c) Airport operators required to have
writing to TSA. TSA may amend the a security program under § 1542.103(c)
Security Directive based on comments but not subject to 14 CFR part 139,
received. Submission of a comment must develop emergency response pro-
does not delay the effective date of the cedures to incidents of threats identi-
Security Directive. fied in paragraph (a) of this section.
328
(d) To ensure that all parties know 1544.235 Training and knowledge for individ-
their responsibilities and that all pro- uals with security-related duties.
cedures are current, at least once every 1544.237 Flight deck privileges.
1544.239 Known shipper program.
12 calendar months each airport oper-
ator must review the procedures re- Subpart D—Threat and Threat Response
quired in paragraphs (a) and (b) of this
section with all persons having respon- 1544.301 Contingency plan.
sibilities for such procedures. 1544.303 Bomb or air piracy threats.
1544.305 Security Directives and Informa-
tion Circulars.
PART 1544—AIRCRAFT OPERATOR
SECURITY: AIR CARRIERS AND Subpart E—Screener Qualifications When
COMMERCIAL OPERATORS the Aircraft Operator Performs Screening
1544.401 Applicability of this subpart.
Subpart A—General 1544.403 Current screeners.
1544.405 New screeners: Qualifications of
Sec. screening personnel.
1544.1 Applicability of this part. 1544.407 New screeners: Training, testing,
1544.3 TSA inspection authority. and knowledge of individuals who per-
form screening functions.
Subpart B—Security Program 1544.409 New screeners: Integrity of screener
tests.
1544.101 Adoption and implementation. 1544.411 New screeners: Continuing quali-
1544.103 Form, content, and availability. fications for screening personnel.
1544.105 Approval and amendments.
AUTHORITY: 49 U.S.C. 114, 5103, 40113, 44901–
Subpart C—Operations 44905, 44907, 44913–44914, 44916–44918, 44932,
44935–44936, 44942, 46105.
1544.201 Acceptance and screening of indi- SOURCE: 67 FR 8364, Feb. 22, 2002, unless
viduals and accessible property. otherwise noted.
1544.203 Acceptance and screening of
checked baggage.
1544.202 Persons and property onboard an Subpart A—General
all-cargo aircraft.
1544.205 Acceptance and screening of cargo. § 1544.1 Applicability of this part.
1544.207 Screening of individuals and prop- (a) This part prescribes aviation se-
erty. curity rules governing the following:
1544.209 Use of metal detection devices. (1) The operations of aircraft opera-
1544.211 Use of X-ray systems.
tors holding operating certificates
1544.213 Use of explosives detection systems.
1544.215 Security coordinators. under 14 CFR part 119 for scheduled
1544.217 Law enforcement personnel. passenger operations, public charter
1544.219 Carriage of accessible weapons. passenger operations, private charter
1544.221 Carriage of prisoners under the con- passenger operations; the operations of
trol of armed law enforcement officers. aircraft operators holding operating
1544.223 Transportation of Federal Air Mar- certificates under 14 CFR part 119 oper-
shals. ating aircraft with a maximum certifi-
1544.225 Security of aircraft and facilities. cated takeoff weight of 12,500 pounds or
1544.227 Exclusive area agreement. more; and other aircraft operators
1544.228 Access to cargo: Security threat as-
sessments for cargo personnel in the
adopting and obtaining approval of an
United States. aircraft operator security program.
1544.229 Fingerprint-based criminal history (2) Each law enforcement officer fly-
records checks (CHRC): Unescorted ac- ing armed aboard an aircraft operated
cess authority, authority to perform by an aircraft operator described in
screening functions, and authority to paragraph (a)(1) of this section.
perform checked baggage or cargo func- (3) Each aircraft operator that re-
tions. ceives a Security Directive or Informa-
1544.230 Fingerprint-based criminal history tion Circular and each person who re-
records checks (CHRC): Flightcrew mem-
bers.
ceives information from a Security Di-
1544.231 Airport-approved and exclusive area rective or Information Circular issued
personnel identification systems. by TSA.
1544.233 Security coordinators and crew- (b) As used in this part, ‘‘aircraft op-
members, training. erator’’ means an aircraft operator
329
subject to this part as described in aircraft having a passenger seating

§ 1544.101. configuration of 61 or more seats.
(2) A scheduled passenger or public
FR 8209, Feb. 22, 2002] charter passenger operation with an
aircraft having a passenger seating
§ 1544.3 TSA inspection authority. configuration of 60 or fewer seats when
passengers are enplaned from or
(a) Each aircraft operator must allow
deplaned into a sterile area.
TSA, at any time or place, to make
(b) Partial program—adoption. Each
any inspections or tests, including
aircraft operator must carry out the
copying records, to determine compli-
requirements specified in paragraph (c)
ance of an airport operator, aircraft op-
of this section for each of the following
erator, foreign air carrier, indirect air
operations:
carrier, or other airport tenants with—
(1) This subchapter and any security
charter passenger operation with an
program under this subchapter, and
aircraft having a passenger-seating
part 1520 of this chapter; and
configuration of 31 or more but 60 or
(2) 49 U.S.C. Subtitle VII, as amend-
fewer seats that does not enplane from
ed.
or deplane into a sterile area.
(b) At the request of TSA, each air-
craft operator must provide evidence of
charter passenger operation with an
compliance with this part and its secu-
aircraft having a passenger-seating
rity program, including copies of
configuration of 60 or fewer seats en-
records.
gaged in operations to, from, or outside
(c) TSA may enter and be present
the United States that does not en-
within secured areas, AOAs, SIDAs,
plane from or deplane into a sterile
and other areas where security meas-
area.
ures required by TSA are carried out,
(c) Partial program-content: For oper-
without access media or identification
ations described in paragraph (b) of
media issued or approved by an airport
this section, the aircraft operator must
operator or aircraft operator, in order
carry out the following, and must
to inspect or test compliance, or per-
adopt and carry out a security program
form other such duties as TSA may di-
that meets the applicable requirements
rect.
in § 1544.103 (c):
(d) At the request of TSA and the
(1) The requirements of §§ 1544.215,
completion of SIDA training as re-
1544.217, 1544.219, 1544.223, 1544.230,
quired in a security program, each air-
1544.235, 1544.237, 1544.301, 1544.303, and
craft operator must promptly issue to
1544.305.
TSA personnel access and identifica-
(2) Other provisions of subparts C, D,
tion media to provide TSA personnel
and E of this part that TSA has ap-
with unescorted access to, and move-
proved upon request.
ment within, areas controlled by the
(3) The remaining requirements of
aircraft operator under an exclusive
subparts C, D, and E when TSA notifies
area agreement.
the aircraft operator in writing that a
[67 FR 8364, Feb. 22, 2002, as amended at 71 security threat exists concerning that
FR 30510, May 26, 2006] operation.
(d) Twelve-five program-adoption: Each
Subpart B—Security Program aircraft operator must carry out the
requirements of paragraph (e) of this
§ 1544.101 Adoption and implementa- section for each operation that meets
tion. all of the following—
(a) Full program. Each aircraft oper- (1) Is an aircraft with a maximum
ator must carry out subparts C, D, and certificated takeoff weight of more
E of this part and must adopt and carry than 12,500 pounds;
out a security program that meets the (2) Is in scheduled or charter service;
requirements of § 1544.103 for each of (3) Is carrying passengers or cargo or
the following operations: both; and
(1) A scheduled passenger or public (4) Is not under a full program, par-
charter passenger operation with an tial program, or full all-cargo program
330
under paragraph (a), (b), or (h) of this (1) Carry out selected provisions of
section. subparts C, D, and E;
(e) Twelve-five program-contents: For (2) Carry out the provisions of
each operation described in paragraph § 1544.305, as specified in its security
(d) of this section, the aircraft operator program; and
must carry out the following, and must (3) Adopt and carry out a security
adopt and carry out a security program program that meets the applicable re-
that meets the applicable requirements quirements of § 1544.103 (c).
of § 1544.103 (c): (h) Full all-cargo program—adoption:
(1) The requirements of §§ 1544.215, Each aircraft operator must carry out
1544.217, 1544.219, 1544.223, 1544.230, the requirements of paragraph (i) of
1544.235, 1544.237, 1544.301(a) and (b), this section for each operation that
1544.303, and 1544.305; and in addition, is—
for all-cargo operations of §§ 1544.202, (1) In an aircraft with a maximum
1544.205(a), (b), (d), and (f). certificated takeoff weight of more
(2) Other provisions of subparts C, D, than 45,500 kg (100,309.3 pounds); and
and E that TSA has approved upon re- (2) Carrying cargo and authorized
quest. persons and no passengers.
(i) Full all-cargo program—contents:
(3) The remaining requirements of
For each operation described in para-
subparts C, D, and E when TSA notifies
graph (h) of this section, the aircraft
the aircraft operator in writing that a
operator must carry out the following,
security threat exists concerning that
and must adopt and carry out a secu-
operation.
rity program that meets the applicable
(f) Private charter program. In addition requirements of § 1544.103(c):
to paragraph (d) of this section, if ap- (1) The requirements of §§ 1544.202,
plicable, each aircraft operator must 1544.205, 1544.207, 1544.209, 1544.211,
carry out §§ 1544.201, 1544.207, 1544.209, 1544.215, 1544.217, 1544.219, 1544.225,
1544.211, 1544.215, 1544.217, 1544.219, 1544.227, 1544.228, 1544.229, 1544.230,
1544.225, 1544.229, 1544.230, 1544.233, 1544.231, 1544.233, 1544.235, 1544.237,
1544.235, 1544.303, and 1544.305, and sub- 1544.301, 1544.303, and 1544.305.
part E of this part and— (2) Other provisions of subpart C of
(1) Must adopt and carry out a secu- this part that TSA has approved upon
rity program that meets the applicable request.
requirements of § 1544.103 for each pri- (3) The remaining requirements of
vate charter passenger operation in subpart C of this part when TSA noti-
which— fies the aircraft operator in writing
(i) The passengers are enplaned from that a security threat exists con-
or deplaned into a sterile area; or cerning that operation.
(ii) The aircraft has a maximum cer-
tificated takeoff weight greater than FR 8209, Feb. 22, 2002; 67 FR 41639, June 19,
45,500 kg (100,309.3 pounds), or a pas- 2002; 67 FR 79887, Dec. 31, 2002; 71 FR 30510,
senger-seating configuration of 61 or May 26, 2006]
more, and is not a government charter
under paragraph (2) of the definition of § 1544.103 Form, content, and avail-
private charter in § 1540.5 of this chap- ability.
ter. (a) General requirements. Each secu-
(2) The Administrator may authorize rity program must:
alternate procedures under paragraph (1) Provide for the safety of persons
(f)(1) of this section as appropriate. and property traveling on flights pro-
(g) Limited program: In addition to vided by the aircraft operator against
paragraph (d) of this section, if applica- acts of criminal violence and air pi-
ble, TSA may approve a security pro- racy, and the introduction of explo-
gram after receiving a request by an sives, incendiaries, or weapons aboard
aircraft operator holding a certificate an aircraft.
under 14 CFR part 119, other than one (2) Be in writing and signed by the
identified in paragraph (a), (b), (d), or aircraft operator or any person dele-
(f) of this section. The aircraft operator gated authority in this matter.
must— (3) Be approved by TSA.
331
(b) Availability. Each aircraft oper- (7) The procedures and description of
ator having a security program must: the facilities and equipment used to
(1) Maintain an original copy of the comply with the requirements of
security program at its corporate of- § 1544.213 regarding the use of explo-
fice. sives detection systems.
(2) Have accessible a complete copy, (8) The procedures used to comply
or the pertinent portions of its security with the requirements of § 1544.215 re-
program, or appropriate implementing garding the responsibilities of security
instructions, at each airport served. An coordinators. The names of the Air-
electronic version of the program is craft Operator Security Coordinator
adequate. (AOSC) and any alternate, and the
(3) Make a copy of the security pro- means for contacting the AOSC(s) on a
gram available for inspection upon re- 24-hour basis, as provided in § 1544.215.
quest of TSA. (9) The procedures used to comply
(4) Restrict the distribution, disclo- with the requirements of § 1544.217 re-
sure, and availability of information garding the requirements for law en-
contained in the security program to
forcement personnel.
persons with a need-to-know as de-
(10) The procedures used to comply
scribed in part 1520 of this chapter.
with the requirements of § 1544.219 re-
(5) Refer requests for such informa-
garding carriage of accessible weapons.
tion by other persons to TSA.
(c) Content. The security program
must include, as specified for that air- with the requirements of § 1544.221 re-
craft operator in § 1544.101, the fol- garding carriage of prisoners under the
lowing: control of armed law enforcement offi-
(1) The procedures and description of cers.
the facilities and equipment used to (12) The procedures used to comply
comply with the requirements of with the requirements of § 1544.223 re-
§ 1544.201 regarding the acceptance and garding transportation of Federal Air
screening of individuals and their ac- Marshals.
cessible property, including, if applica- (13) The procedures and description of
ble, the carriage weapons as part of the facilities and equipment used to
State-required emergency equipment. perform the aircraft and facilities con-
(2) The procedures and description of trol function specified in § 1544.225.
the facilities and equipment used to (14) The specific locations where the
comply with the requirements of air carrier has entered into an exclu-
§ 1544.203 regarding the acceptance and sive area agreement under § 1544.227.
screening of checked baggage. (15) The procedures used to comply
(3) The procedures and description of with the applicable requirements of
the facilities and equipment used to §§ 1544.229 and 1544.230 regarding finger-
comply with the requirements of print-based criminal history records
§ 1544.205 regarding the acceptance and checks.
screening of cargo.
(4) The procedures and description of with the requirements of § 1544.231 re-
the facilities and equipment used to
garding personnel identification sys-
comply with the requirements of
tems.
§ 1544.207 regarding the screening of in-
dividuals and property. (17) The procedures and syllabi used
(5) The procedures and description of to accomplish the training required
the facilities and equipment used to under § 1544.233.
comply with the requirements of (18) The procedures and syllabi used
§ 1544.209 regarding the use of metal de- to accomplish the training required
tection devices. under § 1544.235.
(6) The procedures and description of (19) An aviation security contingency
the facilities and equipment used to plan as specified under § 1544.301.
comply with the requirements of (20) The procedures used to comply
§ 1544.211 regarding the use of x-ray sys- with the requirements of § 1544.303 re-
tems. garding bomb and air piracy threats.
332
(21) The procedures used to comply official, in writing, either approves or

with § 1544.237 regarding flight deck denies the request to amend.
privileges. (3) An amendment to an aircraft op-
erator security program may be ap-
FR 8209, Feb. 22, 2002] proved if the designated official deter-
mines that safety and the public inter-
§ 1544.105 Approval and amendments. est will allow it, and the proposed
amendment provides the level of secu-
(a) Initial approval of security program.
rity required under this part.
Unless otherwise authorized by TSA,
each aircraft operator required to have (4) Within 30 days after receiving a
a security program under this part denial, the aircraft operator may peti-
must submit its proposed security pro- tion the Administrator to reconsider
gram to the designated official for ap- the denial. A petition for reconsider-
proval at least 90 days before the in- ation must be filed with the designated
tended date of passenger operations. official.
The proposed security program must (5) Upon receipt of a petition for re-
meet the requirements applicable to its consideration, the designated official
operation as described in § 1544.101. either approves the request to amend
Such requests will be processed as fol- or transmits the petition, together
lows: with any pertinent information, to the
(1) The designated official, within 30 Administrator for reconsideration. The
days after receiving the proposed air- Administrator disposes of the petition
craft operator security program, will within 30 days of receipt by either di-
either approve the program or give the recting the designated official to ap-
aircraft operator written notice to prove the amendment, or affirming the
modify the program to comply with the denial.
applicable requirements of this part. (6) Any aircraft operator may submit
(2) The aircraft operator may either a group proposal for an amendment
submit a modified security program to that is on behalf of it and other air-
the designated official for approval, or craft operators that co-sign the pro-
petition the Administrator to recon- posal.
sider the notice to modify within 30 (c) Amendment by TSA. If safety and
days of receiving a notice to modify. A the public interest require an amend-
petition for reconsideration must be ment, TSA may amend a security pro-
filed with the designated official. gram as follows:
(3) The designated official, upon re- (1) The designated official notifies
ceipt of a petition for reconsideration, the aircraft operator, in writing, of the
either amends or withdraws the notice, proposed amendment, fixing a period of
or transmits the petition, together not less than 30 days within which the
with any pertinent information, to the aircraft operator may submit written
Administrator for reconsideration. The information, views, and arguments on
Administrator disposes of the petition the amendment.
within 30 days of receipt by either di- (2) After considering all relevant ma-
recting the designated official to with- terial, the designated official notifies
draw or amend the notice to modify, or the aircraft operator of any amend-
by affirming the notice to modify. ment adopted or rescinds the notice. If
(b) Amendment requested by an aircraft the amendment is adopted, it becomes
operator. An aircraft operator may sub- effective not less than 30 days after the
mit a request to TSA to amend its se- aircraft operator receives the notice of
curity program as follows: amendment, unless the aircraft oper-
(1) The request for an amendment ator petitions the Administrator to re-
must be filed with the designated offi- consider no later than 15 days before
cial at least 45 days before the date it the effective date of the amendment.
proposes for the amendment to become The aircraft operator must send the pe-
effective, unless a shorter period is al- tition for reconsideration to the des-
lowed by the designated official. ignated official. A timely petition for
(2) Within 30 days after receiving a reconsideration stays the effective date
proposed amendment, the designated of the amendment.
333
(3) Upon receipt of a petition for re- (c) Refusal to transport. Each aircraft
consideration, the designated official operator must deny entry into a sterile
either amends or withdraws the notice area and must refuse to transport—
or transmits the petition, together (1) Any individual who does not con-
with any pertinent information, to the sent to a search or inspection of his or
Administrator for reconsideration. The her person in accordance with the sys-
Administrator disposes of the petition tem prescribed in this part; and
within 30 days of receipt by either di- (2) Any property of any individual or
recting the designated official to with- other person who does not consent to a
draw or amend the amendment, or by search or inspection of that property in
affirming the amendment. accordance with the system prescribed
(d) Emergency amendments. If the des- by this part.
ignated official finds that there is an (d) Prohibitions on carrying a weapon,
emergency requiring immediate action explosive, or incendiary. Except as pro-
with respect to safety in air transpor- vided in §§ 1544.219, 1544.221, and 1544.223,
tation or in air commerce that makes no aircraft operator may permit any
procedures in this section contrary to individual to have a weapon, explosive,
or incendiary, on or about the individ-
the public interest, the designated offi-
ual’s person or accessible property
cial may issue an amendment, without
when onboard an aircraft.
the prior notice and comment proce-
(e) Staffing. Each aircraft operator
dures in paragraph (c) of this section,
must staff its security screening check-
effective without stay on the date the
points with supervisory and non-super-
aircraft operator receives notice of it. visory personnel in accordance with
In such a case, the designated official the standards specified in its security
will incorporate in the notice a brief program.
statement of the reasons and findings
for the amendment to be adopted. The § 1544.202 Persons and property on-
aircraft operator may file a petition board an all-cargo aircraft.
for reconsideration under paragraph (c) Each aircraft operator operating
of this section; however, this does not under a full all-cargo program, or a
stay the effective date of the emer- twelve-five program in an all-cargo op-
gency amendment. eration, must apply the security meas-
ures in its security program for persons
Subpart C—Operations who board the aircraft for transpor-
tation, and for their property, to pre-
§ 1544.201 Acceptance and screening of vent or deter the carriage of any unau-
individuals and accessible property. thorized persons, and any unauthorized
(a) Preventing or deterring the carriage weapons, explosives, incendiaries, and
of any explosive, incendiary, or deadly or other destructive devices, items, or
dangerous weapon. Each aircraft oper- substances.
ator must use the measures in its secu- [71 FR 30510, May 26, 2006]
rity program to prevent or deter the
carriage of any weapon, explosive, or § 1544.203 Acceptance and screening of
incendiary on or about each individ- checked baggage.
ual’s person or accessible property be- (a) Preventing or deterring the carriage
fore boarding an aircraft or entering a of any explosive or incendiary. Each air-
sterile area. craft operator must use the procedures,
(b) Screening of individuals and acces- facilities, and equipment described in
sible property. Except as provided in its its security program to prevent or
security program, each aircraft oper- deter the carriage of any unauthorized
ator must ensure that each individual explosive or incendiary onboard air-
entering a sterile area at each preboard craft in checked baggage.
screening checkpoint for which it is re- (b) Acceptance. Each aircraft operator
sponsible, and all accessible property must ensure that checked baggage car-
under that individual’s control, are in- ried in the aircraft is received by its
spected for weapons, explosives, and in- authorized aircraft operator represent-
cendiaries as provided in § 1544.207. ative.
334
(c) Screening of checked baggage. Ex- § 1544.205 Acceptance and screening of

cept as provided in its security pro- cargo.
gram, each aircraft operator must en- (a) Preventing or deterring the carriage
sure that all checked baggage is in- of any explosive or incendiary. Each air-
spected for explosives and incendiaries craft operator operating under a full
before loading it on its aircraft, in ac- program, a full all-cargo program, or a
cordance with § 1544.207. twelve-five program in an all-cargo op-
(d) Control. Each aircraft operator eration, must use the procedures, fa-
must use the procedures in its security cilities, and equipment described in its
program to control checked baggage security program to prevent or deter
that it accepts for transport on an air- the carriage of any unauthorized per-
craft, in a manner that: sons, and any unauthorized explosives,
(1) Prevents the unauthorized car- incendiaries, and other destructive sub-
riage of any explosive or incendiary stances or items in cargo onboard an
aboard the aircraft. aircraft.
(2) Prevents access by persons other (b) Screening and inspection of cargo.
than an aircraft operator employee or Each aircraft operator operating under
a full program or a full all-cargo pro-
its agent.
gram, or a twelve-five program in an
(e) Refusal to transport. Each aircraft
all-cargo operation, must ensure that
operator must refuse to transport any cargo is screened and inspected for any
individual’s checked baggage or prop- unauthorized person, and any unau-
erty if the individual does not consent thorized explosive, incendiary, and
to a search or inspection of that other destructive substance or item as
checked baggage or property in accord- provided in the aircraft operator’s se-
ance with the system prescribed by curity program and § 1544.207, and as
this part. provided in § 1544.239 for operations
(f) Firearms in checked baggage. No under a full program, before loading it
aircraft operator may knowingly per- on its aircraft.
mit any person to transport in checked (c) Control. Each aircraft operator op-
baggage: erating under a full program or a full
(1) Any loaded firearm(s). all-cargo program must use the proce-
(2) Any unloaded firearm(s) unless— dures in its security program to con-
(i) The passenger declares to the air- trol cargo that it accepts for transport
craft operator, either orally or in writ- on an aircraft in a manner that:
ing before checking the baggage that (1) Prevents the carriage of any un-
any firearm carried in the baggage is authorized person, and any unauthor-
unloaded; ized explosive, incendiary, and other
(ii) The firearm is carried in a hard- destructive substance or item in cargo
sided container; onboard an aircraft.
(2) Prevents unescorted access by
(iii) The container in which it is car-
persons other than an authorized air-
ried is locked, and only the individual
craft operator employee or agent, or
checking the baggage retains the key
persons authorized by the airport oper-
or combination; and
ator or host government.
(iv) The checked baggage containing (d) Refusal to transport. Except as oth-
the firearm is carried in an area that is erwise provided in its program, each
inaccessible to passengers, and is not aircraft operator operating under a full
carried in the flightcrew compart- program, a full all-cargo program, or a
ment,. twelve-five program in an all-cargo op-
(3) Any unauthorized explosive or in- eration, must refuse to transport any
cendiary. cargo if the shipper does not consent to
(g) Ammunition. This section does not a search or inspection of that cargo in
prohibit the carriage of ammunition in accordance with the system prescribed
checked baggage or in the same con- by this part.
tainer as a firearm. Title 49 CFR part (e) Acceptance of cargo only from speci-
175 provides additional requirements fied persons. Each aircraft operator op-
governing carriage of ammunition on erating under a full program or a full

aircraft. all-cargo program may accept cargo for
335
air transportation only from the ship- curity program under this part. No air-
per, or from an aircraft operator, for- craft operator may use such a device
eign air carrier, or indirect air carrier contrary to its security program.
operating under a security program (b) Metal detection devices must
under this chapter with a comparable meet the calibration standards estab-
cargo security program, as provided in lished by TSA.
its security program.
(f) Acceptance and screening of cargo § 1544.211 Use of X-ray systems.
outside the United States. For cargo to
(a) TSA authorization required. No air-
be loaded on its aircraft outside the
craft operator may use any X-ray sys-
United States, each aircraft operator
must carry out the requirements of its tem within the United States or under
security program. the aircraft operator’s operational con-
trol outside the United States to in-
[71 FR 30510, May 26, 2006] spect accessible property or checked
baggage, unless specifically authorized
§ 1544.207 Screening of individuals
and property. under its security program. No aircraft
operator may use such a system in a
(a) Applicability of this section. This manner contrary to its security pro-
section applies to the inspection of in- gram. TSA authorizes aircraft opera-
dividuals, accessible property, checked tors to use X-ray systems for inspect-
baggage, and cargo as required under ing accessible property or checked bag-
this part. gage under a security program if the
(b) Locations within the United States aircraft operator shows that—
at which TSA conducts screening. Each
(1) The system meets the standards
aircraft operator must ensure that the
for cabinet X-ray systems primarily for
individuals or property have been in-
the inspection of baggage issued by the
spected by TSA before boarding or
Food and Drug Administration (FDA)
loading on its aircraft. This paragraph
and published in 21 CFR 1020.40;
applies when TSA is conducting screen-
ing using TSA employees or when (2) A program for initial and recur-
using companies under contract with rent training of operators of the sys-
TSA. tem is established, which includes
(c) Aircraft operator conducting screen- training in radiation safety, the effi-
ing. Each aircraft operator must use cient use of X-ray systems, and the
the measures in its security program identification of weapons, explosives,
and in subpart E of this part to inspect and incendiaries; and
the individual or property. This para- (3) The system meets the imaging re-
graph does not apply at locations iden- quirements set forth in its security
tified in paragraphs (b) and (d) of this program using the step wedge specified
section. in American Society for Testing Mate-
(d) Locations outside the United States rials (ASTM) Standard F792–88 (Re-
at which the foreign government conducts approved 1993). This standard is incor-
screening. Each aircraft operator must porated by reference in paragraph (g) of
ensure that all individuals and prop- this section.
erty have been inspected by the foreign (b) Annual radiation survey. No air-
government. This paragraph applies craft operator may use any X-ray sys-
when the host government is contem unless, within the preceding 12 cal-
ducting screening using government endar months, a radiation survey is
employees or when using companies conducted that shows that the system
under contract with the government. meets the applicable performance
standards in 21 CFR 1020.40.
§ 1544.209 Use of metal detection de- (c) Radiation survey after installation
vices. or moving. No aircraft operator may use
(a) No aircraft operator may use a any X-ray system after the system has
metal detection device within the been installed at a screening point or
United States or under the aircraft op- after the system has been moved unless
erator’s operational control outside the a radiation survey is conducted which
United States to inspect persons, un- shows that the system meets the appli-
less specifically authorized under a se- cable performance standards in 21 CFR
336
1020.40. A radiation survey is not re- (f) Radiation survey verification after
quired for an X-ray system that is de- installation or moving. Each aircraft op-
signed and constructed as a mobile erator must maintain at least one copy
unit and the aircraft operator shows of the results of the most recent radi-
that it can be moved without altering ation survey conducted under para-
its performance. graph (b) or (c) of this section and must
(d) Defect notice or modification order. make it available for inspection upon
No aircraft operator may use any X- request by TSA at each of the fol-
ray system that is not in full compli- lowing locations—
ance with any defect notice or modi- (1) The aircraft operator’s principal
fication order issued for that system by business office; and
the FDA, unless the FDA has advised (2) The place where the X-ray system
TSA that the defect or failure to com- is in operation.
ply does not create a significant risk of
(g) Incorporation by reference. The
injury, including genetic injury, to any
American Society for Testing and Ma-
person.
terials (ASTM) Standard F792–88 (Re-
(e) Signs and inspection of photo-
approved 1993), ‘‘Standard Practice for
graphic equipment and film. (1) At loca-
tions at which an aircraft operator Design and Use of Ionizing Radiation
uses an X-ray system to inspect acces- Equipment for the Detection of Items
sible property the aircraft operator Prohibited in Controlled Access
must ensure that a sign is posted in a Areas,’’ is approved for incorporation
conspicuous place at the screening by reference by the Director of the
checkpoint. At locations outside the Federal Register pursuant to 5 U.S.C.
United States at which a foreign gov- 552(a) and l CFR part 51. ASTM Stand-
ernment uses an X-ray system to in- ard F792–88 may be examined at the De-
spect accessible property the aircraft partment of Transportation (DOT)
operator must ensure that a sign is Docket, 400 Seventh Street SW, Room
posted in a conspicuous place at the Plaza 401, Washington, DC 20590, or on
screening checkpoint. DOT’s Docket Management System
(2) At locations at which an aircraft (DMS) web page at http://dms.dot.gov/
operator or TSA uses an X-ray system search (under docket number FAA–2001–
to inspect checked baggage the aircraft 8725). Copies of the standard may be ex-
operator must ensure that a sign is amined also at the National Archives
posted in a conspicuous place where and Records Administration (NARA).
the aircraft operator accepts checked For information on the availability of
baggage. this material at NARA, call 202–741–
(3) The signs required under this 6030, or go to: http://www.archives.gov/
paragraph (e) must notify individuals federallregister/
that such items are being inspected by codeloflfederallregulations/
an X-ray and advise them to remove all ibrllocations.html. In addition, ASTM
X-ray, scientific, and high-speed film Standard F792–88 (Reapproved 1993)
from accessible property and checked may be obtained from the American
baggage before inspection. This sign Society for Testing and Materials, 100
must also advise individuals that they Barr Harbor Drive, West
may request that an inspection be Conshohocken, PA 19428–2959.
made of their photographic equipment (h) Duty time limitations. Each aircraft
and film packages without exposure to operator must comply with the X-ray
an X-ray system. If the X-ray system operator duty time limitations speci-
exposes any accessible property or fied in its security program.
checked baggage to more than one
milliroentgen during the inspection, [67 FR 8364, Feb. 22, 2002, as amended at 69
the sign must advise individuals to re- FR 18803, Apr. 9, 2004]
move film of all kinds from their arti-
cles before inspection. § 1544.213 Use of explosives detection
systems.
(4) If requested by individuals, their
photographic equipment and film pack- (a) Use of explosive detection equip-
ages must be inspected without expo- ment. If TSA so requires by an amend-

sure to an X-ray system. ment to an aircraft operator’s security
337
program, each aircraft operator re- gram. The Ground Security Coordi-
quired to conduct screening under a senator at each airport must conduct the
curity program must use an explosives following daily:
detection system approved by TSA to (1) A review of all security-related
screen checked baggage on inter- functions for which the aircraft oper-
national flights. ator is responsible, for effectiveness
(b) Signs and inspection of photo- and compliance with this part, the air-
graphic equipment and film. (1) At loca- craft operator’s security program, and
tions at which an aircraft operator or applicable Security Directives.
TSA uses an explosives detection sys- (2) Immediate initiation of corrective
tem that uses X-ray technology to in- action for each instance of noncompli-
spect checked baggage the aircraft op- ance with this part, the aircraft opera-
erator must ensure that a sign is post- tor’s security program, and applicable
ed in a conspicuous place where the Security Directives. At foreign airports
aircraft operator accepts checked bag- where such security measures are pro-
gage. The sign must notify individuals vided by an agency or contractor of a
that such items are being inspected by host government, the aircraft operator
an explosives detection system and ad- must notify TSA for assistance in re-
vise them to remove all X-ray, sci- solving noncompliance issues.
entific, and high-speed film from (c) In-flight Security Coordinator. Each
checked baggage before inspection. aircraft operator must designate and
This sign must also advise individuals use the pilot in command as the In-
that they may request that an inspec- flight Security Coordinator for each
tion be made of their photographic domestic and international flight to
equipment and film packages without perform duties specified in the aircraft
exposure to an explosives detection operator’s security program.
system.
(2) If the explosives detection system § 1544.217 Law enforcement personnel.
exposes any checked baggage to more (a) The following applies to oper-
than one milliroentgen during the in- ations at airports within the United
spection the aircraft operator must States that are not required to hold a
post a sign which advises individuals to security program under part 1542 of
remove film of all kinds from their ar- this chapter.
ticles before inspection. If requested by (1) For operations described in
individuals, their photographic equip- § 1544.101(a) each aircraft operator must
ment and film packages must be in- provide for law enforcement personnel
spected without exposure to an explo- meeting the qualifications and stand-
sives detection system. ards specified in §§ 1542.215 and 1542.217
of this chapter.
§ 1544.215 Security coordinators. (2) For operations under a partial
(a) Aircraft Operator Security Coordi- program under § 1544.101(b) and (c), a
nator. Each aircraft operator must des- twelve-five program under § 1544.101(d)
ignate and use an Aircraft Operator Se- and (e), a private charter program
curity Coordinator (AOSC). The AOSC under § 1544.101(f), or a full all-cargo
and any alternates must be appointed program under § 1544.101(h) and (i), each
at the corporate level and must serve aircraft operator must—
as the aircraft operator’s primary con- (i) Arrange for law enforcement per-
tact for security-related activities and sonnel meeting the qualifications and
communications with TSA, as set forth standards specified in § 1542.217 of this
in the security program. Either the chapter to be available to respond to
AOSC, or an alternate AOSC, must be an incident; and
available on a 24-hour basis. (ii) Provide its employees, including
(b) Ground Security Coordinator. Each crewmembers, current information re-
aircraft operator must designate and garding procedures for obtaining law
use a Ground Security Coordinator for enforcement assistance at that airport.
each domestic and international flight (b) The following applies to oper-
departure to carry out the Ground Se- ations at airports required to hold se-
curity Coordinator duties specified in curity programs under part 1542 of this
the aircraft operator’s security pro- chapter. For operations under a partial
338
program under § 1544.101(b) and (c), a (i) The provision of protective duty,
twelve-five program under § 1544.101(d) for instance, assigned to a principal or
and (e), a private charter program advance team, or on travel required to
under § 1544.101(f), or a full all-cargo be prepared to engage in a protective
program under § 1544.101(h) and (i), each function.
aircraft operator must— (ii) The conduct of a hazardous sur-
(1) Arrange with TSA and the airport veillance operation.
operator, as appropriate, for law en- (iii) On official travel required to re-
forcement personnel meeting the quali- port to another location, armed and
fications and standards specified in prepared for duty.
§ 1542.217 of this chapter to be available (iv) Employed as a Federal LEO,
to respond to incidents, and whether or not on official travel, and
(2) Provide its employees, including armed in accordance with an agency-
crewmembers, current information re- wide policy governing that type of
garding procedures for obtaining law travel established by the employing
enforcement assistance at that airport. agency by directive or policy state-
[67 FR 8364, Feb. 22, 2002, as amended at 71 ment.
FR 30510, May 26, 2006] (v) Control of a prisoner, in accord-
ance with § 1544.221, or an armed LEO
§ 1544.219 Carriage of accessible weapon a round trip ticket returning from
ons. escorting, or traveling to pick up, a
(a) Flights for which screening is con- prisoner.
ducted. The provisions of § 1544.201(d), (vi) TSA Federal Air Marshal on duty
with respect to accessible weapons, do status.
not apply to a law enforcement officer (3) The armed LEO must comply with
(LEO) aboard a flight for which screen- the following notification require-
ing is required if the requirements of ments:
this section are met. Paragraph (a) of (i) All armed LEOs must notify the
this section does not apply to a Federal aircraft operator of the flight(s) on
Air Marshal on duty status under which he or she needs to have the
§ 1544.223. weapon accessible at least 1 hour, or in
(1) Unless otherwise authorized by an emergency as soon as practicable,
TSA, the armed LEO must meet the before departure.
following requirements: (ii) Identify himself or herself to the
(i) Be a Federal law enforcement offi- aircraft operator by presenting creden-
cer or a full-time municipal, county, or tials that include a clear full-face pic-
state law enforcement officer who is a ture, the signature of the armed LEO,
direct employee of a government agen- and the signature of the authorizing of-
cy. ficial of the agency, service, or depart-
(ii) Be sworn and commissioned to ment or the official seal of the agency,
enforce criminal statutes or immigra- service, or department. A badge, shield,
tion statutes. or similar device may not be used, or
(iii) Be authorized by the employing accepted, as the sole means of identi-
agency to have the weapon in connec- fication.
tion with assigned duties. (iii) If the armed LEO is a State,
(iv) Has completed the training pro- county, or municipal law enforcement
gram ‘‘Law Enforcement Officers Fly- officer, he or she must present an origi-
ing Armed.’’ nal letter of authority, signed by an
(2) In addition to the requirements of authorizing official from his or her em-
paragraph (a)(1) of this section, the ploying agency, service or department,
armed LEO must have a need to have confirming the need to travel armed
the weapon accessible from the time he and detailing the itinerary of the trav-
or she would otherwise check the weap- el while armed.
on until the time it would be claimed (iv) If the armed LEO is an escort for
after deplaning. The need to have the a foreign official then this paragraph
weapon accessible must be determined (a)(3) may be satisfied by a State De-
by the employing agency, department, partment notification.
or service and be based on one of the (4) The aircraft operator must do the
following: following:
339
(i) Obtain information or documenta- (ii) On their person, if the armed LEO
tion required in paragraphs (a)(3)(ii), is in uniform.
(iii), and (iv) of this section. (2) No individual may place a weapon
(ii) Advise the armed LEO, before in an overhead storage bin.
boarding, of the aircraft operator’s pro-
cedures for carrying out this section. § 1544.221 Carriage of prisoners under
(iii) Have the LEO confirm he/she has the control of armed law enforce-
ment officers.
completed the training program ‘‘Law
Enforcement Officers Flying Armed’’ (a) This section applies as follows:
as required by TSA, unless otherwise (1) This section applies to the trans-
authorized by TSA. port of prisoners under the escort of an
(iv) Ensure that the identity of the armed law enforcement officer.
armed LEO is known to the appro- (2) This section does not apply to the
priate personnel who are responsible carriage of passengers under voluntary
for security during the boarding of the protective escort.
aircraft. (3) This section does not apply to the
(v) Notify the pilot in command and escort of non-violent detainees of the
other appropriate crewmembers, of the Immigration and Naturalization Serv-
location of each armed LEO aboard the ice. This section does not apply to indi-
aircraft. Notify any other armed LEO viduals who may be traveling with a
of the location of each armed LEO, in- prisoner and armed escort, such as the
cluding FAM’s. Under circumstances family of a deportee who is under
described in the security program, the armed escort.
aircraft operator must not close the (b) For the purpose of this section:
doors until the notification is com- (1) ‘‘High risk prisoner’’ means a pris-
plete. oner who is an exceptional escape risk,
(vi) Ensure that the information re- as determined by the law enforcement
quired in paragraphs (a)(3)(i) and (ii) of agency, and charged with, or convicted
this section is furnished to the flight of, a violent crime.
crew of each additional connecting (2) ‘‘Low risk prisoner’’ means any
flight by the Ground Security Coordi- prisoner who has not been designated
nator or other designated agent at each as ‘‘high risk.’’
location. (c) No aircraft operator may carry a
(b) Flights for which screening is not prisoner in the custody of an armed
conducted. The provisions of law enforcement officer aboard an air-
§ 1544.201(d), with respect to accessible craft for which screening is required
weapons, do not apply to a LEO aboard unless, in addition to the requirements
a flight for which screening is not re- in § 1544.219, the following requirements
quired if the requirements of para- are met:
graphs (a)(1), (3), and (4) of this section (1) The agency responsible for control
are met. of the prisoner has determined whether
(c) Alcohol. (1) No aircraft operator the prisoner is considered a high risk
may serve any alcoholic beverage to an or a low risk.
armed LEO. (2) Unless otherwise authorized by
(2) No armed LEO may: TSA, no more than one high risk pris-
(i) Consume any alcoholic beverage oner may be carried on the aircraft.
while aboard an aircraft operated by an (d) No aircraft operator may carry a
aircraft operator. prisoner in the custody of an armed
(ii) Board an aircraft armed if they law enforcement officer aboard an air-
have consumed an alcoholic beverage craft for which screening is required
within the previous 8 hours. unless the following staffing require-
(d) Location of weapon. (1) Any indi- ments are met:
vidual traveling aboard an aircraft (1) A minimum of one armed law en-
while armed must at all times keep forcement officer must control a low
their weapon: risk prisoner on a flight that is sched-
(i) Concealed and out of view, either uled for 4 hours or less. One armed law
on their person or in immediate reach, enforcement officer may control no

if the armed LEO is not in uniform. more than two low risk prisoners.
340
(2) A minimum of two armed law en- (2) The prisoner must be seated in a
forcement officers must control a low seat that is neither located in any pas-
risk prisoner on a flight that is sched- senger lounge area nor located next to
uled for more than 4 hours. Two armed or directly across from any exit and,
law enforcement officers may control when practicable, the aircraft operator
no more than two low risk prisoners. should seat the prisoner in the rear-
(3) For high-risk prisoners: most seat of the passenger cabin.
(i) For one high-risk prisoner on a (g) Each armed law enforcement offi-
flight: A minimum of two armed law cer escorting a prisoner and each air-
enforcement officers must control a craft operator must ensure that the
high risk prisoner. No other prisoners prisoner is restrained from full use of
may be under the control of those two his or her hands by an appropriate de-
armed law enforcement officers. vice that provides for minimum move-
(ii) If TSA has authorized more than ment of the prisoner’s hands, and must
one high-risk prisoner to be on the ensure that leg irons are not used.
flight under paragraph (c)(2) of this (h) No aircraft operator may provide
section, a minimum of one armed law a prisoner under the control of a law
enforcement officer for each prisoner enforcement officer—
and one additional armed law enforce- (1) With food or beverage or metal
ment officer must control the pris- eating utensils unless authorized to do
oners. No other prisoners may be under so by the armed law enforcement offi-
the control of those armed law enforce- cer.
ment officers. (2) With any alcoholic beverage.
(e) An armed law enforcement officer
§ 1544.223 Transportation of Federal
who is escorting a prisoner— Air Marshals.
(1) Must notify the aircraft operator
at least 24 hours before the scheduled (a) A Federal Air Marshal on duty
departure, or, if that is not possible as status may have a weapon accessible
far in advance as possible of the fol- while aboard an aircraft for which
lowing— screening is required.
(b) Each aircraft operator must carry
(i) The identity of the prisoner to be
Federal Air Marshals, in the number
carried and the flight on which it is
and manner specified by TSA, on each
proposed to carry the prisoner; and
scheduled passenger operation, and
(ii) Whether or not the prisoner is
public charter passenger operation des-
considered to be a high risk or a low
ignated by TSA.
risk.
(c) Each Federal Air Marshal must be
(2) Must arrive at the check-in carried on a first priority basis and
counter at least 1 hour before to the without charge while on duty, includ-
scheduled departure. ing positioning and repositioning
(3) Must assure the aircraft operator, flights. When a Federal Air Marshal is
before departure, that each prisoner assigned to a scheduled flight that is
under the control of the officer(s) has canceled for any reason, the aircraft
been searched and does not have on or operator must carry that Federal Air
about his or her person or property Marshal without charge on another
anything that can be used as a weapon. flight as designated by TSA.
(4) Must be seated between the pris- (d) Each aircraft operator must as-
oner and any aisle. sign the specific seat requested by a
(5) Must accompany the prisoner at Federal Air Marshal who is on duty
all times, and keep the prisoner under status. If another LEO is assigned to
control while aboard the aircraft. that seat or requests that seat, the air-
(f) No aircraft operator may carry a craft operator must inform the Federal
prisoner in the custody of an armed Air Marshal. The Federal Air Marshal
law enforcement officer aboard an air- will coordinate seat assignments with
craft unless the following are met: the other LEO.
(1) When practicable, the prisoner (e) The Federal Air Marshal identi-
must be boarded before any other fies himself or herself to the aircraft
boarding passengers and deplaned after operator by presenting credentials that

all other deplaning passengers. include a clear, full-face picture, the
341
signature of the Federal Air Marshal, area agreements with an airport oper-
and the signature of the FAA Adminis- ator.
trator. A badge, shield, or similar de- (c) The aircraft operator must pro-
vice may not be used or accepted as the vide the exclusive area agreement to
sole means of identification. TSA upon request.
(f) The requirements of § 1544.219(a) do (d) Any exclusive area agreements in
not apply for a Federal Air Marshal on effect on November 14, 2001, must meet
duty status. the requirements of this section and
(g) Each aircraft operator must re- § 1542.111 of this chapter no later than
strict any information concerning the November 14, 2002.
presence, seating, names, and purpose
of Federal Air Marshals at any station § 1544.228 Access to cargo: Security
or on any flight to those persons with threat assessments for cargo per-
sonnel in the United States.
an operational need to know.
(h) Law enforcement officers author- This section applies in the United
ized to carry a weapon during a flight States to each aircraft operator oper-
will be contacted directly by a Federal ating under a full program under
Air Marshal who is on that same flight. § 1544.101(a), or a full all-cargo program
under § 1544.101(h) of this part.
§ 1544.225 Security of aircraft and fa- (a) This section applies for each em-
cilities. ployee and agent the aircraft operator
Each aircraft operator must use the authorizes to have unescorted access to
procedures included, and the facilities cargo from the time—
and equipment described, in its secu- (1) The cargo reaches a location
rity program to perform the following where an aircraft operator with a full
control functions with respect to each all-cargo program consolidates or in-
aircraft operation: spects it pursuant to security program
(a) Prevent unauthorized access to requirements until the cargo enters an
areas controlled by the aircraft oper- airport Security Identification Display
ator under an exclusive area agreement Area or is transferred to another TSA-
in accordance with § 1542.111 of this regulated aircraft operator, foreign air
chapter. carrier, or indirect air carrier; or
(b) Prevent unauthorized access to (2) An aircraft operator with a full
each aircraft. program accepts the cargo until the
(c) Conduct a security inspection of cargo:
each aircraft before placing it into pas- (i) Enters an airport Security Identi-
senger operations if access has not fication Display Area;
been controlled in accordance with the (ii) Is removed from the destination
aircraft operator security program and airport; or
as otherwise required in the security (iii) Is transferred to another TSA-
program. regulated aircraft operator, foreign air
(d) When operating under a full pro- carrier, or indirect air carrier.
gram or a full all-cargo program, pre- (b) Before an aircraft operator au-
vent unauthorized access to the oper- thorizes, and before an employee or
ational area of the aircraft while load- agent gains, unescorted access to cargo
ing or unloading cargo. as described in paragraph (a) of this
section, each employee or agent must
[67 FR 8364, Feb. 22, 2002, as amended at 71 successfully complete one of the fol-
FR 30510, May 26, 2006] lowing:
(1) A criminal history records check
§ 1544.227 Exclusive area agreement. under §§ 1542.209, 1544.229, or 1544.230 of
(a) An aircraft operator that has en- this chapter, if the employee or agent
tered into an exclusive area agreement is otherwise required to undergo that
with an airport operator, under check.
§ 1542.111 of this chapter must carry out (2) A Security Threat Assessment
that exclusive area agreement. under part 1540 subpart C of this chap-
(b) The aircraft operator must list in ter. An employee or agent who has suc-
its security program the locations at cessfully completed this Security

which it has entered into exclusive Threat Assessment for one employer
342
need not complete it for another em- cargo functions, are collectively re-
ployer if the employee or agent has ferred to as ‘‘covered functions.’’
been continuously employed in a posi- (1) New unescorted access authority or
tion that requires a Security Threat authority to perform screening functions.
Assessment. (i) Each employee or contract em-
(3) Another Security Threat Assess- ployee covered under a certification
ment approved by TSA as comparable made to an airport operator on or after
to paragraphs (b)(1) or (2) of this sec- December 6, 2001, pursuant to 14 CFR
tion. 107.209(n) in effect prior to November
(c) Each aircraft operator must en- 14, 2001 (see 14 CFR Parts 60 to 139 re-
sure that each individual who has ac- vised as of January 1, 2001) or
cess to its cargo— § 1542.209(n) of this chapter.
(1) Has successfully completed one of (ii) Each individual issued on or after
the checks in paragraph (b) of this sec- December 6, 2001, an aircraft operator
tion; identification media that one or more
(2) Is escorted by an employee or airports accepts as airport-approved
agent who has successfully completed media for unescorted access authority
one of the checks in paragraph (b) of within a security identification display
this section; or area (SIDA), as described in § 1542.205 of
(3) Is authorized to serve as law en- this chapter (referred to as ‘‘unescorted
forcement personnel at that location. access authority’’).
(d) Operators must submit to TSA (iii) Each individual granted author-
the names and other identifying infor- ity to perform the following screening
mation required by TSA of all individ- functions at locations within the
uals required to successfully complete United States (referred to as ‘‘author-
an assessment under paragraph (b) not ity to perform screening functions’’):
later than May 15, 2007, for direct em- (A) Screening passengers or property
ployees and not later than July 15, 2007, that will be carried in a cabin of an air-
for agents. After those dates, the oper- craft of an aircraft operator required to
ators may not allow an individual to screen passengers under this part.
perform a function for which a STA is
(B) Serving as an immediate super-
required, unless the operator has sub-
visor (checkpoint security supervisor
mitted the information for that indi-
(CSS)), and the next supervisory level
vidual to TSA.
(shift or site supervisor), to those indi-
(e) Operators must comply with the
viduals described in paragraphs
requirements of paragraphs (a), (b), and
(a)(1)(iii)(A) or (a)(1)(iii)(C) of this sec-
(c) of this section not later than the
tion.
dates to be specified by TSA in a future
rule in the FEDERAL REGISTER. (C) Screening cargo that will be car-
ried on an aircraft of an aircraft oper-
[71 FR 30511, May 26, 2006; 71 FR 31964, June ator with a full all-cargo program.
2, 2006 as amended at 71 FR 62549, Oct. 25, (2) Current unescorted access authority
2006; 72 FR 13025, Mar. 20, 2007]
or authority to perform screening func-
§ 1544.229 Fingerprint-based criminal tions. (i) Each employee or contract
history records checks (CHRC): employee covered under a certification
Unescorted access authority, au- made to an airport operator pursuant
thority to perform screening func- to 14 CFR 107.31(n) in effect prior to
tions, and authority to perform November 14, 2001 (see 14 CFR Parts 60
checked baggage or cargo func- to 139 revised as of January 1, 2001), or
tions. pursuant to 14 CFR 107.209(n) in effect
This section applies to each aircraft prior to December 6, 2001 (see 14 CFR
operator operating under a full pro- Parts 60 to 139 revised as of January 1,
gram, a private charter program, or a 2001).
full all-cargo program. (ii) Each individual who holds on De-
(a) Scope. The following individuals cember 6, 2001, an aircraft operator
are within the scope of this section. identification media that one or more
Unescorted access authority, authority airports accepts as airport-approved
to perform screening functions, and au- media for unescorted access authority
thority to perform checked baggage or within a security identification display
343
area (SIDA), as described in § 1542.205 of (i) No individual retains unescorted

this chapter. access authority, whether obtained as
(iii) Each individual who is per- a result of a certification to an airport
forming on December 6, 2001, a screen- operator under 14 CFR 107.31(n) in ef-
ing function identified in paragraph fect prior to November 14, 2001 (see 14
(a)(1)(iii) of this section. CFR parts 60 to 139 revised as of Janu-
(3) New authority to perform checked ary 1, 2001), or under 14 CFR 107.209(n)
baggage or cargo functions. Each indi- in effect prior to December 6, 2001 (see
vidual who, on and after February 17, 14 CFR Parts 60 to 139 revised as of
2002, is granted the authority to per- January 1, 2001), or obtained as a result
form the following checked baggage of the issuance of an aircraft operator’s
and cargo functions (referred to as identification media, unless the indi-
‘‘authority to perform checked baggage vidual has been subject to a finger-
or cargo functions’’), except for indi- print-based CHRC for unescorted access
viduals described in paragraph (a)(1) of authority under this part.
this section: (ii) No individual continues to have
(i) Screening of checked baggage or authority to perform screening func-
cargo of an aircraft operator required tions described in paragraph (a)(1)(iii)
to screen passengers under this part, or of this section, unless the individual
serving as an immediate supervisor of has been subject to a fingerprint-based
such an individual. CHRC under this part.
(ii) Accepting checked baggage for (iii) No individual continues to have
transport on behalf of an aircraft oper- authority to perform checked baggage
ator required to screen passengers or cargo functions described in para-
under this part. graph (a)(3) of this section, unless the
(4) Current authority to perform individual has been subject to a finger-
checked baggage or cargo functions. Each print-based CHRC under this part.
individual who holds on February 17, (2) Lookback for individuals with
2002, authority to perform checked bag- unescorted access authority or authority
gage or cargo functions, except for in- to perform screening functions. When a
dividuals described in paragraph (a)(1) CHRC discloses a disqualifying crimi-
or (2) of this section. nal offense for which the conviction or
(b) Individuals seeking unescorted ac- finding was on or after December 6,
cess authority, authority to perform 1991, the aircraft operator must imme-
screening functions, or authority to per- diately suspend that individual’s
form checked baggage or cargo functions. unescorted access authority or author-
Each aircraft operator must ensure ity to perform screening functions.
that each individual identified in para- (3) Lookback for individuals with au-
graph (a)(1) or (3) of this section has thority to perform checked baggage or
undergone a fingerprint-based CHRC cargo functions. When a CHRC discloses
that does not disclose that he or she a disqualifying criminal offense for
has a disqualifying criminal offense, as which the conviction or finding was on
described in paragraph (d) of this sec- or after February 17, 1992, the aircraft
tion, before— operator must immediately suspend
(1) Making a certification to an air- that individual’s authority to perform
port operator regarding that indi- checked baggage or cargo functions.
vidual; (d) Disqualifying criminal offenses. An
(2) Issuing an aircraft operator iden- individual has a disqualifying criminal
tification medium to that individual; offense if the individual has been con-
(3) Authorizing that individual to victed, or found not guilty by reason of
perform screening functions; or insanity, of any of the disqualifying
(4) Authorizing that individual to crimes listed in this paragraph in any
perform checked baggage or cargo jurisdiction during the 10 years before
functions. the date of the individual’s application
(c) Individuals who have not had a for authority to perform covered func-
CHRC—(1) Deadline for conducting a tions, or while the individual has au-
CHRC. Each aircraft operator must en- thority to perform covered functions.
sure that, on and after December 6, The disqualifying criminal offenses are
2002: as follows:
344
(1) Forgery of certificates, false (viii) Bribery; or

marking of aircraft, and other aircraft (ix) Illegal possession of a controlled
registration violation; 49 U.S.C. 46306. substance punishable by a maximum
(2) Interference with air navigation; term of imprisonment of more than 1
49 U.S.C. 46308. year.
(3) Improper transportation of a haz- (27) Violence at international air-
ardous material; 49 U.S.C. 46312. ports; 18 U.S.C. 37.
(4) Aircraft piracy; 49 U.S.C. 46502. (28) Conspiracy or attempt to commit
(5) Interference with flight crew any of the criminal acts listed in this
members or flight attendants; 49 U.S.C. paragraph (d).
46504. (e) Fingerprint application and proc-
(6) Commission of certain crimes essing. (1) At the time of fingerprinting,
aboard aircraft in flight; 49 U.S.C. the aircraft operator must provide the
46506. individual to be fingerprinted a finger-
(7) Carrying a weapon or explosive print application that includes only
aboard aircraft; 49 U.S.C. 46505. the following—
(8) Conveying false information and (i) The disqualifying criminal of-
threats; 49 U.S.C. 46507. fenses described in paragraph (d) of this
(9) Aircraft piracy outside the special section.
aircraft jurisdiction of the United
(ii) A statement that the individual
States; 49 U.S.C. 46502(b).
signing the application does not have a
(10) Lighting violations involving
disqualifying criminal offense.
transporting controlled substances; 49
(iii) A statement informing the indi-
U.S.C. 46315.
vidual that Federal regulations under
(11) Unlawful entry into an aircraft
49 CFR 1544.229 impose a continuing ob-
or airport area that serves air carriers
ligation to disclose to the aircraft op-
or foreign air carriers contrary to es-
erator within 24 hours if he or she is
tablished security requirements; 49
convicted of any disqualifying criminal
U.S.C. 46314.
offense that occurs while he or she has
(12) Destruction of an aircraft or air-
authority to perform a covered func-
craft facility; 18 U.S.C. 32.
tion.
(13) Murder.
(14) Assault with intent to murder. (iv) A statement reading, ‘‘The infor-
(15) Espionage. mation I have provided on this applica-
(16) Sedition. tion is true, complete, and correct to
(17) Kidnapping or hostage taking. the best of my knowledge and belief
(18) Treason. and is provided in good faith. I under-
(19) Rape or aggravated sexual abuse. stand that a knowing and willful false
(20) Unlawful possession, use, sale, statement on this application can be
distribution, or manufacture of an ex- punished by fine or imprisonment or
plosive or weapon. both. (See section 1001 of Title 18
(21) Extortion. United States Code.)’’
(22) Armed or felony unarmed rob- (v) A line for the printed name of the
bery. individual.
(23) Distribution of, or intent to dis- (vi) A line for the individual’s signa-
tribute, a controlled substance. ture and date of signature.
(24) Felony arson. (2) Each individual must complete
(25) Felony involving a threat. and sign the application prior to sub-
(26) Felony involving— mitting his or her fingerprints.
(i) Willful destruction of property; (3) The aircraft operator must verify
(ii) Importation or manufacture of a the identity of the individual through
controlled substance; two forms of identification prior to
(iii) Burglary; fingerprinting, and ensure that the
(iv) Theft; printed name on the fingerprint appli-
(v) Dishonesty, fraud, or misrepresen- cation is legible. At least one of the
tation; two forms of identification must have
(vi) Possession or distribution of sto- been issued by a government authority,
and at least one must include a photo.
len property;
(vii) Aggravated assault; (4) The aircraft operator must:
345
(i) Advise the individual that a copy operator determines, after investiga-
of the criminal record received from tion, that the arrest did not result in a
the FBI will be provided to the indi- disqualifying criminal offense. If there
vidual, if requested by the individual in is no disposition, or if the disposition
writing; and did not result in a conviction or in a
(ii) Identify a point of contact if the finding of not guilty by reason of in-
individual has questions about the re- sanity of one of the offenses listed in
sults of the CHRC. paragraph (d) of this section, the indi-
(5) The aircraft operator must col- vidual is not disqualified under this
lect, control, and process one set of leg- section.
ible and classifiable fingerprints under (3) The aircraft operator may only
direct observation by the aircraft oper- make the determinations required in
ator or a law enforcement officer. paragraphs (g)(1) and (g)(2) of this sec-
(6) Fingerprints may be obtained and tion for individuals for whom it is
processed electronically, or recorded issuing, or has issued, authority to per-
on fingerprint cards approved by the form a covered function; and individ-
FBI and distributed by TSA for that uals who are covered by a certification
purpose. from an aircraft operator under
(7) The fingerprint submission must § 1542.209(n) of this chapter. The air-
be forwarded to TSA in the manner craft operator may not make deter-
specified by TSA. minations for individuals described in
(f) Fingerprinting fees. Aircraft opera- § 1542.209(a) of this chapter.
tors must pay for all fingerprints in a (h) Correction of FBI records and notifi-
form and manner approved by TSA. cation of disqualification. (1) Before
The payment must be made at the des- making a final decision to deny author-
ignated rate (available from the local ity to an individual described in para-
TSA security office) for each set of fin- graph (a)(1) or (3) of this section, the
gerprints submitted. Information about
aircraft operator must advise him or
payment options is available though
her that the FBI criminal record dis-
the designated TSA headquarters point
closes information that would dis-
of contact. Individual personal checks
qualify him or her from receiving or re-
are not acceptable.
taining authority to perform a covered
(g) Determination of arrest status. (1)
function and provide the individual
When a CHRC on an individual de-
with a copy of the FBI record if he or
scribed in paragraph (a)(1) or (3) of this
she requests it.
section discloses an arrest for any dis-
qualifying criminal offense listed in (2) The aircraft operator must notify
paragraph (d) of this section without an individual that a final decision has
indicating a disposition, the aircraft been made to grant or deny authority
operator must determine, after inves- to perform a covered function.
tigation, that the arrest did not result (3) Immediately following the suspen-
in a disqualifying offense before grant- sion of authority to perform a covered
ing authority to perform a covered function, the aircraft operator must
function. If there is no disposition, or if advise the individual that the FBI
the disposition did not result in a con- criminal record discloses information
viction or in a finding of not guilty by that disqualifies him or her from re-
reason of insanity of one of the offenses taining his or her authority, and pro-
listed in paragraph (d) of this section, vide the individual with a copy of the
the individual is not disqualified under FBI record if he or she requests it.
this section. (i) Corrective action by the individual.
(2) When a CHRC on an individual de- The individual may contact the local
scribed in paragraph (a)(2) or (4) of this jurisdiction responsible for the infor-
section discloses an arrest for any dis- mation and the FBI to complete or cor-
qualifying criminal offense without in- rect the information contained in his
dicating a disposition, the aircraft op- or her record, subject to the following
erator must suspend the individual’s conditions—
authority to perform a covered func- (1) For an individual seeking
tion not later than 45 days after ob- unescorted access authority or author-
taining the CHRC unless the aircraft ity to perform screening functions on
346
or after December 6, 2001; or an indi- the determination is not based on the

vidual seeking authority to perform aircraft operator’s certification under
checked baggage or cargo functions on § 1542.209(n) of this chapter.
or after February 17, 2002; the following (3) Other aircraft operators who are
applies: determining whether to grant author-
(i) Within 30 days after being advised ity to perform a covered function under
that the criminal record received from this part.
the FBI discloses a disqualifying crimi- (4) Others designated by TSA.
nal offense, the individual must notify (k) Recordkeeping. The aircraft oper-
the aircraft operator in writing of his ator must maintain the following in-
or her intent to correct any informa- formation.
tion he or she believes to be inac- (1) Investigation conducted before De-
curate. The aircraft operator must ob- cember 6, 2001. The aircraft operator
tain a copy, or accept a copy from the must maintain and control the access
individual, of the revised FBI record or or employment history investigation
a certified true copy of the information files, including the criminal history
from the appropriate court, prior to au- records results portion, for investiga-
thority to perform a covered function. tions conducted before December 6,
(ii) If no notification, as described in 2001.
paragraph (h)(1) of this section, is re- (2) Fingerprint application process on or
ceived within 30 days, the aircraft oper- after December 6, 2001. The aircraft oper-
ator may make a final determination ator must physically maintain, con-
to deny authority to perform a covered trol, and, as appropriate, destroy the
function. fingerprint application and the crimi-
(2) For an individual with unescorted nal record. Only direct aircraft oper-
access authority or authority to per- ator employees may carry out the re-
form screening functions before De- sponsibility for maintaining, control-
cember 6, 2001; or an individual with ling, and destroying criminal records.
authority to perform checked baggage (3) Protection of records—all investiga-
or cargo functions before February 17, tions. The records required by this sec-
2002; the following applies: Within 30 tion must be maintained in a manner
days after being advised of suspension that is acceptable to TSA and in a
because the criminal record received manner that protects the confiden-
from the FBI discloses a disqualifying tiality of the individual.
criminal offense, the individual must (4) Duration—all investigations. The
notify the aircraft operator in writing records identified in this section with
of his or her intent to correct any in- regard to an individual must be main-
formation he or she believes to be inac- tained until 180 days after the termi-
curate. The aircraft operator must ob- nation of the individual’s authority to
tain a copy, or accept a copy from the perform a covered function. When files
individual, of the revised FBI record, or are no longer maintained, the criminal
a certified true copy of the information record must be destroyed.
from the appropriate court, prior to re- (l) Continuing responsibilities. (1) Each
instating authority to perform a cov- individual with unescorted access au-
ered function. thority or the authority to perform
(j) Limits on dissemination of results. screening functions on December 6,
Criminal record information provided 2001, who had a disqualifying criminal
by the FBI may be used only to carry offense in paragraph (d) of this section
out this section and § 1542.209 of this on or after December 6, 1991, must, by
chapter. No person may disseminate January 7, 2002, report the conviction
the results of a CHRC to anyone other to the aircraft operator and surrender
than: the SIDA access medium to the issuer
(1) The individual to whom the record and cease performing screening func-
pertains, or that individual’s author- tions, as applicable.
ized representative. (2) Each individual with authority to
(2) Officials of airport operators who perform a covered function who has a
are determining whether to grant disqualifying criminal offense must re-
unescorted access to the individual port the offense to the aircraft oper-
under part 1542 of this chapter when ator and surrender the SIDA access
347
medium to the issuer within 24 hours of CFR Parts 60 to 139 revised as of Janu-
the conviction or the finding of not ary 1, 2001). The aircraft operator must
guilty by reason of insanity. set forth the audit procedures in its se-
(3) If information becomes available curity program.
to the aircraft operator indicating that
an individual with authority to per-
FR 30511, May 26, 2006]
form a covered function has a possible
conviction for any disqualifying crimi- § 1544.230 Fingerprint-based criminal
nal offense in paragraph (d) of this sec- history records checks (CHRC):
tion, the aircraft operator must deter- Flightcrew members.
mine the status of the conviction. If a
(a) Scope. This section applies to each
disqualifying criminal offense is con-
firmed the aircraft operator must im- flightcrew member for each aircraft op-
mediately revoke any authority to per- erator, except that this section does
form a covered function. not apply to flightcrew members who
(4) Each individual with authority to are subject to § 1544.229.
perform checked baggage or cargo (b) CHRC required. Each aircraft oper-
functions on February 17, 2002, who had ator must ensure that each flightcrew
a disqualifying criminal offense in member has undergone a fingerprint-
paragraph (d) of this section on or after based CHRC that does not disclose that
February 17, 1992, must, by March 25 he or she has a disqualifying criminal
2002, report the conviction to the air- offense, as described in § 1544.229(d), be-
craft operator and cease performing fore allowing that individual to serve
check baggage or cargo functions. as a flightcrew member.
(m) Aircraft operator responsibility. (c) Application and fees. Each aircraft
The aircraft operator must— operator must ensure that each
(1) Designate an individual(s) to be flightcrew member’s fingerprints are
responsible for maintaining and con- obtained and submitted as described in
trolling the employment history inves- § 1544.229 (e) and (f).
tigations for those whom the aircraft (d) Determination of arrest status. (1)
operator has made a certification to an When a CHRC on an individual de-
airport operator under 14 CFR scribed in paragraph (a) of this section
107.209(n) in effect prior to November discloses an arrest for any disquali-
14, 2001 (see 14 CFR Parts 60 to 139 re- fying criminal offense listed in
vised as of January 1, 2001), and for § 1544.229(d) without indicating a dis-
those whom the aircraft operator has position, the aircraft operator must de-
issued identification media that are termine, after investigation, that the
airport-accepted. The aircraft operator arrest did not result in a disqualifying
must designate a direct employee to offense before the individual may serve
maintain, control, and, as appropriate, as a flightcrew member. If there is no
destroy criminal records. disposition, or if the disposition did not
(2) Designate an individual(s) to result in a conviction or in a finding of
maintain the employment history in- not guilty by reason of insanity of one
vestigations of individuals with au- of the offenses listed in § 1544.229(d), the
thority to perform screening functions flight crewmember is not disqualified
whose files must be maintained at the under this section.
location or station where the screener (2) When a CHRC on an individual de-
is performing his or her duties. scribed in paragraph (a) of this section
(3) Designate an individual(s) at ap- discloses an arrest for any disquali-
propriate locations to serve as the con- fying criminal offense listed in
tact to receive notification from indi- § 1544.229(d) without indicating a dis-
viduals seeking authority to perform position, the aircraft operator must
covered functions of their intent to suspend the individual’s flightcrew
seek correction of their FBI criminal member privileges not later than 45
record. days after obtaining a CHRC, unless
(4) Audit the employment history in- the aircraft operator determines, after
vestigations performed in accordance investigation, that the arrest did not
with this section and 14 CFR 108.33 in result in a disqualifying criminal of-
effect prior to November 14, 2001 (see 14 fense. If there is no disposition, or if
348
the disposition did not result in a con- lowing the individual to serve as a
viction or in a finding of not guilty by flightcrew member.
reason of insanity of one of the offenses (2) If no notification, as described in
listed in § 1544.229(d), the flight crew- paragraph (f)(1) of this section, is re-
member is not disqualified under this ceived within 30 days, the aircraft oper-
section. ator may make a final determination
(3) The aircraft operator may only to deny the individual flightcrew mem-
make the determinations required in ber status.
paragraphs (d)(1) and (d)(2) of this sec- (g) Limits on the dissemination of re-
tion for individuals whom it is using, sults. Criminal record information pro-
or will use, as a flightcrew member. vided by the FBI may be used only to
The aircraft operator may not make carry out this section. No person may
determinations for individuals de- disseminate the results of a CHRC to
scribed in § 1542.209(a) of this chapter. anyone other than—
(e) Correction of FBI records and notifi- (1) The individual to whom the record
cation of disqualification. (1) Before pertains, or that individual’s author-
making a final decision to deny the in- ized representative.
dividual the ability to serve as a (2) Others designated by TSA.
flightcrew member, the aircraft oper- (h) Recordkeeping—(1) Fingerprint ap-
ator must advise the individual that plication process. The aircraft operator
the FBI criminal record discloses infor- must physically maintain, control,
mation that would disqualify the indi- and, as appropriate, destroy the finger-
vidual from serving as a flightcrew print application and the criminal
member and provide the individual record. Only direct aircraft operator
with a copy of the FBI record if the in- employees may carry out the responsi-
dividual requests it. bility for maintaining, controlling, and
destroying criminal records.
(2) The aircraft operator must notify
(2) Protection of records. The records
the individual that a final decision has
required by this section must be main-
been made to allow or deny the indi-
tained by the aircraft operator in a
vidual flightcrew member status.
manner that is acceptable to TSA that
(3) Immediately following the denial protects the confidentiality of the indi-
of flightcrew member status, the air- vidual.
craft operator must advise the indi- (3) Duration. The records identified in
vidual that the FBI criminal record this section with regard to an indi-
discloses information that disqualifies vidual must be made available upon re-
him or her from retaining his or her quest by TSA, and maintained by the
flightcrew member status, and provide aircraft operator until 180 days after
the individual with a copy of the FBI the termination of the individual’s
record if he or she requests it. privileges to perform flightcrew mem-
(f) Corrective action by the individual. ber duties with the aircraft operator.
The individual may contact the local When files are no longer maintained,
jurisdiction responsible for the infor- the aircraft operator must destroy the
mation and the FBI to complete or cor- CHRC results.
rect the information contained in his (i) Continuing responsibilities. (1) Each
or her record, subject to the following flightcrew member identified in para-
conditions— graph (a) of this section who has a dis-
(1) Within 30 days after being advised qualifying criminal offense must report
that the criminal record received from the offense to the aircraft operator
the FBI discloses a disqualifying crimi- within 24 hours of the conviction or the
nal offense, the individual must notify finding of not guilty by reason of in-
the aircraft operator in writing of his sanity.
or her intent to correct any informa- (2) If information becomes available
tion he or she believes to be inac- to the aircraft operator indicating that
curate. The aircraft operator must ob- a flightcrew member identified in para-
tain a copy, or accept a copy from the graph (a) of this section has a possible
individual, of the revised FBI record or conviction for any disqualifying crimi-
a certified true copy of the information nal offense in § 1544.229 (d), the aircraft
from the appropriate court, prior to al- operator must determine the status of
349
the conviction. If a disqualifying crimi- (ii) Reporting lost or stolen identi-

nal offense is confirmed, the aircraft fication media.
operator may not assign that indi- (iii) Securing unissued identification
vidual to flightcrew duties in oper- media stock and supplies.
ations identified in paragraph (a). (iv) Auditing the system at a min-
(j) Aircraft operator responsibility. The imum of once a year, or sooner, as nec-
aircraft operator must—(1) Designate a essary to ensure the integrity and ac-
direct employee to maintain, control, countability of all identification
and, as appropriate, destroy criminal media.
records. (v) As specified in the aircraft oper-
(2) Designate an individual(s) to ator security program, revalidate the
maintain the CHRC results. identification system or reissue identi-
(3) Designate an individual(s) at ap- fication media if a portion of all issued,
propriate locations to receive notifica- unexpired identification media are
tion from individuals of their intent to lost, stolen, or unretrieved, including
seek correction of their FBI criminal identification media that are combined
record. with access media.
(k) Compliance date. Each aircraft op- (vi) Ensure that only one identifica-
erator must comply with this section tion medium is issued to an individual
for each flightcrew member described at a time. A replacement identification
in paragraph (a) of this section not medium may only be issued if an indi-
later than December 6, 2002. vidual declares in writing that the me-
dium has been lost or stolen.
[67 FR 8209, Feb. 22, 2002] (b) The aircraft operator may request
approval of a temporary identification
§ 1544.231 Airport-approved and exclu-
sive area personnel identification media system that meets the standards
systems. in § 1542.211(b) of this chapter, or may
arrange with the airport to use tem-
(a) Each aircraft operator must es- porary airport identification media in
tablish and carry out a personnel iden- accordance with that section.
tification system for identification (c) Each aircraft operator must sub-
media that are airport-approved, or mit a plan to carry out this section to
identification media that are issued for TSA no later than May 13, 2002. Each
use in an exclusive area. The system aircraft operator must fully implement
must include the following: its plan no later than November 14,
(1) Personnel identification media 2003.
that—
(i) Convey a full face image, full § 1544.233 Security coordinators and
name, employer, and identification crewmembers, training.
number of the individual to whom the (a) No aircraft operator may use any
identification medium is issued; individual as a Ground Security Coor-
(ii) Indicate clearly the scope of the dinator unless, within the preceding 12-
individual’s access and movement calendar months, that individual has
privileges; satisfactorily completed the security
(iii) Indicate clearly an expiration training as specified in the aircraft op-
date; and erator’s security program.
(iv) Are of sufficient size and appear- (b) No aircraft operator may use any
ance as to be readily observable for individual as an in-flight security coor-
challenge purposes. dinator or crewmember on any domes-
(2) Procedures to ensure that each in- tic or international flight unless, with-
dividual in the secured area or SIDA in the preceding 12-calendar months or
continuously displays the identifica- within the time period specified in an
tion medium issued to that individual Advanced Qualifications Program ap-
on the outermost garment above waist proved under SFAR 58 in 14 CFR part
level, or is under escort. 121, that individual has satisfactorily
(3) Procedures to ensure account- completed the security training re-
ability through the following: quired by 14 CFR 121.417(b)(3)(v) or
(i) Retrieving expired identification 135.331(b)(3)(v), and as specified in the

media. aircraft operator’s security program.
350
(c) With respect to training con- full program or a foreign air carrier
ducted under this section, whenever an under paragraphs § 1546.101(a) or (b) of
individual completes recurrent train- this chapter.
ing within one calendar month earlier, (a) For cargo to be loaded on its air-
or one calendar month after the date it craft in the United States, each air-
was required, that individual is consid- craft operator must have and carry out
ered to have completed the training in a known shipper program in accord-
the calendar month in which it was re- ance with its security program. The
quired. program must—
(1) Determine the shipper’s validity
§ 1544.235 Training and knowledge for
individuals with security-related and integrity as provided in the secu-
duties. rity program;
(2) Provide that the aircraft operator
(a) No aircraft operator may use any
will separate known shipper cargo from
direct or contractor employee to per-
unknown shipper cargo; and
form any security-related duties to
meet the requirements of its security (3) Provide for the aircraft operator
program unless that individual has re- to ensure that cargo is screened or in-
ceived training as specified in its secu- spected as set forth in its security pro-
rity program including their individual gram.
responsibilities in § 1540.105 of this (b) When required by TSA, each air-
chapter. craft operator must submit in a form
(b) Each aircraft operator must en- and manner acceptable to TSA—
sure that individuals performing secu- (1) Information identified in its secu-
rity-related duties for the aircraft op- rity program regarding a known ship-
erator have knowledge of the provi- per, or an applicant for that status; and
sions of this part, applicable Security (2) Corrections and updates of this in-
Directives and Information Circulars, formation upon learning of a change to
the approved airport security program the information specified in paragraph
applicable to their location, and the (b)(1) of this section.
aircraft operator’s security program to [71 FR 30511, May 26, 2006]
the extent that such individuals need
to know in order to perform their du-
ties. Subpart D—Threat and Threat
Response
§ 1544.237 Flight deck privileges.
(a) For each aircraft that has a door § 1544.301 Contingency plan.
to the flight deck, each aircraft oper- Each aircraft operator must adopt a
ator must restrict access to the flight contingency plan and must:
deck as provided in its security pro- (a) Implement its contingency plan
gram. when directed by TSA.
(b) This section does not restrict ac- (b) Ensure that all information con-
cess for an FAA air carrier inspector, tained in the plan is updated annually
an authorized representative of the Na- and that appropriate persons are noti-
tional Transportation Safety Board, or fied of any changes.
for an Agent of the United States Se- (c) Participate in an airport-spon-
cret Service, under 14 CFR parts 121, sored exercise of the airport contin-
125, or 135. This section does not re- gency plan or its equivalent, as pro-
strict access for a Federal Air Marshal vided in its security program.
under this part.
[67 FR 8210, Feb. 22, 2002] § 1544.303 Bomb or air piracy threats.
(a) Flight: Notification. Upon receipt
§ 1544.239 Known shipper program. of a specific and credible threat to the
This section applies to each aircraft security of a flight, the aircraft oper-
operator operating under a full pro- ator must—
gram under § 1544.101(a) of this part and (1) Immediately notify the ground
to each aircraft operator with a TSA and in-flight security coordinators of
security program approved for transfer the threat, any evaluation thereof, and
of cargo to an aircraft operator with a any measures to be applied; and
351
(2) Ensure that the in-flight security ures are necessary to respond to a
coordinator notifies all crewmembers threat assessment or to a specific
of the threat, any evaluation thereof, threat against civil aviation, TSA
and any measures to be applied; and issues a Security Directive setting
(3) Immediately notify the appro- forth mandatory measures.
priate airport operator. (b) Each aircraft operator required to
(b) Flight: Inspection. Upon receipt of have an approved aircraft operator se-
a specific and credible threat to the security program must comply with each
curity of a flight, each aircraft oper- Security Directive issued to the air-
ator must attempt to determine wheth- craft operator by TSA, within the time
er or not any explosive or incendiary is prescribed in the Security Directive for
present by doing the following: compliance.
(1) Conduct a security inspection on (c) Each aircraft operator that re-
the ground before the next flight or, if ceives a Security Directive must—
the aircraft is in flight, immediately (1) Within the time prescribed in the
after its next landing. Security Directive, verbally acknowl-
(2) If the aircraft is on the ground, edge receipt of the Security Directive
immediately deplane all passengers to TSA.
and submit that aircraft to a security (2) Within the time prescribed in the
search. Security Directive, specify the method
(3) If the aircraft is in flight, imme- by which the measures in the Security
diately advise the pilot in command of Directive have been implemented (or
all pertinent information available so will be implemented, if the Security
that necessary emergency action can Directive is not yet effective).
be taken. (d) In the event that the aircraft op-
(c) Ground facility. Upon receipt of a erator is unable to implement the
specific and credible threat to a spe- measures in the Security Directive, the
cific ground facility at the airport, the aircraft operator must submit proposed
aircraft operator must: alternative measures and the basis for
(1) Immediately notify the appro- submitting the alternative measures to
priate airport operator. TSA for approval. The aircraft oper-
(2) Inform all other aircraft operators ator must submit the proposed alter-
and foreign air carriers at the threat- native measures within the time pre-
ened facility. scribed in the Security Directive. The
(3) Conduct a security inspection. aircraft operator must implement any
(d) Notification. Upon receipt of any alternative measures approved by TSA.
bomb threat against the security of a (e) Each aircraft operator that re-
flight or facility, or upon receiving in- ceives a Security Directive may com-
formation that an act or suspected act ment on the Security Directive by sub-
of air piracy has been committed, the mitting data, views, or arguments in
aircraft operator also must notify TSA. writing to TSA. TSA may amend the
If the aircraft is in airspace under Security Directive based on comments
other than U.S. jurisdiction, the air- received. Submission of a comment
craft operator must also notify the ap- does not delay the effective date of the
propriate authorities of the State in Security Directive.
whose territory the aircraft is located (f) Each aircraft operator that re-
and, if the aircraft is in flight, the ap- ceives a Security Directive or Informa-
propriate authorities of the State in tion Circular and each person who re-
whose territory the aircraft is to land. ceives information from a Security Di-
Notification of the appropriate air traf- rective or Information Circular must:
fic controlling authority is sufficient (1) Restrict the availability of the Se-
action to meet this requirement. curity Directive or Information Cir-
cular, and information contained in ei-
§ 1544.305 Security Directives and In- ther document, to those persons with
formation Circulars. an operational need-to-know.
(a) TSA may issue an Information (2) Refuse to release the Security Di-
Circular to notify aircraft operators of rective or Information Circular, and in-
security concerns. When TSA deter- formation contained in either docu-

mines that additional security meas- ment, to persons other than those with
352
an operational need-to-know without (i) Screeners operating X-ray equip-

the prior written consent of TSA. ment must be able to distinguish on
the X-ray monitor the appropriate im-
Subpart E—Screener Qualifica- aging standard specified in the aircraft
tions When the Aircraft Oper- operator’s security program. Wherever
ator Performs Screening the X-ray system displays colors, the
operator must be able to perceive each
§ 1544.401 Applicability of this sub- color;
part. (ii) Screeners operating any screen-
(a) Aircraft operator screening. This ing equipment must be able to distin-
subpart applies when the aircraft oper- guish each color displayed on every
ator is conducting inspections as pro- type of screening equipment and ex-
vided in § 1544.207(c). plain what each color signifies;
(b) Current screeners. As used in this (iii) Screeners must be able to hear
subpart, ‘‘current screener’’ means and respond to the spoken voice and to
each individual who first performed audible alarms generated by screening
screening functions before the date the equipment in an active checkpoint en-
aircraft operator must begin use of the vironment;
new screener training program pro- (iv) Screeners performing physical
vided by TSA. Until November 19, 2002, searches or other related operations
each current screener must comply must be able to efficiently and thor-
with § 1544.403. Until November 19, 2002, oughly manipulate and handle such
each aircraft operator must apply baggage, containers, and other objects
§ 1544.403 for each current screener. On subject to security processing; and
and after November 19, 2002, each such (v) Screeners who perform pat-downs
current screener must comply with or hand-held metal detector searches of
§§ 1544.405 through 1544.411, and each persons must have sufficient dexterity
aircraft operator must comply with and capability to thoroughly conduct
§§ 1544.405 through 1544.411 for such indi- those procedures over a person’s entire
viduals. body.
(c) New screeners. As used in this sub- (3) The ability to read, speak, and
part, ‘‘new screener’’ means each indi- write English well enough to—
vidual who first performs screening (i) Carry out written and oral in-
functions on and after the date the air- structions regarding the proper per-
craft operator must begin use of the formance of screening duties;
new screener training program pro- (ii) Read English language identifica-
vided by TSA. Each aircraft operator tion media, credentials, airline tickets,
must apply §§ 1544.405 through 1544.411 and labels on items normally encoun-
for individuals who first perform tered in the screening process;
screening functions for new screeners. (iii) Provide direction to and under-
stand and answer questions from
§ 1544.403 Current screeners. English-speaking persons undergoing
This section applies to current screening; and
screeners. This section no longer ap- (iv) Write incident reports and state-
plies on and after November 19, 2002. ments and log entries into security
(a) No aircraft operator may use any records in the English language.
person to perform any screening func- (4) Satisfactorily completed all ini-
tion, unless that person has: tial, recurrent, and appropriate special-
(1) A high school diploma, a General ized training required by the aircraft
Equivalency Diploma, or a combina- operator’s security program, except as
tion of education and experience that provided in paragraph (b) of this sec-
the aircraft operator has determined to tion.
have equipped the person to perform (b) The aircraft operator may use a
the duties of the position. person who has not completed the
(2) Basic aptitudes and physical abili- training required by paragraph (a)(4) of
ties including color perception, visual this section during the on-the-job por-
and aural acuity, physical coordination of training to perform security
tion, and motor skills to the following functions provided that the person:
standards: (1) Is closely supervised, and
353
(2) Does not make independent judg- § 1544.405 New screeners: Qualifica-
ments as to whether persons or prop- tions of screening personnel.
erty may enter a sterile area or air- (a) No individual subject to this sub-
craft without further inspection. part may perform a screening function
(c) No aircraft operator must use a unless that individual has the quali-
person to perform a screening function fications described in §§ 1544.405
after that person has failed an oper- through 1544.411. No aircraft operator
ational test related to that function may use such an individual to perform
until that person has successfully com- a screening function unless that person
pleted the remedial training specified complies with the requirements of
in the aircraft operator’s security pro- §§ 1544.405 through 1544.411.
gram. (b) A screener must have a satisfac-
(d) Each aircraft operator must en- tory or better score on a screener selec-
sure that a Ground Security Coordi- tion test administered by TSA.
nator conducts and documents an an- (c) A screener must be a citizen of
nual evaluation of each individual as- the United States.
(d) A screener must have a high
signed screening duties and may con-
school diploma, a General Equivalency
tinue that individual’s employment in
Diploma, or a combination of edu-
a screening capacity only upon the de-
cation and experience that the TSA has
termination by the Ground Security determined to be sufficient for the in-
Coordinator that the individual: dividual to perform the duties of the
(1) Has not suffered a significant dim- position.
inution of any physical ability required (e) A screener must have basic apti-
to perform a screening function since tudes and physical abilities including
the last evaluation of those abilities; color perception, visual and aural acu-
(2) Has a satisfactory record of per- ity, physical coordination, and motor
formance and attention to duty based skills to the following standards:
on the standards and requirements in (1) Screeners operating screening
its security program; and equipment must be able to distinguish
(3) Demonstrates the current knowl- on the screening equipment monitor
edge and skills necessary to cour- the appropriate imaging standard spec-
teously, vigilantly, and effectively per- ified in the aircraft operator’s security
form screening functions. program.
(e) Paragraphs (a) through (d) of this (2) Screeners operating any screening
section do not apply to those screening equipment must be able to distinguish
functions conducted outside the United each color displayed on every type of
States over which the aircraft operator screening equipment and explain what
does not have operational control. In each color signifies.
(3) Screeners must be able to hear
the event the aircraft operator is un-
and respond to the spoken voice and to
able to implement paragraphs (a)
audible alarms generated by screening
through (d) of this section for screen-
equipment at an active screening loca-
ing functions outside the United
tion.
States, the aircraft operator must no- (4) Screeners who perform physical
tify TSA of those aircraft operator sta- searches or other related operations
tions so affected. must be able to efficiently and thor-
(f) At locations outside the United oughly manipulate and handle such
States where the aircraft operator has baggage, containers, cargo, and other
operational control over a screening objects subject to screening.
function, the aircraft operator may use (5) Screeners who perform pat-downs
screeners who do not meet the require- or hand-held metal detector searches of
ments of paragraph (a)(3) of this sec- individuals must have sufficient dex-
tion, provided that at least one rep- terity and capability to thoroughly
resentative of the aircraft operator conduct those procedures over an indi-
who has the ability to functionally vidual’s entire body.
read and speak English is present while (f) A screener must have the ability
the aircraft operator’s passengers are to read, speak, and write English well
undergoing security screening. enough to—
354
(1) Carry out written and oral in- classroom instruction or successfully
structions regarding the proper per- complete a program that TSA deter-
formance of screening duties; mines will train individuals to a level
(2) Read English language identifica- of proficiency equivalent to the level
tion media, credentials, airline tickets, that would be achieved by such class-
documents, air waybills, invoices, and room instruction.
labels on items normally encountered (d) Screener readiness test. Before be-
in the screening process; ginning on-the-job training, a screener
(3) Provide direction to and under- trainee must pass the screener readi-
stand and answer questions from ness test prescribed by TSA.
English-speaking individuals under- (e) On-the-job training and testing.
going screening; and Each screener must complete at least
(4) Write incident reports and state- 60 hours of on-the-job training and
ments and log entries into security must pass an on-the-job training test
records in the English language. prescribed by TSA. No aircraft oper-
(g) At locations outside the United ator may permit a screener trainee to
States where the aircraft operator has exercise independent judgment as a
operational control over a screening screener, until the individual passes an
function, the aircraft operator may use on-the-job training test prescribed by
screeners who do not meet the require- TSA.
ments of paragraph (f) of this section, (f) Knowledge requirements. Each air-
provided that at least one representa- craft operator must ensure that indi-
tive of the aircraft operator who has viduals performing as screeners,
the ability to functionally read and screeners-in-charge, and checkpoint se-
speak English is present while the air- curity supervisors for the aircraft oper-
craft operator’s passengers are under- ator have knowledge of the provisions
going security screening. At such loca- of this part, the aircraft operator’s se-
tions the aircraft operator may use curity program, and applicable Secu-
screeners who are not United States rity Directives and Information Circu-
citizens. lars to the extent necessary to perform
their duties.
§ 1544.407 New screeners: Training, (g) Disclosure of sensitive security infor-
testing, and knowledge of individ- mation during training. The aircraft op-
uals who perform screening func- erator may not permit a trainee to
tions. have access to sensitive security infor-
(a) Training required. Before per- mation during screener training unless
forming screening functions, an indi- a criminal history records check has
vidual must have completed initial, re- successfully been completed for that
current, and appropriate specialized individual in accordance with § 1544.229,
training as specified in this section and and the individual has no disqualifying
the aircraft operator’s security pro- criminal offense.
gram. No aircraft operator may use
any screener, screener in charge, or § 1544.409 New screeners: Integrity of
checkpoint security supervisor unless screener tests.
that individual has satisfactorily com- (a) Cheating or other unauthorized con-
pleted the required training. This para- duct. (1) Except as authorized by the
graph does not prohibit the perform- TSA, no person may—
ance of screening functions during on- (i) Copy or intentionally remove a
the-job training as provided in § 1544.409 test under this part;
(b). (ii) Give to another or receive from
(b) Use of training programs. Training another any part or copy of that test;
for screeners must be conducted under (iii) Give help on that test to or re-
programs provided by TSA. Training ceive help on that test from any person
programs for screeners-in-charge and during the period that the test is being
checkpoint security supervisors must given; or
be conducted in accordance with the (iv) Use any material or aid during
aircraft operator’s security program. the period that the test is being given.
(c) Classroom instruction. Each screen- (2) No person may take any part of
er must complete at least 40 hours of that test on behalf of another person.
355
(3) No person may cause, assist, or (c) Failure of operational test. No air-
participate intentionally in any act craft operator may use an individual to
prohibited by this paragraph (a). perform a screening function after that
(b) Administering and monitoring individual has failed an operational
screener tests. (1) Each aircraft operator test related to that function, until that
must notify TSA of the time and loca- individual has successfully completed
tion at which it will administer each the remedial training specified in the
screener readiness test required under aircraft operator’s security program.
§ 1544.405(d). (d) Annual proficiency review. Each in-
(2) Either TSA or the aircraft oper- dividual assigned screening duties shall
ator must administer and monitor the receive an annual evaluation. The air-
screener readiness test. Where more craft operator must ensure that a
than one aircraft operator or foreign Ground Security Coordinator conducts
and documents an annual evaluation of
air carrier uses a screening location,
each individual who performs screening
TSA may authorize an employee of one
functions. An individual who performs
or more of the aircraft operators or for-
screening functions may not continue
eign air carriers to monitor the test for
to perform such functions unless the
a trainee who will screen at that loca-
evaluation demonstrates that the indi-
tion. vidual—
(3) If TSA or a representative of TSA (1) Continues to meet all qualifica-
is not available to administer and mon- tions and standards required to per-
itor a screener readiness test, the air- form a screening function;
craft operator must provide a direct (2) Has a satisfactory record of per-
employee to administer and monitor formance and attention to duty based
the screener readiness test. on the standards and requirements in
(4) An aircraft operator employee the aircraft operator’s security pro-
who administers and monitors a gram; and
screener readiness test must not be an (3) Demonstrates the current knowl-
instructor, screener, screener-in- edge and skills necessary to cour-
charge, checkpoint security supervisor, teously, vigilantly, and effectively per-
or other screening supervisor. The em- form screening functions.
ployee must be familiar with the proce-
dures for administering and monitoring PART 1546—FOREIGN AIR CARRIER
the test and must be capable of observ- SECURITY
ing whether the trainee or others are
engaging in cheating or other unau- Subpart A—General
thorized conduct.
Sec.
§ 1544.411 New screeners: Continuing 1546.1 Applicability of this part.
qualifications for screening per- 1546.3 TSA inspection authority.
sonnel.
Subpart B—Security Program
(a) Impairment. No individual may
perform a screening function if he or 1546.101 Adoption and implementation.
1546.103 Form, content, and availability of
she shows evidence of impairment,
security program.
such as impairment due to illegal 1546.105 Acceptance of and amendments to
drugs, sleep deprivation, medication, the security program.
or alcohol.
(b) Training not complete. An indi- Subpart C—Operations
vidual who has not completed the 1546.201 Acceptance and screening of indi-
training required by § 1544.405 may be viduals and accessible property.
deployed during the on-the-job portion 1546.202 Persons and property onboard the
of training to perform security func- aircraft.
tions provided that the individual— 1546.203 Acceptance and screening of
(1) Is closely supervised; and checked baggage.
1546.205 Acceptance and screening of cargo.
(2) Does not make independent judg- 1546.207 Screening of individuals and prop-
ments as to whether individuals or erty.
property may enter a sterile area or 1546.209 Use of X-ray systems.

aircraft without further inspection. 1546.211 Law enforcement personnel.
356
1546.213 Access to cargo: Security threat as- (b) At the request of TSA, each for-
sessments for cargo personnel in the eign air carrier must provide evidence
United States. of compliance with this subchapter and
1546.215 Known shipper program. its security program, including copies
of records.
Subpart D—Threat and Threat Response
(c) TSA may enter and be present
1546.301 Bomb or air piracy threats. within secured areas, AOAs, SIDAs,
and other areas where security meas-
Subpart E—Screener Qualifications When ures required by TSA are carried out,
the Foreign Air Carrier Conducts Screening without access media or identification
media issued or approved by an airport
1546.401 Applicability of this subpart. operator or aircraft operator, in order
1546.403 Current screeners.
to inspect or test compliance, or per-
1546.405 New screeners: Qualifications of
screening personnel.
form other such duties as TSA may di-
1546.407 New screeners: Training, testing,
rect.
and knowledge of individuals who per- [67 FR 8377, Feb. 22, 2002, as amended at 71
form screening functions. FR 30511, May 26, 2006]
1546.409 New screeners: Integrity of screener
tests.
1546.411 New screeners: Continuing quali-
Subpart B—Security Program
fications for screening personnel.
§ 1546.101 Adoption and implementa-
AUTHORITY: 49 U.S.C. 114, 5103, 40113, 44901– tion.
44905, 44907, 44914, 44916–44917, 44935–44936, Each foreign air carrier landing or
44942, 46105.
taking off in the United States must
SOURCE: 67 FR 8377, Feb. 22, 2002, unless adopt and carry out, for each scheduled
otherwise noted. and public charter passenger operation
or all-cargo operation, a security pro-
Subpart A—General gram that meets the requirements of—
(a) Section 1546.103(b) and subparts C,
§ 1546.1 Applicability of this part. D, and E of this part for each operation
This part prescribes aviation security with an aircraft having a passenger
seating configuration of 61 or more
rules governing the following:
seats;
(a) The operation within the United
(b) Section 1546.103(b) for each oper-
States of each foreign air carrier hold-
ation that will provide deplaned pas-
ing a permit issued by the Department sengers access to a sterile area, or en-
of Transportation under 49 U.S.C. 41302 plane passengers from a sterile area,
or other appropriate authority issued when that access is not controlled by
by the former Civil Aeronautics Board an aircraft operator using a security
or the Department of Transportation. program under part 1544 of this chapter
(b) Each law enforcement officer fly- or a foreign air carrier using a security
ing armed aboard an aircraft operated program under this part;
by a foreign air carrier described in (c) Section 1546.103(b) for each oper-
paragraph (a) of this section. ation with an airplane having a pas-
senger seating configuration of 31 or
§ 1546.3 TSA inspection authority.
more seats but 60 or fewer seats for
(a) Each foreign air carrier must which TSA has notified the foreign air
allow TSA, at any time or place, to carrier in writing that a threat exists;
make any inspections or tests, includ- and
ing copying records, to determine com- (d) Section 1546.103(c) for each oper-
pliance of an airport operator, aircraft ation with an airplane having a pas-
operator, foreign air carrier, indirect senger seating configuration of 31 or
air carrier, or other airport tenants more seats but 60 or fewer seats, when
with— TSA has not notified the foreign air
(1) This subchapter and any security carrier in writing that a threat exists
program under this subchapter, and with respect to that operation.
part 1520 of this chapter; and (e) Sections 1546.103(b)(2) and (b)(4),
(2) 49 U.S.C. Subtitle VII, as amend- 1546.202, 1546.205(a), (b), (c), (d), (e), and
ed. (f), 1546.207, 1546.211, 1546.213, and
357
1546.301 for each all-cargo operation must include the procedures used to
with an aircraft having a maximum comply with the applicable require-
certificated take-off weight more than ments of § 1546.209 regarding law en-
45,500 kg (100,309.3 lbs.); and forcement officers.
(f) Sections 1546.103(b)(2) and (b)(4), (d) Availability. Each foreign air car-
1546.202, 1546.205(a), (b), (d), and (f), rier required to adopt and use a secu-
1546.211, and 1546.301 for each all-cargo rity program under this part must—
operation with an aircraft having a (1) Restrict the distribution, disclo-
maximum certificated take-off weight sure, and availability of sensitive secu-
more than 12,500 pounds but not more rity information, as defined in part 1520
than 45,500 kg (100,309.3 lbs.). of this chapter, to persons with a need
[67 FR 8377, Feb. 22, 2002, as amended at 71 to know; and
FR 30511, May 26, 2006] (2) Refer requests for sensitive secu-
rity information by other persons to
§ 1546.103 Form, content, and avail- TSA.
ability of security program.
(a) General requirements. The security FR 30512, May 26, 2006]
program must be:
(1) Acceptable to TSA. A foreign air § 1546.105 Acceptance of and amend-
carrier’s security program is accept- ments to the security program.
able only if TSA finds that the security
program provides a level of protection (a) Initial acceptance of security pro-
similar to the level of protection program. Unless otherwise authorized by
vided by U.S. aircraft operators serving TSA, each foreign air carrier required
the same airports. Foreign air carriers to have a security program by this part
must employ procedures equivalent to must submit its proposed program to
those required of U.S. aircraft opera- TSA at least 90 days before the in-
tors serving the same airport, if TSA tended date of passenger operations.
determines that such procedures are TSA will notify the foreign air carrier
necessary to provide a similar level of of the security program’s accept-
protection. ability, or the need to modify the pro-
(2) In English unless TSA requests posed security program for it to be ac-
that the program be submitted in the ceptable under this part, within 30 days
official language of the foreign air car- after receiving the proposed security
rier’s country. program. The foreign air carrier may
(b) Content of security program. Each petition TSA to reconsider the notice
security program required by to modify the security program within
§ 1546.101(a), (b), (c), (e), or (f) must be 30 days after receiving a notice to mod-
designed to— ify.
(1) Prevent or deter the carriage (b) Amendment requested by a foreign
aboard airplanes of any unauthorized air carrier. A foreign air carrier may
explosive, incendiary, or weapon on or submit a request to TSA to amend its
about each individual’s person or ac- accepted security program as follows:
cessible property, except as provided in (1) The proposed amendment must be
§ 1546.201(d), through screening by filed with the designated official at
weapon-detecting procedures or facili- least 45 calendar days before the date it
ties; proposes for the amendment to become
(2) Prohibit unauthorized access to effective, unless a shorter period is al-
airplanes; lowed by the designated official.
(3) Ensure that checked baggage is (2) Within 30 calendar days after re-
accepted by a responsible agent of the ceiving a proposed amendment, the
foreign air carrier; and designated official, in writing, either
(4) Prevent cargo and checked bag- approves or denies the request to
gage from being loaded aboard its air- amend.
planes unless handled in accordance (3) An amendment to a foreign air
with the foreign air carrier’s security carrier security program may be ap-
procedures. proved if the designated official deter-
(c) Law enforcement support. Each se- mines that safety and the public inter-
curity program required by § 1546.101(d) est will allow it, and the proposed
358
amendment provides the level of secu- Administrator for reconsideration. The

rity required under this part. Administrator disposes of the petition
(4) Within 45 calendar days after re- within 30 calendar days of receipt by
ceiving a denial, the foreign air carrier either directing the designated official
may petition the Administrator to re- to withdraw or amend the amendment,
consider the denial. A petition for re- or by affirming the amendment.
consideration must be filed with the (d) Emergency amendments. If the des-
designated official. ignated official finds that there is an
(5) Upon receipt of a petition for re- emergency requiring immediate action
consideration, the designated official with respect to safety in air transpor-
either approves the request to amend tation or in air commerce that makes
or transmits the petition, together procedures in this section contrary to
with any pertinent information, to the the public interest, the designated offi-
Administrator for reconsideration. The cial may issue an amendment, without
Administrator disposes of the petition the prior notice and comment proce-
within 30 calendar days of receipt by dures in paragraph (c) of this section,
either directing the designated official effective without stay on the date the
to approve the amendment, or affirm- foreign air carrier receives notice of it.
ing the denial. In such a case, the designated official
(6) Any foreign air carrier may sub- will incorporate in the notice a brief
mit a group proposal for an amendment statement of the reasons and findings
that is on behalf of it and other air- for the amendment to be adopted. The
craft operators that co-sign the pro- foreign air carrier may file a petition
posal. for reconsideration under paragraph (c)
(c) Amendment by TSA. If the safety of this section; however, this does not
and the public interest require an stay the effectiveness of the emergency
amendment, the designated official amendment.
may amend an accepted security pro-
gram as follows: Subpart C—Operations
(1) The designated official notifies
the foreign air carrier, in writing, of § 1546.201 Acceptance and screening of
the proposed amendment, fixing a pe- individuals and accessible property.
riod of not less than 45 calendar days (a) Preventing or deterring the carriage
within which the foreign air carrier of any explosive, incendiary, or weapon.
may submit written information, Unless otherwise authorized by TSA,
views, and arguments on the amend- each foreign air carrier must use the
ment. measures in its security program to
(2) After considering all relevant ma- prevent or deter the carriage of any ex-
terial, the designated official notifies plosive, incendiary, or weapon on or
the foreign air carrier of any amend- about each individual’s person or ac-
ment adopted or rescinds the notice. If cessible property before boarding an
the amendment is adopted, it becomes aircraft or entering a sterile area.
effective not less than 30 calendar days (b) Screening of individuals and acces-
after the foreign air carrier receives sible property. Except as provided in its
the notice of amendment, unless the security program, each foreign air car-
foreign air carrier petitions the Admin- rier must ensure that each individual
istrator to reconsider no later than 15 entering a sterile area at each preboard
calendar days before the effective date screening checkpoint for which it is re-
of the amendment. The foreign air car- sponsible, and all accessible property
rier must send the petition for recon- under that individual’s control, are in-
sideration to the designated official. A spected for weapons, explosives, and in-
timely petition for reconsideration cendiaries as provided in § 1546.207.
stays the effective date of the amend- (c) Refusal to transport. Each foreign
ment. air carrier conducting an operation for
(3) Upon receipt of a petition for re- which a security program is required
consideration, the designated official by § 1546.101(a), (b), or (c) must refuse to
either amends or withdraws the notice transport—
or transmits the petition, together (1) Any individual who does not con-
with any pertinent information, to the sent to a search or inspection of his or
359
her person in accordance with the sys- aircraft being operated in the United
tem prescribed in this part; and States by that carrier, in checked bag-
(2) Any property of any individual or gage, a firearm, unless:
other person who does not consent to a (1) The person has notified the for-
search or inspection of that property in eign air carrier before checking the
accordance with the system prescribed baggage that the firearm is in the bag-
by this part. gage; and
(d) Explosive, incendiary, weapon: Pro- (2) The baggage is carried in an area
hibitions and exceptions. No individual inaccessible to passengers.
may, while on board an aircraft being
operated by a foreign air carrier in the § 1546.205 Acceptance and screening of
United States, carry on or about his cargo.
person a deadly or dangerous weapon, (a) Preventing or deterring the carriage
either concealed or unconcealed. This of any explosive or incendiary. Each for-
paragraph (d) does not apply to— eign air carrier operating a program
(1) Officials or employees of the state under § 1546.101(a), (b), (e), or (f) must
of registry of the aircraft who are au- use the procedures, facilities, and
thorized by that state to carry arms; equipment described in its security
and program to prevent or deter the car-
(2) Crewmembers and other individ- riage of any unauthorized person, and
uals authorized by the foreign air car- any unauthorized explosive, incen-
rier to carry arms. diary, and other destructive substance
or item in cargo onboard an aircraft.
§ 1546.202 Persons and property on-
board the aircraft. (b) Refusal to transport. Each foreign
air carrier operating a program under
Each foreign air carrier operating § 1546.101(a), (b), (e), or (f) must refuse
under § 1546.101(e) or (f) must apply the to transport any cargo, if the shipper
security measures in its security pro- does not consent to a search or inspec-
gram for persons who board the air- tion of that cargo in accordance with
craft for transportation, and for their the system prescribed by this part.
property, to prevent or deter the car- (c) Control. Each foreign air carrier
riage of any unauthorized persons, and operating a program under § 1546.101(a),
any unauthorized weapons, explosives, (b), or (e) must use the procedures in
incendiaries, and other destructive de- its security program to control cargo
vices, items, or substances. that it accepts for transport on an air-
[71 FR 30512, May, 26, 2006] craft in a manner that—
(1) Prevents the carriage of any un-
§ 1546.203 Acceptance and screening of authorized person, and any unauthor-
checked baggage. ized explosive, incendiary, and other
(a) Preventing or deterring the carriage destructive substance or item onboard
of any explosive or incendiary. Each for- the aircraft.
eign air carrier must use the proce- (2) Prevents access by unauthorized
dures, facilities, and equipment de- persons other than an authorized for-
scribed in its security program to pre- eign air carrier employee or agent, or
vent or deter the carriage of any unau- persons authorized by the airport oper-
thorized explosive or incendiary on- ator or host government.
board aircraft in checked baggage. (d) Screening and inspection of cargo in
(b) Refusal to transport. Each foreign the United States. Each foreign air car-
air carrier must refuse to transport rier operating a program under
any individual’s checked baggage or § 1546.101(a), (b), (e), or (f) must ensure
property if the individual does not con- that, as required in its security pro-
sent to a search or inspection of that gram, cargo is screened and inspected
checked baggage or property in accord- for any unauthorized persons, and any
ance with the system prescribed by unauthorized explosives, incendiaries,
this part. and other destructive substances or
(c) Firearms in checked baggage. No items as provided in the foreign air
foreign air carrier may knowingly per- carrier’s security program, and
mit any person to transport, nor may § 1546.207, and as provided in § 1546.213
any person transport, while aboard an for operations under § 1546.101(a) or (b)
360
before loading it on its aircraft in the riers to use X-ray systems for inspect-
United States. ing accessible property or checked bag-
(e) Acceptance of cargo in the United gage under a security program if the
States only from specified persons. Each foreign air carrier shows that—
foreign air carrier operating a program (1) The system meets the standards
under § 1546.101(a), (b), or (e) of this for cabinet X-ray systems primarily for
part may accept cargo in the United the inspection of baggage issued by the
States only from the shipper, or from Food and Drug Administration (FDA)
an aircraft operator, foreign air car- and published in 21 CFR 1020.40;
rier, or indirect air carrier operating (2) A program for initial and recur-
under a security program under this rent training of operators of the sys-
chapter with a comparable cargo secu- tem is established, which includes
rity program as provided in its security training in radiation safety, the effi-
program. cient use of X-ray systems, and the
(f) Acceptance of cargo to be loaded for identification of weapons, explosives,
transport to the United States. Each for- and incendiaries; and
eign air carrier subject to this part (3) The system meets the imaging re-
that accepts cargo to be loaded on its quirements set forth in its security
aircraft for transport to the United program using the step wedge specified
States must carry out the require- in American Society for Testing Mate-
ments of its security program. rials (ASTM) Standard F792–88 (Re-
[71 FR 30512, May 26, 2006] approved 1993). This standard is incor-
porated by reference in paragraph (g) of
§ 1546.207 Screening of individuals this section.
and property. (b) Annual radiation survey. No for-
(a) Applicability of this section. This eign air carrier may use any X-ray sys-
section applies to the inspection of in- tem unless, within the preceding 12 cal-
dividuals, accessible property, checked endar months, a radiation survey is
baggage, and cargo as required under conducted that shows that the system
this part. meets the applicable performance
(b) Locations within the United States standards in 21 CFR 1020.40.
at which TSA conducts screening. As re- (c) Radiation survey after installation
quired in its security program, each or moving. No foreign air carrier may
foreign air carrier must ensure that all use any X-ray system after the system
individuals or property have been in- has been installed at a screening point
spected by TSA before boarding or or after the system has been moved un-
loading on its aircraft. This paragraph less a radiation survey is conducted
applies when TSA is conducting screen- which shows that the system meets the
ing using TSA employees or when applicable performance standards in 21
using companies under contract with CFR 1020.40. A radiation survey is not
TSA. required for an X-ray system that is
(c) Foreign air carrier conducting designed and constructed as a mobile
screening. Each foreign air carrier must unit and the foreign air carrier shows
use the measures in its security pro- that it can be moved without altering
gram to inspect the individual or prop- its performance.
erty. This paragraph does not apply at (d) Defect notice or modification order.
locations identified in paragraphs (b) of No foreign air carrier may use any X-
this section. ray system that is not in full compli-
ance with any defect notice or modi-
§ 1546.209 Use of X-ray systems. fication order issued for that system by
(a) TSA authorization required. No for- the FDA, unless the FDA has advised
eign air carrier may use any X-ray sys- TSA that the defect or failure to com-
tem within the United States to screen ply does not create a significant risk of
accessible property or checked bag- injury, including genetic injury, to any
gage, unless specifically authorized person.
under its security program. No foreign (e) Signs and inspection of photo-
air carrier may use such a system in a graphic equipment and film. (1) At loca-
manner contrary to its security pro- tions at which a foreign air carrier uses
gram. TSA authorizes foreign air car- an X-ray system to inspect accessible
361
property the foreign air carrier must Docket, 400 Seventh Street SW, Room
ensure that a sign is posted in a con- Plaza 401, Washington, DC 20590, or on
spicuous place at the screening check- DOT’s Docket Management System
point. (DMS) web page at http://dms.dot.gov/
(2) At locations at which a foreign air search (under docket number FAA–2001–
carrier or TSA uses an X-ray system to 8725). Copies of the standard may be ex-
inspect checked baggage the foreign air amined also at the National Archives
carrier must ensure that a sign is post- and Records Administration (NARA).
ed in a conspicuous place where the For information on the availability of
foreign air carrier accepts checked bag- this material at NARA, call 202–741–
gage. 6030, or go to: http://www.archives.gov/
(3) The signs required under this federallregister/
paragraph must notify individuals that codeloflfederallregulations/
such items are being inspected by an X- ibrllocations.html. In addition, ASTM
ray and advise them to remove all X- Standard F792–88 (Reapproved 1993)
ray, scientific, and high-speed film may be obtained from the American
from accessible property and checked Society for Testing and Materials, 100
baggage before inspection. This sign Barr Harbor Drive, West
must also advise individuals that they Conshohocken, PA 19428–2959.
may request that an inspection be (h) Each foreign air carrier must
made of their photographic equipment comply with the X-ray operator duty
and film packages without exposure to time limitations specified in its secu-
an X-ray system. If the X-ray system rity program.
exposes any accessible property or [67 FR 8377, Feb. 22, 2002, as amended at 69
checked baggage to more than one FR 18803, Apr. 9, 2004]
milliroentgen during the inspection,
the sign must advise individuals to re- § 1546.211 Law enforcement personnel.
move film of all kinds from their arti- (a) At airports within the United
cles before inspection. States not governed by part 1542 of this
(4) If requested by individuals, their chapter, each foreign air carrier engag-
photographic equipment and film packing in public charter passenger oper-
ages must be inspected without expo- ations must—
sure to an X-ray system. (1) When using a screening system re-
(f) Radiation survey verification after quired by § 1546.101(a), (b), or (c), pro-
installation or moving. Each foreign air vide for law enforcement officers meet-
carrier must maintain at least one ing the qualifications and standards,
copy of the results of the most recent and in the number and manner, speci-
radiation survey conducted under para- fied in part 1542; and
graph (b) or (c) of this section and must (2) When using an airplane having a
make it available for inspection upon passenger seating configuration of 31 or
request by TSA at each of the fol- more but 60 or fewer seats for which a
lowing locations— screening system is not required by
(1) The foreign air carrier’s principal § 1546.101(a), (b), or (c), arrange for law
business office; and enforcement officers meeting the quali-
(2) The place where the X-ray system fications and standards specified in
is in operation. part 1542 of this chapter to be available
(g) Incorporation by reference. The to respond to an incident and provide
American Society for Testing and Ma- to appropriate employees, including
terials (ASTM) Standard F792–88 (Re- crewmembers, current information
approved 1993), ‘‘Standard Practice for with respect to procedures for obtain-
Design and Use of Ionizing Radiation ing law enforcement assistance at that
Equipment for the Detection of Items airport.
Prohibited in Controlled Access (b) At airports governed by part 1542
Areas,’’ is approved for incorporation of this chapter, each foreign air carrier
by reference by the Director of the engaging in scheduled passenger oper-
Federal Register pursuant to 5 U.S.C. ations or public charter passenger op-
552(a) and 1 CFR part 51. ASTM Stand- erations when using an airplane with a
ard F792–88 may be examined at the De- passenger seating configuration of 31 or

partment of Transportation (DOT) more and 60 or fewer seats under
362
§ 1546.101(c), must arrange for law en- ployer, if the employee or agent has
forcement personnel meeting the quali- been continuously employed in a posi-
fications and standards specified in tion that requires a Security Threat
part 1542 of this chapter to be available Assessment.
to respond to an incident and provide (3) Another Security Threat Assess-
to appropriate employees, including ment approved by TSA as comparable
crewmembers, current information to paragraphs (b)(1) or (2) of this sec-
with respect to procedures for obtain- tion.
ing law enforcement assistance at that (c) Each foreign air carrier must en-
airport. sure that each individual who has ac-
cess to its cargo—
§ 1546.213 Access to cargo: Security (1) Has successfully completed one of
threat assessments for cargo per-
sonnel in the United States. the checks in paragraph (b) of this sec-
tion;
This section applies in the United (2) Is escorted by an employee or
States to each foreign air carrier oper- agent who has successfully completed
ating under § 1546.101(a), (b), or (e). one of the checks in paragraph (b) of
(a) This section applies to each em- this section; or
ployee or agent in the United States (3) Is authorized to serve as law en-
whom the foreign air carrier authorizes forcement personnel at that location.
to have unescorted access to cargo (d) Operators must submit to TSA
from the time— the names and other identifying infor-
(1) The cargo reaches a location mation required by TSA of all individ-
where a foreign air carrier operating uals required to successfully complete
under § 1546.101(e) consolidates or in- an assessment under paragraph (b) not
spects it pursuant to security program later than May 15, 2007, for direct em-
requirements, until the cargo enters an ployees and not later than July 15, 2007,
airport Security Identification Display for agents. After those dates, the oper-
Area or is transferred to another TSA- ators may not allow an individual to
regulated aircraft operator, foreign air perform a function for which a STA is
carrier, or indirect air carrier, or required, unless the operator has sub-
(2) A foreign air carrier under mitted the information for that indi-
§ 1546.101(a) or (b) accepts the cargo, vidual to TSA.
until the cargo—
(e) Operators must comply with the
(i) Enters an airport Security Identi- requirements of paragraphs (a), (b), and
fication Display Area; (c) of this section not later than the
(ii) Is removed from the destination dates to be specified by TSA in a future
airport; or rule in the FEDERAL REGISTER.
(iii) Is transferred to another TSA-
regulated aircraft operator, foreign air [71 FR 30512, May 26, 2006; 71 FR 31964, June
carrier, or indirect air carrier. 2, 2006, as amended at 71 FR 62549, Oct. 25,
(b) Before a foreign air carrier au- 2006; 72 FR 13026, Mar. 20, 2007]
thorizes, and before an employee or
§ 1546.215 Known shipper program.
agent gains, unescorted access to cargo
as described in paragraph (a) of this This section applies to each foreign
section, each employee or agent must air carrier operating a program under
successfully complete one of the fol- § 1546.101(a) or (b).
lowing: (a) For cargo to be loaded on its air-
(1) A criminal history records check craft in the United States, each foreign
under §§ 1542.209, 1544.229, or 1544.230 of air carrier must have and carry out a
this chapter, if the employee or agent known shipper program in accordance
is otherwise required to undergo that with its security program. The pro-
check. gram must—
(2) A Security Threat Assessment (1) Determine the shipper’s validity
under part 1540 subpart C of this chap- and integrity as provided in the foreign
ter. An employee or agent who has suc- air carrier’s security program;
cessfully completed this Security (2) Provide that the foreign air car-
Threat Assessment for one employer rier will separate known shipper cargo
need not complete it for another em- from unknown shipper cargo; and
363
(3) Provide for the foreign air carrier Subpart E—Screener Qualifica-
to ensure that cargo is screened or in- tions When the Foreign Air
spected as set forth in its security pro-
gram.
Carrier Conducts Screening
(b) When required by TSA, each for- § 1546.401 Applicability of this sub-
eign air carrier must submit in a form part.
and manner acceptable to TSA—
(1) Information identified in its secu- (a) Foreign air carrier screening. This
rity program regarding an applicant to subpart applies when the foreign air
be a known shipper or a known shipper; carrier is conducting inspections as
and provided in § 1546.207(c).
(2) Corrections and updates to the in- (b) Current screeners. As used in this
formation upon learning of a change to subpart, ‘‘current screener’’ means
the information specified in paragraph each individual who first performed
(b)(1) of this section. screening functions before the date the
[71 FR 30512, May 26, 2006]
foreign air carrier must begin use of
the new screener training program pro-
vided by TSA. Until November 19, 2002,
Subpart D—Threat and Threat each current screener must comply
Response with § 1546.403. Until November 19, 2002,
§ 1546.301 Bomb or air piracy threats. each foreign air carrier must apply
§ 1546.403 for each current screener. On
No foreign air carrier may land or and after November 19, 2002, each cur-
take off an airplane in the United rent screener must comply with
States after receiving a bomb or air pi- §§ 1546.405 through 1546.411, and each
racy threat against that airplane, un- foreign air carrier must comply with
less the following actions are taken: §§ 1546.405 through 1546.411 for such indi-
(a) If the airplane is on the ground
viduals.
when a bomb threat is received and the
next scheduled flight of the threatened (c) New screeners. As used in this sub-
airplane is to or from a place in the part, ‘‘new screener’’ means each indi-
United States, the foreign air carrier vidual who first performs screening
ensures that the pilot in command is functions on and after TSA orders the
advised to submit the airplane imme- foreign air carrier to begin use of the
diately for a security inspection and an new screener training program pro-
inspection of the airplane is conducted vided by TSA. Each foreign air carrier
before the next flight. must apply §§ 1546.405 through 1546.411
(b) If the airplane is in flight to a for new screeners.
place in the United States when a
§ 1546.403 Current screeners.
bomb threat is received, the foreign air
carrier ensures that the pilot in com- The foreign air carrier must ensure
mand is advised immediately to take that each current screener it uses to
the emergency action necessary under perform screening functions meet the
the circumstances and a security in- qualifications and training standards
spection of the airplane is conducted set forth in its security program. This
immediately after the next landing. section is no longer effective on and
(c) If information is received of a after November 19, 2002.
bomb or air piracy threat against an
airplane engaged in an operation speci- § 1546.405 New screeners: Qualifica-
fied in paragraph (a) or (b) of this sections of screening personnel.
tion, the foreign air carrier ensures (a) No individual subject to this sub-
that notification of the threat is given part may perform a screening function
to the appropriate authorities of the unless that individual has the quali-
State in whose territory the airplane is fications described in §§ 1546.405
located or, if in flight, the appropriate through 1546.411. No foreign air carrier
authorities of the State in whose terri- may use such an individual to perform
tory the airplane is to land. a screening function unless that person
[67 FR 8377, Feb. 22, 2002, as amended at 71 complies with the requirements of
FR 30513, May 26, 2006] §§ 1546.405 through 1546.411.
364
(b) A screener must have a satisfac- English-speaking individuals under-

tory or better score on a screener selec- going screening; and
tion test administered by TSA. (4) Write incident reports and state-
(c) A screener must be a citizen of ments and log entries into security
the United States. records in the English language.
(d) A screener must have a high (g) At locations outside the United
school diploma, a General Equivalency States that are the last point of depar-
Diploma, or a combination of edu- ture to the United States, and where
cation and experience that TSA has de- the foreign air carrier has operational
termined to be sufficient for the indi- control over a screening function, the
vidual to perform the duties of the po- foreign air carrier may use screeners
sition. who do not meet the requirements of
(e) A screener must have basic apti- paragraph (f) of this section. At such
tudes and physical abilities including locations the foreign air carrier may
color perception, visual and aural acu- use screeners who are not United
ity, physical coordination, and motor States citizens.
skills to the following standards:
§ 1546.407 New screeners: Training,
(1) Screeners operating screening testing, and knowledge of individ-
equipment must be able to distinguish uals who perform screening func-
on the screening equipment monitor tions.
the appropriate imaging standard spec-
ified in the foreign air carrier’s secu- (a) Training required. Before per-
rity program. forming screening functions, an indi-
vidual must have completed initial, re-
(2) Screeners operating any screening
current, and appropriate specialized
equipment must be able to distinguish
training as specified in this section and
each color displayed on every type of
the foreign air carrier’s security pro-
screening equipment and explain what
gram. No foreign air carrier may use
each color signifies.
any screener, screener in charge, or
(3) Screeners must be able to hear checkpoint security supervisor unless
and respond to the spoken voice and to that individual has satisfactorily com-
audible alarms generated by screening pleted the required training. This para-
equipment at an active screening loca- graph does not prohibit the perform-
tion. ance of screening functions during on-
(4) Screeners who perform physical the-job training as provided in
searches or other related operations § 1544.409(b).
must be able to efficiently and thor- (b) Use of training programs. Training
oughly manipulate and handle such for screeners must be conducted under
baggage, containers, cargo, and other programs provided by TSA. Training
objects subject to screening. programs for screeners-in-charge and
(5) Screeners who perform pat-downs checkpoint security supervisors must
or hand-held metal detector searches of be conducted in accordance with the
individuals must have sufficient dex- foreign air carrier’s security program.
terity and capability to thoroughly (c) Classroom instruction. Each screen-
conduct those procedures over an indi- er must complete at least 40 hours of
vidual’s entire body. classroom instruction or successfully
(f) A screener must have the ability complete a program that TSA deter-
to read, speak, and write English well mines will train individuals to a level
enough to— of proficiency equivalent to the level
(1) Carry out written and oral in- that would be achieved by such class-
structions regarding the proper per- room instruction.
formance of screening duties; (d) Screener readiness test. Before be-
(2) Read English language identifica- ginning on-the-job training, a screener
tion media, credentials, airline tickets, trainee must pass the screener readi-
documents, air waybills, invoices, and ness test prescribed by TSA.
labels on items normally encountered (e) On-the-job training and testing.
in the screening process; Each screener must complete at least
(3) Provide direction to and under- 60 hours of on-the-job training and

stand and answer questions from must pass an on-the-job training test
365
prescribed by TSA. No foreign air car- employee to administer and monitor

rier may permit a screener trainee to the screener readiness test.
exercise independent judgment as a (4) An foreign air carrier employee
screener, until the individual passes an who administers and monitors a
on-the-job training test prescribed by screener readiness test must not be an
TSA. instructor, screener, screener-in-
(f) Knowledge requirements. Each for- charge, checkpoint security supervisor,
eign air carrier must ensure that indi- or other screening supervisor. The em-
viduals performing as screeners, ployee must be familiar with the proce-
screeners-in-charge, and checkpoint se- dures for administering and monitoring
curity supervisors for the foreign air the test and must be capable of observ-
carrier have knowledge of the provi- ing whether the trainee or others are
sions of this part, the foreign air car- engaging in cheating or other unau-
rier’s security program, and applicable thorized conduct.
emergency amendments to the foreign
air carrier’s security program to the § 1546.411 New screeners: Continuing
extent necessary to perform their du- qualifications for screening per-
ties. sonnel.
(a) Impairment. No individual may
§ 1546.409 New screeners: Integrity of
screener tests. perform a screening function if he or
she shows evidence of impairment,
(a) Cheating or other unauthorized con- such as impairment due to illegal
duct. (1) Except as authorized by TSA, drugs, sleep deprivation, medication,
no person may— or alcohol.
(i) Copy or intentionally remove a
(b) Training not complete. An indi-
test under this part;
vidual who has not completed the
(ii) Give to another or receive from
training required by § 1546.405 may be
another any part or copy of that test;
deployed during the on-the-job portion
(iii) Give help on that test to or re-
of training to perform security func-
ceive help on that test from any person
tions provided that the individual—
during the period that the test is being
given; or (1) Is closely supervised; and
(iv) Use any material or aid during (2) Does not make independent judg-
the period that the test is being given. ments as to whether individuals or
(2) No person may take any part of property may enter a sterile area or
that test on behalf of another person. aircraft without further inspection.
(3) No person may cause, assist, or (c) Failure of operational test. No for-
participate intentionally in any act eign air carrier may use an individual
prohibited by this paragraph (a). to perform a screening function after
(b) Administering and monitoring that individual has failed an oper-
screener tests. (1) Each foreign air car- ational test related to that function,
rier must notify TSA of the time and until that individual has successfully
location at which it will administer completed the remedial training speci-
each screener readiness test required fied in the foreign air carrier’s security
under § 1544.405 (d). program.
(2) Either TSA or the foreign air car- (d) Annual proficiency review. Each in-
rier must administer and monitor the dividual assigned screening duties shall
screener readiness test. Where more receive an annual evaluation. The for-
than one foreign air carrier or foreign eign air carrier must conduct and docu-
air carrier uses a screening location, ment an annual evaluation of each in-
TSA may authorize an employee of one dividual who performs screening func-
or more of the foreign air carriers or tions. An individual who performs
foreign air carriers to monitor the test screening functions may not continue
for a trainee who will screen at that lo- to perform such functions unless the
cation. evaluation demonstrates that the indi-
(3) If TSA or a representative of TSA vidual—
is not available to administer and mon- (1) Continues to meet all qualifica-
itor a screener readiness test, the for- tions and standards required to per-
eign air carrier must provide a direct form a screening function;
366
(2) Has a satisfactory record of per- (2) 49 U.S.C. Subtitle VII, as amend-
formance and attention to duty based ed.
on the standards and requirements in (b) At the request of TSA, each indi-
the foreign air carrier’s security pro- rect air carrier must provide evidence
gram; and of compliance with this subchapter and
(3) Demonstrates the current knowl- its indirect air carrier security pro-
edge and skills necessary to cour- gram, including copies of records.
teously, vigilantly, and effectively per- (c) TSA may enter and be present
form screening functions. within areas where security measures
required by TSA are carried out with-
PART 1548—INDIRECT AIR CARRIER out access media or identification
SECURITY media issued or approved by the indi-
rect air carrier, an airport operator, or
Sec. aircraft operator, in order to inspect or
1548.1 Applicability of this part. test compliance, or perform other such
1548.3 TSA inspection authority. duties as TSA may direct.
1548.5 Adoption and implementation of the
security program. [67 FR 8382, Feb. 22, 2002, as amended at 71
1548.7 Approval, amendment, annual re- FR 30513, May 26, 2006]
newal, and withdrawal of approval of the
security program. § 1548.5 Adoption and implementation
1548.9 Acceptance of cargo. of the security program.
1548.11 Training and knowledge for individ-
uals with security-related duties.
(a) Security program required. No indi-
1548.13 Security coordinators. rect air carrier may offer cargo to an
1548.15 Access to Cargo: Security threat as- aircraft operator operating under a full
sessments for individuals having program or a full all-cargo program
unescorted access to cargo. specified in part 1544 of this sub-
1548.16 Security threat assessments for each chapter, or to a foreign air carrier op-
proprietor, general partner, officer, di- erating under a program under
rector, and certain owners of the entity. § 1546.101(a), (b), or (e) of this sub-
1548.17 Known shipper program.
1548.19 Security Directives and Information
chapter, unless that indirect air carrier
Circulars. has and carries out an approved secu-
rity program under this part. Each in-
AUTHORITY: 49 U.S.C. 114, 5103, 40113, 44901– direct air carrier that does not cur-
44905, 44913–44914, 44916–44917, 44932, 44935–
44936, 46105.
rently hold a security program under
part 1548, and that offers cargo to an
SOURCE: 67 FR 8382, Feb. 22, 2002, unless aircraft operator operating under a full
otherwise noted. all-cargo program or a comparable op-
§ 1548.1 Applicability of this part. eration by a foreign air carrier must
comply with this section not later than
This part prescribes aviation security December 1, 2006.
rules governing each indirect air car- (b) General requirements. (1) The secu-
rier engaged indirectly in the air trans- rity program must provide for the se-
portation of property on aircraft. curity of the aircraft, as well as that of
[67 FR 8382, Feb. 22, 2002, as amended at 71 persons and property traveling in air
FR 33255, June 8, 2006] transportation against acts of criminal
violence and air piracy and against the
§ 1548.3 TSA inspection authority. introduction into the aircraft of any
(a) Each indirect air carrier must unauthorized person, and any unau-
allow TSA, at any time or place, to thorized explosive, incendiary, and
make any inspections or tests, includ- other destructive substance or item as
ing copying records, to determine com- provided in the indirect air carrier’s se-
pliance of an airport operator, aircraft curity program. This requirement ap-
operator, foreign air carrier, indirect plies—
air carrier, or airport tenant with— (i) From the time the indirect air
(1) This subchapter, and any security carrier accepts the cargo to the time it
program approved under this sub- transfers the cargo to an entity that is
chapter, and part 1520 of this chapter; not an employee or agent of the indi-
and rect air carrier;
367
(ii) While the cargo is stored, en curity program in a form and a manner
route, or otherwise being handled by an prescribed by TSA not less than 90 cal-
employee or agent of the indirect air endar days before the applicant intends
carrier; and to begin operations. The application
(iii) Regardless of whether the indi- must be in writing and include:
rect air carrier has or ever had phys- (i) The business name; other names,
ical possession of the cargo. including doing business as; state of in-
(2) The indirect air carrier must en- corporation, if applicable; and tax iden-
sure that its employees and agents tification number.
carry out the requirements of this (ii) The applicant names, addresses,
chapter and the indirect air carrier’s and dates of birth of each proprietor,
security program. general partner, officer, director, and
(c) Content. Each security program owner identified under § 1548.16.
under this part must— (iii) A signed statement from each
(1) Be designed to prevent or deter person listed in paragraph (a)(1)(ii) of
the introduction of any unauthorized this section stating whether he or she
person, and any unauthorized explo- has been a proprietor, general partner,
sive, incendiary, and other destructive officer, director, or owner of an IAC
substance or item onto an aircraft. that had its security program with-
(2) Include the procedures and de- drawn by TSA.
scription of the facilities and equip- (iv) Copies of government-issued
ment used to comply with the require- identification of persons listed in para-
ments of §§ 1548.9 and 1548.17 regarding graph (a)(1)(ii) of this section.
the acceptance and offering of cargo. (v) Addresses of all business locations
(3) Include the procedures and syllabi in the United States.
used to accomplish the training re- (vi) A statement declaring whether
quired under § 1548.11 of persons who ac- the business is a ‘‘’small business’’’
cept, handle, transport, or deliver pursuant to section 3 of the Small
cargo on behalf of the indirect air car- Business Act (15 U.S.C. 632).
rier. (vii) A statement acknowledging and
(d) Availability. Each indirect air car- ensuring that each employee and agent
rier having a security program must: of the indirect air carrier, who is sub-
(1) Maintain an original of the secu- ject to training under § 1548.11, will
rity program at its corporate office. have successfully completed the train-
(2) Have accessible a complete copy, ing outlined in its security program be-
or the pertinent portions of its security fore performing security-related du-
program, or appropriate implementing ties.
instructions, at each office where cargo (viii) Other information requested by
is accepted. An electronic version is TSA concerning Security Threat As-
adequate. sessments.
(3) Make a copy of the security pro- (ix) A statement acknowledging and
gram available for inspection upon the ensuring that each employee and agent
request of TSA. will successfully complete a Security
(4) Restrict the distribution, disclo- Threat Assessment under § 1548.15 be-
sure, and availability of information fore authorizing the individual to have
contained in its security program to unescorted access to cargo.
persons with a need to know, as de- (2) Approval. TSA will approve the se-
scribed in part 1520 of this chapter. curity program by providing the indi-
(5) Refer requests for such informa- rect air carrier with the Indirect Air
tion by other persons to TSA. Carrier Standard Security Program
[67 FR 8382, Feb. 22, 2002, as amended at 71 and any Security Directive upon deter-
FR 30513, May 26, 2006; 71 FR 31964, June 2, mining that—
2006] (i) The indirect air carrier has met
the requirements of this part, its secu-
§ 1548.7 Approval, amendment, annual rity program, and any applicable Secu-
renewal, and withdrawal of ap- rity Directive;
proval of the security program. (ii) The approval of its security pro-
(a) Original Application—(1) Applica- gram is not contrary to the interests of

tion. The applicant must apply for a se- security and the public interest; and
368
(iii) The indirect air carrier has not submissions were sent to TSA, includ-
held a security program that was with- ing the following certification:
drawn within the previous year, unless
[Name of indirect air carrier] (hereinafter
otherwise authorized by TSA. ‘‘the IAC’’) has adopted and is currently car-
(3) Commencement of operations. The rying out a security program in accordance
indirect air carrier may operate under with the Transportation Security Regula-
a security program when it meets all tions as originally approved on [Insert date
requirements, including but not lim- of TSA initial approval]. In accordance with
ited to successful completion of train- TSA regulations, the IAC has notified TSA
ing and Security Threat Assessments of any new or changed information required
by relevant personnel. for the IAC’s initial security program. If new
or changed information is being submitted to
(4) Duration of security program. The TSA as part of this application for re-
security program will remain effective approval, that information is stated in this
until the end of the calendar month filing.
one year after the month it was ap- The IAC understands that intentional fal-
proved. sification of certification to an air carrier or
(5) Requirement to report changes in in- to TSA may be subject to both civil and
formation. Each indirect air carrier criminal penalties under 49 CFR 1540 and 1548
with an approved security program and 18 U.S.C. 1001. Failure to notify TSA of
under this part must notify TSA, in a any new or changed information required for
initial approval of the IAC’s security pro-
form and manner approved by TSA, of gram in a timely fashion and in a form ac-
any changes to the information sub- ceptable to TSA may result in withdrawal by
mitted during its initial application. TSA of approval of the IAC’s security pro-
(i) This notification must be sub- gram.
mitted to the designated official not
later than 30 days after the date the (3) TSA will renew approval of the se-
change occurred. curity program if TSA determines
(ii) Changes included in the require- that—
ment of this paragraph include, but are (i) The indirect air carrier has met
not limited to, changes in the indirect the requirements of this chapter, its
air carrier’s contact information, own- security program, and any Security Di-
ers, business addresses and locations, rective; and
and form of business entity. (ii) The renewal of its security pro-
(b) Renewal Application. Upon timely gram is not contrary to the interests of
submittal of an application for re- security and the public interest.
newal, and unless and until TSA denies (4) If TSA determines that the indi-
the application, the indirect air car- rect air carrier meets the requirements
rier’s approved security program re- of paragraph (b)(3) of this section, it
mains in effect. will renew the indirect air carrier’s se-
(1) Unless otherwise authorized by curity program. The security program
TSA, each indirect air carrier that has will remain effective until the end of
a security program under this part the calendar month one year after the
must timely submit to TSA, at least 30 month it was renewed.
calendar days prior to the first day of (c) Amendment requested by an indirect
the anniversary month of initial ap- air carrier or applicant. An indirect air
proval of its security program, an ap- carrier or applicant may file a request
plication for renewal of its security for an amendment to its security pro-
program in a form and a manner ap- gram with the TSA designated official
proved by TSA. at least 45 calendar days before the
(2) The application for renewal must date it proposes for the amendment to
be in writing and include a signed become effective, unless the designated
statement that the indirect air carrier official allows a shorter period. Any in-
has reviewed and ensures the con- direct air carrier may submit a group
tinuing accuracy of the contents of its proposal for an amendment that is on
initial application for a security pro- behalf of it and other indirect air car-
gram, subsequent renewal applications, riers that co-sign the proposal.
or other submissions to TSA con- (1) Within 30 calendar days after re-
firming a change of information and ceiving a proposed amendment, the

noting the date such applications and designated official, in writing, either
369
approves or denies the request to tion, together with any pertinent infor-
amend. mation, to TSA for reconsideration.
(2) An amendment to an indirect air TSA disposes of the petition within 30
carrier security program may be ap- calendar days of receipt, either by di-
proved, if the designated official deter- recting the designated official to with-
mines that safety and the public inter- draw or amend the notice of amend-
est will allow it, and if the proposed ment, or by affirming the notice of
amendment provides the level of secu- amendment.
rity required under this part. (e) Emergency Amendments. (1) If TSA
(3) Within 30 calendar days after re- finds that there is an emergency re-
ceiving a denial of the proposed amend- quiring immediate action, with respect
ment, the indirect air carrier may peti- to aviation security that makes proce-
tion TSA to reconsider the denial. A
dures in this section contrary to the
petition for reconsideration must be
public interest, the designated official
filed with the designated official.
may issue an emergency amendment,
(4) Upon receipt of a petition for re-
without the prior notice and comment
consideration, the designated official
either approves the request to amend procedures described in paragraph (d)
or transmits the petition, together of this section.
with any pertinent information, to the (2) The emergency amendment is ef-
TSA for reconsideration. TSA will dis- fective without stay on the date the in-
pose of the petition within 30 calendar direct air carrier receives notification.
days of receipt by either directing the TSA will incorporate in the notifica-
designated official to approve the tion a brief statement of the reasons
amendment or by affirming the denial. and findings for the emergency amend-
(d) Amendment by TSA. TSA may ment to be adopted.
amend a security program in the inter- (3) The indirect air carrier may file a
est of safety and the public interest, as petition for reconsideration with the
follows: TSA no later than 15 calendar days
(1) TSA notifies the indirect air car- after TSA issued the emergency
rier, in writing, of the proposed amend- amendment. The indirect air carrier
ment, fixing a period of not less than 30 must send the petition for reconsider-
calendar days within which the indi- ation to the designated official; how-
rect air carrier may submit written in- ever, the filing does not stay the effec-
formation, views, and arguments on tive date of the emergency amend-
the amendment. ment.
(2) After considering all relevant ma- (f) Withdrawal of approval of a security
terial, the designated official notifies program. TSA may withdraw the ap-
the indirect air carrier of any amend-
proval of the indirect air carrier’s secu-
ment adopted or rescinds the notice of
rity program, if TSA determines con-
amendment. If the amendment is
tinued operation is contrary to safety
adopted, it becomes effective not less
and the public interest, as follows:
than 30 calendar days after the indirect
air carrier receives the notice of (1) Notice of proposed withdrawal of ap-
amendment, unless the indirect air car- proval. The designated official will
rier disagrees with the proposed serve a notice of proposed withdrawal
amendment and petitions the TSA to of approval, which notifies the indirect
reconsider, no later than 15 calendar air carrier, in writing, of the facts,
days before the effective date of the charges, and applicable law, regulation,
amendment. The indirect air carrier or order that form the basis for the de-
must send the petition for reconsider- termination.
ation to the designated official. A (2) Indirect air carrier reply. The indi-
timely petition for reconsideration rect air carrier may respond to the no-
stays the effective date of the amend- tice of proposed withdrawal of approval
ment. no later than 15 calendar days after re-
(3) Upon receipt of a petition for receipt of the withdrawal by providing
consideration, the designated official the designated official, in writing, with
either amends or withdraws the notice any material facts, arguments, applica-
of amendment, or transmits the peti- ble law, and regulation.
370
(3) TSA review. The designated offi- for the emergency withdrawal. The in-
cial will consider all information avail- direct air carrier may submit a peti-
able, including any relevant material tion for reconsideration under the pro-
or information submitted by the indi- cedures in paragraphs (f)(2) through
rect air carrier, before either issuing a (f)(5) of this section; however, this peti-
withdrawal of approval of the indirect tion will not stay the effective date of
air carrier’s security program or re- the emergency withdrawal.
scinding the notice of proposed with- (g) Service of documents for withdrawal
drawal of approval. If TSA issues a of approval of security program pro-
withdrawal of approval, it becomes ef- ceedings. Service may be accomplished
fective upon receipt by the indirect air by personal delivery, certified mail, or
carrier, or 15 calendar days after serv- express courier. Documents served on
ice, whichever occurs first. an indirect air carrier will be served at
(4) Petition for reconsideration. The in- the indirect air carrier’s official place
direct air carrier may petition the TSA of business as designated in its applica-
to reconsider the withdrawal of ap- tion for approval or its security pro-
proval by serving a petition for consid- gram. Documents served on TSA must
eration no later than 15 calendar days be served to the address noted in the
after the indirect air carrier receives notice of withdrawal of approval or
the withdrawal of approval. The indi- withdrawal of approval, whichever is
rect air carrier must serve the petition applicable.
for reconsideration on the designated (1) Certificate of service. An individual
official. Submission of a petition for may attach a certificate of service to a
reconsideration will not automatically document tendered for filing. A certifi-
stay the withdrawal of approval. The cate of service must consist of a state-
indirect air carrier may request the ment, dated and signed by the person
designated official to stay the with- filing the document, that the document
drawal of approval pending consider- was personally delivered, served by cer-
ation of the petition. tified mail on a specific date, or served
(5) Assistant Secretary’s review. The by express courier on a specific date.
designated official transmits the peti- (2) Date of service. The date of service
tion together with all pertinent infor- will be—
mation to the Assistant Secretary for (i) The date of personal delivery;
reconsideration. The Assistant Sec- (ii) If served by certified mail, the
retary will dispose of the petition with- mailing date shown on the certificate
in 15 calendar days of receipt by either of service, the date shown on the post-
directing the designated official to re- mark, if there is no certificate of serv-
ice, or other mailing date shown by
scind the withdrawal of approval or by
other evidence if there is no certificate
affirming the withdrawal of approval.
of service or postmark; or
The decision of the Assistant Secretary
(iii) If served by express courier, the
is a final order subject to judicial re-
service date shown on the certificate of
view in accordance with 49 U.S.C. 46110.
service, or by other evidence if there is
(6) Emergency withdrawal. If TSA
no certificate of service.
finds that there is an emergency re-
(h) Extension of time. TSA may grant
quiring immediate action, with respect
an extension of time of the limits set
to aviation security that makes proce-
forth in this section for good cause
dures in this section contrary to the
shown. An indirect air carrier’s request
public interest, the designated official
for an extension of time must be in
may issue an emergency withdrawal of
writing and be received by TSA at least
the indirect air carrier’s security pro-
2 days before the due date to be ex-
gram, without first issuing a notice of
tended. TSA may grant itself an exten-
proposed withdrawal, effective without
sion of time for good cause.
stay on the date that the indirect air
carrier receives notice of the emer- [71 FR 30513, May 26, 2006]
gency withdrawal. In such a case, the
designated official will send the indi- § 1548.9 Acceptance of cargo.
rect air carrier a brief statement of the (a) Preventing or deterring the carriage
facts, charges, and applicable law, reg- of any explosive or incendiary. Each indi-
ulation, or order that forms the basis rect air carrier must use the facilities,
371
equipment, and procedures described in extent that such individuals need to

its security program to prevent or know in order to perform their duties.
deter the carriage onboard an aircraft (d) Operators must comply with the
of any unauthorized person, and any requirements of this section not later
unauthorized explosive, incendiary, than November 22, 2006, for direct em-
and other destructive substance or ployees and not later than June 15,
item, as provided in the indirect air 2007, for agents.
carrier’s security program.
[71 FR 30515, May 26, 2006, as amended at 71
(b) Refusal to transport. Each indirect FR 62549, Oct. 25, 2006]
air carrier must refuse to offer for
transport on an aircraft any cargo, if § 1548.13 Security coordinators.
the shipper does not consent to a
Each indirect air carrier must des-
search or inspection of that cargo in
ignate and use an Indirect Air Carrier
accordance with this part, or parts 1544
Security Coordinator (IACSC). The
or 1546 of this chapter.
IACSC and alternates must be ap-
[71 FR 30515, May 26, 2006] pointed at the corporate level and must
serve as the indirect air carrier’s pri-
§ 1548.11 Training and knowledge for mary contact for security-related ac-
individuals with security-related
duties. tivities and communications with TSA,
as set forth in the security program.
(a) No indirect air carrier may use an Either the IACSC or an alternate
employee or agent to perform any secu- IACSC must be available on a 24-hour
rity-related duties to meet the require- basis.
ments of its security program, unless
that individual has received training, [71 FR 30515, May 26, 2006]
as specified in its security program, in-
§ 1548.15 Access to Cargo: Security
cluding his or her personal responsibil- threat assessments for individuals
ities in § 1540.105 of this chapter. having unescorted access to cargo.
(b) Each indirect air carrier must en-
sure that each of its authorized em- This section applies to each indirect
ployees or agents who accept, handle, air carrier operating under this part.
transport, or deliver cargo have knowl- (a) This section applies to each em-
edge of the— ployee or agent the indirect air carrier
(1) Applicable provisions of this part; authorizes to have unescorted access to
(2) Applicable Security Directives cargo from the time—
and Information Circulars; (1) Cargo to be transported on an air-
(3) The approved airport security pro- craft operated by an aircraft operator
gram(s) applicable to their location(s); with a full all-cargo program under
and § 1544.101(h) of this chapter, or by a for-
(4) The aircraft operator’s or indirect eign air carrier under § 1546.101(e) of
air carrier’s security program, to the this chapter, reaches an indirect air
extent necessary in order to perform carrier facility where the indirect air
their duties. carrier consolidates or holds the cargo
(c) Each indirect air carrier must en- until the indirect air carrier transfers
sure that each of its authorized em- the cargo to an aircraft operator or for-
ployees or agents under paragraph (b) eign air carrier, or
of this section successfully completes (2) Cargo to be transported on an air-
recurrent training at least annually on craft operated by an aircraft operator
their individual responsibilities in— with a full program or by a foreign air
(1) Section 1540.105 of this chapter; carrier under § 1546.101(a) or (b) of this
(2) The applicable provisions of this chapter, is accepted by the indirect air
part; carrier.
(3) Applicable Security Directives (b) Before an indirect air carrier au-
and Information Circulars; thorizes, and before an employee or
(4) The approved airport security pro- agent gains, unescorted access to cargo
gram(s) applicable to their location(s); as described in paragraph (a) of this
and section, each employee or agent must
(5) The aircraft operator’s or indirect successfully complete one of the fol-
air carrier’s security program, to the lowing:
372
(1) A criminal history records check tifying information required by TSA of

under §§ 1542.209, 1544.229, or 1544.230 of each proprietor, general partner, offi-
this chapter, if the individual is other- cer, director, and owner of the entity
wise required to undergo that check. have been submitted to TSA for a Se-
(2) A Security Threat Assessment curity Threat Assessment under part
under part 1540 subpart C of this chap- 1540, subpart C, of this chapter not
ter. An employee or agent who has suc- later than May 15, 2007. After those
cessfully completed this Security dates, the operators may not allow an
Threat Assessment for one employer individual to perform this function un-
need not complete it for another em- less the operator has submitted the in-
ployer if the employee or agent has formation for that individual to TSA.
been continuously employed in a posi- (b) For purposes of this section,
tion that requires a Security Threat owner means—
Assessment. (1) A person who directly or indi-
(3) Another Security Threat Assess- rectly owns, controls, or has power to
ment approved by TSA as comparable vote 25 percent or more of any class of
to paragraphs (b)(1) or (b)(2) of this sec- voting securities or other voting inter-
tion. ests of an IAC or applicant to be an
(c) Each indirect air carrier must en- IAC; or
sure that each individual who has ac- (2) A person who directly or indi-
cess to its cargo— rectly controls in any manner the elec-
(1) Has successfully completed one of tion of a majority of the directors (or
the checks in paragraph (b) of this sec- individuals exercising similar func-
tion; tions) of an IAC, or applicant to be an
(2) Is escorted by a person who has IAC.
successfully completed one of the (c) For purposes of this definition of
checks in paragraph (b) of this section; owner—
or (1) Members of the same family must
(3) Is authorized to serve as law en- be considered to be one person.
forcement personnel at that location. (i) Same family means parents,
(d) Operators must submit to TSA spouses, children, siblings, uncles,
the names and other identifying infor- aunts, grandparents, grandchildren,
mation required by TSA of all individ- first cousins, stepchildren, stepsiblings,
uals required to successfully complete and parents-in-law, and spouses of any
an assessment under paragraph (b) not of the foregoing.
later than May 15, 2007, for direct em- (ii) Each member of the same family,
ployees and not later than July 15, 2007, who has an ownership interest in an
for agents. After those dates, the oper- IAC, or an applicant to be an IAC, must
ators may not allow an individual to be identified if the family is an owner
perform a function for which a STA is as a result of aggregating the owner-
required, unless the operator has sub- ship interests of the members of the
mitted the information for that indi- family.
vidual to TSA. (iii) In determining the ownership of
(e) Operators must comply with the interests of the same family, any vot-
requirements of paragraphs (a), (b), and ing interest of any family member
(c) of this section not later than the must be taken into account.
dates to be specified by TSA in a future (2) Voting securities or other voting in-
rule in the FEDERAL REGISTER. terests means securities or other inter-
ests that entitle the holder to vote for
[71 FR 30516, May 26, 2006; 71 FR 31965, June
2, 2006, as amended at 71 FR 62549, Oct. 25, or select directors (or individuals exer-
2006; 72 FR 13026, Mar. 20, 2007] cising similar functions).
(d) Each indirect air carrier, or appli-
§ 1548.16 Security threat assessments cant to be an indirect air carrier, must
for each proprietor, general part- ensure that each proprietor, general
ner, officer, director, and certain partner, officer, director and owner of
owners of the entity. the entity has successfully completed a
(a) Each indirect air carrier, or appli- Security Threat Assessment under part
cant to be an indirect air carrier, must 1540, subpart C, of this chapter not
ensure that the names and other iden- later than a date to be specified by
373
TSA in a future rule in the FEDERAL (2) Each indirect air carrier that re-
REGISTER. ceives a Security Directive must com-
ply with the following:
[71 FR 30516, May 26, 2006; 71 FR 31965, June
2, 2006, as amended at 71 FR 62550, Oct. 25, (i) Within the time prescribed in the
2006; 72 FR 13026, Mar. 20, 2007] Security Directive, acknowledge in
writing receipt of the Security Direc-
§ 1548.17 Known shipper program. tive to TSA.
This section applies to cargo that an (ii) Within the time prescribed in the
indirect air carrier offers to an aircraft Security Directive, specify the method
operator operating under a full pro- by which the measures in the Security
gram under § 1544.101(a) of this chapter, Directive have been implemented (or
or to a foreign air carrier operating will be implemented, if the Security
under § 1546.101(a) or (b) of this chapter. Directive is not yet effective).
(a) For cargo to be loaded on aircraft (3) In the event that the indirect air
in the United States, each indirect air carrier is unable to implement the
carrier must have and carry out a measures in the Security Directive, the
known shipper program in accordance indirect air carrier must submit pro-
with its security program. The proposed alternative measures and the
gram must— basis for submitting the alternative
(1) Determine the shipper’s validity measures to TSA for approval.
and integrity as provided in its secu- (i) The indirect air carrier must sub-
rity program; mit the proposed alternative measures
(2) Provide that the indirect air car- within the time prescribed in the Secu-
rier will separate known shipper cargo rity Directive.
from unknown shipper cargo. (ii) The indirect air carrier must im-
(b) When required by TSA, each indi- plement any alternative measures ap-
rect air carrier must submit to TSA, in proved by TSA.
a form and manner acceptable to
(4) Each indirect air carrier that re-
TSA—
ceives a Security Directive may com-
(1) Information identified in its secu-
ment on it by submitting data, views,
rity program regarding an applicant to
or arguments in writing to TSA.
be a known shipper or a known shipper;
and (i) TSA may amend the Security Di-
(2) Corrections and updates of this in- rective based on comments received.
formation upon learning of a change to (ii) Submission of a comment does
the information specified in paragraph not delay the effective date of the Se-
(b)(1) of this section. curity Directive.
(5) Each indirect air carrier that re-
[71 FR 30516, May 26, 2006] ceives a Security Directive or Informa-
tion Circular, and each person who re-
§ 1548.19 Security Directives and In-
formation Circulars. ceives information from a Security Di-
rective or Information Circular, must:
(a) TSA may issue an Information (i) Restrict the availability of the Se-
Circular to notify indirect air carriers
curity Directive or Information Cir-
of security concerns.
cular, and information contained in ei-
(b) When TSA determines that addi-
ther document, to those persons with a
tional security measures are necessary
need-to-know.
to respond to a threat assessment, or
to a specific threat against civil avia- (ii) Refuse to release the Security Di-
tion, TSA issues a Security Directive rective or Information Circular, and in-
setting forth mandatory measures. formation contained in either docu-
(1) Each indirect air carrier that is ment, to persons other than those with
required to have an approved indirect a need-to-know without the prior writ-
air carrier security program must com- ten consent of TSA.
ply with each Security Directive that [71 FR 30516, May 26, 2006]
TSA issues to it, within the time pre-
scribed in the Security Directive for

compliance.
374
PART 1550—AIRCRAFT SECURITY sible property (carry-on items) before

UNDER GENERAL OPERATING boarding in accordance with security
AND FLIGHT RULES procedures approved by TSA.
(c) Sensitive security information. The
Sec. security program procedures approved
1550.1 Applicability of this part. by TSA for operations specified in
1550.3 TSA inspection authority. paragraph (a) of this section are sen-
1550.5 Operations using a sterile area. sitive security information. The oper-
1550.7 Operations in aircraft of 12,500 pounds ator must restrict the distribution, dis-
or more.
closure, and availability of information
AUTHORITY: 49 U.S.C. 114, 5103, 40113, 44901– contained in the security procedures to
44907, 44913–44914, 44916–44918, 44935–44936, persons with a need to know as de-
44942, 46105.
scribed in part 1520 of this chapter.
SOURCE: 67 FR 8383, Feb. 22, 2002, unless (d) Compliance date. Persons con-
otherwise noted. ducting operations identified in para-
§ 1550.1 Applicability of this part. graph (a) of this section must imple-
ment security procedures on October 6,
This part applies to the operation of 2001.
aircraft for which there are no security (e) Waivers. TSA may permit a person
requirements in other parts of this sub- conducting an operation under this sec-
chapter. tion to deviate from the provisions of
§ 1550.3 TSA inspection authority. this section if TSA finds that the oper-
ation can be conducted safely under
(a) Each aircraft operator subject to the terms of the waiver.
this part must allow TSA, at any time
or place, to make any inspections or § 1550.7 Operations in aircraft of
tests, including copying records, to de- 12,500 pounds or more.
termine compliance with—
(1) This subchapter and any security (a) Applicability of this section. This
program or security procedures under section applies to each aircraft oper-
this subchapter, and part 1520 of this ation conducted in an aircraft with a
chapter; and maximum certificated takeoff weight
(2) 49 U.S.C. Subtitle VII, as amend- of 12,500 pounds or more except for
ed. those operations specified in § 1550.5
(b) At the request of TSA, each air- and those operations conducted under a
craft operator must provide evidence of security program under part 1544 or
compliance with this part and its secu- 1546 of this chapter.
rity program or security procedures, (b) Procedures. Any person conducting
including copies of records. an operation identified in paragraph (a)
of this section must conduct a search
§ 1550.5 Operations using a sterile of the aircraft before departure and
area. screen passengers, crewmembers, and
(a) Applicability of this section. This other persons and their accessible prop-
section applies to all aircraft oper- erty (carry-on items) before boarding
ations in which passengers, crew- in accordance with security procedures
members, or other individuals are en- approved by TSA.
planed from or deplaned into a sterile (c) Compliance date. Persons identi-
area, except for scheduled passenger fied in paragraph (a) of this section
operations, public charter passenger must implement security procedures
operations, and private charter pas- when notified by TSA. TSA will notify
senger operations, that are in accord- operators by NOTAM, letter, or other
ance with a security program issued communication when they must imple-
under part 1544 or 1546 of this chapter. ment security procedures.
(b) Procedures. Any person conducting (d) Waivers. TSA may permit a person
an operation identified in paragraph (a) conducting an operation identified in
of this section must conduct a search this section to deviate from the provi-
of the aircraft before departure and sions of this section if TSA finds that
must screen passengers, crewmembers, the operation can be conducted safely

and other individuals and their acces- under the terms of the waiver.
375
PART 1552—FLIGHT SCHOOLS ceptance flight after an aircraft manu-

facturer delivers an aircraft to a pur-
Subpart A—Flight Training for Aliens and chaser.
Other Designated Individuals Flight school means any pilot school,
flight training center, air carrier flight
Sec. training facility, or flight instructor
1552.1 Scope and definitions. certificated under 14 CFR part 61, 121,
1552.3 Flight training.
1552.5 Fees. 135, 141, or 142; or any other person or
entity that provides instruction under
Subpart B—Flight School Security 49 U.S.C. Subtitle VII, Part A, in the
Awareness Training operation of any aircraft or aircraft
simulator.
1552.21 Scope and definitions. Flight training means instruction re-
1552.23 Security awareness training pro-
grams.
ceived from a flight school in an air-
1552.25 Documentation, recordkeeping, and craft or aircraft simulator. Flight
inspection. training does not include recurrent
training, ground training, a demonstra-
AUTHORITY: 49 U.S.C. 114, 44939.
tion flight for marketing purposes, or
SOURCE: 69 FR 56340, Sept. 20, 2004, unless any military training provided by the
otherwise noted. Department of Defense, the U.S. Coast
Guard, or an entity under contract
Subpart A—Flight Training for with the Department of Defense or U.S.
Aliens and Other Designated Coast Guard.
Individuals Ground training means classroom or
computer-based instruction in the op-
§ 1552.1 Scope and definitions. eration of aircraft, aircraft systems, or
(a) Scope. This subpart applies to cockpit procedures. Ground training
flight schools that provide instruction does not include instruction in an air-
under 49 U.S.C. Subtitle VII, Part A, in craft simulator.
the operation of aircraft or aircraft National of the United States means a
simulators, and individuals who apply person who, though not a citizen of the
to obtain such instruction or who re- United States, owes permanent alle-
ceive such instruction. giance to the United States, and in-
(b) Definitions. As used in this part: cludes a citizen of American Samoa or
Aircraft simulator means a flight sim- Swains Island.
ulator or flight training device, as Recurrent training means periodic
those terms are defined at 14 CFR 61.1. training required under 14 CFR part 61,
Alien means any person not a citizen 121,125, 135, or Subpart K of part 91. Re-
or national of the United States. current training does not include train-
Candidate means an alien or other in- ing that would enable a candidate who
dividual designated by TSA who ap- has a certificate or type rating for a
plies for flight training or recurrent particular aircraft to receive a certifi-
training. It does not include an indicate or type rating for another air-
vidual endorsed by the Department of craft.
Defense for flight training.
Day means a day from Monday § 1552.3 Flight training.
through Friday, including State and This section describes the procedures
local holidays but not Federal holi- a flight school must follow before pro-
days, for any time period less than 11 viding flight training.
days specified in this part. For any (a) Category 1—Regular processing for
time period greater than 11 days, day flight training on aircraft more than
means calendar day. 12,500 pounds. A flight school may not
Demonstration flight for marketing pur- provide flight training in the operation
poses means a flight for the purpose of of any aircraft having a maximum cer-
demonstrating an aircraft’s or aircraft tificated takeoff weight of more than
simulator’s capabilities or characteris- 12,500 pounds to a candidate, except for
tics to a potential purchaser, or to an a candidate who receives expedited
agent of a potential purchaser, of the processing under paragraph (b) of this

aircraft or simulator, including an ac- section, unless—
376
(1) The flight school has first notified a threat to aviation or national secu-
TSA that the candidate has requested rity, or more than 30 days have elapsed
such flight training. since TSA received all of the informa-
(2) The candidate has submitted to tion specified in paragraph (a)(2) of this
TSA, in a form and manner acceptable section.
to TSA, the following: (5) The flight school begins the can-
(i) The candidate’s full name, includ- didate’s flight training within 180 days
ing any aliases used by the candidate of either event specified in paragraph
or variations in the spelling of the can- (a)(4) of this section.
didate’s name; (b) Category 2—Expedited processing
(ii) A unique candidate identification for flight training on aircraft more than
number created by TSA; 12,500 pounds. (1) A flight school may
(iii) A copy of the candidate’s cur- not provide flight training in the oper-
rent, unexpired passport and visa; ation of any aircraft having a max-
(iv) The candidate’s passport and visa imum certificated takeoff weight of
information, including all current and more than 12,500 pounds to a candidate
previous passports and visas held by who meets any of the criteria of para-
the candidate and all the information graph (b)(2) of this section unless—
necessary to obtain a passport and (i) The flight school has first notified
visa; TSA that the candidate has requested
(v) The candidate’s country of birth, such flight training.
current country or countries of citizen- (ii) The candidate has submitted to
ship, and each previous country of citi- TSA, in a form and manner acceptable
zenship, if any; to TSA:
(vi) The candidate’s actual date of
(A) The information and fee required
birth or, if the candidate does not
under paragraph (a)(2) of this section;
know his or her date of birth, the ap-
and
proximate date of birth used consist-
ently by the candidate for his or her (B) The reason the candidate is eligi-
passport or visa; ble for expedited processing under
(vii) The candidate’s requested dates paragraph (b)(2) of this section and in-
of training and the location of the formation that establishes that the
training; candidate is eligible for expedited proc-
(viii) The type of training for which essing.
the candidate is applying, including (iii) The flight school has submitted
the aircraft type rating the candidate to TSA, in a form and manner accept-
would be eligible to obtain upon com- able to TSA, a photograph of the can-
pletion of the training; didate taken when the candidate ar-
(ix) The candidate’s current U.S. rives at the flight school for flight
pilot certificate, certificate number, training.
and type rating, if any; (iv) TSA has informed the flight
(x) Except as provided in paragraph school that the candidate does not pose
(k) of this section, the candidate’s fin- a threat to aviation or national secu-
gerprints, in accordance with para- rity or more than 5 days have elapsed
graph (f) of this section; since TSA received all of the informa-
(xi) The candidate’s current address tion specified in paragraph (a)(2) of this
and phone number and each address for section.
the 5 years prior to the date of the can- (v) The flight school begins the can-
didate’s application; didate’s flight training within 180 days
(xii) The candidate’s gender; and of either event specified in paragraph
(xiii) Any fee required under this (b)(1)(iv) of this section.
part. (2) A candidate is eligible for expe-
(3) The flight school has submitted to dited processing if he or she—
TSA, in a form and manner acceptable (i) Holds an airman’s certificate from
to TSA, a photograph of the candidate a foreign country that is recognized by
taken when the candidate arrives at the Federal Aviation Administration
the flight school for flight training. or a military agency of the United
(4) TSA has informed the flight States, and that permits the candidate
school that the candidate does not pose to operate a multi-engine aircraft that
377
has a certificated takeoff weight of (ii) Any unique student identification

more than 12,500 pounds; number issued to the candidate by the
(ii) Is employed by a foreign air car- Department of Justice or TSA;
rier that operates under 14 CFR part (iii) A copy of the candidate’s cur-
129 and has a security program ap- rent, unexpired passport and visa;
proved under 49 CFR part 1546; (iv) The candidate’s current U.S.
(iii) Has unescorted access authority pilot certificate, certificate number,
to a secured area of an airport under 49 and type rating(s);
U.S.C. 44936(a)(1)(A)(ii), 49 CFR 1542.209, (v) The type of training for which the
or 49 CFR 1544.229; candidate is applying;
(iv) Is a flightcrew member who has (vi) The date of the candidate’s prior
successfully completed a criminal his- recurrent training, if any, and a copy
tory records check in accordance with of the training form documenting that
49 CFR 1544.230; or recurrent training;
(v) Is part of a class of individuals (vii) The candidate’s requested dates
that TSA has determined poses a mini- of training; and
mal threat to aviation or national se- (viii) A photograph of the candidate
curity because of the flight training al- taken when the candidate arrives at
ready possessed by that class of indi- the flight school for flight training.
viduals. (e) Interruption of flight training. A
(c) Category 3—Flight training on air- flight school must immediately termi-
craft 12,500 pounds or less. A flight nate or cancel a candidate’s flight
school may not provide flight training training if TSA notifies the flight
in the operation of any aircraft having school at any time that the candidate
a maximum certificated takeoff weight poses a threat to aviation or national
of 12,500 pounds or less to a candidate security.
unless— (f) Fingerprints. (1) Fingerprints sub-
(1) The flight school has first notified mitted in accordance with this subpart
TSA that the candidate has requested must be collected—
such flight training.
(i) By United States Government per-
(2) The candidate has submitted to
sonnel at a United States embassy or
TSA, in a form and manner acceptable
consulate; or
to TSA:
(ii) By another entity approved by
(i) The information required under
TSA.
paragraph (a)(2) of this section; and
(ii) Any other information required (2) A candidate must confirm his or
by TSA. her identity to the individual or agen-
(3) The flight school has submitted to cy collecting his or her fingerprints
TSA, in a form and manner acceptable under paragraph (f)(1) of this section by
to TSA, a photograph of the candidate providing the individual or agency his
taken when the candidate arrives at or her:
the flight school for flight training. (i) Passport;
(4) The flight school begins the can- (ii) Resident alien card; or
didate’s flight training within 180 days (iii) U.S. driver’s license.
of the date the candidate submitted the (3) A candidate must pay any fee im-
information required under paragraph posed by the agency taking his or her
(a)(2) of this section to TSA. fingerprints.
(d) Category 4—Recurrent training for (g) General requirements—(1) False
all aircraft. Prior to beginning recur- statements. If a candidate makes a
rent training for a candidate, a flight knowing and willful false statement, or
school must— omits a material fact, when submitting
(1) Notify TSA that the candidate has the information required under this
requested such recurrent training; and part, the candidate may be—
(2) Submit to TSA, in a form and (i) Subject to fine or imprisonment
manner acceptable to TSA: or both under 18 U.S.C. 1001;
(i) The candidate’s full name, includ- (ii) Denied approval for flight train-
ing any aliases used by the candidate ing under this section; and
or variations in the spelling of the can- (iii) Subject to other enforcement ac-
didate’s name; tion, as appropriate.
378
(2) Preliminary approval. For purposes INS (Form N–581), together with a gov-
of facilitating a candidate’s visa proc- ernment-issued picture identification
ess with the U.S. Department of State, of the individual; or
TSA may inform a flight school and a (vi) In the case of flight training pro-
candidate that the candidate has re- vided to a Federal employee (including
ceived preliminary approval for flight military personnel) pursuant to a con-
training based on information sub- tract between a Federal agency and a
mitted by the flight school or the can- flight school, the agency’s written cer-
didate under this section. A flight tification as to its employee’s United
school may then issue an I–20 form to States citizenship or nationality, to-
the candidate to present with the can- gether with the employee’s govern-
didate’s visa application. Preliminary ment-issued credentials or other Feder-
approval does not initiate the waiting ally-issued picture identification.
period under paragraph (a)(3) or (2) Department of Defense endorsees. To
(b)(1)(iii) of this section or the period establish that an individual has been
in which a flight school must initiate a endorsed by the U.S. Department of
candidate’s training after receiving Defense for flight training, the indi-
TSA approval under paragraph (a)(4) or vidual must present to the flight
(b)(1)(iv) of this section. school a written statement acceptable
(h) U.S. citizens and nationals and De- to TSA from the U.S. Department of
partment of Defense endorsees. A flight Defense attaché in the individual’s
school must determine whether an in- country of residence together with a
dividual is a citizen or national of the government-issued picture identifica-
United States, or a Department of De- tion of the individual.
fense endorsee, prior to providing flight (i) Recordkeeping requirements. A
training to the individual. flight school must—
(1) U.S. citizens and nationals. To es- (1) Maintain the following informa-
tablish U.S. citizenship or nationality tion for a minimum of 5 years:
an individual must present to the (i) For each candidate:
flight school his or her:
(A) A copy of the photograph re-
(i) Valid, unexpired United States
quired under paragraph (a)(3),
passport;
(b)(1)(iii), (c)(3), or (d)(2)(viii) of this
(ii) Original or government-issued
section; and
certified birth certificate of the United
(B) A copy of the approval sent by
States, American Samoa, or Swains Is-
TSA confirming the candidate’s eligi-
land, together with a government-
bility for flight training.
issued picture identification of the in-
dividual; (ii) For a Category 1, Category 2, or
(iii) Original United States natu- Category 3 candidate, a copy of the in-
ralization certificate with raised seal, formation required under paragraph
or a Certificate of Naturalization (a)(2) of this section, except the infor-
issued by the U.S. Citizenship and Im- mation in paragraph (a)(2)(x).
migration Services (USCIS) or the U.S. (iii) For a Category 4 candidate, a
Immigration and Naturalization Serv- copy of the information required under
ice (INS) (Form N–550 or Form N–570), paragraph (d)(2) of this section.
together with a government-issued pic- (iv) For an individual who is a United
ture identification of the individual; States citizen or national, a copy of
(iv) Original certification of birth the information required under para-
abroad with raised seal, U.S. Depart- graph (h)(1) of this section.
ment of State Form FS–545, or U.S. De- (v) For an individual who has been
partment of State Form DS–1350, to- endorsed by the U.S. Department of
gether with a government-issued pic- Defense for flight training, a copy of
ture identification of the individual; the information required under para-
(v) Original certificate of United graph (h)(2) of this section.
States citizenship with raised seal, a (vi) A record of all fees paid to TSA
Certificate of United States Citizenship in accordance with this part.
issued by the USCIS or INS (Form N– (2) Permit TSA and the Federal Avia-
560 or Form N–561), or a Certificate of tion Administration to inspect the

Repatriation issued by the USCIS or records required by paragraph (i)(1) of
379
this section during reasonable business Subpart B—Flight School Security

hours. Awareness Training
(j) Candidates subject to the Depart-
ment of Justice rule. A candidate who § 1552.21 Scope and definitions.
submits a completed Flight Training
(a) Scope. This subpart applies to
Candidate Checks Program form and
flight schools that provide instruction
fingerprints to the Department of Jus-
under 49 U.S.C. Subtitle VII, Part A, in
tice in accordance with 28 CFR part 105
the operation of aircraft or aircraft
before September 28, 2004, or a later
simulators, and to employees of such
date specified by TSA, is processed in
flight schools.
accordance with the requirements of
that part. If TSA specifies a date later (b) Definitions: As used in this sub-
than the compliance dates identified in part:
this part, individuals and flight schools Flight school employee means a flight
who comply with 28 CFR part 105 up to instructor or ground instructor certifi-
that date will be considered to be in cated under 14 CFR part 61, 141, or 142;
compliance with the requirements of a chief instructor certificated under 14
this part. CFR part 141; a director of training cer-
(k) Additional or missed flight training. tificated under 14 CFR part 142; or any
(1) A Category 1, 2, or 3 candidate who other person employed by a flight
has been approved for flight training school, including an independent con-
by TSA may take additional flight tractor, who has direct contact with a
training without submitting finger- flight school student. This includes an
prints as specified in paragraph independent or solo flight instructor
(a)(2)(x) of this section if the candidate: certificated under 14 CFR part 61.
(i) Submits all other information re-
§ 1552.23 Security awareness training
quired in paragraph (a)(2) of this sec- programs.
tion, including the fee; and
(ii) Waits for TSA approval or until (a) General. A flight school must en-
the applicable waiting period expires sure that—
before initiating the additional flight (1) Each of its flight school employ-
training. ees receives initial and recurrent secu-
(2) A Category 1, 2, or 3 candidate rity awareness training in accordance
who is approved for flight training by with this subpart; and
TSA, but does not initiate that flight (2) If an instructor is conducting the
training within 180 days, may reapply initial security awareness training pro-
for flight training without submitting gram, the instructor has first success-
fingerprints as specified in paragraph fully completed the initial flight
(a)(2)(x) of this section if the candidate school security awareness training pro-
submits all other information required gram offered by TSA or an alternative
in paragraph (a)(2) of this section, in- initial flight school security awareness
cluding the fee. training program that meets the cri-
teria of paragraph (c) of this section.
§ 1552.5 Fees. (b) Initial security awareness training
(a) Imposition of fees. The following program. (1) A flight school must ensure
fee is required for TSA to conduct a se- that—
curity threat assessment for a can- (i) Each flight school employee em-
didate for flight training subject to the ployed on January 18, 2005 receives ini-
requirements of § 1552.3: $130. tial security awareness training in ac-
(b) Remittance of fees. (1) A candidate cordance with this subpart by January
must remit the fee required under this 18, 2005; and
subpart to TSA, in a form and manner (ii) Each flight school employee hired
acceptable to TSA, each time the can- after January 18, 2005 receives initial
didate or the flight school is required security awareness training within 60
to submit the information required days of being hired.
under § 1552.3 to TSA. (2) In complying with paragraph
(2) TSA will not issue any fee re- (b)(2) of this section, a flight school
funds, unless a fee was paid in error. may use either:
380
(i) The initial flight school security (C) Dangerous or hazardous cargo
awareness training program offered by loaded into an aircraft.
TSA; or (v) Appropriate responses for the em-
(ii) An alternative initial flight ployee to specific situations, including:
school security awareness training pro- (A) Taking no action, if a situation
gram that meets the criteria of para- does not warrant action;
graph (c) of this section. (B) Questioning an individual, if his
(c) Alternative initial security aware- or her behavior may be considered sus-
ness training program. At a minimum, picious;
an alternative initial security aware- (C) Informing a supervisor, if a situa-
ness training program must— tion or an individual’s behavior war-
(1) Require active participation by rants further investigation;
the flight school employee receiving (D) Calling the TSA General Aviation
the training. Hotline; or
(2) Provide situational scenarios re- (E) Calling local law enforcement, if
quiring the flight school employee re- a situation or an individual’s behavior
ceiving the training to assess specific could pose an immediate threat.
situations and determine appropriate (vi) Any other information relevant
courses of action. to security measures or procedures at
(3) Contain information that enables the flight school, including applicable
a flight school employee to identify— information in the TSA Information
(i) Uniforms and other identification, Publication ‘‘Security Guidelines for
if any are required at the flight school, General Aviation Airports’’.
for flight school employees or other (d) Recurrent security awareness train-
persons authorized to be on the flight ing program. (1) A flight school must
school grounds. ensure that each flight school em-
(ii) Behavior by clients and cus- ployee receives recurrent security
tomers that may be considered sus- awareness training each year in the
picious, including, but not limited to: same month as the month the flight
(A) Excessive or unusual interest in school employee received initial secu-
restricted airspace or restricted ground rity awareness training in accordance
structures; with this subpart.
(B) Unusual questions or interest re- (2) At a minimum, a recurrent secu-
garding aircraft capabilities; rity awareness training program must
(C) Aeronautical knowledge incon- contain information regarding—
sistent with the client or customer’s (i) Any new security measures or pro-
existing airman credentialing; and cedures implemented by the flight
(D) Sudden termination of the client school;
or customer’s instruction. (ii) Any security incidents at the
(iii) Behavior by other on-site per- flight school, and any lessons learned
sons that may be considered sus- as a result of such incidents;
picious, including, but not limited to: (iii) Any new threats posed by or in-
(A) Loitering on the flight school cidents involving general aviation air-
grounds for extended periods of time; craft contained on the TSA Web site;
and and
(B) Entering ‘‘authorized access (iv) Any new TSA guidelines or rec-
only’’ areas without permission. ommendations concerning the security
(iv) Circumstances regarding aircraft of general aviation aircraft, airports,
that may be considered suspicious, in- or flight schools.
cluding, but not limited to:
(A) Unusual modifications to air- § 1552.25 Documentation, record-
craft, such as the strengthening of keeping, and inspection.
landing gear, changes to the tail num- (a) Documentation. A flight school
ber, or stripping of the aircraft of seat- must issue a document to each flight
ing or equipment; school employee each time the flight
(B) Damage to propeller locks or school employee receives initial or re-
other parts of an aircraft that is incon- current security awareness training in
sistent with the pilot training or air- accordance with this subpart. The doc-
craft flight log; and ument must—
381
(1) Contain the flight school employ- 1562.3 Operating requirements.

ee’s name and a distinct identification
number. Subpart B—Ronald Reagan Washington
(2) Indicate the date on which the National Airport: Enhanced Security
Procedures for Certain Operations
flight school employee received the se-
curity awareness training. 1562.21 Scope, general requirements, and
(3) Contain the name of the instruc- definitions.
tor who conducted the training, if any. 1562.23 Aircraft operator and passenger re-
(4) Contain a statement certifying quirements.
that the flight school employee re- 1562.25 Fixed base operator requirements.
1562.27 Costs.
ceived the security awareness training.
1562.29 Armed security officer requirements.
(5) Indicate the type of training re-
ceived, initial or recurrent. AUTHORITY: 49 U.S.C. 114, 40114, Sec. 823,
(6) Contain a statement certifying Pub. L. 108–176, 117 Stat. 2595.
that the alternative training program SOURCE: 70 FR 7162, Feb. 10, 2005, unless
used by the flight school meets the cri- otherwise noted.
teria in 49 CFR 1552.23(c), if the flight
school uses an alternative training pro- Subpart A—Maryland Three Air-
gram to comply with this subpart. ports: Enhanced Security Pro-
(7) Be signed by the flight school em- cedures for Operations at
ployee and an authorized official of the Certain Airports in the Wash-
flight school. ington, DC, Metropolitan Area
(b) Recordkeeping requirements. A Flight Restricted Zone
flight school must establish and main-
tain the following records for one year § 1562.1 Scope and definitions.
after an individual no longer is a flight
(a) Scope. This subpart applies to the
school employee:
following airports, and individuals who
(1) A copy of the document required operate an aircraft to or from those
by paragraph (a) of this section for the airports, that are located within the
initial and each recurrent security airspace designated as the Washington,
awareness training conducted for each DC, Metropolitan Area Flight Re-
flight school employee in accordance stricted Zone by the Federal Aviation
with this subpart; and Administration:
(2) The alternative flight school secu- (1) College Park Airport (CGS);
rity awareness training program used (2) Potomac Airfield (VKX); and
by the flight school, if the flight school (3) Washington Executive/Hyde Field
uses such a program. (W32).
(c) Inspection. A flight school must (b) Definitions. For purposes of this
permit TSA and the Federal Aviation section:
Administration to inspect the records Airport security coordinator means the
required under paragraph (b) of this official at a Maryland Three Airport
section during reasonable business who is responsible for ensuring that
hours. the airport’s security procedures are
implemented and followed.
PART 1562—OPERATIONS IN THE Maryland Three Airport means any of
WASHINGTON, DC, METROPOLI- the airports specified in paragraph (a)
TAN AREA of this section.
§ 1562.3 Operating requirements.

Subpart A—Maryland Three Airports: En-
hanced Security Procedures for Oper- (a) Airport operator requirements. Each
ations at Certain Airports in the Wash- operator of a Maryland Three Airport
ington, DC, Metropolitan Area Flight must:
Restricted Zone (1) Appoint an airport employee as
the airport security coordinator;
Sec.
(2) Maintain and carry out security

1562.1 Scope and definitions. procedures approved by TSA;
382
(3) Maintain at the airport a copy of (5) Contain procedures for limited ap-
the airport’s TSA-approved security proval of pilots who violate the Wash-
procedures; ington, DC, Metropolitan Area Flight
(4) Maintain at the airport a copy of Restricted Zone and are forced to land
each Federal Aviation Administration at the airport.
Notice to Airmen and rule that affects (6) Contain any additional procedures
security procedures at the Maryland required by TSA to provide for the se-
Three Airports; and curity of aircraft operations to or from
(5) Permit officials authorized by the airport.
TSA to inspect— (d) Amendments to security procedures.
(i) The airport; Airport security procedures approved
(ii) The airport’s TSA-approved secu- by TSA remain in effect unless TSA de-
rity procedures; and termines that—
(iii) Any other documents required
(1) Operations at the airport have not
under this section.
been conducted in accordance with
(b) Airport security coordinator require-
those procedures; or
ments. Each airport security coordi-
nator for a Maryland Three Airport (2) The procedures must be amended
must be approved by TSA. To obtain to provide for the security of aircraft
TSA approval, an airport security coor- operations to or from the airport.
dinator must: (e) Pilot requirements for TSA approval.
(1) Present to TSA, in a form and Except as specified in paragraph (g) of
manner acceptable to TSA, his or her— this section, each pilot of an aircraft
(i) Name; operating to or from any of the Mary-
(ii) Social Security Number; land Three Airports must be approved
(iii) Date of birth; by TSA. To obtain TSA approval, a
(iv) Address; pilot must:
(v) Phone number; and (1) Present to TSA—
(vi) Fingerprints. (i) The pilot’s name;
(2) Successfully complete a TSA ter- (ii) The pilot’s Social Security Num-
rorist threat assessment; and ber;
(3) Not have been convicted or found (iii) The pilot’s date of birth;
not guilty by reason of insanity, in any (iv) The pilot’s address;
jurisdiction, during the 10 years prior (v) The pilot’s phone number;
to applying for authorization to oper- (vi) The pilot’s current and valid air-
ate to or from the airport, or while au- man certificate or current student
thorized to operate to or from the air- pilot certificate;
port, of any crime specified in 49 CFR
(vii) The pilot’s current medical cer-
1542.209 or 1572.103.
tificate;
(c) Security procedures. To be ap-
proved by TSA, an airport’s security (viii) One form of Government-issued
procedures, at a minimum, must: picture identification of the pilot;
(1) Identify and provide contact infor- (ix) The pilot’s fingerprints, in a form
mation for the airport’s airport secu- and manner acceptable to TSA; and
rity coordinator. (x) A list containing the make,
(2) Contain a current record of the in- model, and registration number of each
dividuals and aircraft authorized to op- aircraft that the pilot intends to oper-
erate to or from the airport. ate to or from the airport.
(3) Contain procedures to— (2) Successfully complete a TSA ter-
(i) Monitor the security of aircraft at rorist threat assessment.
the airport during operational and non- (3) Receive a briefing acceptable to
operational hours; and TSA and the Federal Aviation Admin-
(ii) Alert the aircraft owner(s) and istration that describes procedures for
operator(s), the airport operator, and operating to and from the airport.
TSA of unsecured aircraft. (4) Not have been convicted or found
(4) Contain procedures to implement not guilty by reason of insanity, in any
and maintain security awareness pro- jurisdiction, during the 10 years prior
cedures at the airport.
383
to applying for authorization to oper- aeromedical services aircraft on an au-

ate to or from the airport, or while authorized mission to or from any of the
thorized to operate to or from the air- Maryland Three Airports provided that
port, of any crime specified in 49 CFR the individual complies with any re-
1542.209 or 1572.103. quirements for operating to or from
(5) Not, in TSA’s discretion, have a the airport specified by TSA or the
record on file with the Federal Avia- Federal Aviation Administration.
tion Administration of a violation of— (i) Continuing responsibilities. (1) If an
(i) A prohibited area designated airport security coordinator, or a pilot
under 14 CFR part 73; who is approved to operate to or from
(ii) A flight restriction established any of the Maryland Three Airports, is
under 14 CFR 91.141; convicted or found not guilty by reason
(iii) Special security instructions of insanity, in any jurisdiction, of any
issued under 14 CFR 99.7; crime specified in 49 CFR 1542.209 or
(iv) A restricted area designated 1572.103, the airport security coordi-
under 14 CFR part 73; nator or pilot must notify TSA within
(v) Emergency air traffic rules issued 24 hours of the conviction or finding of
under 14 CFR 91.139; not guilty by reason of insanity. TSA
(vi) A temporary flight restriction may withdraw its approval of the air-
designated under 14 CFR 91.137, 91.138, port security coordinator or pilot as a
or 91.145; or result of the conviction or finding of
(vii) An area designated under 14 CFR not guilty by reason of insanity.
91.143. (2) If a pilot who is approved to oper-
(f) Additional pilot requirements. Ex- ate to or from any of the Maryland
cept as specified in paragraph (g) of Three Airports commits any of the vio-
this section, each pilot of an aircraft lations described in paragraph (e)(5) of
operating to or from any of the Mary- this section, the pilot must notify TSA
land Three Airports must: within 24 hours of the violation. TSA,
(1) Protect from unauthorized disclo- in its discretion, may withdraw its ap-
sure any identification information proval of the pilot as a result of the
issued by TSA or the Federal Aviation violation.
Administration for the conduct of oper- (3) If an airport security coordinator,
ations to or from the airport. or a pilot who is approved to operate to
(2) Secure the aircraft after returning or from any of the Maryland Three Air-
to the airport from any flight. ports, is determined by TSA to pose a
(3) Comply with any other require- threat to national or transportation se-
ments for operating to or from the air- curity, or a threat of terrorism, TSA
port specified by TSA or the Federal may withdraw its approval of the air-
Aviation Administration. port security coordinator or pilot.
(g) Operations to any of the Maryland (j) Waivers. TSA, in coordination with
Three Airports. A pilot who is approved the Federal Aviation Administration,
by TSA in accordance with paragraph the United States Secret Service, and
(d) of this section may operate an air- any other relevant agency, may permit
craft to any of the Maryland Three Air- an operation to or from any of the
ports, provided that the pilot— Maryland Three Airports, in deviation
(1) Files an instrument flight rules or from the provisions of this section, if
visual flight rules flight plan with TSA finds that such action—
Leesburg Automated Flight Service (1) Is in the public interest; and
Station; (2) Provides the level of security re-
(2) Obtains an Air Traffic Control quired by this section.
clearance with a discrete transponder
code; and
(3) Follows any arrival/departure pro-
Subpart B—Ronald Reagan Wash-
cedures required by the Federal Avia- ington National Airport: En-
tion Administration. hanced Security Procedures
(h) U.S. Armed forces, law enforcement, for Certain Operations
and aeromedical services aircraft. An in-
dividual may operate a U.S. Armed SOURCE: 70 FR 41600, July 19, 2005, unless
Forces, law enforcement, or otherwise noted.
384
§ 1562.21 Scope, general requirements, DASSP means the aircraft operator

and definitions. security program (DCA Access Stand-
(a) Scope. This subpart applies to air- ard Security Program) approved by
craft operations into or out of Ronald TSA under this part for aircraft oper-
Reagan Washington National Airport ations into and out of DCA.
(DCA), fixed base operators located at FBO means a fixed base operator that
DCA or gateway airports; individuals has been approved by TSA under this
designated as a security coordinator by part to serve as a last point of depar-
aircraft operators or fixed base opera- ture for flights into or out of DCA.
tors; and crewmembers, passengers, FBO Security Program means the se-
and armed security officers on aircraft curity program approved by TSA under
operations subject to this subpart. this part for FBOs to serve flights into
or out of DCA.
(b) General requirements. Each person
Flightcrew member means a pilot,
operating an aircraft into or out of
flight engineer, or flight navigator as-
DCA must comply with this subpart,
signed to duty in an aircraft during
except:
flight time.
(1) Military, law enforcement, and
Gateway airport means an airport
medivac aircraft operations;
that has been approved by TSA under
(2) Federal and State government air- this part as a last point of departure
craft operations operating under an for flights into DCA under this part.
airspace waiver approved by TSA and Passenger means any person on an
the Federal Aviation Administration; aircraft other than a flightcrew mem-
(3) All-cargo aircraft operations; and ber. A ‘‘passenger’’ includes an armed
(4) Passenger aircraft operations con- security officer authorized to carry a
ducted under: firearm in accordance with the rule.
(i) A full security program approved
by TSA in accordance with 49 CFR § 1562.23 Aircraft operator and pas-
1544.101(a); or senger requirements.
(ii) A foreign air carrier security pro- (a) General. To operate into or out of
gram approved by TSA in accordance DCA, an aircraft operator must:
with 49 CFR 1546.101(a) or (b). (1) Designate a security coordinator
(c) Other security programs. Each air- responsible for implementing the
craft operator required to comply with DASSP and other security require-
this subpart for an aircraft operation ments required under this section, and
into or out of DCA must also comply provide TSA with the security coordi-
with any other TSA-approved security nator’s contact information and avail-
program that covers that operation. If ability in accordance with the DASSP.
any requirements of the DASSP con- (2) Adopt and carry out the DASSP.
flict with the requirements of another (3) Ensure that each crewmember of
TSA-approved security program, the an aircraft operating into or out of
aircraft operation must be conducted DCA meets the requirements of para-
in accordance with the requirements of graph (c) of this section.
the DASSP. (4) Apply for and receive a reserva-
(d) Definitions. For purposes of this tion from the Federal Aviation Admin-
subpart, the following definitions istration and authorization from TSA
apply: for each flight into and out of DCA in
Armed Security Officer Program means accordance with paragraph (d) of this
the security program approved by TSA, section.
in coordination with the Federal Air (5) Comply with the operating re-
Marshal Service, for security officers quirements in paragraph (e) of this sec-
authorized to carry a firearm under tion for each flight into and out of
§ 1562.29 of this part. DCA.
Crewmember means a person assigned (6) Pay any costs and fees required
to perform duty in an aircraft during under this part.
flight time. This does not include an (7) Restrict the distribution, disclo-
armed security officer. sure, and availability of sensitive secu-
DCA means Ronald Reagan Wash- rity information (SSI), as defined in

ington National Airport. part 1520 of this chapter, to persons
385
with a need to know, and refer all re- 1544.229, or 1544.230 of this chapter with
quests for SSI by other persons to TSA. his or her current employer.
(8) Comply with any additional secu- (2) Must not have a record on file
rity procedures required by TSA with the Federal Aviation Administra-
through order, Security Directive, or tion of a violation of—
other means. (i) A prohibited area designated
(b) Security coordinator. Each security under 14 CFR part 73;
coordinator designated by an aircraft (ii) A flight restriction established
operator under paragraph (a) of this under 14 CFR 91.141;
section: (iii) Special security instructions
(1) Must undergo a fingerprint-based issued under 14 CFR 99.7;
criminal history records check that (iv) A restricted area designated
does not disclose that he or she has a under 14 CFR part 73;
disqualifying criminal offense as de- (v) Emergency air traffic rules issued
scribed in § 1544.229(d) of this chapter. under 14 CFR 91.139;
This standard is met if the security co- (vi) A temporary flight restriction
ordinator is in compliance with the fin- designated under 14 CFR 91.137, 91.138,
gerprint-based criminal history records or 91.145; or
check requirements of §§ 1542.209, (vii) An area designated under 14 CFR
1544.229, or 1544.230 of this chapter with 91.143.
his or her current employer.
(3) May, if informed that a disquali-
(2) Must submit to TSA his or her:
fying offense has been disclosed, cor-
(i) Legal name, including first, mid-
rect the record in accordance with the
dle, and last; any applicable suffix, and
procedures set forth in paragraphs (h)
any other names used.
and (i) of § 1544.229 of this chapter re-
(ii) Current mailing address, includ-
garding notification and correction of
ing residential address if different than
records.
current mailing address.
(d) Flight authorization requirements.
(iii) Date and place of birth.
To receive authorization to operate an
(iv) Social security number, (submis-
aircraft into or out of DCA, an aircraft
sion is voluntary, although rec-
operator must follow the procedures in
ommended).
this paragraph.
(v) Citizenship status and date of nat-
uralization if the individual is a natu- (1) The aircraft operator must apply
ralized citizen of the United States. to the Federal Aviation Administra-
(vi) Alien registration number, if ap- tion for a tentative reservation, in a
plicable. form and manner approved by the Fed-
(3) Must successfully complete a TSA eral Aviation Administration.
security threat assessment. (2) The aircraft operator must submit
(4) May, if informed that a disquali- to TSA, in a form and manner approved
fying offense has been disclosed, cor- by TSA, the following information at
rect the record in accordance with the least 24 hours prior to aircraft depar-
procedures set forth in paragraphs (h) ture:
and (i) of § 1544.229 of this chapter re- (i) For each passenger and crew-
garding notification and correction of member on the aircraft:
records. (A) Legal name, including first, mid-
(c) Flightcrew member requirements. dle, and last; any applicable suffix, and
Each flightcrew member of an aircraft, any other names used.
as defined in 49 CFR 1540.5, operating (B) Current mailing address, includ-
into or out of DCA: ing residential address if different than
(1) Must undergo a fingerprint-based current mailing address.
criminal history records check that (C) Date and place of birth.
does not disclose that he or she has a (D) Social security number, (submis-
disqualifying criminal offense as de- sion is voluntary, although rec-
scribed in § 1544.229(d) of this chapter. ommended).
This standard is met if the flightcrew (E) Citizenship status and date of
member is in compliance with the fin- naturalization if the individual is a
gerprint-based criminal history records naturalized citizen of the United

check requirements of §§ 1542.209, States.
386
(F) Alien registration number, if ap- (4) Ensure that each aircraft oper-
plicable. ating into or out of DCA has been
(ii) The registration number of the searched in accordance with the
aircraft. DASSP.
(iii) The flight plan. (5) Ensure that each passenger and
(iv) Any other information required crewmember on an aircraft operating
by TSA. into or out of DCA provides TSA with
(3) TSA will conduct a name-based a valid government-issued picture iden-
security threat assessment for each tification in accordance with the
passenger and crewmember. If TSA no- DASSP.
tifies the aircraft operator that a pas- (6) If the aircraft operating into or
senger or crewmember may pose a se- out of DCA is equipped with a cockpit
curity threat, the aircraft operator door, ensure that the door is closed and
must ensure that the passenger or locked at all times during the oper-
crewmember does not board the air- ation of the aircraft to or from DCA,
craft before the aircraft departs out of unless Federal Aviation Administra-
DCA or out of a gateway airport to tion regulations require the door to re-
DCA. main open.
(4) If TSA approves the flight, TSA (7) Ensure that each aircraft oper-
will transmit such approval to the Fed- ating into or out of DCA has onboard
eral Aviation Administration for as- at least one armed security officer who
signment of a final reservation to oper- meets the requirements of § 1562.29 of
ate into or out of DCA. Once the Fed- this chapter. This requirement does
eral Aviation Administration assigns not apply if—
the final reservation, TSA will notify (i) There is a Federal Air Marshal on-
the aircraft operator. board; or
(5) TSA may, at its discretion, cancel (ii) The aircraft is being flown with-
any or all flight approvals at any time out passengers into DCA to pick up
without prior notice to the aircraft op- passengers, or out of DCA after
erator. deplaning all passengers.
(6) TSA may, at its discretion, permit
(8) Ensure that an aircraft operating
a flight into or out of DCA to deviate
into or out of DCA has any Federal Air
from the requirements of this subpart,
Marshal onboard, at no cost to the Fed-
if TSA finds that such action would not
eral Government, if TSA or the Federal
be detrimental to transportation secu-
Air Marshal Service so requires.
rity or the safe operation of the air-
craft. (9) Notify the National Capital Re-
(7) TSA may, at its discretion, region Coordination Center prior to de-
quire any flight into or out of DCA parture of the aircraft from DCA or a
under this subpart to comply with ad- gateway airport.
ditional security measures. (10) Ensure that each aircraft oper-
(e) Operating requirements. Each air- ating into or out of DCA operates
craft operator must: under instrument flight rules.
(1) Ensure that each flight into DCA (11) Ensure that each passenger com-
departs from a gateway airport and plies with any security measures man-
makes no intermediate stops before ar- dated by TSA.
rival at DCA. (12) Ensure that no prohibited items
(2) Ensure that each passenger and are onboard the aircraft.
crewmember on an aircraft operating (f) Compliance. (1) Each aircraft oper-
into or out of DCA has been screened in ator must:
accordance with the DASSP prior to (i) Permit TSA to conduct any in-
boarding the aircraft. spections or tests, including copying
(3) Ensure that all accessible prop- records, to determine compliance with
erty and property in inaccessible cargo this part and the DASSP.
holds on an aircraft operating into or (ii) At the request of TSA, provide
out of DCA has been screened in ac- evidence of compliance with this part
cordance with the DASSP prior to and the DASSP, including copies of
boarding the aircraft. records.
387
(2) Noncompliance with this part or (5) Perform any other duties required
the DASSP may result in the cancella- under the FBO Security Program.
tion of an aircraft operator’s flight ap- (c) Compliance. (1) Each FBO must:
provals and other remedial or enforce- (i) Permit TSA to conduct any in-
ment action, as appropriate. spections or tests, including copying
(g) Passenger requirements. Each pas- records, to determine compliance with
senger, including each armed security this part and the FBO Security Pro-
officer, who boards or attempts to gram.
board an aircraft under this section (ii) At the request of TSA, provide
must: evidence of compliance with this part
(1) Provide information to the air- and the FBO Security Program, includ-
craft operator as provided in this sec- ing copies of records.
tion. (2) Noncompliance with this part or
(2) Provide to TSA upon request a the FBO Security Program may result
valid government-issued photo identi- in the cancellation of an aircraft oper-
fication. ator’s flight approvals and other reme-
(3) Comply with security measures as dial or enforcement action, as appro-
conveyed by the aircraft operator. priate.
(4) Comply with all applicable regula-
tions in this chapter, including § 1562.27 Costs.
§ 1540.107 regarding submission to
(a) Each aircraft operator must pay a
screening and inspection, § 1540.109 re-
threat assessment fee of $15 for each
garding prohibition against inter-
passenger and crewmember whose in-
ference with screening personnel, and
formation the aircraft operator sub-
§ 1540.111 regarding carriage of weapons,
mits to TSA in accordance with
explosives, and incendiaries by individ-
§ 1562.23(d) of this part.
uals.
(b) Each aircraft operator must pay
§ 1562.25 Fixed base operator require- to TSA the costs associated with car-
ments. rying out this subpart, as provided in
its DASSP.
(a) Security program. Each FBO must
adopt and carry out an FBO Security (c) All fees and reimbursement must
Program. be remitted to TSA in a form and man-
(b) Screening and other duties. Each ner approved by TSA.
FBO must— (d) TSA will not issue any refunds,
(1) Designate a security coordinator unless any fees or reimbursement funds
who meets the requirements in were paid in error.
§ 1562.23(b) of this part and is respon- (e) If an aircraft operator does not
sible for implementing the FBO Secu- remit to TSA the fees and reimburse-
rity Program and other security re- ment funds required under this section,
quirements required under this section, TSA may decline to process any re-
and provide TSA with the security co- quests for authorization from the air-
ordinator’s contact information and craft operator.
availability in accordance with the
§ 1562.29 Armed security officer re-
FBO Security Program. quirements.
(2) Support the screening of persons
and property in accordance with the re- (a) General. Unless otherwise author-
quirements of this subpart and the ized by TSA, each armed security offi-
FBO Security Program. cer must meet the following require-
(3) Support the search of aircraft in ments:
accordance with the requirements of (1) Be qualified to carry a firearm in
this subpart and the FBO Security Pro- accordance with paragraph (b) of this
gram. section.
(4) Restrict the distribution, disclo- (2) Successfully complete a TSA se-
sure, and availability of sensitive secu- curity threat assessment as described
rity information (SSI), as defined in in paragraph (c) of this section.
part 1520 of this chapter, to persons (3) Meet such other requirements as
with a need to know, and refer all re- TSA, in coordination with the Federal
quests for SSI by other persons to TSA. Air Marshal Service, may establish in
388
the Armed Security Officer Security (vi) Is not prohibited by Federal law
Program. from receiving a firearm.
(4) Be authorized by TSA, in coordi- (3) Other individuals. Any other indi-
nation with the Federal Air Marshal vidual must—
Service, under 49 U.S.C. 44903(d). (i) Meet qualifications established by
(b) Qualifications. To be qualified to TSA, in coordination with the Federal
carry a firearm under this subpart, an Air Marshal Service, in the Armed Se-
individual must meet the requirements curity Officer Program;
in paragraph (1), (2), or (3) of this sec- (ii) Not be under the influence of al-
tion, unless otherwise authorized by cohol or another intoxicating or hallu-
TSA, in coordination with the Federal cinatory drug or substance; and
Air Marshal Service. (iii) Not be prohibited by Federal law
(1) Active law enforcement officers. An from receiving a firearm.
active law enforcement officer must be (c) Threat assessments. To be author-
an employee of a governmental agency ized under this section, each armed se-
who— curity officer:
(i) Is authorized by law to engage in (1) Must undergo a fingerprint-based
or supervise the prevention, detection, criminal history records check that
investigation, or prosecution of, or the does not disclose that he or she has a
incarceration of any person for, any criminal offense that would disqualify
violation of law; him or her from possessing a firearm
(ii) Has statutory powers of arrest; under 18 U.S.C. 922(g).
(iii) Is authorized by the agency to (2) May, if informed that a disquali-
carry a firearm; fying offense has been disclosed, cor-
(iv) Is not the subject of any discipli- rect the record in accordance with the
nary action by the agency; procedures set forth in paragraphs (h)
(v) Is not under the influence of alco- and (i) of § 1544.229 of this chapter re-
hol or another intoxicating or hallu- garding notification and correction of
cinatory drug or substance; and records.
(vi) Is not prohibited by Federal law (3) Must submit to TSA his or her:
from receiving a firearm.
(i) Legal name, including first, mid-
(2) Retired law enforcement officers. A
dle, and last; any applicable suffix, and
retired law enforcement officer must
any other names used.
be an individual who—
(ii) Current mailing address, includ-
(i) Retired in good standing from
ing residential address if different than
service with a public agency as a law
current mailing address.
enforcement officer, other than for rea-
sons of mental instability; (iii) Date and place of birth.
(ii) Before such retirement, was au- (iv) Social security number, (submis-
thorized by law to engage in or super- sion is voluntary, although rec-
vise the prevention, detection, inves- ommended).
tigation, or prosecution of, or the in- (v) Citizenship status and date of nat-
carceration of any person for, any vio- uralization if the individual is a natu-
lation of law, and had statutory powers ralized citizen of the United States.
of arrest; (vi) Alien registration number, if ap-
(iii) Before such retirement, was reg- plicable.
ularly employed as a law enforcement (4) Must undergo a threat assessment
officer for an aggregate of 15 years or by TSA prior to receiving authoriza-
more, or retired from service with such tion under this section and prior to
agency, after completing any applica- boarding an aircraft operating into or
ble probationary period of such service, out of DCA as provided in § 1562.23(d)(1)
due to a service-connected disability, of this part.
as determined by such agency; (d) Training. Each armed security of-
(iv) Has a non-forfeitable right to ficer onboard an aircraft operating into
benefits under the retirement plan of or out of DCA must:
the agency; (1) Have basic law enforcement train-
(v) Is not under the influence of alco- ing acceptable to TSA; and
hol or another intoxicating or hallu- (2) Successfully complete a TSA-ap-

cinatory drug or substance; and proved training course, developed in
389
coordination with the Federal Air Mar- with the Armed Security Officer Pro-
shal Service, at the expense of the gram.
armed security officer. (h) Use of alcohol or intoxicating or
(e) Armed security officer program. (1) hallucinatory drugs or substances. An
Each armed security officer onboard an armed security officer onboard an air-
aircraft operating into or out of DCA craft operating into or out of DCA may
must— not consume alcohol or use an intoxi-
(i) Comply with the Armed Security cating or hallucinatory drug or sub-
Officer Program. stance during the flight and within 8
(ii) Restrict the distribution, disclo- hours before boarding the aircraft.
sure, and availability of sensitive secu- (i) Credential—(1) TSA credential. An
rity information (SSI), as defined in armed security officer under this sec-
part 1520 of this chapter, to persons
tion must carry a credential issued by
with a need to know, and refer all re-
TSA.
quests for SSI by other persons to TSA.
(2) TSA and the Federal Air Marshal (2) Inspection of credential. An armed
Service may conduct random inspec- security officer must present the TSA-
tions of armed security officers to en- issued credential for inspection when
sure compliance with the Armed Secu- requested by an authorized representa-
rity Officer Program. tive of TSA, the Federal Aviation Ad-
(f) Authority to carry firearm. An ministration, the Federal Air Marshal
armed security officer approved under Service, the National Transportation
this section is authorized— Safety Board, any Federal, State, or
(1) To carry a firearm in accordance local law enforcement officer, or any
with the Armed Security Officer Pro- authorized aircraft operator represent-
gram on an aircraft operating under a ative.
DASSP into or out of DCA; and (3) Preflight identification to crew-
(2) To transport a firearm in accord- members. When carrying a firearm, an
ance with the Armed Security Officer armed security officer must identify
Program at any airport as needed to himself or herself to all crewmembers
carry out duties under this subpart, in- either personally or through another
cluding for travel to and from flights member of the crew before the flight.
conducted under this subpart. (j) Suspension or withdrawal of author-
(g) Use of force. Each armed security ization. At the discretion of TSA, au-
officer authorized to carry a firearm thorization under this subpart and 49
under this section may use force, in- U.S.C. 44903(d) is suspended or with-
cluding deadly force, in accordance drawn upon notification by TSA.
390
SUBCHAPTER D—MARITIME AND LAND TRANSPORTATION
SECURITY
PART 1570—GENERAL RULES Assistant Secretary means Assistant

Secretary for Homeland Security,
Sec. Transportation Security Administra-
1570.1 Scope. tion (Assistant Secretary), the highest
1570.3 Terms used in this subchapter. ranking TSA official, or his or her des-
1570.5 Fraud and intentional falsification of ignee, and who is responsible for mak-
records. ing the final determination on the ap-
1570.7 Fraudulent use or manufacture; re-
peal of an intelligence-related check
sponsibilities of persons.
1570.9 Inspection of credential. under this part.
1570.11 Compliance, inspection, and enforce- Commercial drivers license (CDL) is
ment. used as defined in 49 CFR 383.5.
AUTHORITY: 46 U.S.C. 70105; 49 U.S.C. 114, Convicted means any plea of guilty or
5103a, 40113, and 46105; 18 U.S.C. 842, 845; 6 nolo contendere, or any finding of
U.S.C. 469. guilt, except when the finding of guilt
SOURCE: 72 FR 3593, Jan. 25, 2007, unless is subsequently overturned on appeal,
otherwise noted. pardoned, or expunged. For purposes of
this subchapter, a conviction is ex-
§ 1570.1 Scope. punged when the conviction is removed
This part applies to any person in- from the individual’s criminal history
volved in land or maritime transpor- record and there are no legal disabil-
tation as specified in this subchapter. ities or restrictions associated with the
expunged conviction, other than the
§ 1570.3 Terms used in this sub- fact that the conviction may be used
chapter. for sentencing purposes for subsequent
For purposes of this subchapter: convictions. In addition, where an indi-
Adjudicate means to make an admin- vidual is allowed to withdraw an origi-
istrative determination of whether an nal plea of guilty or nolo contendere
applicant meets the standards in this and enter a plea of not guilty and the
subchapter, based on the merits of the case is subsequently dismissed, the in-
issues raised. dividual is no longer considered to have
Alien means any person not a citizen a conviction for purposes of this sub-
or national of the United States. chapter.
Alien registration number means the Determination of No Security Threat
number issued by the U.S. Department means an administrative determina-
of Homeland Security to an individual tion by TSA that an individual does
when he or she becomes a lawful per- not pose a security threat warranting
manent resident of the United States denial of an HME or a TWIC.
or attains other lawful, non-citizen sta- Federal Maritime Security Coordinator
tus. (FMSC) has the same meaning as de-
Applicant means a person who has ap- fined in 46 U.S.C. 70103(a)(2)(G); is the
plied for one of the security threat as- Captain of the Port (COTP) exercising
sessments identified in this subchapter. authority for the COTP zones described
Assistant Administrator for Threat As- in 33 CFR part 3, and is the Port Facil-
sessment and Credentialing (Assistant ity Security Officer as described in the
Administrator) means the officer des- International Ship and Port Facility
ignated by the Assistant Secretary to Security (ISPS) Code, part A.
administer the appeal and waiver pro- Final Determination of Threat Assess-
grams described in this part, except ment means a final administrative de-
where the Assistant Secretary is spe- termination by TSA, including the res-
cifically designated in this part to ad- olution of related appeals, that an indi-
minister the appeal or waiver program. vidual poses a security threat war-
The Assistant Administrator may ap- ranting denial of an HME or a TWIC.
point a designee to assume his or her Hazardous materials endorsement

duties. (HME) means the authorization for an
391
individual to transport hazardous ma- Maritime facility has the same mean-
terials in commerce, an indication of ing as ‘‘facility’’ together with ‘‘OCS
which must be on the individual’s com- facility’’ (Outer Continental Shelf fa-
mercial driver’s license, as provided in cility), as defined in 33 CFR 101.105.
the Federal Motor Carrier Safety Ad- Mental health facility means a mental
ministration (FMCSA) regulations in institution, mental hospital, sani-
49 CFR part 383. tarium, psychiatric facility, and any
Imprisoned or imprisonment means other facility that provides diagnoses
confined to a prison, jail, or institution by licensed professionals of mental re-
for the criminally insane, on a full- tardation or mental illness, including a
time basis, pursuant to a sentence im- psychiatric ward in a general hospital.
posed as the result of a criminal con- National of the United States means a
viction or finding of not guilty by rea- citizen of the United States, or a per-
son of insanity. Time spent confined or son who, though not a citizen, owes
restricted to a half-way house, treat- permanent allegiance to the United
ment facility, or similar institution, States, as defined in 8 U.S.C.
pursuant to a sentence imposed as the 1101(a)(22), and includes American
result of a criminal conviction or find- Samoa and Swains Island.
ing of not guilty by reason of insanity, Owner/operator with respect to a mar-
does not constitute imprisonment for itime facility or a vessel has the same
purposes of this rule.
meaning as defined in 33 CFR 101.105.
Incarceration means confined or oth-
Revocation means the termination,
erwise restricted to a jail-type institu-
deactivation, rescission, invalidation,
tion, half-way house, treatment facil-
ity, or another institution, on a full or cancellation, or withdrawal of the
part-time basis, pursuant to a sentence privileges and duties conferred by an
imposed as the result of a criminal con- HME or TWIC, when TSA determines
viction or finding of not guilty by rea- an applicant does not meet the secu-
son of insanity. rity threat assessment standards of 49
Initial Determination of Threat Assess- CFR part 1572.
ment means an initial administrative Secure area means the area on board a
determination by TSA that an appli- vessel or at a facility or outer conti-
cant poses a security threat war- nental shelf facility, over which the
ranting denial of an HME or a TWIC. owner/operator has implemented secu-
Initial Determination of Threat Assess- rity measures for access control, as de-
ment and Immediate Revocation means fined by a Coast Guard approved secu-
an initial administrative determina- rity plan. It does not include passenger
tion that an individual poses a security access areas or public access areas, as
threat that warrants immediate rev- those terms are defined in 33 CFR
ocation of an HME or invalidation of a 104.106 and 105.106 respectively. Vessels
TWIC. In the case of an HME, the State operating under the waivers provided
must immediately revoke the HME if for at 46 U.S.C. 8103(b)(3)(A) or (B) have
TSA issues an Initial Determination of no secure areas. Facilities subject to 33
Threat Assessment and Immediate CFR chapter I, subchapter H, part 105
Revocation. In the case of a TWIC, TSA may, with approval of the Coast Guard,
invalidates the TWIC when TSA issues designate only those portions of their
an Initial Determination of Threat As- facility that are directly connected to
sessment and Immediate Revocation. maritime transportation or are at risk
Invalidate means the action TSA of being involved in a transportation
takes to make a credential inoperative security incident as their secure areas.
when it is reported as lost, stolen, dam- Security threat means an individual
aged, no longer needed, or when TSA whom TSA determines or suspects of
determines an applicant does not meet posing a threat to national security; to
the security threat assessment stand- transportation security; or of ter-
ards of 49 CFR part 1572. rorism.
Lawful permanent resident means an Sensitive security information (SSI)
alien lawfully admitted for permanent means information that is described in,
residence, as defined in 8 U.S.C. and must be managed in accordance

1101(a)(20). with, 49 CFR part 1520.
392
Transportation Security Administration, DHS Pt. 1572
State means a State of the United § 1570.9 Inspection of credential.

States and the District of Columbia. (a) Each person who has been issued
Transportation Worker Identification or possesses a TWIC must present the
Credential (TWIC) means a Federal bio- TWIC for inspection upon a request
metric credential, issued to an indi- from TSA, the Coast Guard, or other
vidual, when TSA determines that the authorized DHS representative; an au-
individual does not pose a security thorized representative of the National
threat. Transportation Safety Board; or a Fed-
Withdrawal of Initial Determination of eral, State, or local law enforcement
Threat Assessment is the document that officer.
TSA issues after issuing an Initial De- (b) Each person who has been issued
termination of Security Threat, when or who possesses a TWIC must allow
TSA determines that an individual his or her TWIC to be read by a reader
does not pose a security threat that and must submit his or her reference
warrants denial of an HME or TWIC. biometric, such as a fingerprint, and
any other required information, such
[72 FR 3593, Jan. 25, 2007; 72 FR 14050, Mar. 26,
2007] as a PIN, to the reader, upon a request
from TSA, the Coast Guard, other au-
§ 1570.5 Fraud and intentional fal- thorized DHS representative; or a Fed-
sification of records. eral, State, or local law enforcement
officer.
No person may make, cause to be
made, attempt, or cause to attempt § 1570.11 Compliance, inspection, and
any of the following: enforcement.
(a) Any fraudulent or intentionally (a) Each owner/operator must allow
false statement in any record or report TSA, at any time or place, to make
that is kept, made, or used to show any inspections or tests, including
compliance with the subchapter, or ex- copying records, to determine compli-
ercise any privileges under this sub- ance of an owner/operator with—
chapter. (1) This subchapter and part 1520 of
(b) Any reproduction or alteration, this chapter; and
for fraudulent purpose, of any record, (2) 46 U.S.C. 70105 and 49 U.S.C. 114.
report, security program, access me- (b) At the request of TSA, each
dium, or identification medium issued owner/operator must provide evidence
under this subchapter or pursuant to of compliance with this subchapter and
standards in this subchapter. part 1520 of this chapter, including cop-
ies of records.
§ 1570.7 Fraudulent use or manufac-
ture; responsibilities of persons.
PART 1572—CREDENTIALING AND
(a) No person may use or attempt to SECURITY THREAT ASSESSMENTS
use a credential, security threat assess-
ment, access control medium, or iden- Subpart A—Procedures and General
tification medium issued or conducted Standards
under this subchapter that was issued
or conducted for another person. Sec.
(b) No person may make, produce, 1572.1 Applicability.
use or attempt to use a false or fraudu- 1572.3 Scope.
1572.5 Standards for security threat assess-
lently created access control medium, ments.
identification medium or security 1572.7 [Reserved]
threat assessment issued or conducted 1572.9 Applicant information required for
under this subchapter. HME security threat assessment.
(c) No person may tamper or inter- 1572.11 Applicant responsibilities for HME
fere with, compromise, modify, at- security threat assessment.
tempt to circumvent, or circumvent 1572.13 State responsibilities for issuance of
hazardous materials endorsement.
TWIC access control procedures. 1572.15 Procedures for HME security threat
(d) No person may cause or attempt assessment.
to cause another person to violate 1572.17 Applicant information required for

paragraphs (a)–(c) of this section. TWIC security threat assessment.
393
1572.19 Applicant responsibilities for a (a) State agencies responsible for
TWIC security threat assessment. issuing a hazardous materials endorse-
1572.21 Procedures for TWIC security threat ment (HME); and
assessment. (b) An applicant who—
1572.23 TWIC expiration.
(1) Is qualified to hold a commercial
1572.24–1572.40 [Reserved]
driver’s license under 49 CFR parts 383
Subpart B—Qualification Standards for and 384, and is applying to obtain,
Security Threat Assessments renew, or transfer an HME; or
(2) Is applying to obtain or renew a
1572.101 Scope. TWIC in accordance with 33 CFR parts
1572.103 Disqualifying criminal offenses. 104 through 106 or 46 CFR part 10; is a
1572.105 Immigration status. commercial driver licensed in Canada
1572.107 Other analyses.
or Mexico and is applying for a TWIC
1572.109 Mental capacity.
1572.111–1572.139 [Reserved] to transport hazardous materials in ac-
cordance with 49 CFR 1572.201; or other
Subpart C—Transportation of Hazardous individuals approved by TSA.
Materials From Canada or Mexico To [72 FR 3595, Jan. 25, 2007, as amended at 72
and Within the United States by Land FR 55048, Sept. 28, 2007]
Modes
§ 1572.5 Standards for security threat
1572.201 Transportation of hazardous mate- assessments.
rials via commercial motor vehicle from
Canada or Mexico to and within the (a) Standards. TSA determines that
United States. an applicant poses a security threat
1572.203 Transportation of explosives from warranting denial of an HME or TWIC,
Canada to the United States via railroad if—
carrier. (1) The applicant has a disqualifying
criminal offense described in 49 CFR
Subpart D [Reserved] 1572.103;
Subpart E—Fees for Security Threat (2) The applicant does not meet the
Assessments for Hazmat Drivers immigration status requirements de-
scribed in 49 CFR 1572.105;
1572.400 Scope and definitions. (3) TSA conducts the analyses de-
1572.401 Fee collection options. scribed in 49 CFR 1572.107 and deter-
1572.403 Procedures for collection by States. mines that the applicant poses a secu-
1572.405 Procedures for collection by TSA. rity threat; or
(4) The applicant has been adju-
Subpart F—Fees for Security Threat Assess-
dicated as lacking mental capacity or
ments for Transportation Worker Identi-
committed to a mental health facility,
fication Credential (TWIC)
as described in 49 CFR 1572.109.
1572.500 Scope. (b) Immediate Revocation/Invalidation.
1572.501 Fee collection. TSA may invalidate a TWIC or direct a
AUTHORITY: 46 U.S.C. 70105; 49 U.S.C. 114, State to revoke an HME immediately,
5103a, 40113, and 46105; 18 U.S.C. 842, 845; 6 if TSA determines during the security
U.S.C. 469. threat assessment that an applicant
poses an immediate threat to transpor-
SOURCE: 72 FR 3595, Jan. 25, 2007, unless
otherwise noted. tation security, national security, or of
terrorism.
(c) Violation of FMCSA Standards. The
Subpart A—Procedures and regulations of the Federal Motor Car-
General Standards rier Safety Administration (FMCSA)
provide that an applicant is disquali-
§ 1572.1 Applicability.
fied from operating a commercial
This part establishes regulations for motor vehicle for specified periods, if
credentialing and security threat as- he or she has an offense that is listed
sessments for certain maritime and in the FMCSA rules at 49 CFR 383.51. If
land transportation workers. records indicate that an applicant has
committed an offense that would dis-
§ 1572.3 Scope.
qualify the applicant from operating a

This part applies to— commercial motor vehicle under 49
394
CFR 383.51, TSA will not issue a Deter- and Border Protection, is comparable
mination of No Security Threat until to the security threat assessment de-
the State or the FMCSA determine scribed in this part.
that the applicant is not disqualified
under that section. § 1572.7 [Reserved]
(d) Waiver. In accordance with the re-
§ 1572.9 Applicant information re-
quirements of § 1515.7, applicants may quired for HME security threat as-
apply for a waiver of certain security sessment.
threat assessment standards.
An applicant must supply the infor-
(e) Comparability of Other Security
mation required in this section, in a
Threat Assessment Standards. TSA may
form acceptable to TSA, when applying
determine that security threat assess-
to obtain or renew an HME. When ap-
ments conducted by other govern-
plying to transfer an HME from one
mental agencies are comparable to the
State to another, 49 CFR 1572.13(e) ap-
threat assessment described in this
plies.
part, which TSA conducts for HME and
(a) Except as provided in (a)(12)
TWIC applicants.
through (16), the applicant must pro-
(1) In making a comparability deter-
vide the following identifying informa-
mination, TSA will consider— tion:
(i) The minimum standards used for (1) Legal name, including first, mid-
the security threat assessment; dle, and last; any applicable suffix; and
(ii) The frequency of the threat as- any other name used previously.
sessment; (2) Current and previous mailing ad-
(iii) The date of the most recent dress, current residential address if it
threat assessment; and differs from the current mailing ad-
(iv) Whether the threat assessment dress, and e-mail address if available. If
includes biometric identification and a the applicant prefers to receive cor-
biometric credential. respondence and notification via e-
(2) To apply for a comparability de- mail, the applicant should so state.
termination, the agency seeking the (3) Date of birth.
determination must contact the Assist- (4) Gender.
ant Program Manager, Attn: Federal (5) Height, weight, hair color, and eye
Agency Comparability Check, Hazmat color.
Threat Assessment Program, Transpor- (6) City, state, and country of birth.
tation Security Administration, 601 (7) Immigration status and, if the ap-
South 12th Street, Arlington, VA 22202– plicant is a naturalized citizen of the
4220. United States, the date of naturaliza-
(3) TSA will notify the public when a tion.
comparability determination is made. (8) Alien registration number, if ap-
(4) An applicant, who has completed plicable.
a security threat assessment that is de- (9) The State of application, CDL
termined to be comparable under this number, and type of HME(s) held.
section to the threat assessment de- (10) Name, telephone number, fac-
scribed in this part, must complete the simile number, and address of the ap-
enrollment process and provide biomet- plicant’s current employer(s), if the ap-
ric information to obtain a TWIC, if plicant’s work for the employer(s) re-
the applicant seeks unescorted access quires an HME. If the applicant’s cur-
to a secure area of a vessel or facility. rent employer is the U.S. military
The applicant must pay the fee listed service, include branch of the service.
in 49 CFR 1572.503 for information col- (11) Whether the applicant is apply-
lection/credential issuance. ing to obtain, renew, or transfer an
(5) TSA has determined that the se- HME or for a waiver.
curity threat assessment for an HME (12) Social security number. Pro-
under this part is comparable to the se- viding the social security number is
curity threat assessment for TWIC. voluntary; however, failure to provide
(6) TSA has determined that the se- it will delay and may prevent comple-
curity threat assessment for a FAST tion of the threat assessment.
card, under the Free and Secure Trade (13) Passport number. This informa-
program administered by U.S. Customs tion is voluntary and may expedite the
395
adjudication process for applicants who or she served, the date of discharge,
are U.S. citizens born abroad. and the type of discharge; and
(14) Department of State Consular (8) Has been informed that Federal
Report of Birth Abroad. This informa- regulations, under 49 CFR 1572.11, im-
tion is voluntary and may expedite the pose a continuing obligation on the
adjudication process for applicants who HME holder to disclose to the State if
are U.S. citizens born abroad. he or she is convicted, or found not
(15) Whether the applicant has pre- guilty by reason of insanity, of a dis-
viously completed a TSA threat assess- qualifying crime, adjudicated as lack-
ment, and if so the date and program ing mental capacity, or committed to a
for which it was completed. This infor- mental health facility.
mation is voluntary and may expedite (c) The applicant must certify and
the adjudication process for applicants date receipt the following statement:
who have completed a TSA security
Privacy Act Notice: Authority: The au-
threat assessment. thority for collecting this information is 49
(16) Whether the applicant currently U.S.C. 114, 40113, and 5103a. Purpose: This in-
holds a federal security clearance, and formation is needed to verify your identity
if so, the date of and agency for which and to conduct a security threat assessment
the clearance was performed. This in- to evaluate your suitability for a hazardous
formation is voluntary and may expe- materials endorsement for a commercial
dite the adjudication process for appli- driver’s license. Furnishing this information,
cants who have completed a federal se- including your SSN or alien registration
number, is voluntary; however, failure to
curity threat assessment. provide it will delay and may prevent com-
(b) The applicant must provide a pletion of your security threat assessment.
statement, signature, and date of sig- Routine Uses: Routine uses of this informa-
nature that he or she— tion include disclosure to the FBI to retrieve
(1) Was not convicted, or found not your criminal history record; to TSA con-
guilty by reason of insanity, of a dis- tractors or other agents who are providing
qualifying crime listed in 49 CFR services relating to the security threat as-
1572.103(b), in a civilian or military ju- sessments; to appropriate governmental
agencies for licensing, law enforcement, or
risdiction, during the seven years be- security purposes, or in the interests of na-
fore the date of the application, or is tional security; and to foreign and inter-
applying for a waiver; national governmental authorities in accord-
(2) Was not released from incarcer- ance with law and international agreement.
ation, in a civilian or military jurisdic-
tion, for committing a disqualifying (d) The applicant must certify and
crime listed in 49 CFR 1572.103(b), dur- date receipt the following statement,
ing the five years before the date of the immediately before the signature line:
application, or is applying for a waiver; The information I have provided on this
(3) Is not wanted, or under indict- application is true, complete, and correct, to
ment, in a civilian or military jurisdic- the best of my knowledge and belief, and is
tion, for a disqualifying criminal of- provided in good faith. I understand that a
fense identified in 49 CFR 1572.103, or is knowing and willful false statement, or an
omission of a material fact on this applica-
applying for a waiver; tion can be punished by fine or imprison-
(4) Was not convicted, or found not ment or both (See section 1001 of Title 18
guilty by reason of insanity, of a dis- United States Code), and may be grounds for
qualifying criminal offense identified denial of a hazardous materials endorsement.
in 49 CFR 1572.103(a), in a civilian or
(e) The applicant must certify the
military jurisdiction, or is applying for
following statement in writing:
a waiver;
(5) Has not been adjudicated as lack- I acknowledge that if the Transportation
ing mental capacity or committed to a Security Administration determines that I
mental health facility involuntarily or pose a security threat, my employer, as list-
is applying for a waiver; ed on this application, may be notified. If
TSA or other law enforcement agency be-
(6) Meets the immigration status re-
comes aware of an imminent threat to a
quirements described in 49 CFR maritime facility or vessel, TSA may pro-
1572.105; vide limited information necessary to reduce
(7) Has or has not served in the mili- the risk of injury or damage to the facility
tary, and if so, the branch in which he or vessel.
396
§ 1572.11 Applicant responsibilities for ceives a Determination of No Security

HME security threat assessment. Threat from TSA.
(a) Surrender of HME. If an individual (b) Each State must notify each indi-
is disqualified from holding an HME vidual holding an HME issued by that
under 49 CFR 1572.5(c), he or she must State that he or she will be subject to
surrender the HME to the licensing the security threat assessment de-
State. Failure to surrender the HME to scribed in this part as part of an appli-
the State may result in immediate rev- cation for renewal of the HME, at least
ocation under 49 CFR 1572.13(a) and/or 60 days prior to the expiration date of
civil penalties. the individual’s HME. The notice must
inform the individual that he or she
(b) Continuing responsibilities. An indi-
may initiate the security threat assess-
vidual who holds an HME must sur-
ment required by this section at any
render the HME as required in para-
time after receiving the notice, but no
graph (a) of this section within 24
later than 60 days before the expiration
hours, if the individual—
date of the individual’s HME.
(1) Is convicted of, wanted, under in- (c) The State that issued an HME
dictment or complaint, or found not may extend the expiration date of the
guilty by reason of insanity, in a civil- HME for 90 days, if TSA has not pro-
ian or military jurisdiction, for a dis- vided a Determination of No Security
qualifying criminal offense identified Threat or a Final Determination of
in 49 CFR 1572.103; or Threat Assessment before the expira-
(2) Is adjudicated as lacking mental tion date. Any additional extension
capacity, or committed to a mental must be approved in advance by TSA.
health facility, as described in 49 CFR (d) Within 15 days of receipt of a De-
1572.109; or termination of No Security Threat or
(3) Renounces or loses U.S. citizen- Final Determination of Threat Assess-
ship or status as a lawful permanent ment from TSA, the State must—
resident; or (1) Update the applicant’s permanent
(4) Violates his or her immigration record to reflect:
status, and/or is ordered removed from (i) The results of the security threat
the United States. assessment;
(c) Submission of fingerprints and infor- (ii) The issuance or denial of an HME;
mation. (1) An HME applicant must sub- and
mit fingerprints and the information (iii) The new expiration date of the
required in 49 CFR 1572.9, in a form ac- HME.
ceptable to TSA, when so notified by (2) Notify the Commercial Drivers Li-
the State, or when the applicant ap- cense Information System (CDLIS) op-
plies to obtain or renew an HME. The erator of the results of the security
procedures outlined in 49 CFR 1572.13(e) threat assessment.
apply to HME transfers. (3) Revoke or deny the applicant’s
(2) When submitting fingerprints and HME if TSA serves the State with a
the information required in 49 CFR Final Determination of Threat Assess-
1572.9, the fee described in 49 CFR ment.
1572.503 must be remitted to TSA. (e) For applicants who apply to
transfer an existing HME from one
§ 1572.13 State responsibilities for State to another, the second State will
issuance of hazardous materials en- not require the applicant to undergo a
dorsement.
new security threat assessment until
Each State must revoke an individ- the security threat assessment renewal
ual’s HME immediately, if TSA in- period established in the preceding
forms the State that the individual issuing State, not to exceed five years,
does not meet the standards for secu- expires.
rity threat assessment in 49 CFR 1572.5 (f) A State that is not using TSA’s
and issues an Initial Determination of agent to conduct enrollment for the se-
Threat Assessment and Immediate curity threat assessment must retain
Revocation. the application and information re-
(a) No State may issue or renew an quired in 49 CFR 1572.9, for at least one
HME for a CDL, unless the State re- year, in paper or electronic form.
397
§ 1572.15 Procedures for HME security (1) Reviews the applicant information
threat assessment. required in 49 CFR 1572.9.
(a) Contents of security threat assess- (2) Searches domestic and inter-
ment. The security threat assessment national Government databases de-
TSA completes includes a fingerprint- scribed in 49 CFR 1572.105, 1572.107, and
based criminal history records check 1572.109.
(CHRC), an intelligence-related back- (3) Adjudicates the results of the
ground check, and a final disposition. check in accordance with 49 CFR
(b) Fingerprint-based check. In order 1572.103, 1572.105, 1572.107, and 1572.109.
to conduct a fingerprint-based CHRC, (d) Final disposition. Following com-
the following procedures must be completion of the procedures described in
pleted: paragraphs (b) and/or (c) of this sec-
(1) The State notifies the applicant tion, the following procedures apply, as
that he or she will be subject to the se- appropriate:
curity threat assessment at least 60 (1) TSA serves a Determination of No
days prior to the expiration of the ap- Security Threat on the State in which
plicant’s HME, and that the applicant the applicant is authorized to hold an
must begin the security threat assess- HME, if TSA determines that an appli-
ment no later than 30 days before the cant meets the security threat assess-
date of the expiration of the HME. ment standards described in 49 CFR
(2) Where the State elects to collect 1572.5.
fingerprints and applicant information, (2) TSA serves an Initial Determina-
the State— tion of Threat Assessment on the appli-
(i) Collects fingerprints and applicant cant, if TSA determines that the appli-
information required in 49 CFR 1572.9; cant does not meet the security threat
(ii) Provides the applicant informa- assessment standards described in 49
tion to TSA electronically, unless oth- CFR 1572.5. The Initial Determination
erwise authorized by TSA; of Threat Assessment includes—
(iii) Transmits the fingerprints to the (i) A statement that TSA has deter-
FBI/Criminal Justice Information mined that the applicant poses a secu-
Services (CJIS), in accordance with the rity threat warranting denial of the
FBI/CJIS fingerprint submission stand- HME;
ards; and (ii) The basis for the determination;
(iv) Retains the signed application, in (iii) Information about how the appli-
paper or electronic form, for one year cant may appeal the determination, as
and provides it to TSA, if requested. described in 49 CFR 1515.5 or 1515.9, as
(3) Where the State elects to have a applicable; and
TSA agent collect fingerprints and ap- (iv) A statement that if the applicant
plicant information— chooses not to appeal TSA’s determina-
(i) TSA provides a copy of the signed tion within 60 days of receipt of the
application to the State; Initial Determination, or does not re-
(ii) The State retains the signed ap- quest an extension of time within 60
plication, in paper or electronic form, days of receipt of the Initial Deter-
for one year and provides it to TSA, if mination in order to file an appeal, the
requested; and Initial Determination becomes a Final
(iii) TSA transmits the fingerprints Determination of Security Threat As-
to the FBI/CJIS, in accordance with sessment.
the FBI/CJIS fingerprint submission (3) TSA serves an Initial Determina-
standards. tion of Threat Assessment and Imme-
(4) TSA receives the results from the diate Revocation on the applicant, the
FBI/CJIS and adjudicates the results of applicant’s employer where appro-
the check, in accordance with 49 CFR priate, and the State, if TSA deter-
1572.103 and, if applicable, 49 CFR mines that the applicant does not meet
1572.107. the security threat assessment stand-
(c) Intelligence-related check. To con- ards described in 49 CFR 1572.5 and may
duct an intelligence-related check, pose an imminent threat to transpor-
TSA completes the following proce- tation or national security, or of ter-

dures: rorism. The Initial Determination of
398
Threat Assessment and Immediate dress, and e-mail address if available. If

Revocation includes— the applicant wishes to receive notifi-
(i) A statement that TSA has deter- cation that the TWIC is ready to be re-
mined that the applicant poses a secu- trieved from the enrollment center via
rity threat warranting immediate rev- telephone rather than e-mail address,
ocation of an HME; the applicant should state this and pro-
(ii) The basis for the determination; vide the correct telephone number.
(iii) Information about how the appli- (3) Date of birth.
cant may appeal the determination, as (4) Gender.
described in 49 CFR 1515.5(h) or (5) Height, weight, hair color, and eye
1515.9(f), as applicable; and color.
(iv) A statement that if the applicant (6) City, state, and country of birth.
chooses not to appeal TSA’s determina- (7) Immigration status, and
tion within 60 days of receipt of the (i) If the applicant is a naturalized
Initial Determination and Immediate citizen of the United States, the date of
Revocation, the Initial Determination naturalization;
and Immediate Revocation becomes a (ii) If the applicant is present in the
Final Determination of Threat Assess- United States based on a Visa, the type
ment. of Visa, the Visa number, and the date
(4) If the applicant does not appeal on which it expires; and
the Initial Determination of Threat As- (iii) If the applicant is a commercial
sessment or Initial Determination of driver licensed in Canada and does not
Threat Assessment and Immediate hold a FAST card, a Canadian passport.
Revocation, TSA serves a Final Deter- (8) If not a national or citizen of the
mination of Threat Assessment on the United States, the alien registration
State in which the applicant applied number and/or the number assigned to
for the HME, the applicant’s employer the applicant on the U.S. Customs and
where appropriate, and on the appli- Border Protection Arrival-Departure
cant, if the appeal of the Initial Deter- Record, Form I–94.
mination results in a finding that the (9) Except as described in paragraph
applicant poses a security threat. (a)(9)(i) of this section, the reason that
(5) If the applicant appeals the Initial the applicant requires a TWIC, includ-
Determination of Threat Assessment ing, as applicable, the applicant’s job
or the Initial Determination of Threat description and the primary facility,
Assessment and Immediate Revoca- vessel, or maritime port location(s)
tion, the procedures in 49 CFR 1515.5 or where the applicant will most likely
1515.9 apply. require unescorted access, if known.
(6) Applicants who do not meet cer- This statement does not limit access to
tain standards in 49 CFR 1572.103, other facilities, vessels, or ports, but
1572.105, or 1572.109 may seek a waiver establishes eligibility for a TWIC.
in accordance with 49 CFR 1515.7. (i) Applicants who are commercial
drivers licensed in Canada or Mexico
§ 1572.17 Applicant information re- who are applying for a TWIC in order
quired for TWIC security threat as- to transport hazardous materials in ac-
sessment. cordance with 49 CFR 1572.201 and not
An applicant must supply the infor- to access secure areas of a facility or
mation required in this section, in a vessel, must explain this in response to
form acceptable to TSA, when applying the information requested in paragraph
to obtain or renew a TWIC. (a)(9) of this section.
(a) Except as provided in (a)(12) (10) The name, telephone number,
through (16), the applicant must pro- and address of the applicant’s current
vide the following identifying informa- employer(s), if working for the em-
tion: ployer requires a TWIC. If the appli-
(1) Legal name, including first, mid- cant’s current employer is the U.S.
dle, and last; any applicable suffix; and military service, include the branch of
any other name used previously. the service. An applicant whose cur-
(2) Current and previous mailing ad- rent employer does not require posses-
dress, current residential address if it sion of a TWIC, does not have a single
differs from the current mailing ad- employer, or is self-employed, must
399
provide the primary vessel or port loca- (3) Is not wanted, or under indict-
tion(s) where the applicant requires ment, in a civilian or military jurisdic-
unescorted access, if known. This tion, for a disqualifying criminal of-
statement does not limit access to fense identified in 49 CFR 1572.103, or is
other facilities, vessels, or ports, but applying for a waiver;
establishes eligibility for a TWIC. (4) Was not convicted, or found not
(11) If a credentialed mariner or ap- guilty by reason of insanity, of a dis-
plying to become a credentialed mar- qualifying criminal offense identified
iner, proof of citizenship as required in in 49 CFR 1572.103(a), in a civilian or
46 CFR chapter I, subchapter B. military jurisdiction, or is applying for
(12) Social security number. Pro- a waiver;
viding the social security number is (5) Has not been adjudicated as lack-
voluntary; however, failure to provide ing mental capacity, or committed to a
it will delay and may prevent comple- mental health facility involuntarily, or
tion of the threat assessment. is applying for a waiver;
(13) Passport number, city of (6) Meets the immigration status re-
issuance, date of issuance, and date of quirements described in 49 CFR
expiration. This information is vol- 1572.105;
untary and may expedite the adjudica- (7) Has, or has not, served in the mili-
tion process for applicants who are tary, and if so, the branch in which he
U.S. citizens born abroad. or she served, the date of discharge,
(14) Department of State Consular and the type of discharge; and
Report of Birth Abroad. This informa- (8) Has been informed that Federal
tion is voluntary and may expedite the regulations under 49 CFR 1572.19 im-
adjudication process for applicants who pose a continuing obligation on the
are U.S. citizens born abroad. TWIC holder to disclose to TSA if he or
(15) Whether the applicant has pre- she is convicted, or found not guilty by
viously completed a TSA threat assess- reason of insanity, of a disqualifying
ment, and if so the date and program crime, adjudicated as lacking mental
for which it was completed. This infor- capacity, or committed to a mental
mation is voluntary and may expedite health facility.
the adjudication process for applicants (c) Applicants, applying to obtain or
who have completed a TSA security
renew a TWIC, must submit biometric
threat assessment.
information to be used for identity
(16) Whether the applicant currently verification purposes. If an individual
holds a federal security clearance, and cannot provide the selected biometric,
if so, the date of and agency for which TSA will collect an alternative biomet-
the clearance was performed. This in- ric identifier.
formation is voluntary and may expe-
(d) The applicant must certify and
dite the adjudication process for appli-
date receipt the following statement:
cants who have completed a federal se-
curity threat assessment. Privacy Act Notice: Authority: The au-
(b) The applicant must provide a thority for collecting this information is 49
statement, signature, and date of sig- U.S.C. 114, 40113, and 5103a. Purpose: This in-
nature that he or she— formation is needed to verify your identity
and to conduct a security threat assessment
(1) Was not convicted, or found not to evaluate your suitability for a Transpor-
guilty by reason of insanity, of a dis- tation Worker Identification Credential.
qualifying crime listed in 49 CFR Furnishing this information, including your
1572.103(b), in a civilian or military ju- SSN or alien registration number, is vol-
risdiction, during the seven years be- untary; however, failure to provide it will
fore the date of the application, or is delay and may prevent completion of your
applying for a waiver; security threat assessment. Routine Uses:
Routine uses of this information include dis-
(2) Was not released from incarcer-
closure to the FBI to retrieve your criminal
ation, in a civilian or military jurisdic- history record; to TSA contractors or other
tion, for committing a disqualifying agents who are providing services relating to
crime listed in 49 CFR 1572.103(b), dur- the security threat assessments; to appro-
ing the five years before the date of the priate governmental agencies for licensing,
application, or is applying for a waiver; law enforcement, or security purposes, or in
400
the interests of national security; and to for- quired to undergo the security threat
eign and international governmental au- assessment described in this part.
thorities in accordance with law and inter- (c) Surrender of TWIC. The TWIC is
national agreement.
property of the Transportation Secu-
(e) The applicant must certify the rity Administration. If an individual is
following statement in writing: disqualified from holding a TWIC under
49 CFR 1572.5, he or she must surrender
As part of my employment duties, I am re- the TWIC to TSA. Failure to surrender
quired to have unescorted access to secure
areas of maritime facilities or vessels in
the TWIC to TSA may result in imme-
which a Transportation Worker Identifica- diate revocation under 49 CFR 1572.5(b)
tion Credential is required; I am now, or I and/or civil penalties.
am applying to be, a credentialed merchant (d) Continuing responsibilities. An indi-
mariner; or I am a commercial driver li- vidual who holds a TWIC must sur-
censed in Canada or Mexico transporting render the TWIC, as required in para-
hazardous materials in accordance with 49 graph (a) of this section, within 24
CFR 1572.201.
hours if the individual—
(f) The applicant must certify and (1) Is convicted of, wanted, under in-
date receipt the following statement, dictment or complaint, or found not
immediately before the signature line: guilty by reason of insanity, in a civil-
ian or military jurisdiction, for a dis-
The information I have provided on this qualifying criminal offense identified
application is true, complete, and correct, to
the best of my knowledge and belief, and is
in 49 CFR 1572.103; or
provided in good faith. I understand that a (2) Is adjudicated as lacking mental
knowing and willful false statement, or an capacity or committed to a mental
omission of a material fact on this applica- health facility, as described in 49 CFR
tion, can be punished by fine or imprison- 1572.109; or
ment or both (see section 1001 of Title 18 (3) Renounces or loses U.S. citizen-
United States Code), and may be grounds for ship or status as a lawful permanent
denial of a Transportation Worker Identi-
fication Credential.
resident; or
(4) Violates his or her immigration
(g) The applicant must certify the status and/or is ordered removed from
following statement in writing: the United States.
I acknowledge that if the Transportation (e) Submission of fingerprints and infor-
Security Administration determines that I mation. (1) TWIC applicants must sub-
pose a security threat, my employer, as list- mit fingerprints and the information
ed on this application, may be notified. If required in 49 CFR 1572.17, in a form ac-
TSA or other law enforcement agency be- ceptable to TSA, to obtain or renew a
comes aware of an imminent threat to a TWIC.
maritime facility or vessel, TSA may pro- (2) When submitting fingerprints and
vide limited information necessary to reduce
the risk of injury or damage to the facility
the information required in 49 CFR
or vessel. 1572.17, the fee required in 49 CFR
1572.503 must be remitted to TSA.
§ 1572.19 Applicant responsibilities for (f) Lost, damaged, or stolen credentials.
a TWIC security threat assessment. If an individual’s TWIC is damaged, or
(a) Implementation schedule. Except as if a TWIC holder loses possession of his
provided in paragraph (b) of this sec- or her credential, he or she must notify
tion, applicants must provide the infor- TSA immediately.
mation required in 49 CFR 1572.17, when [72 FR 3595, Jan. 25, 2007, as amended at 72
so directed by the owner/operator. FR 55048, Sept. 28, 2007]
(b) Implementation schedule for certain
mariners. An applicant, who holds a § 1572.21 Procedures for TWIC secu-
Merchant Mariner Document (MMD) rity threat assessment.
issued after February 3, 2003, and be- (a) Contents of security threat assess-
fore September 25, 2008, or a Merchant ment. The security threat assessment
Marine License (License) issued after TSA conducts includes a fingerprint-
January 13, 2006, and before September based criminal history records check
25, 2008, must submit the information (CHRC), an intelligence-related check,

required in this section, but is not re- and a final disposition.
401
(b) Fingerprint-based check. The fol- (iii) Information about how the appli-
lowing procedures must be completed cant may appeal the determination, as
to conduct a fingerprint-based CHRC: described in 49 CFR 1515.5 or 1515.9, as
(1) Consistent with the implementa- applicable; and
tion schedule described in 49 CFR (iv) A statement that if the applicant
1572.19(a) and (b), and as required in 33 chooses not to appeal TSA’s determina-
CFR 104.200, 105.200, or 106.200, appli- tion within 60 days of receipt of the
cants are notified. Initial Determination, or does not re-
(2) During enrollment, TSA— quest an extension of time within 60
(i) Collects fingerprints, applicant in- days of receipt of the Initial Deter-
formation, and the fee required in 49 mination in order to file an appeal, the
CFR 1572.17; Initial Determination becomes a Final
(ii) Transmits the fingerprints to the Determination of Security Threat As-
FBI/CJIS in accordance with the FBI/ sessment.
CJIS fingerprint submission standards. (3) TSA serves an Initial Determina-
(iii) Receives and adjudicates the re- tion of Threat Assessment and Imme-
sults of the check from FBI/CJIS, in diate Revocation on the applicant, the
accordance with 49 CFR 1572.103 and, if applicant’s employer where appro-
applicable, 49 CFR 1572.107. priate, the FMSC, and in the case of a
(c) Intelligence-related check. To con- mariner applying for a TWIC, on the
duct an intelligence-related check, Coast Guard, if TSA determines that
TSA completes the following proce- the applicant does not meet the secu-
dures: rity threat assessment standards de-
(1) Reviews the applicant information scribed in 49 CFR 1572.5 and may pose
required in 49 CFR 1572.17; an imminent security threat. The Ini-
(2) Searches domestic and inter- tial Determination of Threat Assess-
national Government databases re- ment and Immediate Revocation in-
quired to determine if the applicant cludes—
meets the requirements of 49 CFR (i) A statement that TSA has deter-
1572.105, 1572.107, and 1572.109; mined that the applicant poses a secu-
(3) Adjudicates the results of the rity threat warranting immediate rev-
check in accordance with 49 CFR ocation of a TWIC and unescorted ac-
1572.103, 1572.105, 1572.107, and 1572.109. cess to secure areas;
(d) Final disposition. Following com- (ii) The basis for the determination;
pletion of the procedures described in (iii) Information about how the appli-
paragraphs (b) and/or (c) of this sec- cant may appeal the determination, as
tion, the following procedures apply, as described in 49 CFR 1515.5(h) or
appropriate: 1515.9(f), as applicable; and
(1) TSA serves a Determination of No (iv) A statement that if the applicant
Security Threat on the applicant if chooses not to appeal TSA’s determina-
TSA determines that the applicant tion within 60 days of receipt of the
meets the security threat assessment Initial Determination and Immediate
standards described in 49 CFR 1572.5. In Revocation, the Initial Determination
the case of a mariner, TSA also serves and Immediate Revocation becomes a
a Determination of No Security Threat Final Determination of Threat Assess-
on the Coast Guard. ment.
(2) TSA serves an Initial Determina- (4) If the applicant does not appeal
tion of Threat Assessment on the appli- the Initial Determination of Threat As-
cant if TSA determines that the appli- sessment or Initial Determination of
cant does not meet the security threat Threat Assessment and Immediate
assessment standards described in 49 Revocation, TSA serves a Final Deter-
CFR 1572.5. The Initial Determination mination of Threat Assessment on the
of Threat Assessment includes— FMSC and in the case of a mariner, on
(i) A statement that TSA has deter- the Coast Guard, and the applicant’s
mined that the applicant poses a secu- employer where appropriate.
rity threat warranting denial of the (5) If the applicant appeals the Initial
TWIC;
Determination of Threat Assessment

(ii) The basis for the determination; or the Initial Determination of Threat
402
Assessment and Immediate Revoca- in a civilian or military jurisdiction of

tion, the procedures in 49 CFR 1515.5 or any of the following felonies:
1515.9 apply. (1) Espionage or conspiracy to com-
(6) Applicants who do not meet cer- mit espionage.
tain standards in 49 CFR 1572.103, (2) Sedition, or conspiracy to commit
1572.105, or 1572.109 may seek a waiver sedition.
in accordance with 49 CFR 1515.7. (3) Treason, or conspiracy to commit
treason.
§ 1572.23 TWIC expiration.
(4) A federal crime of terrorism as de-
(a) A TWIC expires five years after fined in 18 U.S.C. 2332b(g), or com-
the date it was issued at the end of the parable State law, or conspiracy to
calendar day, except as follows: commit such crime.
(1) The TWIC was issued based on a (5) A crime involving a transpor-
determination that the applicant com- tation security incident. A transpor-
pleted a comparable threat assessment. tation security incident is a security
If issued pursuant to a comparable incident resulting in a significant loss
threat assessment, the TWIC expires of life, environmental damage, trans-
five years from the date on the creden- portation system disruption, or eco-
tial associated with the comparable nomic disruption in a particular area,
threat assessment. as defined in 46 U.S.C. 70101. The term
(2) The applicant is in a lawful non- ‘‘economic disruption’’ does not in-
immigrant status category listed in clude a work stoppage or other em-
1572.105(a)(7), and the status expires, ployee-related action not related to
the employer terminates the employ- terrorism and resulting from an em-
ment relationship with the applicant, ployer-employee dispute.
or the applicant otherwise ceases work- (6) Improper transportation of a haz-
ing for the employer. Under any of ardous material under 49 U.S.C. 5124, or
these circumstances, TSA deems the a State law that is comparable.
TWIC to have expired regardless of the (7) Unlawful possession, use, sale, dis-
expiration date on the face of the tribution, manufacture, purchase, re-
TWIC. ceipt, transfer, shipping, transporting,
(b) TSA may issue a TWIC for a term import, export, storage of, or dealing in
less than five years to match the expi- an explosive or explosive device. An ex-
ration of a visa. plosive or explosive device includes,
but is not limited to, an explosive or
§§ 1572.24—1572.40 [Reserved]
explosive material as defined in 18
U.S.C. 232(5), 841(c) through 841(f), and
Subpart B—Standards for Security 844(j); and a destructive device, as de-
Threat Assessments fined in 18 U.S.C. 921(a)(4) and 26 U.S.C.
5845(f).
§ 1572.101 Scope. (8) Murder.
This subpart applies to applicants (9) Making any threat, or maliciously
who hold or are applying to obtain or conveying false information knowing
renew an HME or TWIC, or transfer an the same to be false, concerning the de-
HME. Applicants for an HME also are liverance, placement, or detonation of
subject to safety requirements issued an explosive or other lethal device in
by the Federal Motor Carrier Safety or against a place of public use, a state
Administration under 49 CFR part 383 or government facility, a public trans-
and by the State issuing the HME, in- portations system, or an infrastructure
cluding additional immigration status facility.
and criminal history standards. (10) Violations of the Racketeer In-
fluenced and Corrupt Organizations
§ 1572.103 Disqualifying criminal of- Act, 18 U.S.C. 1961, et seq., or a com-
fenses. parable State law, where one of the
(a) Permanent disqualifying criminal of- predicate acts found by a jury or ad-
fenses. An applicant has a permanent mitted by the defendant, consists of
disqualifying offense if convicted, or one of the crimes listed in paragraph

found not guilty by reason of insanity, (a) of this section.
403
(11) Attempt to commit the crimes in lations listed in paragraph (a)(10) of

paragraphs (a)(1) through (a)(4). this section.
(12) Conspiracy or attempt to commit (xv) Conspiracy or attempt to com-
the crimes in paragraphs (a)(5) through mit the crimes in this paragraph (b).
(a)(10). (c) Under want, warrant, or indictment.
(b) Interim disqualifying criminal of- An applicant who is wanted, or under
fenses. (1) The felonies listed in para- indictment in any civilian or military
graphs (b)(2) of this section are dis- jurisdiction for a felony listed in this
qualifying, if either: section, is disqualified until the want
(i) the applicant was convicted, or or warrant is released or the indict-
found not guilty by reason of insanity, ment is dismissed.
of the crime in a civilian or military (d) Determination of arrest status. (1)
jurisdiction, within seven years of the When a fingerprint-based check dis-
date of the application; or closes an arrest for a disqualifying
(ii) the applicant was incarcerated crime listed in this section without in-
for that crime and released from incar- dicating a disposition, TSA will so no-
ceration within five years of the date tify the applicant and provide instruc-
tions on how the applicant must clear
of the TWIC application.
the disposition, in accordance with
(2) The interim disqualifying felonies
paragraph (d)(2) of this section.
are:
(2) The applicant must provide TSA
(i) Unlawful possession, use, sale, with written proof that the arrest did
manufacture, purchase, distribution, not result in conviction for the dis-
receipt, transfer, shipping, trans- qualifying criminal offense, within 60
porting, delivery, import, export of, or days after the service date of the noti-
dealing in a firearm or other weapon. A fication in paragraph (d)(1) of this sec-
firearm or other weapon includes, but tion. If TSA does not receive proof in
is not limited to, firearms as defined in that time, TSA will notify the appli-
18 U.S.C. 921(a)(3) or 26 U.S.C. 5 845(a), cant that he or she is disqualified. In
or items contained on the U.S. Muni- the case of an HME, TSA will notify
tions Import List at 27 CFR 447.21. the State that the applicant is dis-
(ii) Extortion. qualified, and in the case of a mariner
(iii) Dishonesty, fraud, or misrepre- applying for TWIC, TSA will notify the
sentation, including identity fraud and Coast Guard that the applicant is dis-
money laundering where the money qualified.
laundering is related to a crime de-
scribed in paragraphs (a) or (b) of this [72 FR 3595, Jan. 25, 2007; 72 FR 5633, Feb. 7,
2007; 72 FR 14050, Mar. 26, 2007]
section. Welfare fraud and passing bad
checks do not constitute dishonesty, § 1572.105 Immigration status.
fraud, or misrepresentation for pur-
poses of this paragraph. (a) An individual applying for a secu-
(iv) Bribery. rity threat assessment for a TWIC or
HME must be a national of the United
(v) Smuggling.
States or—
(vi) Immigration violations.
(1) A lawful permanent resident of
(vii) Distribution of, possession with the United States;
intent to distribute, or importation of (2) A refugee admitted under 8 U.S.C.
a controlled substance. 1157;
(viii) Arson. (3) An alien granted asylum under 8
(ix) Kidnapping or hostage taking. U.S.C. 1158;
(x) Rape or aggravated sexual abuse. (4) An alien in valid M–1 non-
(xi) Assault with intent to kill. immigrant status who is enrolled in
(xii) Robbery. the United States Merchant Marine
(xiii) Fraudulent entry into a seaport Academy or a comparable State mari-
as described in 18 U.S.C. 1036, or a com- time academy. Such individuals may
parable State law. serve as unlicensed mariners on a docu-
(xiv) Violations of the Racketeer In- mented vessel, regardless of their na-
fluenced and Corrupt Organizations tionality, under 46 U.S.C. 8103.
Act, 18 U.S.C. 1961, et seq., or a com- (5) A nonimmigrant alien admitted

parable State law, other than the vio- under the Compact of Free Association
404
between the United States and the Fed- status listed in paragraph (a)(7) of this
erated States of Micronesia, the United section, or the applicant otherwise
States and the Republic of the Mar- ceases working for the employer, the
shall Islands, or the United States and employer must notify TSA within 5
Palau. business days and provide the TWIC to
(6) An alien in lawful nonimmigrant TSA if possible.
status who has unrestricted authoriza- (e) Any individual in removal pro-
tion to work in the United States, ex- ceedings or subject to an order of re-
cept— moval under the immigration laws of
(i) An alien in valid S–5 (informant of the United States is not eligible to
criminal organization information) apply for a TWIC.
lawful nonimmigrant status; (f) To determine an applicant’s immi-
(ii) An alien in valid S–6 (informant gration status, TSA will check rel-
of terrorism information) lawful non- evant Federal databases and may per-
immigrant status; form other checks, including the valid-
(iii) An alien in valid K–1 (Fianco(e)) ity of the applicant’s alien registration
lawful nonimmigrant status; or number, social security number, or I–94
(iv) An alien in valid K–2 (Minor child Arrival-Departure Form number.
of Fianco(e)) lawful nonimmigrant sta-
tus. FR 55049, Sept. 28, 2007]
(7) An alien in the following lawful
nonimmigrant status who has re- § 1572.107 Other analyses.
stricted authorization to work in the
United States— (a) TSA may determine that an appli-
(i) B1/OCS Business Visitor/Outer cant poses a security threat based on a
Continental Shelf; search of the following databases:
(ii) C–1/D Crewman Visa; (1) Interpol and other international
(iii) H–1B Special Occupations; databases, as appropriate.
(iv) H–1B1 Free Trade Agreement; (2) Terrorist watchlists and related
(v) E–1 Treaty Trader; databases.
(vi) E–3 Australian in Specialty Occu- (3) Any other databases relevant to
pation; determining whether an applicant
(vii) L–1 Intracompany Executive poses, or is suspected of posing, a secu-
Transfer; rity threat, or that confirm an appli-
(viii) O–1 Extraordinary Ability; cant’s identity.
(ix) TN North American Free Trade (b) TSA may also determine that an
Agreement; or applicant poses a security threat, if the
(x) Another authorization that con- search conducted under this part re-
fers legal status, when TSA determines veals extensive foreign or domestic
that the legal status is comparable to criminal convictions, a conviction for a
the legal status set out in paragraphs serious crime not listed in 49 CFR
(a)(7)(i)–(viii) of this section. 1572.103, or a period of foreign or do-
(8) A commercial driver licensed in mestic imprisonment that exceeds 365
Canada or Mexico who is admitted to consecutive days.
the United States under 8 CFR
§ 1572.109 Mental capacity.
214.2(b)(4)(i)(E) to conduct business in
the United States. (a) An applicant has mental inca-
(b) Upon expiration of a non- pacity, if he or she has been—
immigrant status listed in paragraph (1) Adjudicated as lacking mental ca-
(a)(7) of this section, an employer must pacity; or
retrieve the TWIC from the applicant (2) Committed to a mental health fa-
and provide it to TSA. cility.
(c) Upon expiration of a non- (b) An applicant is adjudicated as
immigrant status listed in paragraph lacking mental capacity if—
(a)(7) of this section, an employee must (1) A court, board, commission, or
surrender his or her TWIC to the em- other lawful authority has determined
ployer. that the applicant, as a result of
(d) If an employer terminates an ap- marked subnormal intelligence, mental

plicant working under a nonimmigrant illness, incompetence, condition, or
405
§§ 1572.111–1572.139 49 CFR Ch. XII (10–1–07 Edition)
disease, is a danger to himself or her- that listed as a select agent or toxin in

self or to others, or lacks the mental 42 CFR part 73.
capacity to conduct or manage his or (c) Background check required. A com-
her own affairs. mercial motor vehicle driver who is li-
(2) This includes a finding of insanity censed by Canada or Mexico may not
by a court in a criminal case and a transport hazardous materials into or
finding of incompetence to stand trial; within the United States unless the
or a finding of not guilty by reason of driver has undergone a background
lack of mental responsibility, by any check similar to the one required of
court, or pursuant to articles 50a and U.S.-licensed operators with a haz-
76b of the Uniform Code of Military ardous materials endorsement (HME)
Justice (10 U.S.C. 850a and 876b). on a commercial driver’s license, as
(c) An applicant is committed to a prescribed in 49 CFR 1572.5.
mental health facility if he or she is (d) FAST card. A commercial motor
formally committed to a mental health vehicle driver who holds a current Free
facility by a court, board, commission, and Secure Trade (FAST) program card
or other lawful authority, including in- satisfies the requirements of this sec-
voluntary commitment and commit- tion. Commercial motor vehicle drivers
ment for lacking mental capacity, who wish to apply for a FAST program
mental illness, and drug use. This does card must contact the FAST Commer-
not include commitment to a mental cial Driver Program, Bureau of Cus-
health facility for observation or vol- toms and Border Protection (CBP), De-
untary admission to a mental health partment of Homeland Security.
facility. (e) TWIC. A commercial motor vehi-
cle driver who holds a TWIC satisfies
§§ 1572.111–1572.139 [Reserved]
the requirements of this section. Com-
mercial vehicle drivers who wish to
Subpart C—Transportation of Haz- apply for a TWIC must comply with the
ardous Materials From Can- rules in 49 CFR part 1572.
ada or Mexico To and Within
the United States by Land § 1572.203 Transportation of explosives
from Canada to the United States
Modes via railroad carrier.
§ 1572.201 Transportation of haz- (a) Applicability. This section applies
ardous materials via commercial to railroad carriers that carry explo-
motor vehicle from Canada or Mex- sives from Canada to the United
ico to and within the United States. States, using a train crew member who
(a) Applicability. This section applies is not a U.S. citizen or lawful perma-
to commercial motor vehicle drivers li- nent resident alien of the United
censed by Canada and Mexico. States.
(b) Terms used in this section. The (b) Terms under this section. For pur-
terms used in 49 CFR parts 1500, 1570, poses of this section:
and 1572 also apply in this subpart. In Customs and Border Protection (CBP)
addition, the following terms are used means the Bureau of Customs and Bor-
in this subpart for purposes of this sec- der Protection, an agency within the
tion: U.S. Department of Homeland Secu-
FAST means Free and Secure Trade rity.
program of the Bureau of Customs and Explosive means a material that has
Border Protection (CBP), a cooperative been examined by the Associate Ad-
effort between CBP and the govern- ministrator for Hazardous Materials
ments of Canada and Mexico to coordi- Safety, Research and Special Programs
nate processes for the clearance of Administration, in accordance with 49
commercial shipments at the border. CFR 173.56, and determined to meet the
Hazardous materials means material definition for a Class 1 material in 49
that has been designated as hazardous CFR 173.50.
under 49 U.S.C. 5103 and is required to Known railroad carrier means a person
be placarded under subpart F of 49 CFR that has been determined by the Gov-
part 172 or any quantity of material ernments of Canada and the United
406
States to be a legitimate business, op- (A) Official name.

erating in accordance with all applica- (B) Business number.
ble laws and regulations governing the (C) Address.
transportation of explosives. (iii) The following information about
Known offeror means an offeror that any train crew member the railroad
has been determined by the Govern- carrier may use to transport explosives
ments of Canada and the United States into the United States from Canada,
to be a legitimate business, operating who is neither a U.S. national nor law-
in accordance with all applicable laws ful permanent resident alien:
and regulations governing the trans- (A) Full name.
portation of explosives. (B) Both current and most recent
Known train crew member means an prior residential addresses.
individual used to transport explosives (3) Transport Canada will determine
from Canada to the United States, who whether the railroad carrier and offer-
has been determined by the Govern- or are legitimately doing business in
ments of Canada and the United States Canada and will also determine wheth-
to present no known security concern. er the train crew members present no
Lawful permanent resident alien means known problems for purposes of this
an alien lawfully admitted for perma- section. Transport Canada will notify
nent residence, as defined by 8 U.S.C. TSA of these determinations by for-
1101(a)(20). warding to TSA lists of known railroad
Offeror means the person offering a carriers, offerors, and train crew mem-
shipment to the railroad carrier for bers and their identifying information.
transportation from Canada to the (4) TSA will update and maintain the
United States, and may also be known list of known railroad carriers,
as the ‘‘consignor’’ in Canada. offerors, and train crew members and
Railroad carrier means ‘‘railroad car- forward the list to CBP.
rier’’ as defined in 49 U.S.C. 20102. (5) Once included on the list, the rail-
(c) Prior approval of railroad carrier, road carriers, offerors, and train crew
offeror, and train crew member. (1) No members need not obtain prior ap-
railroad carrier may transport in com- proval for future transport of explo-
merce any explosive into the United sives under this section.
States from Canada, via a train oper- (d) TSA checks. TSA may periodically
ated by a crew member who is not a check the data on the railroad carriers,
U.S. national or lawful permanent resi- offerors, and train crew members to
dent alien, unless the railroad carrier, confirm their continued eligibility, and
offeror, and train crew member are may remove from the list any that
identified on a TSA list as a known TSA determines is not known or is a
railroad carrier, known offeror, and threat to security.
known train crew member, respec- (e) At the border. (1) Train crew mem-
tively. bers who are not U.S. nationals or law-
(2) The railroad carrier must ensure ful permanent resident aliens. Upon ar-
that it, its offeror, and each of its crew rival at a point designated by CBP for
members have been determined to be a inspection of trains crossing into the
known railroad carrier, known offeror, United States, the train crew members
and known train crew member, respec- of a train transporting explosives must
tively. If any has not been so deter- provide sufficient identification to CBP
mined, the railroad carrier must sub- to enable that agency to determine if
mit the following information to each crew member is on the list of
Transport Canada: known train crew members maintained
(i) The railroad carrier’s identifica- by TSA.
tion, including— (2) Train crew members who are U.S.
(A) Official name; nationals or lawful permanent resident
(B) Business number; aliens. If CBP cannot verify that the
(C) Any trade names; and crew member is on the list and the
(D) Address. crew member is a U.S. national or law-
(ii) The following information about ful permanent resident alien, the crew
any offeror of explosives whose ship- member may be cleared by CBP upon
ments it will carry: providing—
407
(i) A valid U.S. passport; or also must collect and remit the FBI
(ii) One or more other document(s), fee, in accordance with established pro-
including a form of U.S. Federal or cedures.
state Government-issued identification (b) TSA agent collection and trans-
with photograph, acceptable to CBP. mission. If a TSA agent collects finger-
(3) Compliance. If a carrier attempts prints and applicant information under
to enter the U.S. without having com- 49 CFR part 1572, the agent must—
plied with this section, CBP will deny (1) Collect the Information Collection
entry of the explosives and may take Fee, Threat Assessment Fee, and FBI
other appropriate action. Fee, in accordance with procedures ap-
proved by TSA;
Subpart D [Reserved] (2) Transmit to TSA the Threat As-
sessment Fee, in accordance with pro-
Subpart E—Fees for Security Threat cedures approved by TSA; and
(3) Transmit to TSA the FBI Fee, in
Assessments for Hazmat Drivers accordance with procedures approved
§ 1572.400 Scope and definitions. by TSA and the FBI.
(a) Scope. This part applies to— [72 FR 3595, Jan. 25, 2007; 72 FR 14050, Mar. 26,
(1) States that issue an HME for a 2007]
commercial driver’s license;
§ 1572.403 Procedures for collection by
(2) Individuals who apply to obtain or States.
renew an HME for a commercial driv-
er’s license and must undergo a secu- This section describes the procedures
rity threat assessment under 49 CFR that a State, which collects finger-
part 1572; and prints and applicant information under
(3) Entities who collect fees from 49 CFR part 1572; and the procedures an
such individuals on behalf of TSA. individual who applies to obtain or
(b) Terms. As used in this part: renew an HME, for a CDL in that
Commercial driver’s license (CDL) is State, must follow for collection and
used as defined in 49 CFR 383.5. transmission of the Threat Assessment
Day means calendar day. Fee and the FBI Fee.
FBI Fee means the fee required for (a) Imposition of fees. (1) The following
the cost of the Federal Bureau of Inves- Threat Assessment Fee is required for
tigation (FBI) to process fingerprint TSA to conduct a security threat as-
records. sessment, under 49 CFR part 1572, for
Information Collection Fee means the an individual who applies to obtain or
fee required, in this part, for the cost renew an HME: $34.
of collecting and transmitting finger- (2) The following FBI Fee is required
prints and other applicant information for the FBI to process fingerprint iden-
under 49 CFR part 1572. tification records and name checks re-
Threat Assessment Fee means the fee quired under 49 CFR part 1572: the fee
required, in this part, for the cost of collected by the FBI under Pub. L. 101–
TSA adjudicating security threat as- 515.
sessments, appeals, and waivers under (3) An individual who applies to ob-
49 CFR part 1572. tain or renew an HME, or the individ-
TSA agent means an entity approved ual’s employer, must remit to the
by TSA to collect and transmit finger- State the Threat Assessment Fee and
prints and applicant information, in the FBI Fee, in a form and manner ap-
accordance with 49 CFR part 1572, and proved by TSA and the State, when the
fees in accordance with this part. individual submits the application for
the HME to the State.
§ 1572.401 Fee collection options. (b) Collection of fees. (1) A State must
(a) State collection and transmission. If collect the Threat Assessment Fee and
a State collects fingerprints and appli- FBI Fee, when an individual submits
cant information under 49 CFR part an application to the State to obtain or
1572, the State must collect and trans- renew an HME.
mit to TSA the Threat Assessment (2) Once TSA receives an application
Fee, in accordance with the require- from a State for a security threat as-
ments of 49 CFR 1572.403. The State sessment under 49 CFR part 1572, the
408
State is liable for the Threat Assess- or any other payment method accept-
ment Fee. able to TSA.
(3) Nothing in this subpart prevents a (8) TSA will not issue any refunds of
State from collecting any other fees Threat Assessment Fees.
that a State may impose on an indi- (9) If a State does not remit the
vidual who applies to obtain or renew Threat Assessment Fees for any
an HME. month, TSA may decline to process
(c) Handling of fees. (1) A State must any HME applications from that State.
safeguard all Threat Assessment Fees,
from the time of collection until remit- § 1572.405 Procedures for collection by
tance to TSA. TSA.
(2) All Threat Assessment Fees are This section describes the procedures
held in trust by a State for the bene- that an individual, who applies to ob-
ficial interest of the United States in tain or renew an HME for a CDL, must
paying for the costs of conducting the follow if a TSA agent collects and
security threat assessment, required by transmits the Information Collection
49 U.S.C. 5103a and 49 CFR part 1572. A Fee, Threat Assessment Fee, and FBI
State holds neither legal nor equitable Fee.
interest in the Threat Assessment (a) Imposition of fees. (1) The following
Fees, except for the right to retain any Information Collection Fee is required
accrued interest on the principal for a TSA agent to collect and trans-
amounts collected pursuant to this sec- mit fingerprints and applicant infor-
tion. mation, in accordance with 49 CFR
(3) A State must account for Threat part 1572: $38.
Assessment Fees separately, but may (2) The following Threat Assessment
commingle such fees with other Fee is required for TSA to conduct a
sources of revenue. security threat assessment, under 49
(d) Remittance of fees. (1) TSA will CFR part 1572, for an individual who
generate and provide an invoice to a applies to obtain or renew an HME: $34.
State on a monthly basis. The invoice (3) The following FBI Fee is required
will indicate the total fee dollars (num- for the FBI to process fingerprint iden-
ber of applicants times the Threat As- tification records required under 49
sessment Fee) that are due for the CFR part 1572: The fee collected by the
month. FBI under Pub. L. 101–515.
(2) A State must remit to TSA full (4) An individual who applies to ob-
payment for the invoice, within 30 days tain or renew an HME, or the individ-
after TSA sends the invoice. ual’s employer, must remit to the TSA
(3) TSA accepts Threat Assessment agent the Information Collection Fee,
Fees only from a State, not from an in- Threat Assessment Fee, and FBI Fee,
dividual applicant for an HME. in a form and manner approved by
(4) A State may retain any interest TSA, when the individual submits the
that accrues on the principal amounts application required under 49 CFR part
collected between the date of collec- 1572.
tion and the date the Threat Assess- (b) Collection of fees. A TSA agent will
ment Fee is remitted to TSA, in ac- collect the fees required under this sec-
cordance with paragraph (d)(2) of this tion, when an individual submits an ap-
section. plication to the TSA agent, in accord-
(5) A State may not retain any por- ance with 49 CFR part 1572.
tion of the Threat Assessment Fee to (c) Remittance of fees. (1) Fees re-
offset the costs of collecting, handling, quired under this section, which are re-
or remitting Threat Assessment Fees. mitted to a TSA agent, must be made
(6) Threat Assessment Fees, remitted in U.S. currency, drawn on a U.S. bank,
to TSA by a State, must be in U.S. cur- and made payable to the ‘‘Transpor-
rency, drawn on a U.S. bank, and made tation Security Administration.’’
payable to the ‘‘Transportation Secu- (2) Fees required under this section
rity Administration.’’ must be remitted by check, money
(7) Threat Assessment Fees must be order, wire, or any other payment
remitted by check, money order, wire, method acceptable to TSA.
409
(3) TSA will not issue any refunds of under Pub. L. 101–515. If the FBI
fees required under this section. amends this fee, TSA or its agent will
(4) Applications, submitted in accord- collect the amended fee.
ance with 49 CFR part 1572, will be (c) Reduced TWIC Fee. The fee to ob-
processed only upon receipt of all ap- tain a TWIC when the applicant has
plicable fees under this section. undergone a comparable threat assess-
ment in connection with an HME,
Subpart F—Fees for Security Threat FAST card, other threat assessment
Assessments for Transportation deemed to be comparable under 49 CFR
Worker Identification Creden- 1572.5(e) or holds a Merchant Mariner
tial (TWIC) Document or Merchant Mariner Li-
cense is made up of the total of the fol-
§ 1572.500 Scope. lowing segments:
(a) Scope. This part applies to— (1) The Enrollment Segment covers
(1) Individuals who apply to obtain or the cost for TSA or its agent to enroll
renew a Transportation Worker Identi- applicants. The Enrollment Segment
fication Credential and must undergo a fee is $43.25.
security threat assessment under 49 (2) The Reduced Card Production/Se-
CFR part 1572; and curity Threat Assessment Segment
(2) Entities that collect fees from covers the cost for TSA to conduct a
such individuals on behalf of TSA. portion of the security threat assess-
(b) Terms. As used in this part: ment and card production. The Re-
TSA agent means the entity approved duced Card Production/Security Threat
by TSA to collect and transmit finger- Assessment Segment fee is $62.
prints and applicant information, and (d) Card Replacement Fee. The fee to
collect fees in accordance with this
replace a TWIC that has been lost, sto-
part.
len, or damaged is $60.00.
§ 1572.501 Fee collection. (e) Form of fee. The TSA vendor will
collect the fee required to obtain or
(a) When fee must be paid. When an
applicant submits the information and renew a TWIC and will determine the
fingerprints required under 49 CFR part method of acceptable payment, subject
1572 to obtain or renew a TWIC, the fee to approval by TSA.
must be remitted to TSA or its agent (f) Refunds. TSA will not issue any
in accordance with the requirements of refunds of fees required under this sec-
this section. Applications submitted in tion.
accordance with 49 CFR part 1572 will (g) Inflation adjustment. The fees pre-
be processed only upon receipt of all re- scribed in this section, except the FBI
quired fees under this section. fee, may be adjusted annually on or
(b) Standard TWIC Fee. The fee to ob- after October 1, 2007, by publication of
tain or renew a TWIC, except as pro- an inflation adjustment. A final rule in
vided in paragraphs (c) and (d) of this the FEDERAL REGISTER will announce
section, is made up of the total of the the inflation adjustment. The adjust-
following segments: ment shall be a composite of the Fed-
(1) The Enrollment Segment covers eral civilian pay raise assumption and
the cost for TSA or its agent to enroll non-pay inflation factor for that fiscal
applicants. The Enrollment Segment year issued by the Office of Manage-
fee is $43.25. ment and Budget for agency use in im-
(2) The Full Card Production/Secu- plementing OMB Circular A–76, weight-
rity Threat Assessment Segment cov-
ed by the pay and non-pay proportions
ers the costs for TSA conduct security
of total funding for that fiscal year. If
threat assessment and card production.
Congress enacts a different Federal ci-
The Full Card Production/Security
Threat Assessment Segment fee is $72. vilian pay raise percentage than the
(3) The FBI Segment covers the cost percentage issued by OMB for Circular
for the FBI to process fingerprint iden- A–76, the Department of Homeland Se-
curity may adjust the fees to reflect
tification records. The FBI Segment

fee is the amount collected by the FBI the enacted level. The required fee
410
shall be the amount prescribed in paragraphs (a)(1)(i) and (a)(1)(ii), plus the
latest inflation adjustment.
FR 55049, Sept. 28, 2007]
411
FINDING AIDS
A list of CFR titles, subtitles, chapters, subchapters and parts and an alphabet-
ical list of agencies publishing in the CFR are included in the subject index vol-
ume to the Code of Federal Regulations which is published separately and revised
annually.
Material Approved for Incorporation by Reference
Table of CFR Titles and Chapters
Alphabetical List of Agencies Appearing in the CFR
Redesignation Table
List of CFR Sections Affected
413
Material Approved for Incorporation by Reference
(Revised as of October 1, 2007)
The Director of the Federal Register has approved under 5 U.S.C. 552(a) and 1 CFR
part 51 the incorporation by reference of the following publications. This list con-
tains only those incorporations by reference effective as of the revision date of this
volume. Incorporations by reference found within a regulation are effective upon
the effective date of that regulation. For more information on incorporation by
reference, see the preliminary pages of this volume.
49 CFR (PARTS 1200–END)
TRANSPORTATION SECURITY ADMINISTRATION, DEPARTMENT OF HOMELAND
SECURITY
49 CFR
All materials are available from the Department of Transportation
(DOT) Docket, 400 Seventh St. SW., Room Plaza 401, Washington,
DC 20590
American Society for Testing and Materials
100 Barr Harbor Drive, West Conshohocken, Pennsylvania 19428–
2959 1544.211; 1546.209
ASTM F 792–88 (Reapproved 1993) Standard Practice for Design
and Use of Ionizing Radiation Equipment for the Detection of
Items Prohibited in Controlled Access Areas. Items Prohibited in
Controlled Access Areas.
415
Table of CFR Titles and Chapters
Title 1—General Provisions
I Administrative Committee of the Federal Register (Parts 1—49)

II Office of the Federal Register (Parts 50—299)
IV Miscellaneous Agencies (Parts 400—500)
Title 2—Grants and Agreements
SUBTITLE A—OFFICE OF MANAGEMENT AND BUDGET GUIDANCE FOR

GRANTS AND AGREEMENTS
I Office of Management and Budget Governmentwide Guidance for
Grants and Agreements (Parts 100—199)
II Office of Management and Budget Circulars and Guidance (200—
299)
SUBTITLE B—FEDERAL AGENCY REGULATIONS FOR GRANTS AND
AGREEMENTS
III Department of Health and Human Services (Parts 300—399)
VI Department of State (Parts 600—699)
VIII Department of Veterans Affairs (Parts 800—899)
IX Department of Energy (Parts 900—999)
XI Department of Defense (Parts 1100—1199)
XIV Department of the Interior (Parts 1400—1499)
XV Environmental Protection Agency (Parts 1500—1599)
XVIII National Aeronautics and Space Administration (Parts 1880—
1899)
XXII Corporation for National and Community Service (Parts 2200—
2299)
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)
XXXII National Endowment for the Arts (Parts 3200—3299)
XXXIII National Endowment for the Humanities (Parts 3300—3399)
XXXV Export-Import Bank of the United States (Parts 3500—3599)
XXXVII Peace Corps (Parts 3700—3799)
Title 3—The President

I Executive Office of the President (Parts 100—199)
417
Title 4—Accounts
Chap.
I Government Accountability Office (Parts 1—99)
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 Fed-
eral Labor Relations Authority and Federal Service Impasses
Panel (Parts 2400—2499)
XV Office of Administration, Executive Office of the President
(Parts 2500—2599)
XVI Office of Government Ethics (Parts 2600—2699)
XXI Department of the Treasury (Parts 3100—3199)
XXII Federal Deposit Insurance Corporation (Parts 3200—3299)
XXIII Department of Energy (Parts 3300—3399)
XXIV Federal Energy Regulatory Commission (Parts 3400—3499)
XXV Department of the Interior (Parts 3500—3599)
XXVI Department of Defense (Parts 3600—3699)
XXVIII Department of Justice (Parts 3800—3899)
XXIX Federal Communications Commission (Parts 3900—3999)
XXX Farm Credit System Insurance Corporation (Parts 4000—4099)
XXXI Farm Credit Administration (Parts 4100—4199)
XXXIII Overseas Private Investment Corporation (Parts 4300—4399)
XXXV Office of Personnel Management (Parts 4500—4599)
XL Interstate Commerce Commission (Parts 5000—5099)
XLI Commodity Futures Trading Commission (Parts 5100—5199)
XLII Department of Labor (Parts 5200—5299)
XLIII National Science Foundation (Parts 5300—5399)
XLV Department of Health and Human Services (Parts 5500—5599)
XLVI Postal Rate Commission (Parts 5600—5699)
XLVII Federal Trade Commission (Parts 5700—5799)
XLVIII Nuclear Regulatory Commission (Parts 5800—5899)
L Department of Transportation (Parts 6000—6099)
LII Export-Import Bank of the United States (Parts 6200—6299)
LIII Department of Education (Parts 6300—6399)
LIV Environmental Protection Agency (Parts 6400—6499)
LV National Endowment for the Arts (Parts 6500—6599)
LVI National Endowment for the Humanities (Parts 6600—6699)
LVII General Services Administration (Parts 6700—6799)
418
Title 5—Administrative Personnel—Continued
Chap.
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)
LXIX Tennessee Valley Authority (Parts 7900—7999)
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)
XCVII Department of Homeland Security Human Resources Manage-
ment System (Department of Homeland Security--Office of
Personnel Management) (Parts 9700—9799)
XCIX Department of Defense Human Resources Management and
Labor Relations Systems (Department of Defense--Office of
Personnel Management) (Parts 9900—9999)
Title 6—Domestic Security
I Department of Homeland Security, Office of the Secretary

(Parts 0—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, Mar-
keting 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 Ag-
riculture (Parts 300—399)
IV Federal Crop Insurance Corporation, Department of Agriculture
(Parts 400—499)
V Agricultural Research Service, Department of Agriculture

(Parts 500—599)
419
Title 7—Agriculture—Continued
Chap.
VI Natural Resources Conservation Service, Department of Agri-

culture (Parts 600—699)
VII Farm Service Agency, Department of Agriculture (Parts 700—
799)
VIII Grain Inspection, Packers and Stockyards Administration (Fed-
eral Grain Inspection Service), Department of Agriculture
(Parts 800—899)
IX Agricultural Marketing Service (Marketing Agreements and Or-
ders; Fruits, Vegetables, Nuts), Department of Agriculture
(Parts 900—999)
X Agricultural Marketing Service (Marketing Agreements and Or-
ders; Milk), Department of Agriculture (Parts 1000—1199)
XI Agricultural Marketing Service (Marketing Agreements and Or-
ders; Miscellaneous Commodities), Department of Agriculture
(Parts 1200—1299)
XIV Commodity Credit Corporation, Department of Agriculture
(Parts 1400—1499)
XV Foreign Agricultural Service, Department of Agriculture (Parts
1500—1599)
XVI Rural Telephone Bank, Department of Agriculture (Parts 1600—
1699)
XVII Rural Utilities Service, Department of Agriculture (Parts 1700—
1799)
XVIII Rural Housing Service, Rural Business-Cooperative Service,
Rural Utilities Service, and Farm Service Agency, Depart-
ment of Agriculture (Parts 1800—2099)
XX Local Television Loan Guarantee Board (Parts 2200—2299)
XXVI Office of Inspector General, Department of Agriculture (Parts
2600—2699)
XXVII Office of Information Resources Management, Department of
Agriculture (Parts 2700—2799)
XXVIII Office of Operations, Department of Agriculture (Parts 2800—
2899)
XXIX Office of Energy Policy and New Uses, Department of Agri-
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 Cooperative State Research, Education, and Extension Service,
Department of Agriculture (Parts 3400—3499)
XXXV Rural Housing Service, Department of Agriculture (Parts 3500—
3599)
XXXVI National Agricultural Statistics Service, Department of Agri-
XXXVII Economic Research Service, Department of Agriculture (Parts

3700—3799)
420
Title 7—Agriculture—Continued
Chap.
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 Naturaliza-

tion) (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 Ag-

riculture (Parts 1—199)
II Grain Inspection, Packers and Stockyards Administration
(Packers and Stockyards Programs), Department of Agri-
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 1303—1399)
XVII Defense Nuclear Facilities Safety Board (Parts 1700—1799)
XVIII Northeast Interstate Low-Level Radioactive Waste Commission
(Parts 1800—1899)
Title 11—Federal Elections
I Federal Election Commission (Parts 1—9099)
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)
421
Title 12—Banks and Banking—Continued
Chap.
VII National Credit Union Administration (Parts 700—799)

VIII Federal Financing Bank (Parts 800—899)
IX Federal Housing Finance Board (Parts 900—999)
XI Federal Financial Institutions Examination Council (Parts
1100—1199)
XIV Farm Credit System Insurance Corporation (Parts 1400—1499)
XV Department of the Treasury (Parts 1500—1599)
XVII Office of Federal Housing Enterprise Oversight, Department of
Housing and Urban Development (Parts 1700—1799)
XVIII Community Development Financial Institutions Fund, Depart-
ment of the Treasury (Parts 1800—1899)
Title 13—Business Credit and Assistance
I Small Business Administration (Parts 1—199)

III Economic Development Administration, Department of Com-
merce (Parts 300—399)
IV Emergency Steel Guarantee Loan Board, Department of Com-
V Emergency Oil and Gas Guaranteed Loan Board, Department of
Commerce (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 Adminis-
tration, Department of Transportation (Parts 400—499)
V National Aeronautics and Space Administration (Parts 1200—
1299)
VI Air Transportation System Stabilization (Parts 1300—1399)
Title 15—Commerce and Foreign Trade
SUBTITLE A—OFFICE OF THE SECRETARY OF COMMERCE (PARTS 0—

29)
SUBTITLE B—REGULATIONS RELATING TO COMMERCE AND FOREIGN
TRADE
I Bureau of the Census, Department of Commerce (Parts 30—199)
II National Institute of Standards and Technology, Department of
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)
422
Title 15—Commerce and Foreign Trade—Continued
Chap.
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 AGREE-
MENTS
XX Office of the United States Trade Representative (Parts 2000—
2099)
SUBTITLE D—REGULATIONS RELATING TO TELECOMMUNICATIONS
AND INFORMATION
XXIII National Telecommunications and Information Administration,
Department of Commerce (Parts 2300—2399)
Title 16—Commercial Practices
I Federal Trade Commission (Parts 0—999)

II Consumer Product Safety Commission (Parts 1000—1799)
Title 17—Commodity and Securities Exchanges
I Commodity Futures Trading Commission (Parts 1—199)

II Securities and Exchange Commission (Parts 200—399)
IV Department of the Treasury (Parts 400—499)
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 Bureau of Customs and Border Protection, Department of Home-

land 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 Bureau of Immigration and Customs Enforcement, Department
of Homeland Security (Parts 400—599)
423
Title 20—Employees’ Benefits
Chap.
I Office of Workers’ Compensation Programs, Department of

Labor (Parts 1—199)
II Railroad Retirement Board (Parts 200—399)
III Social Security Administration (Parts 400—499)
IV Employees Compensation Appeals Board, Department of Labor
(Parts 500—599)
V Employment and Training Administration, Department of Labor
(Parts 600—699)
VI Employment Standards Administration, Department of Labor
(Parts 700—799)
VII Benefits Review Board, Department of Labor (Parts 800—899)
VIII Joint Board for the Enrollment of Actuaries (Parts 900—999)
IX Office of the Assistant Secretary for Veterans’ Employment and
Training, Department of Labor (Parts 1000—1099)
Title 21—Food and Drugs
I Food and Drug Administration, Department of Health and

Human Services (Parts 1—1299)
II Drug Enforcement Administration, Department of Justice (Parts
1300—1399)
III Office of National Drug Control Policy (Parts 1400—1499)
Title 22—Foreign Relations
I Department of State (Parts 1—199)

II Agency for International Development (Parts 200—299)
III Peace Corps (Parts 300—399)
IV International Joint Commission, United States and Canada
(Parts 400—499)
V Broadcasting Board of Governors (Parts 500—599)
VII Overseas Private Investment Corporation (Parts 700—799)
IX Foreign Service Grievance Board (Parts 900—999)
X Inter-American Foundation (Parts 1000—1099)
XI International Boundary and Water Commission, United States
and Mexico, United States Section (Parts 1100—1199)
XII United States International Development Cooperation Agency
(Parts 1200—1299)
XIII Millenium Challenge Corporation (Parts 1300—1399)
XIV Foreign Service Labor Relations Board; Federal Labor Relations
Authority; General Counsel of the Federal Labor Relations
Authority; and the Foreign Service Impasse Disputes Panel
(Parts 1400—1499)
XV African Development Foundation (Parts 1500—1599)
XVI Japan-United States Friendship Commission (Parts 1600—1699)
XVII United States Institute of Peace (Parts 1700—1799)
424
Title 23—Highways
Chap.
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 DE-
VELOPMENT
I Office of Assistant Secretary for Equal Opportunity, Department
of Housing and Urban Development (Parts 100—199)
II Office of Assistant Secretary for Housing-Federal Housing Com-
missioner, 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 Develop-
ment (Parts 400—499)
V Office of Assistant Secretary for Community Planning and De-
velopment, Department of Housing and Urban Development
(Parts 500—599)
VI Office of Assistant Secretary for Community Planning and De-
velopment, Department of Housing and Urban Development
(Parts 600—699) [Reserved]
VII Office of the Secretary, Department of Housing and Urban Devel-
opment (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 Develop-
ment (Section 8 Housing Assistance Programs, Section 202 Di-
rect Loan Program, Section 202 Supportive Housing for the El-
derly Program and Section 811 Supportive Housing for Persons
With Disabilities Program) (Parts 800—899)
IX Office of Assistant Secretary for Public and Indian Housing, De-
partment of Housing and Urban Development (Parts 900—1699)
X Office of Assistant Secretary for Housing—Federal Housing
ment (Interstate Land Sales Registration Program) (Parts
1700—1799)
XII Office of Inspector General, Department of Housing and Urban
Development (Parts 2000—2099)
XX Office of Assistant Secretary for Housing—Federal Housing
ment (Parts 3200—3899)
XXV Neighborhood Reinvestment Corporation (Parts 4100—4199)
425
Title 25—Indians
Chap.
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 Inte-
rior (Parts 500—599)
IV Office of Navajo and Hopi Indian Relocation (Parts 700—799)
V Bureau of Indian Affairs, Department of the Interior, and Indian
Health Service, Department of Health and Human Services
(Part 900)
VI Office of the Assistant Secretary-Indian Affairs, Department of
the Interior (Parts 1000—1199)
VII Office of the Special Trustee for American Indians, Department
of the Interior (Parts 1200—1299)
Title 26—Internal Revenue
I Internal Revenue Service, Department of the Treasury (Parts 1—

899)
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, Depart-
ment 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)
426
Title 29—Labor—Continued
Chap.
II Office of Labor-Management Standards, Department of Labor

(Parts 200—299)
III National Railroad Adjustment Board (Parts 300—399)
IV Office of Labor-Management Standards, Department of Labor
(Parts 400—499)
V Wage and Hour Division, Department of Labor (Parts 500—899)
IX Construction Industry Collective Bargaining Commission (Parts
900—999)
X National Mediation Board (Parts 1200—1299)
XII Federal Mediation and Conciliation Service (Parts 1400—1499)
XIV Equal Employment Opportunity Commission (Parts 1600—1699)
XVII Occupational Safety and Health Administration, Department of
XX Occupational Safety and Health Review Commission (Parts
2200—2499)
XXV Employee Benefits Security Administration, Department of
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 Minerals Management Service, Department of the Interior
(Parts 200—299)
III Board of Surface Mining and Reclamation Appeals, Department
of the Interior (Parts 300—399)
IV Geological Survey, Department of the Interior (Parts 400—499)
VII Office of Surface Mining Reclamation and Enforcement, Depart-
ment of the Interior (Parts 700—999)
Title 31—Money and Finance: Treasury
SUBTITLE A—OFFICE OF THE SECRETARY OF THE TREASURY (PARTS

0—50)
SUBTITLE B—REGULATIONS RELATING TO MONEY AND FINANCE
I Monetary Offices, Department of the Treasury (Parts 51—199)
II Fiscal Service, Department of the Treasury (Parts 200—399)
IV Secret Service, Department of the Treasury (Parts 400—499)
V Office of Foreign Assets Control, Department of the Treasury
(Parts 500—599)
VI Bureau of Engraving and Printing, Department of the Treasury
(Parts 600—699)
VII Federal Law Enforcement Training Center, Department of the
Treasury (Parts 700—799)
VIII Office of International Investment, Department of the Treasury

(Parts 800—899)
427
Title 31—Money and Finance: Treasury—Continued
Chap.
IX Federal Claims Collection Standards (Department of the Treas-

ury—Department of Justice) (Parts 900—999)
Title 32—National Defense
SUBTITLE A—DEPARTMENT OF DEFENSE

I Office of the Secretary of Defense (Parts 1—399)
V Department of the Army (Parts 400—699)
VI Department of the Navy (Parts 700—799)
VII Department of the Air Force (Parts 800—1099)
SUBTITLE B—OTHER REGULATIONS RELATING TO NATIONAL DE-
FENSE
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 EDU-

CATION (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, Depart-
ment of Education (Parts 300—399)
IV Office of Vocational and Adult Education, Department of Edu-
cation (Parts 400—499)
V Office of Bilingual Education and Minority Languages Affairs,

Department of Education (Parts 500—599)
428
Title 34—Education—Continued
Chap.
VI Office of Postsecondary Education, Department of Education

(Parts 600—699)
XI National Institute for Literacy (Parts 1100—1199)
SUBTITLE C—REGULATIONS RELATING TO EDUCATION
XII National Council on Disability (Parts 1200—1299)
Title 35 [Reserved]
Title 36—Parks, Forests, and Public Property
I National Park Service, Department of the Interior (Parts 1—199)

II Forest Service, Department of Agriculture (Parts 200—299)
III Corps of Engineers, Department of the Army (Parts 300—399)
IV American Battle Monuments Commission (Parts 400—499)
V Smithsonian Institution (Parts 500—599)
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 Environ-
mental Policy Foundation (Parts 1600—1699)
Title 37—Patents, Trademarks, and Copyrights
I United States Patent and Trademark Office, Department of

II Copyright Office, Library of Congress (Parts 200—299)
III Copyright Royalty Board, Library of Congress (Parts 301—399)
IV Assistant Secretary for Technology Policy, Department of Com-
V Under Secretary for Technology, Department of Commerce
(Parts 500—599)
Title 38—Pensions, Bonuses, and Veterans’ Relief
I Department of Veterans Affairs (Parts 0—99)
Title 39—Postal Service
I United States Postal Service (Parts 1—999)

III Postal Rate Commission (Parts 3000—3099)
429
Title 40—Protection of Environment
Chap.
I Environmental Protection Agency (Parts 1—1099)

IV Environmental Protection Agency and Department of Justice
(Parts 1400—1499)
V Council on Environmental Quality (Parts 1500—1599)
VI Chemical Safety and Hazard Investigation Board (Parts 1600—
1699)
VII Environmental Protection Agency and Department of Defense;
Uniform National Discharge Standards for Vessels of the
Armed Forces (Parts 1700—1799)
Title 41—Public Contracts and Property Management
SUBTITLE B—OTHER PROVISIONS RELATING TO PUBLIC CONTRACTS

50 Public Contracts, Department of Labor (Parts 50–1—50–999)
51 Committee for Purchase From People Who Are Blind or Severely
Disabled (Parts 51–1—51–99)
60 Office of Federal Contract Compliance Programs, Equal Employ-
ment 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)
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)
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)
SUBTITLE D—OTHER PROVISIONS RELATING TO PROPERTY MANAGE-
MENT [RESERVED]
SUBTITLE E—FEDERAL INFORMATION RESOURCES MANAGEMENT
REGULATIONS SYSTEM
201 Federal Information Resources Management Regulation (Parts
201–1—201–99) [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 Em-
ployees (Part 303–1—303–99)
304 Payment of Travel Expenses from a Non-Federal Source (Parts
304–1—304–99)
430
Title 42—Public Health
Chap.
I Public Health Service, Department of Health and Human Serv-

ices (Parts 1—199)
IV Centers for Medicare & Medicaid Services, Department of Health
and Human Services (Parts 400—499)
V Office of Inspector General-Health Care, Department of Health
Title 43—Public Lands: Interior
SUBTITLE A—OFFICE OF THE SECRETARY OF THE INTERIOR (PARTS

1—199)
SUBTITLE B—REGULATIONS RELATING TO PUBLIC LANDS
I Bureau of Reclamation, Department of the Interior (Parts 200—
499)
II Bureau of Land Management, Department of the Interior (Parts
1000—9999)
III Utah Reclamation Mitigation and Conservation Commission
(Parts 10000—10010)
Title 44—Emergency Management and Assistance
I Federal Emergency Management Agency, Department of Home-

land 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), Administra-
tion for Children and Families, Department of Health and
Human Services (Parts 200—299)
III Office of Child Support Enforcement (Child Support Enforce-
ment 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)
431
Title 45—Public Welfare—Continued
Chap.
XII Corporation for National and Community Service (Parts 1200—

1299)
XIII Office of Human Development Services, Department of Health
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)
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 Department of 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 United States Agency for International Development (Parts
700—799)
8 Department of Veterans Affairs (Parts 800—899)
9 Department of Energy (Parts 900—999)
10 Department of the Treasury (Parts 1000—1099)
12 Department of Transportation (Parts 1200—1299)
13 Department of Commerce (Parts 1300—1399)
432
Title 48—Federal Acquisition Regulations System—Continued
Chap.
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 Acquisi-
tion Regulation (HSAR) (Parts 3000—3099)
34 Department of Education Acquisition Regulation (Parts 3400—
3499)
35 [Reserved]
44 Federal Emergency Management Agency (Parts 4400—4499)
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)
54 Defense Logistics Agency, Department of Defense (Parts 5400—
5499)
57 African Development Foundation (Parts 5700—5799)
61 General Services Administration Board of Contract Appeals
(Parts 6100—6199)
63 Department of Transportation Board of Contract Appeals (Parts
6300—6399)
99 Cost Accounting Standards Board, Office of Federal Procure-
ment 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, De-
partment of Transportation (Parts 100—199)
II Federal Railroad Administration, Department of Transportation

(Parts 200—299)
433
Title 49—Transportation—Continued
Chap.
III Federal Motor Carrier Safety Administration, Department of

IV Coast Guard, Department of Homeland Security (Parts 400—499)
V National Highway Traffic Safety Administration, Department of
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, Depart-
ment of Transportation [Reserved]
XII Transportation Security Administration, Department of Home-
land Security (Parts 1500—1699)
Title 50—Wildlife and Fisheries
I United States Fish and Wildlife Service, Department of the Inte-

rior (Parts 1—199)
II National Marine Fisheries Service, National Oceanic and Atmos-
pheric 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, De-
partment of the Interior and National Marine Fisheries Serv-
ice, National Oceanic and Atmospheric Administration, De-
partment of Commerce); Endangered Species Committee Reg-
ulations (Parts 400—499)
V Marine Mammal Commission (Parts 500—599)
VI Fishery Conservation and Management, National Oceanic and
Atmospheric Administration, Department of Commerce (Parts
600—699)
CFR Index and Finding Aids
Subject/Agency Index
List of Agency Prepared Indexes
Parallel Tables of Statutory Authorities and Rules
List of CFR Titles, Chapters, Subchapters, and Parts
434
CFR Title, Subtitle or

Agency Chapter
Administrative Committee of the Federal Register 1, I
Advanced Research Projects Agency 32, I
Advisory Council on Historic Preservation 36, VIII
African Development Foundation 22, XV
Federal Acquisition Regulation 48, 57
Agency for International Development, United States 22, II
Agricultural Marketing Service 7, I, IX, X, XI
Agricultural Research Service 7, V
Agriculture Department 5, LXXIII
Agricultural Marketing Service 7, I, IX, X, XI
Agricultural Research Service 7, V
Animal and Plant Health Inspection Service 7, III; 9, I
Chief Financial Officer, Office of 7, XXX
Commodity Credit Corporation 7, XIV
Cooperative State Research, Education, and Extension 7, XXXIV
Service
Economic Research Service 7, XXXVII
Energy, Office of 2, IX; 7, XXIX
Environmental Quality, Office of 7, XXXI
Farm Service Agency 7, VII, XVIII
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 Administration 7, VIII; 9, II
Information Resources Management, Office of 7, XXVII
Inspector General, Office of 7, XXVI
National Agricultural Library 7, XLI
National Agricultural Statistics Service 7, XXXVI
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
Rural Development Administration 7, XLII
Rural Housing Service 7, XVIII, XXXV
Rural Telephone Bank 7, XVI
Rural Utilities Service 7, XVII, XVIII, XLII
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, Bureau of 27, II
AMTRAK 49, VII
American Battle Monuments Commission 36, IV
American Indians, Office of the Special Trustee 25, VII
Animal and Plant Health Inspection Service 7, III; 9, I

Appalachian Regional Commission 5, IX
435
Agency Chapter
Architectural and Transportation Barriers Compliance Board 36, XI
Arctic Research Commission 45, XXIII
Armed Forces Retirement Home 5, XI
Army Department 32, V
Engineers, Corps of 33, II; 36, III
Benefits Review Board 20, VII
Bilingual Education and Minority Languages Affairs, Office of 34, V
Blind or Severely Disabled, Committee for Purchase From 41, 51
People Who Are
Broadcasting Board of Governors 22, V
Census Bureau 15, I
Centers for Medicare & Medicaid Services 42, IV
Central Intelligence Agency 32, XIX
Chief Financial Officer, Office of 7, XXX
Child Support Enforcement, Office of 45, III
Children and Families, Administration for 45, II, III, IV, X
Civil Rights, Commission on 45, VII
Civil Rights, Office for 34, I
Coast Guard 33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage) 46, III
Commerce Department 44, IV
Census Bureau 15, I
Economic Affairs, Under Secretary 37, V
Economic Analysis, Bureau of 15, VIII
Economic Development Administration 13, III
Emergency Management and Assistance 44, IV
Fishery Conservation and Management 50, VI
Foreign-Trade Zones Board 15, IV
Industry and Security, Bureau of 15, VII
International Trade Administration 15, III; 19, III
National Institute of Standards and Technology 15, II
National Marine Fisheries Service 50, II, IV, VI
National Oceanic and Atmospheric Administration 15, IX; 50, II, III, IV, VI
National Telecommunications and Information 15, XXIII; 47, III
Administration
National Weather Service 15, IX
Patent and Trademark Office, United States 37, I
Productivity, Technology and Innovation, Assistant 37, IV
Secretary for
Secretary of Commerce, Office of 15, Subtitle A
Technology, Under Secretary for 37, V
Technology Administration 15, XI
Technology Policy, Assistant Secretary for 37, IV
Commercial Space Transportation 14, III
Commodity Credit Corporation 7, XIV
Commodity Futures Trading Commission 5, XLI; 17, I
Community Planning and Development, Office of Assistant 24, V, VI
Secretary for
Community Services, Office of 45, X
Comptroller of the Currency 12, I
Construction Industry Collective Bargaining Commission 29, IX
Consumer Product Safety Commission 5, LXXI; 16, II
Cooperative State Research, Education, and Extension 7, XXXIV
Service
Copyright Office 37, II
Copyright Royalty Board 37, III
Corporation for National and Community Service 2, XXII; 45, XII, XXV
Cost Accounting Standards Board 48, 99
Council on Environmental Quality 40, V
Court Services and Offender Supervision Agency for the 28, VIII
District of Columbia
Customs and Border Protection Bureau 19, I
Defense Contract Audit Agency 32, I
Defense Department 5, XXVI; 32, Subtitle A;

40, VII
436
Agency Chapter
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, II
Defense Intelligence Agency 32, I
Defense Logistics Agency 32, I, XII; 48, 54
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 Offender Supervision 28, VIII
Agency for the
Drug Enforcement Administration 21, II
East-West Foreign Trade Board 15, XIII
Economic Affairs, Under Secretary 37, V
Economic Analysis, Bureau of 15, VIII
Economic Development Administration 13, III
Economic Research Service 7, XXXVII
Education, Department of 5, LIII
Bilingual Education and Minority Languages Affairs, Office 34, V
of
Civil Rights, Office for 34, I
Educational Research and Improvement, Office of 34, VII
Elementary and Secondary Education, Office of 34, II
Postsecondary Education, Office of 34, VI
Secretary of Education, Office of 34, Subtitle A
Special Education and Rehabilitative Services, Office of 34, III
Vocational and Adult Education, Office of 34, IV
Educational Research and Improvement, Office of 34, VII
Elementary and Secondary Education, Office of 34, II
Emergency Oil and Gas Guaranteed Loan Board 13, V
Emergency Steel Guarantee Loan Board 13, IV
Employee Benefits Security Administration 29, XXV
Employees’ Compensation Appeals Board 20, IV
Employees Loyalty Board 5, V
Employment and Training Administration 20, V
Employment Standards Administration 20, VI
Endangered Species Committee 50, IV
Energy, Department of 5, XXIII; 10, II, III, X
Federal Energy Regulatory Commission 5, XXIV; 18, I
Property Management Regulations 41, 109
Energy, Office of 7, XXIX
Engraving and Printing, Bureau of 31, VI
Environmental Protection Agency 2, XV; 5, LIV; 40, I, IV,
VII
Environmental Quality, Office of 7, XXXI
Equal Employment Opportunity Commission 5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary for 24, I
Executive Office of the President 3, I
Administration, Office of 5, XV
Environmental Quality, Council on 40, V
Management and Budget, Office of 5, III, LXXVII; 14, VI;
48, 99
National Drug Control Policy, Office of 21, III
National Security Council 32, XXI; 47, 2

Presidential Documents 3
437
Agency Chapter
Science and Technology Policy, Office of 32, XXIV; 47, II
Trade Representative, Office of the United States 15, XX
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 Aviation Administration 14, I
Federal Claims Collection Standards 31, IX
Federal Communications Commission 5, XXIX; 47, I
Federal Contract Compliance Programs, Office of 41, 60
Federal Crop Insurance Corporation 7, IV
Federal Deposit Insurance Corporation 5, XXII; 12, III
Federal Election Commission 11, I
Federal Emergency Management Agency 44, I
Federal Employees Group Life Insurance Federal Acquisition 48, 21
Regulation
Federal Employees Health Benefits Acquisition Regulation 48, 16
Federal Energy Regulatory Commission 5, XXIV; 18, I
Federal Financial Institutions Examination Council 12, XI
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 Board 12, IX
Federal Labor Relations Authority, and General Counsel of 5, XIV; 22, XIV
the Federal Labor Relations Authority
Federal Law Enforcement Training Center 31, VII
Federal Management Regulation 41, 102
Federal Maritime Commission 46, IV
Federal Mediation and Conciliation Service 29, XII
Federal Mine Safety and Health Review Commission 5, LXXIV; 29, XXVII
Federal Motor Carrier Safety Administration 49, III
Federal Prison Industries, Inc. 28, III
Federal Procurement Policy Office 48, 99
Federal Property Management Regulations 41, 101
Federal Railroad Administration 49, II
Federal Register, Administrative Committee of 1, I
Federal Register, Office of 1, II
Federal Reserve System 12, II
Board of Governors 5, LVIII
Federal Retirement Thrift Investment Board 5, VI, LXXVI
Federal Service Impasses Panel 5, XIV
Federal Trade Commission 5, XLVII; 16, I
Federal Transit Administration 49, VI
Federal Travel Regulation System 41, Subtitle F
Fine Arts, Commission on 45, XXI
Fiscal Service 31, II
Fish and Wildlife Service, United States 50, I, IV
Fishery Conservation and Management 50, VI
Food and Drug Administration 21, I
Food and Nutrition Service 7, II
Food Safety and Inspection Service 9, III
Foreign Agricultural Service 7, XV
Foreign Assets Control, Office of 31, V
Foreign Claims Settlement Commission of the United States 45, V
Foreign Service Grievance Board 22, IX
Foreign Service Impasse Disputes Panel 22, XIV
Foreign Service Labor Relations Board 22, XIV
Foreign-Trade Zones Board 15, IV
Forest Service 36, II
General Services Administration 5, LVII; 41, 105
Contract Appeals, Board of 48, 61

438
Agency Chapter
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 Expenses 41, 304
Payment of Expenses Connected With the Death of Certain 41, 303
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 Administration 7, VIII; 9, II
Harry S. Truman Scholarship Foundation 45, XVIII
Health and Human Services, Department of 2, III; 5, XLV; 45,
Subtitle A, 2, III
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
Defense Acquisition Regulations System 48, 2
Family Assistance, Office of 45, II
Food and Drug Administration 21, I
Human Development Services, Office of 45, XIII
Indian Health Service 25, V; 42, I
Inspector General (Health Care), Office of 42, V
Public Health Service 42, I
Refugee Resettlement, Office of 45, IV
Homeland Security, Department of 6, I
Coast Guard 33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage) 46, III
Federal Emergency Management Agency 44, I
Immigration and Customs Enforcement Bureau 19, IV
Immigration and Naturalization 8, I
Transportation Security Administration 49, XII
Housing and Urban Development, Department of 5, LXV; 24, Subtitle B
Community Planning and Development, Office of Assistant 24, V, VI
Secretary for
Equal Opportunity, Office of Assistant Secretary for 24, I
Federal Housing Enterprise Oversight, Office of 12, XVII
Government National Mortgage Association 24, III
Housing—Federal Housing Commissioner, Office of 24, II, VIII, X, XX
Assistant Secretary for
Housing, Office of, and Multifamily Housing Assistance 24, IV
Restructuring, Office of
Inspector General, Office of 24, XII
Public and Indian Housing, Office of Assistant Secretary for 24, IX
Secretary, Office of 24, Subtitle A, VII
Housing—Federal Housing Commissioner, Office of Assistant 24, II, VIII, X, XX
Secretary for
Housing, Office of, and Multifamily Housing Assistance 24, IV
Restructuring, Office of
Human Development Services, Office of 45, XIII
Immigration and Customs Enforcement Bureau 19, IV
Immigration and Naturalization 8, I
Immigration Review, Executive Office for 8, V
Independent Counsel, Office of 28, VII
Indian Affairs, Bureau of 25, I, V
Indian Affairs, Office of the Assistant Secretary 25, VI
Indian Arts and Crafts Board 25, II
Indian Health Service 25, V; 42, I
Industry and Security, Bureau of 15, VII

Information Resources Management, Office of 7, XXVII
439
Agency Chapter
Information Security Oversight Office, National Archives and 32, XX
Records Administration
Inspector General
Agriculture Department 7, XXVI
Health and Human Services Department 42, V
Housing and Urban Development Department 24, XII
Institute of Peace, United States 22, XVII
Inter-American Foundation 5, LXIII; 22, X
Interior Department
American Indians, Office of the Special Trustee 25, VII
Endangered Species Committee 50, IV
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 Secretary 25, VI
Indian Arts and Crafts Board 25, II
Land Management, Bureau of 43, II
Minerals Management Service 30, II
National Indian Gaming Commission 25, III
National Park Service 36, I
Reclamation, Bureau of 43, I
Secretary of the Interior, Office of 2, XIV; 43, Subtitle A
Surface Mining and Reclamation Appeals, Board of 30, III
Surface Mining Reclamation and Enforcement, Office of 30, VII
Internal Revenue Service 26, I
International Boundary and Water Commission, United States 22, XI
and Mexico, United States Section
International Development, United States Agency for 22, II
International Development Cooperation Agency, United 22, XII
States
International Fishing and Related Activities 50, III
International Investment, Office of 31, VIII
International Joint Commission, United States and Canada 22, IV
International Organizations Employees Loyalty Board 5, V
International Trade Administration 15, III; 19, III
International Trade Commission, United States 19, II
Interstate Commerce Commission 5, XL
James Madison Memorial Fellowship Foundation 45, XXIV
Japan–United States Friendship Commission 22, XVI
Joint Board for the Enrollment of Actuaries 20, VIII
Justice Department 2, XXVII; 5, XXVIII; 28,
I, XI; 40, IV
Alcohol, Tobacco, Firearms, and Explosives, Bureau of 27, II
Drug Enforcement Administration 21, II
Federal Claims Collection Standards 31, IX
Federal Prison Industries, Inc. 28, III
Foreign Claims Settlement Commission of the United 45, V
States
Immigration Review, Executive Office for 8, V
Offices of Independent Counsel 28, VI
Prisons, Bureau of 28, V
Labor Department 5, XLII
Benefits Review Board 20, VII
Employee Benefits Security Administration 29, XXV
Employees’ Compensation Appeals Board 20, IV
Employment and Training Administration 20, V
Employment Standards Administration 20, VI
Federal Contract Compliance Programs, Office of 41, 60
Federal Procurement Regulations System 41, 50
Labor-Management Standards, Office of 29, II, IV

Mine Safety and Health Administration 30, I
440
Agency Chapter
Occupational Safety and Health Administration 29, XVII
Public Contracts 41, 50
Secretary of Labor, Office of 29, Subtitle A
Veterans’ Employment and Training Service, Office of the 41, 61; 20, IX
Wage and Hour Division 29, V
Workers’ Compensation Programs, Office of 20, I
Labor-Management Standards, Office of 29, II, IV
Land Management, Bureau of 43, II
Legal Services Corporation 45, XVI
Library of Congress 36, VII
Copyright Office 37, II
Copyright Royalty Board 37, III
Local Television Loan Guarantee Board 7, XX
Management and Budget, Office of 5, III, LXXVII; 14, VI;
48, 99
Marine Mammal Commission 50, V
Maritime Administration 46, II
Merit Systems Protection Board 5, II, LXIV
Micronesian Status Negotiations, Office for 32, XXVII
Millenium Challenge Corporation 22, XIII
Mine Safety and Health Administration 30, I
Minerals Management Service 30, II
Minority Business Development Agency 15, XIV
Miscellaneous Agencies 1, IV
Monetary Offices 31, I
Morris K. Udall Scholarship and Excellence in National 36, XVI
Environmental Policy Foundation
National Aeronautics and Space Administration 2, XVIII; 5, LIX; 14, V
National Agricultural Library 7, XLI
National Agricultural Statistics Service 7, XXXVI
National and Community Service, Corporation for 45, XII, XXV
National Archives and Records Administration 2, XXVI; 5, LXVI; 36,
XII
Information Security Oversight Office 32, XX
National Bureau of Standards 15, II
National Capital Planning Commission 1, IV
National Commission for Employment Policy 1, IV
National Commission on Libraries and Information Science 45, XVII
National Council on Disability 34, XII
National Counterintelligence Center 32, XVIII
National Credit Union Administration 12, VII
National Crime Prevention and Privacy Compact Council 28, IX
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 Humanities 45, XI
National Highway Traffic Safety Administration 23, II, III; 49, V
National Imagery and Mapping Agency 32, I
National Indian Gaming Commission 25, III
National Institute for Literacy 34, XI
National Institute of Standards and Technology 15, II
National Intelligence, Office of Director of 32, XVII
National Labor Relations Board 5, LXI; 29, I
National Marine Fisheries Service 50, II, IV, VI
National Mediation Board 29, X
National Oceanic and Atmospheric Administration 15, IX; 50, II, III, IV, VI
National Park Service 36, I
National Railroad Adjustment Board 29, III
National Railroad Passenger Corporation (AMTRAK) 49, VII
National Science Foundation 2, XXV; 5, XLIII; 45, VI
National Security Council 32, XXI
National Security Council and Office of Science and 47, II
Technology Policy
National Telecommunications and Information 15, XXIII; 47, III

Administration
441
Agency Chapter
National Transportation Safety Board 49, VIII
National Weather Service 15, IX
Natural Resources Conservation Service 7, VI
Navajo and Hopi Indian Relocation, Office of 25, IV
Navy Department 32, VI
Neighborhood Reinvestment Corporation 24, XXV
Northeast Interstate Low-Level Radioactive Waste 10, XVIII
Commission
Nuclear Regulatory Commission 5, XLVIII; 10, I
Occupational Safety and Health Administration 29, XVII
Occupational Safety and Health Review Commission 29, XX
Offices of Independent Counsel 28, VI
Oklahoma City National Memorial Trust 36, XV
Operations Office 7, XXVIII
Overseas Private Investment Corporation 5, XXXIII; 22, VII
Patent and Trademark Office, United States 37, I
Payment From a Non-Federal Source for Travel Expenses 41, 304
Payment of Expenses Connected With the Death of Certain 41, 303
Employees
Peace Corps 22, III
Pennsylvania Avenue Development Corporation 36, IX
Pension Benefit Guaranty Corporation 29, XL
Personnel Management, Office of 5, I, XXXV; 45, VIII
Federal Employees Group Life Insurance Federal 48, 21
Acquisition Regulation
Federal Employees Health Benefits Acquisition Regulation 48, 16
Pipeline and Hazardous Materials Safety Administration 49, I
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 Fellowships 1, IV
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, Assistant 37, IV
Secretary
Public Contracts, Department of Labor 41, 50
Public and Indian Housing, Office of Assistant Secretary for 24, IX
Public Health Service 42, I
Railroad Retirement Board 20, II
Reclamation, Bureau of 43, I
Refugee Resettlement, Office of 45, IV
Regional Action Planning Commissions 13, V
Relocation Allowances 41, 302
Research and Innovative Technology Administration 49, XI
Rural Business-Cooperative Service 7, XVIII, XLII
Rural Development Administration 7, XLII
Rural Housing Service 7, XVIII, XXXV
Rural Telephone Bank 7, XVI
Rural Utilities Service 7, XVII, XVIII, XLII
Saint Lawrence Seaway Development Corporation 33, IV
Science and Technology Policy, Office of 32, XXIV
Science and Technology Policy, Office of, and National 47, II
Security Council
Secret Service 31, IV
Securities and Exchange Commission 17, II
Selective Service System 32, XVI
Small Business Administration 2, XXVII; 13, I
Smithsonian Institution 36, V
Social Security Administration 20, III; 48, 23
Soldiers’ and Airmen’s Home, United States 5, XI

Special Counsel, Office of 5, VIII
442
Agency Chapter
Special Education and Rehabilitative Services, Office of 34, III
State Department 2, VI; 22, I; 28, XI
Surface Mining and Reclamation Appeals, Board of 30, III
Surface Mining Reclamation and Enforcement, Office of 30, VII
Surface Transportation Board 49, X
Susquehanna River Basin Commission 18, VIII
Technology Administration 15, XI
Technology Policy, Assistant Secretary for 37, IV
Technology, Under Secretary for 37, V
Tennessee Valley Authority 5, LXIX; 18, XIII
Thrift Supervision Office, Department of the Treasury 12, V
Trade Representative, United States, Office of 15, XX
Transportation, Department of 5, L
Contract Appeals, Board of 48, 63
Emergency Management and Assistance 44, IV
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; 49, V
Pipeline and Hazardous Materials Safety Administration 49, I
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 Fund 12, XVIII
Comptroller of the Currency 12, I
Engraving and Printing, Bureau of 31, VI
Federal Law Enforcement Training Center 31, VII
Fiscal Service 31, II
Foreign Assets Control, Office of 31, V
Internal Revenue Service 26, I
International Investment, 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 Commission 22, IV
United States and Mexico, International Boundary and Water 22, XI
Commission, United States Section
Utah Reclamation Mitigation and Conservation Commission 43, III
Veterans Affairs Department 2, VIII; 38, I
Veterans’ Employment and Training Service, Office of the 41, 61; 20, IX
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
443
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 REDESIGNATION TABLE—CONTINUED
Old section New section Old section New section
1420 Part heading 369 Part heading 1420 Part heading 369 Part heading
1420.1 ........................................... 369.1 1420.7 [Reserved] ........................ 369.7 [Reserved]

1420.2 ........................................... 369.2 1420.8 ........................................... 369.8
1420.3 ........................................... 369.3 1420.9 ........................................... 369.9
1420.4 ........................................... 369.4 1420.10 ......................................... 369.10
1420.5 ........................................... 369.5 1420.11 ......................................... 369.11
1420.6 ........................................... 369.6
445
All changes in this volume of the Code of Federal Regulations that
were made by documents published in the FEDERAL REGISTER since Jan-
uary 1, 2001, are enumerated in the following list. Entries indicate the
nature of the changes effected. Page numbers refer to FEDERAL REGISTER
pages. The user should consult the entries for chapters and parts as well
as sections for revisions.
For the period before January 1, 2001, see the ‘‘List of CFR Sections
Affected, 1949–1963, 1964–1972, and 1973–1985, and 1986–2000’’ published in 11
separate volumes.
2001 49 CFR—Continued 67 FR
Page
49 CFR 66 FR Chapter XII—Continued
Page
1540.5 Amended .............................. 8209
Chapter X 1540.107 Revised ............................ 41639
1201 Amended ............................... 56245 1540.111 (a)(1) revised .................... 41639
1244.3 Heading revised; (c) 1542 Added ..................................... 8355
through (f) added ...................... 53735 1544 Added ..................................... 8364
1247 Added ..................................... 1052 1544.1 (a)(1) revised ......................... 8209
Chapter XII 1544.101 (c), (f) and (g) revised; (d)
Chapter XII Established; in- and (e) added .............................. 8209
terim........................................ 67701 (f) revised.....................................41639
(f) revised.....................................79887
2002 1544.103 (c)(1) and (15) revised;
49 CFR 67 FR
(c)(21) added ............................... 8209
Page 1544.230 Added ................................ 8209
Chapter X 1544.237 Added ................................ 8210
1200.2 Amended............................. 57533 1546 Added ..................................... 8377
1201 Nomenclature change............ 57533 1548 Added ..................................... 8382
(Subpart A) Amended ...................57533 1550 Added ..................................... 8383
(Subpart B) Amended ..........57533, 57534
1241.11 (a) amended ....................... 57534 2003
1242.00 Amended ........................... 57534
1243.1 Amended............................. 57534
49 CFR 68 FR
Page
1243.2 Amended............................. 57534
1244.9 Amended............................. 57534 Chapter XI
1420.2 (b)(1) and (5) amended............ 4719
Chapter XII
1420.3 (a), (b)(1), (4) and (c) amend-
1500 (Subchapter A) Added ............. 8351 ed............................................... 4719
1502 Added .................................... 48049
1420.4 (b) and (c) amended ............... 4719
1503 Added; interim ...................... 51483
1420.6 Amended .............................. 4719
1510 Transferred to Subchapter
1420.10 (a) amended ........................ 4719
A................................................ 8351
1510.17 (b) and (c) revised; in- 1420.11 Amended............................. 4719
terim........................................ 14881 Chapter XII
1511 Added; interim ........................ 7929 Chapter XII Heading revised; no-
Policy statement .......21582, 56496, 66071 menclature change ................... 49720
1511.7 Corrected ............................. 8579 1500 Authority citation re-
1520 (Subchapter B) Added.............. 8351 vised......................................... 49720

1540 (Subchapter C) Added.............. 8353 1500.3 Amended............................. 49720
447
49 CFR (10–1–07 Edition)
49 CFR—Continued 68 FR 49 CFR—Continued 68 FR
Page Page
Chapter XII—Continued Chapter XII—Continued
1502 Authority citation re- 1572.1—1572.11 (Subpart A) Sub-
vised......................................... 49720 part designation and heading
1503 Authority citation revised; added; interim .......................... 23869
nomenclature change ............... 49720 1572.3 Added; interim .................... 23869
1503.3 (b) amended ........................ 49720 1572.3 Amended; interim ............63039
1503.5 (b)(2), (k) introductory text 1572.5 Added; interim .................... 23869
and (2)(C)(ii) amended ............... 49720 1572.5 (b)(2)(i), (ii), (c)(1), (2) in-
(b) corrected ................................58281 troductory text and (3) revised;
1503.16 (f) amended........................ 49720 (c)(4) added; interim ..................63039
(f) corrected .................................58281 1572.101—1572.143 (Subpart B)
1503.209 (b) amended ..................... 49720 added; interim .......................... 23871
(b) corrected ................................58281
1503.210 (a) amended ..................... 49720
(a) corrected ................................58281
2004
1503.230 (b)(2)(C)(ii) amended ........ 49720 49 CFR 69 FR
1503.233 (a) amended ..................... 49720 Page
(a)corrected .................................58281 Title 49 Nomenclature change ...... 18803
1510 Policy statement .................... 3192 Chapter X
Authority citation revised ...........49720 1201 Authority citation re-
1510.3 Amended............................. 49720 vised......................................... 58366
1510.5 Suspended (temporary) ....... 27751 Chapter XII
1510.9 (a), (b) and (c) suspended
1507 Added .................................... 35537
(temporary).............................. 27751
1510.19 Revised ............................. 49720 1520 Revised; interim .................... 28082
1510.23 Added (temporary) ............ 27751 1552 Added; interim ...................... 56340
1511 Authority citation re- 1572 Revised; interim .................... 68742
vised......................................... 49720 1572.3 Amended............................. 17973
1511.3 Amended............................. 49720 1572.5 (b)(2) and (c)(1) through (4)
1511.5 (a), (b) and (c) suspended revised ..................................... 17973
(temporary).............................. 27752
1511.7 (b) suspended (tem- 2005
porary) ..................................... 27752 49 CFR 70 FR
1511.11 (a) introductory text re- Page
vised......................................... 49720 Chapter XI
1511.15 Added (temporary) ............ 27752
1400—1499 (Chapter XI) Heading
1540 Policy statement .................... 7444
revised ....................................... 8301
Technical correction .....................9902
Authority citation revised ...........49721 Chapter XII
1540.115 Added ................................ 3761 1507 Authority citation re-
(b) amended .................................49721 vised......................................... 33384
1540.117 Added ................................ 3768 1507.3 (i) added .............................. 33384
1542 Authority citation re- 1520.3 Amended; interim ............... 41599
vised......................................... 49721 1520.5 (b)(1)(i) revised; (b)(8)(iv)
1544 Authority citation re- added; interim .......................... 41599
vised......................................... 49721 1520.7 (a) revised; interim.............. 41600
1546 Authority citation re- 1520.11 (a) amended ........................ 1382
vised......................................... 49721 1540 Interpretation ...... 9877, 51679, 72930
1548 Authority citation re- 1540.111 (a)(3), (b)(2) and (c) re-
vised......................................... 49721 vised; interim ........................... 41600
1550 Authority citation re- 1562 Added; interim ........................ 7162
vised......................................... 49721 Heading revised; interim..............41600
1570—1572 (Subpart D) Added; in- Authority citation revised ...........41600
terim ......................................... 6086 1562.21—1562.29 (Subpart B)
1570 Added; interim ...................... 23869 Added; interim ......................... 41600
1572 Authority citation re- 1572 Authority citation re-

vised......................................... 23869 vised .......................................... 2558
448
Page Page
1572.301—157.399 (Subpart D) (d) correctly amended; eff. 10–23–
Added ........................................ 2558 06 ..............................................31964
1572.401—1572.405 (Subpart E) (d) revised; interim ......................62549
Added ........................................ 2558 1546.215 Added; eff. 10-23-06 ............ 30512
1546.301 Introductory text re-
2006 vised; eff. 10-23-06 ...................... 30513
1548.1 Introductory text cor-
49 CFR 71 FR rectly amended; eff. 10-23-06 ...... 33255
Page
1548.3 (c) added; eff. 10-23-06 ........... 30513
Chapter XI 1548.5 (a), (b) and (c) revised; eff.
1420 Redesignated as Part 369 ........ 45742 10-23-06 ..................................... 30513
Chapter XII (a) correctly amended; eff. 10–23–
1507.3 (a), (c) and (d) revised; (j) 06 ..............................................31964
added........................................ 44227 1548.7 Revised; eff. 10-23-06 ............ 30513
1520.5 (b)(2)(i), (3)(i) and (4)(i) re- 1548.9 Revised; eff. 10-23-06 ............ 30515
vised; eff. 10-23-06 ...................... 30507 1548.11 Added; eff. 10-23-06.............. 30515
1540.5 Amended; eff. 10-23-06 .......... 30507 (d) revised; interim ......................62549
1540.111 (a)(1) revised; eff. 10-23- 1548.13 Added; eff. 10-23-06.............. 30515
06.............................................. 30507 1548.15 Added; eff. 10-23-06.............. 30516
1540.201—1540.209 (Subpart C) (d) correctly amended; eff. 10–23–
Added; eff. 10-23-06..................... 30507 06 ..............................................31965
1542.1 (d) added; eff. 10-23-06 ........... 30509 (d) revised; interim ......................62549
1542.5 (e) added; eff. 10-23-06 ........... 30509 1548.16 Added; eff. 10-23-06.............. 30516
1542.101 (a) introductory text, (b) (a) correctly amended; eff. 10–23–
and (c) introductory text re- 06 ..............................................31965
vised; eff. 10-23-06 ...................... 30509 (a) revised; interim ......................62550
1542.205 (a) and (b)(2) revised; (c) 1548.17 Added; eff. 10-23-06.............. 30516
added; eff. 10-23-06 ..................... 30509 1548.19 Added; eff. 10-23-06.............. 30516
1544.3 (c) revised; eff. 10-23-06 ......... 30510 1572.201—1572.203 (Subpart C)
1544.101 (d)(1), (4) and (e)(1) re- Heading revised; interim .......... 44881
vised; (h) and (i) added; eff. 10- 1572.201 Revised; interim .............. 44881
23-06 ......................................... 30510
1544.202 Added; eff. 10-23-06 ............ 30510 2007
1544.205 Revised; eff. 10-23-06 ......... 30510 (Regulations published from January 1,
1544.217 (a)(2) introductory text 2007, through October 1, 2007)
and (b) introductory text re-
vised; eff. 10-23-06 ...................... 30510 49 CFR 72 FR
Page
1544.225 (d) added; eff. 10-23-06 ........ 30510
1544.228 Added; eff. 10-23-06 ............ 30511 Chapter X
(d) correctly amended; eff. 10–23– 1243.3 Added; eff. 11–12–07 .............. 45386
06 ..............................................31964 Chapter XII
(d) revised; interim ......................62549 1515 Added ..................................... 3588
1544.229 Introductory text added; 1515.5 (h) and (i) correctly redes-
(a)(1)(iii) revised; eff. 10-23- ignated as (g) and (h) ................. 14049
06.............................................. 30511 1515.11 (b)(1)(i) corrected ................ 5633
1544.239 Added; eff. 10-23-06 ............ 30511 1540 Revised ................................... 3592
1546.3 (c) added; eff. 10-23-06 ........... 30511 1540 Policy statement................... 40262
1546.101 Introductory text and (a) 1540.201 (a)(4) corrected................. 14049
revised; (e) and (f) added; eff. 10- 1540.203 (b)(2)(ii) corrected ............ 14050
23-06 ......................................... 30511 1540.205 (e) correctly redesig-
1546.103 (a)(1) and (b) introduc- nated as (d)................................. 5633
tory text revised; eff. 10-23- (d) corrected ................................14050
06.............................................. 30512 1544.228 (d) revised; (e) added; in-
1546.202 Added; eff. 10-23-06 ............ 30512 terim........................................ 13025
1546.205 Revised; eff. 10-23-06 ......... 30512 1546.213 (d) revised; (e) added; in-
1546.213 Added; eff. 10-23-06 ............ 30512 terim........................................ 13026
449
49 CFR (10–1–07 Edition)
Page Page
1548.15 (d) revised; (e) added; in- 1572.103 (a)(5), (10), (b)(2)(xii) and
terim........................................ 13026 (xiii) corrected ........................... 5633
1548.16 (a) revised; (d) added; in- Second (b)(2)(xi), (xii), (xiii) and
terim........................................ 13026 (xiv) correctly redesignated as
1570 Revised ................................... 3593 (b)(2)(xii) through (xv)...............14050
1570.3 Correctly amended.............. 14050 Second (b)(2)(xii) correctly des-
1572 Revised ................................... 3595 ignated as (b)(2)(xiii) .................15195
Policy statement .........................13026 1572.105 (a)(7) revised .................... 55049
1572.3 (b)(2) revised ....................... 55048 1572.401 (a) corrected .................... 14050
1572.19 (b) revised.......................... 55048 1572.501 (b), (c) and (d) revised........ 55049
Æ
450

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49

Part 1200 to End

Containing a codification of documents

A Special Edition of the Federal Register

Legal Status and Use of Seals and Logos

Use of ISBN Prefix

U.S. GOVERNMENT PRINTING OFFICE

U.S. Superintendent of Documents • Washington, DC 20402–0001

Phone: toll-free (866) 512-1800; DC area (202) 512-1800

Subtitle B—Other Regulations Relating to Transportation (Contin-

Chapter X—Surface Transportation Board, Department of Trans-

Chapter XI—Research and Innovative Technology Administration,

Chapter XII—Transportation Security Administration, Depart-

Material Approved for Incorporation by Reference ............................ 415

Table of CFR Titles and Chapters ....................................................... 417

Alphabetical List of Agencies Appearing in the CFR ......................... 435

Redesignation Table ............................................................................ 445

List of CFR Sections Affected ............................................................. 447

To cite the regulations in

to display an OMB control number with their information collection request.

revision dates of the 50 CFR titles.

Title 49—TRANSPORTATION is composed of nine volumes. The parts in these vol-

Redesignation tables for chapter III—Federal Motor Carrier Safety Administra-

SUBTITLE B—OTHER REGULATIONS RELATING TO TRANSPORTATION

CHAPTER X—Surface Transportation Board, Department of

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

1220 Preservation of records ........................................... 164

1241 Annual, special, or periodic reports—Carriers sub-

1280 Handling of national security information and

1300 Disclosure, publication, and notice of change of

Parts 1200–1219—Uniform Systems (b) Carriers’ and Interested Parties’

counting procedures that the carriers

PART 1201—RAILROAD 2–19 List of units of property.

2–18 Leased property improvements and re- 35 Miscellaneous structures.

520000 Other casualties. 602 Credit balance transferred from income.

4. Actually outstanding as applied to the amount of float unless such adjust-

balance to be greater than the cash value of the consideration received

to funded debt securities or capital connection with the sale or in pre-

Extraordinary items are character- (1) Correction of an error in the fi-

items, unusual or infrequent items, dis- designated area of responsibility. These

the conditions which prevent the prop- to, or improvement of depreciable or

Government to Amtrak and ConRail promote new business as well as out-

business. The entertainment expendi- (4) Paid admission to any sporting,

costs, and for revenues and rentals especially assigned to construction

employer’s liability insurance pre- unloaders, pile drivers, dredges,

labor-saving machines; also rents paid for transportation purposes, or 3, Grad-

incumberances on newly acquired lands common expense activity/subactivity num-

ment. Subactivities 11 and 12 also mulated depreciation; Road and equip-

made for such estimated liabilities as contributions to capital by stock-

(estimated if unknown) of property re- provements on leased property, shall be

changes in line of road or tracks which A motor truck.

Jetties or breakwater. cluding cross arms, wires and appur-

Account 29, Power Plants Account 52, Locomotives

Account 35, Miscellaneous Structures Account 56, Floating Equipment

Account 39, Public Improvements—Construction Account 58, Miscellaneous Equipment

Any applicable units listed under other ac- An airplane.

criteria that would require capitaliza- fined as a repair that is relatively so

properly weighing to determine the or a subgroup in that account, shall be

expenses and accumulated deprecia- data bearing on prospective service

5–2 Recorded value of securities 798.1, Net Unrealized Loss on Noncurrent

(i) An investment account to include (iv) Accumulated amortization of dif-