The text of the bill below is as of Oct 14, 1980 (Passed Congress).
You are reading a bill enacted 15,682 days ago. In the intervening time subsequent legislation may have amended or repealed the provisions below.
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1895
Public Law 96-448
96th Congress
An Act
To reform the economic r^nilation of railroads* and for otiher purposes. Oct. 14, 1980
[S. 1946]
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, I S f ilso^'^
49 u s e 10101
SHOBT TITLB note.
SECTION 1. This Act may be cited as the "Staggers Rail Act of 1980".
TABLE OF CONTENTS
Sec. 1. Short title.
Sea 2. Findings.
Sec. 3. Goals.
TITLE I-RAIL TRANSPORTATION POLICY
Sec. 101. Rail transportation policy.
TITLE n—RAILROAD RATES AND INTERCARRIER PRACTICES
Sea 201. Regulation of railroad rates.
Sec. 202. Determination of market dominance.
Sec. 203. Zone of rate flexibilily.
Sec. 204. Transportation of recyclable materials.
Sec. 205. Rate r^ulation proceedings adequate revenues.
Sec. 206. Inflation-based rate increases.
Sec. 207. Investigation and suspension of ratea
Sec 208. Contracts.
Se& 209. Demand sensitive rates.
Sec. 210. Phaseout of capital incentive rates.
Sec. 211. Permissive limited liability ratea
Sec. 212. Rate discrimination.
Sec. 213. Exemption.
Sec. 214. Intrastate rates.
Sec. 215. Business entertainment expenses.
Sec. 216. Efficient marketing.
Sec. 217. Compensatory joint rate relief.
Sec. 218. Expedited division of revenues proceedings.
Sec. 219. Rate bureaus.
Sec. 220. Long and short haul transportation.
Sec. 221. Raihoad entry.
Sec. 222. Service during periods of peak demand.
Sec. 223. Reciprocal switching.
Sec. 224. Car service compensation.
Sec. 225. Car utilization.
Sec. 226. Car service orders for exigent circumstances.
Sec. 227. Employee protection.
Sec. 228. Mergers and other transactions.
Sec. 229. Savings provisions.
TITLE m—RAILROAD COST DETERMINATIONS
Sec. 301. Uniform accounting system.
Sec. 302. Railroad cost accounting.
Sec. 303. Civil penalties for violations of accounting principles provisions.
94 STAT. 1896 PUBLIC LAW 96-448—OCT. 14, 1980
TITLE IV-RAILROAD MODERNIZATION ASSISTANCE
Sec. 401. Feeder railroad development program.
Sec. 402. Abandounent.
Sec. 403. Conversion of abandoned railroad rights-of-way.
Sec. 404. Extension of redeemable preference share financing.
Sec. 405. Financing.
Sec. 406. Tremsaction assisttmce.
Sec. 407. Electrification loan guarantees.
Sec. 408. Amendment to the R^onal Rail Reorganization Act of 1973.
Sec. 409. Federal assistance report.
TITLE V-CONRAIL TITLE V LABOR PROTECTION
Sec. 501. Monthly displacement allowance.
Sec. 502. Duration of monthly displacement allowance.
Sec. 503. Training and transfer.
Sec. 504. Payment, audit, and report.
Sec. 505. Railroad hiring.
Sec. 506. Single collective-bargaining agreement.
Sec. 507. Employee protection payments.
Sec. 508. Technical amendments.
TITLE VI—EXPEDITED SUPPLEMENTAL TRANSACTION PROPOSALS
Sec. 601. Expedited supplemental transaction proposals.
TITLE Vn—MISCELLANEOUS PROVISIONS
Sec. 701. Rock Island and Milwaukee Railroads amendments.
Sec. 702. Loan guarantees.
Sec. 703. Conrail studies and emergency funding.
Sec. 704. USRA authorization of appropriations.
Sec. 705. Feeder line rehabilitation study.
Sec. 706. Effect on pending matters.
Sec. 707. Construction of amendments.
Sec. 708. Surplus property.
Sec. 709. Study of Alaska railroad rates.
Sec. 710. Effective dates.
FINDINGS
49 use 10101a SEC. 2. The Congress hereby finds that—
^°^- (1) historically, railroads were the essential factor in the
national transportation system;
(2) the enactment of the Interstate Commerce Act was essen-
tial to prevent an abuse of monopoly power by railroads and to
establish and maintain a national railroad network;
(3) today, most transportation within the United States is
competitive;
(4) many of the Government regulations affecting railroads
have become unnecessary and inefficient;
(5) nearly two-thirds of the Nation's intercity freight is trans-
ported by modes of transportation other than railroad;
(6) earnings by the railroad industry are the lowest of any
transportation mode and are insufficient to generate funds for
necessary capital improvements;
(7) by 1985, there will be a capital shortfall within the railroad
industry of between $16,000,000,000 and $20,000,000,000;
(8) failure to achieve increased earnings within the railroad
industry will result in either further deterioration of the rail
system or the necessity for additional Federal subsidy; and
(9) modernization of economic regulation for the railroad
industry with a greater reliance on the marketplace is essential
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1897
in order to achieve maximum utilization of railroads to save
energy and combat inflation.
GOALS
SEC. 3. The purpose of this Act is to provide for the restoration, 49 use loioia
maintenance, and improvement of the physical facilities and finan- ^°^-
cial stability of the rail system of the United States. In order to
achieve this purpose, it is hereby declared that the goals of this Act
are—
(1) to assist the railroads of the Nation in rehabilitating the
rail system in order to meet the demands of interstate commerce
and the national defense;
(2) to reform Federal regulatory policy so as to preserve a safe,
adequate, economical, efficient, and financially stable rail
system;
(3) to assist the rail system to remain viable in the private
sector of the economy;
(4) to provide a regulatory process that balances the needs of
carriers, shippers, and the public; and
(5) to assist in the rehabilitation and financing of the rail
system.
TITLE I—RAIL TRANSPORTATION POLICY
RAIL TRANSPORTATION POUCY
SEC. 101. (a) Chapter 101 of title 49, United States Code, is amended
by inserting after section 10101 the following new section:
"§ 10101a. Rail transportation policy 49 u s e 10101a.
"In regulating the railroad industry, it is the policy of the United
States Government—
"(1) to allow, to the maximum extent possible, competition and
the demand for services to establish reasonable rates for trans-
portation by rail;
"(2) to minimize the need for Federal regulatory control over
the rail transportation system and to require fair £ind expedi-
tious regulatory decisions when regulation is required;
"(3) to promote a safe and efficient rail transportation system
by allowing rail carriers to earn adequate revenues, as deter-
mined by the Interstate Commerce Commission;
"(4) to ensure the development and continuation of a sound rail
transportation system with effective competition among rail
carriers and with other modes, to meet the needs of the public
and the national defense;
"(5) to foster sound economic conditions in transportation and
to ensure effective competition and coordination between rail
carriers and other modes;
"(6) to maintain reasonable rates where there is an absence of
effective competition and where rail rates provide revenues
which exceed the amount necessary to maintain the rail system
and to attract capital;
"(7) to reduce regulatory barriers to entry into and exit from
the industry;
"(8) to operate transportation facilities and equipment without
detriment to the public health and safety;
94 STAT. 1898 PUBLIC LAW 96-448—OCT. 14, 1980
"(9) to cooperate with the States on transportation matters to
assure that intrastate regulatory jurisdiction is exercised in
accordance with the standards established in this subtitle;
"(10) to encourage honest and efficient management of rail-
roads and, in particular, the elimination of noncompensatory
rates for rail transportation;
"(11) to require rail carriers, to the maximum extent practica-
ble, to rely on individual rate increases, and to limit the use of
increases of general applicability;
"(12) to encourage fair wages and safe and suitable working
conditions in the railroad industry;
"(13) to prohibit predatory pricing and practices, to avoid
undue concentrations of market power and to prohibit unlawful
discrimination;
"(14) to ensure the availability of accurate cost information in
regulatory proceedings, while minimizing the burden on rail
carriers of developing and maintaining the capability of provid-
ing such information; and
"(15) to encourage and promote energy conservation.".
(b) Section 10101(a) of title 49, United States Code, is amended by
striking out "To ensure" and inserting in lieu thereof "Except where
policy has an impact on rail carriers, in which case the principles of
Ante, p. 1897. section 10101a of this title shall govern, to ensure".
(c) The section analysis of chapter 101 of title 49, United States
Code, is amended by inserting after the item relating to section 10101
the following new item:
"lOlOla. Rail transportation policy.".
TITLE II—RAILROAD RATES AND INTER-CARRIER
PRACTICES
REGULATION OF RAILROAD RATES
SEC. 201. (a) Subchapter I of chapter 107 of title 49, United States
Code, is amended by inserting after section 10701 the following new
section:
49 use 10701a. "§ 10701a. Standards for rates for rail carriers
"(a) Except as provided in subsection Qy) or (c) of this section and
unless a rate is prohibited by a provision of this title, a rail carrier
providing transportation subject to the jurisdiction of the Interstate
49 u s e 10501. Commerce Commission under subchapter I of chapter 105 of this title
may establish any rate for transportation or other service provided
by the carrier.
"(bXl) If the Commission determines, under section 10709 of this
49 u s e 10709. title, that a rail carrier has market dominance over the transporta-
tion to which a particular rate applies, the rate established by such
carrier for such transportation must be reasonable.
"(2) In any proceeding to determine the reasonableness of a rate
described in paragraph (1) of this subsection—
"(A) the shipper challenging such rate shall have the burden of
proving that such rate is not reasonable if^
"(i) such rate (I) is authorized under section 10707a of this
title, and (II) results in a revenue-variable cost percentage
for the transportation to which the rate applies that is less
than the lesser of the percentages described in clauses (i) and
Post, p. 1901. (ii) of section 10707a(eX2)(A) of this title; or
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1899
"(ii) such rate does not meet the description set forth in
clause (i) of this subparagraph, but the Commission does not
begin an investigation proceeding under section 10707 of this 49 u s e 10707.
title to determine whether such rate is reasonable; and
"(B) the rail carrier establishing the challenged rate shall have
the burden of proving that such rate is reasonable if—
"(i) such rate (I) is greater than that authorized under
section 10707a of this title, or (II) results in a revenue- Post, p. 1901.
variable cost percentage for the transportation to which the
rate applies that is equal to or greater than the lesser of the
percentages described in clauses (i) and (ii) of section
10707a(eX2)(A) of this title; and
"(ii) the Commission begins an investigation proceeding
under section 10707 of this title to determine whether such
rate is reasonable.
"(3) In determining whether a rate established by a rail carrier is
reasonable for purposes of this section, the Commission shall recog-
nize the policy of this title that rail carriers shall earn adequate
revenues, as established by the Commission under section 10704(a)(2)
of this title. Post, p. 1906.
"(cXl) A rate for transportation or other service provided by a rail
carrier subject to the jurisdiction of the Commission under sub-
chapter I of chapter 105 of this title may not be established below a 49 u s e 10501.
reasonable minimum. Any rate for transportation by such a rail
carrier that does not contribute to the going concern value of such
carrier is presumed to be not reasonable. A rate that contributes to
the going concern value of such carrier is conclusively presumed not
to be below a reasonable minimum.
"(2) A rate for transportation by a rail carrier that equals or
exceeds the variable cost of providing the transportation is conclu-
sively presumed to contribute to the going concern value of such rail
carrier.
"(3)(A) Upon the filing of a complaint alleging that a rate is in
violation of this subsection, the Commission shall take final action
thereon by the 90th day after the date such complaint is filed.
"(B) If the Commission determines, based on the record after
opportunity for a hearing, that a rate is in violation of this subsection,
the Commission shall order such rate to be raised, but only to the
minimum level required by this subsection. The complainant shall
have the burden of proving that such rate is in violation of this
subsection.
"(4XA) For purposes of this subsection, variable costs shall be
determined under formulas or procedures prescribed or certified by
the Commission.
"(B) In the determination of variable costs for purposes of mini-
mum rate regulation, the Commission shall, on application of the rail
carrier proposing the rate, determine only the costs of such carrier
and only those costs of the specific service in question unless the
specific information is not available. The Commission may not
include in such variable costs an expense that does not vary directly
with the level of transportation provided under the proposed rate. .
ObXD Section 10701(a) of title 49, United States Code, is amended—
(A) by inserting "(other than a rail rate)" immediately after "A
rate" in the first sentence;
(B) by inserting "(including a rail carrier)" immediately after
"such a carrier" in the second sentence thereof; and
(C) by inserting "(including rail carriers)" immediately after
"those carriers" in the third sentence thereof.
94 STAT. 1900 PUBLIC LAW 96-448—OCT. 14, 1980
Repeal. (2) Section 10701(b) of title 49, United States Code, is repealed.
(3) The section anedysis of chapter 107 of title 49, United States
Code, is amended by inserting immediately below the item relating to
section 10701 the following new item:
"10701a. Standards for rates for rail carriers.".
DETERMINATION OF MARKET DOMINANCE
SEC. 202. Section 10709 of title 49, United States Code, is amended
by adding at the end thereof the following new subsection:
Definitions. "(dXl) In this subsection—
"(A) 'fixed and variable cost' means all cost incurred by r£ul
carriers in the transportation of freight, but limiting the return
on equity capital to a rate equal to the embedded cost of debt.
"(BXi) 'cost recovery percentage' means the lowest revenue-
variable cost percentage which, if all movements that produced
revenues resulting in revenue-variable cost percentages in excess
of the cost recovery percentage are deemed to have produced only
revenues resulting in the cost recovery percentage, would pro-
duce revenues which would be equal, when combined with total
revenues produced by all other traffic transported by rail carrier,
to the total fixed and variable cost of the transportation of all
traffic by rail carrier.
"(ii) for purposes of determining the cost recovery percentage
only, 'revenue-variable cost percentage' means the quotient,
expressed as a percentage figure, obtained by dividing the total
revenues produced by the transportation of all traffic received by
rail carriers for rail transportation by the total variable cost of
such transportation.
"(2) In making a determination under this section, the Commission
shall find that the rail carrier establishing the challenged rate does
not have market dominance over the transportation to which the rate
applies if such rail carrier proves that the rate charged results in a
revenue-variable cost percentage for such transportation that is less
than—
"(A) 160 percent during the period beginning on the effective
Ante, p. 1895. date of the Staggers Rail Act of 1980 and ending September 30,
1981;
"(B) 165 percent during the period beginning October 1,1981,
and ending September 30,1982;
"(C) 170 percent during the period beginning October 1,1982,
and ending September 30,1983;
"(D) 175 percent or the cost recovery percentage, whichever is
less, during the period beginning October 1, 1983, and ending
September 30,1984; and
"(E) the cost recovery percentage, during each 12-month period
beginning on or after October 1,1984.
C!ost recovery For purposes of subparagraphs (D) and (E) of this paragraph, the cost
percentage. recovery percentage shall in no event be less than a revenue-variable
cost percentage of 170 percent or more than a revenue-variable cost
percentage of 180 percent.
Revenue- "(3) For purposes of determining the revenue-variable cost percent-
variable cost age for a particular transportation, variable costs shall be determined
percentage.
Ante, p. 1916. pursuant to section 10705a(mXl) of this title, with adjustments
specified by the Commission. A rail carrier may meet its burden of
proof under this subsection by establishing its vsiriable costs in
accordance with such section 10705a(mXl)> but a shipper may rebut
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1901
that showing by evidence of such t5T)e, and in accordance with such
burden of proof, as the Commission shall prescribe.
"(4) A finding by the Commission that a rate charged by a rail
carrier results in a revenue-variable cost percentage for the transpor-
tation to which the rate applies that is equal to or greater than the
applicable percentage under paragraph (2) of this subsection does not
establish a presumption that (A) such rail carrier has or does not have
market dominance over such transportation, or (B) the proposed rate
exceeds or does not exceed a reasonable maximum.
"(5XA) Within 180 days after the effective date of the Staggers Rail Cost recovery
Act of 1980 and on an annual basis thereafter, the Commission shall percentages.
Ante, p. 1895.
determine the cost recovery percentage for the transportation of all
traffic received by rail carriers. The Commission shall make such
determination after considering each individual revenue-variable
cost percentage resulting from the revenues and costs of a valid and
reliable statistical sample of all movements of commodities trans-
ported by class I rail carriers during the most recent calendar year for
which such information is available.
"(B) If, on the basis of calculations under subparagraph (A) of this
paragraph, the Commission determines that revenues earned by all
class I rail carriers during the previous calendar year do not exceed
the fixed and variable costs of such carriers, then the cost recovery
percentage for purposes of this section shall be deemed to be equal to
the cost recovery percentage last determined by the Commission.
"(C) The Commission shall, in its annual report submitted to the
Congress under section 10311 of this title, set forth the cost recovery 49 use I03ii
percentage determined for that year under subparagraph (A) of this
paragraph.".
ZONE OF RATE FLEXIBIUTY
SEC. 203. (a) Subchapter I of chapter 107 of title 49, United States
Code, is amended by inserting after section 10707 the following new
section:
"§ 10707a. Zone of rail carrier rate flexibility 49 u s e 10707a.
"(a) In this section—
"(1)(A) 'base rate' means, with respect to the transportation of "Base rate."
a particular commodity (i) for the 24-month period beginning on
October 1, 1980, the rate in effect on October 1, 1980, (ii) for the
24-month period beginning on October 1,1982, the rate in effect
on October 1, 1982, and (iii) for the 5-year period beginning on
October 1, 1984, and for each subsequent 5-year period, the rate
in effect on the first day of the applicable 5-year period.
"(B) If no rate exists for the transportation of a particular
commodity on October 1, 1980, the base rate for the transporta-
tion of such commodity shall be the rate established by the rail
carrier (divided by the latest rail cost adjustment factor pub-
lished by the Commission), unless such rate is found to be
unreasonable by the Commission, in which case the base rate
shall be the rate authorized by the Commission (divided by the
latest rail cost adjustment factor published by the Commission).
"(2)(A) 'adjusted base rate' means the base rate for the trans- "Adjusted base
portation of a particular commodity multiplied by the latest rail rate."
cost adjustment factor published by the Commission pursuant to
this paragraph.
"(B) Commencing with the fourth quarter of 1980, the Commis- Rail cost
adjustment
sion shall, as often £is practicable but in no event less often than factor.
94 STAT. 1902 PUBLIC LAW 96-448—OCT. 14, 1980
quarterly, publish a rail cost adjustment factor which shall be a
fraction, the numerator of which is the latest published Index of
Railroad Costs (which index shall be compiled or verified by the
Commission, with appropriate adjustments to reflect the cnang-
ing composition of railroad costs, including the quality and mix
of material and labor), and the denominator of which is the same
index for the fourth quarter of 1980, or for the fourth quarter of
1982 or for the fourth quarter of every fifth year thereafter, as
appropriate.
Rate increase. "0>)(1) Except as provided in paragraph (2) of this subsection, a rail
carrier providing transportation subject to the jurisdiction of the
Interstate Commerce Commission under subchapter I of chapter 105
49 u s e 10501. of this title may increase any rate over which the Commission has
49 u s e 10709. jurisdiction under section 10709 of this title so long as the increased
rate is not greater than the adjusted base rate for the transportation
involved, plus any rate increases implemented under subsection (c) or
(d) of this section.
"(2) A rate increase authorized under this subsection may not be
found to exceed a reasonable maximum for the transportation
involved.
"(3) A rail carrier majr not increase a rate under this subsection to
the extent that the cost increases to such carrier due to inflation are
recovered through (A) general rate increases pursuant to section
49 u s e 10706. 10706 of this title, or (B) inflation-based rate increases under section
49 u s e 10712. 10712 of this title applicable to that rate.
"(cXl) During the 12-month period beginning on the effective date
Ante, p. 1895. of the Staggers Rail Act of 1980 and during each of the 3 succeeding
12-month periods, a rail carrier may, in addition to rate increases
authorized under subsection Qj) of this section, increase any rate over
which the Commission has jurisdiction under section 10709 of this
title by an annual amount of not more than 6 percent of the adjusted
base rate, except that in no event shall the total increase under this
subsection result in a rate which is more than 118 percent of the
adiusted base rate.
(2)(A) If any portion of a rate increase under this subsection is not
implemented in the year in which it is authorized, such portion may,
except as provided in subparagraph (B) of this paragraph, be imple-
mented only in the next succeeding year.
"(B) If any portion of the total rate increase authorized under this
subsection is not implemented by the end of the 4-year period
beginning on the effective date of the Staggers Rail Act of 1980, such
portion may be implemented in the next 2 succeeding years, except
that in no event may a rail carrier increase a rate under this
subsection or under subsection (d) of this section in either of such 2
succeeding years by an annual amount of more than 10 percent of the
adiusted base rate.
(dXD Except as provided in paragraph (3) of this subsection,
during the 12-month period beginning on October 1,1984, and during
each succeeding 12-month period, a rail carrier may, in addition to
rate increases under subsection (b) of this section, increase any rate
over which the Commission has jurisdiction under section 10709 of
this title by an annual amount of not more than 4 percent of the
adiusted base rate.
(2) No portion of any rate increase under this subsection which is
not implemented in the year in which it is authorized may be
implemented in any other year.
(3)(A) The provisions of this subsection shall not apply to a rail
carrier proposing to increase a single line rate if such carrier earns
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1903
adequate revenues, as determined by the Commission under section
10704(a)(2) of this title. Post, p. 1906.
"(B) The Commission shall, after a hearing on the record, prescribe Joint rates,
such rules with respect to joint rates as necessary to ensure that rail rules.
carriers which earn adequate revenues, as determined under section
10704(a)(2) of this title, do not receive the rate increases authorized by
this subsection unless the Commission determines that it is unable to
prescribe such rules without precluding rail carriers not earning
adequate revenues from receiving the rate increases authorized
under this subsection.
"(e)(1) Notwithstanding the provisions of section 10707 of this title, 49 u s e 10707.
in the case of any rate increase by a rail carrier that is authorized
under subsection (c) or (d) of this section—
"(A)(i) the Commission may not suspend such rate increase
pending final Commission action; and
"(ii) except as provided in p a r ^ r a p h (2) of this subsection, the
Commission may not begin an investigation proceeding under
section 10707 of this title with respect to the reasonableness of
such rate increase; but
"(B) an interested party may file a complaint under section
11701(b) of this title alleging that such rate increase violates the 49 u s e 11701.
provisions of this subtitle.
In considering any complaint challenging a rate increase that is
authorized under subsection (c) of this section and that results in a
revenue-variable cost percentage that is less than the lesser of the
percentages described in clauses (i) and (ii) of paragraph (2)(A), the
Commission shall, in determining the reasonableness of such rate
increase, give due consideration to whether the carrier proposing the
rate increase has attained adequate revenues, as determined by the
Commission under section 10704(a)(2) of this title, giving regard to
preventing a carrier with adequate revenues from realizing excessive
profits on the traffic involved and also the policy of bringing to an
adequate level the revenues of carriers not having an adequate
revenue level.
"(2)(A) If a rate increase authorized under this section in any year
results in a revenue-variable cost percentage for the transportation to
which the rate applies that is equal to or greater than—
"(i) 20 percentage points above the revenue-variable cost per-
centage applicable in that year under section 10709(d) of this
title; or Ante, p. 1900.
"(ii) a revenue-variable cost percentage of 190 percent,
whichever is less, the Commission may, on its own initiative, or on
complaint of an interested party, begin an investigation proceeding to
determine whether the proposed rate increase violates this subtitle.
"(B) In determining whether to investigate or not to investigate any
proposed rate increase that results in a revenue-variable cost percent-
age for the transportation to which the rate applies that is equal to or
greater than the lesser of the percentages described in clauses (i) and
(ii) of subparagraph (A) of this paragraph (without regard to whether
such rate increase is authorized under this section), the Commission
shall set forth its reasons therefor, giving due consideration to the
following factors:
"(i) the amount of traffic which is transported at revenues
which do not contribute to going concern value and efforts made
to minimize such traffic;
"(ii) the amount of traffic which contributes only marginally to
fixed costs and the extent to which, if any, rates on such traffic
can be changed to maximize the revenues from such traffic; and
79-194 O—81—pt. 2 40 : QL3
94 STAT. 1904 PUBLIC LAW 96-448—OCT. 14, 1980
"(iii) the impact of the proposed rate or rate increase on the
attainment of the national energy goals and the rail transporta-
Ante, p. 1897. tion policy under section 10101a of this title, taking into account
the railroads' role as a primary source of energy transportation
and the need for a sound rail transportation system in accord-
ance with the revenue adequacy goals of section 10704 of this
49 u s e 10704. title.
This subparagraph shall not be construed to change existing law with
regard to the nonreviewability of such determination.
"(C) In determining whether a rate is reasonable, the Commission
shall consider, among other factors, evidence of the following:
"(i) the amount of traffic which is transported at revenues
which do not contribute to going concern value and efforts made
to minimize such traffic;
"(ii) the amount of traffic which contributes only marginally to
fixed costs and the extent to which, if any, rates on such traffic
can be changed to maximize the revenues from such traffic; and
"(iii) the carrier's mix of rail traffic to determine whether one
commodity is paying an unreasonable share of the carrier's
overall revenues.
"(f) In any proceeding under this section, evidence of the underly-
ing rail carrier rate is admissible.
"(g) A finding by the Commission that a rate increase exceeds the
increase authorized under this section does not establish a presump-
tion that (1) the rail carrier proposing such rate increase has or does
not have market dominance over the transportation to which the rate
applies, or (2) the proposed rate exceeds or does not exceed a
reasonable maximum.
"(h) The authority of the Commission to determine and prescribe
reasonable rules, classifications, and practices may not be used,
directly or indirectly, to limit the rates which rail carriers are
otherwise authorized to establish under this subtitle.".
Ot)) The section analysis of chapter 107 of title 49, United States
Code, is amended by inserting immediately after the item relating to
section 10707 the following new item:
"10707a. Zone of rail carrier rate flexibility.".
Rail carrier rate (c)(1) Any rail carrier rate which increased over 70 percent between
increases. 1976 and 1979 inclusive for the transportation, in shipper owned
49 u s e 10707a equipment over a distance exceeding 1,550 miles between points
note. within the United States, of coal pursuant to a tariff calling for an
annual volume of more than 2,000,000 tons per year purchased by a
municipally owned utility for the generation of electric power under
a 20-year purchase agreement entered into by such utility in the year
1974 shall not be increased so long as coal is purchased under such
original agreement, except that—
(A) during the period beginning October 1, 1980, and ending
September 30, 1987, the Interstate Commerce Commission may
permit increases in such rate which result in a revenue-variable
cost percentage of not more than 162 percent; and
(B) after October 1, 1987, such rate shall be subject to section
Ante, p. 1898. 10701a of title 49, United States Code, and related provisions of
such title governing regulation of rail carrier rates, except that
until such rate results in a revenue-variable cost percentage that
is equal to or greater than the revenue-variable cost percentage
Ante, p. 1900. applicable under section 10709(d) of such title, such rate may not
be increased more than 4 percent, in addition to inflation, in any
year.
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1905
(2) Neither the provisions of this subsection nor any rate subject to
this subsection shall be admissible as evidence or considered in any
way in any proceeding involving any other rail carrier rate that is
commenced to determine market dominance under section 10709 of
title 49, United States Code, or to determine reasonableness under
section 10701a of such title. Ante, p. 1898.
TRANSPORTATION OF RECYCLABLE MATERIALS
SEC. 204. Section 10731 of title 49, United States Code, is amended
by adding at the end thereof the following new subsection:
"(e) Notwithstanding any other provision of this title or any other
law, within 90 days after the effective date of the Staggers Rail Act of
1980, all rail carriers providing transportation subject to the jurisdic-
tion of the Commission under subchapter I of chapter 105 of this title 49 u s e 10501.
shall take all actions necessary to reduce and thereafter maintain
rates for the transportation of recyclable or recycled materials, other
than recyclable or recycled iron or steel, at revenue-to-variable cost
ratio levels that are equal to or less than the average revenue-to-
variable cost ratio that rail carriers would be required to realize,
under honest, economical, and efficient management, in order to
cover total operating expenses, including depreciation and obsoles-
cence, plus a reasonable and economic profit or return (or both) on
capital employed in the business sufficient to attract and retain
capital in amounts adequate to provide a sound transportation
system in the United States. As long as any such rate equals or
exceeds such average revenue-to-variable cost ratio established by
the Commission, such rate shall not be required to bear any further
rate increase. The Commission shall have jurisdiction to issue all
orders necessary to enforce the requirements of this subsection.".
RATE REGULATION PROCEEDINGS; ADEQUATE REVENUES
SEC. 205. (aXl) The Interstate Commerce Commission shall com- 49 u s e 10701a
note.
mence a proceeding for purposes of determining whether, and to
what extent, product competition should be considered in proceedings
under subtitle IV of title 49, United States Code, to determine the 49 u s e 10101.
reasonableness of rail carrier rates. The Commission shall complete
its proceeding under this subsection within 230 days after the
effective date of this Act.
(2XA) For purposes of this subsection, the term "product competi- "Product
tion" means the availability to a consignee, at a competitive delivered competition."
cost and in sufficient quantities, of products or commodities which
are of the same tjrpe as the commodity or product to which the rate in
question applies, without regard to whether such products or com-
modities are available from the same or a different origin as those to
which the rate applies.
(B) In determining the availability of alternative sources of a
particular commodity for purposes of this subsection, such commod-
ity must be capable, by reason of similar specifications, of being
effectively utilized by the consignee.
(C) In determining the availability of alternative sources of coal for
purposes of this subsection, such coal must be capable, by reason of
similar specifications such as Btu's, sulfur content, and ash content,
of being effectively utilized by the consignee.
(D) For purposes of this subsection, any coal imported in the United
States for the generation of electricity by utilities sh^l not be taken
94 STAT. 1906 PUBLIC LAW 96-448—OCT. 14, 1980
into account in the determination of whether coal is available to a
consignee from another source.
(3)(A) Nothing in this subsection shall be construed as requiring the
Commission to modify its standards for the determination of the
reasonableness of rail carrier rates under existing law and
procedures.
"Market (B) Nothing in this subsection shall be construed as altering the
dominance." meaning, use, or interpretation by the Commission, the courts, or any
party of the term "market dominance", as defined in section 10709(a)
of title 49, United States Code. The enactment of this subsection shall
not be considered by the Commission in any proceeding, or by any
court on an appeal from that or any other proceeding, to determine
the proper scope of the term "market dominance" or whether there is
market dominance over the transportation to which any particular
rate applies.
(b)(1) Section 10704(a)(2) of title 49, United States Code, is amended
by inserting "and revise as necessary" immediately after "shall
maintain".
(2) Section 10704(a) of title 49, United States Code, is amended by
adding at the end thereof the following new paragraphs:
"(3) The Commission shall conclude a proceeding under paragraph
(2) of this subsection within 180 days after the effective date of the
Ante, p. 1895. Staggers Rail Act of 1980 and thereafter as necessary.
"(4) On the basis of the standards and procedures under paragraph
(2) of this subsection, the Commission shall, within 180 days after the
effective date of the Staggers Rail Act of 1980 and on an annual
basis thereafter, determine which rail carriers are earning adequate
revenues.".
INFLATION-BASED RATE INCREASES
SEC. 206. (a) Subchapter I of chapter 107 of title 49, United States
Code, is amended by adding at the end thereof the following new
section:
49 use 10712 "§ 10712. Inflation-based rate increases
"(a) The Commission may, on a quarterly basis and consistent with
Ante, p. 1897. the rail transportation policy set forth in section lOlOla of this title,
prescribe a percentage rate increase or rate index for rail carriers in
order to compensate for inflationary cost increases. Such percentage
rate increase or rate index may be applicable on an industry-wide,
territory-wide, or carrier-by-carrier basis.
"(b) Within 60 days after the date the Commission prescribes a
percentage rate increase or rate index under subsection (a) of this
section, each rail carrier or group of rail carriers shall notify the
Commission of any rate or group of rates which such carrier or
carriers intend to be excluded from the application of such percent-
age rate increase or rate index.
Percentage rate "(c) For purposes of this section, a percentage rate index may
index.
permit rate increases within a specified range to allow carriers to
recover a total revenue increase specified by the Commission as
necessary to compensate for inflationary cost increases.".
(b) The section analysis for chapter 107 of title 49, United States
Code, is amended by inserting immediately after the item relating to
section 10711 the following new item:
"10712. Inflation-based rate increases.".
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1907
INVESTIGATION AND SUSPiSNSION OF RATES
SEC. 207. (a) Section 10707(b)(1) of title 49, United States Code, is
amended to read as follows:
"(b)(1) The Commission must complete a proceeding under this
section and make its final decision by the end of the 5th month after
the rate, classification, rule, or practice was to become effective,
except that if the Commission reports to the Congress by the end of
such 5th month that it cannot make a final decision by that time and
explains the reason for the delay, it may take an additional 3 months
to complete the proceeding and make its final decision. If the
Commission does not reach a final decision within the applicable time
period, the rate, classification, rule, or practice—
"(A) is effective at the end of that time period; or
"(B) if already in effect at the end of that time period, remains
in effect.".
(b) Section 10707(c) of title 49, United States Code, is amended to
read as follows:
"(c)(1) The Commission may not suspend a proposed rate, classifica-
tion, rule, or practice during the course of a Commission proceeding
under this section unless it appears from the specific facts shown by
the verified statement of a person that—
"(A) it is substantially likely that the protestant will prevail on
the merits;
"(B) without suspension, the proposed rate change will cause
substantial injury to the protestant or the party represented by
the protestant; and
"(C) because of the peculiar economic circumstances of the
protestant, the provisions of subsection (d) of this section do not
protect the protestant.
"(2) The burden shall be on the protestant to prove the matters
described in paragraph (1) (A), (B), and (C) of this subsection.".
(c) Section 10707(d) of title 49, United States Code, is amended to
read as follows:
"(d)(1) If the Commission does not suspend a proposed rate increase
under subsection (c) of this section, the Commission shall require the
rail carrier to account for all amounts received under the increase
until the Commission completes its proceedings under subsection (b)
of this section. The accounting shall specify by whom and for whom
the amounts are paid. When the Commission takes final action, it
shall require the carrier to refund to the person for whom the
amounts were paid that part of the increased rate found to be
unreasonable, plus interest at a rate equal to the average yield (on
the date the statement is filed) of marketable securities of the United
States Government having a duration of 90 days.
"(2) If a rate is suspended under subsection (c) of this section and
any portion of such rate is later found to be reasonable under this
title, the carrier shall collect from each person using the transporta-
tion to which the rate applies the difference between the original rate
and the portion of the suspended rate found to be reasonable for any
services performed during the period of suspension, plus interest at a
rate equal to the average yield (on the date the statement is filed) of
marketable securities of the United States Government having a
duration of 90 days, except that this paragraph shall not apply to
general rate increases under section 10706 of this title. 49 USC 10706.
"(3) If any portion of a proposed rate decrease is suspended under
subsection (c) of this section and later found to be reasonable under
this title, the rail carrier may refund any part of the portion of the
94 STAT. 1908 PUBLIC LAW 96-448—OCT. 14, 1980
decrease found to comply with this title if the carrier makes the
refund available to each shipper who participated in the rate, in
accordance with the relative amount of such shipper's traffic trans-
ported at such rate.
"(4) Notwithstanding the provisions of section 10741 or section
49 u s e 10741, 10761 of this title, the Commission shall, by rule, establish standards
10761.
and procedures permitting a rail carrier to waive the collection of
amounts due under this subsection if such amounts are not
significant.".
Repeal. (d) Section 10707(e) of title 49, United States Code, is repealed.
CONTRACTS
SEC. 208. (a) Subchapter I of chapter 107 of title 49, United States
Code, as amended by this Act, is further amended by adding at the
end thereof the following new section:
49 u s e 10713. "§ 10713. Contracts
"(a) One or more rail carriers providing transportation subject to
the jurisdiction of the Interstate Commerce Commission under sub-
49 u s e 10501. chapter I of chapter 105 of this title may enter into a contract with
one or more purchasers of rail services to provide specified services
under specified rates and conditions. Such a rail carrier may not
enter into a contract with purchasers of rail service except as
provided in this section.
"(b) Each contract entered into under this section shall be filed
with the Commission, together with a summary of the contract
containing such nonconfidential information as the Commission
Special tariff prescribes. The Commission shall publish special tariff rules for such
rules. contracts in order to assure that the essential terms of the contract
are available to the general public in tariff format.
Approval. "(c) A contract filed under this section shall be approved by the
Commission, as provided in subsection (e) of this section, unless the
Commission determines in a proceeding under subsection (d) of this
section that such contract is in violation of this section.
Review. "(d)(1) No later than 30 days after the date of filing of a contract
under this section, the Commission may, on its own initiative or on
complaint, begin a proceeding to review such contract on the grounds
described in this subsection.
eomplaint filing. "(2)(A) In the case of a contract other than a contract for the
transportation of agricultural commodities (including forest products
and paper), a complaint may be filed—
'^'(i) by a shipper only on the grounds that such shipper
individually will be harmed because the proposed contract
unduly impairs the ability of the contracting carrier or carriers
to meet their common carrier obligations to the complainant
49 u s e 11101. under section 11101 of this title; or
"(ii) by a port only on the grounds that such port individually
will be harmed because the proposed contract will result in
unreasonable discrimination against such port.
Agricultural "(B) In the case of a contract for the transportation of agricultural
commodities. commodities (including forest products and paper), in addition to the
grounds for a complaint described in subparagraph (A) of this
paragraph, a complaint may be filed by a shipper on the grounds that
such shipper individually will be harmed because—
"(i) the rail carrier has unreasonably discriminated by refusing
to enter into a contract with such shipper for rates and services
for the transportation of the same type of commodity under
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1909
similar conditions to the contract at issue, and that shipper was
ready, willing, and able to enter into such a contract at a time
essentially contemporaneous with the period during which the
contract at issue was offered; or
"(ii) the proposed contract constitutes a destructive competi-
tive practice under this subtitle.
In making a determination under clause (ii) of this subparagraph, the
Commission shall consider the difference between contract rates and
published single car rates.
"(C) For purposes of this paragraph, the term 'unreasonable dis- "Unreasonable
crimination* has the same meaning as such term has under section discrimination.'
10741 of this title. 49 u s e 10741.
"(3XA) Within 30 days after the date a proceeding is commenced
under paragraph (1) of this subsection, or within such shorter time
period after such date as the Commission may establish, the Commis-
sion shall determine whether the contract that is the subject of such
proceeding is in violation of this section.
"(B) If the (Dommission determines, on the basis of a complaint filed Rates and
under paragraph (2XBXi) of this subsection, that the grounds for a service.
complEiint described in such paragraph have been established with
respect to a carrier, the Commission shall, subject to the provisions of
this section, order such carrier to provide rates and service substan-
tially similar to the contract at issue with such differentials in terms
and conditions as are justified by the evidence.
"(e) Approval of a contract filed under this section shall be Effective dates.
effective—
"(1) on the date the Commission expressly approves such
contract, but in no event before the end of the 30-day period
beginning on the date such contract is filed or after the end of the
60-day period beginning on such date; or
"(2) if the Commission has not disapproved such contract by
the end of the 60-day period beginning on the date such contract
is filed, at the end of such 60-day period.
"(f) The Commission may limit the right of a rail carrier to enter Future
into future contracts under this section following a determination contracts.
that additional contracts would impair the ability of the rail carrier
to fulfill its common carrier obligations under section 11101 of this
title. 49 u s e 11101.
"(g) The C!ommission may not require a rail carrier to violate the
terms of a contract that has been approved under this section, except
to the extent necessary to comply with section 11128 of this title. 49 u s e 11128.
"(h) A party to a contract entered into under this section shall have
no duty in connection with services provided under such contract
other than those duties specified by the terms of the contract.
"(iXD A contract that is approved by the Commission under this
section, and transportation under such contract, shall not be subject
to this subtitle, and may not be subsequently challenged before the
Commission or in any court on the grounds that such contract
violates a provision of this subtitle.
"(2) The exclusive remedy for any alleged breach of a contract
entered into under this section shall be an action in an appropriate
State court or United States district court, unless the parties other-
wise agree.
"(j) The provisions of this section shall not affect the status of any
lawful contract between a rail carrier and one or more purchasers of
rail service that is in effect on the effective date of the Staggers Rail
Act of 1980. Any such contract shall hereafter have the same force Ante, p. 1895.
and effect as if it had been entered into in accordance with the
94 STAT. 1910 PUBLIC LAW 96-448—OCT. 14, 1980
provisions of this section. Nothing in this section shall affect the
rights of the parties to challenge the existence of such a contract.
Agricultural "(kXl) Any rail carrier may, in accordance with the terms of this
commodities,
transportation. section, enter into contracts for the transportation of agricultural
commodities (including forest products and paper) involving the
utilization of carrier owned or leased equipment not in excess of 40
percent of the capacity of such carrier's owned or leased equipment
by major car type (plain boxcars, covered hopper cars, gondolas and
open top hoppers, coal cars, bulkhead flatcars, pulpwood rackcars,
and flatbed equipment, including TOFC/COFC), except that in the
case of a proposed contract between a class I carrier and a shipper
originating an average of 1,000 cars or more per year during the prior
3-year period by major car type on a particular carrier, not more than
40 percent of carrier owned or leased equipment utilized on the
average during the prior 3-year period may be used for such contract
without prior authorization by the Commission.
"(2) The Commission may, on request of a rail carrier or other party
or on its own initiative, grant such relief from the limitations of
paragraph (1) of this subsection as the Commission considers appro-
priate, if it appears that additional equipment may be made available
without impairing the rail carriers ability to meet its common
49 u s e 11101. carrier obligations under section 11101 of this title.
"(1) Service under a contract approved under this section shall be
deemed to be a separate and distinct class of service, and the
equipment used in the fulfillment of such a contract shall not be
49 u s e 11123. subject to car service decisions under section 11123 of this title,
Railroad "(m) The Commission shall establish a railroad contract rate
contract rate advisonr service. The advisory service shall—
advisory service. (1) compile and disseminate to interested parties nonconfiden-
tial summaries of the provisions of individual contract informa-
tion relating to the provisions of contracts entered into under
this section with regard to various goods, items, and commodities
covered by such contracts;
"(2) provide the Commission and interested parties with advice
regarding contracts; and
(3) assess the impact on competition among shippers of
variations between contract rates for various shipments and the
published single car rates, and submit a report on such impact to
the Congress not later than 90 days after the effective date of the
Ante, p. 1895. Staggers Rail Act of 1980.".
(b) The section analysis for chapter 107 of title 49, United States
Code, is amended by inserting immediately after the item relating to
section 10712, as added by this Act, the following new item:
"10713. Contracts.".
DEMAND SENSITIVE RATES
Repeal. SEC. 209. Section 10727 of title 49, United States Code, and the item
relating to such section in the section analysis for chapter 107 of such
title, are repealed.
PHASEOUT OP CAPITAL INCENTIVE RATES
Repeal. SEC. 210. (a) Section 10729 of title 49, United States Code, and the
item relating to such section in the section analysis of chapter 107 of
such title, are repealed.
49 u s e 10729 (b) Notwithstanding any other provision of law, any rate estab-
note. lished by a rail carrier under section 10729 of title 49, United States
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1911
Code, prior to the effective date of this Act shall remain in effect in
accordance with its terms, but for no longer than 5 years after the
date it became effective, unless the parties otherwise agree. However, Rate revision.
the Interstate Commerce Commission may, during the period such a
rate is in effect, order such rate revised to a level equal to the
incremental cost of providing the transportation if the Commission
finds that the level then in effect reduces the going concern value of
the rail carrier.
PERMISSIVE UMITED LIABILITY RATES
SEC. 211. (a) Section 10730(a) of title 49, United States Code, is
amended by inserting "and excluding any rail carrier" immediately
after "motor common carrier of property'.
(b) Section 10730 of title 49, United States Code, is amended by
adding at the end thereof the following new subsection:
"(c) A rail carrier providing transportation or service subject to the
jurisdiction of the Commission under subchapter I of chapter 105 of
this title may establish rates for transportation of property under 49 u s e 10501.
which the liability of the carrier for such property is limited to a
value established by written declaration of the shipper or by a
written agreement between the shipper and the carrier, and may
provide in such written declaration or agreement for specified
amounts to be deducted from any claim against the carrier for loss or
damage to the property or for delay in the transportation of such
property.".
(c) Section 11707(d) of title 49, United States Code, is amended—
(1) by inserting "(1)" immediately after "(d)";
(2) by inserting "(other than a rail carrier)" immediately after
"delivering carrier"; and
(3) by adding at the end thereof the following new paragraph:
"(2)(A) A civil action under this section may only be brought—
"(i) against the originating rail carrier, in the judicial district
in which the point of origin is located;
"(ii) against the delivering rail carrier, in the judicial district
in which the principal place of business of the person bringing
the action is located if the delivering carrier operates a railroad
or a route through such judicial district, or in the judicial district
in which the point of destination is located; and
"(iii) against the carrier alleged to have caused the loss or
damage, in the judicial district in which such loss or damage is
alleged to have occurred.
"(B) A civil action under this section may be brought in a United
States district court or in a State court.
"(C) In this section, 'judicial district' means (i) in the case of a "Judicial
United States district court, a judicial district of the United States, district."
and (ii) in the case of a State court, the applicable geographic area
over which such court exercises jurisdiction. .
(d) Within one year after the effective date of this Act, the Attorney Investigation;
General and the Interstate Commerce Commission shall independ- report to
Congress.
ently investigate whether rail carriers should continue to be subject 49 u s e 11707
to section 11707 of title 49, United States Code, and submit a report to note.
the Congress setting forth recommendations to Congress for appro-
priate legislative action. Each such investigation shall address the
foUowing issues:
(1) Whether, in the case of traffic with respect to which rail
carriers do not have market dominance, such carriers should be
94 STAT. 1912 PUBLIC LAW 96-448—OCT. 14, 1980
subject to any higher level of liability for loss and damage than
they are willing to agree to with the shippers of such traffic.
(2) Whether, in the case of traffic with respect to which rail
carriers have market dominance, such carriers should be subject
to any greater liability than would be imposed under a statutory
comparative negligence standard.
(3) Whether liability for damage to rail traffic should be
determined under a no-fault liability system and what shippers
should bear the cost of such a system.
(4) Whether venue in cases arising from rail carrier liability for
damages to traffic should be further limited.
(5) Whether rail carrier property damage cases should be
subject to laws other than Federal law.
(6) Whether the right to claims should be limited to either the
shipper or receiver of property.
(7) Whether maximum time limits should be imposed on the
filing of claims with rail carriers and the courts.
(8) Whether the prevailing party in a claims proceeding should
be awarded attorneys fees in order to limit needless litigation.
(9) Whether excessive attorneys fees are awarded in cases
under section 11707 of title 49, United States Code.
(10) Whether claimants should be able to recover damages in
excess of the market value of the commodity transported unless
liability for special or consequential damages is agreed to by the
carrier in unity.
RATE DISCRIMINATION
SEC. 212. Section 10741 of title 49, United States Code, is amended
by striking out subsection (e) and inserting in lieu thereof the
following new subsections:
"(e) Differences between rates, classifications, rules, and practices
of rail carriers providing transportation subject to the jurisdiction of
49 use 10501. the Commission under subchapter I of chapter 105 of this title do not
constitute a violation of this section if such differences result from
different services provided by rail carriers.
"(f) This section shall not apply to—
Ante, p. 1908. "(1) contracts approved under section 10713 of this title, other
than as provided in subsection (dX2)(AXii) and (d)(2)(B) of such
section;
"(2) surcharges or cancellations under section 10705a of this
title;
"(3) separate rates for distinct rail services under section 10728
49 use 10728. of this title;
"(4) rail rates applicable to different routes; or
49 use 10751. "(5) expenses authorized under section 10751 of this title,
except that with respect to rates described in paragraphs (2), (3), and
(4), nothing in this subsection shall affect the authority of the
Commission under this section with respect to rate relationships
between ports or within the same port.".
EXEMPTION
SEC. 213. Section 10505 of title 49, United States Code, is amended
to read as follows:
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1913
"§ 10505. Authority to exempt rail carrier transportation
"(a) In a matter related to a rail carrier providing transportation
subject to the jurisdiction of the Interstate Commerce Commission
under this subchapter, the Commission shall exempt a person, class
of persons, or a transaction or service when the Commission finds
that the application of a provision of this subtitle—
"(1) is not necessary to carry out the transportation policy of
section 10101a of this title; and Ante, p. 1897.
"(2) either (A) the transaction or service is of limited scope, or
(B) the application of a provision of this subtitle is not needed to
protect shippers from the abuse of market power.
"(b) The Commission may, where appropriate, begin a proceeding
under this section on its own initiative or on application by the
Secretary of Transportation or an interested party.
"(c) The Commission may specify the period of time during which
an exemption granted under this section is effective.
"(d) The Commission may revoke an exemption, to the extent it Exemption
specifies, when it finds that application of a provision of this subtitle revocation.
to the person, class, or transportation is necessary to carry out the
transportation policy of section 10101a of this title.
"(e) No exemption order issued pursuant to this section shall Liability and
operate to relieve any rail carrier from an obligation to provide claims.
contractual terms for liability and claims which are consistent with
the provisions of section 11707 of this title. Nothing in this subsection 49 u s e 11707.
or section 11707 of this title shall prevent rail carriers from offering
alternative terms nor give the Commission the authority to require
any specific level of rates or services based upon the provisions of
section 11707 of this title.
"(f) The Commission may exercise its authority under this section
to exempt transportation that is provided by a rail carrier as a part of
a continuous intermodal movement.
"(g) The Commission may not exercise its authority under this Intermodal
section (1) to authorize intermoded ownership that is otherwise ownership,
prohibition.
prohibited by this title, or (2) to relieve a carrier of its obligation to
protect the interests of employees as required by this subtitle."
INTRASTATE RATES
SEC. 214. (a) Section 11501(a) of title 49, United States Code, is
amended—
(1) by striking out paragraph (2).
(2) by striking out "(aXl) and inserting in lieu thereof "(a)";
(3) by striking out "subchapter I or IV and inserting in lieu
thereof "subchapter IV"; and
(4) by redesignating subparagraphs (A) and (B) as paragraphs
(1) and (2), respectively.
(b) Section 11501 of title 49, United States Code, is amended by
redesignating subsections (b) and (c) as subsections (d) and (e),
respectively, and by inserting immediately after subsection (a) the
following new subsections:
"(bXD A State authority may only exercise jurisdiction over intra-
state transportation provided by a rail carrier providing transporta-
tion subject to the jurisdiction of the Commission under subchapter I
of chapter 105 of this title if such State authority exercises such 49 use 10501.
jurisdiction exclusively in accordance with the provisions of this
subtitle.
"(2) Within 120 days after the effective date of the Staggers Rail Act
of 1980, each State authority exercising jurisdiction over intrastate Ante, p. 1895.
94 STAT. 1914 PUBLIC LAW 96-448—OCT. 14, 1980
rates, classifications, rules, and practices for intrastate transporta-
tion described in paragraph (1) of this subsection shall submit to the
Commission the standards and procedures (including timing require-
ments) used by such State authority in exercising such jurisdiction.
"(3XA) Within 90 days after receipt of the intrastate regulatory
rate standards and procedures of a State authority under paragraph
(2) of this subsection, the Commission shall certify such State authori-
ty for purposes of this subsection if the Commission determines that
such standards and procedures are in accordance with the standards
and procedures applicable to regulation of rail carriers by the
Certification Commission under this title. If the Commission determines that such
denial. standards and procedures are not in such accordance, it shall deny
certification to such State authority, and such State authority may
resubmit new standards and procedures to the Commission for review
in accordance with this subsection.
"(B) The standards and procedures existing in each State on the
Ante, p. 1895. effective date of the Staggers Rail Act of 1980 for the exercise of
jurisdiction over intrastate rail rates, classifications, rules, and
practices shall be deemed to be certified by the Commission from that
date until the date an initial determination is made by the Commis-
sion under subparagraph (A) of this paragraph.
"(4)(A) Any State authority which is certified by the Commission
under this subsection may use its standards and procedures in
exercising jurisdiction over intrastate rail rates, classifications, rules,
and practices during the 5-year period commencing on the date of
such certification. Any State authority which is denied certification
or which does not seek certification may not exercise any jurisdiction
over intrastate rates, classifications, rules, and practices until it
receives certification under this subsection.
"(B) Any intrastate transportation provided by a rail carrier in a
State which may not exercise jurisdiction over an intrastate rate,
classification, rule, or practice of that carrier due to a denial of
certification under this subsection shall be deemed to be transporta-
tion subject to the jurisdiction of the Commission under subchapter I
49 u s e 10501. of chapter 105 of this title.
5-year "(5)(A) Certification of a State authority under this subsection is
certification
period. valid for the 5-year period beginning on the date of such certification.
Prior to the expiration of such 5-year period, the State authority shall
resubmit its intrastate regulatory standards procedures to the
Commission for subsequent certification in accordance with this
subsection.
"(B) During any 5-year certification period, a State may not change
its certified standards and procedures without notifying and receiv-
ing express approval from the Commission.
'(6) Notwithstanding any other provision of this subtitle, a State
authority may not exercise any jurisdiction over general rate in-
49 u s e 10706. creases under section 10706 of this title, inflation-based rate increases
Ante, p. 1906. under section 10712 of this title, or fuel adjustment surcharges
approved by the Commission.
*(c) Any rail carrier providing transportation subject to the juris-
diction of the Commission under subchapter I of chapter 105 of this
title may petition the Commission to review the decision of any State
authority, in any administrative proceeding in which the lawfulness
of an intrastate rate, classification, rule, or practice is determined, on
the grounds that the standards and procedures applied by the State
were not in accordance with the provisions of this subtitle. The
Commission shall take final action on any such petition within 30
days after the date it is received. If the Commission determines that
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1915
the standards and procedures were not in accordance with the
provisions of this subtitle, its order shall determine and authorize the
carrier to establish the appropriate rate, classification, rule, or
practice.".
(c)(1) Section 11501(d)(2) of title 49, United States Code, as redesig-
nated by subsection (b) of this section, is amended by inserting "and
chapter 107 of this title" immediately before the period at the end of
the first sentence.
(2) Section 10103(a) of title 49, United States Code, is amended by
striking out "The" and inserting in lieu thereof "Except EIS otherwise
provided in this subtitle, the".
(3) Section 10501(a)(2) of title 49, United States Code, is amended by
inserting "such jurisdiction is not limited by subsection (b) of this
section or the extent" immediately after "to the extent".
(4) Section 10501(c) of title 49, United States Code, is amended by
inserting "(1) the transportation is deemed to be subject to the
jurisdiction of the Commission pursuant to section 11501(b)(4)(B) of
this title, or (2)" immediately after "unless". Ante, p. 1913.
(5) Section 10501 of title 49, United States Code, is amended by
adding at the end thereof the following new subsection:
"(d) The jurisdiction of the Commission and of State authorities (to
the extent such authorities are authorized to administer the stand-
ards and procedures of this title pursuant to this section and section
11501(b) of this title) over transportation by rail carriers, and the
remedies provided in this title with respect to the rates, classifica-
tions, rules, and practices of such carriers, is exclusive.".
BUSINESS ENTERTAINMENT EXPENSES
SEC. 215. Section 10751 of title 49, United States Code, is amended
by striking out "(other than transportation by rail)" in subsections (a)
and (b).
(b) The provisions of section 10751 of title 49, United States Code, as 49 u s e 10751
amended by subsection (a) of this section, shall apply to any expense note.
of the type described in subsection (a) of such section 10751 that was
incurred prior to the effective date of this Act (other than an expense
with respect to which a penalty was paid pursuant to section 10761 of
such title 49) or that is incurred on or after such effective date. 49 use 10761
EFFICIENT MARKETING
SEC. 216. (a) Section 10762(c)(3) of title 49, United States Code, is
amended by striking out the second sentence and inserting in lieu
thereof the following: "In the case of a carrier other than a rail
carrier, a proposed rate change or a new or reduced rate may not
become effective for 30 days after the notice is published, filed, and
held open as required under subsections (a) and (b) of this section. In
the case of a rail carrier, a proposed rate change resulting in an
increased rate or a new rate shall not become effective for 20 days
after the notice is published and a proposed rate change resulting in a
reduced rate shall not become effective for 10 days after the notice is
published, except that a contract authorized under section 10713 of
this title shall become effective in accordance with the provisions of ^"^^' P- 1908.
such section.".
(b) Section 10762(d)(1) of title 49, United States Code, is amended by
striking out "30-day" and inserting in lieu thereof "notice".
94 STAT. 1916 PUBLIC LAW 96-448—OCT. 14, 1980
COMPENSATORY JOINT RATE RELIEF
SEC. 217. (aXD Chapter 107 of title 49, United States Code, is
amended by inserting after section 10705 the following new section:
49 use 10705a. "§ 10705a. Joint rate surcharges and cancellations
"(aXlXA) Except as provided in subparagraph (B) of this paragraph,
a rail carrier providing transportation subject to the jurisdiction of
the Interstate Commerce Commission under subchapter I of chapter
49 use 10501. 105 of this title may publish and apply a surcharge increasing or
decreasing the through charge applicable to any movement between
points designated by the surcharging carrier subject to a joint rate.
Such a surcharge may be applied without the concurrence of the
other carriers that are party in such joint rate.
"(B) A carrier earning adequate revenues, as determined under
Ante, p. 1906. section 10704(aX2) of this title, may not apply such a surcharge to any
movement on a line operated by such carrier which carried more
than 3,000,000 gross ton miles of traffic per mile in the preceding
calendar year.
"(C) Any surcharge applied pursuant to this subsection must be
applied in equal dollar amounts to the movement subject to the
surcharge over all routes between the points designated by the
surcharging carrier which such carrier participates in under the joint
rate involved, and when the surcharge increases the through charges,
under any of such carrier's single line rates between the same points.
"(2XA) Whenever a rail carrier applies a surcharge increasing a
through charge pursuant to paragraph (1) of this subsection, any
other rail carrier that participates in any movement subject to such
surcharge may cancel the application of such surcharge to any route
participated in by such other carrier, if such carrier makes the
demonstration described in subparagraph (B) of this paragraph.
"(B) A rail carrier may cancel the application of a surcharge under
this paragraph if such carrier demonstrates to the Commission that
the surcharging carrier's share of the revenues, at the time the
surcharge was filed with the Commission, from its participation in
the movement over the route involved would have been equal to or
greater than 110 percent of its variable costs of providing service over
such route, under either—
"(i) the applicable joint rate in effect at the time the surcharge
was filed with the Commission, without the surcharge;
"(ii) a new rate division increasing the share of the surcharging
carrier;
"(iii) a new higher lawful rate published by the canceling
carrier; or
"(iv) a new, lesser surcharge which shall be prescribed by the
Commission upon and in conformity with the request of the
carrier proposing to cancel the surcharge. Any such prescribed
surcharge shall, in conjunction with the surcharging carrier's
division of the joint rate in effect on the date the original
surcharge was filed with the Commission, provide the carrier
proposing the original surcharge revenues equal to or greater
than 110 percent of such surcharging carrier s variable cost of
providing service over such route.
"(CXi) The canceling tariff shall only become effective if the rail
carrier proposing to cancel the application of the surcharge makes
the demonstration described in subparagraph (B) of this paragraph,
"(ii) If the demonstration described in clause (i) of this subpara-
graph is made on the basis of the applicable joint rate in effect at the
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1917
time the surcharge was filed with the Commission, without the
surcharge, the tariff shall become effective on one day's notice after
such determination is made.
"(iii) If the demonstration described in clause (i) of this subpara-
graph is made on the basis of a new rate, division, or surcharge
prescribed pursuant to subparagraph (B)(iv) of this paragraph, the
tariff shall become effective on the date such new rate, division, or
surcharge becomes effective.
"(D) The remedy available to a rail carrier canceling the applica-
tion of a surcharge under this paragraph shall be in addition to any
other remedy available to such carrier under this chapter.
"(3)(A) The Commission may cancel the application of a surcharge
to a route to which such surcharge applies if a shipper moving traffic
over such route demonstrates to the Commission that—
"(i) there is no competitive alternative to such route for the
movement of the traffic involved that is not subject to such
surcharge; and
"(ii) the surcharging carrier's share of the revenues from its
participation in the movement over the route to which such
surcharge applies, under the applicable joint rate in effect at the
time the surcharge was filed with the Commission, with the
surcharge, would be greater than 110 percent of its variable cost
of providing service over such route.
"(B) If the Commission cemcels the application of a surcharge to a Surcharge level,
particular route pursuant to subparagraph (A) of this paragraph, the determination.
Commission shall determine the level of surcharge which, in conjunc-
tion with the surcharging carrier's division of the joint rate in effect
at the time the surcharge was filed with the Commission, would equal
110 percent of the surcharging carrier's variable cost of providing
service over such route, and shall authorize such carrier immediately
to apply such a surcharge without any further proceedings under this
subsection.
"(4) A rail carrier may not apply a surcharge under this subsection
unless, for the one-year period preceding the surcharge, such carrier
has concurred in all rate increases of general applicability applicable
to the joint rate to which such surcharge applies and agreed to by all
other carriers that are party to such joint rate.
"(5) A rail carrier may not apply a surcharge under this subsection
increasing a through charge applicable to a particular movement
more than once each calendar year.
"(6) Notwithstanding any other provision of this subsection, a rail Total charges,
carrier may, by tariff, reduce the total charges applicable to a reduction.
movement over any specific joint line or single line route or routes in
which such carrier participates, if such reduction does not lower the
total charges applicable to such movement to a level that is less than
the lowest total charges applicable to the same movement over a
competing route. Any such reduction may be made without the
concurrence of any other rail carrier, and shall be borne solely by the
carrier reducing the charge. Nothing in this paragraph shall be
construed to limit the right of a carrier to reduce rates over routes not
in direct competition between the same points with routes to which it
has applied a surcharge.
"(b)(1) Notwithstanding subsection (a) of this section—
"(A) a rail carrier not earning adequate revenues, as deter-
mined under section 10704(a)(2) of this title, may publish and Ante, p. 1906.
apply a surcharge applicable to traffic originating or terminating
upon any of its lines that carried less than 3,000,000 gross ton
94 STAT. 1918 PUBLIC LAW 96-448—OCT. 14, 1980
miles of traffic per mile in the most recent calendar year for
which traffic data is available; and
"(B) a rail carrier earning adequate revenues, as so deter-
mined, may publish and apply a surcharge applicable to traffic
originating or terminating upon any of its lines that carried less
than 1,000,000 gross ton miles of trsiffic per mile in such most
recent calendar year.
Such a surcharge may be applied without the concurrence of any rail
carrier. Any such surcharge may be allocated, subject to the provi-
sions of paragraph (4) of this subsection, in different amounts among
different movements between different origins and destinations, and
shall accrue solely to the surcharging carrier.
"(2) A rail carrier may apply a surcharge under this subsection if,
prior to the application of such surcharge, that portion of the charges
applicable to traffic to and from the line to which the surcharge
applies and accruing to the surcharging carrier does not provide such
carrier revenues adequate to cover—
"(A) 110 percent of such carrier's variable cost of transporting
the traffic involved to or from such line; plus
"(B) 100 percent of such carrier's reasonably expected costs of
continuing to operate such line, which shall include all costs
necessary to sustain service on the line.
The Commission shall, within 120 days after the effective date of the
Ante, p. 1895. Staggers Rail Act of 1980, complete a proceeding to define the term
'reasonably expected costs' as used in subparagraph (B) of this
paragraph. In the interim, the term shall be construed in accordance
with Rail Services Planning Office subsidy standards.
Shipper petition. "(3XA) Upon petition of a shipper located upon a line to which a
surcharge under this subsection is applied, the Commission may
cancel the application of a surcharge under this subsection if such
shipper demonstrates to the Commission that, after application of the
surcharge, the surcharging carrier's revenues from all traffic origi-
nating or terminating upon the line to which the surcharge applies
exceed 110 percent of such carrier's variable cost of transporting all
traffic to or from such line plus such carrier's reasonably expected
costs of continuing to operate such line.
"(B)(i) A rail carrier's revenue from all traffic originating or
terminating upon a line shedl be presumed to exceed 110 percent of its
variable cost of transporting all traffic to or from such line plus its
reasonably expected costs of continuing to operate such line if the
complaining shipper demonstrates that the carrier is earning rev-
enues from all traffic originating or terminating upon such line that
result in a revenue-variable cost percentage that is equal to or greater
than the revenue-variable cost percentage applicable in that year
Ante, p. 1900. under section 10709(d) of this title.
"(ii) A surcharging carrier may rebut the presumption set forth in
clause (i) of this subparagraph by demonstrating to the Commission
that its reasonably expected costs for operating the line to which the
surcharge applies exceed the percentage of variable cost set forth in
such clause (i).
"(C) Upon a finding by the Commission that application of the
surcharge will produce revenues in excess of 110 percent of the
surcharging carrier's variable cost of transporting traffic to or from
the line plus its reasonably expected costs for operating the line, the
Commission shall determine the level of surcharge which would
produce revenues equal to such figure and shall authorize such
carrier immediately to apply such surcharges as will generate such
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1919
revenues without any further proceedings, subject only to the right of
a shipper to proceed under par£igraph (4) of this subsection.
"(4)(A) A rail carrier may not apply a surcharge under this
subsection that results in any shipper being required to bear more
than a reasonable proportion of the reasonably expected costs of
continuing to operate the line to which such surcharge applies.
"(B) Upon complaint of a shipper, the Commission shall determine Shipper
complaint.
whether the shipper is being required to bear more than a reasonable
proportion of the costs described in subparagraph (A) of this
paragraph.
"(C) If the Commission finds that a complaining shipper is being
required to bear more than a reasonable proportion of the costs
described in subparagraph (A) of this paragraph, the Commission
may reallocate the surcharge among the traffic originating or termi-
nating on the line to which the surcharge applies, but may not order
relief which would result in the surcharging carrier earning revenues
less than those which the carrier would have earned had the
surcharge been applied as filed.
"(5) A shipper may, in a single complaint, seek relief under Relief.
paragraphs (3) and (4) of this subsection. In any such complaint, the
Commission shall first determine the right to relief under paragraph
(3) and shall grant such relief as is appropriate under such
paragraph.
"(6) In any proceeding brought before the Commission challenging
the application or amount of a surcharge under this subsection,
whether the surcharge is claimed to violate this subsection or some
other provision of this chapter, the Commission shall not suspend the
application of any such surcharge unless the person filing the verified
statement required by section 10707(c) of this title, in addition to the Ante, p. 1907.
matters required by such section, also makes the demonstration
required by paragraph (3)(A) of this subsection. If the demonstration
required by such paragraph (3)(A) is made, the Commission may
suspend the application of only so much of the surcharge as will
produce revenues in excess of the amount so demonstrated.
"(c)(1) Notwithstanding any other provision of this title, any prior
agreement in effect on the effective date of the Staggers Rail Act of
1980, or any requirement of the Commission, a rail carrier may Ante, p. 1895.
cancel the application of a joint rate to a through route in which it
participates, without the concurrence of any other rail carrier that is
a party to such joint rate, unless another rail carrier that participates
in such through route or a shipper that has no competitive alterna-
tive to such route makes the demonstration described in parsigraph
(2) of this subsection.
"(2) The application of a joint rate to a through route may not be
canceled under this subsection if a rail carrier that participates in
such through route or a shipper that h£is no competitive alternative
to such route from an origin or destination served by such route
demonstrates to the Commission that the canceling carrier's share of
the revenues, under the joint rate in effect at the time the application
of the joint rate is canceled, is equal to or greater than—
"(A) 110 percent of the canceling carrier's variable cost of
providing service over such route; or
"(B) such lesser percent of the canceling carrier's variable cost
as such carrier earns over a competing through route to which
application of the joint rate has not been canceled, or over a
competing single line route.
79-194 O—81—pt. 2 41: QL3
94 STAT. 1920 PUBLIC LAW 96-448—OCT. 14, 1980
"(3) When a complaining party is unable to make the demonstra-
tion required by paragraph (2) of this subsection, the Commission
may suspend the tariff canceling the joint rate only if^
"(A) a complaining carrier publishes a new rate division or a
new higher lawful rate which increases the canceling carrier's
share of the revenues over such route to the amount calculated
under paragraph (2)(A) or (2)(B) of this subsection, whichever is
less; or
"(B) a complaining carrier or shipper petitions the Commission
and the Commission imposes a surcharge, in conformity with
such petition, upon the joint rate which will accrue solely to the
canceling carrier and which, in conjunction with the canceling
carrier's division of the joint rate in effect on the date the tariff
canceling the joint rate W£is filed, will provide the canceling
carrier revenues equal to or greater than 110 percent of its
variable cost of providing service over such route.
Unless a new rate, division, or surcharge described in this paragraph
becomes effective within 120 days after the proposed effective date of
the rate cancellation, the canceling tariff shall, nevertheless, become
effective.
"(4) If the demonstration described in paragraph (2) is made or a
new rate, division, or surcharge described in paragraph (3) becomes
effective, the tariff canceling the joint rate shall be considered by the
49 u s e 10705. Commission in accordance with section 10705 of this title. The
existing joint rate or the new rate, division, or surcharge, shall
remain in effect during the pendency of the Commission's
consideration.
"(5) Whenever the application of a joint rate to a through route is
canceled under this subsection and a rate other than a joint rate is or
has been published by the canceling carrier to apply to such route,
such rate shall thereafter apply in lieu of all other rates (except joint
rates subsequently agreed to by such carrier) and any through rate of
which such rate is a factor shall divide as the separate factors of such
rate are made.
"(6) Nothing in this subsection shall be construed to limit the
authority of the Commission under section 10705(a) of this title to
prescribe joint rates which provide a rail carrier participating in such
joint rate revenues equal to or greater than 110 percent of its variable
cost of providing service over each route to which such rate applies.
Increased or "(d)(1) Except as provided in paragraph (2) of this subsection, any
decreased increase or decrease in revenue resulting from the application of a
revenues.
surcharge under subsection (a) of this section, or from the cancella-
tion of the application of a joint rate under subsection (c) of this
section, shall accrue solely to or be borne solely by the carrier
applying the surcharge or canceling the application of the joint rate,
as the case may be.
"(2) Whenever a class III rail carrier which participates in a
through route to which a surcharge has been applied under subsec-
tion (a) of this section by a carrier operating in the same rate territory
as such class III carrier demonstrates to the Commission that the
application of such surcharge to such route provides, in the absence of
any increase in the joint rate in effect on the date the surcharge was
filed with the Commission, revenues from traffic moving over such
route to such surcharging carrier in excess of 110 percent of its
variable costs over such route, such surcharging carrier shall, from
the date of such demonstration, share those revenues from such
route, from the surcharge and the applicable joint rate in effect on
the date the surcharge was filed with the Commission, in excess of
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1921
110 percent of its variable costs with all class III rail carriers in the
same rate territory participating in such route, on the basis of their
existing divisions of the joint rate to which the surcharge applies.
"(eXD Except as provided in paragraph (2) of this subsection,
whenever a rail carrier proposes to apply a surcharge under subsec-
tion (a) of this section or to cancel the application of a joint rate under
subsection (c) of this section and another rail carrier subsequently
agrees to a new rate division or a new lawful rate that increases the
surcharging or canceling carrier's share of the total through charges
for a movement over a particular through route subject to a joint
rate, such other rail carrier shall also agree to any other new rate
division and new lawful rate—
"(A) that is proposed within 120 days after the date of the first
agreement; and
"(B) that increases the surcheurging or canceling carrier's share
of the total through charges for movements over a competing
through route subject to such joint rate.
"(2) A rail carrier shgdl not be required to agree under this
subsection to £uiy proposed new division or new rate which would—
"(A) reduce such carrier's share of the total through charges
for a movement over any through route to less than (i) 110
percent of its variable costs of providing service over such route,
or (ii) such lesser percent of its variable costs as such carrier
earns from such movement over a competing through route with
respect to which such carrier has agreed to a new division or rate;
(B) increase the surcharging or canceling carrier's share of
the total through charges for a movement over any through
route to an amount in excess of 110 percent of its variable costs of
providing service over such route;
"(C) reduce such carrier's share of the total through charges
for a movement over any through route by a dollar amount in
excess of the greatest dollar reduction which such carrier has
agreed to make, for purposes of increasing the surcharging or
canceling carrier's share, to its share of the total through charges
for a movement over any competing through route; or
"(D) reduce such carrier's share of the total through charges
for a movement over any through route in an amount in excess of
such carrier's pro rata share (based on established divisions for
movements over such route) of the increase of the surcharging or
canceling carrier's share of the total through charges for move-
ments over such route.
"(f) A rail carrier appl3dng a surcharge or canceling the application Tariff filing.
of a joint rate under this section shall file a tariff with the Commis-
sion in accordance with section 10762 of this title. Such a tariff may 49 use 10762
not become effective until the expiration of the 45-day period (or such
longer period as the filing carrier specifies) beginning on the date
such tariff is filed.
"(gXD Any rail rate to which a surcharge is applied under this
section shall be subject to section 10701a and 10709 of this title, and Ante, p. 1898.
any such surcharge shall constitute a rate increase for purposes of 49 u s e 10709.
such sections.
"(2) For purposes of rate regulation under section 10701a of this
title—
"(A) only the rgdl carrier proposing a surcharge under this
section shall be required to defend such surcharge; and
"(B) the reasonableness of the surcharge and the revenues
received by the rail carrier proposing the surcharge under the
joint rate to which the surcharge applies shall be determined
94 STAT. 1922 PUBLIC LAW 96-448—OCT. 14, 1980
without regard to amount received and services performed by
other rail carriers that are party to such joint rate.
"(3) Except as provided in subsection (i), (j), or (k) of this section, if
the appHcation of a surcharge or the cancellation of the application of
a joint rate under this section is found to constitute a violation of any
provision of this title, such violation shall not be ordered remedied in
any manner which—
"(A) requires the carrier applying a surcharge under subsec-
tion (a) of this section or canceling the application of a joint rate
under subsection (c) of this section to provide service over any
rate under a rate that provides revenues to such carrier that are
less than 110 percent of its variable costs of providing such
service; or
"(B) which requires the carrier applying a surcharge under
subsection 0^) of this section to provide service over the route to
which such surcharge applies in a manner that provides rev-
enues to such carrier that are less than 110 percent of such
carrier's variable cost of transporting the traffic involved to or
from the line to which the surcharge applies, plus such carrier's
reasonably expected costs of providing service over such line.
Variable costs "(h) Within 5 days after the request of a rail carrier participating in
and revenues, a joint rate subject to a surcharge or cancellation under this section, a
determination.
shipper moving traffic over a route to which such surcharge or
cancellation applies, or an affected port, the Commission shall make
available to such carrier, shipper, or port the Commission's determi-
nation of the variable costs and revenues, over the route or routes to
which the surcharge or cancellation applies, of the carrier applying
the surcharge or canceling the application of the joint rate.
Investigation. "(i)(l) Whenever a class III rail carrier, in a protest filed with the
Commission, makes a prima facie showing that the application of a
surcharge under subsection (a) of this section or the cancellation of
the application of a joint rate under subsection (c) of this section will
have an adverse effect on competition, the Commission shall investi-
Rescinding gate such protest. If, on the basis of such investigation, the Commis-
order. sion finds that the protested surcharge or cancellation is or is
intended to be anticompetitive, the Commission shall, within 30 days
after the date such protest is filed, enter an order rescinding such
surcharge or cancellation, and may, on presentation of an adequate
record, prescribe new joint rates or divisions of joint rates.
"(2) No order prescribed under this subsection shall require a
carrier to provide service over any route under a rate which provides
revenues less than 110 percent of the variable cost of providing such
service unless the Commission determines that the public interest
requires a lesser revenue to variable cost ratio to avoid anticompeti-
tive action and to preserve service on the route involved.
"(j)(l) Any class III rail carrier which originates or terminates
traffic subject to the application of a surcharge under subsection (a) of
this section or the cancellation of the application of a joint rate under
subsection (c) of this section may protest such surcharge or cancella-
tion whenever—
"(A) such surcharge or cancellation affects the sole remaining
route available to that carrier for that traffic; and
"(B)(i) such carrier demonstrates that alternative transporta-
tion is available or that a shipper dependent on that carrier will
suffer significant market loss because of such surcharge or
cancellation; or
"(ii) such surcharge or cancellation, alone or when considered
in conjunction with other surcharges or cancellations affecting
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1923
the carrier, is likely to unduly impair a carrier's ability to earn
an adequate rate of return.
"(2XA) The Commission may, after an investigation on the basis of
a protest under this subsection, prescribe a lesser surcharge or a
different division of the joint rate. The Commission shall grant the
surcharging or canceling carrier revenues not less than 110 percent
of its variable cost of the movement involved, unless it determines
that the public interest requires a lesser revenue to variable cost ratio
to preserve service on the route involved. Any action by the Commis-
sion based on a protest under this subsection shall be taken within 30
davs after the date such protest is filed.
(B) If the Commission prescribes a different division of a joint rate
under this paragraph, the Commission shall, upon petition of the
surcharging or canceling carrier or the protesting class III rail
carrier, reopen the proceeding in which such division WEIS prescribed
to reconsider whether such prescribed division is reasonable. If, on
the basis of such reconsideration, the Commission determines that
such division is not reasonable, it shall prescribe a new, reasonable
division of the joint rate to which the surcharge or cancellation
applied.
(kXl) Upon the complaint of a class III rail carrier which origi- Rail carrier
nates or terminates traffic subject to the application of a surcharge investigation.
f"^Swir
under subsection (a) of this section or the cancellation of the applica-
tion of a joint rate under subsection (c) of this section that such
surcharge or cancellation will result in differences or greater differ-
ences in rates, including any surcharges, for the traffic to which the
surcharge or cancellation applies over different routes in which the
surcharging or canceling carrier participates—
"(A) from a single origin point to destination points within a 75
mile direct radius from the destination point on such class III rail
carrier; or
"(B) to a single destination point from origin points within a 75
mile direct radius from the origin point on such class III rail
carrier,
the Commission shall investigate such complaint and shall, within 30
days after the date such complaint is filed, take such actions,
including rescinding surcharges or cancellations or prescribing new
joint rates or surcharges, as it determines are required to eliminate
such differences in rates, unless it finds that such actions are not
warranted by the public interest in ensuring effective competition
among rail carriers or in the preservation of rail service on the route
involved.
"(2) No action taken by the Commission under this subsection shall
require a carrier to provide service over any route under a rate which
provides a revenue to variable cost ratio over such route less than
that provided under the joint rate to which the surcharge or cancella-
tion was applied or less than 110 percent, whichever is greater, unless
the Commission determines that the public interest in ensuring
effective competition among rail carriers or in preserving service
over such route warrants requiring the surcharging or canceling
carrier to provide service at a lesser revenue to variable cost ratio.
"(3) Notwithstanding subsection (mXD of this section, if, in a
proceeding under this subsection or under subsection (i) or (j) of this
section, the Commission considers whether to require the revenues of
a carrier applying a surcharge under subsection (a) of this section or
canceling the application of a joint rate under subsection (c) of this
section to be less than 110 percent of its variable costs (as calculated
using the Commission's Rail Form A cost finding methodology), such
94 STAT. 1924 PUBLIC LAW 96-448—OCT. 14, 1980
surcharging or canceling carrier may prove its actual variable costs
on the basis of evidence other than unadjusted costs calculated using
such Rail Form A cost finding methodology. Such evidence shall
be prepared in accordance with generally accepted accounting
principles.
New "(1) Whenever the application of a joint rate to a through route is
compensatory canceled under subsection (c) of this section, the Commission shall,
through rate.
upon petition by a class II or III rail carrier participating in such
route, prescribe a new compensatory through rate or rates over such
route within 30 days after the date such petition is filed.
Variable costs "(m) For purposes of this section—
and revenue
share. "(1) variable costs for a class I rail carrier shall be determined
only by using such carrier's unadjusted costs, calculated using
the Commission's Rail Form A cost finding methodology (or an
alternative methodology adopted by the Commission in lieu
thereof) and indexed quarterly to account for current wage and
price levels in the region in which the carrier operates;
"(2) variable costs for a rail carrier other than class I shall be
presumed to be the average variable costs of all class I rail
carriers in the region in which such carrier operates (as deter-
mined under paragraph (1) of this subsection) unless a rail
carrier rebuts such presumption with other proof of variable
costs; and
"(3) at the option of a carrier applying a surcharge or canceling
the application of a joint rate under this section, revenue share
may be determined by reference to past revenue settlements
actually made in the most recent calendar year by connecting
lines.
"(n) Surcharges applied under subsection (a) or (c) of this section
and cancellations under subsection (c) of this section shall not be
49 u s e 10726. subject to the provisions of section 10726 (a)(lXB) of this title.
"(o) The Special Counsel of the Commission may, consistent with
Ante, p. 1897. the rail transportation policy in section 10101a of this title, provide
assistance to class III rail carriers and small businesses in preparing
actions under this section.
"(p)(l) The authority to apply a surcharge under subsection (a) of
this section, and (except as provided in paragraph (2)) the authority to
cancel such a surcharge, shall expire 3 years after the effective date
Ante, p. 1895. of the Staggers Rail Act of 1980 unless extended for one additional
year by the Commission upon petition of any rail carrier and for good
cause shown.
"(2) Any surcharge lawfully applied under subsection (a) of this
section shall remain in effect in accordance with its terms following
the expiration of the provisions of this section. Any such surcharge
applied during the 45-day period immediately preceding the date of
the expiration of the provisions of this section shall, notwithstanding
such expiration, be subject to cancellation under subsection (a)(2) or
(aX3) of this section during the 45-day period beginning on the date
such surcharge is applied.'.
(2) The section analysis of chapter 107 of title 49, United States
Code, is amended by inserting immediately after the item relating to
section 10705 the following new item:
"10705a. Joint rate surcharges and cancellations.".
49 u s e 10705a (b) For purposes of section 10705a of title 49, United States Code,
note. the Interstate Commerce Commission shall classify all rail carriers
Ante, p. 1916.
on the basis of revenues, shall from time to time review its regula-
tions setting forth revenue-based classifications for rail carriers, and
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1925
shall make appropriate changes in such regulations in order to reflect
inflation. The Commission shall not reclassify switching and termi-
nal carriers, or any other rail carriers not classified on the basis of
revenues on the effective date of this Act, for any purpose other than
for purposes of such section 10705a. Ante, p. 1916.
(c)(1) The Interstate Commerce Commission shall include in its Report to
Congress.
annual report to the Congress under section 10311 of title 49, United 49 u s e 10311
States Code, a report with respect to the application of surcharges note.
and the cancellation of the application of joint rates by the Consoli-
dated Rail Corporation and other rail carriers, during the preceding
year, under section 10705a of title 49, United States Code. Each such Ante, p. 1916.
report shall include— Contents.
(A) an analysis of the effect of application of surcharges and
the cancellation of the application of joint rates under such
section 10705a on shippers, ports, class II and class III rail
carriers, railroad employees, and other elements of the rail
system;
(B)(i) the number of surcharges applied by the Consolidated
Rail Corporation and all other rail carriers under such section
10705a and the amount of revenue received by the Corporation
and all other rail carriers from the application of such sur-
charges, (ii) the number of surcharges applied by the Corporation
and all other rail carriers that were canceled under the proce-
dures of such section 10705a, and (iii) the number of cancellations
of the application of a joint rate by the Corporation and all other
rail carriers under such section 10705a; and
(C) an analysis of the operation of the remedies made available
to class III rail carriers under subsections (i), (j), and (k) of such
section 10705a and to class II and class III rail carriers under
subsection (1) of such section 10705a.
(2) The Interstate Commerce Commission shall, within 2 years Report to
after the effective date of this Act, submit a report to the Congress Congress.
with respect to whether the provisions of section 10705a of title 49, 49 u s e 10705a
note.
United States Code, have adequately addressed the joint rate prob- Ante, p. 1916.
lems of rail carriers. The report shall include such recommendations
with respect to such joint rate problems as the Commission considers
necessary and appropriate.
EXPEDITED DIVISION OF REVENUES PROCEEDINGS
SEC. 218. (a) Section 10705(f)(1) of title 49, United States Code, is
amended to read as follows:
"(f)(1)(A) The Commission may begin a proceeding under subsection
(a) or (b) of this section on its own initiative or on complaint. The
Commission must complete all evidentiary proceedings to adjust the
division of joint rates for transportation by a rail carrier within 9
months after the complaint is filed if the proceeding is brought on
complaint or within 18 months after the commencement of a proceed-
ing on the initiative of the Commission. The Commission must take
final action by the 180th day after completion of the evidentiary
proceedings, except that—
"(i) when the proceeding involves a railroad in reorganization
or a contention that the divisions at issue do not cover the
variable costs of handling the traffic, the Commission shall give
the proceedings preference over all other proceedings and shall
take final action at the earliest practicable time, which in no
event may exceed 100 days after the completion of the eviden-
tiary proceedings; and
94 STAT. 1926 PUBLIC LAW 96-448—OCT. 14, 1980
"(ii) in all cases other than those specified in clause (i) of this
subparagraph, the Commission may decide to extend such a
proceeding to permit its fair and expeditious completion, but
whenever the Commission decides to extend a proceeding pursu-
ant to this clause, it must report its reasons to Congress.
"(B) The provisions of this paragraph imposing time limitations
upon Commission action shall not apply to any division proceeding
involving a joint rate participated in by a class III rail carrier. ,
(b) Section 10705(f)(1) of title 49, United States Code, as amended by
subsection (a) of this section, is further amended—
(1) by striking out subparagraph (B);
(2) by striking out "(A)" immediately before "The Commis-
sion";
(3) by striking out "(i)" and inserting in lieu thereof "(A)";
(4) by striking out "(ii)" and inserting in lieu thereof "(B)"; and
(5) by striking out "clause (i) of this subparagraph" and
inserting in lieu thereof "subparagraph (A) of this paragraph".
RATE BUREAUS
SEC. 219. (a) Section 10706(a)(1) of title 49, United States Code, is
amended by adding at the end thereof the following new subpara-
graph:
"(C) 'practicably participates in that movement' shall have
such meaning as the Commission shall by regulation prescribe.",
(b) Section 10706(a)(2)(A) of title 49, United States Code, is
amended—
(1) by inserting "publication," immediately after "initiation,"
in the first sentence; and
(2) by striking out "section 10101" in the second sentence and
inserting in lieu thereof "section 10101a".
(c)(1) Section 10706(a)(3)(A) of title 49, United States Code, is
amended to read as follows:
"(3)(A) An organization established or continued under an agree-
ment approved under this subsection shall make a final disposition of
a rule or rate docketed with it by the 120th day after the proposal is
docketed. Such an organization may not—
"(i) permit a rail carrier to discuss, to participate in agree-
ments related to, or to vote on single line rates proposed by
another rail carrier, except that for purposes of general rate
increases and broad tariff changes only, if the Commission finds
at any time that the implementation of this clause is not feasible,
it may delay or suspend such implementation in whole or in part;
"(ii) permit a rail carrier to discuss, to participate in agree-
ments related to, or to vote on rates related to a particular
interline movement unless that rail carrier practicably partici-
pates in that movement; or
"(iii) if there are interline movements over two or more routes
between the same end points, permit a carrier to discuss, to
participate in agreements related to, or to vote on rates except
with a carrier which forms part of a particular single route. This
clause shall take effect on January 1, 1984, or on such earlier
date as the Commission determines. If the (Commission finds at
any time that the implementation of this clause is not feasible, it
may delay or suspend such implementation in whole or in part.".
(2) Section 10706(a)(3)(B) of title 49, United States Code, is amended
to read as follows:
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1927
"(B) Until January 1, 1984, subparagraph (A)(ii) and (A)(iii) of this
paragraph do not apply to—
"(i) general rate increases to cover inflationary cost increases,
or general rate decreases, for joint rates if the agreement gives
shippers, under specified procedures, at least 15 days notice of
the proposal and an opportunity to present comments on it
before a tariff containing the increases or decreases is filed with
the Commission; or
"(ii) broad tariff changes that are of at legist substantially
general application throughout the area where the changes will
apply, except single line rates where subparagraph (A)(i) of this
paragraph prohibits the participation of carriers with single line
rates.
If the Commission finds at any time that the implementation of this
subparagraph is not feasible, it may delay or suspend such implemen-
tation in whole or in part.".
(3) Section 10706(a)(3)(C) of title 49, United States Code, is
amended—
(A) by inserting "(i)" immediately after "(C)"; and
(B) by adding at the end thereof the following new clause:
"(ii) In any proceeding in which it is alleged that a carrier was a
party to an agreement, conspiracy, or combination in violation of a
Federal law cited in subsection (a)(2)(A) of this section or of any
similar State law, proof of an agreement, conspiracy, or combination
may not be inferred from evidence that two or more carriers acted
together with respect to an interline rate or related matter and that a
party to such action took similar action with respect to a rate or
related matter on another route or traffic. In any proceeding in which
such a violation is alleged, evidence of a discussion or agreement
between or among such carrier and one or more other carriers, or of
any rate or other action resulting from such discussion or agreement,
shall not be admissible if the discussion or agreement—
"(I) was in accordance with an agreement approved under
paragraph (2) of this subsection; or
"(II) concerned an interline movement of the carrier, and the
discussion or agreement would not, considered by itself, violate
the laws referred to in the first sentence of this clause.
In any proceeding before a jury, the court shedl determine whether
the requirements of clause (I) or (II) are satisfied before allowing the
introduction of any such evidence.".
(4) Section 10706(a)(3) of title 49, United States Code, is amended by
adding at the end thereof the following new subparagraph:
"(D) An organization described in subparagraph (A) of this para- Records.
graph shall provide that transcripts or sound recordings be made of
all meetings, that records of votes be made, and that such transcripts
or recordings and voting records be submitted to the Commission and
made available to other Federal agencies in connection with their
statutory responsibilities over rate bureaus, except that such mate-
rial shall be kept confidential and shall not be subject to disclosure
under section 552 of title 5, United States Code.".
(d) Section 10706(a) of title 49, United States Code, is amended by
adding at the end thereof the following new paragraph:
"(4) Notwithstanding any other provision of this subsection, one or
more rail carriers may enter into an agreement, without obtaining
prior Commission approval, that provides solely for compilation,
publication, and other distribution of rates in effect or to become
effective. The Sherman Act (15 U.S.C. 1 et seq.), the Clayton Act (15
U.S.C. 12 et seq.), the Federal Trade Commission Act (15 U.S.C. 41 et
94 STAT. 1928 PUBLIC LAW 96-448—OCT. 14, 1980
seq.), sections 73 and 74 of the Wilson Tariff Act (15 U.S.C. 8 and 9),
and the Act of June 19,1936, as amended (15 U.S.C. 13,13a, 13b, 21a)
shall not apply to parties and other persons with respect to making or
Investigation. carrying out such agreement. However, the Commission may, upon
application or on its own initiative, investigate whether the parties to
such an agreement have exceeded its scope, and upon a finding that
they have, the Commission may issue such orders as are necessary,
including an order dissolving the agreement, to ensure that actions
taken pursuant to the agreement are limited as provided in this
paragraph.".
(e) Section 10706(iXlXB) of title 49, United States Code, is amended
49 u s e 10101. by striking out "section 10101" and inserting in lieu thereof "section
Ante, p. 1897. 10101a".
49 u s e 10706 (f) The Interstate Commerce Commission may not take any action
note. with respect to the elimination of general rate increases or decreases
prior to April 1,1982.
49 u s e 10706 (g) The Interstate Commerce Commission shall require rail carrier
note.
members of a rate bureau to provide the employees of such rate
bureau who are affected by the amendments made by this section
with fair arrangements no less protective of the interests of such
employees than those established pursuant to section 11347 of title
"Employees." 49, United States Code. For purposes of this subsection, the term
"employees" does not include any individual serving as president,
vice-president, secretary, treasurer, comptroller, counsel, member of
the board of directors, or any other person performing such functions.
LONG AND SHORT HAUL TRANSPORTATION
Repeal. SEC. 220. Section 10726(c) of title 49, United States Code, is repealed.
RAILROAD ENTRY
SEC. 221. (a) Section 10901(a) of title 49, United States Code, is
amended by striking "will be enhanced by" and inserting in lieu
thereof "permit".
(b) Section 10901 of title 49, United States Code, is further amended
by adding at the end thereof the following new subsections:
"(dXD Where a rail carrier has been issued a certificate of public
convenience and necessity by the Commission authorizing the con-
struction or extension of a railroad line, no other rail carrier may
block such construction or extension by refusing to permit the carrier
to cross its property if (A) the construction does not unreasonably
interfere with the operation of the crossed line, (B) the operation does
not materially interfere with the operation of the crossed line, and (C)
the owner of the crossing line compensates the owner of the crossed
line.
"(2) If the carriers are unable to agree on the terms of operation or
the amount of payment for purposes of paragraph (1) of this subsec-
tion, either party may submit the matters in dispute to the Commis-
sion for determination.
"(e) The Commission may require any rail carrier proposing both to
construct and operate a new railroad line pursuant to this section to
provide a fair and equitable arrangement for the protection of the
interests of railroad employees who may be affected thereby no less
protective of and beneficial to the interests of such employees than
49 u s e 11347. those established pursuant to section 11347 of this title.".
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1929
SERVICE DURING PERIODS OF PEAK DEMAND
SEC. 222. Section 11101(a) of title 49, United States Code, is
amended by adding at the end thereof the following new sentence: "A
rail carrier shall not be found to have violated this section because it
fulfills its commitments under contracts approved under section
10713 of this title before responding to reasonable requests for Ante, p. 1908.
service.".
RECIPROCAL SWITCHING
SEC. 223. Section 11103 of title 49, United States Code, is amended
by adding at the end thereof the following new subsection:
"(c)(1) The Commission may require rail carriers to enter into
reciprocal switching agreements, where it finds such agreements to
be practicable and in the public interest, or where such agreements
are necessary to provide competitive rail service. The carriers enter-
ing into such an agreement shall establish the conditions and
compensation applicable to such agreement, but, if the carriers
cannot agree upon such conditions and compensation within a
reasonable period of time, the Commission may establish such condi-
tions and compensation.
"(2) The Commission may require reciprocal switching agreements
entered into by rail carriers pursuant to this subsection to contain
provisions for the protection of the interests of employees affected
thereby.".
CAR S E R V I C E COMPENSATION
SEC. 224. (a)(1) Section 11122(b)(2) of title 49, United States Code, is Repeal.
(2) Section 11122(b)(1) of title 49, United States Code, is amended by
striking out "(1)" immediately before "The rate".
(b) Section i0706(a) of title 49, United States Code, as amended by
this Act, is further amended by adding at the end thereof the
following new paragraph:
"(5)(A) Whenever two or more shippers enter into an agreement to
discuss among themselves that relates to the amount of compensa-
tion such shippers propose to be paid by rail carriers providing
transportation subject to the jurisdiction of the Commission under
subchapter I of chapter 105 of this title, for use by such rail carriers of 49 USC 10501.
rolling stock owned or leased by such shippers, the shippers shall
apply to the Commission for approval of that agreement under this
paragraph. The Commission shall approve the agreement only when
it finds that the making and carrying out of the agreement will
further the transportation policy set forth in section 10101a of this
title and may require compliance with conditions necessary to make Ante, p. 1897.
the agreement further that policy as a condition of approval. If the
Commission approves the agreement, it may be made and carried out
under its terms and under the terms required by the Commission,
and the antitrust laws set forth in paragraph (2) of this subsection do
not apply to parties and other persons with respect to making or
carrying out the agreement. The Commission shall approve or disap-
prove an agreement under this paragraph within one year after the
date application for approval of such agreement is made.
"(B) If the Commission approves an agreement described in subpar-
agraph (A) of this paragraph and the shippers entering into such
agreement and the rail carriers proposing to use rolling stock owned
94 STAT. 1930 PUBLIC LAW 96-448—OCT. 14, 1980
or leased by such shippers, under payment by such carriers or under
a published allowance, are unable to agree upon the amount of
compensation to be paid for the use of such rolling stock, any party
directly involved in the negotiations may require that the matter be
settled by submitting the issues in dispute to the Commission. The
Commission shall render a binding decision, based upon a standard of
reasonableness and after taking into consideration any past prece-
dents on the subject matter of the negotiations, no later than 90 days
after the date of the submission of the dispute to the Commission.
"(C) Nothing in this paragraph shall be construed to change the law
Ante, p. 1895. in effect prior to the effective date of the Staggers Rail Act of 1980
with respect to the obligation of rail carriers to utilize rolling stock
owned or leased by shippers.".
CAR UTIUZATION
SEC. 225. (a) Subchapter II of chapter 107 of title 49, United States
Code, is amended by inserting at the end thereof the following new
section:
49 use 10734. Ǥ 10734. Car utilization
"In order to encourage more efficient use of freight cars, notwith-
standing any other provision of this subtitle, rail carriers shall be
permitted to establish tariffs containing premium charges for special
services or special levels of services not provided in any tariff
otherwise applicable to the movement. The Commission shall facili-
tate development of such tariffs so as to increase the utilization of
equipment.'.
Ot>) The section analysis of chapter 107 of title 49, United States
Code, is amended by inserting immediately after the item relating to
section 10731 the following new item:
"10734. Car utilization.".
CAR SERVICE ORDERS FOR EXIGENT CIRCUMSTANCES
SEC. 226. Section 11123(a) of title 49, United States Code, is
amended to read as follows:
"(a)(1) When the Interstate Commerce Commission finds that a
shortage of equipment, congestion of traffic, or other failure in traffic
movement exists which creates an emergency situation of such
magnitude as to have substantial adverse effects on rail service in the
United States or a substantial region of the United States, the
Commission may, for a period not to exceed thirty days—
"(A) suspend any car service rule or practice;
"(B) take action during the emergency to promote service in
the interest of the public and of commerce regardless of the
ownership (as between carriers) of a locomotive, car, or other
vehicle on terms of compensation the carriers establish between
themselves, subject to subsection Ot)X2) of this section;
"(C) require joint or common use of facilities, on terms of
compensation the carriers establish between themselves, subject
to subsection Ot))(2) of this section, when that action will best meet
the emergency and serve the public interest; and
"(D) give directions for preference or priority in transporta-
tion, embargoes, or movement of traffic under permits.
Commission "(2) The Commission may extend any action taken under para-
action, graph (1) of this subsection beyond the thirty-day period provided in
extension.
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1931
such paragraph only if the full Commission, after a hearing, certifies
that a transportation emergency exists.
"(3) In carrying out the provisions of this subsection, the Commis-
sion shall require, to the maximum extent practicable, the use of the
employees who would normally have performed work in connection
with the traffic subject to the action of the Commission.".
EMPLOYEE PROTECTION
SEC. 227. (a) Section 1170 of title 11, United States Code, is amended Railroad line
by adding at the end thereof the following new subsection: abandonments.
"(e)(1) In authorizing any abandonment of a railroad line under
this section, the court shall require the rail carrier to provide a fair
arrangement at least as protective of the interests of employees as
that established under section 11347 of title 49.
"(2) Nothing in this subsection shall be deemed to affect the
priorities or timing of payment of employee protection which might
have existed in the absence of this subsection. .
(b) Section 1172 of title 11, United States Code, is amended by
adding at the end thereof the following new subsection:
"(cXl) In approving an application under subsection (b) of this
section, the Commission shsdl require the rail carrier to provide a fair
arrangement at least as protective of the interests of employees as
that established under section 11347 of title 49.
"(2) Nothing in this subsection shall be deemed to affect the
priorities or timing of payment of employee protection which might
have existed in the absence of this subsection. .
MERGERS AND OTHER TRANSACTIONS
SEC. 228. (a) Section 11344(b) of title 49, United States Code, is Applications.
amended—
(1) by inserting immediately after "section" the following:
"which involves the merger or control of at least two class I
railroads, as defined by the Commission"; and
(2) by adding at the end thereof the following new paragraph:
"(5) whether the proposed transaction would have an adverse
effect on competition among rail carriers in the affected region.".
(b) Section 11344 of title 49, United States (!)ode, is amended by
adding at the end thereof the following new subsection:
"(d) In a proceeding under this section which does not involve the
merger or control of at least two class I railroads, as defined by the
Commission, the C!ommission shall approve such an application
unless it finds that—
"(1) as a result of the transaction, there is likely to be
substantial lessening of competition, creation of a monopoly, or
restraint of trade in freight surface transportation in any region
of the United States; and
"(2) the anticompetitive effects of the transaction outweigh the
public interest in meeting significant transportation needs.
In making such findings, the Commission shall, with respect to any
application that is part of a plan or proposal developed under section
5 (a)-(d) of the Department of Transportation Act (49 U.S.C. 1654
(a)-(d)), accord substantial weight to any recommendations of the
Secretary of Transportation.".
(c) Section 11344 of title 49, United States Code, as amended by this
Act, is further amended by adding at the end thereof the following
new subsection:
94 STAT. 1932 PUBLIC LAW 96-448—OCT. 14, 1980
"(e) A rail carrier, or a person controlled by or affiliated with a
rail carrier, together with one or more affected shippers, may apply
for approval under this subsection of a transaction for the purpose of
providing motor carrier transportation prior or subsequent to rail
transportation to serve inadequately served shippers located on a
railroad other than the applicant carrier. Such application shall be
approved hy^ the Commission if the applicants demonstrate presently
impaired rail service and inadequate motor common carrier service
which results in the serious failure of the rail carrier serving the
shippers to meet the rail equipment or transportation schedules of
shippers or seriously to fail otherwise to provide adequate normal rail
services required by shippers and which shippers would reasonably
expect the rail carrier to provide. The Commission shall approve or
disapprove applications under this subsection within 30 days after
receipt of such application. The Commission shall approve applica-
tions which are not protested by interested parties within 30 days
following receipt of such application.".
(d) Section 11345 of title 49, United States Code, is amended to read
as follows:
Applications. "§11345. Consolidation, merger, and acquisition of control: rail
49 u s e 11345. carrier procedure
"(a) If a rail carrier providing transportation subject to the jurisdic-
tion of the Interstate Commerce Commission under subchapter I of
49 u s e 10501. chapter 105 of this title is involved in a proposed transaction under
49 u s e 11343, section 11343 of this title, this section and section 11344 of this title
11344. also apply to the transaction. The Commission shall publish notice of
Publication in
Federal the application in the Federal Register by the end of the 30th day
Register. after the application is filed with the Commission and after a certified
copy of it is furnished to the Secretary of Transportation. However, if
the application is incomplete, the Commission shall reject it by the
end of that period. The order of rejection is a final action of the
49 u s e 10327. Commission under section 10327 of this title. The published notice
shall indicate whether the application involves—
"(1) the merger or control of at least two class I railroads, as
defined by the Commission, to be decided within the time limits
specified in subsection (b) of this section;
"(2) transactions of regional or national transportation signifi-
cance, to be decided within the time limits specified in subsection
(c) of this section; or
"(3) any other transaction covered by this section, to be decided
within the time limits specified in subsection (d) of this section.
"(h) If the application involves the merger or control of two or more
class I railroads, as defined by the Commission:
eomments. "(1) Written comments about an application may be filed with
the Commission within 45 days after notice of the application is
published under subsection (a) of this section. Copies of such
comments shall be served on the Secretary of Transportation and
the Attorney General, each of whom may decide to intervene as a
party to the proceeding. That decision must be made by the 15th
day after the date of receipt of the written comments, and if the
decision is to intervene, preliminary comments about the appli-
cation must be sent to the Commission by the end of the 15th day
after the date of receipt of the written comments.
"(2) The Commission shall require that applications inconsist-
ent with an application, notice of which was published under
subsection (a) of this section, and applications for inclusion in the
transaction, be filed with it and given to the Secretary of
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1933
Transportation by the 90th day after publication of notice under
that subsection.
"(3) The Commission must conclude evidentiary proceedings Evidentiary
by the end of the 24th month after the date of publication of proceedings.
notice under subsection (a) of this section. The Commission must
issue a final decision by the 180th day after the date on which it
concludes the evidentiary proceedings.
"(c) If the application involves a transaction other than the merger
or control of at least two class I railroads, as defined by the
Commission, which the Commission has determined to be of regional
or national transportation significance:
"(1) Written comments about an application may be filed with Comments.
the Commission within 30 days after notice of the application is
published under subsection (a) of this section. Copies of such
comments shall be served on the Secretary of Transportation and
the Attorney General, each of whom may decide to intervene as a
party to the proceeding. That decision must be made by the 15th
day after the date of receipt of the written comments, and if the
decision is to intervene, preliminary comments about the appli-
cation must be sent to the Commission by the end of the 15th day
after the date of receipt of the written comments.
"(2) The Commission shall require that applications inconsist-
ent with an application, notice of which was published under
subsection (a) of this section, and applications for inclusion in the
transaction, be filed with it and given to the Secretary of
Transportation by the 60th day after publication of notice under
that subsection.
"(3) The Commission must conclude any evidentiary proceed- Evidentiary
ings by the 180th day after the date of publication of notice under proceedings.
subsection (a) of this section. The Commission must issue a final
decision by the 90th day after the date on which it concludes the
evidentiary proceedings.
"(d) For all applications under this section other than those
specified in subsections (b) and (c) of this section:
"(1) Written comments about an application may be filed with Comments.
the Commission within 30 days after notice of the application is
published under subsection (a) of this section. Copies of such
comments shall be served on the Secretary of Transportation and
the Attorney General, each of v/hom may decide to intervene £is a
party to the proceeding. That decision must be made by the 15th
day after the date of receipt of the written comments, and if the
decision is to intervene, preliminary comments about the appli-
cation must be sent to the Commission by the end of the 15th day
after the date of receipt of the written comments.
"(2) The Commission must conclude any evidentiary proceed- Evidentiary
ings by the 105th day after the date of publication of notice under proceedings.
subsection (a) of this section. The Commission must issue a final
decision by the 45th day after the date on which it concludes the
evidentiary proceedings.
"(e) If the Commission does not issue a decision that is a final action Notice to
under section 10327 of this title, it shall send written notice to Congress.
Congress that a decision was not issued and the reasons why it was 49 u s e 10327.
not issued.
"(f) The Commission may waive the requirement that an initial Waiver.
decision be made under section 10327 of this title and make a final
decision itself when it determines that action is required for the
timely execution of its functions under this subchapter or that an 49 u s e 11341.
application governed by this section is of major transportation
94 STAT. 1934 PUBLIC LAW 96-448—OCT. 14, 1980
importance. The decision of the Commission under this subsection is
49 u s e 10327. a final action under section 10327 of this title.".
Adjudication. (e) Any application filed or pending on the effective date of this Act
49 u s e 11343 under section 11343, 11344, or 11345 of title 49, United States Code,
note.
Ante, p. 1932. before the Secretary of Transportation, the Interstate Commerce
Commission, or any court shall be adjudicated or determined as if this
Act had not been enacted.
SAVINGS PROVISIONS
Rate SEC. 229. (a) Any rate that is in effect on the effective date of this
complaints.
49 u s e 10701a Act for transportation by a rail carrier providing transportation
note. subject to the jurisdiction of the Interstate Commerce Commission
49 u s e 10501. under subchapter I of chapter 105 of title 49, United States Code,
may, during the 180-day period beginning on such effective date, be
challenged in a complaint filed with the Interstate Commerce Com-
mission by any interested party alleging that the rail carrier has
market dominance over the transportation to which the rate applies,
49 u s e 10709. as determined under section 10709 of such title, and that the rate is
Ante, p. 1898. not reasonable under section 10701a of such title.
Ob) Any rate described in subsection (a) of this section—
(1) which is not challenged in a complaint filed within the 180-
day period provided in such subsection; or
(2) which is challenged in such a complaint, but (A) the rail
carrier is found not to have market dominance over the transpor-
tation to which the rate applies, or (B) the rate is found to be
reasonable,
shall be deemed to be lawful and may not thereafter be challenged in
the Commission or in any court (other than on appeal from a decision
of the Commission).
(c) The provisions of this section shall not apply to any rate under
which the volume of traffic moved during the 12-month period
immediately preceding the effective date of this Act did not exceed
500 net tons and has increased tenfold within the 3-year period
immediately preceding the bringing of a challenge to the reasonable-
ness of such rate.
(d) The burden of proof in any proceeding under this section shall
be on the complainant.
TITLE III-RAILROAD COST DETERMINATIONS
UNIFORM ACCOUNTING SYSTEM
SEC. 301. Section 11142 of title 49, United States Code, is amended
to read as follows:
49 u s e 11142. "§11142. Uniform accounting system
"The Interstate Commerce Commission may prescribe a uniform
accounting system for classes of carriers providing, and brokers for,
transportation subject to the jurisdiction of the Commission under
49 u s e 10521, subchapters II, III, and IV of chapter 105 of this title.".
10541, 10561.
RAILROAD COST ACCOUNTING
SEC. 302. (a) Chapter 111 of title 49, United States Code, is amended
by adding at the end thereof the following new subchapter:
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1935
"SUBCHAPTER IV—RAILROAD COST ACCOUNTING
"§11161. Railroad Accounting Principles Board Establishment.
49 u s e 11161.
"(a)(1) There is established a Railroad Accounting Principles Board
which shall be within and responsible to the legislative branch of the
Federal Government.
"(2) The Board shall be composed of the Comptroller General of the Membership.
United States, who shall serve as chairman, and six members to be
appointed by the Comptroller General.
(3) The Comptroller General shall appoint members of the Board
from among persons who are well qualified for such position by virtue
of experience in or knowledge of rate regulation, accounting, or cost
determinations. Of the members of the Board so appointed—
"(A) one shall be from the accounting profession;
"(B) one shall be from the railroad industry;
"(C) one shall be a representative of major rail shippers;
"(D) one shall be from the Interstate Commerce Commission;
"(E) one shall be a representative of small rail shippers; and
"(F) one shall be from the economics profession.
"(4) The term of office of each appointed member of the Board shall
be three years, except that any member appointed to fill a vacancy in
the Board shall serve for the remainder of the term for which his
predecessor was appointed.
"(5) The Board shall not act in the absence of a quorum, which shall
consist of three members.
"(b) Each appointed member of the Board shall receive compensa- Compensation.
tion at a rate equal to Vaeo of the rate prescribed for level IV of the
Executive Schedule, under section 5315 of title 5, for each day
(including traveltime) in which he is engaged in the actual perform-
ance of duties vested in the Board.
"(c)(1) The Board may utilize personnel from the Federal Govern- Advisory
ment, with the consent of the head of the appropriate Federal committees;
staff services.
department or agency, or appoint individuals from private life, to
serve on advisory committees or to provide the staff services neces-
sary to assist the Board in carrsdng out its functions and responsibil-
ities under this subchapter.
"(2) Individuals appointed by the Board under this subsection may
be appointed without regard to the provisions of title 5 governing
appointments in the competitive service, and may be paid without
regard to the provisions of chapter 51 and subchapter III of chapter 53
of such title, relating to classification and General Schedule pay 5 u s e 5101 et
rates. seq., 5331.
"(d) All Federal departments and agencies are authorized to
cooperate with the Board and to furnish information, appropriate
personnel (with or without reimbursement), and such financial and
other assistance as may be agreed upon by the Board and the Federal
department or agency involved.
'(e) Members and employees of the Board and all other individuals Confidential
appointed under this subsection having or having had access to information.
information in the possession of the Board shall be subject to the
provisions of section 1905 of title 18.
"(f) The Board shall cease to exist three years after the effective Termination.
date of the Staggers Rail Act of 1980. Ante, p. 1895.
"§11162. Cost accounting principles 49 u s e 11162.
"(a) Within two years after the effective date of the Staggers Rail
Act of 1980, the Railroad Accounting Principles Board shall establish, ^nte, p. 1895
for rail carriers providing transportation subject to the jurisdiction of
79-194 O—81—pt. 2 42 : QL3
94 STAT. 1936 PUBLIC LAW 96-448—OCT. 14, 1980
the Interstate Commerce Commission under subchapter I of chapter
49 u s e 10501. 105 of this title, principles governing the determination of economi-
cally accurate railroad costs directly and indirectly associated with
particular movements of goods, including the variable costs asso-
ciated with particular movements of goods or such other costs as the
Board believes most accurately represent the economic costs of such
movements. Such principles shall govern the determination of all
railroad costs for specific regulatory proceedings under this title.
"(b) In developing cost accounting principles under this section, the
Board shall take into account the following considerations:
"(1) The specific regulatory purposes for which railroad costs
are required.
"(2) The degree of accuracy of the cost information which is
needed to meet regulatory purposes.
"(3) The existing capability and the probable future capability
of rail carriers to provide such information and the relative
benefits and costs of requiring development of additional
capability.
"(4) The means by which the degree of economic accuracy
required can be obtained at the least possible expense and with
the least possible information reporting.
"(5) The means by which the confidentiality of such costs can
best be maintained while meeting the need for such information
in regulatory proceedings.
Cost information "(c) The cost accounting principles established by the Board shall
disclosure. require that cost information be reported or disclosed only for the
essential regulatory purposes defined by the Board.
Rules. "§11163. Implementation of cost accounting principles
49 u s e 11163. "Upon the establishment of cost accounting principles by the
Railroad Accounting Principles Board under section 11162 of this
title, the Interstate Commerce Commission shall promptly promul-
Review. gate rules to implement and enforce such principles. Not less than
once every five years after the promulgation of the original rules, the
Commission shall review the principles of the Board and shall, by
rule, make such changes in such principles as are required to achieve
the regulatory purposes of this title and the goals of this subchapter.
The Commission shall insure that the rules promulgated under this
section are the most efficient and least burdensome means by which
the required information may be developed for regulatory purposes.
49 use 11164. "§ 11164. Certification of rail carrier cost accounting systems
"(a) Within 180 days after the effective date of the Staggers Rail
Ante, p. 1895. Act of 1980, each rail carrier providing transportation subject to the
jurisdiction of the Interstate Commerce Commission under sub-
49 use 10501. chapter I of chapter 105 of this title shall file with the Commission a
request for preliminary certification of its cost accounting system.
The Commission shall grant such preliminary certification if it
determines that the cost accounting system of such rail carrier is in
compliance with the accounting standards of the Commission in
effect on the day prior to the effective date of the Staggers Rail Act of
1980.
"(b)(1) As soon as practicable, but not later than 9 months, after the
promulgation of rules by the Commission under section 11163 of this
title, each rail carrier described in subsection (a) of this section shall
file with the Commission a request for final certification of its cost
accounting system developed to comply with this section.
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1937
"(2) Within 90 days, or such additional time as the Commission
finds necessary, after a rail carrier files its request for final certifica-
tion under paragraph (1) of this subsection, the Commission shall
grant such final certification to such carrier if the Commission
determines that the cost accounting system of such carrier is in
compliance with the rules promulgated by the Commission under
section 11163 of this title. If the Commission denies such final
certification, the rail carrier shall revise its cost accounting system
and file a new request for certification within 90 days after the date of
such denial. The Commission shall thereupon grant final certifica-
tion if it determines that such cost accounting system, as revised, is in
compliance with such rules. If the Commission again denies final
certification to the rail carrier, the Commission shall prescribe a cost
accounting system which such carrier shall adopt within a reasonable
time and which shall be considered a finally certified cost accounting
system for purposes of this section.
"(c) Each rail carrier shall have and maintain a cost accounting
system that is in compliance with the rules promulgated by the
Commission under section 11163 of this title.
"(d)(1) Certification under this section that the cost accounting
system of a rail carrier is in compliance with the rules promulgated
by the Commission under section 11163 of this title shall be valid
until the promulgation of new rules by the Commission.
"(2) After the cost accounting system of a rail carrier is certified Cost accounting
under this section, such rail carrier may, after notifying the Commis- systems,
modification.
sion, make modifications in such system unless, within 60 days after
the date of notification, the Commission finds such modifications to
be inconsistent with the rules promulgated by the Commission under
section 11163 of this title.
"(e) For purposes of determining whether the cost accounting Compliance
system of a rail carrier is in compliance with the rules promulgated determination.
by the Commission, the Commission shall have the right to examine
and make copies of any documents, papers, or records of such rail
carrier relating to compliance with such rules. Such documents,
papers, and records (and any copies thereof) shall not be subject to the
mandatory disclosure requirements of section 552 of title 5.
"§11165. Cost availability 49 USC 11165.
"As required by the rules of the Interstate Commerce Commission
governing discovery in Commission proceedings, rail carriers shall
make relevant cost data available to shippers. States, ports, commu-
nities, and other interested parties that are a party to a Commission
proceeding in which such data is required.
"§ 11166. Accounting and cost reporting Rules.
49 USC 11166.
"(a) To obtain expense and revenue information for regulatory
purposes, the Interstate Commerce Commission may promulgate
reasonable rules for rail carriers providing transportation subject to
the jurisdiction of the Commission under subchapter I of chapter 105
of this title, prescribing expense and revenue accounting and report- 49 USC 10501
ing requirements consistent with generally accepted accounting
principles uniformly applied to such carriers. Such requirements
shall be cost effective and compatible with and not duplicative of the
managerial and responsibility accounting requirements of those
carriers. To the extent such rules are required solely to provide
expense and revenue information necessary for determining railroad
costs in regulatory proceedings pursuant to this title, such rules shall
be promulgated in accordance with the cost accounting principles
94 STAT. 1938 PUBLIC LAW 96-448—OCT. 14, 1980
established by the Railroad Accounting Principles Board under
section 11162 of this title.
Reports. "(b) Any reports required by the rules established by the Commis-
sion under this section shall include only information considered
necessary for disclosure under the cost accounting principles estab-
lished by the Board or under generally accepted accounting princi-
ples or the requirements of the Securities and Exchange Commission.
Submittal to "§11167. Report
Congress.
49 u s e 11167. "The Railroad Accounting Principles Board shall, within 2 years
Ante, p. 1895. after the effective date of the Staggers Rail Act of 1980, submit to the
Congress a report setting forth any recommendations of the Board for
appropriate legislative or administrative action in order to integrate
the cost accounting principles and the cost accounting system certifi-
cation process under this subchapter into existing rail carrier rate
regulation under this title, including determinations under section
49 u s e 10709. 10709 of this title.
49 u s e 11168. "§11168. Authorization of appropriations
"There are authorized to be appropriated to carry out the provi-
sions of this subchapter not to exceed $1,000,000 for the fiscal year
ending September 30,1981, not to exceed $1,000,000 for the fiscal year
ending September 30,1982, and not to exceed $1,000,000 for the fiscal
year ending September 30,1983.".
Qy) The analysis of chapter 111 of title 49, United States Code, is
amended by adding at the end thereof the following:
"SUBCHAPTER IV—RAILROAD COST ACCOUNTING
"11161. Railroad Accounting Principles Board.
"11162. Cost accounting principles.
"11163. Implementation of cost accounting principles.
"11164. Certification of rail carrier cost accounting systems.
"11165. Cost avaUabUity.
"11166. Accounting and cost reporting.
"11167. Report.
"11168. Authorization of appropriations.".
CIVIL PENALTIES FOR VIOLATIONS OF ACCOUNTING PRINCIPLES
PROVISIONS
SEC. 303. (a)(1) Chapter 119 of title 49, United States Code, is
amended by inserting immediately after section 11913 the following
new section:
49 use 11913a. "§ 11913a. Accounting principles violations
"Any rail carrier providing transportation subject to the jurisdic-
tion of the Interstate Commerce Commission under subchapter I of
49 u s e 10501. chapter 105 of this title that fails to obtain final certification of its
Ante, p. 1936. cost accounting system under section 11164(b) of this title shall be
fined not less than $50,000.".
(2) The section analysis of chapter 119 of title 49, United States
Code, is amended by inserting immediately after the item relating to
section 11913 the following new item:
"11913a. Accounting principles violations.".
Confidential (b) Section 11910 of title 49, United States Code, is amended by
data, disclosure. adding at the end thereof the following new subsection:
"(d) A person that knowingly discloses confidential data made
Ante, p. 1937. available to such person under section 11165 of this title by a rail
carrier providing transportation subject to the jurisdiction of the
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1939
Commission under subchapter I of chapter 105 of this title shall be 49 use 10501.
fined not more than $50,000.".
TITLE IV—RAILROAD MODERNIZATION ASSISTANCE
FEEDER RAILROAD DEVELOPMENT PROGRAM
SEC. 401. (a) Subchapter I of chapter 109 of title 49, United States
Code, is amended by adding at the end thereof the following new
section:
"§ 10910. Railroad development 49 use 10910.
"(a) In this section— Definitions.
"(1) 'financially responsible person' means a person who (A) is
capable of pajdng the constitutional minimum value of the
railroad line proposed to be acquired, and (B) is able to assure
that adequate transportation will be provided over such line for a
period of not less than 3 years. Such term includes a government
authority but does not include a class I or a class II rail carrier.
"(2) 'railroad line' means (A) during the 3-year period begin-
ning on the effective date of the Staggers Rail Act of 1980, a line Ante, p. 1895.
of railroad which carried less than 3,000,000 gross ton miles of
traffic per mile in the preceding calendar year, and (B) after the
end of such 3-year period, any line of railroad.
"(b)(1) When the Interstate Commerce Commission finds that— Railroad lines,
"(A)(i) the public convenience and necessity require or permit sale.
the sale of a particular railroad line under this section; or
"(ii) a railroad line has been placed on a system diagram map
as required under section 10904 of this title, but the rail carrier 49 USe 10904
owning such line has not filed an application to abandon such
line under sections 10903 and 10904 of this title; and 49 u s e 10903.
"(B) an application to purchase such line has been filed, in
accordance with regulations required under subsection (k) of this
section, by a financially responsible person,
the Commission shall require the rail carrier owning the railroad line
to sell such line to such financially responsible person at a price not
less than the constitutional minimum value.
"(2) For purposes of this subsection, the constitutional minimum
value of a particular railroad line shall be presumed to be not less
than the net liquidation value of such line or the going concern value
of such line, whichever is greater, but shall not include the cost of
providing a protective arrangement under subsection (j) of this
section.
"(c)(1) For purposes of this section, the Commission may determine
that the public convenience and necessity require or permit the sale
of a railroad line if the Commission determines, after a hearing on
the record, that—
"(A) the rail carrier operating such line refuses within a
reasonable time to make the necessary efforts to provide ade-
quate service to shippers who transport traffic over such line;
"(B) the transportation over such line is inadequate for the
majority of shippers who transport traffic over such line;
"(C) the sale of such line will not have a significantly adverse
financial effect on the rail carrier operating such line;
"(D) the sale of such line will not have an adverse effect on the
overall operational performance of the rail carrier operating
such line; and
94 STAT. 1940 PUBLIC LAW 96-448—OCT. 14, 1980
"(E) the sale of such line will be likely to result in improved
railroad transportation for shippers that transport traffic over
such line.
"(2) In a proceeding under this subsection, the burden of proving
that the public convenience and necessity require or permit the sale
of a particular railroad line is on the person filing the application to
Publication in acquire such line. If the Commission finds under this subsection that
Federal the public convenience and necessity require or permit the sale of a
Register.
particular railroad line, the Commission shall concurrently notify
the parties of such finding and publish such finding in the Federal
Register.
Trackage rights. "(d) In the case of any railroad line subject to sale under subsection
(a) of this section, the Commission shall, upon the request of the
acquiring carrier, require the selling carrier to provide to the acquir-
ing carrier trackage rights to allow a reasonable interchange with the
selling carrier or to move power equipment or empty rolling stock
between noncontiguous feeder lines operated by the acquiring
carrier. The Commission shall require the acquiring carrier to
provide the selling carrier reasonable compensation for any such
trackage rights.
"(e) The Commission shall require, to the meiximum extent practi-
cable, the use of the employees who would normally have performed
work in connection with a railroad line subject to a sale under this
section.
Joint rates. "(f) In the case of a railroad line which carried less than 3,000,000
gross ton miles of traffic per mile in the preceding calendar year,
whenever a purchasing carrier under this section petitions the
Commission for joint rates applicable to traffic moving over through
routes in which the purchasing carrier may practicably participate,
the Commission shall, within 30 days after the date such petition is
49 u s e 10705. filed and pursuant to section 10705(a) of this title, require the
establishment of reasonable joint rates and divisions over such route.
Exemptions. "(g)(1) Any person operating a railroad line acquired under this
section may elect to be exempt from any of the provisions of this title,
except that such a person may not be exempt from the provisions of
49 u s e 10701 et chapter 107 of this title with respect to transportation under a joint
seq. rate.
"(2) The provisions of paragraph (1) of this subsection shall apply to
any line of railroad which was abandoned during the 18-month period
immediately prior to the effective date of the Staggers Rail Act of
Ante, p. 1895. 1980 and was subsequently purchased by a financially responsible
person.
"(h) If a purchasing carrier under this section proposes to sell or
abandon all or any portion of a purchased railroad line, such
purchasing carrier shall offer the right of first refusal with respect to
such line or portion thereof to the carrier which sold such line under
this section. Such offer shall be made at a price equal to the sum of
the price paid by such purchasing carrier to such selling carrier for
such line or portion thereof and the fair market value (less deteriora-
tion) of any improvements made, as adjusted to reflect inflation.
Preconditions "(i) Any person operating a railroad line acquired under this
for shippers. section may determine preconditions, such as payment of a subsidy,
which must be met by shippers in order to obtain service over such
lines, but such operator must notify the shippers on the line of its
intention to impose such preconditions.
Employee "(j) In the case of any railroad line sold pursuant to this section, the
interests, Commission shall require the selling carrier to provide a fair arrange-
protection.
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1941
ment at least as protective of the interests of employees as that
established under section 11347 of this title. 49 u s e 11347.
"(k) The Commission shall, within 60 days after the effective date of Regulations and
procedures.
the Staggers Rail Act of 1980, prescribe such regulations and proce- Ante, p. 1895.
dures as may be necessary to carry out the provisions of this section.",
Ot)) The section analysis of chapter 109 of title 49, United States
Code, is amended by adding immediately after the item relating to
section 10909 the following new item:
"10910. Railroad development.".
ABANDONMENT
SEC. 402. (a)(1) Section 10903(b)(1) of title 49, United States Code, is
amended by striking out the first sentence.
(2) Section 10903(c) of title 49, United States Code, is repealed.
(b)(1) Section 10904(a) of title 49, United States Code, is amended—
(A) by striking out "at least 60" and all that follows through
"effective" in paragraph (1);
(B) by striking out "and" at the end of paragraph (2)(A);
(C) by striking out the period at the end of paragraph (2)(B) and
inserting in lieu thereof , and";
(D) by adding at the end of paragraph (2) the following new
subparagraph:
"(C)(i) a statement that the line is available for subsidy or sale
in accordance with section 10905 of this title, (ii) a statement that Post, p. 1942.
the carrier will promptly provide to each interested party an
estimate of the subsidy and minimum purchase price required to
keep the line in operation, calculated in accordance with section
10905 of this title, and (iii) the name and business address of the
person who is authorized to discuss sale or subsidy terms for the
carrier."; and
(E) by inserting immediately before the period at the end of
paragraph (3XE) the following: ", and certifying that clauses
(A)-(D) have been satisfied within the most recent 30 days prior
to the date the application is filed".
(2) Section 10904(b) of title 49, United States Code, is amended to
read as follows:
"(b) If no protest is received within 30 days after the application is
filed, the Commission shall find that the public convenience and
necessity require or permit the abandonment or discontinuance. In Certificate.
such a case, the Commission shall, within 45 days after the applica-
tion is filed, issue a certificate which permits the abandonment or
discontinuance to occur within 75 days after the application is filed.".
(3) Section 10904(c) of title 49, United States Code, is amended to Protests.
read as follows:
"(c)(1) If a protest is received within 30 days after the application is
filed, the Commission shall, within 45 days after the application is
filed, determine whether an investigation is needed to assist in
determining what disposition to make of the application.
"(2) If the Commission decides that no investigation is to be
undertaken, the Commission shall, within 75 days after the applica-
tion is filed, decide whether the present or future public convenience
and necessity require or permit the abandonment or discontinuance,
taking into consideration the application of the rail carrier and any
materials submitted by protestants. If the Commission finds that the Certificate.
present or future public convenience and necessity require or permit
the abandonment, it shall, within 90 days after the date of applica-
94 STAT. 1942 PUBLIC LAW 96-448—OCT. 14, 1980
tion, issue a certificate which permits the abandonment or discon-
tinuance to occur within 120 days after the application is filed.
Investigation. "(3) If the Commission decides that an investigation should be
undertaken under this section, the investigation must be completed
within 135 days, and an initial decision must be rendered within 165
days, after the date the application is filed. Thirty days after such
decision, the initial decision shall become the final decision of the
Commission unless, during the interim, the Commission decides to
hear appeals. If an initial decision is appealed and considered by the
Commission, the Commission shall issue a final decision within 255
days after the date of application. Whenever the Commission decides
upon investigation that the present or future public convenience and
necessity require or permit the abandonment or discontinuance of
rail service, it shall, within 15 days of the final decision, issue a
certificate which permits the abandonment or discontinuance to
occur within 75 days of the date of the final decision.
"(4) The effective date of any certificate which permits abandon-
ment or discontinuance may be stayed by the Commission pursuant
Infra. to the provisions of section 10905 of this title.".
(4) Section 10904 of title 49, United States Code, is amended by
redesignating subsection (d) as subsection (e), and by inserting imme-
diately after subsection (c) the following new subsection:
"(d)(1) The burden is on the person applying for the certificate to
prove that the present or future public convenience and necessity
require or permit the abandonment or discontinuance.
"(2) For applications approved by the Secretary of Transportation
as part of a plan or proposal under section 5(a)-(d) of the Department
of Transportation Act (49 U.S.C. 1654(a)-(d)), the Commission shall
consider whether any detriment from the abandonment or discon-
tinuance exceeds the transportation benefit from the plan or proposal
as a whole.".
Waiver. (5) Section 10904(e) of title 49, United States Code, as redesignated
by paragraph (4) of this subsection, is amended by inserting immedi-
ately before the period at the end thereof the following: ", except that
the requirement of such description or identification in such diagram
may be waived by the Commission if the application was approved by
the Secretary of Transportation as part of a plan or proposal under
section 5(a)-(d) of the Department of Transportation Act (49 U.S.C.
1654(a)-(d)), or the application is filed by a railroad in bankruptcy".
(c) Section 10905 of title 49, United States Code, is amended to read
as follows:
49 use 10905. "§ 10905. Offers of flnancial assistance to avoid abandonment and
discontinuance
Definitions. "(a) In this section—
"(1) 'avoidable cost' means all expenses that would be incurred
by a rail carrier in providing transportation that would not be
incurred if the railroad line over which the transportation was
provided were abandoned or if the transportation were discontin-
ued. Expenses include cash inflows foregone and cash outflows
incurred by the rail carrier as a result of not abandoning or
discontinuing the transportation. Cash inflows foregone and cash
outflows incurred include—
"(A) working capital and required capital expenditure;
"(B) expenditures to eliminate deferred maintenance;
"(C) the current cost of freight cars, locomotives, and other
equipment; and
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1943
"(D) the foregone tax benefits from not retiring properties
from rail service and other effects of applicable Federal and
State income taxes.
"(2) 'reasonable return' means—
"(A) if a rail carrier is not in reorganization, the cost of
capital to the rail carrier, as determined by the Interstate
Commerce Commission; and
"(B) if a rail carrier is in reorganization, the mean cost of
capital of rail carriers not in reorganization, as determined
by the Commission.
"(b) Any rail carrier which has filed an application for a certificate
of abandonment or discontinuance shall provide promptly to a party
considering an offer of financial assistance and shall provide concur-
rently to the Commission—
"(1) an estimate of the annual subsidy and minimum purchase
price required to keep the line or a portion of the line in
operation;
"(2) its most recent reports on the physical condition of that
part of the railroad line involved in the proposed abandonment
or discontinuance;
"(3) traffic, revenue, and other data necessary to determine the
amount of annual financial assistance which would be required
to continue rail transportation over that part of the rsdlroad line;
and
"(4) any other information that the Commission may deem
necessary to allow a potential offeror to calculate an adequate
subsidy or purchase offer.
"(c) When the Commission finds under section 10903 of this title Publication in
that the public convenience and necessity require or permit abandon- Federal
ment or discontinuance of a particular railroad line, it shall, concur- Register.
49 u s e 10903.
rently with service of the decision upon the parties, publish the
finding in the Federal Register. Within 10 days following the publica- Subsidy or
tion, any person may offer to pay the carrier a subsidy or offer to purchase offer.
purchase the line. Such offer shall be filed concurrently with the
Commission. If the offer to subsidize or purchase the line is less than
the carrier's estimate provided under subsection (b)(1) of this section,
the offer shall explain the basis of the disparity, and the manner in
which the offer of subsidy or purchase is calculated.
"(d) If, within 15 days after the publication required in subsection Abandonment or
(c) of this section, the Commission finds that— discontinuance,
postponement.
"(1) a financially responsible person (including a government
authority) has offered financial assistance to enable the rail
transportation to be continued over that part of the railroad line
to be abandoned or over which all rail transportation is to be
discontinued; and
"(2) it is likely that the assistance would be equal to—
"(A) the difference between the revenues attributable to
that part of the railroad line and the avoidable cost of
providing rail freight transportation on the line, plus a
reasonable return on the value of the line; or
"(B) the acquisition cost of that part of the railroad line;
the Commission shall postpone the issuance of a certificate authoriz-
ing abandonment or discontinuance in accordance with subsections
(e) and (f) of this section.
"(e) If the carrier and a person offering financial assistance enter
into an agreement which will provide continued rail service, the
Commission shall postpone the issuance of the certificate for so long
as the agreement, or an extension or modification of the agreement.
94 STAT. 1944 PUBLIC LAW 96-448—OCT. 14, 1980
is in effect. If the carrier and a person offering to purchase a line
enter into an agreement which will provide continued rail service,
the Commission shall approve the transaction and dismiss the appli-
cation for abandonment or discontinuance. If the carrier and a
financially responsible person (including a government authority)
fail to agree on the amount or terms of the subsidy or purchase, either
party may, within 30 days after the offer is made, request that the
Commission establish the conditions and amount of compensation. If
no agreement is reached within 30 days after the offer is made and
neither party requests that the Commission establish the conditions
and amount of compensation during that same period, the Commis-
sion shall immediately issue a certificate authorizing the abandon-
ment or discontinuance,
Subsidy or "(f)(1) Whenever the Commission is requested to establish the
purchase terms, conditions and amount of compensation under this section—
establishment.
"(A) the Commission shall render its decision within 60 days;
"(B) where subsidy has been offered, the Commission shall
determine the amount and terms of subsidy based on the avoid-
able cost of providing continued rail transportation, plus a
reasonable return on the value of the line; and
"(C) where an offer of purchase has been made in order to
continue rail service on the line, the Commission shall determine
the price and other terms of sale. In no case shall the Commission
set a price which is below the fair market value of the line
(including, unless otherwise mutually agreed, all facilities on the
line or portion necessary to provide effective transportation
services).
"(2) The decision of the Commission shall be binding on both
parties, except that the person who has offered to subsidize or
purchase the line may withdraw his offer within 10 days of the
Commission's decision. In such a case, the Commission shall immedi-
ately issue a certificate authorizing the abandonment or discontinu-
ance, unless other offers are being considered pursuant to paragraph
(3) of this subsection.
"(3) If a carrier receives more than one offer to purchase or
subsidize, it shall select the offeror with whom it wishes to transact
business, and complete the sale or subsidy agreement, or request that
the Commission establish the conditions and amount of compensation
prior to the 40th day after the date on which notice was published
under subsection (c) of this section. If no agreement on subsidy or sale
is reached within the 40-day period and the Commission has not been
requested to establish the conditions and amount of compensation,
any other offeror may request that the Commission establish the
conditions and amount of compensation. If the Commission has
established the conditions and amount of compensation and the
original offer has been withdrawn, any other offeror may accept the
Commission's decision within 20 days of such decision, and the
Commission shall require the carrier to enter into a sale or subsidy
agreement with such offeror, if such sale or agreement incorporates
the Commission's decision.
Service "(4) No purchaser of a line or portion of line sold under this section
discontinuance may transfer or discontinue service on such line prior to the end of
or transfer,
prohibition. the second year after consummation of the sale, nor may such
purchaser transfer such line, except to the carrier from whom it was
purchased, prior to the end of the fifth year after consummation of
the sale.
Subsidy "(5) Any subsidy provided under this section may be discontinued
discontinuance. on notice of 60 days. Unless, within such 60-day period, another
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1945
financially responsible party enters into a subsidy agreement at least
as beneficial to the carrier as that which was or was to be discontin-
ued, the Commission shall, at the carrier's request, immediately issue
a certificate authorizing the abandonment or discontinuance of
service on the line.".
CONVERSION OF ABANDONED RAILROAD RIGHTS-OF-WAY
SEC. 403. Section 809(d) of the Railroad Revitalization and Regula- 49 u s e 10906
tory Reform Act of 1976 is amended— note.
(1) by inserting "(1)" immediately before the first sentence
thereof; and
(2) by adding at the end thereof the following new paragraph:
"(2) There are authorized to be appropriated, for the purposes of Appropriation
carrjdng out the provisions of subsection (bX2) of this section, not to authorization.
exceed an aggregate amount of $10,000,000 for the fiscal years 1981,
1982, and 1983. Such sums are authorized to remain available until
expended. Notwithstsmding the provisions of subsection (b)(2) of this
section, the Federal share for each grant made from the funds
authorized to be appropriated pursuant to this paragraph may not
exceed 80 percent of the total cost of any project.".
EXTENSION OF REDEEMABLE PREFERENCE SHARE FINANCING
SEC. 404. Sections 505(e), 507(a), 507(d), and 509 of the Railroad
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 825(e),
827(a), 827(d), and 829) are each amended by striking out "September
30,1980" wherever it appears and inserting in lieu thereof Septem-
ber 30,1982" in each such place.
FINANCING
SEC. 405. (aXl) Section 505(dX3) of the Railroad Revitalization and
Regulatory Reform Act of 1976 (45 U.S.C. 825(dX3)) is amended by Post, p. 1947.
striking out "$700,000,000" and mserting in lieu thereof
"$1,400,000,000".
(2) Sections 507(a) and 509 of the Railroad Revitalization and
Regulatory Reform Act of 1976 (45 U.S.C. 827(a) and 829) are each
amended by striking out "$600,000,000" and inserting in lieu thereof
"$1,400,000,000".
(bXD Section 509 of the Railroad Revitalization and Regulatory
Reform Act of 1976 (45 U.S.C. 829) is amended by inserting "(a)^'
immediately after "SEC. 509." and by adding at the end thereof the
following new subsection:
"(bXD Not more than $200,000,000 of the funds received by the Funds transfer.
Secretary of Transportation from amounts appropriated under sub-
section (a) of this section shall be transferred by the Secretary to the
United States Railway Association for use by the Association in
accordance with section 216(bX3) of the Regional Rail Reorganization
Act of 1973 (45 U.S.C. 726(b)(3)). Such funds shall be transferred Post, p. 1946.
immediately upon the finding by the Finance Committee under such
section 216(bX3).
"(2) Not less than 5 percent of the funds received by the Secretary Purchase or
of Transportation from amounts appropriated under subsection (a) rehabilitation.
(excluding funds transferred under paragraph (1) of this subsection)
shall be available for the purchase or rehabilitation of railroad lines
acquired under section 10910 of title 49, United States Code, except Ante, p. 1939.
that no such funds shall be available for the purchase or rehabilita-
94 STAT. 1946 PUBLIC LAW 96-448—OCT. 14, 1980
tion of such a railroad line unless such purchase or rehabilitation is
consistent with the rail plan (as defined under section 5 of the
49 u s e 1654. Department of Transportation Act) of the State in which such line is
located.
Appropriation "(3) Of the funds authorized to be appropriated under this section
authorization. (other than funds described in paragraphs (1) and (2) of this subsec-
tion) not more than $180,000,000 are authorized to be appropriated in
fiscal year 1981.".
Work force (2) Section 216(b) of the Regional Rail Reorganization Act of 1973
reduction. (45 U.S.C. 726(b)) is amended by adding at the end thereof the
following new paragraph:
"(3)(A) Amounts transferred to the Association pursuant to section
5090t))(l) of the Railroad Revitalization and Regulatory Reform Act of
Ante, p. 1945. 1976 may be used to purchase series A preferred stock of the
Corporation to provide for the implementation by the Corporation of
a program to reduce the Corporation's work force, if the Finance
Committee finds that the implementation of such program will result
in substantial savings to the United States.
"(B) An employee who ceases to be an employee £is a result of the
reduction of work force under a program implemented pursuant to
this paragraph shall not, by reason of so ceasing to be an employee, or
by reason of any work or employment entered into after so ceasing to
be an employee, lose such employee's current connection with the
railroad industry for the purposes of the Railroad Retirement Act of
45 u s e 231t. 1974.".
Financial (c)(1) Section 505(a) of the Railroad Revitalization and Regulatory
assistance. Reform Act of 1976 (45 U.S.C. 725(a)) is amended—
45 u s e 825.
(A) by inserting "(1)" immediately before "Any railroad"; and
(B) by adding at the end thereof the following new paragraphs:
"(2) An employee or employee-shipper group may apply to the
Secretary for financial assistance pursuant to subsection (b)(3) of this
section.
"(3) A financially responsible person (as defined in section
Ante, p. 1939. 10910(a)(1) of title 49, United States Code) may apply to the Secretary
for financial assistance from funds made available pursuant to
Ante, p. 1945. section 509(b)(2) of this title.".
(2) Section 505(b) of the Railroad Revitalization and Regulatory
Reform Act of 1976 (45 U.S.C. 825(b)) is amended by adding at the end
thereof the following new paragraph:
"(3) The Secretary may approve applications to provide financial
assistance to any employee or employee-shipper ownership group
formed pursuant to a plan for the purchase or rehabilitation of a line
or lines of railroad or of rail facilities which are considered to be in
the public interest. The Secretary shall not use more than 20 percent
of the total funds available under this section for such financial
assistance. In considering the allocation of available funds and
priority of eligible projects under this subsection, the Secretary shall
consider the availability of viable alternatives to the ownership or
rehabilitation by the eligible employee-shipper group for the continu-
ation of rail service. Projects with no such alternative shall receive
highest priority.".
(3) Sections 506 through 509 of the Railroad Revitalization and
Ante, p. 1945. Regulatory Reform Act of 1976 (45 U.S.C. 826 through 829) are
amended by—
(A) inserting "employee or employer-shipper group" immedi-
ately after "railroad wherever it appears;
(B) inserting "employee or employee-shipper groups" immedi-
ately after "railroads" wherever it appears; and
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1947
(C) inserting "employee or employee-shipper group's" immedi-
ately after "railroad's" wherever it appears.
(4) Section 505(d) of the Railroad Revitalization and Regulatory
Reform Act of 1976 (45 U.S.C. 825(d)) is amended by redesignating Ante, p. 1945.
paragraph (3) as paragraph (4) and by inserting after paragraph (2)
the following new paragraph:
"(3) In the case of a Government authority that applies for financial
assistance from funds made available pursuant to section 509(b)(2) for Ante, p. 1945.
the purchase or rehabilitation of railroad lines purchased under
section 10910 of title 49, United States Code, financing pursuant to ^"^e- P 1939.
this section shall be in the form of purchase by the Secretary of bonds
or other debt obligations issued for such purpose by such Government
authority.".
(5) Paragraph (4) of section 505(d) of the Railroad Revitalization and
Regulatory Reform Act of 1976 (45 U.S.C. 725(d)), as redesignated by 45 use 825.
this subsection, is amended by inserting ", bonds, and other debt
obligations" immediately after "trustee certificates".
(d) Section 501 of the Railroad Revitalization and Regulatory
Reform Act of 1976 (45 U.S.C. 821), as amended, is further amended
by-
(1) striking out "and" at the end of paragraph (7);
(2) inserting "acquisition or sale of assets or securities," imme-
diately after "merger," in paragraph (8);
(3) striking out the period at the end of paragraph (8) and
inserting in lieu thereof a semicolon; and
(4) adding at the end thereof the following new paragraphs: Definitions.
"(9) 'consolidation' means the combination of separate rail
facilities and the abandonment of the excess facilities, except
that such term does not include the combination by a single
railroad of multiple tracks into fewer tracks where the tracks do
not constitute separate physical and operating lines of railroad;
and
"(10) 'coordination' means the combination of rail freight
traffic flows through the use of joint facilities arrangements or
internally that result in a reduction of service on at least one
facility and includes arrangements for joint use of tracks or other
facilities and the acquisition or sale of assets.".
(e) The first sentence of section 511(a) of the Railroad Revitalization
and Regulatory Reform Act of 1976 (45 U.S.C. 831(a)) is amended by
inserting immediately after "equipment" the following: "(which
includes but is not limited to computerized car management
systems)".
TRANSACTION ASSISTANCE
SEC. 406. Section 505(h) of the Railroad Revitalization and Regula-
tory Reform Act of 1976 (45 U.S.C. 825(h)) is amended by adding at the
end thereof the following new paragraphs:
"(5) Financial assistance made available under paragraph (1)(B) of
this subsection may be used to purchase, for purposes of rail banking,
properties of the Milwaukee Railroad located in the State of Montana
with respect to which an interest in future rail common carrier
operations has been evidenced.
"(6) Applications for rail banking shall be treated equally with
other applications for transaction assistance."
94 STAT. 1948 PUBLIC LAW 96-448—OCT. 14, 1980
ELECTRIFICATION LOAN GUARANTEES
SEC. 407. Section 211(i) of the Regional Rail Reorganization Act of
1973 (45 U.S.C. 721(i)) is amended—
(1) by inserting "or any other railroad" immediately after "the
Corporation" the first place it appears;
(2) by inserting "or such railroad" immediately after "the
Corporation" the second and third places it appears; and
(3) by inserting immediately after the first sentence the follow-
ing new sentences: "Upon application by the Corporation or by
any railroad in reorganization in the region which receives a
loan under section 211(a) of this Act, the Secretary shall, pursu-
ant to the provisions of and within the obligational limitations
45 use 831-833. contained in sections 511 through 513 of such Act, guarantee
obligations of the Corporation or such railroad for purposes of
making capital improvements to coal export facilities.".
AMENDMENT TO THE REGIONAL RAIL REORGANIZATION ACT OF 1973
SEC. 408. (a) The second sentence of section 211(d) of the Regional
Rail Reorganization Act of 1973 (45 U.S.C. 721(d)) is amended by
inserting "is not required to make the findings with respect to
subsections (e)(3) and (f) and" immediately after "the Association"
the first place it appears.
(b) Section 211(d)(2) of the Regional Rail Reorganization Act of 1973
(45 U.S.C. 721(d)(2)) is amended by striking out "$4,000,000" and
inserting in lieu thereof "$7,500,000".
(c) The last sentence of section 211(d) of the Regional Rail Reorgani-
zation Act of 1973 (45 U.S.C. 721(d)) is amended by striking out "1980"
and inserting in lieu thereof "1981".
FEDERAL ASSISTANCE REPORT
Submittal to SEC. 409. Within 90 days after the end of each fiscal year, the
49'ifsr^ifi'i4 Secretary of Transportation shall submit a report to the Congress
listing the specific Federal assistance provided the railroad industry
during such fiscal year. Each such report shall set forth the reasons
for each Federal loan or grant and explain the way in which such
loan or grant contributed to the overall goal of providing a safe and
efficient transportation system.
TITLE V—CONRAIL TITLE V LABOR PROTECTION
MONTHLY DISPLACEMENT ALLOWANCE
Pay rate. SEC. 501. Section 505(b) of the Regional Rail Reorganization Act of
1973 (45 U.S.C. 7750))) is amended to read as follows:
"(b) MONTHLY DISPLACEMENT ALLOWANCE.—A protected employee
shall be paid a monthly displacement allowance for any calendar
month within the period identified in subsection (c) of this section in
which the employee is deprived of employment or adversely affected
with respect to such employee's compensation, in accordance with the
following provisions:
"(1)(A) Effective on the effective date of the Staggers Rail Act
Ante, p. 1895. of 1980, the protected rate of pay of a protected nonoperating
employee (other than a maintenance-of-way employee) who has
been deprived of employment or adversely affected with respect
to such employee's compensation shall be based on the rate of
pay of the position held by the employee on September 1,1979, or
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1949
if the employee held no position on that date, the rate of pay of
the last position held by the employee prior to that date. A
guaranteed hourly rate of pay will be computed for each
protected employee, based on the rate described in the preceding
sentence, and will be (i) the actual hourly rate for hourly rated
employees, (ii) the daily rate divided by 8 for daily rated employ-
ees, and (iii) the monthly rate divided by the working days in the
claim month, further divided by 8, in the case of monthly rated
employees. For employees occupying relief positions, the guaran-
tee shall be computed on the basis of the weighted average daily
rate of the positions relieved. Extra list employees will be
guaranteed the extra list rate.
"(B) In the event a protected employee's position is abolished or
such employee is displaced and is thereby required to occupy a
position paying an hourly rate that is less than such employee's
guaranteed hourly rate, the protected employee shall be paid the
difference between the hourly rate of pay of the position such
employee is occupying and his guaranteed hourly rate for all
hours included in the straight time work schedule of such
employee's position for the month of claim, less any time lost on
account of voluntary absences other than vacations. Hours
worked in excess of the straight time work schedule shall be paid
in addition to the guarantee at the rate applicable to the position
occupied, as provided for in the applicable collective bargaining
agreement.
"(C) For any month or portion thereof in which a protected
employee is deprived of employment, the protected employee
shall be paid such employee's guaranteed hourly rate for the
number of hours such employee would have worked in the
straight time work schedule of such employee's previously held
position.
"(D) Notwithstanding the provision that the protected rate
shall be the rate of the position held on or immediately preceding
September 1, 1979, if a protected employee becomes the perma-
nent incumbent of a higher rated position and is not disqualified
therefrom, the higher rate shall become such employee's
protected rate.
"(2) Notwithstanding paragraph (1) of this subsection, effective
on the effective date of the Staggers Rail Act of 1980, a protected Ante, p. 1895.
maintenance-of-way employee shall be afforded his average
monthly compensation, which is defined as the total compensa-
tion received by such employee during the 12 months immedi-
ately preceding January 1,1975, divided by his total time paid for
during that period and multiplied by 174 or by his average
monthly time paid for, whichever is less, and adjusted to reflect
subsequent general wage increases. If a protected employee is
deprived of employment or if the employee's straight-time com-
pensation in his current position is less in any month than the
employee's average monthly compensation, the employee shall
be paid the difference between his straight-time earnings, if any,
and 80 percent of the average monthly compensation, less any
time lost on account of voluntary absences other than vacations.
If, at the close of the calendar year, the sum of the protected
employee's annual straight-time compensation, monthly dis-
placement allowance payments and offsets applicable pursuant
to this title is less than the employee's average monthly compen-
sation multiplied by 12, the employee shall receive an additional
payment representing the difference. If in the previous calendar
94 STAT. 1950 PUBLIC LAW 96-448—OCT. 14, 1980
year an employee has received displacement allowance pay-
ments in excess of his annual entitlement, the excess payments
shall be recovered from any current or future entitlement to
monetary benefits afforded by this title, exclusive of benefits
45 use 775. afforded by section 505(g) of this title.
"(3) Effective on the effective date of the Staggers Rail Act of
Ante, p. 1895. 1980 a protected operating employee (as defined in Interstate
Commerce Commission classifications 107 through 128) who has
been deprived of employment or adversely affected with respect
to such employee's compensation shall be afforded his average
monthly compensation computed in accordance with this subsec-
tion as in effect prior to such effective date, but subject to a
maximum amount equal to one-twelfth of the average annual
earnings of all employees in the Interstate Commerce Commis-
sion classification, computed by cumulating the employee earn-
ings reported to the Commission by the Corporation on a
monthly basis for calendar year 1977 for the Interstate Com-
merce Commission classification of operating service in which
such employee performed the preponderance of such employee's
work in calendar year 1974, increased by applicable general wage
increases. If the employee performed no operating service in
1974, the Interstate Commerce Commission classification shall
be determined by the preponderance of such employee's operat-
ing service in an immediately preceding calendar year. If the
average monthly compensation of a protected operating
employee exceeds the maximum amount described in the first
sentence of this paragraph, the average monthly compensation
of the employee will be reduced to such maximum amount for
purposes of computing such employee's monthly displacement
allowance, if any. If the average monthly compensation of a
protected operating employee is less than such maximum
amount, the average monthly compensation of the employee will
be used to compute such employee's monthly displacement
allowance, if any. If a protected employee is deprived of
employment, or if the employee is adversely affected with
respect to his compensation such that the compensation in such
employee's current position is less in any month than the
average monthly compensation of the employee or such maxi-
mum amount, whichever is less, the employee shall be paid 75
per centum of the difference between such employee's earnings,
if any, and the lesser figure, minus any time lost on account of
voluntary absences other than vacations. If at the close of the
calendar year the sum of the protected employee's annual
earnings, monthly displacement allowance payments, and offsets
applicable pursuant to this title is less than such employee's
average monthly compensation subject to the maximum amount
and multiplied by 12, the employee shall receive an additional
payment representing the difference. In the computation of the
annual payment, if during the calendar year an employee haj
been force assigned to, or has been required to exercise seniority
to, a position in an Interstate Commerce Commission classifica-
tion with a lesser maximum amount than the maximum amount
applicable to such employee's 1974 Interstate Commerce Com-
mission classification, such employee shall be paid the difference
without credit being taken for compensation earned by virtue of
actual working hours in the calendar year in excess of the
number of hours paid for in such employee's average monthly
compensation multiplied by 12 or such employee's annual 1977
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1951
maximum amount, whichever is less. An employee's compensa-
tion for purposes of this subsection shall not include savings
sharing productivity payments received pursuant to paragraph
(t) of the Crew Consist Agreement between the Corporation and
the United Transportation Union dated September 8,1978. If, in
the previous calendar year, an employee has received displace-
ment allowance payments in excess of such employee's annual
entitlement, the excess pa5maents shall be recovered from any
current or future entitlement to monetary benefits afforded by
this title, exclusive of benefits afforded by subsection (g) of this
section.
"(4) Effective on the effective date of the Staggers Rail Act of
1980, a protected noncontract employee who has been deprived of Ante, p. 1895.
employment or adversely affected with respect to such em-
ployee's compensation shall retain his average monthly com-
pensation and monthly displacement allowance computed in
accordance with this subsection as in effect prior to such effective
date. In the event such noncontract employee exercises or has
exercised seniority in a craft or class of operating employees,
such employee's entitlement to a monthly displacement allow-
ance and fringe benefits, and such employee's eligibility for
transfer, shall be the same as the entitlement and eligibility of
other protected employees in the craft or class in which seniority
is exercised. In the event such noncontract employee exercises or
has exercised seniority in a craft or class of nonoperating
employees, the entitlement of such employee to a monthly
displacement allowance and fringe benefits, and such employee s
eligibility for transfer, shall be consistent with the entitlement
and eligibility of other protected employees in the craft or class
in which seniority is exercised, except that the protected rate of
pay shall be based on the rate of pay of the position first obtained
through the exercise of seniority, rather than the rate of any
position held on or prior to September 1,1979.
"(5) Notwithstanding the preceding provisions of this subsec-
tion, employees who, prior to September 1,1979, accepted trans-
fer to positions requiring a change of residence pursuant to
subsection (d) of this section, shall retain their average monthly
compensation and monthly displacement allowance computed in
accordance with this subsection prior to the effective date of the
Staggers Rail Act of 1980.
"(6) In determining compensation in a protected employee's
current employment, such employee shall be treated as occupy-
ing the position producing the highest rate of pay to which such
employee's qualifications and seniority entitle the employee
under the applicable collective bargaining agreement and which
does not require a change in residence. A protected operating
employee will be considered to be occupying the position produc-
ing the highest rate of pay if the employee occupies a position
producing compensation equal to such employee's average
monthly compensation, subject to the maximum amount.
"(7) With respect to a protected employee who has been
deprived of employment, the monthly displacement allowance
shall be reduced by (A) the full amount of any unemployment
compensation benefits received by such employee, and (B) an
amount equivalent to any outside earnings of such employee.
"(8) A protected employee's average monthly compensation or
protected rate of pay shall be adjusted from time to time
thereafter to reflect subsequent general wage increases.
79-194 O—81—pt. 2 43 : QL3
94 STAT. 1952 PUBLIC LAW 96-448—OCT. 14, 1980
"(9) The average monthly compensation or protected rate of
pay provided by this section shall in no event exceed $2,500 in
any month, except that such amount shall be adjusted to reflect
general wage increases subsequent to April 1,1976.
"(10) A protected employee and his representative shall be
furnished with such employee's protected rate of pay, or average
monthly compensation and average monthly time paid for,
subject to the maximum amount, computed in accordance with
the terms of this subsection. Each protected employee who has
been deprived of employment or his representative and the
employer shall agree upon a procedure by which the employee
shall keep the employer currently informed of the unemploy-
ment compensation benefits received by such employee and the
earnings of such employee in employment other than with such
employer.
(11) In the case of a supplemental transaction—
"(A) with respect to an employee described in paragraph
(1) of this subsection who was not employed on September 1,
1979, the protected rate of pay of such employee shall be
based on the rate of pay of the position held by such
employee on the first day of the first month after September
1979 in which such employee was employed;
"(B) with respect to an employee described in paragraph
(2) of this subsection who was not employed during the 12
months immediately preceding January 1,1975, the average
monthly compensation of such employee shall be determined
on the basis of the first 12-month period after January 1,
1974, during which such employee was employed; and
"(C) with respect to an employee described in paragraph
(3) of this subsection—
"(i) if such employee was employed during the 12
months immediately preceding January 1, 1975, the
average monthly compensation of such employee shall
be determined on the basis of such 12-month period; and
"(ii) if such employee was not employed during the 12
months immediately preceding January 1, 1975, the
preponderance of work of such employee shall be de-
termined on the basis of the first 12-month period after
January 1, 1974, during which such employee was
employed.".
DURATION OF MONTHLY DISPLACEMENT ALLOWANCE
SEC. 502. Section 505(c) of the Regional Rail Reorganization Act of
1973 (45 U.S.C. 775(c)) is amended to read as follows:
"(c) DURATION OF MONTHLY DISPLACEMENT ALLOWANCE.—The
monthly displacement allowance provided for in subsection (b) of this
section shall, in the case of a protected employee with 5 or more years
of service on the effective date of this Act, continue until the
attainment of age 65 by such employee, and shall, in the case of a
protected employee who has less than 5 years of service on such date,
continue for a period equal to the employee's total prior years of
service, except that such monthly displacement allowance—
"(1) shall terminate upon the protected employee's death,
retirement, resignation, or dismissal for cause;
"(2) shall not be paid with respect to any period of disciplinary
suspension for cause, failure to work due to illness or disability,
voluntary furlough, or failure to retain or obtain a position
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1953
available to the employee by the exercise of such employee's
seniority rights in accordance with the provisions of this section;
"(3) shall not be paid to a protected employee deprived of
employment with respect to any period of failure to work due to
strike, fire, flood, snowstorm, hurricane, earthquake, tornado, or
other similar natural occurrence that causes a suspension of
operations in whole or in part and precludes performance of the
work which would be performed by the incumbents of the
positions to be abolished or the work which would be performed
by the employees involved in the force reductions (but the
payment of monthly displacement allowances shall be resumed
upon termination of the emergency); and
"(4) shall not be paid with respect to any month that com-
mences after the effective date of the Staggers Rail Act of 1980 Ante, p. 1895.
for which the employee has failed to make a claim for such
allowance within 3 full calendar months (unless otherwise
agreed upon by the employee or his representative and the
employer) after the last day of the month for which such
allowance is sought, except that such 3-month limit shall not
apply to any claim which is the subject of or is based upon an
arbitration decision issued pursuant to section 507 of this title. 45 USC 777.
Unless otherwise agreed upon by the employee or his representative
and the employer, the entitlement of an employee to an allowance
shall be approved or denied within 150 days after the claim therefor is
made if such claim is filed during the 12-month period beginning on
the effective date of the Staggers Rail Act of 1980, and within 90 days
after the claim therefor is made if such claim is filed after such 12-
month period. Any claim not approved or denied at the expiration of
the time limits described in the preceding sentence shall be deemed
approved.".
TRAINING AND TRANSFER
SEC. 503. (a)(1) Section 505(d) (1) and (3) of the Regional Rail
Reorganization Act of 1973 (45 U.S.C. 775(d) (1) and (3)) are each
amended by inserting "or other employers with emplovees protected
under this section" immediately after "Corporation wherever it
appears.
(2) Section 505(d)(1) of the Regional Rail Reorganization Act of 1973
(45 U.S.C. 775(d)(1)) is amended by inserting "or the system of other
employers with employees protected under this section" immediately
after Corporation's system".
(3) Section 505(d)(2) of the Regional Rail Reorganization Act of 1973
(45 U.S.C. 775(d)(2)) is amended by adding at the end thereof the
following new sentence: "Notwithstanding any other provision of this
subsection, a protected employee of the National Railroad Passenger
Corporation shall not be required to transfer to a location outside the
seniority district of such protected employee.".
(b) Section 505(d)(4) of the Regional Rail Reorganization Act of 1973
(45 U.S.C. 775(d)(4)) is amended by striking out "Transfers" and
inserting in lieu thereof "Except as provided in paragraph (5) of this
subsection, transfers".
(c) Section 505(d) of the Regional Rail Reorganization Act of 1973
(45 U.S.C. 775(d)(4)), as amended, is further amended by adding at the
end thereof the following new paragraph:
"(5) In the case of a marine craft or class on the Corporation's
system, or in the craft or class of a Penn Truck Lines, Incorporated,
employee, transfers to vacancies requiring a change in residence
shall be subject to the following:
94 STAT. 1954 PUBLIC LAW 96-448—OCT. 14, 1980
"(A) The vacancy shall be first ofiered to the junior qualified
protected employee or employees deprived of employment in the
seniority district where the vacancy exists, and each such
employee shall have 20 days to elect one of the options set forth
in paragraph (1) of this subsection. The Corporation shall deter-
mine the number of junior qualified protected employees de-
prived of employment (not to exceed four employees per offer)
who will be included in the offer of transfer. The vacancy will be
awarded to the most junior qualified protected employee who
accepts transfer. Other qualified protected employees who have
accepted the transfer will retain their status as employees
deprived of employment. Employees junior to the acceptor who
have elected one of the options set forth in paragraph (1) of this
subsection shall retain the option. If the vacancy is not filled, it
may be again offered in inverse seniority order to remaining
qualified protected employee(s) deprived of employment (not to
exceed four employees per offer) in the seniority district.
"(B) If there are no qualified protected employees deprived of
employment in the seniority district where the vacancy exists,
the vacancy may be offered in inverse seniority order to qualified
protected employees deprived of employment (not to exceed four
employees per offer) on the system, in accordance with the
procedure in subparagraph (A) of this paragraph. Employees
offered transfer pursuant to this paragraph will be afforded 30
days to elect one of the options set forth in paragraph (1) of this
subsection.
"(C) The provisions of this paragraph shall not prevent the
adoption of other procedures pursuant to an agreement made by
the Corporation and representatives of the class or craft of
employees involved.
"(D) When no bona fide vacancies exist in such craft or class,
the Corporation may offer such employee comparable employ-
ment for which the employee is qualified, or for which the
employee can be trained, in another craft or class. The Corpora-
tion shall first attempt to locate a comparable position in a
seniority district which encompasses the employee's last work
location, and if successful, a transfer notice may be tendered
pursuant to subparagraph (A) of this paragraph. If no such
position exists, the Corporation may tender the employee a
transfer notice involving a position elsewhere on the system
pursuant to subparagraph (B) of this paragraph. In the event it is
necessary to train an employee after such employee's acceptance
of a position pursuant to this paragraph, such training shall be
provided by the Corporation at no cost to the employee.".
(d) Section 505(i)(l) of the Regional Rail Reorganization Act of 1973
(45 U.S.C. 775(i)(l)) is amended by adding at the end thereof the
following new sentences: "The Corporation may simultaneously offer
a position to not more than 4 protected noncontract employees. The
position shall be given to the protected employee accepting transfer
whom the Corporation considers to be best qualified for the particular
position involved. Other protected employees who have accepted the
transfer shall retain their previous status. Employees who have
elected a voluntary suspension of employment at their home location
in lieu of protective benefits or a severance of employment shall
retain the option elected.".
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1955
PAYMENT, AUDIT, AND REPORT
SEC. 504. Section 509 of the Regional Rail Reorganization Act of
1973 (45 U.S.C. 779) is amended to read as follows:
PAYMENT, AUDIT, AND REPORT
"SEC. 509. (a) PAYMENT.—The Corporation, the Association (where
applicable), replacement operators, and acquiring railroads, as the
case may be, shall be responsible for the actual payment of all
allowances, expenses, and costs provided protected employees pursu-
ant to the provisions of this title. The Corporation, the Association
(where applicable), replacement operators, and acquiring railroads
shall then be reimbursed for the actual amounts paid to, or for the
benefit of, protected employees, pursuant to the provisions of this
title (including such amounts paid by the employer prior to the
effective date of the Staggers Rail Act of 1980 and training costs Ante, p. 1895.
incurred by the Corporation pursuant to section 505(d)(4)(D) of this 45 u s e 775.
title), other than provisions with respect to employee pension bene-
fits, not to exceed an aggregate sum of $485,000,000, by the Railroad
Retirement Board, upon certification to such Board in such detail as
the Board may reasonably require, by the Corporation, the Associ-
ation (where applicable), replacements operators, and acquiring rail-
roads, of the amounts paid such employees, except that the aggregate
amount of reimbursements made by the Board for the payment of
monthly displacement allowances in the period after the effective
date of the Staggers Rail Act of 1980 shall not exceed $180,000,000.
There is authorized to be appropriated to the Secretary annually such Appropriation
sums as may be required to meet the obligations payable under this authorization.
title, not to exceed the aggregate sum of $485,000,000. Upon the
exhaustion of such authorization, the Corporation, the Association
(where applicable), replacement operators, and acquiring railroads
shall retain responsibility for the pajonent of benefits otherwise
reimbursable under this title, but they shall not be reimbursed
therefor. There is further authorized to be appropriated to the
Secretary such sums as may be necessary to provide for additional
administrative expenses to be incurred by the Railroad Retirement
Board in the performance of its functions under this section. Appro-
priations authorized under this section may be allocated by the
Secretary to the Railroad Retirement Board.
"(b) AUDIT.—Beginning October 1, 1980, the Association shall
conduct a program audit of the payment of benefits pursuant to this
title and shall evaluate the effectiveness of the provisions of this title
in improving the Corporation's management of certain protected
employees in its workforce who are entitled to receive monthly
displacement allowances. Such audits and evaluations shall be con-
ducted in accordance with such rules and regulations as the Associ-
ation may prescribe. The representatives of the Association shall Records,
have access to all books, accounts, records, reports, files, and other accessibility.
papers, things, or property belonging to, or in use by or in connection
with, the Corporation, replacement operators, acquiring railroads, or
the Railroad Retirement Board which pertain to the benefits pro-
vided protected employees pursuant to this title and which are
necessary to facilitate such audit and evaluation.
"(c) REPORT.—The Association shall transmit to the. Congress and Transmittal to
the President, not later than 90 days after the end of each fiscal year, Congress and
the President.
a comprehensive and detailed report on the payment of benefits
under this title and the effectiveness of the provisions of this title in
94 STAT. 1956 PUBLIC LAW 96-448—OCT. 14, 1980
improving the Corporation's management of certain protected
employees in its workforce who are entitled to receive monthly
displacement allowances.".
RAILROAD HIRING
SEC. 505. Title V of the Regional Rail Reorganization Act of 1973 (45
U.S.C. 771 et seq.) is amended by adding at the end thereof the
following new section:
"RAILROAD HIRING
45 use 780. "SEC. 510. Any protected employee of the Corporation and any
employee of the Corporation who is separated or furloughed from his
employment with the Corporation (other than for cause) shall, unless
found to be less qualified than other applicants, have the first right of
hire by any other railroad that is subject to regulation by the
Commission for any vacancy that is not covered by (1) an affirmative
action plan, or a hiring plan designed to eliminate discrimination,
that is required by Federal or State statute, regulation, or Executive
order, or by the order of a Federal court or agency, or (2) a permissible
voluntary affirmative action plan. For purposes of this section, a
railroad shall not be considered to be hiring new employees when it
recalls any of its own furloughed employees.".
SINGLE COLLECTIVE-BARGAINING AGREEMENT
SEC. 506. Section 504(d) of the Regional Rail Reorganization Act of
1973 (45 U.S.C. 774(d)) is amended to read as follows:
"(d) N E W COLLECTIVE-BARGAINING AGREEMENTS.—Not later than
60 days after the effective date of any conveyance pursuant to the
provisions of this Act, the representatives of the various classes of
crafts of the employees of a railroad in reorganization involved in a
conveyance and representatives of the Corporation shall commence
negotiation of a new single collective-bargaining agreement for each
class and craft of employees covering the rate of pay, rules, and
working conditions of employees who are employees of the Corpora-
tion. Such collective-bargaining agreement shall include appropriate
provisions concerning rates of pay, rules, and working conditions, but
shall not include any provisions for job stabilization resulting from
any transaction effected pursuant to this Act which may exceed or
conflict with those established herein. Negotiations with respect to
such single collective-bargaining agreement, and any successor
thereto, shall be conducted systemwide.".
EMPLOYEE PROTECTION PAYMENTS
45 use 779 SEC. 507. Notwithstanding any other provision of law, the
"°*® Consolidated Rail Corporation and other employers with employees
protected under the provisions of title V of the Regional Rail
45 use 771. Reorganization Act of 1973 shall, until the effective date of this Act,
continue to make payments for employee protection under such Act
in accordance with the provisions of such Act which were in effect on
January 1, 1979. Notwithstanding any other provision of law, such
Corporation and employers shall be reimbursed for such payments in
accordance with the provisions of section 509(a) of the Regional Rail
Ante, p. 1955. Reorganization Act of 1973 (45 U.S.C. 779(a)).
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1957
TECHNICAL AMENDMENTS
SEC. 508. (aXD The item relating to section 509 in the table of
contents of the Regional Rail Reorganization Act of 1973 (45 U.S.C.
701 et seq.) is amended to read as follows:
"Sec. 509. Payment, audit, and report.".
(2) The table of contents of the Regional Rail Reorganization Act of
1973 (45 U.S.C. 701 et seq.) is amended by inserting immediately after
the item relating to section 509 the following new item:
"Sec. 510. Railroad hiring.".
(b) Section 102(16) of the Regional Rail Reorganization Act of 1973
(45 U.S.C. 702(16)) is amended to read as follows:
"(16) 'Secretary' means the Secretary of Transportation or the "Secretary."
designated representative of the Secretary;".
(c) Section 201 of the Regional Rail Reorganization Act of 1973 (45
U.S.C. 711) is amended—
(1) by amending subsection (dX2) to read as follows:
"(2) three Government members, who shall be (A) the Secre- United States
tary, acting directly or at any time through the Deputy Secretary Railway
Association,
of Transportation, the General Counsel of the Department of Board of
Transportation, the Federal Railroad Administrator, or the Directors.
Deputy Administrator of the Federal Railroad Administration,
(B) the Secretary of the Treasury, acting directly or at any time
through an officer of the Department of the Treasury who has
been appointed with the advise and consent of the Senate, and (C)
the Chairman of the Commission, acting directly or at any time
through the Vice Chairman of the Commission; and";
(2) striking out "through their respective Deputy Secretaries"
from the first sentence of subsection (i) and inserting in lieu
thereof "in the case of the Secretary, through the Deputy
Secretary of Transportation, the General Counsel of the Depart-
ment of Transportation, the Federal Railroad Administrator, or
the Deputy Administrator of the Federal Railroad Admin-
istration, and, in the case of the Secretary of the Treeisury,
through an officer of the Department of the Treasury who has
been appointed with the advise and consent of the Senate"; and
(3) by striking out the first sentence of subsection (jX4).
(d) Section 501 of the Regional Rail Reorganization Act of 1973 (45
U.S.C. 771) is amended—
(1) in paragraph (6), by inserting immediately after "disabil-
ity," the following: "failure to work due to strike, fire, flood,
snowstorm, hurricane, earthquake, tornado, or other similar
natural occurrence that causes a suspension of operations in
whole or in part and precludes performance of the work which
would be performed by the incumbents of the positions to be
abolished or the work which would be performed by the employ-
ees involved in the force reductions,"; and
(2) by striking out "and" at the end of paragraph (10), by
striking out the period at the end of paragraph (11) and inserting
in lieu thereof '; and", and by adding at the end thereof the
following new paragraph:
"(12) 'compensation' means earnings in employment subject to "Compensation.'
the Railroad Retirement Act.". 48 Stat. 1283.
(e) Section 507 of the Regional Rail Reorganization Act of 1973 (45 45 use 201-208
U.S.C. 777) is amended by inserting ", section 5090)), or section "°^^^
509(c)" immediately after "section 504(d)".
94 STAT. 1958 PUBLIC LAW 96-448—OCT. 14, 1980
(f) The first sentence of section 403(d)(1) of the Rail Passenger
Service Act (45 U.S.C. 563(d)(1)) is amended by striking out "if such
State" and all that follows through "service".
TITLE VI—EXPEDITED SUPPLEMENTAL TRANSACTION
PROPOSALS
EXPEDITED SUPPLEMENTAL TRANSACTION PROPOSALS
SEC. 601. (a) Section 305 of the Regional Rail Reorganization Act of
1973 (45 U.S.C. 745) is amended by adding at the end thereof the
following new subsection:
Rail properties "(f) EXPEDITED PROPOSALS.—(1) Within 240 days after the effective
in Connecticut date of the Staggers Rail Act of 1980, the Secretary, after providing
and Rhode
Island, transfer. an opportunity for comments from interested parties, shall deter-
Ante, p. 1895. mine whether to initiate a proposal for a supplemental transaction
under this section for the transfer of all rail properties of the
Corporation in the States of Connecticut and Rhode Island to another
Conditions. railroad in the region, If the Secretary determines that—
"(A) the proposed transferee railroad is financially and oper-
ationally capable of assuming the freight operations and freight
service obligations of the Corporation on a financially self-
sustaining basis;
"(B) the proposed transfer would promote the establishment
and retention of a financially self-sustaining rail system in the
States of Connecticut and Rhode Island adequate to meet the
needs of such States; and
"(C) the proposed transfer is consistent with the goals set forth
45 u s e 716. in section 206(a)(8) of this Act,
the Secretary shall develop such a proposal and m ^ , after providing
the Association, the Commission, and the States of Connecticut and
Rhode Island an opportunity to review and comment on such pro-
posal, petition the special court for an order to carry out such
proposal.
Price "(2) The Secretary shall establish a fair and equitable price for any
establishment. rail properties transferred pursuant to a proposal developed under
this subsection.
"(3) If the special court determines that a proposal developed under
this subsection is fair and equitable, meets the requirements of this
subsection, and is in the public interest, it shall issue such orders as
may be necessary to carry out such proposal. The provisions of
paragraphs (2)-(6) of subsection (d) of this section shall apply to the
determination of the special court under this subsection, except that
the standards for such determination shall be those set forth in this
paragraph.
Agreement. "(4) In complying with the requirements of subsection (dX7) of this
section with respect to the application of the provisions of title V of
45 u s e 771. this Act to supplemental transactions, the parties to an expedited
supplemental transaction under this subsection and the representa-
tives of the employees affected thereby shall enter into a new
45 u s e 778. agreement pursuant to section 508 of this Act and shall not be bound
by the terms of any agreement executed under such section 508 and
Ante, p. 1895. in effect on the date of enactment of the Staggers Rail Act of 1980.".
(b) Section 102(19) of the Regional Rail Reorganization Act of 1973
(45 U.S.C. 702(19)) is amended by striking out ^, within 6 years after
the date on which the special court orders conveyances of rail
properties to the Corporation".
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1959
TITLE VII—MISCELLANEOUS PROVISIONS
ROCK ISLAND AND MILWAUKEE RAILROADS AMENDMENTS
SEC. 701. (a)(l} The Rock Island Railroad Transition and Employee 45 USC lOOi
Assistance Act (45 U.S.C. 1001 et seq.) is amended by redesignating ^°^-
section 124 as section 125 and by inserting immediately after section ^"^e. P 409.
123 the following new section:
"JUDICIAL REVIEW
"SEC. 124. (a) Notwithstanding any other provision of law, any 45 use 1018.
appeal from—
"(1) any decision of the bankruptcy court with respect to the
constitutionality of any provision of this Act; and
"(2) any decision of the court having jurisdiction over the
reorganization of the Milwaukee Railroad with respect to the
constitutionality of the Milwaukee Railroad Restructuring Act
(45 U.S.C. 901 et seq.),
shall be taken to the United States Court of Appeals for the Seventh
Circuit.
"(b) If appeals are taken from decisions described in subsection (a)
of this section involving section 106 or 110 of this title or section 9 or Ante, pp. 40i,
15 of the Milwaukee Railroad Restructuring Act, the court of appeals 45^usc 908 914
shall determine such appeals in a consolidated proceeding, sitting en
banc, and shall render a final decision no later than 60 days after the
date the last such appeal is filed.
"(c) Nothing in this Act or in the Milwaukee Railroad Restructur-
ing Act (45 U.S.C. 901 et seq.) shall limit the right of any person to
commence an action in the United States Court of Claims under
section 1491 of title 28, United States Code (commonly referred to as
the Tucker Act).".
(2) Section 110(e) of the Rock Island Railroad Transition and
Employee Assistance Act (45 U.S.C. 1008(e)) is amended by inserting Ante, p. 403.
"to employees" immediately after "liability".
(3) Section 15(e) of the Milwaukee Railroad Restructuring Act (45
U.S.C. 914(E)) is amended by inserting "to employees" immediately
after "liability".
0))(1) Section 106 of the Rock Island Railroad Transition and
Employee Assistance Act (45 U.S.C. 1005) is amended to read as Ante, p. 401.
follows:
"EMPLOYEE PROTECTION AGREEMENTS
"SEC. 106. (a) No later than 5 days after the date of enactment of the
Staggers Rail Act of 1980, in order to avoid disruption of rail service Ante, p. 1895.
and undue displacement of employees, the Rock Island Railroad and
labor organizations representing the employees of such railroad with
the assistance of the National Mediation Board, may enter into an
agreement providing protection for employees of such railroad who
are adversely affected as a result of a reduction in service by such
railroad. Such employee protection may include, but need not be
limited to, employee relocation incentive compensation, moving
expenses, and separation allowances.
"(b) If the Rock Island Railroad and the labor organizations
representing the employees of such railroad are unable to enter into
an employee protection agreement under subsection (a) of this section
within 5 days after the date of enactment of the Staggers Rail Act of
94 STAT. 1960 PUBLIC LAW 96-448—OCT. 14, 1980
1980, the matter shall be immediately submitted to the Commission.
The Commission shall impose upon the parties by appropriate order a
fair and equitable arrangement with respect to employee protection
no later than 15 days after the date of enactment of the Staggers Rail
Ante, p. 1895. Act of 1980, unless the Rock Island Railroad, and the authorized
representatives of its employees have by then entered into a labor
"Fair and protection agreement. For purposes of this subsection, the term 'fair
equitable." and equitable' means no less protective of the interests of employees
than protection established by and pursuant to section 9 of the
Milwaukee Railroad Restructuring Act (45 U.S.C. 908), subject to the
Ante, p. 403. limitations set forth in section 110 of this title.
"(c) If an employee protection arrangement is imposed by the
Commission under subsection (b) of this section, the bankruptcy court
shall immediately authorize and direct the Rock Island Railroad
trustee to, and the Rock Island Railroad trustee and the labor
organizations representing the employees of the railroad shall, imme-
diately implement such arrangement.
"(d) Any order of the Commission under subsection (b) of this
section and any order of the bankruptcy court under subsection (c) of
this section may be appealed only to the United States Court of
Appeals for the Seventh Circuit. Any such appeal to such court of
appeals shall be filed within 5 days after the date of entry of the order
of the Commission or the bankruptcy court, as the case may be, and
such court of appeals shall finally determine such appeal within 60
days after the date such appeal is filed.
Employee "(e)(1) Any claim of an employee for benefits and allowances under
benefits and an employee protection agreement or arrangement entered into
allowances.
under this section shall be filed with the Board in such time and
manner as the Board by regulation shall prescribe. The Board shall
determine the amount for which such employee is eligible under such
agreement or arrangement and shall certify such amount to the Rock
Island Railroad for pajrment.
"(2) Benefits and allowances under such agreement or arrange-
ment entered into this section shall be paid by the Rock Island
Railroad from its own assets or in accordance with section 110 of this
title, and claims of employees for such benefits and allowances shall
be treated as administrative expenses of the estate of the Rock Island
Railroad.
"(f) The first sentence of section 7(bX'7) of the Railroad Retirement
Act of 1974 (45 U.S.C. 231f[b)(7)) is amended by striking out "Milwau-
kee Railroad Restructuring Act" and inserting in lieu thereof ", the
Milwaukee Railroad Restructuring Act, and the Rock Island Railroad
Transition and Employee Assistance Act.".
(2) Section 108(a) of the Rock Island Railroad Transition and
Ante, p. 402. Employee Assistance Act (45 U.S.C. 1007(a)) is amended by inserting
immediately before the period at the end thereof the following:
"(other than as provided in the agreement entered into in Washing-
ton, District of Columbia, on March 4,1980, entitled 'Labor Protective
Agreement Between Railroads Parties Hereto Involved in Midwest
Rail Restructuring and Employees of Such Railroads Represented by
the Rail Labor Organizations Operating Through the Railway Labor
Executives' Association')".
(3) Section 103(5) of the Rock Island Railroad Transition and
Ante, p. 399. Employee Assistance Act (45 U.S.C. 1002(5)) is amended by inserting
immediately before the period at the end thereof the following: ", the
estate of such Company in its reorganization proceeding, or the
trustee appointed in such proceeding".
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1961
(c)(1) Section 7 of the Milwaukee Railroad Restructuring Act (45
U.S.C. 906) is amended by adding at the end thereof the following new
subsection:
"(h)(1) All obligations to the United States or any agency or
instrumentality of the United States incurred pursuant to this
section by the Milwaukee Railroad or the trustee of the property of
the Milwaukee Railroad shall be waived and canceled when—
"(A) the Milwaukee Railroad is reorganized as an operating
rail carrier; or
"(B) substantially all of the Milwaukee Railroad is purchased.
"(2) For purposes of this subsection, substantially all of the Milwau-
kee Railroad shall be considered as having been purchased when (A)
more than 50 percent of the rail system operated by the Milwaukee
Railroad on the date of enactment of the Staggers Rail Act of 1980 has ^«^e, p. 1895.
been purchased, and (B) more than 50 percent of the employees
employed by the Milwaukee Railroad on such date of enactment have
obtained employment with other rail carriers.".
(2) Section 14 of the Milwaukee Railroad Restructuring Act (45
U.S.C. 913) is amended by redesignating subsection (d) as subsection
(e) and by inserting after subsection (c) the following new subsection:
"(d) There are authorized to be appropriated $15,000,000 for pur- Appropriation
poses of providing transaction assistance in accordance with section authorization.
505(h)(1) (A) and (B) of the Railroad Revitalization and Regulatory
Reform Act of 1976.". Ante, p. 404.
(d) Section 505(h) of the Railroad Revitalization and Regulatory
Reform Act of 1976 (45 U.S.C. 825(h)) is amended—
(1) in paragraph dXA), by striking out "$25,000,000" and
inserting in lieu thereof "$38,000,000";
(2) in paragraph (IXB), by striking out "$18,000,000" and
inserting in lieu thereof "$27,000,000"; and
(3) by amending paragraph (4) to read as follows:
"(4) This subsection shall apply to (A) purchase offers submitted to
the Trustee of the Rock Island Railroad Estate and filed with the
Commission prior to September 15, 1980 (or such other time as the
Secretary considers appropriate), and (B) purchase applications filed
with the Commission prior to September 15,1980 (or such other time
as the Secretary considers appropriate) and approved by the court
having jurisdiction over the reorganization of the Rock Island Rail-
road or the Milwaukee Railroad, as the case may be, and by the
Commission.".
LOAN GUARANTEES
SEC. 702. (a) To promote competition in the transportation of coal, Powder River
the Secretary of Transportation shall, no later than 75 days after the Coal Region,
Mont, and Wyo.
date of the issuance of the final environmental impact statement 45 u s e 831 note.
with respect to the loan application, take final action on any applica-
tion for loan guarantees, under section 511 of the Railroad Revitaliza-
tion and Regulatory Reform Act of 1976, to be used in connection with 45 u s e 831.
joint ownership, construction, or rehabilitation of any facilities
(including support facilities) for a second rail carrier to serve the
Powder River (5oal Region in Montana and Wyoming.
(b)(1) The Secretary of Transportation shall review the proposed ehicago and
Chicago and North Western connector line route and shall not Northwestern
connector line
approve any route which requires the use of any agricultural land route, review.
unless (A) there is no feasible and prudent alternative to the use of
such land, and (B) the proposed route construction plan requires all
possible planning to minimize harm to such agricultural land result-
94 STAT. 1962 PUBLIC LAW 96-448—OCT. 14, 1980
ing from such use. The Secretary of Transportation may not other-
wise disapprove a proposed route for the Chicago and North Western
line under the authority of this subsection. This review of a proposed
route shall be conducted within 90 days sifter the final action
specified in subsection (a) of this section.
Private grade (2)(A) The Secretary shall review the use of any agricultural land
crossings. used in any route for newly constructed line and shall require, to the
maximum extent prudent and feasible, that such railroad provide a
private grade crossing for the convenience of each landowner whose
agricultural holdings are divided by such newly constructed line
when the Secretary finds that such division of property will cause a
substantial disruption to the agricultural use of such land. The
owners of such property shall file a request for such grade crossing
with the Secretarj?^ within 180 days of the final determination of the
route. The finding of the Secretary under this subsection shall be
final.
(B) The Secretary shall render a decision on each request for grade
crossing under this paragraph within 180 days of its receipt. Such
review shall not require the delay of construction of new line under
subsection (a) of this section.
Claims and (c)(1) Notwithstanding any other provision of law, the actions of
judicial review, ^j^g Secretary of Transportation taken pursuant to subsections (a)
and 0^) of this section shall not be subject to judicial review except as
provided in this section.
(2) A claim alleging the invalidity of this section may be brought no
later than the 60th day following the date a final action is taken
pursuant to subsections (a) and (b) of this section.
(3) A claim challenging an action of the Secretary of Transporta-
tion under subsection (a) or (b) of this section may be brought only on
use prec. title 1. the grounds that such action will deny rights under the Constitution
of the United States, is arbitrary, capricious, or an abuse of discre-
tion, exceeds statutory jurisdiction, authority, or limitations, or is
short of statutory right. Such a claim may be brought not later than
the 60th day following the date of such action.
(4) A claim under paragraph (2) or (3) shall be barred unless prior to
the expiration of such time limits, a complaint is filed in the United
States Court of Appeals for the District of Columbia acting as a
special court. Such court shall have exclusive jurisdiction to deter-
mine such proceeding in accordance with the procedures hereinafter
provided, and no other court of the United States, of any State,
territory, or possession of the United States, or of the District of
Columbia, shall have jurisdiction of any such claim in any proceeding
instituted prior to or on or after the date of enactment of this Act.
Hearing. (5) Any such proceeding shall be assigned for hearing and
completed at the earliest possible date, and to the greatest extent
practical shall take precedence over all other matters pending on the
docket of the court at that time, and shall be expedited in every way
by such court, and such court shall render its decision relative to any
claim within 90 days from the date such claim is brought unless such
court determines that a longer period is required to satisfy require-
ments of the Constitution of the United States.
(d) Notwithstanding any other provision of law, the Secretary shall
take the final action described in subsection (a) of this section without
regard to the consent, or lack thereof, of any Committee of the
Congress.
CONRAIL STUDIES AND EMERGENCY FUNDING
Definitions. SEC. 703. (a) For purposes of this section, the term-
45 u s e 747 note.
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1963
(1) "Association" means the United States Railway Associ-
ation;
(2) "Commission" means the Interstate Commerce Commis-
sion;
(3) "Corporation" means the ConsoHdated Rail Corporation;
(4) "rail properties" means assets or rights owned, leased, or
otherwise controlled by the Corporation which are used or useful
in rail transportation service;
(5) "region" has the meaning given such term in section 101(15)
of the Regional Rail Reorganization Act of 1973; and 45 use 702.
(6) "Secretary" means the Secretary of Transportation.
ObXD No later than April 1,1980, the Association and the Corpora- Report to
tion shall each submit a report to the Congress analyzing the impact, Congress.
upon the Corporation, rail service in the region, railroad employees,
the economy of the region, and other rail carriers in the region and
elsewhere, and the Federal budget, of—
(A) no further Federal funding for the Corporation;
(B) continued Federal funding of the rail system of the Corpo-
ration as it is presently structured; and
(C) future Federal funding of the Corporation to the extent
necessary to preserve rail service in the region which can be self-
supporting, without undue interim disruption of operations
which will be maintained.
(2) Each report submitted under paragraph (1) of this subsection
shall contain a description, under each of the Federal funding
alternatives set forth in subsection (a) of this section, of the lines of
the Corporation which would be maintained, the lines of the Corpora-
tion which would be abandoned, and the lines which would be
transferred.
(3) Each report submitted under paragraph (1) of this subsection
shall also include specific recommendations with respect to—
(A) future projected funding requirements of the Corporation;
(B) future structure and activities of the Corporation in the
region;
(C) any legislative action needed with respect to the matters
described in subparagraphs (A) and (B) of this paragraph; and
(D) any other matters which the Association or the Corpora-
tion considers appropriate.
The specific recommendations submitted under this paragraph shall
set forth alternatives for the Congress to consider in the event it
determines that modification of such recommendations is
appropriate.
(4) In developing recommendations in accordance with this subsec-
tion, the Association and the Corporation shall identify measures
designed to ensure a financially self-sustaining rail system in the
region. The recommendations shall be based on analyses of rail
properties which might be proposed for abandonment or transfer to
another railroad or qualified person and proposed operating efficien-
cies which could improve the Corporation's revenue-to-cost ratio.
(5) In developing recommendations under this subsection, the
Association and the Corporation shall each analyze and consider—
(A) projections of the Corporation's future traffic, revenues,
operating costs, and capital requirements;
(B) rail properties which might be proposed for abandonment
or transfer to another railroad or qualified person, taking into
account the potential impact of changes in the regulatory
environment;
94 STAT. 1964 PUBLIC LAW 96-448—OCT. 14, 1980
(C) the impact on communities served by lines proposed for
abandonment or transfer;
(D) proposed operating efficiencies which could improve the
Corporation's revenue-to-cost ratio;
(E) the impact on the Corporation of proposed mergers by
connecting or competing railroads;
(F) employee motivation and labor productivity programs and
a projection of labor protection costs which could result from the
recommendations;
(G) the future capital structure of the Corporation; and
(H) any other factors identified by the Association as relevant
to the recommendations required to be developed and submitted
pursuant to this section.
(6)(A) The Association and the Corporation shall, on the date of
submission of their recommendations to the Congress under this
subsection, transmit copies of such recommendations to the Secre-
tary, the Commission, and the Governor of each State that could be
affected by such recommendations. Upon request, the Association
and the Corporation shall furnish a copy of their recommendations to
any interested person.
Publication in (B) As soon as practicable after submission of their recommenda-
Federal tions to the Congress, the Association and the Corporation shall
Register.
publish in the Federal Register a summary of such recommendations
and invite interested parties to comment on such recommendations.
Comments, (7) The Commission shall, no later than May 1,1981, submit to the
submittal to Congress its comments on the reports of the Association, the Secre-
Congress.
Recommenda- tary, and the Corporation under this subsection.
tions, submittal (8) Not later than April 1, 1981, the Secretary shall submit to the
to Congress. Congress his recommendations with respect to the future structure
and operations of the Corporation. Not later than May 1, 1981, the
Secretary shall submit to the Congress his comments and recommen-
dations with respect to the reports of the Association and the
Corporation under this subsection, and shall msike any changes in his
recommendations that he determines are necessary.
(9) The antitrust laws, as defined in section 601(a)(3) of the
Regional Rail Reorganization Act of 1973 (45 U.S.C. 791(a)(3)), shall
not apply to any action taken by the Association or the Secretary
prior to May 1,1981, in accordance with and under the authority of
the provisions of this subsection.
Analysis, (c) The Corporation shall, no later than March 15, 1981, submit to
submittal to the Congress an analysis of the effects upon the Corporation and its
Congress.
employees of alternative changes in labor agreements and related
operational changes. Such report shall include an analysis of any
Federal funding that will be required.
(d) The Corporation shall, no later than January 15,1981, submit to
the Association its projections of the benefits to the Corporation of
Ante, p. 1895. the Staggers Rail Act of 1980, its projections of changes needed in the
structure of the rail system of the Corporation including properties
which may be abandoned or transferred, and other projections of
potential savings or increased revenues to the Corporation.
(e) Section 216(b) of the Regional Rail Reorganization Act of 1973
Ante, p. 1946. (45 U.S.C. 726(b)), as amended by this Act, is further amended by
adding at the end thereof the following new paragraph:
"(4) Purchases of up to $329,000,000 of a series A preferred stock
shall be made by the Association, subject to the availability of
appropriations, as required and requested by the Corporation, if the
Finance Committee makes an affirmative finding that the Corpora-
tion has taken appropriate action to eliminate losses on light density
PUBLIC LAW 96-448—OCT. 14, 1980 94 STAT. 1965
lines and other lines which are unprofitable. Such action shall
include the imposition of surcharges on such lines, the abandonment
of such lines, and the transfer of such lines.".
(f)(1) Section 216(a) of the Regional Rail Reorganization Act of 1973
(45 U.S.C. 726(a)) is amended by striking out "$2,300,000,000" and
inserting in lieu thereof "$2,629,000,000".
(2) Section 216(g) of such Act (45 U.S.C. 726(g)) is amended by
striking out "$8,300,000,000" and inserting in lieu thereof
"$3,629,000,000".
(3) Section 210(e) of the Regional Rail Reorganization Act of 1973
(45 U.S.C. 720(e)) is amended by inserting immediately after "section"
in the first sentence thereof the following: "or under subsection (a) of
section 306 of this Act".
USRA AUTHORIZATION OF APPROPRIATIONS
SEC. 704. Section 214(c) of the Regional Rail Reorganization Act of
1973 (45 U.S.C. 724(c)) is amended to read as follows:
"(c) ASSOCIATION.—For the fiscal year ending September 30, 1981,
there are authorized to be appropriated to the Association for
purposes of carrying out its administrative expenses under this Act
such sums as are necessary, not to exceed $30,000,000. Sums appropri-
ated under this subsection are authorized to remain available until
expended.".
FEEDER LINE REHABILITATION STUDY
SEC. 705. (a) The Secretary of Transportation and the Secretary of Report to
the Treasury shall jointly submit to the Congress, within 9 months of Congress.
the effective date of this Act, a comprehensive report on the antici-
pated effect (including the loss of revenue to the Federal Treasury) of
amending section 103 of the Internal Revenue Code of 1954 to provide 26 USC 103.
an exemption from taxation for obligations incurred in connection
with the rehabilitation of railroad feeder lines. Such report shall also
include such criteria as may be necessary to prevent the abuse of such
special tax status.
(b) For purposes of this section, railroad feeder line rehabilitation
includes the acquisition, construction, reconstruction, or erection of
any feeder line roadbed, track, trestle, depot, switching, and signaling
equipment, or any other rail equipment (other than rolling stock).
EFFECT ON PENDING MATTERS
SEC. 706. In the case of any proposal docketed with a rate bureau 49 USC 10706
prior to the effective date of this Act which is or becomes the subject note.
of an application or proceeding before the Interstate Commerce
Commission, such application or proceeding shall be determined as if
this Act had not been enacted, and the antitrust immunity provided
in section 10706(b) of title 49, United States Code, resulting from
approval of such agreement shall continue in effect.
CONSTRUCTION OF AMENDMENTS
SEC. 707. With respect to the relationship between water carriers 49 USC 10706
and rail carriers, none of the amendments made by this Act shall be note.
construed to make lawful (1) any competitive practice that is unfair,
destructive, predatory, or otherwise undermines competition and
that was unlawful on the effective date of this Act, or (2) any other
94 STAT. 1966 PUBLIC LAW 96-448—OCT. 14, 1980
competitive practice that is unfair, destructive, predatory, or other-
wise undermines competition.
SURPLUS PROPERTY
Consolidated SEC. 708. Notwithstanding any other provision of law, the Consoli-
Rail
Corporation, dated Rail Corporation shdl be considered a Federal agency for the
contract sole purpose of Department of the Army Regulations 735-5, para-
authority. graph 1-16. Such Corporation may enter into a contract under the
authori^ granted by this section only when it determines that the
safely ofthe public so requires.
STUDY OF ALASKA RAILROAD RATES
SEC. 709. Within 6 months after the effective date of this Act, the
Interstate Commerce Ck)mmission shall commence and complete a
study to determine whether the rates charged by the Alaska Railroad
pursuant to ICC-ARR Freight Tariffs 4108 and 4109 (as supple-
mented by supplements 1-4) would, if such rates had been entered
into after the effective date of this Act, have constituted a violation of
Ante, p. 1898. section 10701a(cXl) of title 49, United States Code, as amended by this
Act. To the extent feasible, such study shall be coordinated with the
study by the State of Alaska in progress on the effective date of this
Act.
EFFECTIVE DATES
49 u s e 10101 SEC. 710. (a) Except as provided in subsections (b), (c), and (d) of this
note. section, the provisions of this Act and the amendments made by this
Act shall take effect on October 1,1980.
(b) Section 206 of this Act shall take effect on January 1, 1981.
(c) Section 218(b) of this Act shall take effect on October 1,1983.
(d) Section 701 of this Act shall take effect on the date of enactment
of this Act.
Approved October 14, 1980.
LEGISLATIVE HISTORY:
HOUSE REPORTS: No. 96-1035 accompanying H.R. 7235 (Comm. on Interstate and
Foreign Commerce) and No. 96-1430 (Comm. of Conference).
SENATE REPORT No. 96-470 (Comm. on Commerce, Science, and Transportation).
CONGRESSIONAL RECORD, Vol. 126 (1980):
Apr. 1, considered and passed Senate.
Apr. 3, Senate considered and agreed to an amendment.
June 25, 26, 30, July 2, 24, Sept. 5, 9, H.R. 7235 considered and passed House;
passage vacated and S. 1946, amended, passed in lieu.
Sept. 18, Senate agreed to House amendment with amendments.
Sept. 30, House and Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 16, No. 42:
Oct. 14, Presidential statement.
