§ 744. Termination and continuation of rail services

Footnotes

1. 1 See References in Text note below.
2. 2 So in original. Probably should be “this”.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1974

   Regional Rail Reorganization Act of 1973

   Pub. L. 93–236 title III § 304 · 87 Stat. 985

   Enacted · 45 U.S.C. § 744

   Pub. L. 93–236, title III, § 304, Jan. 2, 1974, 87 Stat. 1008

   Source evidence

   Code source credit
   Pub. L. 93–236, title III, § 304, Jan. 2, 1974, 87 Stat. 1008

   Enacted provision · exact public law section
   Sec. 304. termination of rail service (a) Discontinuance.— Except as provided in subsections (c) and (f) of this section, (1) rail service on rail properties of a railroad in the region which transfers to the Corporation or to profitable railroads operating in the region all or substantially all of its rail properties designated for such conveyance in the final system plan, and (2) rail service on rail properties of a profitable railroad operating in the region which transfers substantially all of its rail properties to the Corporation or to other T ail roads pursuant to the final system plan may be discontinued to the extent such discontinuance is not precluded by the terms of the leases and agreements referred to in section 303(b)(2) of this title if— (A) the filial system plan does not designate rail service to be operated over such rail properties; and (B) not sooner than 30 days following the effective date of the final system plan the trustee or trustees of the applicable railroad in reorganization or a profitable railroad give notice in writing of intent to discontinue such rail service on a date certain which is not less than 60 days after the date of such notice; and (C) the notice required by paragraph (B) of this subsection is sent by certified mail to the Governor and State transportation agencies of each State and to the government, of each political subdivision of each State in which such rail properties are located and to each shipper who has used such rail service dining the previous 12 months. (b) Abandonment.— (1) Rail properties over which rail service has been discontinued under subsection (a) of this section may not be abandoned sooner than 120 days after the effective date of such discontinuance except as provided in subsections (c) and (f) of this section. Thereafter, except as provided in subsection (c) of this section, such rail properties may be abandoned upon 30 days’ notice in writing to all those required to receive notice under paragraph (2)(C) of subsection (a) of this section. (2) Tn any case in which rail properties proposed to be abandoned under this section are designated by the final system plan as rail properties which are suitable, for use. for other public purposes (including roads or highways, other forms of mass transportation, conservation, and recreation), such rail properties shall not be sold, leased, exchanged, or otherwise disposed of during the 180-day period beginning on the date of notice of proposed abandonment under this section unless such rail properties have first been offered, upon reasonable terms, for acquisition for public purposes. (c) Limitations.— Rail service may be discontinued and rail properties may be abandoned under subsections (a) and (b) of this section notwithstanding any provision of the Interstate Commerce Act (49 24 Stat. 379. U.S.C. 1 et seq.) or the constitution or law of any State or the decision of any court or administrative agency of the United States or of any State. No rail service may be discontinued and no rail properties may be abandoned pursuant to this section— (1) after 2 yea is from the effective date of the final system plan or more than 2 years after the final payment of any rail service continuation subsidy is received, whichever is later; or (2) if a shipper, a State, the United States, a local or regional transportation authority, or any responsible person offers— (A) a rail service continuation subsidy which covers the difference between the revenue attributable to such rail properties and the avoidable costs of providing service on such rail properties plus a reasonable return on the value of such rail properties; (B) a rail service continuation subsidy which is payable pursuant to a lease or agreement with a State, or a local or regional transportation authority, under which financial support was being provided at the time of the enactment of this Act for the continuance of rail passenger service; or (C) to purchase, pursuant to subsection (d) of this section, such rail properties in order to operate rail service over such properties. If a rail service continuation subsidy is offered, the government or person offering the subsidy shall enter into an operating agreement with the Corporation or any responsible person (including a government entity) under which the Corporation or such person (including a government entity) will operate rail service over such rail properties and receive the difference between the revenue attributable to such properties and the avoidable costs of providing service on such rail properties and the trustee of any railroad in reorganization shall receive a reasonable rate of return on the value of any rail properties for which a rail service is operated under such subsidy. (d) Purchase.— If an offer to purchase is made under subsection (c)(2)(C) of this section, such offer shall be accompanied by an offer of a rail service continuation subsidy. Such subsidy shall continue until the purchase transaction is completed, unless a railroad assumes operations over such rail properties on its own account pursuant to an order or authorization of the Commission. Whenever a railroad in reorganization in the region or a profitable railroad gives notice of intent to discontinue service pursuant to subsection (a) of this section, such railroad shall, upon the request of anyone apparently qualified to make a purchase offer promptly make available its most recent reports on (he physical condition of such property together with such traffic and revenue data as would be required under subpart B of part 1121 of chapter X of title 49 of the Code of Federal Regulations and 49 CFR 1121. such other data necessary to ascertain the avoidable costs of providing service over such rail properties. (e) Abandonment by Corporation.— After the rail system to be operated by the Corporation under the final system plan has been in operation for 2 years, the Commission may authorize the Corporation to abandon any rail properties as to which it determines that rail service over such properties is not required by the public convenience and necessity. The Commission may, at any time after the effective date of the final system plan, authorize additional rail service in the region or authorize the abandonment of rail properties which are not being operated by the Corporation or by any other person. Determinations by the Commission under this subsection shall be made pursuant to applicable provisions of the Interstate Commerce Act (49 U.S.C. 1). 24 Stat. 379. (f) Interim Abandonment.— After the date of enactment of this Act, no railroad in reorganization may discontinue service or abandon any line of railroad other than in accordance with the provisions of this Act, unless it is authorized to do so by the Association and unless no affected State or local or regional transportation authority reasonably opposes such action, notwithstanding any provision of any other Federal law, the constitution or law of any State, or decision or order of, or the pendency of any proceeding before any Federal or State court, agency, or authority.

2. 1976

   Railroad Revitalization and Regulatory Reform Act of 1976

   Pub. L. 94–210 § 804 · 90 Stat. 31

   1. Redesignated · 45 U.S.C. § 744(a)

      Pub. L. 94–210, § 804, redesignated existing provisions as par. (1)

   2. Inserted · 45 U.S.C. § 744(a)

      Pub. L. 94–210, § 804, inserted provision relating to applicability to a railroad in reorganization in the region, or of a person leased, operated, or controlled by such a railroad, in subpar. (B) inserted provision relating to notice on the date of any conveyance ordered by the special court, and in subpar. (C) inserted requirement that notice be sent to the Commission

   3. Substituted · 45 U.S.C. § 744(a)

      Pub. L. 94–210, § 804, substituted reference to the chief executive officer for reference to the Governor

   4. Added · 45 U.S.C. § 744(a)

      Pub. L. 94–210, § 804, added par. (2)

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 94–210, § 804, redesignated existing provisions as par. (1) and inserted provision relating to applicability to a railroad in reorganization in the region, or of a person leased, operated, or controlled by such a railroad, in subpar. (B) inserted provision relating to notice on the date of any conveyance ordered by the special court, and in subpar. (C) inserted requirement that notice be sent to the Commission and substituted reference to the chief executive officer for reference to the Governor, and added par. (2).

   Enacted provision · exact public law section
   Sec. 804. termination and continuation of rail services Section 304 of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 744) is amended to read as follows: “Sec. 304. “termination and continuation of rail services (a) Discontinuance.— (1) Except as provided in subsections (c) and (f) of this section, rail service on rail properties of a railroad in reorganization in the region, or of a person leased, operated, or controlled by such a railroad, which transfers to the Corporation or to profitable railroads operating in the region all or substantially all of its rail properties designated for such conveyance in the final system plan, and rail service on rail properties of a profitable railroad operating in the region which transfers substantially all of its rail properties to the Corporation or to other railroads pursuant to the final system plan, may be discontinued, to the extent such discontinuance is not precluded by the terms of the leases and agreements referred to in section 303(b)(2) of this title, if— “(A) the final system plan does not designate rail service to lie operated over such rail properties; “(B) not sooner than 30 days following the effective date of the final system plan, the trustee or trustees of the applicable railroad in reorganization or a profitable railroad give notice in writing of intent to discontinue such service on a date certain which is not less than 60 days after the date of such notice or on the date of any conveyance ordered by the special court pursuant to section 303(b) (1) of this title, whichever is later; and “(C) the notice required by subparagraph (B) of this paragraph is sent by certified mail to the Commission; to the chief executive officer, the transportation agencies, and the government of each political subdivision of each State in which such rail properties are located; and to each shipper who has used such rail service during the previous 12 months. “(2) (A) If rail properties are not, in accordance with the designations in the final system plan, required to be operated, as a consequence of a recommended arrangement for joint use or operation of 45 USC 716. rail properties (under section 206(g) of this Act) or as part of a coordination project (under sections 206 (c) and (g) of this Act), rail service on such properties may be discontinued, subsequent to the date of conveyance of rail properties pursuant to such section 303(b)(1), 45 USC 743. if the Commission determines that such rail service on such rail properties is not compensatory and if— “(i) the petitioner and any other railroad involved in such arrangement or coordination project have, prior to filing an application for such discontinuance, entered into a binding agreement (effective on or before the effective date of such discontinuance) to carry out such arrangement or project; “(ii) such application is filed with the Commission not later than 1 year after the effective date of the final system plan; and “(iii) such discontinuance is not precluded by the terms of the leases and agreements referred to in such section 303(b) (2). “(B) For purposes of this paragraph, rail service on rail properties is compensatory if the revenue attributable to such properties from such service equals or exceeds the sum of the avoidable costs of providing such service on such properties plus a reasonable return on the value of such rail properties, as determined in accordance with the 45 USC 715. standards developed pursuant to section 205(d) (6) of this Act. “(C) The Commission shall make its final determination, with respect to any discontinuance requested under this paragraph, not later than 120 days after the date of filing of an application therefor. The applicant shall have the burden of proving that the service involved is not compensatory. If the Commission fails to make a final determination within such time, the application shall lie deemed to be granted. “(D) The Commission may issue such rules, regulations, and procedures as it deems necessary for the conduct of its functions under this paragraph. “(b) Abandonment.— (1) Except as provided in subsections (c) and (f) of this section, rail properties over which rail service has been discontinued under subsection (a) of this section may not be abandoned sooner than 120 days after the effective date of the Notice. discontinuance. Thereafter, except as provided in subsection (c) of this section, such rail properties may be abandoned upon 30 days’ notice in writing to any person (including a government entity) required to receive notice under subsection (a)(1)(C) of this section. “(2) In any case in which rail properties proposed to be abandoned under this section are designated by the final system plan as rail properties which are suitable for use for other public purposes (including roads or highways, other forms of mass transportation, conservation, and recreation), such rail properties shall not be sold, leased, exchanged, or otherwise disposed of during the 240-day period beginning on the date of notice of proposed abandonment under this section unless such rail properties have first been offered, upon reasonable terms, for acquisition for public purposes. “(3) Rail service may be discontinued, under subsection (a) of this section, and rail properties may be abandoned, under this section, notwithstanding any provision of the Interstate Commerce Act, the constitution or law of any State, or the decision of any court or administrative agency of the United States or of any State. “(c) Continuation of Rail Services.— No rail service may be discontinued and no rail properties may be abandoned, pursuant to this section— “(1) in the case of service and properties referred to in subsections (a) (1) and (b)(1) of this section, after 2 years from the effective date of the final system plan or more than 2 years after the date on which the final rail service continuation payment is received, whichever is later; or “(2) if a financially responsible person (including a government entity) offers— “(A) to provide a rail service continuation payment which is designed to cover the difference between the revenue attributable to such rail properties and the avoidable costs of providing rail service on such properties, together with a reasonable return on the value of such properties; “(B) to provide a rail service continuation payment which is payable pursuant to a lease or agreement with a State or with a local or regional transportation authority under which financial support was being provided on January 2, 1974 for the continuation of rail passenger service; or “(C) to purchase, pursuant to subsection (f) of this section, such rail properties in order to operate rail services thereon. If a rail service continuation payment is offered, pursuant to paragraph (2) (A) of this subsection, for both freight and passenger service on the same rail properties, the owner of such properties may not be entitled to more than one payment of a reasonable return on the value of such properties. “(d) Rail Freight Service.— (1) If a rail service continuation payment is offered, pursuant to subsection (c) (2) (A) of this section, for rail freight service, the person offering such payment shall designate the operator of such service and enter into an operating agreement with such operator. The person offering such payment shall designate as the operator of such service— “(A) the Corporation, if rail properties of the Corporation connect with the line of railroad involved, unless the Commission determines that such rail service continuation could be performed more efficiently and economically by another railroad; “(B) any other railroad whose rail properties connect with such line, if the Corporation’s rail properties do not so connect or if the Commission makes a determination in accordance with subparagraph (A) of this paragraph; or “(C) any responsible person (including a government entity) which is willing to operate rail service over such rail properties. A designated railroad may refuse to enter into such an operating agreement only if the Commission determines, on petition by any affected party, that the agreement would substantially impair such railroad’s ability to serve adequately its own patrons or to meet its outstanding common carrier obligations. The designated operator shall, pursuant to each such operating agreement (i) be obligated to operate rail freight service on such rail properties, and (ii) be entitled to receive, from the person offering such payment, the difference between the revenue attributable to such properties and the avoidable costs of providing service on such rail properties, together with a reasonable management fee, as determined by the Office. “(2) The trustees of a railroad in reorganization shall permit rail service to be continued on any rail properties with respect to which a rail service continuation payment operating agreement has been entered into under this subsection. Such trustees shall receive a reasonable return on the value of such properties, as determined in accordance with the standards developed pursuant to section 205(d) (6) of this Act. 45 USC 715. “(3) If necessary to prevent any disruption or loss of rail service, at any time after the date of conveyance, pursuant to section 303(b) 45 USC 743. (1) of this title, the Commission— “(A) shall take such action as may be appropriate under its existing authority (including the enforcement of common carrier requirements applicable to railroads in reorganization in the region) to ensure compliance with obligations imposed under this subsection; and “(B) shall have authority, in accordance with the provisions of section 1(16) (b) of the Interstate Commerce Act (49 U.S.C. 1 (16) (b)), to direct rail service to be provided by any designated railroad or by the trustees of a railroad in reorganization in the region, if a rail service continuation payment has been offered but an applicable operating or lease agreement is not in effect. For purposes of the preceding sentence, any compensation required as a result of such directed service shall be determined in accordance with the standards developed pursuant to section 205(d) (6) of this 45 USC 715. Jurisdiction. Act. The district courts of the United States shall have jurisdiction, upon petition by the Commission or any interested person (including a government entity), to enforce any order of the Commission issued pursuant to the exercise of its authority under this subsection, or to enjoin any designated entity or the trustees of a railroad in reorganization in the region from refusing to comply with the provisions of this subsection. “(e) Rail Passenger Service.— (1) The Corporation (or a profitable railroad) shall provide rail passenger service for a period of 180 days immediately following the date of conveyance (pursuant to section 303(b) (1) of this title), with respect to any rail properties over which a railroad in reorganization in the region, or a person leased, operated, or controlled by such a railroad, was providing rail passenger service immediately prior to such date of conveyance. Such service shall be provided on such properties regardless of whether or not such properties are designated in the final system plan as rail properties over which rail service is required to be operated, except with respect to properties over which such service is provided by the National Railroad Passenger Corporation. “(2) If a State (or a local or regional transportation authority) W’as providing financial assistance to support the operation of rail passenger service, pursuant to a lease or agreement which was in effect immediately prior to the date of conveyance (pursuant to such section 303(b)(1)), the Corporation (or a profitable railroad) shall be bound by the service provisions of such lease or agreement for the duration of the 180-day mandatory operation period specified in paragraph (1) of this subsection. If a State or such an authority was providing financial assistance for the continuation of rail passenger service on rail properties immediately prior to such date of conveyance, it shall provide the same level of financial assistance during such 180day mandatory operation period. If no such financial assistance was being provided or if no such lease or agreement was in effect immediately prior to such date of conveyance, with respect to any such rail properties, the Corporation (or a profitable railroad) shall provide the same level of rail passenger service, for the duration of such 180-day mandatory operation period, that was provided prior to such date by the applicable railroad. If— “(A) such financial assistance is not provided; “(B) a State (or a local or regional transportation authority) has not, by the end of such 180-day mandatory operation period, offered a rail service continuation payment pursuant to subsection (c) (2) (A) of this section; “(C) an applicable rail service continuation payment pursuant to such subsection (c) (2) (A) is not paid when it is due; or “(D) a payment required under a lease or agreement, pursuant to section 303(b) (2) of this title or subsection (c) (2) (B) of this 45 USC 743. section, is not paid when it is due, the Corporation (or, where applicable, the National Railroad Passenger Corporation, a profitable railroad, or the trustee or trustees of a railroad in reorganization in the region) may (i) discontinue such rail passenger service, and (ii) with respect to rail properties not designated for inclusion in the final system plan, abandon such properties pursuant to subsections (a) and (b) of this section. “(3) Nothing in this subsection shall be construed to affect the obligation of the Corporation (or a profitable railroad), or of the trustees of the railroads in reorganization in the region, to provide rail passenger service pursuant to section 303(b)(2) of this title or subsection (c) (2) (B) of this section. “(4) If a State (or a local or regional transportation authority)— “(A) offers a rail service continuation payment, pursuant to subsection (c)(2)(A) of the section and under regulations issued by the Office pursuant to section 205(d)(5) of this Act, 45 USC 715. for the operation of rail passenger service after the 180-day mandatory operation period, and “(B) provides compensation, pursuant to paragraph (2) of this subsection, for operations conducted during the 180-day mandatory operation period, the Corporation (or a profitable railroad) shall continue to provide such service after the end of such period, except as otherwise provided in this subsection. “(5) (A) The Secretary shall reimburse the Corporation (or a profitable railroad) for any loss which is incurred by it during the 180-day mandatory operation period specified in paragragh (1) of this subsection which is not compensated for by a State (or a local or regional transportation authority). The amount, of such reimbursement shall be determined pursuant to section 17(a) (1) of the Urban Mass Transportation Act of 1964 and under regulations issued by the Office pursuant Post, p. 143. to sect ion 205 (d)(5) of this Act. “(B) The Secretary shall reimburse States, local public bodies, and agencies thereof for additional costs incurred by such States, bodies, and agencies for rail service continuation payments for rail passenger service pursuant to section 17(a) (2) of the Urban Mass Transportation Act of 1964 and under regulations issued by the Office pursuant to section 205 (d) (5) of this Act. “(C) If a dispute arises with respect to the application of any such regulations, the parties to such dispute may submit such dispute to arbitration by a third party. If the parties are unable to agree upon the selection of an arbitrator, the Chairman of the Commission shall serve in that capacity (except as to matters required to be decided by the Commission, pursuant to section 402(a) of the Rail Passenger Service Act (45 U.S.C. 562(a))). “(6) Notwithstanding any other provision of this subsection, the Corporation is not obligated to provide rail passenger service on rail properties if a State (or a local or regional transportation authority) contracts for such service to be provided on such properties by an operator other than the Corporation, except that the Corporation shall, where appropriate, provide such operator with access to such properties for such purpose. “(f) Purchase.— If an offer to purchase is made under subsection (c) (2) (C) of this section, such offer shall be accompanied by an offer of a rail service continuation payment. Such payment shall continue until the purchase transaction is completed, unless a railroad assumes operations over such rail properties of its own account pursuant to an order or authorization of the Commission. Whenever a railroad in reorganization in the region or a profitable railroad gives notice of intent to discontinue service pursuant to subsection (a) of this section, such railroad shall, upon the request of anyone apparently qualified to make an offer to purchase or to provide a rail service continuation payment, promptly make available its most recent reports on the physical condition of such property, together with such traffic and revenue data as would be required under subpart B of part 1121 of chapter X of title 49 of the Code of Federal Regulations and such other data as are necessary to ascertain the avoidable costs of providing service over such rail properties. “(g) Abandonment by Corporation.— After the rail system to be operated by the Corporation or a subsidiary thereof under the final system plan has been in operation for 2 years, the Commission may authorize the Corporation or a subsidiary thereof to abandon any rail properties as to which it determines that rail service over such properties is not required by the public convenience and necessity, if the Corporation or a subsidiary thereof can demonstrate that no State (or local or regional transportation authority) is willing to offer a rail service continuation payment pursuant to subsection (c) of this section. The Commission may, at any time after the effective date of the final system plan, authorize additional rail service in the region or authorize die abandonment of rail properties which are not being operated by the Corporation or any subsidiary or affiliate thereof or by any other person. Determinations by the Commission under this subsection shall be made pursuant to applicable provisions of the Interstate Commerce Act. “(h) Interim Abandonment.— After the date of enactment of this section and prior to the date of conveyance (pursuant to section 303 45 USC 743. (b) (1) of this title), no railroad in reorganization in the region may discontinue service or abandon any line of railroad other than in accordance with the provisions of this Act, unless (1) it is authorized to do so by the Association, and (2) no affected State (or local or regional transportation authority) reasonably opposes such action, notwithstanding any provision of any other Federal law, the constitution or law of any State, or the decision or order of, or the pendency of any proceeding before any Federal or State court, agency, or authority. “(i) Disposition of Designated Rail Properties.— No railroad in reorganization in the region and no person leased, operated or controlled by such a railroad shall sell, transfer, encumber, or otherwise dispose of rail property, or any right or interest therein, designated for transfer to the Corporation or conveyance to a profitable railroad in the final system plan, except pursuant to section 303 (b) of this title. The provisions of this subsection shall not apply to any such sale, transfer, encumbrance, or other disposition— “(1) as to which the Association generally or specifically consents in writing; “(2) which, prior to enactment of the Railroad Revitalization Ante, p. 31. and Regulatory Reform Act of 1976, had been specifically approved by a United States district court having jurisdiction over the reorganization of a railroad in reorganization under section 77 of the Bankruptcy Act (11 U.S.C. 205); or “(3) following certification to the special court, pursuant Jo section 209(c) of the Regional Rail Reorganization Act of 1973, 45 USC 719. of any such rail properties not previously so certified. “(j) Exemption.— (1) No local public body which provides mass transportation services and which is otherwise subject to the Interstate Commerce Act shall, with respect to the provision of such services, 49 USC 1. be subject to the Interstate Commerce Act or to rules, regulations and orders promulgated under such Act, except that any such local public body shall continue to be subject to applicable Federal laws pertaining to (A) safety, (B) the representation of employees for purposes of collective bargaining, and (C) employment retirement, annuity, and unemployment systems or any other provision pertaining to dealings between employees and employers. “(2) For purposes of this subsection, the term— “(A) ‘local public body’ has the meaning prescribed for such “Local public body.” term in section 12(c) (2) of the Urban Mass Transportation Act (49 U.S.C. 1608(c) (2)) and includes any person or entity which contracts with a local public body to provide transportation services: and “(B) ‘mass transportation’ has the meaning prescribed for such “Mass transportation.” term in section 12(c) (5) of the Urban Mass Transportation Act (49 U.S.C. 1608(c)(5)).”.

3. 1976

   Railroad Revitalization and Regulatory Reform Act of 1976

   Pub. L. 94–210 § 804 · 90 Stat. 31

   1. Inserted · 45 U.S.C. § 744(b)

      Pub. L. 94–210, § 804, in par. (1) inserted exception of subsecs. (c) and (f) of this section

   2. Substituted · 45 U.S.C. § 744(b)

      Pub. L. 94–210, § 804, in par. (1) substituted provisions requiring notice to be sent to any person (including a government entity), for provisions requiring notice to be sent to all those required to receive notice, in par. (2) substituted “240” for “180”

   3. Added · 45 U.S.C. § 744(b)

      Pub. L. 94–210, § 804, in par. (1) added par. (3)

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 94–210, § 804, in par. (1) inserted exception of subsecs. (c) and (f) of this section and substituted provisions requiring notice to be sent to any person (including a government entity), for provisions requiring notice to be sent to all those required to receive notice, in par. (2) substituted “240” for “180”, and added par. (3).

   Enacted provision · exact public law section
   Sec. 804. termination and continuation of rail services Section 304 of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 744) is amended to read as follows: “Sec. 304. “termination and continuation of rail services (a) Discontinuance.— (1) Except as provided in subsections (c) and (f) of this section, rail service on rail properties of a railroad in reorganization in the region, or of a person leased, operated, or controlled by such a railroad, which transfers to the Corporation or to profitable railroads operating in the region all or substantially all of its rail properties designated for such conveyance in the final system plan, and rail service on rail properties of a profitable railroad operating in the region which transfers substantially all of its rail properties to the Corporation or to other railroads pursuant to the final system plan, may be discontinued, to the extent such discontinuance is not precluded by the terms of the leases and agreements referred to in section 303(b)(2) of this title, if— “(A) the final system plan does not designate rail service to lie operated over such rail properties; “(B) not sooner than 30 days following the effective date of the final system plan, the trustee or trustees of the applicable railroad in reorganization or a profitable railroad give notice in writing of intent to discontinue such service on a date certain which is not less than 60 days after the date of such notice or on the date of any conveyance ordered by the special court pursuant to section 303(b) (1) of this title, whichever is later; and “(C) the notice required by subparagraph (B) of this paragraph is sent by certified mail to the Commission; to the chief executive officer, the transportation agencies, and the government of each political subdivision of each State in which such rail properties are located; and to each shipper who has used such rail service during the previous 12 months. “(2) (A) If rail properties are not, in accordance with the designations in the final system plan, required to be operated, as a consequence of a recommended arrangement for joint use or operation of 45 USC 716. rail properties (under section 206(g) of this Act) or as part of a coordination project (under sections 206 (c) and (g) of this Act), rail service on such properties may be discontinued, subsequent to the date of conveyance of rail properties pursuant to such section 303(b)(1), 45 USC 743. if the Commission determines that such rail service on such rail properties is not compensatory and if— “(i) the petitioner and any other railroad involved in such arrangement or coordination project have, prior to filing an application for such discontinuance, entered into a binding agreement (effective on or before the effective date of such discontinuance) to carry out such arrangement or project; “(ii) such application is filed with the Commission not later than 1 year after the effective date of the final system plan; and “(iii) such discontinuance is not precluded by the terms of the leases and agreements referred to in such section 303(b) (2). “(B) For purposes of this paragraph, rail service on rail properties is compensatory if the revenue attributable to such properties from such service equals or exceeds the sum of the avoidable costs of providing such service on such properties plus a reasonable return on the value of such rail properties, as determined in accordance with the 45 USC 715. standards developed pursuant to section 205(d) (6) of this Act. “(C) The Commission shall make its final determination, with respect to any discontinuance requested under this paragraph, not later than 120 days after the date of filing of an application therefor. The applicant shall have the burden of proving that the service involved is not compensatory. If the Commission fails to make a final determination within such time, the application shall lie deemed to be granted. “(D) The Commission may issue such rules, regulations, and procedures as it deems necessary for the conduct of its functions under this paragraph. “(b) Abandonment.— (1) Except as provided in subsections (c) and (f) of this section, rail properties over which rail service has been discontinued under subsection (a) of this section may not be abandoned sooner than 120 days after the effective date of the Notice. discontinuance. Thereafter, except as provided in subsection (c) of this section, such rail properties may be abandoned upon 30 days’ notice in writing to any person (including a government entity) required to receive notice under subsection (a)(1)(C) of this section. “(2) In any case in which rail properties proposed to be abandoned under this section are designated by the final system plan as rail properties which are suitable for use for other public purposes (including roads or highways, other forms of mass transportation, conservation, and recreation), such rail properties shall not be sold, leased, exchanged, or otherwise disposed of during the 240-day period beginning on the date of notice of proposed abandonment under this section unless such rail properties have first been offered, upon reasonable terms, for acquisition for public purposes. “(3) Rail service may be discontinued, under subsection (a) of this section, and rail properties may be abandoned, under this section, notwithstanding any provision of the Interstate Commerce Act, the constitution or law of any State, or the decision of any court or administrative agency of the United States or of any State. “(c) Continuation of Rail Services.— No rail service may be discontinued and no rail properties may be abandoned, pursuant to this section— “(1) in the case of service and properties referred to in subsections (a) (1) and (b)(1) of this section, after 2 years from the effective date of the final system plan or more than 2 years after the date on which the final rail service continuation payment is received, whichever is later; or “(2) if a financially responsible person (including a government entity) offers— “(A) to provide a rail service continuation payment which is designed to cover the difference between the revenue attributable to such rail properties and the avoidable costs of providing rail service on such properties, together with a reasonable return on the value of such properties; “(B) to provide a rail service continuation payment which is payable pursuant to a lease or agreement with a State or with a local or regional transportation authority under which financial support was being provided on January 2, 1974 for the continuation of rail passenger service; or “(C) to purchase, pursuant to subsection (f) of this section, such rail properties in order to operate rail services thereon. If a rail service continuation payment is offered, pursuant to paragraph (2) (A) of this subsection, for both freight and passenger service on the same rail properties, the owner of such properties may not be entitled to more than one payment of a reasonable return on the value of such properties. “(d) Rail Freight Service.— (1) If a rail service continuation payment is offered, pursuant to subsection (c) (2) (A) of this section, for rail freight service, the person offering such payment shall designate the operator of such service and enter into an operating agreement with such operator. The person offering such payment shall designate as the operator of such service— “(A) the Corporation, if rail properties of the Corporation connect with the line of railroad involved, unless the Commission determines that such rail service continuation could be performed more efficiently and economically by another railroad; “(B) any other railroad whose rail properties connect with such line, if the Corporation’s rail properties do not so connect or if the Commission makes a determination in accordance with subparagraph (A) of this paragraph; or “(C) any responsible person (including a government entity) which is willing to operate rail service over such rail properties. A designated railroad may refuse to enter into such an operating agreement only if the Commission determines, on petition by any affected party, that the agreement would substantially impair such railroad’s ability to serve adequately its own patrons or to meet its outstanding common carrier obligations. The designated operator shall, pursuant to each such operating agreement (i) be obligated to operate rail freight service on such rail properties, and (ii) be entitled to receive, from the person offering such payment, the difference between the revenue attributable to such properties and the avoidable costs of providing service on such rail properties, together with a reasonable management fee, as determined by the Office. “(2) The trustees of a railroad in reorganization shall permit rail service to be continued on any rail properties with respect to which a rail service continuation payment operating agreement has been entered into under this subsection. Such trustees shall receive a reasonable return on the value of such properties, as determined in accordance with the standards developed pursuant to section 205(d) (6) of this Act. 45 USC 715. “(3) If necessary to prevent any disruption or loss of rail service, at any time after the date of conveyance, pursuant to section 303(b) 45 USC 743. (1) of this title, the Commission— “(A) shall take such action as may be appropriate under its existing authority (including the enforcement of common carrier requirements applicable to railroads in reorganization in the region) to ensure compliance with obligations imposed under this subsection; and “(B) shall have authority, in accordance with the provisions of section 1(16) (b) of the Interstate Commerce Act (49 U.S.C. 1 (16) (b)), to direct rail service to be provided by any designated railroad or by the trustees of a railroad in reorganization in the region, if a rail service continuation payment has been offered but an applicable operating or lease agreement is not in effect. For purposes of the preceding sentence, any compensation required as a result of such directed service shall be determined in accordance with the standards developed pursuant to section 205(d) (6) of this 45 USC 715. Jurisdiction. Act. The district courts of the United States shall have jurisdiction, upon petition by the Commission or any interested person (including a government entity), to enforce any order of the Commission issued pursuant to the exercise of its authority under this subsection, or to enjoin any designated entity or the trustees of a railroad in reorganization in the region from refusing to comply with the provisions of this subsection. “(e) Rail Passenger Service.— (1) The Corporation (or a profitable railroad) shall provide rail passenger service for a period of 180 days immediately following the date of conveyance (pursuant to section 303(b) (1) of this title), with respect to any rail properties over which a railroad in reorganization in the region, or a person leased, operated, or controlled by such a railroad, was providing rail passenger service immediately prior to such date of conveyance. Such service shall be provided on such properties regardless of whether or not such properties are designated in the final system plan as rail properties over which rail service is required to be operated, except with respect to properties over which such service is provided by the National Railroad Passenger Corporation. “(2) If a State (or a local or regional transportation authority) W’as providing financial assistance to support the operation of rail passenger service, pursuant to a lease or agreement which was in effect immediately prior to the date of conveyance (pursuant to such section 303(b)(1)), the Corporation (or a profitable railroad) shall be bound by the service provisions of such lease or agreement for the duration of the 180-day mandatory operation period specified in paragraph (1) of this subsection. If a State or such an authority was providing financial assistance for the continuation of rail passenger service on rail properties immediately prior to such date of conveyance, it shall provide the same level of financial assistance during such 180day mandatory operation period. If no such financial assistance was being provided or if no such lease or agreement was in effect immediately prior to such date of conveyance, with respect to any such rail properties, the Corporation (or a profitable railroad) shall provide the same level of rail passenger service, for the duration of such 180-day mandatory operation period, that was provided prior to such date by the applicable railroad. If— “(A) such financial assistance is not provided; “(B) a State (or a local or regional transportation authority) has not, by the end of such 180-day mandatory operation period, offered a rail service continuation payment pursuant to subsection (c) (2) (A) of this section; “(C) an applicable rail service continuation payment pursuant to such subsection (c) (2) (A) is not paid when it is due; or “(D) a payment required under a lease or agreement, pursuant to section 303(b) (2) of this title or subsection (c) (2) (B) of this 45 USC 743. section, is not paid when it is due, the Corporation (or, where applicable, the National Railroad Passenger Corporation, a profitable railroad, or the trustee or trustees of a railroad in reorganization in the region) may (i) discontinue such rail passenger service, and (ii) with respect to rail properties not designated for inclusion in the final system plan, abandon such properties pursuant to subsections (a) and (b) of this section. “(3) Nothing in this subsection shall be construed to affect the obligation of the Corporation (or a profitable railroad), or of the trustees of the railroads in reorganization in the region, to provide rail passenger service pursuant to section 303(b)(2) of this title or subsection (c) (2) (B) of this section. “(4) If a State (or a local or regional transportation authority)— “(A) offers a rail service continuation payment, pursuant to subsection (c)(2)(A) of the section and under regulations issued by the Office pursuant to section 205(d)(5) of this Act, 45 USC 715. for the operation of rail passenger service after the 180-day mandatory operation period, and “(B) provides compensation, pursuant to paragraph (2) of this subsection, for operations conducted during the 180-day mandatory operation period, the Corporation (or a profitable railroad) shall continue to provide such service after the end of such period, except as otherwise provided in this subsection. “(5) (A) The Secretary shall reimburse the Corporation (or a profitable railroad) for any loss which is incurred by it during the 180-day mandatory operation period specified in paragragh (1) of this subsection which is not compensated for by a State (or a local or regional transportation authority). The amount, of such reimbursement shall be determined pursuant to section 17(a) (1) of the Urban Mass Transportation Act of 1964 and under regulations issued by the Office pursuant Post, p. 143. to sect ion 205 (d)(5) of this Act. “(B) The Secretary shall reimburse States, local public bodies, and agencies thereof for additional costs incurred by such States, bodies, and agencies for rail service continuation payments for rail passenger service pursuant to section 17(a) (2) of the Urban Mass Transportation Act of 1964 and under regulations issued by the Office pursuant to section 205 (d) (5) of this Act. “(C) If a dispute arises with respect to the application of any such regulations, the parties to such dispute may submit such dispute to arbitration by a third party. If the parties are unable to agree upon the selection of an arbitrator, the Chairman of the Commission shall serve in that capacity (except as to matters required to be decided by the Commission, pursuant to section 402(a) of the Rail Passenger Service Act (45 U.S.C. 562(a))). “(6) Notwithstanding any other provision of this subsection, the Corporation is not obligated to provide rail passenger service on rail properties if a State (or a local or regional transportation authority) contracts for such service to be provided on such properties by an operator other than the Corporation, except that the Corporation shall, where appropriate, provide such operator with access to such properties for such purpose. “(f) Purchase.— If an offer to purchase is made under subsection (c) (2) (C) of this section, such offer shall be accompanied by an offer of a rail service continuation payment. Such payment shall continue until the purchase transaction is completed, unless a railroad assumes operations over such rail properties of its own account pursuant to an order or authorization of the Commission. Whenever a railroad in reorganization in the region or a profitable railroad gives notice of intent to discontinue service pursuant to subsection (a) of this section, such railroad shall, upon the request of anyone apparently qualified to make an offer to purchase or to provide a rail service continuation payment, promptly make available its most recent reports on the physical condition of such property, together with such traffic and revenue data as would be required under subpart B of part 1121 of chapter X of title 49 of the Code of Federal Regulations and such other data as are necessary to ascertain the avoidable costs of providing service over such rail properties. “(g) Abandonment by Corporation.— After the rail system to be operated by the Corporation or a subsidiary thereof under the final system plan has been in operation for 2 years, the Commission may authorize the Corporation or a subsidiary thereof to abandon any rail properties as to which it determines that rail service over such properties is not required by the public convenience and necessity, if the Corporation or a subsidiary thereof can demonstrate that no State (or local or regional transportation authority) is willing to offer a rail service continuation payment pursuant to subsection (c) of this section. The Commission may, at any time after the effective date of the final system plan, authorize additional rail service in the region or authorize die abandonment of rail properties which are not being operated by the Corporation or any subsidiary or affiliate thereof or by any other person. Determinations by the Commission under this subsection shall be made pursuant to applicable provisions of the Interstate Commerce Act. “(h) Interim Abandonment.— After the date of enactment of this section and prior to the date of conveyance (pursuant to section 303 45 USC 743. (b) (1) of this title), no railroad in reorganization in the region may discontinue service or abandon any line of railroad other than in accordance with the provisions of this Act, unless (1) it is authorized to do so by the Association, and (2) no affected State (or local or regional transportation authority) reasonably opposes such action, notwithstanding any provision of any other Federal law, the constitution or law of any State, or the decision or order of, or the pendency of any proceeding before any Federal or State court, agency, or authority. “(i) Disposition of Designated Rail Properties.— No railroad in reorganization in the region and no person leased, operated or controlled by such a railroad shall sell, transfer, encumber, or otherwise dispose of rail property, or any right or interest therein, designated for transfer to the Corporation or conveyance to a profitable railroad in the final system plan, except pursuant to section 303 (b) of this title. The provisions of this subsection shall not apply to any such sale, transfer, encumbrance, or other disposition— “(1) as to which the Association generally or specifically consents in writing; “(2) which, prior to enactment of the Railroad Revitalization Ante, p. 31. and Regulatory Reform Act of 1976, had been specifically approved by a United States district court having jurisdiction over the reorganization of a railroad in reorganization under section 77 of the Bankruptcy Act (11 U.S.C. 205); or “(3) following certification to the special court, pursuant Jo section 209(c) of the Regional Rail Reorganization Act of 1973, 45 USC 719. of any such rail properties not previously so certified. “(j) Exemption.— (1) No local public body which provides mass transportation services and which is otherwise subject to the Interstate Commerce Act shall, with respect to the provision of such services, 49 USC 1. be subject to the Interstate Commerce Act or to rules, regulations and orders promulgated under such Act, except that any such local public body shall continue to be subject to applicable Federal laws pertaining to (A) safety, (B) the representation of employees for purposes of collective bargaining, and (C) employment retirement, annuity, and unemployment systems or any other provision pertaining to dealings between employees and employers. “(2) For purposes of this subsection, the term— “(A) ‘local public body’ has the meaning prescribed for such “Local public body.” term in section 12(c) (2) of the Urban Mass Transportation Act (49 U.S.C. 1608(c) (2)) and includes any person or entity which contracts with a local public body to provide transportation services: and “(B) ‘mass transportation’ has the meaning prescribed for such “Mass transportation.” term in section 12(c) (5) of the Urban Mass Transportation Act (49 U.S.C. 1608(c)(5)).”.

4. 1976

   Railroad Revitalization and Regulatory Reform Act of 1976

   Pub. L. 94–210 § 804 · 90 Stat. 31

   Substituted · 45 U.S.C. § 744(c)

   Pub. L. 94–210, § 804, substituted provisions relating to continuation of rail services and applicability of rail service continuation payments to such continuation, for provisions relating to limitations of Interstate Commerce Act, State constitution or law, or decision of Federal or State court or agency on power to discontinue rail service and abandon rail properties and applicability of rail service continuation subsidies on such power

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 94–210, § 804, substituted provisions relating to continuation of rail services and applicability of rail service continuation payments to such continuation, for provisions relating to limitations of Interstate Commerce Act, State constitution or law, or decision of Federal or State court or agency on power to discontinue rail service and abandon rail properties and applicability of rail service continuation subsidies on such power.

   Enacted provision · exact public law section
   Sec. 804. termination and continuation of rail services Section 304 of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 744) is amended to read as follows: “Sec. 304. “termination and continuation of rail services (a) Discontinuance.— (1) Except as provided in subsections (c) and (f) of this section, rail service on rail properties of a railroad in reorganization in the region, or of a person leased, operated, or controlled by such a railroad, which transfers to the Corporation or to profitable railroads operating in the region all or substantially all of its rail properties designated for such conveyance in the final system plan, and rail service on rail properties of a profitable railroad operating in the region which transfers substantially all of its rail properties to the Corporation or to other railroads pursuant to the final system plan, may be discontinued, to the extent such discontinuance is not precluded by the terms of the leases and agreements referred to in section 303(b)(2) of this title, if— “(A) the final system plan does not designate rail service to lie operated over such rail properties; “(B) not sooner than 30 days following the effective date of the final system plan, the trustee or trustees of the applicable railroad in reorganization or a profitable railroad give notice in writing of intent to discontinue such service on a date certain which is not less than 60 days after the date of such notice or on the date of any conveyance ordered by the special court pursuant to section 303(b) (1) of this title, whichever is later; and “(C) the notice required by subparagraph (B) of this paragraph is sent by certified mail to the Commission; to the chief executive officer, the transportation agencies, and the government of each political subdivision of each State in which such rail properties are located; and to each shipper who has used such rail service during the previous 12 months. “(2) (A) If rail properties are not, in accordance with the designations in the final system plan, required to be operated, as a consequence of a recommended arrangement for joint use or operation of 45 USC 716. rail properties (under section 206(g) of this Act) or as part of a coordination project (under sections 206 (c) and (g) of this Act), rail service on such properties may be discontinued, subsequent to the date of conveyance of rail properties pursuant to such section 303(b)(1), 45 USC 743. if the Commission determines that such rail service on such rail properties is not compensatory and if— “(i) the petitioner and any other railroad involved in such arrangement or coordination project have, prior to filing an application for such discontinuance, entered into a binding agreement (effective on or before the effective date of such discontinuance) to carry out such arrangement or project; “(ii) such application is filed with the Commission not later than 1 year after the effective date of the final system plan; and “(iii) such discontinuance is not precluded by the terms of the leases and agreements referred to in such section 303(b) (2). “(B) For purposes of this paragraph, rail service on rail properties is compensatory if the revenue attributable to such properties from such service equals or exceeds the sum of the avoidable costs of providing such service on such properties plus a reasonable return on the value of such rail properties, as determined in accordance with the 45 USC 715. standards developed pursuant to section 205(d) (6) of this Act. “(C) The Commission shall make its final determination, with respect to any discontinuance requested under this paragraph, not later than 120 days after the date of filing of an application therefor. The applicant shall have the burden of proving that the service involved is not compensatory. If the Commission fails to make a final determination within such time, the application shall lie deemed to be granted. “(D) The Commission may issue such rules, regulations, and procedures as it deems necessary for the conduct of its functions under this paragraph. “(b) Abandonment.— (1) Except as provided in subsections (c) and (f) of this section, rail properties over which rail service has been discontinued under subsection (a) of this section may not be abandoned sooner than 120 days after the effective date of the Notice. discontinuance. Thereafter, except as provided in subsection (c) of this section, such rail properties may be abandoned upon 30 days’ notice in writing to any person (including a government entity) required to receive notice under subsection (a)(1)(C) of this section. “(2) In any case in which rail properties proposed to be abandoned under this section are designated by the final system plan as rail properties which are suitable for use for other public purposes (including roads or highways, other forms of mass transportation, conservation, and recreation), such rail properties shall not be sold, leased, exchanged, or otherwise disposed of during the 240-day period beginning on the date of notice of proposed abandonment under this section unless such rail properties have first been offered, upon reasonable terms, for acquisition for public purposes. “(3) Rail service may be discontinued, under subsection (a) of this section, and rail properties may be abandoned, under this section, notwithstanding any provision of the Interstate Commerce Act, the constitution or law of any State, or the decision of any court or administrative agency of the United States or of any State. “(c) Continuation of Rail Services.— No rail service may be discontinued and no rail properties may be abandoned, pursuant to this section— “(1) in the case of service and properties referred to in subsections (a) (1) and (b)(1) of this section, after 2 years from the effective date of the final system plan or more than 2 years after the date on which the final rail service continuation payment is received, whichever is later; or “(2) if a financially responsible person (including a government entity) offers— “(A) to provide a rail service continuation payment which is designed to cover the difference between the revenue attributable to such rail properties and the avoidable costs of providing rail service on such properties, together with a reasonable return on the value of such properties; “(B) to provide a rail service continuation payment which is payable pursuant to a lease or agreement with a State or with a local or regional transportation authority under which financial support was being provided on January 2, 1974 for the continuation of rail passenger service; or “(C) to purchase, pursuant to subsection (f) of this section, such rail properties in order to operate rail services thereon. If a rail service continuation payment is offered, pursuant to paragraph (2) (A) of this subsection, for both freight and passenger service on the same rail properties, the owner of such properties may not be entitled to more than one payment of a reasonable return on the value of such properties. “(d) Rail Freight Service.— (1) If a rail service continuation payment is offered, pursuant to subsection (c) (2) (A) of this section, for rail freight service, the person offering such payment shall designate the operator of such service and enter into an operating agreement with such operator. The person offering such payment shall designate as the operator of such service— “(A) the Corporation, if rail properties of the Corporation connect with the line of railroad involved, unless the Commission determines that such rail service continuation could be performed more efficiently and economically by another railroad; “(B) any other railroad whose rail properties connect with such line, if the Corporation’s rail properties do not so connect or if the Commission makes a determination in accordance with subparagraph (A) of this paragraph; or “(C) any responsible person (including a government entity) which is willing to operate rail service over such rail properties. A designated railroad may refuse to enter into such an operating agreement only if the Commission determines, on petition by any affected party, that the agreement would substantially impair such railroad’s ability to serve adequately its own patrons or to meet its outstanding common carrier obligations. The designated operator shall, pursuant to each such operating agreement (i) be obligated to operate rail freight service on such rail properties, and (ii) be entitled to receive, from the person offering such payment, the difference between the revenue attributable to such properties and the avoidable costs of providing service on such rail properties, together with a reasonable management fee, as determined by the Office. “(2) The trustees of a railroad in reorganization shall permit rail service to be continued on any rail properties with respect to which a rail service continuation payment operating agreement has been entered into under this subsection. Such trustees shall receive a reasonable return on the value of such properties, as determined in accordance with the standards developed pursuant to section 205(d) (6) of this Act. 45 USC 715. “(3) If necessary to prevent any disruption or loss of rail service, at any time after the date of conveyance, pursuant to section 303(b) 45 USC 743. (1) of this title, the Commission— “(A) shall take such action as may be appropriate under its existing authority (including the enforcement of common carrier requirements applicable to railroads in reorganization in the region) to ensure compliance with obligations imposed under this subsection; and “(B) shall have authority, in accordance with the provisions of section 1(16) (b) of the Interstate Commerce Act (49 U.S.C. 1 (16) (b)), to direct rail service to be provided by any designated railroad or by the trustees of a railroad in reorganization in the region, if a rail service continuation payment has been offered but an applicable operating or lease agreement is not in effect. For purposes of the preceding sentence, any compensation required as a result of such directed service shall be determined in accordance with the standards developed pursuant to section 205(d) (6) of this 45 USC 715. Jurisdiction. Act. The district courts of the United States shall have jurisdiction, upon petition by the Commission or any interested person (including a government entity), to enforce any order of the Commission issued pursuant to the exercise of its authority under this subsection, or to enjoin any designated entity or the trustees of a railroad in reorganization in the region from refusing to comply with the provisions of this subsection. “(e) Rail Passenger Service.— (1) The Corporation (or a profitable railroad) shall provide rail passenger service for a period of 180 days immediately following the date of conveyance (pursuant to section 303(b) (1) of this title), with respect to any rail properties over which a railroad in reorganization in the region, or a person leased, operated, or controlled by such a railroad, was providing rail passenger service immediately prior to such date of conveyance. Such service shall be provided on such properties regardless of whether or not such properties are designated in the final system plan as rail properties over which rail service is required to be operated, except with respect to properties over which such service is provided by the National Railroad Passenger Corporation. “(2) If a State (or a local or regional transportation authority) W’as providing financial assistance to support the operation of rail passenger service, pursuant to a lease or agreement which was in effect immediately prior to the date of conveyance (pursuant to such section 303(b)(1)), the Corporation (or a profitable railroad) shall be bound by the service provisions of such lease or agreement for the duration of the 180-day mandatory operation period specified in paragraph (1) of this subsection. If a State or such an authority was providing financial assistance for the continuation of rail passenger service on rail properties immediately prior to such date of conveyance, it shall provide the same level of financial assistance during such 180day mandatory operation period. If no such financial assistance was being provided or if no such lease or agreement was in effect immediately prior to such date of conveyance, with respect to any such rail properties, the Corporation (or a profitable railroad) shall provide the same level of rail passenger service, for the duration of such 180-day mandatory operation period, that was provided prior to such date by the applicable railroad. If— “(A) such financial assistance is not provided; “(B) a State (or a local or regional transportation authority) has not, by the end of such 180-day mandatory operation period, offered a rail service continuation payment pursuant to subsection (c) (2) (A) of this section; “(C) an applicable rail service continuation payment pursuant to such subsection (c) (2) (A) is not paid when it is due; or “(D) a payment required under a lease or agreement, pursuant to section 303(b) (2) of this title or subsection (c) (2) (B) of this 45 USC 743. section, is not paid when it is due, the Corporation (or, where applicable, the National Railroad Passenger Corporation, a profitable railroad, or the trustee or trustees of a railroad in reorganization in the region) may (i) discontinue such rail passenger service, and (ii) with respect to rail properties not designated for inclusion in the final system plan, abandon such properties pursuant to subsections (a) and (b) of this section. “(3) Nothing in this subsection shall be construed to affect the obligation of the Corporation (or a profitable railroad), or of the trustees of the railroads in reorganization in the region, to provide rail passenger service pursuant to section 303(b)(2) of this title or subsection (c) (2) (B) of this section. “(4) If a State (or a local or regional transportation authority)— “(A) offers a rail service continuation payment, pursuant to subsection (c)(2)(A) of the section and under regulations issued by the Office pursuant to section 205(d)(5) of this Act, 45 USC 715. for the operation of rail passenger service after the 180-day mandatory operation period, and “(B) provides compensation, pursuant to paragraph (2) of this subsection, for operations conducted during the 180-day mandatory operation period, the Corporation (or a profitable railroad) shall continue to provide such service after the end of such period, except as otherwise provided in this subsection. “(5) (A) The Secretary shall reimburse the Corporation (or a profitable railroad) for any loss which is incurred by it during the 180-day mandatory operation period specified in paragragh (1) of this subsection which is not compensated for by a State (or a local or regional transportation authority). The amount, of such reimbursement shall be determined pursuant to section 17(a) (1) of the Urban Mass Transportation Act of 1964 and under regulations issued by the Office pursuant Post, p. 143. to sect ion 205 (d)(5) of this Act. “(B) The Secretary shall reimburse States, local public bodies, and agencies thereof for additional costs incurred by such States, bodies, and agencies for rail service continuation payments for rail passenger service pursuant to section 17(a) (2) of the Urban Mass Transportation Act of 1964 and under regulations issued by the Office pursuant to section 205 (d) (5) of this Act. “(C) If a dispute arises with respect to the application of any such regulations, the parties to such dispute may submit such dispute to arbitration by a third party. If the parties are unable to agree upon the selection of an arbitrator, the Chairman of the Commission shall serve in that capacity (except as to matters required to be decided by the Commission, pursuant to section 402(a) of the Rail Passenger Service Act (45 U.S.C. 562(a))). “(6) Notwithstanding any other provision of this subsection, the Corporation is not obligated to provide rail passenger service on rail properties if a State (or a local or regional transportation authority) contracts for such service to be provided on such properties by an operator other than the Corporation, except that the Corporation shall, where appropriate, provide such operator with access to such properties for such purpose. “(f) Purchase.— If an offer to purchase is made under subsection (c) (2) (C) of this section, such offer shall be accompanied by an offer of a rail service continuation payment. Such payment shall continue until the purchase transaction is completed, unless a railroad assumes operations over such rail properties of its own account pursuant to an order or authorization of the Commission. Whenever a railroad in reorganization in the region or a profitable railroad gives notice of intent to discontinue service pursuant to subsection (a) of this section, such railroad shall, upon the request of anyone apparently qualified to make an offer to purchase or to provide a rail service continuation payment, promptly make available its most recent reports on the physical condition of such property, together with such traffic and revenue data as would be required under subpart B of part 1121 of chapter X of title 49 of the Code of Federal Regulations and such other data as are necessary to ascertain the avoidable costs of providing service over such rail properties. “(g) Abandonment by Corporation.— After the rail system to be operated by the Corporation or a subsidiary thereof under the final system plan has been in operation for 2 years, the Commission may authorize the Corporation or a subsidiary thereof to abandon any rail properties as to which it determines that rail service over such properties is not required by the public convenience and necessity, if the Corporation or a subsidiary thereof can demonstrate that no State (or local or regional transportation authority) is willing to offer a rail service continuation payment pursuant to subsection (c) of this section. The Commission may, at any time after the effective date of the final system plan, authorize additional rail service in the region or authorize die abandonment of rail properties which are not being operated by the Corporation or any subsidiary or affiliate thereof or by any other person. Determinations by the Commission under this subsection shall be made pursuant to applicable provisions of the Interstate Commerce Act. “(h) Interim Abandonment.— After the date of enactment of this section and prior to the date of conveyance (pursuant to section 303 45 USC 743. (b) (1) of this title), no railroad in reorganization in the region may discontinue service or abandon any line of railroad other than in accordance with the provisions of this Act, unless (1) it is authorized to do so by the Association, and (2) no affected State (or local or regional transportation authority) reasonably opposes such action, notwithstanding any provision of any other Federal law, the constitution or law of any State, or the decision or order of, or the pendency of any proceeding before any Federal or State court, agency, or authority. “(i) Disposition of Designated Rail Properties.— No railroad in reorganization in the region and no person leased, operated or controlled by such a railroad shall sell, transfer, encumber, or otherwise dispose of rail property, or any right or interest therein, designated for transfer to the Corporation or conveyance to a profitable railroad in the final system plan, except pursuant to section 303 (b) of this title. The provisions of this subsection shall not apply to any such sale, transfer, encumbrance, or other disposition— “(1) as to which the Association generally or specifically consents in writing; “(2) which, prior to enactment of the Railroad Revitalization Ante, p. 31. and Regulatory Reform Act of 1976, had been specifically approved by a United States district court having jurisdiction over the reorganization of a railroad in reorganization under section 77 of the Bankruptcy Act (11 U.S.C. 205); or “(3) following certification to the special court, pursuant Jo section 209(c) of the Regional Rail Reorganization Act of 1973, 45 USC 719. of any such rail properties not previously so certified. “(j) Exemption.— (1) No local public body which provides mass transportation services and which is otherwise subject to the Interstate Commerce Act shall, with respect to the provision of such services, 49 USC 1. be subject to the Interstate Commerce Act or to rules, regulations and orders promulgated under such Act, except that any such local public body shall continue to be subject to applicable Federal laws pertaining to (A) safety, (B) the representation of employees for purposes of collective bargaining, and (C) employment retirement, annuity, and unemployment systems or any other provision pertaining to dealings between employees and employers. “(2) For purposes of this subsection, the term— “(A) ‘local public body’ has the meaning prescribed for such “Local public body.” term in section 12(c) (2) of the Urban Mass Transportation Act (49 U.S.C. 1608(c) (2)) and includes any person or entity which contracts with a local public body to provide transportation services: and “(B) ‘mass transportation’ has the meaning prescribed for such “Mass transportation.” term in section 12(c) (5) of the Urban Mass Transportation Act (49 U.S.C. 1608(c)(5)).”.

5. 1976

   Railroad Revitalization and Regulatory Reform Act of 1976

   Pub. L. 94–210 § 804 · 90 Stat. 31

   1. Redesignated · 45 U.S.C. § 744(d)

      Pub. L. 94–210, § 804, added subsec. (d). Former subsec. (d) redesignated (f)

   2. Amended · 45 U.S.C. § 744(d)

      Pub. L. 94–210, § 804, amended

   Source evidence

   Code amendment note
   Subsec. (d). Pub. L. 94–210, § 804, added subsec. (d). Former subsec. (d) redesignated (f) and amended.

   Enacted provision · exact public law section
   Sec. 804. termination and continuation of rail services Section 304 of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 744) is amended to read as follows: “Sec. 304. “termination and continuation of rail services (a) Discontinuance.— (1) Except as provided in subsections (c) and (f) of this section, rail service on rail properties of a railroad in reorganization in the region, or of a person leased, operated, or controlled by such a railroad, which transfers to the Corporation or to profitable railroads operating in the region all or substantially all of its rail properties designated for such conveyance in the final system plan, and rail service on rail properties of a profitable railroad operating in the region which transfers substantially all of its rail properties to the Corporation or to other railroads pursuant to the final system plan, may be discontinued, to the extent such discontinuance is not precluded by the terms of the leases and agreements referred to in section 303(b)(2) of this title, if— “(A) the final system plan does not designate rail service to lie operated over such rail properties; “(B) not sooner than 30 days following the effective date of the final system plan, the trustee or trustees of the applicable railroad in reorganization or a profitable railroad give notice in writing of intent to discontinue such service on a date certain which is not less than 60 days after the date of such notice or on the date of any conveyance ordered by the special court pursuant to section 303(b) (1) of this title, whichever is later; and “(C) the notice required by subparagraph (B) of this paragraph is sent by certified mail to the Commission; to the chief executive officer, the transportation agencies, and the government of each political subdivision of each State in which such rail properties are located; and to each shipper who has used such rail service during the previous 12 months. “(2) (A) If rail properties are not, in accordance with the designations in the final system plan, required to be operated, as a consequence of a recommended arrangement for joint use or operation of 45 USC 716. rail properties (under section 206(g) of this Act) or as part of a coordination project (under sections 206 (c) and (g) of this Act), rail service on such properties may be discontinued, subsequent to the date of conveyance of rail properties pursuant to such section 303(b)(1), 45 USC 743. if the Commission determines that such rail service on such rail properties is not compensatory and if— “(i) the petitioner and any other railroad involved in such arrangement or coordination project have, prior to filing an application for such discontinuance, entered into a binding agreement (effective on or before the effective date of such discontinuance) to carry out such arrangement or project; “(ii) such application is filed with the Commission not later than 1 year after the effective date of the final system plan; and “(iii) such discontinuance is not precluded by the terms of the leases and agreements referred to in such section 303(b) (2). “(B) For purposes of this paragraph, rail service on rail properties is compensatory if the revenue attributable to such properties from such service equals or exceeds the sum of the avoidable costs of providing such service on such properties plus a reasonable return on the value of such rail properties, as determined in accordance with the 45 USC 715. standards developed pursuant to section 205(d) (6) of this Act. “(C) The Commission shall make its final determination, with respect to any discontinuance requested under this paragraph, not later than 120 days after the date of filing of an application therefor. The applicant shall have the burden of proving that the service involved is not compensatory. If the Commission fails to make a final determination within such time, the application shall lie deemed to be granted. “(D) The Commission may issue such rules, regulations, and procedures as it deems necessary for the conduct of its functions under this paragraph. “(b) Abandonment.— (1) Except as provided in subsections (c) and (f) of this section, rail properties over which rail service has been discontinued under subsection (a) of this section may not be abandoned sooner than 120 days after the effective date of the Notice. discontinuance. Thereafter, except as provided in subsection (c) of this section, such rail properties may be abandoned upon 30 days’ notice in writing to any person (including a government entity) required to receive notice under subsection (a)(1)(C) of this section. “(2) In any case in which rail properties proposed to be abandoned under this section are designated by the final system plan as rail properties which are suitable for use for other public purposes (including roads or highways, other forms of mass transportation, conservation, and recreation), such rail properties shall not be sold, leased, exchanged, or otherwise disposed of during the 240-day period beginning on the date of notice of proposed abandonment under this section unless such rail properties have first been offered, upon reasonable terms, for acquisition for public purposes. “(3) Rail service may be discontinued, under subsection (a) of this section, and rail properties may be abandoned, under this section, notwithstanding any provision of the Interstate Commerce Act, the constitution or law of any State, or the decision of any court or administrative agency of the United States or of any State. “(c) Continuation of Rail Services.— No rail service may be discontinued and no rail properties may be abandoned, pursuant to this section— “(1) in the case of service and properties referred to in subsections (a) (1) and (b)(1) of this section, after 2 years from the effective date of the final system plan or more than 2 years after the date on which the final rail service continuation payment is received, whichever is later; or “(2) if a financially responsible person (including a government entity) offers— “(A) to provide a rail service continuation payment which is designed to cover the difference between the revenue attributable to such rail properties and the avoidable costs of providing rail service on such properties, together with a reasonable return on the value of such properties; “(B) to provide a rail service continuation payment which is payable pursuant to a lease or agreement with a State or with a local or regional transportation authority under which financial support was being provided on January 2, 1974 for the continuation of rail passenger service; or “(C) to purchase, pursuant to subsection (f) of this section, such rail properties in order to operate rail services thereon. If a rail service continuation payment is offered, pursuant to paragraph (2) (A) of this subsection, for both freight and passenger service on the same rail properties, the owner of such properties may not be entitled to more than one payment of a reasonable return on the value of such properties. “(d) Rail Freight Service.— (1) If a rail service continuation payment is offered, pursuant to subsection (c) (2) (A) of this section, for rail freight service, the person offering such payment shall designate the operator of such service and enter into an operating agreement with such operator. The person offering such payment shall designate as the operator of such service— “(A) the Corporation, if rail properties of the Corporation connect with the line of railroad involved, unless the Commission determines that such rail service continuation could be performed more efficiently and economically by another railroad; “(B) any other railroad whose rail properties connect with such line, if the Corporation’s rail properties do not so connect or if the Commission makes a determination in accordance with subparagraph (A) of this paragraph; or “(C) any responsible person (including a government entity) which is willing to operate rail service over such rail properties. A designated railroad may refuse to enter into such an operating agreement only if the Commission determines, on petition by any affected party, that the agreement would substantially impair such railroad’s ability to serve adequately its own patrons or to meet its outstanding common carrier obligations. The designated operator shall, pursuant to each such operating agreement (i) be obligated to operate rail freight service on such rail properties, and (ii) be entitled to receive, from the person offering such payment, the difference between the revenue attributable to such properties and the avoidable costs of providing service on such rail properties, together with a reasonable management fee, as determined by the Office. “(2) The trustees of a railroad in reorganization shall permit rail service to be continued on any rail properties with respect to which a rail service continuation payment operating agreement has been entered into under this subsection. Such trustees shall receive a reasonable return on the value of such properties, as determined in accordance with the standards developed pursuant to section 205(d) (6) of this Act. 45 USC 715. “(3) If necessary to prevent any disruption or loss of rail service, at any time after the date of conveyance, pursuant to section 303(b) 45 USC 743. (1) of this title, the Commission— “(A) shall take such action as may be appropriate under its existing authority (including the enforcement of common carrier requirements applicable to railroads in reorganization in the region) to ensure compliance with obligations imposed under this subsection; and “(B) shall have authority, in accordance with the provisions of section 1(16) (b) of the Interstate Commerce Act (49 U.S.C. 1 (16) (b)), to direct rail service to be provided by any designated railroad or by the trustees of a railroad in reorganization in the region, if a rail service continuation payment has been offered but an applicable operating or lease agreement is not in effect. For purposes of the preceding sentence, any compensation required as a result of such directed service shall be determined in accordance with the standards developed pursuant to section 205(d) (6) of this 45 USC 715. Jurisdiction. Act. The district courts of the United States shall have jurisdiction, upon petition by the Commission or any interested person (including a government entity), to enforce any order of the Commission issued pursuant to the exercise of its authority under this subsection, or to enjoin any designated entity or the trustees of a railroad in reorganization in the region from refusing to comply with the provisions of this subsection. “(e) Rail Passenger Service.— (1) The Corporation (or a profitable railroad) shall provide rail passenger service for a period of 180 days immediately following the date of conveyance (pursuant to section 303(b) (1) of this title), with respect to any rail properties over which a railroad in reorganization in the region, or a person leased, operated, or controlled by such a railroad, was providing rail passenger service immediately prior to such date of conveyance. Such service shall be provided on such properties regardless of whether or not such properties are designated in the final system plan as rail properties over which rail service is required to be operated, except with respect to properties over which such service is provided by the National Railroad Passenger Corporation. “(2) If a State (or a local or regional transportation authority) W’as providing financial assistance to support the operation of rail passenger service, pursuant to a lease or agreement which was in effect immediately prior to the date of conveyance (pursuant to such section 303(b)(1)), the Corporation (or a profitable railroad) shall be bound by the service provisions of such lease or agreement for the duration of the 180-day mandatory operation period specified in paragraph (1) of this subsection. If a State or such an authority was providing financial assistance for the continuation of rail passenger service on rail properties immediately prior to such date of conveyance, it shall provide the same level of financial assistance during such 180day mandatory operation period. If no such financial assistance was being provided or if no such lease or agreement was in effect immediately prior to such date of conveyance, with respect to any such rail properties, the Corporation (or a profitable railroad) shall provide the same level of rail passenger service, for the duration of such 180-day mandatory operation period, that was provided prior to such date by the applicable railroad. If— “(A) such financial assistance is not provided; “(B) a State (or a local or regional transportation authority) has not, by the end of such 180-day mandatory operation period, offered a rail service continuation payment pursuant to subsection (c) (2) (A) of this section; “(C) an applicable rail service continuation payment pursuant to such subsection (c) (2) (A) is not paid when it is due; or “(D) a payment required under a lease or agreement, pursuant to section 303(b) (2) of this title or subsection (c) (2) (B) of this 45 USC 743. section, is not paid when it is due, the Corporation (or, where applicable, the National Railroad Passenger Corporation, a profitable railroad, or the trustee or trustees of a railroad in reorganization in the region) may (i) discontinue such rail passenger service, and (ii) with respect to rail properties not designated for inclusion in the final system plan, abandon such properties pursuant to subsections (a) and (b) of this section. “(3) Nothing in this subsection shall be construed to affect the obligation of the Corporation (or a profitable railroad), or of the trustees of the railroads in reorganization in the region, to provide rail passenger service pursuant to section 303(b)(2) of this title or subsection (c) (2) (B) of this section. “(4) If a State (or a local or regional transportation authority)— “(A) offers a rail service continuation payment, pursuant to subsection (c)(2)(A) of the section and under regulations issued by the Office pursuant to section 205(d)(5) of this Act, 45 USC 715. for the operation of rail passenger service after the 180-day mandatory operation period, and “(B) provides compensation, pursuant to paragraph (2) of this subsection, for operations conducted during the 180-day mandatory operation period, the Corporation (or a profitable railroad) shall continue to provide such service after the end of such period, except as otherwise provided in this subsection. “(5) (A) The Secretary shall reimburse the Corporation (or a profitable railroad) for any loss which is incurred by it during the 180-day mandatory operation period specified in paragragh (1) of this subsection which is not compensated for by a State (or a local or regional transportation authority). The amount, of such reimbursement shall be determined pursuant to section 17(a) (1) of the Urban Mass Transportation Act of 1964 and under regulations issued by the Office pursuant Post, p. 143. to sect ion 205 (d)(5) of this Act. “(B) The Secretary shall reimburse States, local public bodies, and agencies thereof for additional costs incurred by such States, bodies, and agencies for rail service continuation payments for rail passenger service pursuant to section 17(a) (2) of the Urban Mass Transportation Act of 1964 and under regulations issued by the Office pursuant to section 205 (d) (5) of this Act. “(C) If a dispute arises with respect to the application of any such regulations, the parties to such dispute may submit such dispute to arbitration by a third party. If the parties are unable to agree upon the selection of an arbitrator, the Chairman of the Commission shall serve in that capacity (except as to matters required to be decided by the Commission, pursuant to section 402(a) of the Rail Passenger Service Act (45 U.S.C. 562(a))). “(6) Notwithstanding any other provision of this subsection, the Corporation is not obligated to provide rail passenger service on rail properties if a State (or a local or regional transportation authority) contracts for such service to be provided on such properties by an operator other than the Corporation, except that the Corporation shall, where appropriate, provide such operator with access to such properties for such purpose. “(f) Purchase.— If an offer to purchase is made under subsection (c) (2) (C) of this section, such offer shall be accompanied by an offer of a rail service continuation payment. Such payment shall continue until the purchase transaction is completed, unless a railroad assumes operations over such rail properties of its own account pursuant to an order or authorization of the Commission. Whenever a railroad in reorganization in the region or a profitable railroad gives notice of intent to discontinue service pursuant to subsection (a) of this section, such railroad shall, upon the request of anyone apparently qualified to make an offer to purchase or to provide a rail service continuation payment, promptly make available its most recent reports on the physical condition of such property, together with such traffic and revenue data as would be required under subpart B of part 1121 of chapter X of title 49 of the Code of Federal Regulations and such other data as are necessary to ascertain the avoidable costs of providing service over such rail properties. “(g) Abandonment by Corporation.— After the rail system to be operated by the Corporation or a subsidiary thereof under the final system plan has been in operation for 2 years, the Commission may authorize the Corporation or a subsidiary thereof to abandon any rail properties as to which it determines that rail service over such properties is not required by the public convenience and necessity, if the Corporation or a subsidiary thereof can demonstrate that no State (or local or regional transportation authority) is willing to offer a rail service continuation payment pursuant to subsection (c) of this section. The Commission may, at any time after the effective date of the final system plan, authorize additional rail service in the region or authorize die abandonment of rail properties which are not being operated by the Corporation or any subsidiary or affiliate thereof or by any other person. Determinations by the Commission under this subsection shall be made pursuant to applicable provisions of the Interstate Commerce Act. “(h) Interim Abandonment.— After the date of enactment of this section and prior to the date of conveyance (pursuant to section 303 45 USC 743. (b) (1) of this title), no railroad in reorganization in the region may discontinue service or abandon any line of railroad other than in accordance with the provisions of this Act, unless (1) it is authorized to do so by the Association, and (2) no affected State (or local or regional transportation authority) reasonably opposes such action, notwithstanding any provision of any other Federal law, the constitution or law of any State, or the decision or order of, or the pendency of any proceeding before any Federal or State court, agency, or authority. “(i) Disposition of Designated Rail Properties.— No railroad in reorganization in the region and no person leased, operated or controlled by such a railroad shall sell, transfer, encumber, or otherwise dispose of rail property, or any right or interest therein, designated for transfer to the Corporation or conveyance to a profitable railroad in the final system plan, except pursuant to section 303 (b) of this title. The provisions of this subsection shall not apply to any such sale, transfer, encumbrance, or other disposition— “(1) as to which the Association generally or specifically consents in writing; “(2) which, prior to enactment of the Railroad Revitalization Ante, p. 31. and Regulatory Reform Act of 1976, had been specifically approved by a United States district court having jurisdiction over the reorganization of a railroad in reorganization under section 77 of the Bankruptcy Act (11 U.S.C. 205); or “(3) following certification to the special court, pursuant Jo section 209(c) of the Regional Rail Reorganization Act of 1973, 45 USC 719. of any such rail properties not previously so certified. “(j) Exemption.— (1) No local public body which provides mass transportation services and which is otherwise subject to the Interstate Commerce Act shall, with respect to the provision of such services, 49 USC 1. be subject to the Interstate Commerce Act or to rules, regulations and orders promulgated under such Act, except that any such local public body shall continue to be subject to applicable Federal laws pertaining to (A) safety, (B) the representation of employees for purposes of collective bargaining, and (C) employment retirement, annuity, and unemployment systems or any other provision pertaining to dealings between employees and employers. “(2) For purposes of this subsection, the term— “(A) ‘local public body’ has the meaning prescribed for such “Local public body.” term in section 12(c) (2) of the Urban Mass Transportation Act (49 U.S.C. 1608(c) (2)) and includes any person or entity which contracts with a local public body to provide transportation services: and “(B) ‘mass transportation’ has the meaning prescribed for such “Mass transportation.” term in section 12(c) (5) of the Urban Mass Transportation Act (49 U.S.C. 1608(c)(5)).”.

6. 1976

   Railroad Revitalization and Regulatory Reform Act of 1976

   Pub. L. 94–210 title VI § 607(i) · 90 Stat. 31

   1. Redesignated · 45 U.S.C. § 744(e)

      Pub. L. 94–210, §§ 607(i), 804, added subsec. (e). Former subsec. (e) redesignated (g)

   2. Amended · 45 U.S.C. § 744(e)

      Pub. L. 94–210, §§ 607(i), 804, amended

   Source evidence

   Code amendment note
   Subsec. (e). Pub. L. 94–210, §§ 607(i), 804, added subsec. (e). Former subsec. (e) redesignated (g) and amended.

   Enacted provision · exact public law section
   (i) Sections 206(d)(1). 209 (c) and (d), 215(d). 304(e), and 501 (1) and (2) of such Act (45 U.S.C. 716(d)(1), 719(c) and (d), 744 (e), and 771 (1) and (2)) are amended by inserting after “Corporation” 45 USC 716, 719, 725, 744, 771. each time it appeal’s the following: “or any subsidiary thereof”.

7. 1976

   Railroad Revitalization and Regulatory Reform Act of 1976

   Pub. L. 94–210 § 804 · 90 Stat. 31

   1. Redesignated · 45 U.S.C. § 744(f)

      Pub. L. 94–210, § 804, redesignated former subsec. (d) as (f)

   2. Redesignated · 45 U.S.C. § 744(f)

      Pub. L. 94–210, § 804, substituted provisions relating to rail service continuation payments, for provisions relating to rail service continuation subsidies. Former subsec. (f) redesignated (h)

   3. Amended · 45 U.S.C. § 744(f)

      Pub. L. 94–210, § 804, amended

   Source evidence

   Code amendment note
   Subsec. (f). Pub. L. 94–210, § 804, redesignated former subsec. (d) as (f) and substituted provisions relating to rail service continuation payments, for provisions relating to rail service continuation subsidies. Former subsec. (f) redesignated (h) and amended.

   Enacted provision · exact public law section
   Sec. 804. termination and continuation of rail services Section 304 of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 744) is amended to read as follows: “Sec. 304. “termination and continuation of rail services (a) Discontinuance.— (1) Except as provided in subsections (c) and (f) of this section, rail service on rail properties of a railroad in reorganization in the region, or of a person leased, operated, or controlled by such a railroad, which transfers to the Corporation or to profitable railroads operating in the region all or substantially all of its rail properties designated for such conveyance in the final system plan, and rail service on rail properties of a profitable railroad operating in the region which transfers substantially all of its rail properties to the Corporation or to other railroads pursuant to the final system plan, may be discontinued, to the extent such discontinuance is not precluded by the terms of the leases and agreements referred to in section 303(b)(2) of this title, if— “(A) the final system plan does not designate rail service to lie operated over such rail properties; “(B) not sooner than 30 days following the effective date of the final system plan, the trustee or trustees of the applicable railroad in reorganization or a profitable railroad give notice in writing of intent to discontinue such service on a date certain which is not less than 60 days after the date of such notice or on the date of any conveyance ordered by the special court pursuant to section 303(b) (1) of this title, whichever is later; and “(C) the notice required by subparagraph (B) of this paragraph is sent by certified mail to the Commission; to the chief executive officer, the transportation agencies, and the government of each political subdivision of each State in which such rail properties are located; and to each shipper who has used such rail service during the previous 12 months. “(2) (A) If rail properties are not, in accordance with the designations in the final system plan, required to be operated, as a consequence of a recommended arrangement for joint use or operation of 45 USC 716. rail properties (under section 206(g) of this Act) or as part of a coordination project (under sections 206 (c) and (g) of this Act), rail service on such properties may be discontinued, subsequent to the date of conveyance of rail properties pursuant to such section 303(b)(1), 45 USC 743. if the Commission determines that such rail service on such rail properties is not compensatory and if— “(i) the petitioner and any other railroad involved in such arrangement or coordination project have, prior to filing an application for such discontinuance, entered into a binding agreement (effective on or before the effective date of such discontinuance) to carry out such arrangement or project; “(ii) such application is filed with the Commission not later than 1 year after the effective date of the final system plan; and “(iii) such discontinuance is not precluded by the terms of the leases and agreements referred to in such section 303(b) (2). “(B) For purposes of this paragraph, rail service on rail properties is compensatory if the revenue attributable to such properties from such service equals or exceeds the sum of the avoidable costs of providing such service on such properties plus a reasonable return on the value of such rail properties, as determined in accordance with the 45 USC 715. standards developed pursuant to section 205(d) (6) of this Act. “(C) The Commission shall make its final determination, with respect to any discontinuance requested under this paragraph, not later than 120 days after the date of filing of an application therefor. The applicant shall have the burden of proving that the service involved is not compensatory. If the Commission fails to make a final determination within such time, the application shall lie deemed to be granted. “(D) The Commission may issue such rules, regulations, and procedures as it deems necessary for the conduct of its functions under this paragraph. “(b) Abandonment.— (1) Except as provided in subsections (c) and (f) of this section, rail properties over which rail service has been discontinued under subsection (a) of this section may not be abandoned sooner than 120 days after the effective date of the Notice. discontinuance. Thereafter, except as provided in subsection (c) of this section, such rail properties may be abandoned upon 30 days’ notice in writing to any person (including a government entity) required to receive notice under subsection (a)(1)(C) of this section. “(2) In any case in which rail properties proposed to be abandoned under this section are designated by the final system plan as rail properties which are suitable for use for other public purposes (including roads or highways, other forms of mass transportation, conservation, and recreation), such rail properties shall not be sold, leased, exchanged, or otherwise disposed of during the 240-day period beginning on the date of notice of proposed abandonment under this section unless such rail properties have first been offered, upon reasonable terms, for acquisition for public purposes. “(3) Rail service may be discontinued, under subsection (a) of this section, and rail properties may be abandoned, under this section, notwithstanding any provision of the Interstate Commerce Act, the constitution or law of any State, or the decision of any court or administrative agency of the United States or of any State. “(c) Continuation of Rail Services.— No rail service may be discontinued and no rail properties may be abandoned, pursuant to this section— “(1) in the case of service and properties referred to in subsections (a) (1) and (b)(1) of this section, after 2 years from the effective date of the final system plan or more than 2 years after the date on which the final rail service continuation payment is received, whichever is later; or “(2) if a financially responsible person (including a government entity) offers— “(A) to provide a rail service continuation payment which is designed to cover the difference between the revenue attributable to such rail properties and the avoidable costs of providing rail service on such properties, together with a reasonable return on the value of such properties; “(B) to provide a rail service continuation payment which is payable pursuant to a lease or agreement with a State or with a local or regional transportation authority under which financial support was being provided on January 2, 1974 for the continuation of rail passenger service; or “(C) to purchase, pursuant to subsection (f) of this section, such rail properties in order to operate rail services thereon. If a rail service continuation payment is offered, pursuant to paragraph (2) (A) of this subsection, for both freight and passenger service on the same rail properties, the owner of such properties may not be entitled to more than one payment of a reasonable return on the value of such properties. “(d) Rail Freight Service.— (1) If a rail service continuation payment is offered, pursuant to subsection (c) (2) (A) of this section, for rail freight service, the person offering such payment shall designate the operator of such service and enter into an operating agreement with such operator. The person offering such payment shall designate as the operator of such service— “(A) the Corporation, if rail properties of the Corporation connect with the line of railroad involved, unless the Commission determines that such rail service continuation could be performed more efficiently and economically by another railroad; “(B) any other railroad whose rail properties connect with such line, if the Corporation’s rail properties do not so connect or if the Commission makes a determination in accordance with subparagraph (A) of this paragraph; or “(C) any responsible person (including a government entity) which is willing to operate rail service over such rail properties. A designated railroad may refuse to enter into such an operating agreement only if the Commission determines, on petition by any affected party, that the agreement would substantially impair such railroad’s ability to serve adequately its own patrons or to meet its outstanding common carrier obligations. The designated operator shall, pursuant to each such operating agreement (i) be obligated to operate rail freight service on such rail properties, and (ii) be entitled to receive, from the person offering such payment, the difference between the revenue attributable to such properties and the avoidable costs of providing service on such rail properties, together with a reasonable management fee, as determined by the Office. “(2) The trustees of a railroad in reorganization shall permit rail service to be continued on any rail properties with respect to which a rail service continuation payment operating agreement has been entered into under this subsection. Such trustees shall receive a reasonable return on the value of such properties, as determined in accordance with the standards developed pursuant to section 205(d) (6) of this Act. 45 USC 715. “(3) If necessary to prevent any disruption or loss of rail service, at any time after the date of conveyance, pursuant to section 303(b) 45 USC 743. (1) of this title, the Commission— “(A) shall take such action as may be appropriate under its existing authority (including the enforcement of common carrier requirements applicable to railroads in reorganization in the region) to ensure compliance with obligations imposed under this subsection; and “(B) shall have authority, in accordance with the provisions of section 1(16) (b) of the Interstate Commerce Act (49 U.S.C. 1 (16) (b)), to direct rail service to be provided by any designated railroad or by the trustees of a railroad in reorganization in the region, if a rail service continuation payment has been offered but an applicable operating or lease agreement is not in effect. For purposes of the preceding sentence, any compensation required as a result of such directed service shall be determined in accordance with the standards developed pursuant to section 205(d) (6) of this 45 USC 715. Jurisdiction. Act. The district courts of the United States shall have jurisdiction, upon petition by the Commission or any interested person (including a government entity), to enforce any order of the Commission issued pursuant to the exercise of its authority under this subsection, or to enjoin any designated entity or the trustees of a railroad in reorganization in the region from refusing to comply with the provisions of this subsection. “(e) Rail Passenger Service.— (1) The Corporation (or a profitable railroad) shall provide rail passenger service for a period of 180 days immediately following the date of conveyance (pursuant to section 303(b) (1) of this title), with respect to any rail properties over which a railroad in reorganization in the region, or a person leased, operated, or controlled by such a railroad, was providing rail passenger service immediately prior to such date of conveyance. Such service shall be provided on such properties regardless of whether or not such properties are designated in the final system plan as rail properties over which rail service is required to be operated, except with respect to properties over which such service is provided by the National Railroad Passenger Corporation. “(2) If a State (or a local or regional transportation authority) W’as providing financial assistance to support the operation of rail passenger service, pursuant to a lease or agreement which was in effect immediately prior to the date of conveyance (pursuant to such section 303(b)(1)), the Corporation (or a profitable railroad) shall be bound by the service provisions of such lease or agreement for the duration of the 180-day mandatory operation period specified in paragraph (1) of this subsection. If a State or such an authority was providing financial assistance for the continuation of rail passenger service on rail properties immediately prior to such date of conveyance, it shall provide the same level of financial assistance during such 180day mandatory operation period. If no such financial assistance was being provided or if no such lease or agreement was in effect immediately prior to such date of conveyance, with respect to any such rail properties, the Corporation (or a profitable railroad) shall provide the same level of rail passenger service, for the duration of such 180-day mandatory operation period, that was provided prior to such date by the applicable railroad. If— “(A) such financial assistance is not provided; “(B) a State (or a local or regional transportation authority) has not, by the end of such 180-day mandatory operation period, offered a rail service continuation payment pursuant to subsection (c) (2) (A) of this section; “(C) an applicable rail service continuation payment pursuant to such subsection (c) (2) (A) is not paid when it is due; or “(D) a payment required under a lease or agreement, pursuant to section 303(b) (2) of this title or subsection (c) (2) (B) of this 45 USC 743. section, is not paid when it is due, the Corporation (or, where applicable, the National Railroad Passenger Corporation, a profitable railroad, or the trustee or trustees of a railroad in reorganization in the region) may (i) discontinue such rail passenger service, and (ii) with respect to rail properties not designated for inclusion in the final system plan, abandon such properties pursuant to subsections (a) and (b) of this section. “(3) Nothing in this subsection shall be construed to affect the obligation of the Corporation (or a profitable railroad), or of the trustees of the railroads in reorganization in the region, to provide rail passenger service pursuant to section 303(b)(2) of this title or subsection (c) (2) (B) of this section. “(4) If a State (or a local or regional transportation authority)— “(A) offers a rail service continuation payment, pursuant to subsection (c)(2)(A) of the section and under regulations issued by the Office pursuant to section 205(d)(5) of this Act, 45 USC 715. for the operation of rail passenger service after the 180-day mandatory operation period, and “(B) provides compensation, pursuant to paragraph (2) of this subsection, for operations conducted during the 180-day mandatory operation period, the Corporation (or a profitable railroad) shall continue to provide such service after the end of such period, except as otherwise provided in this subsection. “(5) (A) The Secretary shall reimburse the Corporation (or a profitable railroad) for any loss which is incurred by it during the 180-day mandatory operation period specified in paragragh (1) of this subsection which is not compensated for by a State (or a local or regional transportation authority). The amount, of such reimbursement shall be determined pursuant to section 17(a) (1) of the Urban Mass Transportation Act of 1964 and under regulations issued by the Office pursuant Post, p. 143. to sect ion 205 (d)(5) of this Act. “(B) The Secretary shall reimburse States, local public bodies, and agencies thereof for additional costs incurred by such States, bodies, and agencies for rail service continuation payments for rail passenger service pursuant to section 17(a) (2) of the Urban Mass Transportation Act of 1964 and under regulations issued by the Office pursuant to section 205 (d) (5) of this Act. “(C) If a dispute arises with respect to the application of any such regulations, the parties to such dispute may submit such dispute to arbitration by a third party. If the parties are unable to agree upon the selection of an arbitrator, the Chairman of the Commission shall serve in that capacity (except as to matters required to be decided by the Commission, pursuant to section 402(a) of the Rail Passenger Service Act (45 U.S.C. 562(a))). “(6) Notwithstanding any other provision of this subsection, the Corporation is not obligated to provide rail passenger service on rail properties if a State (or a local or regional transportation authority) contracts for such service to be provided on such properties by an operator other than the Corporation, except that the Corporation shall, where appropriate, provide such operator with access to such properties for such purpose. “(f) Purchase.— If an offer to purchase is made under subsection (c) (2) (C) of this section, such offer shall be accompanied by an offer of a rail service continuation payment. Such payment shall continue until the purchase transaction is completed, unless a railroad assumes operations over such rail properties of its own account pursuant to an order or authorization of the Commission. Whenever a railroad in reorganization in the region or a profitable railroad gives notice of intent to discontinue service pursuant to subsection (a) of this section, such railroad shall, upon the request of anyone apparently qualified to make an offer to purchase or to provide a rail service continuation payment, promptly make available its most recent reports on the physical condition of such property, together with such traffic and revenue data as would be required under subpart B of part 1121 of chapter X of title 49 of the Code of Federal Regulations and such other data as are necessary to ascertain the avoidable costs of providing service over such rail properties. “(g) Abandonment by Corporation.— After the rail system to be operated by the Corporation or a subsidiary thereof under the final system plan has been in operation for 2 years, the Commission may authorize the Corporation or a subsidiary thereof to abandon any rail properties as to which it determines that rail service over such properties is not required by the public convenience and necessity, if the Corporation or a subsidiary thereof can demonstrate that no State (or local or regional transportation authority) is willing to offer a rail service continuation payment pursuant to subsection (c) of this section. The Commission may, at any time after the effective date of the final system plan, authorize additional rail service in the region or authorize die abandonment of rail properties which are not being operated by the Corporation or any subsidiary or affiliate thereof or by any other person. Determinations by the Commission under this subsection shall be made pursuant to applicable provisions of the Interstate Commerce Act. “(h) Interim Abandonment.— After the date of enactment of this section and prior to the date of conveyance (pursuant to section 303 45 USC 743. (b) (1) of this title), no railroad in reorganization in the region may discontinue service or abandon any line of railroad other than in accordance with the provisions of this Act, unless (1) it is authorized to do so by the Association, and (2) no affected State (or local or regional transportation authority) reasonably opposes such action, notwithstanding any provision of any other Federal law, the constitution or law of any State, or the decision or order of, or the pendency of any proceeding before any Federal or State court, agency, or authority. “(i) Disposition of Designated Rail Properties.— No railroad in reorganization in the region and no person leased, operated or controlled by such a railroad shall sell, transfer, encumber, or otherwise dispose of rail property, or any right or interest therein, designated for transfer to the Corporation or conveyance to a profitable railroad in the final system plan, except pursuant to section 303 (b) of this title. The provisions of this subsection shall not apply to any such sale, transfer, encumbrance, or other disposition— “(1) as to which the Association generally or specifically consents in writing; “(2) which, prior to enactment of the Railroad Revitalization Ante, p. 31. and Regulatory Reform Act of 1976, had been specifically approved by a United States district court having jurisdiction over the reorganization of a railroad in reorganization under section 77 of the Bankruptcy Act (11 U.S.C. 205); or “(3) following certification to the special court, pursuant Jo section 209(c) of the Regional Rail Reorganization Act of 1973, 45 USC 719. of any such rail properties not previously so certified. “(j) Exemption.— (1) No local public body which provides mass transportation services and which is otherwise subject to the Interstate Commerce Act shall, with respect to the provision of such services, 49 USC 1. be subject to the Interstate Commerce Act or to rules, regulations and orders promulgated under such Act, except that any such local public body shall continue to be subject to applicable Federal laws pertaining to (A) safety, (B) the representation of employees for purposes of collective bargaining, and (C) employment retirement, annuity, and unemployment systems or any other provision pertaining to dealings between employees and employers. “(2) For purposes of this subsection, the term— “(A) ‘local public body’ has the meaning prescribed for such “Local public body.” term in section 12(c) (2) of the Urban Mass Transportation Act (49 U.S.C. 1608(c) (2)) and includes any person or entity which contracts with a local public body to provide transportation services: and “(B) ‘mass transportation’ has the meaning prescribed for such “Mass transportation.” term in section 12(c) (5) of the Urban Mass Transportation Act (49 U.S.C. 1608(c)(5)).”.

8. 1976

   Railroad Revitalization and Regulatory Reform Act of 1976

   Pub. L. 94–210 § 804 · 90 Stat. 31

   1. Redesignated · 45 U.S.C. § 744(g)

      Pub. L. 94–210, § 804, redesignated former subsec. (e) as (g)

   2. Inserted · 45 U.S.C. § 744(g)

      Pub. L. 94–210, § 804, inserted reference to any subsidiary of a Corporation and provision relating to demonstration by the Corporation, etc., that no State (or local or regional transportation authority) will offer a continuation payment under subsec. (c) of this section

   Source evidence

   Code amendment note
   Subsec. (g). Pub. L. 94–210, § 804, redesignated former subsec. (e) as (g) and inserted reference to any subsidiary of a Corporation and provision relating to demonstration by the Corporation, etc., that no State (or local or regional transportation authority) will offer a continuation payment under subsec. (c) of this section.

   Enacted provision · exact public law section
   Sec. 804. termination and continuation of rail services Section 304 of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 744) is amended to read as follows: “Sec. 304. “termination and continuation of rail services (a) Discontinuance.— (1) Except as provided in subsections (c) and (f) of this section, rail service on rail properties of a railroad in reorganization in the region, or of a person leased, operated, or controlled by such a railroad, which transfers to the Corporation or to profitable railroads operating in the region all or substantially all of its rail properties designated for such conveyance in the final system plan, and rail service on rail properties of a profitable railroad operating in the region which transfers substantially all of its rail properties to the Corporation or to other railroads pursuant to the final system plan, may be discontinued, to the extent such discontinuance is not precluded by the terms of the leases and agreements referred to in section 303(b)(2) of this title, if— “(A) the final system plan does not designate rail service to lie operated over such rail properties; “(B) not sooner than 30 days following the effective date of the final system plan, the trustee or trustees of the applicable railroad in reorganization or a profitable railroad give notice in writing of intent to discontinue such service on a date certain which is not less than 60 days after the date of such notice or on the date of any conveyance ordered by the special court pursuant to section 303(b) (1) of this title, whichever is later; and “(C) the notice required by subparagraph (B) of this paragraph is sent by certified mail to the Commission; to the chief executive officer, the transportation agencies, and the government of each political subdivision of each State in which such rail properties are located; and to each shipper who has used such rail service during the previous 12 months. “(2) (A) If rail properties are not, in accordance with the designations in the final system plan, required to be operated, as a consequence of a recommended arrangement for joint use or operation of 45 USC 716. rail properties (under section 206(g) of this Act) or as part of a coordination project (under sections 206 (c) and (g) of this Act), rail service on such properties may be discontinued, subsequent to the date of conveyance of rail properties pursuant to such section 303(b)(1), 45 USC 743. if the Commission determines that such rail service on such rail properties is not compensatory and if— “(i) the petitioner and any other railroad involved in such arrangement or coordination project have, prior to filing an application for such discontinuance, entered into a binding agreement (effective on or before the effective date of such discontinuance) to carry out such arrangement or project; “(ii) such application is filed with the Commission not later than 1 year after the effective date of the final system plan; and “(iii) such discontinuance is not precluded by the terms of the leases and agreements referred to in such section 303(b) (2). “(B) For purposes of this paragraph, rail service on rail properties is compensatory if the revenue attributable to such properties from such service equals or exceeds the sum of the avoidable costs of providing such service on such properties plus a reasonable return on the value of such rail properties, as determined in accordance with the 45 USC 715. standards developed pursuant to section 205(d) (6) of this Act. “(C) The Commission shall make its final determination, with respect to any discontinuance requested under this paragraph, not later than 120 days after the date of filing of an application therefor. The applicant shall have the burden of proving that the service involved is not compensatory. If the Commission fails to make a final determination within such time, the application shall lie deemed to be granted. “(D) The Commission may issue such rules, regulations, and procedures as it deems necessary for the conduct of its functions under this paragraph. “(b) Abandonment.— (1) Except as provided in subsections (c) and (f) of this section, rail properties over which rail service has been discontinued under subsection (a) of this section may not be abandoned sooner than 120 days after the effective date of the Notice. discontinuance. Thereafter, except as provided in subsection (c) of this section, such rail properties may be abandoned upon 30 days’ notice in writing to any person (including a government entity) required to receive notice under subsection (a)(1)(C) of this section. “(2) In any case in which rail properties proposed to be abandoned under this section are designated by the final system plan as rail properties which are suitable for use for other public purposes (including roads or highways, other forms of mass transportation, conservation, and recreation), such rail properties shall not be sold, leased, exchanged, or otherwise disposed of during the 240-day period beginning on the date of notice of proposed abandonment under this section unless such rail properties have first been offered, upon reasonable terms, for acquisition for public purposes. “(3) Rail service may be discontinued, under subsection (a) of this section, and rail properties may be abandoned, under this section, notwithstanding any provision of the Interstate Commerce Act, the constitution or law of any State, or the decision of any court or administrative agency of the United States or of any State. “(c) Continuation of Rail Services.— No rail service may be discontinued and no rail properties may be abandoned, pursuant to this section— “(1) in the case of service and properties referred to in subsections (a) (1) and (b)(1) of this section, after 2 years from the effective date of the final system plan or more than 2 years after the date on which the final rail service continuation payment is received, whichever is later; or “(2) if a financially responsible person (including a government entity) offers— “(A) to provide a rail service continuation payment which is designed to cover the difference between the revenue attributable to such rail properties and the avoidable costs of providing rail service on such properties, together with a reasonable return on the value of such properties; “(B) to provide a rail service continuation payment which is payable pursuant to a lease or agreement with a State or with a local or regional transportation authority under which financial support was being provided on January 2, 1974 for the continuation of rail passenger service; or “(C) to purchase, pursuant to subsection (f) of this section, such rail properties in order to operate rail services thereon. If a rail service continuation payment is offered, pursuant to paragraph (2) (A) of this subsection, for both freight and passenger service on the same rail properties, the owner of such properties may not be entitled to more than one payment of a reasonable return on the value of such properties. “(d) Rail Freight Service.— (1) If a rail service continuation payment is offered, pursuant to subsection (c) (2) (A) of this section, for rail freight service, the person offering such payment shall designate the operator of such service and enter into an operating agreement with such operator. The person offering such payment shall designate as the operator of such service— “(A) the Corporation, if rail properties of the Corporation connect with the line of railroad involved, unless the Commission determines that such rail service continuation could be performed more efficiently and economically by another railroad; “(B) any other railroad whose rail properties connect with such line, if the Corporation’s rail properties do not so connect or if the Commission makes a determination in accordance with subparagraph (A) of this paragraph; or “(C) any responsible person (including a government entity) which is willing to operate rail service over such rail properties. A designated railroad may refuse to enter into such an operating agreement only if the Commission determines, on petition by any affected party, that the agreement would substantially impair such railroad’s ability to serve adequately its own patrons or to meet its outstanding common carrier obligations. The designated operator shall, pursuant to each such operating agreement (i) be obligated to operate rail freight service on such rail properties, and (ii) be entitled to receive, from the person offering such payment, the difference between the revenue attributable to such properties and the avoidable costs of providing service on such rail properties, together with a reasonable management fee, as determined by the Office. “(2) The trustees of a railroad in reorganization shall permit rail service to be continued on any rail properties with respect to which a rail service continuation payment operating agreement has been entered into under this subsection. Such trustees shall receive a reasonable return on the value of such properties, as determined in accordance with the standards developed pursuant to section 205(d) (6) of this Act. 45 USC 715. “(3) If necessary to prevent any disruption or loss of rail service, at any time after the date of conveyance, pursuant to section 303(b) 45 USC 743. (1) of this title, the Commission— “(A) shall take such action as may be appropriate under its existing authority (including the enforcement of common carrier requirements applicable to railroads in reorganization in the region) to ensure compliance with obligations imposed under this subsection; and “(B) shall have authority, in accordance with the provisions of section 1(16) (b) of the Interstate Commerce Act (49 U.S.C. 1 (16) (b)), to direct rail service to be provided by any designated railroad or by the trustees of a railroad in reorganization in the region, if a rail service continuation payment has been offered but an applicable operating or lease agreement is not in effect. For purposes of the preceding sentence, any compensation required as a result of such directed service shall be determined in accordance with the standards developed pursuant to section 205(d) (6) of this 45 USC 715. Jurisdiction. Act. The district courts of the United States shall have jurisdiction, upon petition by the Commission or any interested person (including a government entity), to enforce any order of the Commission issued pursuant to the exercise of its authority under this subsection, or to enjoin any designated entity or the trustees of a railroad in reorganization in the region from refusing to comply with the provisions of this subsection. “(e) Rail Passenger Service.— (1) The Corporation (or a profitable railroad) shall provide rail passenger service for a period of 180 days immediately following the date of conveyance (pursuant to section 303(b) (1) of this title), with respect to any rail properties over which a railroad in reorganization in the region, or a person leased, operated, or controlled by such a railroad, was providing rail passenger service immediately prior to such date of conveyance. Such service shall be provided on such properties regardless of whether or not such properties are designated in the final system plan as rail properties over which rail service is required to be operated, except with respect to properties over which such service is provided by the National Railroad Passenger Corporation. “(2) If a State (or a local or regional transportation authority) W’as providing financial assistance to support the operation of rail passenger service, pursuant to a lease or agreement which was in effect immediately prior to the date of conveyance (pursuant to such section 303(b)(1)), the Corporation (or a profitable railroad) shall be bound by the service provisions of such lease or agreement for the duration of the 180-day mandatory operation period specified in paragraph (1) of this subsection. If a State or such an authority was providing financial assistance for the continuation of rail passenger service on rail properties immediately prior to such date of conveyance, it shall provide the same level of financial assistance during such 180day mandatory operation period. If no such financial assistance was being provided or if no such lease or agreement was in effect immediately prior to such date of conveyance, with respect to any such rail properties, the Corporation (or a profitable railroad) shall provide the same level of rail passenger service, for the duration of such 180-day mandatory operation period, that was provided prior to such date by the applicable railroad. If— “(A) such financial assistance is not provided; “(B) a State (or a local or regional transportation authority) has not, by the end of such 180-day mandatory operation period, offered a rail service continuation payment pursuant to subsection (c) (2) (A) of this section; “(C) an applicable rail service continuation payment pursuant to such subsection (c) (2) (A) is not paid when it is due; or “(D) a payment required under a lease or agreement, pursuant to section 303(b) (2) of this title or subsection (c) (2) (B) of this 45 USC 743. section, is not paid when it is due, the Corporation (or, where applicable, the National Railroad Passenger Corporation, a profitable railroad, or the trustee or trustees of a railroad in reorganization in the region) may (i) discontinue such rail passenger service, and (ii) with respect to rail properties not designated for inclusion in the final system plan, abandon such properties pursuant to subsections (a) and (b) of this section. “(3) Nothing in this subsection shall be construed to affect the obligation of the Corporation (or a profitable railroad), or of the trustees of the railroads in reorganization in the region, to provide rail passenger service pursuant to section 303(b)(2) of this title or subsection (c) (2) (B) of this section. “(4) If a State (or a local or regional transportation authority)— “(A) offers a rail service continuation payment, pursuant to subsection (c)(2)(A) of the section and under regulations issued by the Office pursuant to section 205(d)(5) of this Act, 45 USC 715. for the operation of rail passenger service after the 180-day mandatory operation period, and “(B) provides compensation, pursuant to paragraph (2) of this subsection, for operations conducted during the 180-day mandatory operation period, the Corporation (or a profitable railroad) shall continue to provide such service after the end of such period, except as otherwise provided in this subsection. “(5) (A) The Secretary shall reimburse the Corporation (or a profitable railroad) for any loss which is incurred by it during the 180-day mandatory operation period specified in paragragh (1) of this subsection which is not compensated for by a State (or a local or regional transportation authority). The amount, of such reimbursement shall be determined pursuant to section 17(a) (1) of the Urban Mass Transportation Act of 1964 and under regulations issued by the Office pursuant Post, p. 143. to sect ion 205 (d)(5) of this Act. “(B) The Secretary shall reimburse States, local public bodies, and agencies thereof for additional costs incurred by such States, bodies, and agencies for rail service continuation payments for rail passenger service pursuant to section 17(a) (2) of the Urban Mass Transportation Act of 1964 and under regulations issued by the Office pursuant to section 205 (d) (5) of this Act. “(C) If a dispute arises with respect to the application of any such regulations, the parties to such dispute may submit such dispute to arbitration by a third party. If the parties are unable to agree upon the selection of an arbitrator, the Chairman of the Commission shall serve in that capacity (except as to matters required to be decided by the Commission, pursuant to section 402(a) of the Rail Passenger Service Act (45 U.S.C. 562(a))). “(6) Notwithstanding any other provision of this subsection, the Corporation is not obligated to provide rail passenger service on rail properties if a State (or a local or regional transportation authority) contracts for such service to be provided on such properties by an operator other than the Corporation, except that the Corporation shall, where appropriate, provide such operator with access to such properties for such purpose. “(f) Purchase.— If an offer to purchase is made under subsection (c) (2) (C) of this section, such offer shall be accompanied by an offer of a rail service continuation payment. Such payment shall continue until the purchase transaction is completed, unless a railroad assumes operations over such rail properties of its own account pursuant to an order or authorization of the Commission. Whenever a railroad in reorganization in the region or a profitable railroad gives notice of intent to discontinue service pursuant to subsection (a) of this section, such railroad shall, upon the request of anyone apparently qualified to make an offer to purchase or to provide a rail service continuation payment, promptly make available its most recent reports on the physical condition of such property, together with such traffic and revenue data as would be required under subpart B of part 1121 of chapter X of title 49 of the Code of Federal Regulations and such other data as are necessary to ascertain the avoidable costs of providing service over such rail properties. “(g) Abandonment by Corporation.— After the rail system to be operated by the Corporation or a subsidiary thereof under the final system plan has been in operation for 2 years, the Commission may authorize the Corporation or a subsidiary thereof to abandon any rail properties as to which it determines that rail service over such properties is not required by the public convenience and necessity, if the Corporation or a subsidiary thereof can demonstrate that no State (or local or regional transportation authority) is willing to offer a rail service continuation payment pursuant to subsection (c) of this section. The Commission may, at any time after the effective date of the final system plan, authorize additional rail service in the region or authorize die abandonment of rail properties which are not being operated by the Corporation or any subsidiary or affiliate thereof or by any other person. Determinations by the Commission under this subsection shall be made pursuant to applicable provisions of the Interstate Commerce Act. “(h) Interim Abandonment.— After the date of enactment of this section and prior to the date of conveyance (pursuant to section 303 45 USC 743. (b) (1) of this title), no railroad in reorganization in the region may discontinue service or abandon any line of railroad other than in accordance with the provisions of this Act, unless (1) it is authorized to do so by the Association, and (2) no affected State (or local or regional transportation authority) reasonably opposes such action, notwithstanding any provision of any other Federal law, the constitution or law of any State, or the decision or order of, or the pendency of any proceeding before any Federal or State court, agency, or authority. “(i) Disposition of Designated Rail Properties.— No railroad in reorganization in the region and no person leased, operated or controlled by such a railroad shall sell, transfer, encumber, or otherwise dispose of rail property, or any right or interest therein, designated for transfer to the Corporation or conveyance to a profitable railroad in the final system plan, except pursuant to section 303 (b) of this title. The provisions of this subsection shall not apply to any such sale, transfer, encumbrance, or other disposition— “(1) as to which the Association generally or specifically consents in writing; “(2) which, prior to enactment of the Railroad Revitalization Ante, p. 31. and Regulatory Reform Act of 1976, had been specifically approved by a United States district court having jurisdiction over the reorganization of a railroad in reorganization under section 77 of the Bankruptcy Act (11 U.S.C. 205); or “(3) following certification to the special court, pursuant Jo section 209(c) of the Regional Rail Reorganization Act of 1973, 45 USC 719. of any such rail properties not previously so certified. “(j) Exemption.— (1) No local public body which provides mass transportation services and which is otherwise subject to the Interstate Commerce Act shall, with respect to the provision of such services, 49 USC 1. be subject to the Interstate Commerce Act or to rules, regulations and orders promulgated under such Act, except that any such local public body shall continue to be subject to applicable Federal laws pertaining to (A) safety, (B) the representation of employees for purposes of collective bargaining, and (C) employment retirement, annuity, and unemployment systems or any other provision pertaining to dealings between employees and employers. “(2) For purposes of this subsection, the term— “(A) ‘local public body’ has the meaning prescribed for such “Local public body.” term in section 12(c) (2) of the Urban Mass Transportation Act (49 U.S.C. 1608(c) (2)) and includes any person or entity which contracts with a local public body to provide transportation services: and “(B) ‘mass transportation’ has the meaning prescribed for such “Mass transportation.” term in section 12(c) (5) of the Urban Mass Transportation Act (49 U.S.C. 1608(c)(5)).”.

9. 1976

   Railroad Revitalization and Regulatory Reform Act of 1976

   Pub. L. 94–210 § 804 · 90 Stat. 31

   1. Redesignated · 45 U.S.C. § 744(h)

      Pub. L. 94–210, § 804, redesignated former subsec. (f) as (h)

   2. Substituted · 45 U.S.C. § 744(h)

      Pub. L. 94–210, § 804, substituted “February 5, 1976, and prior to the date of conveyance (pursuant to section 743(b)(1) of this title)” for “January 2, 1974” made minor changes in structure

   3. Substituted · 45 U.S.C. § 744(h)

      Pub. L. 94–210, § 804, substituted “reorganization in the region may” for “reorganization may” made minor changes in structure

   Source evidence

   Code amendment note
   Subsec. (h). Pub. L. 94–210, § 804, redesignated former subsec. (f) as (h), substituted “February 5, 1976, and prior to the date of conveyance (pursuant to section 743(b)(1) of this title)” for “January 2, 1974” and “reorganization in the region may” for “reorganization may”, and made minor changes in structure.

   Enacted provision · exact public law section
   Sec. 804. termination and continuation of rail services Section 304 of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 744) is amended to read as follows: “Sec. 304. “termination and continuation of rail services (a) Discontinuance.— (1) Except as provided in subsections (c) and (f) of this section, rail service on rail properties of a railroad in reorganization in the region, or of a person leased, operated, or controlled by such a railroad, which transfers to the Corporation or to profitable railroads operating in the region all or substantially all of its rail properties designated for such conveyance in the final system plan, and rail service on rail properties of a profitable railroad operating in the region which transfers substantially all of its rail properties to the Corporation or to other railroads pursuant to the final system plan, may be discontinued, to the extent such discontinuance is not precluded by the terms of the leases and agreements referred to in section 303(b)(2) of this title, if— “(A) the final system plan does not designate rail service to lie operated over such rail properties; “(B) not sooner than 30 days following the effective date of the final system plan, the trustee or trustees of the applicable railroad in reorganization or a profitable railroad give notice in writing of intent to discontinue such service on a date certain which is not less than 60 days after the date of such notice or on the date of any conveyance ordered by the special court pursuant to section 303(b) (1) of this title, whichever is later; and “(C) the notice required by subparagraph (B) of this paragraph is sent by certified mail to the Commission; to the chief executive officer, the transportation agencies, and the government of each political subdivision of each State in which such rail properties are located; and to each shipper who has used such rail service during the previous 12 months. “(2) (A) If rail properties are not, in accordance with the designations in the final system plan, required to be operated, as a consequence of a recommended arrangement for joint use or operation of 45 USC 716. rail properties (under section 206(g) of this Act) or as part of a coordination project (under sections 206 (c) and (g) of this Act), rail service on such properties may be discontinued, subsequent to the date of conveyance of rail properties pursuant to such section 303(b)(1), 45 USC 743. if the Commission determines that such rail service on such rail properties is not compensatory and if— “(i) the petitioner and any other railroad involved in such arrangement or coordination project have, prior to filing an application for such discontinuance, entered into a binding agreement (effective on or before the effective date of such discontinuance) to carry out such arrangement or project; “(ii) such application is filed with the Commission not later than 1 year after the effective date of the final system plan; and “(iii) such discontinuance is not precluded by the terms of the leases and agreements referred to in such section 303(b) (2). “(B) For purposes of this paragraph, rail service on rail properties is compensatory if the revenue attributable to such properties from such service equals or exceeds the sum of the avoidable costs of providing such service on such properties plus a reasonable return on the value of such rail properties, as determined in accordance with the 45 USC 715. standards developed pursuant to section 205(d) (6) of this Act. “(C) The Commission shall make its final determination, with respect to any discontinuance requested under this paragraph, not later than 120 days after the date of filing of an application therefor. The applicant shall have the burden of proving that the service involved is not compensatory. If the Commission fails to make a final determination within such time, the application shall lie deemed to be granted. “(D) The Commission may issue such rules, regulations, and procedures as it deems necessary for the conduct of its functions under this paragraph. “(b) Abandonment.— (1) Except as provided in subsections (c) and (f) of this section, rail properties over which rail service has been discontinued under subsection (a) of this section may not be abandoned sooner than 120 days after the effective date of the Notice. discontinuance. Thereafter, except as provided in subsection (c) of this section, such rail properties may be abandoned upon 30 days’ notice in writing to any person (including a government entity) required to receive notice under subsection (a)(1)(C) of this section. “(2) In any case in which rail properties proposed to be abandoned under this section are designated by the final system plan as rail properties which are suitable for use for other public purposes (including roads or highways, other forms of mass transportation, conservation, and recreation), such rail properties shall not be sold, leased, exchanged, or otherwise disposed of during the 240-day period beginning on the date of notice of proposed abandonment under this section unless such rail properties have first been offered, upon reasonable terms, for acquisition for public purposes. “(3) Rail service may be discontinued, under subsection (a) of this section, and rail properties may be abandoned, under this section, notwithstanding any provision of the Interstate Commerce Act, the constitution or law of any State, or the decision of any court or administrative agency of the United States or of any State. “(c) Continuation of Rail Services.— No rail service may be discontinued and no rail properties may be abandoned, pursuant to this section— “(1) in the case of service and properties referred to in subsections (a) (1) and (b)(1) of this section, after 2 years from the effective date of the final system plan or more than 2 years after the date on which the final rail service continuation payment is received, whichever is later; or “(2) if a financially responsible person (including a government entity) offers— “(A) to provide a rail service continuation payment which is designed to cover the difference between the revenue attributable to such rail properties and the avoidable costs of providing rail service on such properties, together with a reasonable return on the value of such properties; “(B) to provide a rail service continuation payment which is payable pursuant to a lease or agreement with a State or with a local or regional transportation authority under which financial support was being provided on January 2, 1974 for the continuation of rail passenger service; or “(C) to purchase, pursuant to subsection (f) of this section, such rail properties in order to operate rail services thereon. If a rail service continuation payment is offered, pursuant to paragraph (2) (A) of this subsection, for both freight and passenger service on the same rail properties, the owner of such properties may not be entitled to more than one payment of a reasonable return on the value of such properties. “(d) Rail Freight Service.— (1) If a rail service continuation payment is offered, pursuant to subsection (c) (2) (A) of this section, for rail freight service, the person offering such payment shall designate the operator of such service and enter into an operating agreement with such operator. The person offering such payment shall designate as the operator of such service— “(A) the Corporation, if rail properties of the Corporation connect with the line of railroad involved, unless the Commission determines that such rail service continuation could be performed more efficiently and economically by another railroad; “(B) any other railroad whose rail properties connect with such line, if the Corporation’s rail properties do not so connect or if the Commission makes a determination in accordance with subparagraph (A) of this paragraph; or “(C) any responsible person (including a government entity) which is willing to operate rail service over such rail properties. A designated railroad may refuse to enter into such an operating agreement only if the Commission determines, on petition by any affected party, that the agreement would substantially impair such railroad’s ability to serve adequately its own patrons or to meet its outstanding common carrier obligations. The designated operator shall, pursuant to each such operating agreement (i) be obligated to operate rail freight service on such rail properties, and (ii) be entitled to receive, from the person offering such payment, the difference between the revenue attributable to such properties and the avoidable costs of providing service on such rail properties, together with a reasonable management fee, as determined by the Office. “(2) The trustees of a railroad in reorganization shall permit rail service to be continued on any rail properties with respect to which a rail service continuation payment operating agreement has been entered into under this subsection. Such trustees shall receive a reasonable return on the value of such properties, as determined in accordance with the standards developed pursuant to section 205(d) (6) of this Act. 45 USC 715. “(3) If necessary to prevent any disruption or loss of rail service, at any time after the date of conveyance, pursuant to section 303(b) 45 USC 743. (1) of this title, the Commission— “(A) shall take such action as may be appropriate under its existing authority (including the enforcement of common carrier requirements applicable to railroads in reorganization in the region) to ensure compliance with obligations imposed under this subsection; and “(B) shall have authority, in accordance with the provisions of section 1(16) (b) of the Interstate Commerce Act (49 U.S.C. 1 (16) (b)), to direct rail service to be provided by any designated railroad or by the trustees of a railroad in reorganization in the region, if a rail service continuation payment has been offered but an applicable operating or lease agreement is not in effect. For purposes of the preceding sentence, any compensation required as a result of such directed service shall be determined in accordance with the standards developed pursuant to section 205(d) (6) of this 45 USC 715. Jurisdiction. Act. The district courts of the United States shall have jurisdiction, upon petition by the Commission or any interested person (including a government entity), to enforce any order of the Commission issued pursuant to the exercise of its authority under this subsection, or to enjoin any designated entity or the trustees of a railroad in reorganization in the region from refusing to comply with the provisions of this subsection. “(e) Rail Passenger Service.— (1) The Corporation (or a profitable railroad) shall provide rail passenger service for a period of 180 days immediately following the date of conveyance (pursuant to section 303(b) (1) of this title), with respect to any rail properties over which a railroad in reorganization in the region, or a person leased, operated, or controlled by such a railroad, was providing rail passenger service immediately prior to such date of conveyance. Such service shall be provided on such properties regardless of whether or not such properties are designated in the final system plan as rail properties over which rail service is required to be operated, except with respect to properties over which such service is provided by the National Railroad Passenger Corporation. “(2) If a State (or a local or regional transportation authority) W’as providing financial assistance to support the operation of rail passenger service, pursuant to a lease or agreement which was in effect immediately prior to the date of conveyance (pursuant to such section 303(b)(1)), the Corporation (or a profitable railroad) shall be bound by the service provisions of such lease or agreement for the duration of the 180-day mandatory operation period specified in paragraph (1) of this subsection. If a State or such an authority was providing financial assistance for the continuation of rail passenger service on rail properties immediately prior to such date of conveyance, it shall provide the same level of financial assistance during such 180day mandatory operation period. If no such financial assistance was being provided or if no such lease or agreement was in effect immediately prior to such date of conveyance, with respect to any such rail properties, the Corporation (or a profitable railroad) shall provide the same level of rail passenger service, for the duration of such 180-day mandatory operation period, that was provided prior to such date by the applicable railroad. If— “(A) such financial assistance is not provided; “(B) a State (or a local or regional transportation authority) has not, by the end of such 180-day mandatory operation period, offered a rail service continuation payment pursuant to subsection (c) (2) (A) of this section; “(C) an applicable rail service continuation payment pursuant to such subsection (c) (2) (A) is not paid when it is due; or “(D) a payment required under a lease or agreement, pursuant to section 303(b) (2) of this title or subsection (c) (2) (B) of this 45 USC 743. section, is not paid when it is due, the Corporation (or, where applicable, the National Railroad Passenger Corporation, a profitable railroad, or the trustee or trustees of a railroad in reorganization in the region) may (i) discontinue such rail passenger service, and (ii) with respect to rail properties not designated for inclusion in the final system plan, abandon such properties pursuant to subsections (a) and (b) of this section. “(3) Nothing in this subsection shall be construed to affect the obligation of the Corporation (or a profitable railroad), or of the trustees of the railroads in reorganization in the region, to provide rail passenger service pursuant to section 303(b)(2) of this title or subsection (c) (2) (B) of this section. “(4) If a State (or a local or regional transportation authority)— “(A) offers a rail service continuation payment, pursuant to subsection (c)(2)(A) of the section and under regulations issued by the Office pursuant to section 205(d)(5) of this Act, 45 USC 715. for the operation of rail passenger service after the 180-day mandatory operation period, and “(B) provides compensation, pursuant to paragraph (2) of this subsection, for operations conducted during the 180-day mandatory operation period, the Corporation (or a profitable railroad) shall continue to provide such service after the end of such period, except as otherwise provided in this subsection. “(5) (A) The Secretary shall reimburse the Corporation (or a profitable railroad) for any loss which is incurred by it during the 180-day mandatory operation period specified in paragragh (1) of this subsection which is not compensated for by a State (or a local or regional transportation authority). The amount, of such reimbursement shall be determined pursuant to section 17(a) (1) of the Urban Mass Transportation Act of 1964 and under regulations issued by the Office pursuant Post, p. 143. to sect ion 205 (d)(5) of this Act. “(B) The Secretary shall reimburse States, local public bodies, and agencies thereof for additional costs incurred by such States, bodies, and agencies for rail service continuation payments for rail passenger service pursuant to section 17(a) (2) of the Urban Mass Transportation Act of 1964 and under regulations issued by the Office pursuant to section 205 (d) (5) of this Act. “(C) If a dispute arises with respect to the application of any such regulations, the parties to such dispute may submit such dispute to arbitration by a third party. If the parties are unable to agree upon the selection of an arbitrator, the Chairman of the Commission shall serve in that capacity (except as to matters required to be decided by the Commission, pursuant to section 402(a) of the Rail Passenger Service Act (45 U.S.C. 562(a))). “(6) Notwithstanding any other provision of this subsection, the Corporation is not obligated to provide rail passenger service on rail properties if a State (or a local or regional transportation authority) contracts for such service to be provided on such properties by an operator other than the Corporation, except that the Corporation shall, where appropriate, provide such operator with access to such properties for such purpose. “(f) Purchase.— If an offer to purchase is made under subsection (c) (2) (C) of this section, such offer shall be accompanied by an offer of a rail service continuation payment. Such payment shall continue until the purchase transaction is completed, unless a railroad assumes operations over such rail properties of its own account pursuant to an order or authorization of the Commission. Whenever a railroad in reorganization in the region or a profitable railroad gives notice of intent to discontinue service pursuant to subsection (a) of this section, such railroad shall, upon the request of anyone apparently qualified to make an offer to purchase or to provide a rail service continuation payment, promptly make available its most recent reports on the physical condition of such property, together with such traffic and revenue data as would be required under subpart B of part 1121 of chapter X of title 49 of the Code of Federal Regulations and such other data as are necessary to ascertain the avoidable costs of providing service over such rail properties. “(g) Abandonment by Corporation.— After the rail system to be operated by the Corporation or a subsidiary thereof under the final system plan has been in operation for 2 years, the Commission may authorize the Corporation or a subsidiary thereof to abandon any rail properties as to which it determines that rail service over such properties is not required by the public convenience and necessity, if the Corporation or a subsidiary thereof can demonstrate that no State (or local or regional transportation authority) is willing to offer a rail service continuation payment pursuant to subsection (c) of this section. The Commission may, at any time after the effective date of the final system plan, authorize additional rail service in the region or authorize die abandonment of rail properties which are not being operated by the Corporation or any subsidiary or affiliate thereof or by any other person. Determinations by the Commission under this subsection shall be made pursuant to applicable provisions of the Interstate Commerce Act. “(h) Interim Abandonment.— After the date of enactment of this section and prior to the date of conveyance (pursuant to section 303 45 USC 743. (b) (1) of this title), no railroad in reorganization in the region may discontinue service or abandon any line of railroad other than in accordance with the provisions of this Act, unless (1) it is authorized to do so by the Association, and (2) no affected State (or local or regional transportation authority) reasonably opposes such action, notwithstanding any provision of any other Federal law, the constitution or law of any State, or the decision or order of, or the pendency of any proceeding before any Federal or State court, agency, or authority. “(i) Disposition of Designated Rail Properties.— No railroad in reorganization in the region and no person leased, operated or controlled by such a railroad shall sell, transfer, encumber, or otherwise dispose of rail property, or any right or interest therein, designated for transfer to the Corporation or conveyance to a profitable railroad in the final system plan, except pursuant to section 303 (b) of this title. The provisions of this subsection shall not apply to any such sale, transfer, encumbrance, or other disposition— “(1) as to which the Association generally or specifically consents in writing; “(2) which, prior to enactment of the Railroad Revitalization Ante, p. 31. and Regulatory Reform Act of 1976, had been specifically approved by a United States district court having jurisdiction over the reorganization of a railroad in reorganization under section 77 of the Bankruptcy Act (11 U.S.C. 205); or “(3) following certification to the special court, pursuant Jo section 209(c) of the Regional Rail Reorganization Act of 1973, 45 USC 719. of any such rail properties not previously so certified. “(j) Exemption.— (1) No local public body which provides mass transportation services and which is otherwise subject to the Interstate Commerce Act shall, with respect to the provision of such services, 49 USC 1. be subject to the Interstate Commerce Act or to rules, regulations and orders promulgated under such Act, except that any such local public body shall continue to be subject to applicable Federal laws pertaining to (A) safety, (B) the representation of employees for purposes of collective bargaining, and (C) employment retirement, annuity, and unemployment systems or any other provision pertaining to dealings between employees and employers. “(2) For purposes of this subsection, the term— “(A) ‘local public body’ has the meaning prescribed for such “Local public body.” term in section 12(c) (2) of the Urban Mass Transportation Act (49 U.S.C. 1608(c) (2)) and includes any person or entity which contracts with a local public body to provide transportation services: and “(B) ‘mass transportation’ has the meaning prescribed for such “Mass transportation.” term in section 12(c) (5) of the Urban Mass Transportation Act (49 U.S.C. 1608(c)(5)).”.

10. 1976

    Railroad Revitalization and Regulatory Reform Act of 1976

    Pub. L. 94–210 § 804 · 90 Stat. 31

    Added · 45 U.S.C. § 744(i); 45 U.S.C. § 744(j)

    Pub. L. 94–210, § 804, added subsecs. (i) and (j)

    Source evidence

    Code amendment note
    Subsecs. (i), (j). Pub. L. 94–210, § 804, added subsecs. (i) and (j).

    Enacted provision · exact public law section
    Sec. 804. termination and continuation of rail services Section 304 of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 744) is amended to read as follows: “Sec. 304. “termination and continuation of rail services (a) Discontinuance.— (1) Except as provided in subsections (c) and (f) of this section, rail service on rail properties of a railroad in reorganization in the region, or of a person leased, operated, or controlled by such a railroad, which transfers to the Corporation or to profitable railroads operating in the region all or substantially all of its rail properties designated for such conveyance in the final system plan, and rail service on rail properties of a profitable railroad operating in the region which transfers substantially all of its rail properties to the Corporation or to other railroads pursuant to the final system plan, may be discontinued, to the extent such discontinuance is not precluded by the terms of the leases and agreements referred to in section 303(b)(2) of this title, if— “(A) the final system plan does not designate rail service to lie operated over such rail properties; “(B) not sooner than 30 days following the effective date of the final system plan, the trustee or trustees of the applicable railroad in reorganization or a profitable railroad give notice in writing of intent to discontinue such service on a date certain which is not less than 60 days after the date of such notice or on the date of any conveyance ordered by the special court pursuant to section 303(b) (1) of this title, whichever is later; and “(C) the notice required by subparagraph (B) of this paragraph is sent by certified mail to the Commission; to the chief executive officer, the transportation agencies, and the government of each political subdivision of each State in which such rail properties are located; and to each shipper who has used such rail service during the previous 12 months. “(2) (A) If rail properties are not, in accordance with the designations in the final system plan, required to be operated, as a consequence of a recommended arrangement for joint use or operation of 45 USC 716. rail properties (under section 206(g) of this Act) or as part of a coordination project (under sections 206 (c) and (g) of this Act), rail service on such properties may be discontinued, subsequent to the date of conveyance of rail properties pursuant to such section 303(b)(1), 45 USC 743. if the Commission determines that such rail service on such rail properties is not compensatory and if— “(i) the petitioner and any other railroad involved in such arrangement or coordination project have, prior to filing an application for such discontinuance, entered into a binding agreement (effective on or before the effective date of such discontinuance) to carry out such arrangement or project; “(ii) such application is filed with the Commission not later than 1 year after the effective date of the final system plan; and “(iii) such discontinuance is not precluded by the terms of the leases and agreements referred to in such section 303(b) (2). “(B) For purposes of this paragraph, rail service on rail properties is compensatory if the revenue attributable to such properties from such service equals or exceeds the sum of the avoidable costs of providing such service on such properties plus a reasonable return on the value of such rail properties, as determined in accordance with the 45 USC 715. standards developed pursuant to section 205(d) (6) of this Act. “(C) The Commission shall make its final determination, with respect to any discontinuance requested under this paragraph, not later than 120 days after the date of filing of an application therefor. The applicant shall have the burden of proving that the service involved is not compensatory. If the Commission fails to make a final determination within such time, the application shall lie deemed to be granted. “(D) The Commission may issue such rules, regulations, and procedures as it deems necessary for the conduct of its functions under this paragraph. “(b) Abandonment.— (1) Except as provided in subsections (c) and (f) of this section, rail properties over which rail service has been discontinued under subsection (a) of this section may not be abandoned sooner than 120 days after the effective date of the Notice. discontinuance. Thereafter, except as provided in subsection (c) of this section, such rail properties may be abandoned upon 30 days’ notice in writing to any person (including a government entity) required to receive notice under subsection (a)(1)(C) of this section. “(2) In any case in which rail properties proposed to be abandoned under this section are designated by the final system plan as rail properties which are suitable for use for other public purposes (including roads or highways, other forms of mass transportation, conservation, and recreation), such rail properties shall not be sold, leased, exchanged, or otherwise disposed of during the 240-day period beginning on the date of notice of proposed abandonment under this section unless such rail properties have first been offered, upon reasonable terms, for acquisition for public purposes. “(3) Rail service may be discontinued, under subsection (a) of this section, and rail properties may be abandoned, under this section, notwithstanding any provision of the Interstate Commerce Act, the constitution or law of any State, or the decision of any court or administrative agency of the United States or of any State. “(c) Continuation of Rail Services.— No rail service may be discontinued and no rail properties may be abandoned, pursuant to this section— “(1) in the case of service and properties referred to in subsections (a) (1) and (b)(1) of this section, after 2 years from the effective date of the final system plan or more than 2 years after the date on which the final rail service continuation payment is received, whichever is later; or “(2) if a financially responsible person (including a government entity) offers— “(A) to provide a rail service continuation payment which is designed to cover the difference between the revenue attributable to such rail properties and the avoidable costs of providing rail service on such properties, together with a reasonable return on the value of such properties; “(B) to provide a rail service continuation payment which is payable pursuant to a lease or agreement with a State or with a local or regional transportation authority under which financial support was being provided on January 2, 1974 for the continuation of rail passenger service; or “(C) to purchase, pursuant to subsection (f) of this section, such rail properties in order to operate rail services thereon. If a rail service continuation payment is offered, pursuant to paragraph (2) (A) of this subsection, for both freight and passenger service on the same rail properties, the owner of such properties may not be entitled to more than one payment of a reasonable return on the value of such properties. “(d) Rail Freight Service.— (1) If a rail service continuation payment is offered, pursuant to subsection (c) (2) (A) of this section, for rail freight service, the person offering such payment shall designate the operator of such service and enter into an operating agreement with such operator. The person offering such payment shall designate as the operator of such service— “(A) the Corporation, if rail properties of the Corporation connect with the line of railroad involved, unless the Commission determines that such rail service continuation could be performed more efficiently and economically by another railroad; “(B) any other railroad whose rail properties connect with such line, if the Corporation’s rail properties do not so connect or if the Commission makes a determination in accordance with subparagraph (A) of this paragraph; or “(C) any responsible person (including a government entity) which is willing to operate rail service over such rail properties. A designated railroad may refuse to enter into such an operating agreement only if the Commission determines, on petition by any affected party, that the agreement would substantially impair such railroad’s ability to serve adequately its own patrons or to meet its outstanding common carrier obligations. The designated operator shall, pursuant to each such operating agreement (i) be obligated to operate rail freight service on such rail properties, and (ii) be entitled to receive, from the person offering such payment, the difference between the revenue attributable to such properties and the avoidable costs of providing service on such rail properties, together with a reasonable management fee, as determined by the Office. “(2) The trustees of a railroad in reorganization shall permit rail service to be continued on any rail properties with respect to which a rail service continuation payment operating agreement has been entered into under this subsection. Such trustees shall receive a reasonable return on the value of such properties, as determined in accordance with the standards developed pursuant to section 205(d) (6) of this Act. 45 USC 715. “(3) If necessary to prevent any disruption or loss of rail service, at any time after the date of conveyance, pursuant to section 303(b) 45 USC 743. (1) of this title, the Commission— “(A) shall take such action as may be appropriate under its existing authority (including the enforcement of common carrier requirements applicable to railroads in reorganization in the region) to ensure compliance with obligations imposed under this subsection; and “(B) shall have authority, in accordance with the provisions of section 1(16) (b) of the Interstate Commerce Act (49 U.S.C. 1 (16) (b)), to direct rail service to be provided by any designated railroad or by the trustees of a railroad in reorganization in the region, if a rail service continuation payment has been offered but an applicable operating or lease agreement is not in effect. For purposes of the preceding sentence, any compensation required as a result of such directed service shall be determined in accordance with the standards developed pursuant to section 205(d) (6) of this 45 USC 715. Jurisdiction. Act. The district courts of the United States shall have jurisdiction, upon petition by the Commission or any interested person (including a government entity), to enforce any order of the Commission issued pursuant to the exercise of its authority under this subsection, or to enjoin any designated entity or the trustees of a railroad in reorganization in the region from refusing to comply with the provisions of this subsection. “(e) Rail Passenger Service.— (1) The Corporation (or a profitable railroad) shall provide rail passenger service for a period of 180 days immediately following the date of conveyance (pursuant to section 303(b) (1) of this title), with respect to any rail properties over which a railroad in reorganization in the region, or a person leased, operated, or controlled by such a railroad, was providing rail passenger service immediately prior to such date of conveyance. Such service shall be provided on such properties regardless of whether or not such properties are designated in the final system plan as rail properties over which rail service is required to be operated, except with respect to properties over which such service is provided by the National Railroad Passenger Corporation. “(2) If a State (or a local or regional transportation authority) W’as providing financial assistance to support the operation of rail passenger service, pursuant to a lease or agreement which was in effect immediately prior to the date of conveyance (pursuant to such section 303(b)(1)), the Corporation (or a profitable railroad) shall be bound by the service provisions of such lease or agreement for the duration of the 180-day mandatory operation period specified in paragraph (1) of this subsection. If a State or such an authority was providing financial assistance for the continuation of rail passenger service on rail properties immediately prior to such date of conveyance, it shall provide the same level of financial assistance during such 180day mandatory operation period. If no such financial assistance was being provided or if no such lease or agreement was in effect immediately prior to such date of conveyance, with respect to any such rail properties, the Corporation (or a profitable railroad) shall provide the same level of rail passenger service, for the duration of such 180-day mandatory operation period, that was provided prior to such date by the applicable railroad. If— “(A) such financial assistance is not provided; “(B) a State (or a local or regional transportation authority) has not, by the end of such 180-day mandatory operation period, offered a rail service continuation payment pursuant to subsection (c) (2) (A) of this section; “(C) an applicable rail service continuation payment pursuant to such subsection (c) (2) (A) is not paid when it is due; or “(D) a payment required under a lease or agreement, pursuant to section 303(b) (2) of this title or subsection (c) (2) (B) of this 45 USC 743. section, is not paid when it is due, the Corporation (or, where applicable, the National Railroad Passenger Corporation, a profitable railroad, or the trustee or trustees of a railroad in reorganization in the region) may (i) discontinue such rail passenger service, and (ii) with respect to rail properties not designated for inclusion in the final system plan, abandon such properties pursuant to subsections (a) and (b) of this section. “(3) Nothing in this subsection shall be construed to affect the obligation of the Corporation (or a profitable railroad), or of the trustees of the railroads in reorganization in the region, to provide rail passenger service pursuant to section 303(b)(2) of this title or subsection (c) (2) (B) of this section. “(4) If a State (or a local or regional transportation authority)— “(A) offers a rail service continuation payment, pursuant to subsection (c)(2)(A) of the section and under regulations issued by the Office pursuant to section 205(d)(5) of this Act, 45 USC 715. for the operation of rail passenger service after the 180-day mandatory operation period, and “(B) provides compensation, pursuant to paragraph (2) of this subsection, for operations conducted during the 180-day mandatory operation period, the Corporation (or a profitable railroad) shall continue to provide such service after the end of such period, except as otherwise provided in this subsection. “(5) (A) The Secretary shall reimburse the Corporation (or a profitable railroad) for any loss which is incurred by it during the 180-day mandatory operation period specified in paragragh (1) of this subsection which is not compensated for by a State (or a local or regional transportation authority). The amount, of such reimbursement shall be determined pursuant to section 17(a) (1) of the Urban Mass Transportation Act of 1964 and under regulations issued by the Office pursuant Post, p. 143. to sect ion 205 (d)(5) of this Act. “(B) The Secretary shall reimburse States, local public bodies, and agencies thereof for additional costs incurred by such States, bodies, and agencies for rail service continuation payments for rail passenger service pursuant to section 17(a) (2) of the Urban Mass Transportation Act of 1964 and under regulations issued by the Office pursuant to section 205 (d) (5) of this Act. “(C) If a dispute arises with respect to the application of any such regulations, the parties to such dispute may submit such dispute to arbitration by a third party. If the parties are unable to agree upon the selection of an arbitrator, the Chairman of the Commission shall serve in that capacity (except as to matters required to be decided by the Commission, pursuant to section 402(a) of the Rail Passenger Service Act (45 U.S.C. 562(a))). “(6) Notwithstanding any other provision of this subsection, the Corporation is not obligated to provide rail passenger service on rail properties if a State (or a local or regional transportation authority) contracts for such service to be provided on such properties by an operator other than the Corporation, except that the Corporation shall, where appropriate, provide such operator with access to such properties for such purpose. “(f) Purchase.— If an offer to purchase is made under subsection (c) (2) (C) of this section, such offer shall be accompanied by an offer of a rail service continuation payment. Such payment shall continue until the purchase transaction is completed, unless a railroad assumes operations over such rail properties of its own account pursuant to an order or authorization of the Commission. Whenever a railroad in reorganization in the region or a profitable railroad gives notice of intent to discontinue service pursuant to subsection (a) of this section, such railroad shall, upon the request of anyone apparently qualified to make an offer to purchase or to provide a rail service continuation payment, promptly make available its most recent reports on the physical condition of such property, together with such traffic and revenue data as would be required under subpart B of part 1121 of chapter X of title 49 of the Code of Federal Regulations and such other data as are necessary to ascertain the avoidable costs of providing service over such rail properties. “(g) Abandonment by Corporation.— After the rail system to be operated by the Corporation or a subsidiary thereof under the final system plan has been in operation for 2 years, the Commission may authorize the Corporation or a subsidiary thereof to abandon any rail properties as to which it determines that rail service over such properties is not required by the public convenience and necessity, if the Corporation or a subsidiary thereof can demonstrate that no State (or local or regional transportation authority) is willing to offer a rail service continuation payment pursuant to subsection (c) of this section. The Commission may, at any time after the effective date of the final system plan, authorize additional rail service in the region or authorize die abandonment of rail properties which are not being operated by the Corporation or any subsidiary or affiliate thereof or by any other person. Determinations by the Commission under this subsection shall be made pursuant to applicable provisions of the Interstate Commerce Act. “(h) Interim Abandonment.— After the date of enactment of this section and prior to the date of conveyance (pursuant to section 303 45 USC 743. (b) (1) of this title), no railroad in reorganization in the region may discontinue service or abandon any line of railroad other than in accordance with the provisions of this Act, unless (1) it is authorized to do so by the Association, and (2) no affected State (or local or regional transportation authority) reasonably opposes such action, notwithstanding any provision of any other Federal law, the constitution or law of any State, or the decision or order of, or the pendency of any proceeding before any Federal or State court, agency, or authority. “(i) Disposition of Designated Rail Properties.— No railroad in reorganization in the region and no person leased, operated or controlled by such a railroad shall sell, transfer, encumber, or otherwise dispose of rail property, or any right or interest therein, designated for transfer to the Corporation or conveyance to a profitable railroad in the final system plan, except pursuant to section 303 (b) of this title. The provisions of this subsection shall not apply to any such sale, transfer, encumbrance, or other disposition— “(1) as to which the Association generally or specifically consents in writing; “(2) which, prior to enactment of the Railroad Revitalization Ante, p. 31. and Regulatory Reform Act of 1976, had been specifically approved by a United States district court having jurisdiction over the reorganization of a railroad in reorganization under section 77 of the Bankruptcy Act (11 U.S.C. 205); or “(3) following certification to the special court, pursuant Jo section 209(c) of the Regional Rail Reorganization Act of 1973, 45 USC 719. of any such rail properties not previously so certified. “(j) Exemption.— (1) No local public body which provides mass transportation services and which is otherwise subject to the Interstate Commerce Act shall, with respect to the provision of such services, 49 USC 1. be subject to the Interstate Commerce Act or to rules, regulations and orders promulgated under such Act, except that any such local public body shall continue to be subject to applicable Federal laws pertaining to (A) safety, (B) the representation of employees for purposes of collective bargaining, and (C) employment retirement, annuity, and unemployment systems or any other provision pertaining to dealings between employees and employers. “(2) For purposes of this subsection, the term— “(A) ‘local public body’ has the meaning prescribed for such “Local public body.” term in section 12(c) (2) of the Urban Mass Transportation Act (49 U.S.C. 1608(c) (2)) and includes any person or entity which contracts with a local public body to provide transportation services: and “(B) ‘mass transportation’ has the meaning prescribed for such “Mass transportation.” term in section 12(c) (5) of the Urban Mass Transportation Act (49 U.S.C. 1608(c)(5)).”.

11. 1976

    Rail Amendments of 1976

    Pub. L. 94–555 § 205(a) · 90 Stat. 2613

    Added · 45 U.S.C. § 744(d)(4)

    Pub. L. 94–555, § 205(a), added par. (4)

    Source evidence

    Code amendment note
    Subsec. (d)(4). Pub. L. 94–555, § 205(a), added par. (4).

    Enacted provision · exact public law section
    (a) Section 304(d) of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 744(d)) is amended by adding at the end thereof the following new paragraph: “(4) No determination of reasonable payment for the use of rail properties of a railroad in reorganization in the region, and no determination of value of rail properties of such a railroad (including supporting or related documents or reports of any kind) which is made in connection with any lease agreement, contract of sale, or other agreement or understanding which is entered into after the date of enactment of the Rail Transportation Improvement Act— “(A) pursuant to this section: or “(B) pursuant to section 402 of this Act or section 17 of the 45 USC 562. Urban Mass Transportation Act of 1964 (49 U.S.C. 1613), shall be admitted as evidence, or used for any other purpose, in any civil action, or any other proceeding for damages or compensation, arising under this Act.”.

12. 1976

    Rail Amendments of 1976

    Pub. L. 94–555 § 205(b) · 90 Stat. 2613

    1. Redesignated · 45 U.S.C. § 744(e)(5)(D)

       Pub. L. 94–555, § 205(b), redesignated former subpar. (C) as (D)

    2. Added · 45 U.S.C. § 744(e)(5)(D)

       Pub. L. 94–555, § 205(b), added subpar. (C)

    Source evidence

    Code amendment note
    Subsec. (e)(5)(D). Pub. L. 94–555, § 205(b), redesignated former subpar. (C) as (D) and added subpar. (C).

    Enacted provision · exact public law section
    (b) Section 304(e)(5) of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 744(e)) is amended by redesignating subparagraph (C) thereof as subparagraph (D), and by inserting immediately after subparagraph (B) thereof the following new subparagraph,: “(C) For purposes of the obligation of the Secretary to reimburse the Corporation (or a profitable railroad) or States, local public bodies, and agencies thereof under subparagraphs (A) and (B) of this paragraph, the level of rail passenger service shall be determined on the basis of train miles, ear miles, or some other appropriate indicia of scheduled train movements. Programs to correct deferred maintenance on rolling stock, right-of-way, and other facilities which are designed to maintain service, meet on-time performance, and maintain a reasonable degree of passenger comfort (and costs incurred incident thereto) shall be included within the meaning of the term “loss” as used in subparagraph (A) of this paragraph and within the meaning of the term “additional costs” as used in subparagraph (B) of this paragraph and section 17(a)(2) of the Urban Mass Transportation Act of 1964 (49 U.S.C. 1613(a)(2)).”.

13. 1976

    Rail Amendments of 1976

    Pub. L. 94–555 § 206(1) · 90 Stat. 2613

    Inserted · 45 U.S.C. § 744(j)(1)

    Pub. L. 94–555, § 206(1), inserted limitation “by rail” to mass transportation services, and provided that any local body providing mass transportation services by rail is exempted from the rules, regulations, and orders promulgated under the Interstate Commerce Act, if interstate fares or application to the Interstate Commerce Commission for a change in such fares is subject to the approval or disapproval of the Governor of any state in which it provides services

    Source evidence

    Code amendment note
    Subsec. (j)(1). Pub. L. 94–555, § 206(1), inserted limitation “by rail” to mass transportation services, and provided that any local body providing mass transportation services by rail is exempted from the rules, regulations, and orders promulgated under the Interstate Commerce Act, if interstate fares or application to the Interstate Commerce Commission for a change in such fares is subject to the approval or disapproval of the Governor of any state in which it provides services.

    Enacted provision · exact public law section
    (1) by striking out paragraph (1) thereof and inserting in lieu thereof the following: “(1) (A) Except as provided in subparagraph (B) of tins paragraph, no local public body which provides mass transportation services by rail, and which is otherwise subject to the. Interstate Commerce Act shall, with respect to the provision of such services, be subject to the Interstate Commerce Act or to rules, regulations, and orders promulgated 49 USC prec. 1 note. under such Act, if the interstate fares, or the ability to apply to the Interstate Commerce Commission for changes thereto, of such local public body is subject to approval or disapproval by a Governor of any State in which it provides services. “(B) Any local public body described in subparagraph (A) of this paragraph shall continue to be subject to applicable Federal laws pertaining to (i) safety, (ii) the representation of employees for purposes of collective bargaining, and (iii) employment retirement, annuity, and unemployment systems or any other provision pertaining to dealings between employees and employers.”; and

14. 1976

    Rail Amendments of 1976

    Pub. L. 94–555 § 206(2) · 90 Stat. 2613

    Substituted · 45 U.S.C. § 744(j)(2)(B)

    Pub. L. 94–555, § 206(2), substituted definition of “mass transportation services” for “mass transportation”

    Source evidence

    Code amendment note
    Subsec. (j)(2)(B). Pub. L. 94–555, § 206(2), substituted definition of “mass transportation services” for “mass transportation”.

    Enacted provision · exact public law section
    (2) by striking out paragraph (2)(B) thereof and inserting in “Mass transportation services.” lieu thereof the following: “(B) ‘mass transportation services’ means transportation services described in section 12(c)(5) of the Urban Mass Transportation Act (49 U.S.C, 1608(c)(5)) which are provided by rail.”.

15. 1978

    Pub. L. 95–473 § 4(b) · 92 Stat. 1337

    Struck · 45 U.S.C. § 744(j)

    Pub. L. 95–473 struck out subsec. (j) which provided for exempt rail mass transportation not under the jurisdiction of the Interstate Commerce Commission

    Source evidence

    Code amendment note
    Subsec. (j). Pub. L. 95–473 struck out subsec. (j) which provided for exempt rail mass transportation not under the jurisdiction of the Interstate Commerce Commission.

    Enacted provision · exact public law section
    (b) The laws specified in the following schedule are repealed except as provided in subsection (c) of this section and except for rights and duties that matured, penalties that were incurred, and proceedings that were begun before the date of enactment of this Act: Schedule of Laws Repealed Statutes at Large Date Chapter or Public Law Section Statues at Large Volume Page 1887 Feb. 4 104 (less 25,203(a) (22), (23), 204(a)(1) (“qualifications” through period), (a)(2) (“qualifications” through period), (a)(3), (a)(3a), (a)(5), 220(f), 226). 24 379 1889 Mar. 2 382 25 855. 411 1 (proviso) 25 954. 1891 Feb. 10 128 26 743. 1893 Feb. 11 83 27 443. 1895 Feb. 8 61 28 643. 1903 Feb. 19 708 32 847. 1906 Mar. 7 P. R. 8 34 823. Mar. 21 P. R. 11 34 824. June 29 3591 34 584. 1908 Apr. 13 143 35 60. 1909 Feb. 25 193 35 648. 1910 June 18 309 36 539. 1912 Aug. 24 390 11 (less last par. on p. 567) 37 566. 1913 Mar. 1 92 37 701. Oct. 22 32 1 (last full par. on p. 219 and all language before the heading “United States Courts” on p. 221). 38 219, 221. 1914 Aug. 1 223 1 (5th full par.) 38 627. 1915 Mar. 4 176 38 1196. 1916 Aug. 9 301 39 441.   29 417 1 (2d full par.) 39 604. 1917 May 29 23 40 101. Aug. 9 50 40 270.   10 51 40 272. 1920 Feb. 28 91 (less 1, 213, 441 “Sec. 26,” 500) 41 456. May 8 172 1 (1st par.) 41 590. 1921 Feb. 26 72 41 1145.    27 81 41 1149. June 10 20 42 27. 1922 Feb. 24 70 42 393. June 7 210 42 624. Aug. 18 280 42 827. Sept. 22 413 42 1025. 1923 Mar. 3 233 42 1443. 1924 June 7 325 43 633. 1925 Jan. 30 120 43 801. 1926 July 3 761 44 835. Statutes at Large Date Chapter or Public Law Section Statues at Large Volume Page 1927 Feb. 26 217 44 1247. Mar. 4 510 (less 6) 44 1446. 1929 Jan. 19 79 45 1084. 1930 Apr. 23 208 46 251. 1932 Mar. 15 78 47 65. 1933 Feb. 28 136 47 1368. June 16 91 48 211. 1934 June 13 498 48 954.    19 648 1 (2d full par.) 48 1056.    652 602(b) 48 1102. 1935 Feb. 2 3 3 49 19. May 23 136 49 287. June 14 247 49 376. July 16 383 49 481. Aug. 9 498 (less 1 “Sec. 204(a)(1) (‘qualifications’ through period), (a)(2) (‘qualifications’ through period), (a)(3), (a)(5), 225”). 49 543.    12 509 49 607. 1937 July 5 432 50 475. Aug. 25 776 50 809. 1938 June 23 601 1107(j) 52 1029.    29 811 52 1236. 1940 Jan. 7 938 54 1226. Sept. 18 722 (less 14(b), 20(b)(4), 24 “Sec. 220 (f)”, 322, 331) 54 898. 1942 Mar. 27 199 101–103 (title I) 56 176. May 16 318 56 284. Aug. 7 552 56 746. 1943 Nov. 12 299 57 590. 1944 Sept. 27 423 58 751. 1945 May 16 128 59 169. Dec. 12 573 59 606. 1946 Feb. 20 12 60 21. 1948 Apr. 9 180 (less 3) 62 162. June 3 386 62 295.   12 457 62 386.   17 491 62 472.   24 622 62 602. 1949 May 24 139 133 63 108. June 29 272 63 280. July 26 361 63 479. Aug. 2 379 63 485. 1950 Sept. 1 835 64 574. Dec. 20 1140 64 1113. 1952 June 27 477 402(g) 66 277. July 3 570 1(a)(25), (26) 66 332.    9 599 66 479.    10 648 66 542.    16 881 66 724. 1953 June 30 165 67 115. July 31 292 67 244. Statutes at Large Date Chapter or Public Law Section Statues at Large Volume Page 1954 July 22 563 68 526. 1956 July 27 759 70 702. Aug. 3 928 70 983. 1957 July 11 85–99 71 292. Aug. 13 85–124 71 343.    14 85–135 71 352.    16 85–150 71 369.    22 85–163 71 411.    28 85–176 71 452.    31 85–246 71 564. Sept. 7 85–309 71 631. 1958 Aug. 12 85–625 72 568.    23 85–728 72 812.    26 85–762 1 72 859. Sept. 2 85–857 13(a) 72 1264. 1960 June 11 86–507 1(38) 74 202. June 12 86–615 74 382. 1961 Apr. 1 87–16 75 41. Sept. 14 87–247 75 517. 1962 Aug. 24 87–595 76 397. Sept. 27 87–707 76 635. Oct. 15 87–805 76 911. 1963 Dec. 17 88–208 77 402. 1965 July 24 89–86 79 263.    27 89–96 79 284. Sept. 6 89–170 79 648. 1966 May 26 89–430 80 168. Oct. 15 89–670 8(d) 80 943. Nov. 10 84–804 80 1521. 1968 July 26 90–433 82 448. Oct. 17 90–586 1 82 1149. 1970 Oct. 15 91–452 243–245 84 931. Dec. 23 91–569 1–3 84 1499.   23 91–590 84 1587. 1972 July 7 92–338 86 423.   13 92–348 5, 6 86 463. 1973 July 10 93–69 202–202 (title II) 87 993, 1021. Dec. 27 93–201 87 838. 1974 Jan. 2 93–236 205, 601(e) 87 993, 1021. Feb. 8 93–249 88 11. Oct. 28 93–496 14 88 1532. Dec. 21 93–528 6(b) 88 1709. 1975 Jan. 2 93–585 9 88 1918. Feb. 28 94–5 3 89 7. 1976 Feb. 5 94–210 201, 202 (less (f)), 203–212, 301–307, 308(a)(3), 309, 310, 312, 402, 403, 801, 802, 804 “Sec. 3040)”, 809(C). 90 34–38, 39–56, 57–60, 62–66, 125–130, 139, 146. Apr. 21 94–273 11(4) 90 378. Oct. 19 94–555 206, 218, 220(i)–(o). 90 2621, 2628, 2630 1978 Feb. 15 95–231 92 29. Reorganization Plans Year Plan No. Section Statues at Large Volume Page 1969 1 83 859.

16. 1978

    Pub. L. 95–607 title II § 201 · 92 Stat. 3059

    Added · 45 U.S.C. § 744(e)

    Pub. L. 95–607 added subpar. (C) of par. (4) and pars. (7) and (8)

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 95–607 added subpar. (C) of par. (4) and pars. (7) and (8).

    Enacted provision · exact public law section
    Sec. 201. Section 304(e) of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 744(e) ) is amended— (1) by striking out the comma at the end of paragraph (4) (B) and inserting in lieu thereof “; or”; and (2) by adding immediately after paragraph (4) (B) the following new subparagraph: “(C) offers a rail service continuation payment, pursuant to subsection (c) (2) (A) of this section and regulations issued by the Office pursuant to section 205(d) (5) of this Act, 45 USC 715. for the operation of rail passenger service provided under an agreement or lease pursuant to section 303(b) (2) of this title 45 USC 743. or subsection (c) (2) (B) of this section where such offer is made for the continuation of the service beyond the period required by such agreement or lease, except that such services shall not be eligible for assistance under section 17 (a) (2) of the Urban Mass Transportation Act of 1964 (49 U.S.C. 1613(a) (2)),”; and (3) by adding at the end thereof the following new paragraphs: “(7) (A) If a State (or a local or regional transportation authority) in the region offers to provide payment for the provision of additional rail passenger service, the Corporation shall undertake to provide such service pursuant to this subsection (including the discontinuance provisions of paragraph (2) of this subsection). An offer to provide payment for the provision of additional rail passenger service shall be made in accordance with subsection (c)(2)(A) of this section and under regulations issued by the Office pursuant to section 205(d) (5) of this Act, and shall be designed to avoid any additional costs to the Corporation arising from the construction or modification of capital facilities or from any additional operating delays or costs arising from the absence of such construction or modification. The State (or local or regional transportation authority) shall demonstrate that it has acquired, leased, or otherwise obtained access to all rail properties, other than those designated for conveyance to the National Railroad Passenger Corporation pursuant to sections 206(c) (1) (C) and 206(c) (1) (D) of this Act and to the Corporation pursuant to section 303(b) 45 USC 716. 45 USC 743. (1) of this title, necessary to provide the additional rail passenger service and that it has completed, or will complete prior to the inception of the additional rail service, all capital improvements necessary to avoid significant costs which cannot be avoided by improved scheduling or other means on other existing rail services (including rail freight service) and to assure that the additional service will not detract from the level and quality of existing rail passenger and freight service. “(B) As used in this paragraph, the term ‘additional rail passenger “Additional rail passenger service.” service’ means rail passenger service (other than rail passenger service provided pursuant to the provisions of paragraphs (2) and (4) of this subsection), including extended or expanded service and modified routings, which is to be provided over rail properties conveyed to the Corporation pursuant to section 303(b) (1) of this title, or over (i) rail properties contiguous thereto conveyed to the National Railroad Passenger Corporation pursuant to this Act, or (ii) any other rail properties contiguous thereto to which a State (or local or regional transportation authority) has obtained access. “(C) Notwithstanding any other provision of this paragraph, the Corporation shall not be required to operate additional rail passenger service over rail properties leased or acquired from or owned or leased by a profitable railroad in the region. “(8) Study. The Secretary shall, in consultation with the Association, conduct a study to determine the best means of compensating the Corporation fop liabilities which it may incur for damages to persons or property, resulting from the operation of rail passenger service required to be operated pursuant to this subsection or section 303 45 USC 743. (b) (2) of this title, which are not underwritten by private insurance carriers or are not indemnified by a State (or local or regional transportation authority). Such study shall identify the nature of the risks to the Corporation, the probable degree of uninsurability of such risks, and the desirability and feasibility of various indemnification programs, including subsidy offers made pursuant to this section, self-insurance through a passenger tax or other mechanism, or government Report to Congress. indemnification for such liabilities. Within one year after the date of enactment of this paragraph, the Secretary shall prepare a report with appropriate recommendations and shall submit such report to the Congress. Such report shall specify the most appropriate means of indemnifying the Corporation for such liabilities in a manner which shall prevent the cross-subsidization of passenger services with revenues from freight services operated by the Corporation.”.

17. 1983

    Pub. L. 97–449 § 4(b)(2) · 96 Stat. 2413

    Repealed · 45 U.S.C. § 744(j)

    Pub. L. 97–449 repealed section 304(j) of Pub. L. 93–236, effective Oct. 17, 1978, the date Pub. L. 95–473 repealed subsec. (j) by repealing section 804 “Sec. 304(j)” of Pub. L. 94–210. See 1978 Amendment note below

    Source evidence

    Code amendment note
    Subsec. (j). Pub. L. 97–449 repealed section 304(j) of Pub. L. 93–236, effective Oct. 17, 1978, the date Pub. L. 95–473 repealed subsec. (j) by repealing section 804 “Sec. 304(j)” of Pub. L. 94–210. See 1978 Amendment note below.

    Enacted provision · exact public law section
    (2) sections 304(j) and 603 of the Regional Rail Reorganization Act of 1973 (Public Law 93–236, 87 Stat. 985) are repealed; 45 USC 744, 793.

18. 1991

    Federal Transit Act Amendments of 1991

    Pub. L. 102–240 title III § 3003(b) · 105 Stat. 1914

    Substituted · 45 U.S.C. § 744(d)(4)(B)(e)(4)(C)(5)(A)(C)

    Pub. L. 102–240 substituted “Federal Transit Act” for “Urban Mass Transportation Act of 1964”

    Source evidence

    Code amendment note
    Subsecs. (d)(4)(B), (e)(4)(C), (5)(A) to (C). Pub. L. 102–240 substituted “Federal Transit Act” for “Urban Mass Transportation Act of 1964”.

    Enacted provision · exact public law section
    (b) 49 USC app. 1601 note. Other References.— Any reference in a law, map, regulation, document, paper, or other record of the United States to the Urban Mass Transportation Act of 1964 shall be deemed to be a reference to the “Federal Transit Act”.

19. 1995

    ICC Termination Act of 1995

    Pub. L. 104–88 § 327(3)(A) · 109 Stat. 803

    Substituted · 45 U.S.C. § 744(a)(2)(B)

    Pub. L. 104–88, § 327(3)(A), substituted “section 10362(b)(6) of title 49” for “section 205(d)(6) of this Act”

    Source evidence

    Code amendment note
    Subsec. (a)(2)(B). Pub. L. 104–88, § 327(3)(A), substituted “section 10362(b)(6) of title 49” for “section 205(d)(6) of this Act”.

    Enacted provision · exact public law section
    (A) by striking “205(d)(6) of this Act” in subsection (a)(2)(B) and inserting in lieu thereof “10362(b)(6) of title 49, United States Code”;

20. 1995

    ICC Termination Act of 1995

    Pub. L. 104–88 § 327(3)(B) · 109 Stat. 803

    1. Amended · 45 U.S.C. § 744(b)(3)

       Pub. L. 104–88, § 327(3)(B), as amended by Pub. L. 104–287

    2. Substituted · 45 U.S.C. § 744(b)(3)

       Pub. L. 104–88, § 327(3)(B), as substituted “part A of subtitle IV of title 49” for “the Interstate Commerce Act”

    Source evidence

    Code amendment note
    Subsec. (b)(3). Pub. L. 104–88, § 327(3)(B), as amended by Pub. L. 104–287, substituted “part A of subtitle IV of title 49” for “the Interstate Commerce Act”.

    Enacted provision · exact public law section
    (B) by striking “Interstate Commerce Act” and inserting in lieu thereof “part A of subtitle IV of title 49, United States Code”;

21. 1995

    ICC Termination Act of 1995

    Pub. L. 104–88 § 327(3)(C) · 109 Stat. 803

    1. Substituted · 45 U.S.C. § 744(d)(3)

       Pub. L. 104–88, § 327(3)(C), substituted “this title, the Commission” for “this title, the Commission—”

    2. Struck · 45 U.S.C. § 744(d)(3)

       Pub. L. 104–88, § 327(3)(C), struck out “(A)” before “shall take such action”

    3. Substituted · 45 U.S.C. § 744(d)(3)

       Pub. L. 104–88, § 327(3)(C), substituted “under this subsection.” for “under this subsection; and

    Source evidence

    Code amendment note
    Subsec. (d)(3). Pub. L. 104–88, § 327(3)(C), substituted “this title, the Commission” for “this title, the Commission—”, struck out “(A)” before “shall take such action”, and substituted “under this subsection.” for “under this subsection; and

    “(B) shall have authority, in accordance with the provisions of section 1(16)(b) of the Interstate Commerce Act (49 U.S.C. 1(16)(b)), to direct rail service to be provided by any designated railroad or by the trustees of a railroad in reorganization in the region, if a rail service continuation payment has been offered but an applicable operating or lease agreement is not in effect. For purposes of the preceding sentence, any compensation required as a result of such directed service shall be determined in accordance with the standards developed pursuant to section 205(d)(6) of this Act.”

    Enacted provision · exact public law section
    (C) in subsection (d)(3)— (i) by striking “this title,” and all that follows through “(A) shall take” and inserting in lieu thereof “this title, the Commission shall take”; and (ii) by striking “this subsection; and” and all that follows through “205(d)(6) of this Act” and inserting in lieu thereof “this subsection”;

22. 1995

    ICC Termination Act of 1995

    Pub. L. 104–88 § 327(3)(D)(i) · 109 Stat. 803

    Struck · 45 U.S.C. § 744(e)(4)(A)

    Pub. L. 104–88, § 327(3)(D)(i), struck out “and under regulations issued by the Office pursuant to section 205(d)(5) of this Act” before “, for the operation”

    Source evidence

    Code amendment note
    Subsec. (e)(4)(A). Pub. L. 104–88, § 327(3)(D)(i), struck out “and under regulations issued by the Office pursuant to section 205(d)(5) of this Act” before “, for the operation”.

    Enacted provision · exact public law section
    (i) by striking “and under regulations issued by the Office pursuant to section 205(d)(5) of this Act” in subparagraph (A); and

23. 1995

    ICC Termination Act of 1995

    Pub. L. 104–88 § 327(3)(D)(ii) · 109 Stat. 803

    Struck · 45 U.S.C. § 744(e)(4)(C)

    Pub. L. 104–88, § 327(3)(D)(ii), struck out “and regulations issued by the Office pursuant to section 205(d)(5) of this Act” after “subsection (c)(2)(A) of this section”

    Source evidence

    Code amendment note
    Subsec. (e)(4)(C). Pub. L. 104–88, § 327(3)(D)(ii), struck out “and regulations issued by the Office pursuant to section 205(d)(5) of this Act” after “subsection (c)(2)(A) of this section”.

    Enacted provision · exact public law section
    (ii) by striking “and regulations issued by the Office pursuant to section 205(d)(5) of this Act” in subparagraph (C);

24. 1995

    ICC Termination Act of 1995

    Pub. L. 104–88 § 327(3)(E) · 109 Stat. 803

    Struck · 45 U.S.C. § 744(e)(5)(A); 45 U.S.C. § 744(e)(5)(B)

    Pub. L. 104–88, § 327(3)(E), struck out before period at end “and under regulations issued by the Office pursuant to section 205(d)(5) of this Act”

    Source evidence

    Code amendment note
    Subsec. (e)(5)(A), (B). Pub. L. 104–88, § 327(3)(E), struck out before period at end “and under regulations issued by the Office pursuant to section 205(d)(5) of this Act”.

    Enacted provision · exact public law section
    (E) in subsection (e)(5)— (i) by striking “and under regulations issued by the Office pursuant to section 205(d)(5) of this Act” in subparagraph (A); and (ii) by striking “and under regulations issued by the Office pursuant to section 205(d)(5) of this Act” in subparagraph (B);

25. 1995

    ICC Termination Act of 1995

    Pub. L. 104–88 § 327(3)(F) · 109 Stat. 803

    Struck · 45 U.S.C. § 744(e)(7)(A)

    Pub. L. 104–88, § 327(3)(F), struck out “and under regulations issued by the Office pursuant to section 205(d)(5) of this Act” after “subsection (c)(2)(A) of this section”

    Source evidence

    Code amendment note
    Subsec. (e)(7)(A). Pub. L. 104–88, § 327(3)(F), struck out “and under regulations issued by the Office pursuant to section 205(d)(5) of this Act” after “subsection (c)(2)(A) of this section”.

    Enacted provision · exact public law section
    (F) in subsection (e)(7)(A) by striking “and under regulations issued by the Office pursuant to section 205(d)(5) of this Act”; and

26. 1995

    ICC Termination Act of 1995

    Pub. L. 104–88 § 327(3)(G) · 109 Stat. 803

    Substituted · 45 U.S.C. § 744(g)

    Pub. L. 104–88, § 327(3)(G), substituted “part A of subtitle IV of title 49” for “the Interstate Commerce Act”

    Source evidence

    Code amendment note
    Subsec. (g). Pub. L. 104–88, § 327(3)(G), substituted “part A of subtitle IV of title 49” for “the Interstate Commerce Act”.

    Enacted provision · exact public law section
    (G) in subsection (g) by striking “the Interstate Commerce Act” and inserting in lieu thereof “part A of subtitle IV of title 49, United States Code”;

27. 1996

    Pub. L. 104–287 § 6(f)(4)(A) · 110 Stat. 3388

    Changed · 45 U.S.C. § 744(b)(3)

    Pub. L. 104–287 made technical amendment to directory language of Pub. L. 104–88, § 327(3)(B). See 1995 Amendment note below

    Source evidence

    Code amendment note
    Subsec. (b)(3). Pub. L. 104–287 made technical amendment to directory language of Pub. L. 104–88, § 327(3)(B). See 1995 Amendment note below.

    Enacted provision · exact public law section
    (6) In section 702, strike “the effective date of such Act” and substitute “January 1, 1996”.

    Effective date note
    Pub. L. 104–287, § 6(f)(4)(A), Oct. 11, 1996, 110 Stat. 3399, provided that the amendment made by section 6(f)(4)(A) is effective Dec. 29, 1995.

43 of 43 references resolved to an enrolled provision