Public Law 94-211, 90 STAT. 151
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That One Hundred and
First Airborne Division Association is authorized to erect a memorial on
public grounds in the District of Columbia or its environs in honor and
in commemoration of the men of the " Screaming Eagles" of the One
Hundred and First Airborne Division, United States Army, who have served
their country in World War II, Vietnam, and maintaining peace.
Sec. 2. (a) The Secretary of the Interior is authorized and directed
to select, with the approval of the National Commission of Fine Arts and
the National Capital Planning Commission, a suitable site on public
grounds in the District of Columbia, or its environs, upon which may be
erected the memorial authorized in the first section of this Act:
Provided, That the site selected is on public grounds belonging to or
under the jurisdiction of the government of the District of Columbia,
the approval of the Mayor of the District of Columbia shall also be
obtained.
(b) The design and plans for such memorial shall be subject to the
approval of the Secretary of the Interior, the National Commission of
Fine Arts and the National Capital Planning Commission, and the United
States or the District of Columbia shall be put to no expense in the
erection thereof.
Sec. 3. The authority conferred pursuant to this Act shall lapse
unless (1) the erection of such memorial is commenced within five years
from the date of enactment of this Act, and (2) prior to its
commencement funds are certified available in an amount sufficient, in
the judgment of the Secretary of the Interior to insure completion of
the memorial.
Sec. 4. The maintenance and care of the memorial erected under the
provisions of this Act shall be the responsibility of the Secretary of
the Interior, or, if the memorial is erected upon public grounds
belonging to or under the jurisdiction of the District of Columbia, the
government of the District of Columbia.
Approved February 6, 1976.
LEGISLATIVE HISTORY:
HOUSE REPORT No. 94 - 740 accompanying H.R. 3710 (Comm. on House
Administration).
SENATE REPORT No. 94 - 494 (Comm. on Interior and Insular Affairs).
CONGRESSIONAL RECORD:
Vol. 121 (1975): Dec. 1, considered and passed Senate.
Vol. 122 (1976): Jan. 20, considered and passed House, in lieu
of H.R. 3710.
PUBLIC LAW 94-210, 90 STAT. 31, RAILROAD REVITALIZATION AND
REGULATORY REFORM ACT OF 1976.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That this Act, // 45 USC
801 // divided into titles and sections according to the following table
of contents, may be cited as the " Railroad Revitalization and
Regulatory Reform Act of 1976":
Sec. 101. Declaration of policy. Sec. 102. Definitions.
Sec. 201. Expeditious divisions of revenues. Sec. 202. Railroad
ratemaking. Sec. 203. Tariff modifications. Sec. 204. Investigation of
discriminatory freight rates for the
transportation of recyclable or recycled materials Sec. 205.
Adequate revenue levels. Sec. 206. Rate incentives for capital
investment. Sec. 207. Exemptions from Interstate Commerce Act. Sec.
208. Rate bureaus. Sec. 209. Filing procedures. Sec. 210. Intrastate
railroad rate proceedings. Sec. 211. Demurrage charges. Sec. 212. Car
service compensation and practices.
Sec 301. Access to information by congressional committees. Sec. 302..
Effective date of orders of the Commission. Sec. 303. Commission
hearing and appellate procedure. Sec. 304. Office of Rail Public
Counsel. Sec. 305. Reform of rules of practice before the Commission.
Sec. 306. Prohibiting discriminatory tax treatment of transportation
property. Sec. 307. Uniform cost and revenue accounting system.
Sec. 308. Securities. Sec. 309. Rail Services Planning Office. Sec.
310. Equitable distribution of cars for unit train service. Sec. 311.
Appropriations request. Sec. 312. Law revision.
Sec. 401. Responsibilities of the Secretary. Sec. 402. Merger
procedure. Sec. 403. Expedited railroad merger procedure.
Sec. 501. Defini TIONS. Sec. 502. The Rail Fund. Sec. 503.
Classifiction and designation of rail lines. Sec. 504. Capital needs
study. Sec. 505. Rehabilitation and improvement financing.
Sec. 506. Redeemable preference shares. Sec. 507. Fund anticipation
notes. Sec. 508. Fund bonds. Sec. 509. Authorizations. Sec. 510.
Exemption. Sec. 511. Guarantee of obligations. Sec. 512. Issuance of
notes or obligations. Sec. 513. Default on guaranteed obligations.
Sec. 514. Audit of transactions. Sec. 515. Annual report. Sec. 516.
Employee protection. Sec. 517. Intercity rail passenger service.
Sec. 601. General. Sec. 602. Special court. Sec. 603. Finance
Committee. Sec. 604. Obligations of the Association. Sec. 605.
Debentures and series A preferred stock. Sec. 606. Loans. Sec. 607.
Miscellaneous amendments to title II. Sec. 608. Capitalization of the
Corporation. Sec. 609. Protection of Federal funds. Sec. 610.
Continuing reorganization; supplemental transactions. Sec. 611.
Officers and directors of the Corporation. Sec. 612. Miscellaneous
amendments to title III. Sec. 613. Definitions. Sec. 614. Employment
offers. Sec. 615. Collective bargaining agreements. Sec. 616. Employee
protection. Sec. 617. Duties of acquiring and selling railroads. Sec.
618. Exemptions. Sec. 619. Application of the National Environmental
Policy Act.
Sec. 701. National Railroad Passenger Corporation. Sec. 702.
Operations Review Panel. Sec. 703. Required goals. Sec. 704. Funding.
Sec. 705. Conforming amendments. Sec. 706. Facilities with historical
or architectural significance.
Sec. 801. Extension of service. Sec. 802. Discontinuance or
abandonment. Sec. 803. Local rail service assistance. Sec. 804.
Termination and continuation of rail services. Sec. 805. Continuation
assistance. Sec. 806. Repeal. Sec. 807. Rail passenger service. Sec.
808. Emergency operating assistance. Sec. 809. Conversion of abandoned
railroad rights-of-way. Sec. 810. Rail bank.
Sec. 901. Comprehensive study of rail system. Sec. 902. Study of aid
to rail transportation. Sec. 903. Study of conglomerates. Sec. 904.
Rail abandonment report. Sec. 905. Nondiscrimination. Sec. 906.
Minority Resource Center.
Sec. 101. (a) Purpose.--It is the purpose of the Congress in this Act
// 45 USC 801. // to provide the means to rehabilitate and maintain the
physical facilities, improve the operations and structure, and restore
the financial stability of the railway system of the United States, and
to promote the revitalization of such railway system, so that this mode
of transportation will remain viable in the private sector of the
economy and will be able to provide energy-efficient, ecologically
compatible transportation services with greater efficiency,
effectiveness, and economy, through--,
(1) ratemaking and regulatory reform;
(2) the encouragement of efforts to restructure the system on a
more economically justified basis, including planning authority in
the Secretary of Transportation, an expedited procedure for
determining whether merger and consolidation applications are in
the public interest, and continuing reorganization authority;
(3) financing mechanisms that will assure adequate
rehabilitation and improvement of facilities and equipment,
implementation of the final system plan, and implementation of the
Northeast Corridor project;
(4) transitional continuation of service on light-density rail
lines that are necessary to continued employment and community
well-being throughout the United States;
(5) auditing, accounting, reporting, and other requirements to
protect Federal funds and to assure repayment of loans and
financial responsibility; and
(6) necessary studies.
(b) Policy.--It is declared to be the policy of the Congress in this
Act to--,
(1) balance the needs of carriers, shippers, and the public;
(2) foster competition among all carriers by railroad and other
modes of transportation, to promote more adequate and efficient
transportation services, and to increase the attractiveness of
investing in railroads and rail-service-related enterprises;
(3) permit railroads greater freedom to raise or lower rates
for rail services in competitive markets;
(4) promote the establishment of railroad rate structures which
are more sensitive to changes in the level of seasonal, regional.
and shipper demand;
(5) promote seperate pricing of distinct rail and rail-related
services;
(6) formulate standards and guidelines for determining adequate
revenue levels for railroads; and (7) modernize and clarify the
functions of railroad rate bureaus.
Sec. 102. As used in this Act, // 45 USC 802. // unless the context
otherwise indicates, the term--,
(1) " Association" means the United States Railway Association;
(2) " Commission" means the Interstate Commerce Commission;
(3) " Corporation" means the Consolidated Rail Corporation;
(4) "final system plan" means the final system plan and any
additions thereto adopted by the Association pursuant to the
Rgional Rail Reorganization Act of 1973 (45 U.S.C. 701 et seq.);
(5) "includes" and variants thereof should be read as if the
phrase "but is not limited to" were also set forth;
(6) c Office" means the Rail Services Planning Office of the
Commission;
(7) "railroad" means a common carrier by railroad or express,
as defined in section 1(3) of the Interstate Commerce Act (49 U.
S.C. 1(3), and includes the National Railroad Passenger
Corporation and the Alaska Railroad; and
(8) " Secretary" means the Secretary of Transportation or his
designated representative.
Sec. 201. Section 15(6) of the Interstate Commerce Act (49 U.S.C.
15(6) is amended by (1) inserting "(a)" immediately after "(6)", and (2)
adding at the end thereof the following three new subdivisions:
"(b) Notwithstanding any other provision of law, the Commission
shall, within 180 days after the date of enactment of this subdivision,
establish, by rule, standards and procedures for the conduct of
proceedings for the adjustment of divisions of joint rates or fares
(whether prescribed by the Commission or otherwise) in accordance with
the provisions of this paragraph. The Commission shall issue a final
order in all such proceedings within 270 days after the submission to
the Commission of a case. If the Commission is unable to issue such a
final order within such time, it shall issue a report to the Congress
setting forth the reasons for such inability.
"(c) All evidentiary proceedings conducted pursuant to this paragraph
shall be completed, in a case brought upon a complaint, within 1 year
following the filing of the complaint, or, in a case brought upon the
Commission's initiative, within 2 years following the commencement of
such proceeding, unless the Commission finds that such a proceeding must
be extended to permit a fair and expeditious completion of the
proceeding. If the Commission is unable to meet any such time
requirement, it shall issue a report to the Congress setting forth the
reasons for such inability.
"(d) Whenever a proceeding for the adjustment of divisions of joint
rates or fares (whether prescribed by the Commission or otherwise
established) is commenced by the filing of a complaint with the
Commission, the complaining carrier or carriers shall (i) attach thereto
all of the evidence in support of their position, and (ii) during the
course of such proceeding, file only rebuttal or reply evidence unless
otherwise directed by order of the Commission. Upon receipt of a notice
of intent to file a complaint pursuant to this paragraph, the Commission
shall accord, to the party filing such notice, the same right to
discovery that would be accorded to a party filing a complaint pursuant
to this paragraph.".
Sec. 202. (a) Section 1(5) of the Interstate Commerce Act (49 U.S.
C. 1(5) is amended by inserting "(a)" immediately after "(5)" and by
adding at the end therof the following new sentence: " The provisions
of this subdivision shall not apply to common carriers by railroad
subject to this part.".
(b) Section 1(5) of the Interstate Commerce Act (49 U.S.C. 1(5)), as
amended by subsection (a) of this section, is further amended by adding
at the end therof the following new subdivisions:
"(b) Each rate for any service rendered or to be rendered in the
transportation of persons or property by any common carrier by railroad
subject to this part shall be just and reasonable. A rate that is
unjust or unreasonable is prohibited and unlawful. No rate which
contributes or which would contribute to the going concern value of such
a carrier shall be found to be unjust or unreasonable, or not shown to
be just and reasonable, on the ground that such rate is below a just or
reasonable minimum for the service rendered or to be rendered. A rate
which equals or exceeds the variable costs (as determined through
formulas prescribed by the Commission) of providing a service shall be
presumed, unless such presumption is rebutted by clear and convincing
evidence, to contribute to the going concern value of the carrier or
carriers proposing such rate (hereafter in this paragraph referred to as
the 'proponent carrier'). In determining variable costs, the Commission
shall, at the request of the carrier proposing the rate, determine only
those costs of the carrier proposing the rate and only those costs of
the specific service in question, except where such specific data and
cost information is not available. The Commission shall not include in
variable cost any expenses which do not vary directly with the level of
service provided under the rate in question. Notwithstanding any other
provision of this part, no rate shall be found to be unjust or
unreasonable, or not shown to be just and reasonable, on the ground that
such rate exceeds a just or reasonable maximum for the service rendered
or to be rendered, unless the Commission has first found that the
proponent carrier has market dominance over such service. A finding
that a carrier has market dominance over a service shall not create a
presumption that the rate or rates for such service exceed a just and
reasonable maximum. Nothing in this paragraph shall prohibit a rate
increase from a level which reduces the going concern value of the
proponent carrier to a level which contributes to such going concern
value and is otherwise just and reasonable. For the purposes of the
preceding sentence, a rate increase which does not raise a rate above
the incremental costs (as determined through formulas prescribed by the
Commission) of rendering the service to which such rate applies shall be
presumed to be just and reasonable.
"(c) As used in this part, the terms--,
"(i) 'market dominance' refers to an absence of effective
competition from other carriers or modes of transportation, for
the traffic or movement to which a rate applies; and
"(ii) 'rate means any rate or charge for the transportation of
persons or property.
"(d) Within 240 days after the date of enactment of this suvdivision,
the Commission shall establish, by rule, standards and procedures for
determining, in accordance with section 15(9) // 49 USC 15. // of this
part, whether and when a carrier possesses market dominance over a
service rendered or to be rendered at a particular rate or rates. Such
rules shall be designed to provide for a practical determination without
administrative delay. The Commission shall solicit and consider the
recommendations of the Attorney General and of the Federal Trade
Commission in the course of establishing such rules.".
(c) Section 15 of the Interstate Commerce Act (49 U.S.C 15) is
amended by redesignating paragraphs (8) through (14) thereof as
paragraphs (10) through (16) thereof, respectively, and by inserting
therein a new paragraph (9) as follows:
"(9) Following promulgation of standards under section 1(5)(d) of
this part, whenever a rate of a common carrier by railroad subject to
this part is challenged as being unreasonably high, the Commission
shall, upon complaint or upon its own initiative and within 90 days
after the commencement of a proceeding to investigate the lawfulness of
such rate, determine whether the carrier proposing such rate has market
dominance, within the meaning of section 1(5)(c)(i) of this part, over
the service to which such rate applies. If the Commission finds that
such a carrier does not have such market dominance, such finding shall
be determinative in all additional or other proceedings under this Act
concerning such rate or service, unless (a) such finding is modified or
set aside by the Commission, or (b) such finding is set aside by a court
of competent jurisdiction. Nothing in this paragraph shall limit the
Commission's power to suspend a rate pursuant to this section, except
that if the Commission has found that a carrier does not have such
market dominance over the service to which a rate applies, the
Commission may not suspend any increase in such rate on the ground that
such rate as increased exceeds a just or reasonable maximum for such
service, unless the Commission specifically modifies or sets aside its
prior determination concerning market dominace over the service to which
such rate applies.".
(d) Section 15 of the Interstate Commerce Act (49 U.S.C. 15) is
amended by adding at the end thereof the following two new paragraphs:
"(17) Within 1 year after the date of enactment of this paragraph,
the Commission shall establish, by rule, standards and expeditious
procedures for the establishment of railroad rates based on seasonal,
regional, or peak-period demand for rail services. Such standards and
procedures shall be designed to (a) provide sufficient incentive to
shippers to reduce peak-period shipments, through rescheduling and
advance planning; (b) generate additional revenues for the railroads;
and (c) improve (i) the utilization of the national supply of freight
cars, (ii) the movement of goods by rail, (iii) levels of employment by
railroads, and (iv) the financial stability of markets served by
railroads. Following the establishment of such standards and procedures,
the Commission shall prepare and submit to the Congress annual reports
on the implementation of such rates, including recommendations with
respect to the need, if any, for additional legislation to facilitate
the establishment of such demand-sensitive rates.
"(18) In order to encourage competition, to promote increased
reinvestment by railroads, and to encourage and facilitate increased
non-railroad investment in the production of rail services, a carrier by
railroad subject to this part may, upon its own initiative or upon the
request of any shipper or receiver of freight, file separate rates for
distinct rail services. Within 1 year after the date of enactment of
this paragraph, the Commission shall establish, by rule, expeditious
procedures for permitting publication of separate rates for distinct
rail services in order to (a) encourage the pricing of such services in
adcordance with the carrier's cash-outlays for such services and the
demand therefor, and (b) enable shippers and receivers to evaluate all
transportation and related charges and alternatives.".
(e) Section 15 of the Interstate Commerce Act (49 U.S.C. 15), as
amended by this Act, is further amended--,
(1) by adding at the end of paragrapn (7) thereof the following
new sentence: " This paragraph shall not apply to common carriers
by railroad subject to this part."; and
(2) by inserting a new paragrapn (8) as follows:
"(8) (a) Whenever a schedule is filed with the Commission by a common
carrier by railroad stating a new individual or joint rate, fare, or
charge, or a new individual or joint classification, regulation, or
practice affecting a rate, fare, or charge, the Commission may, upon the
complaint of an interested party or upon its own initiative, order a
hearing concerning the lawfulness of such rate, fare, charge,
classification, regulation, or practice. The hearing may be conducted
without answer or other formal pleading, but reasonable notice shall be
provided to interested parties. Such hearing shall be completed and a
final decision rendered by the Commission not later than 7 months after
such rate, fare, charge, classification, regulation, or practice was
scheduled to become effective, unless, prior to the expiration of such
7-month period, the Commission reports in writing to the Congress that
it is unable to render a decision within such period, together with a
full explanation of the reason for the delay. If such a report is made
to the Congress, the final decision shall be made not later than 10
months after the date of the filing of such schedule. If the final
decision of the Commission is not made within the applicable time
period, the rate, fare, charge, classification, regulation, or practice
shall go into effect immediately at the expiration of such time period,
or shall remain in effect if it has already become effective. Such
rate, fare, charge, classification, regulation, or practice may be set
aside thereafter by the Commission if, upon complaint of an interested
party, the Commission finds it to be unlawful.
"(b) Pending a hearing pursuant to subdivision (a), the schedule may
be suspended, pursuant to subdivision (d), for 7 months beyond the time
when it would otherwise go into effect, or for 10 months if the
Commission makes a report to the Congress pursuant to subdivision (a),
except under the following conditions:
"(i) in the case of a rate increase, a rate may not be
suspended on the ground that it exceeds a just and reasonable
level if the rate is within a limit specified in subdivision (c),
except that such a rate change may be suspended under any
provision of section 2, 3, or 4 of this part or, following
promulgation of standards and procedures under section 1 (5) (d)
of this part, if the carrier is found to have market dominance,
within the meaning of section 1 (5) (c) (i) of this part, over the
service to which such rate increase applies; or
"(ii) in the case of a rate decrease, a rate may not be
suspended on the ground that it is below a just and reasonable
level if the rate is within a limit specified in subdivision (c),
except that such a rate change may be suspended under any
provision of section 2, 3, or 4 of this part, or for the purposes
of investigating such rate change upon a complaint that such rate
change constitutes a competitive practice which is unfair,
destructive, predatory or otherwise undermines competition which
is necessary in the public interest.
"(c) The limitations upon the Commission's power to suspend rate
changes set forth in subdivisions (b) (i) and (ii) apply only to rate
changes which are not of general applicability to all or substantially
all classes of traffic and only if--,
"(i) the rate increase or decrease is filed within 2 years
after the date of the enactment of this subdivision;
"(ii) the common carrier by railroad notifies the Commission
that it wishes to have the rate considered pursuant to this
subdivision;
"(iii) the aggregate of increases or decreases in any rate
filed pursuant to clauses (i) and (ii) of this subdivision within
the first 365 days following such date of enactment is not more
than 7 per centum of the rate in effect on January 1, 1976; and
"(iv) the aggragate of the increases or decreases for any rate
filed pursuant to clauses (i) and (ii) of this subdivision within
the second 365 day-period following such date of enactment is not
more than 7 per centum of the rate in effect on January 1, 1977.
"(d) The Commission may not suspend a rate under this paragraph
unless it appears from specific facts shown by the verified complaint of
any person that--,
"(i) without suspension the proposed rate change will cause
substantial injury to the complainant or the party represented by
such cpmplainant; and
"(ii) it is likely that such complainant will prevail on the
merits.
The burden of proof shall be upon the complainant to establish the
matters set forth in clauses (i) and (ii) of this subdivision. Nothing
in this paragraph shall be construed as establishing a presumption that
any rate increase or decrease in excess of the limits set forth in
clauses (iii) or (iv) of subdivision (c) is unlawful of should be
suspended.
"(e) If a hearing is initiated under this paragraph with respect to a
proposed increased rate, fare, or charge, and if the schedule is not
suspended pending such hearing and the decision theron, the Commission
shall require the railroads involved to keep an account of all amounts
received because of such increase from the date such rate, fare, or
charge became effective until the Commission issues an order or until 7
months after such date, whichever first occurs, or, if the hearings are
extended pursuant to subdivision (a), until an order issues or until 10
months elapse, whichever first occurs. The account shall specify by
whom and on whose behalf the amounts are paid. In its final order, the
Commission shall require the common carrier by railroad to refund to the
person on whose behalf the amounts were paid that portion of such
increased rate, fare, or charge found to be not justified, plus interest
at a rate which is equal to the average yield (on the date such schedule
is filed) of marketable securities of the United States which have a
duration of 90 days. With respect to any proposed decreased rate, fare,
or charge which is suspended, if the decrease or any part thereof is
ultimately found to be lawful, the common carrier by railroad may refund
any part of the portion of such decreased rate, fare, or charge found
justified if such carrier makes such a refund available on an equal
basis to all shippers who participated in such rate, fare, or charge
according to the relative amounts of traffic shipped at such rate, fare,
or charge.
"(f) In any hearing under this section, the burden of proof is on the
common carrier by railroad to show that the proposed changed rate, fare,
charge, classification, rule, regulation, or practice is just and
reasonable. The Commission shall specifically consider in any such
hearing, proof that such proposed changed rate, fare, charge,
classification, rule, regulation, or practice will have a significantly
adverse effect (in violation of section 2 or 3 of this part) on the
competitive posture of shippers or consignees affected thereby. The
Commission shall give such hearing and decision preference over all
other matters relating to railroads pending before the Commission and
shall make its decision at the earliest practicable time.".
(f) Nothing in the amendments made by this section // 49 USC 1 //
shall be construed--,
(1) to modify the application of section 2, 3, or 4 of the
Interstate Commerce Act (49 U.S.C. 2, 3, or 4) in determining the
lawfulness of any rate or practice;
(2) to make lawful any competitive practice which is unfair,
destructive, predatory, or otherwise undermines competition which
is necessary in the public interest;
(3) to affect the existing law or the authority of the
Commission with respect to rate relationships between ports; or
(4) to affect the authority and responsibility of the
Commission to guarantee the equalization of rates within the same
port.
(g) The Secretary and the Commission shall separately study the
effect of the amendments made by this section // 49 USC 1 // on the
development of an efficient and financially stable railway system in the
United States. Such studies shall include (1) an analysis of the effect
of such provisions upon shippers and upon carriers in all modes of
transportation, and (2) proposals for further regulatory and legislative
changes, if necessary. The Commission shall gather all data relating to
such studies as requested by the Secretary, and shall make such data
available to the Secretary. The Secretary and the Commission shall
transmit the results of their respective studies to each House of
Congress within 20 months after the date of the Enactment of this Act.
Sec. 203. (a) Section 15 (3) of the Interstate Commerce Act (49 U.S.
C. 15 (3)) is amended by adding at the end thereof the following new
sentence: " With respect to carriers by railroad, in determining
whether any such cancellation or proposed cancellation involving any
common carrier by railroad is consistent with the public interest, the
Commission shall, to the extent applicable, (a) compare the distance
traversed and the average transportation time and expense required using
the through route, and the distance traversed and the average
transportation time and expense required using alternative routes,
between the points served by such through route, (b) consider any
reduction in energy consumption which may result from such cancellation,
and (c) take into account the overall impact of such cancellation on the
shippers and carriers who are affected thereby.".
(b) Section 15a of the Interstate Commerce Act (49 U.S.C. 15a) is
amended by adding at the end thereof the following new paragraph:
"(5) The Commission shall, in any proceeding which involves a
proposed increase or decrease in railroad rates, specifically consider
allegations that such increase or decrease would change the rate
relationships between commodities, ports, points, regions, territories,
or other particular descriptions of traffic (whether or not such
relationships were previously considered or approved by the Commission)
and allegations that such increase or decrease would have a
significantly adverse effect on the competitive position of shippers or
consignees served by the railroad proposing such increase or decrease.
If the Commission finds that such allegations as to change or effect are
substantially supported on the record, it shall take such steps as are
necessary, either before or after such proposed increase or decrease
becomes effective and either within or outside such proceeding, to
investigate the lawfulness of such change or effect.".
Sec. 204. // 45 USC 793 // (a) INVESTIGATION.-- The Commission,
within 12 months after the date of enactment of this Act, and thereafter
as appropriate, shall--,
(1) conduct an investigation of (A) the rate structure for the
transportation, by common carriers by railroad subject to part I
of the Interstate Commerce Act.
// 49 USC 1 //
of recyclable or recycled materials and competing virgin natural
resource materials, and (B) the manner in which such rate
structure has been affected by sucessive general rate increases
approved by the Commission for such common carriers by railroad;
(2) determine, after a public hearing during which the burden
of proof shall be upon such common carriers by railroad to show
that such rate structure, as affected by rate increases applicable
to the transportation of such competing materials, is just,
reasonable, and nondiscriminatory, whether such rate structure is,
in whole or in part, unjustly discriminatory or unreasonable;
(3) issue, in all cases in which such transportation rate
structure is determined to be, in whole or in part, unjustly
discriminatory or unreasonable, orders requiring the removal from
such rate structure of such unreasonableness or unjust
discrimination; and
(4) report to the President and the Congress, in the annual
report of the Commission for each of the 3 years following the
date of enactment of this Act, and in such other reports as may be
appropriate, all actions commenced or completed under this section
to eliminate unreasonable and unjustly discriminatory rates for
the transportation of recyclable or recycled materials.
(b) PARTICIPATION.-- Th Adminstrator of the Environmental Protection
Agency shall take such steps as are necessary to assure that the
Commission carries out the requirements set forth in subsection (a) of
this section as expeditiously as possible. Such Administrator is
authorized to participate as a party in the investigation to be
commenced by the Commission under such subsection(a).
(c) REASEARCH, DEVELOPMENT, AND DEMONSTRATION.-- The Secretary, in
cooperation with the Commission, shall establish a research,
development, and demonstration program to develop and improve transport
terminal operations, transport service characteristics, transport
equipment, and collection and processing methods for the purpose of
facilitating the competitive and efficient transportation of recyclable
or recycled materials by common carriers by railroad subject to part I
of the Interstate Commerce Act.
(d) REVIEW.-- Orders issued by the Commission pursuant to this
section shall be subject to judicial review or enforcement in the same
manner as other orders issued by the Commission under the Interstate
Commerce Act. In all proceedings under this section, the Commission
shall comply fully with the requirements of the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.).
(e) DEFINITIONS.-- As used in this section, the term--,
(1) "recyclable material" means any material which has been
collected or recovered from waste for a commercial or industrial
use, whether or not such collection or recovery follows end usage
as a product; and
(2) "virgin natural resource material" and "virgin material"
mean any raw material, including previously unused metal or metal
ore, woodpulp or pulpwood, textile fiber or material, or other
resource which is, or which will become (through the application
of technology), a source of raw material for commercial or
industrial use.
Sec. 205. Section 15a of the Interstate Commerce Act (49 U.S.C.
15a) is amended--,
(1) by adding at the end of paragraph (2) and at the end of
paragraph (3) the following new sentence: " This paragraph shall
no apply to common carriers by railroad subject to this part.";
and
(2) by redesignating paragraph (4) as paragraph (6), and by
inserting immediately after paragraph (3) the following new
paragraph:
"(4) With respect to common carriers by railroad, the Commission
shall, within 24 months after the date of enactment of this paragraph,
after notice and an opportunity for a hearing, develop and promulgate
(and thereafter revise and maintain) reasonable standards and procedures
for the establishment of revenue levels adequate under honest,
economical, and efficient management to cover total operating expenses,
including depreciation and obsolescence, plus a fair, reasonable, and
economic profit or return (or both) on capital employed in the business.
Such revenue levels should (a) provide a flow of net income plus
depreciation adequate to support prudent capital outlays, assure the
repayment of a reasonable level of debt, permit the raising of needed
equity capital, and cover the effects of inflation and (b) insure
retention and attraction of capital in amounts adequate to provide a
sound transportation system in the United States. The Commission shall
make an adequate and continuing effort to assist such carriers in
attaining such revenue levels. No rate of a common carrier by railroad
shall be held up to a particular level to protect the traffic of any
other carrier or mode of transportation, unless the Commission finds
that such rate reduces or would reduce the going concern value of the
carrier charging the rate.".
Sec. 206. Section 15 of the Interstate Commerce Act (49 U.S.C. 15),
as amended by section 202 of this Act, is amended by adding at the end
thereof the following new paragraph:
"(19) Notwithstanding any other provision of law, a common carrier by
railroad subject to this part may file with the Commission a notice of
intention to file a schedule stating a new rate, fare, charge,
classification, regulation, or practice whenever the implementation of
the proposed schefule would require a total capital investment of
$1,000,000 or more, individually or collectively, by such carrier, or by
a shipper, receiver, or agent thereof, or an interested third party.
The filing shall be accompanied by a sworn affidavit setting forth in
detail the anticipated capital investment upon which such filing is
based. Any interested person may request the Commission to investigate
the schedule proposed to be filed, and upon such request the Commission
shall hold a hearing with respect to such schedule. Such hearing may be
conducted without answer or other formal pleading, but reasonable notice
shall be provided to interested parties. Unless, prior to the 180-day
period following the filing of such notice of intention, the Commission
determines, after a hearing, that the proposed schedule, or any part
thereof, would be unlawful, such carrier may file the schedule at any
time within 180 days thereafter to become effective after 30 days'
notice. Such a schedule may not, for a period of 5 years after its
effective date, be suspended or set aside as unlawful under section 2,
3, or 4 of this part, except that the Commission may at any time order
such schefule to be revised to a level equaling the variable costs of
providing the service, if the rate stated therein is found to reduce the
going concern value of the carrier.".
Sec. 207. Paragraph (1) of section 12 of the Interstate Commerce Act
(49 U.S.C. 12(1)) is amended by inserting "(a)" immediately before " The
Commission" and by adding at the end thereof the following new
subdivision:
"(b) Whenever the Commission determines, upon petition by the
Secretary or an interested party or upon its own initiative, in matters
relating to a common carrier by railroad subject to this part, after
notice and reasonable opportunity for a hearing, that the application of
the provisions of this part (i) to any person or class of persons, or
(ii) to any services or transactions by reason of the limited scope of
such services or transactions, is not necessary to effectuate the
national transportation policy declared in this Act, would be an undue
burden on such person or class of persons or on interstate and foreign
commerce, and would serve little or no useful public purpose, it shall,
by order, exempt such persons, class of persons, services, or
transactions from such provisions to the extent and for such period of
time as may be specified in such order. The Commission may, by order,
revoke any such exemption whenever it finds, after notice and reasonable
opportunity for a hearing, that the application of the provisions of
this part to the exempted person, class of persons, services, or
transactions, to the extent specified in such order, is necessary to
effectuate the national transportation policy declared in this Act and
to achieve effective regulation by the Commission, and would serve a
useful public purpose.".
Sec. 208. // 49 USC 1, 301, 901. // (a) Effective 270 days after the
date of enactment of this Act, section 5a of the Interstate Commerce Act
(49 U.S.C. 5b) is amended in paragraph (1) (A) thereof by striking out
"part I, II, or III" and inserting in lieu thereof "part I (other than a
common carrier by railroad), part II, or part III".
(b) Part I of the Interstate Commerce Act is amended by inserting
after section 5a thereof a new section 5b as follows:
" Sec. 5b. // 49 USC 5c. // (1) As used in this section, the term--,
"(a) 'affiliate' means any person directly or indirectly
controlling, controlled by, or under common control or ownership
with, any other person, and as used in this subdivision, the term
(i) 'control' has the same meaning as in section 1 (3) (b) of this
part; and (ii) 'ownership' refers to equity holdings of 5 per
centum or more in any business entity;
"(b) 'antitrust laws' means the Act of July 2, 1890, as amended
(15 U.S.C. 1, et seq.), the Act of October 15, 1914, as amended
(15 U.S.C. 12, et seq.), the Federal Trade Commission Act (15
U.S.C. 41, et seq.), sections 73 and 74 of the Act of August 27,
1894, as amended (15 U.S.C. 8 and 9), and chapter 592 of the Act
of June 19, 1936, as amended (15 U.S.C. 13, 13a, 13b, 21a); and
"(c) 'carrier' means any common carrier by railroad subject to
part I of this Act.
"(2) Any carrier which is a party to an agreement, between or among
two or more carriers, relating to rates, fares, classification,
divisions, allowances, or charges (including charges between carriers
and compensation paid or received for the use of facilities and
equipment), or rules and regulations pertaining thereto, or procedures
for the joint consideration, initiation, or establishment thereof,
shall, under such rules and regulations as the Commission shall
prescribe, apply to the Commission for approval of such agreement. The
Commission shall, by order, approve any such agreement if approval
thereof is not prohibited by paragraph (4) of (5) and if it finds that,
by reason of furtherance of the national transportation policy declared
in this Act, the relief provided in paragraph (8) should apply with
respect to the making and carrying out of such agreement; otherwise the
application shall be denied. No such approval shall be granted or
continued (a) if any of the terms and conditions which are prescribed
under the last sentence of this paragraph are violated or not complied
with, or (b) unless the Commission receives a verified written statement
(and any written supplement or addendum thereto requested by the
Commission) setting forth, with respect to each carrier which is a party
to such agreement (i) its name, (ii) the mailing address and telephone
number of its headquarter's office, (iii) the names of each of its
affiliates, (iv) the names, addresses, and affiliations of each of its
officers and directors and of each person who, together with any
affiliate, owns or controls any debt, equity, or security interest in it
having a value of $1,000,000 or more, and (v) such other information as
the Commission directs to be indluded. The aproval of the Commission
shall be granted only upon such terms and conditions as the Commission
determines are necessary to enable its approval to be granted in
accordance with the standard set forth in this paragraph.
"(3) Each conference, bureau, committee, or other organization
established or continued pursuant to any agreement approved by the
Commission under the provisions of this section shall maintain such
accounts, records, files, and memoranda and shall submit to the
Commission such reports, as may be prescribed by the Commission. All
such accounts, records, files, and memoranda shall be subject to
inspection by the Commission or its duly authorized representatives.
The Commission may conduct investigations, make reports, issue
subpoenas, conduct hearings, require the production of relevant
documents, records, and property, copy and verify the correctness of
information subject to inspection, and take depositions (a) to determine
whether any such conference, bureau, committee, or other organization,
or any carrier which is a party to any such agreement, has acted or is
acting in compliance with the provisions of this section, regulations
issued under this section, and the public interest, (b) to determine
whether any such organization or carrier is inhibiting an efficient
utilization of transportation resources or has established practices
which are inconsistent with efficient, flexible, and economic operation,
and (c) for such other purposes as the Commission considers appropriate.
"(4) The Commission shall not approve under this section any
agreement which it finds is an agreement with respect to a pooling,
division, or other matter or transaction to which section 5 // 49 USC 5.
// of this part is applicable.
"(5) (a) The Commission shall not approve under this section any
agreement which establishes a procedure for the determination of any
matter through joint consideration, unless it finds that under the
agreement there is accorded to each party the free and unrestrained
right to take independent action, without fear of any sanction or
retaliatory action, at any time before or after any determination
arrived at through such procedure. In no event shall any conference,
bureau, committee, or other organization established or continued
pursuant to any agreement approved by the Commission under the
provisions of this section--,
"(i) permit participation in agreements with respect to, or any
voting on, single-line rates, allowances, or charges established
by any carrier;
"(ii) permit any carrier to participate in agreements with
respect to, or to vote on, rates, allowances, or charges relating
to any particular interline momement, unless such carrier can
practicably participate in such movement; or
"(iii) permit, provide for, or establish any procefure for
joint consideration or any joint action to protest or otherwise
seek the suspension of any rate of classification filed by a
carrier of the same mode pursuant to section 15(7)
// 49 USC 15. //
of this part where such rate or classification is established by
independent action.
As used in clause (i) of this subdivision, a single-line rate,
allowance, or charge is one that is proposed by a single carrier
applicable only over its own line and as to which the service (exclusive
of terminal services provided by switching, drayage, or other terminal
carriers or agencies) can be performed by such carrier.
"(b) The limitations set forth in subdivision (a) shall not be
applicable to--,
"(i) general rate increases or decreases, if the agreements
accord the shipping public, under specified procedures, adequate
notice of at least 15 days of such proposals and an opportunity to
present comments thereon, in writing or otherwise, prior to the
filing with the Commission of the tariffs containing such
increases or decreases, or
"(ii) broad tariff changes if such changes are of general
application or substantially general application throughout a
territory or territories within which such changes are to be
applicable.
In any proceeding in which it is alleged that a carrier voted or agreed
upon a rate, allowance, or charge, in violation of the provisions of
this section, the party alleging such violation shall have the burden of
showing that such vote or agreement occurred. A showing of parallel
behavior is not, by itself, sufficient to satisfy such burden.
"(6) (a) The Commission is authorized, upon complaint or upon its own
initiative without complaint, to investigate and determine whether any
agreement previously approved by it under this section, or terms and
conditions upon which such approval was granted, is not or are not in
conformity with the standards set forth in paragraph (2) and with the
public interest, and whether any such terms and conditions are not
necessary or whether any additional or modified terms and conditions are
necessary for purposes of conformity with such standard. After any such
investigation the Commission shall, by order, terminate or modify its
approval of such an agreement if it finds such action necessary to
insure conformity with such standard, and shall modify the terms and
conditions upon which such approval was granted to the extent it finds
necessary to insure conformity with such standard or to the extent to
which it finds such terms and conditions not necessary to insure such
conformity. The effective date of any order terminating or modifying
approval, or modifying terms and conditions, shall be postponed for such
period as the Commission determines to be reasonably necessary to avoid
undue hardship.
"(b) The Commission shall periodically, but not less than once every
3 years, review each agreement which the Commission has by order
approved under this section to determine whether such agreement, or any
conference, bureau, committee, or other organization established or
continued pursuant to such agreement, still conforms with the standard
set forth in paragraph (2) and the public interest, and to evaluate the
success and effect upon the consuming public and the national rail
freight transportation system of such agreement and organization. The
Commission shall report to the President and to the Congress on the
results of such reviews, as part of its annual report pursuant to
section 21. // 49 USC 21. // If the Commission makes a determination
that any such agreement or organization is no longer in conformity with
such standard, the Commission shall by order terminate or suspend its
approval thereof.
"(7) No order shall be entered under this section except after
interested parties have been afforded a reasonable opportunity for a
hearing.
"(8) Parties to any agreement approved by the Commission under this
section and other persons are, if the approval of such agreement is no
prohibited by paragraph (4) or (5), hereby relieved from the operation
of the antitrust laws with respect to the making of such agreement, and
with respect to the carrying out of such agreement in conformity with
its provisions and in conformity with the terms and conditions
prescribed by the Commission.
"(9) Any action of the Commission under this section (a) in approving
an agreement, (b) in denying an application for such approval, (c) in
terminating or modifying such approval, (d) in prescribing the terms and
conditions upon which such approval is to be granted, or (e) in
modifying such terms and conditions, shall be construed as having effect
solely with reference to the applicability of the relief provisions of
paragraph (8).
"(10) The Federal Trade Commission, in consultation with the
Antitrust Division of the Department of Justice, shall periodically
prepare an assessment of, and shall report to the Commission on (a) any
possible anticompetitive features of (i) any agreements approved or
submitted for approval under this section, and (ii) any conferences,
bureaus, committees, or other organizations operating under such
agreements, and (b) possible ways to eliminate or alleviate any such
anticompetitive features, effects, or aspects in a manner that will
further the goals of the national transportation policy and this Act.
The Commission shall make such reports available to the public.
"(11) Any conference, bureau, committee, or other organization
established or continued pursuant to any agreement approved by the
Commission under this section shall make a final disposition with
respect to any rule, rate, or charge docketed with such organization
within 120 days after such proposal is docketed.".
Sec. 209. Section 6(6) of the Interstate Commerce Act (49 U.S.C. 6(
6)) is amended by striking out "shall prescribe; and the" and inserting
in lieu thereof the following: "shall prescribe. The Commission shall,
beginning 2 years after the date of enactment of this sentence, require
(a) that all rates shall be incorporated into the individual tariffs of
each common carrier by railroad subject to this part or rail ratemaking
association within 2 years after the initial publication of the rate, or
within 2 years after a change in any rate is approved by the Commission,
whichever is later, and (b) that any rate shall be null and void with
respect to any such carrier or association which does not so incorporate
such rate into its individual tariff. The Commission may, upon good
cause shown, extend such period of time. Notice of any such extension
and a statement of the reasons therefor shall be promptly transmitted to
the Congress. The".
Sec. 210. Section 13 of the Interstate Commerce Act (49 U.S.C 13) is
amended by striking out ": Provided, That" and all that follows through
"hearing and decision therein" in paragraph (4) thereof, and by adding
at the end thereof the following new paragraph:
"(5) The Commission shall have exclusive authority, upon application
to it, to determine and prescribe intrastate rates if--,
"(a) a carrier by railroad has filed with an appropriate
administrative or regulatory body of a State, a change in an
intrastate rate, fare, or charge, or a change in a classification,
regulation, or practice that has the effect of changing such a
rate, fare, or charge, for the purpose of adjusting such rate,
fare, or charge to the rate charged on similar traffic moving in
interstate or foreign commerce; and
"(b) the State administrative or regulatory body has not,
within 120 days after the date of such filing, acted finally on
such change.
Notice of the application to the Commission shall be served on the
appropriate State administrative or regulatory body. Upon the filing of
such an application, the Commission shall determine and prescribe,
according to the standards set forth in paragraph (4) of this section,
the rate thereafter to be charged. The provisions of this paragraph
shall apply notwithstanding the laws or constitution of any State, or
the pendency of any proceeding before any State court or other State
authority.".
Sec. 211. Section 1(6) of the Interstate Commerce Act (49 U.S.C. 1(
6)) is amended by inserting at the end thereof the following new
sentence: " Demurrage charges shall be computed, and rules and
regulations relating to such charges shall be established, in such a
manner as to fulfill the national needs with respect to (a) freight car
utilization and distribution, and (b) maintenance of an adequate freight
car supply available for transportation of property.".
Sec. 212. (a) Section 1(14)(a) of the Interstate Commerce Act (49
U.S.C. 1(14)(a)) is amended to read as follows:
"(14)(a) It is the intent of the Congress to encourage the purchase,
acquisition, and efficient utilization of freight cars. In order to
carry out such intent, the Commission may, upon complaint of an
interested party or upon its own initiative without complaint, and after
notice and an opportunity for a hearing, establish reasonable rules,
regulations, and practices with respect to car service by common
carriers by railroad subject to this part, including (i) the
compensation to be paid for the use of any locomotive, freight car, or
other vehicle, (ii) the other terms of any contract, agreement, or
arrangement for the use of any locomotive or other vehicle not owned by
the carrier by which it is used (and whether or not owned by another
carrier, shipper, or third party), and (iii) the penalties or other
sanctions for nonobservance of such rules, regulations, or practices.
In determining the rates of compensation to be paid for each type of
freight car, the Commission shall give consideration to the
transportation use of each type of freight car, to the national level of
ownership of each such type of freight car, and to other factors
affecting the adequacy of the national freight car supply. Such
compensation shall be fixed on the basis of the elements of ownership
expense involved in owning and maintaining each such type of freight
car, including a fair return on the cost of such type of freight car
(giving due consideration to current costs of capital, repairs,
materials, parts, and labor). Such compensation may be increased by any
incentitive element which will, in the judgement of the Commission,
provide just and reasonable compensation to freight car owners,
contribute to sound car service practices (including efficient
utilization and distribution of cars), and encourage the acquisition and
maintenance of a car supply adequate to meet the needs of commerce and
the national defense. The Commission shall not make any incentive
element applicable to any type of freight car if the Commission finds
that the supply of such type of freight car is adequate. The Commission
may exempt such incentive element from the compensation to be paid by
any carrier or group of carriers if the Commission finds that such an
exemption is in the national interest.".
(b) The Commission shall, within 18 months after the date of
enactment of this Act, // 49 USC 1. // revise its rules, regulations,
and practices with respect to car service, in accordance with the
amendment made by subsection (a) of this section.
Sec. 301. Section 17 of the Interstate Commerce Act (49 U.S.C. 17),
as amended by section 303 of this Act, is further amended by inserting
therein a new paragraph (15) as follows:
"(15) Whenever the Committee on Interstate and Foreign Commerce of
the House of Representatives or the Committee on Commerce of the Senate
makes a written request for documents which are in the possession or
under the control of the Commission and which relate to any matter
involving a common carrier by railroad subject to this part, the
Commission shall, within 10 days after the date of receipt of such
request, submit such documents (or copies thereof) to such committee, or
submit a report in writing to such committee stating the reason why such
documents have not been so submitted, and the anticipated date on which
they will be submitted. If the Commission transfers any document in its
possession or under its control to any other agency or to any person, it
shall condition such transfer on the guaranteed return by the transferee
of such document to the Commission for purposes of complying with the
preceding sentence. This paragraph shall not apply to documents which
have been obtained by the Commission from persons subject to regulation
by the Commission, and which contain trade secrets or commercial or
financial information of a privileged or confidential nature. This
paragraph shall not be deemed to restrict any other authority of either
House of Congress, or any committee or subcommittee thereof, to obtain
documents. For purposes of this paragraph, the term 'document' means
any book, paper, correspondence, memorandum, or other record, or any
copy thereof.".
Sec. 302. Section 15(2) of the Interstate Commerce Act (49 U.S.C.
15(2)), is amended by striking out ", not less than thirty days, and
shall", and inserting in lieu thereof "as the Commission may prescribe.
Such orders shall".
Sec. 303. (a) Section 17 of the Interstate Commerce Act (49 U.S.C.
17) is amended by redesignating paragraphs (9) through (12) thereof as
paragraphs (10) through (13) thereof, respectively, and by inserting
therein the following new paragraph (9):
"(9)(a) Whenever the term 'hearing' is used in this part, such term
shall be construed to include an opportunity for the submission of all
evidence in written form, followed by an opportunity for briefs, written
statements, or conferences of the parties, such conferences to be
chaired by a division, an individual Commissioner, and administrative
law judge, an employee board, or any other designated employee of the
Commission.
"(b) With respect to any matter involving a common carrier by
railroad subject to this part, whenever the Commission assigns the
initial disposition to any of such matter before the Commission to an
administrative law judge, individual Commissioner, employee board, or
division or panel of the Commission, such judge, Commissioner, board,
division, or panel shall--,
"(i) complete all evidentiary proceedings with respect to such
matter within 180 days after its assignment; and
"(ii) with respect to any matter so assigned which involves
written submissions or the taking of testimony at a public
hearing, submit in writing to the Commission, within 120 days
after the completion of all evidentiary proceedings, an initial
decision, report, or order containing--,
The Commission, or a duly designated division thereof, may, in its
discretion, void any requirement for an initial decision, report, or
order, and, in appropriate cases, may direct that any matter shall be
considered forthwith by the Commission or such division, if it concludes
that the matter involves a question of agency policy, a new or novel
issue of law, or an issue of general transportation importance, or if
the due and timely execution of its functions so requires. Whenever an
initial decision, report, or order is submitted, copies thereof shall be
served upon interested parties. Any such party may file an appeal with
the Commission, with respect to such initial decision or report. If no
such appeal is filed within 20 days after such service, or within such
further period (not to exceed 20 days) as the Commission, or a duly
designated division thereof, may authorize, the order set forth in such
initial decision or report shall become the order of the Commission and
shall become effective unless, within such period, the order shall have
been stayed or postponed by the Commission pursuant to subdivision (d)
or (e).
"(c) The Commission, or a duly designated division thereof, may, upon
its own initiative, and shall, in any case in which an appeal is filed
under subdivision (b), review the matter upon the same record or upon
the basis of a further hearing. Any such appeal shall be considered and
acted upon by the Commission, or a duly designated division thereof,
within 180 days after the date on which such appeal is filed. Any such
decision, report, or order shall be stayed pending the determination of
such appeal. Such a review shall be conducted in accordance with
section 557 of title 5, United States Code, and such rules (limiting and
defining the issues and pleadings upon review) as the Commission may
adopt in conformance with section 557(b) of such title 5. The
Commission may, in its discretion and on such terms and conditions as it
may prescribe, authorize duly designated employee boards to perform
functions under this paragraph of the same character as those which may
be performed by a duly designated division of the Commission (other than
the decision of any appeal under this paragraph which may be further
appealed to the Commission).
"(d) Any decision, order, or requirement of the Commission, or of a
duly designated division thereof, shall become effective 30 days after
it is served on the parties thereto, unless the Commission provides for
such decision, order, or requirement, or any applicable rule, to become
effective at an earlier date. Any interested party to a decision, order
or requirement of a duly designated division of the Commission may
petition the Commission for rehearing, reargument, or other
reconsideration, subject to such rules and limitations as the Commission
may establish. If the Commission finds that a decision, order, or
requirement presents a matter of general transportation importance, or
if it finds that clear and convincing new evidence has been presented or
that changed circumstances exist which would materially affect such
decision, order, or requirement, the Commission may reconsider such
decision, order, or requirement, and it may, in its discretion, stay the
effective date of such decision, order, or requirement. If the
Commission reconsiders a decision, order, or requirement, it must
complete the process and issue its final order not more than 120 days
after the date on which it grants the application for reconsideration.
"(e) The Commission may, in its discretion, extend any time period
set forth in this section for a period of not more than 90 days, if a
majority of the Commissioners, by public vote, agree to such extension.
The Commission shall submit an annual report in writing to each House of
Congress setting forth each extension granted pursuant to this
subdivision (classified by the type of proceeding involved), and stating
the reasons for each such extension and the duration thereof.
"(f) In extraordinary situations in which an extension granted
pursuant to subdivision (e) is not sufficient to allow for completion of
necessary proceedings, the Commission may, in its discretion, grant a
further extension if--,
"(i) not less than 7 of the Commissioners, by public vote,
agree to such further extension; and
"(ii) not less than 15 days prior to expiration of the
extension granted pursuant to subdivision (e), the Commission
reports in writing to the Congress that such further extension has
been granted, together with--,
"(g) The Commission may, at any time upon its own initiative, on
grounds of material error, new evidence, or substantially changed
circumstances--,
"(i) reopen any proceeding;
"(ii) grant rehearing, reargument, or reconsideration with
respect to any decision, order, or requirement; and
"(iii) reverse, modify, or change any decision, order, or
requirement.
The Commission may establish rules allowing interested parties to
petition for leave to request reopening and reconsideration based upon
material error, new evidence, or substantially changed circumstances.
"(h) Notwithstanding any other provision of this Act, any decision,
order, or requirement of the Commission, or of a duly designated
division thereof, shall be final on the date on which it is served. A
civil action to enforce, enjoin, suspend, or set aside such a decision,
order, or requirement, in whole or in part, may be brought after such
date in a court of the United States pursuant to the provisions of law
which are applicable to suits to enforce, enjoin, suspend, or set aside
orders of the Commission.
"(i) Notwithstanding the provisions of paragraphs (5), (6), (7), and
(8), the provisions of this paragraph shall govern the disposition of,
and shall apply only to, any matter before the Commission which involves
a common carrier by railroad subject to this part, except that the
provisions of other sections of this part pertaining to deadlines in
Commission proceedings shall govern to the extent that they are
inconsistent with the provisions pertaining to deadlines contained in
this paragraph.
"(j) Reports in writing and other written statement (including, but
not limited to, any report, order, decision and order, vote, notice,
letter, policy statement, rule, or regulation) of any official action of
the Commission (whether such action is taken by the Commission, a
division thereof, any other group of Commissioners, a single
Commissioner, and employee board, an administrative law judge, or any
other individual or group of individuals who are authorized to take any
official action on behalf of the Commission) shall indicate (i) the
official designation of the individual or group taking such action (ii)
the name of each individual taking, or participating in taking, such
action, and (iii) the vote or position of each such participating
individual. If any individual who is officially designated as a member
of a group which takes any such action does not participate in such
action, the written statement of such action shall indicate that such
individual did not participate. Each individual who participates in
taking any such action shall have the right to express his individual
views as part of the written statement of such action. The written
statement of any such action shall be made available to the public in
accordance with Federal law.".
(b) Section 17 of the Interstate Commerce Act // 49 USC 17. // is
amended by inserting therein a new paragraph (14) as follows:
"(14)(a) Any formal investigative proceeding with respect to a common
carrier by railroad which is instituted by the Commission after the date
of enactment of this subdivision shall be concluded by the Commission
with administrative finality within 3 years after the date on which such
proceeding is instituted. Any such proceeding which is not so concluded
by such date shall automatically be dismissed.
"(b) Within 1 year after the date of enactment of this subdivision,
the Commission shall conclude or terminate, with administrative
finality, any formal investigative proceeding with respect to a common
carrier by railroad which was instituted by the Commission on its own
initiative and which has been pending before the Commission for a period
of 3 or more years following the date of the order which instituted such
prodeeding.".
Sec. 304. (a) Part I of the Interstate Commerce Act is amended by
redesignating section 27 // 49 USC 27. // thereof as section 29 thereof
and by inserting after section 26 thereof a new section 27, as follows:
" Sec. 27. // 49 USC 26b. // (1) There shall be established, within
60 days after the date of enactment of this section, a new independent
office affiliated with the Commission to be known as the Office of Rail
Public Counsel. The Office of Rail Public Counsel shall function
continuously pursuant to this section and other applicable Federal laws.
"(2)(a) The Office of Rail Public Counsel shall be administered by a
Director. The Director shall be appointed by the President, by and with
the advice and consent of the Senate.
"(b) The term of office of the Director shall be 4 years. He shall
be responsible for the discharge of the functions and duties of the
Office of Rail Public Counsel. He shall be appointed and compensated,
without regard to the provisions of title 5, United States Code,
governing appointments in the competitive service, classification, and
General Schedule pay rates, at a rate not in excess of the maximum rate
for GS-18 of the General Schedule under section 5332 of such title. // 5
USC 5332 //
"(3) The Director is authorized to appoint, fix the compensation, and
assign the duties of employees of such Office and to procure temporary
and intermittent services to the same extent as is authorized under
section 3109 of title 5, United States Code. Each bureau, office, or
other entity of the Commission and each department, agency, and
instrumentality of the executive branch of the Federal Government and
each independent regulatory agency of the United States is authorized to
provide the Office of Rail Public Counsel with such information and data
as it requests. The Director is authorized to enter into, without
regard to section 3709 of the Revised Statutes of the United States (41
U.S.C. 5), such contracts, leases, cooperative agreements, or other
transactions as may be necessary in the conduct of his functions and
duties. The Director shall submit a monthly report on the activities of
the Office of Rail Public Counsel to the Chairman of the Commission, and
the Commission, in its annual report to the Congress, shall evaluate and
make recommendations with respect to such Office and its activities,
accomplishments, and shortcomings.
"(4) In addition to any other duties and responsibilities prescribed
by law, the Office of Rail Public Counsel--,
"(a) shall have standing to become a party to any proceeding,
formal or informal, which is pending or initiated before the
Commission and which involves a common carrier by railroad subject
to this part;
"(b) may petition the Commission for the initiation of
preceedings on any matter within the jurisdiction of the
Commission which involves a common carrier by railroad subject to
this part;
"(c) may seek judicial review of any Commission action on any
matter involving a common carrier by railroad subject to this
part, to the extent such review is authorized by law for any
person and on the same basis;
"(d) shall solicit, study, evaluate, and present before the
Commission, in any proceeding, formal or informal, the views of
those communities and users of rail service affected by
proceedings initiated by or pending before the Commission,
whenever the Director determines, for whatever reason (such as
size or location), that such community or user of rail service
might not otherwise be adequately represented before the
Commission in the course of such proceedings; and
"(e) shall evaluate and represent, before the Commission and
before other Federal agencies when their policies and activities
significantly affect rail transportation matters subject to the
jurisdiction of the Commission, and shall by other means assist
the constructive representation of, the public interest in safe,
efficient, reliable, and economical rail transportation services.
In the performance of its duties under this paragraph, the Office of
Rail Public Counsel shall assist the Commission in the development of a
public interest record in proceedings before the Commission.
"(5) The budget requests and budget estimates of the Office of Rail
Public Counsel shall be submitted concurrently to the Congress and to
the President.
"(6) There are authorized to be appropriated to the Office of Rail
Public Counsel for the purpose of carrting out the provisions of this
section not to exceed $500,000 for the fiscal year ending June 30, 1976,
not to exceed $500,000 for the fiscal year transition period ending
September 30, 1976, and not to exceed $2,000,000 for the fiscal year
ending September 30, 1977.".
(b) Section 13 of the Interstate Commerce Act (49 U.S.C. 13), as
amended by this Act, is further amended by adding at the end thereof the
following new paragraph:
"(6)(a) Whenever, pursuant to section 553(e) of title 5, United
States Code, an interested person (including a government entity)
petitions the Commission for the commencement of a proceeding for the
issuance, amendment, or repeal of an order, rule, or regulation relating
to common carriers by railroads under this Act, the Commission shall
grant or deny such petition within 120 days after the date of receipt of
such petition. If the Commission grants such a petition, it shall
commence an appropriate proceeding as soon thereafter as practicable.
If the Commission denies such a petition, it shall set forth, and
publish in the Federal Register, its reasons for such denial.
"(b) If the Commission denies a petition under subdivision (a) (or if
it fails to act thereon within the 120-day period established by such
subdivision), the petitioner may commence a civil action in an
appropriate court of appeals of the United States for an order directing
the Commission to initiate a proceeding to take the action requested in
such petition. Such an action shall be commenced within 60 days after
the date of such denial or, where appropriate, within 60 days after the
date of expiration of such 120-day period.
"(c) If the petitioner, in an action commenced under subdivision (b),
demonstrates to the satisfaction of the court, by a preponderance of the
evidence in the record before the Commission or, in an action based on a
petition on which the Commission failed to act, in a new proceeding
before such court, that the action requested in such petition to the
Commission is necessary and that the failure of the Commission to take
such action will result in the continuation of practices which are not
consistent with the public interest or in accordance with this Act, such
court shall order the Commission to initiate such action.
"(d) In any action under this paragraph, a court shall have no
authority to compel the Commission to take any action other than the
initiation of a proceeding for the issuance, amendment, or repeal of an
order, rule, or regulation under this Act.
"(e) As used in this paragraph, the term ' Commission' includes any
division, individual Commissioner, administrative law judge, employee
board, or any other person authorized to act on behalf of the Commission
in any part of the proceeding for the issuance, amendment, or repeal of
any order, rule, or regulation under this Act relating to common
carriers by railroad.".
Sec. 305. (a) Within 360 days after the date of enactment of this
Act, // 49 USC 17 // the Commission shall study, develop, and submit to
the Congress an initial proposal setting forth rules of practice under
which the Commission proposes to conduct all adjudicatory and rulemaking
proceedings with respect to any matter involving a common carrier by
railroad subject to this part. Such rules of practice before the
Commission shall be consistent with existing law, shall take into
consideration the varying nature of proceedings before the Commission,
and shall include--,
(1) specific time limits upon the filing and disposition of all
complaints, applications, petitions, pleadings, motions, appeals,
and rulemaking proceedings before an administrative law judge,
individual Commissioner, review board, division, or panel of the
Commission, or the full Commission;
(2) specific methods of taking testimony, receiving evidence,
hearing cross-examination, and the modification of such procedures
so as to facilitate the timely execution of the functions of the
Commission;
(3) utilization of additional administrative law judges or the
assignment of employees of the Office, in complex adjudicatory or
rulemaking proceedings. so as to facilitate proper focus and
timely resolution of the issues within the required time limits;
and
(4) specific remedies in any case of failure to observe
required time limits.
(b) Within 420 days after the date of enactment of this Act, the
Administrative Conference of the United States shall submit to the
Congress and to the Commission its comments on the rules of practice
before the Commission proposed pursuant to subsection (a) of this
section, together with such recommendations as it considers appropriate.
(c) Within 30 days after the receipt of comments submitted pursuant
to subsection (b) of this section, the Commission shall consider such
comments and shall submit to the Congress a final proposal setting forth
the rules of practice before the Commission with respect to matters
involving common carriers by railroad. Such rules of practice shall
take effect at the end of the first period of 60 calendar days of
continuous session of the Congress after the date of submission of such
final proposal, unless either the Senate or the House of Representatives
adopts a resolution during such period stating that it does not approve
such final proposal. If no resolution is adopted as provided in the
prededing sentence, the Commission shall adopt such proposed rules of
practice. For purposes of this subsection, continuity of session of the
Congress is broken only by an adjournment sine die, and the days on
which either House is not in session because of an adjournment of more
than 3 days to a day certain are excluded from the computation of the
60-day period.
(d) If either the Senate or the House of Representatives passes a
resolution of disapproval under subsection (c) of this section, the
Commission shall develop a revised proposal setting forth the rules of
practice before the Commission pursuant to this section. Within 60 days
after the date of such disapproval, each such revised proposal shall be
submitted to the Congress by the Commission for review pursuant to such
subsection (c).
(e) The Commission shall periodically, but not less than once every 3
years, review the rules of practice adopted pursuant to subsection (c)
of this section, and shall revise such rules as it considers necessary.
Sec. 306. Part I of the Interstate Commerce Act (49 U.S.C. 1 et
seq.), as amended by this Act, is further amended by inserting therein a
new section 28, as follows:
" Sec. 28. (1) Notwithstanding the provisions of section 202 (b), //
49 USC 26c. // any action described in this subsection is declared to
constitute an unreasonable and unjust discrimination against, and an
undue burden on, interstate commerce. It is unlawful for a State, a
political subdivision of a State, or a governmental entity or person
acting on behalf of such State or subdivision to commit any of the
following prohibited acts:
"(a) The assessment (but only to the extent of any portion
based on excessive values as hereinafter described), for purposes
of a property tax levied by any taxing district, of transportation
property at a value which bears a higher ratio to the true market
value of such transportation property than the ratio whcih the
assessed value of all other commercial and industrial property in
the same assessment jurisdiction bears to the true market value of
all such other commercial and industrial property.
"(b) The levy or collection of any tax on an assessment which
is unlawful under subdivision (a).
"(c) The levy or collection of any ad valorem property tax on
transportation property at a tax rate higher than the tax rate
generally applicable to commercial and industrial property in the
same assessment jurisdiction.
"(d) The imposition of any other tax which results in
discriminatory treatment of a common carrier by railroad subject
to this part.
"(2) Notwithstanding any provision of section 1341 of title 28,
United States Code, or of the constitution or laws of any State, the
district courts of the United States shall have jurisdiction, without
regard to amount in controversy or citizenship of the parties, to grant
such mandatory or prohibitive injunctive relief, interim equitable
relief, and declaratory judgments as may be necessary to prevent,
restrain, or terminate any acts in violation of this section, except
that--,
"(a) such jurisdiction shall not be exclusive of the
jurisdiction which any Federal or State court may have in the
absence of this subsection;
"(b) the provisions of this section shall not become effective
until 3 years after the date of enactment of this section;
"(c) no relief may be granted under this section unless the
ratio of assessed value to true market value, with respect to
transportation property, exceeds by at least 5 per centum the
ratio of assessed value to true market value, with respect to all
other commercial and industrial property in the same assessment
jurisdiction;
"(d) the burden of proof with respect to the determination of
assessed value and true market value shall be that declared by the
applicable State law; and
"(e) in the event that the ratio of the assessed value of all
other commercial and industrial property in the assessment
jurisdiction to the true market value of all such other commercial
and industrial property cannot be established through the
random-sampling method known as a sales assessment ratio study
(conducted in accordance with statistical principles applicable to
such studies) to the satisfaction of the court hearing the
complaint that transportation property has been or is being
assessed or taxed in contravention of the provisions of this
section, then the court shall hold unlawful an assessment of such
transportation property at a value which bears a higher ratio to
the true market value of such transportation property than the
assessed value of all other property in the assessment
jurisdiction in which is included such taxing district and subject
to a property tax levy bears to the true market value of all such
other property, and the collection of any ad valorem property tax
on such transportation property at a tax rate higher than the tax
rate generally applicable to taxable property in the taxing
district.
"(3) As used in this section, the term--,
"(a) 'assessment' means valuation for purposes of a property
tax levied by any taxing district;
"(b) 'assessment jurisdiction' means a geographical area, such
as a State or a county, city, township, or special purpose
district within such State which is a unit for purposes of
determining the assessed value of property for ad valorem
taxation;
"(c) 'commercial and industrial property' or 'all other
commercial and industrial property' means all property, real or
personal, other than transportation property and land used
primarily for agricultural purposes or primarily for the purpose
of growing timber, which is devoted to a commercial or industrial
use and which is subject to a property tax levy; and
"(d) 'transportation property' means transportation property,
as defined in regulations of the Commission, which is owned or
used by a common carrier by railroad subject to this part or which
is owned by the National Railroad Passenger Corporation.".
Sec. 307. Paragraph (3) of section 20 of the Interstate Commerce Act
(49 U.S.C. 20(3)) is amended to read as follows:
"(3)(a) The Commission shall, not later than June 30, 1977, issue
regulations and procedures prescribing a uniform cost and revenue
accounting and reporting system for all common carriers by railroad
subject to this part. Such regulations and procedures shall become
effective not later than January 1, 1978. Before promulgating such
regulations and procedures, the Commission shall consult with and
solicit the views of other agencies and departments of the Federal
Government, representatives of carriers, shippers, and their employees,
and the general public.
"(b) In order to assure that the most accurate cost and revenue data
can be obtained with respect to light density lines, main line
operations, factors relevant in establishing fair and reasonable rates,
and other regulatory areas of responsibility, the Commission shall
identify and define the following items as they pertain to each facet of
rail operations:
"(i) operating and nonoperating revenue accounts;
"(ii) direct cost accounts for determining fixed and variable
cost for materials, labor, and overhead components of operating
expenses and the assignment of such costs to various functions,
services, or activities, including maintenance-of-way, maintenance
of equipment (locomotive and car), transportation (train, yard and
station, and accessorial services), and general and administrative
expenses; and
"(iii) indirect cost accounts for determining fixed, common,
joint, and constant costs, including the cost of capital, and the
method for the assignment of such costs to various functions,
services, or activites.
"(c) The accounting system established pursuant to this paragraph
shall be in accordance with generally accepted accounting principles
uniformly applied to all common carriers by railroad subject to this
part, and all reports shall include any disclosure considered
appropriate under generally accepted accounting principles or the
requirements of the Commission or of the Securities and Exchange
Commission. The Commission shall, notwithstanding any other provision of
this section, to the extent possible, devise the system of accounts to
be cost effective, nonduplicative, and compatible with the present and
desired managerial and responsibility accounting requirements of the
carriers, and to give due consideration to appropriate economic
principles. The Commission should attempt, to the extent possible, to
require that such data be reported or otherwise disclosed only for
essential regulatory purposes, including rate change requests,
abandonment of facilities requests, responsibility for peaks in demand,
cost of service, and issuance of securities.
"(d) In order that the accounting system established pursuant to this
paragraph continue to conform to generally accepted accounting
principles, compatible with the managerial responsibility accounting
requirements of carriers, and in compliance with other objectives set
forth in this section, the Commission shall periodically, but not less
than once every 5 years, review such accounting system and revise it as
necessary.
"(e) There are authorized to be appropriated to the Commission for
purposes of carrying out the provisions of this paragraph such sums as
may be necessary, not to exceed $1,000,000, to be available for--,
"(i) procuring temporary and intermittent services as
authorized by section 3109(b) of title 5, United States Code, but
at rates for individuals not to exceed $250 per day plus expenses;
and
"(ii) entering into contracts or cooperative agreements with
any public agency or instrumentality or with any person, firm,
association, corporation, or institution, without regard to
section 3709 of the Revised Statutes of the United States (41 U.
S.C. 5).".
Sec. 308. (a)(1) Paragraph (6) of section 3(a) of the Securities Act
of 1933 (15 U.S.C. 77c(a)(6)) is amended to read as follows:
"(6) Any security issued by a motor carrier the issuance of which is
subject to the provisions of section 214 of the Interstate Commerce Act,
or any interest in a railroad equipment trust. For purposes of this
paragraph 'interest in a railroad equipment trust' means any interest in
an equipment trust, lease, conditional sales contract, or other similar
arrangement entered into, issued, assumed, guaranteed by, or for the
benefit of, a common carrier to finance the acquisition of rolling
stock, including motive power;".
(2) The second sentence of section 19(a) of such Act (15 U.S.C. 77s(
a)) is amended by striking out "; but insofar as they relate to any
common carrier subject to the provisions of section 20 of the Interstate
Commerce Act, // 49 USC 20. // as amended, the rules and regulations of
the Commission with respect to accounts shall not be inconsistent with
the requirements imposed by the Interstate Commerce Commission under
authority of such section 20".
(3) Section 214 of the Interstate Commerce Act (49 U.S.C. 314) is
amended by striking out " That the exemption" and all that follows
through " And provided further,".
(b) Section 13(b) of the Securities Exchange Act of 1934 (15 U.S.C.
78m(b)) is amended by striking out ", and, in the case of carriers
subject to the provisions of section 20 of the Interstate Commerce Act"
and all that follows in such subsection, and inserting in lieu thereof
"(except that such rules and regulations of the Commission may be
inconsistent with such requirements to the extent that the Commission
determines that the public interest or the protection of investors so
requires).".
(c) Paragraph (7) of section 3(c) of the Investment Company Act of
1940 (15 U.S.C. 80a-3(c)(7) is amended to read as follows:
"(7) Any company (A) which is subject to regulation under section 214
of the Interstate Commerce Act, except that this exception shall not
apply to a company which the Commission finds and by order declares to
be primarily engaged, directly or indirectly, in the business of
investing, reinvesting, owning, holding, or trading in securities, or
(B) whose entire outstanding stock is owned or controlled by a company
excepted under clause (A) hereof, if the assets of the controlled
company consist substantially of securities issued by companies which
are subject to regulation under section 214 of the Interstate Commerce
Act.".
(d)(1) The amendments made by subsection (a) of this section // 15
USC 77c // shall take effect on the 60th day after the date of enactment
of this Act, but shall not apply to any bona fide offering of a security
made by the issuer, or by or through an underwriter, before such 60th
day.
(2) The amendment made by subsection (c) of this section // 15 USC
80a/3 // shall not apply to any report by any person with respect to a
fiscal year of such person which began before the date of enactment of
this Act.
(3) The amendment made by subsection (c) of this section // 15 USC
80a-3 // shall take effect on the 60th day after the date of enactment
of this Act.
Sec. 309. Section 205 of the Regional Rail Reorganization Act of
1973 (45 U.S.C. 715) is amended to read as follows:
" Sec. 205. (a) Establishment.--The Rail Services Planning Office is
established as an office in the Commission. The Office shall function
continuously pursuante to the provisions of this Act, and shall be
administered by a director.
"(b) Director.--The Director of the Office shall be appointed for a
term of 6 years by the Chairman of the Commission with the concurrence
of 5 members of the Commission. He shall be appointed and compensated,
without regard to the provisions of title 5, United States Code,
governing appointments in the competitive service, classification, and
General Schedule pay rates, at a rate not in excess of the maximum rate
for GS-18 of the General Schedule under section 5332 of such title. The
Director of the Office shall administer and be responsible for the
discharge of the functions and duties of the Office from the date he
takes office unless removed for cause by the Commission.
"(c) Powers.--The Director of the Office is subject to the direction
of, and shall report to, such member of the Commission as the Chairman
thereof shall designate. The Chairman may designate himself as that
member. Such Director is authorized, with the concurrence of such
member or (in case of disagreement) the Chairman of the Commission, to
enter into, without regard to section 3709 of the Revised Statutes of
the United States (41 U.S.C. 5) such contracts, leases, cooperative
agreements, or other transactions as may be necessary in the conduct of
the functions and duties of the Office with any person (including a
government entity). Each department, agency, and instrumentality of the
executive branch of the Federal Government and each independent
regulatory agency of the United States is authorized, and shall give
careful consideration to a request, to furnish to the Director of the
Office, upon written request, on a reimbursable basis or otherwise, such
assistance as the Director deems necessary to carry out the functions
and duties of the Office. Such assistance includes transfer of
personnel with their consent and without prejudice to their position and
rating.
"(d) Duties.--In addition to its duties and responsibilities under
other provisions of this Act and under the Railroad Revitalization and
Regulatory Reform Act of 1976, the Office shall--,
"(1) assist the Commission in studying and evaluating any
proposal, submitted to the Commission pursuant to section 5 (2) or
(3) of the Interstate Commerce Act (49 U.S.C. 5(2) or (3)), for a
merger, consolidation, unification or coordination project, joint
use of tracks or other facilities, or acquisition or sale of
assets, which involves any common carrier by railroad subject to
part I of such Act:
"(2) assist the Commission in developing, with respect to
economic regulation of transportation, policies which are likely
to result in a more competitive, energy-effidient, and coordinated
transportation system which utilizes each mode of transportation
to its maximum advantage to meet the transportation service needs
of the Nation;
"(3) assist States and local and regional transportation
agencies in making determinations whether to provide rail service
continuation subsidies to maintain in operation particular rail
properties, by establishing criteria for determining whether
particular rail properties are suitable for rail service
continuation subsidies, with such criteria to include the
following considerations: rail properties are suitable if the
cost of the required subsidy for such properties per year to the
taxpayers is less than (A) the cost of termination of rail service
over such properties measured by increased fuel consumption and
operational costs for alternative modes of transportation, (B) the
cost to the gross national product in terms of reduced output of
goods and services, (C) the cost of relocating or assisting
through unemployment, retraining, and welfare benefits to
individuals and firms adversely affected thereby, and (D) the cost
to the environment measured by damage caused by increased
pollution;
"(4) conduct an ongoing analysis of the national rail
transportation needs, evaluate the policies, plans, and programs
of the Commission on the basis of such analysis, and advise the
Commission of the results of such evaluation;
"(5) within 180 days after the date of enactment of the
Railroad Revitalization and Regulatory Reform Act of 1976, issue
additional regulations, after conducting a proceeding in
accordance with the provisions of section 553 of title 5, United
States Code, which contain--,
"(6) determine and publish, and from time to time revise and
reissue, standards for determining (A) the 'revenue attributable
to the rail properties', (B) the 'avoidable costs of providing
service', (C) a 'reasonable return on the value,' and (D) a
'reasonable management fee', as those phrases are used in section
304 of this Act, after a proceeding in accordance with the
provisions of section 553 of title 5, United States Code; and
"(7) employ and utilize the services of attorneys and such
other personnel as may be required in order properly to protect
the interests of those communities and users of rail service
which, for whatever reason (such as their size or location) might
not otherwise be adequately represented in the course of the
reorganization process under this Act, until the assumption of
such duties by the Office of Rail Public Counsel pursuant to
section 27(4)(d) of the Interstate Commerce Act (49 U.S.C. 27(4)(
d)).
"(e) Additional Duties.--(1) Within 270 days after the date of
enactment of the Railroad Revitalization and Regulatory Reform Act of
1976, the Office shall issue additional regulations, after conducting a
proceeding in accordance with section 553 of title 5, United States
Code. Such regulations shall (A) develop an accounting system which
will permit the collection and publication by the Corporation or by
profitable railroads providing service over lines scheduled for
abandonment, of information necessary for an accurate determination of
the attributable revenues, avoidable costs, and operations of light
density lines as operating and economic units, and (B) determine the
'avoidable costs of providing rail freight service', as that phrase is
used in section 1a (6)(a)(ii)(A) of the Interstate Commerce Act. The
Office may, at any time, revise and republish the standards and
regulations required by this section to incorporate changes made
necessary by the accounting system developed pursuant to this
subsection.
"(2) Upon the request of a State in the region, within 90 days after
the date of enactment of the Railroad Revitalization and Regulatory
Reform Act of 1976, the Office shall prepare and publish an evaluation
of the economic viability of any or all light density lines within such
State which are not designated for inclusion in the final system plan.
Such an evaluation shall include an analysis of the actions which may be
necessary to make the operation of rail services over any such line
economical. The results of each such evaluation shall be transmitted to
the requesting State and published in the Federal Register, not later
than 1 year after the date such request is received by the Office.".
Sec. 310. Section 1(12) of the Interstate Commerce Act (49 U.S.C.
1(12)), is amended by adding at the end thereof: " In applying the
provisions of this paragraph, unit-train service and non-unit-train
service shall be considered separate and distinct classes of service,
and a distinction shall be made between these two classes of service and
between the cars used in each class of service; questions of the
justness and reasonableness of, or discrimination or preference or
prejudice or advantage or disadvantage in, the distribution of cars
shall be determined within each such class and not between them,
notwithstanding any other provision of section 1, 2, or 3 of this Act
(49 U.S.C. 1, 2, or 3), and of section 1, 2, or 3 of the Elkins Act (49
U.S.C. 41, 42, or 43). Coal cars supplied by shippers or receivers shall
not be considered a part of such carrier's fleet or otherwise counted in
determining questions of distribution or car count under this paragraph
or any provision of law referred to in this section. As used in this
paragraph, the term 'unit-train service', means the movement of a single
shipment of coal of not less than 4,500 tons, tendered to one carrier,
on one bill of lading, at one origin, on one day, and destined to one
consignee, at one plant, at one destination, via one route.".
Sec. 311. Section 201 of the Budget and Accounting Act, 1921 (31 U.
S.C. 11) is amended by adding at the end thereof the following new
subsection:
"(j) Whenever the Interstate Commerce Commission submits any budget
estimate or request, other budget information (including man-power
needs), legislative recommendations prepared testimony for congressional
hearings, or comments on legislation, to the President or to the Office
of Management and Budget, it shall concurrently transmit a copy of such
estimate or request to the Congress. No officer or agency of the United
States shall have any authority to prohibit, impose conditions on, or in
any way impair the free communication by such Commission with the
Congress, its committees, or any of the Members of the Congress with
respect to any budget estimate or request of the Commission.".
Sec. 312. // 49 USC 1 // The Commission shall prepare, or shall cause
to be prepared, in whole or in part by consultants, a proposed
modernization and revision of the Interstate Commerce Act, and a
proposed codification of all Acts supplementary to the Interstate
Commerce Act. The Commission shall submit the final draft thereof to
the Congress within 2 years after the date of enactment of this Act.
The final draft shall include comments on each proposed provision,
significant alternative provisions considered but not recommended, and
such other information as may be useful to the Congress. The final
draft shall be designed to simplify the present law and to harmonize
regulation among the several modes of transportation subject to
regulation under the Interstate Commerce Act.
Sec. 401. The Department of Transportation Act (49 U.S.C. 1651 et
seq.) is amended by inserting after section 4 thereof the following new
section 5:
" Sec. 5. // 49 USC 1654. // (a) The Secretary may develop and make
available to interested persons feasible plans, proposals, and
recommendations for mergers, consolidations, reorganizations, and other
unification or coordination projects for rail services (including, but
not limited to, arrangements for joint use of tracks or other facilities
and any acquisition or sale of assets) which the Secretary believes
would result in a rail system which is more efficient, consistent with
the public interest.
"(b) In order to achieve a more efficient, economical, and viable
rail system in the private sector, the Secretary may, upon the request
of any railroad and in accordance with subsections (a) through (e) of
this section, assist in planning, negotiating, and effecting a
unification or coordination of operations and facilities with respect to
two or more railroads.
"(c) The Secretary may conduct such studies as are deemed advisable
to determine the potential cost savings and possible improvements in the
quality of rail services which are likely to result from unification or
coordination with respect to two or more railroads, through the
elimination of duplicative or overlapping operations and facilities;
the reduction of switching operations; utilization of the shortest, or
the most efficient, and economical routes; the exchange of trackage
rights; the combining of trackage and of terminal or other facilities;
the upgrading of tracks and other facilities used by two or more
railroads; reduction of administrative and other expenses; and any
other measures likely to reduce costs and improve rail service. For
purposes of studies conducted under this section and the study described
in section 901 of the Railroad Revitalization and Regulatory Reform Act
of 1976, each railroad shall provide such information as may be
requested by the Secretary in connection with the performance of
functions under this section and such section 901. In furtherance of
any of the functions or responsibilities of the Secretary under this
section or such section 901, any officer or employee duly designated by
the Secretary may obtain, from any railroad, information regarding the
nature, kind, quality, origin, destination, consignor, consignee, and
routing of property, without the consent of the consignor or consignee
involved, notwithstanding the provisions of section 15(13) of the
Interstate Commerce Act (49 U.S.C. 15(13)) and may, to the extent
necessary or appropriate, exercise, with respect to any railroad, any of
the powers described in section 203(c) of the Regional Rail
Reorganization Act of 1973 (45 U.S.C. 713(c)), as provided therein,
except that subpoenas shall be issued under the signature of the
Secretary.
"(d) When requested by one or more railroads, the Secretary may also
hold conferences with respect to any proposed unification or
coordination project. The Secretary may invite officers and directors
of all affected railroads; representatives of employees of such
railroads who may be affected; the Interstate Commerce Commission;
appropriate State and local government officials, shippers, and consumer
representatives; and representatives of the Federal Trade Commission
and of the Attorney General to one or more such conferences with respect
to such a proposal. The Secretary may mediate any dispute which may
arise in connection with any proposed unification or coordination
project. Persons attending or represented at any such conference shall
not be liable under the antitrust laws of the United States with respect
to any discussion at such conference and as to any agreements reached at
such conference, which are entered into with the approval of the
Secretary in order to achieve or determine a plan of action to implement
any such unification or coordination project.
"(e) Whenever any railroad submits a proposal for a merger or other
action the approval of which is subject to the jurisdiction of the
Interstate Commerce Commission under section 5(2) of the Interstate
Commerce Act (49 U.S.C. 5(2)), the Secretary may, if he has not already
done so, conduct a study of such proposal in order to determine whether
or not, in his judgment, such proposal is in accordance with the
standards set forth in section 5(2)(c) of such Act (49 U.S.C. 5(2)(c)).
Whenever such proposal is the subject of an application and a proceeding
before such Commission, the Secretary is authorized to appear before the
Commission in any proceeding held with respect to such application.".
Sec. 402. (a) Section 5(2)(f) of the Interstate Commerce Act (49 U.
S.C. 5(2)(f)) is amended by inserting a new sentence immediately
preceding the last sentence thereof as follows: " Such arrangement
shall contain provisions no less protective of the interests of
employees than those heretofore imposed pursuant to this subdivision and
those established pursuant to section 405 of the Rail Passenger Service
Act (45 U.S.C. 565).".
(b) Section 5(2) of the Interstate Commerce Act (49 U.S.C. 5(2)) is
amended by adding at the end thereof the following two new subdivisions:
"(g) In any case arising under this paragraph which involves a common
carrier by railroad, the Commission shall--,
"(i) within 30 days after the date on which an application is
filed with the Commission and after a certified copy of such
application is furnished to the Secretary of Transportation, (A)
publish notice thereof in the Federal Register, or (B) if such
application is incomplete, reject such application by order, which
order shall be deemed to be final under the provisions of section
17;
"(ii) provide that written comments on an application, as to
which such notice is published, may be filed within 45 days after
the publication of such notice in the Federal Register;
"(iii) require that copies of any such comments shall be served
upon the Secretary of Transportation and the Attorney General,
each of whom shall be afforded 15 days following the date of
receipt thereof to inform the Commission whether he will intervene
as a party to the proceeding, and if so, to submit preliminary
views on such application;
"(iv) require that all other applications, which are
inconsistent, in whole or in part, with such applications, and all
petitions for inclusion in the transaction, shall be filed with
the Commission and furnished to the Secretary of Transportation,
within 90 days after the publication of notice of the application
in the Federal Register;
"(v) conclude any evidentiary proceedings within 240 days
following the date of such publication of notice, except that in
the case of an application involving the merger or control of two
or more class I railroads, as defined by the Commission, the
Commission shall conclude any evidentiary proceeding not more than
24 months following the date upon which notice of the application
was published in the Federal Register; and
"(vi) issue a final decision within 180 days following the date
upon which the evidentiary proceeding is concluded.
If the Commission fails to issue a decision which is final within the
meaning of section 17 within such 180-day period, it shall notify the
Congress in writing of such failure and the reasons therefor. If the
Commission determines that the due and timely execution of its functions
under this paragraph so requires, or that an application brought under
this paragraph is of major transportation importance, it may order that
the case be referred directly (without an initial decision by a
division, individual Commissioner, board, or administrative law judge)
to the full Commission for a decision which is final within the meaning
of section 17.
"(h) The Secretary of Tansportation may propose any modification of
any transaction governed by this paragraph which involves a carrier by
railroad. The Secretary shall have standing to appear before the
Commission in support of any such proposed modification.".
Sec. 403. (a) Section 5 of the Interstate Commerce Act (49 U.S.C.
5) is amended by redesignating paragraphs (3) through (16) thereof as
paragraphs (4) through (17) thereof, respectively, and by inserting
therein a new paragraph (3), as follows:
"(3)(a) If a merger, consolidation, unification or coordination
project (as described in section 5(c) of the Department of
Transportation Act), joint use of tracks or other facilities, or
acquisitiob or sale of assets, which involves any common carrier by
railroad subject to this part, is proposed by an eligible party in
accordance with subdivision (b) during the period beginning on the date
of enactment of this paragraph and ending on Decmber 31, 1981, the party
seeking authority for the execution or implementation of such
transaction may utilize the procedure set forth in this paragraph or in
paragraph (2).
"(b) Any transaction described in subdivision (a) may be proposed to
the Commission by--,
"(i) the Secretary to Transportation (hereafter in this
paragraph referred to as the ' Secretary'), with the consent of
the common carriers by railroad subject to this part which are
parties to such transaction; or
"(ii) any such carrier which, not less than 6 months prior to
such submission to the Commission, submitted such proposed
transaction to the Secretary for evaluation pursuant to
subdivision (f).
"(c) Whenever a transaction described in subdivision (a) is proposed
under this paragraph, the proposing party shall submit an application
for approval thereof to the Commission, in accordance with such
requirements as to form, content, and documentation as the Commission
may prescribe. Within 10 days after the date of receipt of such an
application, the Commission shall send a notice of such proposed
transaction to--,
"(i) the Governor of each State which may be affected, directly
or indirectly, by such transaction if it is executed or
impemented;
"(ii) the Attorney General;
"(iii) the Secretary of Labor; and
"(iv) the Secretary (except where the Secretary is the
proposing party).
The Commission shall accompany its notice to the Secretary with a
request for the report of the Secretary pursuant to clause (v) of
subdivision (f). Each such notice shall include a copy of such
application; a summary of theproposed transaction involved, and the
proposing party's reasons and public interest justifications therefor.
"(d) The Commission shall hold a public hearing on each application
submitted to it pursuant to subdivision (c), within 90 days after the
date of receipt of such application. Such public hearing shall be held
before a panel of the Commission duly designated for such purpose by the
Commisssion. Such panel may utilize administrative law judges and the
Rail Services Planning Office in such manner as it considers appropriate
fo the conduct of the hearing, the evaluation of such application and
comments hereon, and the timely and reasonable determination of whether
it is in the public interest to grant such application and to approve
such proposed transaction pursuant to subdivision (g). Such panel shall
complete such hearing within 180 days after the date of referral of such
application to such panel, and it may, in order to meet such
requirement, prescribe such rules and make such rulings as may tend to
avoid unnecessary costs or delay. Such panel shall recommend a decision
and certify the record to the full Commission for final decision, within
90 days after the termination of such hearing. The full Commission
shall hear oral argument on the matter so certified, and it shall render
a final decision within 120 days after receipt of the certified record
and recommended decision of such panel. The Commission may, in its
discretion, extend any time period set forth in this subdivision, except
that the final decision of the Commission shall be rendered not later
than the second anniversary of the date of receipt of such an
application by Commission.
"(e) In making its recommended descision with respect to any
transaction proposed under this paragraph, the duly designated panel of
the Commission shall--,
"(i) request the views of the Secretary, with respect to effect
of such proposed transaction on the national transportation
policy, as stated by the Secretary, and consider the matter
submitted under subdivision (f);
"(ii) request the views of the Attorney General, with respect
to any competitive or anticompetitive effects of such proposed
transaction; and
"(iii) request the views of the Secretary of Labor, with
respect to the effect of such proposed transaction on railroad
employees particularly as to whether such proposal contains
adequate employee protection provisions.
Such views shall be submitted in writing and shall be available to the
public upon request.
"(f) Whenever a proposed transaction is submitted to the Secretary by
a common carrier by railroad pursuant to clause (ii) of subdivision (b),
and whenever the Secretary develops a proposed transaction for
submission to the Commission pursuant to subdivision (c), the Secretary
shall--,
"(i) publish a summary and a detailed account of the contents
of such proposed transaction in the Federal Register, in order to
provide reasonable notice to interested parties and the public of
such proposed transaction;
"(ii) give notice of such proposed transaction to the Attorney
General and to the Governor of each State in which any part of the
properties of the common carriers by railroad involved in such
proposed transaction are situated;
"(iii) conduct an informal public hearing with respect to such
proposed transaction and provide an opportunity for all interested
parties to submit written comments;
"(iv) study each such proposed transaction with respect to--,
retention and promotion of competition in the provision of rail
and other transportation services in the geographical
area
affected;
"(v) submit a report to the Commission setting forth the
results of each study conducted pursuant to clause (iv), within 10
days after an application is submitted to the Commission pursuant
to subdivision (c), with respect to the proposed transaction which
is the subject of such study. The Commission shall give due
weight and consideration to such report in making its
determinations under this paragraph.
"(g) The Commission may--,
"(i) approve a transaction proposed under this paragraph, if
the Commission determines that such proposed transaction is in the
public interest; and
"(ii) condition its approval of any such proposed transaction
on any terms, consitions, and modifications which the Commission
determines are in the public interest; or
(iii) disapprove any such proposed transaction, if the
Commission determines that such proposed transaction is not in the
public interest.
In each such case, the decision of the Commission shall be accompanied
by a written opinion setting forth the reasons for its action.".
(b) Section 5 of the Interstate Commerece Act (49 U.S.C. 5) is
further amended--,
(1) in paragraph (2)(a) thereof by inserting "or paragraph (3)"
immediately after "subdivision (b)";
(2) in paragraph (2)(f) thereof, by inserting immediately after
"(2)" the following: "or paragraph (3)";
(3) in paragraph (5) thereof, as redesignated by this Act, by
striking out "paragraph (2)" and inserting in lieu thereof
"paragraphs (2) and (3)", and by striking out "paragraph (5)" and
inserting in lieu thereof "paragraph (6)";
(4) in paragraph (8) thereof, as redesignated by this Act, by
striking out "paragraph (4)" and inserting in lieu thereof
"paragraph (5)", and by striking out "(12)" and inserting in lieu
thereof "(13)";
(5) in paragraph (10) thereof, as redesignated by this Act, by
striking out "(7)" and inserting in lieu thereof "(8)";
(6) in paragraph (14) thereof, as redesignated by this Act, by
striking out "(12)" and inserting in lieu thereof "(13)";
(7) in paragraph (16), as redesignated by this Act, by striking
out "paragraph (14)" and inserting in lieu thereof "paragraph
(15)";
(8) in paragraph (17), as redesignated by this Act, by striking
out "paragraph (14)" and inserting in lieu thereof "paragraph
(15)"; and
(9) by striking out "subparagraph" each place it appears and
inserting in lieu thereof "subdivision".
Sec. 501. // 45 USC 821. // As used in this title, the term--,
(1) "applicant" menas any railroad, or other person (including a
governmental entity) which submits an application to the Secretary for
the guarantee of an obligation under which it is an obligor or for a
commitment to guarantee such an obligation;
(2) "equipment" includes any type of new or rebuilt standard gauge
locomotive, caboose, or general service railroad freight car the use of
which is not limited to any specialized purpose by particular equipment,
design, or other features. General service railroad freight car
includes a boxcar, gondola, open-top or covered hopper car, and flatcar.
The Secretary may designate other types of cars as equipment upon a
written finding, with reasons thereof, that such designation is
consistent with the purposes of this Act:
(3) "facilities" means--,
(A) track, roadbed, and related structures, including rail,
ties, ballast, other track materials, grading, tunnels, bridges,
trestles, culverts, elevated structures, stations, office
buildings used for operating purposes only, repair shops,
enginehouses, and public improvements used or useable for rail
service operations;
(B) communication and power transmission systems. including
electronic, microwave, wireless, communication, and automatic data
processing systems, electrical transmission systems, powerplants,
power transmission systems, powerplant machinery and equipment,
structures, and facilities for the transmission of electricity for
use by railroads;
(C) signals, including signals and interlockers;
(D) terminal or yard facilities, including trailer-on-flat- car
and container-on-flat-car terminals, express or railroad terminal
and switching facilites and services to express companies and
railroads and their shippers, including ferries, tugs, carfloats,
and related shoreside facilties designed for the transportation of
equipment by water; or
(E) shop or repair facilities or any other property used or
capable of being used in rail freight transportation services or
in connection with such services or for originating, terminating,
improving, and expediting the movement of equipment;
(4) " Fund means the Railroad Rehabilitation and Improvement Fund
established under section 502 of this title;
(5) "holder" means the obligee or creditor under an obligation,
except that when a bank or trust company is acting as agent or trustee
for such an obligee or creditor, the term refers to such bank or trust
company;
(6) "obligation" means a bond, note, conditional sale agreement,
equipment trust certificate, security agreement, or other obligation
issued or granted to finance or refinance equipment or facilities
acquisition, construction, rehabilitation, or improvement; and
(7) "obligor" means the debtor under an obligation, including the
original obligor and any successor or assignee of such obligor who is
approved by the Secretary.
sec. 502. (a) ESTABLISHMENT.-- There is hereby established in the
Treasury of the United States the Railroad Rehabilitation and
Improvement Fund. // 42 USC 822. // The Fund shall be administered by
the Secretary, without the requirement of annual authorizations, in
order (1) to secure the payment, when due, of the principal of, any
redemption premium on, and any interest on, all Fund anticipation notes
and Fund bonds, by a first pledge of and a lien on all revenues payable
to and assets held in the Fund, and (2) to carry out the purposes,
functions, and powers authorized in this title.
(b) PURPOSE.-- The purpose of the Fund is to provide capital which is
necessary to furnish assistance to railroads, to the extend of
appropriated funds, for facilites maintenance, rehabilitatiion,
improvements, and acquisitions, and such other financial needs as the
Secretary approves, in accorance with this title.
(c) GENERAL POWERS.-- In order to achieve the obiectives and to carry
out the purposes of this title, the Secretary may--,
(1) issue and sell securites, including Fund anticipation notes
and Fund bonds, as provided for in sections 507 and 508 of this
title;
(2) make and enforce such rules and regulations, and make and
perform such contracts, agreements, and commitments, as may be
necessary to appropriate to carry out the purposes or provisions
of this title;
(3) prescribe and impose fees and charges for services by the
Secretary, pursuant to this title;
(4) settle, adjust, and compromise, and, with or without
consideration or benefit to the Fund, release or waive, in whole
or in part, in advance or otherwise, any claim, demand, or right
of, by, or against the Secretary or the Fund;
(5) sue and be sued, complain, and defend, in any State,
Federal, or other court;
(6) acquire, take, hold, own, deal with, and dispose of, any
property, including carrier redeemable preference shares as
provided for in section 505(d) of this title; and
(7) determine, in accordance with appropriations, the amounts
to be withdrawn from the Fund and the manner in which such
withdrawals shall be effected.
(d) ASSISTANCE FROM OTHER AGENCIES.-- The Secretary, with the consent
of any department, establishment, or corporate or other instrumentality
of the Federal Government, may utilize and act through any such
department, establishement, or instrumentality. The Secretary may, with
such consent, utilize the information, services, facilities, and
personnel of any such department, establishment, or instrumentality, on
a reimbursable basis. Each such department, establishment, and
instrumentality is authorized to furnish any such assistance to the
Secretay upon written request from the Secretary.
(e) JURISDICTION.-- Whenver the Secretary or the Fund is a party to
any civil action under this title, such action shall be deemed to arise
under the laws of the United States. The district courts of the United
States shall have original and removal jurisdiction of any action in
which the Secretary or the Fund is a party, without regard to the amount
in controversy. No attachment or execution may be issued against the
Secretary, the Fund, or any property thereof prior to the entry of final
judgment to such effect in any State, Federal, or other court.
(f) CONTENTS OF FUND.-- There shall be deposited in the Fund, subject
to utilization pursuant to subsection (i) of this section--,
(1) funds received by the Secretarty for deposit in the Fund,
representing the proceeds from the issuance and sale by the
Secretary to the Secretary of the Treasury of Fund anticipation
notes, as provided in section 507 of this title;
(2) funds as may be hereafter appropriated to the Fund,
following the submission to the Congress of the Secretary's
report, under section 504 of this title, with respect to the
perceived needs of the rail industry for facilities rehabilitation
and improvement, projected cash shortfalls within the rail
industry, and the scope and sources of long-term public sector
funding for the Fund;
(3) funds received by the Secretary for deposit in the Fund
representing the proceeds from the issuance and sale of Fund
bonds, as provided in section 508 of this title;
(4) redeemable preference shares issued by a railroad and
purchased by the Secretary on behalf of the Fund and funds
received by the Fund representing dividends and redemption
payments on such shares, as provided in section 505(d) and 506(a)
and (b) of this title;
(5) income and gains realized by the Fund from any investment
of excess funds, pursuant to subsection (g) of this section, and
the obligations or securities comprising such investments; and
(6) any other receipts of the Fund.
(g) Excess Funds Investment.--If the Secretary determines that the
amount of money in the Fund exceeds the amount required for current
needs, the Secretary may, subject to sections 508 (g) and (h) of this
title, direct the Secretary of the Treasury to invest such amounts as
the Secretary deems advisable, for such periods as the Secretary
directs, in obligations of, or obligations guaranteed by, the Government
of the United States, or in such other governmental or agency
obligations or other securities of the United States as the Secretary of
the Treasury deems appropriate.
(h) DEPOSITORY.-- The Secretary may deposit moneys of the Fund with
any Federal Reserve bank any depository for public funds, or in such
other places and in such manner as the Secretary of the Treasury deems
appropriate.
(i) Uses.--Moneys in the Fund shall be utilized--,
(1) to provide financial assistance to railroads for facilities
maintenacne, rehabilitation, improvement, and acquisition
projects, and for such other financial needs as may be approved by
the Secretary pursuant to section 505 of this title,
(2) to effect the payment, when due, of the principal of, and
any interest on, Fund anticipation notes and Fund bonds issued by
the Secretary pursuant to sections 507 and 508 of this title,
(3) to redeem, as contemplated by section 507(c) and section
508(g) of this title, Fund anticipation notes and Fund bonds,
(4) in such amounts as are provided in appropriation acts, to
make payment of all expenses incurred by the Secretary in carrying
out his duties with respect to the Fund, and
(5) to make transfers to the general fund of the Treasury.
Sec. 503. (a) TRAFFIC DENSITY ANALYSIS.-- Within 90 days after the
date of enactment of this Act, // 42 USC 823 // each railroad designated
by the Commission as a class I railroad shall prepare and submit to the
Secretary a full and complete analysis of the rail system operated by
it. Such analysis shall indicate the traffic density for the preceding
5 calendar years on each of the main and branch rail lines of the
railroad submitting such analysis. The requirements of the two
preceding sentences shall not apply to any railroad subject to
reorganization pursuant to the Regional Rail Reorganization Act of 1973.
// 42 USC 701 //
(b) PRELIMINARY STANDARDS AND DEESIGNATIONS.-- Within 180 days after
the date of enactment of this Act, the Secretary shall develop and
publish--,
(1) the preliminary standards for classification, in at least 3
categories, of main and branch rail lines according to the degree
to which they are essential to the rail transportation system;
and
(2) the preliminary designations with respect to each main and
branch rail line, in accordance with such standards for
classification.
The classification of rail lines for purposes of this subsection shall
be based on the level of usage measured in gross-ton -miles, the
contribution to the economic viability of the railroad which controls
such lines, and the contribution of such lines to the probable economic
viability of any other railroads which participate in the traffic
originating on such lines. In determining "level of usage" and
"probable economic viability", for purposes of such classification, the
Secretary shall take into account operational service and other
appropriate factors and he may make reasonable allowance for differences
in operation among individual railroads or groups of railroads.
(c) PUBLIC HEARINGS.-- Commencing 30 days after the date of
publication of the standards and designations required under subsection
(b) of this section, the Office shall conduct public hearings, at
representativel locations, to solicit comments and receive views on the
preliminary standards for classification and on the preliminary
designations. The Office shall give notice of the date, time, and place
of each such hearing, and such notices shall be designed and placed in
such manner that alll interested parties will have a full and fair
opportunity to be heard.
(d) REPORT BY OFFICE.-- Within 120 days after the date of publication
of the standards and designations required under subsection (b) of this
section, the Office shall submit a report to the Secretary containing
its conclusions and recommendations with repect to such preliminary
standards for classification and such preliminary designations. This
report shall be based on the record which was developed by the Office
during the hearings under subsection (c) of this section, as
supplemented by such studies as may be undertaken by the Office.
(e) FINAL STANDARDS AND DESIGNATIONS.-- Within 60 days after the date
of receipt of the report required under subsection (d) of this section,
the the Secretary, with the cooperation and assistance of the Office,
shall, after giving due consideration to such report, prepare and
publish--,
(1) the final standards for classification of main and branch
rail lines; and
(2) the final designations with respect to each main and branch
rail line, in accordance with such standards for classification,
including findings to support any material change which is made in
a final designation from the corresponding preliminary
designation.
sec. 504. // 45 USC 824. // DEFERRED MAINTENANCE STATEMENT.-- Within
180 days after the dae of enactment of this Act, each railroad
designated by the Commission as a class I railroad (other than a
railroad subject to reorganization pursuant to the Regional Rail
Reorganization Act of 173) // 45 USC 701 // shall prepare and submit to
the Secretary a full and complete statement (1) of such railroad's
deferred maintenance and delayed capital expenditures, as of December
31, 1975, and (2) of the amounts of appropriate maintenance to
beperformed and capital expenditures to be made for such railroad's
facilities, during each of the years from 1976 through 1985. Each
railroad shall submit such additional information as may be required
from it by the Secretary, in connection with his duties under section
503 of this title or under this section, prior to July 1, 1977,
including, the projected sources of and uses for the funds required by
such railroad for such projected program.
(b) PRELIMINARY FINANCING RECOMMENDATIONS.-- Within 360 days after
the date of enactment of this Act, the Secretary, after giving due
consideration to (1) the final designations under section 503(e) of this
title, (2) the information furnished under subsection (a) of this
section, and (3) any other relevant information, shall develop, publish,
and transmit--,
(A) to the Congress, preliminary recommendations as to the
amount and type of carrier equity and other financing to be
effected through the Fund, or through any other funding mechanism,
recommended by the Secretary, based upon his view of the rail
industry's facilities rehabilitation and improvement needs, as
projected through December 31, 1985; and
(B) to the Congress and to the Secretary of the Treasury,
preliminary recommendations as to the means by which the Federal
share, if any, of such equity and other financing should be
provided.
In preparing such recommendations, the Secretary shall specifically
consider and evaluate the public benefits and costs which would result
from public ownership of railroad rights-of-way.
(c) EVALUATION.-- Within 90 days after the date of publication of the
Secretary's preliminary recommendations under subsection (b) of this
section, the Secretary of the Treasury shall publish and transmit to the
Secretary and to the Congress his evaluation thereof and any
recommendations with respect to the matters referred to in subsection
(b) (3) (B) of this section.
(d) FINAL RECOMMENDATIONS.-- Within 90 days after the date of receipt
of the evaluation, transmitted under subsection (c) of this section, the
Secretary shall, after giving due consideration to such recommendations,
prepare and transmit to the Congress his final recommendations with
respect to the matters referred to in subsection (b) of this section.
Sec. 505. (a) TIMING.-- Any railroad may apply to the Secretary
following the date of enactment of this Act, // 45 USC 825. // in
accordance with regulations promulgated by the Secretary--,
(1) for such financial assistance as may be approved by the
Secretary; and
(2) for financial assistance for facilities rehabilitation and
improvement financing, execpt that the Secretary shall not act
finally on any such application until the date of publication of
the final standards and designations under section 503(e) of this
title.
(b) APPLICATION AND DETERMINATION.--(1) Each application for
(A) a description of the proposed facilities rehabilitation and
improvement project for which such railroad is seeking financial
assistance and of the current physical condition of such
facilities;
(B) the classification of each main and branch rail line
included in such project, as determined in accordance with the
final standards and designations under section 503(e) of this
title;
(C) the track standard under which each such line has been and
is being operated and the reasons therefor, and the safety
standards and signal requirements necessary under such standard to
prevent loss of life and serious accident or injury at grade
crossings;
(D) the track standard necessary, in the judgment of such
railroad, to provide reliable and competitive freight service (and
passenger service, where applicable) over each such line, together
with such railroad's recommendations as to (i) the most economical
method of improving the physical condition of each such line to
meet such track standard, (ii) the cost of providing adequate
safety standards and signals, and (iii) an economic analysis of
the cost of such improvements in condition and in safety standards
and signals;
(E) such railroad's estimate as to the cost of labor and
materials, and the date of completion, and its opinion as to the
priority to be accorded such portions of the proposed project as
are reasonably divisible;
(F) the amount and kind of Federal financial assistance
required by such railroad in order to complete the proposed
project; and
(G) such other information as the Secretary shall by regulation
require to assist him in evaluating such application in accordance
with this section or for carrying out the purposes of this title.
(2) The Secretary shall act upon each such application within 6
months after the date on which all required information is received,
except as otherwise provided in subsection (a) (2) of this section. The
Secretary may approve any such application if he determines that
providing the requested financial assistance is in the public interest.
When making such a determination, the Secretary shall consider (A) the
availability of funds from other sources at a cost which is reasonable
under principles of prudent railroad financial management in light of
the railroad's projected rate of return for the project to be financed,
(B) the interest of the public in supplementing such other funds as may
be available in order to increase the total amount of funds available
for railroad financing, and (C) the public benefits to be realized from
the project to be financed in relation to the public costs of such
financing and whether the proposed project will return public benefits
sufficient to justify such public costs. The Secretary, in granting
financial assistance to any applicant, shall assign the highest
priority, among applications for assistance which would return equal
public benefits to applications for assistance for providing safety
improvements and signals, including underpasses or overpasses at
railroad rossings at which injury or loss of life has frequently
occurred or is likely to occur.
(c) FINANCING AGREEMENT.-- Upon the approval of an application for
financial assistance under this section, the Secretary shall promplty
enter into an agreement with such railroad to provide financing in such
amounts and at such times as is sufficient, in the judgement of the
Secretary, to meet the reasonable cost, in whole or in part, of the
facilities rehabilitation and improvement project which has been
approved, in whole or in part. Each such agreement shall include such
terms and conditions as are necessary or appropriate, in the judgment of
the Secretary, to assure that the financing will be used only in the
manner, and for the purposes, approved by the Secretary.
(d) AUTHORIZATION.--(1) In the case of a railroad other than a
railroad in reorganization under section 77 of the Bankruptcy Act, // 11
USC 205 // financing pursuant to this section shall be in the form of
purchase by the Secretary of redeemable preference shares at par. Such
shares shall be specifically issued for such purpose in accordance with
the terms and conditions set forth in section 506 of this title.
(2)(A) In the case of a railroad in reorganization under section 77
of the Bankruptcy Act, the Secretary, in order to provide financing
pursuant to this section, may agree to purchase redeemable preference
shares of such railroad at par as part of a plan of reorganization ofl
such railroad approved by the court having jurisdiction over the
reorganization of such railroad. Such shares shall be specifically
issued in accordance with the terms and conditions set forth in section
506 of this title.
(B) The Secretary, in order to provide financing pursuant to this
section, may also purchase certificates issued under section 77(c)(3) of
the Bankruptcy Act by a trustee of a railroad in reorganization and
approved by the reorganization court, under such terms and conditions as
may be approved by the Secretary and the reorganization court. In
purchasing such trustee certificates or at any time thereafter, the
Secretary may agree with the trustee of such railroad in reorganization,
subject to the approval of the reorganization court, to exchange such
certificates for redeemable preference shares issued, in accordance with
the terms and conditions set forth in section 506 of this title, in
connection with a plan of reorganization approved by the reorganization
court. No certificate shall be purchased under this section unless and
until the Secretary makes a finding in writing that--,
(i) such certificates cannot otherwise be sold at a reasonable
rate of interest;
(ii) the project to be financed can reasonably be expected to
be maintained as part of a financially self-sustaining railroad
system; and
(iii) the probable value of the assets of the railroad in the
event of liquidation provides reasonable protection to the United
States.
(3) The total par value of the redeemable preference shares and the
amount of trustee certificates which the Secretary may purchase from the
proceeds received from the issuance and sale of Fund anticipation notes
shall not exceed $600,000,000. Not more than $100,000,000 of such
proceeds may be used to purchase trustee certificates.
(e) FUTURE PURCHASES OF REDEEMABLE PREFERENCE SHARES.-- The total par
value of the redeemable preference shares which the Secretary may
purchase under this title after September 30, 1978, shall be determined
by the Congress following the receipt by the Congress of the Secretary's
recommendations as to the scope and sources of funding of the Fund or
any recommended alternative financing mechanis, as submitted pursuant to
section 504 of this title, except that--,
(1) the amount of the Secreary's investment in redeemable
preference shares in any fiscal year (out of proceeds other than
those derived through the issuance and sale of Fund anticipation
notes) shall not, when added to the amount of his prior investment
in such shares, exceed 200 percent of the aggregate principal
amount of the Fund bonds which (A) have been issued by the
Secretary prior to such fiscal year, and (B) are projected to be
issued by the Secretary through the end of such fiscal year; and
(2) neither redemptions of Fund bonds nor their payment at
scheduled maturity shall have any bearing on the limitation in
paragraph (1) of this subsection
Sec. 506. // 45 USC 826 // (a) CHARACTERISTICS.-- The redeemable
preference shares acquired by the Secretary pursuant to section 505(d)
of this title are securities which are issued by a railroad for the
purpose of obtaining financing under this title. Each such redeemable
preference share--,
(1) shall be nonvoting and shall have a par value of $10,000;
(2) shall be senior in right (i) to all common stock of the
issuing railroad, whenever issued, (ii) to any previously issued
preferred stock where such seniority does not mitigate any rights
of the holders of such stock accorded by the terms and conditions
of such stock, and (ii) to any subsequently issued preferred
stock, with respect to dividend and redemption payments and in
case of liquidation or dissolution of such railroad, but shall be
otherwise subordinate in such matters to any of such railroad's
previously issued and outstanding securites which rank ahead of
its common stock and shall be subordinate to all securities other
than common stock received in exchange as a part of a court
approved reorganization plan under section 77 of the Bankruptcy
Act (11 U.S.C. 205) approved after the date of enactment of this
sentence for previously incurred senior debt or previously issued
and outstanding securities which ranked ahead of its common stock;
(3) shall accrue dividends, commencing on the 10th anniversary
date of the date of its original issuance, at such rate as shall
be fixed by the Secretary for each issuance prior to the issuance
thereof and which when added to the amount of the mandatory
redemption payments under subparagraph (4) of this paragraph,
shall return to the Fund not less than 150 percent of the
aggregate par value thereof, over the scheduled life of the issue
and in annual payments which shall be as neraly equal as
practicable; and
(4) shall be subject to mandatory redemption, at par,
commencing not earlier than the 6th and not later than the 11th
(as determined by the Secretary for each issuance) anniversary
date of the date of its original issuance, in annual amounts which
shall, over the period ending (as determined by the Secretary for
each issuance) not later than the 30th anniversary date of the
date of its original issuance, aggregate the total par value of
such share.
(b) DEPOSIT.-- All redeemable preference shares which are acquired by
the Secretary pursuant ot section 505(d) of this title shall, upon such
acquisition, be deposited in the Fund.
(c) OVERDUE PAYMENTS.-- Whenever any dividend or redemption payment
which is due on redeemable preference shares issued by any railroad
remains unpaid for a period of 4 months, the Secretary shall be entitled
to appoint two members to the Board of Directors of such railroad. The
term of office of such members shall not extend beyond the period during
which such dividend or redemption payments remains unpaid.
Sec. 507. // 45 USC 827 // (a) GENERAL.-- The Secretary shall, until
September 30, 1978, issue and sell, and the Secretary of the Treasury
until such date shall, to the extent of appropriated funds, purchase
Funds, purchase Fund anticipation notes in an aggregate principal amount
of not more than $600,000,000, in order to provide financial assistance
to railroads for such financing needs as the Secretary approves.
(b) TERMS OF ISSUE.-- Fund anticipation notes shall be issued in
denominations of $100,000 (or any integral multiple thereof), upon such
terms and conditions, with such maturities, such rates of interest, if
any, and such redemption premiums, if any, as the Secretary in his sole
discretion may determine. The date of maturity of each Fund
anticipation note may not exceed 7 years from the date of its issuance.
(c) REDEMPTION.-- If the Congress, following its receipt of the
recommendations of the Secretary pursuant to section 504(d) of this
title (with respect to the amount of facilities rehabilitation and
improvement financing which should be effected through the Fund and the
method of long-term public sector funding therefor) authorizes the
issuance of Fund bonds, the Secretary shall redeem the Fund anticipation
notes then outstanding, in such manner, and over such period of time, as
the Secretary shall determine, from the proceeds of the sale of such
Fund bonds and from such other public sector moneys as have been
appropriated to the Fund.
(d) REMITTANCE AND TERMINATION.-- If the Ocngress does not, on or
before September 30, 1978, enact legislation of the type referred to in
subsection (c) of this section, the Secretary shall hold in trust all
redeemable preference shares issued by railroads which are held in the
Fund, and the Fund shall thereupon terminate.
Sec. 508. // 45 USC 828 // (a) ISSUANCE.-- The Secretary may,
following enactment of the legislation referred to in section 507(c) of
this title, issue Fund bonds in denominations of $100,000 (or any
integral multiple thereof), in such total amounts as may be authorized
by the Congress. No Fund bonds--,
(1) shall be issued which mature in less than 8, or more than
15, years from the date of original issuance thereof;
(2) shall be issued later than the 10th anniversary of the date
of publication of the final standards and designations under
section 503(e) of this title; and
(3) shall, except as otherwise provided pursuant to subsections
(d)(6) and (g) of this section, be subject to redemption (at the
option of the Secretary) (A) at any time prior to the 10th
anniversary of the date of original issuance thereof, and (B) at
any time thereafter.
(b) PLEDGE AND LIEN.-- The Secretary, subject to sections 502(g) and
508(g) of this title, shall impose a first pledge of, and a first lien
on, all revenues payable to, and assets held in, the Fund, and
appropriated for the use of the Secretary pursuant to this title. The
Secretary may impose such a pledge of and lien on all other revenuse or
property of the Fund. The purpose of any such pledge and lien shall be
to secure the payment, when due, of the principal of, any redemption
premiums on, and any interest on, all Fund anticipation notes and Fund
bonds, and for other purposes incidental thereto. Such incidental
purposes may include the creation of reserve and other funds which may
be similarly pledged and used, to such extend and in such manner as the
Secretary deems necessary or desirable. Any pledge made by the
Secretary shall be valid and binding from the time it is made. The
revenuse and assets held in the Fund, and the revenuses or property of
the Fund which are so pledged and which are subsequently received by the
Fund, shall immediately be subject to the lien of such pledge without
any physical delivery thereof or any further act. The lien of any such
pledge shall be valid and binding as against all parties having claims
of any kind, in tort, contract, or otherwise, against the Secretary or
the Fund, without regard to whether such parties have notice thereof.
No instrument by which a pledge is created need be recorded or filed to
protect such pledge.
(c) ENHANCMENT OF MARKETABILITY.-- The Secretary may enter into
binding covenants with the holders of Fund bonds, and with the trustee,
if any, under any agreement entered into in connection with the
issueance of such bonds with respect to (1) the establishment of
reserves, and other funds; (2) stipulations concerning the subsequent
issuance of obligations; and (3) such other matters as the Secretary
deems necessary or desirable to enhance the marketability of Fund bonds.
(d) SPECIFIC DETERMINATIONS.-- Subject to subsection (a) of this
section, the Secretary may determine, with respect to Fund bonds--,
(1) the form and denominations in which they shall be issued;
(2) the time when they shall be sold and in what amounts;
(3) the time when they shall mature;
(4) the price thereof at sale;
(5) the rate of interest thereon;
(6) whether, and in what manner, they may be redeemed prior to
the date when they maure; and
(7)whether they shall be negotiable or nonnegotiable and
whether they shall be bearer or registered instruments, and any
indentures or covenants relating thereto.
(e) CHARACTERISTICS.-- Fund bonds issued by the Secretary under this
section shall--,
(1) contain a recital that they are issued under this section,
which shall be conclusive evidence as to the validity and
regularity of issuance and sale of such Fund bonds;
(2) be subject to such other terms and conditions as the
Secretary may, by the resolution authorizing their issuance,
determine;
(3) be lawful investments and may be accepted as security for
all fiducialry, trust, and public funds, the investment or deposit
of which shall be under the authority or control or any officer
agency of the United States;
(4) not be exempted from Federal, State, and local taxation;
and
(5) not be debts or enforceable general obligations of, nor
shall payment of the principal thereof or interest thereon be
guaranteed by, the United States. Neither the full faith and
credit, nor the general taxing power, of the Federal Government
shall be pledged to the payment of the principal of, any premium
on, or interest on, such Fund bonds.
(f) No PERSONAL LIABILITY.-- Neither the Secretary, nor any other
individual, who executes any Fund anticipation notes or Fund bonds,
shall be subject to any personal liability or accountability by reason
of the issuance of any such notes or bonds.
(g) REDEMPTION AND TRANSFER.-- If , after the 10th anniversary date
of the original issuance of the initial series of Fund bonds, the amount
in the Fund, exclusive of the value of any redeemable preference sahres
held by the Fund, exceeds 250 percent of the amount required to satisfy
amounts due in the succeeding fiscal year on account of Fund bonds, the
Secretary may use such excess to redeem Fund bonds in accordance with
their terms or may withdraw all or part of such excess from the Fund and
transfer it to the general fund of the United States. When all Fund
bonds have been redeemed, all amounts remaining in the Fund or
thereafter accruing to it shall be transferred to the general fund of
the United States, except to the extent necessary to cover such expenses
of the Fund as may be required to carry on and complete any remaining
responsibilities.
(h) PURCHASE BY SECRETARY.-- The Secretary, subject to such
agreements with holders of Fund bonds as may then exist, is authorized
(out of any funds available) to purchase Fund anticipation notes of Fund
bonds. Upon any such purchase, such bonds and notes shall be canceled.
Sec. 509. // 45 USC 829 // There is authorized to be appropriated to
the Secretary of the Treasury for the purposes of the Fund not to exceed
$600,000,000 and the Secretary of the Treasury is authorized and
directed to purchases, from time to time, prior to September 30, 1978,
from the Secretary, out of such moneys in the Treasury as are
appropriated under this sentence, Fund anticipation notes in such
aggregate principal amounts, subject to the foregoing limitation, as the
Secretary may so offer for sale. No money in the Fund, gegardless of
source, shall be obligated, expended, or otherwise committed to any
purpose from the Fund prior to or after September 30, 1978, without
prior approval thereof in an annual appropriations Act. The Fund shall
not qualify as one of the exceptions provided in section 401(d) of the
Congressional Budget and Impoundment Control Act of 1974 (31 U.S.C.
1351(d)).
Sec. 510. // 45 USC 830. // Neither the provisions of section 20a of
the Interstate Commerce Act (49 U.S.C. 20a), nor the registration and
prospectus delivery requirements of the Securities Act of 1933, nor the
provisions of the securities laws of any States, shall be applicable to
the issuance and sale of redeemable prrference shares by railroads under
this title.
Sec. 511. // 45 USC 831 // (a) GENERAL.-- The Secretary may, in
accordance with the provisions of this section, guarantee and make
commitments to guarantee the payment of the principal balance of, and
any interest on, an obligation of an applicant prior to, on, or after
the date of execution or the date of disbursement of such obligation, if
the proceeds of such obligation shall be or have been used to acquire or
to rehabilitate and improve facilites or equipment. Each guarantee of
such an obligation shall be made in accordance with the provisions of
sections 511 through 513 of this title and such rules as the Secretary
may prescribe to protect reasonably the interest of the United States.
Each application for the guarantee of such an obligation or for a
commitment to guarantee such an obligation shall be made in writing to
the Secretary in such form and with such content as the Secretary
prescribes. Such application shall be granted, in whole or in part, if
the Secretary determines that the proposed, negotiated, or executed
obligation is eligible for such guarantee. Each such guarantee or
commitment to guarantee shall be extended in such form under such terms
and conditions, and pursuant to such regulations as the Secretary deems
appropriate, consistent with the purposes of this title. Such a
guarantee or commitment to guarantee shall inure to the benefit of the
holder of the obligation to which such guarantee or commitment to
guarantee applies.
(b) FUND.-- An obligation guarantee fund shall be established and
administered by the Secretary as a revolving fund to carry out the
provisions of sections 511 through 513 of this title. Moneys in the
obligation guarantee fund shall be deposited in the Treasury of the
United States to the credit of such fund or invested in bonds or other
obligations of the United States approved by the Secretary of the
Treasury.
(c) VALUATION.-- Before granting any application for a guarantee or a
commitment to guarantee any obligation, the Secretary shall make a
determination of the value of the facilites or equipment which are or
will be financed or refinanced by such obligation. Such determination
of value shall be conclusive and not subject to review in any court. of
any provision of a guarantee, or of a commitment to guarantee an
obligation, including the rate of interest, time of payment of interest
or principal, security, or any other terms and conditions, if the
Secretary makes a finding in writing that such modification is equitable
and is in the overall best interests of the United States under this
title, and that the holder of such obligation consents to such
modification.
(e) EXTENT OF AUTHORITY.--(1) The aggregate unpaid principal amounts
of obligations which may be guaranteed by the Secretary under this
section shall not exceed $1,000,000,000 at any one time, of which not to
exceed $150,000,000 may be guaranteed for the purposes described in
paragraph (2) of this subsection.
(2) Obligations may be guaranteed for the purpose of improving rail
properties designated in the final system plan pursuant to section 206(
c)(1)(C) of the Regional Rail Reorganization Act of 1973 (45 U.S.C.
716(c)(1)(C), if the proceeds of such obligations shall be or have been
used to acquire or rehabilitate and improve facilities or equipment in a
manner that returns the most public benefits for the costs involved.
(f) RATE OF INTEREST.-- The rate of interest (exclusive of premium
charges for a guarantee and service fees) which shall be paid on the
unpaid principal balance of each obligation guaranteed by the Secretary
under this section, shall not exceed an annual percentage rate which the
Secretary determines to be reasonable, taking into consideration the
prevailing interest rates for similar obligations in the private market.
(g) NOTICE.-- Upon receipt of an application for the guarantee of an
obligation under this section, the Secretary shall cause a notice of
such application to be published in the Federal Register and shall
invite and afford interested persons an opportunity to submit comments
on such application.
(h) Prequisites for Guarantees.--No obligation shall be guaranteed
and no commitment shall be made to guarantee any obligation under this
section, unless and until the Secretary makes a finding in writing
that--,
(1) an obligation for equipment acquisition, rehabilitation, o
or improvement is secured by the particular equipment which is to
be financed or refinanced by such obligation;
(2) payment of the obligation is required by its terms to be
made within 25 years from the date of its execution;
(3) the financing or refinancing is justified by the present
and probable future demand for rail services to be rendered by the
applicant and will serve to meet demonstrable needs for rail
services and to provide shippers with improved service;
(4) the applicant has given reasonable assurances that the
facilities or equipment to be acquired, rehabilitated, or improved
with the proceeds of the obligation will be economically and
efficiently utilized;
(5) the probable value of any equipment or facilities to be
improved, rehabilitated, or acquired is sufficient to provide the
United States with reasonable security and protection in the event
of default by the obligor, in the case of repossession by the
holder of the obligation or in the case of possession or purchase
by the Secretary; and
(6) the transaction will result in an improvement in the
ability of any affected railroad to transport passengers or
freight.
(i) GENERAL REQUIREMENT.-- The recipients of any guarantees of, or of
any commitments to guarantee, an obligation under this section, shall,
consistent with their capital resources, maintain their facilities, on a
continuing basis, in accordance with standards promulgated under this
subsection. The Secretary shall assure compliance with this requirement
by regular periodic inspection.
(j) CONDITIONS OF GUARANTEES.-- No guarantee of, and no commitment to
guarantee, an obligation may be granted, approved, or extended under
this section, unless the obligor first agrees in writing that so long as
any principal or interest is due and payable on such obligation--,
(1) there will be no increase in discretionary dividend
payments over the average ratio which such payments bore to
earnings for the applicable fiscal period during the 5 years
preceding such proposed increase, without prior approval of such
increase by the Secretary;
(2) the obligor will not use assets or revenues (other than
cash) related to or derived from railroad operations in
nonrailroad enterprises, without prior approval in writing from
the Secretary; and
(3) the obligor will take all reasonable and practicable steps
possible, in accordance with such guidelines as may be established
by the Secretary, to improve the equitable distribution and
efficient and expeditious use of all equipment and facilities in
order to improve rail service.
Approval under paragraph (1) or (2) of this subsection mat only be
granted if, after a public hearing with an opportunity for interested
persons to submit comments, the Secretary makes a written finding that
such increase in dividends (or such use of assets or revenues) will not
materially affect the ability of the obligor to comply with the
requirements of this section.
(k) Breach of Conditions.--The Attorney General shall commence a
civil action in any appropriate district court of the United States to
enjoin any activity which the Secretary finds is in violation of any
requirement or condition specified in subsection (i) or (j) of this
section, and to secure any other appropriate relief, including
termination, suspension, and punitive damages.
(i) INVESTIGATION CHARGE.-- The Secretary shall charge and collect
from each applicant such amounts as he deems reasonable for the
investigation of any application submitted under this section, for
appraisal of the value of the equipment or facilities involved, and for
making the necessary determinations and findings. Such charges shall
not aggregate more than one-half of 1 percent of the principal amount of
the obligation with respect to which the applicant seeks a guarantee or
commitment to guarantee.
(m) PREMIUM CHARGE.-- The Secretary shall assess and collect from the
obligor an annual premium charge on each obligation guaranteed under
this section. The amount of such premium may not exceed an annual rate
of 1 percent on the unpaid principal balance of such obligation at the
time payment is due. Payment is due initially when the obligation is
guaranteed by the Secretary, and, thereafter, on the anniversary date of
such guarantee.
(n) ADMINISTRATIVE COSTS.-- All moneys received by the Secretary
under this section shall be deposited in the obligation guarantee fund,
and to the extent provided in appropriation acts, may be used by the
Secretary to pay administrative costs and expenses incurred by him
pursuant to this section.
Sec. 512. // 45 USC 832 // (a) AUTHORIZATION.-- The Secretary may
issue, in such amounts as are provided in appropriation acts, notes or
other obligations to the Secretary of the Treasury, in such forms and
denominations, bearing such maturities, and subject to such terms and
conditions as the Secretary may prescribe. Such obligations may be
issued whenever the moneys in the obligation guarantee fund are not
sufficient to pay any amount which the Secretary is required to pay
under secion 513 of this title. Such obligations shall bear interest at
a rate to be determined by the Secretary of the Treasury on the basis of
the current average market yield on outstanding marketable obligations
of the United States on comparable maturities during the month preceding
the issuance of such obligations. The Secretary of the Treasury shall
purchase any such obligations, and for such purpose he may use as a
public debt transaction the proceeds from the sale of any securities
issued under the Second Liberty Bond Act, // 31 USC 774 // as now or
hereafter in force. The purposes for which securities may be issued
under such Act are extended to include any purchase of notes or other
obligations issued under this subsection. The Secretary of the Treasury
may sell any such obligations at such times and price and upon such
terms and conditions as he shall determine in his discretion. All
purchases, redemptions, and sales of such obligations by such Secretary
shall be treated as public debt transactions of the United States.
Moneys obtained under this subsection shall be deposited in the
obligation guarantee fund, and redemptions of any such obligations shall
be made by the Secretary from such fund.
(b) VALIDITY.-- No guarantee or commitment to guarantee under section
511 of this title may be terminated, suspended, canceled, or otherwise
revoked, except in accordance with lawful terms and conditions
prescribed by the Secretary. Such a guarantee or commitment shall be
conclusive evidence that the underlying obligation is in compliance with
the provisions of such sections of this title, and that such obligation
has been approved and is legal as to principal, interest, and other
terms. Such a guarantee or commitment to guarantee shall be vaild and
incontestable in the hands of the holder thereof, as of the date when
the Secretary granted the application therefor, except as to fraud or
material misrepresentation by such holder.
(c) DEFINITION.-- As used in this section, the term " Secretary of
the Treasury" includes any designated representative of such Secretary.
Sec. 513. // 45 USC 833 // (a) GENERAL.-- If there is a default by
the obligor in any payment of principal or interest due under an
obligation guaranteed under section 511 of this title, and if such
default continues for 30 days, the holder of such obligation or his
agent has the right to demand payment by the Secretary of the unpaid
interest on, and the unpaid principal of, such obligation consistent
with the terms of the guarantee of such obligation. Such payment may be
demanded after or before the expiration of such period as may be
specified in the guarantee or related agreements, but not later than 90
days from the date of such default. Within such specified period, but
not later than 60 days from the date of such demand, the Secretary shall
pay to such holder the unpaid interest on, and the unpaid principal of,
such obligation, consistent with the terms of the guarantee of such
obligation, except that (1) the Secretary shall not be required to make
any such payment if he finds, prior to the expiration of such period,
that there was no default by the obligor in the payment of interest or
principal ot that such default has been remedied, and (2) no such holder
shall receive payment or be entitled to retain payment in a total amount
which, together with an other recovery (including any recovery based
upon a security interest in equipment or facilities) exceeds the actual
loss of such holder.
(b) RIGHTS OF THE SECRETARY.--(1) If the Secretary makes payment to a
holder under subsection (a) of this section, the Secretary shall
thereupon--,
(A) have all of the rights granted to him by law or agreement
with the obligor; and
(B) be subrogated to all of the rights which were granted such
holder and the obligor.
(2) The Secretary may, in his discretion, complete, recondition
reconstruct, renovate, repair, maintain, operate, charter, rent, sell,
or oterwise dispose of any property or other interests obtained by him
pursuant to this section. The terms of any such sale or other
disposition shall be as approved by the Secretary.
(c) FROM OF PAYMENT.-- Any amount required to be paid by the
Secretary pursuant to subsection (a) of this section shall be paid in
cash.
(d) ACTION AGAINST OBLIGOR.-- If there is a default by the obligor in
any payment due under an obligation guaranteed under section 511 of this
title, the Secretary shall take such action against such obligor or any
other person as is, in his discretion, necessary or appropriate to
protect the interests of the United States. Such an action may be
brought in the name of the United States or in the name of the holder of
such obligation. Such holder shall make available to the Secretary all
records and evidence necessary to prosecute any such suit. The
Secretary may, in his discretion, accept a conveyance of property in
full or partial satisfaction of any sums owed to him. If the Secretary
receives, through the sale of property, an amount greater than his cost
and the amount paid to the holder under subsection (a) of this section,
he shall pay such excess to the obligor.
Sec. 514. // 45 USC 834. // (a) GENERAL.-- The Comptoller General of
the United States is authorized to audit the operations of the Fund and
of the obligation guarantee fund in accordance with such rules and
regulations as he may prescribe. Any such audit shall be conducted at
the place or places where accounts of the Fund or of the obligation
guarantee fund are normally kept. The representatives of the
Comptroller General shall have access to all books, accounts, records,
reports, files, and other papers, things or property belonging to, or in
use by or in connection with the Fund, the obligation guarantee fund, or
the Secretary which pertain to the financial transactions of the Fund or
the obligation guarantee fund and which are necessary to facilitate an
audit. Such representatives shall be afforded full facilities for
verifying transactions with the balances or securities held by
depositoies, fiscal agents, and custodians. All such books, accounts,
records, reports, files, papers, things, and property shall remain in
the possession and custody of the Fund, the obligation guarantee fund,
or the Secretary, as the case may be.
(d) ACCESS TO INFORMATION.-- The representatives of the Comptroller
General shall have access to all books, accounts, records, reports,
files, and other papers, things, or property belonging to or in use by
any person or entity which has entered into a financial transaction with
or involving the Fund, the obligation guarantee fund, or the Secretary,
under this title, to the extent deemed necessary by the Comptroller
General to facilitate any audit of financial transactionsl pursuant to
subsection (a) of this section. Such representatives shall be afforded
full facilities for verifying transactions with the balances or
securities held by depositories, fiscal agents, and custodians. All
such property of such person or entity shall, to the extent practicable,
remain in the possession and custody of such person or entity.
(c) REPORT.-- The Comptroller General shall make a report of each
such audit to the Congress. Such report shall contain all comments and
information which the Comptroller General deems necessary to inform
Congress of the financial operations and condition of the Fund and of
the obligation guarantee fund and any recommendations which he deems
advisable. Such report shall indicate specifically and describe in
detail any program, expenditure, or other financial transaction or
undertaking observed in the course of such audit which the Comptroller
General deems to have been carried on or made without lawful authority
or which is inconsistent with the purposes and provisions of this title.
A copy of such report shall be furnished to the President, the
Secretary, and the Commission, at the time it is submitted to the
Congress.
Sec. 515. // 45 USC 835 // The Secretary shall report to the Congress
within 90 days following the end of each fiscal year on the financial
condition and operations of the Fund and of the obligation guarantee
fund during such fiscal year, and on the anticipated condition and
operations of the Fund and of the obligation guarantee fund during the
current fiscal year.
Sec. 516. // 45 USC 836 // (a) GENERAL.-- Fair and equitable
arrangements shall be provided, in accordance with this section, to
protect the interests of any employees not otherwise protected under
title V of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 771
et seq.), who may be affected by actions taken pursuant to
authorizations or approval obtained under this title. Such arrangements
shall be determined by the execution of an agreement between the
representatives of the railroads and the representatives of their
employees, within 120 days after the date of enactment of this title.
In the absence of such an executed agreement, the Secretary of Labor
shall prescribe the applicable protective arrangements, within 150 days
after the date of enactment of this title.
(b) TERMS.-- The arrangements required by subsection (a) of this
section shall apply to each employee who has an employment relationship
with a railroad on the date on which such railroad first applies for
applicable financial assistance under this title. Such arrangements
shall include such provisions as may be necessary for the negotiation
and execution of agreements as to the manner in which the protective
arrangements shall be applied, including notice requirements. Such
agreements shall be executed pror to implementation of work funded from
financial assistance under this title. If such an agreement is not
reached within 30 days after the date on which an application for such
assistance is approved, either party to the dispute may submit the issue
for final and binding arbitration. The decision on any such arbitration
shall be rendered within 30 days after such submission. afforded in the
protective arrangements established pursuant to this section, shall be
final and binding on the parties thereto, and shall become a part of the
agreeement. Such arrangements shall also include such provisons as may
be necessary--,
(1) for the preservation of compensation (including subsequent
general wage increases, vacation allowances, and monthly
compensation guarantees), rights, privileges, and benefits
(including fringe benefits such as pensions, hospitalization, and
vacations, under the same conditions and so long as such benefits
continue to be accorded to other employees of the employing
railroad in active service or on furlough, as the case may be) to
such employees under existing collective-bargaining agreements or
otherwise;
(2) to provide for final and binding arbitation of any dispute
which cannot be settled by the parties, with respect to the
interpretation, application, or enforcement of the provisions of
the protective arrangements;
(3) to provide that an employee who is unable to secure
employement by the exercise of his or her seniority rights, as a
result of actions taken with financial assistance obtained under
this title, shall be offered reassignement and, where necessary,
retraining to fill a position comparable to the position held at
the time of such adverse effect and for which he is, or by
tranining and retraining can become, physicallya and mentally
qualified, so long as such offer is not in contravention of
collective bargaining agreements relating thereto; and
(4) to provide that the protection afforded pursuant to this
section shall not be applicable to employees benefited solely
result of the work which is financed by funds provided pursuant of
this title.
(c) SUBCONTRACTING.-- The arrangements which are required to be
negotiated by the parties or prescribed by the Secretary of Labor,
pursuant to subsections (a) and (b) of this section, shall include
provisions regulating subcontracting by the railroads of work which is
financed by funds provided pursuant to this title.
Sec. 517. // 45 USC 837 // The Secretary is authorized, pursuant to
the provisions of, and within the authorizations contained in, this
title, to provide financial assistance, in the aggregate sum of up to
$200,000,000, to any railroad or railroads for the purpose of improving
intercity rail passenger service on any lines of such railroad or
railroads which are located outside of the Northeast Corridor (as
defined in section 701 (c) of this Act).
Sec. 601. (a) Unless otherwise specified, wheneever, in this title,
an amendment or repeal is expressed in terms of an amendment to, or a
repeal of, a section or provison of "such Act", the section or other
provision amended or repealed is a section of the Regional Rail
Reorganization Act of 1973 (45 U.S.C. 701 et seq.).
(b) The table of contents of such Act is amended to read as follows:
" Sec. 101. Declaration of policy. " Sec. 102. Definitions.
" Sec. 201. Formation and structure. " Sec. 202. General powers and
duties of the Association. " Sec. 203. Access to information. " Sec.
204. Report. " Sec. 205. Rail Services Planning Office. " Sec. 206.
Final system plan. " Sec. 207. Adoption of final system plan. " Sec.
208. Review by Congress. " Sec. 209. Judicial review. " Sec. 210.
obligations of the Association. " Sec. 211. Loans. " Sec. 212.
records, audit, and examination. " Sec. 213. Emergency assistance
pending implementation. " Sec. 214. Authorization for apprpriations. "
Sec. 215. Maintenance and improvement of plant. " Sec. 216. Purchase
of debentures and series A preferred stock.
" Sec. 301. Formation and structure. " Sec. 302. Powers and duties of
the Corporation. " Sec. 303. Valuation and conveyances of rail
properties. " Sec. 304. Termination and continuation of rail services.
" Sec. 305. Continuing reorganization; supplemental transactions. "
Sec. 306. Certificates of value. " Sec. 307. Protection of Federal
funds.
" Sec. 401. Findings and purposes. " Sec. 402. rail service
contrinuation assistance. " Sec. 403. Acquistion and modernization
loans.
" Sec. 501. Definitions. " Sec. 502. Employment offers. " Sec. 503.
Assignment of work. " Sec. 504. Collective-bargaining agreements. "
Sec. 505. employee protection. " Sec. 506. Contracting out. " Sec.
507. Arbitration. " Sec. 508. Duties of acquiring and selling
railroads. " Sec. 509. Payment of benefits.
" Sec. 601. Relationship to other laws. " Sec. 602. Annual evaluation
by the Secretary. " Sec. 603. Freight rates for recyclables. " Sec.
604. Separability. " Sec. 605. Duty of transferee.".
(c) Section 202(a)(2) of such Act (45 U.S.C. 712(a)(2)) is amended to
read as follows:
"(2) issue obligations under section 210 of this title: // 45
USC 720. 45 USC 721. // make loans under section 211 of this
title; purchase or otherwise acquire or receive and hold and
dispose of securities (whether debt or equity) of the Corporation
under section 216 of this title and exercise all of the rights,
privileges, and powers of a holder of any such securities; and
issue certificates of value under section 306 of this Act;".
(d) Section 303 of such Act (45 U.S.C. 743) is amended by adding at
the end thereof the following new subsection:
"(e) TRANSFER AND OTHER TAXES AND RECORDING Fees.--All transfers or
conveyances of rail properties (whether real, personal, or mixed) which
are made under this Act (including transfers and conveyances which are
made in accordance with a supplemental transaction pursuant to section
305 of this title) shall be exempt from any taxes, imposts, or levies
now or hereafter imposed, by the United States or by any State or any
political subdivision of a State, on or in connection with such
transfers or conveyances or on the recording of deeds, bills of sale,
liens, encumbrances, or other instruments evidencing effectuating, or
incident to any such transfers or conveyances, whehter miposed on the
transferor or on the transferee. Such transferors and transferees shall
be entitled to record any such deeds, bills of sale liens encumbrances,
or other instruments and consisten with the designations and applicable
principles in the final system plan, to record the release or removal of
any pre-existing liens or encumbrances of record with respect to
properties so transferred or conveyed, upon payment of any appropriate
and generally applicable charges to compensate for the cost of the
service performed.".
(e) Section 208 of such Act (45 U.S.C. 718) is amended by adding at
the end thereof the following new subsection:
"(d) ADDITIONS.--(1) The supplemental report, dated September 18,
1975, to the final system plan, and the provisions of the Association's
official errata supplement to the final system plan, dated December 1,
1975, including all designations made therein, shall be treated for all
purposes as if they had been part of and included in the final system
plan adopted by the Association and reviewed by the Congress. The final
system plan shall, for all purposes, be deemed to be approved as
modified and amended by such supplemental report and such supplement.
"(2) The Association may, upon petition of any State, modify the
final system plan to make further designations with respect to rail
properties of railroads in reorganization in the region designated for
transfer to the Corporation under such plan, if such designation (A) are
likely to result in improved rail service on such rail properties and
connecting rail properties, and (B) would not materially impair the
profitability of the Corporation. Such designations, including
designations of such rail properties to a State a profitable railroad,
or a responsible person, may be made at any time prior to delivery of
the final system plan to the special court under section 209(c) of this
title. Such further designations shall be treated for all purposes as if
they had been included in the final system plan adopted by the
Association and reviewed by the Congress, and the final system plan
shall for all purposes be deemed to be approved as modified by such
designations. Any action of the Association with respect to any such
petition shall not be subject to review by any court.
"(3)(A) Within 20 days after the date of enactment of the Railroad
Revitalization and Regulatory Reform Act of 1976, the Association may,
by notice to the Congress and by publication in the Federal Register,
modify, supplement, or add to the designations of rail properties in the
final system plan if the Association finds such actions are necessary
to--,
"(i) achieve the efficent implementation of the final system
plan, or
"(ii) provide for the offer to profitable railroads of rail
properties designated in the final system plan to the Corporation,
if such properties are not essential in the operation of other
rail properties of the Corporation but are or would be intergrally
related to the operation of rail properties of (or which are
officed purpsuant to the final system plan to) such profitable
railroad, or
"(iii) provide for the designation of additional rail
properties to the Corporation or to a subsidiary thereof to
designated to t the Corporation in the final system plan if such
line does not connect with any other line of railroad so
designated to the Corporation or if such line would be served more
efficiently as a consequence of such designation
Any designation to a profitable railroad pursuant to this paragraph
shall comply with the second sentence of section 206(d)(4) of this
title, and shall only be made upon a finding by the Association that
such designation is intergrally related to an offer of rail properties
to a profitable railroad in the final system plan, that the goals of the
final system plan require that the rail properties be operated as a part
of the rail properties included in such offer, and that the
implementation of such designation will not materially and adversely
affect the impact of such offer on the profitability of the Corporation
or any profitable railroad operating in the region. Any designation to
a profitable railroad pursuant to this subsection, which amends any
prior offer, shall terminater 30 days after the date of enactment of
this paragraph unless, prior to such date, such profitable railroad has
notified the Association in writing of its acceptance of such amendment
to the prior offer.
"(B) If a line of railroad or any segment thereof is designated for
rail service in the final system plan, no designation may be made by the
Association pursuant to this paragraph which would result in such line
or segment not being so designated. Any designations made pursuant to
this paragraph shall be treated for all purposes as if they had been
included in the final system plan adopted by the Association and
reviewed by the Congress. The final system plan shall for all purposes
be deemed to be approved as amended by such designations.
"(C) Any designations made pursuant to this paragraph shall not be
subject to review by any court.
"(D) Any labor agreements entered into under section 508 of this Act
shall be subject to further negotiations for any modifications which may
be necessary to implement designations made pursuant to this
paragraph.".
(f) Section 102(14) of such Act (45 U.S.C. 702(14)) is amended to
read as follows:
"(14) ' Secretary' means the Secretary of Transportation or the
person at the performing the duties of the Office of the Secretary
of Transportation in accordance with law, or the duly authorized
representative of either of therm;".
(g) Section 102 of such Act (45 U.S.C. 702) is amended (1) by
redesignating paragraphs (8) through (15) thereof as paragraphs (10)
through (17) thereof, respectfully; and (2) by inserting therein a new
paragraph (9) as follows:
"(9) 'local or regional transportation authority' includes a
political subdivision of a State.".
Sec. 602. (a) Section 209(b) of such Act (45 U.S.C. 719) is amended
by striking out the sixth sentence thereof and inserting in lieu thereof
the following new sentence: " The special court may issue rules for the
conduct of any proceedings under this section and under section 305 of
this Act, including rules with respect to the time within which motions
may be filed, and with respect to appropriate representation of
interests not otherwise represented (including the Secretary with
respect to a petition by the Association in the case of a proposal
developed by the Secretary, under such section 305).".
(b) Section 209 of such Act (45 U.S.C. 719) is amened by adding at
the end thereof the following three new subsections:
"(e) ORIGINAL AND EXCLUSIVE JURISDICTION.--(1) Notwithstanding any
other provision of law, any civil action--,
"(A) for injunctive or other relief against the Association
from the enforcement, operation, or execution of this Act or any
provision thereof, or from any action taken by the Association
pursuant to authority conferred or purportedly conferred under
this Act;
"(B) challenging the constitutionality of this Act or any
propvision thereof;
"(C) challenging the legality of any action of the Association,
or any failure of the Association to take any action, pursuant to
authority conferred or purportedly conferred under this Act;
"(D) to obtain, inspect, copy, or review any document in the
possession or control of the Association that would be
discoverable in litigation pursuant to section 303(c) of this Act;
"(E) brought after a conveyance, pursuant to section 303(b)
// 45 USC 743. //
of this Act, to set aside or annul such conveyance or to secure in
any way the reconveyance of any rail properties so conveyed; or
"(F) with respect to continuing reorganization and supplemental
transactions, in accordance with section 305 of this Act;
shall be within the original and exclusive jurisdiction of the special
court. The special court shall not hear or determine any such action
prior to the date of conveyance, pursuant to section 303(b)(1) of this
Act, except as the Constitution may require. Relief shall not be
granted in any action referred to in subparagraph (A), (C), or (E)
unless the person seeking such relief establishes that the Association
acted in reckless or deliberate disregard of applicable law.
"(2) The original and exclusive jurisdiction of the special court
shall include any action, whether filed by any interested person or
initiated by the special court itself, to interpret, alter, amend
modify, or implement any of the orders entered by such court pursuant to
section 303(b) of this Act in order to effect the purposes of this Act
or the goals of the final system plan. During the pendency of any
proceeding described in this paragraph, the special court may enter such
orders as it determines to be appropriate, including orders enjoining,
restraining, conditioning, or limiting any conveyance, transfer, or use
of any asset or right which is subject to such an order or which is at
issue in such a proceeding, or which involves the enforcement of any
liens or encumbrances upon such assets or rights. Any orders pursuant
to this paragraph which interpret, alter, amend, modify, or implement
orders entered by the special court shall be final and shall not be
restrained or enjoined by any court.
"(3) A final order or judgment of the special court in any action
referred to in this section shall be reviewable only upon petition for a
writ of certiorari to the Supreme Court of the United States, except
that any order or judgement enjoining the enforcement or declaring or
determining the unconstitutionality or invalidity, of this Act, in whole
or in part, or of any action taken under this Act, shall be reviewable
by direct appeal to the Supreme Court of the United States in the same
manner that an injunctive order may be appealed under section 1253 of
title 28, United States Code. Such review is exclusive and any petition
or appeal shall be filed not more than 20 days after entry of such order
or judgment.
"(f) DISPOSITION OF CASH DEPOSITS.-- Whenever the compenation which
is deposited with the special court under section 303(a) of this Act is
in the form of cash, such cash shall be invested and reinvested upon
such terms and conditiions as the special court shall determine, pending
the making of the findings referred to in paragraphs (1), (2), and (3)
of section 303(c) of this Act. Notwithstanding section 303(c)( 4) of
this Act, the special court may order (1) the income from such
investments, (2) the dividends or interest, if any, received on any
securities or obligations deposited with the special court under such
section 303(a), and (3) the income,if any, received with respect to any
orther form of compensation so deposited, to be distributed to the
trustee of each railroad in reorganization and to any person leased,
operated or controlled by such a railroad which conveyed the right,
title, and interest in the rail properties with respect to which such
cash, securities, obligations, or other compensation have been so
deposited with the special court. Notwithstanding section 303(b) of
this Act, the special court may, within 90 days after the date of
conveyance of rail properties pursuant to section 303(b) of this Act,
order up to 25 percent of any cash (including investments made with
cash) and other compensation deposited with the special court to be
distributed to such trustee or person. On petition of the applicable
trustee or person, the special court may order such additional
distributions as it finds reasonable and appropriate, prior to the
making of the findings referred to in paragraphs (1), (2), and (3) of
such section 303(c). // 45 USC 743. //
"(g) STAY OF COURT PROCEEDINGS.-- The special court may stay or
enjoin any action or proceeding in any State court or in any court of
the United States other than the Supreme Court if such action or
proceeding is contrary to any provision of this Act, impairs the
effective implementation of this Act, or interferes with the execution
of any order of the special court pursuant to this Act.".
Sec. 603. (a) Section 201 of such Act (45 U.S.C. 711) is amended by
redesignating subsections (i) and (j) thereof as subsections (j) and (k)
thereof, respectively, and by inserting therein a new subsection "(i)"
as follows:
"(i) FINANCE COMMITTEE.-- The Board of Directors of the Association
shall have a Finance Committee which shall consist of the Chairman of
such Board, the Secretary, and the Secretary of the Treasury (acting
directly or, at any time, through their respective duly authorized
representatives). The Finance Committee is authorized to exercise only
such powers as are vested in it pursuant to any provision of this Act.
The vesting of such powers in the Finance Committee shall not be deemed
to relieve the Board of Directors of its authority to exercise any other
powers of the Association, none of which may be delegated to the Finance
Committee, or of its general authority to study, analyze, and make
advisory findings with respect to any matter relevant to the role of the
Association as an investor in securities of the Corporation.
Notwithstanding any provision of State law, (1) the Finance Committee,
without any requirement of review or approval by the Board of Directors
of the Association, is authorized to establish, revise, and maintain its
own rules and procedures, by majority vote of the members thereof, and
(2) the Board of Directors of the Association shall not have power to
take, and shall not take, any action affecting the membership of the
Finance Committee or limiting the exercise by the Finance Committee of
the powers vested in it pursuant to any provision of this Act.".
(b)(1) Section 201(h) of such Act (45 U.S.C. 711(h)) is amended by
adding at the end thereof the following new sentence: " The Secretary
and the Chairman of the Commission may act in such capacity directly or
at any time through their duly authorized representatives.".
(2) Section 201(d)(2) of such Act (45 U.S.C. 711(d)(2)) is amended by
striking "or" and inserting in lieu thereof the following: "acting
directly or at any time through".
(c) Section 102 of such Act (45 U.S.C. 702), as amended by this Act,
is amended by redesignating paragraph (7) thereof as paragraph (8)
thereof, and by inserting therein a new paragraph (7) as follows:
"(7) ' Finance Committee' means the Finance Committee of the
Board of Directors of the Association established under section
201(i) of this Act;".
Sec. 604. Section 210(b) of such Act (45 U.S.C. 720(b)) is amended
to read as follows:
"(b) MAXIMUM OBLIGATIONAL AUTHORITY.-- The aggregate amount of
obligations of the Association issued under this section which may be
outstanding at any one time shall not exceed $275,000,000. No
obligations or proceeds thereof shall be issued or made available after
the date of enactment of the Railroad Revitalization and Regulatory
Reform Act of 1976 except--,
"(1) to meet existing or potential commitments for loans under
section 211 of this title made or applied for prior to January 1,
1976; and "(2) for the purposes of providing loans pursuant to
subsections (g) and (h) of section 211 of this title.".
Sec. 605. Title II of such Act is amended by adding at the end
thereof the following new section:
" Sec. 216. // 45 USC 726. // (a) GENERAL.-- The Association is
authorized, in accordance with the provisions of this section, and such
rules and regulations as it may prescribe, to invest from time to time
in the securities of the Corporation by purchasing (1) up to
$1,000,000,000 of debentures issued by the Corporation, and (2) after
the acquisition of such debentures, up to $1,100,000,000 of the series A
preferred stock of the Corporation.
"(b) PURPOSES AND PROCEDURE FOR INVESTMENT.--(1) The Association is
authorized to purchase debentures and thereafter, series A preferred
stock of the Corporation at such times and in such amounts as may be
required and requested by the Corporation in accordance with the terms
and conditions governing such purchases (which shall be prescribed by
the Association), to provide--,
"(A) for the modernization, rehabilitation and maintenance of
rail properties of the Corporation;
"(B) for the acquisition of equipment and other capital needs;
"(C) for the refinancing of indebtedness which was incurred by
the Corporation under section 215 of this title
// 45 USC 725. //
and assumend by the Corporation; or
"(D) working capital as contemplated by the final system plan.
"(2) Purchases of up to $1,000,000,000 of debentures and, thereafter,
of up to $1,100,000,000 of series A preferred stock shall be made by the
Association as required and requested by the Corporation, unless the
Finance Committeee makes an affirmative finding that--,
"(A) the Corporation has failed in any material respect to
comply with any covenants or undertakings made to the Association
and such failure remains uncorrected;
"(B) the Corporation has failed substantially (as determined by
performance within the margins prescribed by the Board of
Directors) to attain the overall operating (including
rehabilitation) and financial results projected for the
Corporation in the final system plan (including any modifications
of such projected results and of the performance margins
applicable to such projected results which are jointly approved by
the Finance Committee and the Board of Directors and which would
improve the possibility that the Corporation will attain such
projected results and perform within such margins, as modified);
or
"(C) it is not reasonably likely, taking into consideration all
relevant factors including the overall operating (including
rehabilitation) and financial results achieved by the Corporation,
that the Corporation will be able to become financially
self-sustaining without requiring Federal financial assistance
substantially in excess of the amounts authorized in this section.
"(c) FINDING, DIRECTION, AND REVIEW BY CONGRESS.--(1) If the Finance
Committee makes an affirmative finding pursuant to subsection (b)(2) of
this section, it may direct the Association--,
"(A) not to purchase any debentures or series A preferred stock
of the Corporation after the date of such affirmative finding; or
"(B) to purchase debentures or series A preferred stock of the
Corporation, after the date of such affirmative finging, only in
such amounts, at such times, and on such terms and conditions
(notwithstanding subsection (e)(1) of this section) as the Finance
Committee determines to be appropriate to the role of the
Association as an investor in such debentures and series A
preferred stock.
"(2) A copy of each affirmative finding, the reasons therefor, and
each direction made by the Finance Committee under paragraph (1) of this
subsection, together with the comments and recommendations thereon of
the Board of Directors of the Association, shall be transmitted to the
Congress by the Association within 10 days after the date on which the
Finance Committee makes such finding and direction, or if not so
transmitted, shall be transmitted by the Finance Committee. Each such
direction so transmitted shall become finally effective and is required
to be implemented by the Association, unless within the first period of
30 calendar days of continuous seeion of Congress after the date of its
transmittal to Congress either House of Congress disapproves such
direction (except that such direction shall become finally effective
imediately upon approval of such direction by both Houses of Congress)
in accordance with the procedures specified in section 1017 of the
Congressional Budget and Impoundment Control Act of 1974 (31 U.S.C.
1407). For purposes of this paragraph, continutiy of session of
Congress is broken only in the circumstances described in section 1011(
5) of that Act (31 U.S.C. 1401(5)). During review by the Association
and Congress, the Association shall take no action inconsistent withi
the direction of the Finance Committee pursuant to paragraph (c)(1) of
this section, except to the extent the Association finds necessary, in
its discretion, to assure continuous orderly operation of the
Corporation.
"(3) If the Congress, pursuant to paragraph (2) of this subsection,
disapproves a direction submitted to the Association pursuant to
paragraph (1) of this subsection, the Association shall continue to
purchase the debentures or series A preferred stock of the Corporation
as otherwise provided in this title until such time as a direction is
submitted under this section which is not so disapproved (or
affirmatively approved). The powers of the Association and of the Board
of Directors of the Association shall remain in effect except to the
extent modified by any such direction. If any such direction is
disapproved by either House of Congress, the Finance Committee may, not
earlier than 30 days after the date of such disapproval, make (and the
Board of Directors of the Association shall transmit) any additional
affirmative finding and direction with respect to the same matter, which
direction shall become effective in accordance with paragraph (2) of
this subsection. An affirmative finding and direction under this
subsection, or action by the Association during a review thereof by the
Congress, may not be held unlawful or set aside by any reviewing court
on the ground that such finding and direction or action were not
adequate to meet the requirements of subparagraph (A), (E), or (F) of
section 706(2) of title 5, United States Code.
"(4) Notwithstanding any other provision of this section, or any
terms and conditions governing its purchase of securities of the
Corporation, the Association shall, upon written application by the
Corporation at least 30 days prior to such investment, make an initial
investment in debentures of the Corporation within 60 days after the
date of conveyance of rail properties pursuant to section 303(b)(1) of
this Act. // 45 USC 743. // Such initial investment shall be limited to
such amounts as the Association and Finance Committee, acting jointly,
determine are necessary for the continued and orderly operations of the
Corporation prior to any additional investment.
"(5) Not later than 60 days after the date of conveyance pursuant to
section 303(b)(1) of this Act, the Association shall select 6
individuals to serve as members of the Board of Directors of the
Corporation, subject to the provisions of section 301(d) of this Act //
45 USC 741. //
"(d) TERMS AND CONDITIONS.-- Notwithstanding any other provision of
State law, the debentures and the series A preferred stock of the
Corporation shall have such terms and conditions, not inconsistent with
the final system plan or this title, as may be prescribed by the
Association, except as follwos:
"(1) The Corporation shall not be required to issue to the
Association additional shares of series A preferred stock of the
Corporation as a dividend on any such stock.
"(2) The dividends payable on series A preferred stock of the
Corporation shall not be cumulative and shall be paid in cash when
and to the extent that there is 'cash available for restricted
cash payments', as that term is defined in the final sysem plan.
"(3) After the Association calls for redemption of the
certificates of value, no shares of series A preferred stock of
the Corporation shall be issued in lieu of interest on the
debentures of the Corporation and, to the extent such interest is
not payable in cash by reason of the absence of sufficient 'cash
available for restricted cash payment', the Corporation shall
deliver to the holders of the debentures contingent interest notes
in a face amount equal to such unpaid interest.
"(4) If the Board of Directors of the Association and the
Finance Committee, acting jointly, modify the terms or conditions
governing the purchase of debentures of series A preferre stock of
the Corporation pursuant to subsection (e)(1) of this section, or
if the Finance Committee waives compliance with any term,
condition, provision, or covenant of such securities pursuant ot
subsection (e)(2) of this section, the Finance Committee may
require the Corporation to issue contingent interest notes in such
amount as, in the determination of the Finance Committee, will
provide protection for the United States, in the event of
bankruptcy, recorganization, or receivership of the Corporation,
equal to the protection the United States would have had in the
absence of such modification or waiver.
"(5) The contingent interest notes issued pursuant to this
section shall bear interest compounded annually at the rate of 8
percent per annum and such notes and the accumulated interest
thereon shall be payable only in the event of bankruptcy,
reorganization, or receivership of the Corporation occurring prior
to the repayment and receivership of the Corporation occurring
prior to the repayment and redemption of all outstanding
debentures and accumulated series A preferred stock of the
Corporation. The contingent interest notes and the accumulated
interest thereon shall have the same priority in bankrupcy,
reorganization, or receivership as the debentures of the
Corporation. The other terms and conditions of the contingent
interest notes shall be as set forth in an agreement to be entered
into between the Association and the Corporation prior to issuance
of any debentures
"(e) MODIFICATIONS, WAIVERS, AND CONVERSIONS.--(1) The Board of
Directors of the Association and the Finance Committee, acting jointly,
may agree with the Corporation to modify any of the terms and conditions
governing the purchase by the Association of securities of the
Corporation, upon a finding that such action is necessary or appropriate
to achieve the purposes of this Act or the goals of the final system
plan.
"(2) The Finance Committee may, in its discretion and upon a finding
that such action is snecessary or appropriate to achieve the purposes of
this Act or the goals of the final system plan, waive compliance with
any term, condition, provision, or covenant of the securities of the
Corporation held by the Association, including any provision of such
securities with respect to redemption of principal or issuance price,
payment of interest or dividends, or any term or condition governing the
purchase of such securities.
"(3) Notwithstanding any provision of States law, there shall be no
conversion of the debentures of the Corporation into series A preferred
stock of the Corporation, as provided in the terms and conditions of the
deventures and pursuant to the final system plan, unless the Board of
Directors of the Association and the Finance Committee jointly determine
to effect such conversion.
=(f) APPROPRIATION.-- There is authorized to be appropriated to the
Association $2,100,000,000 to be used for the purchase of securities of
the Corporation in accordance with this section. All sums received by
the Association on account of the holding or disposition of any such
securities shall be deposited in the general fund of the Treasury.".
Sec. 606. Section 211 of such Act (45 U.S.C. 741) // 45 USC 721. //
is amended by adding at the end thereof the following new subsection:
"(g) PRE- CONVEYANCE LOANS TO THE CORPORATION.-- During the period
between the effective date of the final system plan and the date of the
conveyance of rail properties pursuant to section 303(b) // 45 USC 743
// of this Act, the Association may make such loans in such amounts to
the Corporation as the Association deems essential to provide for the
purchase by the Corporation of material, supplies, equipment, and
services necessary to permit the orderly and efficient implementation of
the final system plan. Notwithstanding any inability of the Association
during such period to make the finding required by subsection (e)(3) of
this section because of any existing contingencies, the Association may
make any such loans to the Corporation, subject to--,
"(1) the most favorable terms and conditions for assuring
timely repayment and security as may then be reasonably available,
and
"(2) the reequirement that ay loan to the Corporation under
this subsection be refinanced that any loan to the Corporation
under this subsection be refinanced immediately out of the
proceeds of the first sale by the issuance of debentures under
section 216 of this title.
In order to assure that necessary funds are available to the Corporation
for implementation of the final system plan, the Corporation is
authorized to accept such loans as may be approved by the Association
under this subsection, and any such acceptance shall be deemed for all
purposes to constitute a reasonable and prudent business judgement in
compliance with any fiduciary obligations imposed on the Coporation or
its directors. For purposes of this subsection, the term ' Corporation'
includes a subsidiary of the Corporation.
"(h) LOANS FOR PAYMENT OF OBLIGATIONS.--(1) The Association is
authorized, subject to the limitations set forth in section 210(b) of
this title, to enter into laon agreements, in amounts not to exceed
$230,000,000 in the aggregate, with the Corporation, the National
Railroad Passenger Corporation, and any profitable railroad to which
rail properties are transferred or conveyed pursuant to section 303(b)(
1) of this Act, // 45 USC 743 // under which the Corporation, the
National Railroad Passenger Corporation, and any profitable railroad
entering into such agreement will agree to meet existing or prospective
obligations of the railroads in reorganization in the region which the
Association, in accordance with procedures established by the
Association, determines should be paid by the Corporation, the National
Railroad Passenger Corporation, or a profitable railroad, on behalf of
the transferors, in order to avoid disruptions in ordinary business
relationships. Such obligations shall be limited to amounts claimed by
suppliers (including private car lines) of materials or services
utilized in current rail operations, claims by shippers arising from
current rail services, payments to railroads for settlement of current
interline accounts, claims of employees arising under the collective
bargaining a agreements of the railroads in reorganization in the region
and subject to section 3 of the Railway Labor Act, // 45 USC 153. //
claims of all employees or their personal representatives for personal
injuries or death and subject to the provisions of Employers' Liability
Acts (45 U.S.C. 51 - 60), // 45 USC 51 // and amounts required for
adequate funding of accrued pension benefits existing at the time of a
conveyance or discontinuance of service under employee pension benefit
plans described in section 505(a) of this Act. The Association shall
not make such a loan unless it first finds that the loan is for the
purpose of paving obligations with respect to accrued pension plans
referred to in the preceding sentence or that the Corporation, the
National Railroad Passenger Corporation, or a profitable railroad is
entitled to a loan pursuant to subsection (e) and (g) of section 504 of
this Act, or unless it first finds that--,
"(A) provision for thepayment of such obligations was not
included in the financial projections of the final system plan;
"(B) such obligations arose from rail operations prior to the
date of conveyance of rail properties pursuant to section 303(b)
(1) of this Act and are, under other applicable law, the
responsibility of a railroad in reorganization in the region;
"(C) the Corporation, the National Railroad Passenger
Corporation, or a profitable railroad has advised the Association
that the direct payment of such obligations by the Corporation,
the National Railroad Passenger Corporation or profitable railroad
is necessary to avoid disruptions in ordinary business
relationships;
"(D) the transferor is unable ot pay such obligations within a
reasonable period of time; and
"(E) with respect to loans made to the Corporation, the
procedures to be followed by the Corporation, in seeking
reimbursement from the railroads in reorganization in the region
for obligations paid on their behalf under this subsection, have
been jointly agreed to by the Finance Committee and the
Corporation.
"(2) The trustees of each railroad in reorganization in the region
shall attempt to negotiate agency agreements with the Corporation, the
National Railroad Passenger Corporation, or a profitable railroad for
the processing of all accounts receivable and accounts payable
attributable to operations prior to the conveyance of property pursuant
to section 303(b)(1) of this Act, // 45 USC 743 // If any railroad in
reorganization in the region fails to conclude such an agreement within
a reasonable time prior to such conveyance, the applicable
reorganization courts, after giving all parties an opportunity to be
heard, shall prescribe the terms of such an agency arrangement by order,
giving due consideration to the need, wherever possible, to make such
agreements uniform among the various estates.
"(3) The Association may, not less than 30 days prior to the date of
conveyance pursuant to section 303(b)(1) of this Act, petition each
district court of the United States having jurisdiction over the
reorganization of a railroad in reorganization in the region for an
order, which shall be entered prior to such conveyance, and which--,
"(A) identifies that cash and other current assets of the
estate of such railroad which shall be utilized to satisfy
obligations of the estates identified in paragraph (1) of this
subsection; and
"(B) provides for the application by the trustees of such
railroads and their agents, consistent with the principles of
reorganization under section 77 ofthe Bankruptcy Act (11 U.S.C.
205) and with the agency agreement specified in paragraph (2) of
this subsection, of all such current assets, including cash
available as of or subsequent to such date of conveyance, to the
payment in the postconveyance period of the obligations of the
estates identified in paragraph (1) of this subsection
"(4)(A) Each obligation of a railroad in reorganization in the region
which is paid with financial assistance under paragraph (1) of this
subsection shall be processed, on behalf of such railroad, by the
Corporation, the National Railroad Passenger Corporation, or a
profitable railroad, whichever is appropriate. An obligation of a
railroad in reorganization in the region shall be paid, on behalf of
such railroad, by the Corporation, the National Railroad Passenger
Corporation, or a profitable railroad, whichever is appropriate, if--,
"(i) such obligation is deemed by the Corporation, the National
Railroad Passenger Corporation, or a profitable railroad,
whichever is appropriate, to have been, on the date of conveyance
of rail properties pursuant to section 303(b)(1) of this Act, the
obligation of a railroad in reorganization in the region;
"(ii) such obligation accrues after such date of conveyance but
as a result of rail operations conducted prior to such date, and
the trustees of such railroad in reorganization acknowledge that
it is an obligation of such railroad; or
"(iii) the district court of the United States having
jurisdiction over such railroad in reorganization in the region
approves such obligation as a valid administrative claim against
such railroad;
to the extent that payment is required under a loan agreement with the
Association under such paragraph (1).
"(B) The Association shall resolve any disputes among the
Corporation, the National Railroad Passenger Corporation, and a
profitable railroad concerning which of them shall process and pay any
particular obligation on behalf of a particular railroad in
reorganization.
"(C) The Corporation, the National Railroad Passenger Corporation, or
a profitable railroad shall have a direct claim, as a current expense of
administration, for reimbursement from the estate of a railroad in
reorganization in the region for all obligations of such estate (plus
interest thereon) which are paid by the Corporation, the National
Railroad Passenger Corporation, or a profitable railroad, as the case
may be. The right of the Corporation or the National Railroad Passenger
Corporation to reveive reimbursement under this subparagraph from the
estate of a railroad in reorganization in the region shall be reduced by
the amount, if any, of loans, plus interest forgiven under paragraph (5)
of this subsection.
"(5)(A) If, at any time, the Finance Committee of the Association
determines that the failure of the Corporation to receive full
reimbursement with interest from the estate of a railroad in
reorganization in the region for any obligation of such estate paid
pursuant to this subsection could adversely affect the fairness and
equity of the transfers and conveyances pursuant to section 303(b)(1) of
this Act, // 45 USC 743. // or that the failure of the National
Railroad Passenger Corporation to receive such full reimbursement plus
interest for any such obligation would be contrary to the public
interest, the Association shall forgive the indebtedness, plus accrued
interest, of the Corporation or of the National Railroad Passenger
Corporation incurred pursuant to paragraph (1) of this subsection in the
amount recommended by the Finance Committee. The Association shall have
a direct claim, as a current expense of administration of the estate of
such railroad in reorganization, equal to the amount by which loans of
the Corporation or of the National Railroad Passenger Corporation, plus
interest, have been forgiven. Such direct claim shall not be subject to
any reduction by way of setoff, cross-claim, or counter-claim which the
estate of such railroad in reorganization may be entitled to assert
against the Corporation, or the United States.
"(B) The direct claim of the Association under this paragraph, and
any direct claim authorized under paragraph (4) of this subsection,
shall be prior to all other administrative claims of the estate of a
railroad in reorganization, except claims arising under trustee's
certificates or from default on the payment of such certificates.
"(6) Notwithstanding any other provision of this subsection, the
Association shall forgive any loan made to the Corporation or the
National Railroad Passenger Corporation pursuant to this subsection,
plus accrued interest thereon, on the 3rd anniversary date of any such
loan, except that the Association shall not forgive any loan or portion
thereof, in accordance with this paragraph, if--,
"(A) the Finance Committee makes an affirmative finding, with
respect to such loan or portion thereof, that--,
"(B) the Finance Committee so directs the Association; and
"(C) neither House of the Congress disapproves such affirmative
finding and direction, in accordance with the following provisions
of this paragraph.
A copy of each such finding, the reasons therefor, and such direction
made by the Finance Committee, together with the comments and
recommendations thereon of the Board of Directors of the Association,
shall be transmitted to the Congress by the Association within 10 days
after the date on which the Finance Committee makes such finding and
direction, or if not so transmitted, shall be transmitted by the Finance
Committeee. Each such finding and direction so transmitted shall become
effective immediately, and shall remain in effect, unless, within the
first period of 30 calendar days of continuous session of Congress after
the date of transmittal of such finding and direction to Congress,
either House of Congress disapproves such finding and direction in
accordance with the procedures specified in section 1017 of the
Congressional Budget and Impoundment Control Act of 1974 (31 U. S.C.
1407). For purposes of this paragraph, continuity of session of Congress
is broken only in the circumstances described in section 1011( 5) of
that Act (31 U.S.C. 1401(5)).
"(7) For purposes of this subsection, the term ' Corporation'
includes a subsidiary of the Corporation.
"(i) Electrification.--Upon application by the Corporation, the
Secretary shall, pursuant to the provisions of and within the
obligational limitations contained in sections 511 through 513 of the
Railroad Revitalization and Regulatory Reform Act of 1976, guarantee
obligations of the Corporation for the purpose of electrifying
high-density mainline routes if the Secretary finds that such
electrification will return operating and financial benefits to the
Corporation and will facilitate compatibility with existing or renewed
electrification systems. The aggregate unpaid principal amount of
obligations which may be guaranteed by the Secretary under this
paragraph shall not exceed $200,000,000 at any one time.".
Sec. 607. (a) Section 201(j) of such Act (45 U.S.C. 711(j)), as
redesignated by section 603(a) of this Act, is amended by adding at the
end thereof the following new paragraph:
"(4) Any reference in this Act to the Secretary of the Treasury is to
the Secretary of the Treasury or the person at the time performing the
duties of the Office of the Secretary of the Treasury in accordance with
law, or the duly authorized representative of either of them. Any
reference in this Act to the Chairman of the Commission is to the
Chairman of the Commission or the person at the time performing the
duties of the Chairman of the Commission in accordance with law, or the
duly authorized representative of either of them.".
(b) Section 202(e) of such Act (45 U.S.C. 712(e)) is amended by
inserting after "obligations issued" and before "and loans" in clause
(4) thereof the following: ", certificates of value issued, securities
purchased,".
(c) Section 202(f) of such Act (45 U.S.C. 712(f)) is amended by
inserting after "section" and before ")" in the first sentence thereof
the following; "and receipts and disbursements under section 216 of
this title and section 306 of this Act.".
(d) Section 203(a) of such Act (45 U.S.C. 713(a)) is amended by
striking out the last sentence thereof.
(e) Section 206(d)(3) of such Act (45 U.S.C. 716(d)(3)) is amended by
inserting after the first sentence thereof the following three new
sentences: " All determinations made by the Association in the
correction to the preliminary system plan published on April 11, 1975
(40 Fed. Reg. 16377), shall be treated for all purposes as if they had
been made upon adoption and release by the Association of the
preliminary system plan. All determinations made by the Commission with
respect to such correction shall be treated for all purposes as if they
had been made within 90 days after adoption and release by the
Association of the preliminary system plan. All determinations made by
the Commission with respect to acquisitions by profitable railroads
referred to in any supplement to the preliminary system plan published
under section 207(b)(2) of this title shall be deemed to be timely if
made prior to the adoption of the final system plan under section 207(
c) of this title.".
(f) Section 206(c)(1)(B) of such Act (45 U.S.C. 716(c)(1)(B)) is
amended by inserting immediately after "paragraph" the following: "and
what alternative designations shall be made under this paragraph".
(g) Section 206(c)(1)(A) of such Act (45 U.S.C. 716(c)(1)(A)) is
amended by striking out the semicolon and inserting in lieu thereof the
following: ": Provided, That the Corporation shall, within 95 days
after the effective date of the final system plan, give notice to the
Association of which such rail properties, if any, are to be transferred
to a subsidiary of the Corporation in the event that the Board of
Directors of the Association finds that such transfer would be
consistent with the final system plan;".
(h) Section 206(c)(2) of such Act (45 U.S.C. 716(c)(2)) is amended by
adding at the end thereof the following new sentence: " Any rail
properties designated to be offered for sale to the Corporation may be
sold instead to a subsidiary of the Corporation.".
(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 // 45 USC 716, 719, 725, 744, 771. // by
inserting after " Corporation" each time it appears the following: "or
any subsidiary thereof".
(j) Section 206(c)(1)(D) of such Act (45 U.S.C. 716(c)(1)(D)) is
amended by--,
(1) inserting immediately after "by" the following "(i)"; and
(2) striking out ";and" at the end thereof and adding the
following:",or (ii) the National Railroad Passenger Corporation to
meet the needs of improved rail passenger service over intercity
routes, other than properties designated pursuant to subparagraph
(C) of this paragraph; and".
(k) Section 210(c) of such Act (45 U.S.C. 720(c)) is amended by
adding at the end thereof the following new sentence: " All guarantees
entered into by the Secretary under this section shall constitute
general obligations of the United States for the payment of which its
full faith and credit are pledged.".
(l) Section 209(c) of such Act (45 U.S.C. 719(c)) is amended by
striking out "obligations of the Association" each time it appears and
inserting in lieu thereof "certificates of value of the Association".
(m)(1) Subsection (b) of section 214 of such Act (45 U.S.C. 724(b))
is amended by striking out "$5,000,000" and inserting in lieu thereof
"$7,000,000".
(2) Section 214(c) of such Act is amended by striking out the period
and inserting in lieu thereof ",and not to exceed $14,000,000 for the
fiscal period which includes the period ending September 30, 1977.".
(n) Section 214(a) of such Act (45 U.S.C. 724(a)) is amended by
adding at the end thereof the following: " There are authorized to be
appropriated to the Secretary such sums as may be necessary to discharge
the obligations of the United States arising under section 303(c)(5) of
this Act.".
(o) Paragraph (4) of section 206(d) of such Act (45 U.S.C. 716(d)(
4)) is amended--,
(1) in the first sentence thereof, by striking out "30 days
after the effective date of the final system plan" and inserting
in lieu thereof "7 days after the date of the enactment of the
Railroad Revitalization and Regulatory Reform Act of 1976"; and
in the second sentence thereof, by striking out "60" and inserting
in lieu thereof "95"; and
(2) by inserting immediately after the first sentence thereof
the following new sentence: " Any such offer may be modified
until the date of acceptance thereof, unless such modification
results in an offer for the sale of rail properties at less than
the net liquidation value thereof.".
(p) Section 206(d) of such Act (45 U.S.C. 716(d)) is amended by
adding at the end thereof the following new paragraph:
"(6) Notwithstanding any statement to the contrary in the final
system plan, a State (or a local or regional transportation
authority) shall not be required to deliver to the Corporation a
firm commitment to acquire rail properties designated to such
State or authority prior to 7 days after the date of enactment of
this paragraph.".
(q) Section 206 of such Act (45 U.S.C. 717(c)) is amended // 45 USC
716. // by adding at the end thereof the followin new subsection:
"(j) Any rail properties over which rail service was being provided
as of the date of enactment of this Act, and which were recommended in
the preliminary system plan for transfer to the Corporation, shall be
deemed to be designated in the final system plan for transfer to the
Corporation under subsection (c)(1)(A) of this section. Any designation
in the final system plan, pursuant to subsection (c)(1) (B) of this
section, of overhead trackage rights to be acquired by a profitable
railroad operating in the region over specified rail properties to be
acquired by the Corporation, where such designation does not (1)
authorize such profitable railroad to interchange traffic with at least
one railroad, or (2) provide for the connection of portions of such
profitable railroad's rail properties, and where the transfer of
ownership of such rail properties (including trackage rights) to such
profitable railroad was recommended in the preliminary system plan, and
the Commission has made a determination with respect thereto, in
accordance with subsection (d)(3) of this section, shall be deemed to
authorize such profitable railroad to interchange traffic with the
Corporation and any other profitable railroad connecting with such
specified rail properties.".
(r) Section 209(c) of such Act (45 U.S.C. 719(c)) is amended by
adding at the end thereof, without paragraph indentation, the following
new sentences: " Notwithstanding any other provisions of this
subsection and subsection (d) of this section, the time for the delivery
of a certified copy of the final system plan shall be March 12, 1976,
and may be extended to a date not more than 30 days thereafter,
prescribed in a notice filed by the Association not later than February
10, 1976, with the special court, the Congress, and each court referred
to in such subsection (d). Such notice shall contain the certification
of the Association that an orderly conveyance of rail properties cannot
reasonably be effected before the date for conveyance determined with
respect to such notice. The time prescribed in section 303(a) of this
Act // 45 USC 743. // shall be determined with respect to the date
prescribed in such notice.".
(s) Section 209(c) (1) and (2) of such Act (45 U.S.C. 719(c) (1) and
(2)) is amended by striking out "railroad leased" each time it appears
therein and inserting in lieu thereof "person leased".
(t) Section 102(12) of such Act (45 U.S.C. 702(12)), as redesignated
by this Act, is amended (1) by inserting immediately before "which are
used or useful" the following: "(or a person owned, leased, or
otherwise controlled by a railroad)"; and (2) by striking out "phase"
and inserting in lieu thereof "phrase".
Sec. 608. Section 301(e) of such Act (45 U.S.C. 741(e)) is amended
to read as follows:
"(e) Initial Capitalization.--(1) In order to carry out the final
system plan, the Corporation is authorized to issue debentures, series A
preferred stock, series B preferred stock, common stock, contingent
interest notes, and other securities.
"(2) Debentures and series A preferred stock shall be issued
initially to the Association. Series B preferred stock and common stock
shall be issued initially to the estates of railroads in reorganization
in the region, to railroads leased, operated, and controlled by
railroads in reorganization in the region, and to other persons leased,
operated or controlled by a railroad in reorganization who are
transferors of rail properties in exchange for rail properties
transferred to the Corporation pursuant to the final system plan.
Notwithstanding any other provisions of State of Federal law, the series
B preferred stock and common stock shall have terms and conditions not
inconsistent with the final system plan. As a condition of its
investment in the Corporation, the Association may require that the
Corporation adopt limitations consistent with the final system plan on
the circumstances under which dividends on the series B preferred stock
and common stock are payable so long as any of the debentures or series
A preferred stock are outstanding.".
Sec. 609. Title III of such Act, as amended by this Act, is further
amended by inserting the following new section:
" Sec. 307. // 45 USC 747. // (a) Audit.--(1) The Comptroller
General of the United States is authorized to audit the programs,
activities, and financial operations of the Corporation for any period
during which (A) Federal funds provided pursuant to this Act are being
used to finance any portion of its operations, or (B) Federal funds have
been invested therein pursuant to this Act. Any such audit may be
conducted under such rules and regulations as the Comptroller General
may prescribe. The Comptroller General shall report to the Congress at
such times and to such extent as he considers necessary to keep the
Congress informed on the security of such Federal funds and guarantees
and, to the extent appropriate, make recommendations for achieving
greater economy, efficiency, and effectiveness in such programs,
activities, and operations.
"(2) For the purpose of any audit conducted pursuant to subsection
(a) of this section, the Comptroller General, or a designated
representative of the Comptroller General, shall have access to and the
right to examine all books, accounts, records, reports, files, and other
papers, items, or property belonging to or in use by the Corporation.
"(b) Report.--The Association shall prepare and submit an annual
report to Congress on the performance of the Corporation in order to
keep the Congress informed as to matters which may affect the quality of
rail services in the region and which may affect the security of Federal
funds referred to in subsection (a) of this section. Each such report
shall be submitted within 150 days after the end of the fiscal year of
the Corporation. Each such report shall include an evaluation of--,
"(1) the degree to which the goals of section 206 (a) of this
Act
// 45 USC 716. //
are being met;
"(2) the amounts and causes of deviations, if any, from the
financial projections of the final systems plan;
"(3) the amount of Federal funds made available to the
Corporation and a clear description of the uses of such funds;
"(4) the projected financial needs of the Corporation;
"(5) the projected sources from which such financial needs are
likely to be met; and
"(6) the ability of the Corporation to become financially
self-sustaining without requiring Federal funds in excess of those
authorized by section 216(f) of this Act.".
Sec. 610. (a) Section 102 of such Act (45 U.S.C. 702), as amended by
this Act, is amended--,
(1) in paragraph (16) thereof, by striking out "and";
(2) in paragrpaph (17) thereof, by striking out the period and
inserting in lieu thereof a semicolon; and
(3) by adding at the end thereof the followin two new
paragraphs:
"(18) 'subsidiary' means any corporation 100 percent of whose total
combined voting shares are, directly or indirectly, owned or controlled
by the Corporation; and
"(19) 'supplemental transaction' means any transaction set forth in a
proposal under section 305 of this Act, within 6 years after the date on
which the special court orders conveyances of rail properties to the
Corporation under section 303(b) of this Act, // 45 USC 743. // under
which the Corporation or a subsidiary thereof would (A) acquire rail
properties not designated for transfer or conveyance to it under the
final system plan, (B) convey rail properties to a profitable railroad,
a subsidiary of the Corporation or, other than as designated in the
final system plan, to the National Railroad Passenger Corporation or to
a State or a local or regional transportation authority, or to any other
responsible person for use in providing rail service, or (C) enter into
contractual or other arrangements with any person for the joint use of
rail properties or the coordination or separation of rail operations or
services.".
(b) Title III of such Act is amended by adding at the end thereof the
following new sections:
" Sec. 305. // 45 USC 745. // (a) Proposals.--If the Secretary or
the Association determines that, as part of continuing reorganization,
further restructuring of rail properties in the region through
transactions supplemental to the final system plan would promote the
establishment and retention of a financially self-sustaining rail
service system in the region adequate to meet the needs of the region,
the Secretary or the Association, as the case may be, may develop
proposals for such supplemental transactions as are necessary or
appropriate to implement the needed restructuring. Transfers of rail
properties included in proposals developed by the Association shall be
limited to (1) rail properties which would have qualified for
designation under section 206(c)(1) (A) of this Act // 45 USC 716. //
but which were not transferred or conveyed under the final system plan,
and which the Association finds to be essential to the efficient
operations of the Corporation, and (2) transfers, consistent with the
final system plan, of rail properties from the Corporation to a
subsidiary thereof. Each proposal (other than a proposal developed by
the Association) shall be submitted in writing to the Association and
shall state and describe any transactions proposed, the rail properties
involved, the parties to such transactions, the financial and other
terms of such transactions, the purposes of the Act or the goals of the
final system plan intended to be effectuated by such transactions, and
such other information incidental thereto as the Association may
prescribe. Within 10 days after receipt of a proposal developed by the
Secretary, and upon the development of a proposal developed by the
Association, the Association shall publish a summary of such proposal in
the Federal Register, and shall afford interested persons (including the
Corporation when property is to be transferred to or from the
Corporation) an opportunity to comment thereon.
"(b) Evaluation by Association.--The Association shall analyze each
proposal containing one or more supplemental transactions, taking into
account the comments of interested persong and statements and exhibits
submitted at any public hearings which may have been held. The
Association shall, within 120 days after the publication of a summary
thereof under subsection (a) of this section, publish in the Federal
Register a report evaluating such proposal. Such evaluation shall state
whether the supplemental transactions contained in such proposal,
considered in their entirety, are (1) in the public interest and
consistent with the purposes of this Act and the goals of the final
system plan, and (2) fair and equitable. If the Corporation opposes, or
seeks modification of, any such proposed transfer, its written comments
shall be given due consideration by the Association and shall be
published as part of the evaluation. Within 30 days after the
Association publishes its report, each proposed transferor or transferee
shall notify the Association in writing as to whether any proposed
supplemental transaction requiring the transfer of any property from or
to such transferor or transferee is acceptable to such proposed
transferor or transferee. If any such proposed transferor (other than
the Corporation) or transferee fails to notify the Association that any
proposed supplemental transaction requiring the transfer of any property
from such transferor or to such transferee is acceptable to it, no
further administrative or judicial proceedings shall be conducted with
respect to such proposed supplemental transaction.
"(c) Review by the Commission.--Within 90 days after the publication
in the Federal Register of each report referred to in subsection (b) of
this section, the Commission shall determine whether the supplemental
transactions referred to in the report, considered in their entirety,
would be in the public interest and consistent with the purposes of this
Act and the goals of the final system plan. In making such
determination, the Commission shall give due consideration to the views
received by it, within 30 days after the publication of the applicable
report, from the Corporation and the Secretary. The Commission may
condition its approval of such supplemental transactions on such
reasonable terms and conditions as it may deem necessary in the public
interest. The approval by the Commission of such supplemental
transactions shall not be a prerequisite to the consummation of such
transactions, but any determination of the Commission modifying,
approving, or disapproving any proposed supplemental transactions shall
be given due weight and consideration by the special court in the
proceedings prescribed in subsection (d) of this section. If the
Commission fails to act within the time period provided in this
subsection, the supplemental transactions involved shall be deemed to
have been approved by the Commission. The Commission may prescribe such
regulations as may be necessary for the administration of this section.
"(d) Special Court Proceedings.--(1) If the Association has made the
determination pursuant to subsection (b) of this section that a proposal
for supplemental transactions is in the public interest and consistent
with the purposes of this Act and the goals of the final system plan,
and is fair and equitable, the Association shall, within 40 days after
the date of the Commission's determination under subsection (c) of this
section, or after the expiration of the 90-day period referred to in
such subsection (c), whichever is applicable, petition the special court
for an order of such court finding that such proposal for supplemental
transactions is in the public interest and consistent with the purposes
of this Act and the goals of the final system plan, and is fair and
equitable, and directing the Corporation to carry out the supplemental
transactions specified in such proposal. If the Association has
determined, pursuant to subsection (b) of this section that a proposal
made by the Secretary is not in the public interest or is not consistent
with the purposes of this Act and the goals of the final system plan or
is not fair and equitable, the Secretary may, if he determines that such
proposal is in the public interest and consistent with the purposes of
this Act and the goals of the final system plan and is fair and
equitable, petition the special court for an order of such court finding
that such proposal for supplemental transactions is in the public
interest and consistent with the purposes of this Act and the goals of
the final system plan and is fair and equitable, and directing the
Corporation to carry out any supplemental transactions specified in such
proposal. Such a petition shall be submitted to the special court
within 90 days after the date of the Commission's determination under
such subsection (c), or after the expiration of the 90-day period
referred to in such subsection (c), whichever is applicable.
"(2) Within 180 days after the filing of a petition under paragraph
(1) of this subsection, the special court shall decide, after a hearing
whether the proposed supplemental transactions contained in such
petition, considered in their entirety, are in the public interest and
consistent with the purposes of this Act and the goals of the final
system plan and are fair and equitable. If the special court determines
that such proposed supplemental transactions, considered in their
entirety, are in the public interest and consistent with the purposes of
this Act and the goals of the final system plan and are fair and
equitable, it shall, upon making such determination, issue such orders
as may be necessary to direct the Corporation to consummate the
transactions. If the special court determines that such proposed
supplemental transactions, considered in their entirety, are not in the
public interest or not consistent with the purposes of this Act and the
goals of the final system plan, or are not fair and equitable, it shall
file an opinion stating its conclusion and the reasons therefor. In
such event the Association (in the case of a proposal developed by the
Association) or the Secretary (in the case of a proposal developed by
the Secretary) may, within 120 days after the filing of such opinion,
certify to the special court that the terms and conditions of the
proposal have been modified consistent with the opinion of the court and
are acceptable to each proposed transferor (other than the Corporation)
or transferee, and may petition the special court for reconsideration of
the proposal as so modified. Within 90 days after the filing of such
petition, the special court shall decide, after a hearing, whether the
proposal as modified by the certification is in the public interest and
consistent with the purposes of this Act and the goals of the final
system plan and is fair and equitable, and shall enter such further
orders as are consistent with its determination.
"(3) The Corporation is authorized to petition the special court and
to be represented regarding any proposed supplemental transaction,
contained in a proposal developed by either the Association or the
Secretary, which involves the properties of the Corporation.
"(4) In proceedings under this subsection, the special court is
authorized to exercise the powers of a judge of a United States district
court with respect to such proceedings and such powers shall include
those of a reorganization court.
"(5) Any evaluation by the Association, the Secretary, or the
Commission shall not be reviewable in any court except the special court
in accordance with the provisions of this section. The supplemental
transactions shall not be restrained or enjoined by any court nor shall
they be otherwise reviewable by any court other than by the special
court to the extent provided in this section.
"(6) Notwithstanding any other provision of this Act, no findings,
determinations, or proceedings shall be required with respect to any
proposal for supplemental transactions other than as expressly set forth
in this section. "(7) Any supplemental transaction under this section
shall subject the transferor and transferee, in each such supplemental
transaction, to the requirements and other provisions of title V of this
Act, // 45 USC 771. // except that the term 'effective date of this Act
contained in such title V shall be applied to such supplemental
transaction as if it read 'effective date of the supplemental
transaction'.
"(8) A final order or judgement of the special court entering or
denying an order pursuant to this subsection shall be reviewable in the
same manner as provided in section 209(e)(3) of this Act.
"(e) DEFINITION.-- As used in this section, the term 'fair and
equitable' means fair and equitable, in accordance with the standards
applicable to the approval of a plan of reorganization (or a step in
such plan) under section 77 of the Bankruptcy Act (11 U.S.C. 205) to--
"(1) the estates of railroads in reorganization in the region
and persons leased, operated, or controlled by such railroads who
have conveyed rail properties, under section 303(b)(1) of this
title, // 45 USC 743. // in exchange for securities of the
Corporation, the Association, or profitable railroads and other
benefits provided as a consequence of this Act and to any
subsequent holders of such securities at the time of the
supplemental transaction involved; and
"(2) the holders of other securities of the Corporation.
Whenever any property or securities of the Corporation are required to
be valued in order to determine whether the terms of a supplemental
transaction are fair and equitable, the special court shall give proper
recognition to the contributions to the Corporation by all classes of
security holders, except that such court shall not assign to the series
B preferred stock or the common stock of the Corporation any values
added to those securities, by reason of investment by the Association in
debentures and series A preferred stock of the Corporation, in excess of
any value required by constitutional principles applicable to a
reorganization process.
" Sec. 306. // 45 USC 746. // (a) General.--On the date when the
Corporation is required to deposit securities with the special court
pursuant to section 303(a)(1) of this title, // 45 USC 743. // the
Association shall deposit with the special court the certificates of
value of the Association required by this section. The Secretary shall
guarantee the payment of all certificates of value delivered in
accordance with this title. All guarantees entered by the Secretary
under this section shall constitute general obligations of the United
States of America for the payment or redemption of which its full faith
and credit are pledged. Such guarantees shall be valid and
incontestable except as to mutual mistake of fact or as to fraud or
material misrepresentation by the holder of such certificates or the
transferor of rail properties to which certificates of value of any
series so guaranteed are issued.
"(b) Number and Distribution.--A separate series of certificates of
value shall be issued to each railroad in reorganization in the region
and each person leased, operated, or controlled by such a railroad that
transfers rail properties to the Corporation or a subsidiary thereof.
The number of certificates of value of each series to be deposited
pursuant to subsection (a) shall be equal to the number of shares of
series B preferred stock of the Corporation which are required to be
deposited by the Corporation with the special court, pursuant to section
303(a)(1) of this title in exchange for the rail properties transferred
to the Corporation or a subsidiary thereof by such transferor.
Certificates of value of the appropriate series shall be distributed by
the special court, pursuant to section 303(c)(4) of this title, at the
same time to the same transferors, and in the same numbers of units as
shares of such series B preferred stock are distributed to such
transferor.
"(c) Redemption.--(1) Certificates of value, of any series, shall be
redeemed by the Association on December 31, 1987, or on such earlier
date as the Board of Directors of the Association and the Finance
Committee jointly may determine and specify.
"(2) Each certificate of value of each series shall be redeemable for
an amount, payable in cash, equal to its base value on the redemption
date, minus--,
"(A) the sum of the fair market value of the series B preferred
stock applicable to such certificate, the fair market value of the
common stock applicable to such certificate, and all cash
dividends theretofore paid on any such series B preferred stock
and on any such common stock; and
"(B) any sums paid to a transferor of rail properties to whom
such series of certificates of value was issued resulting from
sales or leases by the Corporation of properties transferred to it
by such transferor divided by the number of certificates of value
distributed to such transferor.
"(3) The number of shares of series B preferred stock and common
stock applicable to each certificate of value of any series, pursuant to
paragraph (2) of this subsection, shall be--,
"(A) one share of series B preferred stock (without regard to
any stock splits, stock combinations, reclassifications or similar
transactions affecting the number of shares of outstanding series
B preferred stock following the date of distribution pursuant to
section 303(c)(4) of this title); and
"(B) the number of shares of common stock determined by
dividing the total number of shares of common stock distributed
pursuant to section 303(c)(4) of this Act to the transferor
receiving such series of certificate of value by the total number
of certificates of value in the series so distributed to such
transferor.
"(4) The base value of each certificate of value of any series shall
be the value obtained by (A) taking the net liquidation value, as
determined by the special court, to which the transferor to whom such
series of certificates of value is issued is entitled by virtue of
transfers of rail properties, under section 303(b)(1) of this title //
45 USC 743. // to the Corporation or a subsidiary thereof; (B)
subtracting the value of other benefits provided under this Act, as
determined by the special court; (C) adding such amount, if any, as the
special court may determine shall be required after taking into
consideration compensable unconstitutional erosion, if any, in the
estate of a railroad in reorganization, or of a railroad leased,
operated, or controlled by such a railroad, which the special court
finds to have occurred during any bankruptcy proceeding with respect to
such railroad; (D) adding interest from the transfer date to the
redemption date to be compounded annually at a rate of 8 percent per
annum; and (E) dividing the resulting value by the number of
certificates of value of such series distributed to such transferor. In
determining such base value, the special court shall give due weight and
consideration to the finding of the Association as to the net
liquidation value to which each transferor is entitled by virtue of
conveyances of rail properties under section 303 (b)(1) of this title.
For purposes of this paragraph, the term 'rail properties' includes all
rights with respect to employee benefit plans transferred and assigned
to the Corporation pursuant to section 303 (b)(6) of this title. Net
liquidation value with respect to such rights shall be determined after
taking into account all obligations finally transferred or assigned to
the Corporation pursuant to such section.
"(5) The fair market value of series B preferred stock and of common
stock of the Corporation shall be determined in accordance with
regulations prescribed by the Association, on the basis of the average
price of each such security in the primary established market in which
such securities are traded over a period of 120 consecutive trading days
ending not less than 20 nor more than 40 trading days preceding the
redemption date, or, in the case of a security for which there is not an
established trading market, on the basis of the fair market value
thereof as determined by the majority vote of three experts in the
valuation of securities, one to be selected by the Association, one to
be selected by the directors of the Corporation elected by the holders
of the security to be valued, and one to be selected by the two first
selected.
"(d) Authorization for Appropriations.--There are authorized to be
appropriated to the Secretary such sums as are necessary to discharge
the obligations of the United States arising under this section.".
Sec. 611. (a) Section 301(c) of such Act (45 U.S.C. 741(c)) is
amended by inserting "(1)" immediately before " The members", by
deleting the second sentence of such paragraph (1) and by adding at the
end thereof the following new paragraph:
"(2) Notwithstanding any provision of State law, after the date of
enactment of this paragraph, the members of the executive committee of
the Association (including duly authorized representatives of members
who are authorized by this Act to be represented) and the chief
executive officer and chief operating officer of the Corporation shall
adopt the bylaws of the Corporation and serve as the Board of Directors
of the Corporation until all members of the Board of Directors of the
Corporation have been selected in accordance with subsection (d) of this
section. The chief executive officer shall serve as chairman of such
Board until a chairman thereof is selected pursuant to subsection (d) of
this section, after which time such chairman shall serve at the pleasure
of such Board.".
(b) Section 301(d) of such Act (45 U.S.C. 741(d)) is amended to read
as follows:
"(d) Board of Directors.--(1) Notwithstanding any provision of State
law, the articles of incorporation and bylaws of the Corporation shall
provide that the Board of Directors of the Corporation shall consist of
13 members selected in accordance with the articles and bylaws of the
Corporation, as follows:
"(A) six individuals selected by the holders of the
Corporation's debentures and series A preferred stock voting as
one class, with every $100 principal amount of debentures, and
every $100 liquidation amount of series A preferred stock each
receiving one vote for directors;
"(B) three individuals selected by the holders of the
Corporation's series B preferred stock; and
"(C) two individuals selected by the holders of the
Corporation's common stock.
"(2) The chief executive officer and the chief operating officer of
the Corporation shall serve on the Board, but the chief executive
officer and chief operating officer of the Corporation shall not be
entitled to vote on the election or removal of either. In the event a
vacancy occurs on the Board of Directors due to death, disability or
resignation of a director (other than resignations pursuant to this
subsection), such vacancy shall be filled only by a vote of the holders
of the class of securities that initially elected such director. Two
members of the Board selected by the holders of the Corporation's
debentures and series A preferred stock shall resign when the total of
the principal amount of the outstanding debentures and the amount of the
liquidation amount of the outstanding series A preferred stock, once
having exceeded $1,500,000,000, has been reduced below that amount; two
additional members of the Board selected by the holders of the
Corporation's debentures and series A preferred stock of the Corporation
shall resign when the total of the principal amount of the outstanding
debentures and the amount of the liquidation amount of the outstanding
series A preferred stock, once having exceeded $1,500,000,000, has been
reduced below $750,000,000. The two remaining members of the Board
selected by the holders of the Corporation's debentures and series A
preferred stock shall resign when all the debentures and series A
preferred stock have been redeemed by the Corporation. As directors
resign in accordance with the foregoing provisions, the election of
corporate directors to fill the vacancies created by their resignations
shall be governed by applicable State law and the articles and bylaws of
the Corporation.".
(c) Section 301 of such Act (45 U.S.C. 741) is amended by (1)
striking out subsection (f) thereof; (2) redesignating subsection (g)
thereof as subsection (h); and (3) inserting therein the following two
new subsections:
"(f) Officers.--The officers of the Corporation shall include a chief
executive officer and a chief operating officer, who shall be appointed
by the Board of Directors and who shall serve at the pleasure of the
Board; and such other officers as shall be provided for in the bylaws
of the Corporation.
"(g) Voting Trustees.--For and during the period between the deposit
of securities of the Corporation with the special court, in accordance
with section 303(a) of this title, // 45 USC 743. // and the
distribution of such securities, in accordance with section 303(c) of
this title, the special court shall, within 30 days after the date of
conveyance pursuant to section 303(b)(1) of this Act, appoint one or
more voting trustees for each class of securities which is so deposited.
Such voting trustees shall, on behalf of the distributees, exercise the
rights of the holders of such securities as their interests may appear.
Within 30 days after such appointment, such voting trustees shall select
members of the Board of Directors of the Corporation on behalf of the
holders of the class of securities whose rights they exercise pursuant
to this subsection.".
Sec. 612. (a) Section 303(b)(3) of such Act (45 U.S.C. 743(b)(3)) is
amended to read as follows:
"(3)(A)(i) Notwithstanding any other provision of this Act, if an
interest in railroad rolling stock is included in the rail properties
conveyed pursuant to subsection (b)(1) of this section, and if such
conveyance is in accordance with the requirements of clause (ii) of this
subparagraph, the conveyance of such properties shall be deemed an
assignment. Any such assignment shall relieve the assignor of liability
for any breach which occurs after the date of such conveyance, except
that such assignor shall remain liable for any breach, event of default,
or violation of covenant which occurred (and any charges or obligations
which accrued) prior to the date of such conveyance, regardless of
whether the assignee thereof assumes such liabilities, charges or
obligations. If any such liabilities, charges, or obligations (accrued
prior to the date of such conveyance) are paid by or on behalf of any
person or entity other than such assignor, such person or entity shall
have a claim to direct reimbursement, as a current expense of
administration, from such assignor, together with interest on the amount
so paid.
"(ii) A conveyance referred to in clause (i) of this subparagraph may
be effected only if--,
"(I) the Corporation or a subsidiary thereof, the profitable
railroad operating in the region, or the State or responsible
person to whom such conveyance is made assumes all of the
obligations under any applicable conditional sale agreement,
equipment trust agreement, or lease with respect to such rolling
stock (including any obligations which accrued prior to the date
on which such properties are conveyed), and
"(Ii) such conveyance is made subject to such obligations.
As used in this subparagraph, the term 'railroad rolling stock' means
assets which could be carried in Interstate Commerce Commission account
numbers 52, 53, 54, and 57.
"(B) Subject to the provisions of this paragraph, the provisions of
this Act shall not affect the title and interests of any lessor,
equipment trust trustee, or conditional sale vendor under any
conditional sale agreement, equipment trust agreement, or lease under
section 77(j) of the Bankruptcy Act (11 U.S.C. 205(j)). A profitable
railroad operating in the region, the Corporation or a subsidiary
thereof, or a State or responsible person, to whom such a conveyance is
made as assignee or as lessee, shall assume all liability under such
conditional sale agreement, equipment trust agreement, of lease. Such
an assignment or conveyance to, and such an assumption of liability by,
such a profitable railroad, Corporation, subsidiary, State, or
responsible person shall not be deemed a breach, an event of default, or
a violation of any covenant of any such conditional sale agreement,
equipment trust agreement, or lease so assigned or conveyed,
notwithstanding any provisions of any such agreement or lease.".
(b) Section 201 of the Government Corporation Control Act (31 U.S.C.
856) is amended by (1) inserting "and" after the comma at the end of
subsection (7) thereof; and (2) deleting ", and (9) the Consolidated
Rail Corporation to the extent provided in the Regional Rail
Reorganization Act of 1973." // 45 USC 701 // and inseting in lieu
thereof ".".
(c)(1) Section 303(a)(1) of such Act (45 U.S.C 743(a)(1)) is amended
by inserting after " Corporation", the second time it appears "or any
subsidiary thereof".
(2) Paragraphs (1) and (2) of section 303(b) of such Act (45 U.S.C.
743(b)(1) and (2) are amended by inserting after " Corporation" each
time it appears therein (except the first time) "or any subsidiary
thereof".
(3) Section 303(c)(1) of such Act (45 U.S.C. 743(c)(1)) is amended by
inserting after " Corporation" each time it appears "or any subsidiary
thereof".
(4) Paragraph (2)(A) of section 303(c) of such Act (45 U.S.C. 743(
c)(2)(A)) is amended by striking " Corporation" the second time it
appears and inserting in lieu thereof " Corporation or any subsidiary
thereof".
(d)(1) Section 303(a)(2) of such Act (45 U.S.C. 743(a)(2)) is amended
by inserting after "region" the first time it appears "and each State or
responsible person (including a government entity)".
(2) Section 303(b)(1) of such Act (45 U.S.C. 743(b)(1)) is amended
(A) by inserting immediately after "region" the first place it appears
the following: ", States, and responsible persons", and (B) by striking
out "and the respective profitable railroads operating in the region"
and inserting in lieu thereos ", the respective profitable railroads
operating in the region, States, and responsible persons".
(3) Section 303(b)(2) of such Act (45 U.S.C. 743(b)(2)) is amended by
striking out "and the respective profitable railroads operating in the
region" and inserting in lieu thereof ", the respective profitable
railroads operating in the region, States, and responsible persons".
(4) Paragraph (4) of section 303(b) of such Act (45 U.S.C. 743(b) (4) is
amended by striking "or the profitable railroad" and inserting in lieu
thereof ", profitable railroad, State, or responsibe person".
(5) Section 303(c) of such Act (45 U.S.C. 743(c)) is amended by
striking "and profitable railroads operating in the region" and
inserting in lieu thereof ", profitable railroads operating in the
region, States, and responsible persons".
(6) Paragraph (1)(A)(ii) of section 303(c) of such Act (45 U.S.C.
743(c)(1)(A)(ii)) is amended by inserting " State, or responsible
person" after "region,".
(7) Paragraph (3) of section 303(c) of such Act (45 U.S.C. 743(c)
(3)) is amended by inserting ", State, or responsible person" after
"region" and by inserting after "railroad" each time it appears therein
(except the first time) ", State, or responsible person".
(8) Paragraph (4) of section 303(c) of such Act (45 U.S.C. 743(c)
(4)) is amended by inserting ", States, and responsible persons" after
"railroads".
(e) Section 303(c)(2) of such Act (45 U.S.C. 743(c)(2)) is amended by
(1) striking out "shall" in the clause preceding subparagraph (A)
thereof and inserting "may" in lieu thereof; (2) striking out the
semicolon at the end of subparagraph (A) thereof and inserting in lieu
thereof ", except that at least one share of series B preferred stock
and one certificate of value shall be allocated to each such railroad;";
and (3) amending subparagraph (C) thereof to read as follows:
"(C) enter a judgment against the Corporation if the judgment
would not endanger the viability or solvency of the Corporation.".
(f) Section 303(c) of such Act (45 U.S.C. 743(c)) is amended by
adding at the end thereof the following new paragraph:
"(5) Whenever the special court orders, pursuant to section 303(b)
(1) of this title, the transfer or conveyance to the Corporation or any
subsidiary thereof of rail properties designated under section 206 (c)(
1)(C) or (D) of this Act, // 45 USC 716. // to the National Railroad
Passenger Corporation, to a profitable railroad, or to a State, or
responsible person (including a government entity), the United States
shall pay any judgment entered against the Corporation with respect to
the conveyance of any such rail properties or against the National
Railroad Passenger Corporation, such profitable railroad, State, or
responsible person, plus interest thereon at such rate as is
constitutionally required. The United States may, in its discretion,
represent the Corporation or the National Railroad Passenger
Corporation, such profitable railroad, State or responsible person, in
any proceedings before the special court that could result in such a
judgment against the Corporation under paragraph (2) of this subsection
or against the National Railroad Passenger Corporation, such profitable
railroad, State or responsible person, under paragraph (3) of this
subsection. The Corporation, the National Railroad Passenger
Corporation, any profitable railroad, State, or responsible person,
which is represented by the United States of America shall cooperate
diligently in whatever manner the United States shall reasonably request
of it in connection with such proceedings. Neither the Corporation, or
its subsidiaries, nor the National Railroad Passenger Corporation, any
profitable railroad, State or responsible person, shall be obligated to
reimburse the United States for any moneys paid by the United States
pursuant to this section.".
(g) Section 303(d) of such Act (45 U.S.C. 743(d)) is amended by (1)
striking out "5" and inserting in lieu thereof "20".
(h) Section 303(c)(4) of such Act (45 U.S.C. 743(c)(4)) is amended by
(1) striking out "subsection (b)" and inserting in lieu thereof
"subsection (a)"; and (2) insertting after "region" the following:
"and to persons leased, operated, or controlled by such railroads who so
transferred or conveyed rail properties".
(i) Section 303 of such Act (45 U.S.C. 743) is amended by (1) adding
", certificates of value" after "securities" in subsection (c)(1) (A)(
i) thereof, in the preamble of subsection (c)(2) and in subsection (c)(
2) thereof, and in subsection (c)(3) thereof; (2) adding "and
certificates of value" after "of the Corporation" in subsection (c)(2)(
A) thereof and after " Corporation's securities" in subsection (c)(2)
(B) thereof; (3) striking out "obligations of the Association" each
place the phrase appears and inserting in lieu thereof "certificates of
calue issued by the Association"; and (4) striking out "obligations"
each place it appears other than as part of such phrase and inserting in
lieu thereof "certificates of value".
(j)(1) Section 301(a) of such Act (45 U.S.C. 741(a)) is amended by
inserting immediately after " Corporation" the following: "or such
other corporate name as may be duly adopted by the Corporation".
(2) Section 201(k) of such Act (45 U.S.C. 711(k)), as redesignated by
section 603(a) of this Act, is amended (A) by striking out "these
provisions" in the third sentence thereof and inserting in lieu thereof
"this provision"; (B) by striking out "or the Corporation" each place
it appears in the third and fourth sentences thereof; and (C) by
striking out the second sentence thereof.
(3) Section 301(b) of such Act (45 U.S.C. 741(b)) is amended in the
third sentence thereof by inserting immediately after "of the
Corporation" the following: "or of its principal railroad operating
subsidiary".
(k) Section 303(b)(4) of such Act (45 U.S.C. 743(b)(4)) is amended by
inserting immediately after "is made assumes" the following: "all
future liability under such lease and".
(l) Section 303(b) of such Act (45 U.S.C. 743(b)) is amended by
inserting at the end thereof the following two new paragraphs:
"(5) Notwithstanding any covenant, undertaking, condition, or
provision of any sort in any lease, agreement, or contract, the
conveyance, transfer, assignment, or other disposition of such lease,
agreement, of contract or of any interest therein to, or the assumption
by, the Corporation or any subsidiary thereof, or a profitable railroad
of obligations thereunder, shall not be deemed a breach, an event of
default, or a violation of any covenant of such lease, agreement, or
contract.
"(6) Notwithstanding anything to the contrary contained in this Act
or any other provision of law, the special court shall include in its
order such further directions as may be necessary to assure (A) that the
operation and administration of the employee pension benefit plans
described in section 505(a) of this Act // 45 USC 775. // shall be
continued, without termination or interruption, by the Corporation until
such time as the Corporation elects to amend or terminate any such plan,
in whole or in part; and (B) that appropriate transfers and assignments
with respect to all rights and obligations relating to such plans shall
be made to the Corporation for such purposes, without prejudice to
payment of consideration for whatever rights any railroad in
reorganization may have in any residual assets under any such employee
pension benefit plan. No court shall enter any judgment against the
Corporation with respect to any such rights, except that the special
court may enter such a judgment in an order issued by it pursuant to
subsection (c) of this section, after taking into consideration the
rights and obligations transferred pursuant to this paragraph. All
liabilities as an employer shall be imposed solely upon the railroad in
reorganization in the event such plan is terminated, in whole or in
part, by the Corporation within 1 year after the date of such transfer
or assignment (except liabilities as an employer under the Employee
Retirement Income Security Act of 1974 // 29 USC 1001 // for benefits
accruing during such period).".
(m) Section 301 of such Act (45 U.S.C. 741) is amended by adding at
the end thereof the following two new subsections:
"(h) Liability of Directors.--No director of the Corporation shall be
liable, for money damages or otherwise, to any party by reason of the
fact that such person is or was a director, if, with respect to the
subject matter of the action, suit, or proceeding, such person was
fulfilling a duty which he in good faith reasonably believed to be
required by law or vested in him in his capacity as a director of the
Corporation or as an officer of the United States. The United States
shall indemnify such person against all judgments, amounts paid in
settlement, and costs and expenses (including fees of accountants,
experts, and attorneys), actually and reasonably incurred in connection
with any such action, suit, or proceeding in which such person is
determined to have met such standard of conduct. This subsection shall
not be construed to grant any immunity from any criminal law of the
United States.
"(i) Corporate Simplification.--In the interest of corporate
simplification, the Corporation, in implementing the final system plan,
shall undertake, as soon as possible and pursuant to financial
assistance provided by the Railroad Revitalization and Regulatory Reform
Act of 1976, to acquire all interests in rail lines and related rail
properties otherwise conveyed to the Corporation, upon the tender of
such interests to it, so as to eliminate any remaining intermediate
layers of ownership or interest, such as leaseholds, owned or held by
persons who are neither a railroad, a railroad in reorganization, nor
controlled by a railroad in reorganization. Any option conditions
regarding the purchase price for such interests, in existence since
prior to January 2, 1974, shall be deemed to be conclusive of fair and
equitable value.".
(n) Section 303(c)(3) of such Act (45 U.S.C. 743(c)(3)) is amended by
adding at the end thereof the following: " The special court shall also
find the amount of the payments, if any, which each profitable railroad
has made on behalf of a transferor railroad in reorganization in
accordance with section 211(h) of this Act, for which payment the
profitable railroad has not been reimbursed, as provided in section
211(h). Notwithstanding any other provision of this paragraph or of
paragraph (4), the special court shall order the return to any such
profitable railroad from compensation deposited by such profitable
railroad pursuant to section 303(a)(2), of any such amount so found
together with interest at the rate provided in section 211(h).".
(o) Section 303(b)(1) of such Act (45 U.S.C. 743(b)(1)) is amended by
striking out "railroad leased" and inserting in lieu thereof "person
leased".
(p) Section 303(b)(1) of such Act (45 U.S.C. 743(b)(1)) is amended by
adding at the end thereof the following: " In any case where the
special court orders the trustee or trustees of a railroad in
reorganization in the region to execute and deliver deeds or other
instruments conveying rail properties tothe Corporation or a subsidiary
thereof or to a profitable railroad operating in the region or a State
or responsible person, those deeds or other instruments may be executed,
acknowledged, and delivered on behalf of the trustee or trustees by any
person or persons who have been duly authorized to perform such acts on
behalf of the trustee or trustees by the district court of the United
States or any other court having jurisdiction over the respective
railroad in reorganization in the region. Notwithstanding any provision
of State or local law, in any case where deeds or other instruments have
been executed, acknowledged, or delivered by a representative of the
trustee or trustees of a railroad in reorganization in the region in
accordance with the previous sentence, such execution, acknowledgment,
and delivery, and the deeds or other instruments to which they pertain,
shall have the same legal effect as they would have had if the trustee
or trustees had themselves executed, acknowledged and delivered such
deeds or other instruments.".
(q)(1) Section 303(c)(1)(A)(i) of such Act is amended by inserting
after "exchange" the second time it appears the following: "(taking
into consideration compensable unconstitutional erosion, if any, which
the special court finds to have occurred in the estate of each such
railroad, during the bankruptcy proceeding with respect to such
railroad)".
(2) Section 303(c)(1)(A)(ii) of such Act (45 U.S.C. 743(c)(1) (A)(
ii)) is amended by inserting immediately after "region," the following:
"in exchange for compensation and other benefits accruing to such
transferor as a result of such exchange (taking into consideration
compensable unconstitutional erosion, if any, which the special court
finds to have occurred in the estate of each such railroad, during the
bankruptcy proceeding with respect to such railroad)".
(3) Section 303(c)(2) of such Act (45 U.S.C. 743(c)(2)) is amended by
inserting immediately after "reorganization" the second time it appears
the following: "(taking into consideration compensable unconstitutional
erosion, if any, which the special court finds to have occurred in the
estate of each such railroad, during the bankruptcy proceeding with
respect to such railroad)".
(4) Section 303(c)(3) of such Act (45 U.S.C. 743(c)(3)) is amended by
adding at the end thereof the following new sentence: " In making any
finding under this paragraph, the special court shall take into
consideration compensable unconstitutional erosion, if any, which it
finds to have occurred in the estate of a railroad in reorganization in
the region, or of a railroad leased, operated, or controlled by such a
railroad, during the bankruptcy proceeding with respect to such
railroad.".
Sec. 613. Section 501 of such Act (45 U.S.C. 771) is amended--,
(1) in paragraphs (1) and (6) thereof, by inserting immediately
after " Corporation" each place it appears the following: "or a
subsidiary thereof";
(2) in paragraph (2) thereof (A) by inserting immediately after
" Corporation" the following: "or a subsidiary thereof, to the
National Railroad Passenger Corporation,"; and (B) by striking
out "except a president," and inserting in lieu thereof "(except a
Class I railroad which is not wholly owned, operated, or leased by
a railroad in reorganization but is controlled by a railroad in
reorganization), but does not include a president,";
(3) by amending paragraph (3) thereof to read as follows:
"(3) 'protected employee' means any employee of--,
// 45 USC 716. //
who, in any such case, has not reached age 65 on the effective
date of this Act;"
(4) amending paragraph (8) thereof by (A) striking out "this
Act or" and inserting in lieu thereof "this Act, including section
305 thereof, or", and (B) striking out "and" at the end of such
paragraph;
(5) striking out the period at the end of paragraph (9) thereof
and inserting in lieu thereof "; and"; and
(6) adding at the end thereof the following new paragraph:
"(10) 'selling railroad' means a railroad which sells rail
properties pursuant to an offer designated under section 206(c)(
2) of this Act.".
Sec. 614. (a) Section 502(b) of such act (45 U.S.C. 772(b)) is
amended to read as follows:
"(b) Mandatory Offer.--The Corporation shall offer employment, to be
effective as of the date of a conveyance or discontinuance of service
under the provisions of this Act, to each employee of a railroad in
reorganization in the region who has not already accepted an offer of
employment by the Association (where applicable), an acquiring railroad,
or the Corporation. Such offers of employment to employees represented
by labor organizations shall be confined to their same craft and class.
The Corporation shall apply to such employees the protective provisions
of this title.".
(b) Section 502(a) of such Act (45 U.S.C. 772(a)) is amended by
adding at the end thereof the following new sentence: " As used in this
subsection, the term 'where applicable' refers to the relation of the
Association, as an employer (A) to employees of the Association who,
before the date of conveyance, under section 303(b)(1) of this Act, //
45 USC 743. // had creditable service under the relevant statute and
who were offered and accepted coverage under such statute, and (B) to
former employees of railroads in reorganization in the region, after the
date of such conveyance.".
Sec. 615. Section 504 of such Act (45 U.S.C. 774) is amended by
adding at the end thereof the following three new subsections:
"(e) Liability for Employee Claims.--In all cases of claims by
employees, arising under the collective bargaining agreements of the
railroads in reotganization in the region, and subject to section 3 of
the Railway Labor Act (45 U.S.C. 153), the Corporation, the National
Railroad Passenger Corporation, or an acquiring carrier, as the case may
be, shall assume responsibility for the processing of any such claims,
and payment of those which are sustained or settled on or subsequent to
the date of conveyance, under section 303(b)(1) of this Act, and shall
be entitled to direct reimbursement from the Association pursuant to
section 211(h) of this Act. In those cases in which claims for
employees were sustained or settled prior to such date of conveyance, it
shall be the obligation of the employees to seek satisfication against
the estat Es of the railroads in reorganization which were their former
employers.
"(f) Transfer of Employees to the Mational Railroad Passenger
Corporation of Acquiring Railroads.--Notwithstanding any otherwise
applicable provisions of this title, protected employees to whom the
Corporation has made offers of employment may be transferred to the
National Railroad Passenger Corporation in accordance with the following
procedure:
"(1) Not later than 90 days after the date of completion of the
transaction required by section 206(c) of this Act
// 45 USC 716. //
implementing agreement negotiations between representatives of the
various crafts or classes of employees associated with the
involved properties, the Corporation, and the National Railroad
Passenger Corporation shall commence. These negotiations shall--,
If no agreement regarding the matters referred to in this
subsection is reached by the end of 60 days after the date of
commencement of negotiations (which shall also be a date which is
at least 90 days after the transaction contemplated by section
601(d) of this Act).
// 45 USC 791. //
upon notice of any party, all parties thereto shall within an
additional 10 days select a neutral referee. If such parties are
unable to agree upon the selection of such a referee, the National
Mediation Board shall promptly appoint a referee. Hearings shall
commence not later than 30 days after the date of selection or
appointment of such referee, and a decision shall be rendered by
such referee within 60 days after the date of commencement of the
hearings. The referee shall resolve and decide all matters in
dispute regarding the negotiation of the implementing agreement or
agreements. All parties may participate, but the referee shall
have the only vote. The referee's decision shall be final and
binding and shall constitute the implementing agreement or
agreements between the parties. The salary and expenses of the
referee shall be paid pursuant to the provisions of the Railway
Labor Act.
// 45 USC 151 //
"(2) Prior to implementation of an agreement or agreements
pursuant to paragraph (1) of this subsection, the representatives
of the various crafts or classes of employees designated to be
transferred to the National Railroad Passenger Corporation shall
meet with representatives of the National Railroad Passenger
Corporation for the purposes of negotiating agreements regarding
rates of pay, rules, and working conditions. If, 60 days after
the date of commencement of such negotiations, no agreement has
been reached, the bargaining agreement in existence on the rail
properties from which the employees are to be transferred and
which is applicable to the craft or class of employees being
transferred will apply and such implementing agreement will be put
into effect.
"(3) An employee of the Corporation who is entitled to
protection and who is transferred as a result of an acquisition
pursuant to this Act shall upon transfer to the National Railroad
Passenger Corporation or to an acquiring railroad, carry with him
his protected status. The National Railroad Passenger Corporation
or an acquiring railroad, as new employers, shall be responsible
for payment of protective benefits and shall be entitled to
reimbursement pursuant to section 509 of this title.
"(4) The National Railroad Passenger Corporation may prior to
completion of any of the agreements referred to in this section,
offer employment to any noncontract employee. Noncontract
employees accepting employment with the National Railroad
Passenger Corporation shall carry with them all rights and
benefits accorded to them under this title.
"(g) Assumption of Personal Injury Claims.--All cases or claims by
employees or their personal representatives for personal injuries or
death against a railroad in reorganization in the region arising prior
to the date of conveyance of rail properties, pursuant to section 303 of
this Act // 45 USC 743. // shall be assumed by the Corporation or an
acquiring railroad, as the case may be. The Corporation or the
acquiring railroad shall process and pay any such claims that are
sustained or settled, and shall be entitled to direct reimbursement from
the Association pursuant to section 211(h) of this Act.".
Sec. 616. (a) Section 505(a) of such Act (45 U.s.c. 775(a)) is
amended by striking out the period at the end thereof and inserting in
lieu thereof the following: ", including benefits under any employee
pension benefit plan in effect on December 1, 1975, other than a plan
maintained primarily for the purpose of providing deferred compensation
for a select group of management personnel or other highly compensated
employees. For purposes of protecting employee pension benefits under
this title, the term 'protected employee whose employment is governed by
a collective-bargaining agreement' includes any beneficiary of, and any
participant in, such plan, including noncontract employees. The
protected benefits of such beneficiary or participant, accrued as of the
date of conveyance, may be limited to the amount guaranteed under
terminated plans pursuant to title IV of the Employee Retirement Income
Security Act of 1974 // 29 USC 1301 // Pension benefits shall not be
paid to any beneficiary of a terminated plan whose benefits are
guaranteed by such Act.".
(b) Section 505(b)(1) of such Act (45 U.S.C. 775(b)(1)) is amended by
striking out "the last 12 months immediately prior to his being
adversely affected" and inserting in lieu thereof "the 12 full calendar
months immediately preceding February 26, 1975, or in the case of a
supplementary transaction, the 12 full calendar months immediately
preceding the effective date of such transaction".
(c) Section 505(b)(3) of such Act (45 U.S.C. 775(b)(3)) is amended by
striking out "his being adversely affected" and inserting in lieu
thereof " February 26, 1975, or the effective date of the supplemental
transaction, as the case may be".
(d) Section 505(b) of such Act (45 U.S.C. 775) is amended by (1)
redesignating paragraph (4) thereof as paragraph (5) thereof and (2)
inserting a new paragraph (4) therein as follows:
"(4) If a noncontract employee exercises seniority rights in a
craft or class of employees protected under this Act, then, during
the period such seniority is exercised, such noncontract employee
shall be entitled to the same protection offered under this Act to
employees in the craft or class in which such seniority is
exercised. However, in computing the monthly displacement
allowance, the last 12 months prior to February 26, 1975, during
which such noncontract employee performed service under a
collective collective-bargaining agreement, shall be used.".
(e) Section 505(f) of such Act (45 U.S.C. 775(f)) is amended to read
as follows:
"(f) Termination Allowance.--The Corporation may terminate the
employment of an employee of a railroad in reorganization who has less
than 3 years' service with such railroad, as of the date of enactment of
this Act. The Corporation's right to terminate an employee must be
exercised within a period of 1 year from the date of conveyance,
pursuant to section 303 of this Act. // 45 USC 743. // Upon
notification to the employee of the Corporation's intent to terminate
his services, the employee shall have the option of accepting the
termination allowance or of accepting a voluntary furlough without pay.
If the employee entitled to receive a lump sum separation allowance
accepts such an allowance, the amount shall be determined as follows: 2
to 3 years' service 180 days' pay at the rate of the position
last held.
1 to 2 years' service 90 days' pay at the rate of the postion
last held.
Less than 1 year's service 5 days' pay at the rate of the position
last held for each month of service.".
(f) Section 505(h) of such Act (45 U.S.C. 775(h)) is amended by
adding at the end thereof the followin new sentence: " Provisions of
this title shall be applied, upon a conveyance or discontinuance of
service, to employees who are otherwise entitled to protective benefits
and who were placed in furlough status on or after February 26, 1975.".
(g) Section 505 of such Act (45 U.S.C. 775) is amended by adding at
the end thereof the following new subsection:
"(i) Noncontract Employees.--Compensation, severance, termination,
and moving expense benefits for employees not governed by a
collective-bargaining agreement shall be consistent with subsections
(b), (c), (e), (f), and (g) of this section and shall be in accordance
with the following provisions:
"(1) A protected employee, whose wmployment is not governed by
the terms of a collective-bargaining agreement, may be required by
the Corporation, upon reasonable notice, to transfer to any
position on the Corporation's system. If such transfer requires a
change in residence, the employee may either voluntarily suspend
his employment at his home location in lieu of protective
benefits, or he may sever his employment and receive a benefit
computed in accordance with subsection (e) or (f) of this section.
These provisions supersede all provisions or conditions in
subsection (d) of this section.
"(2) If any dispute arises between the Corporation and a
noncontract employee regarding the interpretation or application
of any provision of this title, the Corporation shall establish a
resolution procedure with arbitration as the final step. Either
party may request arbitration, and the cost and expenses of such
arbitration shall be shared equally by the parties.".
(h) Section 509 of such Act (45 U.S.C. 779) is amended to read as
follows:
" Sec. 509. The Corporation, the Association (where applicable), and
acquiring railroads, as the case may be, shall be responsible for the
actual payment of all allowances, expenses, and costs provided protected
employees pursuant to the provisions of this title. The Corporation,
the Association (where applicable), and acquiring railroads shall then
be reimbursed for the actual amounts paid to, or for the benefit of,
protected employees, pursuant to the provisions of this title, other
than provisions with respect to employee pension benefits, not to exceed
the aggregate sum of $250,000,000, by the Railroad Retirement Board,
upon certification to such Board, by the Corporation, the Association
(where applicable), and acquiring railroads, of the amounts paid such
employees. Such reimbursement shall be made from a separate account
maintained in the Treasury of the United States to be known as the
Regional Rail Transportation Protective Account. Neither the Regional
Rail Transportation Protective Account nor the Corporation nor an
acquiring railroad shall be charged for any amounts of benefits paid to
a protected employee under the provisions of the Railroad Unemployment
Insurance Act // 45 USC 367. // or any other income protection law or
regulation. There is authorized to be appropriated to the Regional Rail
Transportation Protective Account annually such sums as may be required
to meet the obligations payable hereunder, not to exceed the aggregate
sum of $250,000,000. There is further authorized to be appropriated to
the Railroad Retirement Board annually such sums as may be necessary to
provide for additional administrative expenses to be incurred by the
Board in the performance of its functions under this section.".
Sec. 617. Section 508 of such Act (45 U.S.C. 778) is amended to read
as follows:
" Sec. 508. (a) Acquiring Railroads.--(1) An acquiring railroad
shall offer such employment, subject to such rules and working
conditions, and afford such employment protection to employees of a
railroad from which it acquires properties or facilities (including
operating rights) pursuant to this Act, and shall afford such protection
to its own employees who are adversely affected by such acquisition, as
shall be agreed upon between such acquiring railroad and the
representatives of such employees prior to such acquisition, except that
the protection and benefits (except as to rules and working conditions)
provided for protected employees in such agreements shall be the same as
those specified in section 505 of this title. // 45 USC 775. // Unless
and until such agreements are reached, the acquiring railroad shall not
enter into purchase agreements pursuant to section 206(d)(4) of this
Act. // 45 USC 716. // For purposes of this subsection, the National
Railroad Passenger Corporation shall be deemed to be an acquiring
railroad, with respect to employees described in section 501(3) of this
title. // 45 USC 771. //
"(2) If the National Railroad Passenger Corporation acquires rail
properties of a railroad in reorganization in the region, prior to the
date of conveyance of rail properties to the Corporation pursuant to
section 303(b)(1) of this Act // 45 USC 743. // but after the
publication of the preliminary system plan, it shall offer such
employment and afford such employment protection to employees of a
railroad from which it acquires rail properties and shall further
protect its own employees who may be adversely affected by such
acquisition, as shall be agreed upon between the National Railroad
Passenger Corporation and the representatives of such employees prior to
such acquisitions. The protection and benefits provided for employees
in such agreements shall be the same as those specified in section 505
of this title, and such protection and benefits shall supersede
conflicting provisions in any previously applicable job stabilization
agreements or agreements implementing such stabilization agreements, and
the National Railroad Passenger Corporation shall be reimbursed for
expenses incurred as a result of any such acquisition, as provided in
section 509 of this title.
"(b) Selling Railroads.--A selling railroad shall offer such
employment and shall provide such employment protection to each of its
employees who are adversely affected by such sale, pursuant to
agreements to be entered into between it and the representatives of such
employees prior to said sale: Provided, That (1) the protection and
benefits provided for protected employees in such agreements shall be
the same as those specified in section 505 of this title, and (2) unless
and until such agreements are reached, the selling railroad shall not
enter into selling agreements pursuant to section 206(d) of this Act.".
Sec. 618. (a) Section 601(a)(2) of such Act (45 U.S.C. 791(a)(2)) is
amended by adding immediately before the period at the end thereof the
following: "and with respect to any action taken to formulate or
implement any supplemental transaction".
(b) Section 604(b) of such Act (45 U.S.C. 791(b)) is amended to read
as follows:
"(b) Commerce, Securities, and Bankruptcy.--(1) The provisions of the
Interstate Commerce Act (49 U.S.C. 1 et seq.) and the Bankruptcy Act //
11 USC 1 // (11 U.S.C. 205 et seq.) are inapplicable (A) to actions
taken under this Act to formulate and implement the final system plan
where such action was in compliance with the requirements of such plan,
and (B) to actions taken under this Act to formulate or implement any
supplemental transaction.
"(2) All securities of the Corporation which are issued to the
Association as the initial holder, or which are issued in connection
with the transfer to the Corporation or a subsidiary thereof of rail
properties under this Act, shall be deemed for all purposes to have been
issued subject to and authorized pursuant to section 20a of the
Interstate Commerce Act (49 U.S.C. 20a).
"(3) The provisions of section 5 of the Securities Act of 1933 (15
U.S.C. 77e), shall not apply to transactions involving the issuance of
any security of the Corporation to the Association, transactions
involving the issuance of any security of the Corporation that is
deposited with the special court pursuant to section 303(a) of this Act,
// 45 USC 743. // or transactions involving the issuance or
distribution of any security of the Corporation, where the terms and
conditions of such issuance or distribution are approved by the special
court pursuant to section 303(c) of this Act.
"(4) The powers and duties of the Commission under section 77 of the
Bankruptcy Act (11 U.S.C. 205), with respect to a railroad in
reorganization in the region which coveys all or substantially all of
its designated rail properties to the Corporation or a subsidiary
thereof, or to profitable railroads in the region, pursuant to the final
system plan, and the requirement that plans of reorganization be filed
with the Commission, shall cease upon the date of such conveyance. The
powers and duties of the Commission under section 77 of the Bankruptcy
Act shall so terminate, as of the date of enactment of this paragraph,
with respect to any railroad in reorganization under such xection 77 but
not subject to this Act which (1) does not operate any line of railroad,
and (2) has transferred all or substantially all of its rail properties
to a railroad in reorganization in the region which was subject to this
Act prior to the date of enactment of this paragraph. Thereafter, such
powers and duties of the Commission shall be vested in the district
court of the United States which has jurisdiction of the estate of any
such railroad in reorganization at the time of such conveyance. Such
court shall proceed to reorganize or liquidate such railroad in
reorganization pursuant to such section 77 on such terms as the court
deems just and reasonable, or pursuant to any other provisions of the
Bankruptcy Act, if the court finds that such action would be in the best
interest of such estate. This paragraph does not affect any obligation
of any carrier by railroad subject to regulation under the Interstate
Commerce Act. The powers and duties of the Commission under section 77
of the Bankruptcy Act shall continue in effect only to the extent that
the railroad in reorganization continues to operate any line of
railroad.".
(c) Section 601(c) of such Act (45 U.S.C. 791(c)) is amended to read
as follows:
"(c) Environment.--The provisions of section 102(2)(C) of the
National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) shall
not apply with respect to any action taken under authority of this Act
before, and including, the conveyance of rail properties ordered by the
special court under section 303(b)(1) of this Act, and shall not apply
thereafter to any action taken in compliance with the requirements of
the final system plan.".
Sec. 619. Nothing is in this title shall affect the application of
the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.)
// 45 USC 791 note. // to actions of the Commission.
Sec. 701. // 45 USC 851. // (a) General.--To carry out the purposes
of this title, the Rail Passengers Service Act, // 45 USC 501 note. //
and the Regional Rail Reorganiaztion Act of 1973, // 45 USC 701 note.
// the National Railroad Passenger Corporation is authorized to--,
(1) acquire by purchase, lease, exchange, gift, or otherwise,
and to hold, maintain, sell, lease or otherwise dispose of, any
real or personal property or interest therin which is necessary or
useful in establishing and maintaining improved high-speed rail
services, as specified in section 703 of this title;
(2) enter into and implement such contracts and agreements as
are necessary or appropriate in the conduct of its functions;
(3) provide for the continuous operation and maintenance of
rail freight, intercity rail passenger, and commuter rail
passenger service over the properties acquired pursuant to this
section: Provided, That any provision of rail freight or rail
commuter service shall be effectuated by a compensatory contract
with the responsible carrier;
(4) improve railroad rights-of-way between Boston,
Massachusetts, and Washington, District of Columbia (including at
its option, the route through Springfield, Massachusetts, and
routes to Harrisburg, Pennsylvania, and Albany, New York, from the
Northeast Corridor main line) to enable improved highspeed rail
passenger service to be provided between Boston, Massachusetts,
and Washington, District of Columbia, and intermediate intercity
markets, in accordance with the goals set forth in section 703 of
this title;
(5) acquire, construct, improve, and install passenger
stations; communicatons, electric power, and other facilities and
equipment; public and private highway and pedestrian crossings;
other safety facilities or equipment; and any other facilities or
equipment which it determines are necessary to enable improved
high-speed rail passenger service to be provided over the railroad
rights-of-way to be improved under paragraph (4) of this
subsection;
(6) enter into agreements with other railroads, other carriers,
and commuter agencies, for the purpose of granting, acquiring, or
entering into trackage rights, contract services, and other
appropriate arrangements for freight and commuter services over
the rights-of-way acquired under this title, with such agreement
to be on such terms and conditions as are necessary to
reimbursement for costs on an equitable and fair fasis, except
that cross subsidization among intercity, commuter, or rail
freight services is prohibited;
(7) appoint a qualified individual to serve as the General
Manager of the Northeast Corridor improvement project; and
(8) enter into agreements with telecommunications common
carriers on a basis which is consistent with, and subject to, the
Communications Act of 1934,
// 47 USC 609. //
for the purpose of continuing existing, and creating new and
improved, rail passenger radio mobile telephone service in the
high-speed rail passenger service area specified in section 703(
1) of this title.
(b) Transfer of Rail Properties.--The Corporation, on the date of
conveyance pursuant to section 303(b)(1) of the Regional Rail
Reorganization Act of 1973 (45 U.S.C. 743), shall, by purchase or lease,
transfer to the National Railroad Passenger Corporation all rail
properties designated pursuant to sections 206(c)(1)(C) and 601(d) of
the Regional Rail Reorganization Act of 1973 (45 U.S.C. 716(c) (1)(C)
and 791 (d)), and it shall, within 180 days after the date of enactment
of this title, execute agreements providing for the National Railroad
Passenger Corporation to assume (1) all operational responsibility for
intercity rail passerger services with respect to such properties, and
(2) control and maintenance of the properties transferred. Such parties
may agree to retaining or transferring, in whole or in part, operational
responsibility for rail freight or commuter rail services in the area
specified.
(c) Definition.--As used in this title, the term " Northeast
Corridor" means the States of Massachesetts, Rhode Island, Connecticut,
New York, New Jersey, Pennsylvania, Delaware, and Maryland, and the
District of Columbia.
Sec. 702. // 45 USC 852. // (a) Establishment.--There is established
an entity which shall be representative of the various users of
Northeast Corridor rail transportation facilities, to be known as the
Operations Review Panel (hereafter in this section referred to as the "
Panel"). The Panel shall have the authority to take such actions as are
necessary to resolve differences of opinion concerning operations (among
or between the National Railroad Passenger Corporation, other railroads,
and State, local, and regional agencies responsible for the provision of
commuter rail, rapid rail, or rail freight services), with respect to
all matters except those conferred on the Commission in section 402(a)
of the Rail PASSENGER Service Act (45 U.S.C. 562(a).
(b) Membership.--The Panel shall consist of 5 members, as follows:
(1) one member who shall be selected by the chief executive
officer of the National Railroad Passenger Corporation;
(2) one member who shall be selected by majority vote of the
commuter rail authorities which are subject to the jurisdiction of
the Panel;
(3) one member who shall be selected by the chief executive
officer of the Corporation; and
(4) two neutral members who shall be selected by the Chairman
of the National Mediation Board.
The members shall each serve a term of 4 years from the date of such
selection, or until a successor has been selected. If, within 45 days
after the date of enactment of this Act, the National Railroad Passenger
Corporation, the commuter authorities, or the Corporation fails to
select the member who it is authorized to select under this subsection,
the Chairman of the National Mediation Board shall, within 30 days after
the expiraton of such 45-day period, appoint a member on behalf of such
party. Any member so appointed shall serve until such time as the party
so represented selects a successor.
(c) Decisions and Review.--All decisions of the Panel shall be final
and binding on the parties. All costs and expenses of the Panel shall
be paid by (1) the National Railroad Passenger Corporation, (2) the
commuter rail authorities which are subject to such Panel, and (3) the
Corporation, each of which shall pay one-third of such costs and
expenses, unless otherwise determined by a majority of the members of
such Panel. The Panel may adopt such rules of procedure and may employ
such resources as it considers appropriate. It may issue preliminary
and final orders, which shall have the force and effect of law, with
respect to any difference of opinion concerning any operational matter
which is the subject of such an order. No order of the Panel shall be
subject to review by any court. Upon petition by any party subject to
the Panel, the United States District Court for the District of Columbia
shall enforce any final order issued by the Panel.
Sec. 703. // 45 USC 853. // The Northeast Corridor improvement
project shall be implemented by the Secretary in order to achieve the
following goals:
(1) Intercity Rail Passenger Services.--(A) (i) Within 5 years
after the date of enactment of this Act, the establishment of
regularly scheduled and dependable intercity rail passenger
service between Boston, Massachusetts, and New York, New York,
operating on a 3-hour-and-40-minute schedule, including
appropriate intermediate stops; and regularly scheduled and
dependable intercity rail passenger service between New York, New
York, and Washington, District of Columbia, operating on a
2-hour-and-40-minute schedule, including appropriate intermediate
stops.
(ii) Improvements in facilities in accordance with route
criteria approved by the Congress, on routes to Harrisburg,
Pennsylvania, and Albany, New York, from the Northeast Corridor
main line, and from Springfield, Massachusetts, to Boston,
Massachusetts, and New Haven, Connecticut, in order ot facilitate
compatibility with improved high-speed rail service operated on
the Northeast Corridor main line.
(B) The improvement of nonoperational portions of stations (as
determined by the Secretary in consultation with the National
Railroad Passenger Corporation) used in intercity rail passenger
service and of related facilities and fencing. Fifty percent of
the cost of such improvements shall be borne by States (or local
or regional transportation authorities), except that the Secretary
may, in his sole discretion, fund entirely any safety-related
improvement.
(C) The improvements required by HIS section shall be
accomplished in a manner which is compatible with the
accomplishment in the future of additional improvements in service
levels, and which will produce the maximum labor benefit in terms
of hiring persons who are presently unemployed.
(D) The submission by the Secretary and the National Railroad
Passenger Corporation to the Congress of annual reports on
progress achieved and work in progress and planned (including the
need for furture improvements) with respect to the completion of
this program, including an up-to-date accounting of intercity
passenger ridership, revenues from such ridership, expenses, and
on-time dependability of intercity passenger trains in the North
Ast Corridor.
(E) Within 2 years after the date of enactment of this Act, the
submission by the Secretary to the Congress of a report on the
financial and operating results of the intercity rail passenger
service established under this section, on the rail freight
service improved and maintained pursuant to this section, and on
the practicability, considering engineering and financial
feasibility and market demand, of the establishment of regularly
scheduled and dependable intercity rail passenger service between
Boston, Massachusetts, and New York, New York, operating on a
3-hour schedule, including appropriate intermediate stops, and
regularly scheduled and dependable intercity rail passenger
service between New York, New York, and Washington, District of
Columbia, operating on a 2-1/2 hour schedule, including
appropriate intermediate stops. Such report shall include a full
and complete accounting of the need for improvements in intercity
passenger transportation within the Northeast Corridor and a full
accounting of the public costs and benefits of imporving various
modes of transportation to meet those needs. If such report shows
(i) that further improvements are needed in intercity passenger
transportation in the Northeast Corridor, and (ii) that
improvements (in addition to those required by subparagraph (A)
(i) of this paragraph) in the rail system in such area would
return the most public benefits for the public costs involved, the
Secretary shall make appropriate recommedations to the Congress.
Within 6 years after the date of enactment of this Act, the
Secretary shall submit an updated comprehensive report on the
matters referred to in this subparagraph. Thereafter, if it is
practicable, the Secretary shall facilitate the establishment of
intercity rail passenger service in the Corridor which achieves
the service goals specified in this subparagraph.
(2) Rail Commuter Services, Rail Rapid Transit, and Local
Transportation.--To the extent compatible with the goals contained
in paragraph (1) of this section, the facilitation of improvements
in and usage of rail commuter services, rail rapid transit, and
local public transportation.
(3) Rail Freight Service.--The maintenance and improvement of
rail freight service to all users of rail freight service located
on or adjacent to the Northeast Corridor, to the extent compatible
with the goals contained in paragraphs (1) and (2) of this
section.
(4) Passenger Radio Telephone Service.--To the extent
compatible with the goals contained in paragraph (1) of this
section, the continuation of and improvement in passenger radio
telephone service aboard trains operated in high-speed rail
service between Washington, District of Columbia, and Boston,
Massachusetts. The President and relevant Federal agencies,
including the Federal Communications Commission, shall take such
actions as are necessary to achieve this goal, subject to the
provisions of the Communications Act of 1934 (47 U.S.C. 151 et
seq.), including necessary licensing, construction, operation, and
maintenance standards for the radio service, as determined by the
Federal Communications Commission to be in the public interest,
convenience, and necessity.
Sec. 704. // 45 USC 854. // (a) Authorization of Appropriations.--
There is authorized to be appropriated to the Secretary--,
(1) $1,600,000,000 to remain available until expended in order
to effectuate the goals of section 703(1) (A) (i) of this title
and after such goals have been achieved, the goals of section
703(1) (A) (ii);
(2) $150,000,000 to remain available until expended in order to
effectuate the goal of section 703(1)(B);
(3) for payment ot the National Railroad Passenger
Corporation--,
(b) Limitation.--No funds appropriated under this section or pursuant
to section 601 of the Rail Passenger Service Act // 44 USC 601. // may
be used to subsidize any operating losses of commuter rail or rail
freight services.
(c) Coordination.--The Secretary shall take all steps necessary to
coordinate all transportation programs related to the Northeast Corridor
to assure that all such programs are integrated and consistant with
implementation of the Northeast Corridor improvement project under this
title, including, if the Secretary finds any significant noncompliance
with the implementation of the goals of section 703 of this title, the
denial of funding to any noncomplying program until such noncompliance
is corrected.
(d) Emergency Maintenance Continuation.--After the conveyance of rail
properties, pursuant to section 303(b) of the Regional Rail
Reorganization Act of 1973 (45 U.S.C. 743(b)) and section 701(b) of this
title, not to exceed $25,000,000 of the funds appropriated pursuant to
Public Law 94 - 6 (89 Stat. 11) shall remain available to be utilized by
the Secretary for the purpose of performing emergency maintenance on the
rail properties designated in accordance with section 206 (c)(1)(C) of
the Regional Rail Reorganization Act of 1973 (45 U.S.C. 716 (c)(1)(C)).
Sec. 705. (a) Section 402(a) of the Rail Passenger Service Act (45
U.S.C. 562(a)) is amended by adding at the end thereof the following
three new sentences: " Notwithstanding any other provision of this Act,
the Corporation may enter into agreements with any other railroads and
with any State (or local or regional transportation agency) responsible
for providing commuter rail or rail freight services over tracks,
rights-of-way, and other facilities acquired by the Corporation pursuant
to authority granted by the Regional Rail Reorganization Act of 1973 //
45 USC 701 note. // and the Railroad Revitalization and Regulatory
Reform Act of 1976. In the event of a failure to agree, the Commission
shall order that rail services continue to be provided, and it shall,
consistent with equitable and fair compensation principles, decide,
within 180 days after the date of submission of a dispute to the
Commission, the proper amount of compensation for the provision of such
services. The Commission, in making such a determination, shall
consider all relevant factors, and shall not permit cross subsidization
among intercity, commuter, and rail freight services."
(b) Section 601(d)(1) of the Regional Rail Reorganization Act of 1973
(45 U.S.C. 791(d)(1)) is amended to read as follows:
"(d) Northeast Corridor.--(1) Rail properties designated in
accordance with section 206(c)(1)(C) of this Act // 45 USC 716. //
shall be purchased or leased by the National Railroad Passenger
Corporation. The Corporation shall negotiate an appropriate sale or
lease agreement with the National Railroad Passenger Corporation for the
properties designated for transfer pursuant to section 206(c)(1)(C) fo
this Act (45 U.S.C. 716(c)(1)(C)), which shall take effect on the date
of conveyance of such properties to the Corporation.".
(c) Section 403(b) of the Rail Passenger Service Act (45 U.S.C. 563(
b)) is amended (1) by inserting "(1)" immediately after "(b)", and (2)
by striking out the second sentence thereof and inserting in lieu
thereof the following: " The Corporation shall institute such service
under an agreement if the State, regional, or local agency agrees to
reimburse the Corporation for 50 percent of total operating losses and
associated capital costs of such service if service can be provided with
the resources available to the Corporation and if it is consistent with
the following requirements:
"(A) The State or agency must make an adequate assurance to the
Corporation that it has sufficient resources to meet its share of
the costs of such service for the period such service is to be
provided under this section.
"(B) The State or agency has conducted a market analysis
acceptable to the Corporation to insure that there is adequate
demand to warrant such service.
An agreement made pursuant to this section may by mutual agreement be
renewed for one or more additional terms of not more than 2 years.
"(2) If more than one application is made for service and all
applications are consistent with the requirements of this subsection,
but all services applied for cannot be provided with the available
resources of the Corporation, the Board of Directors shall decide in its
discretion which application or applications best serve the public
interest and can be provided with the available resources of the
Corporation, except that a proposal for State support of a service
deleted from the basic system shall be given preference.
"(3) The Board of Directors shall establish the basis for determining
the total costs and the total revenue of the service provided pursuant
to this subsection.".
(d) Section 404(b)(4) of the Rail Passenger Service Act (45 U.S.C.
564(b)) is amended by striking out the first sentence thereof and
inserting in lieu thereof the following: " For purposes of paragraph
(3) of this subsection, the reasonable portion of such losses to be
assumed by the State, regional, or local agency shall be equal to 50
percent of the total operating losses and associated capital costs of
such services.".
(e) Section 306 of the Rail Passenger Service Act (45 U.S.C. 546) is
amended by adding at the end thereof the following new subsection:
"(i) The provisions of section 361 of the Public health Service Act
(42 U.S.C. 264) shall not apply to railroad conveyances operated in
intercity rail passenger service.".
(f) Section 303(a)(5) of the Rail Passenger Service Act (45 U.S.C.
543(a)(5)) is amended by (1) striking out "for each meeting of the board
he attends." and inserting in lieu thereof "per diem when engaged in the
actual performance of duteis.", and (2) inserting ", secretarial or
professional staff support which is reasonably required" immediately
after "necessary travel".
(g) Section 305(d)(1)(B) of the Rail Passenger Service Act (45 U.S.
C. 545(d)(1)(B) is amended by striking out "for the construction of
tracks or other facilities necessary to provide".
(h) Section 402(d)(1) of the Rail Passenger Service Act (45 U.S.C.
562(d)(1) is amended by striking out "the construction of tracks or
other facilities necessary to provide".
(i) Section 403(c) of the Rail Passenger Service Act (45 U.S.C. 563(
c)) is amended by adding the following sentence at the end thereof: "
After January 1, 1977, all route additions shall be in accordance with
the Criteria and Procedures for Making Route and Service Decisions
approved by the Congress pursuant to section 404(c)(3), and this
subsection shall no longer apply to route additions.".
Sec. 706. Section 4(i) of the Department of Transportation Act (49
U.S.C. 1653) is amended by--,
(1) redesignating paragraph (1)(C) thereof and all references
thereto as paragraph (1)(D) thereof;
(2) inserting immediately after paragraph (1)(B) thereof the
the following new subparagraph: "(C) acquiring and utilizing
space in suitable buildings of historic or architectural
significance, unless the use of such space would not prove
feasible and prudent compared with available alternatives;";
(3) redesignating paragraph (4), (5), (6), (7), (8), (9), and
(10) thereof as paragraphs (5), (6), (7), (8), (9), (10), and (11)
thereof, respectively;
(4) inserting after paragraph (3) thereof the following new
paragraph:
"(4) Acquisitions made for the purpose set forth in paragraph (1) (C)
of this subsection shall be made only after consultation with the
chairman of the National Endowment for the Arts and the Advisory Council
on Historic Preservation."; and
(5) amending paragraph (9) thereof, as redesignated by this
section, to read as follows:
"(9)(A) There is authorized to be appropriated for the purpose set
forth--,
"(i) in paragraphs (1)(A) and (1)(C) of this subsection, not to
exceed $15,000,000;
"(ii) in paragraphs (1)(B) of this subsection, not to exceed
$5,000,000; and
"(iii) in paragraph (1)(D) of this subsection, not to exceed
$5,000,000.
"(B) There shall be available to the National Endowment for the Arts,
from the sums available under subparagraphs (A)(ii) and (A)(iii) of this
paragraph, not to exceed $2,500,000 for planning pursuant to paragraph
(1)(D) of this subsection, and not to exceed $2,500,000 for interim
maintenance pursuant to paragraph (1)(B) of this subsection.
"(C) Sums appropriated for the purposes of this subsection are
authorized to remain available until expended.".
Sec. 801. (a) Section 1(18) of the Interstate Commerce Act (49 U.S.
C. 1(18)) is amended to read as follows:
"(18)(a) No carrier by railroad subject to this part shall--,
"(i) undertake the extension of any of its lines of railroad or
the construction of any additional line of railroad;
"(ii) acquire or operate any such extension or any such
additional line; or
"(iii) engage in transportation over, or by means of, any such
extended or additional line of railroad,
unless such extension of additional line of railroad is described in and
covered by a certificate which is issued by the Commission and which
declares that the present or future public convenience and necessity
require or will be enhanced by the construction and operation of such
extended or additional line of railroad. Upon receipt of an application
for such a certificate, the Commission shall (A) send a copy of the
application to the chief executive officer of each State that would be
directly affected by the construction or operation of such extended or
additional line, (B) send an accurate and understandable summary of such
application to a newspaper of general circulation in such affected area
or areas with a request that such information be made available to the
general public, (C) cause a copy of such summary to be published in the
Federal Register, (D) take such other steps as it deems reasonable and
effective to publicize such application, and (E) indicate in such
transmissions and publications that each interested person is entitled
to recommend to the Commission that it approve, disapprove, or take any
other specified action with respect to such application.
"(b) The Commission shall establish, and may from time to time amend,
rules and regulations (as to hearings and other matters) to govern
applications for, and the issuance of, any certificate required by
subdivision (a). An application for such a certificate shall be
submitted to the Commission in such form and manner and with such
documentation as the Commission shall prescribe. The Commission may--,
"(i) issue such a certificate in the form requested by the
applicant;
"(ii) issue such a certificate with modifications in such form
and subject to such terms and conditions as are necessary in the
public interest; or
"(iii) refuse to issue such a certificate.
"(c) Upon petition or upon its own initiative, the Commission may
authorize any carrier by railroad subject to this part to extend any of
its lines of railroad or to take any other action necessary for the
provision of adequate, efficient, and safe facilities for the
performance of such carrier's obligations under this part. No
authorization shall be made unless the Commission finds that the expense
thereof will not impair the ability of such carrier to perform its
obligations to the public.
"(d) Carriers by railroad subject to this part may, notwithstanding
this paragraph and section 5 of this part, and without the approval of
the Commission, enter into contracts, agreements, or other arrangements
for the joint ownership or joint use of spur, industrial, team,
switching, or side tracks. The authority granted to the Commission
under this paragraph shall not extend to the construction, acquisition,
or operation of spur, industrial, team, switching, or side tracks if
such tracks are located or intended to be located entirely within one
State, and shall not apply to any street, suburban, or interurban
electric railway which is not operated as part of a general system of
rail transportation.
"(e) Any construction or operation which is contrary to any provision
of this paragraph, of any regulations promulgated under this paragraph,
or of any terms and conditions of an applicable certificate, may be
enjoined by an appropriate district court of the United States in a
civil action commenced and maintained by the United States, the
Commission, or the Attorney general or the transportation regulatory
body of an affected State or area. Such a court may impose a civil
penalty of not to exceed $5,000 on each person who knowingly authorizes,
consents to, or permits any violation of this paragraph or of the
conditions of a certificate issued under this paragraph.".
(b) Paragraphs (19), (20), (21), and (22) of section 1 of the
Interstate Commerce Act (49 U.S.C. 1(19) through 1(22) are repealed.
Sec. 802. The Interstate Commerce Act is amended by inserting after
section 1 thereof the following new section:
" Sec. 1a. // 49 USC 1a. // (1) No carrier by railroad subject to
this part shall abandon all or any portion of any of its lines of
railroad (hereafter in this section referred to as 'abondonment') and no
such carrier shall discontinue the operation of all rail service over
all or any portion of any such line (hereafter referred to as
'discontinuance'), unless such abandonment or discontinuance is
described in and covered by a cergificate which is issued by the
Commission and which declares that the present or future public
convenience and necessity require or permit such abandonment or
discontinuance. An application for such a certificate shall be
submitted to the Commission, together with a notice of intent to abandon
or discontinue, not less than 60 days prior to the proposed effective
date of such abandonment or discontinucnce, and shall be in accordance
with such rules and regulations as to form, manner, content, and
documentation as the Commission may from time to time prescirbe.
Abandonments and discontinuances shall be governed by the provisions of
this section or by the provisions of any other applicable Federal
statute, notwithstanding any inconsistent or contrary provision in any
State law or constitution, or any decision, order, or procedure of any
State administrative or judicial body.
"(2)(a) Whenever a carrier submits to the Commission a notice of
intent to abandon or discontinue, pursuant to paragraph (1), such
carrier shall attach thereto an affidavit certifying that a copy of such
notice (i) has been sent by certified mail to the chief executive
officer of each State that would be directly affected by such
abandonment or discontinuance, (ii) has been posted in each terminal and
station on any line of railroad proposed to be so abandoned or
discontinued, (iii) has been published for 3 consecutive weeks in a
newspaper of general circulation in each county in which all or any part
of such line of railroad is located, and (iv) has been mailed, to the
extent practicable, to all shippers who have made significant use (as
determined by the Commission in its discretion) of such line of railroad
during the 12 months proceding such submission.
"(b) The notice required under subdivision (a) shall include (i) an
accurate and understandable summary of the carrier's application for a
certificate of abandonment or discontinuance, together with the reasons
therefor, and (ii) a statement indicating that each interested person is
entitled to recommend to the Commssion that it approve, disapprove, or
take any other specified action with respect to such application.
"(3) During the 60-day period between the submission of a completed
application for a certificate of abandonment or discontinuance pursuant
to paragraph (1) and the proposed effective date of an abandonment or
discontinuance, the Commission shall, upon petition, or may, upon its
own initiative, cause an investigation to be conducted to assist it in
determining what disposition to make of such application. An order to
the Commission to implement the preceding sentence must be issued and
served upon any affected carrier not less than 5 days prior to the end
of such 60-day period. If no such investigation is ordered, the
Commission shall order a postponement, in whole or in part, in the
proposed effective date of the abandonment or discontinuance. Such
postponement shall be for such reasonable period of time as is necessary
to complete such investigation. Such an investigation may include, but
need not be limited to, public hearings at any location reasonably
adjacent to the line of railroad involved in the abandonment or
discontinuance application, pursuant to rules and regulations of the
Commission. Such a hearing may be held upon the request of any
interested party or upon the Commission's own initiative. The burden of
proof as to public convenience and necessity shall be upon the applicant
for a certificate of abandonment or discontinuance.
"(4) The Commission shall, upon an order with respect to each
application for a certificate of abandonment or discontinuance--,
"(a) issue such certificate in the form requested by the
applicant if it finds that such abandonment or discontinuance is
consistent with the public convenience and necessity. In
determining whether the proposed abandonment is consistent with
the public convenience and necessity, the Commission shall
consider whether there will be a serious adverse impact on rural
and community development by such abandonment or discontinuance;
"(b) issue such certificate with modifications in such form and
subject to such terms and conditions as are required, in the
judgment of the Commission, by the public convenience and
necessity; or
"(c) refuse to issue such certificate.
Each such certificate which is issued by the Commission shall contain
provisions for the protection of the interests of employees. Such
provisions shall be at least as beneficial to such interests as
provisions established pursuant to section 5(2)(f) of this Act // 49 USC
5. // and pursuant to section 405 of the Rail Passenger Service Act (45
U.S.C. 565). If such a certificate is issued, actual abandonment or
discontinuance may take effect, in accordance with such certificate, 120
days after the date of issuance thereof.
"(5)(a) Each carrier by railroad subject to this part shall, within
180 days after the date of promulgation of regulations by the Commission
pursuant to this section, prepared, submit to the Commission, and
publish, a full and complete diagram of the transportation system
operated, directly or indirectly, by such carrier. Each such diagram
which shall include a detailed description of each line of railroad
which is 'potentially subject to abandonment; as such term is defined
by the Commission. Such term shall be defined by the Commission by
rules and such rules may include standards which vary by region of the
Nation and by railroad or group of railroads. Each such diagram shall
also identify any line of railroad as to which such carrier plans to
submit an application for a certificate of abandonment or discontinuance
in accoudance with this section. Each such carrier shall submit to the
Commission and publish, in accordance with regulations of the Commssion,
such amendments to such diagram as are necessary to maintain the
accuracy of such diagram.
"(b) The Commission shall not issue a certificate of abandonment or
discontinuance with respect to a line of railroad if such abandonment or
discontinuance is opposed by--,
"(i) a shipper ar any other person who has made significant use
(as determined by the Commission in its discretion) of such line
of railroad during the 12-month period preceding the submission of
an applicable application under paragraph (1); or
"(ii) a State, or any political subdivision of a State, if such
line or railroad is located, in whole or in part, within such
State or political subdivision;
unless such line or railroad has been identified and described in a
diagram or in an amended diagram which was submitted to the Commission
under subdivision (a) at least 4 months prior to the date of submission
of an application for such certificate.
"(6)(a) Whenever the Commission makes a finding, in accordance with
this section, that the public convience and necessity permit the
abandonment or discontinuance of a line or railroad, it shall cause such
finding to be published in the Federal Register. If, within 30 days of
such publication, the Commission further finds that--,
"(i) a financially responsible person (including a government
entity) has offered financial assistance (in the form of a rail
service continustion payment) to enable the rail service involved
to be continued; and
"(ii) it is likely that such proffered assistance would--,
the Commission shall postpone the issuance of a certificate of
abandonment or discontinuance for such reasonable time, not to exceed 6
months, as is necessary to enable such person or entity to enter into a
binding agreement, with the carrier seeking such abandonment or
discontinuance, to provide shch assistance or to purchase such line and
to provide fro the continued operation of rail services over such line.
Upon notification to the Commission of the execution of such an
assistance or acquisition and operating agreement, the Commission shall
postpone the issuance of such a certificate for such period of time as
such agreement (including any extensions or modifications) is in effect.
"(b) A carrier by railroad subject to this part shall promptly make
available, to any party considering offeering financial assistance in
accordance with subdivision (a), its most recent reports on the physical
condition of any line of railroad with respect to which it seeks a
certificate of abandonment or discontinuance, together with such
traffic, revenue, and other data as is necessary to determine the amount
of assistance that would be required to continue rail service.
"(7) Whenever the Commission finds, under paragraph (6)(a) of this
section, that an offer of financial assistance has been made, the
Commission shall determine the extent to which the avoidable cost of
providing rail service plus a reasonable return on the value of the rail
properties involved exceed the revenues attributable to the line of
railroad or the rail service involved.
"(8) Petitions for abandonment or discontinuance which were filed and
pending before the Commission as of the date of enactment of this
section or prior to the promulgation by the Commission of regulations
required under this section shall be governed by the provisions of
section 1 and this Act which were in effect on such date of enactment,
except that paragraphs (6) and (7) of this section shall be applicable
to such petitions.
"(9) Any abandonment or discontinuance which is contrary to any
provision of this section, of any regulation promulgated under this
section, or of any terms and conditions of an applicable certificate,
may be enjoined by an appropriate district court of the United States in
a civil action commenced and maintained by the United States, the
Commssion, or the attorney general or the transportation regulatory body
of an affected State or area. Such a court may impose a civil penalty
of not to exceed $5,000 on each person who knowingly authorizes,
consents to, or permits any violation of this section or of any
regulation under this section.
"(10) As used in this section:
"(a) The term 'avoidable cost' means all expenses which would
be incurred by a carrier in providing a service which would not be
incurred, in the case of discontinuance, if such service were
discontinued or, in the case of abandonment, if the line over
which such service was provided were abandoned. Such expenses
shall include but are not limited to all cash inflows which are
foregone and all cash outflows which are incurred by such carrier
as a result of not discontinuing or not abandoning such service.
Such foregone cash inflows and incurred outflows shall include (i)
working capital and required capital expenditures, (ii)
expenditures to eliminate deferred maintenance, (iii) the current
cost of freight cars, locomotives and other equipment, and (iv)
the foregone tax benefits from not retiring properties from rail
service and other effects of applicable Federal and State income
taxes.
"(b) The term 'reasonable return' shall, in the case of a
railroad not in reorganization, be the cost of capital to such
railroad (as determined by the Commission), and, in the case of a
railroad in reorganization, shall be the mean cost of capital of
railroads not in reorganization, as determined by the
Commission.".
Sec. 803. Section 5 of the Department of Transportation Act, as
added by section 401 of this Act (49 U.S.C. 1654), is amended by adding
at the end thereof the following 10 new subsections:
"(f) The Secretary shall, in accordance with this section, provide
financial assistance to States for rail freight assistance programs that
are designed to cover--,
"(1) the cost of rail service continuation payments;
"(2) the cost of purchasing a line of railroad or other rail
properties to maintain existing or provide for future rail
service;
"(3) the cost of rehabilitating and improving rail properties
on a line of railroad to the extent necessary to permit adequate
and efficient rail freight service on such line; and
"(4) the cost of reducing the costs of lost rail service in a
manner less expensive than continuing rail service.
"(g) The Federal share of the costs of any rail service assistance
program shall be as follows: (1) 100 percent for the period from July
1, 1976 to June 30, 1977; (2) 90 percent for the period from July 1,
1977 to June 30, 1978; (3) 80 percent for the period from July 1, 1978
to June 30, 1979; and (4) 70 percent for the period from July 1, 1979
to June 30, 1981. For the period from July 1, 1979 to June 30, 1981,
the Secretary may make such adjustments in the percentage level of the
Federal share as may be necessary and appropriate so as not to exceed
the maximum amount of funds authorized under subsection (0) of this
section. The Secretary shall, within 1 year after the date of enactment
of this subsection, promulgate standards and procedures under which the
State share of such cost may be provided through in-kind benefits such
as forgiveness of taxes, trackage rights, and facilities which would not
otherwise be provided.
"(h) Each State which is, pursuant to subsection (j) of this section,
eligible to receive rail service assistance is entitled to an amount
equal to the total amount authorized and appropriated for such purpose,
multiplied by a fraction whose numerator is the rail mileage in such
State which is eligible for rail service assistance under this section
and whose denominator is the rail mileage in all of the States which are
eligible for rail service assistance under this section.
Notwithstanding the provisions of the preceding sentence, the
entitlement of each State shall not be less than 1 percent of the funds
appropriated. For purposes of this subsection, rail mileage shall be
measured by the Secretary, in consultation with the Interstate Commerce
Commission. Any portion of the entitlement of any State which is
withheld, in accordance with this section, and any such sums which are
not used or committed by a State shall be reallocated immediately, to
the extent practicable, among the States, in accordance with the formula
set forth in the first sentence of this subsection.
"(i) Rail service assistance to which a State is entitled under this
section may be allocated by such State to meet the cost of establishing
and emplementing the State rail plan required by subsection (j) of this
section or by section 402(c)(1) of the Regional Rail Reorganization Act
of 1973 (45 U.S.C. 762(c)(1). Such grants shall be made available by
the Secretary during the course of the State rail planning process, and
shall be distributed by the Secretary as needed by the States. The
amount of State rail planning grants to which each State (including each
State referred to in subsection (n)(1) of this section) is entitled
shall be proportionate to the amount of rail service assistance to which
such State is entitled under this Act.
"(j) A State is eligible to receive rail service assistance from the
Secretary if--,
"(1) such State has established an adequate plan for rail
services in such State as part of an overall planning process for
all transportation services in such State, including a suitable
process for updating, revising, and amending such plan;
"(2) such State plan is administered or coordinated by a
designated State agency and provides for the equitable
distribution of resources;
"(3) such State agency (A) has authority and administrative
jurisdiction to develop, promote, supervise, and support safe,
adequate, and efficient rail transportation services, (B) employs
or will employ, directly or indirectly, sufficient trained and
qualified personnel, (C) maintains or will maintain adequate
programs of investigation, research, promotion, and development,
with provisions for public participation, and (D) is designated
and directed solely, or in cooperation with other State agencies
to take all practicable steps to improve transportation safety and
to reduce transportation-related energy utilazation and pollution;
"(4) such State provides satisfactory assurance that it has or
will adopt and maintain adequate procedures for financial control,
accounting, and performance evaluation in order to assure proper
use of Federal funds; and
"(5) such State complies with regulations of the Secretary
issued under this section and the Secretary determines that such
State meets or exceeds the requirements of paragraphs (1) through
(4) of this subsection.
"(k) A project is eligible in any year for financial assistance from
the applicable rail service assistance program only if--,
"(1)(A) the Commission has found that the public convenience
and necessity permit the abandonment of, or the discontinuance of
rail service on, the line of railroad which is related to such
project, or (B) the line of railroad or related project was
eligible for assistance under title IV of the Regional Rail
Reorganization Act of u973; and
"(2) such line, or realted projects, has not previously been
the subject of Federal rail service assistance under this section
for more than 5 fiscal years.
"(l) The Secretary shall pay to each elegible State an amount equal
to its entitlement under subsection (h) of this section, to be expended
or committed to one or more projects which are eligible, pursuant to
subsection (k) of this section.
"(m)(1) Each recipient of financial assistance under subsections (e)
through (o) of this section, whether in the form of grants, subgrants
contracts, subcontracts, or other arrangements, shall keep such records
as the Secretary shall prescirbe including records wwhich fully disclose
the amount and disposition by such recipient of the proceeds of such
assistance, the total cost of the project or undertaking in connection
with which such assistance was given or used, the amount of that portion
of the cost of the project which was supplied by other sourecs, and such
other records as will facilitate an effective audit. Such records shall
be maintained for 3 years after the completion of such a project or
undertaking.
"(2) The Secretary and the Comptroller General of the United States,
or any of their duly authorized representatives, shall have access, for
the purpose of audit and examination, to any books, documents, papers,
and records of receipts which, in the opinion of the Secretary or of the
Comptroller General may be related or pertinent to the grants,
contracts, or other arrangements referred to in paragraph (1) of this
subsection.
"(3) The Secretary and the Comptroller General shall regularly
conduct, or cause to be conducted--,
"(A) a financial audit, in accordance with generally accepted
auditing standards; and
"(B) a performance audit of the activities and transactions
assisted under this section, in accordance with generally accepted
management principles.
Such audits may be conducted by independent certified or licensed public
accountants and management consultants approved by the Secretary and the
Comptroller General, and they shall be conducted in accordance with such
rules and regulations as may be prescribed by the Comptroller General.
"(n) As used in this section, the term ' State' means--,
"(1) during the period from the date of enactment of this
subsection through the second anniversary of the date on which
rail properties are conveyed pursuant to section 303(b)(1) of the
Regional Rail Reorganization Act of 1973 (45 U.S.C. 743(b) (1)),
any State in which a carrier by railroad subject to part I of the
Interstate Commerce Act
// 49 USC 1. //
maintains any line of railroad, except that the term shall not
include the States of Maine, New Hampshire, Vermont,
Massachusetts, Connecticut, Rhode Island, New York, New Jersey,
Pennsylvania, Delaware, Maryland, Virginia, West Virginia, Ohio,
Indiana, Michigan, and Illinois, and the District of Columbia;
and
"(2) during the period following the second anniversary of the
date on which rail properties are conveyed pursuant to such
section 303(b)(1),
// 45 USC 743. //
any State in which a carrier by railroad subject to part I of the
Interstate Commerce Act maintains any line of railroad.
"(o) There are authorized to be appropriated to the Secretary for the
purpose of subsections (f) through (o) of this section not to exceed
$360,000,000, without fiscal year limitation. Of the foregoing sums,
not to exceed $5,000,000 shlal be made available for planning grants
during each of the 3 fiscal years ending June 30, 1976; September 30,
1977; and September 30, 1978. In addition, any appropriated sums
remaining after the repeal of section 402 of the Regional Rail
Reorganization Act of 1973 // 45 USC 762. // are authorized to remain
available to the Secretary for purposes of subsections (f) through (o)
of this section. Such sums as are appropriated are authorized to remain
available until expended.".
Sec. 804. Section 304 of the Regional Rail Reorganization Act of
1973 (45 U.S.C. 744) is amended to read as follows:
" Sec. 304. (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
be 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
rail properties (under section 206(g) of this Act) // 45 USC 716. // or
as part of a coordination project (under section 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 secton 303(b)(2).
"(B) For purposes of this paragraph, rail service on rail properties
is compensatory if the revenus 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 standards
developed pursuant to section 205(d)(6) of this Act. // 45 USC 715. //
"(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 be 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 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 of 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--,
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 rqilroad may refuse to enter into such an opertaing
agreement only if the Commission determines, on petition by any affected
party, that the agreement could 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) (1)
of this title, // 45 USC 743. // 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 agreemnet is not in effect.
For pusposes 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. // 45
USC 715. // 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
reorganiaztion in the region from refusing to comply with the provisions
of this subsection.
"(e) Rail Passneger 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) was
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 180-day
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 progitable railroad) shall provide the
same level of rail passenger service, for the duration of such 180-day
mandatroy 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
// 45 USC 743. //
or subsection (c)(2)(B) of this 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 ti during the
180-day mandatory operation period specified in paragraph (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 to section 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 apacity (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 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 date 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 wiling 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 the 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 secton 303
(b)(1) of this title) // 45 USC 743. // , no railroad in reorganization
in the region may discontinue service or abandon any line of railroas
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
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 Bandruptcy Act (11 U.S.C. 205); or
"(3) following certification to the special court, pursuant to
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 // 49 USC 1. // shall, with respect to the provision of
such services, be subject to the Interstate Commerce Act or to 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
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
term in section 12(c)(2) of the Urban Mass Transportation Act (49
U.S.C. 1608(c)(5)).".
" Sec. 805. (a) Section 402 of the Regional Rail Reorganization Act
of 1973 (45 U.S.C. 762) is amended to read as follows:
" Sec. 402. (a) General.--(1) The Secretary shall provide financial
assistance in accordance with this section to assist in the provision of
rail service continuation payments, the acquisition or modernization of
rail properties, including the preservation of rights-of-way for future
rail service, the construction or improvement of facilities necessary to
accommodate the transportation of freight previously moved by rail
service, and the cost of operating and maintaining rail service
facilities such as yards, shops, docks, or other facilities useful in
facilitating and maintaining main line or local rail service. The
Federal share of the costs of any such assistance shall be as follows:
(A) 100 percent for the 12-month period following the date that rail
properties are conveyed pursuant to section 303(b)(1) of this Act; //
USC 743 // and (B) 90 percent for the succeeding 12-month period.
"(2) The Secretary shall, within one year after the date of enactment
of the Railroad Revitalization and Regulatory Reform Act of 1976,
promulgate standards and procedures under which the State share of such
cost may be provided through in-kind benefits such as forgiveness of
taxes, trackage rights, and facilities which would not otherwise be
provided.
"(3) The Secretary, in cooperation with the Secretary of Labor, the
Asscoiation, and the Commission, shall assist States and local or
regional transportation authorities in negotiating initial operating or
lease agreements and shall report to the Congress not later than 30 days
after the date of enactment of the Railroad Revitalization and
Regulatory Reform Act of 1976 on the progress of such negotiations. The
Secretary may, with the concurrence of a State, enter directly into
operating or lease agreements with railroads designated to provide
service under section 304(d) of this Act, // 45 USC 744. // and with
the trustees of railroads in reorganization in the region over whose
rail properties such service will be provided, to assure the
uninterrupted continuation of rail service after such date of
conveyance. Such agreements may be entered into only during the period
when the Federal share is 100 percent. Payments shall be made from the
funds to which a State would otherwise be entitled under this section.
"(b) Entitlement.--(1) Each State in the region which is, pursuant to
subsection (c) of this section, eligible to receive rail service
continuation assistance is entitled to an amount equal to the total
amount authorized and appropriated for such purpose multiplied by a
fraction whose numerator is the rail mileage in such State which is
eligibele for rail service continuation assistance under this section
and whose denominator is the rail mileage in all of the States in the
region which are eligible for rail service continuation assistance under
this section. Notwithstanding the preceding sentence, the entitlement
of each State shall not be less than 3 percent of the funds
appropriated. Not more than 5 percent of a State's entitlement may be
used for rail planning activities. For purposes of this subsection,
rail mileage shall be measured by the Secretary in consultation with the
Interstate Commerce Commission. Any portion of the entitlement of any
State which is withheld, in accordance with this section, and any such
sums which are not used or committed by a State shall be reallocated
immediately, to the extent practicable, among the other States in
accordance with the formula set forth in this subsection. In addition to
amounts provided pursuant to such rail mileage formula, funds shall also
be made available to each State for the cost of operating and
maintaining rail service facilities such as yards, shops, and docks
which are useful in facilitating and maintaining mainline or local rail
services and which are contained in each State's rail plan, except that
(A) any such assistance shall extend for a period of only 12 months
following the date rail properties are conveyed under section 303(b)(1)
of this Act, // 45 USC 743. // and (B) no railroad shall be required to
operate such facilities. With respect to the limitation on assistance
for rail service facilities under the proceding sentence, the Secretary
shall, not later than 90 days prior to the end of such 12-month period,
submit a report to the Congress in conjunction with a designated State
agency, recommending future action with respect to such facilities.
"(2) For a period of not more than 1 year following the date rail
properties are conveyed pursuant to section 303(b)(1) of this Act, the
Secretary is authorized to provide finandial assistance, from the funds
to which a State would otherwise be entitled under this section for the
continuation of local rail services, to any person determined by the
Secretary to be financially responsible who will enter into any
operating and lease agreements with railroads designated to provide
service under section 304(d) of this Act, // 45 USC 744. // regardless
of the eligibility of the State, where the applicable rail properties
are located, to receive assistancce under subsection (c) of this
section. In any case in which a State is eligible to receive rail
service continuation assistance under subsection (c) of this section,
States shall have priority to receive such payments over any other
person eligible under this paragraph and no other person eligible under
this paragraph shall receive such payments unless his application
therefor has been approved by the State agency designated under
subsection (c) to administer the State plan.
"(c) Eligibility.--(1) A State in the region is eligible to receive
financial assistance pursuant to subsection (b) of this section if, in
any fiscal year--,
"(A) the State has established a State plan for rail
transportation and local rail services (herein referred to as the
' State rail plan') which is administered or coordinated by a
designated State agency and such plan includes a suitable process
for updating, revising, and amending such plan and provides for
the equitable distribution of such financial assistance among
State, local, and regional transportation authorities;
"(B) the State agency (i) has authority and administrative
jurisdiction to develop, promote, supervise, and support safe,
adequate, and efficient rail services, (ii) employs or will
employ, directly or indirectly, sufficient trained and qualified
personnel, and (iii) maintains or will maintain adequate programs
of investigations, research, promotion, and development with
provision for public participation;
"(C) the State provides satisfactory assurance that such fiscal
control and fund accounting procedures will be adopted as may be
necessary to assure proper disbursement of, and accounting for,
Federal funds paid under this title to the State; and
"(D) the State complies with the regulations of the Secretary
issued under this section.
"(2) The rail freight services which are eligible for rail service
continuation assistance pursuant to this section are--,
"(A) those rail services of railroads in reorganization in the
region, or persons leased, operated, or controlled by any such
railroad, which the final system plan does not designate to be
continued;
"(B) those rail services on rail properties referred to in
section 304(a)(2) of this Act;
"(C) those rail services n the region which have been, at any
time during the 5-year period prior to the date of enactment of
this Act, or which, are subsequent to the date of enactment of
this Act, owned, leased, or operated by a State agency or by a
local or regional transportation authority, or with respect to
which a State, a political subdivision thereof, or a local or
regional transportation authority has invested (at any time during
the 5-year period prior to the date of enactment of this Act), or
invests (subsequent to the date of enactment of this Act),
substantial sums for improvement or maintenance or rail service;
or
"(D) those rail services in the region with respect to which
the Commission authorizes the discontinuance of rail services or
the abandonment of rail properties, effective on or after the date
of enactment of this Act.
"(3) The rail freight properties which are eligible to be acquired or
modernized with financial assistance pursuant to subsection (b) of this
section are those rail properties which are used for services eligible
for rail service continuation assistance, pursuant to paragraph (2) of
this subsection, including those properties which are identified, in the
applicable State rail plan as having potential for future use for rail
freight service.
"(4) The facilities which are eligible to be constructed or improved
with financial assistance pursuant to subsection (b) of this section are
those facilities in the region (including intermodal terminals and
highways or bridges) which are needed in order to provide rail freight
service which will no longer be available because of the discontinuance
of rail freight service under section 304 of this Act or other lawful
authority. No funds provided under this paragraph may be used to pay
the State share of any highway project under title 23, United States
Code.
"(5) Rail properties are eligible to be acquired with financial
assistance pursuant to subsection (b) of this section if (A) they are to
be used for intercity or commuter rail passenger service, and (B) they
pertain to a line in the region (other than rail properties designated
in accordance with section 206(c)(1) of this Act) // 45 USC 716. //
which, if so acquired (i) would enable the National Railroad Passenger
Corporation to serve, more efficiently, a route which it operated on
November 1, 1975, (ii) would provide intercity rail passenger service
designated by the Secretary under title Ii of the Rail Passenger Service
Act, // 45 USC 521. // or (iii) would provide such service over a route
designated for service pursuant to section 403(c) of the Rail Passenger
Service Act (45 U.S.C. 563(c)).
"(d) Regulations.--Within 90 days after the date of enactment of this
Act, the Secretary shall issue, and may from time to time amend,
regulations with respect to the provision of financial assistance under
this title.
"(e) Payment.--The Secretary shall pay to each eligible State in the
region an amount equal to its entitlement under subsection (b) of this
section.
"(f) Records, Audit, and Examination.--(1) Each recipient of
financial assistance under this section, whether in the form of grants,
subgrants, contracts, subcontracts, or other arrangements, shall keep
such records as the Secretary shall prescribe, including records which
fully disclose the amount and disposition by such recipients of the
proceeds of such assistance, the total cost of the project or
undertaking in connection with which such assistance was given or used,
the amount of that portion of the cost of the project supplied by other
sources, and such other records as will facilitate an effective audit.
Such records shall be maintained for 3 years after the completion of
such a project or undertaking.
"(2) The Secretary and the Comptroller General of the United States,
or any of their duly authorized representatives, shall have access for
the purpose of audit and examination to any books, documents, papers,
and records of such receipts which in the opinion of the Secretary or
the Comptroller General may be related or pertinent to the grants,
contracts, or other arrangements referred to in such paragraph.
"(g) Withholding.--If the Secretary, after reasohnable notice and an
opportunity for a hearing to any State agency, finds that a State is not
eligible for financial assistance under subsections (c) and (d) of this
section, payment to such State shall not be made until there is no
longer any failure to comply.
"(h) Authorization of Apporpriations.--There is authorized to be
appropriated to the Secretary to carry out the purposes of this section
an amount not to exceed $180,000,000 without fiscal year limitation.
Such sums as are appropriated shall reamin available until expended.
"(i) Definition.--As used in this section, the term 'rail service
continuation assistance' includes expenditures made by a State (or a
local or regional transportation authority), at any time during a 1-year
period preceding the date of enactment of this Act, or subsequent to the
date of enactment of this Act, for acquisition, rehabilitation, or
moderization of rail facilities on which rail freight services would
have been curtailed or abandoned but for such expenditures.".
(b) Section 403(a) of the Regional Rail Reorganization Act of 1973
(45 U.S.C. 763), is amended by striking the colon and the proviso and
inserting in lieu thereof a period.
(c) Section 403(b) of the Regional Rail Reorganization Act of 1973
(45 U.S.C. 763(b)) is amended by striking the last sentence thereof and
inserting in lier thereof the following: " Notwithstanding any other
provision of this title, a State may expend sums received by it under
paragraphs (1) and (2) of section 402(b) of this title for acquisition
and modernization pursuant to this section, or for any project
designated pursuant to a State rail plan.".
Sec. 806. Effective on the date of the second anniversary of the
date on which rail properties are conveyed, pursuant to section 303(b)(
1) of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 743),
title IV of such Act // 45 USC 761 - 763. // is repealed.
Sec. 807. Section 206(d)(5) of the Regional Rail Reorganization Act
of 1973 (45 U.S.C. 716(d)(5)) is amended to read as follows:
"(5) All properties--,
// 45 USC 716, 791. //
// 45 USC 743. //
to meet
the needs of commuter or intercity rail passenger
service,
shall be transferred at a value related to th value received from
the Corporation pursuant to the final system plan for the transfer
to such Corporation of such properties. The value of any such
properties, which are transferred pursuant to subparagraph (B) or
(C) of this paragraph, shall be adjusted to reflect the value
attributable to any applicable maintenance and improvement
provided by the Corporation (to the extent the Corporation has not
been released from the obligation to pay for such improvements)
and the cost to the Corporation of transferring such properties.".
Sec. 808. The Urban Mass Transportation Act of 1964 is amended by
adding at the end therefore the following new section:
" Sec. 17. // 45 USC 1613. // (a) The Secretary shall provide
financial assistance for the purpose of reimbursing--,
"(1) the Consolidated Rail Corporation, the National Railroad
Passenger Corporation, other railroads, and, if applicable, the
trustee or trustees of a railroads in reorganization in the region
(as defined in section 102 of the Regional Rail Reorganization Act
of 1973 (45 U.S.C. 702)) for the costs of rail passenger service
operations conducted at a loss during the 180-day mandatory
operation period, as required under section 304(e) of such Act (45
U.S.C. 744(e)). Such reimbursement shall cover all costs not
otherwise paid by a State or a local or regional transportation
authority which would have been payable by such State or
authority, pursuant to regulations issued by the Office under
section 205(d)(5) of the Regional Rail Reorganization Act of 1973
(45 U.S.C. 715) if such regulations had been in effect on the date
of conveyance of rail properties under section 303(b)(1) of such
Act; and
"(2) States, local public bodies, and agencies thereof for
additional costs incurred by such States, bodies, and agencies
with respect to rail passenger sevice required by section 304(e)(
4) of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 744
(e)(4)).
"(b) Financial assistance under subsection (a) of this section shall
not apply to intercity rail passenger service provided pursuant to an
agreement with the National Railroad Passenger Corporation which was in
effect immediately prior to such date of conveyance.
(c) Financial assistance provided pursuant to subsection (a) of this
section shall be subject to such terms, conditions, requirements, and
provisions as the Secretary may deem necessary and appropriate with such
reasonable exceptions to requirements and provisions otherwise
applicable under this Act as the Secretary may deem required by the
emergency nature of the assistance authorized by this section. Nothing
in this section shall authorize the Secretary to waive the provisions of
section 13(c) of this Act. // 49 USC 1609. //
"(d) The Federal share of the costs of any rail passenger service
required by subsections (c) and (e) of section 304 of the Regional Rail
Reorganization Act of 1973 (45 U.S.C. 744(c) and (e)) shall be as
follows:
"(1) 100 percent of the costs eligible under subsections (a)
(1) or (a)(2) of this section for the 180-day mandatory operation
period required by secton 304(e) of such Act;
"(2) 100 percent for the 180-day period following the 180-day
mandatory operation period;
"(3) 90 percent for the 12-month period secceeding the period
specified in subparagraph (2) of this subsection; and
"(4) 50 percent for the 180-day period succeeding the period
specified in subparagraph (3) of this subsection.
No assistance may be provided beyond the time specified in subsection
(d)(3) of this section, unless the applicant for such assistance
provides satisfactory assurances to the Secretary that the service for
which such assistance is sought will be continued after the termination
of the assistance authorized by this section.
"(e) The terms and provisions which are applicable to assistance
provided pursuant to this section shall be consistent, insofar as is
practicable, with the terms and provisions which are applicable to
operating assistance under section 5 of this Act. // 49 USC 1604. //
"(f) To finance assistance under this section, the Secretary may
incur obligations on behalf of the United States in the form of grants,
contracts agreements, or otherwise, in such amounts as are provided in
appropriations Acts, in an aggregate amount not to exceed $125,000,000.
There are authorized to be appropriated for liquidation of the
obligations incurred under this section not to exceed $40,000,000 by
September 30, 1976, $95,000,000 by September 30, 1977, and $125,000,000
by September 30, 1978, such sums to remain available until expended.".
Sec. 809. // 49 USC 1 // (a) Study.--The Secretary shall, within 360
days after the date of enactment of this Act, and in consultation with
the Secretary of the Interior, the Office, the Association, the
Environmental Protection Agency, and other appropriate Federal agency,
any appropriate State and regional transportation agency, any other
appropriate State and local governmental entities, and any appropriate
private groups and individuals, prepare and submit to the Congress and
the President a report on the conversion of railroad rights-of-way.
This report shall evaluate and make suggestions concerning potential
alternate uses of, and public policy with respect to the conversion of,
railroad rights-of-way on which service has been discontinued or is
likely to be discontinued. This report shall include--,
(1) an inventory statement developed by the Secretary as to all
abandoned railroad rights-of-way and significant segments of such
rights-of-way which retain their linear characteristics,
including, as to each, identification of the owner of record and
an evaluation of its topography, characteristics, condition,
approximate value, and alternate use suitability;
(2) an evaluation of the advantages of establishing a rail bank
consisting of selected such rights-of-way, as a means of assuring
their availability for potential railroad use in the future, a
discussion of interim uses for such rights-of-way, the development
of conveyancing and leasing forms, conditions, and practices to
assure such availability, a projection as to the costs of such a
program, and recommendations regarding the administration of such
a program;
(3) a survey of existing Federal, State, and local programs
utilizing or attempting to utilize abandoned railroad
rights-of-way, for public purposes, including an assessment of the
benefits and costs of each; and
(4) an assessment and evaluation of suggestions for more
effective public utilization of abandoned railroad rights-of-way,
including recommendations for legislative, administrative, and
regulatory action, if any, and proposals as to the optimum level
of funding therefor.
(b) Information and Funding.--The Secretary of the Interior, after
consultation with the Secretary, shall, in accordance with this
subsection, provide financial, educational, and technical assistance to
local, and State, and Federal governmental entities for programs
involving the conversion of abandoned railroad rights-of-way to
recreational and conservational uses, in such manner as to coordinate
and accelerate such conversion, where appropriate. Such assistance
shall include--,
(1) encouraging and facilitating exchanges of information
dealing with the availability of railroad rights-of-way, the
technology involved in converting such properties to such public
purposes, and related matters;
(2) making grants, in consultation with the Bureau of Outdoor
Recreation of the Department of the Interior, to State and local
governmental entities to enable them to plan, acquire, and develop
recreational or conservational facilities on abandoned railroad
rights-of-way, which grants shall cover not more than 90 percent
of the cost of the planning, acquisition, or development activity
of the particular project for which funds are sought;
(3) allocating funds to other Federal programs concerned with
recreation or conservation in order to enable abandon railroad
rights-of-way, where appropriate, to be included in or made into
national parks, national trails, national recreational areas,
wildlife refuges, or other national areas dedicated to
recreational or conservational uses; and
(4) providing technical assistance to other Federal agencies,
States, local agencies, and private groups for the purpose of
enhancing conversion projects. To increase the available
information and expertise, the Secretary may contract for special
studies or projects and may otherwise collect, evaluate, and
disseminate information dealing with the utilization of such
rights-of-way.
(c) Conforming Amendment.--Section 1a of the Interstate Commerce Act,
// 49 USC 1a. // as inserted by this Act, is amended by redesignating
paragraph (10) thereof as paragraph (11), and by inserting immediately
after paragraph (9) the following new paragraph:
"(10) In any instance in which the Commission finds that the present
or future public convenience and necessity permit abandonment or
discontinuance, the Commission shall make a further finding whether such
properties are suitable for use for other public purposes, including
roads or highways, other forms of mass transportation, conservation,
energy production or transmission, or recreation. If the Commission
finds that the properties proposed to be abandoned are suitable for
other public purposes, it shall order that such rail properties not be
sold, leased, exchanged, or otherwise disposed of except in accordance
with such reasonable terms and conditions as are prescribed by the
Commission, including, but not limited to, a prohibition on any such
disposal, for a period not to exceed 180 days after the effective date
of the order permitting abandonment unless such properties have first
been offered, upon reasonable terms, for acquisition for public
purposes.".
(d) Authorization of Appropriations.--, // 49 USC 1a. // There are
authorized to be appropriated to carry out the provisions of this
section, not to exceed $6,000,000 for the fiscal year and the
transitional fiscal period ending September 30, 1976, not to exceed
$7,000,000 for the fiscal year ending September 30, 1977, and not to
exceed $7,000,000 for the fiscal year ending September 30, 1978. Sums
appropriated pursuant to this authorization are authorized to reamin
available until expended. Of the funds appropriated, at least
four-fifths are to be made available to the Secretary of the Interior to
carry out subsection (b) of this section.
Sec. 810. // 49 USC 1653a. // (a) Establishment.--The Secretary
shall, within 180 days after the date of enactment of this Act, and
after consultation with the Secretary of the Interior and the Secretary
of Commerce, in accordance with this section, establish a rail bank to
consist of rail trackage and other rail properties eligible under this
subsection, for purposes of preserving existing service in certain areas
of the United States in which fossil fuel natural resources or
agricultural production is located. The Secretary may include in such
rail bank any railroad trackage or other rail properties which are
listed for consideration for inclusion in a rail bank under part III,
section C, of the final system plan.
(b) Powers.--(1) The Secretary may acquire, by lease, purchase, or in
such other manner as he considers appropriate, rail properties or any
interests therein eligible for inclusion in the rail bank established
under this section. Except as provided in paragraph (2) of this
subsection, the Secretary may hold rail properties acquired for such
rail bank, and may sell, lease, grant rights over, or otherwise dispose
of interests or rights in connection with such rail properties.
(2) The Secretary may not dispose of any such rail properties
pursuant to paragraph (1) of this subsection if he determines, after
consultation with the Secretary of the Interior and the Secretary of
Commerce, that such disposition would adversely affect the availability
of such properties for any continued necessary access to, and egress by
rail from, facilities in which fossil fuels are being or can be
extracted or processed.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary for purposes of carrying out the
provisions of this section such sums as are necessary, not to exceed
$6,000,000. Sums appropriated pursuant to this section are authorized
to remain available until expended.
Sec. 901. // 49 USC 1654. // The Secretary shall conduct a
comprehensive study of the American railway system. Such study shall
commence not later than 45 days after the date of enactment of this Act.
Such study shall include--,
(1) a showing of the potential cost savings and of possible
improvements in service quality which could result from
restructuring the railroads in the United States;
(2) an identification of the potential economies and
improvements in performance which could result from the
improvement of local and terminal operations;
(3) estimates as to potential savings in the costs of
rehabilitating the United States railway system if rehabilitation
is limited to those protions of such system which are essential to
interstate commerce or national defense;
(4) an assessment of the extent to which common or public
ownership of fixed facilities could improve the national rail
transportation system;
(5) an assessment of the potential effects of alternative rail
corporate structures upon the national rail transportation system;
(6) a listing, in order of descending priority, of the rail
properties, which should be improved to the extent necessary to
permit high-speed rail passenger or freight service over such
properties in terms of the costs and benefits of such improvements
and the reaosns therefor; and (7) an estimate of the potential
benefits of railroad electrification for high density rail lines
in the United States, and an evaluation of the costs and benefits
of electrifying rail lines in the United States with a high
density of traffic, including--,
(8) a survey and analysis of the financial and physical
condition of the facilities, rolling stock, and equipment of the
various railroads in the United States.
Within 540 days after the date of enactment of this Act, the Secretary
shall submit a report to the Congress setting forth the results of the
study conducted pursuant to this section.
Sec. 902. // 49 USC 1654 // (a) Study.--Within 30 days after the date
of the enactment of this Act, the Secretary shall initate a
comprehensive study and analysis of (1) past and present policies and
methods of providing Federal aid for the construction, improvement,
operation, and maintenance of rail transportation facilities and
services, (2) the relationship of such policies and methods to the
policies and methods of providing Federal aid for other modes of
transportation, and (3) whether common carriers by railroad have been or
are disadvantaged by reason of such policies and methods, and, if such
carriers have been or are disadvantaged, the extent of such
disadvantage. The Secretary shall examine ways and means by which
future policy respecting Federal aid to rail transportation may be so
determined and developed as to encourage the establishment and
maintenance of an open and competitive market in which rail
transportation, and in which market shares are governed by customer
preference based upon the service and full economic costs.
(b) Cooperation.--The Commission and the Secretary of the Army are
authorized and directed to cooperate fully with the Secretary in
carrying out the purposes of this section, and also to submit such
independent and separate reports, comments, and recommendatons as they
consider appropriate.
(c) Information.--In carrying out the purposes of this section, the
Secretary may require all common carriers by railroad to file such
reports containing such information as the Secretary considers
necessary. The Secretary shall have the power to require by subpoena
the production of such books, papers, tariffs, contracts, agreements, or
other documents of data of a common carrier by railroad related to the
study and analysis as he considers relevant. The Secretary may treat as
confidential and privileged any document, data, or information recieved
for such study and analysis, notwithstanding the provisions of section
552 of title 5, United States Code. // 5 USC 552 //
(d) Report to Congress.--Within 1 year after the date of enactment of
this Act, the Secretary shall complete the study and analysis authorized
and directed by this section, and shall transmit a report to the
Congress containing his findings and conclusions, together with his
recommendations for a sound and rational policy with respect to Federal
aid to rail transportation.
Sec. 903. //49 USC 5c // The Commission shall undertake a study of
conglomerates and of such other corporate structures as are presently
found within the rail transportation industry. The commission shall
determine what effects, if any, such diverse structures have on
effective transportation, on intermodal competition, on revenue livels,
and on such other aspects of national transportation as the Commission
considers to be legitimate subjects of study. The Commission shall
prepare a report with appropriate recommendations and shall submit its
report to the Congress within 1 year after the date of enactment of this
Act.
sec. 904. The Secretary shall submit to the Congress, within 90 days
after the date of enactment of this Act, // 45 USC 745 // a
comprehensive report on the anticipated effect, including the
environmental impact, of any abandonments of lines of railroad and any
discontinuances of rail service in State outside the region, as defined
in section 102 of the Regional Rail Reorganization Act of 1973 (45 U.S.
C. 702).
sec. 905. // 45 USC 803 // (a) General.--No person in the United
States shall on the ground of race, color, national origin, or sex be
excluded from participation in, or denied the benenfits of, or be
subjected to discrimination under, any project, program, or activity
funded in whole or in part through financial assistance under this Act.
(b) Compliance.--(1) Whenever the Secretary determines that any
person receiving financial assistance, directly or indirectly, under
this Act, or under any provision of law amended by this Act, has failed
to comply with subsection (a) of this section, with any Federal civil
rights statute, or with any order or regulation issued under such a
statute, the Secretary shall notify such person of such determination
and shall direct such person to take such action as may be necessary to
assure compliance with such subsection.
(2) If, within a reasonable period of time after receiving
notification pursuant to paragraph (1) of this subsection, such person
fails or refuses to comply with subsection (a) of this section, the
Secretary shall--,
(A) direct that no further Federal financial assistance be
provided to such person;
(B) refer the matter to the Attorney General with a
recommendation that an appropriate civil action be instituted;
(C) exercise the powers and functions provided by title VI of
the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.); and/or
(D) take such other actions as may be provided by law.
(c) Civil Action.--Whenever a matter is referred to the Attorney
General pursuant to subsection (b) of this section, or whenever the
Attorney General has reason to believe that any person is engaged in a
pattern or practice in violation of the provisions of this section, the
Attorney General may commence a civil action in any appropriate district
court of the United States for such relief as may be appropriate,
including injunctive relief.
(d) Regualtions.--The Secretary may prescribe such regulations and
take such actions as are necessary to monitor, enforce, and
affirmatively carry out the purposes of this section.
(e) Judicial Review.--Any determinations made or actions taken by the
Secretary pursuant to this section shall be subject to judicial review.
(f) Definition.--For purposes of this section, the term "financial
assistance" includes obligation guarantees.
Sec. 906. The Department of Transportation Act (49 U.S.C. 1651 et
seq.) is amended (1) by redesignating sections 11 through 15 thereof as
sections 12 through 16 thereof, and (2) by inserting a new section 11 as
follows:
" Sec. 11. (a) The Secretary shall, within 180 days after the date of
enactment of this section, // 49 USC 1657a. // establish a Minority
Resource Center (hereafter in this section referred to as the '
Center').
"(b) The Center shall have an Advisory Committee, which shall consist
of 5 individuals appointed by the Secretary from lists of 3 qualified
individuals recommended by minority-dominated trade associations in the
minority business community.
"(c) The Center is authorized to--,
"(1) establish and maintain, and disseminate information from,
a national information clearinghouse for minority entrepreneurs
and businesses, for purposes of furnishing, to such entrepreneurs
and businesses, information with respect to business opportunities
involving the maintenance, rehabilitation, restructuring,
improvement, and revitalization of the Nation's railroads;
"(2) assist minority entrepreneurs and businesses in obtaining
investment capital and debt financing;
"(3) conduct market research, planning economic and business
analyses, and feasibility studies to identify such opportunities;
"(4) design and conduct programs to encourage, promote, and
assist minority entrepreneurs and businesses to secure contracts,
subcontracts, and projects related to the maintenance,
rehabilitation, restructuring, improvement, and revitalization of
the Nation's railroads;
"(5) enter into such contracts, cooperative agreements, or
other transactions as may be necessary in the conduct of its
functions and duties;
"(6) develop support mechanisms, including venture capital,
security and bonding organizations, and management and technical
services, which will enable minority entrepreneurs and businesses
to take advantage of business opportunities related to the
maintenance, rehabilitation, restructuring, improvement, and
revitalization of the Nation's reairoads; and
"(7) participate in, and cooperate with, all Federal programs,
and other programs designed to provide financial, management, and
other forms of support and assistance to minority entrepreneurs
and businesses.
"(d) The United States Railway Association, the Consolidated Rail
Corporation, and the Secretary shall provide the Center with such
relevant information, including procurement schedules, bids, and
specifications with respect to particular maintenance, rehabilitation,
restructuring, improvement, and revitalization projects, as may be
requested by the Center in connection with the performance of its
functions.
"(e) As used in this section, the term 'minority' includes women.".
LEGISLATIVE HISTORY:
HOUSE REPORTS: No. 94 - 725 accompanying H.R. 10979 (comm. on
Interstate and Foreign Commerce) and Nos. 94 - 768 and 94 - 781 (Comm.
of Conference).
SENATE REPORTS: No. 94 - 499 (Comm. on Commerce) and Nos. 94 - 585
and 94 - 595 (Comm. of Conference).
CONGRESSIONAL RECORD:
Vol. 121 (1975): Dec. 2, 4, considered and passed Senate.
Dec. 17, considered and passed House, amended, in lieu of H.R.
10979. Dec. 19, Senate and House agreed to conference report.
Vol. 122 (1976): Jan. 20, House vacated certain actions and
recommitted the bill to committ of conference. Jan. 21, Senate
vacated certain actions and recommitted the bill to committee of
conference. Jan. 28, House and Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS: Vol. 12, No. 6 (1976):
Feb. 5, Presidential statement.
Public Law 94-209, 90 STAT. 30
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That section 2 (e) of
the National Portrait Gallery Act (Public Law 87 - 443) // 20 USC 75a.
// is amended as follows: " The term 'portraiture' includes portraits
and reproductions thereof made by any means or process, whether invented
or developed heretofore or hereafter.".
Approved February 5, 1976.
LEGISLATIVE HISTORY:
HOUSE REPORT No. 94 - 715 accompanying H.R. 6397 (Comm. on House
Administration).
SENATE REPORT No. 94 - 299 (Comm. on Rules and Administration).
CONGRESSIONAL RECORD:
Vol. 121 (1975): July 25, considered and passed Senate.
Vol. 122 (1976): Jan. 19, considered and passed House, in lieu
of H.R. 6397.
Public Law 94-208, 90 STAT. 29
Whereas President Abraham Lincoln symbolizes for millions of
Americans the cherished dreams of freedom, human dignity, and hope
for mankind;
Whereas the people of the State of Israel share with the
American people those dreams which Abraham Lincoln symbolizes;
and
Whereas Leon and Ruth Gildesgame, of Mount Kisco, New York, are
the owners of an award-winning statue of Abraham Lincoln which
they have expressed an interest in donating to the United States
in order that it may be given as a gift from the people of the
United States to the people of Israel: Now, therefore, be it
Resolved by the Senate and House of Representatives of the United
States of America in Congress assembled, That the President (1) shall
accept, on behalf of the United States, a statue of Abraham Lincoln from
Leon and Ruth Gildesgame, of Mount Kisco, New York, and (2) shall
present such statue to the people of Israel on behalf of the people of
the United States.
Approved February 4, 1976.
LEGISLATIVE HISTORY:
HOUSE REPORT No. 94 - 717 (Comm. on International Relations).
SENATE REPORT No. 94 - 588 (Comm. on Foreign Relations).
CONGRESSIONAL RECORD:
Vol. 121 (1975): Dec. 17, considered and passed House.
Vol. 122 (1976): Jan. 19, considered and passed Senate.
Public Law 94-207, 90 STAT. 28
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That Congress finds that
in Kentucky and Tennessee large concentrations of starlings, grackles,
blackbirds, and other birds found in "blackbird roosts" pose a hazard to
human health and safety, livestock and agriculture, that the roosts are
reestablished each winter, that dispersal techniques have been
unsuccessful, that control is most effective when birds are concentrated
in winter roosts, and that an emergency does exist which requires
immediate action with insufficient time to comply with the National
Environmental Policy Act.
Sec. 2. (a) Upon certification by the Governor of Kentucky and/ or
Tennessee to the Secretary of the Interior that "blackbird roosts" are a
significant hazard to human health, safety or property in his state, the
Secretary of the Interior shall provide for roosts determined through
normal survey practices of the Department of the Interior to contain in
excess of 500,000 birds to be treated with chemicals registered for bird
control purposes, unless the Secretary determines that treatment of a
particular roost would pose a hazard to human health, safety, or
property.
(b) The provisions of the National Environmental Policy Act of 1969
(83 Stat. 852), // 42 USC 4321 // the Federal Environmental Pesticide
Control Act (86 Stat. 975), // 7 USC 136 // or any other provision of
law shall not apply to any such blackbird control activities undertaken,
on or before April 15, 1976, by the States of Kentucky or Tennessee or
the Federal Government within the States of Kentucky or Tennessee.
LEGISLATIVE HISTORY:
CONGRESSIONAL RECORD, Vol. 122 (1976): Jan. 27, considered and
passed House and Senate, in lieu of S. 2873.
Public Law 94-206, 90 STAT. 3
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That the following sums
are appropriated out of any money in the Treasury not otherwise
appropriated, for the Departments of Labor, and Health, Education, and
Welfare, and related agencies, for the fiscal year ending June 30, 1976,
and the period ending September 30, 1976, and for other purposes,
namely:
For expenses of administering employment and training programs,
$66,632,000, together with not to exceed $29,866,000 which may be
expended from the Employment Security Administration account in the
Unemployment Trust Fund, and of which $5,270,000 shall be for carrying
into effect the provisions of 38 U.S.C. 2001 - 2003.
For " Program administration" for the period July 1, 1976, through
September 30, 1976, $16,748,000, together with not to exceed $7,377,000
which may be expended from the Employment Security Administration
account in the Unemployment Trust Fund, and of which $1,318,000 shall be
for carrying into effect the provisions of 38 U.S.C. 2001 - 2003.
For expenses necessary to carry into effect the Comprehensive
Employment and Training Act of 1973, // 29 USC 801 // as amended, and
sections 326 and 328 of the Trade Expansion Act of 1962 (19 U.S.C. 1951
and 1961) and sections 236, 237, and 238 of the Trade Act of 1974, // 19
USC 2296, 2297, 2298. // $2,388,400,000, plus reimbursements, to remain
available until September 30, 1977: Provided, That this appropriation
shall be available for the purchase and hire of passenger motor
vehicles, and for construction, alteration, and repair of buildings and
other facilities and for the purchase of real property for training
centers as authorized by the Comprehensive Employment and Training Act
of 1973, as amended.
For " Comprehensive manpower assistance" for the period July 1, 1976,
through September 30, 1976, $597,500,000, plus reimbursements, to remain
available until September 30, 1977: Provided, That this appropriation
shall be available for the purchase and hire of passenger motor
vehicles, and for construction, alteration and repair of buildings and
other facilities and for the purchase of real property for training
centers as authorized by the Comprehensive Employment and Training Act
of 1973, as amended.
For payments during the current fiscal year of benefits and
allowances to unemployed Federal employees and ex-servicemen, as
authorized by title 5, chapter 85 of the United States Code, // 5 USC
8501 // of trade adjustment benefit payments and allowances, as provided
by law (19 U.S.C. 1941 - 1944 and 1952; part I, subchapter B, chapter
2, title II, of the Trade Act of 1974), // 19 USC 2291. // and of
unemployment assistance as authorized by title II of the Emergency Jobs
and Unemployment Assistance Act of 1974, // 26 USC 3304 // $410,000,000,
together with such amounts as may be necessary to be charged to the
subsequent appropriation for payments for any period subsequent to June
15 of the current year: Provided, That, in addition, there shall be
transferred from the Postal Service Fund to this appropriation such sums
as the Secretary of Labor determines to be the cost of benefits for
ex-Postal Service employees: Provided further, That amounts received
during the current fiscal year from the Postal Service or recovered from
the States pursuant to 5 U.S.C. 8505( d) shall be available for such
payments during the year.
For payments during the period July 1, 1976, through Steptember 30,
1976, of benefits and allowances to unemployed Federal employees and
ex-servicemen, as authorized by title 5, Chapter 85 of the United States
Code, and of trade adjustment benefit payments and allowances, as
provided by law (19 U.S.C. 1941 - 1944 and 1952; part I, subchapter B,
chapter 2, title II, of the Trade Act of 1974), $95,000,000, together
with such amounts as may be necessary to be charged to the subsequent
appropriation for payments for any period subsequent to September 15 of
the current period: Provided, That, in addition, there shall be
transferred from the Postal Service Fund to this appropriation such sums
as the Secretary of Labor determines to be the cost of benefits for
ex-Postal Service employees: Provided further, That amounts received
during the current period from the Postal Service or recovered from the
States pursuant to 5 U.S.C. 8505(d) shall be available for such payments
during the period.
For grants for activities authorized by the Act of June 6, 1933, as
amwnded (29 U.S.C. 49 - 49n, 39 U.S.C. 3202 (a) (1) (E)); Veterans'
Employment and Readjustment Act of 1972, as amended (38 U.S.C. 2001 -
2013); title III of the Social Security Act, as amended (42 U.S.C. 501
- 503); sections 312(e) and (g) of the Comprehansive Employment and
Training Act of 1973, // 29 USC 882. // as amended; and necessary
administrative expenses for carrying out 5 U.S.C. 8501 - 8523, 19 U.S.
C. 1941 - 1944, 1952, and chapter 2, title II, of the Trade Act of 1974,
// 19 USC 2271 // including upon the request of any State, the payment
of rental for space made available to such State in lieu of grants for
such purpose, $81,300,000, together with not to exceed $1,051,300,000,
which may be expended from the Employment Security Administration
account in the Unemployment Trust Fund, and of which $76,000,000 shall
be available only to the extent necessary to meet increased costs of
administration resulting from changes in a State law or increases in the
number of unemployment insurance claims filed and claims paid or
increased salary costs resulting from changes in State salary
compensation plans embracing employees of the State generally over those
upon which the State's basic grant was based, which cannot be provided
for by normal budgetary adjustments: Provided, That any portion of the
funds granted to a State in the current fiscal year and not obligated by
the State in that year shall be returned to the Treasury and credited to
the account from which derived.
For grants for the period July 1, 1976, through September 30, 1976,
for activities authorized by the Act of June 6, 1933, as amended (29 U.
S.C. 49 - 49n, 39 U.S.C. 3202(a)(1)(E)); Veterans' Employment and
Readjustment Act of 1972, as amended (38 U.S.C. 2001 - 2013); title III
of the Social Security Act, as amended (42 U.S.C. 501 - 503); sections
312(e) and (g) of the Comprehensive Employment and Training Act of 1973,
// 29 USC 882. // as amended; and necessary administrative expenses
for carrying out 5 U.S.C. 8501 - 8523, 19 U.S. C. 1941 - 1944, 1952,
and chapter 2, title II, of the Trade Act of 1974, // 19 USC 2271 et
seq. // including upon the request of any State, the payment of rental
for space made available to such State in lieu of grants for such
purpose, $20,300,000, together with not to exceed $262,850,000 which may
be expended from the Employment Security Administration account in the
Unemployment Trust Fund, and of which $15,000,000 shall be available
only to the extent necessary to meet increased costs of administration
resulting from changes in a State law or increases in the number of
unemployment insurance claims filed and claims paid or increased salary
costs resulting from changes in State salary compensation plans
embracing employees of the State generally over those upon which the
State's basic grant was based, which cannot be provided for by normal
budgetary adjustments: Provided, That any portion of the funds granted
to a State in the current period and not obligated by the State in that
period shall be returned to the Treasury and credited to the account
from which derived.
For necessary expenses for the Labor-Management Services
Administration, $41,232,000.
For " Salaries and expenses" for the period July 1, 1976, through
September 30, 1976, $10,047,000.
The Pension Benefit Guaranty Corporation is hereby authorized to make
such expenditures within limits of funds and borrowing authority
available to such corporation, and in accord with law, and to make such
contracts and commitments without regard to fiscal year limitation as
provided by section 104 of the Goverment Corporation Control Act, as
amended (31 U.S.C. 849), as may be necessary in carrying out the program
set forth in the budget for the current fiscal year, and the program for
the period July 1, 1976, through September 30, 1976, for such
corporation.
For necessary expenses for the Employment Standards Administration,
including reimbursement to State, Federal, and local agencies and their
employees for inspection services rendered, $82,410,000, together with
$225,000 which may be expended from the Special Fund in accordance with
Sections 39(c) and 44(j) of the Longshoremen's and Harbor Workers'
Compensation Act. // 33 USC 939, 944. //
For " Salaries and expenses" for the period July 1, 1976, through
September 30, 1976, $20,602,000, together with $56,000 which may be
expended from the Special Fund in accordance with Sections 39(c) and
44(j) of the Longshoremen's and Harbor Workers' Compensation Act. // 33
USC 939, 944. //
For the payments of compensation, benefits, and expenses (except
administrative expenses) accruing during the current or any prior fiscal
year authorized by title IV of the Federal Coal Mine Health and Safety
Act of 1969, // 30 USC 901. 5 USC 8101 et seq. // as amended, and
title V, chapter 81 of the United States Code; continuation of benefits
as provided for under the head " Civilian War Benefits" in the Federal
Security Agency Appropriation Act, 1947; // 60 Stat. 696. // the
Employees' Compensation Commission Appropriation Act, 1944: // 57 Stat.
513. // and sections 4(c) and 5(f) of the War Claims Act of 1948 (50
U.S.C. App. 2012); and fifty per centum of the additional compensation
and benefits required by section 10(h) of the Longshoremen's and Harbor
Workers' Compensation Act, // 33 USC 910. // as amended, $201,000,000,
together with such amount as may be necessary to be charged to the
subsequent year appropriation for the payment of compensation and other
benefits for any period subsequent to June 15 of the current year:
Provided, That in addition there shall be transferred from the Postal
Service fund to this appropriation such sums as the Secretary of Labor
determines to be the cost of administration for Postal Service employees
through June 30, 1976.
Whenever the Secretary of Labor finds it will promote the achievement
of the above activities, qualified persons may be appointed to conduct
hearings thereunder without meeting the requirements for hearing
examiners appointed under 5 U.S.C. 3105: Provided, That no person shall
hold a hearing in any case with which he has been concerned previously
in the administration of such activities.
For " Special benefits" for the period July 1, 1976, through
September 30, 1976, $70,000,000.
For necessary expenses for the Occupational Safety and Health
Administration, $116,221,000, of which not to exceed $9,000,000 shall be
available for reimbursement to States under section 7(c)(1) of the
Occupational Safety and Health Act of 970 (29 U.S.C. 656(c)(1)) for the
furnishing of consultation services to employers under section 21(c) of
such Act (29 U.S.C. 670(c)).
None of the funds appropriated in this Act shall be used to require
recordkeeping and reporting under the Occupational Safety and Health Act
of 970, // 29 USC 651 // from employers of ten or fewer employees, and
such exclusion shall be governed by the current rules and regulations in
CFR, Title 29, Chapter XVII, Part 1904.15.
For " Salaries and expenses" for the period July 1, 1976, through
September 30, 1976, $29,000,000, of which not to exceed $1,250,000 shall
be available for reimbursement to States under section 7(c)(1) of the
Occupational Safety and Health Act of 970 (29 U.S.C. 656(c)(1)) for the
furnishing of consultation services to employers under section 21( c) of
such Act (29 U.S.C. 670(c)).
For necessary expenses for the Bureau of Labor Statistics, including
advances or reimbursements to State, Federal, and local agencies and
their employees for services rendered, $64,846,000, of which $7,095,000
shall be for expenses of revising the Consumer Price Index, including
salaries of temporary personnel assigned to this project without regard
to competitive civil service requirements.
For " Salaries and expenses" for the period July 1, 1976, through
September 30, 1976, $16,210,000, of which $1,774,000 shall be for
expenses of revising the Consumer Price Index, including salaries of
temporary personnel assigned to this project without regard to
competitive civil service requirements.
For necessary expenses for departmental management and $1,328,000 for
the President's Committee on Employment of the Handicapped, $32,297,000,
together with not to exceed $881,000, to be derived from the Employment
Security Administration account, Unemployment Trust Fund.
For " Salaries and expenses" for the period July 1, 1976, through
September 30, 1976, $7,781,000, together with an amount not to exceed
$221,000 to be derived from the Employment Security Administration
account, Unemployment Trust Fund.
For payments in foreign currencies which the Treasury Department
determines to be excess to the normal requirements of the United States,
for necessary expenses of the Department of Labor, as authorized by law,
$70,000, to remain available until expended: Provided, That this
appropriation shall be available, in addition to other appropriations to
such agency for payments in the foregoing currencies.
Sec. 101. Appropriations in this Act available for salaries and
expenses shall be available for supplies, services, and rental of
conference space within the District of Columbia, as the Secretary of
Labor shall deem necessary for settlement of labor-management disputes.
Sec. 102. Funds appropriated by this Act for the payment of special
unemployment assistance under title II of the Emergency Jobs and
Unemployment Assistance Act of 1974 26 USC 3304 shall not be used for
making such payments of assistance or waiting period credit, beginning
after the date of enactment of this Act, to any individual who performs
services in an instructional, research, or principal administrative
capacity for an educational institution or agency with respect to any
week commencing during the period between two successive academic years
(or, when the contract provides instead for a similar period between two
regular but not successive terms, during such similar period) if--,
(1) such individual performed services in any such capacity for
any educational institution or agency for the first of such
academic years or terms; and
(2) such individual has a contract to perform services in any
such capacity for any educational institution or agency for the
latter of such academic years or terms.
This title may be cited as the " Department of Labor Appropriation
Act, 1976".
For carrying out, except as otherwise provided, titles III, V, Xi,
XII, and XIII of the Public Health Service Act, // 42 USC 241, 219,
300b, 300d, 300e, 42 USC 253b // the Act of August 8, 1946 (5 U.S.C.
7901), section 1 of the Act of July 19, 1963 (42 U.S.C. 253a), section
108 of Public Law 93 - 353, and titles V and XI of the Social Security
Act, $557,693,000, of which $1,200,000 shall be available only for
payments to the State of Hawaii for care and treatment of persons
afflicted with leprosy: Provided, That any amounts received by the
Secretary in connection with loans and loan guarantees under title XIII
and any other property or assets derived by him from his operations
respecting such loans and loan guarantees, including any money derived
from the sale of assets, shall be available to the Secretary without
fiscal year limitation for direct loans and loan guarantees, as
authorized by said title XIII, in addition to funds specifically
appropriated for that purpose: Provided further, That this
appropriation shall be available for payment of the costs of medical
care, related expenses, and burial expenses, hereafter incurred, by or
on behalf of any person who has participated in the study of untreated
syphilis initiated in Tuskegee, Alabama, in 1932, in such amounts and
subject to such terms and conditions as prescribed by the Secretary of
Health, Education, and Welfare, and for payment,in such amounts and
subject to such terms and conditions, of such costs and expenses
hereafter incurred by or on behalf of such person's wife or offspring
determined by the Secretary to have suffered injury or disease from
syphilis contracted from such person: Provided further, That when the
Health Services Administration operates an employee health program for
any Federal department or agency, payment for the estimated cost shall
be made by way of reimbursement or in advance to this appropriation:
Provided further, That in addition, $26,671,000 may be transferred to
this appropriation as authorized by section 201(g)(1) of the Social
Security Act, // 42 USC 401. // from any one or all of the trust funds
referred to therein.
For " Health services" for the period July 1, 1976, through September
30, 1976, $135,126,000: Provided, That not to exceed $7,021,000 may be
transferred and expended as authorized by section 201(g)(1) of the
Social Security Act, from any one or all of the trust funds referred to
therein: Provided further, That any amounts received by the Secretary
in connection with loans and loan guarantees under title XIII and any
other property or assets derived by him from his operations respecting
such loans and loan guarantees, including any money derived from the
sale of assets, shall be available to the Secrectary without fiscal year
limitation for direct loans and loan guarantees, as authorized by said
title XIII, in addition to funds specifically appropriated for that
purpose: Provided further, That this appropriation shall be available
for payment of the costs of medical care, related expenses, and burial
expenses, hereafter incurred, by or on behalf of any person who has
participated in the study of untreated syphilis initiated in Tuskegee,
Alabama, in 1932, in such amounts and subject ot such terms and
conditions as prescribed by the Secretary of Health, Education, and
Welfare, and for payment, in such amounts and subject to such terms and
conditions, of such costs and expenses hereafter incurred by or on
behalf of such person's wife or offspring determined by the Secretary to
have suffered injury or disease from syphilis contracted from such
person: Provided further, That when the Health Services Administraton
operates an employee health program for any Federal department or
agency, payment for the estimated cost shall be made by way of
reimbursement or in advance to this appropriation: Provided further,
That $300,000 shall be available for payment to the State of Hawaii for
care and treatment of persons afflicted with leprosy.
To carry out, to the extent not otherwise provided, title III of the
Public Health Service Act, // 42 USC 241. // the Federal Coal Mine
Health and Safety Act of 1969, // 30 USC 801 // and the Occupational
Safety and Health Act of 1970; // 29 USC 651 // including insurance of
official motor vehicles in foreign countries; and purchase, hire,
maintenance, and operation of aircraft; $108,971,000: Provided, That
training of employees of Federal, State, and local governments and of
private agencies, shall be made subject to reimbursement or advances to
this appropriation for the full cost of such training.
For " Preventive health services" for the period July 1, 1976,
through September 30, 1976, including insurance of official motor
vehicles in foreign countries, and purchase, hire, maintenance, and
operation of aircraft; $28,032,000: Provided, That training of
employees of Federal, State, and local governments and of private
agencies, shall be made subject to reimbursement or advances to this
appropriation for the full cost of such training.
For carrying out, to the extent not otherwise provided, title IV,
part A, of the Public Health Service Act, // 42 USC 281. // with
respect to cancer, $743,564,000 including $25,000,000 for construction
and renovation which shall remain available until expended.
For the " National Cancer Institute" for the period July 1, 1976,
through September 30, 1976, $149,700,000.
For expenses, not otherwise provided for, necessary to carry out
title III of the Public Health Service Act, // 42 USC 241. //
$349,059,000.
For the "national Heart and Lung Institute" for the period July 1,
1976, through September 30, 1976, $58,015,000.
For expenses, not otherwise provided for, to carry out title IV, part
C, of the Public Health Service Act, // 42 USC 288. // $45,794,000.
For the " National Institute of Dental Research" for the period July
1, 1976, through September 30, 1976, $7,674,000.
For expenses necessary to carry out title IV, part D, of the Public
Health Service Act, // 42 USC 289. // with respect to arthritis,
rheumatism, metabolic diseases, and digestive diseases, $175,172,000.
For the " National Institute of Arthritis, Metabolism and Digestive
Diseases" for the period July 1, 1976, through September 30, 1976,
$43,052,000.
For expenses necessary to carry out, to the extent not otherwise
provided, title IV, part D, of the Public Health Service Act with
respect to neurology and stroke, $136,546,000.
For the " National Institute of Neurological and Communicative
Disorders and Stroke" for the period July 1, 1976, through September 30,
1976, $32,964,000.
For expenses, not otherwise provided for, to carry out title IV, part
D, of the Public Health Service Act with respect ot allergy and
infectious diseases, $118,918,000.
For the " National Institute of Allergy and Infectious Diseases" for
the period July 1, 1976, through September 30, 1976, $26,974,000.
For expenses, not otherwise provided for, necessary to carry out
title IV, part E, of the Public Health Service Act, // 42 USC 289d. //
with respect to general medical sciences, $146,461,000.
For " National Institute of General Medical Sciences" for the period
July 1, 1976, through September 30, 1976, $32,961,000.
To carry out, except as otherwise provided, title IV, part E and
title X of the Public Health Service Act, // 42 USC 300. // with
respect to child health and human development, $126,889,000.
For " National Institute of Child Health and Human Development" for
the period July 1, 1976, through September 30, 1976, $23,566,000.
To carry out, except as otherwise provided, title IV, part H of the
Public Health Service Act, // 42 USC 289k-2. // with respect to aging,
$17,526,000.
For the " National Institute on Aging" for the period July 1, 1976,
through September 30, 1976, $3,943,000.
For expenses necessary to carry out title IV, part F of the Public
Health Service Act, // 42 USC 289i. // with respect to eye diseases and
visual disorders, $45,565,000.
For the " National Eye Institute" for the period July 1, 1976,
through September 30, 1976, $9,103, 000.
To carry out, except as otherwise provided, sections 301 and 311 of
the Public Health Service Act, // 42 USC 241, 243. // with respect to
environmental health sciences, $35,915,000.
For the " National Institute of Environmental Health Sciences" for
the period July 1, 1976, through September 30, 1976, $7,540,000.
To carry out, except as otherwise provided, section 301 of the Public
Health Service Act with respect to research resources and general
research support grants, $129,931,000: Provided, That none of these
funds shall be used to pay recipients of the general research support
grants programs any amount for indirect expenses in connection with such
grants.
For " Research resources" for the period July 1, 1976, through
September 30, 1976, $20,195,000.
For the John E. Fogarty International Center for Advanced Study in
the Health Sciences, $5,705,000, of which not to exceed $860,000 shall
be available for payment to the Gorgas Memorial Institute for
maintenance and operation of the Gorgas Memorial Laboratory.
For " John E. Fogarty International Center for Advanced Study in the
Health Sciences" for the period July 1, 1976, through September 30,
1976, $1,135,000.
To carry out, to the extent not otherwise provided for, section 301
with respect to health information communications and parts I and J of
title III of the Public Health Service Act, // 42 USC 2891, 290a. //
$29,065,000.
For the " Natonal Library of Medicine" for the period July 1, 1976,
through September 30, 1976, $6,572,000.
For construction of, and acquisition of sites and equipment for,
facilities of or used by the National Institutes of Health, where not
otherwise provided, $54,000,000, to remain available until expended.
For " Buildings and facilities" for the period July 1, 1976, through
September 30, 1976, $750,000, to remain available until expended.
For expenses necessary for the Office of the Director, National
Institutes of Health, $17,896,000.
Funds advanced to the National Institutes of Health management fund
from appropriations in this Act shall be available for the expenses of
sharing medical care facilities and resources pursuant to section 328 of
the Public Health Service Act, // 42 USC 254a. // and for the purchase
of not to exceed thirteen passenger motor vehicles for replacement only.
For " Office of the Director" for the period July 1, 1976, through
September 30, 1976, $4,474,000.
For carrying out the Public Health Service Act with respect to mental
health and, except as otherwise provided, the Community Mental Health
Centers Act (42 U.S.C. 2681, et seq.), the Comprehensive Alcohol Abuse
and Alcoholism Prevention, Treatment, and Rehabilitation Act of 1970, //
42 USC 4551 note. // as amended, and the Narcotic Addict Rehabilitation
Act of 1966, // 42 USC 3401 note. // $579,554,000.
For " Alcohol, drug abuse, and mental health" for the period July 1,
1976, through September 30, 1976, $84,104,000.
For expenses necessary for the maintenance and operation of the
hospital, including clothing for patients, and cooperation with
organizations or individuals in the scientific research into the nature,
causes, prevention, and treatment of mental illness, $48,064,000, or
such amounts as may be necessary to provide a total appropriation equal
to the difference between the amount of the reimbursements received
during the current fiscal year on account of patient care provided by
the hospital during such year and $75,186,000.
For expenses necessary for the maintenance and operation of the
hospital, including clothing for patients, and cooperation with
organizations or individuals in the scientific research into the nature,
causes, prevention, and treatment of mental illness, $15,500,000, or
such amounts as may be necessary to provide a total appropriation equal
to the difference between the amount of the reimbursements received
during the period of July 1, 1976, through September 30, 1976, on
account of patient care provided by the hospital during that period and
$20,500,000.
For construction, alterations, extension, and equipment of buildings
and facilities on the grounds of Saint Elizabeths Hospital, $5,400,000,
to remain available until expended.
For carrying out, to the extent otherwise provided, section 422,
titles III, VII, VIII, XV, and XVI of the Public Health Service Act, //
42 USC 288a, 241, 292, 296, 300k-1, 300o. // section 1122 of the Social
Security Act, // 42 USC 1320a-1. 86 Stat. 1390. D.C. Code 31 - 921
note. // section 222 of the Social Security Amendments of 1972, and the
District of Columbia Medical and Dental Manpower Act of 1970, as
amended, $347,428,000, of which $7,575,000 shall remain available until
expended for carrying out section 305(b)(3) of the Public Health Service
Act, // 42 USC 242c. // and $3,000,000 shall be available for loan
guarantees and interest subsidies under part B of title VII and part A
of titile VIII and shall remain available until expended and not to
exceed $100,000,000 for title XVI shall remain available through
September 30, 1978: Provided, That, in addition, $42,000 may be
transferred to this appropriation, as authorized by section 201(g) of
the Social Security Act, // 42 USC 401. // from any one or all of the
trust funds referred to therein: Provided further, That not to exceed
$74,260,000 shall be available and expended for medical facilities
construction authorized under title XVI of the Public Health Service
Act.
For " Health resources" for the period July 1, 1976, through
September 30, 1976, $78,255,000: Provided, That in addition, $11,000
may be transferred to this appropriation, as authorized by section 201(
g) of the Social Security Act from any one or all of the trust funds
referred to therein.
To carry out section 1622 of the Public Health Service Act, // 42 USC
300q-2. // $10,000,000 shall be available without fiscal year
limitations for the payment of interest subsidies.
For the " Medical facilities guarantee and loan fund," for the period
July 1, 1976, through September 30, 1976, $7,000,000 to remain available
until expended.
For the payment of such insufficiencies as may be required by the
trustee on account of outstanding beneficial interest or participations
in the Health Professions Education Fund assets or Nurses Training Fund
assets, authorized by the Department of Health, Education, and Welfare
Appropriation Act, // 81 Stat. 390. 12 USC 1717. // 1968, to be issued
pursuant to section 302(c) of the Federal National Mortgage Association
Charter Act, $164,000, and for payment of amounts pursuant to section
744(b) or 827(b) of the Public Health Service Act, // 42 USC 294d, 297f.
// to schools which borrow any sums from the Health Professions
Education Fund or Nurse Training Fund, $3,836,000: Provided, That the
amounts appropriated herein shall remain available until expended.
The Secretary is hereby authorized to make such expenditures, within
the limits of funds available in the Health Professions Education Fund
and the Nurse Training Fund, and in accord with law, and to make such
contracts and commitments without regard to fiscal year limitation as
provided by section 104 of the Government Corporation Control Act, // 31
USC 849. // as amended, as may be necessary in carrying out the
programs set forth in the budget for the current fiscal year and for the
period July 1, 1976, through September 30, 1976.
For expenses necessary for the Office of the Assistant Secretary for
Health, $20,842,000.
For " Assistant Secretary for Health", for the period July 1, 1976,
through September 30, 1976, $5,210,000.
For retired pay of commissioned officers, as authorized by law, and
for payments under the Retired Serviceman's Family Protection Plan;
Survivor Benefit Plan and payments for medical care of dependents and
retired personnel under the Dependents' Medical Care Act (10 U.S.C., ch.
55), such amount as may be required during the current fiscal year.
For " Retirement pay and medical benefits for commissioned officers,"
such amount as may be required during the period of July 1, 1976,
through September 30, 1976.
For carrying out, except as otherwise provided, titles I, IV, VI, X,
XI, XIV, XVI, XIX, and XX of the Social Security Act, and the Act of
July 5, 1960 (24 U.S.C., ch. 9) $15,003,950,000, of which $52,500,000
shall be for child welfare services under part B of title IV.
For making, after March 31, of the current fiscal year, payments to
States under titles I, IV, VI, X, XIV, XVI, XIX, and XX, respectively,
of the Social Security Act, // 42 USC 620. // for the last three months
of the current fiscal year (except with respect to activities included
in the appropriation for " Work incentives"); and for making, after
April 30 of the current fiscal year, payments for the period July 1,
1976, through September 30, 1979, such sums as may be necessary, the
obligations incurred and the expenditures made thereunder for payments
under each of such titles to be charged to the subsequent appropriations
therefor for the current or succeeding fiscal year or the period July 1,
1976, through September 30, 1976, or fiscal year 1977.
In the administration of titles I, IV (other than part C thereof),
VI, X, XIV, XVI, XIX, and XX, respectively, of the Social Security Act,
payments to a State under any such titles for any quarter in the period
beginning April 1 of the prior year, and ending June 30 of the current
year may be made with respect to a State plan approved under such title
prior to or during such period, but no such payment shall be made with
respect to any plan for any quarter prior to the quarter in which a plan
was submitted which was subsequently approved.
Such amounts as may be necessary from this appropriation shall be
available for grants to States for any period in the prior fiscal year
subsequent to March 31 of that year.
For " Public assistance" for the period July 1, 1976, through
September 30, 1976, $3,965,000,000, of which $12,500,000 shall be for
child welfare services under part B of title IV of the Social Security
Act.
For making, after June 30, 1976, payments to States under titles I,
IV, VI, X, XIV, XVI, XIX, and XX, respectively, of the Social Security
Act, for the first quarter of fiscal year 1977 (except with respect to
activities included in the appropriation for " Work incentives") and for
the period July 1, 1976, through September 30, 1976, such sums as may be
necessary, the obligations incurred and the expenditures made thereunder
for payments under each of such titles to be charged to the subsequent
appropriations therefor for the transitional period or fiscal year 1977.
In the administration of titles I, IV (other than part C thereof),
VI, X, XIV, XVI, XIX, and XX, respectively, of the Social Security Act,
payments to a State under any such titles for any quarter in the period
beginning April 1 of fiscal year 1976 and ending September 30, 1976, may
be made with respect to a State plan approved under such title prior to
or during such period, but no such payment shall be made with respect to
any plan for any quarter prior to the quarter in which a plan was
submitted which was subsequently approved.
Such amounts as may be necessary from this appropriation shall be
available for grants to States for any period in fiscal year 1976
subsequent to March 31 of that year.
For carrying out a work incentive program, as authorized by part C of
title IV of the Social Security Act, // 42 USC 630. // including
registration of individuals for such program, and for related child care
and supportive services, as authorized by section 402(a)(19)(G) of the
Act, // 42 USC 602. // including transfer to the Secretary of Labor, as
authorized by section 431 of the Act, // 42 USC 631. // $330,000,000,
which shall be the maximum amount available for transfer to the
Secretary of Labor and to which the States may become entitled, pursuant
to section 403(d) of such Act, // 42 USC 603. // for these purposes.
For " Work incentives" for the period July 1, 1976, through September
30, 1976, $80,000,000, which shall be the maximum amount available for
transfer to the Secretary of Labor and to which the States may become
entitled.
For expenses, not otherwise provided, necessary for the Social and
Rehabilitation Service, $60,378,000.
For " Salaries and expenses" for the period July 1, 1976, through
September 30, 1976, $15,219,000.
For payment to the Federal Old-Age and Survivors Insurance, the
Federal Disability Insurance, the Federal Hospital Insurance, and the
Federal Supplementary Medical Insurance Trust Funds, as provided under
sections 217(g), 228(g), 229(b), and 1844 of the Social Security Act, //
42 USC 417, 428, 429, 1395w. // and sections 103(c) and 111(d) of the
Social Security Amendments of 1965, $4,112,747,000 and to the Federal
Buildings Fund an additional amount not to exceed $10,616,000 for
payment of the Standard Level User Charge pursuant to section 210( j) //
42 USC 426a, 1395i-1. // of the Federal Property and Administrative
Services Act of 1949. // 40 USC 490. //
For " Payments to the Social Security Trust and Other Funds" for the
period July 1, 1976, through September 30, 1976, $880,940,000, including
$2,940,000 for the Federal Buildings Fund for payment of the Standard
Level User Charge.
For carrying out title IV of the Federal Coal Mine Health and Safety
Act of 1969, // 30 USC 901. // including the payment of travel expenses
either on an actual cost or commuted basis, to an individual for travel
incident to medical examination, and to parties, their representatives
and all reasonably necessary witnesses for travel within the United
States, Puerto Rico, and the Virgin Islands, to reconsideration
interviews and to proceedings before administrative law judges,
$999,778,000: Provided, That such amounts as may be agreed upon by the
Department of Health, Education, and Welfare and the Postal Service
shall be used for payment, in such manner as said parties may jointly
determine, of postage for the transmission of official mail matter by
States in connection with the administration of said Act.
Benefit payments after April 30: For making, after April 30 of the
current fiscal year, payments to entitled beneficiaries under title IV
of the Federal Coal Mine Health and Safety Act of 1969, // 30 USC 901.
// for the last two months of the current fiscal year, such sums as may
be necessary, the obligations and expenditures therefor to be charged to
the appropriation for the succeeding fiscal year.
Whenever the Commissioner of Social Security finds it will promote
the achievement of the provisions of title IV of the Federal Coal Mine
Health and Safety Act of 1969, qualified persons may be appointed to
conduct hearings thereunder without meeting the requirements for
administrative law judges appointed under 5 U.S.C. 3105 but such
appointments shall terminate not later than December 31, 1976:
Provided, That no person shall hold a hearing in any case with which he
has been concerned previously in the administration of such title.
For " Special benefits for disabled coal miners" for the period July
1, 1976, through September 30, 1976, $234,600,000, including the payment
of travel expenses either on an actual cost or commuted basis, to an
individual for travel incident to medical examinations, and to parties,
their representatives and all reasonably necessary witnesses for travel
within the United States, Puerto Rico, and the Virgin Islands, to
reconsideration interviews and to proceedings before administrative law
judges.
For carrying out the Supplemental Security Income program under title
XVI of the Social Security Act, // 42 USC 1381. 42 USC 1382e // section
401 of Public Law 92 - 603, and section 212 of Public Law 93 - 66,
including payment to the social security trust funds for administrative
expenses incurred pursuant to section 201(g)(1) of the Social Security
Act, // 87 Stat. 155, 957. 42 USC 401. // $5,518,523,000: Provided,
That for carrying out these activities for the last two months of the
current fiscal year, such sums as may be necessary shall be available,
the obligations and expenditures therefor to be charged to the
appropriation for the succeeding fiscal period or fiscal year 1977.
For " Supplemental security income program" for the period July 1,
1976, through September 30, 1976, $1,503,541,000: Provided, That for
the last two months of the fiscal period, such sums as may be necessary
shall be available, the obligations and expenditures therefor to be
charged to the appropriation for the succeeding fiscal year.
For necessary expenses, not more than $2,373,133,612 may be expended
as authorized by section 201(g)(1) of the Social Security Act, // 42 USC
421 // from any one or all of the trust funds referred to therein:
Provided, That such amounts as are required shall be available to pay
travel expenses either on an actual cost or commuted basis, to an
individual for travel incident to medical examinations, and to parties,
their representatives and all reasonably necessary witnesses for travel
within the United States, Puerto Rico, and the Virgin Islands to
reconsideration interviews and to proceedings before administrative law
judges under titles II, XVI, and XVIII of the Social Security Act: //
42 USC 401, 1381, 1395. // Provided further, That $25,000,000 of the
foregoing amount shall be apportioned for use pursuant to section 3679
of the Revised Statutes (31 U.S.C. 665), only to the extent necessary to
process workloads not anticipated in the budget estimates and to meet
mandatory increases in costs of agencies or organizations with which
agreements have been made to participate in the administration of titles
XVI and XVIII and section 221 of title II of the Social Security Act,
and after maximum absorption of such costs within the remainder of the
existing limitation has been achieved: Provided further, That such
amounts as may be agreed upon by the Department of Health, Education,
and Welfare and the United States Postal Service shall be used for
payment, in such manner as said organizations may jointly determine, of
postage for the transmission of official mail matter in connection with
the administration of the social security program by States
participating in the program: Provided further, That such amounts as
may be required may be expended for administration within the United
States of the social insurance program of the United Kingdom, under
terms of an agreement wherein similar services will be provided by the
United Kingdom in that country for administration of the social
insurance program of the United States: Provided further, That all of
the permanent positions authorized for this appropriation shall be
full-time permanent positions without limitation as to the duration of
the positions.
For " Limitation on salaries and expenses" for the period July 1,
1976, through September 30, 1976, $629,900,403 may be expended as
authorized by section 201(g)(1) of the Social Security Act, // 42 USC
401. 42 USC 421 note. // from any one or all of the trust funds
referred to therein: Provided, That such amounts as are required shall
be available to pay travel expenses either on an actual cost or commuted
basis, to an individual for travel incident to medical examinations, and
to parties, their representatives and all reasonably necessary witnesses
for travel within the United States, Puerto Rico, and the Virgin Islands
to reconsideration interviews and to proceedings before administrative
law judges under titles II, XVI, and XVIII of the Social Security Act:
Provided further, That $25,000,000 of the foregoing amount shall be
apportioned for use pursuant to section 3679 of the Revised Statutes (31
U.S.C. 665), only to the extent necessary to process workloads not
anticipated in the budget estimates and to meet mandatory increases in
costs of agencies or organizations with which agreements have been made
to participate in the administration of titles XVI and XVIII and section
221 of title II of the Social Security Act, and after maximum absorption
of such costs within the remainder of the existing limitation has been
achieved: Provided further, That such amounts as may be agreed upon by
the Department of Health, Education, and Welfare and the United States
Postal Service shall be used for payment, in such manner as said
organizations may jointly determine, of postage for the transmission of
official mail matter in connection with the administration of the social
security program by States participating in the program: Provided
further, That such amounts as may be required may be expended for
administration within the United States of the social insurance program
of the United Kingdom, under terms of an agreement wherein similar
services will be provided by the United Kingdom in that country for
administration of the social insurance program of the United States:
Provided further, That all of the permanent positions authorized for
this appropriation shall be full-time permanent positions without
limitations as to the duration of the positions.
For acquisition of sites, construction and equipment of facilities
and for payments of principal, interest, taxes, and any other
obligations under contracts entered into pursuant to the Public
Buildings Purchase Contract Act of 1954 // 40 USC 356 // and the Public
Buildings Amendments of 1972, $6,300,000, to be expended as authorized
by section 201(g)(1) of the Social Security Act, // 40 USC 603 // from
any one or all of the trust funds referred to therein, and to remain
available until expended.
For " Limitation on construction" for the period July 1, 1976,
through September 30, 1976, $3,633,000, to be expended as authorized by
section 201(g)(1) of the Social Security Act, from any one or all of the
trust funds referred to therein, and to remain available until expended.
For carrying out, except as otherwise provided, section 426 of the
Social Security Act, the Act of April 9, 1912 (42 U.S.C. 191), title VII
of the Older Americans Act of 1965, the Child Abuse Prevention and
Treatment Act, the Juvenile Justice and Delinquency Prevention Act of
1974, the Community Services Act of 1974, sections 106, 107, and 306 of
the Comprehensive Employment and Training Act of 1973, the
Rehabilitation Act of 1973, the International Health Research Act of
1960, and section 303(a)(2) of the Public Health Service Act,
$1,516,858,318, of which $720,000,000 shall be for activities under
section 110(a) of the Rehabilitation Act of 1973, $309,318 shall be for
section 110(b) of such Act, and for carrying out sections 301 and 304(
b)(3) of such Act, $1,500,000, to remain available until expended:
Provided, That there may be transferred to this appropriation from the
appropriation under the heading " Alcohol, drug abuse, and mental
health" an amount not to exceed the sum of the allotment adjustment made
by the Secretary pursuant to section 202(c) of the Community Mental
Health Centers Act; together with not to exceed $600,000 to be
transferred from the Federal Disability Insurance Trust Fund and the
Federal Old-Age and Survivors Insurance Trust Fund as provided by
section 201(g)(1) of the Social Security Act: Provided further, That
the level of operations for the nutrition services for the elderly
program shall be $187,500,000 per annum.
For " Human development" for the period July 1, 1976, through
September 30, 1976, $371,505,000, of which $180,000,000 shall be for
activities under section 110 of the Rehabilitation Act of 1973:
Provided, That there be transferred to this appropriation from the
appropriation under the heading " Alcohol, drug abuse, and mental
health" an amount not to exceed the sum of the allotment adjustment made
by the Secretary pursuant to section 202(c) of the Community Mental
Health Centers Act; together with not to exceed $150,000 to be
transferred from the Federal Disability Insurance Trust Fund and the
Federal Old-Age and Survivors Insurance Trust Fund, as provided in
section 201(g)(1) of the Social Security Act.
For expenses necessary for the Office for Civil Rights $24,686,000,
together with not to exceed $1,351,000, to be transferred and expended
as authorized by section 201(g)(1) of the Social Security Act, // 42 USC
401. // from any one or all of the trust funds referred to therein.
For " Office for Civil Rights" for the period July 1, 1976, through
September 30, 1976, $6,379,000: Provided, That in addition, not to
exceed $352,000 may be transferred and expended as authorized by section
201(g)(1) of the Social Security Act, from any one or all of the trust
funds referred to therein.
For expenses, not otherwise provided, necessary for departmental
management, including hire of six medium sedans, $85,519,000 together
with not to exceed $12,751,000 to be transferred and expended as
authorized by section 201(g)(1) of the Social Security Act from any one
or all of the trust funds referred to therein.
For " General departmental management" for the period July 1, 1976,
through September 30, 1976, $22,160,000, including hire of six medium
sedans: Provided, That in addition not to exceed $3,284,000 may be
transferred and expended as authorized by section 201(g)(1) of the
Social Security Act, from any one or all of the trust funds referred to
therein.
For carrying out, to the extent not otherwise provided, research
studies under section 232 of the Community Services Act of 1974 // 42
USC 2825. // and section 1110 of the Social Security Act, // 42 USC
1310. // $24,950,000.
For " Policy research" for the period July 1, 1976, through September
30, 1976, $6,575,000.
Sec. 201. None of the funds appropriated by this title to the Social
and Rehabilitation Service for grants-in-aid of State agencies to cover,
in whole or in part, the cost of operation of said agencies, including
the salaries and expenses of officers and employees of said agencies,
shall be withheld from the said agencies of any States which have
extablished by legislative enactment and have in operation a merit
system and classification and compensation plan covering the selection,
tenure in office, and compensation of their employees, because of any
disapproval of their personnel or the manner of their selection by the
agencies of the said States, or the rates of pay of said officers or
employees.
Sec. 202. The Secretary is authorized to made such transfers of
motor vehicles, between bureaus and officers, without transfer of funds,
as may be required in carrying out the operations of the Department.
Sec. 203. None of the funds provided herein shall be used to pay any
recipient of a grant for the conduct of a research project an amount
equal to as much as the entire cost of such project.
Sec. 204. None of the funds contained in this Act shall be used for
any activity the purpose of which is to require any recipient of any
project grant for research, training, or demonstration made by any
officer or employee of the Department of Health, Education, and Welfare
to pay to the United States any portion of any interest or other income
earned on payments of such grant made before July 1, 1964; nor shall
any of the funds contained in this Act be used for any activity the
purpose of which is to require payment to the United States of any
portion of any interest or other income earned on payments made before
July 1, 1964, to the American Printing House for the Blind.
Sec. 205. None of the funds contained in this title shall be
available for additional permanent positions in the Washington area if
the total authorized positions in the Washington area is allowed to
exceed the proportion existing at the close of fiscal year 1966.
Sec. 206. Appropriations in this Act for the Health Services
Administration, the National Institutes of Health, the Center for
Disease Control, the Alcohol, Drug Abuse, and Mental Health
Administration, the Health Resources Administration and the Office of
the Secretary shall be available for expenses for active commissioned
officers in the Public Health Service Reserve Corps and for not to
exceed two thousand eight hundred commissioned officers in the Regular
Corps; expenses incident to the dissemination of health information in
foreign countries through exhibits and other appropriate means;
advances of funds for compensation, travel, and subsistence expenses (or
per diem in lieu thereof) for persons coming from abroad to participate
in health or scientific activities of the Department pursuant to law;
expenses of primary and secondary schooling of dependents in foreign
countries, of Public Health Service commissioned officers stationed in
foreign countries, at costs for any given area not in excess of those of
the Department of Defense for the same area, when it is determined by
the Secretary that the schools available in the locality are unable to
provide adequately for the education of such dependents, and for the
transportation of such dependents between such schools and their places
of residence when the schools are not accessible to such dependents by
regular means of transportation; rental or lease of living quarters
(for periods not exceeding 5 years), and provision of heat, fuel, and
light, and maintenance, improvement, and repair of such quarters, and
advance payments therefor, for civilian officers, and employees of the
Public Health Service who are United States citizens and who have a
permanent station in a foreign country; purchase, erection, and
maintenance of temporary or portable structures; and for the payment of
compensation to consultants or individual scientists appointed for
limited periods of time pursuant to section 207(f) or section 207(g) of
the Public Health Service Act, // 42 USC 208. // at rates established
by the Assistant Secretary for Health, or the Secretary where such
action is required by statute, not to exceed the per diem rate
equivalent to the rate for GS-18; not to exceed $9,500 in the current
fiscal year and $2,375 in the period July 1, 1976, through September 30,
1976, for official reception and representation expenses related to any
health agency of the Department when specifically approved by the
Assistant Secretary for Health.
Sec. 207. No part of the funds contained in this title may be used to
force any school or school district which is desegregated as that term
is defined in title IV of the Civil Rights Act of 1964, Public Law 88 -
352, // 42 USC 2000c. // to take any action to force the busing of
students; to force on account of race, creed, or color the abolishment
of any school so desegregated; or to force the transfer or assignment
of any student attending any elementary or secondary school so
desegregated to or from a particular school over the protest of his or
her parents or parent.
Sec. 208. (a) No part of the funds contained in this title shall be
used to force any school or school district which is desegregated as
that term is defined in title IV of the Civil Rights Act of 1964, Public
Law 88 - 352, // 42 USC 2000c. // to take any action to force the
busing of students; to require the abolishment of any school so
desegregated; or to force on account of race, creed, or color the
transfer of students to or from a particular school so desegregated as a
condition precedent to obtaining Federal funds otherwise available to
any State, school district, or school.
(b) No funds appropriated in this Act may be used for the
transportation of students or teachers (or for the purchase of equipment
for such transportation) in order to overcome racial imbalance in any
school or school system, or for the transportation of students or
teachers (or for the purchase of equipment for such transportation) in
order to carry out a plan of racial desegregation of any school or
school system.
Sec. 209. None of the funds contained in this Act shall be used to
require, directly or indirectly, the transportation of any student to a
school other than the school which is nearest the student's home, and
which offers the courses of study pursued by such student, in order to
comply with title VI of the Civil Rights Act of 1964. // 42 USC 2000d.
//
For expenses necessary for Action to carry out the provisions of the
Domestic Volunteer Service Act of 1973 (Public Law 93 - 113), // 42 USC
4951 note. // $103,266,000.
For expenses necessary for Action to carry out the Domestic Volunteer
Service Act of 1973 (Public Law 93 - 113) for the period July 1, 1976,
through September 30, 1976, $21,083,000.
For expenses of the Community Services Administration, $494,652,000:
Provided, That the appropriation for " Community service program"
contained in title I, chapter VI of Public Law 94 - 32 (Second
Supplemental Appropriations Act, 1975) // 89 Stat. 178. // is amended
by striking out " September 30, 1975" and inserting in lieu thereof "
June 30, 1976".
For " Community service program" for the period July 1, 1976, through
September 30, 1976, $129,746,000.
For expenses necessary for the Federal Mediation and Conciliation
Service to carry out the functions vested in it by the Labor-Management
Relations Act, 1947 (29 U.S.C. 171 - 180, 182), including expenses of
the Labor-Management Panel and boards of inquiry appointed by the
President; hire of passenger motor vehicles; and rental of conference
rooms in the District of Columbia; and expenses necessary pursuant to
Public Law 93 - 360 // 88 Stat. 395. // for mandatory mediation in
health care industry negotiation disputes, and for convening factfinding
boards of inquiry appointed by the Director in the health care industry,
$17,904,000.
For " Salaries and expenses" for the period July 1, 1976, through
September 30, 1976, $4,476,000.
For necessary expenses of the National Commission on Libraries and
Information Science, established by the Act of July 20, 1970 (Public Law
91 - 345), // 20 USC 1501 // $468,000.
For " Salaries and expenses" for the period July 1, 1976, through
September 30, 1976, $117,000.
For expenses necessary for the National Labor Relations Board to
carry out the functions vested in it by the Labor-Management Relations
Act, 1947, as amended (29 U.S.C. 141 - 167), and other laws,
$67,766,000: Provided, That no part of this appropriation shall be
available to organize or assist in organizing agricultural laborers or
used in connection with investigations, hearings, directives, or orders
concerning bargaining units composed of agricultural laborers as
referred to in section 2(3) of the Act of July 5, 1935 (29 U.S.C. 152),
and as amended by the Labor-Management Relations Act, 1947, as amended,
and as defined in section 3(f) of the Act of June 25, 1938 (29 U.S.C.
203), and including in said definition employees engaged in the
maintenance and operation of ditches, canals, reservoirs, and waterways
when maintained or operated on a mutual, non profit basis and at least
95 per centum of the water stored or supplied thereby is used for
farming purposes.
For " Salaries and expenses" for the period July 1, 1976, through
September 30, 1976, $16,941,000.
For expenses necessary for carrying out the provisions of the Railway
Labor Act, as amended (45 U.S.C. 151 - 188), including emergency boards
appointed by the President, $3,405,000.
For " Salaries and expenses" for the period July 1, 1976, through
September 30, 1976, $850,000.
For expenses necessary for the Occupational Safety and Health Review
Commission, $5,638,000.
For " Salaries and expenses" for the period July 1, 1976, through
September 30, 1976, $1,418,000.
For payment to the Railroad Retirement Account, as provided under
sections 15(b) and 15(d) of the Railroad Retirement Act of 1974, // 45
USC 231n. // $250,000,000.
For payment of benefits under section 509 of the Regional Rail
Reorganization Act of 1973, // 45 USC 779. // including not to exceed
$100,000 for payment to the Railroad Retirement Board for administrative
expenses, $37,600,000.
For " Regional rail transportation protective account" for the period
July 1, 1976, through September 30, 1976, including not to exceed
$30,000 for payment to the Railroad Retirement Board for administrative
expenses, $10,030,000.
For expenses necessary for the Railroad Retirement Board,
$28,703,000, to be derived from the railroad retirement accounts:
Provided, That $500,000 of the foregoing amount shall be apportioned for
use pursuant to section 3679 of the Revised Statutes, as amended (31
U.S.C. 665), only to the extent necessary to process workloads not
anticipated in the budget estimates and after maximum absorption of the
costs of such workloads within the remainder of the foregoing limitation
has been achieved.
For " Limitation on salaries and expenses" for the period July 1,
1976, through September 30, 1976, $7,175,000 to be derived from the
railroad retirement accounts.
For maintenance and operation of the United States Soldiers' and
Airmen's Home, to be paid from the Soldiers' and Airmen's Home permanent
fund, $15,665,000: Provided, That this appropriation shall not be
available for the payment of hospitalization of members of the Home in
United States Army hospitals at rates in excess of those prescribed by
the Secretary of the Army upon recommendation of the Board of
Commissioners of the Home and the Surgeon General of the Army.
For " Operation and maintenance" for the period July 1, 1976, through
September 30, 1976, $3,905,000.
Sec. 401. Appropriations contained in this Act, available for
salaries and expenses, shall be available for services as authorized by
5 U.S.C. 3109 but at rates for individuals not to exceed the per diem
rate equivalent to the rate for GS-18.
Sec. 402. Appropriations contained in this Act available for salaries
and expenses shall be available for uniforms or allownaces therefor as
authorized by law (5 U.S.C. 5901 - 5902).
Sec. 403. Appropriations contained in this Act available for salaries
and expenses shall be available for expenses of attendance at meetings
which are concerned with the functions or activities for which the
appropriation is made or which will contribute to improved conduct,
supervision, or management of those functions or activities.
Sec. 404. No part of any appropriation contained in this Act shall be
used to finance any Civil Service Interagency Board of Examiners.
Sec. 405. No part of the funds appropriated under this Act shall be
used to provide a loan, guarantee of a loan, a grant, the salary of or
any remuneration whatever to any individual applying for admission,
attending, employed by, teaching at, or doing research at an institution
of higher education who has engaged in conduct on or after August 1,
1969, which involves the use of (or the assistance to others in the use
of) force or the threat of force or the seizure of property under the
control of an institution of higher education, to require or prevent the
availability of certain curriculum, or to prevent the faculty,
administrative officials, or students in such institution from engaging
in their duties or pursuing their studies at such institution.
Sec. 406. The Secretary of Labor and the Secretary of Health,
Education, and Welfare are authorized to transfer unexpended balances of
prior appropriations to accounts corresponding to current appropriations
provided in this Act: Provided, That such transferred balances are used
for the same purpose, and for the same periods of time, for which they
were originally appropriated.
Sec. 407. No part of any appropriation contained in this Act shall
remain available for obligation beyond the current fiscal year unless
expressly so provided herein, except as provided in section 204 of
Public Law 93 - 554. // 88 Stat. 1784. //
Sec. 408. No part of any appropriation contained in this Act shall be
used, other than for normal and recognized executive-legislaive
relationships, for publicity or propaganda purposes, for the
preparation, distribution, or use of any kit, pamphlet, booklet,
publication, radio, television or film presentation designed to support
or defeat legislation pending before the Congress, except in
presentation to the Congress itself.
Sec. 409. No part of any appropriation contained in this Act shall be
available for paying to the Administrator of the General Services
Administration in excess of 90 percent of the standard level user charge
established pursuant to section 210(j) of the Federal Property and
Administrative Services Act of 1949, // 40 USC 492. // as amended, for
space and services.
Sec. 410. The Secretary of Labor and the Secretary of Health,
Education, and Welfare are each authorized to make available not to
exceed $7,500 in the current fiscal year and $1,875 in the period July
1, 1976, through September 30, 1976, from funds available for salaries
and expenses under titles I and II, respectively, for official reception
and representation expenses; the Director of the Federal Mediation and
Conciliation Service is authorized to make available for official
reception and representation expenses not to exceed $2,500 in the
current fiscal year and $625 in the period July 1, 1976, through
September 30, 1976, from funds available for " Salaries and expenses,
Federal Mediation and Conciliation Service".
Sec. 411. None of the funds appropriated by this Act shall be used to
pay for any research program or project or any program, project, or
course which is of an experimental nature, or any other activity
involving human participants, which is determined by the Secretary or a
court of competent jurisdiction to present a danger to the physical,
mental, or emotional well-being of a participant or subject of such
program, project, or course, without the written, informed consent of
each participant or subject, or his parents or legal guardian, if such
participant or subject is under eighteen years of age. The Secretary
shall adopt appropriate regualations respecting this section.
This Act may be cited as the " Departments of Labor and Health,
Education, and Welfare Appropriation Act, 1976".
Carl Albert
Speaker of the House of
Representatives.
James O. Eastland
President of the Senate pro
tempore.
IN THE HOUSE OF REPRESENTATIVES, U.S.,
January 27, 1976.
The House of Representatives having proceeded to reconsider the bill
(H.R. 8069) entitled " An Act making appropriations for the Department
of Labor, and Health, Education, and Welfare, and related agencies, for
the fiscal year ending June 30, 1976, and the period ending September
30, 1976, and for other purposes", returned by the President of the
United States with his objections, to the House of Representatives, in
which it originated, it was
Resolved, That the said bill pass, two-thirds of the House of
Representatives agreeing to pass the same.
Attest:
Edmund L. Henshaw, Jr.
Clerk.
Edmund L. Henshaw, Jr.
Clerk.
IN THE SENATE OF THE UNITED STATES,
January 28, 1976.
The Senate having proceeded to reconsider the bill (H.R. 8069)
entitled " An Act making appropriations for the Departments of Labor,
and Health, Education, and Welfare, and related agencies, for the fiscal
year ending June 30, 1976, and the period ending September 30, 1976, and
for other purposes", returned by the President of the United States with
his objections to the House of Representatives, in which it originated,
it was
Resolved, That the said bill pass, two-thirds of the Senators present
having voted in the affirmative.
Attest:
Francis R. Valeo
Secretary.
LEGISLATIVE HISTORY:
HOUSE REPORTS: No. 94 - 311 (Comm. on Appropriations) and No. 94 -
689 (Comm. of Conference).
SENATE REPORT No. 94 - 366 (Comm. on Appropriations).
CONGRESSIONAL RECORD, Vol. 121 (1975):
June 25, considered and passed House.
Sept. 17, 18, 19, 22 - 26, considered and passed Senate,
amended.
Dec. 4, House agreed to conference report.
Dec. 8, Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 11, No. 51:
Dec. 19, Presidential veto message.
CONGRESSIONAL RECORD, Vol. 122 (1976):
Jan. 27, House overrode veto.
Jan. 28, Senate overrode veto.
PUBLIC LAW 94-205, 89 STAT. 1157
Be it enacted by the Senate and House of Representatives of the
United States of Americal in Congress assembled, That this Act may be
cited as the " Real Estate Settlement Procedures Act Amendments of
1975". // 12 USC 2601 note. //
Sec. 2. // 12 USC 2602. // Section 3(1) of the Real Estate
Settlement Procedures Act of 1974 is amended--,
(1) by inserting "(other than temporary financing such as a
construction loan)" immediately after "inlcudes any loan";
(2) by inserting "a first lien on" immediately after " is
secured by" in subparagraph (A);
(3) by striking out "is eligible for purchase by" in s
subparagraph
(B) (iii) and inserting in lieu thereof "is intended to be sold
by the originating lender to";
(4) by striking out "or" the first time it appears in
subparagraph (B) (iii);
(5) by striking out "from any" and "could" in subparagraph (B)
(iii) and inserting in lieu thereof "a" and "is to", respectively;
and
(6) by inserting the following immediately before the semicolon
at the end of subparagraph (B) (iv): ", except that for the
purpose of this Act, the term 'creditor' does not include any
agency or instrumentality of any State".
Sec. 3. Section 4 of the Real Estate Settlement Procedures Act of
1974
//12 USC 2603// is amended--,
(1) by inserting "(a)" immediately before " The Secretary" in
the first sentence;
(2) by striking out the words "minimum" and "unavoidable" in
the parenthetical phrase in the first sentence;
(3) by striking out the last sentence thereof and inserting in
lieu thereof the following new sentences: " The Secretary may, by
regulation, permit the deletion from the form prescribed under
this section of items which are not, under local laws or customs,
applicable in any locality, except that such regulation shall
require that the numberical code prescribed by the Secretary be
retained in forms to be used in all localities. Nothing in this
section may be construed to require that that part of the standard
form which relates to the seller be furnished to the borrower.";
and
(4) by adding at the end thereof the following new
subsection:
made available for inspection by the borrower at or before settlement by
the person conducting the settlement, except that (1) the Secretary may
exempt from the requirements of this section settlements occuring in
localitites where the final settlement statement is not customarily
provided at or before the date of settelment, or settlements where such
requirements are impractical and (2) the borrower may, in accordance
with regulations of the Secretary, waive his right to have the form made
available at such time. Upon the request of the borrower to inspect the
form prescribed under this section during the business day immediately
preceding the day of settlement, the person who will conduct the
settlement shall permit the borrower to inspect those items which are
known to such person during such preceding day.".
Sec. 4. Section 5 of the Real Estate Settlement Procedures Act of
1974 // 12 USC 2604. // is amended--,
(1) by redesignating subsections (c) and (d) as subsections (d)
and (e), respectively;
(2) by inserting after subsection (b) the following new
subsection:
"(c) Each lender shall include with the booklet a good faith estimate
of the amount or range of charges for specific settlement services the
borrower is likely to incur in connection with the settlement as
prescribed by the Secretary.";
(3) by striking out "an application" in the first sentence of
subsection (d), as redesignated by paragraph (1) of this section,
and inserting in lieu thereof "or for whom it prepares a written
application"; and
(4) by inserting "or preparation" immediately after "receipt"
in the second sentence of subsection (d), as redesignated by
paragraph (1) of this section.
Sec. 5. Section 6 of the Real Estate Settlement Procedures Act of
1974 // 12 USC 2605. // is repealed.
Sec. 6. Section 7 of the Real Estate Settlement Procedures Act of
197j // 12 USC 2606. // is repealed.
Sec. 7. Section 8 of the Real Estate Settlement Procedures Act of
1974 // 12 USC 2607. // is amended in subsection (c) by striking out
"or" immediately before "(2)", and by inserting before the period at the
end thereof the following: ", or (3) payments pursuant to cooperative
brokerage and referral arrangements or agreements between real estate
agents and brokers, or (4) such other payments or classes of payments or
other transfers as are specified in regulations prescribed by the
Secretary, after consultation with the Attorney General, the
Administrator of Veterans' Affairs, the Federal Home Loan Bank Board,
the Federal Deposit Insurance Corporation, the Board of Governors of the
Federal Reserve System, and the Secretary of Agriculture".
Sec. 8. Section 10 of the Real Estate Settlement Procedures Act of
1974 // 12 USC 2609. // is amended to read as follows:
" Sec. 10. A lender, in connection with a federally related mortgage
loan, may not require the borrower or prospective borrower--,
"(1) to deposit in any escrow account which may be established
in connection with such loan for the purpose of assuring payment
of taxes, insurance premiums, or other charges with respect to the
property, in connection with the settlement, an aggregate sum (for
such purpose) in excess of a sum that will be sufficient to pay
such taxes, insurance premiums and other charges attributable to
the period beginning on the last date on which each such charge
would have been paid under the normal lending practice of the
lender and local custom, provided that the selection of each such
date constitutes prudent lending practice, and ending on the due
date of its first full installment payment under the mortgage,
plus one-sixth of the estimated total mamount of such taxes,
insurance premiums and other charges to be paid on dates, as
provided above, during the ensuing twelve-month period; or
"(2) to deposit in any such escrow account in any month
beginning with the first full installment payment under the
mortgage a sum (for the purpose of assuring payment of taxes,
insurance premiums and other charges with respect to the property)
in escess of the sum of (A) one-twelfth of the total amount of the
estimated taxes, insurance premiums and other charges which are
reasonably anticipated to be paid on dates during the ensuring
twelve months which dates are in accordance with the normal
lending practice of the lende