§10907. Railroad development

(a) In this section, the term "financially responsible person" means a person who-

(1) is capable of paying the constitutional minimum value of the railroad line proposed to be acquired; and

(2) is able to assure that adequate transportation will be provided over such line for a period of not less than 3 years.

Such term includes a governmental authority but does not include a Class I or Class II rail carrier.

(b)(1) When the Board finds that-

(A)(i) the public convenience and necessity require or permit the sale of a particular railroad line under this section; or

(ii) a railroad line is on a system diagram map as required under section 10903 of this title, but the rail carrier owning such line has not filed an application to abandon such line under section 10903 of this title before an application to purchase such line, or any required preliminary filing with respect to such application, is filed under this section; and

(B) an application to purchase such line has been filed by a financially responsible person,

the Board shall require the rail carrier owning the railroad line to sell such line to such financially responsible person at a price not less than the constitutional minimum value.

(2) For purposes of this subsection, the constitutional minimum value of a particular railroad line shall be presumed to be not less than the net liquidation value of such line or the going concern value of such line, whichever is greater.

(c)(1) For purposes of this section, the Board may determine that the public convenience and necessity require or permit the sale of a railroad line if the Board determines, after a hearing on the record, that-

(A) the rail carrier operating such line refuses within a reasonable time to make the necessary efforts to provide adequate service to shippers who transport traffic over such line;

(B) the transportation over such line is inadequate for the majority of shippers who transport traffic over such line;

(C) the sale of such line will not have a significantly adverse financial effect on the rail carrier operating such line;

(D) the sale of such line will not have an adverse effect on the overall operational performance of the rail carrier operating such line; and

(E) the sale of such line will be likely to result in improved railroad transportation for shippers that transport traffic over such line.

(2) In a proceeding under this subsection, the burden of proving that the public convenience and necessity require or permit the sale of a particular railroad line is on the person filing the application to acquire such line. If the Board finds under this subsection that the public convenience and necessity require or permit the sale of a particular railroad line, the Board shall concurrently notify the parties of such finding and publish such finding in the Federal Register.

(d) In the case of any railroad line subject to sale under subsection (a) of this section, the Board shall, upon the request of the acquiring carrier, require the selling carrier to provide to the acquiring carrier trackage rights to allow a reasonable interchange with the selling carrier or to move power equipment or empty rolling stock between noncontiguous feeder lines operated by the acquiring carrier. The Board shall require the acquiring carrier to provide the selling carrier reasonable compensation for any such trackage rights.

(e) The Board shall require, to the maximum extent practicable, the use of the employees who would normally have performed work in connection with a railroad line subject to a sale under this section.

(f) In the case of a railroad line which carried less than 3,000,000 gross ton miles of traffic per mile in the preceding calendar year, whenever a purchasing carrier under this section petitions the Board for joint rates applicable to traffic moving over through routes in which the purchasing carrier may practicably participate, the Board shall, within 30 days after the date such petition is filed and pursuant to section 10705(a) of this title, require the establishment of reasonable joint rates and divisions over such route.

(g)(1) Any person operating a railroad line acquired under this section may elect to be exempt from any of the provisions of this part, except that such a person may not be exempt from the provisions of chapter 107 of this title with respect to transportation under a joint rate.

(2) The provisions of paragraph (1) of this subsection shall apply to any line of railroad which was abandoned during the 18-month period immediately prior to October 1, 1980, and was subsequently purchased by a financially responsible person.

(h) If a purchasing carrier under this section proposes to sell or abandon all or any portion of a purchased railroad line, such purchasing carrier shall offer the right of first refusal with respect to such line or portion thereof to the carrier which sold such line under this section. Such offer shall be made at a price equal to the sum of the price paid by such purchasing carrier to such selling carrier for such line or portion thereof and the fair market value (less deterioration) of any improvements made, as adjusted to reflect inflation.

(i) Any person operating a railroad line acquired under this section may determine preconditions, such as payment of a subsidy, which must be met by shippers in order to obtain service over such lines, but such operator must notify the shippers on the line of its intention to impose such preconditions.

(Added Pub. L. 104–88, title I, §102(a), Dec. 29, 1995, 109 Stat. 828 .)

Editorial Notes

Prior Provisions

Provisions similar to those in this section were contained in section 10910 of this title prior to the general amendment of this subtitle by Pub. L. 104–88, §102(a).

Prior sections 10907 to 10910 and 10921 to 10936 were omitted in the general amendment of this subtitle by Pub. L. 104–88, §102(a).

Section 10907, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1407 , related to rail carriers entering into arrangements for joint use or ownership of spur, industrial, team, switching, or side tracks, and deprived Interstate Commerce Commission of authority over such tracks when located in one State or over certain electric railways. See sections 10102, 10501, and 10906 of this title.

Section 10908, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1407 , related to discontinuing or changing interstate train or ferry transportation subject to State law.

Section 10909, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1408 , related to discontinuing or changing train or ferry transportation in one State.

Section 10910, added Pub. L. 96–448, title IV, §401(a), Oct. 14, 1980, 94 Stat. 1939 ; amended Pub. L. 97–468, title V, §506(a), Jan. 14, 1983, 96 Stat. 2553 ; Pub. L. 103–272, §4(j)(27), July 5, 1994, 108 Stat. 1369 , related to railroad development. See section 10907 of this title.

Section 10921, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1409 , related to requirement for certificate, permit, or license. See section 13901 of this title.

Section 10922, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1409 ; Pub. L. 96–296, §§5(a), 6, 34(a), July 1, 1980, 94 Stat. 794 , 796, 825; Pub. L. 96–454, §10(a), Oct. 15, 1980, 94 Stat. 2021 ; Pub. L. 97–261, §§6(a)–(c), (g), 7, 8, Sept. 20, 1982, 96 Stat. 1103 , 1107, 1108; Pub. L. 98–554, title II, §§225(a), (b), 226(b), Oct. 30, 1984, 98 Stat. 2847 , 2848, 2850; Pub. L. 100–17, title III, §§339, 340(a), Apr. 2, 1987, 101 Stat. 243 , 245; Pub. L. 100–690, title IX, §9111(g), Nov. 18, 1988, 102 Stat. 4533 ; Pub. L. 102–240, title III, §3003(b), Dec. 18, 1991, 105 Stat. 2088 ; Pub. L. 103–272, §5(m)(25), July 5, 1994, 108 Stat. 1378 ; Pub. L. 103–311, title II, §207, Aug. 26, 1994, 108 Stat. 1686 ; Pub. L. 103–429, §7(a)(4)(D), Oct. 31, 1994, 108 Stat. 4389 , related to certificates of motor and water common carriers. See section 13902 of this title.

Section 10923, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1410 ; Pub. L. 96–258, §1(9), June 3, 1980, 94 Stat. 426 ; Pub. L. 96–296, §§10(a)(2), (3), 34(b), July 1, 1980, 94 Stat. 799 , 800, 825; Pub. L. 97–261, §13(a), Sept. 20, 1982, 96 Stat. 1114 ; Pub. L. 99–521, §8(a)(1), (2), Oct. 22, 1986, 100 Stat. 2996 ; Pub. L. 103–311, title II, §208, Aug. 26, 1994, 108 Stat. 1687 , related to permits of motor and water contract carriers and household goods freight forwarders. See section 13903 of this title.

Section 10924, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1412 ; Pub. L. 96–296, §17(a), July 1, 1980, 94 Stat. 810 ; Pub. L. 97–261, §14(a)–(c), Sept. 20, 1982, 96 Stat. 1114 ; Pub. L. 103–272, §4(j)(28), July 5, 1994, 108 Stat. 1370 , related to licenses of motor carrier brokers. See section 13904 of this title.

Section 10925, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1412 ; Pub. L. 96–296, §§10(e), 17(b), July 1, 1980, 94 Stat. 801 , 811; Pub. L. 97–261, §§13(b), 22, Sept. 20, 1982, 96 Stat. 1114 , 1123; Pub. L. 97–449, §5(g)(6), Jan. 12, 1983, 96 Stat. 2443 ; Pub. L. 99–521, §8(b), Oct. 22, 1986, 100 Stat. 2996 ; Pub. L. 103–311, title II, §209, Aug. 26, 1994, 108 Stat. 1688 , related to effective periods of certificates, permits, and licenses. See section 13905 of this title.

Section 10926, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1413 ; Pub. L. 99–521, §8(c), Oct. 22, 1986, 100 Stat. 2996 , related to transfers of certificates and permits.

Section 10927, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1413 ; Pub. L. 96–296, §29, July 1, 1980, 94 Stat. 820 ; Pub. L. 97–261, §18(h), Sept. 20, 1982, 96 Stat. 1121 ; Pub. L. 98–554, title II, §226(c)(2), (3), Oct. 30, 1984, 98 Stat. 2851 ; Pub. L. 99–521, §8(d), Oct. 22, 1986, 100 Stat. 2996 ; Pub. L. 100–690, title IX, §9111(h), Nov. 18, 1988, 102 Stat. 4534 ; Pub. L. 103–272, §5(m)(26), July 5, 1994, 108 Stat. 1378 , related to security of motor carriers, brokers, and freight forwarders. See section 13906 of this title.

Section 10928, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1414 ; Pub. L. 96–296, §23, July 1, 1980, 94 Stat. 814 ; Pub. L. 97–261, §15, Sept. 20, 1982, 96 Stat. 1114 , related to temporary authority for motor and water carriers.

Section 10929, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1415 , related to temporary authority for previously exempt water transportation.

Section 10930, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1415 ; Pub. L. 96–296, §10(b), July 1, 1980, 94 Stat. 800 ; Pub. L. 99–521, §8(e), Oct. 22, 1986, 100 Stat. 2996 , related to limitations on certificates and permits.

Section 10931, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1416 , related to motor common carriers providing transportation entirely in one State.

Section 10932, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1417 , related to motor carrier savings provisions.

Section 10933, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1418 ; Pub. L. 99–521, §8(f)(1), (2), Oct. 22, 1986, 100 Stat. 2996 , 2997, related to authorizing abandonment of household goods freight forwarder service.

Section 10934, added Pub. L. 96–454, §5(a)(1), Oct. 15, 1980, 94 Stat. 2013 ; amended Pub. L. 98–554, title II, §227(a)(2), Oct. 30, 1984, 98 Stat. 2852 , related to household goods agents. See section 13907 of this title.

Section 10935, added Pub. L. 97–261, §16(a), Sept. 20, 1982, 96 Stat. 1115 ; amended Pub. L. 103–272, §5(m)(27), July 5, 1994, 108 Stat. 1378 , related to discontinuing bus transportation in one State.

Section 10936, added Pub. L. 103–311, title II, §211(a), Aug. 26, 1994, 108 Stat. 1689 , related to limitation on State regulation of intrastate passengers by bus.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Jan. 1, 1996, except as otherwise provided in Pub. L. 104–88, see section 2 of Pub. L. 104–88, set out as a note under section 1301 of this title.