legislation: 96-hr-7110
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| 96-hr-7110 | 96 | hr | 7110 | Rail Act of 1980 | Transportation and Public Works | 1980-04-22 | 1980-04-22 | Referred to House Committee on Interstate and Foreign Commerce. | House | Rep. Florio, James J. [D-NJ-1] | NJ | D | F000215 | 1 | Rail Act of 1980 - Declares that the goals of this Act are: (1) to assist in rehabilitating the Nation's rail system to meet the demands of interstate commerce and national defense; (2) to reform Federal regulatory policy so as to preserve a safe and efficient rail system; (3) to assist the rail system to remain viable in the private sector of the economy; (4) to provide a regulatory process that balances the needs of carriers, shippers, and the public; and (5) to assist in the rehabilitation and financing of the rail system. Title I: Rail Transportation Policy - Amends the Interstate Commerce Act to set forth the policy of the United States in regulating the railroad industry, including: (1) establishment of reasonable rates through competition and demand for services; (2) minimum use of Federal regulatory control; (3) promotion of a safe and efficient rail transportation system by allowing rail carriers to earn an adequate rate of return; and (4) to provide rate regulation where there is an absence of effective competition. Title II: Railroad Rates, Profits, and Reinvestment - Authorizes a rail carrier providing transportation subject to the jurisdiction of the Interstate Commerce Commission to establish reasonable rates for transportation or other services. Directs that a shipper who challenges such rate shall have the burden of proving that such rate is unreasonable or that there is no effective competition. Removes such rail rates from the standards of the Interstate Commerce Act. Requires the Commission, within 90 days after the commencement of a rate challenge, to determine whether effective competition exists with respect to the transportation to which the rate applies. Grants jurisdiction to the Commission to determine whether such rate is reasonable if there is no effective competition. Directs the Commission to annually determine the cost recovery percentage of the transportation of all traffic received by rail carrier for transportation. Reduces from seven to four months the time allotted to the Commission to complete a proceeding and make a final decision concerning proposals for a rate, classification, rule, or practice. Prohibits the Commission from suspending such proposals during such proceeding except under specified circumstances. Alters the time period during which the Commission shall require a rail carrier to account for all amounts received under such proposed rate increase. Authorizes one or more rail carriers to enter into a contract with one or more purchasers of rail services to provide specified services under specified rates and conditions. Directs such contract to be filed with the Commission. Sets forth procedures by which: (1) the Commission shall review and approve such contract; and (2) a complaint may be filed by a shipper or other complainant. Directs the Commission to permit the establishment of tariffs under which rates may be raised or lowered, between established maximum and minimum levels, in response to expected or actual fluctuations in demand for rail service. Repeals provisions of such Act concerning incentives for capital investment by rail carriers. Permits a rail carrier to establish, by written declaration or agreement, limited liability rates for the transportation of property. Permits such declaration or agreement to provide for specified amounts to be deducted from any claim against the carrier. Directs that differences between rates, classifications, rules, and practices of rail carriers providing transportation subject to the jurisdiction of the Commission do not constitute a violation of this Act if such differences result from different services provided by rail carriers. Exempts specified surcharges and rates from the above provision. Directs the Commission to exempt a person, class of persons, or a transaction or service related to rail carrier transportation under specified circumstances. Sets forth procedures for the establishment and revocation of such exemptions. Grants the Commission exclusive and unrestricted authority to prescribe an intrastate rate for transportation provided by a rail carrier subject to the jurisdiction of the Commission. Prohibits a rail carrier, until December 31, 1981, from increasing any rate by more than ten percent, in addition to inflation, in any year. Exempts certain surcharges and rates from such prohibition. Authorizes the Commission, on a semiannual basis beginning in 1983, to prescribe a percentage rate increase or index for rail carriers in order to compensate for inflationary cost increases. Sets forth provisions by which each rail carrier shall notify the Commission of any rate from which such carrier intends to be excluded. Authorizes the Commission to review the financial arrangements of rail carriers and prohibit further financial transactions until the safety deficiencies of such carrier have been remedied. Authorizes the Secretary of Transportation, on the basis of inspections of the track, physical facilities, and operations of a rail carrier, to notify the Commission that such carrier: (1) does not meet the safety requirements of applicable Federal statutes; (2) is not maintained and operated in a manner which protects the health and safety of the public or of railroad employees; and (3) fails to supply limited deferred maintenance which impairs the ability of the carrier to provide safe and reliable service. Title III: Railroad Inter-Carrier Practices - Authorizes any participating rail carrier, effective January 1, 1981, to cancel any joint rate which applies a uniform rate to a destination area covering a geographical region with a radius of more than 100 miles. Authorizes a rail carrier, for three years from the date of enactment of this Act, to apply to a joint rate a surcharge increasing or decreasing a through route charge. Sets forth a division of revenues for joint fares among the carriers involved. Sets forth other remedies available to carriers concerning the application of such surcharge. Requires only the carrier proposing a surcharge to defend such surcharge. Authorizes a carrier to publish surcharges applicable to traffic originating or terminating upon any of its lines of railroad under specified conditions. Sets forth criteria for the unilateral cancellation of a joint rate by a carrier. Directs a carrier applying such surcharge or canceling such joint rate to file a tariff with the Commission. Directs the Commission, upon request of participating rail carriers, to make available the variable costs of the carrier applying such surcharge or cancellation. Sets forth criteria for determining such variable costs. Directs the Commission, by January 1, 1984, to promulgate rules necessary to allow rail carriers to establish rates in the manner required by this Act. Directs the Commission, by January 1, 1983, if it is unable to promulgate such rules, to report to Congress its recommendations for appropriate legislative or administrative action. Prohibits, generally, an organization established or continued under a rate agreement (a "rate bureau") from permitting a carrier: (1) to discuss rates; (2) to participate in agreements related to rates; or (3) to vote on rates except with a carrier which forms part of a particular single route. Requires that, in a proceeding in which it is alleged that a carrier was a party to an agreement, conspiracy, or combination in violation of Federal or State law, the party making such allegation shall have the burden of proving the same by clear and convincing evidence. Directs the rate bureau involved to keep transcripts or sound recordings of all meetings and to make records of votes. Directs that such records and transcripts or recordings be submitted to the Commission and made available to other Federal agencies as needed. Exempts from the antitrust laws agreements between rail carriers which solely provide for the compilation, publication, and distribution of rates in effect or to become effective. Directs the Commission to require rail carrier members of a rate bureau to provide certain employees of such bureau with fair employment arrangements no less protective of the interests of such employees than those established by the Interstate Commerce Act. Prohibits a rail carrier from blocking the construction or extension of a rail line by another carrier by refusing to permit that carrier to cross its property if: (1) the construction does not unreasonably interfere with the operation of the crossed line; (2) the operation does not materially interfere with the operation of the crossed line; and (3) the owner of the crossing line compensates the owner of the crossed line. Authorizes either party to a disputed matter to submit such matter to the Commission for determination. Authorizes the Commission to require rail carriers to enter into reciprocal switching agreements where it finds such agreements to be practicable and in the public interest. Directs the Commission to establish conditions and compensation applicable to such agreements if the carriers are unable to agree on same. Repeals the provision granting payments for the emergency use of freight cars. Directs the Commission to increase the rate of compensation for the use of such cars so as to attract capital investment in them. Authorizes a rail carrier or other entity to file with the Commission a request for negotiation as regards: (1) compensation for use by any rail carrier of rolling stock owned by any entity other than a carrier; or (2) the setting of demurrage rates. Sets forth procedures for such negotiations. Exempts such negotiations from the antitrust laws under specified conditions. Limits to 30 days the time during which the Commission is authorized to take action due to an emergency (equipment shortage, traffic congestion, etc.) in order to promote service in the interest of the public and of commerce. Authorizes the Commission to approve a consolidation, merger, or acquisition of control involving a rail carrier on application of the person seeking such action. Sets forth procedures and conditions of approval for such transactions. Exempts such transactions from the National Environmental Policy Act and the Energy Policy Conservation Act. Directs that, in authorizing any abandonment of a railroad line, a court shall require the rail carrier involved to provide employee protection at least as protective as that established under such Act. Title IV: Railroad Cost Determinations - Authorizes the Commission to prescribe a uniform accounting system for classes of carriers providing, and brokers for, transportation subject to the jurisdiction of the Commission. Establishes a Railroad Accounting Standards Board which shall be within and responsible to the legislative branch of the Federal Government. Sets forth: (1) the terms of office; (2) membership; (3) duties; and (4) expiration date of such Board. Directs the Commission to promulgate rules to enforce cost accounting standards established by the Board. Sets forth procedures for Commission certification of accounting systems used by rail carriers. Directs the Board to submit reports to Congress within two years of the date of enactment of this Act. Specifies penalties for violation of such cost accounting standards. Title V: Railroad Modernization and Restructuring Assistance - Directs the Secretary of Transportation to provide transitional financial assistance which facilitates: (1) restructuring of railroad facilities; (2) improved asset and manpower utilization; and (3) self-supporting shipper-operated or State-operated rail lines. Directs the Secretary annually to report to Congress listing the specific Federal assistance provided the railroad industry during that fiscal year. Directs the Commission, under specified circumstances, to require an abandoning carrier to sell its property at net liquidation value, as established by the Commission. Sets forth criteria under which such sale may occur. Amends the Railroad Revitalization and Regulatory Reform Act of 1976 to authorize the Secretary to provide financial assistance to any class I railroad or subsidiary of a railroad to pay the cost of restructuring its facilities, including related labor protection costs, and acquiring securities pursuant to a restructuring. Directs the Secretary to provide such assistance by purchasing: (1) a fixed debt obligation issued by a railroad or, alternatively; (2) senior preferred stock. Prescribes terms and conditions for the purchase of such obligation or stock. Sets forth options to be used by the Secretary in the case of default. Directs a railroad or subsidiary which applies for such assistance to submit a restructuring plan to the Secretary. Directs the Secretary to establish regulations governing the content of such plan. Authorizes the Secretary to provide financial assistance to any class I railroad to cover up to 100 percent of such railroad's payments to any eligible employee or former employee to whom the railroad is obligated to make payments under a labor-management agreement which the Secretary determines will significantly improve manpower effectiveness. Directs that such financial assistance shall be by purchase of a fixed debt obligation, including a trustee certificate. Authorizes the appropriation, for fiscal years 1980 through 1984, of such sums as are necessary, not to exceed $1,475,000,000, to provide such assistance. Directs that: (1) no more than $275,000,000 shall be used for the payment of specified related labor protection costs; and (2) no less than five percent of such sum shall be available for the purchase or rehabilitation of feeder lines. Makes conforming and technical amendments to the Railroad Revitalization and Regulatory Reform Act of 1976. Title VI: ConRail Title V Labor Protection - Amends the Regional Rail Reorganization Act of 1973 to grant, to protected employees, a monthly displacement allowance for any calendar month within the period identified in such Act in which the employee is deprived of employment or is adversely affected with respect to compensation. Sets forth provisions for payment of such allowance. Specifies the duration of the monthly displacement allowance. Sets forth provisions for training and transfer of employees. Permits ConRail to offer a vacant position to not more than four protected non-contract employees. Directs ConRail to give such position to the protected employee accepting transfer whom ConRail considers to be best qualified for the particular position involved. Directs ConRail, the United States Railway Association, replacement operators, and acquiring railroads, as the case may be, to pay the allowances, expenses, and costs provided protected employees under such Act. Directs the Railroad Retirement Board to reimburse ConRail, the Association, replacement operators, and acquiring railroads for such allowances, expenses, and costs up to an aggregate sum of $485,000,000. Limits the aggregate amount of such reimbursement to $180,000,000. Authorizes an annual appropriation of up to $485,000,000. Directs ConRail, the Association, replacement operators, and acquiring railroads to pay benefits otherwise reimbursable upon the exhaustion of such authorization. Authorizes appropriations for administrative expenses incurred by the Railroad Retirement Board and the Association. Directs the Association to: (1) audit the payment of benefits under such Act, including the manner in which ConRail manages the overtime worked by maintenance-of-way employees; and (2) report annually to Congress and the President. Sets forth technical amendments to the Regional Rail Reorganization Act of 1973. Title VII: Supplemental Transactions - Directs the Secretary to develop proposals, on an as needed basis, for further restructuring of rail properties through transactions supplemental to the final system plan. Sets forth the criteria to be used in developing such proposal. Directs the Association to analyze and comment to the Secretary on such proposal. Directs the Commission: (1) to comment to the Secretary on such proposal; (2) to afford interested parties the opportunity to comment; and (3) to approve such proposal within 120 days after receipt or it shall be deemed to have been approved. Directs the Secretary to determine whether to petition the Special Court for the approval of the proposal. Sets forth the action to be taken by such Court on such proposal. Redefines the term "fair and equitable" as used in this Act. | 2025-09-02T13:54:37Z |