49 U.S.C. § 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)

section 10903 of this title section 10903 of this title a railroad line is on a system diagram map as required under , but the rail carrier owning such line has not filed an application to abandon such line under 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)

section 10705(a) of this title 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 , 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)

October 1, 1980 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 , 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.

Pub. L. 104–88, title I, § 102(a)Dec. 29, 1995109 Stat. 828 (Added , , .)

Editorial Notes

Prior Provisions

section 10910 of this title Pub. L. 104–88, § 102(a)Provisions similar to those in this section were contained in 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. 95–473Oct. 17, 197892 Stat. 1407 Section 10907, , , , 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.

Pub. L. 95–473Oct. 17, 197892 Stat. 1407 Section 10908, , , , related to discontinuing or changing interstate train or ferry transportation subject to State law.

Pub. L. 95–473Oct. 17, 197892 Stat. 1408 Section 10909, , , , related to discontinuing or changing train or ferry transportation in one State.

Pub. L. 96–448, title IV, § 401(a)Oct. 14, 198094 Stat. 1939 Pub. L. 97–468, title V, § 506(a)Jan. 14, 198396 Stat. 2553 Pub. L. 103–272, § 4(j)(27)July 5, 1994108 Stat. 1369 section 10907 of this titleSection 10910, added , , ; amended , , ; , , , related to railroad development. See .

Pub. L. 95–473Oct. 17, 197892 Stat. 1409 section 13901 of this titleSection 10921, , , , related to requirement for certificate, permit, or license. See .

Pub. L. 95–473Oct. 17, 197892 Stat. 1409 Pub. L. 96–296July 1, 198094 Stat. 794 Pub. L. 96–454, § 10(a)Oct. 15, 198094 Stat. 2021 Pub. L. 97–261Sept. 20, 198296 Stat. 1103 Pub. L. 98–554, title IIOct. 30, 198498 Stat. 2847 Pub. L. 100–17, title IIIApr. 2, 1987101 Stat. 243 Pub. L. 100–690, title IX, § 9111(g)Nov. 18, 1988102 Stat. 4533 Pub. L. 102–240, title III, § 3003(b)Dec. 18, 1991105 Stat. 2088 Pub. L. 103–272, § 5(m)(25)July 5, 1994108 Stat. 1378 Pub. L. 103–311, title II, § 207Aug. 26, 1994108 Stat. 1686 Pub. L. 103–429, § 7(a)(4)(D)Oct. 31, 1994108 Stat. 4389 section 13902 of this titleSection 10922, , , ; , §§ 5(a), 6, 34(a), , , 796, 825; , , ; , §§ 6(a)–(c), (g), 7, 8, , , 1107, 1108; , §§ 225(a), (b), 226(b), , , 2848, 2850; , §§ 339, 340(a), , , 245; , , ; , , ; , , ; , , ; , , , related to certificates of motor and water common carriers. See .

Pub. L. 95–473Oct. 17, 197892 Stat. 1410 Pub. L. 96–258, § 1(9)June 3, 198094 Stat. 426 Pub. L. 96–296July 1, 198094 Stat. 799 Pub. L. 97–261, § 13(a)Sept. 20, 198296 Stat. 1114 Pub. L. 99–521, § 8(a)(1)Oct. 22, 1986100 Stat. 2996 Pub. L. 103–311, title II, § 208Aug. 26, 1994108 Stat. 1687 section 13903 of this titleSection 10923, , , ; , , ; , §§ 10(a)(2), (3), 34(b), , , 800, 825; , , ; , (2), , ; , , , related to permits of motor and water contract carriers and household goods freight forwarders. See .

Pub. L. 95–473Oct. 17, 197892 Stat. 1412 Pub. L. 96–296, § 17(a)July 1, 198094 Stat. 810 Pub. L. 97–261, § 14(a)Sept. 20, 198296 Stat. 1114 Pub. L. 103–272, § 4(j)(28)July 5, 1994108 Stat. 1370 section 13904 of this titleSection 10924, , , ; , , ; –(c), , ; , , , related to licenses of motor carrier brokers. See .

Pub. L. 95–473Oct. 17, 197892 Stat. 1412 Pub. L. 96–296July 1, 198094 Stat. 801 Pub. L. 97–261Sept. 20, 198296 Stat. 1114 Pub. L. 97–449, § 5(g)(6)Jan. 12, 198396 Stat. 2443 Pub. L. 99–521, § 8(b)Oct. 22, 1986100 Stat. 2996 Pub. L. 103–311, title II, § 209Aug. 26, 1994108 Stat. 1688 section 13905 of this titleSection 10925, , , ; , §§ 10(e), 17(b), , , 811; , §§ 13(b), 22, , , 1123; , , ; , , ; , , , related to effective periods of certificates, permits, and licenses. See .

Pub. L. 95–473Oct. 17, 197892 Stat. 1413 Pub. L. 99–521, § 8(c)Oct. 22, 1986100 Stat. 2996 Section 10926, , , ; , , , related to transfers of certificates and permits.

Pub. L. 95–473Oct. 17, 197892 Stat. 1413 Pub. L. 96–296, § 29July 1, 198094 Stat. 820 Pub. L. 97–261, § 18(h)Sept. 20, 198296 Stat. 1121 Pub. L. 98–554, title II, § 226(c)(2)Oct. 30, 198498 Stat. 2851 Pub. L. 99–521, § 8(d)Oct. 22, 1986100 Stat. 2996 Pub. L. 100–690, title IX, § 9111(h)Nov. 18, 1988102 Stat. 4534 Pub. L. 103–272, § 5(m)(26)July 5, 1994108 Stat. 1378 section 13906 of this titleSection 10927, , , ; , , ; , , ; , (3), , ; , , ; , , ; , , , related to security of motor carriers, brokers, and freight forwarders. See .

Pub. L. 95–473Oct. 17, 197892 Stat. 1414 Pub. L. 96–296, § 23July 1, 198094 Stat. 814 Pub. L. 97–261, § 15Sept. 20, 198296 Stat. 1114 Section 10928, , , ; , , ; , , , related to temporary authority for motor and water carriers.

Pub. L. 95–473Oct. 17, 197892 Stat. 1415 Section 10929, , , , related to temporary authority for previously exempt water transportation.

Pub. L. 95–473Oct. 17, 197892 Stat. 1415 Pub. L. 96–296, § 10(b)July 1, 198094 Stat. 800 Pub. L. 99–521, § 8(e)Oct. 22, 1986100 Stat. 2996 Section 10930, , , ; , , ; , , , related to limitations on certificates and permits.

Pub. L. 95–473Oct. 17, 197892 Stat. 1416 Section 10931, , , , related to motor common carriers providing transportation entirely in one State.

Pub. L. 95–473Oct. 17, 197892 Stat. 1417 Section 10932, , , , related to motor carrier savings provisions.

Pub. L. 95–473Oct. 17, 197892 Stat. 1418 Pub. L. 99–521, § 8(f)(1)Oct. 22, 1986100 Stat. 2996 Section 10933, , , ; , (2), , , 2997, related to authorizing abandonment of household goods freight forwarder service.

Pub. L. 96–454, § 5(a)(1)Oct. 15, 198094 Stat. 2013 Pub. L. 98–554, title II, § 227(a)(2)Oct. 30, 198498 Stat. 2852 section 13907 of this titleSection 10934, added , , ; amended , , , related to household goods agents. See .

Pub. L. 97–261, § 16(a)Sept. 20, 198296 Stat. 1115 Pub. L. 103–272, § 5(m)(27)July 5, 1994108 Stat. 1378 Section 10935, added , , ; amended , , , related to discontinuing bus transportation in one State.

Pub. L. 103–311, title II, § 211(a)Aug. 26, 1994108 Stat. 1689 Section 10936, added , , , related to limitation on State regulation of intrastate passengers by bus.

Statutory Notes and Related Subsidiaries

Effective Date

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