Conrail (officially the Consolidated Rail Corporation) was a major railroad in the Northeast U.S. from 1976 to 1999. It was set up by the Federal Government to take over the bankrupt railroads in the Northeast, and eventually became profitable and was split between two competing systems (CSX Transportation and the Norfolk Southern Railway).
Regional Rail Reorganization Act of 1973
Public Law 93-236 signed January 2, 1974
The Congress finds and declares that—
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The rail system in the Northeast was dying. All the major railroads in the region, most notably Penn Central Transportation, had filed for bankruptcy, and it was likely that there would be no fix without the Federal Government playing a major role. |
It is therefore declared to be the purpose of Congress in this chapter to provide for—
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Thus the United States Railway Association and Conrail will be established. |
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As used in this chapter, unless the context otherwise requires—
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Railroad Revitalization and Regulatory Reform Act of 1976
Northeast Rail Service Act of 1981
Pub. L. 97-35, 95 Stat. 644, Aug. 13, 1981.
CHAPTER 20 - NORTHEAST RAIL SERVICE
Sec.
1101. Congressional findings and declarations.
1102. Statement of purpose.
1103. Goals and objectives.
1104. Definitions.
1105. Judicial review.
(a) Special court; exclusive jurisdiction for civil
actions.
(b) Appeal.
(c) Scope of review of administrative actions.
1106. Exemption from transfer taxes and fees; recordation.
1107. Repealed.
1108. Concerted economic action.
(a) Strikes interfering with rail freight service
of Conrail.
(b) Strikes interfering with Amtrak Commuter's rail
passenger service.
(c) Railway Labor Act deemed violated.
1109. Effectuation of cost reductions.
1110, 1111. Repealed.
1112. Interstate Commerce Commission proceedings.
(a) Final decisions involving railroads in
bankruptcy.
(b) Final decisions involving profitable railroads.
(c) Interest of United States attaching in
bankruptcy, liquidation, abandonment, etc.
1113. Intercity passenger service.
(a) Responsibility of Conrail to provide crews
terminated; negotiations for employee
transfers.
(b) Eligibility of employees for employee
protection benefits.
1114. Repealed.
1115. Redemption of stock.
1116. Applicability of other laws.
Sec. 1101. Congressional findings and declarations
The Congress finds and declares that -
(1) the processes set in motion by the Regional Rail
Reorganization Act of 1973 [45 U.S.C. 701 et seq.] have failed to
create a self-sustaining railroad system in the Northeast region
of the United States and have cost United States taxpayers many
billions of dollars over original estimates;
(2) current arrangements for the provision of rail freight and
commuter service in the Northeast and Midwest regions of the
United States are inadequate to meet the transportation needs of
the public and the needs of national security;
(3) although the Federal Government has provided billions of
dollars in assistance for Conrail and its employees, the Federal
interest in ensuring the flow of interstate commerce through rail
service in the private sector has not been achieved, and the
protection of interstate commerce requires Federal intervention
to preserve essential rail service in the private sector;
(4) the provisions for protection of employees of bankrupt
railroads contained in the Regional Rail Reorganization Act of
1973 [45 U.S.C. 701 et seq.] have resulted in the payment of
benefits far in excess of levels anticipated at the time of
enactment, have imposed an excessive fiscal burden on the Federal
taxpayer, and are now an obstacle to the establishment of
improved rail service and continued rail employment in the
Northeast region of the United States; and
(5) since holding Conrail liable for employee protection
payments would destroy its prospects of becoming a profitable
carrier and further injure its employees, an alternative employee
protection system must be developed and funded.
Sec. 1102. Statement of purpose
It is therefore declared to be the purpose of the Congress in
this subtitle to provide for -
(1) the removal by a date certain of the Federal Government's
obligation to subsidize the freight operations of Conrail;
(2) transfer of Conrail commuter service responsibilities to
one or more entities whose principal purpose is the provision of
commuter service; and
(3) an orderly return of Conrail freight service to the private
sector.
Sec. 1103. Goals and objectives
It is the goal of this subtitle to provide Conrail the
opportunity to become profitable through the achievement of the
following objectives:
(1) Nonagreement personnel
(A) Employees who are not subject to collective bargaining
agreements (hereafter in this section referred to as
"nonagreement personnel") should forego wage increases and
benefits in an amount proportionately equivalent to the amount
foregone by agreement employees pursuant to paragraph (4) of this
section, adjusted annually to reflect inflation.
(B) After May 1, 1981, the number of nonagreement personnel
should be reduced proportionately to any reduction in agreement
employees (excluding reductions pursuant to the termination
program under section 797a of this title).
(2) Suppliers
To facilitate the orderly movement of goods in interstate
commerce, materials and services should continue to be available
to Conrail, under normal business practices, including the
provision of credit and normal financing arrangements.
(3) Shippers
Conrail should utilize the revenue opportunities available to
it under the Staggers Rail Act of 1980 and subtitle IV of title
49.
(4) Agreement employees
(A) Conrail should enter into collective bargaining agreements
with its employees which would reduce Conrail's costs in an
amount equal to $200,000,000 a year, beginning April 1, 1981,
adjusted annually to reflect inflation.
(B) Agreements under this subparagraph may provide for
reductions in wage increases and for changes in fringe benefits
common to agreement employees, including vacations and holidays.
(C) The cost reductions required under this subparagraph in the
first year of the agreement may be deferred, but the aggregate
cost reductions should be no less than an average of $200,000,000
per year for each of the first three one-year periods beginning
April 1, 1981.
(D) The amount of cost reductions provided under this paragraph
shall be calculated by subtracting the cost of an agreement
entered into under this paragraph from (i) the cost that would
otherwise result from the application of the national agreement
reached by railroad industry and its employees, or (ii) until
such national agreement is reached, the cost which the United
States Railway Association estimates would result from the
application of such a national agreement.
Sec. 1104. Definitions
As used in this subtitle, unless the context otherwise requires,
the term:
(1) "Amtrak" means the National Railroad Passenger Corporation
created under chapter 243 of title 49.
(2) "Commission" means the Interstate Commerce Commission.
(3) "Commuter authority" means any State, local, or regional
authority, corporation, or other entity established for purposes
of providing commuter service, and includes the Metropolitan
Transportation Authority, the Connecticut Department of
Transportation, the Maryland Department of Transportation, the
Southeastern Pennsylvania Transportation Authority, the New
Jersey Transit Corporation, the Massachusetts Bay Transportation
Authority, the Port Authority Trans-Hudson Corporation, any
successor agencies, and any entity created by one or more such
agencies for the purpose of operating, or contracting for the
operation of, commuter service.
(4) "Commuter service" means short-haul rail passenger service
operated in metropolitan and suburban areas, whether within or
across the geographical boundaries of a State, usually
characterized by reduced fare, multiple-ride, and commutation
tickets, and by morning and evening peak period operations.
(5) "Conrail" means the Consolidated Rail Corporation created
under title III of the Regional Rail Reorganization Act of 1973
(45 U.S.C. 741 et seq.).
(6) "Rail carrier" means a common carrier engaged in interstate
or foreign commerce by rail subject to subtitle IV of title 49.
(7) "Secretary" means the Secretary of Transportation.
(8) "Special court" means the judicial panel established under
section 209(b)(1) of the Regional Rail Reorganization Act of 1973
(45 U.S.C. 719(b)(1)) or, with respect to any proceedings that
arise or continue after the panel is abolished pursuant to
section 209(b)(2) of such Act [45 U.S.C. 719(b)(2)], the United
States District Court for the District of Columbia.
Sec. 1105. Judicial review
(a) Special court; exclusive jurisdiction for civil actions
Notwithstanding any other provision of law, the special court
shall have original and exclusive jurisdiction over any civil
action -
(1) for injunctive, declaratory, or other relief relating to
the enforcement, operation, execution, or interpretation of any
provision of or amendment made by this subtitle or part 2 of the
Conrail Privatization Act [45 U.S.C. 1311 et seq.], or
administrative action taken thereunder to the extent such action
is subject to judicial review;
(2) challenging the constitutionality of any provision of or
amendment made by this subtitle or part 2 of the Conrail
Privatization Act [45 U.S.C. 1311 et seq.];
(3) to obtain, inspect, copy, or review any document in the
possession or control of the Secretary, Conrail, the United
States Railway Association, or Amtrak that would be discoverable
in litigation under any provision of or amendment made by this
subtitle or part 2 of the Conrail Privatization Act [45 U.S.C.
1311 et seq.]; or
(4) seeking judgment upon any claim against the United States
founded upon the Constitution and resulting from the operation of
any provision of or amendment made by this subtitle or part 2 of
the Conrail Privatization Act [45 U.S.C. 1311 et seq.].
(b) Appeal
An order or judgment of the United States District Court for the
District of Columbia in any action referred to in this section
shall be reviewable in accordance with sections 1291, 1292, and
1294 of title 28.
(c) Scope of review of administrative actions
Administrative action under the provisions of or amendments made
by this subtitle or part 2 of the Conrail Privatization Act [45
U.S.C. 1311 et seq.] which is subject to review shall be upheld
unless such action is found to be unlawful under standards
established for review of informal agency action under paragraphs
(2)(A), (B), (C), and (D) of section 706 of title 5. The
requirements of this subtitle or part 2 of the Conrail
Privatization Act [45 U.S.C. 1311 et seq.], as the case may be,
shall constitute the exclusive procedures required by law for such
administrative action.
Sec. 1106. Exemption from transfer taxes and fees; recordation
(a)(1) All transfers or conveyances of any interest in rail
property (whether real, personal, or mixed) which are made under
any provision of or amendment made by this subtitle shall be exempt
from any taxes, imposts, or levies now or hereby 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,
easements, or other instruments evidencing, effectuating, or
incident to any such transfers or conveyances, whether imposed on
the transferor or on the transferee. Such transferors and
transferees shall be entitled to record any such deeds, bills of
sale, liens, encumberances,(!1) easements, or other instruments,
and to record the release or removal of any preexisting 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.
(2) This section shall not apply to Federal income tax laws.
(b) Transfer of designated real property (including any interest
in real property) authorized by the amendments made by part 2 of
this subtitle shall have the same effect for purposes of rights and
priorities with respect to such property as recordation on the
transfer date of appropriate deeds, or other appropriate
instruments, in offices appointed under State law for such
recordation, except that acquiring rail carriers and other entities
shall proffer such deeds or other instruments for recordation
within 36 months after the transfer date as a condition of
preserving such rights and priorities beyond the expiration of that
period. Conrail shall cooperate in effecting the timely
preparation, execution, and proffering for recordation of such
deeds and other instruments.
Sec. 1107. Repealed.
Pub. L. 99-509, title IV, Sec. 4033(c)(1)(C)(i)(I), Oct. 21, 1986, 100 Stat. 1908
Sec. 1108. Concerted economic action
(a) Strikes interfering with rail freight service of Conrail
Any person engaging in concerted economic action over disputes
with Amtrak Commuter or any commuter authority shall not be
entitled to engage in any strike against, or otherwise to induce
any employee of, Conrail, where an effect thereof is to interfere
with rail freight service provided by Conrail.
(b) Strikes interfering with Amtrak Commuter's rail passenger
service
Any person engaging in concerted economic action over disputes
arising out of freight operations provided by Conrail shall not be
entitled to engage in any strike against, or otherwise to induce
any employee of, Amtrak Commuter or any commuter authority, where
an effect thereof is to interfere with rail passenger service.
(c) Railway Labor Act deemed violated
Any concerted action in violation of this section shall be deemed
to be a violation of the Railway Labor Act [45 U.S.C. 151 et seq.].
Sec. 1109. Effectuation of cost reductions
Any cost reductions resulting from the provisions of or the amendments made by this subtitle shall not be used to limit the maximum level of any rate charged by Conrail for the provision of rail service, to limit the amount of any increase in any such rate (including rates maintained jointly by Conrail and other rail carriers), or to limit a surcharge or cancellation otherwise lawful under chapter 107 (!1) of title 49.
Sec. 1110. Repealed.
Pub. L. 99-509, title IV, Sec. 4033(c)(1)(C)(i)(II), Oct. 21, 1986, 100 Stat. 1908
Sec. 1111. Repealed.
Pub. L. 105-134, title IV, Sec. 408, Dec. 2, 1997, 111 Stat. 2586
Sec. 1112. Interstate Commerce Commission proceedings
(a) Final decisions involving railroads in bankruptcy
Notwithstanding any other provision of subtitle IV of title 49,
in any proceeding before the Commission under section 11324 or
11325 of title 49 involving a railroad in the Region, as defined in
section 702 of this title, which was in a bankruptcy proceeding
under section 77 of the Bankruptcy Act on November 4, 1979, the
Commission shall, with or without a hearing, issue a final decision
within a period not to exceed 180 days after receipt of an
application under either such section.
(b) Final decisions involving profitable railroads
Notwithstanding any other provision of subtitle IV of title 49,
in any proceeding before the Commission under section 11324 or
11325 of title 49 involving a profitable railroad in the Region, as
defined in section 702 of this title, which received a loan under
section 721(a) of this title, the Commission shall, with or without
a hearing, issue a final decision within a period not to exceed 180
days after receipt of an application under either such section.
(c) Interest of United States attaching in bankruptcy, liquidation,
abandonment, etc.
(1) If the Secretary determines under subsection (b) of this
section that there is an agreement between a profitable railroad in
the Region (as defined in section 702 of this title) which received
a loan under section 721(a) of this title and a prospective
purchaser for the sale of such railroad, the Secretary shall limit
the interest of the United States in any debt of such a railroad to
an interest which attaches to such debt in the event of bankruptcy
or substantial sale or liquidation of the assets of the railroad.
The Secretary may substitute for the evidence of such debt
contingency notes payable solely from the railroad operating assets
then securing such debt, including reinvestments thereof, or such
other contingency notes as the Secretary deems appropriate and
which conform to the terms set forth in this subsection.
(2) If the interest of the United States is limited under
paragraph (1), any new debt issued by such a railroad subsequent to
the issuance of the debt described in paragraph (1) may have such
higher priority in the event of bankruptcy, liquidation, or
abandonment of the assets of such a railroad than the debt
described in such paragraph as the Secretary and the railroad may
agree.
(3) In carrying out the duties under this subsection, the
Secretary may (A) enter into such agreements, (B) in accordance
with any such agreements, cancel or cause to be cancelled or amend
or cause to be amended any notes or securities currently held by
agencies or instrumentalities of the United States, and (C) accept
in exchange as substitution therefor such instruments evidencing
the indebtedness owed to such agencies or instrumentalities as, in
the Secretary's judgment, will effectuate the purposes of this
subsection.
Sec. 1113. Intercity passenger service
(a) Responsibility of Conrail to provide crews terminated;
negotiations for employee transfers
After January 1, 1983, Conrail shall be relieved of the
responsibility to provide crews for intercity passenger service on
the Northeast Corridor. Amtrak, Amtrak Commuter, and Conrail, and
the employees with seniority in both freight and passenger service
shall commence negotiations not later than 120 days after August
13, 1981, for the right of such employees to move from one service
to the other once each six-month period. Such agreement shall
ensure that Conrail, Amtrak, and Amtrak Commuter have the right to
furlough one employee in the same class or craft for each employee
who returns through the exercise of seniority rights. If agreement
is not reached within 360 days, such matter shall be submitted to
binding arbitration.
(b) Eligibility of employees for employee protection benefits
Conrail employees who are deprived of employment by an assumption
or discontinuance of intercity passenger service by Amtrak shall be
eligible for employee protection benefits under section 797 (!1) of
this title, notwithstanding any other provision of law, agreement,
or arrangement, and notwithstanding the inability of such employees
otherwise to meet the eligibility requirements of such section.
Such protection shall be the exclusive protection applicable to
Conrail employees deprived of employment or adversely affected by
any such assumption or discontinuance.
Sec. 1114. Repealed.
Pub. L. 99-509, title IV, Sec. 4033(c)(1)(C)(i)(III), Oct. 21, 1986, 100 Stat. 1908
Sec. 1115. Redemption of stock
For the purpose of computing the amount for which certificates of value shall be redeemable under section 746 of this title, the series B preferred stock and the common stock conveyed to the Secretary under section 1107 (!1) of this title shall be deemed to be without fair market value unless in a proceeding brought under section 1105(a)(4) of this title the special court shall have determined that such securities had a value and shall have entered a judgment against the United States for that value. In such an event, the securities shall for purposes of section 746 of this title be deemed to have that value found by the special court.
Sec. 1116. Applicability of other laws
(a) The provisions of chapters 5 and 7 of title 5 (popularly
known as the Administrative Procedure Act and including provisions
popularly known as the Government in the Sunshine Act), the Federal
Advisory Committee Act, section 102(2)(C) of the National
Environmental Policy Act of 1969 [42 U.S.C. 4332(2)(C)], the
National Historic Preservation Act of 1966 [16 U.S.C. 470 et seq.],
and section 303 of title 49 are inapplicable to actions taken in
negotiating, approving, or implementing service transfers under
title IV of the Regional Rail Reorganization Act of 1973 [45 U.S.C.
761 et seq.] (!1) and to the implementation of the sale of the
interest of the United States in Conrail under the Conrail
Privatization Act [45 U.S.C. 1301 et seq.].
(b) The operation of trains by Conrail shall not be subject to
the requirement of any State or local law which specifies the
minimum number of crew members who must be employed in connection
with the operation of such trains.
Conrail Privatization Act of 1986
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