Sec. 703. conrail studies and emergency funding
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## Sec. 703 conrail studies and emergency funding ###
(a)For purposes of this section, 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)“**rail properties**” means assets or rights owned, leased, or otherwise controlled by the Corporation which are used or useful in rail transportation service; ####
(5)“**region**” has the meaning given such term in section 101(15) of the Regional Rail Reorganization Act of 1973; and ####
(6)“**Secretary**” means the Secretary of Transportation. ###
(b)####
(1)No later than April 1, 1980, the Association and the Corporation shall each submit a report to the Congress analyzing the impact, upon the Corporation, rail service in the region, railroad employees, the economy of the region, and other rail carriers in the region and elsewhere, and the Federal budget, of— #####
(A)no further Federal funding for the Corporation; #####
(B)continued Federal funding of the rail system of the Corporation as it is presently structured; and #####
(C)future Federal funding of the Corporation to the extent necessary to preserve rail service in the region which can be self-supporting, without undue interim disruption of operations which will be maintained. ####
(2)Each report submitted under paragraph
(1)of this subsection shall contain a description, under each of the Federal funding alternatives set forth in subsection
(a)of this section, of the lines of the Corporation which would be maintained, the lines of the Corporation which would be abandoned, and the lines which would be transferred. ####
(3)Each report submitted under paragraph
(1)of this subsection shall also include specific recommendations with respect to— #####
(A)future projected funding requirements of the Corporation; #####
(B)future structure and activities of the Corporation in the region; #####
(C)any legislative action needed with respect to the matters described in subparagraphs
(A)and
(B)of this paragraph; and #####
(D)any other matters which the Association or the Corporation considers appropriate. The specific recommendations submitted under this paragraph shall set forth alternatives for the Congress to consider in the event it determines that modification of such recommendations is appropriate. ####
(4)In developing recommendations in accordance with this subsection, the Association and the Corporation shall identify measures designed to ensure a financially self-sustaining rail system in the region. The recommendations shall be based on analyses of rail properties which might be proposed for abandonment or transfer to another railroad or qualified person and proposed operating efficiencies which could improve the Corporation's revenue-to-cost ratio. ####
(5)In developing recommendations under this subsection, the Association and the Corporation shall each analyze and consider— #####
(A)projections of the Corporation's future traffic, revenues, operating costs, and capital requirements; #####
(B)rail properties which might be proposed for abandonment or transfer to another railroad or qualified person, taking into account the potential impact of changes in the regulatory environment; #####
(C)the impact on communities served by lines proposed for abandonment or transfer; #####
(D)proposed operating efficiencies which could improve the Corporation's revenue-to-cost ratio; #####
(E)the impact on the Corporation of proposed mergers by connecting or competing railroads; #####
(F)employee motivation and labor productivity programs and a projection of labor protection costs which could result from the recommendations; #####
(G)the future capital structure of the Corporation; and #####
(H)any other factors identified by the Association as relevant to the recommendations required to be developed and submitted pursuant to this section. ####
(6)#####
(A)The Association and the Corporation shall, on the date of submission of their recommendations to the Congress under this subsection, transmit copies of such recommendations to the Secretary, the Commission, and the Governor of each State that could be affected by such recommendations. Upon request, the Association and the Corporation shall furnish a copy of their recommendations to any interested person. #####
(B)As soon as practicable after submission of their recommendations to the Congress, the Association and the Corporation shall publish in the Federal Register a summary of such recommendations and invite interested parties to comment on such recommendations. ####
(7)The Commission shall, no later than May 1, 1981, submit to the Congress its comments on the reports of the Association, the Secretary, and the Corporation under this subsection. ####
(8)Not later than April 1, 1981, the Secretary shall submit to the Congress his recommendations with respect to the future structure and operations of the Corporation. Not later than May 1, 1981, the Secretary shall submit to the Congress his comments and recommendations with respect to the reports of the Association and the Corporation under this subsection, and shall make any changes in his recommendations that he determines are necessary. ####
(9)The antitrust laws, as defined in section 601(a)(3) of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 791(a)(3)), shall not apply to any action taken by the Association or the Secretary prior to May 1, 1981, in accordance with and under the authority of the provisions of this subsection. ###
(c)The Corporation shall, no later than March 15, 1981, submit to the Congress an analysis of the effects upon the Corporation and its employees of alternative changes in labor agreements and related operational changes. Such report shall include an analysis of any Federal funding that will be required. ###
(d)The Corporation shall, no later than January 15, 1981, submit to the Association its projections of the benefits to the Corporation of the Staggers Rail Act of 1980, its projections of changes needed in the structure of the rail system of the Corporation including properties which may be abandoned or transferred, and other projections of potential savings or increased revenues to the Corporation. ###
(e)Section 216(b) of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 726(b)), as amended by this Act, is further amended by adding at the end thereof the following new paragraph: > > #### “(4) > > Purchases of up to $329,000,000 of a series A preferred stock shall be made by the Association, subject to the availability of appropriations, as required and requested by the Corporation, if the Finance Committee makes an affirmative finding that the Corporation has taken appropriate action to eliminate losses on light density lines and other lines which are unprofitable. Such action shall include the imposition of surcharges on such lines, the abandonment of such lines, and the transfer of such lines.” > . ###
(f)####
(1)Section 216(a) of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 726(a)) is amended by striking out “$2,300,000,000” and inserting in lieu thereof “$2,629,000,000”. ####
(2)Section 216(g) of such Act (45 U.S.C. 726(g)) is amended by striking out “$3,300,000,000” and inserting in lieu thereof “$3,629,000,000”. ####
(3)Section 210(e) of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 720(e)) is amended by inserting immediately after “section” in the first sentence thereof the following: “or under subsection
(a)of section 306 of this Act”.
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