§745 Continuing Reorganization; Supplemental Transactions

Summary

Allows the Secretary or the Association to propose extra changes to railroad property moves if those changes would help create a financially self‑sustaining rail system for the region. The Association may only propose transfers of certain previously eligible properties that are essential to operations, or transfers from the Corporation to a Corporation subsidiary that follow the final plan. Proposals (except ones the Association makes itself) must be given to the Association in writing with details. The Association must publish a summary in the Federal Register within 10 days after getting a Secretary proposal or when the Association makes one. People may comment. The Association must study the proposal, consider comments and any hearing records, and publish an evaluation in the Federal Register within 120 days after that summary. That evaluation must say whether, taken as a whole, the transactions are in the public interest, consistent with the chapter and final plan goals, and fair and equitable. The Corporation’s written objections must be considered and published. Within 30 days after the Association’s report, each proposed transferor or transferee must tell the Association in writing whether the proposed transfer affecting them is acceptable; if they do not reply, the proposal stops and no more administrative or court action happens. The Commission then has 90 days after the Association’s report to decide whether the transactions, as a whole, meet the public‑interest and consistency tests. The Commission must consider views it receives from the Corporation and the Secretary within 30 days of the report. The Commission may add reasonable conditions. If it does not act in 90 days, the transactions are treated as approved. If the Association finds a proposal is acceptable, it must, within 40 days after the Commission’s decision or the end of the 90‑day period, ask the special court to order the Corporation to carry out the transactions. If the Association rejects a Secretary proposal but the Secretary still supports it, the Secretary may file a petition within 90 days after the Commission’s decision or the end of the 90‑day period. The special court will hold a hearing and decide whether the proposal, taken as a whole, meets the tests; if it does, the court orders the transactions; if not, the court explains why and the Association or Secretary may, within 120 days, change the terms and ask for reconsideration. The Corporation may petition and be represented. Only the special court can review these decisions and stop the transactions. Defined term: “fair and equitable” — means fair under the standards used to approve railroad reorganization plans under section 77 of the Bankruptcy Act, for the railroad estates and for holders of Corporation securities. Special rules for Connecticut and Rhode Island and certain short lines: Within 240 days after the Staggers Rail Act of 1980 takes effect, the Secretary must decide whether to start a transfer proposal covering all Corporation properties in Connecticut and Rhode Island. If the Secretary finds a transferee is financially and operationally able, that the transfer would promote a self‑sustaining rail system in those States, and that it matches the goals in section 716(a)(8), then the Secretary must begin negotiations within 10 days after August 13, 1981 and, within 120 days after August 13, 1981, petition the special court to transfer those properties and freight obligations to railroads that have submitted qualifying proposals or agreements (including proposals filed before May 1, 1981). Transfers must keep freight service for at least four years. The special court sets a fair price and fair joint‑rate splits and must require transferees to assume Amtrak charges on the Northeast Corridor in Connecticut and Rhode Island; if the Corporation runs any freight there after transfer, it must pay Amtrak. Employees protected under subchapter V immediately before August 13, 1981 who lose jobs because of these transfers may get benefits under section 797; “employee deprived of employment” means someone who cannot get work by normal seniority rules, but not someone who refuses a job offer. For five specific short lines listed, the Secretary must start talks within 20 days after August 13, 1981 and, within 120 days after that date, transfer those lines if a qualified purchaser offers to buy; a qualified purchaser must be financially self‑sustaining and guarantee continuous service for at least four years. The Secretary must set fair prices and may allow trackage rights up to 5 miles per transferred line.