
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 45USC1203]

 
                           TITLE 45--RAILROADS
 
                  CHAPTER 21--ALASKA RAILROAD TRANSFER
 
Sec. 1203. Transfer authorization


(a) Authority of Secretary; time, manner, etc., of transfer

    Subject to the provisions of this chapter, the United States, 
through the Secretary, shall transfer all rail properties of the Alaska 
Railroad to the State. Such transfer shall occur as soon as practicable 
after the Secretary has made the certifications required by subsection 
(d) of this section and shall be accomplished in the manner specified in 
subsection (b) of this section.

(b) Simultaneous and interim transfers, conveyances, etc.

    (1) On the date of transfer, the Secretary shall simultaneously:
        (A) deliver to the State a bill of sale conveying title to all 
    rail properties of the Alaska Railroad except any interest in real 
    property;
        (B) deliver to the State an interim conveyance of the rail 
    properties of the Alaska Railroad that are not conveyed pursuant to 
    subparagraph (A) of this paragraph and are not subject to unresolved 
    claims of valid existing rights;
        (C) deliver to the State an exclusive license granting the State 
    the right to use all rail properties of the Alaska Railroad not 
    conveyed pursuant to subparagraphs (A) or (B) of this paragraph 
    pending conveyances in accordance with the review and settlement or 
    final administrative adjudication of claims of valid existing 
    rights;
        (D) convey to the State a deed granting the State (i) an 
    exclusive-use easement for that portion of the right-of-way of the 
    Alaska Railroad within the Denali National Park and Preserve 
    extending not less than one hundred feet on either side of the main 
    or branch line tracks, and eight feet on either side of the 
    centerline of the ``Y'' track connecting the main line of the 
    railroad to the power station at McKinley Park Station and (ii) 
    title to railroad-related improvements within such right-of-way.

Prior to taking the action specified in subparagraphs (A) through (D) of 
this paragraph, the Secretary shall consult with the Secretary of the 
Interior. The exclusive-use easement granted pursuant to subparagraph 
(D) of this paragraph and all rights afforded by such easement shall be 
exercised only for railroad purposes, and for such other transportation, 
transmission, or communication purposes for which lands subject to such 
easement were utilized as of January 14, 1983. In the event of reversion 
to the United States, pursuant to section 1209 of this title, of the 
State's interests in all or part of the lands subject to such easement, 
such easement shall terminate with respect to the lands subject to such 
reversion, and no new exclusive-use easement with respect to such 
reverted lands shall be granted except by Act of Congress.
    (2) The Secretary shall deliver to the State an interim conveyance 
of rail properties of the Alaska Railroad described in paragraph (1)(C) 
of this subsection that become available for conveyance to the State 
after the date of transfer as a result of settlement, relinquishment, or 
final administrative adjudication pursuant to section 1205 of this 
title. Where the rail properties to be conveyed pursuant to this 
paragraph are surveyed at the time they become available for conveyance 
to the State, the Secretary shall deliver a patent therefor in lieu of 
an interim conveyance.
    (3) The force and effect of an interim conveyance made pursuant to 
paragraphs (1)(B) or (2) of this subsection shall be to convey to and 
vest in the State exactly the same right, title, and interest in and to 
the rail properties identified therein as the State would have received 
had it been issued a patent by the United States. The Secretary of the 
Interior shall survey the land conveyed by an interim conveyance to the 
State pursuant to paragraphs (1)(B) or (2) of this subsection and, upon 
completion of the survey, the Secretary shall issue a patent therefor.
    (4) The license granted pursuant to paragraph (1)(C) of this 
subsection shall authorize the State to use, occupy, and directly 
receive all benefits of the rail properties described in the license for 
the operation of the State-owned railroad in conformity with the 
Memorandum of Understanding referred to in section 1205(b)(3) of this 
title. The license shall be exclusive, subject only to valid leases, 
permits, and other instruments issued before the date of transfer and 
easements reserved pursuant to subsection (c)(2) of this section. With 
respect to any parcel conveyed pursuant to this chapter, the license 
shall terminate upon conveyance of such parcel.

(c) Reservations to United States in interim conveyances and patents

    (1) Interim conveyances and patents issued to the State pursuant to 
subsection (b) of this section shall confirm, convey and vest in the 
State all reservations to the United States (whether or not expressed in 
a particular patent or document of title), except the unexercised 
reservations to the United States for future rights-of-way made or 
required by the first section of the Act of March 12, 1914 (43 U.S.C. 
975d). The conveyance to the State of such reservations shall not be 
affected by the repeal of such Act under section 615 of this title.\1\
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    \1\ See References in Text note below.
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    (2) In the license granted under subsection (b)(1)(C) of this 
section and in all conveyances made to the State under this chapter, 
there shall be reserved to the Secretary of the Interior, the Secretary 
of Defense and the Secretary of Agriculture, as appropriate, existing 
easements for administration (including agency transportation and 
utility purposes) that are identified in the report required by section 
1204(a) of this title. The appropriate Secretary may obtain, only after 
consent of the State, such future easements as are necessary for 
administration. Existing and future easements and use of such easements 
shall not interfere with operations and support functions of the State-
owned railroad.
    (3) There shall be reserved to the Secretary of the Interior the 
right to use and occupy, without compensation, five thousand square feet 
of land at Talkeetna, Alaska, as described in ARR lease numbered 69-25-
0003-5165 for National Park Service administrative activities, so long 
as the use or occupation does not interfere with the operation of the 
State-owned railroad. This reservation shall be effective on the date of 
transfer under this section or the expiration date of such lease, 
whichever is later.

(d) Certifications by Secretary; scope, subject matter, etc.

    (1) Prior to the date of transfer, the Secretary shall certify that 
the State has agreed to operate the railroad as a rail carrier in 
intrastate and interstate commerce.
    (2)(A) Prior to the date of transfer, the Secretary shall also 
certify that the State has agreed to assume all rights, liabilities, and 
obligations of the Alaska Railroad on the date of transfer, including 
leases, permits, licenses, contracts, agreements, claims, tariffs, 
accounts receivable, and accounts payable, except as otherwise provided 
by this chapter.
    (B) Notwithstanding the provisions of subparagraph (A) of this 
paragraph, the United States shall be solely responsible for--
        (i) all claims and causes of action against the Alaska Railroad 
    that accrue on or before the date of transfer, regardless of the 
    date on which legal proceedings asserting such claims were or may be 
    filed, except that the United States shall, in the case of any tort 
    claim, only be responsible for any such claim against the United 
    States that accrues before the date of transfer and results in an 
    award, compromise, or settlement of more than $2,500, and the United 
    States shall not compromise or settle any claim resulting in State 
    liability without the consent of the State, which consent shall not 
    be unreasonably withheld; and
        (ii) all claims that resulted in a judgment or award against the 
    Alaska Railroad before the date of transfer.

    (C) For purposes of subparagraph (B) of this paragraph, the term 
``accrue'' shall have the meaning contained in section 2401 of title 28.
    (3)(A) Prior to the date of transfer, the Secretary shall also 
certify that the State-owned railroad has established arrangements 
pursuant to section 1206 of this title to protect the employment 
interests of employees of the Alaska Railroad during the two-year period 
commencing on the date of transfer. These arrangements shall include 
provisions--
        (i) which ensure that the State-owned railroad will adopt 
    collective bargaining agreements in accordance with the provisions 
    of subparagraph (B) of this paragraph;
        (ii) for the retention of all employees, other than officers of 
    the Alaska Railroad, who elect to transfer to the State-owned 
    railroad in their same positions for the two-year period commencing 
    on the date of transfer, except in cases of reassignment, separation 
    for cause, resignation, retirement, or lack of work;
        (iii) for the payment of compensation to transferred employees 
    (other than employees provided for in subparagraph (E) of this 
    paragraph), except in cases of separation for cause, resignation, 
    retirement, or lack of work, for two years commencing on the date of 
    transfer at or above the base salary levels in effect for such 
    employees on the date of transfer, unless the parties otherwise 
    agree during that two-year period;
        (iv) for priority of reemployment at the State-owned railroad 
    during the two-year period commencing on the date of transfer for 
    transferred employees who are separated for lack of work, in 
    accordance with subparagraph (C) of this paragraph (except for 
    officers of the Alaska Railroad, who shall receive such priority for 
    one year following the date of transfer);
        (v) for credit during the two-year period commencing on the date 
    of transfer for accrued annual and sick leave, seniority rights, and 
    relocation and turnaround travel allowances which have been accrued 
    during their period of Federal employment by transfered \2\ 
    employees retained by the State-owned railroad (except for officers 
    of the Alaska Railroad, who shall receive such credit for one year 
    following the date of transfer);
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    \2\ So in original.
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        (vi) for payment to transferred employees retained by the State-
    owned railroad during the two-year period commencing on the date of 
    transfer, including for one year officers retained or separated 
    under subparagraph (E) of this paragraph, of an amount equivalent to 
    the cost-of-living allowance to which they are entitled as Federal 
    employees on the day before the date of transfer, in accordance with 
    the provisions of subparagraph (D) of this paragraph; and
        (vii) for health and life insurance programs for transferred 
    employees retained by the State-owned railroad during the two-year 
    period commencing on the date of transfer, substantially equivalent 
    to the Federal health and life insurance programs available to 
    employees on the day before the date of transfer (except for 
    officers of the Alaska Railroad, who shall receive such credit for 
    one year following the date of transfer).

    (B) The State-owned railroad shall adopt all collective bargaining 
agreements which are in effect on the date of transfer. Such agreements 
shall continue in effect for the two-year period commencing on the date 
of transfer, unless the parties agree to the contrary before the 
expiration of that two-year period. Such agreements shall be 
renegotiated during the two-year period, unless the parties agree to the 
contrary. Any labor-management negotiation impasse declared before the 
date of transfer shall be settled in accordance with chapter 71 of title 
5. Any impasse declared after the date of transfer shall be subject to 
applicable State law.
    (C) Federal service shall be included in the computation of 
seniority for transferred employees with priority for reemployment, as 
provided in subparagraph (A)(iv) of this paragraph.
    (D) Payment to transferred employees pursuant to subparagraph 
(A)(vi) of this paragraph shall not exceed the percentage of any 
transferred employee's base salary level provided by the United States 
as a cost-of-living allowance on the day before the date of transfer, 
unless the parties agree to the contrary.
    (E) Prior to the date of transfer, the Secretary shall also certify 
that the State-owned railroad has agreed to the retention, for at least 
one year from the date of transfer, of the offices of the Alaska 
Railroad, except in cases of separation for cause, resignation, 
retirement, or lack of work, at or above their base salaries in effect 
on the date of transfer, in such positions as the State-owned railroad 
may determine; or to the payment of lump-sum severance pay in an amount 
equal to such base salary for one year to officers not retained by the 
State-owned railroad upon transfer or, for officers separated within one 
year on or after the date of transfer, of a portion of such lump-sum 
severance payment (diminished pro rata for employment by the State-owned 
railroad within one year of the date of transfer prior to separation).
    (4) Prior to the date of transfer, the Secretary shall also certify 
that the State has agreed to allow representatives of the Secretary 
adequate access to employees and records of the Alaska Railroad when 
needed for the performance of functions related to the period of Federal 
ownership.
    (5) Prior to the date of transfer, the Secretary shall also certify 
that the State has agreed to compensate the United States at the value, 
if any, determined pursuant to section 1204(d) of this title.

(Pub. L. 97-468, title VI, Sec. 604, Jan. 14, 1983, 96 Stat. 2559.)

                       References in Text

    Act of March 12, 1914, and such Act, referred to in subsec. (c)(1), 
is act Mar. 12, 1914, ch. 37, 38 Stat. 305, as amended, popularly known 
as the Alaska Railroad Act, which enacted section 353a of Title 16, 
Conservation, and sections 975 to 975g of Title 43, Public Lands, and 
which was repealed by section 615(a)(1) of Pub. L. 97-468 effective on 
the date of transfer of Alaska Railroad to the State [Jan. 5, 1985], 
pursuant to this section.
    Section 615 of this title, referred to in subsec. (c)(1), means 
section 615 of title VI of Pub. L. 97-468, Jan. 14, 1983, 96 Stat. 2577. 
Title VI of Pub. L. 97-468 is known as the Alaska Railroad Transfer Act 
of 1982 and is classified principally to this chapter. Under section 
615, the repeal is effective on the date of transfer to the State of 
Alaska (pursuant to section 1203 of this title) or other disposition 
(pursuant to section 1210 of this title), whichever first occurs.

             Transfer of Alaska Railroad to State of Alaska

    The State of Alaska accepted the certification requirements of the 
Alaska Railroad Transfer Act [this chapter] by 1984 SLA ch. 54, eff. May 
19, 1984. Thereafter, by 1984 SLA ch. 153, eff. July 6, 1984, the Alaska 
Railroad Corporation was established to manage and operate the Alaska 
Railroad. The transfer of the Alaska Railroad to the State of Alaska was 
carried out on January 5, 1985.

                  Section Referred to in Other Sections

    This section is referred to in sections 1202, 1204, 1205, 1206, 
1207, 1209, 1210, 1211 of this title.
