
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: 49USC10907]

 
                        TITLE 49--TRANSPORTATION
 
                 SUBTITLE IV--INTERSTATE TRANSPORTATION
 
                              PART A--RAIL
 
                         CHAPTER 109--LICENSING
 
Sec. 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) a railroad line is on a system diagram map as required 
    under section 10903 of this title, but the rail carrier owning such 
    line has not filed an application to abandon such line under section 
    10903 of this title 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) 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 
section 10705(a) of this title, 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) 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 October 1, 1980, 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.

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109 Stat. 
828.)


                            Prior Provisions

    Provisions similar to those in this section were contained in 
section 10910 of this title prior to the general amendment of this 
subtitle by Pub. L. 104-88, Sec. 102(a).
    Prior sections 10907 to 10910 and 10921 to 10936 were omitted in the 
general amendment of this subtitle by Pub. L. 104-88, Sec. 102(a).
    Section 10907, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1407, 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.
    Section 10908, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1407, related 
to discontinuing or changing interstate train or ferry transportation 
subject to State law.
    Section 10909, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1408, related 
to discontinuing or changing train or ferry transportation in one State.
    Section 10910, added Pub. L. 96-448, title IV, Sec. 401(a), Oct. 14, 
1980, 94 Stat. 1939; amended Pub. L. 97-468, title V, Sec. 506(a), Jan. 
14, 1983, 96 Stat. 2553; Pub. L. 103-272, Sec. 4(j)(27), July 5, 1994, 
108 Stat. 1369, related to railroad development. See section 10907 of 
this title.
    Section 10921, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1409, related 
to requirement for certificate, permit, or license. See section 13901 of 
this title.
    Section 10922, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1409; Pub. L. 
96-296, Secs. 5(a), 6, 34(a), July 1, 1980, 94 Stat. 794, 796, 825; Pub. 
L. 96-454, Sec. 10(a), Oct. 15, 1980, 94 Stat. 2021; Pub. L. 97-261, 
Secs. 6(a)-(c), (g), 7, 8, Sept. 20, 1982, 96 Stat. 1103, 1107, 1108; 
Pub. L. 98-554, title II, Secs. 225(a), (b), 226(b), Oct. 30, 1984, 98 
Stat. 2847, 2848, 2850; Pub. L. 100-17, title III, Secs. 339, 340(a), 
Apr. 2, 1987, 101 Stat. 243, 245; Pub. L. 100-690, title IX, 
Sec. 9111(g), Nov. 18, 1988, 102 Stat. 4533; Pub. L. 102-240, title III, 
Sec. 3003(b), Dec. 18, 1991, 105 Stat. 2088; Pub. L. 103-272, 
Sec. 5(m)(25), July 5, 1994, 108 Stat. 1378; Pub. L. 103-311, title II, 
Sec. 207, Aug. 26, 1994, 108 Stat. 1686; Pub. L. 103-429, 
Sec. 7(a)(4)(D), Oct. 31, 1994, 108 Stat. 4389, related to certificates 
of motor and water common carriers. See section 13902 of this title.
    Section 10923, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1410; Pub. L. 
96-258, Sec. 1(9), June 3, 1980, 94 Stat. 426; Pub. L. 96-296, 
Secs. 10(a)(2), (3), 34(b), July 1, 1980, 94 Stat. 799, 800, 825; Pub. 
L. 97-261, Sec. 13(a), Sept. 20, 1982, 96 Stat. 1114; Pub. L. 99-521, 
Sec. 8(a)(1), (2), Oct. 22, 1986, 100 Stat. 2996; Pub. L. 103-311, title 
II, Sec. 208, Aug. 26, 1994, 108 Stat. 1687, related to permits of motor 
and water contract carriers and household goods freight forwarders. See 
section 13903 of this title.
    Section 10924, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1412; Pub. L. 
96-296, Sec. 17(a), July 1, 1980, 94 Stat. 810; Pub. L. 97-261, 
Sec. 14(a)-(c), Sept. 20, 1982, 96 Stat. 1114; Pub. L. 103-272, 
Sec. 4(j)(28), July 5, 1994, 108 Stat. 1370, related to licenses of 
motor carrier brokers. See section 13904 of this title.
    Section 10925, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1412; Pub. L. 
96-296, Secs. 10(e), 17(b), July 1, 1980, 94 Stat. 801, 811; Pub. L. 97-
261, Secs. 13(b), 22, Sept. 20, 1982, 96 Stat. 1114, 1123; Pub. L. 97-
449, Sec. 5(g)(6), Jan. 12, 1983, 96 Stat. 2443; Pub. L. 99-521, 
Sec. 8(b), Oct. 22, 1986, 100 Stat. 2996; Pub. L. 103-311, title II, 
Sec. 209, Aug. 26, 1994, 108 Stat. 1688, related to effective periods of 
certificates, permits, and licenses. See section 13905 of this title.
    Section 10926, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1413; Pub. L. 
99-521, Sec. 8(c), Oct. 22, 1986, 100 Stat. 2996, related to transfers 
of certificates and permits.
    Section 10927, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1413; Pub. L. 
96-296, Sec. 29, July 1, 1980, 94 Stat. 820; Pub. L. 97-261, Sec. 18(h), 
Sept. 20, 1982, 96 Stat. 1121; Pub. L. 98-554, title II, Sec. 226(c)(2), 
(3), Oct. 30, 1984, 98 Stat. 2851; Pub. L. 99-521, Sec. 8(d), Oct. 22, 
1986, 100 Stat. 2996; Pub. L. 100-690, title IX, Sec. 9111(h), Nov. 18, 
1988, 102 Stat. 4534; Pub. L. 103-272, Sec. 5(m)(26), July 5, 1994, 108 
Stat. 1378, related to security of motor carriers, brokers, and freight 
forwarders. See section 13906 of this title.
    Section 10928, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1414; Pub. L. 
96-296, Sec. 23, July 1, 1980, 94 Stat. 814; Pub. L. 97-261, Sec. 15, 
Sept. 20, 1982, 96 Stat. 1114, related to temporary authority for motor 
and water carriers.
    Section 10929, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1415, related 
to temporary authority for previously exempt water transportation.
    Section 10930, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1415; Pub. L. 
96-296, Sec. 10(b), July 1, 1980, 94 Stat. 800; Pub. L. 99-521, 
Sec. 8(e), Oct. 22, 1986, 100 Stat. 2996, related to limitations on 
certificates and permits.
    Section 10931, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1416, related 
to motor common carriers providing transportation entirely in one State.
    Section 10932, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1417, related 
to motor carrier savings provisions.
    Section 10933, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1418; Pub. L. 
99-521, Sec. 8(f)(1), (2), Oct. 22, 1986, 100 Stat. 2996, 2997, related 
to authorizing abandonment of household goods freight forwarder service.
    Section 10934, added Pub. L. 96-454, Sec. 5(a)(1), Oct. 15, 1980, 94 
Stat. 2013; amended Pub. L. 98-554, title II, Sec. 227(a)(2), Oct. 30, 
1984, 98 Stat. 2852, related to household goods agents. See section 
13907 of this title.
    Section 10935, added Pub. L. 97-261, Sec. 16(a), Sept. 20, 1982, 96 
Stat. 1115; amended Pub. L. 103-272, Sec. 5(m)(27), July 5, 1994, 108 
Stat. 1378, related to discontinuing bus transportation in one State.
    Section 10936, added Pub. L. 103-311, title II, Sec. 211(a), Aug. 
26, 1994, 108 Stat. 1689, related to limitation on State regulation of 
intrastate passengers by bus.
