Title 45 USCTitle 45 Online@118-34not31 no OLRC 2023-12-19T11:31:11 USCConverter 1.7.2  Title 45 RAILROADS Current through 118-34not31    Chap. Sec.  1. Safety Appliances and Equipment on Railroad Engines and Cars, and Protection of Employees and Travelers [Repealed, See Chapters 203 to 209 and 213 of Title 49] 1  2. Liability for Injuries to Employees 51  3. Hours of Service of Employees [Repealed, See Chapters 211 and 213 of Title 49] 61  4. Care of Animals in Transit [Repealed, See Section 80502 of Title 49 71  5. Government-Aided Railroads [Repealed or Transferred] 81  6. Mediation, Conciliation, and Arbitration in Controversies Between Carriers and Employees [Repealed] 101  7. Adjustment Boards and Labor Boards [Repealed] 131  8. Railway Labor 151  9. Retirement of Railroad Employees 201  10. Tax on Carriers and Employees [Repealed or Omitted] 241  11. Railroad Unemployment Insurance 351  12. Temporary Railroad Unemployment Insurance Program 401  13. Railroad Safety [Repealed, See Chapters 201 and 213 of Title 49] 421  14. Rail Passenger Service [Repealed, See Chapters 241 to 247 of Title 49] 501  15. Emergency Rail Services 661  16. Regional Rail Reorganization 701  17. Railroad Revitalization and Regulatory Reform 801  18. Milwaukee Railroad Restructuring 901  19. Rock Island Railroad Employee Assistance 1001  20. Northeast Rail Service 1101  21. Alaska Railroad Transfer 1201  22. Conrail Privatization 1301 CHAPTER 1 SAFETY APPLIANCES AND EQUIPMENT ON RAILROAD ENGINES AND CARS, AND PROTECTION OF EMPLOYEES AND TRAVELERS  1 to 14. Repealed. Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379   Section 1, acts Mar. 2, 1893, ch. 196,  1 27 Stat. 531 June 22, 1988 Pub. L. 100342,  13(1)(A) 102 Stat. 630 section 20302 of Title 49  Section 2, acts Mar. 2, 1893, ch. 196,  2 27 Stat. 531 June 22, 1988 Pub. L. 100342,  13(1)(B) 102 Stat. 630 section 20302 of Title 49  Section 3, acts Mar. 2, 1893, ch. 196,  3 27 Stat. 531 June 22, 1988 Pub. L. 100342,  13(1)(C) 102 Stat. 630 section 20302 of Title 49  Section 4, acts Mar. 2, 1893, ch. 196,  4 27 Stat. 531 Oct. 15, 1966 Pub. L. 89670,  6(e)(1)(A) 80 Stat. 939 June 22, 1988 Pub. L. 100342,  13(1)(D) 102 Stat. 630 section 20302 of Title 49  Section 5, acts Mar. 2, 1893, ch. 196,  5 27 Stat. 531 June 22, 1988 Pub. L. 100342,  13(1)(E) 102 Stat. 630  Section 6, acts Mar. 2, 1893, ch. 196,  6 27 Stat. 532 Apr. 1, 1896, ch. 87 29 Stat. 85 June 25, 1948, ch. 646,  1 62 Stat. 909 Aug. 14, 1957 Pub. L. 85135,  1(1) 71 Stat. 352 Oct. 15, 1966 Pub. L. 89670,  6(e)(1)(A) 80 Stat. 939 July 8, 1976 Pub. L. 94348,  3(a) 90 Stat. 818 Nov. 2, 1978 Pub. L. 95574,  7(a) 92 Stat. 2461 Oct. 10, 1980 Pub. L. 96423,  8(b) 94 Stat. 1814 June 22, 1988 Pub. L. 100342,  13(1)(F) 102 Stat. 630 Sept. 3, 1992 Pub. L. 102365 106 Stat. 973  Section 7, acts Mar. 2, 1893, ch. 196,  8 27 Stat. 532 June 22, 1988 Pub. L. 100342,  13(1)(H) 102 Stat. 631 section 20304 of Title 49  Section 8, acts Mar. 2, 1903, ch. 976,  1 32 Stat. 943 June 22, 1988 Pub. L. 100342,  13(2)(A) 102 Stat. 631  Section 9, acts Mar. 2, 1903, ch. 976,  2 32 Stat. 943 Apr. 11, 1958 Pub. L. 85375 72 Stat. 86 Oct. 15, 1966 Pub. L. 89670,  6(e)(1)(B) 80 Stat. 939 June 22, 1988 Pub. L. 100342,  13(2)(B) 102 Stat. 631  Section 10, acts Mar. 2, 1903, ch. 976,  3 32 Stat. 943 June 25, 1948, ch. 646,  1 62 Stat. 909 Oct. 15, 1966 Pub. L. 89670,  6(e)(1)(B) 80 Stat. 939 June 22, 1988 Pub. L. 100342,  13(2)(C) 102 Stat. 631 Sept. 3, 1992 Pub. L. 102365,  9(a)(4) 106 Stat. 977 section 21302 of Title 49  Section 11, acts Apr. 14, 1910, ch. 160,  2 36 Stat. 298 June 22, 1988 Pub. L. 100342,  13(3)(A) 102 Stat. 631 section 20302 of Title 49  Section 12, acts Apr. 14, 1910, ch. 160,  3 36 Stat. 298 Oct. 15, 1966 Pub. L. 89670,  6(e)(1)(C) 80 Stat. 939 June 22, 1988 Pub. L. 100342,  13(3)(B) 102 Stat. 631  Section 13, acts Apr. 14, 1910, ch. 160,  4 36 Stat. 299 Aug. 14, 1957 Pub. L. 85135,  1(2) 71 Stat. 352 July 8, 1976 Pub. L. 94348,  3(b) 90 Stat. 818 Nov. 2, 1978 Pub. L. 95574,  7(b) 92 Stat. 2461 Jan. 14, 1983 Pub. L. 97468, title VII,  704 96 Stat. 2580 June 22, 1988 Pub. L. 100342,  13(3)(C) 102 Stat. 632 Sept. 3, 1992 Pub. L. 102365 106 Stat. 973  Section 14, acts Apr. 14, 1910, ch. 160,  5 36 Stat. 299 Oct. 15, 1966 Pub. L. 89670,  6(e)(1)(C) 80 Stat. 939 June 22, 1988 Pub. L. 100342,  13(3)(D) 102 Stat. 632 section 21302 of Title 49  15. Repealed. Pub. L. 97449,  7(b) Jan. 12, 1983 96 Stat. 2444   Section, acts Apr. 14, 1910, ch. 160,  6 36 Stat. 299 Oct. 15, 1966 Pub. L. 89670,  6(e)(1)(C) 80 Stat. 939 section 501(b) of Title 49  16. Repealed. Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379   Section, acts Apr. 14, 1910, ch. 160,  1 36 Stat. 298 June 22, 1988 Pub. L. 100342,  13(3)(E) 102 Stat. 632 section 20102 of Title 49  17 to 21. Repealed. Pub. L. 97468, title VII,  705 Jan. 14, 1983 96 Stat. 2580   Section 17, act May 30, 1908, ch. 225 35 Stat. 476  Section 18, acts May 30, 1908, ch. 225,  3 35 Stat. 476 June 25, 1948, ch. 646,  1 62 Stat. 909 Oct. 15, 1966 Pub. L. 89670,  6(e)(1)(D) 80 Stat. 939  Section 19, acts May 30, 1908, ch. 225,  4 35 Stat. 476 Oct. 15, 1966 Pub. L. 89670,  6(e)(1)(D) 80 Stat. 939  Section 20, act May 30, 1908, ch. 225,  5 35 Stat. 476  Section 21, act May 30, 1908, ch. 225,  6 35 Stat. 476  22 to 43a. Repealed. Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379   Section 22, acts Feb. 17, 1911, ch. 103,  1 36 Stat. 913 June 7, 1924, ch. 355,  1 43 Stat. 659 June 22, 1988 Pub. L. 100342,  14(1) 102 Stat. 632 section 20102 of Title 49  Section 23, acts Feb. 17, 1911, ch. 103,  2 36 Stat. 913 Mar. 4, 1915, ch. 169,  1 38 Stat. 1192 June 7, 1924, ch. 355,  2 43 Stat. 659 June 22, 1988 Pub. L. 100342,  14(2) 102 Stat. 632 section 20701 of Title 49  Section 24, acts Feb. 17, 1911, ch. 103,  3 36 Stat. 914 Apr. 22, 1940, ch. 124,  1 54 Stat. 148 May 27, 1947, ch. 85,  1 61 Stat. 120 Oct. 28, 1949, ch. 782 63 Stat. 972 June 22, 1988 Pub. L. 100342,  14(3) 102 Stat. 633 July 27, 1965 79 Stat. 1320 June 26, 1918, ch. 105 40 Stat. 616 June 7, 1924, ch. 355,  6 43 Stat. 659 June 27, 1930, ch. 644,  1 46 Stat. 822 Pub. L. 89554,  8(a) Sept. 6, 1966 80 Stat. 643  Section 25, acts Feb. 17, 1911, ch. 103,  3 36 Stat. 914 June 7, 1924, ch. 355,  3 43 Stat. 659 Apr. 22, 1940, ch. 124,  1 54 Stat. 148 May 27, 1947, ch. 85,  1 61 Stat. 120  Section 26, acts Feb. 17, 1911, ch. 103,  4 36 Stat. 914 Apr. 22, 1940, ch. 124,  1 54 Stat. 148 May 27, 1947, ch. 85,  2 61 Stat. 120 June 26, 1918, ch. 105 40 Stat. 616 June 27, 1930, ch. 644,  2 46 Stat. 823 Pub. L. 89554,  8(a) Sept. 6, 1966 80 Stat. 643  Section 27, act Feb. 17, 1911, ch. 103,  4 June 7, 1924, ch. 355,  4 43 Stat. 659 Apr. 22, 1940, ch. 124,  1 54 Stat. 148 section 26 of this title  Section 28, acts Feb. 17, 1911, ch. 103,  5 36 Stat. 914 Apr. 22, 1940, ch. 124,  1 54 Stat. 148 Oct. 15, 1966 Pub. L. 89670,  6(e)(1)(E) 80 Stat. 939 June 22, 1988 Pub. L. 100342,  14(4) 102 Stat. 633 section 20702 of Title 49  Section 29, acts Feb. 17, 1911, ch. 103,  6 36 Stat. 915 Apr. 22, 1940, ch. 124,  1 54 Stat. 148 Oct. 15, 1966 Pub. L. 89670,  6(e)(1)(E) 80 Stat. 939 Oct. 10, 1980 Pub. L. 96423,  13 94 Stat. 1816 June 22, 1988 Pub. L. 100342,  14(5) 102 Stat. 633 section 20702 of Title 49  Section 30, acts Mar. 4, 1915, ch. 169,  2 38 Stat. 1192 Apr. 22, 1940, ch. 124,  2 54 Stat. 148  Section 31, acts Feb. 17, 1911, ch. 103,  7 36 Stat. 916 Apr. 22, 1940, ch. 124,  1 54 Stat. 148 Oct. 15, 1966 Pub. L. 89670,  6(e)(1)(E) 80 Stat. 939  Section 32, acts Feb. 17, 1911, ch. 103,  8 36 Stat. 916 Apr. 22, 1940, ch. 124,  1 54 Stat. 148 June 22, 1988 Pub. L. 100342,  14(6) 102 Stat. 633 section 20703 of Title 49  Section 33, acts Feb. 17, 1911, ch. 103,  8 36 Stat. 916 Apr. 22, 1940, ch. 124,  1 54 Stat. 148 Oct. 15, 1966 Pub. L. 89670,  6(e)(1)(E) 80 Stat. 939 Jan. 3, 1975 Pub. L. 93633, title III,  304 88 Stat. 2168 section 32 of this title section 20703 of Title 49  Section 34, acts Feb. 17, 1911, ch. 103,  9 36 Stat. 916 Apr. 22, 1940, ch. 124,  1 54 Stat. 148 Aug. 14, 1957 Pub. L. 85135,  3 71 Stat. 352 July 8, 1976 Pub. L. 94348,  3(c) 90 Stat. 818 Nov. 2, 1978 Pub. L. 95574,  7(c) 92 Stat. 2461 Oct. 10, 1980 Pub. L. 96423,  8(c) 94 Stat. 1814 June 22, 1988 Pub. L. 100342,  14(7) 102 Stat. 633 Sept. 3, 1992 Pub. L. 102365 106 Stat. 973  Section 35, acts June 30, 1906 34 Stat. 838 Oct. 15, 1966 Pub. L. 89670,  6(e)(1)(H) 80 Stat. 939  Section 36, acts May 27, 1908, ch. 200,  1 35 Stat. 325 Oct. 15, 1966 Pub. L. 89670,  6(e)(1)(I) 80 Stat. 939 section 20504 of Title 49  Section 37, acts May 27, 1908, ch. 200,  1 35 Stat. 325 Mar. 4, 1909, ch. 299,  1 35 Stat. 965 Aug. 12, 1970 Pub. L. 91375,  4(a) 84 Stat. 773 section 20305 of Title 49  Section 38, acts May 6, 1910, ch. 208,  1 36 Stat. 350 Sept. 13, 1960 Pub. L. 86762,  1 74 Stat. 903 Oct. 15, 1966 Pub. L. 89670,  6(e)(1)(K) 80 Stat. 939 June 22, 1988 Pub. L. 100342,  15(1) 102 Stat. 633  Section 39, acts May 6, 1910, ch. 208,  2 36 Stat. 351 Jan. 3, 1975 Pub. L. 93633, title II,  204(b) 88 Stat. 2166 June 22, 1988 Pub. L. 100342,  15(2) 102 Stat. 634 Sept. 3, 1992 Pub. L. 102365,  4(a)(3) 106 Stat. 973 section 38 of this title  Section 40, acts May 6, 1910, ch. 208,  3 36 Stat. 351 Oct. 15, 1966 Pub. L. 89670,  6(e)(1)(K) 80 Stat. 939 Jan. 3, 1975 Pub. L. 93633, title III,  304 88 Stat. 2168 June 22, 1988 Pub. L. 100342,  15(3) 102 Stat. 634 section 20902 of Title 49  Section 41, act May 6, 1910, ch. 208,  4 36 Stat. 351 section 20903 of Title 49  Section 42, acts May 6, 1910, ch. 208,  5 36 Stat. 351 Sept. 13, 1960 Pub. L. 86762,  2 74 Stat. 904 Oct. 15, 1966 Pub. L. 89670,  6(e)(1)(K) 80 Stat. 939  Section 43, acts May 6, 1910, ch. 208,  7 36 Stat. 351 Sept. 13, 1960 Pub. L. 86762,  3 74 Stat. 904 June 22, 1988 Pub. L. 100342,  15(4) 102 Stat. 634 Sept. 3, 1992 Pub. L. 102365 106 Stat. 973  Section 43a, Pub. L. 100342,  24 June 22, 1988 102 Stat. 639 section 20901 of Title 49 Statutory Notes and Related Subsidiaries Short Title Act May 6, 1910, ch. 208 36 Stat. 350 Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379  44 to 46. Transferred  Editorial Notes Codification Sections 44 to 46 were transferred to sections 1201 to 1203, respectively, of former Title 49, Transportation, and were subsequently repealed and restated in section 80504 of Title 49 Pub. L. 103272 July 5, 1994 108 Stat. 1358 Section 44, acts Feb. 23, 1905, ch. 744,  1 33 Stat. 743 June 13, 1957 Pub. L. 8550,  1(1) 71 Stat. 69 Section 45, act Feb. 23, 1905, ch. 744,  2 33 Stat. 743 Section 46, acts Feb. 23, 1905, ch. 744,  3 33 Stat. 743 June 13, 1957 Pub. L. 8550,  1(2) 71 Stat. 69 CHAPTER 2 LIABILITY FOR INJURIES TO EMPLOYEES    Sec.  51. Liability of common carriers by railroad, in interstate or foreign commerce, for injuries to employees from negligence; employee defined.  52. Carriers in Territories or other possessions of United States.  53. Contributory negligence; diminution of damages.  54. Assumption of risks of employment.  54a. Certain Federal and State regulations deemed statutory authority.  55. Contract, rule, regulation, or device exempting from liability; set-off.  56. Actions; limitation; concurrent jurisdiction of courts.  57. Who included in term common carrier.  58. Duty or liability of common carriers and rights of employees under other acts not impaired.  59. Survival of right of action of person injured.  60. Penalty for suppression of voluntary information incident to accidents; separability.  51. Liability of common carriers by railroad, in interstate or foreign commerce, for injuries to employees from negligence; employee defined  Every common carrier by railroad while engaging in commerce between any of the several States or Territories, or between any of the States and Territories, or between the District of Columbia and any of the States or Territories, or between the District of Columbia or any of the States or Territories and any foreign nation or nations, shall be liable in damages to any person suffering injury while he is employed by such carrier in such commerce, or, in case of the death of such employee, to his or her personal representative, for the benefit of the surviving widow or husband and children of such employee; and, if none, then of such employees parents; and, if none, then of the next of kin dependent upon such employee, for such injury or death resulting in whole or in part from the negligence of any of the officers, agents, or employees of such carrier, or by reason of any defect or insufficiency, due to its negligence, in its cars, engines, appliances, machinery, track, roadbed, works, boats, wharves, or other equipment. Any employee of a carrier, any part of whose duties as such employee shall be the furtherance of interstate or foreign commerce; or shall, in any way directly or closely and substantially, affect such commerce as above set forth shall, for the purposes of this chapter, be considered as being employed by such carrier in such commerce and shall be considered as entitled to the benefits of this chapter. ( Apr. 22, 1908, ch. 149,  1 35 Stat. 65 Aug. 11, 1939, ch. 685,  1 53 Stat. 1404  Editorial Notes Amendments 1939Act Aug. 11, 1939 Statutory Notes and Related Subsidiaries Short Title The Act of Apr. 22, 1908 The following are also popularly known as Employers Liability Acts: June 11, 1906, ch. 3073 34 Stat. 232 Apr. 5, 1910, ch. 143 36 Stat. 291 Aug. 11, 1939, ch. 685 53 Stat. 1404  52. Carriers in Territories or other possessions of United States  Every common carrier by railroad in the Territories, the District of Columbia, the Panama Canal Zone, or other possessions of the United States shall be liable in damages to any person suffering injury while he is employed by such carrier in any of said jurisdictions, or, in case of the death of such employee, to his or her personal representative, for the benefit of the surviving widow or husband and children of such employee; and, if none, then of such employees parents; and, if none, then of the next of kin dependent upon such employee, for such injury or death resulting in whole or in part from the negligence of any of the officers, agents, or employees of such carrier, or by reason of any defect or insufficiency, due to its negligence, in its cars, engines, appliances, machinery, track, roadbed, works, boats, wharves, or other equipment. ( Apr. 22, 1908, ch. 149,  2 35 Stat. 65  53. Contributory negligence; diminution of damages  In all actions on and after April 22, 1908 Provided ( Apr. 22, 1908, ch. 149,  3 35 Stat. 66  54. Assumption of risks of employment  In any action brought against any common carrier under or by virtue of any of the provisions of this chapter to recover damages for injuries to, or the death of, any of its employees, such employee shall not be held to have assumed the risks of his employment in any case where such injury or death resulted in whole or in part from the negligence of any of the officers, agents, or employees of such carrier; and no employee shall be held to have assumed the risks of his employment in any case where the violation by such common carrier of any statute enacted for the safety of employees contributed to the injury or death of such employee. ( Apr. 22, 1908, ch. 149,  4 35 Stat. 66 Aug. 11, 1939, ch. 685,  1 53 Stat. 1404  Editorial Notes Amendments 1939Act Aug. 11, 1939  54a. Certain Federal and State regulations deemed statutory authority  A regulation, standard, or requirement in force, or prescribed by the Secretary of Transportation under chapter 201 of title 49 or by a State agency that is participating in investigative and surveillance activities under section 20105 of title 49 ( Apr. 22, 1908, ch. 149,  4A Pub. L. 103272,  4(i) July 5, 1994 108 Stat. 1365  55. Contract, rule, regulation, or device exempting from liability; set-off  Any contract, rule, regulation, or device whatsoever, the purpose or intent of which shall be to enable any common carrier to exempt itself from any liability created by this chapter, shall to that extent be void: Provided ( Apr. 22, 1908, ch. 149,  5 35 Stat. 66  56. Actions; limitation; concurrent jurisdiction of courts  No action shall be maintained under this chapter unless commenced within three years from the day the cause of action accrued. Under this chapter an action may be brought in a district court of the United States, in the district of the residence of the defendant, or in which the cause of action arose, or in which the defendant shall be doing business at the time of commencing such action. The jurisdiction of the courts of the United States under this chapter shall be concurrent with that of the courts of the several States. ( Apr. 22, 1908, ch. 149,  6 35 Stat. 66 Apr. 5, 1910, ch. 143,  1 36 Stat. 291 Mar. 3, 1911, ch. 231,  291 36 Stat. 1167 Aug. 11, 1939, ch. 685,  2 53 Stat. 1404 June 25, 1948, ch. 646,  18 62 Stat. 989  Editorial Notes Codification The first par. of this section is from act Apr. 22, 1908 The second par. of this section is from act Apr. 5, 1910 Amendments 1948Act June 25, 1948 1939Act Aug. 11, 1939 Statutory Notes and Related Subsidiaries  Change of Name District court substituted in text for circuit court to conform to act Mar. 3, 1911 Effective Date of 1948 Amendment Act June 25, 1948, ch. 646,  38 62 Stat. 992 Sept. 1, 1948  57. Who included in term common carrier  The term common carrier as used in this chapter shall include the receiver or receivers or other persons or corporations charged with the duty of the management and operation of the business of a common carrier. ( Apr. 22, 1908, ch. 149,  7 35 Stat. 66  58. Duty or liability of common carriers and rights of employees under other acts not impaired  Nothing in this chapter shall be held to limit the duty or liability of common carriers or to impair the rights of their employees under any other Act or Acts of Congress. ( Apr. 22, 1908, ch. 149,  8 35 Stat. 66  59. Survival of right of action of person injured  Any right of action given by this chapter to a person suffering injury shall survive to his or her personal representative, for the benefit of the surviving widow or husband and children of such employee, and, if none, then of such employees parents; and, if none, then of the next of kin dependent upon such employee, but in such cases there shall be only one recovery for the same injury. ( Apr. 22, 1908, ch. 149,  9 Apr. 5, 1910, ch. 143,  2 36 Stat. 291  60. Penalty for suppression of voluntary information incident to accidents; separability  Any contract, rule, regulation, or device whatsoever, the purpose, intent, or effect of which shall be to prevent employees of any common carrier from furnishing voluntarily information to a person in interest as to the facts incident to the injury or death of any employee, shall be void, and whoever, by threat, intimidation, order, rule, contract, regulation, or device whatsoever, shall attempt to prevent any person from furnishing voluntarily such information to a person in interest, or whoever discharges or otherwise disciplines or attempts to discipline any employee for furnishing voluntarily such information to a person in interest, shall, upon conviction thereof, be punished by a fine of not more than $1,000 or imprisoned for not more than one year, or by both such fine and imprisonment, for each offense: Provided If any provision of this chapter is declared unconstitutional or the applicability thereof to any person or circumstances is held invalid, the validity of the remainder of the chapter and the applicability of such provision to other persons and circumstances shall not be affected thereby. ( Apr. 22, 1908, ch. 149,  10 Aug. 11, 1939, ch. 685,  3 53 Stat. 1404 CHAPTER 3 HOURS OF SERVICE OF EMPLOYEES  61 to 64b. Repealed. Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379   Section 61, acts Mar. 4, 1907, ch. 2939,  1 34 Stat. 1415 Dec. 26, 1969 Pub. L. 91169,  1 83 Stat. 463 July 8, 1976 Pub. L. 94348,  4(c) 90 Stat. 818 Nov. 2, 1978 Pub. L. 95574 92 Stat. 2461 June 22, 1988 Pub. L. 100342,  16(1) 102 Stat. 634  Section 62, acts Mar. 4, 1907, ch. 2939,  2 34 Stat. 1416 Oct. 15, 1966 Pub. L. 89670,  6(e)(2) 80 Stat. 939 Dec. 26, 1969 Pub. L. 91169,  1 83 Stat. 463 July 8, 1976 Pub. L. 94348,  4(a) 90 Stat. 818 June 22, 1988 Pub. L. 100342 102 Stat. 634 section 63 of this title  Section 63, acts Mar. 4, 1907, ch. 2939,  3 34 Stat. 1416 May 4, 1916, ch. 109,  1 39 Stat. 61 Aug. 14, 1957 Pub. L. 85135,  2 71 Stat. 352 Oct. 15, 1966 Pub. L. 89670,  6(e)(2) 80 Stat. 939 Dec. 26, 1969 Pub. L. 91169,  1 83 Stat. 464 June 22, 1988 Pub. L. 100342,  16(3) 102 Stat. 635 section 21105 of Title 49  Section 63a, acts Mar. 4, 1907, ch. 2939,  3A July 8, 1976 Pub. L. 94348,  4(d) 90 Stat. 819 Nov. 2, 1978 Pub. L. 95574,  4(a) 92 Stat. 2459 June 22, 1988 Pub. L. 100342,  16(4) 102 Stat. 635  Section 64, acts Mar. 4, 1907, ch. 2939,  4 34 Stat. 1417 Oct. 15, 1966 Pub. L. 89670,  6(e)(2) 80 Stat. 939 Dec. 26, 1969 Pub. L. 91169,  1 83 Stat. 464 June 22, 1988 Pub. L. 100342,  16(5) 102 Stat. 635 section 21107 of Title 49  Section 64a, acts Mar. 4, 1907, ch. 2939,  5 34 Stat. 1417 Dec. 26, 1969 Pub. L. 91169,  1 83 Stat. 464 July 8, 1976 Pub. L. 94348,  4(e) 90 Stat. 819 Oct. 10, 1980 Pub. L. 96423,  12 94 Stat. 1816 June 22, 1988 Pub. L. 100342,  16(6) 102 Stat. 635 Sept. 3, 1992 Pub. L. 102365 106 Stat. 973  Section 64b, act Mar. 4, 1907, ch. 2939,  6 Dec. 26, 1969 Pub. L. 91169,  1 83 Stat. 465 Statutory Notes and Related Subsidiaries Short Title Act Mar. 4, 1907, ch. 2939 34 Stat. 1415 Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379  65, 66. Repealed. Pub. L. 104287,  10(b) Oct. 11, 1996 110 Stat. 3401   Section 65, act Sept. 3, 5, 1916, ch. 436,  1, 39 Stat. 721 section 28301 of Title 49  Section 66, act Sept. 3, 5, 1916, ch. 436,  4, 39 Stat. 722 section 65 of this title section 28302 of Title 49 Statutory Notes and Related Subsidiaries Short Title Act Sept. 3, 5, 1916, ch. 436, 39 Stat. 721 CHAPTER 4 CARE OF ANIMALS IN TRANSIT  71 to 74. Repealed. Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379   Section 71, act June 29, 1906, ch. 3594,  1 34 Stat. 607 section 80502 of Title 49  Section 72, act June 29, 1906, ch. 3594,  2 34 Stat. 608 section 80502 of Title 49  Section 73, act June 29, 1906, ch. 3594,  3 34 Stat. 608 section 80502 of Title 49  Section 74, acts June 29, 1906, ch. 3594,  4 34 Stat. 608 Mar. 3, 1911, ch. 231,  291 36 Stat. 1167 section 73 of this title section 80502 of Title 49 Statutory Notes and Related Subsidiaries Short Title Act June 29, 1906, ch. 3594 34 Stat. 607 Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379  75, 76. Transferred  Editorial Notes Codification Section 75, acts Mar. 3, 1891, ch. 521,  1 26 Stat. 833 May 28, 1928, ch. 824 45 Stat. 789 section 466a of Title 46 section 3901 of Title 46 Pub. L. 9889 Aug. 26, 1983 97 Stat. 500 Section 3901 of Title 46 Pub. L. 107171, title X,  10418(a)(20) May 13, 2002 116 Stat. 508 Section 76, acts Mar. 3, 1891, ch. 521,  2 26 Stat. 833 May 28, 1928, ch. 824 45 Stat. 790 section 466b of Title 46 section 3902 of Title 46 Pub. L. 9889 Aug. 26, 1983 97 Stat. 500 Section 3902 of Title 46 Pub. L. 107171, title X,  10418(a)(20) May 13, 2002 116 Stat. 508 CHAPTER 5 GOVERNMENT-AIDED RAILROADS  81 to 92. Repealed. Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379   Section 81, R.S.  5256; Nov. 6, 1978 Pub. L. 95598, title III,  322(g) 92 Stat. 2679  Section 82, R.S.  5257, provided for connection of other roads with Union Pacific Railroad or any of its branches.  Section 83, acts July 2, 1864, ch. 216,  15 13 Stat. 362 June 20, 1874, ch. 331 18 Stat. 111 Mar. 3, 1911, ch. 231,  291 36 Stat. 1167  Section 84, R.S.  5258, authorized interstate transport by railroads.  Section 85, R.S.  5259, related to compensation of directors, engineers, commissioners, or other agents appointed by the United States to examine roads or to act in conjunction with other officers of railroads or other corporations receiving land grants or other subsidies.  Section 86, R.S.  5260, related to withholding by Secretary of the Treasury of payments to certain railroads.  Section 87, R.S.  5261; June 25, 1948, ch. 646,  4 62 Stat. 986 Apr. 2, 1982 Pub. L. 97164, title I,  161(8) 96 Stat. 49 Oct. 29, 1992 Pub. L. 102572, title IX,  902(b)(2) 106 Stat. 4516 section 86 of this title  Section 88, R.S.  5262; Mar. 3, 1911, ch. 231,  291 36 Stat. 1167  Section 89, acts June 22, 1874, ch. 414 18 Stat. 200 Mar. 3, 1911, ch. 231,  291 36 Stat. 1167  Section 90, act Mar. 3, 1879, ch. 183,  1 20 Stat. 420  Section 91, act Mar. 3, 1897, ch. 386 29 Stat. 663 section 90 of this title  Section 92, act Mar. 3, 1901, ch. 831,  1 31 Stat. 1023  92a. Repealed. Aug. 10, 1956, ch. 1041,  53 70A Stat. 641   Section 92a, acts Feb. 14, 1933, ch. 51 47 Stat. 800 Mar. 2, 1933, ch. 187 47 Stat. 1424 section 10721 of Title 49  Prior to repeal, section was classified to section 1375b of former Title 10, Army and Air Force.  93. Transferred  Editorial Notes Codification Section, act Apr. 30, 1908, ch. 153 35 Stat. 73 section 443b of Title 25 section 1457 of Title 43  94, 95. Repealed. Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379   Section 94, act Mar. 3, 1887, ch. 345,  4 24 Stat. 491  Section 95, act Mar. 3, 1887, ch. 345,  5 24 Stat. 492 CHAPTER 6 MEDIATION, CONCILIATION, AND ARBITRATION IN CONTROVERSIES BETWEEN CARRIERS AND EMPLOYEES  101 to 125. Repealed. May 20, 1926, ch. 347,  14 44 Stat. 587   Section 101, act July 15, 1913, ch. 6,  1 38 Stat. 103  Section 102, act July 15, 1913, ch. 6,  1 38 Stat. 103  Section 103, act July 15, 1913, ch. 6,  1 38 Stat. 103  Section 104, act July 15, 1913, ch. 6,  1 38 Stat. 103  Section 105, act July 15, 1913, ch. 6,  2 38 Stat. 104  Section 106, act July 15, 1913, ch. 6,  2 38 Stat. 104  Section 107, act July 15, 1913, ch. 6,  2 38 Stat. 104  Section 108, act July 15, 1913, ch. 6,  3 38 Stat. 104  Section 109, act July 15, 1913, ch. 6,  4 38 Stat. 105  Section 110, act July 15, 1913, ch. 6,  5 38 Stat. 106  Section 111, act July 15, 1913, ch. 6,  6 38 Stat. 106  Section 112, act July 15, 1913, ch. 6,  6 38 Stat. 106  Section 113, act July 15, 1913, ch. 6,  6 38 Stat. 106  Section 114, act July 15, 1913, ch. 6,  6 38 Stat. 106  Section 115, act July 15, 1913, ch. 6,  7 38 Stat. 106  Section 116, act July 15, 1913, ch. 6,  7 38 Stat. 106  Section 117, act July 15, 1913, ch. 6,  8 38 Stat. 107  Section 118, act July 15, 1913, ch. 6,  8 38 Stat. 107  Section 119, act July 15, 1913, ch. 6,  8 38 Stat. 107  Section 120, act July 15, 1913, ch. 6,  8 38 Stat. 107  Section 121, act July 15, 1913, ch. 6,  8 38 Stat. 107  Section 122, act July 15, 1913, ch. 6,  9 38 Stat. 107  Section 123, acts July 15, 1913, ch. 6,  10 38 Stat. 108 June 5, 1920, ch. 235,  1 41 Stat. 886  Section 124, act July 15, 1913, ch. 6,  11 38 Stat. 108  Section 125, act July 15, 1913, ch. 6,  11 38 Stat. 108  126. Repealed. Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379   Section, act Dec. 15, 1921, ch. 1,  1 42 Stat. 328 CHAPTER 7 ADJUSTMENT BOARDS AND LABOR BOARDS  131 to 146. Repealed. May 20, 1926, ch. 347,  14 44 Stat. 587   Section 131, act Feb. 28, 1920, ch. 91,  300 41 Stat. 469  Section 132, act Feb. 28, 1920, ch. 91,  301 41 Stat. 469  Section 133, act Feb. 28, 1920, ch. 91,  302 41 Stat. 469  Section 134, act Feb. 28, 1920, ch. 91,  303 41 Stat. 469  Section 135, act Feb. 28, 1920, ch. 91,  304 41 Stat. 470  Section 136, act Feb. 28, 1920, ch. 91,  305 41 Stat. 470  Section 137, act Feb. 28, 1920, ch. 91,  306 41 Stat. 470  Section 138, act Feb. 28, 1920, ch. 91,  306 41 Stat. 470  Section 139, act Feb. 28, 1920, ch. 91,  307 41 Stat. 470  Section 140, act Feb. 28, 1920, ch. 91,  308 41 Stat. 472  Section 141, act Feb. 28, 1920, ch. 91,  309 41 Stat. 472  Section 142, act Feb. 28, 1920, ch. 91,  310 41 Stat. 472  Section 143, act Feb. 28, 1920, ch. 91,  311 41 Stat. 472  Section 144, act Feb. 28, 1920, ch. 91,  313 41 Stat. 473  Section 145, act Feb. 28, 1920, ch. 91,  314 41 Stat. 473  Section 146, act Feb. 28, 1920, ch. 91,  316 41 Stat. 474 CHAPTER 8 RAILWAY LABOR    SUBCHAPTER IGENERAL PROVISIONS  Sec.  151. Definitions; short title.  151a. General purposes.  152. General duties.  153. National Railroad Adjustment Board.  154. National Mediation Board.  155. Functions of Mediation Board.  156. Procedure in changing rates of pay, rules, and working conditions.  157. Arbitration.  158. Agreement to arbitrate; form and contents; signatures and acknowledgment; revocation.  159. Award and judgment thereon; effect of chapter on individual employee.  159a. Special procedure for commuter service.  160. Emergency board.  160a. Rules and regulations.  161. Effect of partial invalidity of chapter.  162. Authorization of appropriations.  163. Repeal of prior legislation; exception.  164. Repealed.  165. Evaluation and audit of Mediation Board.  SUBCHAPTER IICARRIERS BY AIR  181. Application of subchapter I to carriers by air.  182. Duties, penalties, benefits, and privileges of subchapter I applicable.  183. Disputes within jurisdiction of Mediation Board.  184. System, group, or regional boards of adjustment.  185. National Air Transport Adjustment Board.  186. Omitted.  187. Separability.  188. Authorization of appropriations. SUBCHAPTER I GENERAL PROVISIONS  151. Definitions; short title  When used in this chapter and for the purposes of this chapter First. The term carrier includes any railroad subject to the jurisdiction of the Surface Transportation Board, any express company that would have been subject to subtitle IV of title 49, as of December 31, 1995 1 1 Provided, however Second. The term Adjustment Board means the National Railroad Adjustment Board created by this chapter. Third. The term Mediation Board means the National Mediation Board created by this chapter. Fourth. The term commerce means commerce among the several States or between any State, Territory, or the District of Columbia and any foreign nation, or between any Territory or the District of Columbia and any State, or between any Territory and any other Territory, or between any Territory and the District of Columbia, or within any Territory or the District of Columbia, or between points in the same State but through any other State or any Territory or the District of Columbia or any foreign nation. Fifth. The term employee as used herein includes every person in the service of a carrier (subject to its continuing authority to supervise and direct the manner of rendition of his service) who performs any work defined as that of an employee or subordinate official in the orders of the Surface Transportation Board now in effect, and as the same may be amended or interpreted by orders hereafter entered by the Board pursuant to the authority which is conferred upon it to enter orders amending or interpreting such existing orders: Provided, however The term employee shall not include any individual while such individual is engaged in the physical operations consisting of the mining of coal, the preparation of coal, the handling (other than movement by rail with standard railroad locomotives) of coal not beyond the mine tipple, or the loading of coal at the tipple. Sixth. The term representative means any person or persons, labor union, organization, or corporation designated either by a carrier or group of carriers or by its or their employees, to act for it or them. Seventh. The term district court includes the United States District Court for the District of Columbia; and the term court of appeals includes the United States Court of Appeals for the District of Columbia. This chapter may be cited as the Railway Labor Act. ( May 20, 1926, ch. 347,  1 44 Stat. 577 June 7, 1934, ch. 426 48 Stat. 926 June 21, 1934, ch. 691,  1 48 Stat. 1185 June 25, 1936, ch. 804 49 Stat. 1921 Aug. 13, 1940, ch. 664 54 Stat. 785 June 25, 1948, ch. 646,  32(a) 62 Stat. 991 May 24, 1949, ch. 139,  127 63 Stat. 107 Pub. L. 10488, title III,  322 Dec. 29, 1995 109 Stat. 950 Pub. L. 104264, title XII,  1223 Oct. 9, 1996 110 Stat. 3287  Editorial Notes  References in Text This chapter, referred to in text, was in the original this Act, meaning act May 20, 1926, ch. 347 44 Stat. 577 act June 25, 1948, ch. 646 62 Stat. 992 Codification Provisions of act Aug. 13, 1940 section 228a of this title As originally enacted, par. Seventh contained references to the Supreme Court of the District of Columbia. Act June 25, 1936 June 25, 1948 May 24, 1949 As originally enacted, par. Seventh contained references to the circuit court of appeals. Act June 25, 1948 May 24, 1949 As originally enacted, par. Seventh contained references to the Court of Appeals of the District of Columbia. Act June 7, 1934 Amendments 1996Par. First. Pub. L. 104264 December 31, 1995 1995Par. First. Pub. L. 10488,  322(1) Par. Fifth. Pub. L. 10488,  322(2) 1940Act Aug. 13, 1940 1934Act June 21, 1934 Statutory Notes and Related Subsidiaries Effective Date of 1996 Amendment Except as otherwise specifically provided, amendment by Pub. L. 104264 Sept. 30, 1996 Oct. 1, 1996 section 3 of Pub. L. 104264 section 106 of Title 49 Effective Date of 1995 Amendment Amendment by Pub. L. 10488 Jan. 1, 1996 section 2 of Pub. L. 10488 section 1301 of Title 49 Restriction on Establishment of New Annuities or Pensions Pub. L. 91215,  7 Mar. 17, 1970 84 Stat. 72 No carrier and no representative of employees, as defined in section 1 of the Railway Labor Act [this section], shall, before April 1, 1974 o July 1, 1974 July 1, 1974 Provided o Social Insurance and Labor Relations of Railroad Coal-Mining Employees; Retroactive Operation of Act August 13, 1940 Act Aug. 13, 1940, ch. 664 54 Stat. 786 July 16, 1946 60 Stat. 1095  Sec section 1532 of Title 26 August 14, 1935 (b) No person (as defined in the Carriers Taxing Act of 1937 [section 261 et seq. of this title]) shall be entitled, by reason of the provisions of this Act, to a refund of, or relief from liability for, any income or excise taxes paid or accrued, pursuant to the provisions of the Carriers Taxing Act of 1937 or subchapter B of chapter 9 of the Internal Revenue Code [section 1500 et seq. of former Title 26, Internal Revenue Code of 1939], prior to the date of the enactment of this Act [ Aug. 13, 1940 49 U.S.C. 1 (c) Nothing contained in this Act shall operate (1) to affect any annuity, pension, or death benefit granted under the Railroad Retirement Act of 1935 [section 215 et seq. of this title] or the Railroad Retirement Act of 1937 [section 228a et seq. of this title], prior to the date of enactment of this Act [ Aug. 13, 1940 section 404 of Title 42 January 1, 1940 (d) Nothing contained in this Act shall operate to affect the benefit rights of any individual under the Railroad Unemployment Insurance Act [section 351 et seq. of this title] for any day of unemployment (as defined in section 1(k) of such Act [ section 351(k) of this title Aug. 13, 1940  Sec section 402 of Title 42  Sec  Sec February 1, 1940 Aug. 13, 1940 July 1, 1939 December 31, 1939 (b) Notwithstanding the provisions of section 1601(a)(3) of the Internal Revenue Code [section 1601(a)(3) of former Title 26, Internal Revenue Code of 1939], the credit allowable under section 1601(a) against the tax imposed by section 1600 for the calendar year 1939 shall not be disallowed or reduced by reason of the payment into a State unemployment fund after January 31, 1940 July 1, 1939 December 31, 1939 Aug. 13, 1940 Provided  151a. General purposes  The purposes of the chapter are: (1) To avoid any interruption to commerce or to the operation of any carrier engaged therein; (2) to forbid any limitation upon freedom of association among employees or any denial, as a condition of employment or otherwise, of the right of employees to join a labor organization; (3) to provide for the complete independence of carriers and of employees in the matter of self-organization to carry out the purposes of this chapter; (4) to provide for the prompt and orderly settlement of all disputes concerning rates of pay, rules, or working conditions; (5) to provide for the prompt and orderly settlement of all disputes growing out of grievances or out of the interpretation or application of agreements covering rates of pay, rules, or working conditions. ( May 20, 1926, ch. 347,  2 44 Stat. 577 June 21, 1934, ch. 691,  2 48 Stat. 1186  Editorial Notes Codification Section is comprised of the first sentence of section 2 of act May 20, 1926 June 21, 1934 May 20, 1926 section 152 of this title Amendments 1934Act June 21, 1934 May 20, 1926  152. General duties  First. Duty of carriers and employees to settle disputes It shall be the duty of all carriers, their officers, agents, and employees to exert every reasonable effort to make and maintain agreements concerning rates of pay, rules, and working conditions, and to settle all disputes, whether arising out of the application of such agreements or otherwise, in order to avoid any interruption to commerce or to the operation of any carrier growing out of any dispute between the carrier and the employees thereof. Second. Consideration of disputes by representatives All disputes between a carrier or carriers and its or their employees shall be considered, and, if possible, decided, with all expedition, in conference between representatives designated and authorized so to confer, respectively, by the carrier or carriers and by the employees thereof interested in the dispute. Third. Designation of representatives Representatives, for the purposes of this chapter, shall be designated by the respective parties without interference, influence, or coercion by either party over the designation of representatives by the other; and neither party shall in any way interfere with, influence, or coerce the other in its choice of representatives. Representatives of employees for the purposes of this chapter need not be persons in the employ of the carrier, and no carrier shall, by interference, influence, or coercion seek in any manner to prevent the designation by its employees as their representatives of those who or which are not employees of the carrier. Fourth. Organization and collective bargaining; freedom from interference by carrier; assistance in organizing or maintaining organization by carrier forbidden; deduction of dues from wages forbidden Employees shall have the right to organize and bargain collectively through representatives of their own choosing. The majority of any craft or class of employees shall have the right to determine who shall be the representative of the craft or class for the purposes of this chapter. No carrier, its officers, or agents shall deny or in any way question the right of its employees to join, organize, or assist in organizing the labor organization of their choice, and it shall be unlawful for any carrier to interfere in any way with the organization of its employees, or to use the funds of the carrier in maintaining or assisting or contributing to any labor organization, labor representative, or other agency of collective bargaining, or in performing any work therefor, or to influence or coerce employees in an effort to induce them to join or remain or not to join or remain members of any labor organization, or to deduct from the wages of employees any dues, fees, assessments, or other contributions payable to labor organizations, or to collect or to assist in the collection of any such dues, fees, assessments, or other contributions: Provided Fifth. Agreements to join or not to join labor organizations forbidden No carrier, its officers, or agents shall require any person seeking employment to sign any contract or agreement promising to join or not to join a labor organization; and if any such contract has been enforced prior to the effective date of this chapter, then such carrier shall notify the employees by an appropriate order that such contract has been discarded and is no longer binding on them in any way. Sixth. Conference of representatives; time; place; private agreements In case of a dispute between a carrier or carriers and its or their employees, arising out of grievances or out of the interpretation or application of agreements concerning rates of pay, rules, or working conditions, it shall be the duty of the designated representative or representatives of such carrier or carriers and of such employees, within ten days after the receipt of notice of a desire on the part of either party to confer in respect to such dispute, to specify a time and place at which such conference shall be held: Provided And provided further Seventh. Change in pay, rules, or working conditions contrary to agreement or to section 156 forbidden No carrier, its officers, or agents shall change the rates of pay, rules, or working conditions of its employees, as a class, as embodied in agreements except in the manner prescribed in such agreements or in section 156 of this title Eighth. Notices of manner of settlement of disputes; posting Every carrier shall notify its employees by printed notices in such form and posted at such times and places as shall be specified by the Mediation Board that all disputes between the carrier and its employees will be handled in accordance with the requirements of this chapter, and in such notices there shall be printed verbatim, in large type, the third, fourth, and fifth paragraphs of this section. The provisions of said paragraphs are made a part of the contract of employment between the carrier and each employee, and shall be held binding upon the parties, regardless of any other express or implied agreements between them. Ninth. Disputes as to identity of representatives; designation by Mediation Board; secret elections If any dispute shall arise among a carriers employees as to who are the representatives of such employees designated and authorized in accordance with the requirements of this chapter, it shall be the duty of the Mediation Board, upon request of either party to the dispute, to investigate such dispute and to certify to both parties, in writing, within thirty days after the receipt of the invocation of its services, the name or names of the individuals or organizations that have been designated and authorized to represent the employees involved in the dispute, and certify the same to the carrier. Upon receipt of such certification the carrier shall treat with the representative so certified as the representative of the craft or class for the purposes of this chapter. In such an investigation, the Mediation Board shall be authorized to take a secret ballot of the employees involved, or to utilize any other appropriate method of ascertaining the names of their duly designated and authorized representatives in such manner as shall insure the choice of representatives by the employees without interference, influence, or coercion exercised by the carrier. In the conduct of any election for the purposes herein indicated the Board shall designate who may participate in the election and establish the rules to govern the election, or may appoint a committee of three neutral persons who after hearing shall within ten days designate the employees who may participate in the election. In any such election for which there are 3 or more options (including the option of not being represented by any labor organization) on the ballot and no such option receives a majority of the valid votes cast, the Mediation Board shall arrange for a second election between the options receiving the largest and the second largest number of votes. The Board shall have access to and have power to make copies of the books and records of the carriers to obtain and utilize such information as may be deemed necessary by it to carry out the purposes and provisions of this paragraph. Tenth. Violations; prosecution and penalties The willful failure or refusal of any carrier, its officers or agents, to comply with the terms of the third, fourth, fifth, seventh, or eighth paragraph of this section shall be a misdemeanor, and upon conviction thereof the carrier, officer, or agent offending shall be subject to a fine of not less than $1,000, nor more than $20,000, or imprisonment for not more than six months, or both fine and imprisonment, for each offense, and each day during which such carrier, officer, or agent shall willfully fail or refuse to comply with the terms of the said paragraphs of this section shall constitute a separate offense. It shall be the duty of any United States attorney to whom any duly designated representative of a carriers employees may apply to institute in the proper court and to prosecute under the direction of the Attorney General of the United States, all necessary proceedings for the enforcement of the provisions of this section, and for the punishment of all violations thereof and the costs and expenses of such prosecution shall be paid out of the appropriation for the expenses of the courts of the United States: Provided Eleventh. Union security agreements; check-off Notwithstanding any other provisions of this chapter, or of any other statute or law of the United States, or Territory thereof, or of any State, any carrier or carriers as defined in this chapter and a labor organization or labor organizations duly designated and authorized to represent employees in accordance with the requirements of this chapter shall be permitted (a) to make agreements, requiring, as a condition of continued employment, that within sixty days following the beginning of such employment, or the effective date of such agreements, whichever is the later, all employees shall become members of the labor organization representing their craft or class: Provided (b) to make agreements providing for the deduction by such carrier or carriers from the wages of its or their employees in a craft or class and payment to the labor organization representing the craft or class of such employees, of any periodic dues, initiation fees, and assessments (not including fines and penalties) uniformly required as a condition of acquiring or retaining membership: Provided (c) The requirement of membership in a labor organization in an agreement made pursuant to subparagraph (a) of this paragraph shall be satisfied, as to both a present or future employee in engine, train, yard, or hostling service, that is, an employee engaged in any of the services or capacities covered in the First division of paragraph (h) of section 153 of this title Provided, however Provided, further (d) Any provisions in paragraphs Fourth and Fifth of this section in conflict herewith are to the extent of such conflict amended. Twelfth. Showing of interest for representation elections The Mediation Board, upon receipt of an application requesting that an organization or individual be certified as the representative of any craft or class of employees, shall not direct an election or use any other method to determine who shall be the representative of such craft or class unless the Mediation Board determines that the application is supported by a showing of interest from not less than 50 percent of the employees in the craft or class. ( May 20, 1926, ch. 347,  2 44 Stat. 577 June 21, 1934, ch. 691,  2 48 Stat. 1186 June 25, 1948, ch. 646,  1 62 Stat. 909 Jan. 10, 1951, ch. 1220 64 Stat. 1238 Pub. L. 11295, title X Feb. 14, 2012 126 Stat. 146  Editorial Notes  References in Text The effective date of this chapter, referred to in par. Fifth, probably means May 20, 1926 act May 20, 1926, ch. 347 44 Stat. 577 Codification Section is comprised of pars. designated First to Twelfth of section 2 of act May 20, 1926 May 20, 1926 section 151a of this title Amendments 2012 Pub. L. 11295,  1002 Pub. L. 11295,  1003 1951Act Jan. 10, 1951 1934Act June 21, 1934 Statutory Notes and Related Subsidiaries  Change of Name Act June 25, 1948 Sept. 1, 1948 section 541 of Title 28  153. National Railroad Adjustment Board  First. Establishment; composition; powers and duties; divisions; hearings and awards; judicial review There is established a Board, to be known as the National Railroad Adjustment Board, the members of which shall be selected within thirty days after June 21, 1934 (a) That the said Adjustment Board shall consist of thirty-four members, seventeen of whom shall be selected by the carriers and seventeen by such labor organizations of the employees, national in scope, as have been or may be organized in accordance with the provisions of sections 151a and 152 of this title. (b) The carriers, acting each through its board of directors or its receiver or receivers, trustee or trustees, or through an officer or officers designated for that purpose by such board, trustee or trustees, or receiver or receivers, shall prescribe the rules under which its representatives shall be selected and shall select the representatives of the carriers on the Adjustment Board and designate the division on which each such representative shall serve, but no carrier or system of carriers shall have more than one voting representative on any division of the Board. (c) Except as provided in the second paragraph of subsection (h) of this section, the national labor organizations, as defined in paragraph (a) of this section, acting each through the chief executive or other medium designated by the organization or association thereof, shall prescribe the rules under which the labor members of the Adjustment Board shall be selected and shall select such members and designate the division on which each member shall serve; but no labor organization shall have more than one voting representative on any division of the Board. (d) In case of a permanent or temporary vacancy on the Adjustment Board, the vacancy shall be filled by selection in the same manner as in the original selection. (e) If either the carriers or the labor organizations of the employees fail to select and designate representatives to the Adjustment Board, as provided in paragraphs (b) and (c) of this section, respectively, within sixty days after June 21, 1934 (f) In the event a dispute arises as to the right of any national labor organization to participate as per paragraph (c) of this section in the selection and designation of the labor members of the Adjustment Board, the Secretary of Labor shall investigate the claim of such labor organization to participate, and if such claim in the judgment of the Secretary of Labor has merit, the Secretary shall notify the Mediation Board accordingly, and within ten days after receipt of such advice the Mediation Board shall request those national labor organizations duly qualified as per paragraph (c) of this section to participate in the selection and designation of the labor members of the Adjustment Board to select a representative. Such representative, together with a representative likewise designated by the claimant, and a third or neutral party designated by the Mediation Board, constituting a board of three, shall within thirty days after the appointment of the neutral member, investigate the claims of the labor organization desiring participation and decide whether or not it was organized in accordance with sections 151a and 152 of this title and is otherwise properly qualified to participate in the selection of the labor members of the Adjustment Board, and the findings of such boards of three shall be final and binding. (g) Each member of the Adjustment Board shall be compensated by the party or parties he is to represent. Each third or neutral party selected under the provisions of paragraph (f) of this section shall receive from the Mediation Board such compensation as the Mediation Board may fix, together with his necessary traveling expenses and expenses actually incurred for subsistence, or per diem allowance in lieu thereof, subject to the provisions of law applicable thereto, while serving as such third or neutral party. (h) The said Adjustment Board shall be composed of four divisions, whose proceedings shall be independent of one another, and the said divisions as well as the number of their members shall be as follows: First division: To have jurisdiction over disputes involving train- and yard-service employees of carriers; that is, engineers, firemen, hostlers, and outside hostler helpers, conductors, trainmen, and yard-service employees. This division shall consist of eight members, four of whom shall be selected and designated by the carriers and four of whom shall be selected and designated by the labor organizations, national in scope and organized in accordance with sections 151a and 152 of this title and which represent employees in engine, train, yard, or hostling service: Provided, however Provided further, however Second division: To have jurisdiction over disputes involving machinists, boilermakers, blacksmiths, sheet-metal workers, electrical workers, carmen, the helpers and apprentices of all the foregoing, coach cleaners, power-house employees, and railroad-shop laborers. This division shall consist of ten members, five of whom shall be selected by the carriers and five by the national labor organizations of the employees. Third division: To have jurisdiction over disputes involving station, tower, and telegraph employees, train dispatchers, maintenance-of-way men, clerical employees, freight handlers, express, station, and store employees, signal men, sleeping-car conductors, sleeping-car porters, and maids and dining-car employees. This division shall consist of ten members, five of whom shall be selected by the carriers and five by the national labor organizations of employees. Fourth division: To have jurisdiction over disputes involving employees of carriers directly or indirectly engaged in transportation of passengers or property by water, and all other employees of carriers over which jurisdiction is not given to the first, second, and third divisions. This division shall consist of six members, three of whom shall be selected by the carriers and three by the national labor organizations of the employees. (i) The disputes between an employee or group of employees and a carrier or carriers growing out of grievances or out of the interpretation or application of agreements concerning rates of pay, rules, or working conditions, including cases pending and unadjusted on June 21, 1934 (j) Parties may be heard either in person, by counsel, or by other representatives, as they may respectively elect, and the several divisions of the Adjustment Board shall give due notice of all hearings to the employee or employees and the carrier or carriers involved in any disputes submitted to them. (k) Any division of the Adjustment Board shall have authority to empower two or more of its members to conduct hearings and make findings upon disputes, when properly submitted, at any place designated by the division: Provided, however ( l (m) The awards of the several divisions of the Adjustment Board shall be stated in writing. A copy of the awards shall be furnished to the respective parties to the controversy, and the awards shall be final and binding upon both parties to the dispute. In case a dispute arises involving an interpretation of the award, the division of the board upon request of either party shall interpret the award in the light of the dispute. (n) A majority vote of all members of the division of the Adjustment Board eligible to vote shall be competent to make an award with respect to any dispute submitted to it. ( o (p) If a carrier does not comply with an order of a division of the Adjustment Board within the time limit in such order, the petitioner, or any person for whose benefit such order was made, may file in the District Court of the United States for the district in which he resides or in which is located the principal operating office of the carrier, or through which the carrier operates, a petition setting forth briefly the causes for which he claims relief, and the order of the division of the Adjustment Board in the premises. Such suit in the District Court of the United States shall proceed in all respects as other civil suits, except that on the trial of such suit the findings and order of the division of the Adjustment Board shall be conclusive on the parties, and except that the petitioner shall not be liable for costs in the district court nor for costs at any subsequent stage of the proceedings, unless they accrue upon his appeal, and such costs shall be paid out of the appropriation for the expenses of the courts of the United States. If the petitioner shall finally prevail he shall be allowed a reasonable attorneys fee, to be taxed and collected as a part of the costs of the suit. The district courts are empowered, under the rules of the court governing actions at law, to make such order and enter such judgment, by writ of mandamus or otherwise, as may be appropriate to enforce or set aside the order of the division of the Adjustment Board: Provided, however (q) If any employee or group of employees, or any carrier, is aggrieved by the failure of any division of the Adjustment Board to make an award in a dispute referred to it, or is aggrieved by any of the terms of an award or by the failure of the division to include certain terms in such award, then such employee or group of employees or carrier may file in any United States district court in which a petition under paragraph (p) could be filed, a petition for review of the divisions order. A copy of the petition shall be forthwith transmitted by the clerk of the court to the Adjustment Board. The Adjustment Board shall file in the court the record of the proceedings on which it based its action. The court shall have jurisdiction to affirm the order of the division, or to set it aside, in whole or in part, or it may remand the proceedings to the division for such further action as it may direct. On such review, the findings and order of the division shall be conclusive on the parties, except that the order of the division may be set aside, in whole or in part, or remanded to the division, for failure of the division to comply with the requirements of this chapter, for failure of the order to conform, or confine itself, to matters within the scope of the divisions jurisdiction, or for fraud or corruption by a member of the division making the order. The judgment of the court shall be subject to review as provided in sections 1291 and 1254 of title 28. (r) All actions at law based upon the provisions of this section shall be begun within two years from the time the cause of action accrues under the award of the division of the Adjustment Board, and not after. (s) The several divisions of the Adjustment Board shall maintain headquarters in Chicago, Illinois, meet regularly, and continue in session so long as there is pending before the division any matter within its jurisdiction which has been submitted for its consideration and which has not been disposed of. (t) Whenever practicable, the several divisions or subdivisions of the Adjustment Board shall be supplied with suitable quarters in any Federal building located at its place of meeting. (u) The Adjustment Board may, subject to the approval of the Mediation Board, employ and fix the compensations of such assistants as it deems necessary in carrying on its proceedings. The compensation of such employees shall be paid by the Mediation Board. (v) The Adjustment Board shall meet within forty days after June 21, 1934 Provided, however (w) Each division of the Adjustment Board shall annually prepare and submit a report of its activities to the Mediation Board, and the substance of such report shall be included in the annual report of the Mediation Board to the Congress of the United States. The reports of each division of the Adjustment Board and the annual report of the Mediation Board shall state in detail all cases heard, all actions taken, the names, salaries, and duties of all agencies, employees, and officers receiving compensation from the United States under the authority of this chapter, and an account of all moneys appropriated by Congress pursuant to the authority conferred by this chapter and disbursed by such agencies, employees, and officers. (x) Any division of the Adjustment Board shall have authority, in its discretion, to establish regional adjustment boards to act in its place and stead for such limited period as such division may determine to be necessary. Carrier members of such regional boards shall be designated in keeping with rules devised for this purpose by the carrier members of the Adjustment Board and the labor members shall be designated in keeping with rules devised for this purpose by the labor members of the Adjustment Board. Any such regional board shall, during the time for which it is appointed, have the same authority to conduct hearings, make findings upon disputes and adopt the same procedure as the division of the Adjustment Board appointing it, and its decisions shall be enforceable to the same extent and under the same processes. A neutral person, as referee, shall be appointed for service in connection with any such regional adjustment board in the same circumstances and manner as provided in paragraph ( l Second. System, group, or regional boards: establishment by voluntary agreement; special adjustment boards: establishment, composition, designation of representatives by Mediation Board, neutral member, compensation, quorum, finality and enforcement of awards Nothing in this section shall be construed to prevent any individual carrier, system, or group of carriers and any class or classes of its or their employees, all acting through their representatives, selected in accordance with the provisions of this chapter, from mutually agreeing to the establishment of system, group, or regional boards of adjustment for the purpose of adjusting and deciding disputes of the character specified in this section. In the event that either party to such a system, group, or regional board of adjustment is dissatisfied with such arrangement, it may upon ninety days notice to the other party elect to come under the jurisdiction of the Adjustment Board. If written request is made upon any individual carrier by the representative of any craft or class of employees of such carrier for the establishment of a special board of adjustment to resolve disputes otherwise referable to the Adjustment Board, or any dispute which has been pending before the Adjustment Board for twelve months from the date the dispute (claim) is received by the Board, or if any carrier makes such a request upon any such representative, the carrier or the representative upon whom such request is made shall join in an agreement establishing such a board within thirty days from the date such request is made. The cases which may be considered by such board shall be defined in the agreement establishing it. Such board shall consist of one person designated by the carrier and one person designated by the representative of the employees. If such carrier or such representative fails to agree upon the establishment of such a board as provided herein, or to exercise its rights to designate a member of the board, the carrier or representative making the request for the establishment of the special board may request the Mediation Board to designate a member of the special board on behalf of the carrier or representative upon whom such request was made. Upon receipt of a request for such designation the Mediation Board shall promptly make such designation and shall select an individual associated in interest with the carrier or representative he is to represent, who, with the member appointed by the carrier or representative requesting the establishment of the special board, shall constitute the board. Each member of the board shall be compensated by the party he is to represent. The members of the board so designated shall determine all matters not previously agreed upon by the carrier and the representative of the employees with respect to the establishment and jurisdiction of the board. If they are unable to agree such matters shall be determined by a neutral member of the board selected or appointed and compensated in the same manner as is hereinafter provided with respect to situations where the members of the board are unable to agree upon an award. Such neutral member shall cease to be a member of the board when he has determined such matters. If with respect to any dispute or group of disputes the members of the board designated by the carrier and the representative are unable to agree upon an award disposing of the dispute or group of disputes they shall by mutual agreement select a neutral person to be a member of the board for the consideration and disposition of such dispute or group of disputes. In the event the members of the board designated by the parties are unable, within ten days after their failure to agree upon an award, to agree upon the selection of such neutral person, either member of the board may request the Mediation Board to appoint such neutral person and upon receipt of such request the Mediation Board shall promptly make such appointment. The neutral person so selected or appointed shall be compensated and reimbursed for expenses by the Mediation Board. Any two members of the board shall be competent to render an award. Such awards shall be final and binding upon both parties to the dispute and if in favor of the petitioner, shall direct the other party to comply therewith on or before the day named. Compliance with such awards shall be enforcible by proceedings in the United States district courts in the same manner and subject to the same provisions that apply to proceedings for enforcement of compliance with awards of the Adjustment Board. ( May 20, 1926, ch. 347,  3 44 Stat. 578 June 21, 1934, ch. 691,  3 48 Stat. 1189 Pub. L. 89456 June 20, 1966 80 Stat. 208 Pub. L. 91234 Apr. 23, 1970 84 Stat. 199  Editorial Notes Amendments 1970Par. First, (a). Pub. L. 91234,  1 Par. First, (b). Pub. L. 91234,  2 Par. First, (c). Pub. L. 91234,  3 Par. First, (h). Pub. L. 91234,  4 Par. First, (k). Pub. L. 91234,  5 Par. First, (n). Pub. L. 91234,  6 1966Par. First, (m). Pub. L. 89456,  2(a) Par. First, ( o Pub. L. 89456,  2(b) Par. First, (p). Pub. L. 89456,  2(c) Par. First, (q) to (x). Pub. L. 89456,  2(e) Par. Second. Pub. L. 89456,  1 1934Act June 21, 1934  154. National Mediation Board  First. Board of Mediation abolished; National Mediation Board established; composition; term of office; qualifications; salaries; removal The Board of Mediation is abolished, effective thirty days from June 21, 1934 June 21, 1934 January 1, 1965 All cases referred to the Board of Mediation and unsettled on June 21, 1934 A member of the Board may be removed by the President for inefficiency, neglect of duty, malfeasance in office, or ineligibility, but for no other cause. Second. Chairman; principal office; delegation of powers; oaths; seal; report The Mediation Board shall annually designate a member to act as chairman. The Board shall maintain its principal office in the District of Columbia, but it may meet at any other place whenever it deems it necessary so to do. The Board may designate one or more of its members to exercise the functions of the Board in mediation proceedings. Each member of the Board shall have power to administer oaths and affirmations. The Board shall have a seal which shall be judicially noticed. The Board shall make an annual report to Congress. Third. Appointment of experts and other employees; salaries of employees; expenditures The Mediation Board may (1) subject to the provisions of the civil service laws, appoint such experts and assistants to act in a confidential capacity and such other officers and employees as are essential to the effective transaction of the work of the Board; (2) in accordance with chapter 51 and subchapter III of chapter 53 of title 5, fix the salaries of such experts, assistants, officers, and employees; and (3) make such expenditures (including expenditures for rent and personal services at the seat of government and elsewhere, for law books, periodicals, and books of reference, and for printing and binding, and including expenditures for salaries and compensation, necessary traveling expenses and expenses actually incurred for subsistence, and other necessary expenses of the Mediation Board, Adjustment Board, Regional Adjustment Boards established under paragraph (w) of section 153 of this title Fourth. Delegation of powers and duties The Mediation Board is authorized by its order to assign, or refer, any portion of its work, business, or functions arising under this chapter or any other Act of Congress, or referred to it by Congress or either branch thereof, to an individual member of the Board or to an employee or employees of the Board to be designated by such order for action thereon, and by its order at any time to amend, modify, supplement, or rescind any such assignment or reference. All such orders shall take effect forthwith and remain in effect until otherwise ordered by the Board. In conformity with and subject to the order or orders of the Mediation Board in the premises, [and] such individual member of the Board or employee designated shall have power and authority to act as to any of said work, business, or functions so assigned or referred to him for action by the Board. Fifth. Transfer of officers and employees of Board of Mediation; transfer of appropriation All officers and employees of the Board of Mediation (except the members thereof, whose offices are abolished) whose services in the judgment of the Mediation Board are necessary to the efficient operation of the Board are transferred to the Board, without change in classification or compensation; except that the Board may provide for the adjustment of such classification or compensation to conform to the duties to which such officers and employees may be assigned. All unexpended appropriations for the operation of the Board of Mediation that are available at the time of the abolition of the Board of Mediation shall be transferred to the Mediation Board and shall be available for its use for salaries and other authorized expenditures. ( May 20, 1926, ch. 347,  4 44 Stat. 579 June 21, 1934, ch. 691,  4 48 Stat. 1193 Oct. 28, 1949, ch. 782 63 Stat. 972 Pub. L. 88542 Aug. 31, 1964 78 Stat. 748  Editorial Notes Codification In par. First, provisions that prescribed the basis compensation of members of the Board were omitted to conform to the provisions of the Executive Schedule. See sections 5314 and 5315 of Title 5, Government Organization and Employees. In par. Third, subject to the provisions of the civil service laws, appoint such experts and assistants to act in a confidential capacity and such other officers and employees substituted for appoint such experts and assistants to act in a confidential capacity and, subject to the provisions of the civil-service laws, such other officers and employees. All such appointments are now subject to the civil service laws unless specifically excepted by such laws or by laws enacted subsequent to Executive Order 8743, Apr. 23, 1941 Act of Nov. 26, 1940, ch. 919, title I,  1 54 Stat. 1211 section 3301 of Title 5 In par. Third, chapter 51 and subchapter III of chapter 53 of title 5 substituted for the Classification Act of 1949, as amended on authority of Pub. L. 89554,  7(b) Sept. 6, 1966 80 Stat. 631 Amendments 1964Par. First. Pub. L. 88542 Jan. 1, 1965 1949Par. First. Act Oct. 15, 1949 Par. Third. Act Oct. 28, 1949 1934Act June 21, 1934 Statutory Notes and Related Subsidiaries Repeals Act Oct. 28, 1949, ch. 782 Pub. L. 89554 Sept. 6, 1966 80 Stat. 632 Termination of Reporting Requirements For termination, effective May 15, 2000 section 3003 of Pub. L. 10466 section 1113 of Title 31  155. Functions of Mediation Board  First. Disputes within jurisdiction of Mediation Board The parties, or either party, to a dispute between an employee or group of employees and a carrier may invoke the services of the Mediation Board in any of the following cases: (a) A dispute concerning changes in rates of pay, rules, or working conditions not adjusted by the parties in conference. (b) Any other dispute not referable to the National Railroad Adjustment Board and not adjusted in conference between the parties or where conferences are refused. The Mediation Board may proffer its services in case any labor emergency is found by it to exist at any time. In either event the said Board shall promptly put itself in communication with the parties to such controversy, and shall use its best efforts, by mediation, to bring them to agreement. If such efforts to bring about an amicable settlement through mediation shall be unsuccessful, the said Board shall at once endeavor as its final required action (except as provided in paragraph third of this section and in section 160 of this title If arbitration at the request of the Board shall be refused by one or both parties, the Board shall at once notify both parties in writing that its mediatory efforts have failed and for thirty days thereafter, unless in the intervening period the parties agree to arbitration, or an emergency board shall be created under section 160 of this title Second. Interpretation of agreement In any case in which a controversy arises over the meaning or the application of any agreement reached through mediation under the provisions of this chapter, either party to the said agreement, or both, may apply to the Mediation Board for an interpretation of the meaning or application of such agreement. The said Board shall upon receipt of such request notify the parties to the controversy, and after a hearing of both sides give its interpretation within thirty days. Third. Duties of Board with respect to arbitration of disputes; arbitrators; acknowledgment of agreement; notice to arbitrators; reconvening of arbitrators; filing contracts with Board; custody of records and documents The Mediation Board shall have the following duties with respect to the arbitration of disputes under section 157 of this title (a) On failure of the arbitrators named by the parties to agree on the remaining arbitrator or arbitrators within the time set by section 157 of this title If an arbitrator named by the Mediation Board, in accordance with the provisions of this chapter, shall be removed by such Board as provided by this chapter, or if such an arbitrator refuses or is unable to serve, it shall be the duty of the Mediation Board, promptly, to select another arbitrator, in the same manner as provided in this chapter for an original appointment by the Mediation Board. (b) Any member of the Mediation Board is authorized to take the acknowledgement of an agreement to arbitrate under this chapter. When so acknowledged, or when acknowledged by the parties before a notary public or the clerk of a district court or a court of appeals of the United States, such agreement to arbitrate shall be delivered to a member of said Board or transmitted to said Board, to be filed in its office. (c) When an agreement to arbitrate has been filed with the Mediation Board, or with one of its members, as provided by this section, and when the said Board has been furnished the names of the arbitrators chosen by the parties to the controversy it shall be the duty of the Board to cause a notice in writing to be served upon said arbitrators, notifying them of their appointment, requesting them to meet promptly to name the remaining arbitrator or arbitrators necessary to complete the Board of Arbitration, and advising them of the period within which, as provided by the agreement to arbitrate, they are empowered to name such arbitrator or arbitrators. (d) Either party to an arbitration desiring the reconvening of a board of arbitration to pass upon any controversy arising over the meaning or application of an award may so notify the Mediation Board in writing, stating in such notice the question or questions to be submitted to such reconvened Board. The Mediation Board shall thereupon promptly communicate with the members of the Board of Arbitration, or a subcommittee of such Board appointed for such purpose pursuant to a provision in the agreement to arbitrate, and arrange for the reconvening of said Board of Arbitration or subcommittee, and shall notify the respective parties to the controversy of the time and place at which the Board, or the subcommittee, will meet for hearings upon the matters in controversy to be submitted to it. No evidence other than that contained in the record filed with the original award shall be received or considered by such reconvened Board or subcommittee, except such evidence as may be necessary to illustrate the interpretations suggested by the parties. If any member of the original Board is unable or unwilling to serve on such reconvened Board or subcommittee thereof, another arbitrator shall be named in the same manner and with the same powers and duties as such original arbitrator. (e) Within sixty days after June 21, 1934 (f) The Mediation Board shall be the custodian of all papers and documents heretofore filed with or transferred to the Board of Mediation bearing upon the settlement, adjustment, or determination of disputes between carriers and their employees or upon mediation or arbitration proceedings held under or pursuant to the provisions of any Act of Congress in respect thereto; and the President is authorized to designate a custodian of the records and property of the Board of Mediation until the transfer and delivery of such records to the Mediation Board and to require the transfer and delivery to the Mediation Board of any and all such papers and documents filed with it or in its possession. ( May 20, 1926, ch. 347,  5 44 Stat. 580 June 21, 1934, ch. 691,  5 48 Stat. 1195 June 25, 1948, ch. 646,  32(a) 62 Stat. 991 May 24, 1949, ch. 139,  127 63 Stat. 107  Editorial Notes Codification As originally enacted, par. Third (b) contained a reference to the circuit court of appeals. Act June 25, 1948 May 24, 1949 Amendments 1934Act June 21, 1934  156. Procedure in changing rates of pay, rules, and working conditions  Carriers and representatives of the employees shall give at least thirty days written notice of an intended change in agreements affecting rates of pay, rules, or working conditions, and the time and place for the beginning of conference between the representatives of the parties interested in such intended changes shall be agreed upon within ten days after the receipt of said notice, and said time shall be within the thirty days provided in the notice. In every case where such notice of intended change has been given, or conferences are being held with reference thereto, or the services of the Mediation Board have been requested by either party, or said Board has proffered its services, rates of pay, rules, or working conditions shall not be altered by the carrier until the controversy has been finally acted upon, as required by section 155 of this title ( May 20, 1926, ch. 347,  6 44 Stat. 582 June 21, 1934, ch. 691,  6 48 Stat. 1197  Editorial Notes Amendments 1934Act June 21, 1934 Executive Documents Wage and Salary Adjustments Ex. Ord. No. 9299, eff. Feb. 4, 1943  157. Arbitration  First. Submission of controversy to arbitration Whenever a controversy shall arise between a carrier or carriers and its or their employees which is not settled either in conference between representatives of the parties or by the appropriate adjustment board or through mediation, in the manner provided in sections 151156 of this title such controversy may, by agreement of the parties to such controversy, be submitted to the arbitration of a board of three (or, if the parties to the controversy so stipulate, of six) persons: Provided, however Second. Manner of selecting board of arbitration Such board of arbitration shall be chosen in the following manner: (a) In the case of a board of three the carrier or carriers and the representatives of the employees, parties respectively to the agreement to arbitrate, shall each name one arbitrator; the two arbitrators thus chosen shall select a third arbitrator. If the arbitrators chosen by the parties shall fail to name the third arbitrator within five days after their first meeting, such third arbitrator shall be named by the Mediation Board. (b) In the case of a board of six the carrier or carriers and the representatives of the employees, parties respectively to the agreement to arbitrate, shall each name two arbitrators; the four arbitrators thus chosen shall, by a majority vote, select the remaining two arbitrators. If the arbitrators chosen by the parties shall fail to name the two arbitrators within fifteen days after their first meeting, the said two arbitrators, or as many of them as have not been named, shall be named by the Mediation Board. Third. Board of arbitration; organization; compensation; procedure (a) Notice of selection or failure to select arbitrators When the arbitrators selected by the respective parties have agreed upon the remaining arbitrator or arbitrators, they shall notify the Mediation Board; and, in the event of their failure to agree upon any or upon all of the necessary arbitrators within the period fixed by this chapter, they shall, at the expiration of such period, notify the Mediation Board of the arbitrators selected, if any, or of their failure to make or to complete such selection. (b) Organization of board; procedure The board of arbitration shall organize and select its own chairman and make all necessary rules for conducting its hearings: Provided, however (c) Duty to reconvene; questions considered Upon notice from the Mediation Board that the parties, or either party, to an arbitration desire the reconvening of the board of arbitration (or a subcommittee of such board of arbitration appointed for such purpose pursuant to the agreement to arbitrate) to pass upon any controversy over the meaning or application of their award, the board, or its subcommittee, shall at once reconvene. No question other than, or in addition to, the questions relating to the meaning or application of the award, submitted by the party or parties in writing, shall be considered by the reconvened board of arbitration or its subcommittee. Such rulings shall be acknowledged by such board or subcommittee thereof in the same manner, and filed in the same district court clerks office, as the original award and become a part thereof. (d) Competency of arbitrators No arbitrator, except those chosen by the Mediation Board, shall be incompetent to act as an arbitrator because of his interest in the controversy to be arbitrated, or because of his connection with or partiality to either of the parties to the arbitration. (e) Compensation and expenses Each member of any board of arbitration created under the provisions of this chapter named by either party to the arbitration shall be compensated by the party naming him. Each arbitrator selected by the arbitrators or named by the Mediation Board shall receive from the Mediation Board such compensation as the Mediation Board may fix, together with his necessary traveling expenses and expenses actually incurred for subsistence, while serving as an arbitrator. (f) Award; disposition of original and copies The board of arbitration shall furnish a certified copy of its award to the respective parties to the controversy, and shall transmit the original, together with the papers and proceedings and a transcript of the evidence taken at the hearings, certified under the hands of at least a majority of the arbitrators, to the clerk of the district court of the United States for the district wherein the controversy arose or the arbitration is entered into, to be filed in said clerks office as hereinafter provided. The said board shall also furnish a certified copy of its award, and the papers and proceedings, including testimony relating thereto, to the Mediation Board to be filed in its office; and in addition a certified copy of its award shall be filed in the office of the Interstate Commerce Commission: Provided, however (g) Compensation of assistants to board of arbitration; expenses; quarters A board of arbitration may, subject to the approval of the Mediation Board, employ and fix the compensation of such assistants as it deems necessary in carrying on the arbitration proceedings. The compensation of such employees, together with their necessary traveling expenses and expenses actually incurred for subsistence, while so employed, and the necessary expenses of boards of arbitration, shall be paid by the Mediation Board. Whenever practicable, the board shall be supplied with suitable quarters in any Federal building located at its place of meeting or at any place where the board may conduct its proceedings or deliberations. (h) Testimony before board; oaths; attendance of witnesses; production of documents; subpoenas; fees All testimony before said board shall be given under oath or affirmation, and any member of the board shall have the power to administer oaths or affirmations. The board of arbitration, or any member thereof, shall have the power to require the attendance of witnesses and the production of such books, papers, contracts, agreements, and documents as may be deemed by the board of arbitration material to a just determination of the matters submitted to its arbitration, and may for that purpose request the clerk of the district court of the United States for the district wherein said arbitration is being conducted to issue the necessary subpoenas, and upon such request the said clerk or his duly authorized deputy shall be, and he is, authorized, and it shall be his duty, to issue such subpoenas. Any witness appearing before a board of arbitration shall receive the same fees and mileage as witnesses in courts of the United States, to be paid by the party securing the subpoena. ( May 20, 1926, ch. 347,  7 44 Stat. 582 June 21, 1934, ch. 691,  7 48 Stat. 1197 Pub. L. 91452, title II,  238 Oct. 15, 1970 84 Stat. 930  Editorial Notes Codification In par. Third (f), subtitle IV of title 49 substituted for the Interstate Commerce Act, as amended [ 49 U.S.C. 1 Pub. L. 95473,  3(b) Oct. 17, 1978 92 Stat. 1466 Amendments 1970Par. Third, (h). Pub. L. 91452 1934Act June 21, 1934 Statutory Notes and Related Subsidiaries Effective Date of 1970 Amendment Amendment by Pub. L. 91452 Oct. 15, 1970 Oct. 15, 1970 section 260 of Pub. L. 91452 section 6001 of Title 18  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49 Work Rules Dispute Pub. L. 88108 Aug. 28, 1963 77 Stat. 132  [Sec. 1. Settlement of disputes]. That no carrier which served the notices of November 2, 1959 September 7, 1960 Sec. 2. [Arbitration board]. There is hereby established an arbitration board to consist of seven members. The representatives of the carrier and organization parties to the aforesaid dispute are hereby directed, respectively, within five days after the enactment hereof [ Aug. 28, 1963 Aug. 28, 1963 Sec. 3. [Decision of board]. Promptly upon the completion of the naming of the arbitration board the Secretary of Labor shall furnish to the board and to the parties to the dispute copies of his statement to the parties of August 2, 1963 November 2, 1959 September 7, 1960 Sec. 4. [Award]. To the extent not inconsistent with this joint resolution the arbitration shall be conducted pursuant to sections 7 and 8 of the Railway Labor Act [this section and section 158 of this title section 159 of this title Sec. 5. [Hearings]. The arbitration board shall begin its hearings thirty days after the enactment of this joint resolution [ Aug. 28, 1963 Aug. 28, 1963 Provided, however Sec. 6. [Collective bargaining for issues not arbitrated]. The parties to the disputes arising from the aforesaid notices shall immediately resume collective bargaining with respect to all issues raised in the notices of November 2, 1959 September 7, 1960 Sec. 7. [Considerations affecting award; enforcement.] (a) In making any award under this joint resolution the arbitration board established under section 2 shall give due consideration to the effect of the proposed award upon adequate and safe transportation service to the public and upon the interests of the carrier and employees affected, giving due consideration to the narrowing of the areas of disagreement which has been accomplished in bargaining and mediation. (b) The obligations imposed by this joint resolution, upon suit by the Attorney General, shall be enforcible through such orders as may be necessary by any court of the United States having jurisdiction of any of the parties. Sec. 8. [Expiration date]. This joint resolution shall expire one hundred and eighty days after the date of its enactment [ Aug. 28, 1963 Sec. 9. [Separability]. If any provision of this joint resolution or the application thereof is held invalid, the remainder of this joint resolution and the application of such provision to other parties or in other circumstances not held invalid shall not be affected thereby.  158. Agreement to arbitrate; form and contents; signatures and acknowledgment; revocation The agreement to arbitrate (a) Shall be in writing; (b) Shall stipulate that the arbitration is had under the provisions of this chapter; (c) Shall state whether the board of arbitration is to consist of three or of six members; (d) Shall be signed by the duly accredited representatives of the carrier or carriers and the employees, parties respectively to the agreement to arbitrate, and shall be acknowledged by said parties before a notary public, the clerk of a district court or court of appeals of the United States, or before a member of the Mediation Board, and, when so acknowledged, shall be filed in the office of the Mediation Board; (e) Shall state specifically the questions to be submitted to the said board for decision; and that, in its award or awards, the said board shall confine itself strictly to decisions as to the questions so specifically submitted to it; (f) Shall provide that the questions, or any one or more of them, submitted by the parties to the board of arbitration may be withdrawn from arbitration on notice to that effect signed by the duly accredited representatives of all the parties and served on the board of arbitration; (g) Shall stipulate that the signatures of a majority of said board of arbitration affixed to their award shall be competent to constitute a valid and binding award; (h) Shall fix a period from the date of the appointment of the arbitrator or arbitrators necessary to complete the board (as provided for in the agreement) within which the said board shall commence its hearings; (i) Shall fix a period from the beginning of the hearings within which the said board shall make and file its award: Provided (j) Shall provide for the date from which the award shall become effective and shall fix the period during which the award shall continue in force; (k) Shall provide that the award of the board of arbitration and the evidence of the proceedings before the board relating thereto, when certified under the hands of at least a majority of the arbitrators, shall be filed in the clerks office of the district court of the United States for the district wherein the controversy arose or the arbitration was entered into, which district shall be designated in the agreement; and, when so filed, such award and proceedings shall constitute the full and complete record of the arbitration; (l) Shall provide that the award, when so filed, shall be final and conclusive upon the parties as to the facts determined by said award and as to the merits of the controversy decided; (m) Shall provide that any difference arising as to the meaning, or the application of the provisions, of an award made by a board of arbitration shall be referred back for a ruling to the same board, or, by agreement, to a subcommittee of such board; and that such ruling, when acknowledged in the same manner, and filed in the same district court clerks office, as the original award, shall be a part of and shall have the same force and effect as such original award; and (n) Shall provide that the respective parties to the award will each faithfully execute the same. The said agreement to arbitrate, when properly signed and acknowledged as herein provided, shall not be revoked by a party to such agreement: Provided, however ( May 20, 1926, ch. 347,  8 44 Stat. 584 June 21, 1934, ch. 691,  7 48 Stat. 1197 June 25, 1948, ch. 646,  32(a) 62 Stat. 991 May 24, 1949, ch. 139,  127 63 Stat. 107  Editorial Notes Codification As originally enacted, par. (d) contained a reference to the circuit court of appeals. Act June 25, 1948 May 24, 1949 Amendments 1934Act June 21, 1934  159. Award and judgment thereon; effect of chapter on individual employee  First. Filing of award The award of a board of arbitration, having been acknowledged as herein provided, shall be filed in the clerks office of the district court designated in the agreement to arbitrate. Second. Conclusiveness of award; judgment An award acknowledged and filed as herein provided shall be conclusive on the parties as to the merits and facts of the controversy submitted to arbitration, and unless, within ten days after the filing of the award, a petition to impeach the award, on the grounds hereinafter set forth, shall be filed in the clerks office of the court in which the award has been filed, the court shall enter judgment on the award, which judgment shall be final and conclusive on the parties. Third. Impeachment of award; grounds Such petition for the impeachment or contesting of any award so filed shall be entertained by the court only on one or more of the following grounds: (a) That the award plainly does not conform to the substantive requirements laid down by this chapter for such awards, or that the proceedings were not substantially in conformity with this chapter; (b) That the award does not conform, nor confine itself, to the stipulations of the agreement to arbitrate; or (c) That a member of the board of arbitration rendering the award was guilty of fraud or corruption; or that a party to the arbitration practiced fraud or corruption which fraud or corruption affected the result of the arbitration: Provided, however Provided further Fourth. Effect of partial invalidity of award If the court shall determine that a part of the award is invalid on some ground or grounds designated in this section as a ground of invalidity, but shall determine that a part of the award is valid, the court shall set aside the entire award: Provided, however Fifth. Appeal; record At the expiration of 10 days from the decision of the district court upon the petition filed as aforesaid, final judgment shall be entered in accordance with said decision, unless during said 10 days either party shall appeal therefrom to the court of appeals. In such case only such portion of the record shall be transmitted to the appellate court as is necessary to the proper understanding and consideration of the questions of law presented by said petition and to be decided. Sixth. Finality of decision of court of appeals The determination of said court of appeals upon said questions shall be final, and, being certified by the clerk thereof to said district court, judgment pursuant thereto shall thereupon be entered by said district court. Seventh. Judgment where petitioners contentions are sustained If the petitioners contentions are finally sustained, judgment shall be entered setting aside the award in whole or, if the parties so agree, in part; but in such case the parties may agree upon a judgment to be entered disposing of the subject matter of the controversy, which judgment when entered shall have the same force and effect as judgment entered upon an award. Eighth. Duty of employee to render service without consent; right to quit Nothing in this chapter shall be construed to require an individual employee to render labor or service without his consent, nor shall anything in this chapter be construed to make the quitting of his labor or service by an individual employee an illegal act; nor shall any court issue any process to compel the performance by an individual employee of such labor or service, without his consent. ( May 20, 1926, ch. 347,  9 44 Stat. 585 June 25, 1948, ch. 646,  32(a) 62 Stat. 991 May 24, 1949, ch. 139,  127 63 Stat. 107  Editorial Notes Codification As originally enacted, pars. Fifth and Sixth contained references to the circuit court of appeals. Act June 25, 1948 May 24, 1949  159a. Special procedure for commuter service (a) Applicability of provisions Except as provided in section 590(h) 1 1 (b) Request for establishment of emergency board If a dispute between the parties described in subsection (a) is not adjusted under the foregoing provisions of this chapter and the President does not, under section 160 of this title (c) Establishment of emergency board (1) Upon the request of a party or a Governor under subsection (b), the President shall create an emergency board to investigate and report on the dispute in accordance with section 160 of this title (2) If the President, in his discretion, creates a board to investigate and report on a dispute between the parties described in subsection (a), the provisions of this section shall apply to the same extent as if such board had been created pursuant to paragraph (1) of this subsection. (d) Public hearing by National Mediation Board upon failure of emergency board to effectuate settlement of dispute Within 60 days after the creation of an emergency board under this section, if there has been no settlement between the parties, the National Mediation Board shall conduct a public hearing on the dispute at which each party shall appear and provide testimony setting forth the reasons it has not accepted the recommendations of the emergency board for settlement of the dispute. (e) Establishment of second emergency board If no settlement in the dispute is reached at the end of the 120-day period beginning on the date of the creation of the emergency board, any party to the dispute or the Governor of any State through which the service that is the subject of the dispute is operated may request the President to establish another emergency board, in which case the President shall establish such emergency board. (f) Submission of final offers to second emergency board by parties Within 30 days after creation of a board under subsection (e), the parties to the dispute shall submit to the board final offers for settlement of the dispute. (g) Report of second emergency board Within 30 days after the submission of final offers under subsection (f), the emergency board shall submit a report to the President setting forth its selection of the most reasonable offer. (h) Maintenance of status quo during dispute period From the time a request to establish a board is made under subsection (e) until 60 days after such board makes its report under subsection (g), no change, except by agreement, shall be made by the parties in the conditions out of which the dispute arose. (i) Work stoppages by employees subsequent to carrier offer selected; eligibility of employees for benefits If the emergency board selects the final offer submitted by the carrier and, after the expiration of the 60-day period described in subsection (h), the employees of such carrier engage in any work stoppage arising out of the dispute, such employees shall not be eligible during the period of such work stoppage for benefits under the Railroad Unemployment Insurance Act [ 45 U.S.C. 351 (j) Work stoppages by employees subsequent to employees offer selected; eligibility of employer for benefits If the emergency board selects the final offer submitted by the employees and, after the expiration of the 60-day period described in subsection (h), the carrier refuses to accept the final offer submitted by the employees and the employees of such carrier engage in any work stoppage arising out of the dispute, the carrier shall not participate in any benefits of any agreement between carriers which is designed to provide benefits to such carriers during a work stoppage. ( May 20, 1926, ch. 347,  9A Pub. L. 9735, title XI,  1157 Aug. 13, 1981 95 Stat. 681  Editorial Notes  References in Text Section 590(h) of this title Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379 The Railroad Unemployment Insurance Act, referred to in subsec. (i), is act June 25, 1938, ch. 680 52 Stat. 1094 section 367 of this title Statutory Notes and Related Subsidiaries Effective Date Section effective Aug. 13, 1981 section 1169 of Pub. L. 9735 section 1101 of this title  160. Emergency board  If a dispute between a carrier and its employees be not adjusted under the foregoing provisions of this chapter and should, in the judgment of the Mediation Board, threaten substantially to interrupt interstate commerce to a degree such as to deprive any section of the country of essential transportation service, the Mediation Board shall notify the President, who may thereupon, in his discretion, create a board to investigate and report respecting such dispute. Such board shall be composed of such number of persons as to the President may seem desirable: Provided, however There is authorized to be appropriated such sums as may be necessary for the expenses of such board, including the compensation and the necessary traveling expenses and expenses actually incurred for subsistence, of the members of the board. All expenditures of the board shall be allowed and paid on the presentation of itemized vouchers therefor approved by the chairman. After the creation of such board and for thirty days after such board has made its report to the President, no change, except by agreement, shall be made by the parties to the controversy in the conditions out of which the dispute arose. ( May 20, 1926, ch. 347,  10 44 Stat. 586 June 21, 1934, ch. 691,  7 48 Stat. 1197  Editorial Notes Amendments 1934Act June 21, 1934  160a. Rules and regulations (a) In general The Mediation Board shall have the authority from time to time to make, amend, and rescind, in the manner prescribed by section 553 of title 5 (b) Application The requirements of subsection (a) shall not apply to any rule or proposed rule to which the third sentence of section 553(b) of title 5 ( May 20, 1926, ch. 347,  10A Pub. L. 11295, title X,  1001 Feb. 14, 2012 126 Stat. 146  161. Effect of partial invalidity of chapter  If any provision of this chapter, or the application thereof to any person or circumstance, is held invalid, the remainder of the chapter, and the application of such provision to other persons or circumstances, shall not be affected thereby. ( May 20, 1926, ch. 347,  11 44 Stat. 587  Statutory Notes and Related Subsidiaries Separability; Repeal of Inconsistent Provisions Act June 21, 1934, ch. 691,  8 48 Stat. 1197 If any section, subsection, sentence, clause, or phrase of this Act [amending sections 151 to 158, 160, and 162 of this title] is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portions of this Act. All Acts or parts of Acts inconsistent with the provisions of this Act are hereby repealed.  162. Authorization of appropriations  There is authorized to be appropriated such sums as may be necessary for expenditure by the Mediation Board in carrying out the provisions of this chapter. ( May 20, 1926, ch. 347,  12 44 Stat. 587 June 21, 1934, ch. 691,  7 48 Stat. 1197  Editorial Notes Amendments 1934Act June 21, 1934  163. Repeal of prior legislation; exception  Chapters 6 and 7 of this title, providing for mediation, conciliation, and arbitration, and all Acts and parts of Acts in conflict with the provisions of this chapter are repealed, except that the members, secretary, officers, employees, and agents of the Railroad Labor Board, in office on May 20, 1926 ( May 20, 1926, ch. 347,  14 44 Stat. 587  Editorial Notes  References in Text Chapters 6 and 7 of this title, referred to in text, were in the original references to the act of July 15, 1913  164. Repealed. Oct. 10, 1940, ch. 851,  4 54 Stat. 1111   Section, act Feb. 11, 1927, ch. 104,  1 44 Stat. 1072  165. Evaluation and audit of Mediation Board (a) Evaluation and audit of Mediation Board (1) In general In order to promote economy, efficiency, and effectiveness in the administration of the programs, operations, and activities of the Mediation Board, the Comptroller General of the United States shall evaluate and audit the programs and expenditures of the Mediation Board. Such an evaluation and audit shall be conducted not less frequently than every 2 years, but may be conducted as determined necessary by the Comptroller General or the appropriate congressional committees. (2) Responsibility of Comptroller General In carrying out the evaluation and audit required under paragraph (1), the Comptroller General shall evaluate and audit the programs, operations, and activities of the Mediation Board, including, at a minimum (A) information management and security, including privacy protection of personally identifiable information; (B) resource management; (C) workforce development; (D) procurement and contracting planning, practices, and policies; (E) the extent to which the Mediation Board follows leading practices in selected management areas; and (F) the processes the Mediation Board follows to address challenges in (i) initial investigations of applications requesting that an organization or individual be certified as the representative of any craft or class of employees; (ii) determining and certifying representatives of employees; and (iii) ensuring that the process occurs without interference, influence, or coercion. (b) Immediate review of certification procedures Not later than 180 days after February 14, 2012 (1) an evaluation of the existing processes and changes to such processes that have occurred since the establishment of the Mediation Board and whether those changes are consistent with congressional intent; and (2) a description of the extent to which such processes are consistent with similar processes applied to other Federal or State agencies with jurisdiction over labor relations, and an evaluation of any justifications for any discrepancies between the processes of the Mediation Board and such similar Federal or State processes. (c) Appropriate congressional committee defined In this section, the term appropriate congressional committees means the Committee on Transportation and Infrastructure of the House of Representatives, the Committee on Commerce, Science, and Transportation of the Senate, and the Committee on Health, Education, Labor, and Pensions of the Senate. ( May 20, 1926, ch. 347,  15 Pub. L. 11295, title X,  1004 Feb. 14, 2012 126 Stat. 147 SUBCHAPTER II CARRIERS BY AIR  181. Application of subchapter I to carriers by air  All of the provisions of subchapter I of this chapter except section 153 of this title ( May 20, 1926, ch. 347,  201 Apr. 10, 1936, ch. 166 49 Stat. 1189  182. Duties, penalties, benefits, and privileges of subchapter I applicable  The duties, requirements, penalties, benefits, and privileges prescribed and established by the provisions of subchapter I of this chapter except section 153 of this title section 151 of this title ( May 20, 1926, ch. 347,  202 Apr. 10, 1936, ch. 166 49 Stat. 1189  183. Disputes within jurisdiction of Mediation Board The parties or either party to a dispute between an employee or a group of employees and a carrier or carriers by air may invoke the services of the National Mediation Board and the jurisdiction of said Mediation Board is extended to any of the following cases: (a) A dispute concerning changes in rates of pay, rules, or working conditions not adjusted by the parties in conference. (b) Any other dispute not referable to an adjustment board, as hereinafter provided, and not adjusted in conference between the parties, or where conferences are refused. The National Mediation Board may proffer its services in case any labor emergency is found by it to exist at any time. The services of the Mediation Board may be invoked in a case under this subchapter in the same manner and to the same extent as are the disputes covered by section 155 of this title ( May 20, 1926, ch. 347,  203 Apr. 10, 1936, ch. 166 49 Stat. 1189  184. System, group, or regional boards of adjustment  The disputes between an employee or group of employees and a carrier or carriers by air growing out of grievances, or out of the interpretation or application of agreements concerning rates of pay, rules, or working conditions, including cases pending and unadjusted on April 10, 1936 It shall be the duty of every carrier and of its employees, acting through their representatives, selected in accordance with the provisions of this subchapter, to establish a board of adjustment of jurisdiction not exceeding the jurisdiction which may be lawfully exercised by system, group, or regional boards of adjustment, under the authority of section 153 of this title Such boards of adjustment may be established by agreement between employees and carriers either on any individual carrier, or system, or group of carriers by air and any class or classes of its or their employees; or pending the establishment of a permanent National Board of Adjustment as hereinafter provided. Nothing in this chapter shall prevent said carriers by air, or any class or classes of their employees, both acting through their representatives selected in accordance with provisions of this subchapter, from mutually agreeing to the establishment of a National Board of Adjustment of temporary duration and of similarly limited jurisdiction. ( May 20, 1926, ch. 347,  204 Apr. 10, 1936, ch. 166 49 Stat. 1189  185. National Air Transport Adjustment Board  When, in the judgment of the National Mediation Board, it shall be necessary to have a permanent national board of adjustment in order to provide for the prompt and orderly settlement of disputes between said carriers by air, or any of them, and its or their employees, growing out of grievances or out of the interpretation or application of agreements between said carriers by air or any of them, and any class or classes of its or their employees, covering rates of pay, rules, or working conditions, the National Mediation Board is empowered and directed, by its order duly made, published, and served, to direct the said carriers by air and such labor organizations of their employees, national in scope, as have been or may be recognized in accordance with the provisions of this chapter, to select and designate four representatives who shall constitute a board which shall be known as the National Air Transport Adjustment Board. Two members of said National Air Transport Adjustment Board shall be selected by said carriers by air and two members by the said labor organizations of the employees, within thirty days after the date of the order of the National Mediation Board, in the manner and by the procedure prescribed by section 153 of this title section 153 of this title section 153 of this title section 153 of this title ( May 20, 1926, ch. 347,  205 Apr. 10, 1936, ch. 166 49 Stat. 1190  186. Omitted  Editorial Notes Codification Section, act May 20, 1926, ch. 347,  206 Apr. 10, 1936, ch. 166 49 Stat. 1191  187. Separability  If any provision of this subchapter or application thereof to any person or circumstance is held invalid, the remainder of such sections and the application of such provision to other persons or circumstances shall not be affected thereby. ( May 20, 1926, ch. 347,  207 Apr. 10, 1936, ch. 166 49 Stat. 1191  188. Authorization of appropriations  There is authorized to be appropriated such sums as may be necessary for expenditure by the Mediation Board in carrying out the provisions of this chapter. ( May 20, 1926, ch. 347,  208 Apr. 10, 1936, ch. 166 49 Stat. 1191 CHAPTER 9 RETIREMENT OF RAILROAD EMPLOYEES    SUBCHAPTER IRAILROAD RETIREMENT ACT OF 1934  Sec.  201 214. Omitted or Repealed.  SUBCHAPTER IIRAILROAD RETIREMENT ACT OF 1935  215 228. Omitted.  SUBCHAPTER IIIRAILROAD RETIREMENT ACT OF 1937  228a 228z1. Omitted or Repealed.  SUBCHAPTER IVRAILROAD RETIREMENT ACT OF 1974  231. Definitions.  231a. Annuity eligibility requirements.  231b. Computation of annuities.  231c. Computation of spouse and survivor annuities.  231d. Annuity beginning and ending dates.  231e. Lump sum payments.  231f. Railroad Retirement Board.  231f1. Annual actuarial report.  231g. Court jurisdiction.  231h. Returns of compensation; conclusiveness.  231i. Erroneous payments.  231j. Waiver of annuities.  231k. Incompetence.  231l. Penalties.  231m. Assignability; exemption from levy.  231n. Railroad Retirement Account.  231n1. Social Security Equivalent Benefit Account.  231o. Private pensions.  231p. Free transportation.  231q. Crediting service under Social Security Act.  231r. Automatic benefit eligibility requirement adjustments.  231s. Separability.  231t. Short title.  231u. Benefit preservation.  231v. Computation and certification of account benefit ratios. SUBCHAPTER I RAILROAD RETIREMENT ACT OF 1934  201 to 208. Omitted  Editorial Notes Codification Sections 201 to 208, sections 1 to 8, respectively, of act June 27, 1934, ch. 868,  1 48 Stat. 12831286 Railroad Retirement Board v. Alton R. Co Section 201 defined terms for purposes of this subchapter. Section 202 stated purposes of this subchapter and required a special report to be sent from the Railroad Retirement Board to the President. Section 203 related to annuities paid under this subchapter. Section 204 related to compulsory retirement. Section 205 related to employee contributions. Section 206 related to existing pension systems. Section 207 related to employee representatives. Section 208 related to retirement fund established under this subchapter. Provisions relating to refund of sums paid by railroads and other carriers of the United States under this subchapter were contained in act June 1, 1938, ch. 315 52 Stat. 608  209. Repealed. Pub. L. 89554,  8(a) Sept. 6, 1966 80 Stat. 649   Section, act June 27, 1934, ch. 868,  9 48 Stat. 1287  210 to 214. Omitted  Editorial Notes Codification Sections 210 to 214, sections 10 to 14, respectively, of act June 27, 1934, ch. 868,  10 48 Stat. 1288 section 201 of this title Section 210 related to jurisdiction of certain courts. Section 211 related to exemption of annuities or death payments from legal process. Section 212 related to penalties for missed payments by carriers and has been omitted from the Code as unconstitutional. Section 213 related to certain other penalties. Section 214 related to separability of provisions. SUBCHAPTER II RAILROAD RETIREMENT ACT OF 1935  Editorial Notes Codification This subchapter was comprised of act Aug. 29, 1935, ch. 812 49 Stat. 967 act June 24, 1937, ch. 382 50 Stat. 307 act June 11, 1940, ch. 307,  2 54 Stat. 264 act Aug. 13, 1940, ch. 664 54 Stat. 785  215 to 228. Omitted  Editorial Notes Codification Sections 215 to 228 were omitted pursuant to the amendment and revision of act Aug. 29, 1935, ch. 812 act June 24, 1937, ch. 382 50 Stat. 307 Section 215, acts Aug. 29, 1935, ch. 812,  1 49 Stat. 967 June 11, 1940, ch. 307,  2 54 Stat. 264 Aug. 13, 1940, ch. 664 54 Stat. 780 Section 216, act Aug. 29, 1935, ch. 812,  2 49 Stat. 968 Section 217, act Aug. 29, 1935, ch. 812,  3 49 Stat. 969 Section 218, act Aug. 29, 1935, ch. 812,  4 49 Stat. 969 Section 219, act Aug. 29, 1935, ch. 812,  5 49 Stat. 970 Section 220, act Aug. 29, 1935, ch. 812,  6 49 Stat. 970 Section 221, act Aug. 29, 1935, ch. 812,  7 49 Stat. 971 Section 222, act Aug. 29, 1935, ch. 812,  8 49 Stat. 972 Section 223, act Aug. 29, 1935, ch. 812,  9 49 Stat. 973 Section 224, act Aug. 29, 1935, ch. 812,  10 49 Stat. 973 Section 225, act Aug. 29, 1935, ch. 812,  11 49 Stat. 973 Section 226, act Aug. 29, 1935, ch. 812,  12 49 Stat. 973 Section 227, act Aug. 29, 1935, ch. 812,  13 49 Stat. 973 Section 228, act Aug. 29, 1935, ch. 812,  14 49 Stat. 973 Statutory Notes and Related Subsidiaries Effect of Amendments to Section 215 of This Title Act June 11, 1940, ch. 307,  2 54 Stat. 264 section 215 of this title June 11, 1940 Aug. 29, 1935 Short Title; Continuation and Effect of Railroad Retirement Act of 1935 Act June 24, 1937, ch. 382 50 Stat. 318 Oct. 8, 1940, ch. 757 54 Stat. 1014 Apr. 8, 1942, ch. 227,  10 56 Stat. 207 Oct. 30, 1966 Pub. L. 89700, title I,  111 80 Stat. 1085 act Aug. 29, 1935, ch. 812 49 Stat. 967 June 24, 1937 June 24, 1937 June 24, 1937 June 24, 1937 SUBCHAPTER III RAILROAD RETIREMENT ACT OF 1937  Editorial Notes Codification This subchapter was comprised of act Aug. 29, 1935, ch. 812 act June 24, 1937, ch. 382 50 Stat. 307 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1305 Jan. 1, 1975 Pub. L. 93445  228a to 228c1. Omitted  Editorial Notes Codification Sections 228a to 228c1 were omitted pursuant to the amendment and revision of act Aug. 29, 1935, ch. 812 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1305 Section 228a, act Aug. 29, 1935, ch. 812,  1 June 24, 1937, ch. 382 50 Stat. 307 June 11, 1940, ch. 307,  1 54 Stat. 264 Aug. 13, 1940, ch. 664 54 Stat. 785 Oct. 10, 1940, ch. 842,  25 54 Stat. 1100 Apr. 8, 1942, ch. 227,  13 56 Stat. 209 July 31, 1946, ch. 709 60 Stat. 722 Oct. 30, 1951, ch. 632,  1 65 Stat. 683 July 18, 1952, ch. 945,  6(d)(1) 66 Stat. 777 Aug. 31, 1954, ch. 1164 68 Stat. 1038 Sept. 1, 1954, ch. 1206 68 Stat. 1097 Aug. 1, 1956, ch. 836 70 Stat. 836 Aug. 1, 1956, ch. 837 70 Stat. 877 Aug. 30, 1957 Pub. L. 85238,  4(a) 71 Stat. 520 Aug. 28, 1958 Pub. L. 85840, title VII,  703 72 Stat. 1056 Sept. 13, 1960 Pub. L. 86778, title VII,  708 74 Stat. 997 June 30, 1961 Pub. L. 8764, title III,  301 75 Stat. 142 July 30, 1965 Pub. L. 8997, title III,  326(a) 79 Stat. 400 Sept. 29, 1965 Pub. L. 89212,  2(f) 79 Stat. 860 Oct. 30, 1966 Pub. L. 89700, title I,  101 80 Stat. 1079 Feb. 15, 1968 Pub. L. 90257, title I,  101 82 Stat. 16 Oct. 22, 1968 Pub. L. 90624,  2 82 Stat. 1316 section 231 of this title Section 228b, act Aug. 29, 1935, ch. 812,  2 June 24, 1937, ch. 382 50 Stat. 309 July 31, 1946, ch. 709 60 Stat. 727 Oct. 30, 1951, ch. 632 65 Stat. 683 Aug. 31, 1954, ch. 1164 68 Stat. 1038 Sept. 1, 1954, ch. 1206 68 Stat. 1097 Aug. 12, 1955, ch. 869,  1 69 Stat. 715 May 19, 1959 Pub. L. 8628 73 Stat. 25 Sept. 22, 1961 Pub. L. 87285 75 Stat. 585 Sept. 29, 1965 Pub. L. 89212,  1 79 Stat. 858 Oct. 30, 1966 Pub. L. 89699, title II,  201(a) 80 Stat. 1075 Oct. 30, 1966 Pub. L. 89700, title I,  102 80 Stat. 1079 Feb. 15, 1968 Pub. L. 90257, title I 82 Stat. 16 Aug. 12, 1970 Pub. L. 91377,  2 84 Stat. 791 July 2, 1971 Pub. L. 9246,  2 85 Stat. 101 Oct. 4, 1972 Pub. L. 92460,  1(b) 86 Stat. 765 July 10, 1973 Pub. L. 9369, title I 87 Stat. 162 section 231a of this title Section 228c, act Aug. 29, 1935, ch. 812,  3 June 24, 1937, ch. 382 50 Stat. 310 July 31, 1946, ch. 709 60 Stat. 728 June 23, 1948, ch. 608,  1 62 Stat. 576 Oct. 30, 1951, ch. 632 65 Stat. 684 June 16, 1954, ch. 300,  1 68 Stat. 250 Aug. 31, 1954, ch. 1164 68 Stat. 1038 Aug. 7, 1956, ch. 1022,  1 70 Stat. 1076 Sept. 6, 1958 Pub. L. 85927 72 Stat. 1778 May 19, 1959 Pub. L. 8628 73 Stat. 26 Sept. 13, 1960 Pub. L. 86778, title II,  211 o 74 Stat. 958 Oct. 5, 1963 Pub. L. 88133, title I 77 Stat. 219 Sept. 29, 1965 Pub. L. 89212,  3(a) 79 Stat. 860 Oct. 30, 1966 Pub. L. 89699, title I,  1 80 Stat. 1073 Oct. 30, 1966 Pub. L. 89700, title I,  103 80 Stat. 1080 Feb. 15, 1968 Pub. L. 90257, title I,  104 82 Stat. 17 Mar. 17, 1970 Pub. L. 91215 84 Stat. 70 Aug. 12, 1970 Pub. L. 91377,  1 84 Stat. 791 July 2, 1971 Pub. L. 9246,  1 85 Stat. 101 Oct. 4, 1972 Pub. L. 92460,  1(a) 86 Stat. 765 July 6, 1973 Pub. L. 9358,  1 87 Stat. 141 July 10, 1973 Pub. L. 9369, title I,  104(a) 87 Stat. 163 Oct. 16, 1974 Pub. L. 93445, title VI,  601 88 Stat. 1360 section 231b of this title Section 228c1, act Aug. 29, 1935, ch. 812,  4 June 24, 1937, ch. 382 Oct. 8, 1940, ch. 757 54 Stat. 1014 Apr. 8, 1942, ch. 227 56 Stat. 204206 July 31, 1946, ch. 709,  212 60 Stat. 729 Oct. 30, 1951, ch. 632,  4 65 Stat. 683 Aug. 1, 1956, ch. 837 70 Stat. 876 Oct. 5, 1963 Pub. L. 88133, title I 77 Stat. 219 Oct. 30, 1966 Pub. L. 89700, title I,  104 80 Stat. 1081 section 228a of this title Statutory Notes and Related Subsidiaries Annuities, Pensions, and Joint and Survivor Annuity Elections Act July 31, 1946, ch. 709 60 Stat. 742 July 31, 1946 July 31, 1946 Jan. 1, 1947 Jan. 1, 1947 Jan. 1, 1947 July 31, 1946 Reduction of Annuity Because of Prior Disability Annuity Terminated by Recovery Act July 31, 1946, ch. 709,  408 60 Stat. 742 section 228b(a)(3) of this title Dual Benefit Provision; Retroactive Payment to Survivors Act June 16, 1954, ch. 300,  2 68 Stat. 250 July 1, 1954 section 228c(b) of this title Percentage Adjustment Pub. L. 9246,  4 July 2, 1971 85 Stat. 101 Pub. L. 925 Mar. 17, 1971 85 Stat. 5 Recertifications by Railroad Retirement Board Pub. L. 9369,  106 July 10, 1973 87 Stat. 165 Pub. L. 9369 Pub. L. 92460,  3 Oct. 4, 1972 86 Stat. 766 Pub. L. 92460 Pub. L. 9246,  6 July 2, 1971 85 Stat. 102 Pub. L. 9246 Pub. L. 91377,  4(b)(2) Aug. 12, 1970 84 Stat. 792 Pub. L. 91377 Pub. L. 90257,  108(c) Feb. 15, 1968 82 Stat. 23 Pub. L. 90257 Pub. L. 89699,  202(b) Oct. 30, 1966 80 Stat. 1077 Pub. L. 89699 Pub. L. 8628,  6(b) Mar. 19, 1959 73 Stat. 28 Pub. L. 8628 section 228z1 of this title Act Oct. 30, 1951, ch. 632,  25(j) 65 Stat. 691 Oct. 30, 1951 Oct. 30, 1951 Act June 23, 1948, ch. 608,  3 62 Stat. 577 June 23, 1948 Restrictions on Establishment of New Annuities and Use of Certain Labor Tactics Pub. L. 91215,  7 Mar. 17, 1970 84 Stat. 72  228d. Repealed. July 31, 1946, ch. 709,  212 60 Stat. 729   Section, act Aug. 29, 1935, ch. 812,  4 June 24, 1937, ch. 382 50 Stat. 311  228e to 228z1. Omitted  Editorial Notes Codification Sections 228e to 228z1 were omitted pursuant to the amendment and revision of act Aug. 29, 1935, ch. 812 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1305 Section 228e, act Aug. 29, 1935, ch. 812,  5 June 24, 1937, ch. 382 50 Stat. 312 Apr. 8, 1942, ch. 227,  12 56 Stat. 208 July 16, 1946 60 Stat. 1095 July 31, 1946, ch. 709,  213 60 Stat. 729 June 23, 1948, ch. 608,  2 62 Stat. 577 Oct. 30, 1951, ch. 632 65 Stat. 685 July 18, 1952, ch. 945,  6(d)(2) 66 Stat. 777 Apr. 11, 1953 67 Stat. 631 Aug. 31, 1954, ch. 1164 68 Stat. 1039 Sept. 1, 1954, ch. 1206 68 Stat. 1081 Aug. 12, 1955, ch. 869 69 Stat. 716 Aug. 1, 1956, ch. 836 70 Stat. 836 Aug. 7, 1956, ch. 1022,  2 70 Stat. 1076 Aug. 30, 1957 Pub. L. 85238,  4(b) 71 Stat. 520 Sept. 6, 1958 Pub. L. 85927,  2 72 Stat. 1779 May 19, 1959 Pub. L. 8628 73 Stat. 27 Sept. 13, 1960 Pub. L. 86778, title II,  211 o 74 Stat. 958 Sept. 22, 1961 Pub. L. 87285,  3 75 Stat. 585 Oct. 5, 1963 Pub. L. 88133, title I 77 Stat. 220 July 30, 1965 Pub. L. 8997, title I,  111(b)(2) 79 Stat. 341 Sept. 29, 1965 Pub. L. 89212,  3(c) 79 Stat. 860 Oct. 30, 1966 Pub. L. 89699, title II,  201(d) 80 Stat. 1076 Oct. 30, 1966 Pub. L. 89700, title I,  105 80 Stat. 1082 Jan. 2, 1968 Pub. L. 90248, title I,  151(d)(3) 81 Stat. 860 Feb. 15, 1968 Pub. L. 90257, title I,  105 82 Stat. 19 Aug. 12, 1970 Pub. L. 91377,  3 84 Stat. 791 July 2, 1971 Pub. L. 9246,  3 85 Stat. 101 Oct. 4, 1972 Pub. L. 92460,  1(e) 86 Stat. 766 July 6, 1973 Pub. L. 9358,  2 87 Stat. 141 July 10, 1973 Pub. L. 9369, title I,  104(d) 87 Stat. 164 Section 228f, act Aug. 29, 1935, ch. 812,  6 June 24, 1937, ch. 382 50 Stat. 312 o Section 228g, act Aug. 29, 1935, ch. 812,  7 June 24, 1937, ch. 382 50 Stat. 313 o Section 228h, act Aug. 29, 1935, ch. 812,  8 June 24, 1937, ch. 382 50 Stat. 313 July 31, 1946, ch. 709,  214 60 Stat. 735 Oct. 30, 1966 Pub. L. 89700, title I,  106 80 Stat. 1085 section 231h of this title Section 228h1, act Oct. 9, 1940, ch. 797,  4 54 Stat. 1089 Jan. 1, 1937 section 228h of this title Section 228i, act Aug. 29, 1935, ch. 812,  9 June 24, 1937, ch. 382 50 Stat. 314 Oct. 10, 1940, ch. 842,  26 54 Stat. 1100 Oct. 30, 1966 Pub. L. 89700, title I,  107 80 Stat. 1085 section 231i of this title Section 228j, act Aug. 29, 1935, ch. 812,  10 June 24, 1937, ch. 382 50 Stat. 314 June 30, 1940 54 Stat. 1231 June 25, 1948, ch. 646 62 Stat. 875 May 24, 1949, ch. 139,  127 63 Stat. 107 Oct. 15, 1949, ch. 695,  5(a) 63 Stat. 880 Aug. 12, 1955, ch. 869,  5 69 Stat. 716 Sept. 6, 1958 Pub. L. 85927 72 Stat. 1781 Sept. 6, 1966 Pub. L. 89554,  8(a) 80 Stat. 660 Oct. 30, 1966 Pub. L. 89700, title I,  108 80 Stat. 1085 Feb. 15, 1968 Pub. L. 90257, title I,  106 82 Stat. 21 section 231f of this title Section 228k, act Aug. 29, 1935, ch. 812,  11 June 24, 1937, ch. 382 50 Stat. 315 July 31, 1946, ch. 709,  215 60 Stat. 735 section 231g of this title Section 228 l act Aug. 29, 1935, ch. 812,  12 June 24, 1937, ch. 382 50 Stat. 316 Aug. 12, 1955, ch. 869,  4 69 Stat. 716 section 231m of this title Section 228m, act Aug. 29, 1935, ch. 812,  13 June 24, 1937, ch. 382 50 Stat. 316 Sept. 6, 1958 Pub. L. 85927 72 Stat. 1781 l Section 228n, act Aug. 29, 1935, ch. 812,  14 June 24, 1937, ch. 382 50 Stat. 316 section 231s of this title Section 228 o act Aug. 29, 1935, ch. 812,  15 June 24, 1937, ch. 382 50 Stat. 316 Sept. 22, 1959 Pub. L. 86346, title I,  104(4) 73 Stat. 622 Oct. 5, 1963 Pub. L. 88133, title I,  7(a) 77 Stat. 220 Oct. 30, 1966 Pub. L. 89699, title I,  2 80 Stat. 1074 Mar. 17, 1970 Pub. L. 91215,  3 84 Stat. 70 Aug. 12, 1970 Pub. L. 91377,  5 84 Stat. 792 section 231n of this title Section 228p, act Aug. 29, 1935, ch. 812,  16 June 24, 1937, ch. 382 50 Stat. 317 Section 228q, act Aug. 29, 1935, ch. 812,  17 June 24, 1937, ch. 382 50 Stat. 317 Oct. 30, 1951, ch. 632,  24 65 Stat. 690 section 231q of this title Section 228r, act Aug. 29, 1935, ch. 812,  18 June 24, 1937, ch. 382 50 Stat. 318 section 231p of this title Section 228s, act Aug. 29, 1935, ch. 812,  19(a) June 24, 1937, ch. 382 Apr. 8, 1942, ch. 227,  11 56 Stat. 207 Oct. 30, 1966 Pub. L. 89700, title I,  109 80 Stat. 1085 section 231k of this title Section 228s1, act June 24, 1937, ch. 382 Aug. 31, 1954, ch. 1164 68 Stat. 1040 May 19, 1959 Pub. L. 8628 73 Stat. 28 Aug. 29, 1959 Pub. L. 86211,  8(c) 73 Stat. 436 Oct. 30, 1966 Pub. L. 89700, title I,  110 80 Stat. 1085 section 231k of this title Section 228s2, act Aug. 29, 1935, ch. 812,  21 July 30, 1965 Pub. L. 8997, title I,  105(a)(1) 79 Stat. 335 July 30, 1965 Pub. L. 8997, title I,  111(b)(1) 79 Stat. 340 Jan. 2, 1968 Pub. L. 90248, title I,  129(c)(13) 81 Stat. 849 section 231f of this title Section 228s3, act Aug. 29, 1935, ch. 812,  22 Oct. 30, 1972 Pub. L. 92603, title II,  201(d) 86 Stat. 1373 section 231f of this title Section 228t, act Oct. 30, 1951, ch. 632,  25(d) 65 Stat. 690 Oct. 30, 1951 Section 228u, act Oct. 30, 1951, ch. 632,  25(e) 65 Stat. 690 Section 228v, act Oct. 30, 1951, ch. 632,  25(f) 65 Stat. 691 Section 228w, act Oct. 30, 1951, ch. 632,  25(g) 65 Stat. 691 Nov. 30, 1961 Section 228x, act Oct. 30, 1951, ch. 632,  25(h) 65 Stat. 691 Section 228y, act Oct. 30, 1951, ch. 632,  25(i) 65 Stat. 691 Section 228z, act Aug. 7, 1956, ch. 1022,  3 70 Stat. 1076 July 1, 1956 Section 228z1, Pub. L. 8628 May 19, 1959 73 Stat. 28 Statutory Notes and Related Subsidiaries Actuarial Soundness of the Railroad Retirement System Pub. L. 9369, title I,  107 July 10, 1973 87 Stat. 165 Apr. 1, 1974 Adopted Childs Reentitlement to Annuity Pub. L. 9358,  4(b) July 6, 1973 87 Stat. 141 section 228e(c) of this title July 6, 1973 Certain Persons Becoming Employers Act July 31, 1946, ch. 709,  409 60 Stat. 743 section 228f of this title July 31, 1946 Jan. 1, 1946 Jan. 1, 1947 Mar. 1, 1937 July 1, 1937 Commission on Railroad Retirement Pub. L. 91377,  7 Aug. 12, 1970 84 Stat. 792 Pub. L. 9246,  7 July 2, 1971 85 Stat. 102 June 30, 1972 Congressional Declaration of 1974 Legislative Intent Pub. L. 9369, title I,  108 July 10, 1973 87 Stat. 165 Jan. 1, 1975 Conversion of Special Obligations in Railroad Retirement Account on Oct. 5, 1963 Pub. L. 88133,  7(b) Oct. 5, 1963 77 Stat. 220 The Secretary of the Treasury is authorized to retire the special obligations held by the account on the date of enactment of this Act [ Oct. 5, 1963 Pub. L. 88133 Determination of Amounts of Social Security Benefits Pub. L. 91377,  4(c) Aug. 12, 1970 84 Stat. 792 Pub. L. 90248 Jan. 2, 1968 81 Stat. 821 Pub. L. 91377 Pub. L. 91172, title X Dec. 30, 1969 83 Stat. 737 Entitlement to Annuity or Pension Under Railroad Retirement Act of 1937 as Including Entitlement Under Railroad Retirement Act of 1935 Pub. L. 8997, title I,  105(a)(2) July 30, 1965 79 Stat. 335 Aug. 29, 1935 section 105(a)(1) of Pub. L. 8997 Hospital Insurance Benefits for the Aged Act Aug. 29, 1935, ch. 812,  21 July 30, 1965 Pub. L. 8997, title I,  105(a)(1) 79 Stat. 335 Increases in Certain Pensions and Annuities Pub. L. 9369, title I,  105 July 10, 1973 87 Stat. 164 July 1, 1973 Dec. 31, 1974 section 228f of this title section 228c(a)(6) of this title Pub. L. 92460,  2 Sept. 4, 1972 86 Stat. 766 section 228f of this title Pub. L. 9246,  5 July 2, 1971 85 Stat. 101 section 228f of this title Pub. L. 91377,  4(b)(1) Aug. 12, 1970 84 Stat. 792 section 228f of this title Pub. L. 90257,  107 Feb. 15, 1968 82 Stat. 22 section 228f of this title Pub. L. 89699,  201(g) Oct. 30, 1966 80 Stat. 1077 section 228f of this title Permanency of Increases in Certain Pensions and Annuities Pub. L. 92460,  6 Sept. 4, 1972 86 Stat. 767 section 2 of Pub. L. 92460 section 5 of Pub. L. 9246 section 4(b)(1) of Pub. L. 91377 Mar. 1, 1973 Apr. 1, 1973 Presumption of Higher Increases in Annuities Pub. L. 90257,  108(b) Feb. 15, 1968 82 Stat. 23 Pub. L. 90248 Jan. 2, 1968 81 Stat. 821 section 228c(e) of this title Pub. L. 90257 section 228c(e) of this title Railroad Retirement and Old-Age, Survivors, and Disability Insurance System Pub. L. 8997,  105(c) July 30, 1965 79 Stat. 336 section 326 of Pub. L. 8997 Transfer of Funds for Payment of Supplemental Annuities Pub. L. 91215,  6 Mar. 17, 1970 84 Stat. 71 section 228c(j) of this title Mar. 17, 1970 Mar. 17, 1970 Pub. L. 89699,  3(b) Oct. 30, 1966 80 Stat. 1075 section 228c(j) of this title Oct. 30, 1966 Oct. 30, 1966 SUBCHAPTER IV RAILROAD RETIREMENT ACT OF 1974  Editorial Notes Codification This subchapter is comprised of act Aug. 29, 1935, ch. 812 act June 24, 1937, ch. 382, part I 50 Stat. 307 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1305 Jan. 1, 1975 Pub. L. 93445 section 231t of this title June 24, 1937 Pub. L. 93445  231. Definitions For the purposes of this subchapter (a) (1) The term employer shall include (i) any carrier by railroad subject to the jurisdiction of the Surface Transportation Board under part A of subtitle IV of title 49; (ii) any company which is directly or indirectly owned or controlled by, or under common control with, one or more employers as defined in paragraph (i) of this subdivision, and which operates any equipment or facility or performs any service (except trucking service, casual service, and the casual operation of equipment or facilities) in connection with the transportation of passengers or property by railroad, or the receipt, delivery, elevation, transfer in transit, refrigeration or icing, storage, or handling of property transported by railroad; (iii) any receiver, trustee, or other individual or body, judicial or otherwise, when in the possession of the property or operating all or any part of the business of any employer as defined in paragraph (i) or (ii) of this subdivision; (iv) any railroad association, traffic association, tariff bureau, demurrage bureau, weighing and inspection bureau, collection agency and any other association, bureau, agency, or organization which is controlled and maintained wholly or principally by two or more employers as defined in paragraph (i), (ii), or (iii) of this subdivision and which is engaged in the performance of services in connection with or incidental to railroad transportation; and (v) any railway labor organization, national in scope, which has been or may be organized in accordance with the provisions of the Railway Labor Act, as amended [ 45 U.S.C. 151 (2) Notwithstanding the provisions of subdivision (1) of this subsection, the term employer shall not include (i) any company by reason of its being engaged in the mining of coal, the supplying of coal to an employer where delivery is not beyond the mine tipple, and the operation of equipment or facilities therefor, or in any of such activities, and (ii) any street, interurban, or suburban electric railway, unless such railway is operating as a part of a general diesel-railroad system of transportation, but shall not exclude any part of the general diesel-railroad system of transportation now or hereafter operated by any other motive power. The Surface Transportation Board is hereby authorized and directed upon request of the Railroad Retirement Board, or upon complaint of any party interested, to determine after hearing whether any line operated by electric power falls within the terms of this paragraph. (b) (1) The term employee means (i) any individual in the service of one or more employers for compensation, (ii) any individual who is in the employment relation to one or more employers, and (iii) an employee representative: Provided, however August 29, 1935 (2) The term employee shall not include any individual while such individual is engaged in the physical operations consisting of the mining of coal, the preparation of coal, the handling (other than movement by rail with standard railroad locomotives) of coal not beyond the mine tipple, or the loading of coal at the tipple. (c) The term employee representative means any officer or official representative of a railway labor organization other than a labor organization included in the term employer as defined in subsection (a) who before or after August 29, 1935 45 U.S.C. 151 (d) (1) An individual is in the service of an employer whether his service is rendered within or without the United States if (i) (A) he is subject to the continuing authority of the employer to supervise and direct the manner of rendition of his service, or (B) he is rendering professional or technical services and is integrated into the staff of the employer, or (C) he is rendering, on the property used in the employers operations, personal services the rendition of which is integrated into the employers operations; and (ii) he renders such service for compensation, or a method of computing the monthly compensation for such service is provided in section 231b(j) of this title (2) Notwithstanding the provisions of subdivision (1) of this subsection (i) an individual shall be deemed to be in the service of an employer, other than a local lodge or division or a general committee of a railway-labor-organization employer, not conducting the principal part of its business in the United States only when he is rendering service to it in the United States; (ii) an individual shall be deemed to be in the service of a local lodge or division of a railway-labor-organization employer not conducting the principal part of its business in the United States only if (A) all, or substantially all, the individuals constituting the membership of such local lodge or division are employees of an employer conducting the principal part of its business in the United States; or (B) the headquarters of such local lodge or division is located in the United States; and (iii) an individual shall be deemed to be in the service of a general committee of a railway-labor-organization employer not conducting the principal part of its business in the United States only if (A) he is representing a local lodge or division described in clause (A) or (B) of paragraph (ii); or (B) all, or substantially all, the individuals represented by such general committee are employees of an employer conducting the principal part of its business in the United States; or (C) he acts in the capacity of a general chairman or an assistant general chairman of a general committee which represents individuals rendering service in the United States to an employer, but in such case if his office or headquarters is not located in the United States and the individuals represented by such general committee are employees of an employer not conducting the principal part of its business in the United States only such proportion of the remuneration for such service shall be regarded as compensation as the proportion which the mileage in the United States under the jurisdiction of such general committee bears to the total mileage under its jurisdiction, unless such mileage formula is inapplicable, in which case the Board may prescribe such other formula as it finds to be equitable, and if the application of such mileage formula, or such other formula as the Board may prescribe, would result in the compensation of the individual being less than 10 per centum of his remuneration for such service no part of such remuneration shall be regarded as compensation. (3) Notwithstanding the provisions of subdivisions (1) and (2) of this subsection, an individual not a citizen or resident of the United States shall not be deemed to be in the service of an employer when rendering service outside the United States to an employer who is required under the laws applicable in the place where the service is rendered to employ therein, in whole or in part, citizens or residents thereof. For purposes of this subdivision, the laws applicable on August 29, 1935 (e) (1) An individual shall be deemed to have been in the employment relation to an employer on August 29, 1935 (i) he was on that date on leave of absence from his employment, expressly granted to him by the employer by whom he was employed, or by a duly authorized representative of such employer, and the grant of such leave of absence will have been established to the satisfaction of the Board before July 1947; (ii) he was in the service of an employer after August 29, 1935 (iii) before August 29, 1935 August 29, 1935 August 29, 1935 August 29, 1935 (iv) he was on August 29, 1935 1 1 (2) Notwithstanding the provisions of subdivision (1) of this subsection, an individual shall not be deemed to have been in the employment relation to an employer on August 29, 1935 45 U.S.C. 228f August 29, 1935 August 29, 1935 (f) (1) The term years of service shall mean the number of years an individual as an employee shall have rendered service to one or more employers for compensation or received remuneration for time lost, and shall be computed in accordance with the provisions of section 231b(i) of this title (2) Where service prior to August 29, 1935 section 231b(i) of this title (i) service rendered to a person which was an employer on August 29, 1935 (ii) service rendered to any express company, sleeping-car company, or carrier by railroad which was a predecessor of a company which, on August 29, 1935 (iii) service rendered to a person not an employer in the performance of operations involving the use of standard railroad equipment if such operations were performed by an employer on August 29, 1935 (g) (1) For purposes of section 231b(i)(2) of this title (2) For purposes of section 231b(i)(2) of this title September 7, 1939 section 231b(i)(2) of this title June 15, 1948 December 15, 1950 (3) For purposes of section 231b(i)(2) of this title (4) For purposes of section 231b(i)(2) of this title (h) (1) The term compensation means any form of money remuneration paid to an individual for services rendered as an employee to one or more employers or as an employee representative, including remuneration paid for time lost as an employee, but remuneration paid for time lost shall be deemed earned in the month in which such time is lost. A payment made by an employer to an individual through the employers payroll shall be presumed, in the absence of evidence to the contrary, to be compensation for service rendered by such individual as an employee of the employer in the period with respect to which the payment is made. Compensation earned in any calendar month before 1947 shall be deemed paid in such month regardless of whether or when payment will have been in fact made, and compensation earned in any calendar year after 1946 but paid after the end of such calendar year shall be deemed to be compensation paid in the calendar year in which it will have been earned if it is so reported by the employer before February 1 of the next succeeding calendar year or if the employee establishes, subject to the provisions of section 231h of this title (2) An employee shall be deemed to be paid for time lost the amount he is paid by an employer with respect to an identifiable period of absence from the active service of the employer, including absence on account of personal injury, and the amount he is paid by the employer for loss of earnings resulting from his displacement to a less remunerative position or occupation. If a payment is made by an employer with respect to a personal injury and includes pay for time lost, the total payment shall be deemed to be paid for time lost unless, at the time of payment, a part of such payment is specifically apportioned to factors other than time lost, in which event only such part of the payment as is not so apportioned shall be deemed to be paid for time lost. (3) Solely for purposes of determining amounts to be included in the compensation of an employee, the term compensation shall also include cash tips received by an employee in any calendar month in the course of his employment by an employer unless the amount of such cash tips is less than $20. (4) Tips included as compensation by reason of the provisions of subdivision (3) shall be deemed to be paid at the time a written statement including such tips is furnished to the employer pursuant to section 6053(a) of the Internal Revenue Code of 1986 [ 26 U.S.C. 6053(a) (5) In determining compensation, there shall be attributable as compensation paid to an employee in calendar months in which he is in military service creditable under section 231b(i)(2) of this title (i) for each such calendar month prior to 1968, $160; (ii) for each such calendar month after 1967 and prior to 1975, $260; and (iii) for each such calendar month after 1974, the amount which is creditable as such individuals wages under section 209(d) of the Social Security Act [ 42 U.S.C. 409(d) (6) Notwithstanding the provisions of the preceding subdivisions of this subsection, the term compensation shall not include (i) tips, except as is provided under subdivision (3) of this subsection; (ii) remuneration for service which is performed by a non-resident alien individual for the period he is temporarily present in the United States as a nonimmigrant under subparagraph (F) or (J) of section 1101(a)(15) of title 8 (iii) remuneration earned in the service of a local lodge or division of a railway-labor-organization employer with respect to any calendar month in which the amount of such remuneration is less than $25; (iv) remuneration for service as a delegate to a national or international convention of a railway-labor-organization employer if the individual rendering such service has not previously rendered service, other than as such a delegate, which may be included in his years of service; (v) the amount of any payment (including any amount paid by an employer for insurance or annuities, or into a fund, to provide for any such payment) made to, or on behalf of, an employee or any of his dependents under a plan or system established by an employer which makes provision for his employees generally (or for his employees generally and their dependents) or for a class or classes of his employees (or for a class or classes of his employees and their dependents), on account of sickness or accident disability or medical or hospitalization expenses in connection with sickness or accident disability; and (vi) an amount paid specificallyeither as an advance, as reimbursement or allowancefor traveling or other bona fide and necessary expenses incurred or reasonably expected to be incurred in the business of the employer provided any such payment is identified by the employer either by a separate payment or by specifically indicating the separate amounts where both wages and expense reimbursement or allowance are combined in a single payment. (7) The term compensation includes any separation allowance or subsistence allowance paid under any benefit schedule provided under section 701 of title VII of the Regional Rail Reorganization Act of 1973 [ 45 U.S.C. 797 2 2 45 U.S.C. 797a 45 U.S.C. 797 (8) Notwithstanding any other provision of this subchapter, for the purposes of sections 231b(a)(1), 231c(a)(1), and 231c(f)(1) of this title, the term compensation includes any payment from any source to an employee or employee representative if such payment is subject to tax under section 3201 or 3211 of the Internal Revenue Code of 1986 [ 26 U.S.C. 3201 (i) The term Board means the Railroad Retirement Board. (j) The term company includes corporations, associations, and joint-stock companies. (k) The term employee includes an officer of an employer. (l) The term person means an individual, a partnership, an association, a joint-stock company, a corporation, or the United States or any other governmental body. (m) The term United States, when used in a geographical sense, means the States and the District of Columbia. (n) The term Social Security Act means the Social Security Act as amended [ 42 U.S.C. 301 (o) An individual shall be deemed to have a current connection with the railroad industry at the time an annuity begins to accrue to him and at death if, in any thirty consecutive calendar months before the month in which an annuity under this subchapter begins to accrue to him, or the month in which he dies if that first occurs, he will have been in service as an employee in not less than twelve calendar months and, if such thirty calendar months do not immediately precede such month, he will not have been engaged in any regular employment other than employment for an employer or employment with the Department of Transportation, the Interstate Commerce Commission, the Surface Transportation Board, the National Mediation Board, the National Transportation Safety Board, the State-owned railroad (as defined in the Alaska Railroad Transfer Act of 1982 [ 45 U.S.C. 1201 section 231a(b) of this title section 231a(d) of this title section 231a(d) of this title 45 U.S.C. 228a section 231a(d) of this title 42 U.S.C. 301 December 31, 1936 (p) The term annuity means a monthly sum which is payable on the first day of each calendar month for the accrual during the preceding calendar month. (q) The terms quarter and calendar quarter shall mean a period of three calendar months ending on March 31, June 30, September 30, or December 31. (r) For purposes of this subchapter, a person shall be considered to be permanently insured under the Social Security Act [ 42 U.S.C. 301 December 31, 1974 42 U.S.C. 414(a) January 1, 1975 ( Aug. 29, 1935, ch. 812,  1 June 24, 1937, ch. 382 50 Stat. 307 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1305 Pub. L. 94547,  4(a) Oct. 18, 1976 90 Stat. 2526 Pub. L. 9735, title XI,  1116 Aug. 13, 1981 95 Stat. 628 Pub. L. 97468, title VI,  615(b)(6) Jan. 14, 1983 96 Stat. 2578 Pub. L. 9876, title IV Aug. 12, 1983 97 Stat. 434 Pub. L. 99514,  2 Oct. 22, 1986 100 Stat. 2095 Pub. L. 100647, title VII,  7304(a) Nov. 10, 1988 102 Stat. 3778 Pub. L. 101239, title X,  10208(d)(2)(B)(ii) Dec. 19, 1989 103 Stat. 2481 Pub. L. 10488, title III,  323 Dec. 29, 1995 109 Stat. 950  Editorial Notes  References in Text The Railway Labor Act, referred to in subsecs. (a)(1)(v) and (c), is act May 20, 1926, ch. 347 44 Stat. 577 section 151 of this title Section 6 of the Railroad Retirement Act of 1937, referred to in subsec. (e)(2), which was classified to section 228f of this title The Regional Rail Reorganization Act of 1973, referred to in subsec. (h)(7), is Pub. L. 93236 Jan. 2, 1974 87 Stat. 985 45 U.S.C. 797 Pub. L. 99509, title IV,  4024(c) Oct. 21, 1986 100 Stat. 1904 Apr. 2, 1987 section 701 of this title The Social Security Act, referred to in subsecs. (n), ( o act Aug. 14, 1935, ch. 531 49 Stat. 620 section 1305 of Title 42 The Alaska Railroad Transfer Act of 1982, referred to in subsec. ( o Pub. L. 97468, title VI,  601 96 Stat. 2556 section 1201 of this title The Railroad Retirement Act of 1937, referred to in subsec. ( o act Aug. 29, 1935, ch. 812 49 Stat. 867 act June 24, 1937, ch. 382, part I 50 Stat. 307 Pub. L. 93445, title I Oct. 16, 1974 88 Stat. 1305 Amendments 1995Subsec. (a)(1)(i). Pub. L. 10488,  323(1) Subsec. (a)(2)(ii). Pub. L. 10488,  323(2) Subsec. ( o Pub. L. 10488,  323(3) 1989Subsec. (h)(5)(iii). Pub. L. 101239 1988Subsec. (g)(2). Pub. L. 100647 June 15, 1948 Dec. 15, 1950 1986Subsec. (h)(4), (8). Pub. L. 99514 1983Subsec. (h)(6). Pub. L. 9876,  402(a) Subsec. (h)(7). Pub. L. 9876,  403(a) Subsec. (h)(8). Pub. L. 9876,  410(a) Subsec. ( o Pub. L. 97468 45 U.S.C. 1201 1981Subsec. (f)(1). Pub. L. 9735,  1116(a) Subsec. ( o Pub. L. 9735,  1116(b)(2) section 231a(b) of this title section 231a(d) of this title section 231a(d) of this title Pub. L. 9735,  1116(b)(1) 1976Subsec. (h)(6)(vi), (vii). Pub. L. 94547 Statutory Notes and Related Subsidiaries Effective Date of 1995 Amendment Amendment by Pub. L. 10488 Jan. 1, 1996 section 2 of Pub. L. 10488 section 1301 of Title 49 Effective Date of 1988 Amendment Pub. L. 100647, title VII,  7304(b) Nov. 10, 1988 102 Stat. 3778 The amendment made by this section [amending this section] shall apply with respect to annuities accruing in months after the date of enactment of this Act [ Nov. 10, 1988 Effective Date of 1983 Amendment Pub. L. 9876, title IV,  402(c) Aug. 12, 1983 97 Stat. 434 The amendments made by this section [amending this section and section 351 of this title June 30, 1983 Pub. L. 9876, title IV,  403(c) Aug. 12, 1983 97 Stat. 434 The amendments made by this section [amending this section and section 351 of this title August 13, 1981 Pub. L. 9876, title IV,  410(b) Aug. 12, 1983 97 Stat. 436 The amendment made by this section [amending this section] shall apply with respect to payments made on or after January 1, 1982 Amendment by Pub. L. 97468 Jan. 5, 1985 section 1203 of this title section 615(b) of Pub. L. 97468 Effective Date of 1981 Amendment Pub. L. 9735, title XI,  1129 Aug. 13, 1981 95 Stat. 641 Pub. L. 99514,  2 Oct. 22, 1986 100 Stat. 2095  (a) Except as otherwise provided in this section, the amendments made by this subtitle [subtitle D ( 11161129 of title XI of Pub. L. 9735 section 231u of this title section 231n of this title October 1, 1981 (b) (1) The amendment made by section 1116(a) of this Act [amending this section] shall take effect October 1, 1981 Aug. 13, 1981 April 1, 1982 (2) The amendments made by sections 1116(b)(1), 1118(c)(2), 1119(b)(5), 1119(c), 1119(h)(3), 1119(i)(3), 1120(a), 1120(d), 1121(c)(1), 1121(c)(2), 1123, and 1125 of this Act [amending this section and sections 231b, 231c, 231d, 231e, 231i, and 231q of this title] shall take effect January 1, 1975 (3) The first sentence added to section 1( o o October 1, 1981 October 1, 1975 October 1, 1975 o October 1, 1981 (c) The amendment made by section 1117(a) of this Act [amending section 231a of this title October 1, 1981 section 231a(b) of this title October 1, 1981 (d) The amendments made by section 1119(b)(1) [amending section 231c of this title October 1, 1981 (e) (1) The amendments made by sections 1118(e)(3), 1119(d)(2), 1119(h)(1), and 1119(h)(4) of this Act [amending sections 231b and 231c of this title] shall take effect on the date of the enactment of this Act [ Aug. 13, 1981 (2) The amendment made by section 1118(d) of this Act [amending section 231b of this title October 1, 1981 July 1, 1981 October 1, 1981 October 1, 1981 (3) The amendment made by section 1118(a) of this Act [amending section 231b of this title October 1, 1981 July 1, 1981 (f) Section 4(g) of the Railroad Retirement Act of 1974 as amended by this Act [ section 231c(g) of this title October 1, 1981 section 231a(a)(1) of this title October 1, 1981 October 1, 1986 October 1, 1981 October 1, 1986 section 231b(b) of this title section 231b(g) of this title section 207(2) of Public Law 93445 October 1, 1981 October 1, 1981 (g) The amendments made by sections 1118(b), 1118(g), 1120(b), 1122(a)(2), 1122(b)(1), 1122(c), 1124, 1126, and 1127 of this Act [enacting section 231u of this title section 231n of this title October 1, 1981 (h) The amendments made by sections 1117(e)(2), 1117(f), 1118(h)(2), and 1119(i)(4) [amending sections 231a, 231b, and 231c of this title] shall take effect January 1, 1982 Effective Date of 1976 Amendment Pub. L. 94547,  4(c)(1) Oct. 18, 1976 90 Stat. 2527 The amendments made by subsection (a) of this section [amending this section] shall be effective January 1, 1975 Effective Date Pub. L. 93445, title VI,  602(a) Oct. 16, 1974 88 Stat. 1360  (a) The provisions of title I of this Act [enacting this subchapter] shall become effective on January 1, 1975 Provided, however section 231a of this title section 231d(a) of this title section 231a of this title July 1, 1974 (b) The provision of section 1( o o section 231a(a)(1)(iv) of this title January 1, 1975 section 231a(b)(1) of this title section 228b(a) of this title section 231a(1) of this title January 1, 1975 section 231a(d)(1) of this title January 1, 1975 (c) The provisions of clause (i)(B) and clause (ii)(B) of section 2(c)(1) of the Railroad Retirement Act of 1974 [subsec. (c)(1) of section 231a of this title section 228b(a) of this title section 231a of this title July 1, 1974 section 228b(a) of this title section 231a of this title January 1, 1975 section 231a of this title section 231a of this title (d) The provisions of section 2(b)(1) of the Railroad Retirement Act of 1974 [subsec. (b)(1) of section 231a of this title section 228b(a) of this title section 231a of this title July 1, 1974  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49 Transitional Provisions Pub. L. 93445, title II Oct. 16, 1974 88 Stat. 1351 Jan. 1, 1975 Pub. L. 9492, title II,  202(a) Aug. 9, 1975 89 Stat. 465 Pub. L. 94547,  1 Oct. 18, 1976 90 Stat. 2523  Sec. 201. The claims of individuals who, prior to the effective date of title I of this Act [see Effective Date note set out above], became eligible for annuities, supplemental annuities, or death benefits under section 2, 3(j), or 5 of the Railroad Retirement Act of 1937 [section 228b, 228c(j), or 228e of this title] shall be adjudicated by the Board under that Act [subchapter III of this chapter] in the same manner and with the same effect as if title I of this Act [enacting this subchapter] had not been enacted: Provided, however Provided, further section 228f of this title December 31, 1974 Sec. 202. (a) Every individual who would have been entitled to an annuity under the Railroad Retirement Act of 1935 [subchapter II of this chapter] for the month of January 1975, if this Act [enacting this subchapter] had not been enacted, shall be entitled to an annuity under paragraph (i) of section 2(a)(1) of the Railroad Retirement Act of 1974 [ section 231a(a)(1) of this title January 1, 1975 section 231b(a) of this title section 228c(a)(6) of this title section 105 of Public Law 9369 (b) The amount of the annuity of an individual under subsection (a) of this section shall be increased by an amount, if any, equal to the amount by which (i) his annuity under the Railroad Retirement Act of 1935 [subchapter II of this chapter] for the month of December 1974 exceeds (ii) his annuity under subsection (a) of this section for the month of January 1975. Sec. 203. (a) Every individual who would have been entitled to a pension under section 6 of the Railroad Retirement Act of 1937 [ section 228f of this title section 231a(a)(1) of this title section 231b(a) of this title section 228c(a)(6) of this title section 228f of this title section 105 of Public Law 9369 (b) The amount of the annuity of an individual under subsection (a) of this section shall be increased by an amount, if any, equal to the amount by which (i) his pension under section 6 of the Railroad Retirement Act of 1937 [ section 228f of this title (c) The annuities of each individual under the preceding subsections of this section shall be paid on January 1, 1975 Sec. 204. (a) Every individual who was entitled to an annuity under section 2(a)1, 2(a)2, 2(a)3, 2(a)4, or 2(a)5 of the Railroad Retirement Act of 1937 [section 228b(a)1, 228b(a)2, 228b(a)3, 228b(a)4, or 228b(a)5 of this title] for the month of December 1974, or who would have been entitled to such an annuity for such month except for the provisions of section 2(d) of such Act [ section 228b(d) of this title section 231a(a)(1) of this title January 1, 1975 Provided, however January 1, 1975 section 231a(a)(1) of this title (1) that portion of the individuals annuity as is provided under section 3(a) of the Railroad Retirement Act of 1974 [ section 231b(a) of this title section 228c(a)(6) of this title section 228c(a) of this title section 228c(e) of this title section 228b(a) of this title section 228b(d) of this title Provided, however section 231b(m) of this title (2) that portion of the individuals annuity as is provided under section 3(b)(1) of the Railroad Retirement Act of 1974 [ section 231b(b)(1) of this title section 228b(a) of this title section 228b(d) of this title December 31, 1936 January 1, 1975 Provided, however section 228c(e) of this title (3) if the individual was entitled to an old-age insurance benefit or a disability insurance benefit under the Social Security Act [section 301 et seq. of Title 42] on December 31, 1974 section 231b(h)(1) of this title Provided, however December 31, 1974 section 228b(d) of this title (4) if the individual was entitled to a wifes, husbands, widows, or widowers insurance benefit under the Social Security Act [section 301 et seq. of Title 42] on December 31, 1974 section 231b(h)(3) of this title (b) An individual who was awarded an annuity under section 2(a) of the Railroad Retirement Act of 1937 [ section 228b(a) of this title section 231a(a)(1) of this title (c) An individual who was awarded an annuity under section 2(a) of the Railroad Retirement Act of 1937 [ section 228b(a) of this title section 231b(c) of this title Provided, however December 31, 1974 December 31, 1974 [ Pub. L. 9492, title II,  202(b) Aug. 9, 1975 89 Stat. 465 section 204(c) of Pub. L. 93445 January 1, 1975 (d) The annuity amount provided an individual by paragraph (1) of this subsection as increased from time to time shall be deemed to be the primary insurance amount of such individual for purposes of computing the annuity of the spouse of such individual under section 4(a) of the Railroad Retirement Act of 1974. [ section 231c(a) of this title [Effective Date of 1976 Amendment. Pub. L. 94547,  1(d) Oct. 18, 1976 90 Stat. 2524 The amendments made by this section [enacting section 204(d) and amending sections 204(a)(1), (2) and 206(1) of Pub. L. 93445 January 1, 1975 Provided, however June 1, 1975 June 1, 1976 section 204(d) of Pub. L. 93445 Pub. L. 93445 section 3231 of Title 26  Sec section 228c(j) of this title section 228b(d) of this title section 231a(b)(1) of this title January 1, 1975 section 231b(e) of this title section 228c(j) of this title section 228c(j) of this title section 228b(d) of this title (b) An individual who was awarded an annuity under section 2(a) of the Railroad Retirement Act of 1937 [ section 228b(a) of this title section 228c(j) of this title section 231a(b) of this title  Sec section 228b(d) of this title section 231a(c) of this title January 1, 1975 (1) that portion of the spouses annuity as is provided under section 4(a) of the Railroad Retirement Act of 1974 [ section 231c(a) of this title section 228c(a)(6) of this title section 228b of this title section 228b(d) of this title Provided, however section 402 of Title 42 section 231c(i) of this title [Effective Date of 1976 Amendment. See note set out under section 204(d) hereinabove.] (2) that portion of the spouses annuity as is provided under section 4(b) of the Railroad Retirement Act of 1974 [ section 231c(b) of this title section 204(a) of this title Provided, however January 1, 1975 section 228b(d) of this title Provided further section 231c(i)(2) of this title section 228b(d) of this title (3) if the spouse was entitled to an old-age insurance benefit or a disability insurance benefit under the Social Security Act [section 301 et seq. of Title 42] of [on] December 31, 1974 section 231c(e)(1) of this title section 231c(e)(3) of this title Provided, however December 31, 1974 section 228b(d) of this title  Sec. 207. Every survivor who was entitled to an annuity under section 5 of the Railroad Retirement Act of 1937 [ section 228e of this title section 228e(i) of this title section 231a(d) of this title January 1, 1975 (1) that portion of the survivors annuity as is provided under section 4(f) of the Railroad Retirement Act of 1974 [ section 231c(f) of this title section 228c(a)(6) of this title section 228e(q) of this title Provided, however section 402 of Title 42 section 231c(i)(2) of this title (2) that portion of the survivors annuity as is provided under section 4(g) of the Railroad Retirement Act of 1974 [ section 231c(g) of this title section 231c(i)(2) of this title Provided, however section 228e of this title section 228e(i) of this title (3) if the survivor is a widow or widower who was entitled to an old-age insurance benefit or a disability insurance benefit under the Social Security Act [section 301 et seq. of Title 42] on December 31, 1974 section 231c(h)(1) of this title Provided, however December 31, 1974 section 228e(i) of this title Sec. 208. For purposes of paragraph (1) of section 204(a), paragraph (1) of section 206, and paragraph (1) of section 207, the fact that the amount of the annuity payable to an individual, spouse, or survivor under the Railroad Retirement Act of 1937 [subchapter III of this chapter] for the month of December 1974 may not (i) in the case of an individual have been computed under the provisions of section 3(a) of such Act [ section 228c(a) of this title section 228c(e) of this title section 228b of this title section 228e of this title section 228c(a)(6) of this title section 228c(a) of this title section 228c(e) of this title section 228b of this title section 228e of this title Sec. 209. (a) Whenever monthly insurance benefits under section 202 of the Social Security Act [ section 402 of Title 42 section 231a of this title (b) The annuity amounts provided by section 202(b), section 203(b), paragraph (2) of section 204(a), and paragraph (2) of section 206 shall be increased by the same percentage, or percentages, and effective the same date, or dates, as other annuity amounts of the same type are increased pursuant to the provisions of section 3(g) of the Railroad Retirement Act of 1974 [ section 231b(g) of this title Sec. 210. The election of a joint and survivor annuity made before July 31, 1946 January 1, 1975  231a. Annuity eligibility requirements (a) Individuals eligible for annuities; disability standards; proof of continued disability (1) The following-described individuals, if they shall have completed ten years of service (or, for purposes of paragraphs (i), (iii), and (v), five years of service, all of which accrues after December 31, 1995 section 231b of this title (i) individuals who have attained retirement age (as defined in section 216( l 42 U.S.C. 416 l (ii) individuals who have attained the age of sixty and have completed thirty years of service; (iii) individuals who have attained the age of sixty-two and have completed less than thirty years of service, but the annuity of such individuals shall be reduced by 1 180 l 42 U.S.C. 416 l 1 240 l (iv) individuals who have a current connection with the railroad industry, whose permanent physical or mental condition is such as to be disabling for work in their regular occupation, and who (A) have completed twenty years of service or (B) have attained the age of sixty; and (v) individuals whose permanent physical or mental condition is such that they are unable to engage in any regular employment. (2) For the purposes of paragraph (iv) of subdivision (1), the Board, with the cooperation of employers and employees, shall secure the establishment of standards determining the physical and mental conditions which permanently disqualify employees for work in the several occupations in the railroad industry, and the Board, employers, and employees shall cooperate in the promotion of the greatest practicable degree of uniformity in the standards applied by the several employers. An individuals condition shall be deemed to be disabling for work in his regular occupation if he will have been disqualified by his employer for service in his regular occupation in accordance with the applicable standards so established; if the employee will not have been so disqualified by his employer, the Board shall determine whether his condition is disabling for work in his regular occupation in accordance with the standards generally established; and, if the employees regular occupation is not one with respect to which standards will have been established, the standards relating to a reasonably comparable occupation shall be used. If there is no such comparable occupation, the Board shall determine whether the employees condition is disabling for work in his regular occupation by determining whether under the practices generally prevailing in industries in which such occupation exists such condition is a permanent disqualification for work in such occupation. For purposes of this subdivision and paragraph (iv) of subdivision (1), an employees regular occupation shall be deemed to be the occupation in which he will have been engaged in more calendar months than the calendar months in which he will have been engaged in any other occupation during the last preceding five calendar years, whether or not consecutive, in each of which years he will have earned wages or salary, except that, if an employee establishes that during the last fifteen consecutive calendar years he will have been engaged in another occupation in one-half or more of all the months in which he will have earned wages or salary, he may claim such other occupation as his regular occupation. (3) Such satisfactory proof shall be made from time to time as prescribed by the Board, of the disability provided for in paragraph (iv) or (v) of subdivision (1) and of the continuance of such disability (according to the standards applied in the establishment of such disability) until the employee attains retirement age (as defined in section 216( l 42 U.S.C. 416 l l (4) An individual who is entitled to an annuity under paragraph (v) of subdivision (1), but who does not have at least ten years of service, shall, prior to the month in which the individual attains age 62, be entitled only to an annuity amount computed under section 231b(a) of this title section 231b(a)(2) of this title section 231b(f)(3) of this title section 231b(b) of this title (b) Individuals eligible for supplemental annuities An individual who (i) has attained age 60 and completed thirty years of service or attained age 65; (ii) has completed twenty-five years of service; (iii) is entitled to the payment of an annuity under subsection (a)(1); (iv) had a current connection with the railroad industry at the time such annuity began to accrue; and (v) has performed compensated service in at least one month prior to October 1, 1981 shall, subject to the conditions set forth in subsections (e) and (h), be entitled to a supplemental annuity in the amount provided under section 231b of this title Provided, however (c) Spouses eligible for annuities (1) The spouse of an individual, if (i) such individual (A) is entitled to an annuity under subsection (a)(1) and (B) has attained the age of 60 and has completed thirty years of service or has attained the age of 62, and (ii) such spouse (A) has attained retirement age (as defined in section 216( l 42 U.S.C. 416 l shall, subject to the conditions set forth in subsections (e), (f), and (h), be entitled to a spouses annuity, if he or she has filed application therefor, in the amount provided under section 231c of this title (2) A spouse who would be entitled to an annuity under subdivision (1) or a divorced wife who would be entitled to an annuity under subdivision (4) if he or she had attained retirement age (as defined in section 216( l 42 U.S.C. 416 l 1 144 l 1 240 l (3) For the purposes of this subchapter, the term spouse shall mean the wife or husband of an annuitant under subsection (a)(1) who (i) was married to such annuitant for a period of not less than one year immediately preceding the day on which the application for a spouses annuity is filed, or in the month prior to his or her marriage to such annuitant was eligible for an annuity under paragraph (i) or (iv) of subsection (d)(1) or, on the basis of disability, under paragraph (iii) thereof, or is the parent of such annuitants son or daughter; and (ii) in the case of a husband, was receiving at least one-half of his support from his wife at the time his wifes annuity under subsection (a)(1) began. (4) The divorced wife (as defined in section 216(d) of the Social Security Act [ 42 U.S.C. 416(d) (i) such individual has attained the age 62; (ii) such divorced wife (A) has attained retirement age (as defined in section 216( l 42 U.S.C. 416 l 1 1 (iii) such divorced wife would have been entitled to a benefit under section 202(b) of the Social Security Act [ 42 U.S.C. 402(b) December 31, 1936 42 U.S.C. 301 shall, subject to the conditions set forth in subsections (e), (f), and (h), be entitled to a divorced wifes annuity, if she has filed an application therefor, in the amount provided under section 231c of this title (d) Survivors eligible for annuities (1) The following described survivors of a deceased employee who will have completed ten years of service (or five years of service, all of which accrues after December 31, 1995 section 231c of this title (i) a widow (as defined in section 216(c) and (k) of the Social Security Act [ 42 U.S.C. 416(c) (ii) a widow (as defined in section 216(c) and (k) of the Social Security Act [ 42 U.S.C. 416(c) (iii) a child (as defined in section 216(e) and (k) of the Social Security Act [ 42 U.S.C. 416(e) (iv) a parent (as defined in section 202(h)(3) of the Social Security Act [ 42 U.S.C. 402(h)(3) 2 2 Provided, however 42 U.S.C. 301 (v) The 3 3 42 U.S.C. 416(c) 42 U.S.C. 402(e) December 31, 1936 4 4 4 42 U.S.C. 402(a) (2) The period referred to in clause (B) of subdivision (1)(i) is the period (i) beginning with the latest of (A) the month of the employees death, (B) in the case of a widow, the last month for which she was entitled to an annuity under paragraph (ii) of subdivision (1) as the widow of the deceased employee, or (C) the month in which the widows or widowers previous entitlement to an annuity as the widow or widower of the deceased employee terminated because her or his disability had ceased and (ii) ending with the month before the month in which she or he attains age sixty, or, if earlier, with the close of the eighty-fourth month following the month with which such period began. (3) For purposes of paragraph (i) or (iii) of subdivision (1), a widow, widower, or child shall be under a disability if her or his permanent physical or mental condition is such that she or he is unable to engage in any regular employment. The provisions of subsection (a)(3) of this section as to the proof of disability shall apply with regard to determinations with respect to disability under subdivision (1). (4) In determining for purposes of this subsection and subdivision (3) of subsection (c) whether an applicant is the wife, husband, widow, widower, child, or parent of a deceased employee as claimed, the rules set forth in section 216(h) of the Social Security Act [ 42 U.S.C. 416(h) 42 U.S.C. 402 5 5 (e) Compensated service; rights to return (1) No individual shall be entitled to an annuity under subsection (a)(1) until he shall have ceased to render compensated service to an employer as defined in section 231(a) of this title (2) An annuity under subsection (a)(1) shall be paid only if the applicant shall have relinquished such rights as he may have to return to the service of an employer: Provided, however l 42 U.S.C. 416 l Provided further And provided further (3) No annuity under subsection (a)(1) or supplemental annuity under subsection (b)(1) shall be paid with respect to any month in which an individual in receipt of an annuity or supplemental annuity thereunder shall render compensated service to an employer. Individuals receiving annuities under subsection (a)(1) shall report to the Board immediately all such compensated service. (4) No annuity under paragraph (iv) or (v) of subsection (a)(1) shall be paid to an individual with respect to any month in which the individual is under retirement age (as defined in section 216( l 42 U.S.C. 416 l Provided, however l 6 6 6 (5) The annuity of a spouse or divorced wife under subsection (c) shall, with respect to any month, be subject to the same provisions of this subsection as the individuals annuity. In addition, the annuity of a spouse under subsection (c) shall not be payable for any month if the individuals annuity under subsection (a)(1) is not payable for such month by reason of the provisions of this subsection. (f) Deductions on account of work (1) That portion of the individuals annuity as is computed under section 231b(a) of this title December 31, 1974 42 U.S.C. 301 section 231b(h) of this title 42 U.S.C. 403 Provided, however December 31, 1974 (2) That portion of the spouses or divorced wifes annuity under subsection (c) which is derived from the portion of the individuals annuity subject to deductions under subdivision (1) and that portion of the spouses or divorced wifes annuity as is computed under section 231c(e) of this title 42 U.S.C. 301 (3) Deductions shall not be made pursuant to subdivision (1) from that portion of an individuals annuity as is computed under section 231b(a) of this title section 231b(m) of this title (4) Deductions shall not be made pursuant to subdivision (2) from that portion of a spouses annuity as is computed under section 231c(a) of this title 42 U.S.C. 401 (5) If an annuity begins to accrue on other than the first day of a month, subdivisions (1) and (2) of this subsection shall not apply in the year the annuity begins to accrue if the annuitant has no earnings in excess of the monthly exempt amount in such year after the annuity beginning date. (6) (A) Except as provided in subparagraph (B) (i) that portion of the annuity for any month of an individual as is computed under section 231b(b) of this title section 231b(g) of this title section 231b(e) of this title section 231c(b) of this title section 231c(d) of this title (ii) that portion of the annuity for any month of a spouse as is computed under section 231c(b) of this title section 231c(d) of this title (B) Any deductions imposed by this subdivision for any month shall not exceed 50 percent of the annuity amount for such month to which such deductions apply. (g) Employment compensation of survivors; deductions (1) No annuity shall be paid to a survivor under subsection (d) with respect to any month in which such survivor renders service for compensation as an employee of an employer. Survivors receiving annuities under subsection (d) shall report to the Board immediately all such service for compensation. (2) Deductions, in amounts and at such time or times as the Board shall determine, shall be made from any payments to which a survivor is entitled under subsection (d) until the total of such deductions equals such survivors annuity under that subsection for any month, if for such month such survivor would be charged with excess earnings under section 203(f) of the Social Security Act [ 42 U.S.C. 403(f) 42 U.S.C. 403(f) 42 U.S.C. 402 Provided, however (h) Military service; reductions (1) Repealed. Pub. L. 9876, title IV,  414(a) Aug. 12, 1983 97 Stat. 436 (2) The supplemental annuity provided an individual by subsection (b) shall, with respect to any month, be reduced by the amount of the supplemental pension, attributable to the employers contribution, that such individual is entitled to receive for that month under any other supplemental pension plan: Provided, however (3) If a spouse or divorced wife entitled to an annuity under subsection (c) or a survivor entitled to an annuity under subsection (d) for any month is also entitled to annuity under subsection (a)(1) for such month, the annuity under subsection (c) or (d) shall be reduced, but not below zero, by an amount equal to the annuity under subsection (a)(1): Provided, however January 1, 1975 (4) If an annuitant is entitled to more than one annuity under subsections (c) and (d) for a month, such annuitant shall be entitled to only the larger of such annuities for such month, except that, if such annuitant so elects, he shall instead be entitled to only the smaller of such annuities for such month. (i) Limitation; service accrued after 1995 An individual entitled to an annuity under this section who has completed five years of service, all of which accrues after 1995, but who has not completed ten years of service, and the spouse, divorced spouse, and survivors of such individual, shall not be entitled to an annuity amount provided under section 231b(a), section 231c(a), or section 231c(f) of this title 42 U.S.C. 401 ( Aug. 29, 1935, ch. 812,  2 June 24, 1937, ch. 382 50 Stat. 307 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1312 Pub. L. 9688, title V,  509(b) Oct. 17, 1979 93 Stat. 695 Pub. L. 9735, title XI,  1117 Aug. 13, 1981 95 Stat. 628 Pub. L. 9876, title I Aug. 12, 1983 97 Stat. 416418 Pub. L. 100647, title VII Nov. 10, 1988 102 Stat. 3777 Pub. L. 10790, title I,  103(a) Dec. 21, 2001 115 Stat. 880 Pub. L. 109280, title X,  1002(a) Aug. 17, 2006 120 Stat. 1053 Pub. L. 109478,  2(a) Jan. 12, 2007 120 Stat. 3573  Editorial Notes  References in Text The Social Security Act, referred to in subsecs. (c)(4), (d)(1)(iv), (f)(1), (2), (4), and (i), is act Aug. 14, 1935, ch. 531 49 Stat. 620 section 1305 of Title 42 Paragraph (3) of section 202(e) of the Social Security Act [ 42 U.S.C. 402(e)(3) Pub. L. 9821, title I,  131(a)(1) Apr. 20, 1983 97 Stat. 92 Amendments 2007Subsec. (e)(4). Pub. L. 109478,  2(a)(3) Pub. L. 109478,  2(a)(1) 2006Subsec. (c)(4)(i). Pub. L. 109280,  1002(a)(1) Subsec. (e)(5). Pub. L. 109280,  1002(a)(2) 2001Subsec. (a)(1). Pub. L. 10790,  103(a)(1) December 31, 1995 Subsec. (a)(4). Pub. L. 10790,  103(a)(2) Subsec. (d)(1). Pub. L. 10790,  103(c) December 31, 1995 Subsec. (i). Pub. L. 10790,  103(d) 1988Subsec. (e)(1). Pub. L. 100647,  7302(a)(1) section 231(a) of this title Subsec. (e)(2). Pub. L. 100647,  7302(a)(2) Subsec. (e)(3). Pub. L. 100647,  7302(a)(3) Subsec. (e)(4). Pub. L. 100647,  7303(a) Subsec. (f)(6). Pub. L. 100647,  7302(b) 1983Subsec. (a)(1)(i). Pub. L. 9876,  106(a)(1) l Subsec. (a)(1)(iii). Pub. L. 9876,  106(a)(2) 1 180 l 1 240 l 1 180 Subsec. (a)(3). Pub. L. 9876,  106(b) l Subsec. (c)(1)(ii). Pub. L. 9876,  106(c) l Subsec. (c)(2). Pub. L. 9876,  106(d) l 1 144 l 1 240 l 1 144 Pub. L. 9876,  409(a) Subsec. (c)(3). Pub. L. 9876,  415 Subsec. (c)(4)(ii)(A). Pub. L. 9876,  106(e) l Subsec. (d)(1)(iii)(B). Pub. L. 9876,  104(a) Subsec. (d)(1)(iv). Pub. L. 9876,  413(a) Subsec. (d)(4). Pub. L. 9876,  104(b) Subsec. (e)(2). Pub. L. 9876,  106(f) l Subsec. (e)(4). Pub. L. 9876,  106(g) l Subsec. (h)(1). Pub. L. 9876,  414(a) section 231b(i)(2) of this title 1981Subsec. (b). Pub. L. 9735,  1117(a) Subsec. (c)(2), (4). Pub. L. 9735,  1117(b) 1 144 1 180 Subsec. (d)(1)(v). Pub. L. 9735,  1117(c) Subsec. (e)(5). Pub. L. 9735,  1117(d) Subsec. (f)(2). Pub. L. 9735,  1117(e)(1) Subsec. (f)(3) to (5). Pub. L. 9735,  1117(e)(2) Subsec. (g)(2). Pub. L. 9735,  1117(f) Subsec. (h). Pub. L. 9735,  1117(g) Statutory Notes and Related Subsidiaries  Change of Name Secretary of Health and Human Services substituted for Secretary of Health, Education, and Welfare in subsec. (g)(2), pursuant to section 509(b) of Pub. L. 9688 section 3508(b) of Title 20 Effective Date of 2007 Amendment Pub. L. 109478,  2(b) Jan. 12, 2007 120 Stat. 3574 The amendments made by this section [amending this section] take effect January 1, 2007 Effective Date of 2006 Amendment Pub. L. 109280, title X,  1002(b) Aug. 17, 2006 120 Stat. 1053 The amendments made by this section [amending this section] shall take effect 1 year after the date of the enactment of this Act [ Aug. 17, 2006 Effective Date of 2001 Amendment Amendment by Pub. L. 10790 Jan. 1, 2002 section 103(j) of Pub. L. 10790 section 405 of Title 42 Effective Date of 1988 Amendment Pub. L. 100647, title VII,  7302(c) Nov. 10, 1988 102 Stat. 3777 The amendments made by this section [amending this section] shall apply to annuities payable under the Railroad Retirement Act of 1974 [this subchapter] for months beginning after the date of enactment of this Act [ Nov. 10, 1988 Pub. L. 100647, title VII,  7303(b) Nov. 10, 1988 102 Stat. 3778 The amendments made by this section [amending this section] shall apply with respect to months in calendar years beginning after December 31, 1988 Effective Date of 1983 Amendment Pub. L. 9876, title I,  104(d) Aug. 12, 1983 97 Stat. 416 The amendments made by this section [amending this section and section 231d of this title Pub. L. 9876, title I,  106(k) Aug. 12, 1983 97 Stat. 418 The amendments made by this section [amending this section and sections 231c and 231d of this title] shall be effective on the date of the enactment of this Act [ Aug. 12, 1983 Pub. L. 9876, title IV,  409(b) Aug. 12, 1983 97 Stat. 435 The amendment made by this section [amending this section] shall be effective with respect to divorced wife annuities awarded on and after the date of enactment [ Aug. 12, 1983 Pub. L. 9876, title IV,  413(b) Aug. 12, 1983 97 Stat. 436 The amendment made by this section [amending this section] shall apply with respect to annuities that first begin to accrue with respect to any month beginning after the date of the enactment of this Act [ Aug. 12, 1983 Pub. L. 9876, title IV,  414(b) Aug. 12, 1983 97 Stat. 436 The amendments made by this section [amending this section] shall apply with respect to months beginning after the date of the enactment of this Act [ Aug. 12, 1983 Effective Date of 1981 Amendment Amendment by section 1117(a) of Pub. L. 9735 Oct. 1, 1981 Oct. 1, 1981 Pub. L. 9735 Jan. 1, 1982 section 1117 of Pub. L. 9735 Oct. 1, 1981 Oct. 1, 1981 section 1129 of Pub. L. 9735 section 231 of this title Special $50 Payment Under Tax Reduction Act of 1975 Special payment of $50 as soon as practicable after Mar. 29, 1975 section 702 of Pub. L. 9412 section 402 of Title 42  231b. Computation of annuities (a) Amount (1) The annuity of an individual under section 231a(a)(1) of this title 42 U.S.C. 301 December 31, 1936 (2) For purposes of this subsection, individuals entitled to an annuity under section 231a(a)(1)(ii) of this title 42 U.S.C. 415(f) l 42 U.S.C. 416 l section 231a(a)(1) of this title 42 U.S.C. 423 (3) If an individual entitled to an annuity under section 231a(a)(1)(i) or (iii) of this title on the basis of less than ten years of service is entitled to a benefit under section 202(a), section 202(b), or section 202(c) of the Social Security Act [ 42 U.S.C. 402(a) (b) Increased annuities under subsection (a) (1) The amount of the annuity of an individual provided under subsection (a) shall be increased by an amount equal to seven-tenths of 1 per centum of the product which is obtained by multiplying such individuals years of service by such individuals average monthly compensation as determined under this subsection. The annuity amount payable to the individual under this subsection shall be reduced by 25 per centum of the annuity amount computed for such individual under subsection (h)(1) or (h)(2), and subsection (h)(5), of this section without regard to section 231f(c)(1) of this title section 231h of this title (2) For purposes of subdivision (1) of this subsection, in determining average monthly compensation for an individual who has not engaged in employment for an employer in the 60-month period preceding the month in which such individuals annuity began to accrue, and whose major employment during such 60-month period was for a United States department or agency named in section 231( o (i) the compensation credited to such individual for such month under paragraph (1) of this subsection; and (ii) the quotient obtained by dividing (I) the average of total wages (as determined under section 215(b)(3)(A)(ii)(I) of the Social Security Act [ 42 U.S.C. 415(b)(3)(A)(ii)(I) (II) the average of total wages (as determined under section 215(b)(3)(A)(ii)(II) of the Social Security Act [ 42 U.S.C. 415(b)(3)(A)(ii)(II) In no event shall average monthly compensation determined for an individual under this subdivision exceed the maximum average monthly compensation which can be determined under subdivision (1) of this subsection for any person retiring January 1 of the year in which such individuals annuity began to accrue. (c) , (d) Repealed. Pub. L. 9735, title XI,  1118(b) Aug. 13, 1981 95 Stat. 631 (e) Supplemental annuities The supplemental annuity of an individual under section 231a(b) of this title (f) Reductions in annuities (1) If, in the case of an individual whose annuity under section 231a(a)(1) of this title January 1, 1983 42 U.S.C. 301 section 231c(e) of this title section 231a(f) of this title December 31, 1974 45 U.S.C. 228a December 31, 1974 26 U.S.C. 3121 45 U.S.C. 228c(a)(2) December 31, 1974 (2) If for any month in which an annuity accrues and is payable under this subchapter the annuity to which an individual is entitled under this subchapter (or would have been entitled except for a reduction pursuant to a joint and survivor election), together with the annuity, if any, of the spouse and divorced wife of such individual, is less than the total amount, or the additional amount, which would have been payable to all persons for such month under the Social Security Act [ 42 U.S.C. 301 December 31, 1936 Provided, however section 231a of this title section 231a(c) of this title 42 U.S.C. 416(e) 42 U.S.C. 423(c)(2) section 231a of this title section 231a(c) of this title 42 U.S.C. 401 (g) Increased annuities under subsection (b) (1) Effective with the date of any increase after January 31, 1984 42 U.S.C. 301 42 U.S.C. 415(i) section 231a(a)(1) of this title (2) The first and, if necessary, the following time or times after January 1, 1983 42 U.S.C. 402 section 231a(a)(1) of this title 42 U.S.C. 301 (h) Increased annuities under subsections (a) and (b) (1) The amount of the annuity provided under subsections (a) and (b) of this section of an individual who (A) will have (i) rendered service as an employee to an employer, or as an employee representative, during the calendar year 1974, or (ii) had a current connection with the railroad industry on December 31, 1974 section 231a(a)(1) of this title January 1, 1975 January 1, 1975 42 U.S.C. 301 December 31, 1974 December 31, 1974 December 31, 1936 January 1, 1975 December 31, 1974 January 1, 1975 December 31, 1974 January 1, 1975 December 31, 1936 January 1, 1975 (2) The amount of the annuity provided under subsections (a) and (b) of this section to an individual who (A) will not have met the conditions set forth in subclause (i), (ii), or (iii) of clause (A) of subdivision (1) of this subsection, but (B) will have (i) completed ten years of service prior to January 1, 1975 42 U.S.C. 301 December 31, 1974 December 31, 1936 January 1, 1975 December 31, 1974 December 31, 1974 December 31, 1936 January 1, 1975 (3) The amount of the annuity provided under subsections (a) and (b) of this section of an individual who (A) will have (i) rendered service as an employee to an employer, or as an employee representative, during the calendar year 1974, or (ii) had a current connection with the railroad industry on December 31, 1974 section 231a(a)(1) of this title January 1, 1975 January 1, 1975 42 U.S.C. 301 December 31, 1974 December 31, 1974 January 1, 1975 December 31, 1974 January 1, 1975 December 31, 1936 January 1, 1975 (4) The amount of the annuity provided under subsections (a) and (b) of this section of an individual who (A) will not have met the conditions set forth in subclause (i), (ii), or (iii) of clause (A) of subdivision (3) of this subsection, but (B) will have completed ten years of service prior to January 1, 1975 42 U.S.C. 301 December 31, 1974 December 31, 1974 December 31, 1936 January 1, 1975 (5) The amount computed under subdivision (1), (2), (3), or (4) of this subsection shall be increased by the same percentage, or percentages, as benefits under the Social Security Act [ 42 U.S.C. 301 42 U.S.C. 415(i) January 1, 1975 section 231a(a)(1) of this title January 1, 1982 (6) No amount shall be payable to an individual under subdivision (3) or (4) of this subsection unless the entitlement of such individual to such amount had been determined prior to August 13, 1981 (i) Years of service (1) The years of service of an individual shall include all his service subsequent to December 31, 1936 (2) The years of service of an individual shall also include his voluntary or involuntary military service, within or without the United States, during any war service period: Provided, however Provided further And provided further 42 U.S.C. 301 And provided further (3) The years of service of an individual who was an employee on August 29, 1935 January 1, 1937 Provided, however December 31, 1936 August 29, 1935 January 1, 1937 December 31, 1936 December 31, 1936 January 1, 1937 (4) Where for any calendar year after 1984 an individual has performed service for compensation in less than twelve months of the calendar year but has received compensation in excess of an amount determined by multiplying the number of months in the year in which such individual performed service for compensation by an amount equal to one-twelfth of the current maximum annual taxable wages as defined in section 3121 of the Internal Revenue Code of 1986 [ 26 U.S.C. 3121 (j) Average monthly compensation The average monthly compensation shall be computed in the manner specified in subsection (b) of this section, except (1) that with respect to service prior to January 1, 1937 Provided, however 1 1 July 1, 1954 June 30, 1954 June 1, 1959 May 31, 1959 November 1, 1963 October 31, 1963 October 1, 1965 26 U.S.C. 3121 September 30, 1965 June 30, 1937 section 231h of this title (k) Employee representatives The annuity of an individual who shall have been an employee representative shall be determined in the same manner and with the same effect as if the employee organization by which he shall have been employed were an employer. (l) Reductions for increased annuities (1) Except as provided in subdivision (2) of this subsection, if an annuity awarded under section 231a(a)(1)(iii) of this title section 231a(c)(2) of this title section 231a(c)(2) of this title (2) The reduction required under section 231a(a)(1)(iii) or section 231a(c)(2) of this title section 231c of this title Public Law 93445 October 1, 1981 section 231c of this title section 206 of Public Law 93445 (m) Reductions due to monthly social security payments The annuity of any individual under subsection (a) of this section for any month shall, after any reduction pursuant to paragraph (iii) of section 231a(a)(1) of this title 42 U.S.C. 401 ( Aug. 29, 1935, ch. 812,  3 June 24, 1937, ch. 382 50 Stat. 307 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1319 Pub. L. 95216, title III,  358(a) Dec. 20, 1977 91 Stat. 1556 Pub. L. 96582,  1 Dec. 23, 1980 94 Stat. 3374 Pub. L. 9735, title XI,  1118 Aug. 13, 1981 95 Stat. 630 Pub. L. 9876, title I Aug. 12, 1983 97 Stat. 411 Pub. L. 99514,  2 Oct. 22, 1986 100 Stat. 2095 Pub. L. 10790, title I Dec. 21, 2001 115 Stat. 879  Editorial Notes  References in Text The Social Security Act, referred to in subsecs. (a)(1), (f), (g), (h)(1) to (5), (i)(2), and (m), is act Aug. 14, 1935, ch. 531 49 Stat. 620 section 1305 of Title 42 The Railroad Retirement Act of 1937, referred to in subsec. (f)(2), is act Aug. 29, 1935, ch. 812 49 Stat. 867 act June 24, 1937, ch. 382, part I 50 Stat. 307 Pub. L. 93445, title I Oct. 16, 1974 88 Stat. 1305 Section 3 of the Railroad Retirement Act of 1937, referred to in subsec. (f)(2), which was classified to section 228c of this title Sections 204 and 206 of Public Law 93445 Oct. 16, 1974 88 Stat. 1352 l section 231 of this title Amendments 2001Subsec. (a)(2). Pub. L. 10790,  102(a) section 231a(a)(1)(ii) of this title l Subsec. (a)(3). Pub. L. 10790,  103(b) Pub. L. 10790,  102(c) section 231a(a)(1) of this title (i) for each month prior to the first month throughout which the individual is age 62, the amount (after any reduction on account of age but before any deductions on account of work) of the old-age insurance benefit to which such individual would have been entitled under the Social Security Act as of the date on which such individuals annuity begins to accrue if such individual had attained age 62 on the first day of the month in which his or her annuity begins to accrue and if all of such individuals service as an employee after December 31, 1936 (ii) for months beginning with the first month throughout which the individual is age 62, the amount (after any reduction on account of age but before any deductions on account of work) of the old-age insurance benefit to which such individual would have been entitled under the Social Security Act if all of such individuals service as an employee after December 31, 1936 Subsec. (f). Pub. L. 10790,  104(a)(1) section 231a(a)(1) of this title section 231a(a)(1) of this title section 231a(a)(1) of this title Provided, however section 231a(a)(1) of this title section 231(h) of this title Provided, however 1986Subsecs. (f)(1), (2), (i)(4), (j). Pub. L. 99514 1983Subsec. (a)(2). Pub. L. 9876,  101(a)(1) section 231a(a)(1) of this title section 231a(a)(1) of this title Subsec. (a)(3). Pub. L. 9876,  101(a)(2) Subsec. (f)(1). Pub. L. 9876,  404(1) Pub. L. 9876,  404(2) Subsec. (f)(3). Pub. L. 9876,  405(a) Subsec. (g). Pub. L. 9876,  102(a) section 231a(a)(1) of this title Subsec. (i)(4). Pub. L. 9876,  107(a) Subsec. (j). Pub. L. 9876,  107(b) 1981Subsec. (b). Pub. L. 9735,  1118(a) Subsec. (c). Pub. L. 9735,  1118(b) section 231a(a)(1) of this title Dec. 31, 1974 Subsec. (d). Pub. L. 9735,  1118(b) Subsec. (f)(1). Pub. L. 9735,  1118(c)(2) section 231a(a)(1) of this title section 231a(a)(1) of this title Pub. L. 9735,  1118(c)(1) Subsec. (g). Pub. L. 9735,  1118(d) Subsec. (h)(1) to (4). Pub. L. 9735,  1118(e)(1) Subsec. (h)(5). Pub. L. 9735,  1118(e)(2) January 1, 1975 section 231a(a)(1) of this title January 1, 1982 January 1, 1975 section 231a(a)(1) of this title Subsec. (h)(6). Pub. L. 9735,  1118(e)(3) Subsec. (j). Pub. L. 9735,  1118(f) Subsec. ( l Pub. L. 9735,  1118(g) section 231a(c)(2) of this title section 231a(c)(2) of this title section 231a(c)(2) of this title Subsec. (m). Pub. L. 9735,  1118(h)(2) Pub. L. 9735,  1118(h)(1) section 231a(a)(1) of this title 1980Subsec. (g). Pub. L. 96582 1977Subsec. (f)(1). Pub. L. 95216 Statutory Notes and Related Subsidiaries Effective Date of 2001 Amendment Amendment by section 102 of Pub. L. 10790 Jan. 1, 2002 section 231c(a) of this title section 102(d) of Pub. L. 10790 section 231c of this title Amendment by section 103(b) of Pub. L. 10790 Jan. 1, 2002 section 103(j) of Pub. L. 10790 section 405 of Title 42 Pub. L. 10790, title I,  104(c) Dec. 21, 2001 115 Stat. 882 The amendments made by this section [amending this section and sections 231c and 231f of this title] shall take effect on January 1, 2002 Effective Date of 1983 Amendment Pub. L. 9876, title I,  101(c) Aug. 12, 1983 97 Stat. 412 The amendments made by this section [amending sections 231b and 231c of this title] shall become effective on July 1, 1984 45 U.S.C. 231a(a)(1) January 1, 1986 45 U.S.C. 231c(a)(3) Pub. L. 9876, title I,  102(d) Aug. 12, 1983 97 Stat. 415 The amendments made by this section [amending sections 231b and 231c of this title] shall be effective on the date of the enactment of this Act [ Aug. 12, 1983 October 1, 1981 Pub. L. 9876, title I,  107(c) Aug. 12, 1983 97 Stat. 419 The amendments made by this section [amending this section] shall become effective on January 1, 1985 Pub. L. 9876, title IV,  404(c) Aug. 12, 1983 97 Stat. 435 The amendments made by this section [amending this section] shall be effective October 1, 1983 Pub. L. 9876, title IV,  405(b) Aug. 12, 1983 97 Stat. 435 The amendments made by this section [amending this section] shall be effective October 1, 1981 Effective Date of 1981 Amendment Amendment by section 1118(a), (d) of Pub. L. 9735 Oct. 1, 1981 July 1, 1981 Pub. L. 9735 Oct. 1, 1981 section 1118(c)(2) of Pub. L. 9735 Jan. 1, 1975 section 1118(e)(3) of Pub. L. 9735 Aug. 31, 1981 section 1118(h)(2) of Pub. L. 9735 Jan. 1, 1982 section 1118 of Pub. L. 9735 Oct. 1, 1981 Oct. 1, 1981 section 1129 of Pub. L. 9735 section 231 of this title Effective Date of 1980 Amendment Pub. L. 96582,  3 Dec. 23, 1980 94 Stat. 3374 The provisions of this Act [amending this section] shall take effect on the date of the enactment of this Act [ Dec. 23, 1980 Effective Date of 1977 Amendment Pub. L. 95216, title III,  358(b) Dec. 20, 1977 91 Stat. 1556 The amendments made by this section [amending this section] shall be effective January 1, 1978  231c. Computation of spouse and survivor annuities (a) Amount of spouses annuities; age (1) The annuity of a spouse or divorced wife of an individual under section 231a(c) of this title 42 U.S.C. 301 December 31, 1936 (2) For purposes of this subsection, a spouse entitled to an annuity under section 231a(c)(1)(ii)(B) of this title l 42 U.S.C. 416 l 1 1 (3) If a spouse entitled to an annuity under section 231a(c)(1)(ii)(A), section 231a(c)(1)(ii)(C), or section 231a(c)(2) of this title section 231a(c)(4) of this title 42 U.S.C. 402(a) section 231a(c)(4) of this title (b) Increases in spouses annuities in accordance with section 231b(b), (c), (d) of this title The amount of the annuity of a spouse of an individual provided under subsection (a) of this section shall be increased by an amount equal to 45 per centum of that portion of the individuals annuity as is computed under subsection (b) of section 231b of this title Provided, however 45 U.S.C. 228b(e) 45 U.S.C. 228c(a)(2) January 1, 1975 Provided further section 231a(a)(1) of this title 2 2 section 231a(c) of this title section 231a(a)(1) of this title (c) Repealed. Pub. L. 10790, title I,  104(b) Dec. 21, 2001 115 Stat. 882 (d) Increases in spouses annuities in accordance with section 231b(g) of this title (1) That portion of the annuity of the spouse of an individual as is determined under subsection (b) and (c) of this section shall be increased by the same percentage, or percentages, as the individuals annuity is, or has been, increased pursuant to the provisions of section 231b(g)(1) of this title (2) That portion of the annuity of the spouse of an individual as is determined under subsection (b) of this section prior to any determination under subsection (c) of this subsection 3 3 section 231b(g)(2) of this title (3) The first and, if necessary, the following time or times after January 1, 1983 42 U.S.C. 402 section 231a(c) of this title 42 U.S.C. 301 (e) Increases in particular spouses annuities (1) The amount of the annuity of the spouse of an individual determined under subsections (a) and (b) of this section, if (A) such individual will have (i) rendered service as an employee to an employer, or as an employee representative, during the calendar year 1974, or (ii) had a current connection with the railroad industry on December 31, 1974 section 231a(a)(1) of this title January 1, 1975 January 1, 1975 42 U.S.C. 301 December 31, 1974 December 31, 1974 January 1, 1975 December 31, 1974 December 31, 1936 January 1, 1975 Provided, however section 231b(h)(1) of this title section 231b(h)(5) of this title (2) The amount of the annuity of the spouse of an individual determined under subsections (a) and (b) of this section, if (A) such individual will not have met the conditions set forth in subclause (i), (ii), or (iii) of clause (A) of subdivision (1) of this subsection, but (B) such individual will have completed ten years of service prior to January 1, 1975 42 U.S.C. 301 December 31, 1974 December 31, 1974 December 31, 1936 January 1, 1975 Provided, however section 231b(h)(2) of this title section 231b(h)(5) of this title (3) The amount of the annuity of the spouse of an individual determined under subsections (a) and (b) of this section, if (A) such individual is entitled to an amount determined under the provisions of section 231b(h)(1) or 231b(h)(2) of this title and (B) such spouse is not entitled to an amount determined under the provisions of subdivision (1) or (2) of this subsection, shall be increased by an amount equal to 50 per centum of the portion of the annuity of such individual determined under the provisions of section 231b(h)(1) or 231b(h)(2) of this title prior to any increases under the provisions of section 231b(h)(5) of this title (4) The amount determined under the provisions of subdivision (1), (2), or (3) of this subsection shall be increased by the same percentage or percentages, as wifes and husbands insurance benefits under section 202 of the Social Security Act [ 42 U.S.C. 402 42 U.S.C. 301 42 U.S.C. 415(i) January 1, 1975 section 231a(a)(1) of this title January 1, 1982 (5) No amount shall be payable to a person under subdivision (1), (2), or (3) of this subsection unless the entitlement of such person to such amount had been determined prior to August 13, 1981 (f) Amount of survivors annuities; age; entitlement (1) The annuity of a survivor of a deceased employee under section 231a(d) of this title 42 U.S.C. 301 December 31, 1936 section 231a(d) of this title January 1, 1937 42 U.S.C. 415(a) December 31, 1974 42 U.S.C. 402(k) (2) For purposes of this subsection (i) a widow or widower or a parent who is entitled to an annuity based on age under section 231a(d)(1) of this title Provided, however section 231a(d)(1) of this title (ii) a widow or widower or a child who is entitled to an annuity under section 231a(d)(1) of this title 42 U.S.C. 301 (iii) The 4 4 section 231a(d)(1)(v) of this title (3) The annuity amount provided to a widow or widower under last sentence of subdivision (1) shall be increased by the same percentage or percentages as insurance benefits payable under section 202 of the Social Security Act [ 42 U.S.C. 402 (g) Increases in survivors annuities in accordance with subsection (f) (1) The amount of the annuity provided under subsection (f)(1) (other than the last sentence thereof) for a survivor of a deceased individual shall be increased by an amount equal to the appropriate one of the following percentages of that portion of the annuity computed under section 231b(b) of this title section 231b(g)(2) of this title section 231a(d) of this title section 231a(a)(1) of this title section 231a(a)(1) of this title (i) In the case of a widow or widower, the increase shall be equal to 50 per centum of such portion of the deceased individuals annuity, but the amount of the annuity so determined shall be subject to reduction on account of age in the same manner as is applicable to the annuity amount determined for the widow or widower under subsection (f) and shall be subject to increase as provided in subdivision (4) of this subsection. (ii) In the case of a parent, the increase shall be equal to 35 per centum of such portion of the deceased individuals annuity. (iii) In the case of a child, the increase shall be equal to 15 per centum of such portion of the deceased individuals annuity. (2) Whenever the total amount of the increases based on the deceased individuals portion of the annuity under section 231b(b) of this title (i) less than an amount equal to 35 per centum of such portion of the deceased individuals annuity, the total increase shall, before any deductions under section 231a(g) of this title (ii) more than an amount equal to 80 per centum of such portion of the deceased individuals annuity, the total increase shall, before any deductions under section 231a(g) of this title (3) An annuity determined under this subsection for a month prior to the month in which application is filed, shall be reduced to any extent that may be necessary so that it will not render erroneous any annuity which, before the filing of such application, the Board has certified for payment for such prior month. (4) If a widow or widower of a deceased employee is entitled to an annuity under section 231a(a)(1) of this title January 1, 1975 45 U.S.C. 228e(a) December 31, 1974 45 U.S.C. 228c(e) January 1, 1975 42 U.S.C. 402 January 1, 1975 section 231a(a)(1) of this title section 231a(d)(1) of this title section 231a(a)(1) of this title section 231a(d)(1) of this title section 231a(a)(1) of this title 42 U.S.C. 301 section 231a(a)(1) of this title (5) This subsection shall not apply to the annuity of a widow, surviving divorced wife, or surviving divorced mother who is entitled to such annuity on the basis of the provisions of section 231a(d)(1)(v) of this title (6) That portion of the annuity of a survivor of an individual determined under subdivisions (1) and (2) of this subsection shall be increased whenever, and by the same percentage or percentages as, the annuity of the individual would have been increased pursuant to section 231b(g)(1) of this title (7) The first and, if necessary, the following time or times after January 1, 1983 42 U.S.C. 402 section 1119(g) of Public Law 9735 section 231a(d) of this title 42 U.S.C. 301 (8) That portion of the annuity of a survivor of a deceased individual as is determined under subdivisions (1) and (2) of this subsection shall, if the annuity of such survivor is not subject to reduction under subdivision (7) of this subsection, be reduced by an amount equal to the dollar amount by which the annuity of the deceased individual was reduced under section 231b(g)(2) of this title section 231b(g)(2) of this title section 231a(d) of this title section 231a(a)(1) of this title section 231a(a)(1) of this title 42 U.S.C. 301 section 231b(g)(2) of this title section 231b(m) of this title (9) That portion of the annuity of a survivor of a deceased individual as is determined under this subsection as in effect before amendment by section 1119(g) of Public Law 9735 section 231b(g)(2) of this title 42 U.S.C. 301 section 231b(g)(2) of this title section 231b(m) of this title (10) (i) If for any month the unreduced annuity provided under this section for a widow or widower is less than the widows or widowers initial minimum amount computed pursuant to paragraph (ii) of this subdivision, the unreduced annuity shall be increased to that initial minimum amount. For the purposes of this subdivision, the unreduced annuity is the annuity without regard to any deduction on account of work, without regard to any reduction for entitlement to an annuity under section 231a(a)(1) of this title 42 U.S.C. 401 5 5 (ii) For the purposes of this subdivision, the widow or widowers initial minimum amount is the amount of the unreduced annuity computed at the time an annuity is awarded to that widow or widower, except that (A) in subsection (g)(1)(i) 100 per centum shall be substituted for 50 per centum; and (B) in subsection (g)(2)(ii) 130 per centum shall be substituted for 80 per centum both places it appears. (iii) If a widow or widower who was previously entitled to a widows or widowers annuity under section 231a(d)(1)(ii) of this title section 231a(d)(1)(i) of this title section 231a(d)(1)(i) of this title (h) Increases in particular widows and widowers annuities (1) The amount of the annuity of the widow or widower of a deceased employee determined under subsections (f) and (g) of this section, if such deceased employee will have completed ten years of service prior to January 1, 1975 42 U.S.C. 301 6 6 December 31, 1974 45 U.S.C. 228e(a) December 31, 1974 45 U.S.C. 228c(e) January 1, 1975 42 U.S.C. 402 January 1, 1975 January 1, 1982 section 231a(d)(1) of this title section 231a(d)(1) of this title Provided, however section 231a(d)(1) of this title (2) Subdivision (1) of this subsection shall not apply to the annuity of a widow, surviving divorced wife, or surviving divorced mother who is entitled to such annuity on the basis of the provisions of section 231a(d)(1)(v) of this title August 13, 1981 (i) Reductions in survivors annuities (1) The annuity of any spouse or divorced wife under subsection (a) of this section for any month shall, after a reduction pursuant to section 231a(c)(2) of this title 42 U.S.C. 401 (2) If a spouse or divorced wife entitled to an annuity under section 231a(c) of this title section 231a(d) of this title section 231a(a)(1) of this title section 231b(a) of this title (3) The annuity of any survivor under subsection (f) of this section shall be reduced, but not below zero, by the amount of any insurance benefit (before any deduction on account of work) payable to such survivor under title II of the Social Security Act [ 42 U.S.C. 401 42 U.S.C. 402(k) ( Aug. 29, 1935, ch. 812,  4 June 24, 1937, ch. 382 50 Stat. 307 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1327 Pub. L. 94547,  2(a) Oct. 18, 1976 90 Stat. 2524 Pub. L. 9735, title XI Aug. 13, 1981 95 Stat. 632 Pub. L. 9876, title I Aug. 12, 1983 97 Stat. 411 Pub. L. 10790, title I Dec. 21, 2001 115 Stat. 878  Editorial Notes  References in Text The Social Security Act, referred to in subsecs. (a)(1), (d)(3), (e)(1), (2), (4), (f)(1), (2)(ii), (g)(4), (7) to (10), (h)(1), and (i)(1), (3), is act Aug. 14, 1935, ch. 531 49 Stat. 620 section 402 of Title 42 Pub. L. 108203, title IV,  418(b)(3)(B) Mar. 2, 2004 118 Stat. 532 section 1305 of Title 42 The Social Security Amendments of 1965, referred to in subsec. (b), is Pub. L. 8997 July 30, 1965 79 Stat. 286 section 1305 of Title 42 The Social Security Amendments of 1967, referred to in subsec. (b), is Pub. L. 90248 Jan. 2, 1968 81 Stat. 821 section 1305 of Title 42 The Social Security Amendments of 1969, referred to in subsec. (b), is title X of Pub. L. 91172 Dec. 30, 1969 83 Stat. 737 section 1305 of Title 42 Sections 2, 3, and 5 of the Railroad Retirement Act of 1937, referred to in subsecs. (b), (g)(4), and (h)(1), which were classified to sections 228b, 228c, and 228e of this title, have been omitted from the Code. Section 1119(g) of Public Law 9735 Amendments 2001Subsec. (a)(2). Pub. L. 10790,  102(b) section 231a(c)(1)(ii)(B) of this title section 231a(a)(1) of this title section 231a(c)(1) of this title Subsec. (a)(3). Pub. L. 10790,  103(e) Pub. L. 10790,  102(c) section 231a(a)(1)(ii) of this title section 231a(c) of this title (i) for each month prior to the first month throughout which both the individual and the spouse are age 62, 50 per centum of that portion of the individuals annuity as is, or was prior to such individuals attaining age 62, computed under section 231b(a)(3)(i) of this title (ii) for months beginning with the first month throughout which both the individual and the spouse are age 62, the amount (after any reduction on account of age based on the spouses age at the time the amount under this paragraph first becomes payable but before any deductions on account of work) of the wifes insurance benefit or the husbands insurance benefit to which such spouse would have been entitled under the Social Security Act if the individuals service as an employee after December 31, 1936 Subsec. (a)(4). Pub. L. 10790,  102(c) section 231a(a)(1) of this title section 231a(c)(1)(ii)(B) of this title December 31, 1936 Subsec. (c). Pub. L. 10790,  104(b) section 231a(a)(1) of this title section 231b(f)(1) of this title section 231a(a)(1) of this title section 231b(f)(1) of this title section 231a(a)(1) of this title section 231b(f)(1) of this title section 231b(f)(1) of this title section 231b of this title section 231a(a)(1) of this title section 231b(f)(1) of this title Subsec. (g)(10). Pub. L. 10790,  101(a) 1983Subsec. (a)(2). Pub. L. 9876,  106(h) l Pub. L. 9876,  101(b)(1) section 231a(a)(1) of this title Subsec. (a)(3), (4). Pub. L. 9876,  101(b)(2) Subsec. (d). Pub. L. 9876,  102(b) Subsec. (g)(1). Pub. L. 9876,  102(c)(1) section 231b(g)(2) of this title Subsec. (g)(4). Pub. L. 9876,  406(a) Subsec. (g)(6). Pub. L. 9876,  102(c)(2) Subsec. (g)(7) to (9). Pub. L. 9876,  102(c)(3) Subsec. (i)(3). Pub. L. 9876,  407(a) 1981Subsec. (a)(1). Pub. L. 9735,  1119(a) Subsec. (b). Pub. L. 9735,  1119(b)(1) Pub. L. 9735,  1119(b)(2) Pub. L. 9735,  1119(b)(3) section 231a(a)(1) of this title section 231a(a)(1) of this title Pub. L. 9735,  1119(b)(4) Pub. L. 9735,  1119(b)(5) section 231a(c) of this title section 231a(a)(1) of this title Subsec. (c). Pub. L. 9735,  1119(c) Subsec. (e)(4). Pub. L. 9735,  1119(d)(1) section 231a(a)(1) of this title January 1, 1982 section 231a(a)(1) of this title Subsec. (e)(5). Pub. L. 9735,  1119(d)(2) Subsec. (f)(1). Pub. L. 9735,  1119(e)(1) section 231a(d) of this title Jan. 1, 1937 December 31, 1974 Subsec. (f)(2)(iii). Pub. L. 9735,  1119(f) Subsec. (f)(3). Pub. L. 9735,  1119(e)(2) Subsec. (g). Pub. L. 9735,  1119(g) Subsec. (h). Pub. L. 9735,  1119(h)(1) Subsec. (h)(1). Pub. L. 9735,  1119(h)(2) January 1, 1975 January 1, 1982 January 1, 1975 Pub. L. 9735,  1119(h)(3) Subsec. (i)(1). Pub. L. 9735,  1119(i)(1) Pub. L. 9735,  1119(i)(2) section 231a(c)(2) of this title Pub. L. 9735,  1119(i)(3) Pub. L. 9735,  1119(i)(4) Subsec. (i)(2). Pub. L. 9735,  1119(i)(1) 1976Subsec. (g). Pub. L. 94547,  2(a) section 231a(a)(1) of this title Jan. 1, 1975 Dec. 31, 1974 Jan. 1, 1975 Jan. 1, 1975 section 231a(a)(1) of this title section 231a(d)(1) of this title section 231a(a)(1) of this title section 231a(d)(1) of this title Subsec. (h). Pub. L. 94547,  2(b) Jan. 1, 1975 Statutory Notes and Related Subsidiaries Effective Date of 2001 Amendment Pub. L. 10790, title I,  101(b) Dec. 21, 2001 115 Stat. 879  (1)  In general The amendment made by this section [amending this section] shall take effect on the first day of the first month that begins more than 30 days after enactment [ Dec. 21, 2001 (A) on or after that date; and (B) before that date, but only if the annuity amount under section 4(g) of the Railroad Retirement Act of 1974 ( 45 U.S.C. 231c(g) Public Law 9735 95 Stat. 357 (2)  Special rule for annuities awarded before the effective date In applying the amendment made by this section to annuities awarded before the effective date, the calculation of the initial minimum amount under new section 4(g)(10)(ii) of the Railroad Retirement Act of 1974 ( 45 U.S.C. 231c(g)(10)(ii) Pub. L. 10790, title I,  102(d) Dec. 21, 2001 115 Stat. 879  (1)  Generally Except as provided in paragraph (2), the amendments made by this section [amending this section and section 231b of this title January 1, 2002 (2)  Exception The amount of the annuity provided for a spouse under section 4(a) of the Railroad Retirement Act of 1974 ( 45 U.S.C. 231c(a) December 31, 2001 45 U.S.C. 231b(a) December 31, 2001 Amendment by section 103(e) of Pub. L. 10790 Jan. 1, 2002 section 103(j) of Pub. L. 10790 section 405 of Title 42 Amendment by section 104(b) of Pub. L. 10790 Jan. 1, 2002 section 104(c) of Pub. L. 10790 section 231b of this title Effective Date of 1983 Amendment Amendment by section 101(b) of Pub. L. 9876 July 1, 1984 section 101(c) of Pub. L. 9876 section 231b of this title Amendment by section 102(b), (c) of Pub. L. 9876 Aug. 12, 1983 section 102(d) of Pub. L. 9876 section 231b of this title Amendment by section 106(h) of Pub. L. 9876 Aug. 12, 1983 section 106(k) of Pub. L. 9876 section 231a of this title Pub. L. 9876, title IV,  406(b) Aug. 12, 1983 97 Stat. 435 The amendments made by this section [amending this section] shall be effective October 1, 1981 Pub. L. 9876, title IV,  407(b) Aug. 12, 1983 97 Stat. 435 The amendment made by this section [amending this section] shall be effective with respect to annuities awarded on and after the date of enactment [ Aug. 12, 1983 Effective Date of 1981 Amendment Amendment by section 1119(b)(5), (c), (h)(3), (i)(3) of Pub. L. 9735 Jan. 1, 1975 section 1119(b)(1) of Pub. L. 9735 Oct. 1, 1981 Pub. L. 9735 Aug. 13, 1981 section 1119(i)(4) of Pub. L. 9735 Jan. 1, 1982 section 1119 of Pub. L. 9735 Oct. 1, 1981 Oct. 1, 1981 section 1129 of Pub. L. 9735 section 231 of this title Effective Date of 1976 Amendment Pub. L. 94547,  2(c) Oct. 18, 1976 90 Stat. 2525 The amendments made by this section [amending this section] shall be effective with respect to annuities accruing for months after the month in which this Act is enacted [October, 1976]: Provided, however  231d. Annuity beginning and ending dates (a) Annuities under section 231a of this title Subject to the limitations set forth below, an annuity under section 231a of this title (i) not earlier than the date specified in the application therefor; (ii) in the case of an applicant otherwise entitled to an annuity under paragraph (iv) or (v) of section 231a(a)(1) of this title section 231a(d)(1)(i) of this title (iii) in the case of an applicant otherwise entitled to an annuity under section 231a(a)(1), 231a(c), or 231a(d) of this title where paragraph (ii) does not apply, not earlier than the latest of (A) the first day of the sixth month before the month in which the application therefor was filed, (B) the first day of the month in which the application therefor was filed if the effect of beginning such annuity in an earlier month would result in a greater age reduction in the annuity, unless beginning the annuity in the earlier month would enable an annuity under section 231a(c) of this title (iv) in the case of an applicant otherwise entitled to an annuity under section 231a(c)(4) or (d)(1)(v) of this title, not earlier than the month an annuity would begin to accrue to such individual under such section if section 202(j)(1) and section 202(j)(4) of the Social Security Act [ 42 U.S.C. 402(j)(1) 1 1 (v) an annuity amount provided by section 231b(h)(1) or 231b(h)(2) of this title shall not be paid to an individual otherwise eligible therefor for any month before the month such individual would be entitled, upon filing an application therefor, to an old-age insurance benefit or a disability insurance benefit under title II of the Social Security Act [ 42 U.S.C. 401 section 231b(h)(4) of this title 2 2 (vi) an annuity amount provided by section 231c(e)(1) or 231c(e)(2) of this title shall not be paid to a spouse otherwise eligible therefor for any month prior to the month such spouse would be entitled, upon filing an application therefor, to an old-age or disability insurance benefit under title II of the Social Security Act [ 42 U.S.C. 401 (vii) an annuity amount provided by section 231c(e)(3) of this title 42 U.S.C. 401 For the purpose of determining annuity amounts provided under sections 231b(a), 231c(a), and 231c(f) of this title, the provisions with respect to the beginning dates of annuities set forth in this subsection shall be deemed to govern the beginning dates of monthly benefits provided under the Social Security Act [ 42 U.S.C. 301 (b) Applications for payment An application for any payment under this subchapter shall be made and filed in such manner and form as the Board may prescribe. An application filed with the Board for an employee annuity, spouse annuity, or divorced spouse annuity on the basis of the employment record of an employee who will have completed less than ten years of service shall be deemed to be an application for any benefit to which such applicant may be entitled under this subchapter or section 202(a), section 202(b), or section 202(c) of the Social Security Act [ 42 U.S.C. 402(a) 42 U.S.C. 401 section 231a(a)(1) of this title l 42 U.S.C. 416 l section 231a(a)(1) of this title l section 231a(d)(1) of this title section 231a(d)(1) of this title (c) Individuals entitlement (1) An individuals entitlement to an annuity under paragraph (i), (ii), or (iii) of section 231a(a)(1) of this title section 231a(b) of this title (2) An individuals entitlement to an annuity under paragraph (iv) or (v) of section 231a(a)(1) of this title l 42 U.S.C. 416 l (3) The entitlement of a spouse of an individual to an annuity under section 231a(c) of this title section 231a(c)(1) of this title section 231a(c)(2) of this title section 231a(c)(1) of this title section 231a(c) of this title (4) The entitlement of a widow or widower of a deceased employee to an annuity under paragraph (i) of section 231a(d)(1) of this title (5) The entitlement of a widow or widower of a deceased employee to an annuity under paragraph (i) of section 231a(d)(1) of this title (6) The entitlement of a widow of a deceased employee to an annuity under paragraph (ii) of section 231a(d)(1) of this title (7) The entitlement of a child of a deceased employee to an annuity under paragraph (iii) of section 231a(d)(1) of this title section 231a(d)(1) of this title section 231a(d)(1) of this title (8) The entitlement of a parent of a deceased employee to an annuity under paragraph (iv) of section 231a(d)(1) of this title (9) No annuity shall accrue with respect to the calendar month in which an annuitant dies. In cases where an individual entitled to an annuity under this subchapter disappears, no annuity shall accrue to that individual with respect to any month until and unless such individual is shown, by evidence satisfactory to the Board, to have continued in life throughout such month, but (A) where an annuity would accrue for such month under section 231a(a)(1) of this title section 231a(c) of this title section 231a(d) of this title section 231a(a)(1) of this title section 231a(c) of this title section 231a(c) of this title (B) if such individual is later determined to have been alive during any of such months, recovery of any benefits paid on the basis of such individuals compensation under section 231a(d) of this title l For purposes of the payment of benefits under this subchapter, the death of an individual shall be presumed based on such individuals unexplained absence of not less than seven years, except that whenever the death of an individual is so established, such individual shall be deemed to have died in the month in which such individual disappeared. ( Aug. 29, 1935, ch. 812,  5 June 24, 1937, ch. 382 50 Stat. 307 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1332 Pub. L. 9735, title XI,  1120 Aug. 13, 1981 95 Stat. 636 Pub. L. 9876, title I Aug. 12, 1983 97 Stat. 415 Pub. L. 10790, title I,  103(f) Dec. 21, 2001 115 Stat. 881 Pub. L. 109280, title X,  1003(a) Aug. 17, 2006 120 Stat. 1053 Pub. L. 110458, title I,  110(a)(2) Dec. 23, 2008 122 Stat. 5112  Editorial Notes  References in Text The Social Security Act, referred to in subsecs. (a) and (b), is act Aug. 14, 1935, ch. 531 49 Stat. 620 section 1305 of Title 42 Amendments 2008Subsec. (d). Pub. L. 110458 section 231b(b) of this title 2006Subsec. (d). Pub. L. 109280 2001Subsec. (b). Pub. L. 10790 1983Subsec. (a). Pub. L. 9876,  103(a)(1) Pub. L. 9876,  103(a)(3) Subsec. (a)(ii). Pub. L. 9876,  103(a)(2) section 231a(a)(1) of this title section 231a(d)(1)(i) of this title Subsec. (a)(iii). Pub. L. 9876,  103(a)(2) Subsec. (b). Pub. L. 9876,  106(i) l Subsec. (c)(2). Pub. L. 9876,  106(j) l Subsec. (c)(7)(D)(i). Pub. L. 9876,  104(c)(1) Subsec. (c)(7)(D)(ii). Pub. L. 9876,  104(c)(2) 1981Subsec. (a)(iv) to (vii). Pub. L. 9735,  1120(a) Subsec. (b). Pub. L. 9735,  1120(b) Subsec. (c)(3). Pub. L. 9735,  1120(c) Subsec. (c)(9). Pub. L. 9735,  1120(d) Statutory Notes and Related Subsidiaries Effective Date of 2008 Amendment Pub. L. 110458, title I,  110(b)(2) Dec. 23, 2008 122 Stat. 5112 The amendment made by subsection (a)(2) [amending this section] shall take effect upon the date of the enactment of this Act [ Dec. 23, 2008 Effective Date of 2006 Amendment Pub. L. 109280, title X,  1003(b) Aug. 17, 2006 120 Stat. 1053 The amendment made by this section [amending this section] shall take effect 1 year after the date of the enactment of this Act [ Aug. 17, 2006 Effective Date of 2001 Amendment Amendment by Pub. L. 10790 Jan. 1, 2002 section 103(j) of Pub. L. 10790 section 405 of Title 42 Effective Date of 1983 Amendment Pub. L. 9876, title I,  103(b) Aug. 12, 1983 97 Stat. 416 The amendments made by this section [amending this section] shall become effective on the first day of the first month beginning after the date of the enactment of this Act [ Aug. 12, 1983 Amendment by section 104(c) of Pub. L. 9876 section 104(d) of Pub. L. 9876 section 231a of this title Amendment by section 106(i), (j) of Pub. L. 9876 Aug. 12, 1983 section 106(k) of Pub. L. 9876 section 231a of this title Effective Date of 1981 Amendment Amendment by section 1120(a), (d) of Pub. L. 9735 Jan. 1, 1975 section 1120(b) of Pub. L. 9735 Oct. 1, 1981 section 1120 of Pub. L. 9735 Oct. 1, 1981 Oct. 1, 1981 section 1129 of Pub. L. 9735 section 231 of this title  231e. Lump sum payments (a) Eligible annuities; applications; reversion; determination of status of recipient (1) Annuities under section 231a(a)(1) of this title section 231a(b) of this title (2) Annuities under section 231a(d) of this title (3) Annuities under section 231a(c) of this title (4) Applications for accrued and unpaid annuities provided for in the preceding subdivisions of this subsection shall be filed prior to the expiration of two years after the death of the person to whom such annuities were originally due. (5) If there is no person to whom all or any part of the payments described in subdivision (1), (2), or (3) can be made, such payment or part thereof shall escheat to the credit of the Railroad Retirement Account. (6) For the purposes of this subsection and subsection (c) of this section, a widow or widower of an individual shall be deemed to have been living with the individual at the time of the individuals death if the applicable conditions set forth in section 216(h)(2) or (3) of the Social Security Act [ 42 U.S.C. 416(h)(2) (7) In determining for purposes of this subsection and subsections (c) and (d) of this section whether an applicant is the widow, widower, child, or parent of an employee as claimed, the rules set forth in section 216(h) of the Social Security Act [ 42 U.S.C. 416(h) (b) Payments in accordance with Railroad Retirement Act of 1937 and Social Security Act (1) Upon the death of an individual who will have completed ten years of service prior to January 1, 1975 45 U.S.C. 228e(f)(1) December 31, 1974 December 31, 1936 January 1, 1975 42 U.S.C. 409 January 1, 1975 January 1, 1975 section 231a(d) of this title (2) Upon the death of an individual who will not have completed ten years of service prior to January 1, 1975 December 31, 1995 section 231a(d) of this title 42 U.S.C. 402(i) December 31, 1936 section 231a(d) of this title (c) Payments in the absence of further benefits (1) Whenever it shall appear, with respect to the death of an employee, that no benefits, or no further benefits (other than benefits payable to a widow, widower, or parent under either this subchapter or the Social Security Act [ 42 U.S.C. 301 (i) the widow or widower of the deceased employee who was living with such employee at the time of such employees death; or (ii) if there be no such widow or widower, to any child or children of such employee; or (iii) if there be no such widow, widower, or child, to any grandchild or grandchildren of such employee; or (iv) if there be no such widow, widower, child, or grandchild, to any parent or parents of such employee; or (v) if there be no such widow, widower, child, grandchild, or parent, to any brother or sister of such employee; or (vi) if there be no such widow, widower, child, grandchild, parent, brother, or sister, to the estate of such employee: Provided, however section 231(a) of this title section 231(c) of this title 42 U.S.C. 401 (2) The lump sum provided under subdivision (1) of this subsection shall be in an amount equal to (A) the sum of 4 per centum of the deceased employees compensation paid after December 31, 1936 January 1, 1947 December 31, 1946 January 1, 1959 December 31, 1958 January 1, 1962 December 31, 1961 January 1, 1966 December 31, 1965 January 1, 1975 26 U.S.C. 3201 26 U.S.C. 3101(b) June 30, 1963 January 1, 1975 26 U.S.C. 3211 45 U.S.C. 228a 42 U.S.C. 301 section 231f(d) of this title 45 U.S.C. 228s2 section 231a(b) of this title 45 U.S.C. 228c(j) section 231b(a) of this title section 231c(a) of this title section 231b(h) of this title section 231c(e) of this title section 231(b) of this title July 1, 1954 June 30, 1954 June 1, 1959 May 31, 1959 November 1, 1963 October 31, 1963 October 1, 1965 26 U.S.C. 3121 September 30, 1965 (3) Notwithstanding the last sentence of paragraph (1), benefits shall be paid to a survivor who (A) is a divorced wife; and (B) through administrative error received benefits otherwise precluded by the making of a lump sum payment under this section to a widow; if that divorced wife makes an election to repay to the Board the lump sum payment. The Board may withhold up to 10 percent of each benefit amount paid after October 21, 1998 (d) Payments to recipients ineligible for certain other annuities (1) Every individual who will have completed ten years of service at the time of his retirement or death, but does not meet the qualifications for an annuity amount determined under the provisions of section 231b(h)(1) or 231b(h)(2) of this title, shall, at the time his annuity under section 231a(a)(1) of this title section 231a(a)(1) of this title (2) The lump sum provided under subdivision (1) of this subsection shall be in an amount equal to the sum of (A) 1.5 per centum of so much of such individuals combined earnings for any calendar year after 1950 and before 1954 as is in excess of $3,600, plus (B) 2 per centum of so much of such individuals combined earnings for any calendar year after 1953 and before 1957 as is in excess of $4,200, plus (C) 2.25 per centum of so much of such individuals combined earnings for any calendar year after 1956 and before 1959 as is in excess of $4,200, plus (D) 2.5 per centum of so much of such individuals combined earnings for the calendar year 1959 as is in excess of $4,800, plus (E) 3 per centum of so much of such individuals combined earnings for each of the calendar years 1960 and 1961 as is in excess of $4,800, plus (F) 3.125 per centum of so much of such individuals combined earnings for the calendar year 1962 as is in excess of $4,800, plus (G) 3.625 per centum of so much of such individuals combined earnings for any calendar year after 1962 and before 1966 as is in excess of $5,400, plus (H) 4.2 per centum of so much of such individuals combined earnings for the calendar year 1966 as is in excess of $6,600, plus (I) 4.4 per centum of so much of such individuals combined earnings for the calendar year 1967 as is in excess of $6,600, plus (J) 3.8 per centum of so much of such individuals combined earnings for the calendar year 1968 as is in excess of $7,800, plus (K) 4.2 per centum of so much of such individuals combined earnings for each of the calendar years 1969 and 1970 as is in excess of $7,800, plus (L) 4.6 per centum of so much of such individuals combined earnings for the calendar year 1971 as is in excess of $7,800, plus (M) 4.6 per centum of so much of such individuals combined earnings for the calendar year 1972 as is in excess of $9,000, plus (N) 4.85 per centum of so much of such individuals combined earnings for the calendar year 1973 as is in excess of $10,800, plus (O) 4.95 per centum of so much of such individuals combined earnings for the calendar year 1974 as is in excess of $13,200. For purposes of this subsection, the term combined earnings shall include compensation as defined in section 1(h) of the Railroad Retirement Act of 1937 [ 45 U.S.C. 228a(h) 42 U.S.C. 409 42 U.S.C. 411(b) (e) Additional lump sum payment in certain cases (1) Every individual who will have completed ten years of service (or five or more years of service, all of which accrues after December 31, 1995 January 1, 1985 section 231b(i)(4) of this title section 231a(a)(1) of this title section 231a(a)(1) of this title section 231a(a)(1) of this title (2) The lump sum provided under subdivision ( l 1 1 section 231b(i)(4) of this title 26 U.S.C. 3201(b) ( Aug. 29, 1935, ch. 812,  6 June 24, 1937, ch. 382 50 Stat. 307 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1334 Pub. L. 9735, title XI,  1121 Aug. 13, 1981 95 Stat. 637 Pub. L. 9876, title IV,  408 Aug. 12, 1983 97 Stat. 435 Pub. L. 99514,  2 Oct. 22, 1986 100 Stat. 2095 Pub. L. 100647, title VII,  7301 Nov. 10, 1988 102 Stat. 3776 Pub. L. 105277, div. A,  101(f) [title VII,  709(a)] Oct. 21, 1998 112 Stat. 2681337 Pub. L. 10790, title I,  103(i)(1) Dec. 21, 2001 115 Stat. 882  Editorial Notes  References in Text The Social Security Act, referred to in subsec. (c), is act Aug. 14, 1935, ch. 531 49 Stat. 620 section 1305 of Title 42 The Railroad Retirement Act of 1937, referred to in subsec. (c)(2), is act Aug. 29, 1935, ch. 812 49 Stat. 867 act June 24, 1937, ch. 382, part I 50 Stat. 307 Pub. L. 93445, title I Oct. 16, 1974 88 Stat. 1305 Sections 1, 3, 5, and 21 of the Railroad Retirement Act of 1937, referred to in subsecs. (b)(1), (c)(2), and (d)(2), which were classified to sections 228a, 228c, 228e, and 228s2 of this title, have been omitted from the Code. Amendments 2001Subsec. (b)(2). Pub. L. 10790,  103(i)(4) December 31, 1995 Subsec. (e)(1). Pub. L. 10790,  103(i)(1) December 31, 1995 1998Subsec. (c)(1). Pub. L. 105277,  101(f) [title VII,  709(a)(1)] Subsec. (c)(3). Pub. L. 105277,  101(f) [title VII,  709(a)(2)] 1988Subsec. (e). Pub. L. 100647 1986Subsec. (c)(2). Pub. L. 99514 1983Subsec. (b)(1). Pub. L. 9876 section 231a(d) of this title 1981Subsec. (a)(3). Pub L. 9735,  1121(a), substituted spouse or divorced wife of an individual but which will not have been paid at the time of such spouses or divorced wifes death for spouse of an individual but which will not have been paid at the time of such spouses death. Subsec. (b)(2)(iii). Pub. L. 9735,  1121(b) Subsec. (c)(1). Pub. L. 9735,  1121(c)(1) Subsec. (c)(2). Pub. L. 9735,  1121(c)(3) Pub. L. 9735,  1121(c)(2) section 231a(b) of this title Statutory Notes and Related Subsidiaries Effective Date of 2001 Amendment Amendment by Pub. L. 10790 Jan. 1, 2002 section 103(j) of Pub. L. 10790 section 405 of Title 42 Effective Date of 1998 Amendment Pub. L. 105277, div. A,  101(f) [title VII,  709(b)] Oct. 21, 1998 112 Stat. 2681337 The amendment made by this section [amending this section] shall apply with respect to any benefits paid before the date of enactment of this Act [ Oct. 21, 1998 Effective Date of 1981 Amendment Amendment by section 1121(c)(1), (2) of Pub. L. 9735 section 1121 of Pub. L. 9735 Oct. 1, 1981 Oct. 1, 1981 section 1129 of Pub. L. 9735 section 231 of this title  231f. Railroad Retirement Board (a) Administration This subchapter shall be administered by the Railroad Retirement Board established by the Railroad Retirement Act of 1937 [ 45 U.S.C. 228a section 231(a)(1) of this title (b) Powers and duties (1) The Board shall have and exercise all the duties and powers necessary to administer this subchapter. The Board shall take such steps as may be necessary to enforce such subchapter and make awards and certify payments. Decisions by the Board upon issues of law and fact relating to annuities or death benefits shall not be subject to review by any other administrative or accounting officer, agent, or employee of the United States. (2) In the case of (A) an individual who will have completed ten years of service (or five or more years of service, all of which accrues after December 31, 1995 (B) the wife or divorced wife or husband of such an individual, (C) any survivor of such an individual if such survivor is entitled, or could upon application become entitled, to an annuity under section 231a of this title (D) any other person entitled to benefits under title II of the Social Security Act [ 42 U.S.C. 401 the Board shall provide for the payment on behalf of the Managing Trustee of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund of monthly benefits payable under title II of the Social Security Act [ 42 U.S.C. 401 (3) If the Board finds that an applicant is entitled to an annuity or death benefit under the provisions of this subchapter then the Board shall make an award fixing the amount of the annuity or benefit, as the case may be, and shall certify the payment thereof as hereinafter provided; otherwise the application shall be denied. For purposes of this section, the Board shall have and exercise such of the powers, duties and remedies provided in subsections (a), (b), (d), and (n) of section 12 of the Railroad Unemployment Insurance Act [ 45 U.S.C. 362 Provided, however (4) (A) The Secretary of the Treasury shall serve as the disbursing agent for benefits payable under this subchapter, under such rules and regulations as the Secretary may in the Secretarys discretion prescribe. (B) The Board shall from time to time certify (i) to the Secretary of the Treasury the amounts required to be transferred from the Social Security Equivalent Benefit Account and the Dual Benefits Payments Account to the disbursing agent to make payments of benefits and the Secretary of the Treasury shall transfer those amounts; (ii) to the Board of Trustees of the National Railroad Retirement Investment Trust the amounts required to be transferred from the National Railroad Retirement Investment Trust to the disbursing agent to make payments of benefits and the Board of Trustees shall transfer those amounts; and (iii) to the disbursing agent the name and address of each individual entitled to receive a payment, the amount of such payment, and the time at which the payment should be made. (5) The Board shall establish and promulgate rules and regulations to provide for the adjustment of all controversial matters arising in the administration of this subchapter. All rules, regulations, or decisions of the Board shall require the approval of at least two members, and they shall be entered upon the records of the Board, which shall be a public record. (6) The Board shall gather, keep, compile, and publish in convenient form such records and data as may be necessary to assure proper administration of this subchapter, including subdivision (2) of this subsection. The Board shall have power to require all employers and employees and any officer, board, commission, or other agency of the United States to furnish such information and records as shall be necessary for the administration of this subchapter, including subdivision (2) of this subsection. The several district courts of the United States shall have jurisdiction upon suit by the Board to compel obedience to any order of the Board issued pursuant to this section. The orders, writs, and processes of the United States District Court for the District of Columbia in such suits may run and be served anywhere in the United States. Witnesses summoned before the Board shall be paid the same fees and mileage that are paid witnesses in the district courts of the United States. The Board shall make an annual report to the President of the United States to be submitted to Congress. (7) Notwithstanding any other provision of law, the Secretary of Health and Human Services shall furnish the Board certified reports of wages, self-employment income, and periods of service and of other records in his possession, or which he may secure, pertinent to the administration of this subchapter, the Railroad Unemployment Insurance Act [ 45 U.S.C. 351 1 1 45 U.S.C. 901 45 U.S.C. 1001 1 section 231h of this title section 231a of this title 42 U.S.C. 301 section 231q of this title Provided, however (8) Any department or agency of the United States maintaining records of military service, at the request of the Board, shall certify to the Board, with respect to any individual, the number of months of military service which such department or agency finds the individual to have had during any period or periods with respect to which the Boards request is made, the date and manner of entry into such military service, and the conditions under which such service was continued. Any department or agency of the United States which is authorized to make awards of pensions, disability compensation, or any other gratuitous benefits or allowances payable, on the periodic basis or otherwise, under any other Act of Congress on the basis of military service, at the request of the Board, shall certify to the Board, with respect to any individual, the calendar months for all or part of which any such pension, compensation, benefit, or allowance is payable to, or with respect to, the individual, the amounts of any such pension, compensation, benefit, or allowance, and the military service on which such pension, compensation, benefit, or allowance is based. Any certification made pursuant to the provisions of this subdivision shall be conclusive on the Board: Provided, however (9) The Board shall maintain such offices, provide such equipment, furnishings, supplies, services, and facilities, and employ such individuals and provide for their compensation and expenses as may be necessary for the proper discharge of its functions. All positions to which such individuals are appointed, except one administrative assistant to each member of the Board, shall be in and under the competitive civil service and shall not be removed or excepted therefrom. In the employment of such individuals under the civil service laws and rules the Board shall give preference over all others to individuals who have had experience in railroad service, if, in the judgment of the Board, they possess the qualifications necessary for the proper discharge of the duties of the positions to which they are to be appointed. For purposes of its administration of this subchapter or the Railroad Unemployment Insurance Act [ 45 U.S.C. 351 2 2 (c) Sources of payments; adjustments (1) Benefit payments determined by the Board to be payable under this subchapter shall be made by the disbursing agent under subsection (b)(4) from money transferred to it from the National Railroad Retirement Investment Trust or the Social Security Equivalent Benefit Account, as the case may be, except that payments of annuity amounts made under sections 231b(h), 231c(e), and 231c(h) of this title and under sections 204(a)(3), 204(a)(4), 206(3), and 207(3) of Public Law 93445 Public Law 93445 Public Law 93445 (2) At the close of the fiscal year ending June 30, 1975 December 31, 1936 42 U.S.C. 301 26 U.S.C. 3101 (3) For purposes of subdivision (2), for any fiscal year, the rate of interest to be used shall be equal to the average rate of interest, computed as of May 31 preceding the close of such fiscal year, borne by all interest-bearing obligations of the United States then forming a part of the public debt; except that where such average rate is not a multiple of one-eighth of 1 per centum, the rate of interest shall be the multiple of one-eighth of 1 per centum next lower than such average rate. (4) After the end of each month beginning with the month of October 1983, the Board shall determine the net amount, if any, which if added to or subtracted from the Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, and the Federal Hospital Insurance Trust Fund would, with respect to such month, place those Trust Funds, taken as a whole, in the same position in which they would have been if (A) service as an employee after December 31, 1936 42 U.S.C. 301 26 U.S.C. 3101 August 12, 1983 section 3102 of title 31 section 3102 of title 31 September 30, 1984 (d) Hospital insurance benefits; certified beneficiaries; disability insurance benefits; services in Canada; exchange of information (1) The Board shall, for purposes of this subsection, have the same authority to determine the rights of individuals described in subdivision (2) to have payments made on their behalf for hospital insurance benefits consisting of inpatient hospital services, posthospital extended care services, home health services, hospice care, and outpatient hospital diagnostic services (all hereinafter referred to as services) under section 226 [ 42 U.S.C. 426 42 U.S.C. 1395c section 231g of this title (2) Except as otherwise provided in this subsection, every person who (i) has attained age 65 and (A) is entitled to an annuity under this subchapter or (B) would be entitled to such an annuity had he ceased compensated service and, in the case of a spouse or divorced wife, had such spouses husband or wife ceased compensated service or (C) bears a relationship to an employee which, by reason of section 231b(f)(2) of this title (ii) has not attained age 65 and (A) has been entitled to an annuity under section 231a of this title 45 U.S.C. 228a section 231a of this title section 231b(f)(2) of this title 42 U.S.C. 423 42 U.S.C. 402 December 31, 1936 shall be certified to the Secretary of Health and Human Services as a qualified railroad retirement beneficiary under section 226 of the Social Security Act [ 42 U.S.C. 426 (3) If an individual entitled to an annuity under paragraph (iv) or (v) of section 231a(a)(1) of this title 42 U.S.C. 423(c)(1) December 31, 1936 42 U.S.C. 301 (4) The rights of individuals described in subdivision (2) of this subsection to have payment made on their behalf for the services referred to in subdivision (1) but provided in Canada shall be the same as those of individuals to whom section 226 [ 42 U.S.C. 426 42 U.S.C. 1395c 42 U.S.C. 1395y(a)(4) ll section 231i of this title (5) The Board and the Secretary of Health and Human Services shall furnish each other with such information, records, and documents as may be considered necessary to the administration of this subsection or section 226 [ 42 U.S.C. 426 42 U.S.C. 1395c (e) Acceptance of gifts and bequests The Board is authorized to accept on behalf of the United States money gifts and bequests made unconditionally to the Railroad Retirement Account, to the Railroad Retirement Supplemental Account, or to the Railroad Unemployment Insurance Account, or to the Board, or any member, officer, or employee thereof, for the benefit of such accounts or any activity financed through such accounts. Any such gift accepted pursuant to the authority granted in this subsection shall be deposited in the specific account designated by the donor or, if the donor has made no such specific designation, in the Railroad Retirement Account. (f) Congressional copies of documents submitted or transmitted to President or Office of Management and Budget Whenever the Board submits or transmits any budget estimate, budget request, supplemental budget estimate, or other budget information, legislative recommendation, prepared testimony for congressional hearings, or comment on legislation to the President or to the Office of Management and Budget, it shall concurrently transmit a copy thereof to the Congress. No officer or agency of the United States shall have any authority to require the Board to submit its budget requests or estimates, legislative recommendations, prepared testimony for congressional hearings, or comments on legislation to any officer or agency of the United States for approval, comments, or review, prior to the submission of such recommendations, testimony, or comments to the Congress. ( Aug. 29, 1935, ch. 812,  7 June 24, 1937, ch. 382 50 Stat. 307 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1338 Pub. L. 9688, title V,  509(b) Oct. 17, 1979 93 Stat. 695 Pub. L. 96101,  10(h) Nov. 4, 1979 93 Stat. 742 Pub. L. 96254, title I,  106(f) May 30, 1980 94 Stat. 402 Pub. L. 96448, title VII,  701(b)(1) Oct. 14, 1980 94 Stat. 1960 Pub. L. 96265, title I,  103(a)(4) June 9, 1980 94 Stat. 444 Pub. L. 96499, title IX,  930(r) Dec. 5, 1980 94 Stat. 2633 Pub. L. 9735, title XI,  1122 Aug. 13, 1981 95 Stat. 638 Pub. L. 97248, title I,  122(a)(2) Sept. 3, 1982 96 Stat. 356 Pub. L. 9876, title III,  301(a) Aug. 12, 1983 97 Stat. 430 Pub. L. 98369, div. B, title III,  2349(b)(2) July 18, 1984 98 Stat. 1097 Pub. L. 10533, title IV,  4002(f)(1) Aug. 5, 1997 111 Stat. 329 Pub. L. 10790, title I Dec. 21, 2001 115 Stat. 882 Pub. L. 108173, title I,  101(e)(1) Dec. 8, 2003 117 Stat. 2150 Pub. L. 109305,  2 Oct. 6, 2006 120 Stat. 1719  Editorial Notes  References in Text The Railroad Retirement Act of 1937, referred to in subsecs. (a) and (d)(2)(ii), is act Aug. 29, 1935, ch. 812 act June 24, 1937, ch. 382, part I 50 Stat. 307 Pub. L. 93445, title I Oct. 16, 1974 88 Stat. 1305 The Social Security Act, referred to in subsecs. (b)(2), (7), (c)(2), (4), and (d)(1), (3) to (5), is act Aug. 14, 1935, ch. 531 49 Stat. 620 section 1305 of Title 42 The Railroad Unemployment Insurance Act, referred to in subsec. (b)(7), (9), is act June 25, 1938, ch. 680 52 Stat. 1094 section 367 of this title The Milwaukee Railroad Restructuring Act, referred to in subsec. (b)(7), is Pub. L. 96101 Nov. 4, 1979 93 Stat. 736 section 901 of this title The Rock Island Railroad Transition and Employee Assistance Act, referred to in subsec. (b)(7), is title I of Pub. L. 96254 May 30, 1980 94 Stat. 399 section 1001 of this title Section 5108(c)(9) of title 5 Pub. L. 95454,  414(a)(1)(A) Oct. 13, 1978 92 Stat. 1177 Sections 204, 206, and 207 of Pub. L. 93445 section 231 of this title The Federal Insurance Contributions Act, referred to in subsec. (c)(2), (4), is act Aug. 16, 1954, ch. 736 68A Stat. 415 section 3128 of Title 26 Codification As originally enacted, the third sentence of subsec. (b)(6) of this section contained words and the District Court of the United States for the District of Columbia after the several district courts of the United States. The words and the District Court of the United States for the District of Columbia have been deleted entirely as superfluous in view of section 132(a) of Title 28 In the fourth sentence of subsec. (b)(6) of this section, United States District Court for the District of Columbia substituted for District Court of the United States for the District of Columbia in conformity with similar changes made throughout the Code pursuant to section 32(b) of act June 25, 1948, ch. 646 act May 24, 1949, ch. 139,  127 63 Stat. 107 September 1, 1948 section 451 of Title 28 In subsec. (b)(9),  section 5108(c)(9) of title 5 Pub. L. 89554,  7(b) Sept. 6, 1966 80 Stat. 631 August 12, 1983 Pub. L. 9876 Amendments 2006Subsec. (b)(4)(A). Pub. L. 109305 December 21, 2001 2003Subsec. (d)(1). Pub. L. 108173 2001Subsec. (b)(2)(A). Pub. L. 10790,  103(i)(2) December 31, 1995 Subsec. (b)(4). Pub. L. 10790,  107(e) Subsec. (c)(1). Pub. L. 10790,  107(f) Public Law 93445 Pub. L. 10790,  106(a) section 231a(b) of this title Subsec. (d)(2)(i), (ii). Pub. L. 10790,  104(a)(2)(B) 1997Subsec. (d)(1). Pub. L. 10533 1984Subsec. (d)(4). Pub. L. 98369 1983Subsec. (c)(4). Pub. L. 9876,  301(a) Subsec. (f). Pub. L. 9876,  416 1982Subsec. (d)(1). Pub. L. 97248 1981Subsec. (b)(2)(B). Pub. L. 9735,  1122(a)(1) Subsec. (b)(7). Pub. L. 9735,  1122(a)(2) Subsec. (c)(1). Pub. L. 9735,  1122(c) Subsec. (d)(2)(i)(C). Pub. L. 9735,  1122(b)(2) Pub. L. 9735,  1122(b)(1) 1980Subsec. (b)(7). Pub. L. 96254 Pub. L. 96448 Subsec. (d)(1). Pub. L. 96499 Subsec. (d)(2)(ii). Pub. L. 96265 1979Subsec. (b)(7). Pub. L. 96101 Statutory Notes and Related Subsidiaries  Change of Name Secretary of Health and Human Services substituted for Secretary of Health, Education, and Welfare in subsecs. (b)(7), (c)(2), and (d)(4) and (5) pursuant to section 509(b) of Pub. L. 9688 section 3508(b) of Title 20 Effective Date of 2001 Amendment Amendment by section 103(i) of Pub. L. 10790 Jan. 1, 2002 section 103(j) of Pub. L. 10790 section 405 of Title 42 Amendment by section 104(a) of Pub. L. 10790 Jan. 1, 2002 section 104(c) of Pub. L. 10790 section 231b of this title Amendment by section 106(a) of Pub. L. 10790 Jan. 1, 2002 section 106(e)(1) of Pub. L. 10790 section 231n of this title Effective Date of 1984 Amendment Amendment by Pub. L. 98369 July 18, 1984 section 2349(c) of Pub. L. 98369 section 907a of Title 42 Effective Date of 1983 Amendment Pub. L. 9876, title III,  301(c)(1) Aug. 12, 1983 97 Stat. 432 The amendment made by subsection (a) of this section [amending this section] shall be effective on October 1, 1983 Effective Date of 1982 Amendment Amendment by Pub. L. 97248 Nov. 1, 1983 section 122(h)(1)(A) of Pub. L. 97248 section 1395c of Title 42 Effective Date of 1981 Amendment Amendment by section 1122(a)(2), (b)(1), (c) of Pub. L. 9735 Oct. 1, 1981 section 1122 of Pub. L. 9735 Oct. 1, 1981 Oct. 1, 1981 section 1129 of Pub. L. 9735 section 231 of this title Effective Date of 1980 Amendment Amendment by Pub. L. 96499 July 1, 1981 section 930(s)(1) of Pub. L. 96499 section 1395x of Title 42 Amendment by Pub. L. 96448 Oct. 14, 1980 section 710(d) of Pub. L. 96448 section 1170 of Title 11 Amendment by Pub. L. 96265 June 9, 1980 section 103(c) of Pub. L. 96265 section 426 of Title 42 Effective Date Pub. L. 93445, title VI,  602(e) Oct. 16, 1974 88 Stat. 1361 The provisions of section 7(e) of the Railroad Retirement Act of 1974 [subsec. (e) of this section] shall be effective on the enactment date of this Act [ Oct. 16, 1974 Repeals Section 106(f) of Pub. L. 96254 section 106 of Pub. L. 96254 Pub. L. 97468, title II,  231 Jan. 14, 1983 96 Stat. 2543 Limitation on the Office of Inspector General Pub. L. 110161, div. G, title IV Dec. 26, 2007 121 Stat. 2206 That funds made available under the heading in this Act [the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2008, Pub. L. 110161, div. G Pub. L. 105277, div. A,  101(f) [title IV] Oct. 21, 1998 112 Stat. 2681337 That none of the funds made available under this heading in this Act [probably means the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 1999, Pub. L. 105277, div. A,  101(f) Oct. 21, 1998 112 Stat. 2681337 Similar provisions were contained in the following prior appropriation acts: Pub. L. 10578, title IV Nov. 13, 1997 111 Stat. 1512 Pub. L. 104208, div. A, title I,  101(e) [title IV] Sept. 30, 1996 110 Stat. 3009233 References in Other Laws to GS16, 17, or 18 Pay Rates References in laws to the rates of pay for GS16, 17, or 18, or to maximum rates of pay under the General Schedule, to be considered references to rates payable under specified sections of Title 5, Government Organization and Employees, see section 529 [title I,  101(c)(1)] of Pub. L. 101509 section 5376 of Title 5 Executive Documents  Transfer of Functions Fiscal Service substituted for Division of Disbursements in subsec. (b)(4) on authority of section 1(a)(1) of 1940 Reorg. Plan No. III, eff. June 30, 1940 54 Stat. 1231 section 306 of Title 31  Delegation of Reporting Authority Memorandum of President of the United States, Feb. 9, 2005 Memorandum for the Chairman of the Railroad Retirement Board By the authority vested in me as President by the Constitution and the laws of the United States, including section 301 of title 3 45 U.S.C. 231f(b)(6) 45 U.S.C. 362 l You are authorized and directed to publish this memorandum in the Federal Register.  George W. Bush.  231f1. Annual actuarial report As part of the annual report required under section 231u(a) of this title (1) any adjustment the Railroad Retirement Board recommends regarding the rates of taxes imposed by sections 3201(b), 3211(a)(2), and 3221(b) of the Internal Revenue Code of 1986 [ 26 U.S.C. 3201(b) (2) if there are sufficient reserves in the Railroad Retirement Account, whether (A) the rates of such taxes should be reduced, or (B) any part of the tax imposed by section 3221(b) of such Code should be diverted to the Railroad Unemployment Insurance Account to aid in the repayment of its debt to the Railroad Retirement Account. ( Pub. L. 9876, title V,  502 Aug. 12, 1983 97 Stat. 440 Pub. L. 99514,  2 Oct. 22, 1986 100 Stat. 2095 Pub. L. 10466, title II,  2221(a) Dec. 21, 1995 109 Stat. 733  Editorial Notes Codification Section was enacted as part of the Railroad Retirement Solvency Act of 1983, and not as part of the Railroad Retirement Act of 1974 which comprises this subchapter. Amendments 1995 Pub. L. 10466 section 231u(a) of this title July 1, 1985 1986Par. (1). Pub. L. 99514  231g. Court jurisdiction  Decisions of the Board determining the rights or liabilities of any person under this subchapter shall be subject to judicial review in the same manner, subject to the same limitations, and all provisions of law shall apply in the same manner as though the decision were a determination of corresponding rights or liabilities under the Railroad Unemployment Insurance Act [ 45 U.S.C. 351 ( Aug. 29, 1935, ch. 812,  8 June 24, 1937, ch. 382 50 Stat. 307 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1343  Editorial Notes  References in Text The Railroad Unemployment Insurance Act, referred to in text, is act June 25, 1938, ch. 680 52 Stat. 1094 section 367 of this title  231h. Returns of compensation; conclusiveness  Employers shall file with the Board, in such manner and form and at such times as the Board by rules and regulations may prescribe, returns of compensation of employees, and, if the Board shall so require, shall furnish employees with statements of their compensation as reported to the Board. The Boards record of the compensation so returned shall be conclusive as to the amount of compensation paid to an employee during each period covered by the return, and the fact that the Boards records show that no return was made of the compensation claimed to have been paid to an employee during a particular period shall be taken as conclusive that no compensation was paid to such employee during that period, unless the error in the amount of compensation returned in the one case, or the failure to make return of the compensation in the other case, is called to the attention of the Board within four years after the day on which return of the compensation was required to be made. ( Aug. 29, 1935, ch. 812,  9 June 24, 1937, ch. 382 50 Stat. 307 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1343  231i. Erroneous payments (a) Recovery If the Board finds that at any time more than the correct amount of annuities or other benefits has been paid to any individual under this subchapter, or payment has been made to an individual not entitled thereto, recovery by adjustment in subsequent payments to which such individual, or any other individual on the basis of the same compensation, wages, or self-employment income, is entitled under this subchapter, or the Railroad Unemployment Insurance Act [ 45 U.S.C. 351 section 231f(b)(2) of this title 42 U.S.C. 401 (b) Adjustments Adjustments under this section may be made either by deductions from subsequent payments or, with respect to payments which are to be made during a lifetime or lifetimes, by subtracting the total amount of annuities or other benefits paid in excess of the proper amount from the actuarial value, as determined by the Board, of such payments to be made during a lifetime or lifetimes and recertifying such payments on the basis of the reduced actuarial value. In the latter case, recovery shall be deemed to have been completed upon such recertification. (c) Decision not to recover There shall be no recovery in any case in which more than the correct amount of annuities or other benefits has been paid under this subchapter to an individual or payment has been made to an individual not entitled thereto who, in the judgment of the Board, is without fault when, in the judgment of the Board, recovery would be contrary to the purpose of this subchapter or the Railroad Unemployment Insurance Act [ 45 U.S.C. 351 (d) Liability of officers No certifying or disbursing officer shall be held liable for any amount certified or paid by him in good faith to any person where the recovery of such amount is waived under subsection (c) of this section or has been begun but cannot be completed under subsection (a) of this section. ( Aug. 29, 1935, ch. 812,  10 June 24, 1937, ch. 382 50 Stat. 307 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1344 Pub. L. 9735, title XI,  1123 Aug. 13, 1981 95 Stat. 638  Editorial Notes  References in Text The Railroad Unemployment Insurance Act, referred to in subsecs. (a) and (c), is act June 25, 1938, ch. 680 52 Stat. 1094 section 367 of this title The Social Security Act, referred to in subsec. (a), is act Aug. 14, 1935, ch. 531 49 Stat. 620 section 1305 of Title 42 Amendments 1981Subsec. (a). Pub. L. 9735 section 231f(b)(2) of this title Statutory Notes and Related Subsidiaries Effective Date of 1981 Amendment Amendment by Pub. L. 9735 Jan. 1, 1975 section 1129 of Pub. L. 9735 section 231 of this title  231j. Waiver of annuities  Any person awarded an annuity under this subchapter may decline to accept all or any part of such annuity by a waiver signed and filed with the Board. Such a waiver may be revoked in writing at any time, but no payment of the annuity waived shall be made covering the period during which such waiver was in effect. Such a waiver will have no effect on entitlement to, or the amount of, any other annuity or benefit. ( Aug. 29, 1935, ch. 812,  11 June 24, 1937, ch. 382 50 Stat. 307 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1344  231k. Incompetence (a) Every individual receiving or claiming benefits, or to whom any right or privilege is extended, under this subchapter or any other Act of Congress now or hereafter administered, in whole or in part, by the Board shall be conclusively presumed to have been competent until the date on which the Board receives written notice, in a form and manner acceptable to the Board, that he is an incompetent, or a minor, for whom a guardian or other person legally vested with the care of his person or estate has been appointed: Provided, however (b) Every guardian or other person legally vested with the care of the person or estate of an incompetent or minor who is receiving or claiming benefits, or to whom any right or privilege is extended, under this subchapter or any other Act of Congress now or hereafter administered, in whole or in part, by the Board shall have power everywhere, in the manner and to the extent prescribed by the Board, but subject to the provisions of the preceding subsection, to take any action necessary or appropriate to perfect any right or exercise any privilege of the incompetent or minor and to conduct all transactions on his behalf under this subchapter or any other Act of Congress now or hereafter administered, in whole or in part, by the Board. Any payment made pursuant to the provisions of this section shall be a complete settlement and satisfaction of any claim, right, or interest in and to such payment. ( Aug. 29, 1935, ch. 812,  12 June 24, 1937, ch. 382 50 Stat. 307 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1345  231l. Penalties (a) Any person who shall knowingly fail or refuse to make any report or furnish any information required by the Board in the administration of this subchapter, including the provisions of section 231f(b)(2) of this title (b) All fines and penalties imposed by a court pursuant to this subchapter shall be paid to the court and be remitted from time to time by order of the judge to the Treasury of the United States to be credited to the Railroad Retirement Account. ( Aug. 29, 1935, ch. 812,  13 June 24, 1937, ch. 382 50 Stat. 307 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1345  231m. Assignability; exemption from levy (a) Except as provided in subsection (b) of this section and the Internal Revenue Code of 1986 [ 26 U.S.C. 1 1 1 (b) (1) This section shall not operate to exclude the amount of any supplemental annuity paid to an individual under section 231a(b) of this title 26 U.S.C. 1 (2) This section shall not operate to prohibit the characterization or treatment of that portion of an annuity under this subchapter which is not computed under section 231b(a), 231c(a), or 231c(f) of this title, or any portion of a supplemental annuity under this subchapter, as community property for the purposes of, or property subject to, distribution in accordance with a court decree of divorce, annulment, or legal separation or the terms of any court-approved property settlement incident to any such court decree. The Board shall make payments of such portions in accordance with any such characterization or treatment or any such decree or settlement. (3) (A) Payments made pursuant to paragraph (2) of this subsection shall not require that the employee be entitled to an annuity under section 231a(a)(1) of this title (i) The employee has completed ten years of service in the railroad industry or, five years of service all of which accrues after December 31, 1995 (ii) The spouse or former spouse attains age 62. (iii) The employee attains age 62 (or if deceased, would have attained age 62). (B) Payments made pursuant to paragraph (2) of this subsection shall terminate upon the death of the spouse or former spouse, unless the court document provides for termination at an earlier date. Notwithstanding the language in a court order, that portion of payments made pursuant to paragraph (2) which represents payments computed pursuant to section 231b(f)(2) of this title (C) If the employee is not entitled to an annuity under section 231a(a)(1) of this title ( Aug. 29, 1935, ch. 812,  14 June 24, 1937, ch. 382 50 Stat. 307 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1345 Pub. L. 9876, title IV,  419(a) Aug. 12, 1983 97 Stat. 438 Pub. L. 99514,  2 Oct. 22, 1986 100 Stat. 2095 Pub. L. 110458, title I,  110(a)(1) Dec. 23, 2008 122 Stat. 5112  Editorial Notes Amendments 2008Subsec. (b)(3). Pub. L. 110458 1986Subsecs. (a), (b)(1). Pub. L. 99514 1983Subsec. (a). Pub. L. 9876,  419(a)(1) Subsec. (b)(1). Pub. L. 9876,  419(a)(2) Provided, however Subsec. (b)(2). Pub. L. 9876,  419(a)(3) Statutory Notes and Related Subsidiaries Effective Date of 2008 Amendment Pub. L. 110458, title I,  110(b)(1) Dec. 23, 2008 122 Stat. 5112 The amendment made by subsection (a)(1) [amending this section] shall apply with respect to payments due for months after August 2007. If, prior to the effective date of such amendment, payment pursuant to paragraph (2) of section 14(b) of the Railroad Retirement Act of 1974 ( 45 U.S.C. 231m(b) Effective Date of 1983 Amendment Pub. L. 9876, title IV,  419(b) Aug. 12, 1983 97 Stat. 438 The amendments made by this section [amending this section] shall apply with respect to annuity amounts payable for months beginning after the date of the enactment of this Act [ Aug. 12, 1983  231n. Railroad Retirement Account (a) Maintenance of account; authorization of appropriations The Railroad Retirement Account established by section 15(a) of the Railroad Retirement Act of 1937 [ 45 U.S.C. 228 o June 30, 1975 section 231f(c)(1) of this title 26 U.S.C. 3201 (b) Authorization of appropriations; military service costs and administrative expenses In addition to the amount appropriated in subsection (a) of this section, there is hereby authorized to be appropriated to the Railroad Retirement Account for each fiscal year, beginning with the fiscal year ending June 30, 1975 section 231a of this title section 231f(c)(2) of this title Provided, however l 45 U.S.C. 228c1 l June 30, 1975 section 231f(c)(2) of this title 42 U.S.C. 401 January 1, 1957 l (c) Repealed. Pub. L. 10790, title I,  106(b) Dec. 21, 2001 115 Stat. 887 (d) Dual Benefits Payments Account (1) There is hereby created an account in the Treasury of the United States to be known as the Dual Benefits Payments Account. There is hereby authorized to be appropriated to such account for each fiscal year beginning with the fiscal year ending September 30, 1982 Public Law 93445 September 30, 1982 Public Law 93445 section 231f(c)(1) of this title Public Law 93445 section 231f(b)(4) of this title (2) The Secretary of the Treasury (i) shall transfer from the general fund as a loan to the Board on January 1, 1984 (ii) shall transfer from the general fund as a loan to the Board on January 1, 1985 January 1, 1984 (iii) shall transfer from the general fund as a loan to the Board on January 1, 1986 January 1, 1984 (3) The special amount referred to in subdivision (2) of this subsection is the amount which, as of January 1, 1984 January 1, 1975 September 30, 1981 Public Law 93445 (4) For the purposes of subdivision (2) of this subsection, the Secretary of the Treasury is authorized to use as a public debt transaction the proceeds of the sale of any securities issued after August 12, 1983 section 3102 of title 31 (5) The amounts transferred to the Board as loans under subdivision (2) of this subsection shall be deposited in the Railroad Retirement Account. (6) The amounts transferred as loans under subdivision (2) of this subsection shall be repaid to the general fund to the extent sums are appropriated for that purpose, and there are hereby authorized to be appropriated, in addition to any other sums authorized to be appropriated for the purposes of this subchapter and from any sums in the Treasury not otherwise appropriated, such sums as may be necessary to make such repayments. (e) Investments At the request and direction of the Board, it shall be the duty of the Secretary of the Treasury (hereinafter referred to as the Secretary) to invest such portion of the amounts credited to the Railroad Retirement Account and the Dual Benefits Payments Account as are not transferred to the National Railroad Retirement Investment Trust as the Board may determine in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States. For such purpose such obligations may be acquired (A) on original issue at the issue price; or (B) by purchase of outstanding obligations at the market price. The purposes for which obligations of the United States may be issued under chapter 31 of title 31, are hereby extended to authorize the issuance at par of special obligations exclusively to the accounts. Such obligations issued for purchase by the accounts shall have maturities fixed with due regard for the needs of the accounts, and shall bear interest at a rate equal to the average market yield, computed as of the end of the calendar month next preceding the date of such issue, borne by all marketable interest-bearing notes of the United States then forming a part of the public debt that are not due or callable until after the expiration of three years from the end of such calendar month, except that where such rate is not a multiple of one-eighth of 1 per centum, the rate of interest on such obligation shall be the multiple of one-eighth of 1 per centum nearest such rate: Provided Provided (f) Actuarial Advisory Committee The Board is hereby authorized and directed to select two actuaries, one from recommendations made by representatives of employees and the other from recommendations made by representatives of employers as defined in paragraph (i) of section 231(a)(1) of this title Provided, however January 1, 1975 (g) Annual report The Board shall include in its annual report a statement of the status and the operations of the Railroad Retirement and Railroad Retirement Supplemental Accounts, and the Dual Benefits Payments Account. At intervals not longer than three years the Board shall make an estimate of the liabilities created by this subchapter and shall include such estimate in its annual report. (h) Authorization of appropriations; administrative expenses of subchapter There are hereby authorized to be appropriated from time to time such sums as may be necessary to provide for the expenses of the Board in administering the provisions of this subchapter. (i) Crediting of accounts for unnegotiated benefit checks (1) The Secretary of the Treasury shall implement procedures to permit the identification of each check issued for benefits under this subchapter that has not been presented for payment by the close of the sixth month following the month of its issuance. (2) The Secretary of the Treasury shall, on a monthly basis, credit each account established in the Treasury for the payment of benefits under this subchapter for the proportionate amount of benefit checks (including interest thereon) drawn on each such Account more than six months previously but not presented for payment and not previously credited to such Account, to the extent provided in advance in appropriation Acts. (3) If a benefit check is presented for payment to the Treasury and the amount of the appropriate portion thereof has been previously credited pursuant to paragraph (2) to an Account or Accounts, the Secretary of the Treasury shall nevertheless pay such check, if otherwise proper, recharge such Account or Accounts for the amount of such check attributable to such Account or Accounts and notify the Board. (4) A benefit check bearing a current date may be issued to an individual who did not negotiate the original benefit check and who surrenders such check for cancellation if the Secretary of the Treasury determines it is necessary to effect proper payment of benefits. (j) National Railroad Retirement Investment Trust (1) Establishment The National Railroad Retirement Investment Trust (hereinafter in this subsection referred to as the Trust) is hereby established as a trust domiciled in the District of Columbia and shall, to the extent not inconsistent with this subchapter, be subject to the laws of the District of Columbia applicable to such trusts. The Trust shall manage and invest its assets in the manner set forth in this subsection. (2) Not a Federal agency or instrumentality The Trust is not a department, agency, or instrumentality of the Government of the United States and shall not be subject to title 31. (3) Board of Trustees (A) Generally (i) Membership The Trust shall have a Board of Trustees, consisting of 7 members. Three shall represent the interests of labor, 3 shall represent the interests of management, and 1 shall be an independent Trustee. The members of the Board of Trustees shall not be considered officers or employees of the Government of the United States. (ii) Selection (I) The 3 members representing the interests of labor shall be selected by the joint recommendation of labor organizations, national in scope, organized in accordance with sections 151a and 152 of this title, and representing at least 23 of all active employees, represented by such national labor organizations, covered under this subchapter. (II) The 3 members representing the interests of management shall be selected by the joint recommendation of carriers as defined in section 151 of this title (III) The independent member shall be selected by a majority of the other 6 members of the Board of Trustees. A member of the Board of Trustees may be removed in the same manner and by the same constituency that selected that member. (iii) Dispute resolution In the event that the parties specified in subclause (I), (II), or (III) of the previous clause cannot agree on the selection of Trustees within 60 days of the date of enactment or 60 days from any subsequent date that a position of the Board of Trustees becomes vacant, an impartial umpire to decide such dispute shall, on the petition of a party to the dispute, be appointed by the District Court of the United States for the District of Columbia. (B) Qualifications Members of the Board of Trustees shall be appointed only from among persons who have experience and expertise in the management of financial investments and pension plans. No member of the Railroad Retirement Board shall be eligible to be a member of the Board of Trustees. (C) Terms Except as provided in this subparagraph, each member shall be appointed for a 3-year term. The initial members appointed under this paragraph shall be divided into equal groups so nearly as may be, of which one group will be appointed for a 1-year term, one for a 2-year term, and one for a 3-year term. The Trustee initially selected pursuant to clause (ii)(III) shall be appointed to a 3-year term. A vacancy in the Board of Trustees shall not affect the powers of the Board of Trustees and shall be filled in the same manner as the selection of the member whose departure caused the vacancy. Upon the expiration of a term of a member of the Board of Trustees, that member shall continue to serve until a successor is appointed. (4) Powers of the Board of Trustees The Board of Trustees shall (A) retain independent advisers to assist it in the formulation and adoption of its investment guidelines; (B) invest assets of the Trust in a manner consistent with such investment guidelines, either directly or through the retention of independent investment managers; (C) adopt bylaws and other rules to govern its operations; (D) employ professional staff, and contract with outside advisers, including the Railroad Retirement Board, to provide legal, accounting, investment advisory or management services (compensation for which may be on a fixed contract fee basis or on such other terms as are customary for such services), or other services necessary for the proper administration of the Trust; (E) sue and be sued and participate in legal proceedings, have and use a seal, conduct business, carry on operations, and exercise its powers within or without the District of Columbia, form, own, or participate in entities of any kind, enter into contracts and agreements necessary to carry out its business purposes, lend money for such purposes, and deal with property as security for the payment of funds so loaned, and possess and exercise any other powers appropriate to carry out the purposes of the Trust; (F) pay administrative expenses of the Trust from the assets of the Trust; and (G) transfer money to the disbursing agent or as otherwise provided in section 231f(b)(4) of this title (5) Reporting requirements and fiduciary standards The following reporting requirements and fiduciary standards shall apply with respect to the Trust: (A) Duties of the Board of Trustees The Trust and each member of the Board of Trustees shall discharge their duties (including the voting of proxies) with respect to the assets of the Trust solely in the interest of the Railroad Retirement Board and through it, the participants and beneficiaries of the programs funded under this subchapter (i) for the exclusive purpose of (I) providing benefits to participants and their beneficiaries; and (II) defraying reasonable expenses of administering the functions of the Trust; (ii) with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims; (iii) by diversifying investments so as to minimize the risk of large losses and to avoid disproportionate influence over a particular industry or firm, unless under the circumstances it is clearly prudent not to do so; and (iv) in accordance with Trust governing documents and instruments insofar as such documents and instruments are consistent with this subchapter. (B) Prohibitions with respect to members of the Board of Trustees No member of the Board of Trustees shall (i) deal with the assets of the Trust in the Trustees own interest or for the Trustees own account; (ii) in an individual or in any other capacity act in any transaction involving the assets of the Trust on behalf of a party (or represent a party) whose interests are adverse to the interests of the Trust, the Railroad Retirement Board, or the interests of participants or beneficiaries; or (iii) receive any consideration for the Trustees own personal account from any party dealing with the assets of the Trust. (C) Exculpatory provisions and insurance Any provision in an agreement or instrument that purports to relieve a Trustee from responsibility or liability for any responsibility, obligation, or duty under this subchapter shall be void: Provided, however (i) the Trust from purchasing insurance for its Trustees or for itself to cover liability or losses occurring by reason of the act or omission of a Trustee, if such insurance permits recourse by the insurer against the Trustee in the case of a breach of a fiduciary obligation by such Trustee; (ii) a Trustee from purchasing insurance to cover liability under this section from and for his own account; or (iii) an employer or an employee organization from purchasing insurance to cover potential liability of one or more Trustees with respect to their fiduciary responsibilities, obligations, and duties under this section. (D) Bonding Every Trustee and every person who handles funds or other property of the Trust (hereafter in this subsection referred to as Trust official) shall be bonded. Such bond shall provide protection to the Trust against loss by reason of acts of fraud or dishonesty on the part of any Trust official, directly or through the connivance of others, and shall be in accordance with the following: (i) The amount of such bond shall be fixed at the beginning of each fiscal year of the Trust by the Railroad Retirement Board. Such amount shall not be less than 10 percent of the amount of the funds handled. In no case shall such bond be less than $1,000 nor more than $500,000, except that the Railroad Retirement Board, after consideration of the record, may prescribe an amount in excess of $500,000, subject to the 10 per centum limitation of the preceding sentence. (ii) It shall be unlawful for any Trust official to receive, handle, disburse, or otherwise exercise custody or control of any of the funds or other property of the Trust without being bonded as required by this subsection and it shall be unlawful for any Trust official, or any other person having authority to direct the performance of such functions, to permit such functions, or any of them, to be performed by any Trust official, with respect to whom the requirements of this subsection have not been met. (iii) It shall be unlawful for any person to procure any bond required by this subsection from any surety or other company or through any agent or broker in whose business operations such person has any control or significant financial interest, direct or indirect. (E) Audit and report (i) The Trust shall annually engage an independent qualified public accountant to audit the financial statements of the Trust. (ii) The Trust shall submit an annual management report to the Congress not later than 180 days after the end of the Trusts fiscal year. A management report under this subsection shall include (I) a statement of financial position; (II) a statement of operations; (III) a statement of cash flows; (IV) a statement on internal accounting and administrative control systems; (V) the report resulting from an audit of the financial statements of the Trust conducted under clause (i); and (VI) any other comments and information necessary to inform the Congress about the operations and financial condition of the Trust. (iii) The Trust shall provide the President, the Railroad Retirement Board, and the Director of the Office of Management and Budget a copy of the management report when it is submitted to Congress. (F) Enforcement The Railroad Retirement Board may bring a civil action (i) to enjoin any act or practice by the Trust, its Board of Trustees, or its employees or agents that violates any provision of this subchapter; or (ii) to obtain other appropriate relief to redress such violations, or to enforce any provisions of this subchapter. (6) State and local taxes The Trust shall be exempt from any income, sales, use, property, or other similar tax or fee imposed or levied by a State, political subdivision, or local taxing authority. The district courts of the United States shall have original jurisdiction over a civil action brought by the Trust to enforce this subsection and may grant equitable or declaratory relief requested by the Trust. (7) Quorum Five members of the Board of Trustees constitute a quorum to do business. Investment guidelines must be adopted by a unanimous vote of the Trustees then holding office. All other decisions of the Board of Trustees shall be decided by a majority vote of the quorum present. All decisions of the Board of Trustees shall be entered upon the records of the Board of Trustees. (k) Transfers to the Trust The Board shall, upon establishment of the National Railroad Retirement Investment Trust and from time to time thereafter, direct the Secretary of the Treasury to transfer, in such manner as will maximize the investment returns to the Railroad Retirement system, that portion of the Railroad Retirement Account that is not needed to pay current administrative expenses of the Board to the National Railroad Retirement Investment Trust. The Secretary shall make that transfer. (l) National Railroad Retirement Investment Trust The National Railroad Retirement Investment Trust shall from time to time transfer to the disbursing agent described in section 231f(b)(4) of this title section 231f(b)(4) of this title ( Aug. 29, 1935, ch. 812,  15 June 24, 1937, ch. 382 50 Stat. 307 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1346 Pub. L. 9492, title II,  201(a) Aug. 9, 1975 89 Stat. 464 Pub. L. 94547,  3(a) Oct. 18, 1976 90 Stat. 2525 Pub. L. 9734, title VII,  742 Aug. 13, 1981 95 Stat. 348 Pub. L. 9735, title XI Aug. 13, 1981 95 Stat. 639 Pub. L. 9876, title III,  301(b) Aug. 12, 1983 97 Stat. 431 Pub. L. 10790, title I Dec. 21, 2001 115 Stat. 882 Pub. L. 108203, title IV,  426(a) Mar. 2, 2004 118 Stat. 537  Editorial Notes  References in Text Sections 4 and 15 of the Railroad Retirement Act of 1937, referred to in subsecs. (a) and (b)(1), which were classified to sections 228c1 and 228 o The Railroad Retirement Tax Act, referred to in subsec. (a), is act Aug. 16, 1954, ch. 736 68A Stat. 431 section 3233 of Title 26 The Social Security Act, referred to in subsec. (b), is act Aug. 14, 1935, ch. 531 49 Stat. 620 section 1305 of Title 42 Sections 204, 206, and 207 of Pub. L. 93445 Pub. L. 93445 section 231 of this title Within 60 days of the date of enactment, referred to in subsec. (j)(3)(A)(iii), probably means within 60 days of the date of enactment of Pub. L. 10790 Dec. 21, 2001 Amendments 2004Subsec. (j)(4). Pub. L. 108203,  426(b) Subsec. (j)(5)(B). Pub. L. 108203,  426(f)(1) Subsec. (j)(5)(C). Pub. L. 108203,  426(f)(2) Subsec. (j)(5)(D). Pub. L. 108203,  426(f)(3) Subsec. (j)(6). Pub. L. 108203,  426(c) Subsec. (j)(7). Pub. L. 108203,  426(a) Subsec. (j)(8). Pub. L. 108203,  426(d) 2001Subsec. (a). Pub. L. 10790,  106(c) section 231b(e) of this title January 1, 1975 Subsec. (c). Pub. L. 10790,  106(b) June 30, 1975 section 231a(b) of this title section 231a(b) of this title Subsec. (d)(1). Pub. L. 10790,  107(d) section 231f(b)(4) of this title Subsec. (e). Pub. L. 10790,  105(b)(1) Pub. L. 10790,  105(b)(2) Subsec. (j). Pub. L. 10790,  105(a) Subsec. (k). Pub. L. 10790,  107(a) Subsec. ( l Pub. L. 10790,  107(b) l 1983Subsec. (b). Pub. L. 9876,  301(b) section 231f(c)(2) of this title section 231f(c)(2) of this title Subsec. (d)(1). Pub. L. 9876,  401(a)(1) Public Law 93445 section 231f(c)(1) of this title Public Law 93445 Subsec. (d)(2) to (6). Pub. L. 9876,  401(a)(4) Subsec. (i). Pub. L. 9876,  417(a) 1981Subsec. (b). Pub. L. 9735,  1127(a) Pub. L. 9734 Pub. L. 9734 Subsec. (d). Pub. L. 9735,  1124(a) Subsecs. (e), (g). Pub. L. 9735,  1124(b) 1976Subsec. (c). Pub. L. 94547 1975Subsec. (a). Pub. L. 9492,  201(a) Subsec. (b). Pub. L. 9492,  201(b) Subsec. (c). Pub. L. 9492,  201(c) June 30, 1975 Subsec. (h). Pub. L. 9492,  201(d) Statutory Notes and Related Subsidiaries Effective Date of 2001 Amendment Pub. L. 10790, title I,  105(d) Dec. 21, 2001 115 Stat. 887 The amendments made by this section [amending this section] shall take effect on the first day of the month that begins more than 30 days after enactment [ Dec. 21, 2001 Pub. L. 10790, title I,  106(e) Dec. 21, 2001 115 Stat. 887  (1)  In general Subject to paragraph (2), the amendments made by subsections (a), (b), and (c) [amending this section and section 231f of this title January 1, 2002 (2)  Account in existence until transfer made The Railroad Retirement Supplemental Account under section 15(c) of the Railroad Retirement Act of 1974 ( 45 U.S.C. 231n(c) Effective Date of 1983 Amendment Pub. L. 9876, title III,  301(c)(2) Aug. 12, 1983 97 Stat. 432 The amendments made by subsection (b) of this section [amending this section] shall be effective on the date immediately following the day in June 1984 when the total amount of money outstanding to the Railroad Retirement Account under section 15(b)(2) of the Railroad Retirement Act of 1974 [subsec. (b)(2) of this section] is retransferred to the general fund under that section. Pub. L. 9876, title IV,  401(b) Aug. 12, 1983 97 Stat. 434 The amendments made by this section [amending this section] shall be effective upon enactment [ Aug. 12, 1983 Pub. L. 9876, title IV,  417(b) Aug. 12, 1983 97 Stat. 437 The amendment made by subsection (a) [amending this section] shall apply with respect to all checks for benefits under this Act [this subchapter] which are issued on or after May 1, 1985 Effective Date of 1981 Amendment Amendment by Pub. L. 9735 Oct. 1, 1981 section 1129(g) of Pub. L. 9735 section 231 of this title Effective Date of 1976 Amendment Pub. L. 94547,  3(b) Oct. 18, 1976 90 Stat. 2526 The amendment made by this section [amending this section] shall be effective on the enactment date of this Act [ Oct. 18, 1976 Effective Date of 1975 Amendment Pub. L. 9492, title II,  201(e) Aug. 9, 1975 89 Stat. 465 The amendments [amending this section] made by this section shall be effective January 1, 1975 Termination of Advisory Committees Advisory committees established after Jan. 5, 1973 section 1013 of Title 5 Purchase or Sale of Non-Federal Assets; Means of Financing Pub. L. 10790, title I,  105(c) Dec. 21, 2001 115 Stat. 887 For all purposes of the Congressional Budget Act of 1974 [see Short Title note set out under section 621 of Title 2 section 900 of Title 2 Transfer of Funds in the Railroad Retirement Supplemental Account Pub. L. 10790, title I,  106(d) Dec. 21, 2001 115 Stat. 887  (1)  Determination As soon as possible after December 31, 2001 (A) determine the amount of funds in the Railroad Retirement Supplemental Account under section 15(c) of the Railroad Retirement Act of 1974 ( 45 U.S.C. 231n(c) (B) direct the Secretary of the Treasury to transfer such funds to the National Railroad Retirement Investment Trust under section 15(j) of such Act [ 45 U.S.C. 231n(j) (2)  Transfer by the secretary of the treasury The Secretary of the Treasury shall make the transfer described in paragraph (1). Transitional Rule for Existing Obligation Pub. L. 10790, title I,  107(g) Dec. 21, 2001 115 Stat. 889 In making transfers under sections 15(k) and 15A(d)(2) of the Railroad Retirement Act of 1974 [ 45 U.S.C. 231n(k) Dec. 21, 2001 Commission on Railroad Retirement Reform Pub. L. 100203, title IX,  9033 Dec. 22, 1987 101 Stat. 1330296 Pub. L. 100647, title VII,  7108 Nov. 10, 1988 102 Stat. 3774 Oct. 1, 1990 Section 72(r) Revenue Increase Transferred to Certain Railroad Retirement Accounts Pub. L. 9876, title II,  224(c) Aug. 12, 1983 97 Stat. 423 Pub. L. 99514,  2 Oct. 22, 1986 100 Stat. 2095 Pub. L. 100203, title IX,  9034 Dec. 22, 1987 101 Stat. 1330299 Pub. L. 101239, title X,  10102 Dec. 19, 1989 103 Stat. 2471 Pub. L. 101508, title V,  5126 Nov. 5, 1990 104 Stat. 1388286 Pub. L. 103296, title III,  317 Aug. 15, 1994 108 Stat. 1532  (1)  In general. (A)  Transfers to railroad retirement account There are hereby appropriated to the Railroad Retirement Account amounts (other than amounts described in subparagraph (B)) equivalent to the aggregate increase in tax liabilities under chapter 1 of the Internal Revenue Code of 1986 [ 26 U.S.C. 1 26 U.S.C. 72(r) (B)  Revenue increases attributable to windfall benefits received after september 30, 1988 There are hereby appropriated to the Dual Benefits Payments Account amounts equivalent to the aggregate increase in tax liabilities under chapter 1 of such Code which is attributable to the application of section 72(r) of such Code (as added by this Act) with respect to windfall benefits received after September 30, 1988 (C)  Windfall benefits defined For purposes of this paragraph, the term windfall benefits means any benefit paid under section 3(h), 4(e), or 4(h) of the Railroad Retirement Act of 1974 [sections 231b(h), 231(e), (h) of this title]. (2)  Transfers The amounts appropriated by paragraph (1) shall be transferred from time to time (but not less frequently than quarterly) from the general fund of the Treasury on the basis of estimates made by the Secretary of the Treasury of the amounts referred to in paragraph (1). Any such quarterly payment shall be made on the first day of such quarter and shall take into account benefits estimated to be received during such quarter. Proper adjustments shall be made in the amounts subsequently transferred to the extent prior estimates were in excess of or less than the amounts required to be transferred. (3)  Revenue increases from tax on supplemental annuities not included Paragraph (1) shall not apply to tax liabilities attributable to supplemental annuities paid under section 2(b) of the Railroad Retirement Act of 1974 [ section 231a(b) of this title Tax Used To Repay Loans Made to Railroad Unemployment Insurance Account Pub. L. 9876, title II,  232 Aug. 12, 1983 97 Stat. 429 Pub. L. 99272, title XIII,  13301(c) Apr. 7, 1986 100 Stat. 326 Pub. L. 99514,  2 Oct. 22, 1986 100 Stat. 2095 Pub. L. 100647, title VII,  7106(c)(6) Nov. 10, 1988 102 Stat. 3774 Pub. L. 101508, title XI,  11704(a)(40) Nov. 5, 1990 104 Stat. 1388520  (a)  Transfer to Railroad Retirement Account. (1)  In general The Secretary of the Treasury shall transfer from the general fund of the Treasury to the Railroad Retirement Account an amount equal to the additional railroad unemployment taxes received in the Treasury. (2)  Taxes credited against loans to railroad unemployment insurance account. (A)  Taxes attributable to basic rate to reduce railroad unemployment loans made before october 1, 1985 So much of the amount transferred under paragraph (1) as is not attributable to the surtax rate under section 7106(b) of the Railroad Unemployment Insurance and Retirement Improvement Act of 1988 [ Pub. L. 100647 section 3321 of Title 26 October 1, 1985 (B)  Taxes attributable to surtax rate to reduce railroad unemployment loans made after september 30, 1985 So much of the amount transferred under paragraph (1) as is attributable to the surtax rate under section 7106(b) of such Act shall be credited against, and operate to reduce, the outstanding balance of railroad unemployment loans made after September 30, 1985 (b)  Transfers Made Monthly Transfers under subsection (a) shall be made at least monthly on the basis of estimates made by the Secretary of the Treasury of the amount of the additional railroad unemployment taxes received in the Treasury. Proper adjustments shall be made in the amount subsequently transferred to the extent prior estimates were in excess of or were less than the amounts required to be transferred. (c)  Transfers to Railroad Unemployment Fund After Loans Repaid If (1) the amount described in subparagraph (A) or (B) of subsection (a)(2) which (but for this subsection) would be transferred to the Railroad Retirement Account under subsection (a), exceeds (2) the outstanding balance of railroad unemployment loans (as of the time of such transfer) against which the amount described in such subparagraph may be credited under such subparagraph, such transfer (to the extent it exceeds such outstanding balance) shall be made to the Railroad Unemployment Account. (d)  Definitions For purposes of this section (1)  Additional railroad unemployment taxes The term additional railroad unemployment taxes means the taxes imposed by chapter 23A of the Internal Revenue Code of 1986 [ 26 U.S.C. 3321 (2)  Railroad unemployment account The term Railroad Unemployment Account means the railroad unemployment insurance account in the unemployment trust fund established pursuant to section 904 of the Social Security Act [ 42 U.S.C. 1104 (3)  Railroad unemployment loans The term railroad unemployment loans means transfers under section 10(d) of the Railroad Unemployment Insurance Act [ 45 U.S.C. 360(d) Reimbursement of Railroad Retirement Act Accounts; Unnegotiated Benefit Checks Defined Pub. L. 9876, title IV,  417(c) Aug. 12, 1983 97 Stat. 437  (1) The Secretary of the Treasury shall transfer from the general fund of the Treasury to each Account established in the Treasury for the payment of benefits under the Railroad Retirement Act of 1974 [this subchapter] in the month following the month in which this section is enacted [Aug. 1983] and in each of the next succeeding months until May, 1985, such sums as may be necessary to reimburse such Accounts in the proportionate amount of all checks (including interest thereon) attributable to such Accounts which the Secretary and the Board jointly determine to be unnegotiated benefit checks, to the extent provided in advance in appropriation Acts. After any amounts authorized by this subsection have been transferred to an Account or Accounts with respect to any benefit check, the provisions of paragraphs (3) and (4) of section 15(i) of the Railroad Retirement Act of 1974 (as added by subsection (a) of this section) [subsec. (i)(3), (4) of this section] shall be applicable to such check. (2) As used in paragraph (1) of this subsection, the term unnegotiated benefit checks means checks for benefits under the Railroad Retirement Act of 1974 [this subchapter] or under the Railroad Retirement Act of 1937 [subchapter III of this chapter] which are issued prior to May 1, 1985 Treatment of Certain Credits as Amounts Covered Into the Treasury Pub. L. 9821, title I,  123(b)(5) Apr. 20, 1983 97 Stat. 89 Pub. L. 99514,  2 Oct. 22, 1986 100 Stat. 2095 For purposes of subsection (a) of section 15 of the Railroad Retirement Act of 1974 [subsec. (a) of this section], amounts allowed as a credit under subsection (e) of section 3510 of the Internal Revenue Code of 1986 [ 26 U.S.C. 3510(e) 26 U.S.C. 3201(a) Analysis of Options That Will Assure Long-Term Financial Integrity of the Railroad Retirement System: Report and Recommendations to Congress Pub. L. 9735, title XI,  1126(a) Aug. 13, 1981 95 Stat. 639 Oct. 1, 1982  231n1. Social Security Equivalent Benefit Account (a) Establishment There is hereby created an account in the Treasury of the United States to be known as the Social Security Equivalent Benefit Account. (b) Transfers, etc., to Social Security Equivalent Benefit Account (1) There is hereby appropriated to the Social Security Equivalent Benefit Account for each fiscal year, beginning with the fiscal year beginning October 1, 1984 (A) Amounts covered into the Treasury (minus refunds) during such fiscal year under sections 3201(a), 3211(a)(1), and 3221(a) of the Railroad Retirement Tax Act [ 26 U.S.C. 3201(a) (B) The amount which (but for this section) would have been transferred to the Railroad Retirement Account under section 121(e) of the Social Security Amendments of 1983 to the extent that the amount which would have been so transferred is attributable to taxation of social security equivalent benefits. Amounts appropriated to the Railroad Retirement Account shall be appropriately reduced to take into account the amounts appropriated under this paragraph to the Social Security Equivalent Benefit Account. (2) On and after October 1, 1984 section 231f(c) of this title October 1, 1984 section 231f(c) of this title (3) To the extent that the authorization for appropriation contained in section 231n(b) of this title October 1, 1984 (4) Amounts appropriated or transferred to the Social Security Equivalent Benefit Account under this section shall be credited or transferred to such Account at the same time and in the same manner as such amounts would have been credited or transferred to the Railroad Retirement Account but for this section. (c) Availability and transfer of funds (1) Except as otherwise provided in this section, amounts in the Social Security Equivalent Benefit Account shall be available only for purposes of paying social security equivalent benefits under this subchapter and to provide for the administrative expenses of the Board allocable to social security equivalent benefits. The Secretary shall from time to time transfer to the disbursing agent under section 231f(b)(4) of this title (2) On and after October 1, 1984 section 231f(c) of this title (d) Transfers to Social Security Equivalent Benefit Account and National Railroad Retirement Investment Trust (1) Whenever the Board finds that the balance in the Social Security Equivalent Benefit Account will be insufficient to pay social security equivalent benefits which it estimates are due in any month, it shall request the Secretary of the Treasury to transfer from the Railroad Retirement Account to the credit of the Social Security Equivalent Benefit Account such moneys as the Board estimates will be necessary for the payment of such benefits, and the Secretary shall make such transfer. (2) Upon establishment of the National Railroad Retirement Investment Trust and from time to time thereafter, the Board shall direct the Secretary of the Treasury to transfer, in such manner as will maximize the investment returns to the Railroad Retirement system, the balance of the Social Security Equivalent Benefit Account not needed to pay current benefits and administrative expenses required to be paid from that Account to the National Railroad Retirement Investment Trust or the Railroad Retirement Account, and the Secretary shall make that transfer. Any balance transferred under this paragraph shall be used by the National Railroad Retirement Investment Trust or the Railroad Retirement Board only to pay benefits under this subchapter or to purchase obligations of the United States (either directly or through a commingled account consisting only of such obligations) that are backed by the full faith and credit of the United States pursuant to chapter 31 of title 31. The proceeds of sales of, and the interest income from, such obligations shall be used by the Trust only to pay benefits under this subchapter or to purchase such additional obligations. (e) Applicability of section 231n The provisions of subsections (e), (f), and (g) of section 231n of this title (f) References to Railroad Retirement Account deemed references to Social Security Equivalent Benefit Account; social security equivalent benefits defined (1) For purposes of making payments of social security equivalent benefits, references in the 1 1 (2) For purposes of this section, the term social security equivalent benefits means benefits payable under this subchapter which are of a kind taken into account in determining the amount of transfers made under section 231f(c)(2) of this title ( Aug. 29, 1935, ch. 812,  15A Pub. L. 9876, title V,  501(a) Aug. 12, 1983 97 Stat. 438 Pub. L. 10790, title I,  107(c) Dec. 21, 2001 115 Stat. 888 Pub. L. 108203, title IV,  426(e) Mar. 2, 2004 118 Stat. 538  Editorial Notes  References in Text Section 121(e) of the Social Security Amendments of 1983, referred to in subsec. (b)(1)(B), is section 121(e) of Pub. L. 9821 Apr. 20, 1983 97 Stat. 83 section 401 of Title 42 Amendments 2004Subsec. (d)(2). Pub. L. 108203 2001Subsec. (c)(1). Pub. L. 10790,  107(c)(2) section 231f(b)(4) of this title Subsec. (d)(1). Pub. L. 10790,  107(c)(3) section 231f(c) of this title Subsec. (d)(2). Pub. L. 10790,  107(c)(1) (A) amounts in the Railroad Retirement Account will not be sufficient to pay the annuities which it estimates are due, or will become due, from such Account, and (B) the transfer under this paragraph will not jeopardize the present or future payment of social security equivalent benefits, the Board shall request the Secretary of the Treasury to transfer from the Social Security Equivalent Benefit Account to the Railroad Retirement Account such moneys as the Board estimates will be necessary for the payment of such annuities, and the Secretary shall make such transfer. No transfer under this paragraph shall be required to be repaid. Statutory Notes and Related Subsidiaries Effective Date Pub. L. 9876, title V,  501(b)(1) Aug. 12, 1983 97 Stat. 440 The amendment made by this section [enacting this section] shall take effect on October 1, 1984 Treatment of Tier 1 Portion of Tax Imposed With Respect to Compensation Paid Before 1985 Pub. L. 9876, title V,  501(b)(2) Aug. 12, 1983 97 Stat. 440 Pub. L. 99514,  2 Oct. 22, 1986 100 Stat. 2095  (A) The tier 1 portion of the tax imposed by section 3201, 3211, or 3221 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] [ 26 U.S.C. 3201 (B) For purposes of subparagraph (A), the tier 1 portion of any tax is so much of such tax as is determined by reference to the rates of taxes imposed by chapter 21 of the Internal Revenue Code of 1986 [ 26 U.S.C. 3101  231o. Private pensions  Nothing in this subchapter shall be taken as restricting or discouraging payment by employers to retired employees of pensions or gratuities in addition to the annuities paid to such employees under this subchapter, nor shall this subchapter be taken as terminating any trust heretofore created for the payment of such pensions or gratuities. The annuity, except a supplemental annuity under section 231a(b) of this title ( Aug. 29, 1935, ch. 812,  16 June 24, 1937, ch. 382 50 Stat. 307 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1349  231p. Free transportation  It shall not be unlawful for carriers by railroad subject to this subchapter to furnish free transportation to individuals receiving annuities under this subchapter in the same manner as such transportation is furnished to employees in their service. ( Aug. 29, 1935, ch. 812,  17 June 24, 1937, ch. 382 50 Stat. 307 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1349  231q. Crediting service under Social Security Act (1) Except as provided in subdivision (2), the term employment as defined in section 216 of the Social Security Act [ 42 U.S.C. 416 section 231(b) of this title (2) For the purpose of determining (i) monthly insurance benefits under the Social Security Act [ 42 U.S.C. 301 December 31, 1995 December 31, 1995 December 31, 1995 42 U.S.C. 403 42 U.S.C. 410(a)(9) section 231(d) of this title ( Aug. 29, 1935, ch. 812,  18 June 24, 1937, ch. 382 50 Stat. 307 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1349 Pub. L. 9735, title XI,  1125 Aug. 13, 1981 95 Stat. 639 Pub. L. 10790, title I,  103(g) Dec. 21, 2001 115 Stat. 881  Editorial Notes  References in Text The Social Security Act, referred to in par. (2), is act Aug. 14, 1935, ch. 531 49 Stat. 620 section 1305 of Title 42 Amendments 2001Par. (2). Pub. L. 10790 December 31, 1995 December 31, 1995 1981Par. (2). Pub. L. 9735 Statutory Notes and Related Subsidiaries Effective Date of 2001 Amendment Amendment by Pub. L. 10790 Jan. 1, 2002 section 103(j) of Pub. L. 10790 section 405 of Title 42 Effective Date of 1981 Amendment Amendment by Pub. L. 9735 Jan. 1, 1975 section 1129(b)(2) of Pub. L. 9735 section 231 of this title  231r. Automatic benefit eligibility requirement adjustments (a) Reduced benefits If title II of the Social Security Act [ 42 U.S.C. 401 December 31, 1974 section 231a of this title section 231a of this title Provided, however section 231a of this title 42 U.S.C. 301 December 31, 1974 section 231a of this title December 31, 1974 Provided further (b) Additional eligible beneficiaries If title II of the Social Security Act [ 42 U.S.C. 401 December 31, 1974 January 1, 1975 section 231a of this title 42 U.S.C. 301 December 31, 1936 (c) Reduced conditions of entitlement; expanded benefits If section 226 [ 42 U.S.C. 426 42 U.S.C. 1395 December 31, 1974 December 31, 1974 December 31, 1936 42 U.S.C. 301 December 31, 1995 (d) Limitations Notwithstanding the provisions of subsections (a), (b), and (c) of this section (1) No annuity or other benefit shall be payable to any person on the basis of the compensation and years of service of an individual by reason of the provisions of subsection (a), (b), or (c) of this section if, and to the extent that, such annuity or other benefit would duplicate a benefit payable to such person on the basis of such compensation and years of service under a provision of the Social Security Act [ 42 U.S.C. 301 December 31, 1974 (2) No annuity shall be payable to a person by reason of subsection (a) or (b) of this section unless the individual upon whose compensation and years of service such annuity would be based will have (A) completed ten years of service (or five or more years of service, all of which accrues after December 31, 1995 (3) If the Social Security Act [ 42 U.S.C. 301 December 31, 1974 (4) If and to the extent that an annuity or other benefit payable to a person by reason of the provisions of subsection (a), (b), or (c) of this section duplicates an annuity or other benefit then payable to such person under other provisions of this subchapter, such annuity or other benefit then payable under other provisions of this subchapter shall be reduced (but not below zero) by the amount of the annuity or other benefit payable by reason of subsection (a), (b), or (c). ( Aug. 29, 1935, ch. 812,  19 June 24, 1937, ch. 382 50 Stat. 307 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1350 Pub. L. 9688, title V,  509(b) Oct. 17, 1979 93 Stat. 695 Pub. L. 10790, title I,  103(h) Dec. 21, 2001 115 Stat. 881  Editorial Notes  References in Text The Social Security Act, referred to in subsecs. (a), (b), (c), and (d)(1), (3), is act Aug. 14, 1935, ch. 531 49 Stat. 620 section 1305 of Title 42 Sections 204(a)(3), 204(a)(4), 206(3), 207(3) of title II of this Act, referred to in subsec. (d)(3), are sections 204(a)(3), 204(a)(4), 206(3), 207(3) of title II of Pub. L. 93445 section 231 of this title Amendments 2001Subsec. (c). Pub. L. 10790,  103(h)(1) December 31, 1995 Subsec. (d)(2). Pub. L. 10790,  103(h)(2) December 31, 1995 Statutory Notes and Related Subsidiaries  Change of Name Secretary of Health and Human Services substituted for Secretary of Health, Education, and Welfare in subsec. (c) pursuant to section 509(b) of Pub. L. 9688 section 3508(b) of Title 20 Effective Date of 2001 Amendment Amendment by Pub. L. 10790 Jan. 1, 2002 section 103(j) of Pub. L. 10790 section 405 of Title 42  231s. Separability  If any provision of this subchapter, or the application thereof to any person or circumstance, should be held invalid, the remainder of such subchapter, or the application of such provision to other persons or circumstances, shall not be affected thereby. ( Aug. 29, 1935, ch. 812,  20 June 24, 1937, ch. 382 50 Stat. 307 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1351  231t. Short title  This subchapter may be cited as the Railroad Retirement Act of 1974. ( Aug. 29, 1935, ch. 812,  21 June 24, 1937, ch. 382 50 Stat. 307 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1351  Statutory Notes and Related Subsidiaries Short Title of 2007 Amendment Pub. L. 109478,  1 Jan. 12, 2007 120 Stat. 3573 This Act [amending section 231a of this title section 231a of this title Short Title of 2006 Amendment Pub. L. 109305,  1 Oct. 6, 2006 120 Stat. 1719 This Act [amending section 231f of this title Short Title of 2001 Amendment Pub. L. 10790,  1(a) Dec. 21, 2001 115 Stat. 878 This Act [enacting section 231v of this title section 405 of Title 42 section 405 of Title 42 Short Title of 1983 Amendment Pub. L. 9876,  1 Aug. 12, 1983 97 Stat. 411 That this Act [enacting sections 231f1, 231n1 and 231v of this title and sections 3321 to 3323 and 6050G of Title 26, Internal Revenue Code, amending sections 231 to 231f, 231m, 231n, 231u, 351 to 354, 358, and 360 of this title, sections 72, 86, 105, 3201, 3202, 3211, 3221, 3231, 6157, 6201, 6317, 6513, and 6601 of Title 26, and section 430 of Title 42  231u. Benefit preservation (a) (1) On or before May 1 of each year beginning in 1984, the Railroad Retirement Board shall prepare a five-year projection of anticipated revenues to and payments from the Railroad Retirement Account to determine the ability of such Account to pay benefits in each of the next succeeding five calendar years. On or before May 1 of each year beginning in 2003, the Railroad Retirement Board shall compute its projection of the account benefits ratio and the average account benefits ratio (as defined by section 3241(c) of the Internal Revenue Code of 1986 [ 26 U.S.C. 3241(c) (A) the first fiscal year during which benefits under this subchapter must be reduced, in the absence of any adjustments, because insufficient funds (including any general revenue borrowing authority under this subchapter) would preclude payment of full benefits (other than benfits 1 1 (B) the first fiscal year during which the Board would recommend suspension of the authority to borrow contained in section 360(d) of this title (C) the amount, if any, of adjustments (stated in terms of percentage of taxable payroll), and any other changes such as cash flow adjustments, necessary to preserve the financial solvency of the Railroad Retirement Account, if such adjustments were effective at the beginning of the next succeeding fiscal year. (2) Not less than 20 nor more than 30 days after the submission of a written report under this subsection which indicates that, in the absence of any adjustments, the Railroad Retirement Account will contain insufficient funds to pay the full amount of the benefits under this subchapter which are payable from that Account at some time during the five-year period covered by the report, the Board shall publish such report in the Federal Register. (b) Not later than 180 days after the publication in the Federal Register of any Board report referred to in subsection (a) of this section which states an amount of adjustments (in terms of percentage of taxable payroll) necessary to preserve the financial solvency of the railroad retirement account (1) representatives of railroad employees and carriers shall, jointly or separately, submit to the President, the Speaker of the House, and the President of the Senate, funding proposals designed to preserve the financial solvency of the Railroad Retirement Account; and (2) the President shall submit to the Speaker of the House and the President of the Senate such recommendations as he may deem appropriate with respect to the preservation of the Railroad Retirement Account, including a specific proposal to assure continuous payments of social security equivalent benefits by separating the social security equivalent benefits from industry pension equivalent benefits payable under this subchapter. (c) Not later than 180 days after the submission of a written report under subsection (a) of this section which states the first fiscal year during which benefits under this subchapter must be reduced because insufficient funds would preclude payment of full benefits for every month of that year, the Board shall issue and publish in the Federal Register such regulations as may be necessary which shall be designed to (1) provide a constant level of benefits at the maximum level possible for every month of that fiscal year; and (2) provide that no individual shall receive less during that fiscal year than the amount otherwise payable if the employees service as an employee after December 31, 1936 42 U.S.C. 301 Unless otherwise provided by law enacted after August 13, 1981 ( Aug. 29, 1935, ch. 812,  22 Pub. L. 9735, title XI,  1126(b) Aug. 13, 1981 95 Stat. 639 Pub. L. 9876, title I,  105 Aug. 12, 1983 97 Stat. 416 Pub. L. 10466, title II,  2221(b) Dec. 21, 1995 109 Stat. 733 Pub. L. 10790, title I,  108(a) Dec. 21, 2001 115 Stat. 890  Editorial Notes  References in Text The Social Security Act, referred to in subsec. (c)(2), is act Aug. 14, 1935, ch. 531 49 Stat. 620 section 1305 of Title 42 Amendments 2001Subsec. (a)(1). Pub. L. 10790 1995Subsec. (a)(1). Pub. L. 10466 1983Subsec. (a). Pub. L. 9876 Statutory Notes and Related Subsidiaries Effective Date Section effective Oct. 1, 1981 section 1129(g) of Pub. L. 9735 section 231 of this title  231v. Computation and certification of account benefit ratios (a) Initial computation and certification On or before November 1, 2003 (1) compute the account benefits ratios for each of the most recent 10 preceding fiscal years, and (2) certify the account benefits ratios for each such fiscal year to the Secretary of the Treasury. (b) Computations and certifications after 2003 On or before November 1 of each year after 2003, the Railroad Retirement Board shall (1) compute the account benefits ratio for the fiscal year ending in such year, and (2) certify the account benefits ratio for such fiscal year to the Secretary of the Treasury. (c) Definition As used in this section, the term account benefits ratio has the meaning given that term in section 3241(c) of the Internal Revenue Code of 1986 [ 26 U.S.C. 3241(c) ( Aug. 29, 1935, ch. 812,  23 Pub. L. 10790, title I,  108(b) Dec. 21, 2001 115 Stat. 890  Editorial Notes Prior Provisions A prior section 231v, act Aug. 29, 1935, ch. 812,  23 Aug. 12, 1983 Pub. L. 9876, title IV,  418 97 Stat. 438 Pub. L. 100504, title I Oct. 18, 1988 102 Stat. 2517 Oct. 18, 1988 CHAPTER 10 TAX ON CARRIERS AND EMPLOYEES  241 to 253. Repealed. June 29, 1937, ch. 405,  11 50 Stat. 440   Section 241, act Aug. 29, 1935, ch. 813,  1 49 Stat. 974  Section 242, act Aug. 29, 1935, ch. 813,  2 49 Stat. 975  Section 243, act Aug. 29, 1935, ch. 813,  3 49 Stat. 975  Section 244, act Aug. 29, 1935, ch. 813,  4 49 Stat. 975  Section 245, act Aug. 29, 1935, ch. 813,  5 49 Stat. 975  Section 246, act Aug. 29, 1935, ch. 813,  6 49 Stat. 975  Section 247, act Aug. 29, 1935, ch. 813,  7 49 Stat. 975  Section 248, act Aug. 29, 1935, ch. 813,  8 49 Stat. 976  Section 249, act Aug. 29, 1935, ch. 813,  9 49 Stat. 976  Section 250, act Aug. 29, 1935, ch. 813,  10 49 Stat. 976  Section 251, act Aug. 29, 1935, ch. 813,  11 49 Stat. 976  Section 252, acts Aug. 29, 1935, ch. 813,  12 49 Stat. 976 Feb. 27, 1937, ch. 19 50 Stat. 23  Section 253, act Aug. 29, 1935, ch. 813,  13 49 Stat. 977  261 to 273. Omitted  Editorial Notes Codification Sections 261 to 273 were omitted pursuant to section 4 of act Feb. 10, 1939, ch. 2 53 Stat. 1 Feb. 10, 1939 act Aug. 16, 1954, ch. 736 68A Stat. 919 section 7851 of Title 26 section 7807 of Title 26 Section 261, acts June 29, 1937, ch. 405,  1 50 Stat. 435 Aug. 13, 1940, ch. 664 54 Stat. 785 Section 262, act June 29, 1937, ch. 405,  2 50 Stat. 437 Section 263, act June 29, 1937, ch. 405,  3 50 Stat. 437 Section 264, act June 29, 1937, ch. 405,  4 50 Stat. 438 Section 265, act June 29, 1937, ch. 405,  5 50 Stat. 438 Section 266, act June 29, 1937, ch. 405,  6 50 Stat. 439 Section 267, act June 29, 1937, ch. 405,  7 50 Stat. 439 Section 268, act June 29, 1937, ch. 405,  8 50 Stat. 439 Section 269, act June 29, 1937, ch. 405,  9 50 Stat. 439 Section 270, act June 29, 1937, ch. 405,  10 50 Stat. 440 Section 271, act June 29, 1937, ch. 405,  11 50 Stat. 440 Section 272, act June 29, 1937, ch. 405,  12 50 Stat. 440 Section 273, act June 29, 1937, ch. 405,  13 50 Stat. 440 For provisions formerly set out in this subchapter which were covered by sections of the Internal Revenue Code of 1939, see the sections of the Internal Revenue Code of 1986, Title 26, Internal Revenue Code, indicated in the following table:     Omitted sections I.R.C. 1939 I.R.C. 1986  261 (as amended Aug. 13, 1940, ch. 664 54 Stat. 785 1532 3231, 7701. 262 1500, 1501 3201, 3202, 6205(a)(1), 6413(a)(1). 263 1520, 1521 3221, 6205(a)(1), 6413(a)(1). 264 1502, 1522 6205(b), 6413(b). 265 1510, 1511 3211, 3212. 266 1503, 1508, 1512 3502. 267 1422, 1530, 1531, 1536 3501, 3503, 6011(a), 6071, 6081(a), 6091(a), 6151(a), 6313, 6601(a), (f)(1). 268 1534 3232. 269 1426(b)(9), (10), 1428 3121(b)(9), (10), 3124. 270 3802 7511. 271  272 1535 7805(a), (c). 273  Statutory Notes and Related Subsidiaries Compensation From Local Division of Railway-Labor-Organization Employer TaxUnpaid Before July 1, 1940 Act Oct. 10, 1940, ch. 842,  27(b) 54 Stat. 1101 July 1, 1940 CHAPTER 11 RAILROAD UNEMPLOYMENT INSURANCE    Sec.  351. Definitions.  352. Benefits.  353. Qualifying condition.  354. Disqualifying conditions.  355. Claims for benefits.  355a. Acceptance of claims for benefits.  356. Returns of compensation; conclusiveness; failure to make.  357. Free transportation.  358. Contributions.  359. Penalties.  360. Railroad unemployment insurance account.  361. Railroad unemployment insurance administration fund.  362. Duties and powers of Board.  363. Exclusiveness of provisions; transfers from State unemployment compensation accounts to railroad unemployment insurance account.  363a. Refunds of State unemployment contributions by employees; amount; application period; definitions.  364. District of Columbia account, transfer of funds to railroad unemployment insurance account.  365. Omitted.  366. Separability.  366a. Effect of Internal Revenue Code.  367. Short title.  368. Repealed.  369. Annual report.  351. Definitions For the purposes of this chapter, except when used in amending the provisions of other Acts (a) The term employer means any carrier (as defined in subsection (b) of this section), and any company which is directly or indirectly owned or controlled by one or more such carriers or under common control therewith, and which operates any equipment or facility or performs any service (except trucking service, casual service, and the casual operation of equipment or facilities) in connection with the transportation of passengers or property by railroad, or the receipt, delivery, elevation, transfer in transit, refrigeration or icing, storage, or handling of property transported by railroad, and any receiver, trustee, or other individual or body, judicial or otherwise, when in the possession of the property or operating all or any part of the business of any such employer: Provided, however 45 U.S.C. 151 (b) The term carrier means a railroad subject to the jurisdiction of the Surface Transportation Board under part A of subtitle IV of title 49. (c) The term company includes corporations, associations, and joint-stock companies. (d) The term employee (except when used in phrases establishing a different meaning) means any individual who is or has been (i) in the service of one or more employers for compensation, or (ii) an employee representative. The term employee shall include an employee of a local lodge or division defined as an employer in subsection (a) only if he was in the service of a carrier on or after August 29, 1935 The term employee shall not include any individual while such individual is engaged in the physical operations consisting of the mining of coal, the preparation of coal, the handling (other than movement by rail with standard railroad locomotives) of coal not beyond the mine tipple, or the loading of coal at the tipple. (e) An individual is in the service of an employer whether his service is rendered within or without the United States if (i) he is subject to the continuing authority of the employer to supervise and direct the manner of rendition of his service, or he is rendering professional or technical services and is integrated into the staff of the employer, or he is rendering, on the property used in the employers operations, other personal services the rendition of which is integrated into the employers operations, and (ii) he renders such service for compensation: Provided, however Provided further (f) The term employee representative means any officer or official representative of a railway labor organization other than a labor organization included in the term employer as defined in subsection (a) who before or after August 29, 1935 45 U.S.C. 151 (g) The term employment means service performed as an employee. For the purposes of determining eligibility for and the amount of benefits and the amount of contributions due pursuant to this chapter, employment after June 30, 1940 45 U.S.C. 231 (h) The term registration period means, with respect to any employee, the period which begins with the first day for which such employee registers at an employment office in accordance with such regulations as the Board may prescribe, and ends with whichever is the earlier of (i) the thirteenth day thereafter, or (ii) the day immediately preceding the day for which he next registers at a different employment office; and thereafter each period which begins with the first day for which he next registers at an employment office after the end of his last preceding registration period which began with a day for which he registered at an employment office and ends with whichever is the earlier of (i) the thirteenth day thereafter, or (ii) the day immediately preceding the day for which he next registers at a different employment office. The term registration period means also, with respect to any employee, the period which begins with the first day with respect to which a statement of sickness for a period of continuing sickness (as defined in section 352(a) of this title section 352(a) of this title section 352(a) of this title (i) (1)  In General The term compensation means any form of money remuneration, including pay for time lost but excluding tips, paid for services rendered as an employee to one or more employers, or as an employee representative, except that in computing the compensation paid to any employee, no part of any months compensation in excess of the monthly compensation base (as defined in subdivision (2)) for any month shall be recognized. Solely for the purpose of determining the compensation received by an employee in a base year, the term compensation shall include any separation allowance or subsistence allowance paid under any benefit schedule provided under section 701 1 1 45 U.S.C. 797 45 U.S.C. 797a 45 U.S.C. 797 1 section 1101(a)(15) of title 8 section 356 of this title (2)  Monthly Compensation Base. (A)  In general For purposes of subdivision (1), the term monthly compensation base means the amount (i) of $400 for calendar months before January 1, 1984 (ii) of $600 for calendar months after December 31, 1983 January 1, 1989 (iii) computed under subparagraph (B) for months after December 31, 1988 (B)  Computation. (i)  In general The amount of the monthly compensation base for each calendar year beginning after December 31, 1988 (I) $600; or (II) the amount, as rounded under clause (iii) if applicable, computed under the formula:          A37,800  B=600 A 1+       56,700 (ii)  Meaning of symbols For the purposes of the formula in clause (i) (I) B is the dollar amount of the monthly compensation base; and (II) A is the amount of the applicable base with respect to tier 1 taxes, for the calendar year for which the monthly compensation base is being computed, as determined under section 3231(e)(2) of title 26 (iii)  Rounding rule If the monthly compensation base computed under this formula is not a multiple of $5, it shall be rounded to the nearest multiple of $5, with such rounding being upward in the event the amount computed is equidistant between two multiples of $5. (j) The term remuneration means pay for services for hire, including pay for time lost, and tips, but pay for time lost shall be deemed earned on the day on which such time is lost. The term remuneration includes also earned income other than for services for hire if the accrual thereof in whole or in part is ascertainable with respect to a particular day or particular days. The term remuneration does not include any money payments received pursuant to any nongovernmental plan for unemployment insurance, maternity insurance, or sickness insurance. (k) Subject to the provisions of section 354 of this title Provided, however Provided further Provided further For the purpose of this subsection, the term subsidiary remuneration means, with respect to any employee, remuneration not in excess of an average of $15 a day for the period with respect to which such remuneration is payable or accrues, if the work from which the remuneration is derived (i) requires substantially less than full time as determined by generally prevailing standards, and (ii) is susceptible of performance at such times and under such circumstances as not to be inconsistent with the holding of normal full-time employment in another occupation. (l) (1) The term benefits (except in phrases clearly designating other payments) means the money payments payable to an employee as provided in this chapter, with respect to his unemployment or sickness. (2) The term statement of sickness means a statement with respect to days of sickness of an employee, executed in such manner and form by an individual duly authorized pursuant to section 362(i) of this title (m) The term benefit year means the twelve-month period beginning July 1 of any year and ending June 30 of the next year, except that a registration period beginning in June and ending in July shall be deemed to be in the benefit year ending in such month of June. (n) The term base year means the completed calendar year immediately preceding the beginning of the benefit year. (o) The term employment office means a free employment office operated by the Board, or designated as such by the Board pursuant to section 362(i) of this title (p) The term account means the railroad unemployment insurance account established pursuant to section 360 of this title (q) The term fund means the railroad unemployment insurance administration fund, established pursuant to section 361 of this title (r) The term Board means the Railroad Retirement Board. (s) The term United States, when used in a geographical sense, means the States and the District of Columbia. (t) The term State means any of the States or the District of Columbia. (u) Any reference in this chapter to any other Act of Congress, including such reference in amendments to other Acts, includes a reference to such other Act as amended from time to time. ( June 25, 1938, ch. 680,  1 52 Stat. 1094 June 20, 1939, ch. 227 53 Stat. 845 Aug. 13, 1940, ch. 664 54 Stat. 785 Oct. 10, 1940, ch. 842 54 Stat. 1094 Apr. 8, 1942, ch. 227,  15 56 Stat. 210 July 31, 1946, ch. 709 60 Stat. 722 Oct. 30, 1951, ch. 632,  26 65 Stat. 691 Aug. 31, 1954, ch. 1164 68 Stat. 1041 Pub. L. 85927 Sept. 6, 1958 72 Stat. 1782 Pub. L. 8628 May 19, 1959 73 Stat. 30 Pub. L. 89700, title II,  201 Oct. 30, 1966 80 Stat. 1087 Pub. L. 90257, title II,  201 Feb. 15, 1968 82 Stat. 23 Pub. L. 90624,  3 Oct. 22, 1968 82 Stat. 1316 Pub. L. 9492, title I,  1(a) Aug. 9, 1975 89 Stat. 461 Pub. L. 9876, title IV Aug. 12, 1983 97 Stat. 434 Pub. L. 100647, title VII Nov. 10, 1988 102 Stat. 3757 Pub. L. 10488, title III,  324(1) Dec. 29, 1995 109 Stat. 950  Editorial Notes  References in Text This chapter, referred to in introductory provisions and subsecs. (g), ( l act June 25, 1938, ch. 680 52 Stat. 1094 section 1107 of Title 42 section 367 of this title The Railway Labor Act, referred to in subsecs. (a) and (f), is act May 20, 1926, ch. 347 44 Stat. 577 section 151 of this title The Railroad Retirement Act, referred to in subsec. (g), probably means the Railroad Retirement Act of 1937, act Aug. 29, 1935, ch. 812 act June 24, 1937, ch. 382, part I 50 Stat. 307 Pub. L. 93445, title I Oct. 16, 1974 88 Stat. 1305 The Regional Rail Reorganization Act of 1973, referred to in subsec. (i)(1), is Pub. L. 93236 Jan. 2, 1974 87 Stat. 985 45 U.S.C. 797 Pub. L. 99509, title IV,  4024(c) Oct. 21, 1986 100 Stat. 1904 Apr. 2, 1987 section 701 of this title Amendments 1995Subsec. (a). Pub. L. 10488,  324(1) Subsec. (b). Pub. L. 10488,  324(2) 1988Subsec. (i). Pub. L. 100647,  7101(a) Provided, however July 1, 1954 June 30, 1954 Subsec. (k). Pub. L. 100647,  7203(a) Pub. L. 100647,  7101(b) 1983Subsec. (i). Pub. L. 9876,  503(b) Pub. L. 9876,  403(b) Subsec. (j). Pub. L. 9876,  402(b) Subsec. (k). Pub. L. 9876,  411(a)(1) 1975Subsec. (h). Pub. L. 9492,  1(a) section 352(a) of this title Subsec. (k). Pub. L. 9492,  1(b) 1968Subsec. (i). Pub. L. 90624 Subsec. (k). Pub. L. 90257,  201(a) Subsec. ( l Pub. L. 90257,  201(b) l l l l Subsec. ( l Pub. L. 90257,  201(b) l l Subsec. ( l Pub. L. 90257,  201(b) l l l 1966Subsec. (i). Pub. L. 89700,  201(a) section 356 of this title section 358 of this title Subsec. (k). Pub. L. 89700,  201(b) Subsecs. (s), (t). Pub. L. 89700,  201(c) 1959Subsec. (i). Pub. L. 8628,  301(a) Subsec. (k). Pub. L. 8628,  301(b) 1958Subsec. (k). Pub. L. 85927,  201(a) Subsec. (q). Pub. L. 85927,  201(b) 1954Subsec. (g). Act Aug. 31, 1954 Subsec. (i). Act Aug. 31, 1954 June 30, 1954 Subsec. (k). Act Aug. 31, 1954 1951Subsec. (k). Act Oct. 30, 1951 1946Subsec. (e). Act July 31, 1946 Subsec. (h). Act July 31, 1946 Subsec. (i). Act July 31, 1946 Subsec. (j). Act July 31, 1946 Subsec. (k)(2). Act July 31, 1946 Subsec. ( l July 31, 1946 1942Subsec. (e). Act Apr. 8, 1942 1940Subsec. (a). Act Aug. 13, 1940 Subsec. (d). Act Aug. 13, 1940 Subsec. ( l Oct. 10, 1940 l l Oct. 10, 1940 Subsec. (m). Act Oct. 10, 1940 l Oct. 10, 1940 Subsec. (n). Act Oct. 10, 1940 l Oct. 10, 1940 Subsec. (g). Act Oct. 10, 1940 June 30, 1940 Subsec. (h). Act Oct. 10, 1940 Subsec. (j). Act Oct 10, 1940,  4, inserted provisions relating to earned income other than for services for hire to definition of remuneration. Subsec. (k). Act Oct. 10, 1940 1939Subsec. (d). Act June 20, 1939 Subsec. (e). Act June 20, 1939 Subsec. (f). Act June 20, 1939 Subsec. (h). Act June 20, 1939 Subsec. (i). Act June 20, 1939 Subsec. (k). Act June 20, 1939 Subsec. (n). Act June 20, 1939 Statutory Notes and Related Subsidiaries Effective Date of 1995 Amendment Amendment by Pub. L. 10488 Jan. 1, 1996 section 2 of Pub. L. 10488 section 1301 of Title 49 Effective Date of 1988 Amendment Pub. L. 100647, title VII,  7101(f) Nov. 10, 1988 102 Stat. 3759 The amendments made by this section [amending this section and sections 352, 354, and 362 of this title] shall take effect upon the date of the enactment of this Act [ Nov. 10, 1988 Pub. L. 100647, title VII,  7203(b) Nov. 10, 1988 102 Stat. 3776 The amendment made by this section [amending this section] shall take effect on July 1, 1988 Effective Date of 1983 Amendment Amendment by section 402(b) of Pub. L. 9876 June 30, 1983 section 402(c) of Pub. L. 9876 section 231 of this title Amendment by section 403(b) of Pub. L. 9876 Aug. 13, 1981 section 403(c) of Pub. L. 9876 section 231 of this title Pub. L. 9876, title IV,  411(b) Aug. 12, 1983 97 Stat. 436 The amendments made by this section [amending this section and sections 353 and 354 of this title] shall apply to compensation paid for services rendered after December 31, 1983 Pub. L. 9876, title V,  503(c) Aug. 12, 1983 97 Stat. 441 The amendments made by this section [amending this section and section 358 of this title December 31, 1983 Effective Date of 1975 Amendment Pub. L. 9492, title I,  2 Aug. 9, 1975 89 Stat. 464  (a) The amendment made by section 1(a) of this Act [amending this section] shall be effective with respect to days of sickness in registration periods beginning after June 30, 1975 (b) The amendment with respect to qualifying conditions made by section 1(f) [amending section 353 of this title December 31, 1973 (c) The amendments made by sections 1(b), 1(c), and 1(d)(1) of this Act [amending this section and section 352 of this title June 30, 1975 Provided, however June 30, 1975 Aug. 9, 1975 section 1402 of Title 26 July 1, 1975 section 352 of this title Aug. 9, 1975 (d) The amendments made by sections 1(d)(2) and 1(e) of this Act [amending section 352 of this title June 30, 1975 (e) The amendments made by sections 1(g), 1(h), 1(i)(1), and 1(j) of this Act [amending sections 358, 360, and 361 of this title] shall be effective with respect to compensation paid for services rendered after December 31, 1975 (f) The amendment made by section 1(i)(2) of this Act [amending section 360 of this title Aug. 9, 1975 Effective Date of 1968 Amendment Pub. L. 90624,  4(b) Oct. 22, 1968 82 Stat. 1317 The amendments made by section 3 [amending this section] shall apply with respect to service performed after December 31, 1967 Amendment by section 201(a)(1) of Pub. L. 90257 July 1, 1968 section 201(a)(2) of Pub. L. 90257 December 31, 1966 section 208 of Pub. L. 90257 section 352 of this title Effective Date of 1959 Amendment Pub. L. 8628 May 19, 1959 73 Stat. 33 The amendments made by section 301(b) [amending this section] shall be effective with respect to days in registration periods beginning after June 30, 1959 June 30, 1958 December 31, 1957 section 353 of this title December 31, 1957 section 358 of this title section 358 of this title Effective Date of 1958 Amendment Pub. L. 85927 Sept. 6, 1958 72 Stat. 1783  (a) The amendments made by section 201(a) [amending this section] shall be effective with respect to registration periods in benefit years after the benefit year ending on June 30, 1958 (b) The amendments made by section 202 [amending section 354 of this title June 30, 1958 (c) The remaining amendments made by this part [amending this section, sections 358, 361, 362 of this title, and section 1104 of Title 42 Sept. 6, 1958 Effective Date of 1954 Amendment Act Aug. 31, 1954, ch. 1164 68 Stat. 1042  Sec. 401. The amendments made by this Act [enacting section 228s1 of this title July 1, 1954 Sec. 402. The provisions of sections 1, 205, and 301 of this Act [amending this section, section 228a of this title April 1, 1954 Effective Date of 1951 Amendment Act Oct. 30, 1951, ch. 632,  28 65 Stat. 691 The provisions of sections 26 and 27 of the Act [amending sections 350 and 354 of this title] shall become effective with respect to registration periods beginning on and after January 1, 1952 Effective Date of 1946 Amendments Amendment by sections 1 and 2 of act July 31, 1946 July 31, 1946 July 31, 1946 Amendment by sections 301 to 304 of act July 31, 1946 July 1, 1947 July 31, 1946 section 352 of this title Effective Date of 1942 Amendment Act Apr. 8, 1942, ch. 227,  15 56 Stat. 211 The amendment in this section [amending this section] shall operate in the same manner and have the same effect as if it had been part of the Railroad Unemployment Insurance Act [this chapter] when that Act was enacted on June 25, 1938 Provided, however section 358 of this title July 1, 1940 Effective Date of 1940 Amendment Act Oct. 10, 1940, ch. 842,  1 54 Stat. 1094  That the provisions of this act [amending this section, sections 228a, 228i, 352 to 355, 356, 361, and 362 of this title, and section 1532 of former Title 26, Internal Revenue Code of 1939, and enacting provisions set out as notes under this section and section 262 of this title November 1, 1940 section 262 of this title July 1, 1940 section 355 of this title Provided, however (a) A half-month which has begun prior to November 1, 1940 (b) All benefit years current on October 31, 1940 October 31, 1940 October 31, 1940 November 1, 1940 section 352(c) of this title June 30, 1940 November 1, 1940 June 30, 1941 (c) Benefits for unemployment in the first registration period, beginning after October 31, 1940 June 30, 1940 section 353(b) of this title Exclusion From Wages and Compensation of Refunds Required From Employers To Compensate for Duplication of Medicare Benefits by Health Care Benefits Provided by Employers For purposes of this chapter, the term compensation shall not include the amount of any refund required under section 421 of Pub. L. 100360 42 U.S.C. 1395b section 10202 of Pub. L. 101239 section 1395b of Title 42  352. Benefits (a) Days for which benefits payable; determination of amount (1) (A)  Payment of Unemployment Benefits. (i)  Generally Except as otherwise provided in this subparagraph, benefits shall be payable to any qualified employee for each day of unemployment in excess of 4 during any registration period within a period of continuing unemployment. (ii)  Waiting period for first registration period Benefits shall be payable to any qualified employee for each day of unemployment in excess of 7 during that employees first registration period in a period of continuing unemployment if such period of continuing unemployment is the employees initial period of continuing unemployment commencing in the benefit year. (iii)  Strikes. (I)  Initial 14-day waiting period If the Board finds that a qualified employee has a period of continuing unemployment that includes days of unemployment due to a stoppage of work because of a strike in the establishment, premises, or enterprise at which such employee was last employed, no benefits shall be payable for such employees first 14 days of unemployment due to such stoppage of work. (II)  Subsequent days of unemployment For subsequent days of unemployment due to the same stoppage of work, benefits shall be payable as provided in clause (i) of this subparagraph. (III)  Subsequent periods of continuing unemployment If such period of continuing unemployment ends by reason of clause (v) but the stoppage of work continues, the waiting period established in clause (ii) shall apply to the employees first registration period in a new period of continuing unemployment based upon the same stoppage of work. (iv)  Definition of period of continuing unemployment Except as limited by clause (v), for the purposes of this subparagraph, the term period of continuing unemployment means (I) a single registration period that includes more than 4 days of unemployment; (II) a series of consecutive registration periods, each of which includes more than 4 days of unemployment; or (III) a series of successive registration periods, each of which includes more than 4 days of unemployment, if each succeeding registration period begins within 15 days after the last day of the immediately preceding registration period. (v)  Special rule regarding end of period For purposes of applying clause (ii), a period of continuing unemployment ends when an employee exhausts rights to unemployment benefits under subsection (c) of this section. (vi)  Limit on amount of benefits No benefits shall be payable to an otherwise eligible employee for any day of unemployment in a registration period where the total amount of the remuneration (as defined in section 351(j) of this title (B)  Payment of Sickness Benefits. (i)  Generally Except as otherwise provided in this subparagraph, benefits shall be payable to any qualified employee for each day of sickness after the 4th consecutive day of sickness in a period of continuing sickness but excluding 4 days of sickness in any registration period in such period of continuing sickness. (ii)  Waiting period for first registration period Benefits shall be payable to any qualified employee for each day of sickness in excess of 7 during that employees first registration period in a period of continuing sickness if such period of continuing sickness is the employees initial period of continuing sickness commencing in the benefit year. For the purposes of this clause, the first registration period in a period of continuing sickness is that registration period that first begins with 4 consecutive days of sickness and includes more than 4 days of sickness. (iii)  Definition of period of continuing sickness For the purposes of this subparagraph, a period of continuing sickness means (I) a period of consecutive days of sickness, whether from 1 or more causes; or (II) a period of successive days of sickness due to a single cause without interruption of more than 90 consecutive days which are not days of sickness. (iv)  Special rule regarding end of period For purposes of applying clause (ii), a period of continuing sickness ends when an employee exhausts rights to sickness benefits under subsection (c) of this section. (2) The daily benefit rate with respect to any such employee for such day of unemployment or sickness shall be in an amount equal to 60 per centum of the daily rate of compensation for the employees last employment in which he engaged for an employer in the base year, but not less than $12.70: Provided, however June 30, 1975 July 1, 1976 June 30, 1976 July 1, 1988 June 30, 1988 July 1, 1989 June 30, 1989 (3) The maximum daily benefit rate computed by the Board under section 362(r)(2) of this title section 351(i)(2) of this title (4) In computing benefits to be paid, days of unemployment shall not be combined with days of sickness in the same registration period. (5) (A) Notwithstanding paragraph (3), subsection (c)(1)(B), and any other limitation on total benefits in this chapter, for registration periods beginning on or after April 1, 2020 July 31, 2020 December 26, 2020 September 6, 2021 July 1, 2019 July 1, 2020 July 1, 2021 April 1, 2020 July 31, 2020 December 26, 2020 September 6, 2021 (B) Out of any funds in the Treasury not otherwise appropriated, there are appropriated $425,000,000 to cover the cost of recovery benefits provided under subparagraph (A), to remain available until expended. (b) Time of payments The benefits provided for in this section shall be paid to an employee at such reasonable intervals as the Board may prescribe. (c) Maximum number of days for benefits (1) Normal benefits (A) Generally The maximum number of days of unemployment within a benefit year for which benefits may be paid to an employee shall be 130, and the maximum number of days of sickness within a benefit year for which benefits may be paid to an employee shall be 130. (B) Limitation The total amount of benefits that may be paid to an employee for days of unemployment within a benefit year shall in no case exceed the employees compensation in the base year; and the total amount of benefits that may be paid to an employee for days of sickness within a benefit year shall in no case exceed the employees compensation in the base year, except that notwithstanding section 351(i) of this title section 351(i) of this title (2) Extended benefits (A) Generally With respect to an employee who has 10 or more years of service as defined in section 231(f) of this title (B) Beginning date An employees extended benefit period shall begin on the employees first day of unemployment or first day of sickness, as the case may be, following the day on which the employee exhausts the employees then current rights to normal benefits for days of unemployment or days of sickness and shall continue for 7 consecutive 14-day periods, each of which shall constitute a registration period, but no such extended benefit period shall extend beyond the beginning of the first registration period in a benefit year in which the employee is again qualified for benefits in accordance with section 353 of this title (C) Termination when employee reaches age of 65 Notwithstanding any other provision of this paragraph, an extended benefit period for sickness benefits shall terminate on the day next preceding the date on which the employee attains age 65, except that it may continue for the purpose of paying benefits for days of unemployment. (D) Temporary increase in extended unemployment benefits (i) Employees with 10 or more years of service Subject to clause (iii), in the case of an employee who has 10 or more years of service (as so defined), with respect to extended unemployment benefits (I) subparagraph (A) shall be applied by substituting 330 days of unemployment for 65 days of unemployment; and (II) subparagraph (B) shall be applied by inserting (or, in the case of unemployment benefits, 33 consecutive 14-day periods, except that no extended benefit period shall end before 20 consecutive 14-day periods after the date of enactment of the Continued Assistance for Unemployed Workers Act of 2020 1 1 (ii) Employees with less than 10 years of service Subject to clause (iii), in the case of an employee who has less than 10 years of service (as so defined), with respect to extended unemployment benefits, this paragraph shall apply to such an employee in the same manner as this paragraph would apply to an employee described in clause (i) if such clause had not been enacted and if (A) subparagraph (A) were applied by substituting 265 days of unemployment for 65 days of unemployment; and (B) subparagraph (B) were applied by inserting (or, in the case of unemployment benefits, 27 consecutive 14-day periods, except that no extended benefit period shall end before 20 consecutive 14-day periods after the date of enactment of the Continued Assistance for Unemployed Workers Act of 2020 1 (iii) Application The provisions of clauses (i) and (ii) shall apply to an employee who received normal benefits for days of unemployment under this chapter during the period beginning July 1, 2019 June 30, 2022 September 6, 2021 2 2 (iv) Treatment of certain calendar days No calendar day occurring during the period beginning on the first date with respect to which the employee has exhausted all rights to extended unemployment benefits under this paragraph as in effect on the day before the date of enactment of the Continued Assistance for Unemployed Workers Act of 2020 1 (v) Appropriation Out of any funds in the Treasury not otherwise appropriated, there are appropriated $20,000,000 to cover the cost of additional extended unemployment benefits provided under this subparagraph, to remain available until expended. In addition to the amount appropriated by the preceding sentence, out of any funds in the Treasury not otherwise appropriated, there are appropriated $175,000,000 to cover the cost of additional extended unemployment benefits provided under this subparagraph, to remain available until expended. In addition to the amount appropriated by the preceding two sentences, out of any funds in the Treasury not otherwise appropriated, there are appropriated $2,000,000 to cover the cost of additional extended unemployment benefits provided under this subparagraph, to remain available until expended. (3) Accelerated benefits (A) General rule With respect to an employee who has 10 or more years of service as defined in section 231(f) of this title (B) Exception In the case of a succeeding benefit year beginning in accordance with subparagraph (A) by reason of sickness, such sentence shall not operate to permit the payment of benefits in the period provided for in such sentence for any day of sickness beginning with the date on which the employee attains age 65, and continuing through the day preceding the first day of the next succeeding general benefit year. (C) Determination of age For the purposes of this subsection, the Board may rely on evidence of age available in its records and files at the time determinations of age are made. (d) Overpayment of benefits; recovery; liability of officers If the Board finds that at any time more than the correct amount of benefits has been paid to any individual under this chapter or a payment has been made to an individual not entitled thereto (including payments made prior to July 1, 1940 Adjustments under this subsection may be made either by deductions from subsequent payments or, with respect to payments which are to be made during a lifetime or lifetimes, by subtracting the total amount of benefits paid in excess of the proper amount from the actuarial value, as determined by the Board, of such payments to be made during a lifetime or lifetimes and recertifying such payments on the basis of the reduced actuarial value. In the latter case, recovery shall be deemed to have been completed upon such recertification. There shall be no recovery in any case in which more than the correct amount of benefits has been paid to an individual or payment has been made to an individual not entitled thereto (including payments made prior to July 1, 1940 No certifying or disbursing officer shall be held liable for any amount certified or paid by him in good faith to any person where the recovery of such amount is waived under the third paragraph of this subsection or has been begun but cannot be completed under the first paragraph of this subsection. (e) Assignment, taxation, garnishment, attachment, etc., of benefits Notwithstanding any other law of the United States, or of any State, Territory, or the District of Columbia, no benefits shall be assignable or be subject to any tax or to garnishment, attachment, or other legal process under any circumstances whatsoever, nor shall the payment thereof be anticipated. (f) Effect of payment of benefits for remunerable period; payment of surplus remuneration to Board If (i) benefits are paid to any employee with respect to unemployment or sickness in any registration period, and it is later determined that remuneration is payable to such employee with respect to any period which includes days in such registration period which had been determined to be days of unemployment or sickness, and (ii) the person or company from which such remuneration is payable has, before payment thereof, notice of the payment of benefits upon the basis of days of unemployment or sickness included in such period, the remuneration so payable shall not be reduced by reason of such benefits but the remuneration so payable, to the extent to which benefits were paid upon the basis of days which had been determined to be days of unemployment or sickness and which are included in the period for which such remuneration is payable, shall be held to be a special fund in trust for the Board. The amount of such special fund shall be paid to the Board and in the collection thereof the Board shall have the same authority, and the same penalties shall apply, as are provided in section 358 of this title (g) Payment of accrued benefits upon death Benefits accrued to an individual but not yet paid at death shall, upon certification by the Board, be paid, without necessity of filing further claims therefor, to the same individual or individuals to whom any accrued annuities under section 231e(a)(1) of this title section 231e(a)(1) of this title ( June 25, 1938, ch. 680,  2 52 Stat. 1096 June 20, 1939, ch. 227 53 Stat. 845 Oct. 10, 1940, ch. 842 54 Stat. 1095 July 31, 1946, ch. 709 60 Stat. 736 May 15, 1952, ch. 290,  1 66 Stat. 73 Aug. 31, 1954, ch. 1164 68 Stat. 1041 Aug. 12, 1955, ch. 869,  4 69 Stat. 716 Pub. L. 8628 May 19, 1959 73 Stat. 30 Pub. L. 89700, title II,  202 Oct. 30, 1966 80 Stat. 1087 Pub. L. 90257, title II,  202 Feb. 15, 1968 82 Stat. 23 Pub. L. 93445, title IV,  401 Oct. 16, 1974 88 Stat. 1359 Pub. L. 9492, title I,  1(c) Aug. 9, 1975 89 Stat. 461 Pub. L. 9876, title IV,  412(a) Aug. 12, 1983 97 Stat. 436 Pub. L. 100647, title VII Nov. 10, 1988 102 Stat. 3758 Pub. L. 10488, title III,  324(3) Dec. 29, 1995 109 Stat. 950 Pub. L. 104251 Oct. 9, 1996 110 Stat. 31613165 Pub. L. 1115, div. B, title II,  2006(a) Feb. 17, 2009 123 Stat. 445 Pub. L. 11192,  9(a) Nov. 6, 2009 123 Stat. 2988 Pub. L. 111312, title V,  505(a) Dec. 17, 2010 124 Stat. 3308 Pub. L. 11278, title II,  202(a) Dec. 23, 2011 125 Stat. 1283 Pub. L. 11296, title II,  2124(a) Feb. 22, 2012 126 Stat. 167 Pub. L. 112240, title V,  504(a) Jan. 2, 2013 126 Stat. 2344 Pub. L. 116136, div. A, title II Mar. 27, 2020 134 Stat. 334 Pub. L. 116260, div. N, title II Dec. 27, 2020 134 Stat. 1957 Pub. L. 1172, title II Mar. 11, 2021 135 Stat. 49  Editorial Notes  References in Text This chapter, referred to in subsecs. (a)(5)(A), (c)(2)(D)(iii), and (d), was in the original this Act, meaning act June 25, 1938, ch. 680 52 Stat. 1094 section 1107 of Title 42 section 367 of this title The date of enactment of the Continued Assistance for Unemployed Workers Act of 2020 and the date of such enactment, referred to in subsec. (c)(2)(D)(i)(II), (ii)(B), (iv), is the date of enactment of chapter 1 ( 201 et seq.) of subtitle A of title II of div. N of Pub. L. 116260 Dec. 27, 2020 Dec. 27, 2020 Amendments 2021Subsec. (a)(5)(A). Pub. L. 1172,  2901(a) September 6, 2021 March 14, 2021 July 1, 2020 July 1, 2021 July 1, 2020 Subsec. (c)(2)(D)(i)(I). Pub. L. 1172,  2902(a)(1)(A) Subsec. (c)(2)(D)(i)(II). Pub. L. 1172,  2902(a)(1)(B) Subsec. (c)(2)(D)(ii)(A). Pub. L. 1172,  2902(a)(2)(A) Subsec. (c)(2)(D)(ii)(B). Pub. L. 1172,  2902(a)(2)(B) Subsec. (c)(2)(D)(iii). Pub. L. 1172,  2902(a)(3) June 30, 2022 June 30, 2021 September 6, 2021 March 14, 2021 April 5, 2021 Subsec. (c)(2)(D)(v). Pub. L. 1172,  2902(a)(4) 2020Subsec. (a)(5). Pub. L. 116136,  2113 Subsec. (a)(5)(A). Pub. L. 116260,  232(a) December 26, 2020 March 14, 2021 July 31, 2020 July 1, 2019 July 1, 2020 July 1, 2019 April 1, 2020 July 31, 2020 December 26, 2020 March 14, 2021 Subsec. (c)(2)(D)(i)(I). Pub. L. 116260,  233(a)(1)(A) Subsec. (c)(2)(D)(i)(II). Pub. L. 116260,  233(a)(1)(B) Subsec. (c)(2)(D)(ii). Pub. L. 116260,  233(a)(2) Subsec. (c)(2)(D)(iii). Pub. L. 116260,  233(a)(3) June 30, 2021 June 30, 2020 March 14, 2021 April 5, 2021 December 31, 2020 Pub. L. 116136,  2114(a) July 1, 2019 July 1, 2008 June 30, 2020 June 30, 2013 December 31, 2020 December 31, 2013 Subsec. (c)(2)(D)(iv), (v). Pub. L. 116260,  233(a)(4) 2013Subsec. (c)(2)(D)(iii). Pub. L. 112240 June 30, 2013 June 30, 2012 December 31, 2013 December 31, 2012 2012Subsec. (c)(2)(D)(iii). Pub. L. 11296 June 30, 2012 August 31, 2011 December 31, 2012 February 29, 2012 2011Subsec. (c)(2)(D)(iii). Pub. L. 11278 August 31, 2011 June 30, 2011 February 29, 2012 December 31, 2011 2010Subsec. (c)(2)(D)(iii). Pub. L. 111312 June 30, 2011 June 30, 2010 December 31, 2011 December 31, 2010 2009Subsec. (c)(2)(D). Pub. L. 1115 Subsec. (c)(2)(D)(iii). Pub. L. 11192,  9(a)(1) June 30, 2010 June 30, 2009 December 31, 2010 December 31, 2009 Subsec. (c)(2)(D)(iv). Pub. L. 11192,  9(a)(2) 1996Subsec. (a)(1)(A). Pub. L. 104251,  2 (ii) No benefits shall be payable for days of unemployment during the first registration period within a benefit year in which the employee has more than 4 days of unemployment. (iii) In any case in which the Board finds that an employees unemployment was due to a stoppage of work because of a strike in the establishment, premises, or enterprise at which such employee was last employed, no benefits shall be payable for the first 14 days of unemployment due to such stoppage of work. However, for subsequent days of unemployment due to such stoppage of work, benefits shall be payable to days in excess of 4 during any registration period. Subsec. (a)(1)(B). Pub. L. 104251,  3 (B)(i) Except as otherwise provided in this subparagraph, benefits shall be payable to any qualified employee for each day of sickness after the 4th consecutive day of sickness in a period of continuing sickness but excluding 4 days of sickness in any registration period. (ii) No benefits shall be payable for days of sickness in the first registration period within a benefit year in which the employee has both 4 consecutive days of sickness and more than 4 days of sickness. (iii) For the purposes of this subparagraph, a period of continuing sickness means (I) a period of consecutive days of sickness, whether from one or more causes, or (II) a period of successive days of sickness due to a single cause without interruption of more than 90 consecutive days which are not days of sickness. Subsec. (a)(3). Pub. L. 104251,  4 section 362(r)(2) of this title Subsec. (c). Pub. L. 104251,  5(a) section 231(f) of this title Subsec. (h). Pub. L. 104251,  5(b) 1995Subsec. (h)(3). Pub. L. 10488 1988Subsec. (a)(1). Pub. L. 100647,  7201(a)(1) Provided, however Subsec. (a)(2). Pub. L. 100647,  7201(a)(3) July 1, 1988 June 30, 1976 June 30, 1988 July 1, 1989 June 30, 1989 Subsec. (a)(3). Pub. L. 100647,  7201(a)(7) Subsec. (a)(4). Pub. L. 100647,  7201(a)(8) Subsec. (c). Pub. L. 100647,  7101(c) section 351(i) of this title 1983Subsec. (a). Pub. L. 9876 section 351(h) of this title section 351(h) of this title 1975Subsec. (a), first par. Pub. L. 9492,  1(c)(1) Subsec. (a), second par. Pub. L. 9492,  1(c)(2) June 30, 1975 July 1, 1976 June 30, 1976 Subsec. (c). Pub. L. 9492,  1(d) Subsec. (h). Pub. L. 9492,  1(e) 1974Subsec. (c). Pub. L. 93445,  401(a) section 231(f) of this title section 228a(f) of this title section 360(h) of this title Subsec. (g). Pub. L. 93445,  401(b) section 231e(a)(1) of this title section 228c(f)(1) of this title 1968Subsec. (a). Pub. L. 90257,  202(a) Subsec. (c). Pub. L. 90257,  202(b) 1966Subsec. (a). Pub. L. 89700,  202(a) Subsec. (g). Pub. L. 89700,  202(b) 1959Subsec. (a). Pub. L. 8628,  302 Subsec. (c). Pub. L. 8628,  303(a) 1955Subsec. (e). Act Aug. 12, 1955 1954Subsec. (a). Act Aug. 31, 1954 Subsec. (c). Act Aug. 31, 1954 1952Subsec. (a). Act May 15, 1952 1946Subsec. (a). Act July 31, 1946 Subsec. (c). Act July 31, 1946 Subsec. (f). Act July 31, 1946 1940Subsec. (a). Act Oct. 10, 1940 Subsec. (c). Act Oct. 10, 1940 Subsec. (d). Act Oct. 10, 1940 section 228i of this title Subsec. (f). Act Oct. 10, 1940 1939Subsec. (a). Act June 20, 1939 Subsec. (d). Act June 20, 1939 Subsec. (e). Act June 20, 1939 Subsecs. (f), (g). Act June 20, 1939 Statutory Notes and Related Subsidiaries Effective Date of 2020 Amendment Pub. L. 116260, div. N, title II,  233(b) Dec. 27, 2020 134 Stat. 1958 The amendments made by subsection (a) [amending this section] shall apply as if included in the enactment of the CARES Act [ Pub. L. 116136 15 U.S.C. 9001 Effective Date of 1996 Amendment Pub. L. 104251,  6 Oct. 9, 1996 110 Stat. 3165 The amendments made by this Act [amending this section and repealing section 368 of this title Oct. 9, 1996 Effective Date of 1995 Amendment Amendment by Pub. L. 10488 Jan. 1, 1996 section 2 of Pub. L. 10488 section 1301 of Title 49 Effective Date of 1988 Amendment Pub. L. 100647, title VII,  7201(b) Nov. 10, 1988 102 Stat. 3776  (1) Except as provided in paragraph (2), the amendments made by subsection (a) [amending this section] shall take effect on the date of the enactment of this Act [ Nov. 10, 1988 (2) The amendments made by paragraph (2) of subsection (a) shall apply with respect to registration periods beginning after June 30, 1988 Effective Date of 1983 Amendment Pub. L. 9876, title IV,  412(b) Aug. 12, 1983 97 Stat. 436 The amendment made by this section [amending this section] shall apply with respect to days of unemployment in registration periods beginning after December 31, 1983 Effective Date of 1975 Amendment; Reduction of Benefits in View of Coverage Under Nongovernmental Plan; Filing Claims for Payments to Insurers and Employers Amendment by section 1(c), (d)(1) of Pub. L. 9492 June 30, 1975 Pub. L. 9492 June 30, 1975 section 2 of Pub. L. 9492 section 351 of this title Effective Date of 1974 Amendment Amendment by Pub. L. 93445 Jan. 1, 1975 section 603 of Pub. L. 93445 section 402 of Title 42 Effective Date of 1968 Amendment Pub. L. 90257, title II,  208 Feb. 15, 1968 82 Stat. 25 The amendments made by sections 201(a)(1), 201(b), 202(a)(1), 202(a)(2), 202(b)(1), 206 and 207 [amending this section and sections 351, 362, and 363 of this title] shall be effective as of July 1, 1968 December 31, 1966 section 353 of this title July 1, 1968 July 1, 1968 July 1, 1968 July 1, 1967 section 354 of this title June 30, 1968 section 354 of this title Feb. 15, 1968 Effective Date of 1959 Amendment Amendment by Pub. L. 8628 June 30, 1958 Dec. 31, 1957 section 309 of Pub. L. 8628 section 351 of this title Effective Date of 1955 Amendment Act Aug. 12, 1955, ch. 869,  4 69 Stat. 716 June 25, 1938 Effective Date of 1954 Amendment Amendment by act Aug. 31, 1954 July 1, 1954 Aug. 31, 1954 section 351 of this title Effective Date of 1952 Amendment Act May 15, 1952, ch. 290,  3 66 Stat. 73 The amendments made by this Act [amending this section and section 353 of this title July 1, 1952 Effective Date of 1946 Amendment Amendment by section 306 of act July 31, 1946 July 1, 1946 Act July 31, 1946, ch. 709,  403 60 Stat. 742 Sections 301, 302, 303, 304, 305 (except for the revision of the table which shall become effective on the date of enactment of this Act [ July 31, 1946 July 1, 1947 Effective Date of 1940 Amendment For effective date of amendment by act Oct. 10, 1940 Oct. 10, 1940 section 351 of this title Clarification on Authority To Use Funds Pub. L. 1172, title II,  2901(b) Mar. 11, 2021 135 Stat. 49 Funds appropriated under subparagraph (B) of section 2(a)(5) of the Railroad Unemployment Insurance Act ( 45 U.S.C. 352(a)(5) Mar. 11, 2021 Pub. L. 1172, title II,  2902(b) Mar. 11, 2021 135 Stat. 50 Funds appropriated under the first, second, or third sentence of clause (v) of section 2(c)(2)(D) of the Railroad Unemployment Insurance Act [ 45 U.S.C. 352(c)(2)(D) Mar. 11, 2021 Pub. L. 116260, div. N, title II,  232(b) Dec. 27, 2020 134 Stat. 1957 Funds appropriated under subparagraph (B) of section 2(a)(5) of the Railroad Unemployment Insurance Act ( 45 U.S.C. 352(a)(5) Dec. 27, 2020 Pub. L. 116260, div. N, title II,  233(c) Dec. 27, 2020 134 Stat. 1958 Funds appropriated under either the first or second sentence of clause (v) of section 2(c)(2)(D) of the Railroad Unemployment Insurance Act [ 45 U.S.C. 352(c)(2)(D) Dec. 27, 2020 Pub. L. 116136, div. A, title II,  2114(b) Mar. 27, 2020 134 Stat. 334 Funds appropriated under either the first or second sentence of clause (iv) [now (v)] of section 2(c)(2)(D) of the Railroad Unemployment Insurance Act [ 45 U.S.C. 352(c)(2)(D)(v) Mar. 27, 2020 Extended Unemployment Benefits and Administrative Expenses Pub. L. 112240, title V,  504(b) Jan. 2, 2013 126 Stat. 2345  (b)  Clarification on Authority to Use Funds Funds appropriated under either the first or second sentence of clause (iv) [now (v)] of section 2(c)(2)(D) of the Railroad Unemployment Insurance Act [ 45 U.S.C. 352(c)(2)(D)(v) Jan. 2, 2013 (c)  Funding for Administration Out of any funds in the Treasury not otherwise appropriated, there are appropriated to the Railroad Retirement Board $250,000 for administrative expenses associated with the payment of additional extended unemployment benefits provided under section 2(c)(2)(D) of the Railroad Unemployment Insurance Act by reason of the amendments made by subsection (a), to remain available until expended. Extended Railroad Unemployment Insurance Benefits During Periods of High National Unemployment Pub. L. 102164, title V,  501 Nov. 15, 1991 105 Stat. 1064 Pub. L. 102182,  3(a)(6) Dec. 4, 1991 105 Stat. 1234 Pub. L. 102244,  5 Feb. 7, 1992 106 Stat. 5 Pub. L. 102318, title I,  105 July 3, 1992 106 Stat. 293 Pub. L. 1036,  3(a) Mar. 4, 1993 107 Stat. 33 Pub. L. 103152 Nov. 24, 1993 107 Stat. 1519  (a)  In General For purposes of section 2(h) of the Railroad Unemployment Insurance Act ( 45 U.S.C. 352(h)(2) (b)  Effective Dates. (1)  In general Except as provided in paragraphs (2) and (3), no employee shall have an extended benefit period under the second proviso of section 2(c) of the Railroad Unemployment Insurance Act beginning before November 17, 1991 February 5, 1994 (2)  Transition If an employee has established an extended benefit period under the second proviso of section 2(c) of the Railroad Unemployment Insurance Act and the last day of such extended benefit period, as established, is after February 5, 1994 45 U.S.C. 351 (3)  Reachback Provisions If an employee has exhausted that employees rights to normal unemployment benefits under section 2(c) of the Railroad Unemployment Insurance Act [ 45 U.S.C. 352(c) February 28, 1991 November 17, 1991 November 17, 1991 (c)  Limitation on Payment Extended benefits under this section shall be payable for a maximum of 65 days of unemployment, including any extended benefits payable by reason of the application of the reachback provisions. (d)  Enlargement of Benefits. (1)  Generally During the period that begins on the date of the enactment of this subsection [ Feb. 7, 1992 (A) subsection (c) of this section shall be applied by substituting 130 for 65; (B) section 2(c) of the Railroad Unemployment Insurance Act [ 45 U.S.C. 352(c) (i) by substituting 13 (but not more than 130 days) for 7 (but not more than 65 days) in the table; and (ii) by substituting but not by more than 130 days for but not by more than sixty-five days in the second proviso; and (C) section 2(h)(1) of the Railroad Unemployment Insurance Act [ 45 U.S.C. 352(h)(1) (2)  Phase-out. (A)  Benefits on or after june 14, 1992 Effective on and after June 14, 1992 (B)  Reductions under emergency compensation extension provisions. (i) Effective on and after the date on which a reduction in benefits is imposed under section 102(b)(2)(A)(iii) [ section 102(b)(2)(A)(iii) of Pub. L. 102164 26 U.S.C. 3304 (ii) Effective after October 2, 1993 (C)  Limitations on reductions Notwithstanding subparagraphs (A) and (B), in the case of an individual who is receiving extended benefits under section 2(c) of the Railroad Unemployment Insurance Act [ 45 U.S.C. 352(c) 45 U.S.C. 351 (e)  Termination of Benefits In the case of an individual who is receiving extended benefits by reason of this section on February 5, 1994 April 30, 1994 [ Pub. L. 1036,  3(c) Mar. 4, 1993 107 Stat. 33 The amendments made by this section [amending section 501 of Pub. L. 102164 March 6, 1993 [Amendments made by Pub. L. 102182 section 501 of Pub. L. 102164 Pub. L. 102164 section 3(b) of Pub. L. 102182 section 3304 of Title 26 GAO Study of Fraud and Payment Errors Pub. L. 100647, title VII,  7107 Nov. 10, 1988 102 Stat. 3774  The Comptroller General shall study the frequency of fraud and payment errors in the railroad unemployment compensation program. Not later than 1 year after the date of the enactment of this Act [ Nov. 10, 1988 (1) estimates of rates and amounts of annual losses due to fraud and overpayment; (2) comparisons of such rates with the rates of losses in other Federal programs which experience such losses; (3) recommendations for legislative measures that could be taken to reduce the losses in the railroad unemployment compensation program arising from fraud and payment errors; and (4) such other matters relating to such fraud and payment errors as the Comptroller General determines are appropriate. Benefits for Certain Employees Who Exhausted Rights to Benefits Before April 1, 1959 Pub. L. 8628 May 19, 1959 73 Stat. 31 An employee who has less than ten years of service as defined in section 1(f) of the Railroad Retirement Act of 1937 [ section 228a(f) of this title June 30, 1957 April 1, 1959 June 19, 1958 July 1, 1959 42 U.S.C. 1400 Interchange of Information Between Secretary of Labor and Railroad Retirement Board Pub. L. 8628 May 19, 1959 73 Stat. 31 The Secretary of Labor, upon request shall furnish the Board information deemed necessary by the Board for the administration of the provisions of subsection (b) hereof [set out above], and the Board, upon request, shall furnish the Secretary of Labor information deemed necessary by the Secretary for the administration of the Temporary Unemployment Compensation Act of 1958 [section 1400 et seq. of Title 42, The Public Health and Welfare].  353. Qualifying condition  An employee shall be a qualified employee if the Board finds that his compensation with respect to the base year will have been not less than 2.5 times the monthly compensation base for months in such base year as computed under section 351(i) of this title ( June 25, 1938, ch. 680,  3 52 Stat. 1097 June 20, 1939, ch. 227,  10 53 Stat. 845 Oct. 10, 1940, ch. 842,  13 54 Stat. 1097 July 31, 1946, ch. 709,  308 60 Stat. 737 May 15, 1952, ch. 290,  2 66 Stat. 73 Aug. 31, 1954, ch. 1164 68 Stat. 1041 Pub. L. 8628 May 19, 1959 73 Stat. 31 Pub. L. 88133, title III,  301(a) Oct. 5, 1963 77 Stat. 222 Pub. L. 90257, title II,  203 Feb. 15, 1968 82 Stat. 24 Pub. L. 9492, title I,  1(f) Aug. 9, 1975 89 Stat. 463 Pub. L. 9876, title IV,  411(a)(2) Aug. 12, 1983 97 Stat. 436 Pub. L. 100647, title VII,  7202(a) Nov. 10, 1988 102 Stat. 3776  Editorial Notes Amendments 1988 Pub. L. 100647 section 351(i) of this title 1983 Pub. L. 9876 1975 Pub. L. 9492 1968 Pub. L. 90257 1963 Pub. L. 88133 1959 Pub. L. 8628 1954Act Aug. 31, 1954 1952Act May 15, 1952 section 352 of this title 1946Act July 31, 1946 1940Act Oct. 10, 1940 1939Subsec. (b). Act June 20, 1939 Statutory Notes and Related Subsidiaries Effective Date of 1988 Amendment Pub. L. 100647, title VII,  7202(b) Nov. 10, 1988 102 Stat. 3776 The amendments made by this section [amending this section] shall take effect on the date of the enactment of this Act [ Nov. 10, 1988 Effective Date of 1983 Amendment Amendment by Pub. L. 9876 Dec. 31, 1983 section 411(b) of Pub. L. 9876 section 351 of this title Effective Date of 1975 Amendment Amendment by Pub. L. 9492 Dec. 31, 1973 section 2 of Pub. L. 9492 section 351 of this title Effective Date of 1968 Amendment Amendment by Pub. L. 90257 December 31, 1966 section 208 of Pub. L. 90257 section 352 of this title Effective Date of 1963 Amendment Pub. L. 88133, title III,  301(b) Oct. 5, 1963 77 Stat. 222 The amendment made by subsection (a) [amending this section] shall be fully effective with respect to base years after 1963. With respect to the base year 1963, they shall be applicable only to an employee concerning whom the Railroad Retirement Board finds that his compensation in that portion of the calendar year 1963 preceding the first day of the calendar month next following the month of enactment of this Act [October 1963] will have been less than $500. Effective Date of 1959 Amendment Amendment by Pub. L. 8628 Dec. 31, 1957 section 309 of Pub. L. 8628 section 351 of this title Effective Date of 1954 Amendment Amendment by act Aug. 31, 1954 July 1, 1954 Aug. 31, 1954 section 351 of this title Effective Date of 1952 Amendment Amendment by act May 15, 1952 July 1, 1952 May 15, 1952 section 352 of this title Effective Date of 1946 Amendment Amendment by act July 31, 1946 July 1, 1947 July 31, 1946 section 352 of this title Effective Date of 1940 Amendment For effective date of amendment by act Oct. 10, 1940 Oct. 10, 1940 section 351 of this title  354. Disqualifying conditions (a1) Day of unemployment or day of sickness There shall not be considered as a day of unemployment, or as a day of sickness, with respect to any employee (i) any of the seventy-five days beginning with the first day of any registration period with respect to which the Board finds that he knowingly made or aided in making or caused to be made any false or fraudulent statement or claim for the purpose of causing benefits to be paid; (ii) any day in any period with respect to which the Board finds that he is receiving or will have received annuity payments under the Railroad Retirement Act of 1974 [ 45 U.S.C. 231 42 U.S.C. 401 Provided Provided further (iii) if he is paid a separation allowance, any of the days in the period beginning with the day following his separation from service and continuing for that number of consecutive fourteen-day periods which is equal, or most nearly equal, to the amount of the separation allowance divided (i) by ten times his last daily rate of compensation prior to his separation if he normally works five days a week, (ii) by twelve times such rate if he normally works six days a week, and (iii) by fourteen times such rate if he normally works seven days a week; 1 1 (a2) Day of unemployment (i) (A) subject to the provisions of subdivision (B) hereof, any of the days in the period beginning with the day with respect to which the Board finds that he left work voluntarily, and continuing until he has been paid compensation of not less than $1,500 with respect to time after the beginning of such period and before 1989 or, if any part of such compensation is paid in a calendar year after 1988, not less than an amount that is equal to 2.5 times the monthly compensation base for months in such calendar year, as computed under section 351(i) of this title (B) if the Board finds that he left work voluntarily with good cause, the provisions of subdivision (A) shall not apply, with respect to him, to any day in a registration period if such period does not include any day which is in a period for which he could receive benefits under an unemployment compensation law other than this chapter, and he so certifies. Such certification shall, in the absence of evidence to the contrary, be accepted subject to the penalty provisions of section 359(a) of this title (ii) any of the thirty days beginning with the day with respect to which the Board finds that he failed, without good cause, to accept suitable work available on such day and offered to him, or to comply with instructions from the Board requiring him to apply for suitable work or to report, in person or by mail as the Board may require, to an employment office; (iii) subject to the provisions of subsection (b) of this section, any day with respect to which the Board finds that his unemployment was due to a stoppage of work because of a strike in the establishment, premises, or enterprise at which he was last employed, and the Board finds that such strike was commenced in violation of the provisions of the Railway Labor Act [ 45 U.S.C. 151 (b) Participation, interest, or financial assistance in labor dispute The disqualification provided in subsection (a2)(iii) of this section shall not apply if the Board finds that (i) the employee is not participating in or financing or directly interested in the strike which causes the stoppage of work: Provided (ii) he does not belong to a grade or class of workers of which, immediately before the commencement of the stoppage, there were members employed in the establishment, premises, or enterprise at which the stoppage occurs, any of whom are participating in or financing or directly interested in the dispute: Provided (c) Unsuitable work No work shall be deemed suitable for the purposes of subsection (a2)(ii) of this section, and benefits shall not be denied under this chapter to any otherwise qualified employee for refusing to accept work if (i) the position offered is vacant due directly to a strike, lockout, or other labor dispute; (ii) the remuneration, hours, or other conditions of work offered are substantially less favorable to the employee than those prevailing for similar work in the locality, or the rate of remuneration is less than the union wage rate, if any, for similar work in the locality; (iii) as a condition of being employed he would be required to join a company union or to resign from or refrain from joining any bona fide labor organization; (iv) acceptance of the work would require him to engage in activities in violation of law or which, by reason of their being in violation of reasonable requirements of the constitution, bylaws, or similar regulations of a bona fide labor organization of which he is a member, would subject him to expulsion from such labor organization; or (v) acceptance of the work would subject him to loss of substantial seniority rights under any collective bargaining agreement between a railway labor organization, organized in accordance with the provisions of the Railway Labor Act [ 45 U.S.C. 151 (d) Factors in determination of suitable work In determining, within the limitations of subsection (c) of this section, whether or not any work is suitable for an employee for the purposes of subsection (a2)(ii) of this section, the Board shall consider, in addition to such other factors as it deems relevant, (i) the current practices recognized by management and labor with respect to such work; (ii) the degree of risk involved to such employees health, safety, and morals; (iii) his physical fitness and prior training; (iv) his experience and prior earnings; (v) his length of unemployment and prospects for securing work in his customary occupation; and (vi) the distance of the available work from his residence and from his most recent work. (e) Voluntarily leaving unsuitable work For the purposes of subsection (a2)(i) of this section, no voluntary leaving of work shall be deemed to have been without good cause if the Board finds that such work would not have been suitable for the purposes of subsection (a2)(ii) of this section. ( June 25, 1938, ch. 680,  4 52 Stat. 1098 June 20, 1939, ch. 227,  11 53 Stat. 846 Oct. 10, 1940, ch. 842 54 Stat. 1097 July 31, 1946, ch. 709 60 Stat. 737 Oct. 30, 1951, ch. 632,  27 65 Stat. 691 Pub. L. 85927 Sept. 6, 1958 72 Stat. 1782 Pub. L. 8628 May 19, 1959 73 Stat. 31 Pub. L. 88133, title III,  302(a) Oct. 5, 1963 77 Stat. 222 Pub. L. 90257, title II,  204 Feb. 15, 1968 82 Stat. 24 Pub. L. 93445, title IV,  402 Oct. 16, 1974 88 Stat. 1359 Pub. L. 9876, title IV,  411(a)(3) Aug. 12, 1983 97 Stat. 436 Pub. L. 100647, title VII,  7101(d) Nov. 10, 1988 102 Stat. 3758  Editorial Notes  References in Text The Railroad Retirement Act of 1974, referred to in subsec. (a1)(ii), is act Aug. 29, 1935, ch. 812 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1305 section 231 of this title section 231t of this title The Social Security Act, referred to in subsec. (a1)(ii), is act Aug. 14, 1935, ch. 531 49 Stat. 620 section 1305 of Title 42 This chapter, referred to in subsecs. (a1)(ii), (a2)(i)(B), and (c), was in the original this Act, meaning act June 25, 1938, ch. 680 52 Stat. 1094 section 1107 of Title 42 section 367 of this title The Railway Labor Act, referred to in subsecs. (a2)(iii) and (c)(v), is act May 20, 1926, ch. 347 44 Stat. 577 section 151 of this title Amendments 1988Subsec. (a2)(i)(A). Pub. L. 100647 section 351(i) of this title 1983Subsec. (a2)(i)(A). Pub. L. 9876 1974Subsec. (a1)(ii). Pub. L. 93445 1968Subsec. (a1)(iii). Pub. L. 90257,  204(a) Subsec. (a2)(i)(A). Pub. L. 90257,  204(b) 1963Subsec. (a2)(i). Pub. L. 88133 1959Subsec. (a2)(iv). Pub. L. 8628 1958Subsec. (a1)(ii). Pub. L. 85927 1951Subsec. (a1). Act Oct. 30, 1951 1946Subsec. (a1). Act July 31, 1946 Subsec. (a2). Act July 31, 1946 Subsecs. (b) to (e). Act July 31, 1946 1940Subsec. (a)(ii). Act Oct. 10, 1940 Subsec. (a)(iv). Act Oct. 10, 1940 Subsec. (a)(v). Act Oct. 10, 1940 Subsec. (a)(vi). Act Oct. 10, 1940 Subsec. (a)(vii), (viii). Act Oct. 10, 1940 1939Subsec. (a). Act June 20, 1939 Subsec. (b). Act June 20, 1939 Subsecs. (c) to (e). Act June 20, 1939 Statutory Notes and Related Subsidiaries Effective Date of 1983 Amendment Amendment by Pub. L. 9876 Dec. 31, 1983 section 411(b) of Pub. L. 9876 section 351 of this title Effective Date of 1974 Amendment Amendment by Pub. L. 93445 Jan. 1, 1975 section 603 of Pub. L. 93445 section 402 of Title 42 Effective Date of 1968 Amendment Amendment by section 204(a) of Pub. L. 90257 June 30, 1968 section 204(b) of Pub. L. 90257 February 15, 1968 section 208 of Pub. L. 90257 section 352 of this title Effective Date of 1963 Amendment Pub. L. 88133, title III,  302(b) Oct. 5, 1963 77 Stat. 222 The amendment made by subsection (a) [amending this section] shall be effective only with respect to an employee who leaves work voluntarily after the date of enactment of this Act [ Oct. 5, 1963 Effective Date of 1959 Amendment Amendment by Pub. L. 8628 June 30, 1958 Dec. 31, 1957 section 309 of Pub. L. 8628 section 351 of this title Effective Date of 1958 Amendment Amendment by Pub. L. 85927 June 30, 1958 section 207(a) of Pub. L. 85927 section 351 of this title Effective Date of 1951 Amendment Amendment by act Oct. 30, 1951 Jan. 1, 1952 Oct. 30, 1951 section 351 of this title Effective Date of 1946 Amendment Amendment by act July 31, 1946 July 1, 1947 July 31, 1946 section 352 of this title Effective Date of 1940 Amendment For effective date of amendment by act Oct. 10, 1940 Oct. 10, 1940 section 351 of this title  355. Claims for benefits (a) Publication of Boards regulations Claims for benefits and appeals from determinations with respect thereto shall be made in accordance with such regulations as the Board shall prescribe. Each employer shall post and maintain, in places readily accessible to employees in his service, such printed statements concerning such regulations as the Board supplies to him for such purpose, and shall keep available to his employees copies of such printed statements. Such printed statements shall be supplied by the Board to each employer without cost to him. (b) Findings, hearings, investigations, etc., by Board The Board is authorized and directed to make findings of fact with respect to any claim for benefits and to make decisions as to the right of any claimant to benefits. The Board is further authorized to hold such hearings, to conduct such investigations and other proceedings, and to establish, by regulations or otherwise, such procedures as it may deem necessary or proper for the determination of a right to benefits. When a claim for benefits is filed with the Board, the Board shall provide notice of such claim to the claimants base-year employer or employers and afford such employer or employers an opportunity to submit information relevant to the claim before making an initial determination on the claim. When the Board initially determines to pay benefits to a claimant under this chapter, the Board shall provide notice of such determination to the claimants base-year employer or employers. (c) Hearing and review of decisions on claims (1) Each qualified employee whose claim for benefits has been denied in whole or in part upon an initial determination with respect thereto upon a basis other than one which is reviewable pursuant to one of the succeeding paragraphs of this subsection, shall be granted an opportunity for a fair hearing thereon before a referee or such other reviewing body as the Board may establish or assign thereto. In any such case the Board or the person or reviewing body so established or assigned shall, by publication or otherwise, notify all parties properly interested of their right to participate in the hearing and of the time and place of the hearing. (2) Any claimant whose claim for benefits has been denied in an initial determination with respect thereto upon the basis of his not being a qualified employee, and any claimant who contends that under an initial determination of his claim he has been awarded benefits at less than the proper rate, may appeal to the Board for the review of such determination. Thereupon the Board shall review the determination and for such review may designate one of its officers or employees to receive evidence and to report to the Board thereon together with recommendations. In any such case the Board or the person so designated shall, by publication or otherwise, notify all parties properly interested of their right to participate in the proceeding and, if a hearing is to be held, of the time and place of the hearing. At the request of any party properly interested the Board shall provide for a hearing, and may provide for a hearing on its own motion. The Board shall prescribe regulations governing the appeals provided for in this paragraph and for decisions upon such appeal. (3) Any base-year employer of a claimant whose claim for benefits has been granted in whole or in part, either in an initial determination with respect thereto or in a determination after a hearing pursuant to paragraph (1), and who contends that the determination is erroneous for a reason or reasons other than a reason that is reviewable under paragraph (4), may appeal to the Board for review of such determination. Despite such an appeal, the benefits awarded shall be paid to such claimant, subject to recovery by the Board if and to the extent found on the appeal to have been erroneously awarded. The Board shall take such action as is appropriate to recover the amount of such benefits including if feasible adjustment in subsequent payments pursuant to the first two paragraphs of section 352(d) of this title (4) In any case in which benefits are awarded to a claimant in whole or in part upon the basis of pay earned in the service of a person or company found by the Board to be an employer as defined in this chapter but which denies that it is such an employer, such benefits awarded on such basis shall be paid to such claimant subject to a right of recovery of such benefits. The Board shall thereupon designate one of its officers or employees to receive evidence and to report to the Board on whether such benefits should be repaid. The Board may also designate one of its officers or employees to receive evidence and report to the Board whether or not any person or company is entitled to a refund of contributions or should be required to pay contributions under this chapter, regardless of whether or not any claims for benefits will have been filed upon the basis of service in the employ of such person or company, and shall follow such procedure if contributions are assessed and payment is refused or payment is made and a refund claimed upon the basis that such person or company is or will not have been liable for such contributions. In any such case the Board or the person so designated shall, by publication or otherwise, notify all parties properly interested of their right to participate in the proceeding and, if a hearing is to be held, of the time and place of the hearing. At the request of any party properly interested the Board shall provide for a hearing, and may provide for a hearing on its own motion. The Board shall prescribe regulations governing the proceedings provided for in this paragraph and for decisions upon such proceedings. (5) Final decision of the Board in the cases provided for in the preceding three paragraphs shall be communicated to the claimant and to the other interested parties within fifteen days after it is made. Any properly interested party notified, as hereinabove provided, of his right to participate in the proceedings may obtain a review of any such decision by which he claims to be aggrieved or the determination of any issue therein in the manner provided in subsection (f) of this section with respect to the review of the Boards decisions upon claims for benefits and subject to all provisions of law applicable to the review of such decisions. Subject only to such review, the decision of the Board upon all issues determined in such decision shall be final and conclusive for all purposes and shall conclusively establish all rights and obligations, arising under this chapter, of every party notified as hereinabove provided of his right to participate in the proceedings. (6) For purposes of this subsection and subsections (d) and (f), any base-year employer of the claimant is a properly interested party. (7) Any issue determinable pursuant to this subsection and subsection (f) of this section shall not be determined in any manner other than pursuant to this subsection and subsection (f). (d) Decisions of reviewing bodies; review and finality The Board shall prescribe regulations governing the filing of cases with and the decision of cases by reviewing bodies, and the review of such decisions. The Board may provide for intermediate reviews of such decisions by such bodies as the Board may establish or assign thereto. The Board may (i) on its own motion review a decision of an intermediate reviewing body on the basis of the evidence previously submitted in such case, and may direct the taking of additional evidence, or (ii) permit such parties as it finds properly interested in the proceedings to take appeals to the Board. Unless a review or an appeal is had pursuant to this subsection, the decision of an intermediate reviewing body shall, subject to such regulations as the Board may prescribe, be deemed to be the final decision of the Board. (e) Application of rules of evidence in law and equity; notice of findings In any proceeding other than a court proceeding, the rules of evidence prevailing in courts of law or equity shall not be controlling, but a full and complete record shall be kept of all proceedings and testimony, and the Boards final determination, together with its findings of fact and conclusions of law in connection therewith, shall be communicated to the parties within fifteen days after the date of such final determination. (f) Review of final decision of Board by Courts of Appeals; costs Any claimant, or any railway labor organization organized in accordance with the provisions of the Railway Labor Act [ 45 U.S.C. 151 section 2112 of title 28 An applicant for review of a final decision of the Board concerning a claim for benefits shall not be liable for costs, including costs of service, or costs of printing records, except that costs may be assessed by the court against such applicant if the court determines that the proceedings for such review have been instituted or continued without reasonable ground. (g) Finality of Board decisions Findings of fact and conclusions of law of the Board in the determination of any claim for benefits or refund, the determination of any other matter pursuant to subsection (c) of this section, and the determination of the Board that the unexpended funds in the account are available for the payment of any claim for benefits or refund under this chapter, shall be, except as provided in subsection (f) of this section, binding and conclusive for all purposes and upon all persons, including the Comptroller General and any other administrative or accounting officer, employee, or agent of the United States, and shall not be subject to review in any manner other than that set forth in subsection (f) of this section. (h) Benefits payable prior to final decision of Board Except as may be otherwise prescribed by regulations of the Board, benefits payable with respect to any period prior to the date of a final decision of the Board with respect to a claim therefor, shall be paid only after such final decision. (i) Fees for presenting claims; penalties No claimant or other properly interested person claiming benefits shall be charged fees of any kind by the Board, its employees or representatives, with respect to such claim. Any such claimant or other properly interested person may be represented by counsel or other duly authorized agent, in any proceeding before the Board or its representatives or a court, but no such counsel or agent for a claimant shall either charge or receive for such services more than an amount approved by the Board or by the court before whom the proceedings of the Board are reviewed. Any person who violates any provision of this subsection shall be punished by a fine of not more than $10,000 or by imprisonment not exceeding one year. ( June 25, 1938, ch. 680,  5 52 Stat. 1099 Oct. 10, 1940, ch. 842 54 Stat. 1098 July 31, 1946, ch. 709 60 Stat. 738 June 25, 1948, ch. 646 62 Stat. 870 May 24, 1949, ch. 139,  127 63 Stat. 107 Pub. L. 85791,  23 Aug. 28, 1958 72 Stat. 948 Pub. L. 9735, title XI,  1128(a) Aug. 13, 1981 95 Stat. 641 Pub. L. 98620, title IV,  402(47) Nov. 8, 1984 98 Stat. 3360 Pub. L. 100647, title VII,  7104(a) Nov. 10, 1988 102 Stat. 3771  Editorial Notes  References in Text This chapter, referred to in subsecs. (b), (c)(4), (5), and (g), was in the original this Act, meaning act June 25, 1938, ch. 680 52 Stat. 1094 section 1107 of Title 42 section 367 of this title The Railway Labor Act, referred to in subsec. (f), is act May 20, 1926, ch. 347 44 Stat. 577 section 151 of this title Codification In subsec. (f), Courts of Appeals, United States court of appeals for the circuit, United States Court of Appeals for the Seventh Circuit substituted for Circuit Courts of Appeals, United States circuit court of appeals for the circuit, and United States Circuit Court of Appeals for the Seventh Circuit, respectively, on authority of act June 25, 1948 May 24, 1949 act June 7, 1934, ch. 426 48 Stat. 926 Amendments 1988Subsec. (b). Pub. L. 100647,  7104(a) Subsec. (c)(1). Pub. L. 100647,  7401(b)(1) Subsec. (c)(2). Pub. L. 100647,  7104(b)(3) Subsec. (c)(3). Pub. L. 100647,  7104(b)(4) Subsec. (c)(4). Pub. L. 100647,  7104(b)(5) Subsec. (c)(5). Pub. L. 100647,  7104(b)(6) Subsec. (c)(6). Pub. L. 100647,  7104(b)(8) Subsec. (c)(7). Pub. L. 100647,  7104(b)(9) Subsec. (f). Pub. L. 100647,  7104(c) 1984Subsec. (f). Pub. L. 98620 1981Subsec. (f). Pub. L. 9735 1958Subsec. (f). Pub. L. 85791 section 2112 of title 28 1946Subsec. (c). Act July 31, 1946 Subsec. (d). Act July 31, 1946 Subsec. (e). Act July 31, 1946 Subsec. (f). Act July 31, 1946 Subsec. (g). Act July 31, 1946 Subsec. (i). Act July 31, 1946 1940Subsec. (c). Act Oct. 10, 1940 Statutory Notes and Related Subsidiaries Effective Date of 1988 Amendment Pub. L. 100647, title VII,  7104(f) Nov. 10, 1988 102 Stat. 3772 The amendments made by this section [amending this section and section 362 of this title January 1, 1990 Effective Date of 1984 Amendment Amendment by Pub. L. 98620 Nov. 8, 1984 section 403 of Pub. L. 98620 section 1657 of Title 28 Effective Date of 1981 Amendment Amendment by Pub. L. 9735 Oct. 1, 1981 section 1129 of Pub. L. 9735 section 231 of this title Effective Date of 1946 Amendment Amendment by act July 31, 1946 July 31, 1946 July 31, 1946 Effective Date of 1940 Amendment For effective date of amendment by act Oct. 10, 1940 Oct. 10, 1940 section 351 of this title  355a. Acceptance of claims for benefits  Whenever there is duly tendered to the Board, by any person, any claim for unemployment compensation pursuant to the Railroad Unemployment Insurance Act [ 45 U.S.C. 351 ( June 29, 1956, ch. 477 70 Stat. 437  Editorial Notes  References in Text The Railroad Unemployment Insurance Act, referred to in text, is act June 25, 1938, ch. 680 52 Stat. 1094 section 367 of this title Codification Section was enacted as part of act June 29, 1956 Prior Provisions Similar provisions were contained in the following prior appropriation act: Aug. 1, 1955, ch. 437 69 Stat. 411  356. Returns of compensation; conclusiveness; failure to make  Employers shall file with the Board, in such manner and at such times as the Board by regulations may prescribe, returns of compensation of employees, and, if the Board shall so require, shall distribute to employees annual statements of compensation: Provided ( June 25, 1938, ch. 680,  6 52 Stat. 1101 June 20, 1939, ch. 227,  12 53 Stat. 847 Oct. 10, 1940, ch. 842,  21 54 Stat. 1099 July 31, 1946, ch. 709,  317 60 Stat. 739 Pub. L. 89700, title II,  203 Oct. 30, 1966 80 Stat. 1087  Editorial Notes Amendments 1966 Pub. L. 89700 1946Act July 31, 1946 1940Act Oct. 10, 1940 1939Act June 20, 1939 Statutory Notes and Related Subsidiaries Effective Date of 1946 Amendment Amendment by act July 31, 1946 July 31, 1946 July 31, 1946 Effective Date of 1940 Amendment For effective date of amendment by act Oct. 10, 1940 Oct. 10, 1940 section 351 of this title  357. Free transportation  It shall not be unlawful for carriers to furnish free transportation to employees qualified for benefits or serving waiting periods under this chapter. ( June 25, 1938, ch. 680,  7 52 Stat. 1102  Editorial Notes  References in Text This chapter, referred to in text, was in the original this Act, meaning act June 25, 1938, ch. 680 52 Stat. 1094 section 1107 of Title 42 section 367 of this title  358. Contributions (a) Employer contribution (1) In general (A) General rule (i) Contribution rate generally Every employer shall pay a contribution, with respect to having employees in his service, equal to the percentage determined under subparagraph (B), (C), or (D), whichever is applicable, of so much of the compensation paid in any calendar month by such employer to any employee as is not in excess of the monthly compensation base for that month as computed under section 351(i) of this title (ii) Multiple employer limitation If compensation is paid to an employee by more than one employer in any calendar month (I) the contributions required by this subsection shall not apply to any amount of the aggregate compensation paid to such employee by all such employers in such calendar month which is in excess of such monthly compensation base; and (II) each employer (other than a subordinate unit of a national-railway-labor-organization employer) shall be liable for that portion of the contribution with respect to such compensation paid by all such employers which the compensation paid by him to such employee bears to the total compensation paid in such month by all such employers to such employee. In the event that the compensation paid by such employers to the employee in such month is less than such monthly compensation base, each subordinate unit of a national-railway-labor-organization employer shall be liable for such portion of any additional contribution as the compensation paid by such employer to such employee in such month bears to the total compensation paid by all such employers to such employee in such month. (B) Transitional rule (i) 1st, 2d, and 3d calendar years Except as provided in clause (vi), with respect to compensation paid in calendar years 1988, 1989, and 1990, the contribution rate shall be 8 percent. (ii) 4th calendar year With respect to compensation paid in calendar year 1991, the contribution rate shall be the smaller of (I) the maximum contribution limit computed under paragraph (20); or (II) the percentage computed pursuant to the following formula:        2A+B  R=    3 (iii) 5th calendar year With respect to compensation paid in calendar year 1992, the contribution rate shall be the smaller of (I) the maximum contribution limit computed under paragraph (20); or (II) the percentage computed pursuant to the following formula:        A+2C  R=    3 (iv) Meaning of symbols For purposes of the formulas in clauses (ii) and (iii) (I) R is the applicable contribution rate expressed as a percentage for months in the calendar year; (II) A is the contribution rate determined under clause (i); (III) B is the percentage rate for the employer, as determined under subparagraph (C), for calendar year 1991; and (IV) C is the percentage rate for the employer, as determined under subparagraph (C), for calendar year 1992. (v) Special rule for certain computations For purposes of computing B and C in such formulas (I) the percentage rate computed under subparagraph (C), if more than the maximum contribution limit computed under paragraph (20) shall not be reduced to that limit; and (II) any computations which under subparagraph (C) are to be made on the basis of a 4-quarter or a 12-quarter period ending on a given June 30 shall be made on the basis of a period beginning on January 1, 1990 (vi) Special transition rule for public commuter railroads With respect to each of calendar years 1989 and 1990, the contribution of the National Railroad Passenger Corporation and an employer which on November 10, 1988 (C) Experience-rated contributions With respect to compensation paid in a calendar year that begins after December 31, 1992 (i) Step 1 Compute the employers benefit ratio as of the preceding June 30 to 4 decimal points in accordance with paragraph (2). (ii) Step 2 Subtract the employers reserve ratio as of the preceding June 30 as computed to 4 decimal points in accordance with paragraph (4). (iii) Step 3 Subtract the pooled credit ratio for the calendar year, if any, as computed to 4 decimal points in accordance with paragraph (12). (iv) Step 4 Multiply by 100 the total arrived at under the steps set forth in clauses (i) through (iii) so as to obtain a percentage rate, which shall be rounded to the nearest 100th of 1 percent. If the total arrived at under such steps is 0 or less than 0, the percentage rate as so computed shall be 0. (v) Step 5 Add 0.65 to the percentage rate arrived at under clause (iv), representing the portion of the employers contribution which is to be deposited to the credit of the fund under subsection (i). (vi) Step 6 Add the surcharge rate for the calendar year, if any, as computed under paragraph (14). (vii) Step 7 Add the pooled charge ratio for the calendar year, if any, as computed to 4 decimal points under paragraph (13) and multiplied by 100. (viii) Step 8 Reduce the precentage 1 1 (D) New-employer contribution rates Notwithstanding subparagraphs (B) and (C), the contribution rate applicable to a new employer who does not become subject to this chapter until after December 31, 1989 (i) 1st calendar year With respect to compensation paid in calendar months before the end of the first full calendar year in which the employer is subject to this chapter, the contribution rate shall be the average contribution rate paid by all employers during the 3 calendar years preceding the calendar year before the calendar year in which the compensation is paid. The average contribution rate shall be determined (I) by dividing the aggregate contributions paid by all employers under this subsection in those 3 calendar years by the aggregate compensation with respect to which such contributions were paid; and (II) by multiplying the resulting ratio as computed to 4 decimal points by 100. (ii) 2d calendar year With respect to compensation paid in calendar months in the next calendar year, the contribution rate shall be the smaller of (I) the maximum contribution limit computed under paragraph (20); or (II) the percentage rate computed pursuant to the following formula:         2(A2)+B  R= A      3 (iii) 3d calendar year With respect to compensation paid in calendar months in the third full calendar year in which the employer is subject to the coverage of this chapter, the contribution rate shall be the smaller of (I) the maximum contribution limit computed under paragraph (20); or (II) the percentage rate computed pursuant to the following formula:        A3+2C  R=    3 (iv) Subsequent calendar years With respect to all calendar months in calendar years subsequent to that calendar year, the contribution rate shall be determined under subparagraph (C). (v) Meaning of symbols For purposes of the formulas in clauses (ii) and (iii) (I) R is the applicable contribution rate expressed as a percentage for months in the calendar year; (II) A1 is the contribution rate determined under clause (i) for such employers first full calendar year; (III) A2 is the contribution rate which would have been determined under clause (i) if the employers second calendar year had been its first full calendar year; (IV) A3 is the contribution rate which would have been determined under clause (i) if the employers third calendar year had been such employers first full calendar year; (V) B is the contribution rate for the employer as determined under subparagraph (C) for the employers second full calendar year; and (VI) C is the contribution rate for the employer as determined under subparagraph (C) for the employers third full calendar year. (vi) Special rule for certain computations For purposes of computing B and C in such formulas (I) the percentage rate computed under subparagraph (C), shall not be reduced under clause (viii) of that subparagraph; and (II) any computations which under subparagraph (C) are to be made on the basis of a 4-quarter or 12-quarter period ending on a given June 30 shall be made on the basis of a period commencing with the first day of the first calendar quarter that begins after the date on which the employer first commenced paying compensation subject to this chapter and ending on that June 30, and the amount so computed shall be increased to an amount that bears the same ratio to the amount so computed as 4 or 12, as appropriate, bears to the number of calendar quarters in the period on which the computation was based. (2) Benefit ratio An employers benefit ratio as of any given June 30 shall be determined by dividing all benefits charged to the employer under paragraph (15) during the 12 calendar quarters ending on such June 30 by the employers 3-year compensation base as of such June 30 as computed under paragraph (3). (3) 3-year compensation base An employers 3-year compensation base as of any given June 30 is the aggregate compensation with respect to which contributions were paid by the employer under this subsection in the 12 calendar quarters ending on such June 30. (4) Reserve ratio An employers reserve ratio as of any given June 30 shall be computed by dividing the employers reserve balance as of such June 30, as computed under paragraph (6), by that employers 1-year compensation base as of such June 30, as computed under paragraph (5). The employers reserve ratio may be either a positive or a negative figure, depending upon whether the employers reserve balance is a positive or negative figure. (5) 1-year compensation base An employers 1-year compensation base as of any given June 30 is the aggregate compensation with respect to which contributions were paid by the employer under this subsection in the 4 calendar quarters ending on such June 30. (6) Reserve balance An employers reserve balance as of any given June 30 shall be determined by subtracting the employers cumulative benefit balance as of such June 30, computed under paragraph (7), from the employers net cumulative contribution balance as of such June 30, computed under paragraph (8). An employers reserve balance may be either positive or negative, depending upon whether or not that employers net cumulative contribution balance exceeds the employers cumulative benefit balance. (7) Cumulative benefit balance An employers cumulative benefit balance as of any given June 30 shall be determined by adding (A) the net amount of the benefits charged to the employer under paragraph (15) on or after January 1, 1990 (B) the cumulative amount of the employers unallocated charges for the same period, if any, as computed under paragraph (9). (8) Net cumulative contribution balance An employers net cumulative contribution balance as of any given June 30 shall be determined as follows: (A) Step 1 Compute the sum of (i) all contributions paid by the employer pursuant to this subsection; (ii) that portion of the tax imposed under section 3321(a) of title 26 2 2 (iii) any taxes paid by the employer pursuant to section 3321(a) of title 26 section 360(d) of this title October 1, 1985 on or after January 1, 1990 (B) Step 2 Subtract an amount equal to the amount of such contributions deposited to the credit of the fund under subsection (i). (C) Step 3 Add an amount equal to the aggregate amount by which such contributions were reduced in prior calendar years as a result of pooled credits, if any, under paragraph (1)(C)(iii). (9) Unallocated charge An employers unallocated charge as of any given June 30 is the amount that as of such June 30 bears the same ratio to the system unallocated charge balance, computed under paragraph (10), as the employers 1-year compensation base, computed under paragraph (5), bears to the system compensation base computed under paragraph (11). (10) System unallocated charge balance The system unallocated charge balance as of any given June 30 shall be determined as follows: (A) Step 1 Compute the aggregate amount of all interest paid by the account on loans from the Railroad Retirement Account after September 30, 1985 section 360(d) of this title (B) Step 2 Add the aggregate amount of any additions to the system unallocated charge balance specified in paragraphs (15) and (16), during that period. (C) Step 3 Add the aggregate amount of any other expenditures by the account during that period not chargeable to any individual employer under paragraph (15) or to the fund under section 361 of this title (D) Step 4 Subtract the aggregate amount of all income to the account, under section 360(a)(iv) of this title section 360(a)(vii) of this title (E) Step 5 Subtract the aggregate amount of all transfers to the account, pursuant to section 361(d) of this title (F) Step 6 Subtract the aggregate amount of all other income and receipts of the account, during that period, which are not assigned to individual employer balances. (G) Step 7 Subtract the net cumulative contribution balance of each employer whose balance has been cancelled pursuant to paragraph (16), during that period, calculated as of the date of such cancellation. (11) System compensation base The system compensation base as of any given June 30 shall be determined by adding together the amounts of the 1-year compensation bases of all employers and employee representatives subject to this chapter, computed in accordance with paragraph (5), as of such June 30. (12) Pooled credit ratio The pooled credit ratio, if any, for a calendar year shall be determined as follows: (A) Step 1 Compute the balance to the credit of the account as of the close of business on the preceding June 30, including any amounts in the account attributable to loans made under section 360(d) of this title October 1, 1985 June 30, 1991 (B) Step 2 If there is such an excess amount, divide that excess amount by the system compensation base as of the June 30 preceding the calendar year. The result is the pooled credit ratio for the calendar year. (13) Pooled charge ratio The pooled charge ratio, if any, for a calendar year shall be determined as follows: (A) Step 1 With respect to each employer whose contribution rate for that calendar year as computed through step 6 under paragraph (1)(C) was greater than the maximum contribution limit computed under paragraph (20), multiply the employers 1-year compensation base as of the preceding June 30, as computed in accordance with paragraph (5), by the difference between (i) the percentage rate determined under subparagraph (B), (C), or (D) of paragraph (1) before the reduction to the maximum contribution limit; and (ii) the maximum contribution limit. (B) Step 2 Add the amounts arrived at under step 1 so as to obtain an aggregate amount for all such employers. (C) Step 3 For each employer whose contribution rate as computed through step 3 under paragraph (1)(C) was less than 0, the percentage rate by which such employers rate was raised in order to bring that rate to 0 shall be multiplied by that employers 1-year compensation base as of the preceding June 30. Subtract the total of the amounts computed under the preceding sentence for all employers from the amount arrived at in step 2. (D) Step 4 Divide the aggregate amount arrived at under step 3 by the system compensation base as of the preceding June 30 as computed under paragraph (11) minus the one-year compensation base of those employers whose rates computed through step 6 of paragraph (1)(C) exceeded the maximum contribution rate computed under paragraph (20). The result is the pooled charge ratio for the calendar year. (14) Surcharge rate The surcharge rate for a calendar year, if any, shall be determined as follows: (A) Step 1 Compute the balance to the credit of the account as of the close of business on the preceding June 30, including any amounts in the account attributable to loans made under section 360(d) of this title October 1, 1985 June 30, 1991 (B) Step 2 (i) If the balance to the credit of the account is less than the greater of the amounts referred to in the 2nd sentence of step 1 but is equal to or more than the greater of $50,000,000 or of the amount that bears the same ratio to $50,000,000 as the system compensation base as of that June 30 bears to the system compensation base as of June 30, 1991 (ii) If the balance to the credit of the account is less than the greater of the amounts referred to in the clause (i), but greater than or equal to zero, then the surcharge rate for the calendar year shall be 2.5 percent. (iii) If the balance to the credit of the account is less than zero, the surcharge rate for the calendar year shall be 3.5 percent. (15) Chargeable benefits (A) In general Beginning January 1, 1990 (B) Adjustments A sum equal to each amount realized in recovery for overpayment, erroneous payment, or reimbursement of benefits and credited to the account pursuant to section 360(a)(v) or 360(a)(viii) of this title shall be subtracted from the cumulative benefit balances of the employers of the employees to whom such an amount was paid as a benefit in the proportion to the amount by which each such employers cumulative benefit balance was increased as a result of the payment of the benefit. (C) Multiple employers (i) In general All benefits paid to an employee who had more than 1 base-year employer shall be charged to the cumulative benefit balances of the employees base year employers (I) in reverse chronological order of the employees employment with each such employer in the base year if the employer at the time of the claim was the last base year employer, and the amount charged to each employer shall not exceed the compensation paid by that employer to the employee in the base year; and (II) in all other cases, in the same ratio as the compensation paid to such employee by the employer bears to the total of such compensation paid to such employees by all such employers in the base year. (ii) Special rule for employer with cancelled balances All benefits chargeable under this subparagraph to an employer for which the Board has cancelled balances under paragraph (16) shall be added to the system unallocated charge balance. (16) Defunct employer Whenever the Board determines, pursuant to such regulations as the Board may prescribe, that an employer has permanently ceased to pay compensation with respect to which contributions are payable pursuant to this subsection, the Board shall, effective on the date of the Boards determination, transfer the employers net cumulative contribution balance as a subtraction from, and cumulative benefit balance as an addition to, the system unallocated charge balance and cancel all other accumulations of the employer. (17) Individual employer record (A) In general As of January 1, 1990 (B) Definition As used in this paragraph, the term individual employer record means a record of an individual employers benefit ratio, reserve ratio, 1-year compensation base, 3-year compensation base, unallocated charge, reserve balance, net cumulative contribution balance, and cumulative benefit balance. (18) Joint employer records Pursuant to regulations prescribed by the Board, the Board may allow 2 or more employers, upon application, to establish and maintain, or to discontinue, a joint individual employer record for such employers as though such joint record constituted a single employers individual employer record. (19) Mergers, consolidations, or other changes in employer identity (A) With other employers In the event of a merger, consolidation, unification, or reorganization in which an employer combines with another employer and the combination entails no partitioning of the property of the employer, the individual employer records of the 2 employers shall be combined into a joint individual employer record if the parties request such joint treatment pursuant to paragraph (18) or if the Board otherwise determines, pursuant to regulations prescribed by the Board, that such joint treatment is desirable. (B) With nonemployers In the event of a merger, consolidation, unification, or reorganization in which an employer combines with another entity that is not an employer, the employers individual employer record shall attach to the combined entity. (C) Sale of assets In the event property of an employer is sold or transferred to another employer or other entity, or is partitioned among 2 or more employers or entities, the cumulative benefit balance, net cumulative contribution balance, 1-year compensation base, and 3-year compensation base of the employer shall be prorated among the employers which receive the property, including any entities which become employers by virtue of such transfer or partition, in such equitable manner as the Board by regulation shall prescribe. (D) Reincorporation The cumulative benefit balance, net cumulative contribution balance, 1-year compensation base, and 3-year compensation base of an employer that reincorporates or otherwise alters its corporate identity in a transaction not involving a merger, consolidation, or unification shall attach to the reincorporated or altered entity. (E) Abandonment If an employer abandons property or discontinues service but continues to operate as an employer, the employers individual employer record shall continue to be calculated as provided in this subsection without retroactive adjustment. (20) Maximum contribution limit The maximum contribution limit with respect to a calendar year is 12 percent, unless a 3.5 percent surcharge under paragraph (14) is in effect with respect to that calendar year. If such a surcharge is in effect the maximum contribution limit with respect to that calendar year is 12.5 percent. (21) Special rules for certain computations under paragraph (1)(C) (A) Any computation that is to be made under paragraph (1)(C) on the basis of a 12-quarter period ending on a given June 30 shall be made on the basis of a period (i) beginning on the later of (I)  January 1, 1990 (II) the first day of the first calendar quarter that begins after the date on which the employer first began to pay compensation subject to this chapter; or (III) July 1 of the third calendar year preceding that June 30; and (ii) ending on that June 30. (B) The amount computed under subparagraph (A) shall be increased to an amount that bears the same ratio to the amount so computed as 12 bears to the number of calendar quarters on which the computation is based. (b) Employee representative contribution Each employee representative shall pay a contribution with respect to so much of the compensation paid to him for services performed as an employee representative as is not in excess of the monthly compensation base computed in accordance with section 351(i) of this title (c) Board proclamation of balance (1) In general Not later than October 15, 1990 (A) the balance to the credit of the account as of the preceding June 30 for purposes of paragraphs (12) and (14) of subsection (a); (B) the balance of any advances to the account under section 360(d) of this title September 30, 1985 (C) the system compensation base as of that June 30 as computed in accordance with paragraph (11) of that subsection; (D) the system unallocated charge balance as of that June 30, as computed in accordance with paragraph (10) of that subsection; and (E) the pooled credit ratio, the pooled charge ratio, and the surcharge rate, if any, as determined under paragraph (12), (13), or (14) of that subsection and applicable in the following calendar year. (2) Publication of notice As soon as is practicable after such proclamation, the Board shall publish notice in the Federal Register of the amounts so determined and proclaimed. (d) Notifications by Board (1) Not later than the last day of any calendar quarter that begins after March 31, 1990 (2) Not later than October 15, 1990 (e) Information to verify accuracy to be made available Notwithstanding any other provision of law, upon request by an employer or employee representative, the Board shall make available to such employer or employee representative any information available to the Board which may be necessary to verify the accuracy of a contribution rate determined by the Board to be applicable to such employer or employee representative, or of any component of that contribution rate including the accuracy of the employers individual employer record, upon payment by such employer or employee representative to the Board of the cost incurred by the Board in making such information available. The amounts so paid to the Board shall be credited to and deposited in the fund. (f) Fractional parts of a cent In the payment of any contribution under this chapter, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to one cent. (g) Adjustments for improper payments If more or less than the correct amount of the contribution required by this section is paid with respect to any compensation, then, under regulations prescribed under this chapter by the Board, proper adjustments with respect to the contribution shall be made, without interest, in connection with subsequent contribution payments made under this chapter by the same employer or employee representative. (h) Refunding overpayment; collecting underpayment If more or less than the correct amount of the contribution required by this section is paid with respect to any compensation and the overpayment or underpayment of the contribution cannot be adjusted under subsection (d) of this section, the amount of the overpayment shall be refunded from the account, or the amount of the underpayment shall be collected, in such manner and at such times (subject to the statute of limitations properly applicable thereto) as may be prescribed by regulations of the Board. (i) Collection and deposit of contributions The contributions required by this chapter shall be collected by the Board and shall be deposited by it with the Secretary of the Treasury of the United States, such part thereof as equals 0.65 per centum of the total compensation on which such contributions are based to be deposited to the credit of the fund and the balance to be deposited to the credit of the account. (j) Time for payment; failure to pay promptly The contributions required by this chapter shall be collected and paid quarterly or at such other times and in such manner and under such conditions not inconsistent with this chapter as may be prescribed by regulations of the Board, and shall not be deducted, in whole or in part, from the compensation of employees in the employers employ. If a contribution required by this chapter is not paid when due, there shall be added to the amount payable (except in the case of adjustments made in accordance with the provisions of this chapter) interest at the rate of 1 per centum per month or fraction of a month from the date the contribution became due until paid. Any interest collected pursuant to this subsection shall be credited to the account. (k) Application of other laws; authority of Board All provisions of law, including penalties, applicable with respect to any tax imposed by the provisions of the Railroad Retirement Tax Act [ 26 U.S.C. 3201 Provided ( June 25, 1938, ch. 680,  8 52 Stat. 1102 July 31, 1946, ch. 709,  318 60 Stat. 739 June 23, 1948, ch. 608 62 Stat. 577 Aug. 31, 1954, ch. 1164 68 Stat. 1042 Pub. L. 85927 Sept. 6, 1958 72 Stat. 1782 Pub. L. 8628 May 19, 1959 73 Stat. 32 Pub. L. 88133, title III Oct. 5, 1963 77 Stat. 222 Pub. L. 89700, title II,  204 Oct. 30, 1966 80 Stat. 1087 Pub. L. 9492, title I,  1(g) Aug. 9, 1975 89 Stat. 463 Pub. L. 9735, title XI,  1128(b) Aug. 13, 1981 95 Stat. 641 Pub. L. 9876, title V,  503(a) Aug. 12, 1983 97 Stat. 440 Pub. L. 100647, title VII Nov. 10, 1988 102 Stat. 37593770 Pub. L. 101322,  8(a) July 6, 1990 104 Stat. 297  Editorial Notes  References in Text This chapter, referred to in text, was in the original this Act, meaning act June 25, 1938, ch. 680 52 Stat. 1094 section 1107 of Title 42 section 367 of this title Section 516(b) of the Railroad Unemployment Insurance and Retirement Improvement Act of 1988, referred to in subsec. (a)(8)(A)(ii), probably means section 7106(b) of Pub. L. 100647 Nov. 10, 1988 102 Stat. 3773 section 3321 of Title 26 The Railroad Retirement Tax Act, referred to in subsec. (k), is act Aug. 16, 1954, ch. 736 68A Stat. 431 section 3233 of Title 26 Amendments 1990Subsec. (a)(1)(B)(vi). Pub. L. 101322 1988Subsec. (a). Pub. L. 100647,  7102(a) Subsec. (b). Pub. L. 100647,  7102(b) Subsecs. (c) to (g). Pub. L. 100647,  7102(d) Subsec. (h). Pub. L. 100647,  7102(d)(1) Pub. L. 100647,  7102(c) Subsec. (i). Pub. L. 100647,  7103(a) Pub. L. 100647,  7102(d)(1) Subsecs. (j), (k). Pub. L. 100647,  7102(d)(1) 1983Subsec. (a). Pub. L. 9879,  503(a)(1) June 30, 1939 July 1, 1954 June 30, 1954 June 1, 1959 May 31, 1959 Provided, however July 1, 1954 June 30, 1954 June 1, 1959 May 31, 1959 December 31, 1946 December 31, 1946 July 1, 1954 June 30, 1954 June 1, 1959 May 31, 1959 December 31, 1946 December 31, 1946 1. With respect to compensation paid prior to January 1, 1948 2. With respect to compensation paid after the month in which this chapter was amended in 1959, the rate shall be as follows:. Subsec. (b). Pub. L. 9876,  503(a)(2) 1981Subsec. (f). Pub. L. 9735 1975Subsec. (a). Pub. L. 9492,  1(g)      $300,000,000 or more 0.5 $200,000,000 or more but less than $300,000,000 4.0 $100,000,000 or more but less than $200,000,000 5.5 $50,000,000 or more but less than $100,000,000 7.0 Less than $50,000,000 8.0 for prior provisions reading: $450,000,000 or more 112 $400,000,000 or more but less than $450,000,000 2 $350,000,000 or more but less than $400,000,000 212 $300,000,000 or more but less than $350,000,000 3 Less than $300,000,000 4 Subsec. (b). Pub. L. 9492,  1(h) June 30, 1939 July 1, 1954 June 30, 1954 June 1, 1959 May 31, 1959 1966Subsec. (a). Pub. L. 89700,  301(i) June 1, 1959 May 31, 1959 Subsec. (b). Pub. L. 89700 June 1, 1959 May 31, 1959 Subsec. (h). Pub. L. 89700,  204(b) section 3661 of title 26 1963Subsec. (a). Pub. L. 88133,  303(a) Subsec. (f). Pub. L. 88133,  304 1959Subsec. (a). Pub. L. 8628,  306 Subsec. (b). Pub. L. 8628,  307 1958Subsec. (a). Pub. L. 85927 1954Subsecs. (a), (b). Act Aug. 31, 1954 June 30, 1954 1948Subsec. (a). Act June 23, 1948 Subsec. (f). Act June 23, 1948 1946Subsec. (a). Act July 31, 1946 Subsec. (h). Act July 31, 1946 Statutory Notes and Related Subsidiaries Effective Date of 1990 Amendment Pub. L. 101322,  8(b) July 6, 1990 104 Stat. 297 The amendment made by subsection (a) [amending this section] shall be effective as of January 1, 1989 Effective Date of 1988 Amendment Pub. L. 100647, title VII,  7102(e) Nov. 10, 1988 102 Stat. 3770 The amendments made by this section [amending this section] shall take effect upon the date of the enactment of this Act [ Nov. 10, 1988 Pub. L. 100647, title VII,  7103(c) Nov. 10, 1988 102 Stat. 3770 The amendments made by this section [amending this section and sections 360 and 361 of this title] shall apply with respect to compensation paid in months beginning after September 30, 1988 Effective Date of 1983 Amendment Amendment by Pub. L. 9876 Dec. 31, 1983 section 503(c) of Pub. L. 9876 section 351 of this title Effective Date of 1981 Amendment Amendment by Pub. L. 9735 Oct. 1, 1981 section 1129 of Pub. L. 9735 section 231 of this title Effective Date of 1975 Amendment Amendment by Pub. L. 9492 Dec. 31, 1975 section 2 of Pub. L. 9492 section 351 of this title Effective Date of 1963 Amendment Pub. L. 88133, title III,  303(a) Oct. 5, 1963 77 Stat. 222 Dec. 31, 1963 Pub. L. 88133, title III,  304 Oct. 5, 1963 77 Stat. 223 Dec. 31, 1961 Effective Date of 1959 Amendment Amendment by sections 306(4), (5) and 307(1) of Pub. L. 8628 section 309 of Pub. L. 8628 section 351 of this title Effective Date of 1958 Amendment Amendment by Pub. L. 85927 Sept. 6, 1958 section 207(c) of Pub. L. 85927 section 351 of this title Effective Date of 1954 Amendment Amendment by act Aug. 31, 1954 July 1, 1954 Aug. 31, 1954 section 351 of this title Effective Date of 1946 Amendment Amendment by act July 31, 1946 Jan. 1, 1947 July 31, 1946 Adjustment or Refund of Excessive Contributions Act June 23, 1948, ch. 608,  5(b) 62 Stat. 578 Contributions paid under subsection (a) of section 8 of the Railroad Unemployment Insurance Act, as amended [subsec. (a) of this section], prior to the enactment of the foregoing amendment thereof [ June 23, 1948  359. Penalties (a) Failure to make report or furnish information; false or fraudulent statement or claim Any officer or agent of an employer, or any employee representative, or any employee acting in his own behalf, or any person whether or not of the character hereinbefore defined, who shall willfully fail or refuse to make any report or furnish any information required by the Board in the administration of this chapter, or who shall knowingly make or aid in making or cause to be made any false or fraudulent statement or report when a statement or report is required to be made for the purposes of this chapter, or who shall knowingly make or aid in making or cause to be made any false or fraudulent statement or claim for the purpose of causing benefits or other payment to be made or not to be made under this chapter, shall be punished by a fine of not more than $10,000 or by imprisonment not exceeding one year, or both. (b) Agreement by employee to bear employers contribution Any agreement by an employee to pay all or any portion of the contribution required of his employer under this chapter shall be void, and it shall be unlawful for any employer, or officer or agent of an employer, to make, require, or permit any employee to bear all or any portion of such contribution. Any employer, or officer or agent of an employer, who violates any provision of this subsection shall be punished for each such violation by a fine of not more than $10,000 or by imprisonment not exceeding one year, or both. (c) Punishments not specifically provided Any person who violates any provision of this chapter, the punishment for which is not otherwise provided, shall be punished for each such violation by a fine of not more than $1,000 or by imprisonment not exceeding one year, or both. (d) Payment and disposition of fines or penalties All fines and penalties imposed by a court pursuant to this chapter shall be paid to the court and be remitted from time to time by order of the judge to the Treasury of the United States to be credited to the account. ( June 25, 1938, ch. 680,  9 52 Stat. 1103  Editorial Notes  References in Text This chapter, referred to in text, was in the original this Act, meaning act June 25, 1938, ch. 680 52 Stat. 1094 section 1107 of Title 42 section 367 of this title  360. Railroad unemployment insurance account (a) Funds constituting account; availability for benefits or refunds The Secretary of the Treasury shall maintain in the unemployment trust fund established pursuant to section 1104 of title 42 section 358 of this title 1 1 section 364 of this title section 1104(e) of title 42 section 361 of this title section 362(g) of this title (b) Payment of benefits or refunds All moneys in the account shall be used solely for the payment of the benefits and refunds provided for by this chapter. The Board shall, from time to time, certify to the Secretary of the Treasury the name and address of each person or company entitled to receive benefits or a refund payment under this chapter, the amount of such payment, and the time at which it shall be made. Prior to audit or settlement by the Government Accountability Office, the Secretary of the Treasury, through the Fiscal Service of the Treasury Department, shall make payments from the account directly to such person or company of the amount of benefits or refund so certified by the Board: Provided, however (c) Annual report to Congress The Board shall include in its annual report to Congress a statement with respect to the status and operation of the account. (d) Transfer and retransfer of funds; interest Whenever the Board finds at any time that the balance in the railroad unemployment insurance account will be insufficient to pay the benefits and refunds which it estimates are due, or will become due, under this chapter, it shall request the Secretary of the Treasury to transfer from the Railroad Retirement Account to the credit of the railroad unemployment insurance account such moneys as the Board estimates would be necessary for the payment of such benefits and refunds, and the Secretary shall make such transfer. Whenever the Board finds that the balance in the railroad unemployment insurance account, without regard to the amounts transferred pursuant to the next preceding sentence, is sufficient to pay such benefits and refunds, it shall request the Secretary of the Treasury to retransfer from the railroad unemployment insurance account to the credit of the Railroad Retirement Account such moneys as in its judgment are not needed for the payment of such benefits and refunds, plus interest at a rate for each fiscal year equal to the average rate of interest borne by all special obligations held by the Railroad Retirement Account on the last day of the preceding fiscal year, rounded to the nearest multiple of one-eighth of 1 per centum, and the Secretary shall make such retransfer. In determining the balance in the railroad unemployment insurance account as of September 30 of any year pursuant to section 358(a) of this title ( June 25, 1938, ch. 680,  10 52 Stat. 1104 June 20, 1939, ch. 227,  13 53 Stat. 848 June 30, 1940 54 Stat. 1231 June 23, 1948, ch. 608,  7 62 Stat. 578 Pub. L. 8628 May 19, 1959 73 Stat. 32 Pub. L. 88133, title III,  305 Oct. 5, 1963 77 Stat. 223 Pub. L. 89700, title II,  205 Oct. 30, 1966 80 Stat. 1087 Pub. L. 90257, title II,  205 Feb. 15, 1968 82 Stat. 24 Pub. L. 93445, title IV,  403 Oct. 16, 1974 88 Stat. 1359 Pub. L. 9492, title I,  1(i) Aug. 9, 1975 89 Stat. 464 Pub. L. 9876, title III,  302 Aug. 12, 1983 97 Stat. 432 Pub. L. 99107,  4 Sept. 30, 1985 99 Stat. 479 Pub. L. 99155,  2(c) Nov. 14, 1985 99 Stat. 814 Pub. L. 99181,  3 Dec. 13, 1985 99 Stat. 1172 Pub. L. 99189,  3 Dec. 18, 1985 99 Stat. 1184 Pub. L. 99272, title XIII,  13302 Apr. 7, 1986 100 Stat. 327 Pub. L. 100647, title VII,  7103(b)(1) Nov. 10, 1988 102 Stat. 3770 Pub. L. 108271,  8(b) July 7, 2004 118 Stat. 814  Editorial Notes  References in Text Section 358(g) of this title section 358(j) of this title Pub. L. 100647, title VII,  7102(d)(1) Nov. 10, 1988 102 Stat. 3769 This chapter, referred to in subsecs. (a), (b), and (d), was in the original this Act, meaning act June 25, 1938, ch. 680 52 Stat. 1094 section 1107 of Title 42 section 367 of this title Codification Section 10(e)(g) of act June 25, 1938 section 1104 of Title 42 Amendments 2004Subsec. (b). Pub. L. 108271 1988Subsec. (a). Pub. L. 100647 1986Subsec. (d). Pub. L. 99272 December 19, 1985 December 19, 1985 1985Subsec. (d). Pub. L. 99189 December 19, 1985 December 18, 1985 Pub. L. 99181 December 18, 1985 December 14, 1985 Pub. L. 99155 December 14, 1985 November 14, 1985 Pub. L. 99107 November 14, 1985 September 30, 1985 1983Subsec. (d). Pub. L. 9876 September 30, 1985 September 30, 1985 1975Subsec. (a)(i). Pub. L. 9492,  1(i)(1) Subsec. (a)(ii). Pub. L. 9492,  1(i)(2) section 403 of Pub. L. 93445 1974Subsec. (e). Pub. L. 93445 Pub. L. 90257 1968Subsec. (a)(ii). Pub. L. 90257 Subsec. (e). Pub. L. 90257 1966Subsec. (a). Pub. L. 89700 1963Subsec. (d). Pub. L. 88133 1959Subsec. (d). Pub. L. 8628 1948Subsec. (a)(i). Act June 23, 1948 1939Subsec. (a). Act June 20, 1939 Statutory Notes and Related Subsidiaries Effective Date of 1988 Amendment Amendment by Pub. L. 100647 Sept. 30, 1988 section 7103(c) of Pub. L. 100647 section 358 of this title Effective Date of 1975 Amendment Amendment by Pub. L. 9492 Dec. 31, 1975 Aug. 9, 1975 section 2 of Pub. L. 9492 section 351 of this title Effective Date of 1974 Amendment Amendment by Pub. L. 93445 Jan. 1, 1975 section 603 of Pub. L. 93445 section 402 of Title 42 Effective Date of 1963 Amendment Pub. L. 88133, title III,  305 Oct. 5, 1963 77 Stat. 223 June 30, 1964 Effective Date of 1959 Amendment Pub. L. 8628 May 19, 1959 73 Stat. 33 The amendment made by this section [amending this section] shall take effect on the date of enactment of this Act [ May 19, 1959 Executive Documents  Transfer of Functions Fiscal Service substituted for Division of Disbursements in two places in subsec. (b) on authority of section 1(a)(1) of Reorg. Plan No. III of 1940, eff. June 30, 1940 54 Stat. 1231 section 306 of Title 31  361. Railroad unemployment insurance administration fund (a) Maintenance of account; amounts constituting fund The Secretary of the Treasury shall maintain in the unemployment trust fund established pursuant to section 904 of the Social Security Act [ 42 U.S.C. 1104 section 358 of this title (b) Authorization of appropriations; advance of sums; repayment In addition to the other moneys herein provided for expenses necessary or incidental to administering this chapter, there is appropriated to the fund such amount as the Secretary of the Treasury and the Board shall jointly estimate to have been collected or to be collectible with respect to the calendar years 1936, 1937, 1938, and 1939, from employers subject to this chapter, under title IX of the Social Security Act, less such amount as the Secretary of the Treasury and the Board shall jointly estimate will be appropriated or has been appropriated to States or Territories pursuant to the Act of Congress approved August 24, 1937 Until the amount appropriated by this subsection is credited to the fund, the Secretary of the Treasury is directed to advance to the credit of the fund such sums, but not more than $2,000,000, as the Board requests for the purpose of financing the costs of administering this chapter. Such advance shall be repaid from the fund at such time after the amount appropriated by this subsection is credited to the fund as the Board by agreement with the Secretary of the Treasury may determine, but not later than January 1, 1940 (c) Availability for administrative expenses Notwithstanding any other provision of law, all moneys at any time credited to the fund are permanently appropriated to the Board to be continuously available to the Board without further appropriation for any expenses necessary or incidental to administering this chapter, including personal services in the District of Columbia and elsewhere; travel expenses, including expenses of attendance at meetings when authorized by the Board; actual transportation expenses and not to exceed $10 per diem to cover subsistence and other expenses while in attendance at and en route to and from the place to which he is invited, to any person other than an employee of the Federal Government who may, from time to time, be invited to the city of Washington or elsewhere for conference or advisory purposes in furthering the work of the Board; when found by the Board to be in the interest of the Government, not exceeding 3 per centum, in any fiscal year, of the amounts credited during such year to the fund, for engaging persons or organizations, by contract or otherwise, for any special technical or professional services, determined necessary by the Board, including but not restricted to accounting, actuarial, statistical, and reporting services, without regard to section 6101 of title 41 l Provided section 6101 of title 41 45 U.S.C. 231 (d) Transfer of excess to insurance account So much of the balance in the fund as of September 30 of each year as is in excess of $6,000,000 shall as of such date be transferred from the fund and credited to the account. ( June 25, 1938, ch. 680,  11 52 Stat. 1105 June 20, 1939, ch. 227 53 Stat. 848 Oct. 10, 1940, ch. 842,  22 54 Stat. 1099 June 23, 1948, ch. 608,  8 62 Stat. 578 Pub. L. 85927 Sept. 6, 1958 72 Stat. 1783 Pub. L. 89700, title II,  205 Oct. 30, 1966 80 Stat. 1087 Pub. L. 93445, title IV,  404 Oct. 16, 1974 88 Stat. 1359 Pub. L. 9492, title I,  1(j) Aug. 9, 1975 89 Stat. 464 Pub. L. 94273,  2(22) Apr. 21, 1976 90 Stat. 376 Jan. 1, 1979 92 Stat. 3783 Pub. L. 100647, title VII,  7103(b)(2) Nov. 10, 1988 102 Stat. 3770  Editorial Notes  References in Text This chapter, referred to in subsecs. (a), (b), and (c), was in the original this Act, meaning act June 25, 1938, ch. 680 52 Stat. 1094 section 1107 of Title 42 section 367 of this title The Social Security Act, referred to in subsec. (b), is act Aug. 14, 1935, ch. 531 49 Stat. 620 section 1104 of Title 42 act Feb. 10, 1939, ch. 2 53 Stat. 1 section 1101 of Title 42 section 1305 of Title 42 Act of Congress approved August 24, 1937 act Aug. 24, 1937, ch. 755 50 Stat. 754 Section 192 of the Revised Statutes, referred to in subsec. (c), which related to expenditures for newspapers and which was classified to section 102 of former Title 5, was repealed by act Aug. 2, 1946, ch. 744,  17(a) 60 Stat. 811 The Railroad Retirement Act of 1974, referred to in subsec. (c), is act Aug. 29, 1935, ch. 812 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1305 section 231 of this title section 231t of this title Codification In subsec. (c),  section 6101 of title 41 Pub. L. 111350,  6(c) Jan. 4, 2011 124 Stat. 3854 Amendments 1988Subsec. (a). Pub. L. 100647 1976Subsec. (d). Pub. L. 94273 1975Subsec. (a)(i). Pub. L. 9492 1974Subsec. (c). Pub. L. 93445 1966Subsec. (a). Pub. L. 89700 1958Subsec. (a). Pub. L. 85927 section 1104 of title 42 1948Subsec. (a)(i). Act June 23, 1948 1940Subsec. (d). Act Oct. 10, 1940 1939Subsec. (b). Act June 20, 1939 Subsec. (c). Act June 20, 1939 Statutory Notes and Related Subsidiaries Effective Date of 1988 Amendment Amendment by Pub. L. 100647 Sept. 30, 1988 section 7103(c) of Pub. L. 100647 section 358 of this title Effective Date of 1975 Amendment Amendment by Pub. L. 9492 Dec. 31, 1975 section 2 of Pub. L. 9492 section 351 of this title Effective Date of 1974 Amendment Amendment by Pub. L. 93445 Jan. 1, 1975 section 603 of Pub. L. 93445 section 402 of Title 42 Effective Date of 1958 Amendment Amendment by Pub. L. 85927 Sept. 6, 1958 section 207(c) of Pub. L. 85927 section 351 of this title Effective Date of 1940 Amendment For effective date of amendment by act Oct. 10, 1940 Oct. 10, 1940 section 351 of this title Executive Documents  Transfer of Functions Director of the Office of Personnel Management substituted for Civil Service Commission in subsec. (c), pursuant to Reorg. Plan No. 2 of 1978,  102, 43 F.R. 36037, 92 Stat. 3783 section 1101 of Title 5 Jan. 1, 1979 Dec. 28, 1978 section 1101 of Title 5  362. Duties and powers of Board (a) Witnesses; subpenas, service, fees, etc. For the purpose of any investigation or other proceeding relative to the determination of any right to benefits, or relative to any other matter within its jurisdiction under this chapter, the Board shall have the power to issue subpenas requiring the attendance and testimony of witnesses and the production of any evidence, documentary or otherwise, that relates to any matter under investigation or in question, before the Board or any member, employee, or representative thereof. Any member of the Board or any of its employees or representatives designated by it may administer oaths and affirmations, examine witnesses, and receive evidence. Such attendance of witnesses and production of evidence may be required from any place in the United States or any Territory or possession thereof at any designated place of hearing. All subpenas may be served and returned by anyone authorized by the Board in the same manner as is now provided by law for the service and return by United States marshals of subpenas in suits in equity. Such service may also be made by registered mail or by certified mail and in such case the return post-office receipt shall be proof of service. Witnesses summoned in accordance with this subsection shall be paid the same fees and mileage as are paid witnesses in the district courts of the United States. (b) Enforcement of subpenas by courts; contempts; service of orders, writs, or processes In case of contumacy by, or refusal to obey a subpena lawfully issued to, any person, the Board may invoke the aid of the district court of the United States or the United States courts of any Territory or possession, where such person is found or resides or is otherwise subject to service of process, or the United States District Court for the District of Columbia if the investigation or proceeding is being carried on in the District of Columbia, or the United States District Court for the Northern District of Illinois, if the investigation or proceeding is being carried on in the Northern District of Illinois, in requiring the attendance and testimony of witnesses and the production of evidence. Any such court shall issue an order requiring such person to appear before the Board or its specified employee or representative at the place specified in the subpena of the Board, whether within or without the judicial district of the court, there to produce evidence, if so ordered, or there to give testimony concerning the matter under investigation or in question; and any failure to obey such order of the court may be punished by said court as a contempt thereof. All orders, writs, and processes in any such proceeding may be served in the judicial district of the district court issuing such order, writ, or process, except that the orders, writs, and processes of the United States District Court for the District of Columbia or of the United States District Court for the Northern District of Illinois in such proceedings may run and be served anywhere in the United States. (c) Repealed. Pub. L. 91452, title II,  239 Oct. 15, 1970 84 Stat. 930 (d) Information as confidential Information obtained by the Board in connection with the administration of this chapter shall not be revealed or open to inspection nor be published in any manner revealing an employees identity: Provided, however section 355 of this title section 361(a) of this title (e) Certification of claims; authorization of employee to make payments; bond The Board shall provide for the certification of claims for benefits and refunds and may arrange total or partial settlements at such times and in such manner as may appear to the Board to be expedient. The Board shall designate and authorize one or more of its employees to sign vouchers for the payment of benefits and refunds under this chapter. Each such employee shall give bond, in form and amount fixed by the Board, conditioned upon the faithful performance of his duties. The premiums due on such bonds shall be paid from the fund and deemed to be a part of the expenses of administering this chapter. (f) Cooperation with other agencies administering unemployment or sickness compensation laws; agreements The Board may cooperate with or enter into agreement with the appropriate agencies charged with the administration of State, Territorial, Federal, or foreign unemployment-compensation or sickness laws or employment offices, with respect to investigations, the exchange of information and services, the establishment, maintenance, and use of free employment service facilities, and such other matters as the Board deems expedient in connection with the administration of this chapter, and may compensate any such agency for services or facilities supplied to the Board in connection with the administration of this chapter. The Board may enter also into agreements with any such agency, pursuant to which any unemployment or sickness benefits provided for by this chapter or any other unemployment-compensation or sickness law, may be paid through a single agency to persons who have, during the period on the basis of which eligibility for and duration of benefits is determined under the law administered by such agency or under this chapter, or both, performed services covered by one or more of such laws, or performed services which constitute employment as defined in this chapter: Provided (g) Benefits also subject to a State law; mutual reimbursement In determining whether an employee has qualified for benefits in accordance with section 353 of this title If a State, in determining whether an employee is eligible for unemployment or sickness benefits under an unemployment or sickness compensation law of such State, and in determining the amount of unemployment or sickness benefits to be paid to such employee pursuant to such unemployment or sickness compensation law, considers as services for hire (and remuneration therefor) included within the provisions of such unemployment or sickness compensation law, employment (and compensation therefor), the Board is authorized to reimburse such State such portion of such unemployment or sickness benefits as the Board deems equitable; such reimbursements shall be paid from the account, and are included within the meaning of the word benefits as used in this chapter. (h) Assistance from employers and labor organizations; compensation The Board may enter into agreements or arrangements with employers, organizations of employers, and railway-labor organizations which are duly organized in accordance with the provisions of the Railway Labor Act [ 45 U.S.C. 151 section 209 of title 18 (i) Free employment offices; registration of unemployed; statements of sickness; reemployment The Board may establish, maintain, and operate free employment offices, and may designate as free employment offices facilities maintained by (i) a railway labor organization which is duly authorized and designated to represent employees in accordance with the Railway Labor Act [ 45 U.S.C. 151 The Board shall prescribe a procedure for registration of unemployed employees at employment offices. Such procedure for registration shall be prescribed with a view to such registration affording substantial evidence of the days of unemployment of the employees who register. The Board may, when such registration is made personally by an employee, accept such registration as initial proof of unemployment sufficient to certify for payment a claim for benefits. The Board shall provide a form or forms for statements of sickness and a procedure for the execution and filing thereof. Such forms and procedure shall be designated with a view to having such statements provide substantial evidence of the days of sickness of the employee. Such statements may be executed by any doctor (authorized to practice in the State or foreign jurisdiction in which he practices his profession) or any officer or supervisory employee of a hospital, clinic, group health association, or other similar organization, who is qualified under such regulations as the Board may prescribe to execute such statements. The Board shall issue regulations for the qualification of such persons to execute such statements. When so executed by any such person, or, in the discretion of the Board, by others designated by the Board individually or by groups, they may be accepted as initial proof of days of sickness sufficient to certify for payment a claim for benefits. The regulations of the Board concerning registration at employment offices by unemployed persons may provide for group registration and reporting, through employers, and need not be uniform with respect to different classes of employees. The operation of any employment facility operated by the Board shall be directed primarily toward the reemployment of employees who have theretofore been substantially employed by employers. (j) Advisory councils; members remuneration The Board may appoint national or local advisory councils composed of equal numbers of representatives of employers, representatives of employees, and persons representing the general public, for the purpose of discussing problems in connection with the administration of this chapter and aiding the Board in formulating policies. The members of such councils shall serve without remuneration, but shall be reimbursed for any necessary traveling and subsistence expenses or on a per diem basis in lieu of subsistence expenses. (k) Reduction of unemployment; training and reemployment of unemployed employees, etc. The Board, with the advice and aid of any advisory council appointed by it, shall take appropriate steps to reduce and prevent unemployment and loss of earnings; to encourage and assist in the adoption of practical methods of vocational training, retraining, and vocational guidance; to promote the reemployment of unemployed employees; and to these ends to carry on and publish the results of investigations and research studies. (l) Necessary and incidental powers; employees of Board, employment, remuneration, civil-service laws, registration of unemployed, and detail In addition to the powers and duties expressly provided, the Board shall have and exercise all the powers and duties necessary to administer or incidental to administering this chapter, and in connection therewith shall have such of the powers, duties, and remedies provided in subdivisions (5), (6), and (9) of section 7(b) of the Railroad Retirement Act of 1974 [ 45 U.S.C. 231f(b) 45 U.S.C. 231 June 24, 1937 50 Stat. 307 June 30, 1939 June 30, 1940 The Board may employ such persons and provide for their remuneration and expenses, as may be necessary for the proper administration of this chapter. Such persons shall be employed and their remuneration prescribed in accordance with the civil-service laws and chapter 51 and subchapter III of chapter 53 of title 5: Provided Provided And provided further And provided further Provided (m) Delegation of powers The Board is authorized to delegate to any member, officer, or employee of the Board any of the powers conferred upon the Board by this chapter, excluding only the power to prescribe rules and regulations. (n) Sickness benefits; examinations; information and reports; contracts and expenses for examinations Any employee claiming, entitled to, or receiving sickness benefits under this chapter may be required to take such examination, physical, medical, mental, or otherwise, in such manner and at such times and by such qualified individuals, including medical officers or employees of the United States or a State, as the Board may prescribe. The place or places of examination shall be reasonably convenient for the employee. No sickness benefits shall be payable under this chapter with respect to any period during which the employee unreasonably refuses to take or willfully obstructs an examination as prescribed by the Board. Any doctor who renders any attendance, treatment, attention, or care, or performs any examination with respect to a sickness of an employee, upon which a claim or right to benefits under this chapter is based, shall furnish the Board, in such manner and form and at such times as the Board by regulations may prescribe, information and reports relative thereto and to the condition of the employee. An application for sickness benefits under this chapter shall contain a waiver of any doctor-patient privilege that the employee may have with respect to any sickness period upon which such application is based: Provided The Board may enter into agreements or arrangements with doctors, hospitals, clinics, or other persons for securing the examination, physical, medical, mental, or otherwise, of employees claiming, entitled to, or receiving sickness benefits under this chapter and the performance of services or the use of facilities in connection with the execution of statements of sickness. The Board may compensate any such doctors, hospitals, clinics, or other persons upon such reasonable basis as the Board shall prescribe. Such doctors, hospitals, clinics, or other persons and persons employed by any of them shall not be subject to section 209 of title 18 (o) Liability of third party for sickness; reimbursement of Board Benefits payable to an employee with respect to days of sickness shall be payable regardless of the liability of any person to pay damages for such infirmity. The Board shall be entitled to reimbursement from any sum or damages paid or payable to such employee or other person through suit, compromise, settlement, judgment, or otherwise on account of any liability (other than a liability under a health, sickness, accident, or similar insurance policy) based upon such infirmity, to the extent that it will have paid or will pay benefits for days of sickness resulting from such infirmity. Upon notice to the person against whom such right or claim exists or is asserted, the Board shall have a lien upon such right or claim, any judgment obtained thereunder, and any sum or damages paid under such right or claim, to the extent of the amount to which the Board is entitled by way of reimbursement. (p) Disqualification to execute statements of sickness or receive fees The Board may, after hearing, disqualify any person from executing statements of sickness who, the Board finds, (i) will have solicited, or will have employed another to solicit, for himself or for another the execution of any such statement, or (ii) will have made false or misleading statements to the Board, to any employer, or to any employee, in connection with the awarding of any benefits under this chapter, or (iii) will have failed to submit medical reports and records required by the Board under this chapter, or will have failed to submit any other reports, records, or information required by the Board in connection with the administration of this chapter or any other Act heretofore or hereafter administered by the Board, or (iv) will have engaged in any malpractice or other professional misconduct. No fees or charges of any kind shall accrue to any such person from the Board after his disqualification. (q) Investigations and research with respect to accidents and disabilities The Board shall engage in and conduct research projects, investigations, and studies with respect to the cause, care, and prevention of, and benefits for, accidents and disabilities and other subjects deemed by the Board to be related thereto, and shall recommend legislation deemed advisable in the light of such research projects, investigations, and studies. (r) Duty of Board to make certain computations (1) Compensation base On or before December 1, 1988 (A) in accordance with section 351(i) of this title (B) the amounts described in section 351(k) of this title section 352(c) of this title section 353 of this title (2) Maximum daily benefit rate On or before June 1, 1989 section 352(a)(3) of this title (3) Notice in Federal Register and to employers Not later than 10 days after each computation made under this subsection, the Board shall publish notice in the Federal Register and shall notify each employer and employee representative of the amount so computed. ( June 25, 1938, ch. 680,  12 52 Stat. 1107 June 20, 1939, ch. 227,  16 53 Stat. 848 Oct. 10, 1940, ch. 842 54 Stat. 1099 July 31, 1946, ch. 709 60 Stat. 739 June 25, 1948, ch. 646 62 Stat. 878 May 24, 1949, ch. 139,  127 63 Stat. 107 Oct. 28, 1949, ch. 782 63 Stat. 956 Aug. 12, 1955, ch. 869,  6 69 Stat. 716 Pub. L. 85927 Sept. 6, 1958 72 Stat. 1783 Pub. L. 86507,  1(37) June 11, 1960 74 Stat. 202 Pub. L. 89700, title II,  206 Oct. 30, 1966 80 Stat. 1087 Pub. L. 90257, title II,  206 Feb. 15, 1968 82 Stat. 25 Pub. L. 91452, title II,  239 Oct. 15, 1970 84 Stat. 930 Pub. L. 93445, title IV,  405 Oct. 16, 1974 88 Stat. 1359 Jan. 1, 1979 92 Stat. 3783 Pub. L. 100647, title VII Nov. 10, 1988 102 Stat. 3758  Editorial Notes  References in Text This chapter, referred to in text, was in the original this Act, meaning act June 25, 1938, ch. 680 52 Stat. 1094 section 1107 of Title 42 section 367 of this title The Railway Labor Act, referred to in subsecs. (h) and (i), is act May 20, 1926, ch. 347 44 Stat. 577 section 151 of this title The Railroad Retirement Act of 1974, referred to in subsec. ( l act Aug. 29, 1935, ch. 812 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1305 section 231 of this title section 231t of this title Section 205 of the Act of Congress approved June 24, 1937 50 Stat. 307 l act June 24, 1937, ch. 382 50 Stat. 307 Codification In subsecs. (h) and (n),  section 209 of title 18 March 3, 1917 39 Stat. 1106 5 U.S.C. 66 act June 25, 1948, ch. 645 62 Stat. 683 section 1914 of Title 18 section 2 of Pub. L. 87849 Oct. 23, 1962 76 Stat. 1126 section 1914 of Title 18 section 203 of Title 18 In subsec. ( l Pub. L. 89554,  7(b) Sept. 6, 1966 80 Stat. 631 In penultimate sentence of subsec. ( l June 22, 1906 34 Stat. 449 section 3342 of Title 5 Pub. L. 89554 Sept. 6, 1966 80 Stat. 425 Section 3342 of Title 5 Pub. L. 89762,  1(a) Nov. 5, 1966 80 Stat. 1312 Amendments 1988Subsec. (d). Pub. L. 100647,  7104(d) Subsec. (n). Pub. L. 100647,  7104(e) Subsec. (r). Pub. L. 100647,  7101(e) 1974Subsec. ( l Pub. L. 93445 1970Subsec. (c). Pub. L. 91452 1968Subsec. (f). Pub. L. 90257,  206(a) Subsec. (g). Pub. L. 90257,  206(b) Subsec. (i). Pub. L. 90257,  206(c) Subsec. (n). Pub. L. 90257,  206(d) 1966Subsec. (d). Pub. L. 89700 Subsec. (g). Pub. L. 89700 section 353 of this title section 353(a) of this title 1960Subsec. (a). Pub. L. 86507 1958Subsec. ( l Pub. L. 85927 Oct. 28, 1949 1955Subsec. ( l Aug. 12, 1955 1949Subsec. ( l Oct. 28, 1949 1946Subsec. (b). Act July 31, 1946 Subsec. (f). Act July 31, 1946 Subsec. (g). Act July 31, 1946 June 30, 1939 Subsec. (i). Act July 31, 1946 Subsecs. (n) to (q). Act July 31, 1946 1940Subsec. ( l Oct. 10, 1940 June 30, 1939 June 30, 1940 Act Oct. 10, 1940 1939Subsec. (g). Act June 20, 1939 June 30, 1939 June 30, 1939 Statutory Notes and Related Subsidiaries  Change of Name Subsec. (b) of this section was amended by act June 25, 1948 Sept. 1, 1948 May 24, 1949 United States District Court for the Northern District of Illinois substituted for District Court of the United States for the Northern District of Illinois in view of act June 25, 1948 Effective Date of 1988 Amendment Amendment by section 7104(d), (e) of Pub. L. 100647 Jan. 1, 1990 section 7104(f) of Pub. L. 100647 section 355 of this title Effective Date of 1974 Amendment Amendment by Pub. L. 93445 Jan. 1, 1975 section 603 of Pub. L. 93445 section 402 of Title 42 Effective Date of 1970 Amendment Amendment by Pub. L. 91452 Oct. 15, 1970 Oct. 15, 1970 section 260 of Pub. L. 91452 section 6001 of Title 18 Effective Date of 1968 Amendment Amendment by Pub. L. 90257 July 1, 1968 section 208 of Pub. L. 90257 section 352 of this title Effective Date of 1958 Amendment Amendment by Pub. L. 85927 Sept. 6, 1958 section 207(c) of Pub. L. 85927 section 351 of this title Effective Date of 1946 Amendment Amendment by act July 31, 1946 July 31, 1946 July 31, 1946 Effective Date of 1940 Amendment For effective date of amendment by act Oct. 10, 1940 Oct. 10, 1940 section 351 of this title Repeals Act Oct. 28, 1949, ch. 782 Pub. L. 89554 Sept. 6, 1966 80 Stat. 632 Termination of Advisory Councils Advisory councils in existence on Jan. 5, 1973 Jan. 5, 1973 Jan. 5, 1973 Railroad Unemployment Compensation Committee Pub. L. 9876, title V,  504 Aug. 12, 1983 97 Stat. 441  (a) Representatives of railroad labor and railroad management shall jointly establish (and jointly appoint the members of) a committee to be known as the Railroad Unemployment Compensation Committee (hereinafter in this section referred to as the Committee). (b) The Committee shall consist of five members (1) two of whom shall be representatives of railroad labor, (2) two of whom shall be representatives of railroad management, and (3) one of whom shall be an individual who shall not be in the employment of or pecuniarily or otherwise interested in any employer (as defined in section 1 of the Railroad Retirement Act of 1974 [ 45 U.S.C. 231 (c) The Committee shall review all aspects of the unemployment and sickness insurance systems provided by the Railroad Unemployment Insurance Act [this chapter] including (but not limited to) a review of (1) benefit levels, (2) experience rating, (3) debt repayment and interest on debt, (4) waiting period for unemployment benefits and qualifying requirements, and (5) alternatives to the railroad unemployment insurance system such as covering railroad employees under the Federal-State unemployment compensation system. (d) Not later than April 1, 1984 (1) with respect to the review conducted under subsection (c), and (2) with respect to the repayment of funds which the railroad unemployment insurance system has borrowed from the Railroad Retirement Account. Any recommendation submitted under paragraph (2) shall contain adjustments in contributions and benefits which will enable the railroad unemployment compensation system to repay all loans from the Railroad Retirement Account before December 31, 2000 (e) The Railroad Retirement Board (and any other department, agency, or instrumentality of the Federal Government) is authorized to cooperate with, and assist, the Committee (at its request) in carrying out its duties by furnishing services, information, data, or other material which the Committee determines will be helpful in carrying out its duties. Executive Documents  Transfer of Functions Director of the Office of Personnel Management substituted for Civil Service Commission in subsec. ( l 92 Stat. 3783 section 1101 of Title 5 Jan. 1, 1979 Dec. 28, 1978 section 1101 of Title 5  Delegation of Functions Functions of President under subsec. ( l Feb. 9, 2005 section 231f of this title  363. Exclusiveness of provisions; transfers from State unemployment compensation accounts to railroad unemployment insurance account (a) Omitted (b) Effect on State unemployment compensation laws By enactment of this chapter the Congress makes exclusive provision for the payment of unemployment benefits for unemployment occurring after June 30, 1939 June 30, 1947 June 30, 1939 June 30, 1947 June 30, 1939 June 30, 1947 section 362(g) of this title June 30, 1939 section 1106 of title 42 Provided July 1, 1939 July 1, 1939 (c) Determination of preliminary amount for States The Social Security Board is directed to determine for each State, after agreement with the Railroad Retirement Board, and after consultation with such State; the total (hereinafter referred to as the preliminary amount) of (i) the amount remaining as the balances of reserve accounts of employers as of June 30, 1939 June 30, 1939 July 1, 1939 July 1, 1939 December 31, 1939 (d) Withholding amounts from certification to States; transfers to railroad unemployment compensation account The Social Security Board shall withhold from certification to the Secretary of the Treasury for payment the amounts determined by it pursuant to section 502(a) of title 42 July 1, 1939 Provided, however July 1, 1939 The Social Security Board shall withhold from certification to the Secretary of the Treasury for payment the amounts determined by it pursuant to section 502(a) of title 42 January 1, 1940 Provided, however January 1, 1940 The withholdings from certification directed in each of the foregoing paragraphs of this subsection shall begin with respect to each State when the Social Security Board finds that such State is unable to avail itself of the condition set forth in the proviso contained in such paragraph: Provided, however section 502 of title 42 July 1, 1944 July 1, 1942 July 1, 1939 Provided, however (e) Transfers and withdrawals, effect upon social security provisions The transfers described in the provisos contained in the several paragraphs of subsection (d) of this section shall not be deemed to constitute a breach of the conditions set forth in sections 503(a)(5) and 1103(a)(4) of title 42; nor shall the withdrawal by a State from its account in the unemployment trust fund of amounts, but not to exceed the total amount the Social Security Board shall have withheld from certification with respect to such State pursuant to subsection (d) of this section, be deemed to constitute a breach of the conditions set forth in sections 503(a)(5) and 1103(a)(4) of title 42, provided the moneys so withdrawn are expended solely for expenses which the Social Security Board determines to be necessary for the proper administration of such States unemployment compensation law. (f) Payments to railroad unemployment insurance account; transfers from unemployment trust fund of States The Social Security Board is authorized and directed to certify to the Secretary of the Treasury for payment, and the Secretary shall pay, into the railroad unemployment insurance account, such amounts as the Social Security Board withholds from certification pursuant to subsection (d) of this section and the appropriations authorized in section 501 of title 42 ( June 25, 1938, ch. 680,  13(b) 52 Stat. 1110 June 20, 1939, ch. 227,  17 53 Stat. 848 July 2, 1940, ch. 530 54 Stat. 741 June 30, 1942, ch. 463 56 Stat. 465 July 31, 1946, ch. 709,  324 60 Stat. 741 Pub. L. 90257, title II,  207 Feb. 15, 1968 82 Stat. 25  Editorial Notes  References in Text This chapter, referred to in subsecs. (b) and (d), was in the original this Act, meaning act June 25, 1938, ch. 680 52 Stat. 1094 section 1107 of Title 42 section 367 of this title Sections 1106 and 1103(a)(4) of title 42, referred to in subsecs. (b) and (e), respectively, which were in the original references to sections 906 and 903(a)(4), respectively, of the Social Security Act, as in existence prior to February 10, 1939 act Feb. 10, 1939, ch. 2 53 Stat. 1 section 1101 of Title 42 Codification Section 13(a) of act June 25, 1938 section 1107 of Title 42 June 25, 1938 section 503 of Title 42 Amendments 1968Subsec. (b). Pub. L. 90257 1946Subsec. (b). Act July 31, 1946 June 30, 1947 1942Subsec. (d). Act June 30, 1942 1940Subsec. (d). Act July 2, 1940 1939Subsec. (d). Act June 20, 1939 Statutory Notes and Related Subsidiaries Effective Date of 1968 Amendment Amendment by Pub. L. 90257 July 1, 1968 section 208 of Pub. L. 90257 section 352 of this title Effective Date of 1946 Amendment Amendment by act July 31, 1946 July 31, 1946 July 31, 1946 Effect of Social Security Act Amendments Act Aug. 10, 1939, ch. 666, title IX,  901 53 Stat. 1399 Except as provided in section 906, no provision of this act shall be construed as amending or altering the effect of section 13(b), (c), (d), (e), or (f) of the Railroad Unemployment Insurance Act [this section]. Act Aug. 10, 1939, ch. 666, title IX,  906 53 Stat. 1401 If the Social Security Board finds with respect to any State that the first regular session of such States legislature which began after June 25, 1938 Aug. 10, 1939 July 1, 1939 January 1, 1940 section 502 of Title 42 section 502 of Title 42 section 503 of Title 42 Kentucky Act Oct. 26, 1945, ch. 434 59 Stat. 550 July 16, 1946 60 Stat. 1095 Executive Documents  Transfer of Functions Functions of all other officers of Department of Labor and functions of all agencies and employees of Department, with exception of functions vested by Administrative Procedure Act (sections 551 et seq. and 701 et seq. of Title 5, Government Organization and Employees) in hearing examiners employed by Department, transferred to Secretary of Labor, with power vested in him to authorize their performance or performance of any of his functions by any officers, agencies, and employees of Department of Labor, by Reorg. Plan No. 6 of 1950,  1, 2, 15 F.R. 3174, 64 Stat. 1263 Functions of Federal Security Administrator with respect to unemployment compensation transferred to Secretary of Labor by Reorg. Plan No. 2 of 1949,  1, eff. Aug. 19, 1949 63 Stat. 1065 Social Security Board abolished and its functions and those of its chairman transferred to Federal Security Administrator to be performed by him or under his direction and control by such officers and employees of Federal Security Agency as designated, by Reorg. Plan No. 2 of 1946, eff. July 16, 1946 60 Stat. 1095  363a. Refunds of State unemployment contributions by employees; amount; application period; definitions (a) Notwithstanding any other provision of law, in any case where an employee amount (as hereinafter defined) was paid from a State unemployment fund to the Unemployment Trust Fund, an aggregate amount equal thereto shall be paid from the Unemployment Trust Fund, as refunds, to employees who paid into the State fund the contributions upon which such payment into the Unemployment Trust Fund was based, except that in case any such employee is deceased, payment shall be made to his estate; and the payment so made in the case of any employee shall be in proportion to the contributions paid by such employee into the State fund: Provided August 2, 1946 (b) As used in this section (1) The term employee amount means any amount paid from a State unemployment fund to the Unemployment Trust Fund which would not have been required to be paid, under the provisions of section 363(c) of this title (2) The term Unemployment Trust Fund means the fund established by section 1104 of title 42 (3) The term employees has the same meaning as in the Railroad Unemployment Insurance Act [ 45 U.S.C. 351 ( Aug. 2, 1946, ch. 743 60 Stat. 806 Aug. 6, 1947, ch. 509 61 Stat. 793  Editorial Notes  References in Text The Railroad Unemployment Insurance Act, referred to in subsec. (b)(3), is act June 25, 1938, ch. 680 52 Stat. 1094 section 367 of this title Codification Section was not enacted as a part of the Railroad Unemployment Insurance Act which comprises this chapter. Amendments 1947Subsec. (a). Act Aug. 6, 1947 Aug. 2, 1946  364. District of Columbia account, transfer of funds to railroad unemployment insurance account  The Secretary of the Treasury is authorized and directed to transfer from the account of the District of Columbia in the unemployment trust fund to the railroad unemployment insurance account in the unemployment trust fund, an amount equal to the preliminary amount and an amount equal to the liquidating amount, whenever such amounts, respectively, have been determined, with respect to the District of Columbia, pursuant to section 363 of this title ( June 25, 1938, ch. 680,  14(b) 52 Stat. 1113  365. Omitted  Editorial Notes Codification Section, acts June 25, 1938, ch. 680,  15 52 Stat. 1113 June 20, 1939, ch. 227,  19 53 Stat. 844 July 1, 1939  366. Separability  If any provision of this chapter or the application there of to any person or circumstance is held invalid, the application of such provision to other persons or circumstances, and the remainder of this chapter shall not be affected thereby. ( June 25, 1938, ch. 680,  16 52 Stat. 1113  Editorial Notes  References in Text This chapter, referred to in text, was in the original this Act, meaning act June 25, 1938, ch. 680 52 Stat. 1094 section 1107 of Title 42 section 367 of this title  366a. Effect of Internal Revenue Code  The provisions of the Railroad Unemployment Insurance Act, as herein amended, shall be in full force and effect notwithstanding the enactment of the Internal Revenue Code. ( June 20, 1939, ch. 227,  22 53 Stat. 848  Editorial Notes  References in Text The Railroad Unemployment Insurance Act, referred to in text, is act June 25, 1938, ch. 680 52 Stat. 1094 section 367 of this title The Internal Revenue Code, referred to in text, probably means the Internal Revenue Code of 1939, which was generally repealed by section 7851 of the Internal Revenue Code of 1954, Title 26. The Internal Revenue Code of 1954 was redesignated the Internal Revenue Code of 1986 by Pub. L. 99514,  2 Oct. 22, 1986 100 Stat. 2095 section 1 of Title 26 section 7852(b) of Title 26 Codification Section was not enacted as a part of the Railroad Unemployment Insurance Act which comprises this chapter.  367. Short title  This chapter may be cited as the Railroad Unemployment Insurance Act. ( June 25, 1938, ch. 680,  17 52 Stat. 1113  Editorial Notes  References in Text This chapter, referred to in text, was in the original this Act, meaning act June 25, 1938, ch. 680 52 Stat. 1094 section 1107 of Title 42 Codification Another section 17 of Act June 25, 1938 section 368 of this title Pub. L. 104251,  5(c) Oct. 9, 1996 110 Stat. 3165 Statutory Notes and Related Subsidiaries Short Title of 2020 Amendment Pub. L. 116260, div. N, title II,  231 Dec. 27, 2020 134 Stat. 1957 This subchapter [subchapter III ( 231235) of title II of div. N of Pub. L. 116260 section 352 of this title section 906 of Title 2 section 9030 of Title 15 section 352 of this title section 906 of Title 2 section 9030 of Title 15 Short Title of 1996 Amendment Pub. L. 104251,  1 Oct. 9, 1996 110 Stat. 3161 This Act [amending section 352 of this title section 368 of this title section 352 of this title Short Title of 1988 Amendment Pub. L. 100647, title VII,  7001 Nov. 10, 1988 102 Stat. 3757 This title [enacting section 369 of this title section 3323 of Title 26 section 3321 of Title 26 section 231n of this title  368. Repealed. Pub. L. 104251,  5(c) Oct. 9, 1996 110 Stat. 3165   Section, act June 25, 1938, ch. 680,  17 Mar. 24, 1983 Pub. L. 988, title I,  102(a) 97 Stat. 32 Nov. 30, 1983 Pub. L. 98181, title II,  2005(a) 97 Stat. 1298  Another section 17 of act June 25, 1938 section 367 of this title  369. Annual report  On or before July 1 of 1989, and of each calendar year thereafter, the Railroad Retirement Board shall submit to the Congress a report on the financial status of the railroad unemployment insurance system under various economic and employment assumptions. Such report shall include any recommendation for financing changes which might be advisable, including any adjustment the Railroad Retirement Board recommends regarding the rates of employer contributions. ( Pub. L. 100647, title VII,  7105 Nov. 10, 1988 102 Stat. 3772  Editorial Notes Codification Section was enacted as part of the Railroad Unemployment Insurance and Retirement Improvement Act of 1988 and also as part of the Technical and Miscellaneous Revenue Act of 1988, and not as part of the Railroad Unemployment Insurance Act which comprises this chapter. CHAPTER 12 TEMPORARY RAILROAD UNEMPLOYMENT INSURANCE PROGRAM    Sec.  401. Payment of compensation; eligibility; duration; maximum aggregate amount payable; duplication of benefits; application of railroad unemployment insurance provisions.  402. Exchange of information between Secretary of Labor and Railroad Retirement Board.  403. Appropriation to railroad unemployment insurance account; transfer and repayment of funds; interest.  404. Temporary increase in employers contribution rate.  401. Payment of compensation; eligibility; duration; maximum aggregate amount payable; duplication of benefits; application of railroad unemployment insurance provisions  An employee as defined in the Railroad Unemployment Insurance Act [ 45 U.S.C. 351 June 30, 1960 April 1, 1962 March 24, 1961 April 1, 1962 Provided April 1, 1962 July 1, 1962 Provided further ( Pub. L. 877,  2 Mar. 24, 1961 75 Stat. 16  Editorial Notes  References in Text The Railroad Unemployment Insurance Act, referred to in text, is act June 25, 1938, ch. 680 52 Stat. 1094 section 367 of this title The Temporary Extended Unemployment Compensation Act of 1961, referred to in text, is Pub. L. 876 Mar. 24, 1961 75 Stat. 8 l l Statutory Notes and Related Subsidiaries Short Title Pub. L. 877,  1 Mar. 24, 1961 75 Stat. 16 That this Act [enacting this chapter] may be cited as the Temporary Extended Railroad Unemployment Insurance Benefits Act of 1961.  402. Exchange of information between Secretary of Labor and Railroad Retirement Board  The Secretary of Labor, upon request, shall furnish the Railroad Retirement Board information deemed necessary by such Board for the administration of section 401 of this title ( Pub. L. 877,  3 Mar. 24, 1961 75 Stat. 17  Editorial Notes  References in Text The Temporary Extended Unemployment Compensation Act of 1961, referred to in text, is Pub. L. 876 Mar. 24, 1961 75 Stat. 8 l l  403. Appropriation to railroad unemployment insurance account; transfer and repayment of funds; interest  There are authorized to be appropriated to the railroad unemployment insurance account, without fiscal year limitation, such amounts as may be necessary to carry out the provisions of this chapter. The amounts so appropriated shall be transferred from time to time to the railroad unemployment insurance account on the basis of estimates by the Secretary of the Treasury after consultation with the Railroad Retirement Board of the amounts required from time to time to carry out the provisions of this chapter. Amounts so transferred shall be repayable advances without interest. ( Pub. L. 877,  4 Mar. 24, 1961 75 Stat. 17 Pub. L. 88133, title III,  303(c) Oct. 5, 1963 77 Stat. 222  Editorial Notes Amendments 1963 Pub. L. 88133 section 303(b) of Pub. L. 88133 Statutory Notes and Related Subsidiaries Effective Date of 1963 Amendment Pub. L. 88133, title III,  303(c) Oct. 5, 1963 77 Stat. 222 Dec. 31, 1963 Repayment by Account of Advances From General Fund of Treasury From Contributions Collected on Compensation Paid After December 31, 1963 Pub. L. 88133, title III,  303(b) Oct. 5, 1963 77 Stat. 222 Effective with respect to contributions collected by the Railroad Retirement Board pursuant to section 8(f) of the Railroad Unemployment Insurance Act [ section 358(f) of this title December 31, 1963 section 360(b) of this title  404. Temporary increase in employers contribution rate  Notwithstanding the provisions of section 358(a)2 1 1 45 U.S.C. 351 December 31, 1961 January 1, 1964 ( Pub. L. 877,  5 Mar. 24, 1961 75 Stat. 17  Editorial Notes  References in Text Section 358(a) of this title Pub. L. 100647, title VII,  7102(a) Nov. 10, 1988 102 Stat. 3759 The Railroad Unemployment Insurance Act, referred to in text, is act June 25, 1938, ch. 680 52 Stat. 1094 section 367 of this title CHAPTER 13 RAILROAD SAFETY SUBCHAPTER I GENERAL PROVISIONS  421. Repealed. Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379   Section, Pub. L. 91458, title I,  101 Oct. 16, 1970 84 Stat. 971 section 20101 of Title 49 SUBCHAPTER II RULES, REGULATIONS, ORDERS, AND STANDARDS  431 to 447. Repealed. Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379   Section 431, Pub. L. 91458, title II,  202 Oct. 16, 1970 84 Stat. 971 Pub. L. 94348,  5 July 8, 1976 90 Stat. 819 Pub. L. 96423,  14 Oct. 10, 1980 94 Stat. 1817 Pub. L. 97468, title VII,  702(a) Jan. 14, 1983 96 Stat. 2579 Pub. L. 100342 June 22, 1988 102 Stat. 625 Pub. L. 102143, title V,  4 Oct. 28, 1991 105 Stat. 957 Pub. L. 102365 Sept. 3, 1992 106 Stat. 972 Pub. L. 102533,  14 Oct. 27, 1992 106 Stat. 3522  Section 432, Pub. L. 91458, title II,  203 Oct. 16, 1970 84 Stat. 972 Pub. L. 96423,  3 Oct. 10, 1980 94 Stat. 1811 section 20104 of Title 49  Section 433, Pub. L. 91458, title II,  204 Oct. 16, 1970 84 Stat. 972 section 20134 of Title 49  Section 434, Pub. L. 91458, title II,  205 Oct. 16, 1970 84 Stat. 972 section 20106 of Title 49  Section 435, Pub. L. 91458, title II,  206 Oct. 16, 1970 84 Stat. 972 Pub. L. 96423,  4 Oct. 10, 1980 94 Stat. 1812 Pub. L. 101615,  28(a) Nov. 16, 1990 104 Stat. 3276  Section 436, Pub. L. 91458, title II,  207 Oct. 16, 1970 84 Stat. 974 Pub. L. 95574,  8 Nov. 2, 1978 92 Stat. 2461 Pub. L. 96423,  5 Oct. 10, 1980 94 Stat. 1812 Pub. L. 101615,  28(e) Nov. 16, 1990 104 Stat. 3277 section 20113 of Title 49  Section 437, Pub. L. 91458, title II,  208 Oct. 16, 1970 84 Stat. 974 Pub. L. 93633, title II,  206 Jan. 3, 1975 88 Stat. 2166 Pub. L. 95574,  9 Nov. 2, 1978 92 Stat. 2462 Pub. L. 96423,  6 Oct. 10, 1980 94 Stat. 1813 Pub. L. 100342,  8 June 22, 1988 102 Stat. 628 section 54a of this title  Section 438, Pub. L. 91458, title II,  209 Oct. 16, 1970 84 Stat. 975 Pub. L. 93633, title II,  204(a) Jan. 3, 1975 88 Stat. 2165 Pub. L. 96423 Oct. 10, 1980 94 Stat. 1814 Pub. L. 97468, title VII,  706 Jan. 14, 1983 96 Stat. 2581 Pub. L. 100342,  3(a) June 22, 1988 102 Stat. 624 Pub. L. 102365 Sept. 3, 1992 106 Stat. 973 section 39 of this title  Section 439, Pub. L. 91458, title II,  210 Oct. 16, 1970 84 Stat. 975 Pub. L. 96423,  9 Oct. 10, 1980 94 Stat. 1814 Pub. L. 101615,  28(f) Nov. 16, 1990 104 Stat. 3277  Section 440, Pub. L. 91458, title II,  211 Oct. 16, 1970 84 Stat. 976 Pub. L. 93633, title II,  203 Jan. 3, 1975 88 Stat. 2164 Pub. L. 9456,  2 July 19, 1975 89 Stat. 263 Pub. L. 96470, title II,  209(a) Oct. 19, 1980 94 Stat. 2245 Pub. L. 100342,  12 June 22, 1988 102 Stat. 630 section 20116 of Title 49  Section 441, Pub. L. 91458, title II,  212 Pub. L. 96423,  10 Oct. 10, 1980 94 Stat. 1815 Pub. L. 100342,  5 June 22, 1988 102 Stat. 627 Pub. L. 102365,  5(b) Sept. 3, 1992 106 Stat. 975 section 20109 of Title 49  A prior section 441, Pub. L. 91458, title II,  212 Oct. 16, 1970 84 Stat. 977 Pub. L. 9390,  2 Aug. 14, 1973 87 Stat. 305 Pub. L. 93633, title II,  205 Jan. 3, 1975 88 Stat. 2166 Pub. L. 9456,  3 July 19, 1975 89 Stat. 263 Pub. L. 94348,  2(a) July 8, 1976 90 Stat. 817 Pub. L. 95574,  2 Nov. 2, 1978 92 Stat. 2459 Pub. L. 96423,  2 Oct. 10, 1980 94 Stat. 1811  Section 442, Pub. L. 95574,  3 Nov. 2, 1978 92 Stat. 2459 section 20117 of Title 49  Section 443, Pub. L. 91458, title II,  213 Pub. L. 96423,  11 Oct. 10, 1980 94 Stat. 1816 section 5109(c) of Title 5  Section 444, Pub. L. 91458, title II,  214 Pub. L. 96423,  2 Oct. 10, 1980 94 Stat. 1811 Pub. L. 9735, title XI,  1195 Aug. 13, 1981 95 Stat. 702 Pub. L. 97468, title VII,  703 Jan. 14, 1983 96 Stat. 2580 Pub. L. 100342,  2 June 22, 1988 102 Stat. 624 Pub. L. 101508, title X,  10501(b) Nov. 5, 1990 104 Stat. 1388400 Pub. L. 102365,  12 Sept. 3, 1992 106 Stat. 980  Section 445, Pub. L. 91458, title II,  215 Pub. L. 100342,  20 June 22, 1988 102 Stat. 638  Section 446, Pub. L. 101647, title XVII,  1704 Nov. 29, 1990 104 Stat. 4846 section 28101 of Title 49  Section 447, Pub. L. 91458, title II,  216 Pub. L. 101508, title X,  10501(a) Nov. 5, 1990 104 Stat. 1388399 section 20115 of Title 49 CHAPTER 14 RAIL PASSENGER SERVICE SUBCHAPTER I GENERAL PROVISIONS  501 to 502. Repealed. Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379   Section 501, Pub. L. 91518, title I,  101 Oct. 30, 1970 84 Stat. 1328 Pub. L. 9673, title I,  102 Sept. 29, 1979 93 Stat. 537 Pub. L. 9735, title XI,  1171 Aug. 13, 1981 95 Stat. 687 section 24101 of Title 49  Section 501a, Pub. L. 91518, title I,  102 Pub. L. 9673, title I,  103(a) Sept. 29, 1979 93 Stat. 537 Pub. L. 9735, title XI,  1172 Aug. 13, 1981 95 Stat. 688 section 24101 of Title 49  A prior section 102 of Pub. L. 91518 section 502 of this title Pub. L. 103272,  7(b)  Section 502, Pub. L. 91518, title I,  103 Oct. 30, 1970 84 Stat. 1328 Pub. L. 93146,  2 Nov. 3, 1973 87 Stat. 548 Pub. L. 9673, title I Sept. 29, 1979 93 Stat. 537 Pub. L. 9735, title XI,  1173 Aug. 13, 1981 95 Stat. 689 Pub. L. 99272, title IV,  4012 Apr. 7, 1986 100 Stat. 109 Pub. L. 102533,  8 Oct. 27, 1992 106 Stat. 3519 section 24102 of Title 49 Statutory Notes and Related Subsidiaries Short Title Pub. L. 91518,  1 Oct. 30, 1970 84 Stat. 1327 Pub. L. 93496,  12 Oct. 28, 1974 88 Stat. 1531 Pub. L. 91518 section 250 of Title 26 section 250 of Title 26 Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379 SUBCHAPTER II BASIC NATIONAL RAIL PASSENGER SYSTEM  521, 522. Repealed. Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379   Section 521, Pub. L. 91518, title II,  201 Oct. 30, 1970 84 Stat. 1329  Section 522, Pub. L. 91518, title II,  202 Oct. 30, 1970 84 Stat. 1329 SUBCHAPTER III NATIONAL RAILROAD PASSENGER CORPORATION  541 to 548. Repealed. Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379   Section 541, Pub. L. 91518, title III,  301 Oct. 30, 1970 84 Stat. 1330 Pub. L. 95421,  11 Oct. 5, 1978 92 Stat. 928 Pub. L. 9735, title XI,  1188(a) Aug. 13, 1981 95 Stat. 699 Pub. L. 100342,  18(a) June 22, 1988 102 Stat. 636  Section 542, Pub. L. 91518, title III,  302 Oct. 30, 1970 84 Stat. 1330  Section 543, Pub. L. 91518, title III,  303 Oct. 30, 1970 84 Stat. 1330 Pub. L. 92316,  1(a) June 22, 1972 86 Stat. 227 Pub. L. 93146,  3(a) Nov. 3, 1973 87 Stat. 548 Pub. L. 9425,  2 May 26, 1975 89 Stat. 90 Pub. L. 94210, title VII,  706(f) Feb. 5, 1976 90 Stat. 124 Pub. L. 96254, title II,  206(a) May 30, 1980 94 Stat. 412 Pub. L. 94555, title I,  103 Oct. 19, 1976 90 Stat. 2615 Pub. L. 9735, title XI,  1174(a) Aug. 13, 1981 95 Stat. 689 Pub. L. 97216, title I,  101 July 18, 1982 96 Stat. 187 Pub. L. 100342,  18(b) June 22, 1988 102 Stat. 636  Section 544, Pub. L. 91518, title III,  304 Oct. 30, 1970 84 Stat. 1331 Pub. L. 93496,  2 Oct. 28, 1974 88 Stat. 1526 Pub. L. 9735, title XI,  1175 Aug. 13, 1981 95 Stat. 691 Pub. L. 99272, title IV,  4003 Apr. 7, 1986 100 Stat. 107 Pub. L. 102533,  5 Oct. 27, 1992 106 Stat. 3517 section 24304 of Title 49  Section 545, Pub. L. 91518, title III,  305 Oct. 30, 1970 84 Stat. 1332 Pub. L. 92316,  2 June 22, 1972 86 Stat. 228 Pub. L. 93146 Nov. 3, 1973 87 Stat. 549 Pub. L. 93496 Oct. 28, 1974 88 Stat. 1527 Pub. L. 9425,  3 May 26, 1975 89 Stat. 90 Pub. L. 94210, title VII,  706(g) Feb. 5, 1976 90 Stat. 125 Pub. L. 96254, title II,  206(a) May 30, 1980 94 Stat. 412 Pub. L. 94555, title I,  104 Oct. 19, 1976 90 Stat. 2615 Pub. L. 95421,  10 Oct. 5, 1978 92 Stat. 928 Pub. L. 9673, title I Sept. 29, 1979 93 Stat. 539541 Pub. L. 9735, title XI Aug. 13, 1981 95 Stat. 692 Pub. L. 99272, title IV,  4007(e) Apr. 7, 1986 100 Stat. 108  Section 545a, Pub. L. 95421,  19 Oct. 5, 1978 92 Stat. 930 section 24305 of Title 49  Section 546, Pub. L. 91518, title III,  306 Oct. 30, 1970 84 Stat. 1332 Pub. L. 92316,  3 June 22, 1972 86 Stat. 228 Pub. L. 93146,  7 Nov. 3, 1973 87 Stat. 551 Pub. L. 94210, title VII,  706(e) Feb. 5, 1976 90 Stat. 124 Pub. L. 96254, title II,  206(a) May 30, 1980 94 Stat. 412 Pub. L. 94555, title I Oct. 19, 1976 90 Stat. 2615 Pub. L. 9673, title I,  112 Sept. 29, 1979 93 Stat. 541 Pub. L. 9735, title XI,  1178 Aug. 13, 1981 95 Stat. 692 Pub. L. 99272, title IV Apr. 7, 1986 100 Stat. 107110 Pub. L. 101610, title VI,  601(a) Nov. 16, 1990 104 Stat. 3185 Pub. L. 102533,  6 Oct. 27, 1992 106 Stat. 3517  Section 546a, Pub. L. 95421,  7 Oct. 5, 1978 92 Stat. 927 section 24301 of Title 49  Section 546b, Pub. L. 97257, title I Sept. 10, 1982 96 Stat. 852 section 24301 of Title 49  Section 547, Pub. L. 91518, title III,  307 Oct. 30, 1970 84 Stat. 1333 Pub. L. 9735, title XI,  1179 Aug. 13, 1981 95 Stat. 693 section 24103 of Title 49  Section 548, Pub. L. 91518, title III,  308 Oct. 30, 1970 84 Stat. 1333 Pub. L. 92316,  4 June 22, 1972 86 Stat. 228 Pub. L. 93146,  8 Nov. 3, 1973 87 Stat. 551 Pub. L. 9425,  4 May 26, 1975 89 Stat. 90 Pub. L. 9673, title I,  113 Sept. 29, 1979 93 Stat. 542 Pub. L. 9735, title XI,  1180 Aug. 13, 1981 95 Stat. 693 Pub. L. 99272, title IV,  4005 Apr. 7, 1986 100 Stat. 107 Pub. L. 100342,  18(d) June 22, 1988 102 Stat. 637 section 24315 of Title 49 SUBCHAPTER IV PROVISION OF RAIL PASSENGER SERVICES  561 to 563. Repealed. Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379   Section 561, Pub. L. 91518, title IV,  401 Oct. 30, 1970 84 Stat. 1334 Pub. L. 93146,  9 Nov. 3, 1973 87 Stat. 551 section 24701 of Title 49  Section 562, Pub. L. 91518, title IV,  402 Oct. 30, 1970 84 Stat. 1335 Pub. L. 92316,  5 June 22, 1972 86 Stat. 229 Pub. L. 93146,  10 Nov. 3, 1973 87 Stat. 552 Pub. L. 94210, title VII,  706(a) Feb. 5, 1976 90 Stat. 123 Pub. L. 96254, title II,  206(a) May 30, 1980 94 Stat. 412 Pub. L. 95421,  15 Oct. 5, 1978 92 Stat. 929 Pub. L. 9673, title I,  114 Sept. 29, 1979 93 Stat. 542 Pub. L. 96254, title II,  216 May 30, 1980 94 Stat. 418 Pub. L. 9735, title XI Aug. 13, 1981 95 Stat. 693 Pub. L. 99272, title IV Apr. 7, 1986 100 Stat. 107 Pub. L. 101641,  9(a) Nov. 28, 1990 104 Stat. 4658  Section 563, Pub. L. 91518, title IV,  403 Oct. 30, 1970 84 Stat. 1335 Pub. L. 92316,  6 June 22, 1972 86 Stat. 229 Pub. L. 93146,  11(a) Nov. 3, 1973 87 Stat. 553 Pub. L. 93496,  5 Oct. 28, 1974 88 Stat. 1527 Pub. L. 9425 May 26, 1975 89 Stat. 90 Pub. L. 94210, title VII,  706(c) Feb. 5, 1976 90 Stat. 124 Pub. L. 96254, title II,  206(a) May 30, 1980 94 Stat. 412 Pub. L. 94555, title I,  107 Oct. 19, 1976 90 Stat. 2616 Pub. L. 95421 Oct. 5, 1978 92 Stat. 929 Pub. L. 9673, title I,  115 Sept. 29, 1979 93 Stat. 542 Pub. L. 96254, title II,  213 May 30, 1980 94 Stat. 417 Pub. L. 96448, title V,  508(f) Oct. 14, 1980 94 Stat. 1958 Pub. L. 9735, title XI Aug. 13, 1981 95 Stat. 693 Pub. L. 99272, title IV,  4014(a)(1) Apr. 7, 1986 100 Stat. 109 Pub. L. 102533 Oct. 27, 1992 106 Stat. 3519  564. Repealed. Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379 Pub. L. 103429,  8(6) Oct. 31, 1994 108 Stat. 4390   Section, Pub. L. 91518, title IV,  404 Oct. 30, 1970 84 Stat. 1336 Pub. L. 93146,  11(b) Nov. 3, 1973 87 Stat. 553 Pub. L. 93496,  7 Oct. 28, 1974 88 Stat. 1530 Pub. L. 9425 May 26, 1975 89 Stat. 90 Pub. L. 94210, title VII,  706(d) Feb. 5, 1976 90 Stat. 124 Pub. L. 96254, title II,  206(a) May 30, 1980 94 Stat. 412 Pub. L. 9673, title I Sept. 29, 1979 93 Stat. 545 Pub. L. 9735, title XI,  1183(a) Aug. 13, 1981 95 Stat. 695697 Pub. L. 99272, title IV Apr. 7, 1986 100 Stat. 108110 Pub. L. 104287,  7(1) Oct. 11, 1996 110 Stat. 3400  565, 566. Repealed. Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379   Section 565, Pub. L. 91518, title IV,  405 Oct. 30, 1970 84 Stat. 1337 Pub. L. 92316 June 22, 1972 86 Stat. 230 Pub. L. 9673, title I,  120(a) Sept. 29, 1979 93 Stat. 547 Pub. L. 9735, title XI Aug. 13, 1981 95 Stat. 692 Pub. L. 99272, title IV,  4016 Apr. 7, 1986 100 Stat. 110  Section 566, Pub. L. 91518, title IV,  406 Pub. L. 9673, title I,  121 Sept. 29, 1979 93 Stat. 548 section 24309 of Title 49 SUBCHAPTER V AMTRAK COMMUTER SERVICES  581 to 591. Repealed. Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379   Section 581, Pub. L. 91518, title V,  501 Pub. L. 9735, title XI,  1137 Aug. 13, 1981 95 Stat. 647 Pub. L. 100457, title III,  336 Sept. 30, 1988 102 Stat. 2153 section 24501 of Title 49  A prior section 581, Pub. L. 91518, title V,  501 Oct. 30, 1970 84 Stat. 1338 Pub. L. 9425,  9 May 26, 1975 89 Stat. 92  Section 582, Pub. L. 91518, title V,  502 Pub. L. 9735, title XI,  1137 Aug. 13, 1981 95 Stat. 648  A prior section 582, Pub. L. 91518, title V,  502 Oct. 30, 1970 84 Stat. 1338 Pub. L. 9425,  9 May 26, 1975 89 Stat. 92  Section 583, Pub. L. 91518, title V,  503 Pub. L. 9735, title XI,  1137 Aug. 13, 1981 95 Stat. 648  A prior section 583, Pub. L. 91518, title V,  503 Oct. 30, 1970 84 Stat. 1338 Pub. L. 9425,  9 May 26, 1975 89 Stat. 92  Section 584, Pub. L. 91518, title V,  504 Pub. L. 9735, title XI,  1137 Aug. 13, 1981 95 Stat. 648  Section 585, Pub. L. 91518, title V,  505 Pub. L. 9735, title XI,  1137 Aug. 13, 1981 95 Stat. 650 Pub. L. 97468, title V,  508 Jan. 14, 1983 96 Stat. 2554  Section 586, Pub. L. 91518, title V,  506 Pub. L. 9735, title XI,  1137 Aug. 13, 1981 95 Stat. 650 section 24506 of Title 49  Section 587, Pub. L. 91518, title V,  507 Pub. L. 9735, title XI,  1137 Aug. 13, 1981 95 Stat. 652 section 586 of this title  Section 588, Pub. L. 91518, title V,  508 Pub. L. 9735, title XI,  1145 Aug. 13, 1981 95 Stat. 669  Section 589, Pub. L. 91518, title V,  509 Pub. L. 9735, title XI,  1145 Aug. 13, 1981 95 Stat. 671  Section 590, Pub. L. 91518, title V,  510 Pub. L. 9735, title XI,  1145 Aug. 13, 1981 95 Stat. 671  Section 591, Pub. L. 91518, title V,  511 Pub. L. 97468, title V,  509 Jan. 14, 1983 96 Stat. 2554 section 24505 of Title 49 SUBCHAPTER VI FEDERAL FINANCIAL ASSISTANCE  601. Repealed. Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379   Section, Pub. L. 91518, title VI,  601 Oct. 30, 1970 84 Stat. 1338 Pub. L. 92316,  9 June 22, 1972 86 Stat. 231 Pub. L. 93146,  12 Nov. 3, 1973 87 Stat. 553 Pub. L. 93496,  8 Oct. 28, 1974 88 Stat. 1530 Pub. L. 9425,  10 May 26, 1975 89 Stat. 92 Pub. L. 94555, title I,  102(a) Oct. 19, 1976 90 Stat. 2613 Pub. L. 95421 Oct. 5, 1978 92 Stat. 923 Pub. L. 9673, title I,  122(a) Sept. 29, 1979 93 Stat. 550 Pub. L. 96254, title II May 30, 1980 94 Stat. 414 Pub. L. 9735, title XI Aug. 13, 1981 95 Stat. 652 Pub. L. 97468, title III,  302(c) Jan. 14, 1983 96 Stat. 2550 Pub. L. 99272, title IV,  4002 Apr. 7, 1986 100 Stat. 106 Pub. L. 101322,  2 July 6, 1990 104 Stat. 295 Pub. L. 102533,  7(a) Oct. 27, 1992 106 Stat. 3517  602. Repealed. Pub. L. 102533,  7(c) Oct. 27, 1992 106 Stat. 3519   Section, Pub. L. 91518, title VI,  602 Oct. 30, 1970 84 Stat. 1338 Pub. L. 92316,  10(a) June 22, 1972 86 Stat. 231 Pub. L. 93146,  13 Nov. 3, 1973 87 Stat. 553 Pub. L. 93496,  9 Oct. 28, 1974 88 Stat. 1531 Pub. L. 9425,  11 May 26, 1975 89 Stat. 92 Pub. L. 94555, title I,  102(c) Oct. 19, 1976 90 Stat. 2614 Pub. L. 95421,  2(b)(2) Oct. 5, 1978 92 Stat. 923 Pub. L. 9673, title I,  122(b)(2) Sept. 29, 1979 93 Stat. 551 Pub. L. 9735, title XI,  1186 Aug. 13, 1981 95 Stat. 698 Pub. L. 99514,  2 Oct. 22, 1986 100 Stat. 2095 Pub. L. 100342,  18(e) June 22, 1988 102 Stat. 637 SUBCHAPTER VII EMERGENCY FINANCIAL ASSISTANCE  621, 622. Repealed. Pub. L. 99272, title IV,  4007(c) Apr. 7, 1986 100 Stat. 108   Section 621, Pub. L. 91518, title VII,  701 Oct. 30, 1970 84 Stat. 1339 Pub. L. 9425,  12 May 26, 1975 89 Stat. 93  Section 622, Pub. L. 91518, title VII,  702 Oct. 30, 1970 84 Stat. 1339 SUBCHAPTER VIII MISCELLANEOUS PROVISIONS  641. Repealed. Pub. L. 9673, title I,  111(b) Sept. 29, 1979 93 Stat. 541   Section, Pub. L. 91518, title VIII,  801 Oct. 30, 1970 84 Stat. 1339 Pub. L. 93146,  14 Nov. 3, 1973 87 Stat. 554 Pub. L. 93496,  10 Oct. 28, 1974 88 Stat. 1531 Pub. L. 94555, title I,  108 Oct. 19, 1976 90 Stat. 2616 Statutory Notes and Related Subsidiaries Effective Date of Repeal Repeal effective Oct. 1, 1979 section 501(a) of Pub. L. 9673  642 to 644. Repealed. Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379   Section 642, Pub. L. 91518, title VIII,  802 Oct. 30, 1970 84 Stat. 1340 section 24705 of Title 49  Section 643, Pub. L. 91518, title VIII,  803 Oct. 30, 1970 84 Stat. 1340  Section 644, Pub. L. 91518, title VIII,  805 Oct. 30, 1970 84 Stat. 1340 Pub. L. 92316,  11 June 22, 1972 86 Stat. 233 Pub. L. 93496,  11 Oct. 28, 1974 88 Stat. 1531 Pub. L. 99272, title IV,  4007(a) Apr. 7, 1986 100 Stat. 108 section 24315 of Title 49  645. Repealed. Pub. L. 99272, title IV,  4007(b) Apr. 7, 1986 100 Stat. 108   Section, Pub. L. 91518, title VIII,  806 Pub. L. 92316,  12 June 22, 1972 86 Stat. 233  646 to 650c. Repealed. Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379   Section 646, Pub. L. 91518, title VIII,  807 Pub. L. 95421,  13 Oct. 5, 1978 92 Stat. 929 section 24313 of Title 49  Section 647, Pub. L. 91518, title VIII,  808 Pub. L. 9673, title I,  123 Sept. 29, 1979 93 Stat. 551  Section 648, Pub. L. 91518, title VIII,  809 Pub. L. 9673, title I,  124 Sept. 29, 1979 93 Stat. 551  Section 649, Pub. L. 91518, title VIII,  810 Pub. L. 101322,  3 July 6, 1990 104 Stat. 295 section 26102 of Title 49  A prior section 649, Pub. L. 91518, title VIII,  810 Pub. L. 9673, title I,  125 Sept. 29, 1979 93 Stat. 552 Pub. L. 99272, title IV,  4007(b) Apr. 7, 1986 100 Stat. 108  Section 650, Pub. L. 91518, title VIII,  811 Pub. L. 102533,  2 Oct. 27, 1992 106 Stat. 3515 section 24906 of Title 49  A prior section 650, Pub. L. 91518, title VIII,  811 Pub. L. 9673, title I,  126 Sept. 29, 1979 93 Stat. 552 Pub. L. 99272, title IV,  4007(b) Apr. 7, 1986 100 Stat. 108  Section 650a, Pub. L. 100342,  18(g) June 22, 1988 102 Stat. 637  Section 650b, Pub. L. 91518, title VIII,  812 Pub. L. 102533,  3 Oct. 27, 1992 106 Stat. 3515 section 24314 of Title 49  Section 650c, Pub. L. 91518, title VIII,  813 Pub. L. 102533,  9 Oct. 27, 1992 106 Stat. 3520  650d, 650e. Repealed. Pub. L. 103429,  8(6) Oct. 31, 1994 108 Stat. 4390   Section 650d, Pub. L. 91518, title VIII,  814 Pub. L. 102533,  11 Oct. 27, 1992 106 Stat. 3520 June 1, 1993  Section 650e, Pub. L. 91518, title VIII,  815 Pub. L. 102533,  13 Oct. 27, 1992 106 Stat. 3522 SUBCHAPTER IX RAIL PASSENGER CORRIDORS  651 to 658. Repealed. Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379   Section 651, Pub. L. 91518, title X,  1001 Pub. L. 96254, title II,  212 May 30, 1980 94 Stat. 415 Mar. 25, 1980  Section 652, Pub. L. 91518, title X,  1002 Pub. L. 96254, title II,  212 May 30, 1980 94 Stat. 415  Section 653, Pub. L. 91518, title X,  1003 Pub. L. 96254, title II,  212 May 30, 1980 94 Stat. 416 Mar. 25, 1980  Section 654, Pub. L. 91518, title X,  1004 Pub. L. 96254, title II,  212 May 30, 1980 94 Stat. 416  Section 655, Pub. L. 91518, title X,  1005 Pub. L. 96254, title II,  212 May 30, 1980 94 Stat. 416  Section 656, Pub. L. 91518, title X,  1006 Pub. L. 96254, title II,  212 May 30, 1980 94 Stat. 417  Section 657, Pub. L. 91518, title X,  1007 Pub. L. 96254, title II,  212 May 30, 1980 94 Stat. 417  Section 658, Pub. L. 91518, title X,  1008 Pub. L. 96254, title II,  212 May 30, 1980 94 Stat. 417 CHAPTER 15 EMERGENCY RAIL SERVICES    Sec.  661. Definitions.  662. Guarantee of certificates.  663. Inspection of accounts, books, etc., of railroad receiving financial assistance.  664. Issuance of obligations to Secretary of the Treasury.  665. Utilization of services and facilities of Federal departments and agencies; reimbursement; consultation with Board; coordination of activities with Federal departments and agencies.  666. Court supervision of expenditures; findings; report to Secretary.  667. Audit by Comptroller General; report to Congress.  668. Guarantee fees; amount; deposit.  669. Repealed.  661. Definitions For the purposes of this chapter (1) Secretary means the Secretary of Transportation. (2) Board means the Surface Transportation Board. (3) Railroad means any rail carrier subject to part A of subtitle IV of title 49. (4) Certificate means certificates issued by trustees of a railroad pursuant to subsection 77(c)(3) of the Bankruptcy Act, as amended. ( Pub. L. 91663,  2 Jan. 8, 1971 84 Stat. 1975 Pub. L. 10488, title III,  325(1) Dec. 29, 1995 109 Stat. 951  Editorial Notes  References in Text Section 77(c)(3) of the Bankruptcy Act, referred to in par. (4), was classified to section 205(c)(3) of former Title 11, Bankruptcy. The Bankruptcy Act ( act July 1, 1898, ch. 541 30 Stat. 544 Oct. 1, 1979 Pub. L. 95598 Nov. 6, 1978 92 Stat. 2682 Amendments 1995Par. (2). Pub. L. 10488,  325(1)(A) Par. (3). Pub. L. 10488,  325(1)(B) 49 U.S.C. 127 Statutory Notes and Related Subsidiaries Effective Date of 1995 Amendment Amendment by Pub. L. 10488 Jan. 1, 1996 section 2 of Pub. L. 10488 section 1301 of Title 49 Short Title Pub. L. 91663,  1 Jan. 8, 1971 84 Stat. 1975 That this Act [enacting this chapter] may be cited as the Emergency Rail Services Act of 1970.  662. Guarantee of certificates (a) Authority of Secretary; prerequisites; procedures; waiver The trustees of any railroad undergoing reorganization under section 77 of the Bankruptcy Act, as amended, upon approval of the court, may apply to the Secretary for the guarantee of certificates. The Secretary, after consultation with the Board, is authorized to guarantee such certificates upon findings in writing that (1) cessation of essential transportation services by the railroad would endanger the public welfare; (2) cessation of such services is imminent; (3) there is no other practicable means of obtaining funds to meet payroll and other expenses necessary to provide such services than the issuance of such certificates; (4) such certificates cannot be sold without a guarantee; (5) the railroad can reasonably be expected to become self-sustaining; and (6) the probable value of the assets of the railroad in the event of liquidation provides reasonable protection to the United States. The Secretary shall publish notice of his intention to make such finding in the Federal Register not less than fifteen days prior to such finding, give interested persons, including agencies of the Federal Government, an opportunity to submit written data, views, or arguments (with or without opportunity for oral presentation), and give consideration to the relevant matter presented. The Secretary for good cause shown and upon a finding that extraordinary circumstances warrant doing so may waive the requirements of the preceding sentence. Notwithstanding any other provision of this section, the Secretary, in guaranteeing certificates under this section, is authorized to waive the findings required by paragraphs (1), (5), and (6) of this subsection. (b) Conditions to guarantee As a condition to a guarantee, the Secretary, after consultation with the Board, shall require that: (1) the proceeds of the sale of certificates guaranteed under this chapter, will be used solely for meeting payroll and other expenses which, if not met, would preclude continued provision of essential transportation services by the railroad; (2) other revenues of the railroad will be used, to the fullest extent possible, for such expenses; (3) proceeds from the sale of assets will be devoted to the fullest extent possible to the provision of essential transportation services by the railroad; and (4) in the event of actual or threatened cessation of essential transportation services by the railroad, the Secretary shall have the option to procure by purchase or lease trackage rights over the lines of the railroad and such equipment as may be necessary to provide such services by the Secretary or his assignee, and, in the event of a default in the payment of principal or interest as provided by the certificates, the money paid or expenses incurred by the United States as a result thereof shall be deemed to have been applied to the purchase or lease price. The terms of purchase or lease shall be subject to the approval of the reorganization court and the operation over the lines shall be subject to the approval of the Board pursuant to subchapter II of chapter 113 of title 49, but in no event shall the rendition of services by the Secretary or his assignee await the outcome of proceedings before the reorganization court or the Board. (c) Certificate as administrative expense; priority of certificate The Secretary shall not guarantee any certificate under this section unless such certificate is treated as an expense of administration and receives the highest lien on the railroads property and priority in payment under the Bankruptcy Act, except that this subsection shall not apply to certificates guaranteed for a railroad that is actively engaged in restructuring, as defined by the Secretary. For purposes of this subsection, the term restructuring includes an employee ownership plan or an employee-shipper ownership plan. (d) Interest rate; date of maturity; other terms and conditions A certificate under this chapter shall bear interest at such per annum rate as the Secretary deems reasonable, taking into account the range of interest rates prevailing in the private market for similar loans and the risks assumed by the Federal Government; nor may its maturity date, including all extensions and renewals thereof, be later than fifteen years from the date of original issuance. The Secretary may prescribe such other terms and conditions as he deems appropriate. In each case, the Secretary shall consider the feasibility of requiring the railroad to dispose of nonrailroad assets as a condition to a guarantee. (e) Maximum aggregate principal amount outstanding At any one time the outstanding aggregate principal amount of all certificates guaranteed under this chapter shall not exceed $200,000,000. (f) Rules and regulations The Secretary shall issue such rules and regulations as are appropriate to carry out the authority granted by this chapter. ( Pub. L. 91663,  3 Jan. 8, 1971 84 Stat. 1975 Pub. L. 95598, title III,  333 Nov. 6, 1978 92 Stat. 2679 Pub. L. 95611,  3(b) Nov. 8, 1978 92 Stat. 3089 Pub. L. 9686,  115(a) Oct. 12, 1979 93 Stat. 662 Pub. L. 96101,  7(a) Nov. 4, 1979 93 Stat. 739 Pub. L. 10488, title III,  325(2) Dec. 29, 1995 109 Stat. 951  Editorial Notes  References in Text The Bankruptcy Act, referred to in subsecs. (a) and (c), is act July 1, 1898, ch. 541 30 Stat. 544 Oct. 1, 1979 Pub. L. 95598 Nov. 6, 1978 92 Stat. 2682 Amendments 1995Subsec. (a). Pub. L. 10488,  325(2)(B) Subsec. (b). Pub. L. 10488 1979Subsec. (a). Pub. L. 96101,  7(a) section 721(d)(1) of this title section 702(15) of this title Dec. 31, 1979 Subsec. (c). Pub. L. 96101,  7(b) Pub. L. 95598 Subsec. (e). Pub. L. 96101,  7(c) Oct. 1, 1979 Nov. 30, 1979 Oct. 1, 1979 Pub. L. 9686 Oct. 1, 1979 Nov. 30, 1979 Oct. 1, 1979 1978Subsec. (a). Pub. L. 95611 Dec. 31, 1979 Subsec. (c). Pub. L. 95598 Statutory Notes and Related Subsidiaries Effective Date of 1995 Amendment Amendment by Pub. L. 10488 Jan. 1, 1996 section 2 of Pub. L. 10488 section 1301 of Title 49 Effective Date of 1978 Amendment Amendment by Pub. L. 95598 Oct. 1, 1979 section 402(a) of Pub. L. 95598 section 101 of Title 11  663. Inspection of accounts, books, etc., of railroad receiving financial assistance  The Secretary is authorized to, and shall as necessary, inspect and copy all accounts, books, records, memorandums, correspondence, and other documents of any railroad which has received financial assistance under this chapter concerning any matter which may bear upon (1) the ability of such railroad to repay the loan within the time fixed therefor, (2) the interest of the United States in the property of such railroad, and (3) to insure that the purpose of this chapter is being carried out. ( Pub. L. 91663,  4 Jan. 8, 1971 84 Stat. 1976  664. Issuance of obligations to Secretary of the Treasury (a) Forms and denominations; maturity dates; terms and conditions; interest rate; purchase and sale of obligations by Secretary of the Treasury; authorization of appropriations To enable the Secretary to carry out his rights and responsibilities under section 662 of this title (b) Revocation of guarantee; legal effect of guarantee; validity and incontestability of guaranteed certificate Any guarantee made by the Secretary under this chapter shall not be terminated, canceled, or otherwise revoked, except as provided by the terms and conditions prescribed by the Secretary under section 662(d) of this title (c) Enforcement by Attorney General of rights accruing to United States because of guarantee The Attorney General shall take such action as may be appropriate to enforce any right accruing to the United States by reason of its having paid money or incurred expenses as a result of making such guarantees. ( Pub. L. 91663,  5 Jan. 8, 1971 84 Stat. 1976  Editorial Notes Codification In subsec. (a), chapter 31 of title 31 and that chapter substituted for the Second Liberty Bond Act, as amended and that Act, as amended,, respectively, on authority of Pub. L. 97258,  4(b) Sept. 13, 1982 96 Stat. 1067  665. Utilization of services and facilities of Federal departments and agencies; reimbursement; consultation with Board; coordination of activities with Federal departments and agencies (a) In carrying out the provisions of this chapter the Secretary may use available services and facilities of other departments, agencies, and instrumentalities of the Federal Government with their consent and on a reimbursable basis, and shall consult with the Board in carrying out the provisions of this chapter. (b) Departments, agencies, and instrumentalities of the Federal Government shall exercise their powers, duties, and functions in such manner as will assist in carrying out the provisions of this chapter. ( Pub. L. 91663,  6 Jan. 8, 1971 84 Stat. 1977 Pub. L. 10488, title III,  325(3) Dec. 29, 1995 109 Stat. 951  Editorial Notes Amendments 1995Subsec. (a). Pub. L. 10488 Statutory Notes and Related Subsidiaries Effective Date of 1995 Amendment Amendment by Pub. L. 10488 Jan. 1, 1996 section 2 of Pub. L. 10488 section 1301 of Title 49  666. Court supervision of expenditures; findings; report to Secretary  In addition to other duties prescribed by section 77 of the Bankruptcy Act, the court shall maintain supervision of the expenditure of funds obtained pursuant to section 662 of this title ( Pub. L. 91663,  7 Jan. 8, 1971 84 Stat. 1977  Editorial Notes  References in Text Section 77 of the Bankruptcy Act, referred to in text, was classified to section 205 of former Title 11, Bankruptcy. The Bankruptcy Act ( act July 1, 1898, ch. 541 30 Stat. 544 Oct. 1, 1979 Pub. L. 95598 Nov. 6, 1978 92 Stat. 2682  667. Audit by Comptroller General; report to Congress  The Comptroller General of the United States, or any of his duly authorized representatives, shall have access to such information, books, records, and documents as he determines necessary effectively to audit financial transactions and operations carried out by the Secretary in the administration of this chapter. The Comptroller General shall make such reports to the Congress on the results of any such audits as are appropriate. ( Pub. L. 91663,  8 Jan. 8, 1971 84 Stat. 1977  668. Guarantee fees; amount; deposit  The Secretary shall prescribe a guarantee fee in connection with each loan guaranteed under this chapter which shall be collected from the railroad upon repayment of the loan guaranteed. Such fee shall be in an amount that the Secretary estimates to be necessary to cover the administrative costs of carrying out the provisions of this chapter with respect to such loan. Sums realized from such fees shall be deposited in the Treasury as miscellaneous receipts. ( Pub. L. 91663,  9 Jan. 8, 1971 84 Stat. 1978  669. Repealed. Pub. L. 97375, title I,  111(e) Dec. 21, 1982 96 Stat. 1821   Section, Pub. L. 91663,  10 Jan. 8, 1971 84 Stat. 1978 Pub. L. 96470, title I,  112(h) Oct. 19, 1980 94 Stat. 2240 CHAPTER 16 REGIONAL RAIL REORGANIZATION    SUBCHAPTER IGENERAL PROVISIONS  Sec.  701. Congressional declaration of policy.  702. Definitions.  SUBCHAPTER IIUNITED STATES RAILWAY ASSOCIATION  711. Formation and structure.  712. Functions of Association.  713. Access to information.  714 715. Omitted or Repealed.  716. Final system plan.  717. Adoption of final system plan.  718. Review by Congress.  719. Judicial review.  720. Obligations of Association.  721. Loans.  722. Records, audit, and examination.  723. Emergency assistance pending implementation.  724. Authorization of appropriations.  725. Interim agreements.  726. Debentures and series A preferred stock.  727. Additional purchases of Series A preferred stock.  728. Reports to Congress.  729. Advisory Board.  SUBCHAPTER IIICONSOLIDATED RAIL CORPORATION  741. Formation and structure.  742. Powers and duties of Corporation.  743. Valuation and conveyance of rail properties.  744. Termination and continuation of rail services.  744a. End of Conrail commuter service obligation.  745. Continuing reorganization; supplemental transactions.  746. Certificates of value.  747. Protection of Federal funds.  748. Abandonments.  SUBCHAPTER IVTRANSFER OF FREIGHT SERVICES  761 769c. Repealed.  SUBCHAPTER VEMPLOYEE PROTECTION  771 780. Repealed.  SUBCHAPTER VIMISCELLANEOUS PROVISIONS  791. Relationship to other laws.  792 793. Repealed.  794. Tax payments to States.  SUBCHAPTER VIIPROTECTION OF EMPLOYEES  797. Repealed.  797a. Termination allowance.  797b. Preferential hiring.  797c. Central register of railroad employment.  797d. Election and treatment of benefits.  797e. Assignment of work.  797f. Contracting out.  797g. New collective-bargaining agreements.  797h. Employee and personal injury claims.  797i. Limitations on liability.  797j. Preemption.  797k. Factfinding panel.  797l. Class II railroads receiving Federal assistance.  797m. Arbitration. SUBCHAPTER I GENERAL PROVISIONS  701. Congressional declaration of policy (a) Findings The Congress finds and declares that (1) Essential rail service in the midwest and northeast region of the United States is provided by railroads which are today insolvent and attempting to undergo reorganization under the Bankruptcy Act. (2) This essential rail service is threatened with cessation or significant curtailment because of the inability of the trustees of such railroads to formulate acceptable plans for reorganization. This rail service is operated over rail properties which were acquired for a public use, but which have been permitted to deteriorate and now require extensive rehabilitation and modernization. (3) The public convenience and necessity require adequate and efficient rail service in this region and throughout the Nation to meet the needs of commerce, the national defense, the environment, and the service requirements of passengers, United States mail, shippers, States and their political subdivisions, and consumers. (4) Continuation and improvement of essential rail service in this region is also necessary to preserve and maintain adequate national rail services and an efficient national rail transportation system. (5) Rail service and rail transportation offer economic and environmental advantages with respect to land use, air pollution, noise levels, energy efficiency and conservation, resource allocation, safety, and cost per ton-mile of movement to such extent that the preservation and maintenance of adequate and efficient rail service is in the national interest. (6) These needs cannot be met without substantial action by the Federal Government. (b) Purposes It is therefore declared to be the purpose of Congress in this chapter to provide for (1) the identification of a rail service system in the midwest and northeast region which is adequate to meet the needs and service requirements of this region and of the national rail transportation system; (2) the reorganization of railroads in this region into an economically viable system capable of providing adequate and efficient rail service to the region; (3) the establishment of the United States Railway Association, with enumerated powers and responsibilities; (4) the establishment of the Consolidated Rail Corporation, with enumerated powers and responsibilities; (5) assistance to States and local and regional transportation authorities for continuation of local rail services threatened with cessation; and (6) necessary Federal financial assistance at the lowest possible cost to the general taxpayer. ( Pub. L. 93236, title I,  101 Jan. 2, 1974 87 Stat. 986  Editorial Notes  References in Text The Bankruptcy Act, referred to in subsec. (a)(1), is act July 1, 1898, ch. 541 30 Stat. 544 Oct. 1, 1979 Pub. L. 95598 Nov. 6, 1978 92 Stat. 2682 Statutory Notes and Related Subsidiaries Short Title of 1978 Amendment Pub. L. 95565,  1 Nov. 1, 1978 92 Stat. 2397 That this Act [amending sections 726, 747, and 825 of this title and section 975 of Title 43 section 975 of Title 43 Short Title of 1976 Amendment Pub. L. 94555, title II,  201 Oct. 19, 1976 90 Stat. 2616 This title [amending sections 702, 711, 716, 720, 721, 743, 744, 771, 774, 775, 779, 823, 824, 825, 826, 829, 831, and 854 of this title, section 960 of Title 20 section 80a3 of Title 15 Short Title of 1975 Amendment Pub. L. 945,  1 Feb. 28, 1975 89 Stat. 7 That this Act [enacting section 794 of this title Short Title Pub. L. 93236,  1 Jan. 2, 1974 87 Stat. 985 Separability Pub. L. 93236, title VI,  604 Jan. 2, 1974 87 Stat. 1023 If any provision of this Act [enacting this chapter and amending section 856 of former Title 31, Money and Finance, and section 1(16) of former Title 49, Transportation] or the application thereof to any person or circumstances is held invalid, the remainder of this Act and the application of such provision to other persons or circumstances shall not be affected thereby.  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title  702. Definitions As used in this chapter, unless the context otherwise requires (1) Association means the United States Railway Association, established under section 711 of this title (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) Corporation means the Consolidated Rail Corporation required to be established under section 741 of this title (6) effective date of the final system plan means the date on which the final system plan or any revised final system plan is deemed approved by Congress, in accordance with section 718 of this title (7) employee stock ownership plan means a technique of corporate finance that uses a stock bonus trust or a company stock money purchase pension trust which qualifies under section 401(a) of title 26 (8) final system plan means the plan of reorganization for the restructure, rehabilitation, and modernization of railroads in reorganization prepared pursuant to section 716 of this title section 718 of this title (9) Finance Committee means the Finance Committee of the Board of Directors of the Association established under section 711(i) 1 1 (10) includes and variants thereof should be read as if the phrase but is not limited to were also set forth; (11) local or regional transportation authority includes a political subdivision of a State. 2 2 (12) Office means the Rail Services Planning Office established under section 10361 1 (13) profitable railroad means a railroad which is not a railroad in reorganization. The term does not include the Corporation, the National Railroad Passenger Corporation, or a railroad leased, operated, or controlled by a railroad in reorganization in the region; (14) rail properties means assets or rights owned, leased, or otherwise controlled by a railroad (or a person owned, leased, or otherwise controlled by a railroad) which are used or useful in rail transportation service; except that the term, when used in conjunction with the phrase railroads leased, operated, or controlled by a railroad in reorganization, shall not include assets or rights owned, leased, or otherwise controlled by a Class I railroad which is not wholly owned, operated, or leased by a railroad in reorganization but is controlled by a railroad in reorganization; (15) railroad means a rail carrier subject to part A of subtitle IV of title 49. The term includes the Corporation and the National Railroad Passenger Corporation; (16) railroad in reorganization means a railroad which is subject to a bankruptcy proceeding and which has not been determined by a court to be reorganizable or not subject to reorganization pursuant to this chapter as prescribed in section 717(b) of this title (17) Region means the States of Maine, New Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island, New York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia, West Virginia, Ohio, Indiana, Michigan, and Illinois; the District of Columbia; and those portions of contiguous States in which are located rail properties owned or operated by railroads doing business primarily in the aforementioned jurisdictions (as determined by the Commission by order); (17A) sale date means the date on which the initial public offering of the securities of the Corporation is closed under the Conrail Privatization Act [ 45 U.S.C. 1301 (18) Secretary means the Secretary of Transportation or the designated representative of the Secretary; (19) State means any State or the District of Columbia; (20) subsidiary means any corporation 100 percent of whose total combined voting shares are, directly or indirectly, owned or controlled by the Corporation; and (21) supplemental transaction means any transaction set forth in a proposal under section 745 of this title ( Pub. L. 93236, title I,  102 Jan. 2, 1974 87 Stat. 986 Pub. L. 94210, title VI Feb. 5, 1976 90 Stat. 86 Pub. L. 94248,  1 Mar. 25, 1976 90 Stat. 286 Pub. L. 94555, title II,  211(a) Oct. 19, 1976 90 Stat. 2624 Pub. L. 96448, title V,  508(b) Oct. 14, 1980 94 Stat. 1957 Pub. L. 9735, title XI,  1135(b) Aug. 13, 1981 95 Stat. 646 Pub. L. 99509, title IV,  4033(b)(1) Oct. 21, 1986 100 Stat. 1908 Pub. L. 99514,  2 Oct. 22, 1986 100 Stat. 2095 Pub. L. 10488, title III,  327(1) Dec. 29, 1995 109 Stat. 951  Editorial Notes  References in Text Section 711(i) of this title Pub. L. 9735, title XI,  1147 Aug. 13, 1981 95 Stat. 673 Section 10361 of title 49 Pub. L. 10488, title I,  102(a) Dec. 29, 1995 109 Stat. 804 section 10361 of title 49 section 205 of Pub. L. 93236 Pub. L. 95473,  3(b) Oct. 17, 1978 92 Stat. 1466 Section 77 of the Bankruptcy Act, referred to in par. (16), was classified to section 205 of former Title 11, Bankruptcy. The Bankruptcy Act ( act July 1, 1898, ch. 541 30 Stat. 544 Oct. 1, 1979 Pub. L. 95598 Nov. 6, 1978 92 Stat. 2682 The Conrail Privatization Act, referred to in par. (17A), is subtitle A ( 40014052) of title IV of Pub. L. 99509 Oct. 21, 1986 100 Stat. 1892 section 1301 of this title Apr. 2, 1987 Codification In par. (21), formerly (19), under section 743(b) of this title section 601(b) of Pub. L. 96448 section 743(b) of this title Amendments 1995Par. (15). Pub. L. 10488 49 U.S.C. 1(3) 1986Par. (7). Pub. L. 99514 Par. (17A). Pub. L. 99509 1981 Pub. L. 9735 1980Par. (16). Pub. L. 96448,  508(b) Par. (19). Pub. L. 96448,  601(b) section 745 of this title 1976Par. (3). Pub. L. 94248 Par. (7). Pub. L. 94210,  603(c) Par. (8). Pub. L. 94210 Pars. (9) to (11). Pub. L. 94210,  601(g) Par. (12). Pub. L. 94210 Pars. (13) to (15). Pub. L. 94210,  601(g) Par. (16). Pub. L. 94555 Pub. L. 94210 Par. (17). Pub. L. 94210 Pars. (18), (19). Pub. L. 94210,  610(a)(3) Statutory Notes and Related Subsidiaries Effective Date of 1995 Amendment Amendment by Pub. L. 10488 Jan. 1, 1996 section 2 of Pub. L. 10488 section 1301 of Title 49 Effective Date of 1981 Amendment Amendment by Pub. L. 9735 Aug. 13, 1981 section 1169 of Pub. L. 9735 section 1101 of this title Effective Date of 1980 Amendment Amendment by Pub. L. 96448 Oct. 1, 1980 section 710(a) of Pub. L. 96448 section 1170 of Title 11 Effective Date of 1976 Amendment Pub. L. 94555, title III,  303 Oct. 19, 1976 90 Stat. 2631 The provisions of this Act and the amendments made by this Act [amending this section, sections 543, 545, 546, 563, 601, 602, 641, 711, 716, 720, 721, 743, 744, 771, 774, 775, 779, 823, 824, 825, 826, 829, 831, and 854 of this title, section 960 of Title 20 section 80a3 of Title 15 October 1, 1976  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title Applicability of National Environmental Policy Act Application of National Environmental Policy Act to actions of Commission not affected by title VI of Pub. L. 94210 section 619 of Pub. L. 94210 section 791 of this title SUBCHAPTER II UNITED STATES RAILWAY ASSOCIATION  711. Formation and structure (a) Establishment There is established, in accordance with the provisions of this section, an incorporated nonprofit association to be known as the United States Railway Association. (b) Administration The Association shall be directed by a Board of Directors. The individuals designated, pursuant to subsection (d)(2) of this section, as the Government members of such Board shall be deemed the incorporators of the Association and shall take whatever steps are necessary to establish the Association, including filing of articles of incorporation, and serving as an acting Board of Directors for a period of not more than 45 days after the date of incorporation of the Association. (c) Status The Association shall be a government corporation of the District of Columbia subject, to the extent not inconsistent with this subchapter, to the District of Columbia Nonprofit Corporation Act. Except as otherwise provided, employees of the Association shall not be deemed employees of the Federal Government. The Association shall have succession until dissolved by Act of Congress, shall maintain its principal office in the District of Columbia, and shall be deemed to be a resident of the District of Columbia with respect to venue in any legal proceeding. (d) Board of Directors (1) The Board of Directors of the Association shall consist of five individuals, as follows: (A) The Chairman, who shall be the individual serving as Chairman on August 13, 1981 (B) The Secretary of Transportation. (C) The Comptroller General of the United States. (D) The Chairman of the Commission. (E) The Chairman of the Board of Directors of the Corporation. (2) The Chairman may not have any employment or other direct financial relationship with any freight railroad. The Chairman shall receive $300 per diem when engaged in the actual performance of his duties plus reimbursement for travel, subsistence, and other necessary expenses incurred in the performance of such duties. (e) Term of office The term of office of the Chairman of the Board of Directors of the Association shall expire on December 31, 1987 (f) Quorum Three members of the Board of Directors, or their representatives, shall constitute a quorum for the transaction of any function of the Association. (g) Assumption of Finance Committee functions The Board of Directors shall, on August 13, 1981 (h) Representation at meetings The members of the Board of Directors may send representatives to meetings of such Board, and such representatives may exercise full powers of the members. (i) Miscellaneous 1 1 (1) The Association shall have a seal which shall be judicially recognized. (2) The Administrator of General Services shall furnish the Association with such offices, equipment, supplies, and services as he is authorized to furnish to any other agency or instrumentality of the United States. (3) The Secretary is authorized to transfer to the Association or the Corporation rights in intellectual property which are directly related to the conduct of the functions of the Association or the Corporation, to the extent that the Federal Government has such rights and to the extent that transfer is necessary to carry out the purposes of this chapter. (4) Any reference in this chapter to the Chairman of the Commission is to the Chairman of the Commission or the person who is at the time performing the duties of the Chairman of the Commission in accordance with law. (j) Use of names 1 No person, except the Association, shall hereafter use the words United States Railway Association as a name for any business purpose. Violations of this provision may be enjoined by any court of general jurisdiction in an action commenced by the Association. In any such action, the Association may recover any actual damages flowing from such violation, and, in addition, shall be entitled to punitive damages (regardless of the existence or nonexistence of actual damage) in an amount not to exceed $100 for each day during which such violation was committed. The district courts of the United States shall have jurisdiction over actions brought under this subsection, without regard to the amount in controversy or the citizenship of the parties. ( Pub. L. 93236, title II,  201 Jan. 2, 1974 87 Stat. 988 Pub. L. 94210, title VI Feb. 5, 1976 90 Stat. 88 Pub. L. 94555, title II,  211(b) Oct. 19, 1976 90 Stat. 2624 Pub. L. 95611,  2 Nov. 8, 1978 92 Stat. 3089 Pub. L. 96448, title V,  508(c) Oct. 14, 1980 94 Stat. 1957 Pub. L. 9735, title XI,  1147 Aug. 13, 1981 95 Stat. 673 Pub. L. 98181, title II,  2003(c)(1) Nov. 30, 1983 97 Stat. 1297 Pub. L. 99190,  101(e) [title III,  332] Dec. 19, 1985 99 Stat. 1267  Editorial Notes  References in Text The District of Columbia Nonprofit Corporation Act, referred to in subsec. (c), is Pub. L. 87569 Aug. 6, 1962 76 Stat. 265 Codification Section 1147 of Pub. L. 9735 Amendments 1985Subsec. (d)(2). Pub. L. 99190,  101(e) [title III,  332(1)] Subsec. (e). Pub. L. 99190,  101(e) [title III,  332(2)] 1983Subsec. (e). Pub. L. 98181 1981Subsec. (d). Pub. L. 9735 Subsec. (e). Pub. L. 9735 Subsec. (f). Pub. L. 9735 Subsec. (g). Pub. L. 9735 Subsec. (h). Pub. L. 9735 Subsec. (i). Pub. L. 9735 Subsecs. (j), (k). Pub. L. 9735 1980Subsec. (d)(2). Pub. L. 96448,  508(c)(1) Subsec. (i). Pub. L. 96448,  508(c)(2) Subsec. (j)(4). Pub. L. 96448,  508(c)(3) 1978Subsec. (e). Pub. L. 95611 1976Subsec. (d)(2). Pub. L. 94555,  211(b) Pub. L. 94210,  603(b)(2) Subsec. (h). Pub. L. 94555,  211(c) Pub. L. 94210,  603(b)(1) Subsec. (i). Pub. L. 94555,  211(d) Pub. L. 94210,  603(a) Subsec. (j). Pub. L. 94210 Subsec. (j)(4). Pub. L. 94555,  211(e) Subsec. (k). Pub. L. 94210 Statutory Notes and Related Subsidiaries Effective Date of 1981 Amendment Amendment by Pub. L. 9735 Aug. 13, 1981 section 1169 of Pub. L. 9735 section 1101 of this title Effective Date of 1980 Amendment Amendment by Pub. L. 96448 Oct. 1, 1980 section 710(a) of Pub. L. 96448 section 1170 of Title 11 Effective Date of 1976 Amendment Amendment by Pub. L. 94555 Oct. 1, 1976 section 303 of Pub. L. 94555 section 702 of this title  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title Applicability of National Environmental Policy Act Application of National Environmental Policy Act to actions of Commission not affected by title VI of Pub. L. 94210 section 619 of Pub. L. 94210 section 791 of this title  712. Functions of Association (a) General The Association is authorized to (1) monitor the financial performance of the Corporation; (2) review whether the goals and requirements of this chapter are met; (3) purchase or otherwise acquire or receive, and hold and dispose of securities (whether debt or equity) of the Corporation under sections 726 and 727 of this title and exercise all of the rights, privileges, and powers of a holder of any such securities; (4) purchase accounts receivable of the Corporation in accordance with section 727 of this title (5) appoint and fix the compensation of such personnel as the Association considers necessary and appropriate; and (11)  1 1 section 1204 of this title (b) Investment of funds Uncommitted funds of the Association shall be kept in cash on hand or on deposit, or invested in obligations of the United States or guaranteed thereby, or in obligations, participations, or other investments which are lawful investments for fiduciary, trust, or public funds. (c) Exemption from taxation The Association, including its franchise, capital reserves, surplus, security holdings, and income shall be exempt from all taxation now or hereafter imposed by the United States, any commonwealth, territory, dependency, or possession thereof, or by any State or political subdivision thereof, except that any real property of the Association shall be subject to taxation to the same extent according to its value as other real property is taxed. (d) Reports (1)  2 2 (2) For the fiscal year beginning October 1, 1977 September 30, 1978 (3) The Association shall transmit to the Congress, no later than 30 days after the end of each fiscal quarter, a report with respect to the proceedings before the special court to determine the valuation of rail properties conveyed to the Corporation under section 743 of this title (A) a detailed accounting of the Federal funds expended during such quarter in connection with such proceedings, and the purposes for which such funds were expended; (B) an explanation of the status of such proceedings, including the prospects for settlement or conclusion; and (C) an identification of which responsibilities in connection with such proceedings are being carried out directly by the Association, and which are being carried out by contract with private organizations. (e) Budget The receipts and disbursements of the Association (other than administrative expenses referred to in subsection (g) 3 3 Pub. L. 9735 section 726 of this title section 746 of this title (f) Accountability The Chairman of the Association shall transmit annually to the Office of Management and Budget a budget for administrative expenses of the Association. Whenever the Association submits any budget estimate or request to the Office of Management and Budget, it shall concurrently transmit a copy of the estimate or request to the Congress. Within budgetary constraints of the Congress, the maximum feasible and prudent budgetary flexibility shall be provided to the Association to permit effective operations. (g) Transfer of litigation No later than March 1, 1980 section 743 of this title (h) Transfer of other functions No later than March 1, 1980 4 4 Pub. L. 9735 (i) Monitoring of contractors The Board of Directors of the Association shall adopt procedures to insure (1) that contractors, including law firms, provide reports containing written verification of tasks assigned, work performed, time worked, and costs incurred, including periodic status reports on work performed, (2) that such reports are audited by the Association, (3) that no funds are paid to contractors without written reports complying with the requirements of this subsection, and (4) that the Association applies such procedures uniformly to all contractors. ( Pub. L. 93236, title II,  202 Jan. 2, 1974 87 Stat. 990 Pub. L. 945,  2(a) Feb. 28, 1975 89 Stat. 7 Pub. L. 94210, title VI Feb. 5, 1976 90 Stat. 84 Pub. L. 95199,  2 Nov. 23, 1977 91 Stat. 1423 Pub. L. 9673, title II Sept. 29, 1979 93 Stat. 555 Pub. L. 9735, title XI,  1148(a) Aug. 13, 1981 95 Stat. 674 Pub. L. 97468, title VI,  605(e) Jan. 14, 1983 96 Stat. 2564  Editorial Notes Codification Subsec. (f), formerly (g), of this section as originally enacted consisted of pars. (1) and (2). Par. (1), which amended section 856 of former Title 31, Money and Finance, was repealed by Pub. L. 97258,  5(b) Sept. 13, 1982 96 Stat. 1068 Amendments 1983Subsec. (a)(11). Pub. L. 97468 1981Subsec. (a). Pub. L. 9735,  1148(a)(1) Subsecs. (b) to (j). Pub. L. 9735,  1148(a) 1979Subsec. (e)(3). Pub. L. 9673,  202 Subsecs. (h) to (j). Pub. L. 9673,  203 1977Subsec. (e). Pub. L. 95199 1976Subsec. (a)(2). Pub. L. 94210,  601(c) section 726 of this title section 746 of this title Subsec. (e). Pub. L. 94210,  607(b) Subsec. (f). Pub. L. 94210,  607(c) 1975Subsec. (b)(2). Pub. L. 945,  2(a)(1) Subsec. (b)(7). Pub. L. 945,  2(a)(2) Subsec. (b)(8). Pub. L. 945,  2(a)(3) Statutory Notes and Related Subsidiaries Effective Date of 1981 Amendment Amendment by Pub. L. 9735 Aug. 13, 1981 section 1169 of Pub. L. 9735 section 1101 of this title Effective Date of 1979 Amendment Amendment by Pub. L. 9673 Oct. 1, 1979 section 501(a) of Pub. L. 9673 Termination of Reporting Requirements For termination, effective May 15, 2000 section 3003 of Pub. L. 10466 Pub. L. 106554 section 1113 of Title 31  Abolition of Special Court, Regional Rail Reorganization Act of 1973, and Transfer of Functions Special court abolished and all jurisdiction and functions transferred to United States District Court for District of Columbia, see section 719(b)(2) of this title  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title Applicability of National Environmental Policy Act Application of National Environmental Policy Act to actions of Commission not affected by title VI of Pub. L. 94210 section 619 of Pub. L. 94210 section 791 of this title  713. Access to information  The Corporation shall make available to the Association such information as the Association determines necessary for the Association to carry out its functions under this chapter. The Association shall request from other parties which are affected by this chapter information which will enable the Association to fulfill its functions under this chapter. ( Pub. L. 93236, title II,  203 Jan. 2, 1974 87 Stat. 992 Pub. L. 94210, title VI,  607(d) Feb. 5, 1976 90 Stat. 96 Pub. L. 9735, title XI,  1149 Aug. 13, 1981 95 Stat. 675  Editorial Notes Amendments 1981 Pub. L. 9735 1976Subsec. (a). Pub. L. 94210 Statutory Notes and Related Subsidiaries Effective Date of 1981 Amendment Amendment by Pub. L. 9735 Aug. 13, 1981 section 1169 of Pub. L. 9735 section 1101 of this title  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title Applicability of National Environmental Policy Act Application of National Environmental Policy Act to actions of Commission not affected by title VI of Pub. L. 94210 section 619 of Pub. L. 94210 section 791 of this title  714. Omitted  Editorial Notes Codification Section, Pub. L. 93236, title II,  204 Jan. 2, 1974 87 Stat. 993 Jan. 2, 1974 Statutory Notes and Related Subsidiaries Delaware-Maryland-Virginia Peninsula Rail Study; Report to Congress Pub. L. 94555, title III,  302 Oct. 19, 1976 90 Stat. 2631 Oct. 19, 1976  715. Repealed. Pub. L. 95473,  4(b) Oct. 17, 1978 92 Stat. 1466   Section, Pub. L. 93236, title II,  205 Jan. 2, 1974 87 Stat. 993 Pub. L. 945,  3 Feb. 28, 1975 89 Stat. 7 Pub. L. 94210, title III,  309 Feb. 5, 1976 90 Stat. 57  716. Final system plan (a) Goals The final system plan shall be formulated in such a way as to effectuate the following goals: (1) the creation, through a process of reorganization, of a financially self-sustaining rail and express service system in the region; (2) the establishment and maintenance of a rail service system adequate to meet the rail transportation needs and service requirements of the region; (3) the establishment of improved high-speed rail passenger service, consonant with the recommendations of the Secretary in his report of September 1971, entitled Recommendations for Northeast Corridor Transportation; (4) the preservation, to the extent consistent with other goals, of existing patterns of service by railroads (including short-line and terminal railroads), and of existing railroad trackage in areas in which fossil fuel natural resources are located, and the utilization of those modes of transportation in the region which require the smallest amount of scarce energy resources and which can most efficiently transport energy resources; (5) the retention and promotion of competition in the provision of rail and other transportation services in the region; (6) the attainment and maintenance of any environmental standards, particularly the applicable national ambient air quality standards and plans established under the Clean Air Act Amendments of 1970, taking into consideration the environmental impact of alternative choices of action; (7) the movement of passengers and freight in rail transportation in the region in the most efficient manner consistent with safe operation, including the requirements of commuter and intercity rail passenger service; the extent to which there should be coordination with the National Railroad Passenger Corporation and similar entities; and the identification of all short-to-medium distance corridors in densely populated areas in which the major upgrading of rail lines for high-speed passenger operation would return substantial public benefits; and (8) the minimization of job losses and associated increases in unemployment and community benefit costs in areas in the region presently served by rail service. (b) Factors The final system plan shall be based upon due consideration of all factors relevant to the realization of the goals set forth in subsection (a) of this section. Such factors include the need for and the cost of rehabilitation and modernization of track, equipment, and other facilities; methods of achieving economies in the cost of rail operations in the region; means of achieving rationalization of rail services and the rail service system in the region; marketing studies; the impact on railroad employees; consumer needs; traffic analyses; financial studies; and any other factors identified by the Association under section 712(b) 1 1 section 714(a) of this title (c) Designations The final system plan shall designate (1) which rail properties of railroads in reorganization in the region or of railroads leased, operated, or controlled by any railroad in reorganization in the region (A) shall be transferred to the Corporation: Provided (B) shall be offered for sale to a profitable railroad operating in the region and, if such offer is accepted, operated by such railroad; the plan shall designate what additions shall be made to the designation under subparagraph (A) of this paragraph and what alternative designations shall be made under this paragraph in the event such profitable railroad fails to accept such offer; (C) shall be purchased, leased, or otherwise acquired from the Corporation by the National Railroad Passenger Corporation in accordance with the exercise of its option under section 791(d) of this title (D) may be purchased or leased from the Corporation by (i) a State or a local or regional transportation authority to meet the needs of commuter and intercity rail passenger service, or (ii) the National Railroad Passenger Corporation to meet the needs of improved rail passenger service over intercity routes, other than properties designated pursuant to subparagraph (C) of this paragraph; and (E) if not otherwise required to be operated by the Corporation, a government entity, or a responsible person, are suitable for use for other public purposes, including highways, other forms of transportation, conservation, energy transmission, education or health care facilities, or recreation. In carrying out this subparagraph, the Association shall solicit the views and recommendations of the Secretary, the Secretary of the Interior, the Administrator of the Environmental Protection Agency, and other agencies of the Federal Government and of the States and political subdivisions thereof within the region, and the general public; and (2) which rail properties of profitable railroads operating in the region may be offered for sale to the Corporation or to other profitable railroads operating in the region subject to paragraphs (3) and (4) of subsection (d) of this section. Any rail properties designated to be offered for sale to the Corporation may be sold instead to a subsidiary of the Corporation. (d) Transfers All transfers or conveyances pursuant to the final system plan shall be made in accordance with, and subject to, the following principles: (1) All rail properties to be transferred to the Corporation or any subsidiary thereof by a profitable railroad, by trustees of a railroad in reorganization, or by any railroad leased, operated, or controlled by a railroad in reorganization in the region, shall be transferred in exchange for stock and other securities of the Corporation or any subsidiary thereof (including obligations of the Association) and the other benefits accruing to such railroad by reason of such transfer. (2) All rail properties to be conveyed to a profitable railroad operating in the region by trustees of a railroad in reorganization, or by any railroad leased, operated, or controlled by a railroad in reorganization in the region, shall be conveyed in exchange for compensation from the profitable railroad. (3) Notwithstanding any other provision of this chapter, no acquisition under this chapter shall be made by any profitable railroad operating in the region without a determination with respect to each such transaction and all such transactions cumulatively (A) by the Association, upon adoption and release of the preliminary system plan, that such acquisition or acquisitions will not materially impair the profitability of any other profitable railroad operating in the region or of the Corporation, and (B) by the Commission, which shall be made within 90 days after adoption and release by the Association of the preliminary system plan, that such acquisition or acquisitions will be in full accord and comply with the provisions and standards of subchapter III 1 April 11, 1975 section 717(b)(2) of this title section 717(c) of this title (4) Where the final system plan designates specified rail properties of a railroad in reorganization in the region, or of a railroad leased, operated, or controlled by a railroad in reorganization in the region, to be offered for sale to and operated by a profitable railroad operating in the region, such designation shall terminate 7 days after February 5, 1976 (5) All properties (A) transferred by the Corporation pursuant to subsection (c)(1)(C) of this section and section 791(d) of this title (B) transferred by the Corporation to any State (or local or regional transportation authority), pursuant to subsection (c)(1)(D) of this section, or (C) transferred by the Corporation to any State, local or regional transportation authority, or the National Railroad Passenger Corporation, within 3 years after the date of conveyance, pursuant to section 743(b)(1) of this title shall be transferred at a value related to the value received from the Corporation pursuant to the final system plan for the transfer to such Corporation of such properties. The value of any such properties, which are transferred pursuant to subparagraph (B) or (C) of this paragraph, shall be adjusted to reflect the value attributable to any applicable maintenance and improvement provided by the Corporation (to the extent the Corporation has not been released from the obligation to pay for such improvements) and the cost to the Corporation of transferring such properties. The Corporation, its Board of Directors, and its individual directors shall not be liable to any party, for money damages or in any other manner, solely by reason of the fact that the Corporation transferred property pursuant to section 743 of this title section 743(c)(2) of this title (6) Notwithstanding any statement to the contrary in the final system plan, a State (or a local or regional transportation authority) shall not be required to deliver to the Corporation a firm commitment to acquire rail properties designated to such State or authority prior to 7 days after February 5, 1976 (7) Notwithstanding any contrary provision in the options conveyed to the Corporation by railroads in reorganization, or railroads leased, operated, or controlled by a railroad in reorganization, with respect to the acquisition by the Corporation pursuant to the final system plan, on behalf of a State (or a local or regional transportation authority) of rail properties designated under subsection (c)(1)(D) of this section, such options shall not be deemed to have expired prior to 7 days after September 30, 1976 (e) Corporation features The final system plan shall set forth (1) pro forma earnings for the Corporation, as reasonably projected and considering the additions or changes in the designation of rail properties to be operated by the Corporation which may be made under subsection (d)(4) of this section; (2) the capital structure of the Corporation, based on the pro forma earnings of the Corporation as set forth, including such debt capitalization as shall be reasonably deemed to conform to the requirements of the public interest with respect to railroad debt securities, including the adequacy of coverage of fixed charges; and (3) the manner in which employee stock ownership plans may, to the extent practicable, be utilized for meeting the capitalization requirements of the Corporation, taking into account (A) the relative cost savings compared to conventional methods of corporate finance; (B) the labor cost savings; (C) the potential for minimizing strikes and producing more harmonious relations between labor organizations and railway management; (D) the projected employee dividend incomes; (E) the impact on quality of service and prices to railway users; and (F) the promotion of the objectives of this chapter of creating a financially self-sustaining railway system in the region which also meets the service needs of the region and the Nation. (f) Value The final system plan shall designate the value of all rail properties to be transferred under the final system plan and the value of the securities and other benefits to be received for transferring those rail properties to the Corporation in accordance with the final system plan. (g) Other provisions The final system plan may recommend arrangements among various railroads for joint use or operation of rail properties on a shared ownership, cooperative, pooled, or condominium-type basis, subject to such terms and conditions as may be specified in the final system plan. The final system plan shall also make such designations as are determined to be necessary in accordance with the provisions of section 762 or 763 1 (h) Obligational authority The final system plan shall recommend the amount of obligations of the Association which are necessary to enable it to implement the final system plan. (i) Terms and conditions for securities The final system plan may include terms and conditions for any securities to be issued by the Corporation in exchange for the conveyance of rail properties under the final system plan which in the judgement of the Association will minimize any actual or potential debt burden on the Corporation. Any such terms and conditions for securities of the Corporation which purport to directly obligate the Association shall not become effective without affirmative approval, with or without modification by a joint resolution of the Congress. (j) Additional properties deemed designated Any rail properties over which rail service was being provided as of February 5, 1976 ( Pub. L. 93236, title II,  206 Jan. 2, 1974 87 Stat. 994 Pub. L. 945,  2(b) Feb. 28, 1975 89 Stat. 7 Pub. L. 94210, title VI,  607(e) o Feb. 5, 1976 90 Stat. 9698 Pub. L. 94436 Sept. 30, 1976 90 Stat. 1398 Pub. L. 94555, title II,  202(a) Oct. 19, 1976 90 Stat. 2616 Pub. L. 95611,  4(a) Nov. 8, 1978 92 Stat. 3090  Editorial Notes  References in Text Clean Air Act Amendments of 1970, referred to in subsec. (a)(6), mean Pub. L. 91604 Dec. 31, 1970 84 Stat. 1676 section 7401 of Title 42 Section 712(b) of this title section 712(c) of this title Pub. L. 9735, title XI,  1148(a) Aug. 13, 1981 95 Stat. 674 Section 714 of this title Subchapter III of chapter 113 of title 49, referred to in subsec. (d)(3), was omitted in the general amendment of subtitle IV of Title 49, Transportation, by Pub. L. 10488, title I,  102(a) Dec. 29, 1995 109 Stat. 804 49 U.S.C. 5 Pub. L. 95473,  3(b) Oct. 17, 1978 92 Stat. 1446 Sections 762 and 763 of this title, referred to in subsec. (g), were repealed by Pub. L. 94210, title VIII,  806 Feb. 5, 1976 90 Stat. 143 Apr. 1, 1978 Amendments 1978Subsec. (d)(5)(C). Pub. L. 95611 1976Subsec. (c)(1)(A). Pub. L. 94210,  607(g) Subsec. (c)(1)(B). Pub. L. 94210,  607(f) Subsec. (c)(1)(D). Pub. L. 94210,  607(j) Subsec. (c)(2). Pub. L. 94210,  607(h) Subsec. (d)(1). Pub. L. 94210,  607(i) Subsec. (d)(3). Pub. L. 94210,  607(e) Subsec. (d)(4). Pub. L. 94210,  607 o February 5, 1976 Subsec. (d)(5). Pub. L. 94555,  202(a) Pub. L. 94436,  2 section 743 of this title Pub. L. 94210,  807 Subsec. (d)(6). Pub. L. 94210,  607(p) Subsec. (d)(7). Pub. L. 94555,  202(c) Pub. L. 94436,  4 Subsec. (j). Pub. L. 94210,  607(q) 1975Subsec. (a)(1). Pub. L. 945 Statutory Notes and Related Subsidiaries Effective Date of 1978 Amendment Pub. L. 95611,  4(b) Nov. 8, 1978 92 Stat. 3090 The amendment made by this Act [probably meaning this section 4, which amended section 716 of this title January 2, 1974 Effective Date of 1976 Amendment Amendment by Pub. L. 94555 Oct. 1, 1976 section 303 of Pub. L. 94555 section 702 of this title  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title Applicability of National Environmental Policy Act Application of National Environmental Policy Act to actions of Commission not affected by title VI of Pub. L. 94210 section 619 of Pub. L. 94210 section 791 of this title  717. Adoption of final system plan (a) Preliminary system plan (1) Within 420 days after January 2, 1974 (2) The Office is authorized and directed to hold public hearings on the preliminary system plan and to make available to the Association a summary and analysis of the evidence received in the course of such proceedings, together with its critique and evaluation of the preliminary system plan, not later than 60 days after the date of release of such plan. The Office is authorized to hold public hearings on any supplement to the preliminary system plan and to make available to the Association a summary and analysis of the evidence received in the course of such proceedings, together with its critique and evaluation of such supplement, not later than 30 days after the release of such supplement. (b) Approval (1) Within 120 days after January 2, 1974 section 715(d)(1) of this title (2) Whenever it has been finally determined pursuant to the procedures of paragraph (1) of this subsection, that the reorganization of a railroad subject to reorganization under section 77 of the Bankruptcy Act shall not be proceeded with pursuant to this chapter, the court having jurisdiction over such railroad may, upon a petition which is filed within 10 days after February 28, 1975 (c) Adoption Within 540 days after January 2, 1974 section 716 of this title (d) Review of Commission Within 30 days following the adoption of the final system plan by the Association under subsection (c) of this section and the submission of such plan to Congress under section 718(a) of this title ( Pub. L. 93236, title II,  207 Jan. 2, 1974 87 Stat. 998 Pub. L. 93488,  1(a) Oct. 26, 1974 88 Stat. 1464 Pub. L. 945,  4 Feb. 28, 1975 89 Stat. 7  Editorial Notes  References in Text Section 77 of the Bankruptcy Act, referred to in subsec. (b)(1), (2), was classified to section 205 of former Title 11, Bankruptcy. The Bankruptcy Act ( act July 1, 1898, ch. 541 30 Stat. 544 Oct. 1, 1979 Pub. L. 95598 Nov. 6, 1978 92 Stat. 2682 Section 715(d)(1) of this title Pub. L. 94210 Pub. L. 95473,  4(b) Oct. 17, 1978 92 Stat. 1466 Amendments 1975Subsec. (a)(2). Pub. L. 945,  4(b) Subsec. (b). Pub. L. 945,  4(a) 1974Subsec. (a)(1). Pub. L. 93488,  1(a) Subsec. (c). Pub. L. 93488,  1(b) Statutory Notes and Related Subsidiaries  Abolition of Special Court, Regional Rail Reorganization Act of 1973, and Transfer of Functions Special court abolished and all jurisdiction and functions transferred to United States District Court for District of Columbia, see section 719(b)(2) of this title  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title  718. Review by Congress (a) General The Board of Directors of the Association shall deliver the final system plan adopted by the Association to both Houses of Congress and to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate. The final system plan shall be deemed approved at the end of the first period of 60 calendar days of continuous session of Congress after such date of transmittal unless either the House of Representatives or the Senate passes a resolution during such period stating that it does not favor the final system plan. (b) Revised plan If either the House or the Senate passes a resolution of disapproval under subsection (a) of this section, the Association, with the cooperation and assistance of the Secretary and the Office, shall prepare, determine, and adopt a revised final system plan. Each such revised plan shall be submitted to Congress for review pursuant to subsection (a) of this section. (c) Computation For purposes of this section (1) continuity of session of Congress is broken only by an adjournment sine die; and (2) the days on which either House is not in session because of an adjournment of more than 3 days to a day certain are excluded in the computation of the 60-day period. (d) Additions (1) The supplemental report, dated September 18, 1975 December 1, 1975 (2) The Association may, upon petition of any State, modify the final system plan to make further designations with respect to rail properties of railroads in reorganization in the region designated for transfer to the Corporation under such plan, if such designations (A) are likely to result in improved rail service on such rail properties and connecting rail properties, and (B) would not materially impair the profitability of the Corporation. Such designations, including designations of such rail properties to a State, a profitable railroad, or a responsible person, may be made at any time prior to delivery of the final system plan to the special court under section 719(c) of this title (3) (A) Within 20 days after February 5, 1976 (i) achieve the efficient implementation of the final system plan, or (ii) provide for the offer to profitable railroads of rail properties designated in the final system plan to the Corporation, if such properties are not essential in the operation of other rail properties of the Corporation but are or would be integrally related to the operation of rail properties of (or which are offered pursuant to the final system plan to) such profitable railroad, or (iii) provide for the designation of additional rail properties to the Corporation or to a subsidiary thereof to enable the Corporation to serve efficiently a line of railroad designated to the Corporation in the final system plan if such line does not connect with any other line of railroad so designated to the Corporation or if such line would be served more efficiently as a consequence of such designation. Any designation to a profitable railroad pursuant to this paragraph shall comply with the second sentence of section 716(d)(4) of this title February 5, 1976 (B) If a line of railroad or any segment thereof is designated for rail service in the final system plan, no designation may be made by the Association pursuant to this paragraph which would result in such line or segment not being so designated. Any designations made pursuant to this paragraph shall be treated for all purposes as if they had been included in the final system plan adopted by the Association and reviewed by the Congress. The final system plan shall for all purposes be deemed to be approved as amended by such designations. (C) Any designations made pursuant to this paragraph shall not be subject to review by any court. (D) Any labor agreements entered into under section 778 1 1 ( Pub. L. 93236, title II,  208 Jan. 2, 1974 87 Stat. 999 Pub. L. 94210, title VI,  601(e) Feb. 5, 1976 90 Stat. 84 Feb. 4, 1977 Mar. 25, 1980  Editorial Notes  References in Text Section 778 of this title Pub. L. 9735, title XI,  1144(a)(1) Aug. 13, 1981 95 Stat. 669 Amendments 1976Subsec. (d). Pub. L. 94210 Statutory Notes and Related Subsidiaries  Change of Name Committee on Interstate and Foreign Commerce of the House of Representatives changed to Committee on Energy and Commerce immediately prior to noon on Jan. 3, 1981 Mar. 25, 1980 section 1(c)(1) of Pub. L. 10414 section 21 of Title 2 Committee on Commerce of the Senate abolished and replaced by Committee on Commerce, Science, and Transportation of the Senate, effective Feb. 11, 1977 Feb. 4, 1977  Abolition of Special Court, Regional Rail Reorganization Act of 1973, and Transfer of Functions Special court abolished and all jurisdiction and functions transferred to United States District Court for District of Columbia, see section 719(b)(2) of this title  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title Applicability of National Environmental Policy Act Application of National Environmental Policy Act to actions of Commission not affected by title VI of Pub. L. 94210 section 619 of Pub. L. 94210 section 791 of this title  719. Judicial review (a) General Notwithstanding any other provision of law, the final system plan which is adopted by the Association and which becomes effective after review by the Congress is not subject to review by any court except in accordance with this section. After the final system plan becomes effective under section 718 of this title (b) Special court (1) Within 30 days after January 2, 1974 section 1407 of title 28 section 745 of this title section 745 of this title (2) The special court referred to in paragraph (1) of this subsection is abolished effective 90 days after October 19, 1996 (A) Subsections (c), (e)(1), (e)(2), (f) and (g) of this section. (B) Sections 712(d)(3), (g), 717(a)(1), (b)(1), (b)(2), 718(d)(2), 741(e)(2), (g), (k)(3), (k)(15), 743(a)(1), (a)(2), (b)(1), (b)(6)(A), (c)(1), (c)(2), (c)(3), (c)(4), (c)(5), 744(a)(1)(B), (i)(3), 745(c), (d)(1), (d)(2), (d)(3), (d)(4), (d)(5), (d)(8), (e), (f)(1), (f)(2)(B), (f)(2)(D), (f)(2)(E), (f)(3), 746(a), (b), (c)(4), and 791(b)(3), (c) of this title). (C) Sections 1105(a) and 1115 of this title. (D) Sections 1323(2)(A)(iii), (2)(B), (2)(C), (3)(C), (3)(E), (4)(A) and 1324(b) of this title. (E)  Section 24907(b) of title 49 (F) Any other Federal law (other than this subsection and section 605 of the Federal Courts Improvement Act of 1996), Executive order, rule, regulation, delegation of authority, or document of or relating to the special court as previously established under paragraph (1) of this subsection. (c) Delivery of plan to special court Within 90 days after its effective date, the Association shall deliver a certified copy of the final system plan to the special court and shall certify to the special court (1) which rail properties of the respective railroads in reorganization in the region and of any person leased, operated, or controlled by such railroads in reorganization are to be transferred to the Corporation, or any subsidiary thereof, in accordance with the final system plan; (2) which rail properties of the respective railroads in reorganization in the region or person leased, 1 1 (3) the amount, terms, and value of the securities of the Corporation or any subsidiary thereof (including any certificates of value of the Association) to be exchanged for those rail properties to be transferred to the Corporation or any subsidiary thereof pursuant to the final system plan, and as indicated in paragraph (1) of this subsection; and (4) that the transfer of rail properties in exchange for securities of the Corporation or any subsidiary thereof (including any certificates of value of the Association) and other benefits is fair and equitable and in the public interest. Notwithstanding any other provisions of this subsection and subsection (d) of this section, the time for the delivery of a certified copy of the final system plan shall be March 12, 1976 February 17, 1976 section 743(a) of this title (d) Bankruptcy courts Within 90 days after its effective date, the Association shall deliver a certified copy of the final system plan to each district court of the United States or any other court having jurisdiction over a railroad in reorganization in the region and shall certify to each such court (1) which rail properties of that railroad in reorganization are to be transferred to the Corporation or any subsidiary thereof under the final system plan; and (2) which rail properties of that railroad in reorganization, if any, are to be conveyed to profitable railroads operating in the region, under the final system plan. (e) Original and exclusive jurisdiction (1) Notwithstanding any other provision of law, any civil action (A) for injunctive or other relief against the Association from the enforcement, operation, or execution of this chapter or any provision thereof, or from any action taken by the Association pursuant to authority conferred or purportedly conferred under this chapter; (B) challenging the constitutionality of this chapter or any provision thereof; (C) challenging the legality of any action of the Association, or any failure of the Association to take any action, pursuant to authority conferred or purportedly conferred under this chapter; (D) to obtain, inspect, copy, or review any document in the possession or control of the Association that would be discoverable in litigation pursuant to section 743(c) of this title (E) brought after a conveyance, pursuant to section 743(b) of this title (F) with respect to continuing reorganization and supplemental transactions, in accordance with section 745 of this title shall be within the original and exclusive jurisdiction of the special court. The special court shall not hear or determine any such action prior to the date of conveyance, pursuant to section 743(b)(1) of this title (2) The original and exclusive jurisdiction of the special court shall include any action, whether filed by any interested person or initiated by the special court itself, to interpret, alter, amend, modify, or implement any of the orders entered by such court pursuant to section 743(b) of this title (3) 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. (f) Disposition of cash deposits Whenever the compensation which is deposited with the special court under section 743(a) of this title section 743(c) of this title section 743(c)(4) of this title section 743(a) of this title section 743(c)(4) of this title section 743(b) of this title section 743(c) of this title (g) Stay of court proceedings The special court may stay or enjoin any action or proceeding in any State court or in any court of the United States other than the Supreme Court or Court of Appeals for the District of Columbia Circuit if such action or proceeding is contrary to any provision of this chapter, impairs the effective implementation of this chapter, or interferes with the execution of any order of the special court pursuant to this chapter. ( Pub. L. 93236, title II,  209 Jan. 2, 1974 87 Stat. 999 Pub. L. 94210, title VI l Feb. 5, 1976 90 Stat. 86 Pub. L. 94216,  2 Feb. 17, 1976 90 Stat. 191 Pub. L. 95199,  3 Nov. 23, 1977 91 Stat. 1423 Pub. L. 100352,  6(d) June 27, 1988 102 Stat. 663 Pub. L. 104317, title VI,  605(a) Oct. 19, 1996 110 Stat. 3858  Editorial Notes  References in Text Section 77 of the Bankruptcy Act, referred to in subsec. (b)(1), was classified to section 205 of former Title 11, Bankruptcy. The Bankruptcy Act ( act July 1, 1898, ch. 541 30 Stat. 544 Oct. 1, 1979 Pub. L. 95598 Nov. 6, 1978 92 Stat. 2682 Section 605 of the Federal Courts Improvement Act of 1996, referred to in subsec. (b)(2)(F), is section 605 of Pub. L. 104317 Oct. 19, 1996 110 Stat. 3858 Codification Amendment of subsec. (c)(2) by section 607(s) of Pub. L. 94210 Amendments 1996Subsec. (b). Pub. L. 104317,  605(a) Subsec. (e)(3). Pub. L. 104317,  605(b)(1) Subsec. (g). Pub. L. 104317,  605(c)(1)(A) Subsec. (h). Pub. L. 104317,  605(c)(1)(B) 1988Subsec. (e)(3). Pub. L. 100352 section 1253 of title 28 1977Subsec. (h). Pub. L. 95199 1976Subsec. (b). Pub. L. 94210,  602(a) section 745 of this title Subsec. (c). Pub. L. 94210,  607(i) l March 12, 1976 Subsec. (d)(1). Pub. L. 94210,  607(i) Subsecs. (e) to (g). Pub. L. 94210,  602(b) Statutory Notes and Related Subsidiaries Effective Date of 1996 Amendment Pub. L. 104317, title VI,  605(e) Oct. 19, 1996 110 Stat. 3859 The amendments made by subsections (b) and (c) of this section [amending this section and sections 743, 745, 1104, and 1105 of this title] shall take effect 90 days after the date of enactment of this Act [ Oct. 19, 1996 Effective Date of 1988 Amendment Amendment by Pub. L. 100352 June 27, 1988 section 7 of Pub. L. 100352 section 1254 of Title 28  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title Cases Pending in Special Court Pub. L. 104317, title VI,  605(d) Oct. 19, 1996 110 Stat. 3859  Effective 90 days after the date of enactment of this Act [ Oct. 19, 1996 45 U.S.C. 719(b) (1) a petition for writ of certiorari has been filed before the date on which the special court is abolished; or (2) the time for filing a petition for writ of certiorari has not expired before that date. Applicability of National Environmental Policy Act Application of National Environmental Policy Act to actions of Commission not affected by title VI of Pub. L. 94210 section 619 of Pub. L. 94210 section 791 of this title Court Rules and Judicial Documents Rules of the Special Court, Regional Rail Reorganization Act of 1973 Rules of the Special Court, Regional Rail Reorganization Act of 1973, formerly set out under this section, were omitted because the Special Court was abolished effective 90 days after Oct. 19, 1996  720. Obligations of Association (a) General To carry out the purposes of this chapter, the Association is authorized to issue bonds, debentures, trust certificates, securities, or other obligations (herein cited as obligations) in accordance with this section. Such obligations shall have such maturities and bear such rate or rates of interest as are determined by the Association with the approval of the Secretary of the Treasury. Such obligations shall be redeemable at the option of the Association prior to maturity in the manner stipulated in each such obligation, and may be purchased by the Association in the open market at a price which is reasonable. (b) Maximum obligational authority The aggregate principal amount (exclusive of interest or additions to principal on account of accrual of interest) of obligations issued by the Association under this section which may be outstanding at any one time shall not exceed $395,000,000. No obligations or proceeds thereof shall be issued or made available after February 5, 1976 (1) to meet existing or potential commitments for loans under section 721 of this title January 1, 1976 (2) for the purpose of providing loans pursuant to subsections (g) and (h) of section 721 of this title (c) Guarantees The Secretary shall guarantee the payment of principal and interest on all obligations issued by the Association in accordance with this chapter and which the Association requests be guaranteed. All guarantees entered into by the Secretary under this section shall constitute general obligations of the United States for the payment of which its full faith and credit are pledged. (d) Validity No obligation issued by the Association under this section shall be terminated, canceled, or otherwise revoked, except in accordance with lawful terms and conditions prescribed by the Association. Such an obligation shall be conclusive evidence that it is in compliance with this section, has been approved, and is legal as to principal, interest, and other terms. An obligation of the Association shall be valid and incontestable in the hands of a holder, except as to fraud, duress, mutual mistake of fact, or material misrepresentation by or involving such holder. (e) The Secretary of the Treasury If at any time the moneys available to the Secretary are insufficient to enable him to discharge his responsibilities under subsection (c) of this section or under subsection (a) of section 746 of this title (f) Authorization for appropriations There are hereby authorized to be appropriated to the Secretary such amounts as are necessary to discharge the obligations of the United States arising under this section. (g) Lawful investments All obligations issued by the Association shall be lawful investments and may be accepted as security for all fiduciary, trust, and public funds, the investment or deposit of which shall be under the authority and control of the United States or any officer or officers thereof. All such obligations issued pursuant to this section shall be exempt securities within the meaning of laws administered by the Securities and Exchange Commission. ( Pub. L. 93236, title II,  210 Jan. 2, 1974 87 Stat. 1000 Pub. L. 94210, title VI Feb. 5, 1976 90 Stat. 88 Pub. L. 94555, title II,  203(e) Oct. 19, 1976 90 Stat. 2620 Pub. L. 96448, title VII,  703(f)(3) Oct. 14, 1980 94 Stat. 1965  Editorial Notes Codification In subsec. (e), chapter 31 of title 31 and such chapter substituted for the Second Liberty Bond Act, as amended and such Act, respectively, on authority of Pub. L. 97258,  4(b) Sept. 13, 1982 96 Stat. 1067 Amendments 1980Subsec. (e). Pub. L. 96448 section 746 of this title 1976Subsec. (b). Pub. L. 94555 Pub. L. 94210,  604 Feb. 5, 1976 Subsec. (c). Pub. L. 94210,  607(k) Statutory Notes and Related Subsidiaries Effective Date of 1980 Amendment Amendment by Pub. L. 96448 Oct. 1, 1980 section 710(a) of Pub. L. 96448 section 1170 of Title 11 Effective Date of 1976 Amendment Amendment by Pub. L. 94555 Oct. 1, 1976 section 303 of Pub. L. 94555 section 702 of this title  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title Applicability of National Environmental Policy Act Application of National Environmental Policy Act to actions of Commission not affected by title VI of Pub. L. 94210 section 619 of Pub. L. 94210 section 791 of this title  721. Loans (a) General The Association is authorized, in accordance with the provisions of this section and such rules and regulations as it shall prescribe, to make loans to the Corporation, the National Railroad Passenger Corporation, and other railroads (including a railroad in reorganization which has been found to be reorganizable under section 77 of the Bankruptcy Act pursuant to section 717(b) of this title 1 1 (b) Applications Each application for such a loan shall be made in writing to the Association in such form and with such content and other submissions as the Association shall prescribe to protect reasonably the interests of the United States. The Association shall publish a notice of the receipt of each such application in the Federal Register and shall afford interested persons an opportunity to comment thereon. (c) Terms and conditions Each loan shall be extended in such form, under such terms and conditions, and pursuant to such regulations as the Association deems appropriate. Such loan shall bear interest at a rate not less than the greater of a rate determined by the Secretary of the Treasury taking into consideration (1) the rate prevailing in the private market for similar loans as determined by the Secretary of the Treasury, or (2) the current average yield on outstanding marketable obligations of the Association with remaining periods of maturity comparable to the average maturities of such loans, plus such additional charge, if any, toward covering costs of the Association as the Association may determine to be consistent with the purposes of this chapter. (d) Modifications The Association is authorized to approve any modification of any provision of a loan under this section, including the rate of interest, time of payment of interest or principal, security, or any other term or condition, upon agreement of the recipient of the loan and upon a finding by the Association that such modification is equitable and necessary or appropriate to achieve the policy declared in subsection (f) of this section. Notwithstanding any other provision of this section, in the case of a loan made under subsection (a) of this section to a railroad in the region, the Association is not required to make the findings with respect to subsections (e)(3) and (f) and may, upon the request of such railroad (1) continue to make advances to such railroad pursuant to such loan, up to the total principal provided, as of November 8, 1978 (2) increase the principal amount of such loan to such railroad, in an amount not to exceed $7,500,000, only if the Association makes the finding referred to in paragraph (1)(B) of this subsection and determines that such railroad is making a good faith effort to establish an employee stock ownership plan for review and approval by the Association. Any such approval shall be conditioned upon a written commitment that by December 31, 1980 The Association may not take any action pursuant to the preceding sentence of this subsection after December 31, 1981 (e) Prerequisites The Association shall make a finding in writing, before making a loan to any applicant under this section, that (1) the loan is necessary to achieve the goals of this chapter or to prevent insolvency; (2) it is satisfied that the business affairs of the applicant will be conducted in a reasonable and prudent manner; and (3) the applicant has offered such security as the Association deems necessary to protect reasonably the interests of the United States. (f) Policy It is the intent of Congress that loans made under this section shall be made on terms and conditions which furnish reasonable assurance that the Corporation or the railroads to which such loans are granted will be able to repay them within the time fixed and that the goals of this chapter are reasonably likely to be achieved. (g) Pre-conveyance loans to Corporation During the period between the effective date of the final system plan and the date of the conveyance of rail properties pursuant to section 743(b) of this title (1) the most favorable terms and conditions for assuring timely repayment and security as may then be reasonably available, and (2) the requirement that any loan to the Corporation under this subsection be refinanced immediately out of the proceeds of the first sale by the issuance of debentures under section 726 of this title In order to assure that necessary funds are available to the Corporation for implementation of the final system plan, the Corporation is authorized to accept such loans as may be approved by the Association under this subsection, and any such acceptance shall be deemed for all purposes to constitute a reasonable and prudent business judgment in compliance with any fiduciary obligations imposed on the Corporation or its directors. For purposes of this subsection, the term Corporation includes a subsidiary of the Corporation. (h) Loans for payment of obligations (1) (A) The Association is authorized, subject to the limitations set forth in section 720(b) of this title section 743(b)(1) of this title (i) amounts claimed by suppliers (including private car lines) of materials or services utilized or purchased in current rail operations; (ii) claims by shippers arising from current rail services; (iii) payments to railroads for settlement of current interline accounts and all other current accounts and obligations; (iv) claims of employees arising under the collective-bargaining agreements of the railroads in reorganization in the region and subject to section 153 of this title (v) claims of all employees or their personal representatives for personal injuries or death and subject to the provisions of Employers Liability Act ( 45 U.S.C. 5160 (vi) amounts required for adequate funding of accrued pension benefits existing at the time of a conveyance or discontinuance of service under employee pension benefit plans described in section 775(a) 2 2 (vii) amounts required to provide adequate funding for payment, when due, of claims deriving from membership in any employee voluntary relief plan which provides benefits to its members and their beneficiaries in the event of sickness, accident, disability, or death, and to which both a railroad in reorganization and employee members have made contributions; (viii) amounts required to provide adequate funding for continuation, by the Corporation, of medical and life insurance coverage and benefits for retired employees of railroads in reorganization as required and limited by section 743(b)(6)(B) of this title 3 3 (ix) amounts required to discharge the obligations of each such railroad in reorganization to nonemployee claimants for personal injuries suffered during the period such railroad has been in reorganization; and (x) amounts required to discharge any obligation of a railroad in reorganization in the region to the National Railroad Passenger Corporation, arising out of a contract between such railroad in reorganization and such Corporation under which such railroad in reorganization is required to provide a suitable rail passenger station, in any case in which such railroad in reorganization sold a rail passenger station pursuant to a judicial order of condemnation prior to April 1, 1976 (B) The Association shall make a loan pursuant to subparagraph (A) of this paragraph if, notwithstanding any other requirement of this subsection, it finds that the Corpration, 4 4 2 (i) provision for the payment of such obligation was not included in the financial projections of the final system plan; (ii) such obligation arose from rail operations prior to the date of conveyance of rail properties pursuant to section 743(b)(1) of this title October 19, 1976 (iii) the Corporation, the National Railroad Passenger Corporation, or a profitable railroad has advised the Association that the direct payment of such obligation by the Corporation, the National Railroad Passenger Corporation, or a profitable railroad is for services or materials, the furnishing of which served to avoid disruptions in ordinary business relationships prior to the date of conveyance of rail properties pursuant to section 743(b)(1) of this title (iv) the transferor is unable to pay such obligation within a reasonable period of time; and (v) with respect to loans made to the Corporation, the procedures to be followed by the Corporation, in seeking reimbursement from a railroad in reorganization in the region for an obligation paid on its behalf under this subsection, have been jointly agreed to by the Finance Committee and the Corporation, and the joint agreement (I) provides for the Corporation to receive reimbursement from the Association for any expenses incurred in seeking reimbursement from any railroad in reorganization in the region for an obligation paid on its behalf under this subsection; and (II) includes a stipulation of the exact procedures the Corporation shall undertake to avoid the finding, referred to in paragraph (6)(A)(i) of this subsection, that it has not exercised due diligence. (2) The trustees of each railroad in reorganization in the region shall attempt to negotiate agency agreements with the Corporation, the National Railroad Passenger Corporation, or a profitable railroad for the processing of all accounts receivable and accounts payable attributable to operations prior to the conveyance of property pursuant to section 743(b)(1) of this title October 19, 1976 October 19, 1976 (3) The Association may, not less than 30 days prior to the date of conveyance pursuant to section 743(b)(1) of this title (A) identifies that cash and other current assets of the estate of such railroad which shall be utilized to satisfy obligations of the estates identified in paragraph (1) of this subsection; and (B) provides for the application by the trustees of such railroads and their agents, consistent with the principles of reorganization under section 77 of the Bankruptcy Act and with the agency agreement specified in paragraph (2) of this subsection, of all such current assets, including cash available as of or subsequent to such date of conveyance, to the payment in the postconveyance period of the obligations of the estates identified in paragraph (1) of this subsection. (4) (A) Each obligation of a railroad in reorganization in the region which is paid with financial assistance under paragraph (1) of this subsection shall be processed, on behalf of such railroad, by the Corporation, the National Railroad Passenger Corporation, or a profitable railroad, whichever is appropriate. An obligation of a railroad in reorganization in the region shall be paid, on behalf of such railroad, by the Corporation, the National Railroad Passenger Corporation, or a profitable railroad, whichever is appropriate, if (i) such obligation is deemed by the Corporation, the National Railroad Passenger Corporation, or a profitable railroad, whichever is appropriate, to have been, on the date of conveyance of rail properties pursuant to section 743(b)(1) of this title (ii) such obligation accrues after such date of conveyance but as a result of rail operations conducted prior to such date, and the trustees of such railroad in reorganization acknowledge that it is an obligation of such railroad; or (iii) the district court of the United States having jurisdiction over such railroad in reorganization in the region approves such obligation as a valid administrative claim against such railroad; to the extent that payment is required under a loan agreement with the Association under such paragraph (1). (B) The Association shall resolve any disputes among the Corporation, the National Railroad Passenger Corporation, and a profitable railroad concerning which of them shall process and pay any particular obligation on behalf of a particular railroad in reorganization. (C) The Corporation, the National Railroad Passenger Corporation, or a profitable railroad shall have a direct claim, as a current expense of administration, for reimbursement from the estate of a railroad in reorganization in the region for all obligations of such estate (plus interest thereon) which are paid by the Corporation, the National Railroad Passenger Corporation, or a profitable railroad, as the case may be. The right of the Corporation or the National Railroad Passenger Corporation to receive reimbursement under this subparagraph from the estate of a railroad in reorganization in the region shall be reduced by the amount, if any, of loans, plus interest forgiven under paragraph (5) of this subsection. (D) (i) Except as provided in clause (ii) of this subparagraph, any funds held in an escrow account by a railroad in reorganization on October 19, 1976 (I) first, to the reduction of any outstanding loans to the Corporation by the Association, pursuant to paragraph (1) of this subsection, the proceeds of which were used to discharge obligations of such railroad in reorganization; (II) second, to the Association to the extent of any such loans which have been forgiven pursuant to paragraph (5) of this subsection; and (III) third, to the payment of any remaining obligations of such railroad in reorganization, in accordance with the provision of the agency agreement entered into pursuant to paragraph (2) of this subsection. (ii) The manner of disposition set forth in clause (i) of this subparagraph shall not apply with respect to a railroad in reorganization if the Secretary (I) determines that a different disposition of assets is necessary to carry out a reorganization plan of such railroad in reorganization, and that such different disposition adequately protects the interests of the United States, and (II) transmits his determination to the court having jurisdiction over the reorganization of such railroad. (5) (A) If, at any time, the Finance Committee of the Association determines that the failure of the Corporation to receive full reimbursement with interest from the estate of a railroad in reorganization in the region for any obligation of such estate paid pursuant to this subsection could adversely affect the fairness and equity of the transfers and conveyances pursuant to section 743(b)(1) of this title (B) The direct claim of the Association under this paragraph, and any direct claim authorized under paragraph (4) of this subsection, shall be prior to all other administrative claims of the estate of a railroad in reorganization, except claims arising under trustees certificates or from default on the payment of such certificates. The Corporation, the National Rail Passenger Corporation, or a profitable railroad, as the case may be, shall, with respect to each direct claim for reimbursement pursuant to paragraph (4) of this subsection, file a proof of administrative expense claim with the trustees of the railroad in reorganization from whom reimbursement is sought. Each such proof of administrative expense claim shall set forth, by category and amount, the obligations of such railroad in reorganization which were paid pursuant to such paragraph (4). (6) (A) Notwithstanding any other provision of this subsection, the Association shall forgive any loan made to the Corporation or the National Railroad Passenger Corporation pursuant to this subsection, plus accrued interest thereon, on the 3rd anniversary date of any such loan, except that the Association shall not forgive any loan or portion thereof, in accordance with this paragraph, if (i) the Finance Committee makes an affirmative finding, with respect to such loan or portion thereof, that (I) the Corporation has not exercised due diligence in executing the procedures adopted pursuant to paragraph (1)(B)(v) of this subsection, and (II) the failure of the Association to forgive such loan or portion thereof will not adversely affect the ability of the Corporation to become financially self-sustaining; (ii) the Finance Committee so directs the Association; and (iii) neither House of the Congress disapproves such affirmative finding and direction, in accordance with the following provisions of this paragraph. A copy of each such finding, the reasons therefor, and such direction made by the Finance Committee, together with the comments and recommendations thereon of the Board of Directors of the Association, shall be transmitted to the Congress by the Association within 10 days after the date on which the Finance Committee makes such finding and direction, or if not so transmitted, shall be transmitted by the Finance Committee. Each such finding and direction so transmitted shall become effective immediately, and shall remain in effect, unless, within the first period of 30 calendar days of continuous session of Congress after the date of transmittal of such finding and direction to Congress, either House of Congress disapproves such finding and direction in accordance with the procedures specified in section 688 of title 2 section 682(5) of title 2 (B) The Association shall have a direct claim, as a current expense of administration of the estate of the railroad in reorganization whose obligations were paid with the proceeds of loans forgiven under this paragraph, equal to the amount by which the loans, plus interest, have been forgiven. Such direct claim shall not be subject to any reduction by way of setoff, cross-claim, or counterclaim which the estate of such railroad in reorganization may be entitled to assert against the Corporation, the National Railroad Passenger Corporation, the Association, or the United States. The direct claim of the Association under this paragraph shall be prior to all other administrative claims of the estate of the railroad in reorganization, except claims arising under trustees certificates or from default on the payment of such certificates. (7) For purposes of this subsection, the term Corporation includes a subsidiary of the Corporation. ( Pub. L. 93236, title II,  211 Jan. 2, 1974 87 Stat. 1001 Pub. L. 945,  5 Feb. 28, 1975 89 Stat. 8 Pub. L. 94210, title VI,  606 Feb. 5, 1976 90 Stat. 92 Pub. L. 94555, title II Oct. 19, 1976 90 Stat. 2617 Pub. L. 95611,  3(a) Nov. 8, 1978 92 Stat. 3089 Pub. L. 9673, title II,  204(b) Sept. 29, 1979 93 Stat. 556 Pub. L. 96101,  23 Nov. 4, 1979 93 Stat. 746 Pub. L. 96448, title IV Oct. 14, 1980 94 Stat. 1948 Pub. L. 105178, title VII,  7203(b)(3) June 9, 1998 112 Stat. 477  Editorial Notes  References in Text Section 77 of the Bankruptcy Act, referred to in subsecs. (a) and (h)(3)(B), was classified to section 205 of former Title 11, Bankruptcy. The Bankruptcy Act ( act July 1, 1898, ch. 541 30 Stat. 544 Oct. 1, 1979 Pub. L. 95598 Nov. 6, 1978 92 Stat. 2682 Section 763 of this title Pub. L. 94210, title VIII,  806 Feb. 5, 1976 90 Stat. 143 Apr. 1, 1978 The Employers Liability Act ( 45 U.S.C. 5160 act Apr. 22, 1908, ch. 149 35 Stat. 65 section 51 of this title Sections 774 and 775 of this title, referred to in subsec. (h)(1)(A)(vi), (B), were repealed by Pub. L. 9735, title XI,  1144(a)(1) Aug. 13, 1981 95 Stat. 669 Codification In the closing par. of subsec. (h)(6)(A),  section 688 of title 2 section 682(5) of title 2 31 U.S.C. 1407 31 U.S.C. 1401(5) Amendments 1998Subsec. (i). Pub. L. 105178 1980Subsec. (d). Pub. L. 96448,  408 December 31, 1981 December 31, 1980 Subsec. (i). Pub. L. 96448,  407 1979Subsec. (d)(2). Pub. L. 96101 December 31, 1980 December 31, 1979 December 31, 1980 Subsec. (h)(1)(A)(viii). Pub. L. 9673,  204(b)(1) section 743(b)(6)(B) of this title section 743(b)(1) of this title Subsec. (h)(6). Pub. L. 9673,  204(b)(2)(A) 1978Subsec. (d). Pub. L. 95611 Dec. 31, 1979 1976Subsec. (g). Pub. L. 94210 Subsec. (h). Pub. L. 94210 Subsec. (h)(1). Pub. L. 94555,  203(a) section 153 of this title section 743(b)(6) of this title Oct. 19, 1976 Subsec. (h)(2). Pub. L. 94555,  203(b) section 743(b)(1) of this title Subsec. (h)(4)(D). Pub. L. 94555,  203(c) Subsec. (h)(5)(B). Pub. L. 94555,  203(d) Subsec. (h)(6)(A)(i). Pub. L. 94555,  220(a) Subsec. (i). Pub. L. 94210 1975Subsec. (a). Pub. L. 945,  5(a) Subsec. (e)(1). Pub. L. 945,  5(b) Subsec. (f). Pub. L. 945,  5(c) Statutory Notes and Related Subsidiaries Effective Date of 1980 Amendment Amendment by Pub. L. 96448 Oct. 1, 1980 section 710(a) of Pub. L. 96448 section 1170 of Title 11 Effective Date of 1979 Amendment Amendment by Pub. L. 9673 Nov. 4, 1978 section 501(b) of Pub. L. 9673 section 743 of this title Effective Date of 1976 Amendment Amendment by Pub. L. 94555 Oct. 1, 1976 section 303 of Pub. L. 94555 section 702 of this title  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title Applicability of National Environmental Policy Act Application of National Environmental Policy Act to actions of Commission not affected by title VI of Pub. L. 94210 section 619 of Pub. L. 94210 section 791 of this title  722. Records, audit, and examination (a) Records Each recipient of financial assistance under this subchapter, whether in the form of loans, obligations, or other arrangements, shall keep such records as the Association or the Secretary shall prescribe, including records which fully disclose the amount and disposition by such recipient of the proceeds of such assistance and such other records as will facilitate an effective audit. (b) Audit and examination The Association, the Secretary, and the Comptroller General of the United States, or any of their duly authorized representatives shall, until the expiration of 3 years after the implementation of the final system plan, have access for the purpose of audit and examination to any books, documents, papers, and records of such recipients which in the opinion of the Association, the Secretary, or the Comptroller General may be related or pertinent to the loans, obligations or other arrangements referred to in subsection (a) of this section. The Association or any of its duly authorized representatives shall, until any financial assistance received under this subchapter has been repaid to the Association, have access to any such materials which concern any matter that may bear upon (1) the ability of the recipient of such financial assistance to make repayment within the time fixed therefor; (2) the effectiveness with which the proceeds of such assistance is used; and (3) the implementation of the final system plan and the realization of the declaration of policy of this chapter. ( Pub. L. 93236, title II,  212 Jan. 2, 1974 87 Stat. 1002  Statutory Notes and Related Subsidiaries  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title  723. Emergency assistance pending implementation (a) Emergency assistance The Secretary is authorized, pending the implementation of the final system plan, to pay to the trustees of railroads in reorganization such sums as are necessary for the continued provision of essential transportation services by such railroads. Such payments shall be made by the Secretary upon such reasonable terms and conditions as the Secretary establishes, except that recipients must agree to maintain and provide service at a level no less than that in effect on January 2, 1974 section 725 of this title section 725(b) of this title (b) Authorization of appropriations There are authorized to be appropriated to the Secretary for carrying out this section such sums as are necessary, not to exceed $282,000,000, to remain available until expended. Of amounts authorized to be appropriated under this subsection, $50,000,000 shall be available solely to pay to the trustees of railroads in reorganization such sums as may be necessary to provide such railroads with amounts equal to revenues attributable to tariff increases proposed by such railroads and suspended by the Interstate Commerce Commission during the calendar year 1975, if the Secretary determines that such payments are necessary to carry out this section. ( Pub. L. 93236, title II,  213 Jan. 2, 1974 87 Stat. 1003 Pub. L. 945,  6 Feb. 28, 1975 89 Stat. 8  Editorial Notes Amendments 1975Subsec. (a). Pub. L. 945,  6(a) section 725 of this title section 725(b) of this title Subsec. (b). Pub. L. 945,  6(b) Statutory Notes and Related Subsidiaries  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  724. Authorization of appropriations (a) Secretary There are authorized to be appropriated to the Secretary for purposes of preparing the reports and exercising other functions to be performed by him under this chapter such sums as are necessary, not to exceed $12,500,000, to remain available until expended. There are authorized to be appropriated to the Secretary such sums as may be necessary to discharge the obligations of the United States arising under section 743(c)(5) of this title (b) Office There are authorized to be appropriated to the Commission for the use of the Office in carrying out its functions under this chapter such sums as are necessary, not to exceed $7,000,000, to remain available until expended. The budget for the Office shall be submitted by the Commission directly to the Congress and shall not be subject to review of any kind by any other agency or official of the United States. Moneys appropriated for the Office shall not be withheld by any agency or official of the United States or used by the Commission for any purpose other than the use of the Office. No part of any other moneys appropriated to the Commission shall be withheld by any other agency or official of the United States to offset any moneys appropriated pursuant to this subsection. (c) Association There are authorized to be appropriated to the Association for purposes of carrying out its administrative expenses under this chapter not to exceed $13,000,000 for the fiscal year ending September 30, 1982 September 30, 1983 ( Pub. L. 93236, title II,  214 Jan. 2, 1974 87 Stat. 1003 Pub. L. 93488,  1(c) Oct. 26, 1974 88 Stat. 1464 Pub. L. 94210, title VI,  607(m) Feb. 5, 1976 90 Stat. 97 Pub. L. 94436,  1 Sept. 30, 1976 90 Stat. 1398 Pub. L. 95199,  1 Nov. 23, 1977 91 Stat. 1423 Pub. L. 95611,  1 Nov. 8, 1978 92 Stat. 3089 Pub. L. 9673, title II,  201 Sept. 29, 1979 93 Stat. 555 Pub. L. 96448, title VII,  704 Oct. 14, 1980 94 Stat. 1965 Pub. L. 9735, title XI,  1151 Aug. 13, 1981 95 Stat. 676  Editorial Notes Amendments 1981Subsec. (c). Pub. L. 9735 Sept. 30, 1982 Sept. 30, 1981 1980Subsec. (c). Pub. L. 96448 Sept. 30, 1981 Sept. 30, 1980 1979Subsec. (c). Pub. L. 9673 Sept. 30, 1980 Sept. 30, 1979 1978Subsec. (c). Pub. L. 95611 Sept. 30, 1979 Sept. 30, 1978 Sept. 30, 1979 1977Subsec. (c). Pub. L. 95199 Sept. 30, 1978 Sept. 30, 1979 May 1, 1976 Sept. 30, 1977 Sept. 30, 1978 1976Subsec. (a). Pub. L. 94210,  607(n) section 743(c)(5) of this title Subsec. (b). Pub. L. 94210,  607(m)(1) Subsec. (c). Pub. L. 94436 May 1, 1976 Sept. 30, 1977 Sept. 30, 1978 Pub. L. 94210,  607(m)(2) Sept. 30, 1977 1974Subsec. (c). Pub. L. 93488 Statutory Notes and Related Subsidiaries Effective Date of 1981 Amendment Amendment by Pub. L. 9735 Aug. 13, 1981 section 1169 of Pub. L. 9735 section 1101 of this title Effective Date of 1980 Amendment Amendment by Pub. L. 96448 Oct. 1, 1980 section 710(a) of Pub. L. 96448 section 1170 of Title 11 Effective Date of 1979 Amendment Amendment by Pub. L. 9673 Oct. 1, 1979 section 501(a) of Pub. L. 9673  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title Applicability of National Environmental Policy Act Application of National Environmental Policy Act to actions of Commission not affected by title VI of Pub. L. 94210 section 619 of Pub. L. 94210 section 791 of this title  725. Interim agreements (a) Purposes Prior to the date upon which rail properties are conveyed to the Corporation under this chapter, the Secretary, with the approval of the Association, is authorized to enter into agreements with the trustees of the railroads in reorganization in the region (or railroads leased, operated, or controlled by railroads in reorganization) (1) to perform the program maintenance on designated rail properties of such railroads until the date rail properties are conveyed under this chapter; (2) to improve rail properties of such railroads; and (3) to acquire rail properties for lease or loan to any such railroads until the date such rail properties are conveyed under this chapter, and subsequently for conveyance pursuant to the final system plan, or to acquire interests in such rail properties owned by or leased to any such railroads or in purchase money obligations therefor. (b) Conditions Agreements pursuant to subsection (a) of this section shall contain such reasonable terms and conditions as the Secretary may prescribe. In addition, agreements under paragraphs (1) and (2) of subsection (a) of this section shall provide that (1) to the extent that physical condition is used as a basis for determining, under section 716(f) or 743(c) of this title, the value of properties subject to such an agreement and designated for transfer to the Corporation under the final system plan, the physical condition of the properties on the effective date of the agreement shall be used; and (2) in the event that property subject to the agreement is sold, leased, or transferred to an entity other than the Corporation, the trustees or railroad shall pay or assign to the Secretary that portion of the proceeds of such sale, lease, or transfer which reflects value attributable to the maintenance and improvement provided pursuant to the agreement. (c) Obligations Notwithstanding section 720(b) of this title section 720(a) of this title (d) Conveyance The Secretary may convey to the Corporation or any subsidiary thereof, with or without receipt of consideration, any property or interests acquired by, transferred to, or otherwise held by the Secretary pursuant to this section or section 723 of this title ( Pub. L. 93236, title II,  215 Jan. 2, 1974 87 Stat. 1004 Pub. L. 945,  7 Feb. 28, 1975 89 Stat. 8 Pub. L. 94210, title VI,  607(i) Feb. 5, 1976 90 Stat. 97  Editorial Notes Amendments 1976Subsec. (d). Pub. L. 94210 1975 Pub. L. 945 section 723 of this title Statutory Notes and Related Subsidiaries  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title Applicability of National Environmental Policy Act Application of National Environmental Policy Act to actions of Commission not affected by title VI of Pub. L. 94210 section 619 of Pub. L. 94210 section 791 of this title  726. Debentures and series A preferred stock (a) General The Association is authorized, in accordance with the provisions of this section, and such rules and regulations as it may prescribe, to invest from time to time in the securities of the Corporation by purchasing (1) up to $1,000,000,000 of debentures issued by the Corporation, and (2) after the acquisition of such debentures, up to $2,629,000,000 of the series A preferred stock of the Corporation. (b) Purposes and procedure for investment (1) The Association is authorized to purchase debentures and, thereafter, series A preferred stock of the Corporation at such times and in such amounts as may be required and requested by the Corporation in accordance with the terms and conditions governing such purchases (which shall be prescribed by the Association), to provide (A) for the modernization, rehabilitation and maintenance of rail properties of the Corporation; (B) for the acquisition of equipment and other capital needs; (C) for the refinancing of indebtedness which was incurred by the Corporation under section 721 of this title section 725 of this title (D) working capital as contemplated by the final system plan. (2) Purchases of up to $1,000,000,000 of debentures and, thereafter, of up to $2,300,000,000 of series A preferred stock shall be made by the Association as required and requested by the Corporation, unless the Finance Committee makes an affirmative finding that (A) the Corporation has failed in any material respect to comply with any covenants or undertakings made to the Association and such failure remains uncorrected; (B) the Corporation has failed substantially (as determined by performance within the margins prescribed by the Board of Directors) to attain the overall operating (including rehabilitation) and financial results projected for the Corporation in the final system plan (including any modifications of such projected results and of the performance margins applicable to such projected results which are jointly approved by the Finance Committee and the Board of Directors and which would improve the possibility that the Corporation will attain such projected results and perform within such margins, as modified); or (C) it is not reasonably likely, taking into consideration all relevant factors including the overall operating (including rehabilitation) and financial results achieved by the Corporation, that the Corporation will be able to become financially self-sustaining without requiring Federal financial assistance substantially in excess of the amounts authorized in this section. (3) (A) Amounts transferred to the Association pursuant to section 509(b)(1) 1 1 (B) An employee who ceases to be an employee as a result of the reduction of work force under a program implemented pursuant to this paragraph shall not, by reason of so ceasing to be an employee, or by reason of any work or employment entered into after so ceasing to be an employee, lose such employees current connection with the railroad industry for the purposes of the Railroad Retirement Act of 1974 [ 45 U.S.C. 231 (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. (5) The authority of the Association to purchase debentures or series A preferred stock of the Corporation shall terminate October 21, 1986 (c) Finding, direction, and review by Congress (1) If the Finance Committee makes an affirmative finding pursuant to subsection (b)(2) of this section, it may direct the Association (A) not to purchase any debentures or series A preferred stock of the Corporation after the date of such affirmative finding; or (B) to purchase debentures or series A preferred stock of the Corporation, after the date of such affirmative finding, only in such amounts, at such times, and on such terms and conditions (notwithstanding subsection (e)(1) of this section) as the Finance Committee determines to be appropriate to the role of the Association as an investor in such debentures and series A preferred stock. (2) A copy of each affirmative finding, the reasons therefor, and each direction made by the Finance Committee under paragraph (1) of this subsection, together with the comments and recommendations thereon of the Board of Directors of the Association, shall be transmitted to the Congress by the Association within 10 days after the date on which the Finance Committee makes such finding and direction, or if not so transmitted, shall be transmitted by the Finance Committee. Each such direction so transmitted shall become finally effective and is required to be implemented by the Association, unless within the first period of 30 calendar days of continuous session of Congress after the date of its transmittal to Congress either House of Congress disapproves such direction (except that such direction shall become finally effective immediately upon approval of such direction by both Houses of Congress) in accordance with the procedures specified in section 688 of title 2 section 682(5) of title 2 (3) If the Congress, pursuant to paragraph (2) of this subsection, disapproves a direction submitted to the Association pursuant to paragraph (1) of this subsection, the Association shall continue to purchase the debentures or series A preferred stock of the Corporation as otherwise provided in this subchapter until such time as a direction is submitted under this section which is not so disapproved (or affirmatively approved). The powers of the Association and of the Board of Directors of the Association shall remain in effect except to the extent modified by any such direction. If any such direction is disapproved by either House of Congress, the Finance Committee may, not earlier than 30 days after the date of such disapproval, make (and the Board of Directors of the Association shall transmit) any additional affirmative finding and direction with respect to the same matter, which direction shall become effective in accordance with paragraph (2) of this subsection. An affirmative finding and direction under this subsection, or action by the Association during a review thereof by the Congress, may not be held unlawful or set aside by any reviewing court on the ground that such finding and direction or action were not adequate to meet the requirements of subparagraph (A), (E), or (F) of section 706(2) of title 5 (4) Notwithstanding any other provision of this section, or any terms and conditions governing its purchase of securities of the Corporation, the Association shall, upon written application by the Corporation at least 30 days prior to such investment, make an initial investment in debentures of the Corporation within 60 days after the date of conveyance of rail properties pursuant to section 743(b)(1) of this title (5) Not later than 60 days after the date of conveyance pursuant to section 743(b)(1) of this title section 741(d) of this title (d) Terms and conditions Notwithstanding any other provision of State law, the debentures and the series A preferred stock of the Corporation shall have such terms and conditions, not inconsistent with the final system plan or this subchapter, as may be prescribed by the Association, except as follows: (1) The Corporation shall not be required to issue to the Association additional shares of series A preferred stock of the Corporation as a dividend on any such stock. (2) The dividends payable on series A preferred stock of the Corporation shall not be cumulative and shall be paid in cash when and to the extent that there is cash available for restricted cash payments, as that term is defined in the final system plan. (3) After the Association calls for redemption of the certificates of value, no shares of series A preferred stock of the Corporation shall be issued in lieu of interest on the debentures of the Corporation and, to the extent such interest is not payable in cash by reason of the absence of sufficient cash available for restricted cash payment, the Corporation shall deliver to the holders of the debentures contingent interest notes in a face amount equal to such unpaid interest. (4) If the Board of Directors of the Association and the Finance Committee, acting jointly, modify the terms or conditions governing the purchase of debentures or series A preferred stock of the Corporation pursuant to subsection (e)(1) of this section, or if the Finance Committee waives compliance with any term, condition, provision, or covenant of such securities pursuant to subsection (e)(2) of this section, the Finance Committee may require the Corporation to issue contingent interest notes in such amount as, in the determination of the Finance Committee, will provide protection for the United States, in the event of bankruptcy, reorganization, or receivership of the Corporation, equal to the protection the United States would have had in the absence of such modification or waiver. (5) The contingent interest notes issued pursuant to this section shall bear interest compounded annually at the rate of 8 percent per annum and such notes and the accumulated interest thereon shall be payable only in the event of bankruptcy, reorganization, or receivership of the Corporation occurring prior to the repayment and redemption of all outstanding debentures and accumulated series A preferred stock of the Corporation. The contingent interest notes and the accumulated interest thereon shall have the same priority in bankruptcy, reorganization, or receivership as the debentures of the Corporation. The other terms and conditions of the contingent interest notes shall be as set forth in an agreement to be entered into between the Association and the Corporation prior to issuance of any debentures. (e) Modifications, waivers, and conversions (1) The Board of Directors of the Association and the Finance Committee, acting jointly, may agree with the Corporation to modify any of the terms and conditions governing the purchase by the Association of securities of the Corporation, upon a finding that such action is necessary or appropriate to achieve the purposes of this chapter or the goals of the final system plan. (2) The Finance Committee may, in its discretion and upon a finding that such action is necessary or appropriate to achieve the purposes of this chapter or the goals of the final system plan, waive compliance with any term, condition, provision, or covenant of the securities of the Corporation held by the Association, including any provision of such securities with respect to redemption of principal or issuance price, payment of interest or dividends, or any term or condition governing the purchase of such securities. (3) Notwithstanding any provision of State law, there shall be no conversion of the debentures of the Corporation into series A preferred stock of the Corporation, as provided in the terms and conditions of the debentures and pursuant to the final system plan, unless the Board of Directors of the Association and the Finance Committee jointly determine to effect such conversion. (f) Employee stock ownership plan (1) The Association shall not invest the final $345,000,000 of the additional investment in the Corporation authorized by the Regional Rail Reorganization Act Amendments of 1978 unless and until (A) the Corporation has in effect an employee stock ownership plan which satisfies the requirements of paragraphs (2) and (3), and (B) the requirements of the other paragraphs of this subsection have been satisfied. (2) The employee stock ownership plan shall: (A) provide: (i) for a transfer to the plan and allocation to the accounts of plan participants in periodic installments of Series A preferred stock of the Corporation with a stated redemption value of at least $345,000,000 or any other securities in an amount determined by the Association, with the concurrence of the Finance Committee, as constituting a meaningful interest in the Corporation, or any combination thereof so determined by the Association, with the concurrence of the Finance Committee. The use of Series A preferred stock to fund the Employee Stock Ownership Plan shall not be interpreted to relieve ConRail of the responsibility for repaying in full to the United States Railway Association its indebtedness as represented by all shares originally issued under Public Law 94210 (ii) for immediate vesting of the rights of participants to such securities upon allocation, subject to defeasance as a result of the plans termination which termination shall occur in the event that, by the end of the 120th month beginning after the month in which securities or interests therein are first allocated to participants accounts, the Corporation has not attained for two consecutive quarters positive net income and a freight labor cost to freight revenue ratio equal to the average such ratio for all Class I railroads in 1977, as determined pursuant to procedures adopted by the Corporation pursuant to regulations promulgated by the Association with the concurrence of the Finance Committee; (B) be an employee benefit plan which is designed to invest primarily in employer securities; (C) meets such other requirements (similar to requirements applicable to employee stock ownership plans as defined in section 4975(e)(7) of title 26 (D) have been approved by the Board of Directors of the Corporation to the extent and in the manner which may be required by the Corporations articles of incorporation and bylaws then in effect; and (E) have been prepared in consultation with, and been approved by, the Association and the Finance Committee. (3) Notwithstanding any other provision of law, if a plan does not meet the requirements of section 401 of title 26 (A) stock transferred under paragraph (2) and allocated to the account of any participant under paragraph (2) shall not be considered income of the participant or his beneficiary under title 26 until such stock or dividends are actually distributed or made available to the participant or his beneficiary and, at such time, shall be taxable under section 72 of title 26 (B) no amount shall be allocated to any participant under the plan in excess of the amount which might be allocated if the plan met the requirements of section 401 of title 26 (C) the plan must meet the requirements of sections 410 and 415 of title 26. (4) The Corporation shall adopt such terms and conditions governing the securities of interests therein to be transferred to the plan (including limitations on voting rights) as the Association, with the concurrence of the Finance Committee, determines are necessary to protect reasonably the interests of the United States in the litigation pursuant to section 743(c) of this title (5) The Corporation, the Association, and a representative appointed by the Chairman of the Railway Labor Executives Association as representative of all the classes or crafts of employees of the Corporation shall engage in negotiations to agree upon a plan in accordance with the provisions of this subsection. For purposes of this subsection, the Railway Labor Executives Association shall be deemed to represent all of the representatives of crafts or classes of employees of the Corporation and its subsidiaries as though that organization held powers of attorney from each representative of a craft or class for the limited purposes of negotiating and agreeing upon an employee stock ownership plan. The parties shall incorporate their agreement into a written plan instrument specifying the terms and conditions set forth in this subsection and such other terms and conditions as they may decide upon, with the concurrence of the Finance Committee, unless the parties are unable to reach on 2 2 45 U.S.C. 151 45 U.S.C. 156 November 1, 1978 (6) Within fourteen months of November 1, 1978 (7) For the purposes of this subsection, the officers of each duly authorized representative of the crafts or classes of the employees of the Corporation who have been given leaves of absence by the Corporation to serve as such officers, are to be eligible to participate in such plan on the same basis as are employees whose employment is governed by a collective bargaining agreement with the Corporation. (8) (A) Except as provided in subparagraph (B) of this paragraph, no person described in subparagraph (C) of this paragraph shall have or be subject to any fiduciary responsibility, obligation, or duty, nor shall any such person be subject to civil liability, under any Federal or State law, as a fiduciary or otherwise (i) in connection with the employee stock ownership plan and related trust established by the Corporation pursuant to the requirements of this subsection or with ConRail Equity Corporation (I) on account of any reorganization or restructuring of the Corporation, its successors or assigns, or their assets or capital structure, or (II) on account of any action taken or not taken by the Corporation which may affect its ability to attain the performance levels established in connection with the plan pursuant to paragraph (2)(A)(ii) of this subsection; (ii) for or in connection with the establishment, continuation or implementation of the plan and related trust or of ConRail Equity Corporation or the acquisition of, investment in or retention of any security of the Corporation or ConRail Equity Corporation, or of any of their successors and assigns, by the plan or ConRail Equity Corporation, or the disposition of any such security to the extent that such disposition is made in connection with a reorganization or restructuring of the Corporation, its successors and assigns, or their assets or capital structure, as directed or approved by or on behalf of the Association or the United States, or the acquisition or retention of any cash, security or other property received in connection with any such reorganization or restructuring; or (iii) for or in connection with any other action taken or not taken pursuant to any term or condition of the plan or related trust agreement or of the articles of incorporation or bylaws of ConRail Equity Corporation. Any directions described in clauses (i)(I), (ii), or (iii) shall be taken at the direction, or with the consent, of the Association or of the Secretary or his designate. (B) Subparagraph (A) of this paragraph shall not be interpreted to relieve any person from any fiduciary or other responsibility, obligation or duty under any Federal or State law to take or not to take actions with respect to the plan in connection with (i) receiving contributions, (ii) exercising custodial responsibilities, (iii) determining eligibility to participate in the plan, (iv) calculating, determining and paying benefits, (v) processing and deciding claims, (vi) preparing and distributing plan information, benefit statements, returns and reports, (vii) maintaining plan records, (viii) appointing plan fiduciaries and other persons to advise or assist in plan administration and (ix) other than as provided in subparagraph (A), acquiring, holding or disposing of plan assets. (C) For purposes of subparagraph (A) of this paragraph, the term person includes each of the following: (i) the trustee or trustees of the plan, the Corporation and its subsidiaries, ConRail Equity Corporation, the Association, and any of their successors and assigns; (ii) each director, officer, employee and agent of the Corporation of 3 3 (iii) each member of the Finance Committee and any of their employees and agents. (D) Neither this paragraph nor paragraph (9) of this subsection shall be construed to grant immunity from any criminal law of the United States or of any State or the District of Columbia. (9) The United States shall indemnify, defend, and hold harmless the persons described in paragraph (8)(C) of this subsection from and against any and all liabilities, claims, actions, judgments, amounts paid in settlement, and costs and expenses (including reasonable fees of accountants, experts, and attorneys) actually incurred in connection with the establishment, implementation, or operation of the plan or ConRail Equity Corporation or with any transaction which is required by or is appropriate to effectuate fully the provisions of this subsection, except as may arise in connection with the execution of a responsibility, obligation, or duty excluded from paragraph (8)(A) by paragraph (8)(B), if it is determined that such persons were acting in good faith. The indemnity provided in this paragraph shall be a full faith and credit obligation of the United States. (10) All securities of the Corporation, all securities of any subsidiary of the Corporation and of ConRail Equity Corporation, and all interests in the employee stock ownership plan which are issued or transferred in connection with the employee stock ownership plan established by the Corporation pursuant to the requirements of this subsection shall be deemed for all purposes to have been issued subject to and authorized and approved pursuant to section 11301(b) 4 4 (g) Authorization of appropriations; reappropriation of funds (1) There is authorized to be appropriated to the Association $3,629,000,000 to be used for the purchase of securities of the Corporation in accordance with this section. All sums received by the Association on account of the holding or disposition of any such securities shall be deposited in the general fund of the Treasury. (2) To the extent provided in appropriation Acts, any funds appropriated under the authority of paragraph (1) of this subsection prior to January 14, 1983 ( Pub. L. 93236, title II,  216 Pub. L. 94210, title VI,  605 Feb. 5, 1976 90 Stat. 89 Pub. L. 95565 Nov. 1, 1978 92 Stat. 2397 Pub. L. 96254, title I,  118 May 30, 1980 94 Stat. 406 Pub. L. 96448, title IV,  405(b)(2) Oct. 14, 1980 94 Stat. 1946 Pub. L. 97468, title V,  504(b) Jan. 14, 1983 96 Stat. 2552 Pub. L. 99509, title IV,  4011(d) Oct. 21, 1986 100 Stat. 1896 Pub. L. 99514,  2 Oct. 22, 1986 100 Stat. 2095  Editorial Notes  References in Text Section 509 of the Railroad Revitalization and Regulatory Reform Act of 1976, referred to in subsec. (b)(3)(A), was classified to section 829 of this title Pub. L. 105178, title VII,  7203(a)(2) June 9, 1998 112 Stat. 477 The Railroad Retirement Act of 1974, referred to in subsec. (b)(3)(B), is act Aug. 29, 1935, ch. 812 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1305 section 231 of this title section 231t of this title The Regional Rail Reorganization Act Amendments of 1978, referred to in subsec. (f)(1), probably means Pub. L. 95565 Nov. 1, 1978 92 Stat. 2397 section 975 of Title 43 section 975 of Title 43 section 701 of this title Public Law 94210 Pub. L. 94210 Feb. 5, 1976 90 Stat. 31 section 801 of this title The Railway Labor Act, referred to in subsec. (f)(5), is act May 20, 1926, ch. 347 44 Stat. 577 section 151 of this title Section 11301(b) of title 49 Pub. L. 10488, title I,  102(a) Dec. 29, 1995 109 Stat. 804 Section 1139(b) of the Northeast Rail Service Act of 1981, referred to in subsec. (g)(2), is section 1139(b) of Pub. L. 9735 Aug. 13, 1981 95 Stat. 652 section 744a of this title Codification In subsec. (c)(2),  section 688 of title 2 section 682(5) of title 2 31 U.S.C. 1407 31 U.S.C. 1401(5) Amendments 1986Subsec. (b)(5). Pub. L. 99509 Subsec. (f)(2)(C), (3). Pub. L. 99514 1983Subsec. (g). Pub. L. 97468 1980Subsec. (a). Pub. L. 96448,  703(f)(1) Subsec. (b)(3). Pub. L. 96448,  405(b)(2) Subsec. (b)(4). Pub. L. 96448,  703(e) Subsec. (f)(5). Pub. L. 96254,  118(a) Subsec. (f)(8) to (10). Pub. L. 96254,  118(c) Subsec. (g). Pub. L. 96448,  703(f)(2) 1978Subsec. (a). Pub. L. 95565,  2(a) Subsec. (b)(2). Pub. L. 95565,  2(b) Subsecs. (f), (g). Pub. L. 95565 Statutory Notes and Related Subsidiaries Effective Date of 1980 Amendment Amendment by Pub. L. 96448 Oct. 1, 1980 section 710(a) of Pub. L. 96448 section 1170 of Title 11  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title Applicability of National Environmental Policy Act Application of National Environmental Policy Act to actions of Commission not affected by title VI of Pub. L. 94210 section 619 of Pub. L. 94210 section 791 of this title  727. Additional purchases of Series A preferred stock (a) Federal investment In addition to the authority provided under section 726 of this title August 13, 1981 (b) Accounts receivable (1) In any further purchase under this section or section 726 of this title 1 1 (2) From funds provided under this section or section 726 of this title (c) States and localities The Corporation shall be exempt from liability for any State tax, except for any tax imposed by any political subdivision of a State applicable to any taxable period commencing before January 1, 1987 (d) Debentures The Association shall return debentures to the Corporation in an amount equal to the value of the properties conveyed by the Corporation to Amtrak Commuter and any commuter authority. (e) Rights retained The Corporation shall retain the right to collect any accounts receivable attributable to delays in reimbursement from commuter authorities that are purchased by the Association under this section. No agency or instrumentality of the United States shall be required to collect such accounts. (f) Authorization of appropriations (1) There is authorized to be appropriated not to exceed $262,000,000 (A) of which not to exceed $137,000,000 shall be appropriated to the Association for purposes of purchasing securities and accounts receivable of the Corporation under this section, such sums to remain available until the Secretary transfers the Corporation under subchapter IV 1 (B) of which not to exceed $75,000,000 shall be appropriated to the Secretary, to facilitate the transfer of rail commuter services from the Corporation to other operators, for distribution under the statutory provisions of section 1139(b) of the Northeast Rail Service Act of 1981; (C) of which not to exceed $35,000,000 shall be appropriated to the Secretary to be allocated for employee protection under section 1005 of this title (D) of which not to exceed $15,000,000 shall be appropriated to the Secretary to facilitate the transfer of rail commuter services from railroads that entered reorganization after calendar year 1974 to any commuter authority that was providing commuter service, operated by a railroad that entered reorganization after calendar year 1974, as of January 1, 1979 (2) All sums received on account of the holding or disposition of any securities or accounts receivable referred to in paragraph (1)(A) of this subsection shall be deposited in the general fund of the Treasury. (3) The amount authorized to be appropriated under paragraph (1)(B) of this subsection shall be reduced, in an amount equal to any amounts reappropriated under the authority of section 726(g)(2) of this title ( Pub. L. 93236, title II,  217 Pub. L. 9735, title XI,  1140(a) Aug. 13, 1981 95 Stat. 653 Pub. L. 97468, title V,  504(c) Jan. 14, 1983 96 Stat. 2552 Pub. L. 99509, title IV,  4033(b)(2) Oct. 21, 1986 100 Stat. 1908  Editorial Notes  References in Text Section 1111 of this title Pub. L. 105134, title IV,  408 Dec. 2, 1997 111 Stat. 2586 Subchapter IV of this chapter, referred to in subsec. (f)(1)(A), was repealed by Pub. L. 99509, title IV,  4033(a)(1) Oct. 21, 1986 100 Stat. 1908 Section 1139(b) of the Northeast Rail Service Act of 1981, referred to in subsec. (f)(1)(B), is section 1139(b) of Pub. L. 9735 Aug. 13, 1981 95 Stat. 652 section 744a of this title Amendments 1986Subsec. (c). Pub. L. 99509,  4033(b)(2) January 1, 1987 Subsec. (e). Pub. L. 99509,  4033(b)(3) 1983Subsec. (a). Pub. L. 97468,  504(c)(1) Subsec. (f). Pub. L. 97468,  504(c)(2) Statutory Notes and Related Subsidiaries Effective Date Section effective Aug. 13, 1981 section 1169 of Pub. L. 9735 section 1101 of this title  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title  728. Reports to Congress (a) Progress and evaluation (1) The Association shall prepare and submit to Congress periodic reports on the progress of the Secretary in carrying out the provisions of subchapters II, III, and IV 1 1 (2) Reports submitted under paragraph (1) of this subsection shall also include an evaluation of the performance of the Corporation in order to keep the Congress informed as to matters which may affect the quality of rail service in the Northeast and which may affect the security of Federal funds invested in the Corporation. (b) Transfer agreements (1) The Association shall prepare and submit to Congress a final report on the transfer agreements which the Secretary is required to transmit to Congress under section 767 1 (2) The report submitted under paragraph (1) of this subsection shall include an evaluation of the effect of the transfer agreements on rail service in the Northeast, railroad employees, the economy of the Region, other railroads in the Northeast and elsewhere, and any other matter which the Association considers appropriate. Such report shall also include recommendations with respect to approval, disapproval, or modification of the transfer agreements. ( Pub. L. 93236, title II,  218 Pub. L. 9735, title XI,  1150(a) Aug. 13, 1981 95 Stat. 675  Editorial Notes  References in Text Subchapter IV of this chapter, including section 767 of this title Pub. L. 99509, title IV,  4033(a)(1) Oct. 21, 1986 100 Stat. 1908 Statutory Notes and Related Subsidiaries Effective Date Section effective Aug. 13, 1981 section 1169 of Pub. L. 9735 section 1101 of this title Termination of Reporting Requirements For termination, effective May 15, 2000 section 3003 of Pub. L. 10466 section 1113 of Title 31  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title  729. Advisory Board  Members of the Board of Directors of the Association serving on the day before August 13, 1981 ( Pub. L. 93236, title II,  219 Pub. L. 9735, title XI,  1150(a) Aug. 13, 1981 95 Stat. 675  Statutory Notes and Related Subsidiaries Effective Date Section effective Aug. 13, 1981 section 1169 of Pub. L. 9735 section 1101 of this title  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title Termination of Advisory Boards Advisory boards established after Jan. 5, 1973 SUBCHAPTER III CONSOLIDATED RAIL CORPORATION  741. Formation and structure (a) Establishment There shall be established within 300 days after January 2, 1974 (b) Status The Corporation shall be a for-profit corporation established under the laws of a State and shall not be an agency or instrumentality of the Federal Government. The Corporation shall be deemed a rail carrier subject to part A of subtitle IV of title 49, shall be subject to the provisions of this Act and, to the extent not inconsistent with such Act and subtitle IV of title 49, shall be subject to applicable State law. The principal office of the Corporation or of its principal railroad operating subsidiary shall be located in Philadelphia in the Commonwealth of Pennsylvania. (c) Incorporators (1) The members of the executive committee of the Association shall be the incorporators of the Corporation and shall take whatever steps are necessary to establish the Corporation, including the filing of articles of incorporation. (2) Notwithstanding any provision of State law, after February 5, 1976 (d) Board of Directors (1) Notwithstanding any provision of State law, the articles of incorporation and bylaws of the Corporation shall provide that the Board of Directors of the Corporation shall consist of 13 members selected in accordance with the articles and bylaws of the Corporation, as follows: (A) six individuals selected by the holders of the Corporations debentures and series A preferred stock voting as one class, with every $100 principal amount of debentures, and every $100 liquidation amount of series A preferred stock each receiving one vote for directors; (B) three individuals selected by the holders of the Corporations series B preferred stock; and (C) two individuals selected by the holders of the Corporations common stock. (2) The chief executive officer and the chief operating officer of the Corporation shall also serve on the Board, but the chief executive officer and chief operating officer of the Corporation shall not be entitled to vote on the election or removal of either. In the event a vacancy occurs on the Board of Directors due to death, disability or resignation of a director, such vacancy shall be filled only by a vote of the holders of the class of securities that initially elected such director. (e) Initial capitalization (1) The Corporation is authorized to issue debentures, series A preferred stock, series B preferred stock, common stock, contingent interest notes, and other securities. (2) Debentures and series A preferred stock shall be issued initially to the Association. Series B preferred stock and common stock shall be issued initially to the estates of railroads in reorganization in the region, to railroads leased, operated, and controlled by railroads in reorganization in the region, and to other persons leased, operated or controlled by a railroad in reorganization who are transferors of rail properties in exchange for rail properties transferred to the Corporation pursuant to the final system plan. Notwithstanding any other provisions of State or Federal law, the series B preferred stock and common stock shall have terms and conditions not inconsistent with the final system plan. As a condition of its investment in the Corporation, the Association may require that the Corporation adopt limitations consistent with the final system plan on the circumstances under which dividends on the series B preferred stock and common stock are payable so long as any of the debentures or series A preferred stock are outstanding. Notwithstanding anything to the contrary in the final system plan, the initial authorized number of shares of series B preferred stock may be 35,000,000, and the Corporation may issue initially for the purpose of the deposit required under section 743(a)(1) of this title 1 1 (f) Officers The officers of the Corporation shall include a chief executive officer and a chief operating officer, who shall be appointed by the Board of Directors and who shall serve at the pleasure of the Board; and such other officers as shall be provided for in the bylaws of the Corporation. (g) Voting trustees For and during the period between the deposit of securities of the Corporation with the special court, in accordance with section 743(a) of this title section 743(c) of this title section 743(b)(1) of this title (h) Annual report The Corporation shall transmit to the Congress and the President, not later than 90 days after the end of each fiscal year, a comprehensive and detailed report on all activities and accomplishments of the Corporation during the preceding fiscal year. (i) Liability of directors No director of the Corporation shall be liable, for money damages or otherwise, to any party by reason of the fact that such person is or was a director, if, with respect to the subject matter of the action, suit, or proceeding, such person was fulfilling a duty which he in good faith reasonably believed to be required by law or vested in him in his capacity as a director of the Association or as an officer of the United States. The United States shall indemnify such person against all judgments, amounts paid in settlement, and costs and expenses (including fees of accountants, experts, and attorneys), actually and reasonably incurred in connection with any such action, suit, or proceeding in which such person is determined to have met such standard of conduct. This subsection shall not be construed to grant any immunity from any criminal law of the United States. (j) Signal systems If, within two years after August 13, 1981 (k) Governing provisions after sale The provisions of this chapter shall not apply to the Corporation and to activities and other actions and responsibilities of the Corporation and its directors and employees after the sale date, other than with regard to (1)  section 702 of this title (2)  section 711(d) of this title (3)  section 713 of this title section 719(b) of this title (4)  section 719 of this title (5)  section 726(f)(8) of this title (6)  section 726(f)(9) of this title (7)  section 726(f)(10) of this title 45 U.S.C. 1301 (8) section 727(c) and (e) of this title; (9) subsection (b) of this section, but only with respect to matters covered by the last sentence of such subsection; (10) subsection (i) of this section, but only as such authority applies to service as a director of the Corporation before the sale of the interest of the United States in the common stock of the Corporation; (11)  section 742 of this title (12) section 743(b)(1) and (2) of this title, but only to the extent of establishing the legal effect of the conveyance of property ordered and of the deeds and other instruments executed, acknowledged, delivered, or recorded in connection therewith and the quality of title acquired in such property; (13)  section 743(b)(3)(B) of this title (14)  section 743(b)(5) of this title (15)  section 743(b)(6) of this title (16)  section 743(e) of this title (17)  section 744 of this title (18)  section 745 of this title (19)  section 748 of this title November 1, 1985 (20)  section 791(a)(2) of this title (21) section 791(b)(2) and (b)(3) of this title, but only with respect to issuance of and transactions in any security of the Corporation before the sale date; (22)  section 797a(e) of this title (23)  section 797b of this title (24)  section 797c of this title (25) sections 797e(a), 797f, and 797g(a) of this title, but only insofar as they establish part of the prevailing status quo for the Corporations employees rates of pay, rules, and working conditions, such provisions to continue to apply unless changed pursuant to section 156 of this title (26)  section 797h of this title (27)  section 797i(b)(1) of this title (28)  section 797j of this title (29)  section 797m of this title ( Pub. L. 93236, title III,  301 Jan. 2, 1974 87 Stat. 1004 Pub. L. 94210, title VI Feb. 5, 1976 90 Stat. 99 Pub. L. 94216 Feb. 17, 1976 90 Stat. 191 Pub. L. 94248,  4 Mar. 25, 1976 90 Stat. 286 Pub. L. 9735, title XI,  1141 Aug. 13, 1981 95 Stat. 653 Pub. L. 99509, title IV,  4032 Oct. 21, 1986 100 Stat. 1906 Pub. L. 10488, title III,  327(2) Dec. 29, 1995 109 Stat. 951  Editorial Notes  References in Text This Act, referred to in subsec. (b), means the Regional Rail Reorganization Act of 1973, Pub. L. 93236 Jan. 2, 1974 87 Stat. 985 section 701 of this title The Conrail Privatization Act, referred to in subsec. (k)(7), is subtitle A ( 40014052) of title IV of Pub. L. 99509 Oct. 21, 1986 100 Stat. 1892 section 1301 of this title Codification In subsec. (b), such Act and subtitle IV of title 49 substituted for such Acts, on authority of Pub. L. 95473,  3(b) Oct. 17, 1978 92 Stat. 1466 The last sentence of subsec. (f) of this section as originally enacted, which amended section 856 of former Title 31, Money and Finance, was repealed by Pub. L. 97258,  5(b) Sept. 13, 1982 96 Stat. 1068 Amendments 1995Subsec. (b). Pub. L. 10488,  327(2) 49 U.S.C. 1(3) 1986Subsec. (k). Pub. L. 99509 1981Subsec. (d)(2). Pub. L. 9735,  1141(a) Subsec. (e)(1). Pub. L. 9735,  1141(b) Subsec. (j). Pub. L. 9735,  1141(c) 1976Subsec. (a). Pub. L. 94210,  612(j)(1) Subsec. (b). Pub. L. 94210,  612(j)(3) Subsec. (c). Pub. L. 94210,  611(a) Subsec. (d). Pub. L. 94210,  611(b) Subsec. (e). Pub. L. 94210,  608 Subsec. (e)(2). Pub. L. 94248 Subsec. (f). Pub. L. 94210,  611(c) Subsec. (g). Pub. L. 94210,  611(c) Subsec. (h). Pub. L. 94216,  1 Pub. L. 94210 Subsec. (i). Pub. L. 94216 Pub. L. 94210,  612(m) Subsec. (j). Pub. L. 94216,  1 Statutory Notes and Related Subsidiaries Effective Date of 1995 Amendment Amendment by Pub. L. 10488 Jan. 1, 1996 section 2 of Pub. L. 10488 section 1301 of Title 49 Effective Date of 1981 Amendment Amendment by Pub. L. 9735 Aug. 13, 1981 section 1169 of Pub. L. 9735 section 1101 of this title Termination of Reporting Requirements For termination, effective May 15, 2000 section 3003 of Pub. L. 10466 section 1113 of Title 31  Abolition of Special Court, Regional Rail Reorganization Act of 1973, and Transfer of Functions Special court abolished and all jurisdiction and functions transferred to United States District Court for District of Columbia, see section 719(b)(2) of this title  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title Applicability of National Environmental Policy Act Application of National Environmental Policy Act to actions of Commission not affected by title VI of Pub. L. 94210 section 619 of Pub. L. 94210 section 791 of this title  742. Powers and duties of Corporation The Corporation shall have all of the powers and is subject to all of the duties vested in it under this chapter, in addition to the powers conferred upon it under the laws of the State or States in which it is incorporated and the powers of a railroad in any State in which it operates. The Corporation is authorized and directed to (a) acquire rail properties designated in the final system plan to be transferred or conveyed to it; (b) operate rail service over such rail properties except as provided under sections 744(e) and 791(d)(3) of this title; (c) rehabilitate, improve, and modernize such rail properties; and (d) maintain adequate and efficient rail services. So long as 50 per centum or more, as determined by the Secretary of the Treasury, of the outstanding indebtedness of the Corporation consists of obligations of the Association or other debts owing to or guaranteed by the United States, the Corporation shall not engage in activities which are not related to transportation. ( Pub. L. 93236, title III,  302 Jan. 2, 1974 87 Stat. 1005  Statutory Notes and Related Subsidiaries  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title  743. Valuation and conveyance of rail properties (a) Deposit with court Within 10 days after delivery of a certified copy of a final system plan pursuant to section 719(c) of this title (1) the Corporation, in exchange for the rail properties of the railroads in reorganization in the region and of railroads leased, operated, or controlled by railroads in reorganization in the region to be transferred to the Corporation or any subsidiary thereof, shall deposit with the special court all of the stock and other securities of the Corporation and certificates of value issued by the Association designated in the final system plan to be exchanged for such rail properties; (2) each profitable railroad operating in the region and each state or responsible person (including a government entity) purchasing rail properties from a railroad in reorganization in the region, or from a railroad leased, operated, or controlled by a railroad in reorganization in the region, as provided in the final system plan shall deposit with the special court the compensation to be paid for such rail properties. (b) Conveyance of rail properties (1) The special court shall, within 10 days after deposit under subsection (a) of this section of the securities of the Corporation, certificates of value issued by the Association, and compensation from the profitable railroads operating in the region, States, and responsible persons, order the trustee or trustees of each railroad in reorganization in the region to convey forthwith to the Corporation or any subsidiary thereof, the respective profitable railroads operating in the region, States, and responsible persons all right, title, and interest in the rail properties of such railroad in reorganization and shall itself order the conveyance of all right, title, and interest in the rail properties of any person leased, operated, or controlled by such railroad in reorganization that are to be conveyed to them under the final system plan as certified to such court under section 719(d) of this title (2) All rail properties conveyed to the Corporation or any subsidiary thereof the respective profitable railroads operating in the region, States, and responsible persons under this section shall be conveyed free and clear of any liens or encumbrances, but subject to such leases and agreements as shall have previously burdened such properties or bound the owner or operator thereof in pursuance of an arrangement with any State, or local or regional transportation authority under which financial support from such State, or local or regional transportation authority was being provided on January 2, 1974 (3) (A) (i) Notwithstanding any other provision of this chapter, if an interest in railroad rolling stock is included in the rail properties conveyed pursuant to subsection (b)(1) of this section, and if such conveyance is in accordance with the requirements of clause (ii) of this subparagraph, the conveyance of such properties shall be deemed an assignment. Any such assignment shall relieve the assignor of liability for any breach which occurs after the date of such conveyance, except that such assignor shall remain liable for any breach, event of default, or violation of covenant which occurred (and any charges or obligations which accrued) prior to the date of such conveyance, regardless of whether the assignee thereof assumes such liabilities, charges or obligations. If any such liabilities, charges, or obligations (accrued prior to the date of such conveyance) are paid by or on behalf of any person or entity other than such assignor, such person or entity shall have a claim to direct reimbursement, as a current expense of administration, from such assignor, together with interest on the amount so paid. (ii) A conveyance referred to in clause (i) of this subparagraph may be effected only if (I) the Corporation or a subsidiary thereof, the profitable railroad operating in the region, or the State or responsible person to whom such conveyance is made assumes all of the obligations under any applicable conditional sale agreement, equipment trust agreement, or lease with respect to such rolling stock (including any obligations which accrued prior to the date on which such properties are conveyed), and (II) such conveyance is made subject to such obligations. As used in this subparagraph, the term railroad rolling stock means assets which could be carried in Interstate Commerce Commission account numbers 52, 53, 54, and 57. (B) Subject to the provisions of this paragraph, the provisions of this chapter shall not affect the title and interests of any lessor, equipment trust trustee, or conditional sale vendor under any conditional sale agreement, equipment trust agreement, or lease under section 77(j) of the Bankruptcy Act. A profitable railroad operating in the region, the Corporation or a subsidiary thereof, or a State or responsible person, to whom such a conveyance is made as assignee or as lessee, shall assume all liability under such conditional sale agreement, equipment trust agreement, or lease. Such an assignment or conveyance to, and such an assumption of liability by, such a profitable railroad, Corporation, subsidiary, State, or responsible person shall not be deemed a breach, an event of default, or a violation of any covenant of any such conditional sale agreement, equipment trust agreement, or lease so assigned or conveyed, notwithstanding any provisions of any such agreement or lease. (4) Notwithstanding anything to the contrary contained in this chapter, if a railroad in reorganization has leased rail properties from a lessor that is neither a railroad nor controlled by or affiliated with a railroad, and such lease has been approved by the lessee railroads reorganization court prior to January 2, 1974 (5) Notwithstanding any covenant, undertaking, condition, or provision of any sort in any lease, agreement, or contract, the conveyance, transfer, assignment, or other disposition of such lease, agreement, or contract or of any interest therein to, or the assumption by, the Corporation or any subsidiary thereof, or a profitable railroad of obligations thereunder, shall not be deemed a breach, an event of default, or a violation of any covenant of such lease, agreement, or contract. (6) (A) Notwithstanding anything to the contrary contained in this chapter or any other other 1 1 2 2 29 U.S.C. 1001 29 U.S.C. 1301 section 721(h) of this title (B) The Corporation shall, through the purchase of insurance or otherwise, maintain in effect any medical insurance coverage or so much of any life insurance coverage that does not exceed in death benefits an amount equal to twice the employees annual salary at the time of retirement or $60,000, whichever is lower, which coverage was maintained by a railroad in reorganization in the region immediately prior to April 1, 1976 April 1, 1976 April 1, 1976 (i) through the purchase of insurance or otherwise, provide medical insurance benefits or life insurance benefits at the same level as were provided by the employer railroad in reorganization and in effect with respect to such employees immediately prior to April 1, 1976 (ii) assume and pay any claim for such employee (or his personal representative) for any such insurance benefits, if (I) such claim arose during the period beginning April 1, 1976 (II) such benefits were not paid by an insurer solely because of the lapse of the insurance coverage during such period, except that such death benefits shall not be paid for any such employee in excess of an amount equal to twice the employees annual salary at the time of retirement or $60,000, whichever is lower. The Corporation shall be entitled to a loan pursuant to section 721(h) of this title section 721(h)(4)(A)(iii) of this title April 1, 1976 section 721(h) of this title (c) Findings and distribution (1) After the rail properties have been conveyed to the Corporation or any subsidiary thereof, profitable railroads operating in the region, States, and responsible persons under subsection (b) of this section, the special court, giving due consideration to the findings contained in the final system plan, shall decide (A) whether the transfers or conveyances (i) of rail properties of each railroad in reorganization, or of each railroad leased, operated, or controlled by a railroad in reorganization, to the Corporation or any subsidiary thereof in exchange for the certificates of value and the other benefits accruing to such railroad as a result of such exchange (taking into consideration compensable unconstitutional erosion, if any, which the special court finds to have occurred in the estate of each such railroad, during the bankruptcy proceeding with respect to such railroad) as provided in the final system plan and this chapter, and (ii) of rail properties of each railroad in reorganization, or of each railroad leased, operated, or controlled by a railroad in reorganization, to a profitable railroad operating in the region in exchange for compensation and other benefits accruing to such transferor as a result of such exchange (taking into consideration compensable unconstitutional erosion, if any, which the special court finds to have occurred in the estate of each such railroad, during the bankruptcy proceeding with respect to such railroad) State, or responsible person in accordance with the final system plan, are in the public interest and are fair and equitable to the estate of each railroad in reorganization in accordance with the standard of fairness and equity applicable to the approval of a plan of reorganization or a step in such a plan under section 77 of the Bankruptcy Act, or fair and equitable to a railroad that is not itself in reorganization but which is leased, operated, or controlled by a railroad in reorganization; (B) whether the transfers or conveyances are more fair and equitable than is required as a constitutional minimum; and (C) what portion of the proceeds received by a railroad in reorganization from an entity other than the Corporation or any subsidiary thereof for the sale, lease, or transfer of property subject to an agreement under section 723 or section 725(a)(1) or (2) of this title reflects value attributable to the maintenance or improvement provided pursuant to the agreement. (2) If the special court finds that the terms of one or more exchanges for certificates of value and other benefits are not fair and equitable to an estate of a railroad in reorganization, or to a railroad leased, operated, or controlled by a railroad in reorganization (taking into consideration compensable unconstitutional erosion, if any, which the special court finds to have occurred in the estate of each such railroad, during the bankruptcy proceeding with respect to such railroad), which has transferred rail properties pursuant to the final system plan, it may (A) enter a judgment reallocating the certificates of value in a fair and equitable manner if they have not been fairly allocated among the railroads transferring rail properties to the Corporation or any subsidiary thereof, except that one certificate of value shall be allocated to each such railroad; and (B) if the lack of fairness and equity cannot be completely cured by a reallocation of the certificates of value, order the Corporation to provide for the transfer to the railroad of certificates of value issued by the Association as designated in the final system plan in such nature and amount as would make the exchange or exchanges fair and equitable; and (C) enter a judgment against the Corporation if the judgment would not endanger the viability or solvency of the Corporation. (3) If the special court finds that the terms of one or more conveyances of rail properties to a profitable railroad operating in the region, State, or responsible person in accordance with the final system plan are not fair and equitable, it shall enter a judgment against such profitable railroad, State, or responsible person. If the special court finds that the terms of one or more conveyances or exchanges for certificates of value or other benefits are fairer and more equitable than is required as a constitutional minimum, then it shall order the return of any excess certificates of value, or compensation to the Corporation or a profitable railroad, State, or responsible person so as not to exceed the constitutional minimum standard of fairness and equity. The special court shall also find the amount of the payments, if any, which each profitable railroad has made on behalf of a transferor railroad in reorganization in accordance with section 721(h) of this title section 721(h) of this title section 721(h) of this title (4) Upon making the findings referred to in this subsection, the special court shall order distribution of the certificates of value and compensation deposited with it under subsection (a) of this section to the trustee or trustees of each railroad in reorganization in the region and to persons leased, operated, or controlled by such railroads who so transferred or conveyed rail properties who conveyed right, title, and interest in rail properties to the Corporation and the respective profitable railroads, States, and responsible persons under such subsection. (5) Whenever the special court, pursuant to subsection (b)(1) of this section, orders the transfer or conveyance of rail properties (A) designated under section 716(c)(1)(C) or (D) of this title, to the Corporation or any subsidiary thereof, the United States shall indemnify the Corporation against any costs or liabilities imposed on the Corporation as the result of any judgment entered against the Corporation, with respect to such properties, under paragraph (2) of this subsection; and (B) to the National Railroad Passenger Corporation, a profitable railroad operating in the region, a State, or any other responsible person (including a governmental entity), the United States shall indemnify such Corporation, railroad, State, or person against any costs or liabilities imposed thereon as the result of any judgment entered against such Corporation, railroad, State, or person under paragraph (3) of this subsection; plus interest on the amount of such judgment at such rate as is constitutionally required. The United States may, in its discretion, represent the Corporation or the National Railroad Passenger Corporation, such profitable railroad, State or responsible person, in any proceedings before the special court that could result in such a judgment against the Corporation under paragraph (2) of this subsection or against the National Railroad Passenger Corporation, such profitable railroad, State or responsible person, under paragraph (3) of this subsection. The Corporation, the National Railroad Passenger Corporation, any profitable railroad, State, or responsible person, which is represented by the United States of America shall cooperate diligently in whatever manner the United States shall reasonably request of it in connection with such proceedings. Neither the Corporation, or its subsidiaries, nor the National Railroad Passenger Corporation, any profitable railroad, State or responsible person, shall be obligated to reimburse the United States for any moneys paid by the United States pursuant to this section. (6) Whenever the Corporation exercises an option to acquire, or acquires, interests in rail marine freight floating equipment pursuant to the recommendations of the final system plan, and the Corporation thereafter makes such floating equipment available to a profitable railroad operating in the region, a State, or a responsible person including 3 3 (A) the Corporation against any costs or liabilities imposed on the Corporation as the result of any judgment entered against it, with respect to such equipment, under paragraph (2) of this subsection; and (B) such profitable railroad, State, or responsible person against any costs or liabilities imposed thereon as the result of any judgment entered against such profitable railroads, State, or responsible person under paragraph (3) of this subsection, plus interest on the amount of such judgment at such rate as is constitutionally required. (d) Appeal An order or judgment entered by the United States District Court for the District of Columbia pursuant to subsection (c) of this section or section 746 of this title (e) Transfer and other taxes and recording fees All transfers or conveyances of rail properties (whether real, personal, or mixed) which are made under this chapter (including transfers and conveyances which are made in accordance with a supplemental transaction pursuant to section 745 of this title section 791(d) of this title ( Pub. L. 93236, title III,  303 Jan. 2, 1974 87 Stat. 1005 Pub. L. 945,  8 Feb. 28, 1975 89 Stat. 9 Pub. L. 94210, title VI l Feb. 5, 1976 90 Stat. 84 Pub. L. 94436 Sept. 30, 1976 90 Stat. 1398 Pub. L. 94555, title II Oct. 19, 1976 90 Stat. 2616 Pub. L. 95199,  4 Nov. 23, 1977 91 Stat. 1424 Pub. L. 95597,  1 Nov. 4, 1978 92 Stat. 2547 Pub. L. 9673, title II,  204(a) Sept. 29, 1979 93 Stat. 556 Pub. L. 9735, title XI,  1167(a) Aug. 13, 1981 95 Stat. 686 Pub. L. 100352,  6(e) June 27, 1988 102 Stat. 664 Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379 Pub. L. 104317, title VI,  605(b)(2) Oct. 19, 1996 110 Stat. 3858  Editorial Notes  References in Text Section 77 of the Bankruptcy Act, referred to in subsecs. (b)(3)(B) and (c)(1)(A)(ii), was classified to section 205 of former Title 11, Bankruptcy. The Bankruptcy Act ( act July 1, 1898, ch. 541 30 Stat. 544 Oct. 1, 1979 Pub. L. 95598 Nov. 6, 1978 92 Stat. 2682 Section 775 of this title Pub. L. 9735, title XI,  1144(a)(1) Aug. 13, 1981 95 Stat. 669 The Employee Retirement Income Security Act of 1974, referred to in subsec. (b)(6)(A), is Pub. L. 93406 Sept. 2, 1974 88 Stat. 829 section 1001 of Title 29 Codification The amendments made by section 612(i)(4) of Pub. L. 94210 l Pub. L. 94210 Amendments 1996Subsec. (d). Pub. L. 104317 section 746 of this title 1994Subsec. (e). Pub. L. 103272 1988Subsec. (d). Pub. L. 100352 section 746 of this title section 1253 of title 28 Provided 1981Subsec. (c). Pub. L. 9735 1979Subsec. (b)(6)(B). Pub. L. 9673 1978Subsec. (b)(6). Pub. L. 95597 1977Subsec. (d). Pub. L. 95199 section 746 of this title 1976Subsec. (a)(1). Pub. L. 94210,  612(c)(1) Subsec. (a)(2). Pub. L. 94210,  612(d)(1) Subsec. (b)(1). Pub. L. 94210,  612(c)(2) o Subsec. (b)(2). Pub. L. 94210,  612(c)(2) Subsec. (b)(3). Pub. L. 94210,  612(a) Subsec. (b)(4). Pub. L. 94210,  612(d)(4) Subsec. (b)(5), (6). Pub. L. 94210,  612 l Subsec. (b)(6). Pub. L. 94555,  204 Subsec. (c)(1). Pub. L. 94210,  612(c)(3) Subsec. (c)(2). Pub. L. 94210,  612(c)(4) Subsec. (c)(2)(A). Pub. L. 94555,  220(b)(1) Subsec. (c)(2)(B). Pub. L. 94555,  220(b)(3) Subsec. (c)(3). Pub. L. 94555,  220(b)(5) Pub. L. 94210,  612(d)(7) Subsec. (c)(4). Pub. L. 94210,  612(d)(8) Subsec. (c)(5). Pub. L. 94436,  3 Pub. L. 94210,  612(f) Subsec. (c)(6). Pub. L. 94555,  202(b) Subsec. (d). Pub. L. 94210,  612(g) Subsec. (e). Pub. L. 94436,  5 section 745 of this title section 791 of this title Pub. L. 94210,  601(d) 1975Subsec. (c)(1)(C). Pub. L. 945 Statutory Notes and Related Subsidiaries Effective Date of 1996 Amendment Amendment by Pub. L. 104317 Oct. 19, 1996 section 605(e) of Pub. L. 104317 section 719 of this title Effective Date of 1988 Amendment Amendment by Pub. L. 100352 June 27, 1988 section 7 of Pub. L. 100352 section 1254 of Title 28 Effective Date of 1981 Amendment Amendment by Pub. L. 9735 Aug. 13, 1981 section 1169 of Pub. L. 9735 section 1101 of this title Effective Date of 1979 Amendment Pub. L. 9673, title V,  501(b) Sept. 29, 1979 93 Stat. 558 The amendments made by section 204 of this Act [enacting subsec. (b)(6)(B) of this section and section 721(h)(1)(A)(viii), (6) of this title] shall be effective as of the date of enactment [ Nov. 4, 1978 Pub. L. 95597 Effective Date of 1976 Amendment Amendment by Pub. L. 94555 Oct. 1, 1976 section 303 of Pub. L. 94555 section 702 of this title  Abolition of Special Court, Regional Rail Reorganization Act of 1973, and Transfer of Functions Special court abolished and all jurisdiction and functions transferred to United States District Court for District of Columbia, see section 719(b)(2) of this title  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title Cases Pending in Special Court For applicability of amendment by Pub. L. 104317 section 719(b) of this title section 605(d) of Pub. L. 104317 section 719 of this title Administrative Claim Status Pub. L. 95597,  2 Nov. 4, 1978 92 Stat. 2548  The conferring of administrative claim status on amounts paid for the insurance premiums and benefits described in the amendment made by the first section of this Act [amending this section] shall be effective solely for purposes of meeting the conditions set forth in section 211(h)(4)(A)(iii) of the Regional Rail Reorganization Act of 1973 [ section 721(h)(4)(A)(iii) of this title section 721(h) of this title (1) as affecting the jurisdiction of the district court having jurisdiction over such a railroad in reorganization to determine whether such insurance premiums and benefits constitute enforceable contractual obligations of the estate of such a railroad for purposes of reimbursement under such section 211(h) [ section 721(h) of this title (2) as establishing or reordering any priority which a claim against the estate of such a railroad for reimbursement for the amounts paid for such insurance premiums and benefits may or may not have under the provisions of the Bankruptcy Act [section 1 et seq. of former Title 11, Bankruptcy] or any other law. Corporation as Successor in Interest Pub. L. 95597,  3 Nov. 4, 1978 92 Stat. 2548 Notwithstanding any other provision of law, any corporation which, pursuant to a plan of reorganization under section 77 of the Bankruptcy Act [section 205 of former Title 11, Bankruptcy], is the successor in interest to a railroad in reorganization shall have standing to assert, in any judicial or administrative proceeding, any claim or defense available to such railroad in reorganization with respect to whether the insurance benefits and premiums described in the amendment made by the first section of this Act [amending this section] constitute enforceable contractual obligations of the estate of such railroad in reorganization. For purposes of this section, the term railroad in reorganization has the meaning given such term in paragraph (14) of section 102 of the Regional Rail Reorganization Act of 1973 [ section 702(14) of this title Applicability of National Environmental Policy Act Application of National Environmental Policy Act to actions of Commission not affected by title VI of Pub. L. 94210 section 619 of Pub. L. 94210 section 791 of this title  744. Termination and continuation of rail services (a) Discontinuance (1) Except as provided in subsections (c) and (f) of this section, rail service on rail properties of a railroad in reorganization in the region, or of a person leased, operated, or controlled by such a railroad, which transfers to the Corporation or to profitable railroads operating in the region all or substantially all of its rail properties designated for such conveyance in the final system plan, and rail service on rail properties of a profitable railroad operating in the region which transfers substantially all of its rail properties to the Corporation or to other railroads pursuant to the final system plan, may be discontinued, to the extent such discontinuance is not precluded by the terms of the leases and agreements referred to in section 743(b)(2) of this title (A) the final system plan does not designate rail service to be operated over such rail properties; (B) not sooner than 30 days following the effective date of the final system plan, the trustee or trustees of the applicable railroad in reorganization or a profitable railroad give notice in writing of intent to discontinue such service on a date certain which is not less than 60 days after the date of such notice or on the date of any conveyance ordered by the special court pursuant to section 743(b)(1) of this title (C) the notice required by subparagraph (B) of this paragraph is sent by certified mail to the Commission; to the chief executive officer, the transportation agencies, and the government of each political subdivision of each State in which such rail properties are located; and to each shipper who has used such rail service during the previous 12 months. (2) (A) If rail properties are not, in accordance with the designations in the final system plan, required to be operated, as a consequence of a recommended arrangement for joint use or operation of rail properties (under section 716(g) of this title section 743(b)(1) of this title (i) the petitioner and any other railroad involved in such arrangement or coordination project have, prior to filing an application for such discontinuance, entered into a binding agreement (effective on or before the effective date of such discontinuance) to carry out such arrangement or project; (ii) such application is filed with the Commission not later than 1 year after the effective date of the final system plan; and (iii) such discontinuance is not precluded by the terms of the leases and agreements referred to in such section 743(b)(2). (B) For purposes of this paragraph, rail service on rail properties is compensatory if the revenue attributable to such properties from such service equals or exceeds the sum of the avoidable costs of providing such service on such properties plus a reasonable return on the value of such rail properties, as determined in accordance with the standards developed pursuant to section 10362(b)(6) 1 1 (C) The Commission shall make its final determination, with respect to any discontinuance requested under this paragraph, not later than 120 days after the date of filing of an application therefor. The applicant shall have the burden of proving that the service involved is not compensatory. If the Commission fails to make a final determination within such time, the application shall be deemed to be granted. (D) The Commission may issue such rules, regulations, and procedures as it deems necessary for the conduct of its functions under this paragraph. (b) Abandonment (1) Except as provided in subsections (c) and (f) of this section, rail properties over which rail service has been discontinued under subsection (a) of this section may not be abandoned sooner than 120 days after the effective date of the discontinuance. Thereafter, except as provided in subsection (c) of this section, such rail properties may be abandoned upon 30 days notice in writing to any person (including a government entity) required to receive notice under subsection (a)(1)(C) of this section. (2) In any case in which rail properties proposed to be abandoned under this section are designated by the final system plan as rail properties which are suitable for use for other public purposes (including roads or highways, other forms of mass transportation, conservation, and recreation), such rail properties shall not be sold, leased, exchanged, or otherwise disposed of during the 240-day period beginning on the date of notice of proposed abandonment under this section unless such rail properties have first been offered, upon reasonable terms, for acquisition for public purposes. (3) Rail service may be discontinued, under subsection (a) of this section, and rail properties may be abandoned, under this section, notwithstanding any provision of part A of subtitle IV of title 49, the constitution or law of any State, or the decision of any court or administrative agency of the United States or of any State. (c) Continuation of rail services No rail service may be discontinued and no rail properties may be abandoned, pursuant to this section (1) in the case of service and properties referred to in subsections (a)(1) and (b)(1) of this section, after 2 years from the effective date of the final system plan or more than 2 years after the date on which the final rail service continuation payment is received, whichever is later; or (2) if a financially responsible person (including a government entity) offers (A) to provide a rail service continuation payment which is designed to cover the difference between the revenue attributable to such rail properties and the avoidable costs of providing rail service on such properties, together with a reasonable return on the value of such properties; (B) to provide a rail service continuation payment which is payable pursuant to a lease or agreement with a State or with a local or regional transportation authority under which financial support was being provided on January 2, 1974 (C) to purchase, pursuant to subsection (f) of this section, such rail properties in order to operate rail services thereon. If a rail service continuation payment is offered, pursuant to paragraph (2)(A) of this subsection, for both freight and passenger service on the same rail properties, the owner of such properties may not be entitled to more than one payment of a reasonable return on the value of such properties. (d) Rail freight service (1) If a rail service continuation payment is offered, pursuant to subsection (c)(2)(A) of this section, for rail freight service, the person offering such payment shall designate the operator of such service and enter into an operating agreement with such operator. The person offering such payment shall designate as the operator of such service (A) the Corporation, if rail properties of the Corporation connect with the line of railroad involved, unless the Commission determines that such rail service continuation could be performed more efficiently and economically by another railroad; (B) any other railroad whose rail properties connect with such line, if the Corporations rail properties do not so connect or if the Commission makes a determination in accordance with subparagraph (A) of this paragraph; or (C) any responsible person (including a government entity) which is willing to operate rail service over such rail properties. A designated railroad may refuse to enter into such an operating agreement only if the Commission determines, on petition by any affected party, that the agreement would substantially impair such railroads ability to serve adequately its own patrons or to meet its outstanding common carrier obligations. The designated operator shall, pursuant to each such operating agreement (i) be obligated to operate rail freight service on such rail properties, and (ii) be entitled to receive, from the person offering such payment, the difference between the revenue attributable to such properties and the avoidable costs of providing service on such rail properties, together with a reasonable management fee, as determined by the Office. (2) The trustees of a railroad in reorganization shall permit rail service to be continued on any rail properties with respect to which a rail service continuation payment operating agreement has been entered into under this subsection. Such trustees shall receive a reasonable return on the value of such properties, as determined in accordance with the standards developed pursuant to section 10362(b)(6) 1 (3) If necessary to prevent any disruption or loss of rail service, at any time after the date of conveyance, pursuant to section 743(b)(1) of this title (4) No determination of reasonable payment for the use of rail properties of a railroad in reorganization in the region, and no determination of value of rail properties of such a railroad (including supporting or related documents or reports of any kind) which is made in connection with any lease agreement, contract of sale, or other agreement or understanding which is entered into after October 19, 1976 (A) pursuant to this section; or (B) pursuant to section 762 1 1 49 U.S.C. 1613 shall be admitted as evidence, or used for any other purpose, in any civil action, or any other proceeding for damages or compensation, arising under this chapter. (e) Rail passenger service (1) The Corporation (or a profitable railroad) shall provide rail passenger service for a period of 180 days immediately following the date of conveyance (pursuant to section 743(b)(1) of this title (2) If a State (or a local or regional transportation authority) was providing financial assistance to support the operation of rail passenger service, pursuant to a lease or agreement which was in effect immediately prior to the date of conveyance (pursuant to such section 743(b)(1) of this title (A) such financial assistance is not provided; (B) a State (or a local or regional transportation authority) has not, by the end of such 180-day mandatory operation period, offered a rail service continuation payment pursuant to subsection (c)(2)(A) of this section; (C) an applicable rail service continuation payment pursuant to such subsection (c)(2)(A) is not paid when it is due; or (D) a payment required under a lease or agreement, pursuant to section 743(b)(2) of this title the Corporation (or, where applicable, the National Railroad Passenger Corporation, a profitable railroad, or the trustee or trustees of a railroad in reorganization in the region) may (i) discontinue such rail passenger service, and (ii) with respect to rail properties not designated for inclusion in the final system plan, abandon such properties pursuant to subsections (a) and (b) of this section. (3) Nothing in this subsection shall be construed to affect the obligation of the Corporation (or a profitable railroad), or of the trustees of the railroads in reorganization in the region, to provide rail passenger service pursuant to section 743(b)(2) of this title (4) If a State (or a local or regional transportation authority) (A) offers a rail service continuation payment, pursuant to subsection (c)(2)(A) of the 2 2 (B) provides compensation, pursuant to paragraph (2) of this subsection, for operations conducted during the 180-day mandatory operation period; or (C) offers a rail service continuation payment, pursuant to subsection (c)(2)(A) of this section, for the operation of rail passenger service provided under an agreement or lease pursuant to section 743(b)(2) of this title 1 49 U.S.C. 1613(a)(2) the Corporation (or a profitable railroad) shall continue to provide such service after the end of such period, except as otherwise provided in this subsection. (5) (A) The Secretary shall reimburse the Corporation (or a profitable railroad) for any loss which is incurred by it during the 180-day mandatory operation period specified in paragraph (1) of this subsection which is not compensated for by a State (or a local or regional transportation authority). The amount of such reimbursement shall be determined pursuant to section 17(a)(1) 1 (B) The Secretary shall reimburse States, local public bodies, and agencies thereof for additional costs incurred by such States, bodies, and agencies for rail service continuation payments for rail passenger service pursuant to section 17(a)(2) 1 (C) For purposes of the obligation of the Secretary to reimburse the Corporation (or a profitable railroad) or States, local public bodies, and agencies thereof under subparagraphs (A) and (B) of this paragraph, the level of rail passenger service shall be determined on the basis of train miles, car miles, or some other appropriate indicia of scheduled train movements. Programs to correct deferred maintenance on rolling stock, right-of-way, and other facilities which are designed to maintain service, meet on-time performance, and maintain a reasonable degree of passenger comfort (and costs incurred incident thereto) shall be included within the meaning of the term loss as used in subparagraph (A) of this paragraph and within the meaning of the term additional costs as used in subparagraph (B) of this paragraph and section 17(a)(2) 1 49 U.S.C. 1613(a)(2) (D) If a dispute arises with respect to the application of any such regulations, the parties to such dispute may submit such dispute to arbitration by a third party. If the parties are unable to agree upon the selection of an arbitrator, the Chairman of the Commission shall serve in that capacity (except as to matters required to be decided by the Commission, pursuant to section 562(a) of this title (6) Notwithstanding any other provision of this subsection, the Corporation is not obligated to provide rail passenger service on rail properties if a State (or a local or regional transportation authority) contracts for such service to be provided on such properties by an operator other than the Corporation, except that the Corporation shall, where appropriate, provide such operator with access to such properties for such purpose. (7) (A) If a State (or a local or regional transportation authority) in the region offers to provide payment for the provision of additional rail passenger service, the Corporation shall undertake to provide such service pursuant to this subsection (including the discontinuance provisions of paragraph (2) of this subsection). An offer to provide payment for the provision of additional rail passenger service shall be made in accordance with subsection (c)(2)(A) of this section, and shall be designed to avoid any additional costs to the Corporation arising from the construction or modification of capital facilities or from any additional operating delays or costs arising from the absence of such construction or modification. The State (or local or regional transportation authority) shall demonstrate that it has acquired, leased, or otherwise obtained access to all rail properties, other than those designated for conveyance to the National Railroad Passenger Corporation pursuant to sections 716(c)(1)(C) and 716(c)(1)(D) of this title and to the Corporation pursuant to section 743(b)(1) of this title (B) As used in this paragraph, the term additional rail passenger service means rail passenger service (other than rail passenger service provided pursuant to the provisions of paragraphs (2) and (4) of this subsection), including extended or expanded service and modified routings, which is to be provided over rail properties conveyed to the Corporation pursuant to section 743(b)(1) of this title (C) Notwithstanding any other provision of this paragraph, the Corporation shall not be required to operate additional rail passenger service over rail properties leased or acquired from or owned or leased by a profitable railroad in the region. (8) The Secretary shall, in consultation with the Association, conduct a study to determine the best means of compensating the Corporation for liabilities which it may incur for damages to persons or property, resulting from the operation of rail passenger service required to be operated pursuant to this subsection or section 743(b)(2) of this title November 8, 1978 (f) Purchase If an offer to purchase is made under subsection (c)(2)(C) of this section, such offer shall be accompanied by an offer of a rail service continuation payment. Such payment shall continue until the purchase transaction is completed, unless a railroad assumes operations over such rail properties of its own account pursuant to an order or authorization of the Commission. Whenever a railroad in reorganization in the region or a profitable railroad gives notice of intent to discontinue service pursuant to subsection (a) of this section, such railroad shall, upon the request of anyone apparently qualified to make an offer to purchase or to provide a rail service continuation payment, promptly make available its most recent reports on the physical condition of such property, together with such traffic and revenue data as would be required under subpart B of part 1121 of chapter X of title 49 of the Code of Federal Regulations and such other data as are necessary to ascertain the avoidable costs of providing service over such rail properties. (g) Abandonment by Corporation After the rail system to be operated by the Corporation or a subsidiary thereof under the final system plan has been in operation for 2 years, the Commission may authorize the Corporation or a subsidiary thereof to abandon any rail properties as to which it determines that rail service over such properties is not required by the public convenience and necessity, if the Corporation or a subsidiary thereof can demonstrate that no State (or local or regional transportation authority) is willing to offer a rail service continuation payment pursuant to subsection (c) of this section. The Commission may, at any time after the effective date of the final system plan, authorize additional rail service in the region or authorize the abandonment of rail properties which are not being operated by the Corporation or any subsidiary or affiliate thereof or by any other person. Determinations by the Commission under this subsection shall be made pursuant to applicable provisions of part A of subtitle IV of title 49. (h) Interim abandonment After February 5, 1976 section 743(b)(1) of this title (i) Disposition of designated rail properties No railroad in reorganization in the region and no person leased, operated or controlled by such a railroad shall sell, transfer, encumber, or otherwise dispose of rail property, or any right or interest therein, designated for transfer to the Corporation or conveyance to a profitable railroad in the final system plan, except pursuant to section 743(b) of this title (1) as to which the Association generally or specifically consents in writing; (2) which, prior to February 5, 1976 (3) following certification to the special court, pursuant to section 719(c) of this title ( Pub. L. 93236, title III,  304 Jan. 2, 1974 87 Stat. 1008 Pub. L. 94210, title VI,  607(i) Feb. 5, 1976 90 Stat. 97 Pub. L. 94555, title II Oct. 19, 1976 90 Stat. 2620 Pub. L. 95473,  4(b) Oct. 17, 1978 92 Stat. 1466 Pub. L. 95607, title II,  201 Nov. 8, 1978 92 Stat. 3064 Pub. L. 97449,  4(b)(2) Jan. 12, 1983 96 Stat. 2441 Pub. L. 102240, title III,  3003(b) Dec. 18, 1991 105 Stat. 2088 Pub. L. 10488, title III,  327(3) Dec. 29, 1995 109 Stat. 951 Pub. L. 104287,  6(f)(4)(A) Oct. 11, 1996 110 Stat. 3399  Editorial Notes  References in Text Section 10362(b)(6) of title 49 Pub. L. 10488, title I,  102(a) Dec. 29, 1995 109 Stat. 804 section 10362(b)(6) of title 49 section 205(d)(6) of Pub. L. 93236 Pub. L. 95473,  3(b) Oct. 17, 1978 92 Stat. 1466 Section 762 of this title Pub. L. 94210, title VIII,  806 Feb. 5, 1976 90 Stat. 143 Apr. 1, 1978 Section 17 of the Federal Transit Act, referred to in subsecs. (d)(4)(B) and (e)(4)(C), (5)(A) to (C), which was classified to section 1613 of former Title 49, Transportation, was repealed by Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379 Section 77 of the Bankruptcy Act, referred to in subsec. (i)(2), was classified to section 205 of former Title 11, Bankruptcy. The Bankruptcy Act ( act July 1, 1898, ch. 541 30 Stat. 544 Oct. 1, 1979 Pub. L. 95598 Nov. 6, 1978 92 Stat. 2682 Amendments 1996Subsec. (b)(3). Pub. L. 104287 Pub. L. 10488,  327(3)(B) 1995Subsec. (a)(2)(B). Pub. L. 10488,  327(3)(A) section 10362(b)(6) of title 49 Subsec. (b)(3). Pub. L. 10488,  327(3)(B) Pub. L. 104287 Subsec. (d)(3). Pub. L. 10488,  327(3)(C) (B) shall have authority, in accordance with the provisions of section 1(16)(b) of the Interstate Commerce Act ( 49 U.S.C. 1(16)(b) For purposes of the preceding sentence, any compensation required as a result of such directed service shall be determined in accordance with the standards developed pursuant to section 205(d)(6) of this Act. Subsec. (e)(4)(A). Pub. L. 10488,  327(3)(D)(i) Subsec. (e)(4)(C). Pub. L. 10488,  327(3)(D)(ii) Subsec. (e)(5)(A), (B). Pub. L. 10488,  327(3)(E) Subsec. (e)(7)(A). Pub. L. 10488,  327(3)(F) Subsec. (g). Pub. L. 10488,  327(3)(G) 1991Subsecs. (d)(4)(B), (e)(4)(C), (5)(A) to (C). Pub. L. 102240 1983Subsec. (j). Pub. L. 97449 section 304(j) of Pub. L. 93236 Oct. 17, 1978 Pub. L. 95473 Pub. L. 94210 1978Subsec. (e). Pub. L. 95607 Subsec. (j). Pub. L. 95473 1976Subsec. (a). Pub. L. 94210,  804 Subsec. (b). Pub. L. 94210,  804 Subsec. (c). Pub. L. 94210,  804 Subsec. (d). Pub. L. 94210,  804 Subsec. (d)(4). Pub. L. 94555,  205(a) Subsec. (e). Pub. L. 94210 Subsec. (e)(5)(D). Pub. L. 94555,  205(b) Subsec. (f). Pub. L. 94210,  804 Subsec. (g). Pub. L. 94210,  804 Subsec. (h). Pub. L. 94210,  804 February 5, 1976 section 743(b)(1) of this title January 2, 1974 Subsecs. (i), (j). Pub. L. 94210,  804 Subsec. (j)(1). Pub. L. 94555,  206(1) Subsec. (j)(2)(B). Pub. L. 94555,  206(2) Statutory Notes and Related Subsidiaries Effective Date of 1996 Amendment Pub. L. 104287,  6(f)(4)(A) Oct. 11, 1996 110 Stat. 3399 Dec. 29, 1995 Effective Date of 1995 Amendment Amendment by Pub. L. 10488 Jan. 1, 1996 section 2 of Pub. L. 10488 section 1301 of Title 49 Effective Date of 1976 Amendment Amendment by Pub. L. 94555 Oct. 1, 1976 section 303 of Pub. L. 94555 section 702 of this title  Abolition of Special Court, Regional Rail Reorganization Act of 1973, and Transfer of Functions Special court abolished and all jurisdiction and functions transferred to United States District Court for District of Columbia, see section 719(b)(2) of this title  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title Applicability of National Environmental Policy Act Application of National Environmental Policy Act to actions of Commission not affected by title VI of Pub. L. 94210 section 619 of Pub. L. 94210 section 791 of this title  744a. End of Conrail commuter service obligation  Notwithstanding any other provision of law or contract, Conrail shall be relieved of any legal obligation to operate commuter service on January 1, 1983 ( Pub. L. 9735, title XI,  1136 Aug. 13, 1981 95 Stat. 647  Editorial Notes Codification Section was enacted as part of the Omnibus Budget Reconciliation Act of 1981 and also as part of the Northeast Rail Service Act of 1981, and not as part of the Regional Rail Reorganization Act of 1973 which comprises this chapter. Statutory Notes and Related Subsidiaries Effective Date Section effective Aug. 13, 1981 section 1169 of Pub. L. 9735 section 1101 of this title Authorization of Appropriation To Facilitate Transfer of Rail Commuter Service From Conrail to Other Operators; Standards for Distribution of Appropriated Funds Pub. L. 9735, title XI,  1139(b) Aug. 13, 1981 95 Stat. 652 Pub. L. 97468, title V,  504(a) Jan. 14, 1983 96 Stat. 2552  (1) There are authorized to be appropriated to the Secretary not to exceed $50,000,000, to facilitate the transfer of rail commuter services from Conrail to other operators. The Secretary shall by regulation prescribe standards for the obligation of such funds, and shall ensure that distribution of such funds is equitably made between Amtrak Commuter and the commuter authorities that operate commuter service. In providing for the distribution of such funds, the Secretary shall consider any particular adverse financial impact upon any commuter authority that results from the termination of any lease or agreement between such commuter authority and Conrail. Amounts appropriated under this section are authorized to remain available until October 1, 1986 (2) Any funds appropriated under the authority of this subsection shall be distributed by the Secretary to Amtrak Commuter and commuter authorities according to the statutory provisions of paragraph (1) of this subsection within 60 days after receipt of an application by Amtrak Commuter or such commuter authorities or within 60 days after the date of enactment of the Rail Safety and Service Improvement Act of 1982 [ Jan. 14, 1983  745. Continuing reorganization; supplemental transactions (a) Proposals If the Secretary or the Association determines that, as part of continuing reorganization, further restructuring of rail properties in the region through transactions supplemental to the final system plan would promote the establishment and retention of a financially self-sustaining rail service system in the region adequate to meet the needs of the region, the Secretary or the Association, as the case may be, may develop proposals for such supplemental transactions as are necessary or appropriate to implement the needed restructuring. Transfers of rail properties included in proposals developed by the Association shall be limited to (1) rail properties which would have qualified for designation under section 716(c)(1)(A) of this title (b) Evaluation by Association The Association shall analyze each proposal containing one or more supplemental transactions, taking into account the comments of interested persons and statements and exhibits submitted at any public hearings which may have been held. The Association shall, within 120 days after the publication of a summary thereof under subsection (a) of this section, publish in the Federal Register a report evaluating such proposal. Such evaluation shall state whether the supplemental transactions contained in such proposal, considered in their entirety, are (1) in the public interest and consistent with the purposes of this chapter and the goals of the final system plan, and (2) fair and equitable. If the Corporation opposes, or seeks modification of, any such proposed transfer, its written comments shall be given due consideration by the Association and shall be published as part of the evaluation. Within 30 days after the Association publishes its report, each proposed transferor or transferee shall notify the Association in writing as to whether any proposed supplemental transaction requiring the transfer of any property from or to such transferor or transferee is acceptable to such proposed transferor or transferee. If any such proposed transferor (other than the Corporation) or transferee fails to notify the Association that any proposed supplemental transaction requiring the transfer of any property from such transferor or to such transferee is acceptable to it, no further administrative or judicial proceedings shall be conducted with respect to such proposed supplemental transaction. (c) Review by Commission Within 90 days after the publication in the Federal Register of each report referred to in subsection (b) of this section, the Commission shall determine whether the supplemental transactions referred to in the report, considered in their entirety, would be in the public interest and consistent with the purposes of this chapter and the goals of the final system plan. In making such determination, the Commission shall give due consideration to the views received by it, within 30 days after the publication of the applicable report, from the Corporation and the Secretary. The Commission may condition its approval of such supplemental transactions on such reasonable terms and conditions as it may deem necessary in the public interest. The approval by the Commission of such supplemental transactions shall not be a prerequisite to the consummation of such transactions, but any determination of the Commission modifying, approving, or disapproving any proposed supplemental transactions shall be given due weight and consideration by the special court in the proceedings prescribed in subsection (d) of this section. If the Commission fails to act within the time period provided in this subsection, the supplemental transactions involved shall be deemed to have been approved by the Commission. The Commission may prescribe such regulations as may be necessary for the administration of this section. (d) Special court proceedings (1) If the Association has made the determination pursuant to subsection (b) of this section that a proposal for supplemental transactions is in the public interest and consistent with the purposes of this chapter and the goals of the final system plan, and is fair and equitable, the Association shall, within 40 days after the date of the Commissions determination under subsection (c) of this section, or after the expiration of the 90-day period referred to in such subsection (c), whichever is applicable, petition the special court for an order of such court finding that such proposal for supplemental transactions is in the public interest and consistent with the purposes of this chapter and the goals of the final system plan, and is fair and equitable, and directing the Corporation to carry out the supplemental transactions specified in such proposal. If the Association has determined, pursuant to subsection (b) of this section that a proposal made by the Secretary is not in the public interest or is not consistent with the purposes of this chapter and the goals of the final system plan or is not fair and equitable, the Secretary may, if he determines that such proposal is in the public interest and consistent with the purposes of this chapter and the goals of the final system plan and is fair and equitable, petition the special court for an order of such court finding that such proposal for supplemental transactions is in the public interest and consistent with the purposes of this chapter and the goals of the final system plan and is fair and equitable, and directing the Corporation to carry out any supplemental transactions specified in such proposal. Such a petition shall be submitted to the special court within 90 days after the date of the Commissions determination under such subsection (c), or after the expiration of the 90-day period referred to in such subsection (c), whichever is applicable. (2) After the filing of a petition under paragraph (1) of this subsection, the special court shall decide, after a hearing, whether the proposed supplemental transactions contained in such petition, considered in their entirety, are in the public interest and consistent with the purposes of this chapter and the goals of the final system plan and are fair and equitable. If the special court determines that such proposed supplemental transactions, considered in their entirety, are in the public interest and consistent with the purposes of this chapter and the goals of the final system plan and are fair and equitable, it shall, upon making such determination, issue such orders as may be necessary to direct the Corporation to consummate the transactions. If the special court determines that such proposed supplemental transactions, considered in their entirety, are not in the public interest or not consistent with the purposes of this chapter and the goals of the final system plan, or are not fair and equitable, it shall file an opinion stating its conclusion and the reasons therefor. In such event the Association (in the case of a proposal developed by the Association) or the Secretary (in the case of a proposal developed by the Secretary) may, within 120 days after the filing of such opinion, certify to the special court that the terms and conditions of the proposal have been modified consistent with the opinion of the court and are acceptable to each proposed transferor (other than the Corporation) or transferee, and may petition the special court for reconsideration of the proposal as so modified. After the filing of such petition, the special court shall decide, after a hearing, whether the proposal as modified by the certification is in the public interest and consistent with the purposes of this chapter and the goals of the final system plan and is fair and equitable, and shall enter such further orders as are consistent with its determination. (3) The Corporation is authorized to petition the special court and to be represented regarding any proposed supplemental transaction, contained in a proposal developed by either the Association or the Secretary, which involves the properties of the Corporation. (4) In proceedings under this subsection, the special court is authorized to exercise the powers of a reorganization court. (5) Any evaluation by the Association, the Secretary, or the Commission shall not be reviewable in any court except the special court in accordance with the provisions of this section. The supplemental transactions shall not be restrained or enjoined by any court nor shall they be otherwise reviewable by any court other than by the special court to the extent provided in this section. (6) Notwithstanding any other provision of this chapter, no findings, determinations, or proceedings shall be required with respect to any proposal for supplemental transactions other than as expressly set forth in this section. (7) Repealed. Pub. L. 9735, title XI,  1155(b) Aug. 13, 1981 95 Stat. 679 (8) A final order or judgment of the special court entering or denying an order pursuant to this subsection shall be reviewable in the same manner as provided in section 719(e)(3) of this title (e) Fair and equitable defined As used in this section, the term fair and equitable means fair and equitable, in accordance with the standards applicable to the approval of a plan of reorganization (or a step in such plan) under section 77 of the Bankruptcy Act 1 1 (1) the estates of railroads in reorganization in the region and persons leased, operated, or controlled by such railroads who have conveyed rail properties, under section 743(b)(1) of this title (2) the holders of other securities of the Corporation. Whenever any property or securities of the Corporation are required to be valued in order to determine whether the terms of a supplemental transaction are fair and equitable, the special court shall give proper recognition to the contributions to the Corporation by all classes of security holders, except that such court shall not assign to the series B preferred stock or the common stock of the Corporation any values added to those securities, by reason of investment by the Association in debentures and series A preferred stock of the Corporation, in excess of any value required by constitutional principles applicable to a reorganization process. (f) Expedited proposals (1) Within 240 days after the effective date of the Staggers Rail Act of 1980, the Secretary, after providing an opportunity for comments from interested parties, shall determine whether to initiate a proposal for a supplemental transaction under this section for the transfer of all rail properties of the Corporation in the States of Connecticut and Rhode Island to another railroad in the region. If the Secretary determines that (A) the proposed transferee railroad is financially and operationally capable of assuming the freight operations and freight service obligations of the Corporation on a financially self-sustaining basis; (B) the proposed transfer would promote the establishment and retention of a financially self-sustaining rail system in the States of Connecticut and Rhode Island adequate to meet the needs of such States; and (C) the proposed transfer is consistent with the goals set forth in section 716(a)(8) of this title the Secretary shall develop such a proposal and may, after providing the Association, the Commission, and the States of Connecticut and Rhode Island an opportunity to review and comment on such proposal, petition the special court for an order to carry out such proposal. (2) (A) Within 10 days after August 13, 1981 August 13, 1981 (B) Within 120 days after August 13, 1981 (i) which have under subparagraph (A) of this paragraph completed negotiations and submitted to the Secretary a proposal to assume all of the freight operations and freight service obligations of the Corporation in such States on a financially self-sustaining basis for a period of at least four years; or (ii) which have developed a proposal to assume all of the freight operations and freight service obligations of the Corporation in such States under an agreement by and between the Corporation and such railroad or railroads; or (iii) which have, prior to May 1, 1981 For the purpose of this section, an order to transfer may include the Corporation if the Corporation agrees to maintain service over lines retained by the Corporation for four years. (C) To permit efficient and effective rail operations consistent with the public interest, as a part of any transfer under paragraph (2)(B) of this subsection, the Secretary shall promote the transfer of additional non-mainline Corporation properties in adjoining States that connect with properties that are the subject of such transfer. (D) The special court shall determine a fair and equitable price for the rail properties to be transferred under this subsection, and shall, unless the parties otherwise agree, establish divisions of joint rates for through routes over such properties which are fair and equitable to the parties. The special court shall establish a method to ensure that such divisions are promptly paid. (E) Notwithstanding any other provision of law or agreement in effect on May 1, 1981 (3) If the special court determines that a proposal developed under this subsection is fair and equitable, meets the requirements of this subsection, and is in the public interest, it shall issue such orders as may be necessary to carry out such proposal. The provisions of paragraphs (2)(6) of subsection (d) of this section shall apply to the determination of the special court under this subsection, except that the standards for such determination shall be those set forth in this paragraph. (4) (A) Any employee who was protected by the compensatory provisions of subchapter V 2 2 August 13, 1981 2 (B) As used in this paragraph, employee deprived of employment means any employee who is unable to secure employment through the normal exercise of seniority rights, but does not include any employee who refuses an offer of employment with a railroad acquiring properties under this subsection. (g) Transfer of properties and freight service obligations of specific lines (1) Within 20 days after August 13, 1981 (2) Within 120 days after August 13, 1981 (3) The Secretary shall determine a fair and equitable price for the rail properties to be transferred under this subsection, and shall, unless the parties otherwise agree, establish divisions of joint rates for through routes over such properties which are fair and equitable to the parties. (4) The Secretary shall determine fair and equitable terms for the provision of such trackage rights, on segments of the Corporations lines not to exceed 5 miles per line transferred, to acquiring carriers as may be necessary to operate such transferred lines in an efficient manner. ( Pub. L. 93236, title III,  305 Pub. L. 94210, title VI,  610(b) Feb. 5, 1976 90 Stat. 100 Pub. L. 96448, title VI,  601(a) Oct. 14, 1980 94 Stat. 1958 Pub. L. 9735, title XI,  1155 Aug. 13, 1981 95 Stat. 677 Pub. L. 98620, title IV,  402(48) Nov. 8, 1984 98 Stat. 3360 Pub. L. 104317, title VI,  605(c)(2) Oct. 19, 1996 110 Stat. 3859  Editorial Notes  References in Text Section 77 of the Bankruptcy Act, referred to in subsec. (e), was classified to section 205 of former Title 11, Bankruptcy. The Bankruptcy Act ( act July 1, 1898, ch. 541 30 Stat. 544 Oct. 1, 1979 Pub. L. 95598 Nov. 6, 1978 92 Stat. 2682 The effective date of the Staggers Rail Act of 1980, referred to in subsec. (f)(1), probably means Oct. 1, 1980 section 601(a) of Pub. L. 96448 section 710 of Pub. L. 96448 section 1170 of Title 11 Subchapter V of this chapter, referred to in subsec. (f)(4)(A), was repealed by Pub. L. 9735, title XI,  1144(a)(1) Aug. 13, 1981 95 Stat. 669 Section 797 of this title Pub. L. 99509, title IV,  4024(c) Oct. 21, 1986 100 Stat. 1904 Apr. 2, 1987 Amendments 1996Subsec. (d)(4). Pub. L. 104317 1984Subsec. (d)(2). Pub. L. 98620 1981Subsec. (d)(7). Pub. L. 9735,  1155(b) Subsec. (f). Pub. L. 9735,  1155(a) Subsec. (g). Pub. L. 9735,  1155(c) 1980Subsec. (f). Pub. L. 96448 Statutory Notes and Related Subsidiaries Effective Date of 1996 Amendment Amendment by Pub. L. 104317 Oct. 19, 1996 section 605(e) of Pub. L. 104317 section 719 of this title Effective Date of 1984 Amendment Amendment by Pub. L. 98620 Nov. 8, 1984 section 403 of Pub. L. 98620 section 1657 of Title 28 Effective Date of 1981 Amendment Amendment by Pub. L. 9735 Aug. 13, 1981 section 1169 of Pub. L. 9735 section 1101 of this title Effective Date of 1980 Amendment Amendment by Pub. L. 96448 Oct. 1, 1980 section 710(a) of Pub. L. 96448 section 1170 of Title 11  Abolition of Special Court, Regional Rail Reorganization Act of 1973, and Transfer of Functions Special court abolished and all jurisdiction and functions transferred to United States District Court for District of Columbia, see section 719(b)(2) of this title  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49 See section 1341 of this title Applicability of National Environmental Policy Act Application of National Environmental Policy Act to actions of Commission not affected by title VI of Pub. L. 94210 section 619 of Pub. L. 94210 section 791 of this title Rail Abandonment and Discontinuance of Service Report Pub. L. 94210, title IX,  904 Feb. 5, 1976 90 Stat. 148 Feb. 5, 1976 section 702 of this title Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379  746. Certificates of value (a) General On the date when the Corporation is required to deposit securities with the special court pursuant to section 743(a)(1) of this title (b) Number and distribution A separate series of certificates of value shall be issued to each railroad in reorganization in the region and each person leased, operated, or controlled by such a railroad that transfers rail properties to the Corporation or a subsidiary thereof. The number of certificates of value of each series to be deposited pursuant to subsection (a) shall be equal to the number of shares of series B preferred stock of the Corporation which are required to be deposited by the Corporation with the special court, pursuant to section 743(a)(1) of this title section 743(c)(4) of this title (c) Redemption (1) Certificates of value, of any series, shall be redeemed by the Association on December 31, 1987 (2) Each certificate of value of each series shall be redeemable for an amount, payable in cash, equal to its base value on the redemption date, minus (A) the sum of the fair market value of the series B preferred stock applicable to such certificate, the fair market value of the common stock applicable to such certificate, and all cash dividends theretofore paid on any such series B preferred stock and on any such common stock; and (B) any sums paid to a transferor of rail properties to whom such series of certificates of value was issued resulting from sales or leases by the Corporation of properties transferred to it by such transferor divided by the number of certificates of value distributed to such transferor. (3) The number of shares of series B preferred stock and common stock applicable to each certificate of value of any series, pursuant to paragraph (2) of this subsection, shall be (A) one share of series B preferred stock (adjusted to reflect any stock splits, stock combinations, reclassifications or similar transactions affecting the number of shares of outstanding series B preferred stock following the date of distribution pursuant to section 743(c)(4) of this title (B) the number of shares of common stock determined by dividing the total number of shares of common stock distributed pursuant to section 743(c)(4) of this title section 743(c)(4) of this title (4) The base value of each certificate of value of any series shall be the value obtained by (A) taking the net liquidation value, as determined by the special court, to which the transferor to whom such series of certificates of value is issued is entitled by virtue of transfers of rail properties, under section 743(b)(1) of this title section 743(b)(1) of this title section 743(b)(6) of this title (5) The fair market value of series B preferred stock and of common stock of the Corporation shall be determined in accordance with regulations prescribed by the Association, on the basis of the average price of each such security in the primary established market in which such securities are traded over a period of 120 consecutive trading days ending not less than 20 nor more than 40 trading days preceding the redemption date, or, in the case of a security for which there is not an established trading market, on the basis of the fair market value thereof as determined by the majority vote of three experts in the valuation of securities, one to be selected by the Association, one to be selected by the directors of the Corporation elected by the holders of the security to be valued, and one to be selected by the two first selected. (d) Authorization of appropriations There are authorized to be appropriated to the Secretary such sums as are necessary to discharge the obligations of the United States arising under this section. ( Pub. L. 93236, title III,  306 Pub. L. 94210, title VI,  610(b) Feb. 5, 1976 90 Stat. 104 Pub. L. 94248 Mar. 25, 1976 90 Stat. 286  Editorial Notes Amendments 1976Subsec. (c)(3)(A). Pub. L. 94248,  2 Subsec. (c)(3)(B). Pub. L. 94248,  3 Statutory Notes and Related Subsidiaries  Abolition of Special Court, Regional Rail Reorganization Act of 1973, and Transfer of Functions Special court abolished and all jurisdiction and functions transferred to United States District Court for District of Columbia, see section 719(b)(2) of this title  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title Applicability of National Environmental Policy Act Application of National Environmental Policy Act to actions of Commission not affected by title VI of Pub. L. 94210 section 619 of Pub. L. 94210 section 791 of this title  747. Protection of Federal funds (a) Audit (1) The Comptroller General of the United States is authorized to audit the programs, activities, and financial operations of the Corporation for any period during which (A) Federal funds provided pursuant to this chapter are being used to finance any portion of its operations, or (B) Federal funds have been invested therein pursuant to this chapter. Any such audit may be conducted under such rules and regulations as the Comptroller General may prescribe. The Comptroller General shall report to the Congress at such times and to such extent as he considers necessary to keep the Congress informed on the security of such Federal funds and guarantees and, to the extent appropriate, make recommendations for achieving greater economy, efficiency, and effectiveness in such programs, activities, and operations. (2) For the purpose of any audit conducted pursuant to subsection (a) of this section, the Comptroller General, or a designated representative of the Comptroller General, shall have access to and the right to examine all books, accounts, records, reports, files, and other papers, items, or property belonging to or in use by the Corporation. (b) Report The Association shall prepare and submit an annual report to Congress on the performance of the Corporation in order to keep the Congress informed as to matters which may affect the quality of rail services in the region and which may affect the security of Federal funds referred to in subsection (a) of this section. Each such report shall be submitted within 150 days after the end of the fiscal year of the Corporation. Each such report shall include an evaluation of (1) the degree to which the goals of section 716(a) of this title (2) the amounts and causes of deviations, if any, from the financial projections of the final system plan; (3) the amount of Federal funds made available to the Corporation and a clear description of the uses of such funds; (4) the projected financial needs of the Corporation; (5) the projected sources from which such financial needs are likely to be met; and (6) the ability of the Corporation to become financially self-sustaining without requiring Federal funds in excess of those authorized by section 716(f) of this title (c) Monitoring of Corporation (1) The Association shall also report to the Congress, in accordance with this subsection, on the policies of the Corporation and the results of such policies with respect to operations, cost containment, and marketing. (2) Within 90 days after November 1, 1978 (3) Using such indicia, the Association shall report on (A) the relationship of each constituent part or groups of parts to the Corporations revenue and capital and operating expenses, (B) the extent to which such parts or group of parts contributes to profits or losses, (C) the efforts of management to contain or reduce the contribution of such part or group of parts to losses, (D) the results of such efforts, and (E) such other information as the Association deems necessary or appropriate. (4) The Association shall (A) transmit to the Congress the first such monitoring report pursuant to paragraph (3) at the end of the first calendar quarter which begins after the end of the 90-day period for preparation and submission of the methodological information pursuant to paragraph (2), (B) report such monitoring information to the Congress at the end of the first quarter of each calendar year thereafter, (C) update methodological and monitoring information periodically as the Association deems necessary or appropriate, but in no case less frequently than once a year, and (D) where the results of such updating are statistically significant or relevant to Congressional policymaking, report them and the reasons for their significance at the end of the calendar quarter in which the updating occurred. ( Pub. L. 93236, title III,  307 Pub. L. 94210, title VI,  609 Feb. 5, 1976 90 Stat. 99 Pub. L. 95565,  7 Nov. 1, 1978 92 Stat. 2400  Editorial Notes Amendments 1978Subsec. (c). Pub. L. 95565 Statutory Notes and Related Subsidiaries Conrail Funding Studies; Reports to Congress; Recommendations for Financially Self-Sustaining Rail System; Availability of Recommendations; Publication in Federal Register; Comments on Reports; Recommendations by Secretary on Future Structure and Operations by Corporation; Immunity From Antitrust Laws; Analysis of Effects on Corporation and Employees of Alternative Changes in Labor Agreements and Related Operational Changes; Projections on Benefits, Changes, Savings, and Increased Revenues Pub. L. 96448, title VII,  703(a) Oct. 14, 1980 94 Stat. 1962 Apr. 1, 1980 Apr. 1, 1981 May 1, 1981 Apr. 1, 1981 May 1, 1981 section 791(a)(3) of this title May 1, 1981 Mar. 15, 1981 Jan. 15, 1981 Pub. L. 96448 Oct. 14, 1980 94 Stat. 1895 Termination of Reporting Requirements For termination, effective May 15, 2000 section 3003 of Pub. L. 10466 section 1113 of Title 31  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title Applicability of National Environmental Policy Act Application of National Environmental Policy Act to actions of Commission not affected by title VI of Pub. L. 94210 section 619 of Pub. L. 94210 section 791 of this title  748. Abandonments (a) General The Corporation may, in accordance with this section, file with the Commission an application for a certificate of abandonment for any line which is part of the system of the Corporation. Any such application shall be governed by this section and shall not, except as specifically provided in this section, be subject to the provisions of chapter 109 of title 49. (b) Applications for abandonment Any application for abandonment that is filed by the Corporation under this section before December 1, 1981 (c) Notice of insufficient revenues (1) The Corporation may, prior to November 1, 1985 (2) At any time after the 90-day period beginning with the filing of a notice of insufficient revenues for a line, the Corporation may file an application for abandonment for such line. An application for abandonment that is filed by the Corporation under this subsection for a line for which a notice of insufficient revenues was filed under paragraph (1) shall be granted by the Commission within 90 days after the date such application is filed unless, within such 90-day period, an offer of financial assistance is made in accordance with subsection (d) of this section with respect to such line. (d) Offers of financial assistance (1) The provisions of section 10904 of title 49 (2) The Corporation shall provide any person that intends to make an offer of financial assistance under subsection (b) or (c) of this section with such information as the Commission may require. (e) Liquidation (1) If any application for abandonment is granted under subsection (b) of this section, the Commission shall, as soon as practicable, appraise the net liquidation value of the line to be abandoned, and shall publish notice of such appraisal in the Federal Register. (2) Appraisals made under paragraph (1) shall not be appealable. (3) (A) If, within 120 days after the date on which an appraisal is published in the Federal Register under paragraph (1), the Corporation receives a bona fide offer for the sale, for 75 percent of the amount at which the liquidation value of such line was appraised by the Commission, of the line to be abandoned, the Corporation shall sell such line and the Commission shall, unless the parties otherwise agree, establish an equitable division of joint rates for through routes over such lines. (B) If the Corporation receives no bona fide offer under subparagraph (A), within such 120-day period, the Corporation may abandon or dispose of the line as it chooses, except that the Corporation may not dismantle bridges, or other structures (not including rail, signals, and other rail facilities) for 120 days thereafter. The Secretary may require that bridges or other structures (not including rail, signals, and other rail facilities), not be dismantled for an additional 8 months if he assumes all liability of any sort related to such property. (4) If the purchaser under paragraph (3)(A) of this subsection of any line of the Corporation abandons such line within five years after such purchase, the proceeds of any track liquidations shall be paid into the general fund of the Treasury of the United States. (f) Employee protection The provisions of section 10903(b)(3) 1 1 Section 10903(b) of Title 49 2 2 August 13, 1981 2 ( Pub. L. 93236, title III,  308 Pub. L. 9735, title XI,  1156(a) Aug. 13, 1981 95 Stat. 679 Pub. L. 98181, title II,  2003(c)(2) Nov. 30, 1983 97 Stat. 1298 Pub. L. 10488, title III,  327(4) Dec. 29, 1995 109 Stat. 952  Editorial Notes  References in Text Subchapter V of this chapter, referred to in subsec. (f), was repealed by Pub. L. 9735, title XI,  1144(a)(1) Aug. 13, 1981 95 Stat. 669 Section 797 of this title Pub. L. 99509, title IV,  4024(c) Oct. 21, 1986 100 Stat. 1904 Apr. 2, 1987 Amendments 1995Subsec. (d)(1). Pub. L. 10488,  327(4)(A) Subsec. (f). Pub. L. 10488,  327(4)(B) 1983Subsec. (c)(1). Pub. L. 98181 Statutory Notes and Related Subsidiaries Effective Date of 1995 Amendment Amendment by Pub. L. 10488 Jan. 1, 1996 section 2 of Pub. L. 10488 section 1301 of Title 49 Effective Date Section effective Aug. 13, 1981 section 1169 of Pub. L. 9735 section 1101 of this title  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49 SUBCHAPTER IV TRANSFER OF FREIGHT SERVICES  761 to 769c. Repealed. Pub. L. 99509, title IV,  4033(a)(1) Oct. 21, 1986 100 Stat. 1908   Section 761, Pub. L. 93236, title IV,  401 Pub. L. 9735, title XI,  1142 Aug. 13, 1981 95 Stat. 654  A prior section 761, Pub. L. 93236, title IV,  401 Jan. 2, 1974 87 Stat. 1010 Pub. L. 94210, title VIII,  806 Feb. 5, 1976 90 Stat. 143 Apr. 1, 1978  Section 762, Pub. L. 93236, title IV,  402 Pub. L. 9735, title XI,  1142 Aug. 13, 1981 95 Stat. 655  A prior section 762, Pub. L. 93236, title IV,  402 Jan. 2, 1974 87 Stat. 1010 Pub. L. 93488,  1(d) Oct. 26, 1974 88 Stat. 1464 Pub. L. 94210, title VIII,  805(a) Feb. 5, 1976 90 Stat. 139 Pub. L. 94210, title VIII,  806 Feb. 5, 1976 90 Stat. 143 Apr. 1, 1978  Section 763, Pub. L. 93236, title IV,  403 Pub. L. 9735, title XI,  1142 Aug. 13, 1981 95 Stat. 655  A prior section 763, Pub. L. 93236, title IV,  403 Jan. 2, 1974 87 Stat. 1012 Pub. L. 93488,  1(e) 88 Stat. 1465 Pub. L. 94210, title VIII,  805(b) Feb. 5, 1976 90 Stat. 142 Pub. L. 94210, title VIII,  806 Feb. 5, 1976 90 Stat. 143 Apr. 1, 1978  Section 764, Pub. L. 93236, title IV,  404 Pub. L. 9735, title XI,  1142 Aug. 13, 1981 95 Stat. 656  Section 765, Pub. L. 93236, title IV,  405 Pub. L. 9735, title XI,  1142 Aug. 13, 1981 95 Stat. 657  Section 766, Pub. L. 93236, title IV,  406 Pub. L. 9735, title XI,  1142 Aug. 13, 1981 95 Stat. 658  Section 767, Pub. L. 93236, title IV,  407 Pub. L. 9735, title XI,  1142 Aug. 13, 1981 95 Stat. 658  Section 768, Pub. L. 93236, title IV,  408 Pub. L. 9735, title XI,  1142 Aug. 13, 1981 95 Stat. 659  Section 769, Pub. L. 93236, title IV,  409 Pub. L. 9735, title XI,  1142 Aug. 13, 1981 95 Stat. 659  Section 769a, Pub. L. 93236, title IV,  410 Pub. L. 9735, title XI,  1142 Aug. 13, 1981 95 Stat. 660  Section 769b, Pub. L. 93236, title IV,  411 Pub. L. 9735, title XI,  1146(a) Aug. 13, 1981 95 Stat. 672  Section 769c, Pub. L. 93236, title IV,  412 Pub. L. 9735, title XI,  1146(a) Aug. 13, 1981 95 Stat. 673 SUBCHAPTER V EMPLOYEE PROTECTION  771 to 780. Repealed. Pub. L. 9735, title XI,  1144(a)(1) Aug. 13, 1981 95 Stat. 669   Section 771, Pub. L. 93236, title V,  501 Jan. 2, 1974 87 Stat. 1012 Pub. L. 94210, title VI Feb. 5, 1976 90 Stat. 97 Pub. L. 94248,  5 Mar. 25, 1976 90 Stat. 286 Pub. L. 94555, title II,  207(a) Oct. 19, 1976 90 Stat. 2621 Pub. L. 96448, title V,  508(d) Oct. 14, 1980 94 Stat. 1957  Section 772, Pub. L. 93236, title V,  502 Jan. 2, 1974 87 Stat. 1013 Pub. L. 94210, title VI,  614 Feb. 5, 1976 90 Stat. 112  Section 773, Pub. L. 93236, title V,  503 Jan. 2, 1974 87 Stat. 1014  Section 774, Pub. L. 93236, title V,  504 Jan. 2, 1974 87 Stat. 1014 Pub. L. 94210, title VI,  615 Feb. 5, 1976 90 Stat. 113 Pub. L. 94555, title II Oct. 19, 1976 90 Stat. 2622 Pub. L. 96448, title V,  506 Oct. 14, 1980 94 Stat. 1956  Section 775, Pub. L. 93236, title V,  505 Jan. 2, 1974 87 Stat. 1015 Pub. L. 94210, title VI,  616(a) Feb. 5, 1976 90 Stat. 115 Pub. L. 94555, title II Oct. 19, 1976 90 Stat. 2623 Pub. L. 96448, title V Oct. 14, 1980 94 Stat. 19481954  Section 776, Pub. L. 93236, title V,  506 Jan. 2, 1974 87 Stat. 1019  Section 777, Pub. L. 93236, title V,  507 Jan. 2, 1974 87 Stat. 1020 Pub. L. 96448, title V,  508(e) Oct. 14, 1980 94 Stat. 1957  Section 778, Pub. L. 93236, title V,  508 Jan. 2, 1974 87 Stat. 1020 Pub. L. 94210, title VI,  617 Feb. 5, 1976 90 Stat. 117  Section 779, Pub. L. 93236, title V,  509 Jan. 2, 1974 87 Stat. 1020 Pub. L. 94210, title VI,  616(h) Feb. 5, 1976 90 Stat. 116 Pub. L. 94555, title II,  207(c) Oct. 19, 1976 90 Stat. 2622 Pub. L. 96448, title V,  504 Oct. 14, 1980 94 Stat. 1955  Section 780, Pub. L. 93236, title V,  510 Pub. L. 96448, title V,  505 Oct. 14, 1980 94 Stat. 1956 Statutory Notes and Related Subsidiaries Effective Date of Repeal; Continuation of Benefits After Repeal; Law Governing Disputes; Prerequisites to Disbursement of Benefits Pub. L. 9735, title XI,  1144(a)(2) Aug. 13, 1981 95 Stat. 669  (2) Notwithstanding the repeal made by paragraph (1) of this subsection [repealing this subchapter] (A) benefits accrued as of the effective date of this subsection as a result of events that occurred wholly prior to October 1, 1981 (B) any dispute or controversy regarding such benefits shall be determined under the terms of the law in effect on the date the claim arose. (3) Benefits shall not be disbursed under paragraph (2)(A) unless the employee has filed a claim for such benefits within 90 days after the date of repeal; except that, with respect to a claim which is the subject of or is based upon any arbitration decision issued after the date of repeal, such 90-day period shall not commence until such arbitration decision is issued to the employee and the employees representative; and no benefits shall be disbursed unless appropriations for such purposes are or become available. (4) The provisions of this subsection shall take effect on the first day of the first month beginning after the date of enactment of this subtitle [ Aug. 13, 1981 Employee Protection Payments Under Former Provisions; Reimbursement Pub. L. 96448, title V,  507 Oct. 14, 1980 94 Stat. 1956 Pub. L. 96448 Oct. 1, 1980 section 710 of Pub. L. 96448 section 1170 of Title 11 Jan. 1, 1979 section 779(a) of this title Conrail Employee Protection Pub. L. 96254, title II,  214 May 30, 1980 94 Stat. 417 Mar. 1, 1980 May 30, 1980 SUBCHAPTER VI MISCELLANEOUS PROVISIONS  791. Relationship to other laws (a) Antitrust (1) Except as specifically provided in paragraph (2) of this subsection, no provision of this chapter shall be deemed to convey to any railroad or employee or director thereof any immunity from civil or criminal liability, or to create defenses to actions, under the antitrust laws. (2) The antitrust laws are inapplicable with respect to any action taken to formulate or implement the final system plan where such action was in compliance with the requirements of such plan and with respect to any action taken to formulate or implement any supplemental transaction. (3) As used in this subsection, antitrust laws includes the Act of July 2, 1890 26 Stat. 209 October 15, 1914 38 Stat. 730 38 Stat. 717 15 U.S.C. 41 August 27, 1894 28 Stat. 570 15 U.S.C. 8 June 19, 1936 49 Stat. 1526 (b) Commerce, securities, and bankruptcy (1) The provisions of subtitle IV of title 49 and the Bankruptcy Act, are inapplicable (A) to actions taken under this chapter to formulate and implement the final system plan where such action was in compliance with the requirements of such plan, and (B) to actions taken under this chapter to formulate or implement any supplemental transaction. (2) All securities of the Corporation which are issued to the Association as the initial holder, or which are issued in connection with the transfer to the Corporation or a subsidiary thereof of rail properties under this chapter, shall be deemed for all purposes to have been issued subject to and authorized pursuant to section 11301 1 1 (3) The provisions of section 77e of title 15 section 743(a) of this title section 743(c) of this title (4) The powers and duties of the Commission under section 77 of the Bankruptcy Act, with respect to a railroad in reorganization in the region which conveys all or substantially all of its designated rail properties to the Corporation or a subsidiary thereof, or to profitable railroads in the region, pursuant to the final system plan, and the requirement that plans of reorganization be filed with the Commission, shall cease upon the date of such conveyance. The powers and duties of the Commission under section 77 of the Bankruptcy Act shall also so terminate, as of February 5, 1976 February 5, 1976 (c) Environment The provisions of section 4332(2)(C) of title 42 (d) Northeast Corridor (1) Rail properties designated in accordance with section 716(c)(1)(C) of this title section 716(c)(1)(C) of this title (2) Properties acquired by purchase, lease, or otherwise pursuant to this subsection shall be improved in order to meet the goal set forth in section 716(a)(3) of this title January 2, 1974 (3) The Secretary shall begin the necessary engineering studies and improvements on January 2, 1974 (4) The final system plan shall provide for any necessary coordination with freight or commuter services of use of the facilities designated in section 716(c)(1)(C) of this title (5) Construction or improvements made pursuant to this subsection may be made in consultation with the Corps of Engineers. ( Pub. L. 93236, title VI,  601(a) Jan. 2, 1974 87 Stat. 1021 Pub. L. 94210, title VI,  618 Feb. 5, 1976 90 Stat. 117 Pub. L. 96254, title II,  206(a) May 30, 1980 94 Stat. 412  Editorial Notes  References in Text Act of July 2, 1890 26 Stat. 209 section 1 of Title 15 Act of October 15, 1914 38 Stat. 730 section 12 of Title 15 The Federal Trade Commission Act ( 38 Stat. 717 act Sept. 26, 1914, ch. 311 38 Stat. 717 section 58 of Title 15 Sections 73 and 74 of the Act of August 27, 1894 act Aug. 27, 1894, ch. 349 28 Stat. 570 section 8 of Title 15 Act of June 19, 1936 49 Stat. 1526 section 13 of Title 15 The Bankruptcy Act, referred to in subsec. (b)(1), (4), is act July 1, 1898, ch. 541 30 Stat. 544 Oct. 1, 1979 Pub. L. 95598 Nov. 6, 1978 92 Stat. 2682 Section 11301 of title 49 Pub. L. 10488, title I,  102(a) Dec. 29, 1995 109 Stat. 804 section 11301 of title 49 49 U.S.C. 20a Pub. L. 95473,  3(b) Oct. 17, 1978 92 Stat. 1466 Codification In subsec. (b)(1), (4), subtitle IV of title 49 substituted for the Interstate Commerce Act ( 49 U.S.C. 1 Pub. L. 95473,  3(b) Oct. 17, 1978 92 Stat. 1466 A subsec. (e) of section 601 of Pub. L. 93236 Amendments 1976Subsec. (a)(2). Pub. L. 94210,  618(a) Subsec. (b). Pub. L. 94210,  618(b) Subsec. (c). Pub. L. 94210,  618(c) section 743(b)(1) of this title Subsec. (d)(1). Pub. L. 94210,  705(b) section 716(c)(1)(C) of this title Statutory Notes and Related Subsidiaries  Abolition of Special Court, Regional Rail Reorganization Act of 1973, and Transfer of Functions Special court abolished and all jurisdiction and functions transferred to United States District Court for District of Columbia, see section 719(b)(2) of this title  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title Applicability of National Environmental Policy Act Pub. L. 94210, title VI,  619 Feb. 5, 1976 90 Stat. 119 Nothing in this title [enacting sections 726 and 745 to 747 of this title and amending sections 702, 711 to 713, 716, 718 to 721, 724, 725, 741, 743, 744, 771, 772, 774, 775, 778, 779, and 791 of this title, and section 856 of former Title 31, Money and Finance] shall affect the application of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321  792. Repealed. Pub. L. 97375, title I,  111(b) Dec. 21, 1982 96 Stat. 1821   Section, Pub. L. 93236, title VI,  602 Jan. 2, 1974 87 Stat. 1022  Subsequent to repeal by Pub. L. 97375 section 308(a) of Title 49 Pub. L. 97449 Jan. 12, 1983 96 Stat. 2413 Section 6(a) of Pub. L. 97449 Sections 15 of this act restate, without substantive change, laws enacted before November 15, 1982 November 14, 1982 section 308(a) of Title 49 section 111(b) of Pub. L. 97375 Pub. L. 98216,  2(1)(A)(ii) Feb. 14, 1984 98 Stat. 4  Pub. L. 97375, title I,  111(b) Dec. 21, 1982 96 Stat. 1821 Pub. L. 98216,  6(b) Feb. 14, 1984 98 Stat. 8  793. Repealed. Pub. L. 95473,  4(b) Oct. 17, 1978 92 Stat. 1466 Pub. L. 97449,  4(b)(2) Jan. 12, 1983 96 Stat. 2441 Oct. 17, 1978   Section, Pub. L. 93236, title VI,  603 Jan. 2, 1974 87 Stat. 1023 Statutory Notes and Related Subsidiaries Investigation of Discriminatory Freight Rates for Transportation of Recyclable or Recycled Materials Pub. L. 94210, title II,  204 Feb. 5, 1976 90 Stat. 40 Pub. L. 95473,  4(b) Oct. 17, 1978 92 Stat. 1466  794. Tax payments to States (a) Notwithstanding any other provision of law, no railroad in reorganization shall withhold from any State, or any political subdivision thereof, the payment of the portion of any tax owed by such railroad to such State or subdivision, which portion has been collected by such railroad from any tenant thereof. (b) Any railroad which violates the provisions of subsection (a) of this section by withholding any portion of a tax referred to in such subsection shall be fined not more than $10,000 for each such violation. ( Pub. L. 93236, title VI,  605 Pub. L. 945,  9 Feb. 28, 1975 89 Stat. 9 SUBCHAPTER VII PROTECTION OF EMPLOYEES  797. Repealed. Pub. L. 99509, title IV,  4024(c) Oct. 21, 1986 100 Stat. 1904   Section, Pub. L. 93236, title VII,  701 Pub. L. 9735, title XI,  1143(a) Aug. 13, 1981 95 Stat. 661 Pub. L. 99509, title IV,  4024(a) Oct. 21, 1986 100 Stat. 1903 Statutory Notes and Related Subsidiaries Repeal of Section; Continuing Responsibilities of Consolidated Rail Corporation After Sale Date Pub. L. 99509, title IV,  4024(c) Oct. 21, 1986 100 Stat. 1904 Pub. L. 99514,  2 Oct. 22, 1986 100 Stat. 2095  (c)  Repeal of Section Section 701 of the Regional Rail Reorganization Act of 1973 [ 45 U.S.C. 797 Apr. 2, 1987 45 U.S.C. 702 (1) any dispute or controversy regarding benefits under section 701 shall be determined under the terms of the law in effect prior to such repeal; and (2) the Railroad Retirement Board shall take such actions as may be necessary to complete administration and closeout of the section 701 program and the Board is authorized to receive and apply Corporation funds for this purpose. (d)  Continuing Responsibilities (1) On and after the sale date, the Corporation shall provide the protection for its employees described in Part III, Article III, Employee Protection, of the Definitive Agreement of September 17, 1985 (2) The Corporation shall pay, as designated by the Railroad Retirement Board, any remaining benefits under section 701 of the Regional Rail Reorganization Act of 1973 [ 45 U.S.C. 797 (3) The Railroad Retirement Board shall transfer to the Corporation such information regarding administration of the labor protection program under such section 701 as may be reasonably necessary for the Corporation to discharge its responsibilities under this subsection, including copies of the individual claim records of employees of the Corporation. (4) The United States shall have no liability for benefits under this subsection. (e)  Compensation for Wages Below Industry Standard The Corporation shall pay $200,000,000 to present and former employees subject to collective bargaining agreements, in accordance with the terms and conditions in the Definitive Agreement referred to in subsection (d)(1), or as otherwise agreed between the parties. (f) ESOP Transactions (1) As soon as practicable after the date of the enactment of this Act [ Oct. 21, 1986 (A) the shares of the ConRail Equity Corporation preferred stock held by the ESOP shall be surrendered by the ESOP in exchange for an equal number of shares of the common stock of the Corporation, and such common stock of the Corporation shall be allocated by the ESOP to the same persons in the same amounts as the shares of ConRail Equity Corporation preferred stock had been allocated; and (B) the remaining shares of the ConRail Equity Corporation preferred stock held by the Corporation shall be cancelled, and an equal number of shares of the common stock of the Corporation shall be contributed by the Corporation to the ESOP, which shares shall be allocated by the ESOP to persons who are or were ESOP participants in accordance with the formula set forth in section 2 of Article II of Part III of the Definitive Agreement referred to in subsection (d)(1), and in accordance with a comparable formula for present and former employees of the Corporation not covered by such section of the Definitive Agreement, except that no contribution by the Corporation to the ESOP shall be made which would affect the tax-qualified status of the ESOP, or of any of the employee benefit plans maintained by the Corporation or any affiliate of the Corporation, under the Internal Revenue Code of 1986 [ 26 U.S.C. 1 (2) (A) (i) As soon as practicable after the expiration of 180 days after 100 percent of the United States shares are sold, the ESOP shall distribute all of the stock in the accounts of its participants and beneficiaries, except as provided in clause (ii). (ii) Fractional shares shall not be distributed under clause (i). Shares equal to the aggregate amount of fractional shares shall be surrendered by the ESOP and redeemed by the Corporation for cash at the average closing price for the common stock of the Corporation on a national securities exchange for the 10 business days immediately preceding the date of distribution under clause (i), or, if the common stock of the Corporation is not listed on a national securities exchange, at the average closing price for such stock for such 10 business days as appearing in any regularly published reporting or quotation service, and the proceeds of such redemption shall be distributed by the ESOP to the same participants and beneficiaries and in the same amounts as the fractional shares had been allocated. (B) After completing the distribution under subparagraph (A), the ESOP shall terminate. (3) The Corporation shall distribute any full shares of its common stock which, because of the exception under paragraph (1)(B), could not be contributed to the ESOP to those persons to whom the ESOP would have allocated such shares pursuant to paragraph (1)(B) had such shares been contributed to the ESOP. The Corporation shall pay cash pursuant to the formula set forth in paragraph (2)(A)(ii) in lieu of fractional shares. (4) For purposes of Rule 144 promulgated under the Securities Act of 1933 [ 15 U.S.C. 77a  797a. Termination allowance (a) General The Corporation may terminate the employment of certain employees, in accordance with this section, upon the payment of an allowance of $350 for each month of active service with the Corporation or with a railroad in reorganization, but in no event may any such termination allowance exceed $25,000. (b) Employment needs Within 90 days after August 13, 1981 (c) Notification and separation procedure (1) Within 90 days after August 13, 1981 (2) Within 90 days after August 13, 1981 (3) If the number of employees who request to be separated pursuant to paragraph (2) of this subsection is greater, in engine service at any location, than the number of excess firemen at the location, and in train service at the location than the number of excess second and third brakemen, as determined by the Corporation, the Corporation shall separate the employees described in paragraph (2) of this subsection in order of seniority beginning with the most senior employee, until the excess firemen and second and third brakemen positions at that location, as determined by the Corporation, have been eliminated. (d) Designated separations If the number of employees who are separated pursuant to subsection (c)(3) is less at any location than the number of excess firemen in freight and commuter service and second and third brakemen in freight service at such location, as determined by the Corporation, the Corporation may, after 210 days after August 13, 1981 (e) Effect on positions (1) The Corporation shall refrain from filling one fireman position in freight service, or in commuter service where applicable, for each employee in engine service separated in accordance with this section. (2) The Corporation may refrain from filling one brakeman position in excess of one conductor and one brakeman on one crew in freight service for each employee in train service who is separated in accordance with this section. (3) Positions permitted to be not filled under this subsection shall be not filled in different types of freight service actually operated at or from the location in a sequence to be agreed upon between the Corporation and the general chairman representative of classes or crafts of employees having jurisdiction over the positions to be not filled. If no such agreement is reached, the Corporation may designate the position to be not filled. (4) Notwithstanding paragraphs (1) and (2) of this subsection, the Corporation shall retain all rights it has under any provision of law or agreement to refrain from filling any position of employment. (f) Procedures The Corporation and representatives of the various classes and crafts of employees to be separated may agree on procedures to implement this section, but the absence of such agreement shall not interfere with implementation of the separations authorized by this section. (g) Commuter employees The provisions of this section shall apply to the separation of firemen in commuter service, except that with respect to such employees the Corporation is required to make the separations authorized by this section. ( Pub. L. 93236, title VII,  702 Pub. L. 9735, title XI,  1143(a) Aug. 13, 1981 95 Stat. 662  797b. Preferential hiring (a) General Any employee who is deprived of employment shall have the first right of hire by any other railroad for a vacancy for which he is qualified in a class or craft (or in the case of a non-agreement employee, for a non-agreement vacancy) in which such employee was employed by the Corporation or a predecessor carrier for not less than one year, except where such a vacancy is covered by (1) an affirmative action plan, or a hiring plan designed to eliminate discrimination, that is required by Federal or State statute, regulation, or Executive order, or by the order of a Federal court or agency, or (2) a permissible voluntary affirmative action plan. For purposes of this section, a railroad shall not be considered to be hiring new employees when it recalls any of its own furloughed employees. (b) Status The first right of hire afforded to employees under this section shall be coequal to the first right of hire afforded under sections 907 and 1004 of this title. ( Pub. L. 93236, title VII,  703 Pub. L. 9735, title XI,  1143(a) Aug. 13, 1981 95 Stat. 663  Statutory Notes and Related Subsidiaries Exemption of National Railroad Passenger Corporation in Hiring Qualified Train and Engine Employees Pub. L. 99272, title IV,  4011(c) Apr. 7, 1986 100 Stat. 109 The provisions of section 703 of the Regional Rail Reorganization Act of 1973 ( 45 U.S.C. 797b 45 U.S.C. 907 45 U.S.C. 1004  797c. Central register of railroad employment (a) Register (1) The Railroad Retirement Board (hereafter in this section referred to as the Board) shall prepare and maintain a register of persons separated from railroad employment after at least one year of completed service with a railroad who have declared their current availability for employment in the railroad industry. The register shall be subdivided by class and craft of prior employment and shall be updated periodically to reflect current availability. (2) Each entry in the register shall include, or provide access to, basic information concerning the individuals experience and qualifications. (3) The Board shall place at the top of the register those former railroad employees entitled to priority under applicable provisions of law, including this chapter. (b) Corporation employees As soon as is practicable after August 13, 1981 (c) Vacancy notices; warning; civil penalty (1) Each railroad shall timely file with the Board a notice of vacancy with respect to any position for which the railroad intends to accept applications from persons other than current employees of that carrier. (2) (A) As soon as the Board becomes aware of any failure on the part of a railroad to comply with paragraph (1), the Board shall issue a warning to such railroad of its potential liability under subparagraph (B). (B) Any railroad failing to comply with paragraph (1) of this subsection after being warned by the Board under subparagraph (A) shall be liable for a civil penalty in the amount of $500 for each subsequent vacancy with respect to which such railroad has so failed to comply. (d) Placement The Board shall, through distribution of copies of the central register (or portions thereof) to railroads and representatives of classes or crafts of employees and through publication of employment information derived from vacancy notices filed with the Board, promote the placement of former railroad employees possessing requisite skills and experience in appropriate positions with other railroads. (e) Employment applications In addition to its responsibilities under subsections (a) through (d) of this section, the Board shall facilitate the filing of employment applications with respect to current vacancies in the industry by former railroad employees entitled to priority under applicable provisions of law, including this chapter. (f) Expiration The provisions of this section shall cease to be effective on the expiration of the 6-year period beginning on August 13, 1981 (g) Resolution of disputes Any dispute, grievance, or claim arising under this section, section 797b of this title section 907 of this title section 1004 of this title (1) Any employee with such a dispute, grievance, or claim may petition the Board to review and investigate the dispute, grievance, or claim. (2) The Board shall investigate the dispute, grievance, or claim, and if it concludes that the employees rights under this section, section 797b of this title section 907 of this title section 1004 of this title section 153 of this title (3) In the case of any violation of this section, section 797b of this title section 907 of this title section 1004 of this title section 153 of this title ( Pub. L. 93236, title VII,  704 Pub. L. 9735, title XI,  1143(a) Aug. 13, 1981 95 Stat. 663 Pub. L. 97468, title II,  235 Jan. 14, 1983 96 Stat. 2547 Pub. L. 99272, title IV,  4011(a) Apr. 7, 1986 100 Stat. 108  Editorial Notes Amendments 1986Subsec. (c). Pub. L. 99272,  4011(a) Subsec. (f). Pub. L. 99272,  4011(b) 1983Subsec. (f). Pub. L. 97468,  235(a) Subsec. (g). Pub. L. 97468,  235(b) section 797b of this title section 907 of this title section 1004 of this title section 797b of this title Statutory Notes and Related Subsidiaries Effective Date of 1986 Amendment Pub. L. 99272, title IV,  4011(d) Apr. 7, 1986 100 Stat. 109 The amendments made by subsections (a) and (c) [amending this section and enacting provisions set out as a note under section 797b of this title Apr. 7, 1986 August 1, 1985  797d. Election and treatment of benefits (a) Election (1) Any employee who accepts any benefits under an agreement entered into under section 797 1 1 section 797a of this title August 13, 1981 (2) Nothing in paragraph (1) of this subsection shall affect the right of any employee described in such paragraph to benefits under the Railroad Retirement Act of 1974 [ 45 U.S.C. 231 45 U.S.C. 351 (b) Treatment of benefits Any benefits received by an employee under an agreement entered into pursuant to section 797 1 section 797a of this title (1) the Railroad Retirement Act of 1974 ( 45 U.S.C. 231 (2) determining the compensation received by such employee in any base year under the Railroad Unemployment Insurance Act ( 45 U.S.C. 351 ( Pub. L. 93236, title VII,  705 Pub. L. 9735, title XI,  1143(a) Aug. 13, 1981 95 Stat. 664  Editorial Notes  References in Text Section 797 of this title Pub. L. 99509, title IV,  4024(c) Oct. 21, 1986 100 Stat. 1904 Apr. 2, 1987 The Northeast Rail Service Act of 1981, referred to in subsec. (a)(1), is subtitle E ( 11311169) of title XI of Pub. L. 9735 Aug. 13, 1981 95 Stat. 643 section 1101 of this title The Railroad Retirement Act of 1974, referred to in subsecs. (a)(2) and (b)(1), is act Aug. 29, 1935, ch. 812 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1305 section 231 of this title section 231t of this title The Railroad Unemployment Insurance Act, referred to in subsecs. (a)(2) and (b)(2), is act June 25, 1938, ch. 680 52 Stat. 1094 section 367 of this title  797e. Assignment of work (a) General With respect to any craft or class of employees not covered by a collective bargaining agreement that provides for a process substantially equivalent to that provided for in this section, the Corporation shall have the right to assign, allocate, reassign, reallocate, and consolidate work formerly performed on the rail properties acquired pursuant to the provisions of this chapter from a railroad in reorganization to any location, facility, or position on its system if it does not remove such work from coverage of a collective bargaining agreement and does not infringe upon the existing classification of work rights of any craft or class of employees at the location or facility to which such work is assigned, allocated, reassigned, reallocated, or consolidated. Prior to the exercise of authority under this subsection, the Corporation shall negotiate an agreement with the representatives of the employees involved permitting such employees the right to follow their work. (b) Expiration The authority granted by this section shall apply only for as long as benefits are provided under this subchapter with funds made available under section 797 l 1 1 ( Pub. L. 93236, title VII,  706 Pub. L. 9735, title XI,  1143(a) Aug. 13, 1981 95 Stat. 665  Editorial Notes  References in Text Section 797 l Pub. L. 99509, title IV,  4033(a)(2) Oct. 21, 1986 100 Stat. 1908 l Pub. L. 10488,  327(5)  797f. Contracting out  All work in connection with the operation or services provided by the Corporation on the rail lines, properties, equipment, or facilities acquired pursuant to the provisions of this chapter and the maintenance, repair, rehabilitation, or modernization of such lines, properties, equipment, or facilities which has been performed by practice or agreement in accordance with provisions of the existing contracts in effect with the representatives of the employees of the classes or crafts involved shall continue to be performed by the Corporations employees, including employees on furlough. Should the Corporation lack a sufficient number of employees, including employees on furlough, and be unable to hire additional employees, to perform the work required, it shall be permitted to subcontract that part of such work which cannot be performed by its employees, including those on furlough, except where agreement by the representatives of the employees of the classes or crafts involved is required by applicable collective-bargaining agreements. The term unable to hire additional employees as used in this section contemplates establishment and maintenance by the Corporation of an apprenticeship, training, or recruitment program to provide an adequate number of skilled employees to perform the work. ( Pub. L. 93236, title VII,  707 Pub. L. 9735, title XI,  1143(a) Aug. 13, 1981 95 Stat. 665  797g. New collective-bargaining agreements (a) Agreement Not later than 60 days after the effective date of any conveyance pursuant to the provisions of this chapter, the representatives of the various classes or crafts of employees of a railroad in reorganization involved in a conveyance and representatives of the Corporation shall commence negotiation of a new single collective bargaining agreement for each class and craft of employees covering the rate of pay, rules, and working conditions of employees who are the employees of the Corporation. Such collective bargaining agreement shall include appropriate provisions concerning rates of pay, rules, and working conditions, but shall not, before April 1, 1984 (b) Procedure (1) Any procedure for finally determining the components of the first single collective bargaining agreement for any class or craft, agreed upon before August 13, 1981 August 13, 1981 (2) Nothing in this section shall be construed to require the parties to enter into a new single collective bargaining agreement if the agreement between the parties in effect immediately prior to August 13, 1981 1 1 (c) Railway Labor Act notices Employees of the Corporation may not serve notices under section 156 of this title April 1, 1984 ( Pub. L. 93236, title VII,  708 Pub. L. 9735, title XI,  1143(a) Aug. 13, 1981 95 Stat. 665  Editorial Notes  References in Text Section 774 of this title Pub. L. 9735, title XI,  1144(a)(1) Aug. 13, 1981 95 Stat. 669  797h. Employee and personal injury claims (a) Liability for employee claims In all cases of claims, prior to April 1, 1976 section 153 of this title section 743(b)(1) of this title section 721(h) of this title section 721(h)(1) of this title section 721(h) of this title (b) Assumption of personal injury claims All cases or claims by employees or their personal representatives for personal injuries or death against a railroad in reorganization in the Region arising prior to the date of conveyance of rail properties, pursuant to section 743 of this title section 721(h) of this title section 721(h)(1) of this title section 721(h) of this title ( Pub. L. 93236, title VII,  709 Pub. L. 9735, title XI,  1143(a) Aug. 13, 1981 95 Stat. 666  Statutory Notes and Related Subsidiaries  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title  797i. Limitations on liability (a) Federal Government The liability of the United States under an agreement entered into or benefit schedule prescribed under section 797 1 1 section 797a of this title l 1 (b) The Corporation (1) The Corporation, Amtrak Commuter, and commuter authorities shall incur no liability under an agreement entered into or benefit schedule prescribed under section 797 1 section 797a of this title (2) Notwithstanding any other provision of law, until April 1, 1984 ( Pub. L. 93236, title VII,  710 Pub. L. 9735, title XI,  1143(a) Aug. 13, 1981 95 Stat. 667  Editorial Notes  References in Text Section 797 of this title Pub. L. 99509, title IV,  4024(c) Oct. 21, 1986 100 Stat. 1904 Apr. 2, 1987 Section 797 l Pub. L. 99509, title IV,  4033(a)(2) Oct. 21, 1986 100 Stat. 1908 l Pub. L. 10488,  327(5) Statutory Notes and Related Subsidiaries  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  797j. Preemption  No State may adopt or continue in force any law, rule, regulation, order, or standard requiring the Corporation to employ any specified number of persons to perform any particular task, function, or operation, or requiring the Corporation to pay protective benefits to employees, and no State in the Region may adopt or continue in force any such law, rule, regulation, order, or standard with respect to any railroad in the Region. ( Pub. L. 93236, title VII,  711 Pub. L. 9735, title XI,  1143(a) Aug. 13, 1981 95 Stat. 667 Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379  Editorial Notes Amendments 1994 Pub. L. 103272  797k. Factfinding panel (a) Purpose The Corporation shall enter into collective bargaining agreements with its employees which provide for the establishment of one or more advisory factfinding panels, chaired by a neutral expert in industrial relations, for purposes of recommending changes in operating practices and procedures which result in greater productivity to the maximum extent practicable. (b) National Mediation Board The National Mediation Board shall appoint public members to any panel established by an agreement entered into under this subparagraph, and shall perform such functions contained in the agreement as are consistent with the duties of such Board under the Railway Labor Act [ 45 U.S.C. 151 (c) Other functions The factfinding panel may, before making its report to the parties, provide mediation, conciliation, and other assistance to the parties. ( Pub. L. 93236, title VII,  712 Pub. L. 9735, title XI,  1143(a) Aug. 13, 1981 95 Stat. 668  Editorial Notes  References in Text The Railway Labor Act, referred to in subsec. (b), is act May 20, 1926, ch. 347 44 Stat. 577 section 151 of this title  797l. Class II railroads receiving Federal assistance The Surface Transportation Board shall impose no labor protection conditions in approving an application under section 10902 of title 49 (1) is headquartered in a State, and operates in at least one State, with a population of less than 1,000,000 persons, as determined by the 1990 census; and (2) has, as of January 1, 1996 ( Pub. L. 93236, title VII,  713 Pub. L. 10488, title III,  327(5)(A) Dec. 29, 1995 109 Stat. 952 Pub. L. 104287,  6(f)(4)(B) Oct. 11, 1996 110 Stat. 3399  Editorial Notes Prior Provisions A prior section 797 l Pub. L. 93236, title VII,  713 Pub. L. 9735, title XI,  1143(a) Aug. 13, 1981 95 Stat. 668 Pub. L. 99509, title IV,  4033(a)(2) Oct. 21, 1986 100 Stat. 1908 Statutory Notes and Related Subsidiaries Effective Date Section effective Jan. 1, 1996 section 2 of Pub. L. 10488 section 1301 of Title 49  797m. Arbitration  Any dispute or controversy with respect to the interpretation, application, or enforcement of the provisions of this subchapter, except sections 797b, 797c, 797g, and 797 l 1 1 45 U.S.C. 1105 section 153 of this title ( Pub. L. 93236, title VII,  714 Pub. L. 9735, title XI,  1143(a) Aug. 13, 1981 95 Stat. 668  Editorial Notes  References in Text Section 797 l Pub. L. 99509, title IV,  4033(a)(2) Oct. 21, 1986 100 Stat. 1908 l Pub. L. 10488,  327(5) Section 1144 of the Northeast Rail Service Act of 1981, referred to in text, is section 1144 of Pub. L. 9735 Aug. 13, 1981 95 Stat. 669 section 771 of this title Statutory Notes and Related Subsidiaries  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title CHAPTER 17 RAILROAD REVITALIZATION AND REGULATORY REFORM    SUBCHAPTER IGENERAL PROVISIONS  Sec.  801. Declaration of policy.  802. Definitions.  803. Repealed.  SUBCHAPTER IIRAILROAD REHABILITATION AND IMPROVEMENT FINANCING  821 838. Repealed or Transferred.  SUBCHAPTER IIINORTHEAST CORRIDOR PROJECT IMPLEMENTATION  851 856. Repealed. SUBCHAPTER I GENERAL PROVISIONS  801. Declaration of policy (a) Purpose The purpose of this Act and chapter 224 of title 49, United States Code, is to provide the means to rehabilitate and maintain the physical facilities, improve the operations and structure, and restore the financial stability of the railway system of the United States, and to promote the revitalization of such railway system, so that this mode of transportation will remain viable in the private sector of the economy and will be able to provide energy-efficient, ecologically compatible transportation services with greater efficiency, effectiveness, and economy, through (1) ratemaking and regulatory reform; (2) the encouragement of efforts to restructure the system on a more economically justified basis, including planning authority in the Secretary of Transportation, an expedited procedure for determining whether merger and consolidation applications are in the public interest, and continuing reorganization authority; (3) financing mechanisms that will assure adequate rehabilitation and improvement of facilities and equipment, implementation of the final system plan, and implementation of the Northeast Corridor project; (4) transitional continuation of service on light-density rail lines that are necessary to continued employment and community well-being throughout the United States; (5) auditing, accounting, reporting, and other requirements to protect Federal funds and to assure repayment of loans and financial responsibility; and (6) necessary studies. (b) Policy The policy of this Act and chapter 224 of title 49, United States Code, is to (1) balance the needs of carriers, shippers, and the public; (2) foster competition among all carriers by railroad and other modes of transportation, to promote more adequate and efficient transportation services, and to increase the attractiveness of investing in railroads and rail-service-related enterprises; (3) permit railroads greater freedom to raise or lower rates for rail services in competitive markets; (4) promote the establishment of railroad rate structures which are more sensitive to changes in the level of seasonal, regional, and shipper demand; (5) promote separate pricing of distinct rail and rail-related services; (6) formulate standards and guidelines for determining adequate revenue levels for railroads; and (7) modernize and clarify the functions of railroad rate bureaus. ( Pub. L. 94210, title I,  101 Feb. 5, 1976 90 Stat. 33 Pub. L. 11758, div. B, title I,  21301(j)(3)(A) Nov. 15, 2021 135 Stat. 691  Editorial Notes  References in Text This Act, referred to in text, means Pub. L. 94210 Feb. 5, 1976 90 Stat. 31 Amendments 2021Subsec. (a). Pub. L. 11758,  21301(j)(3)(A)(i) Subsec. (b). Pub. L. 11758,  21301(j)(3)(A)(ii) Statutory Notes and Related Subsidiaries Short Title of 2015 Amendment Pub. L. 11494, div. A, title XI,  11601(a) Dec. 4, 2015 129 Stat. 1693 This subtitle [subtitle F ( 1160111611) of title XI of div. A of Pub. L. 11494 section 821 of this title Short Title Pub. L. 94210,  1 Feb. 5, 1976 90 Stat. 31  802. Definitions As used in this Act, unless the context otherwise indicates, 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) final system plan means the final system plan and any additions thereto adopted by the Association pursuant to the Regional Rail Reorganization Act of 1973 ( 45 U.S.C. 701 (5) includes and variants thereof should be read as if the phrase but is not limited to were also set forth; (6) Office means the Rail Services Planning Office of the Commission; (7) railroad has the meaning given that term in section 20102 of title 49 (8) Secretary means the Secretary of Transportation or his designated representative. ( Pub. L. 94210, title I,  102 Feb. 5, 1976 90 Stat. 33 Pub. L. 97468, title VI,  615(b)(2) Jan. 14, 1983 96 Stat. 2578 Pub. L. 10488, title III,  330(1) Dec. 29, 1995 109 Stat. 953 Pub. L. 10959, title IX,  9003(a) Aug. 10, 2005 119 Stat. 1921  Editorial Notes  References in Text This Act, referred to in text, means Pub. L. 94210 Feb. 5, 1976 90 Stat. 31 section 801 of this title The Regional Rail Reorganization Act of 1973, referred to in par. (4), is Pub. L. 93236 Jan. 2, 1974 87 Stat. 985 section 701 of this title Amendments 2005Par. (7). Pub. L. 10959 1995Par. (7). Pub. L. 10488 49 U.S.C. 1(3) 1983Par. (7). Pub. L. 97468 Statutory Notes and Related Subsidiaries Effective Date of 1995 Amendment Amendment by Pub. L. 10488 Jan. 1, 1996 section 2 of Pub. L. 10488 section 1301 of Title 49 Effective Date of 1983 Amendment Amendment by Pub. L. 97468 Jan. 5, 1985 section 1203 of this title section 615(b) of Pub. L. 97468  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title  803. Repealed. Pub. L. 97449,  7(b) Jan. 12, 1983 96 Stat. 2443   Section, Pub. L. 94210, title IX,  905 Feb. 5, 1976 90 Stat. 148 section 306 of Title 49 SUBCHAPTER II RAILROAD REHABILITATION AND IMPROVEMENT FINANCING  821 to 823. Repealed. Pub. L. 11758, div. B, title I,  21301(b)(1)(A) Nov. 15, 2021 135 Stat. 683   Section 821, Pub. L. 94210, title V,  501 Pub. L. 105178, title VII,  7203(a)(1) June 9, 1998 112 Stat. 471 Pub. L. 11494, div. A, title XI,  11602 Dec. 4, 2015 129 Stat. 1693 section 22401 of Title 49  A prior section 821, Pub. L. 94210, title V,  501 Feb. 5, 1976 90 Stat. 66 Pub. L. 95620, title VIII,  803(c)(1) Nov. 9, 1978 92 Stat. 3347 Pub. L. 96101,  24(b) Nov. 4, 1979 93 Stat. 747 Pub. L. 96448, title IV,  405(d) Oct. 14, 1980 94 Stat. 1947 Pub. L. 9735, title XI,  1162(b) Aug. 13, 1981 95 Stat. 684 Pub. L. 99509, title IV,  4033(c)(2) Oct. 21, 1986 100 Stat. 1908 Pub. L. 105178, title VII,  7203(a)(1) June 9, 1998 112 Stat. 471  Section 822, Pub. L. 94210, title V,  502 Pub. L. 105178, title VII,  7203(a)(1) June 9, 1998 112 Stat. 473 Pub. L. 10959, title IX,  9003(b) Aug. 10, 2005 119 Stat. 19211923 Pub. L. 110432, div. A, title VII,  701(e) Oct. 16, 2008 122 Stat. 4906 Pub. L. 11494, div. A, title XI Dec. 4, 2015 129 Stat. 1694 Pub. L. 11694, div. H, title I,  192 Dec. 20, 2019 133 Stat. 2972 Pub. L. 116159, div. B, title I,  1104(b) Oct. 1, 2020 134 Stat. 727 section 22402 of Title 49  A prior section 822, Pub. L. 94210, title V,  502 Feb. 5, 1976 90 Stat. 67 Pub. L. 95620, title VIII,  803(c)(2) Nov. 9, 1978 92 Stat. 3347 Pub. L. 105178, title VII,  7203(a)(1) June 9, 1998 112 Stat. 471  Section 823, Pub. L. 94210, title V,  503 Pub. L. 105178, title VII,  7203(a)(1) June 9, 1998 112 Stat. 475 Pub. L. 10959, title IX,  9003(h) Aug. 10, 2005 119 Stat. 1923 Pub. L. 11494, div. A, title XI,  11605(b) Dec. 4, 2015 129 Stat. 1695 Pub. L. 11556, div. D,  164(b) Pub. L. 115123, div. B,  20101(2) Feb. 9, 2018 132 Stat. 121 section 22403 of Title 49  A prior section 823, Pub. L. 94210, title V,  503 Feb. 5, 1976 90 Stat. 69 Pub. L. 94555, title II,  216(b) Oct. 19, 1976 90 Stat. 2627 Pub. L. 105178, title VII,  7203(a)(1) June 9, 1998 112 Stat. 471 Statutory Notes and Related Subsidiaries Savings Provision Pub. L. 11758, div. B, title I,  21301(b)(2) Nov. 15, 2021 135 Stat. 683 The repeals under paragraph (1) [repealing this section and sections 822, 823, and 836 of this title] shall not affect the rights and duties that matured under the repealed sections, the penalties that were incurred under such sections, or any proceeding authorized under any such section that commenced before the date of enactment of this Act [ Nov. 15, 2021 Substantive Criteria and Standards Pub. L. 10959, title IX,  9003(j) Aug. 10, 2005 119 Stat. 1923 section 822 of this title Pub. L. 11758, div. B, title I,  21301(b)(1)(B) Nov. 15, 2021 135 Stat. 683  824, 825. Repealed. Pub. L. 105178, title VII,  7203(a)(1) June 9, 1998 112 Stat. 471   Section 824, Pub. L. 94210, title V,  504 Feb. 5, 1976 90 Stat. 70 Pub. L. 94555, title II Oct. 19, 1976 90 Stat. 2627  Section 825, Pub. L. 94210, title V,  505 Feb. 5, 1976 90 Stat. 71 Pub. L. 94555, title II Oct. 19, 1976 90 Stat. 2624 Pub. L. 95565,  5 Nov. 1, 1978 92 Stat. 2400 Pub. L. 95607, title III Nov. 8, 1978 92 Stat. 3066 Pub. L. 95620, title VIII,  803(c)(5) Nov. 9, 1978 92 Stat. 3347 Pub. L. 9673, title IV,  401 Sept. 29, 1979 93 Stat. 557 Pub. L. 96101 Nov. 4, 1979 93 Stat. 744 Pub. L. 96254, title I,  112 May 30, 1980 94 Stat. 404 Pub. L. 96448, title IV Oct. 14, 1980 94 Stat. 19451947 Pub. L. 9735, title XI,  1162(a) Aug. 13, 1981 95 Stat. 683 Pub. L. 97468, title IV Jan. 14, 1983 96 Stat. 2550 Pub. L. 99509, title IV,  4033(c)(3) Oct. 21, 1986 100 Stat. 1908 Pub. L. 10488, title III,  330(2) Dec. 29, 1995 109 Stat. 953  825a. Repealed. Pub. L. 99509, title IV,  4033(c)(6) Oct. 21, 1986 100 Stat. 1909   Section, Pub. L. 97468, title IV,  402 Jan. 14, 1983 96 Stat. 2550  826 to 830. Repealed. Pub. L. 105178, title VII,  7203(a)(2) June 9, 1998 112 Stat. 477   Section 826, Pub. L. 94210, title V,  506 Feb. 5, 1976 90 Stat. 73 Pub. L. 94555, title II Oct. 19, 1976 90 Stat. 2624 Pub. L. 96448, title IV,  405(c)(3)(A) Oct. 14, 1980 94 Stat. 1946  Section 827, Pub. L. 94210, title V,  507 Feb. 5, 1976 90 Stat. 74 Pub. L. 95607, title III,  301(b) Nov. 8, 1978 92 Stat. 3066 Pub. L. 9673, title IV,  401 Sept. 29, 1979 93 Stat. 557 Pub. L. 96448, title IV Oct. 14, 1980 94 Stat. 1945 Pub. L. 97468, title IV,  401 Jan. 14, 1983 96 Stat. 2550  Section 828, Pub. L. 94210, title V,  508 Feb. 5, 1976 90 Stat. 74  Section 829, Pub. L. 94210, title V,  509 Feb. 5, 1976 90 Stat. 76 Pub. L. 94555, title II,  216(d) Oct. 19, 1976 90 Stat. 2627 Pub. L. 95607, title III,  301(c) Nov. 8, 1978 92 Stat. 3066 Pub. L. 9673, title IV,  401 Sept. 29, 1979 93 Stat. 557 Pub. L. 96448, title IV Oct. 14, 1980 94 Stat. 1945 Pub. L. 9735, title XI,  1162(e) Aug. 13, 1981 95 Stat. 684 Pub. L. 97468, title IV Jan. 14, 1983 96 Stat. 2550 Pub. L. 99509, title IV,  4033(c)(4) Oct. 21, 1986 100 Stat. 1909 Pub. L. 10488, title III,  330(3) Dec. 29, 1995 109 Stat. 953  Section 830, Pub. L. 94210, title V,  510 Feb. 5, 1976 90 Stat. 76 Pub. L. 10488, title III,  330(4) Dec. 29, 1995 109 Stat. 953  831. Transferred  Editorial Notes Codification Section, Pub. L. 94210, title V,  511 Feb. 5, 1976 90 Stat. 76 Pub. L. 94555, title II Oct. 19, 1976 90 Stat. 2625 Pub. L. 96448, title IV,  405(e) Oct. 14, 1980 94 Stat. 1947 Pub. L. 99509, title IV,  4033(c)(5) Oct. 21, 1986 100 Stat. 1909 Pub. L. 102240, title I,  1036(e) Dec. 18, 1991 105 Stat. 1986 Pub. L. 105178, title VII,  7203(a)(2) June 9, 1998 112 Stat. 477 section 823(b) of this title Pub. L. 105178, title VII,  7203(a)(3) June 9, 1998 112 Stat. 477 Section 823(b) of this title Pub. L. 11758, div. B, title I,  21301(b)(1)(A) Nov. 15, 2021 135 Stat. 683  832 to 834. Repealed. Pub. L. 105178, title VII,  7203(a)(2) June 9, 1998 112 Stat. 477   Section 832, Pub. L. 94210, title V,  512 Feb. 5, 1976 90 Stat. 79  Section 833, Pub. L. 94210, title V,  513 Feb. 5, 1976 90 Stat. 80  Section 834, Pub. L. 94210, title V,  514 Feb. 5, 1976 90 Stat. 81  835. Repealed. Pub. L. 97375, title I,  111(d) Dec. 21, 1982 96 Stat. 1821 Pub. L. 105178, title VII,  7203(a)(2) June 9, 1998 112 Stat. 477   Section, Pub. L. 94210, title V,  515 Feb. 5, 1976 90 Stat. 82  836. Repealed. Pub. L. 11758, div. B, title I,  21301(b)(1)(A) Nov. 15, 2021 135 Stat. 683   Section, Pub. L. 94210, title V,  504 Feb. 5, 1976 90 Stat. 82 Pub. L. 105178, title VII,  7203(a)(5) June 9, 1998 112 Stat. 477 section 22404 of Title 49  A prior section 504 of Pub. L. 94210 section 824 of this title Pub. L. 105178  837, 838. Repealed. Pub. L. 105178, title VII,  7203(a)(2) June 9, 1998 112 Stat. 477   Section 837, Pub. L. 94210, title V,  517 Feb. 5, 1976 90 Stat. 83  Section 838, Pub. L. 94210, title V,  518 Pub. L. 102533,  12(a) Oct. 27, 1992 106 Stat. 3521 SUBCHAPTER III NORTHEAST CORRIDOR PROJECT IMPLEMENTATION  851. Repealed. Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379   Section, Pub. L. 94210, title VII,  701 Feb. 5, 1976 90 Stat. 119 Pub. L. 96254, title II,  205 May 30, 1980 94 Stat. 412  852. Repealed. Pub. L. 9735, title XI,  1188(e) Aug. 13, 1981 95 Stat. 699   Section, Pub. L. 94210, title VII,  702 Feb. 5, 1976 90 Stat. 120 Statutory Notes and Related Subsidiaries Effective Date of Repeal Repeal effective Oct. 1, 1981 section 1189 of Pub. L. 9735  853 to 855. Repealed. Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379   Section 853, Pub. L. 94210, title VII,  703 Feb. 5, 1976 90 Stat. 121 Pub. L. 95421 Oct. 5, 1978 92 Stat. 926 Pub. L. 96254, title II May 30, 1980 94 Stat. 410 Pub. L. 97468, title III,  301(1) Jan. 14, 1983 96 Stat. 2547 Pub. L. 99272, title IV,  4007(d) Apr. 7, 1986 100 Stat. 108 section 24902 of Title 49  Section 854, Pub. L. 94210, title VII,  704 Feb. 5, 1976 90 Stat. 122 Pub. L. 94555, title II,  217 Oct. 19, 1976 90 Stat. 2627 Pub. L. 95421,  9 Oct. 5, 1978 92 Stat. 928 Pub. L. 96254, title II May 30, 1980 94 Stat. 411 Pub. L. 9735, title XI,  1193 Aug. 13, 1981 95 Stat. 701 Pub. L. 97468, title III,  301(2) Jan. 14, 1983 96 Stat. 2548 Pub. L. 100342,  6 June 22, 1988 102 Stat. 627  Section 855, Pub. L. 94210, title VII,  705 Pub. L. 96254, title II,  206(a) May 30, 1980 94 Stat. 412 Pub. L. 97468, title III,  301(5) Jan. 14, 1983 96 Stat. 2550  856. Repealed. Pub. L. 103429,  7(a)(1) Oct. 31, 1994 108 Stat. 4388   Section, Pub. L. 94210, title VII,  708 Pub. L. 102533,  4(a) Oct. 27, 1992 106 Stat. 3516 Oct. 27, 1992 Statutory Notes and Related Subsidiaries Effective Date of Repeal Pub. L. 103429,  7(a)(1) Oct. 31, 1994 108 Stat. 4388 July 5, 1994 CHAPTER 18 MILWAUKEE RAILROAD RESTRUCTURING    Sec.  901. Congressional findings.  902. Definitions.  903. Sales and transfers.  904. Court approved abandonments and sales.  905. Employee or employee-shipper ownership plan.  906. Guarantee of trustee certificates.  907. Railroad hiring.  908. Employee protection agreements.  909. Supplementary unemployment insurance.  910. Repealed.  911. New career training assistance.  912. Election.  913. Authorization of appropriations.  914. Obligation guarantees.  915. Court approved abandonment and sales in pending cases.  916. Repealed.  917. Applicability of National Environmental Policy Act.  918. Authority of Railroad Retirement Board.  919. Publications and reports.  920. Continuation of service.  921. Office of Rail Public Counsel.  922. Employee stock ownership plan for surviving portion of Milwaukee Railroad.  901. Congressional findings (a) Congress hereby finds that (1) the severe operating losses and the deteriorating plant and equipment of the Milwaukee Railroad threaten to cause cessation of its operations in the near future; (2) a cessation of operations by the Milwaukee Railroad would have serious repercussions on the economies of the States in which such railroad principally operates (the States of Washington, Montana, Idaho, North Dakota, South Dakota, Illinois, Iowa, Missouri, Michigan, Indiana, Minnesota, and Wisconsin); (3) a cessation of operations of the Milwaukee Railroad would result in the loss of many thousands of jobs of railroad workers and other workers whose employment is dependent upon rail service over the lines presently operated by the Milwaukee Railroad; (4) experienced railroad employees make a valuable contribution toward strengthening the railroad industry; and other railroads have the ability and willingness to employ displaced employees of the Milwaukee Railroad; (5) the ownership by employees or by employees and shippers of part or all of the Milwaukee Railroad may be a valuable tool in reorganization and should be given serious consideration; (6) cessation of essential transportation services by the Milwaukee Railroad would endanger the public welfare; (7) cessation of such services is imminent; and (8) there is no other practicable means of obtaining funds to meet payroll and other expenses necessary for continuation of services and reorganization of the Milwaukee Railroad. (b) The Congress declares that emergency measures set forth in this chapter must be taken to restructure the Milwaukee Railroad and to avoid the potential unemployment and damage to the economy of the region and of the Nation which a cessation of essential services by the Milwaukee Railroad would otherwise cause. ( Pub. L. 96101,  2 Nov. 4, 1979 93 Stat. 736  Editorial Notes  References in Text This chapter, referred to in subsec. (b), was in the original this Act, meaning Pub. L. 96101 Nov. 4, 1979 93 Stat. 736 section 825 of this title Statutory Notes and Related Subsidiaries Short Title of 1983 Amendment Pub. L. 97468, title II,  201 Jan. 14, 1983 96 Stat. 2543 This title [amending sections 797c, 907, 913, 915, 1004, 1005, 1007, 1014, and 1017 of this title, repealing section 1008 of this title Short Title Pub. L. 96101,  1 Nov. 4, 1979 93 Stat. 736 That this Act [enacting this chapter and amending sections 231f, 662, 721, 821, and 825 of this title] may be cited as the Milwaukee Railroad Restructuring Act. Statement of Purpose Pub. L. 97468, title II Jan. 14, 1983 96 Stat. 2543 It is the purpose of this subtitle [amending sections 915 and 1017 of this title and enacting provisions set out as notes under this section] to continue the effort by Congress to assure service over the lines of rail carriers subject to liquidation in instances where rail carriers are willing to provide service over such lines and financially responsible persons are willing to purchase the lines for continued rail operations. Congressional Findings Pub. L. 97468, title II,  212 Jan. 14, 1983 96 Stat. 2543  The Congress finds that (1) it is necessary to establish procedures to facilitate and expedite the acquisition of rail lines of carriers subject to liquidation by financially responsible persons in instances where service is not being provided over the line by the carrier and where the financially responsible person seeks to provide rail service over the line; (2) procedures set forth in the amendments made by this title [see Short Title of 1983 Amendment note above] represent an exercise of the powers of the Congress under the Constitution to regulate commerce among the several States which will provide a practicable means for preserving rail service, thus benefiting shippers, employees, and the economies of the States in which such carriers subject to liquidation have operated service, and for facilitating interstate commerce, while at the same time providing safeguards to protect the interest of the estates of such carriers by requiring compensation which is not less than the constitutionally required minimum; and (3) it is in the public interest that the Interstate Commerce Commissions authority to issue orders involving temporary authority to operate service over lines of carriers subject to liquidation be clarified. [Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  902. Definitions As used in this chapter (1) the term bankruptcy court means the court having jurisdiction over the reorganization of the Milwaukee Railroad; (2) the term Board means the Railroad Retirement Board; (3) the term Commission means the Interstate Commerce Commission; (4) the term employee (A) includes any employee of the Milwaukee Railroad who worked on a line of such railroad the sale of which became effective on October 1, 1979 (B) does not include any individual serving as president, vice-president, secretary, treasurer, comptroller, counsel, member of the board of directors, or any other person performing such functions; (5) the term Milwaukee Railroad means the Chicago, Milwaukee, St. Paul and Pacific Railroad Company; and (6) the term restructured Milwaukee Railroad means the entity that is designated as the reorganized railroad under the reorganization plan for the Milwaukee Railroad finally certified by the Commission. ( Pub. L. 96101,  3 Nov. 4, 1979 93 Stat. 736 Pub. L. 96254, title I,  123 May 30, 1980 94 Stat. 409  Editorial Notes Amendments 1980Par. (6). Pub. L. 96254 Statutory Notes and Related Subsidiaries  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  903. Sales and transfers (a) The Milwaukee Railroad may negotiate and enter into agreements to sell, to another rail carrier or any other person, all or any portion of its rail properties used in railroad operations as of October 15, 1979 section 920(b) of this title April 1, 1980 (b) (1) The Secretary of Transportation, under the authority of section 333 of title 49 October 15, 1979 (2) Any sale or transfer proposal developed under paragraph (1) of this subsection shall be submitted to the bankruptcy court. Such a proposal may in no event become final or effective until the occurrence of an event described in section 920(b) of this title April 1, 1980 ( Pub. L. 96101,  4 Nov. 4, 1979 93 Stat. 737  Editorial Notes Codification In subsec. (b)(1),  section 333 of title 49 49 U.S.C. 1654(a) Pub. L. 97449,  6(b) Jan. 12, 1983 96 Stat. 2443  904. Court approved abandonments and sales (a) Abandonment of lines of railroad under section 1170 of title 11 (1) Upon the occurrence of an event described in section 920(b) of this title April 1, 1980 section 1170 of title 11 1 1 (2) Prior to the date specified in paragraph (1) of this subsection, the bankruptcy court may hear and consider any request for the abandonment of lines of the Milwaukee Railroad, and may fix the time for the Commissions report on the request, but it may take final action authorizing such abandonment only in accordance with such paragraph (1). (b) Sale or transfer of lines of railroad (1) Upon the occurrence of an event described in section 920(b) of this title April 1, 1980 2 2 1 (2) The bankruptcy court may not authorize a sale or transfer pursuant to paragraph (1) of this subsection unless an appropriate application with respect to such sale or transfer is initiated with the Commission and, within such time as the court may fix, not exceeding 180 days, the Commission, with or without a hearing, as the Commission may determine, and with or without modification or condition, approves such application, or does not act on such application. Any action or order of the Commission approving, modifying, conditioning, or disapproving such application is subject to review by the court only under sections 706(2)(A), 706(2)(B), 706(2)(C), and 706(2)(D) of title 5. An application may be initiated with the Commission prior to the date specified in paragraph (1) of this subsection. (3) Pending review of an application by the Commission pursuant to paragraph (2) of this subsection, the bankruptcy court may, on a preliminary basis, authorize the sale or transfer of lines of the Milwaukee Railroad to another rail carrier. The court may permit the purchasing carrier to operate interim service as a common carrier over the lines to be purchased, without regard to section 10901 of title 49 (c) Effect on priorities and timing of employee protection payments Nothing in this section shall be deemed to affect the priorities or timing of payment of employee protection which might have existed in the absence of this chapter. ( Pub. L. 96101,  5 Nov. 4, 1979 93 Stat. 737  Editorial Notes  References in Text Section 11347 of title 49 Pub. L. 10488, title I,  102(a) Dec. 29, 1995 109 Stat. 804 section 11326(a) of Title 49 Statutory Notes and Related Subsidiaries  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  905. Employee or employee-shipper ownership plan (a) Submission of plan to Commission; approval; findings (1) No later than December 1, 1979 (2) The Commission shall, within 30 days after the date of submission of a plan under paragraph (1) of this subsection, approve the proposed plan if it finds that such plan is feasible. The finding of the Commission with respect to the feasibility of the plan shall be made pursuant to section 554 of title 5 (3) The Commission shall make a finding that the plan submitted under this section is feasible if it determines that (A) adequate public and private financing is available to the proponents of such plan; (B) such plan is fair and equitable to the estate of the Milwaukee Railroad; (C) implementation of such plan will occur by April 1, 1980 (D) the railroad proposed to be operated under the plan can be operated on a self-sustaining basis; and (E) the plan contains an assessment of all operating practices, and includes agreements by labor and management to make implementing changes designed to achieve labor productivity increases (which may include changes in work rules to increase productivity) consistent with safe operations and adequate service. For purposes of the determinations under this paragraph, adequate financing shall include all sources of private funds, the probable value and priority of valid claims against the estate, and Federal, State, or local funds available under programs (in existence as of January 1, 1980 (b) Submission of findings to bankruptcy court If the Commission finds that the plan submitted under this section is feasible, it shall submit its finding to the bankruptcy court. Within 10 days after the date of such submission, the bankruptcy court shall, after a hearing, determine whether such plan is fair and equitable to the estate of the Milwaukee Railroad. The Commissions determination with respect to that issue shall be rebutted only by clear and convincing evidence. (c) Implementation of plan If the Commission finds that the plan is feasible and the bankruptcy court determines that the plan is fair and equitable to the estate of the Milwaukee Railroad, the proponents of such plan shall implement the plan no later than April 1, 1980 (d) Judicial review Except as provided in this section, the findings of the Commission with respect to the plan shall not be subject to review. (e) Furnishing of reports and other information for preparation of plan (1) The trustee of the Milwaukee Railroad shall promptly provide to the person engaged in developing the employee or employee and shipper ownership plan under this section (A) its most recent reports on the physical condition of the railroad; and (B) traffic, revenue, marketing, and other data necessary to determine the amount of the acquisition cost of the railroad or portion of the railroad that would be required to continue rail transportation over the railroad line. (2) Information provided pursuant to this subsection shall be used only for purposes of preparing a plan and shall not be disclosed to any competitor or, unless necessary in connection with the preparation of the plan, to any customer of the Milwaukee Railroad. ( Pub. L. 96101,  6 Nov. 4, 1979 93 Stat. 738  Statutory Notes and Related Subsidiaries  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  906. Guarantee of trustee certificates (a) to (c) Omitted (d) Authorization The Secretary of Transportation shall, under the authority of the Emergency Rail Services Act of 1970 [ 45 U.S.C. 661 November 1, 1979 section 920 of this title section 920(b) of this title April 1, 1980 45 U.S.C. 662(a) 45 U.S.C. 662(b)(3) 45 U.S.C. 662(d) (e) Amount of guarantee The Secretary shall guarantee trustee certificates of the Milwaukee Railroad pursuant to this section in an amount equal to the difference between (1) the total expenses incurred by such railroad attributable to the maintenance and the continuation of service in accordance with subsection (d) of this section, and (2) the revenues of such railroad. (f) Subordination of claims Notwithstanding the provisions of section 3(c) of the Emergency Rail Services Act of 1970 [ 45 U.S.C. 662(c) November 4, 1979 (g) Availability of funds The Commission shall immediately make available to the Secretary of Transportation the sum of $10,000,000, out of funds available for directed service under title 49. The Secretary of Transportation shall immediately make such funds available to the trustee of the Milwaukee Railroad for purposes of financing the operations of the Milwaukee Railroad, beginning November 1, 1979 section 920 of this title (h) Cancellation of United States obligations (1) All obligations to the United States or any agency or instrumentality of the United States incurred pursuant to this section by the Milwaukee Railroad or the trustee of the property of the Milwaukee Railroad shall be waived and canceled when (A) the Milwaukee Railroad is reorganized as an operating rail carrier; or (B) substantially all of the Milwaukee Railroad is purchased. (2) For purposes of this subsection, substantially all of the Milwaukee Railroad shall be considered as having been purchased when (A) more than 50 percent of the rail system operated by the Milwaukee Railroad on October 14, 1980 October 14, 1980 ( Pub. L. 96101,  7 Nov. 4, 1979 93 Stat. 740 Pub. L. 96448, title VII,  701(c)(1) Oct. 14, 1980 94 Stat. 1961  Editorial Notes  References in Text The Emergency Rail Services Act of 1970, referred to in subsec. (d), is Pub. L. 91663 Jan. 8, 1971 84 Stat. 1975 section 661 of this title Directed service under title 49, referred to in subsec. (g), probably refers to directed service under section 11125 of Title 49 Pub. L. 10488,  102(a) Codification Subsecs. (a) to (c) of this section amended section 662 of this title Amendments 1980Subsec. (h). Pub. L. 96448 Statutory Notes and Related Subsidiaries Effective Date of 1980 Amendment Amendment by Pub. L. 96448 Oct. 14, 1980 section 710(d) of Pub. L. 96448 section 1170 of Title 11  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  907. Railroad hiring  Each person who is an employee of the Milwaukee Railroad on September 30, 1979 April 1, 1984 ( Pub. L. 96101,  8 Nov. 4, 1979 93 Stat. 740 Pub. L. 97468, title II,  236(a) Jan. 14, 1983 96 Stat. 2547  Editorial Notes Amendments 1983 Pub. L. 97468 April 1, 1984 April 1, 1981 Statutory Notes and Related Subsidiaries  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49 Exemption of National Railroad Passenger Corporation in Hiring Qualified Train and Engine Employees Section inapplicable to National Railroad Passenger Corporation in hiring of qualified train and engine employees holding seniority rights to work in intercity rail passenger service in connection with the assumption by such Corporation of functions previously performed under contract by other carriers, see section 4011(c) of Pub. L. 99272 section 797b of this title  908. Employee protection agreements (a) Agreement between Milwaukee Railroad and labor organizations The Milwaukee Railroad and labor organizations representing the employees of such railroad may, not later than 20 days after November 4, 1979 (b) Submission of matter to National Mediation Board If the Milwaukee Railroad and the labor organizations representing the employees of such railroad are unable to enter into an employee protection agreement under subsection (a) of this section within 20 days after November 4, 1979 November 4, 1979 (c) Fair and equitable agreements (1) If the National Mediation Board is unable to bring the parties to an agreement under subsection (b) of this section within 40 days after November 4, 1979 (2) If an employee protection agreement is entered into under this subsection, any claim of an employee for benefits and allowances under such agreement shall be filed with the Board in such time and manner as the Board by regulation shall prescribe. The Board shall determine the amount for which such employee is eligible under such agreement and shall certify such amount to the Milwaukee Railroad for payment. (d) Payment of benefits and allowances Benefits and allowances under an employee protection agreement entered into under this section shall be paid by the Milwaukee Railroad in accordance with section 914 of this title ( Pub. L. 96101,  9 Nov. 4, 1979 93 Stat. 741  909. Supplementary unemployment insurance (a) Eligible employees Any employee of the Milwaukee Railroad (1) who (A) is employed by the restructured Milwaukee Railroad, and (B) is separated from that employment by reason of any reduction in service by such railroad prior to April 1, 1984 (2) who (A) is separated from his employment with the Milwaukee Railroad in connection with a restructuring transaction carried out by such railroad, and obtains employment, prior to April 1, 1981 April 1, 1984 shall be entitled to receive monthly supplementary unemployment insurance in accordance with the provisions of this section. (b) Period of payment Each employee described in subsection (a) of this section shall be entitled to receive supplementary unemployment insurance during each month in which such employee is not employed, for all or a portion of such month, by the Milwaukee Railroad or another rail carrier. Each such employee shall be entitled to receive such insurance for a total of not more than 36 months, except that (1) the period of entitlement for assistance under this section shall not exceed the employees total months of service with the Milwaukee Railroad; and (2) no compensation shall be provided under this section after April 1, 1984 (c) Amount of payment Supplementary unemployment insurance under this section shall be payable to an employee on a monthly basis in an amount equal to (1) eighty percent of such employees average monthly normal compensation from employment with the Milwaukee Railroad during the period beginning June 1, 1977 November 4, 1979 (2) the sum of (A) the amount of any benefits payable to such employee for such month under the Railroad Unemployment Insurance Act [ 45 U.S.C. 351 (d) Filing of application An application for supplementary unemployment insurance shall be filed with the Board in such time and manner as the Board by regulation shall prescribe. (e) Insurance as compensation Any supplementary unemployment insurance received by any employee pursuant to this section shall be considered to be compensation solely (1) for purposes of the Railroad Retirement Act of 1974 ( 45 U.S.C. 231 (2) for purposes of determining the compensation received by such employee in any base year under the Railroad Unemployment Insurance Act [ 45 U.S.C. 351 (f) Employees not covered (1) The provisions of this section shall not apply to an employee in the event of his resignation, retirement, or discharge for cause from the employment of any rail carrier. (2) An employee shall not be entitled to receive supplementary unemployment insurance under this section if he has failed to exhaust all seniority rights or other employment rights under applicable collective bargaining agreements. (3) An employee shall not be entitled to receive supplementary unemployment insurance under this section for any month or portion of a month in which such employee is unemployed due to normal seasonal unemployment patterns in the railroad industry. (g) Furloughed employees For purposes of this section, any employee of the Milwaukee Railroad who is furloughed shall be considered to be separated from his employment. ( Pub. L. 96101,  10(a) Nov. 4, 1979 93 Stat. 741  Editorial Notes  References in Text The Railroad Unemployment Insurance Act, referred to in subsecs. (c)(2) and (e)(2), is act June 25, 1938, ch. 680 52 Stat. 1094 section 367 of this title The Railroad Retirement Act of 1974, referred to in subsec. (e)(1), is act Aug. 29, 1935, ch. 812 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1305 section 231 of this title section 231t of this title Codification Section is comprised of subsecs. (a) to (g) of section 10 of Pub. L. 96101 section 231f(b)(7) of this title  910. Repealed. Pub. L. 9735, title XI,  1144(b) Aug. 13, 1981 95 Stat. 669   Section, Pub. L. 96101,  11 Nov. 4, 1979 93 Stat. 742 section 797c of this title Statutory Notes and Related Subsidiaries Effective Date of Repeal Repeal effective Aug. 13, 1981 section 1169 of Pub. L. 9735 section 1101 of this title  911. New career training assistance (a) Eligible employees Any employee who elects to receive a separation allowance from the Milwaukee Railroad under an employee protection agreement entered into under section 908 of this title (b) Commencement of training as condition To be entitled for assistance under this section, an employee must begin his course of training within two years following the date of his separation from employment with the Milwaukee Railroad. (c) Filing of application; Board determination Entitlement to expenses for assistance under this section shall be determined by the Board on the basis of an application therefor filed by an employee with the Board. (d) Assistance prohibited after April 1, 1984 No assistance may be provided under this section after April 1, 1984 (e) Definitions As used in this section (1) the term expenses means actual expenses paid for room, board, tuition, fees, or educational material in an amount not to exceed $3,000; and (2) the term qualified institution means an educational institution accredited for payment by the Veterans Administration under chapter 36 of title 38, or a State-accredited institution which has been in existence for not less than two years. ( Pub. L. 96101,  12 Nov. 4, 1979 93 Stat. 743 Pub. L. 96254, title I,  119(f) May 30, 1980 94 Stat. 408  Editorial Notes Amendments 1980Subsec. (e)(2). Pub. L. 96254 Statutory Notes and Related Subsidiaries  Change of Name Reference to Veterans Administration deemed to refer to Department of Veterans Affairs pursuant to section 10 of Pub. L. 100527 section 301 of Title 38  912. Election  Any employee who receives any assistance under section 909 or section 911 of this title section 908 of this title ( Pub. L. 96101,  13 Nov. 4, 1979 93 Stat. 743  Editorial Notes  References in Text Section 909 of this title section 10 of Pub. L. 96101 Nov. 4, 1979 93 Stat. 741 section 909 of this title section 231f(b)(7) of this title The Bankruptcy Act, referred to in text, is act July 1, 1898, ch. 541 30 Stat. 544 Oct. 1, 1979 Pub. L. 95598 Nov. 6, 1978 92 Stat. 2682  913. Authorization of appropriations (a) There is authorized to be appropriated to provide supplementary unemployment insurance under section 909 of this title (b) There is authorized to be appropriated for new career training assistance under section 911 of this title (c) There is authorized to be appropriated to the Board to carry out its administrative expenses under this chapter and the Rock Island Railroad Transition and Employee Assistance Act [ 45 U.S.C. 1001 October 1, 1980 45 U.S.C. 1001 (d) There are authorized to be appropriated $15,000,000 for purposes of providing transaction assistance in accordance with section 825(h)(1)(A) and (B) of this title. (e) Amounts appropriated under this section are authorized to remain available until expended. ( Pub. L. 96101,  14 Nov. 4, 1979 93 Stat. 743 Pub. L. 96254, title I,  109 May 30, 1980 94 Stat. 403 Pub. L. 96448, title VII,  701(c)(2) Oct. 14, 1980 94 Stat. 1961 Pub. L. 97468, title II,  234(b) Jan. 14, 1983 96 Stat. 2547  Editorial Notes  References in Text Section 909 of this title section 10 of Pub. L. 96101 Nov. 4, 1979 93 Stat. 741 section 909 of this title section 231f(b)(7) of this title The Rock Island Railroad Transition and Employee Assistance Act, referred to in subsec. (c), is title I of Pub. L. 96254 May 30, 1980 94 Stat. 399 section 1001 of this title Section 825 of this title Pub. L. 105178, title VII,  7203(a)(2) June 9, 1998 112 Stat. 477 Amendments 1983Subsec. (b). Pub. L. 97468 Oct. 1, 1980 section 911 of this title section 1014 of this title 1980Subsec. (b). Pub. L. 96254,  109(b) Oct. 1, 1980 section 911 of this title section 1014 of this title Subsec. (c). Pub. L. 96254,  109(a) Oct. 1, 1980 Subsecs. (d), (e). Pub. L. 96448 Statutory Notes and Related Subsidiaries Effective Date of 1980 Amendment Amendment by Pub. L. 96448 Oct. 14, 1980 section 710(d) of Pub. L. 96448 section 1170 of Title 11  914. Obligation guarantees (a) Authorization The Secretary of Transportation, under the authority of section 831 of this title section 908 of this title section 831 of this title (b) Obligations as administrative expense Any obligation guaranteed pursuant to this section shall be treated as an administrative expense of the estate of the Milwaukee Railroad. (c) Limit on aggregate unpaid principal amount The aggregate unpaid principal amount of obligations which may be guaranteed by the Secretary pursuant to this section shall not exceed $75,000,000. (d) Limit on total liability The total liability of the Milwaukee Railroad in connection with benefits and allowances provided under an employee protection agreement entered into under section 908 of this title (e) Liability of United States respecting section 908 agreements Except in connection with obligations guaranteed under this section, the United States shall incur no liability to employees in connection with any employee protection agreement entered into under section 908 of this title (f) Applicability of section 22404 of title 49 Section 22404 of title 49 ( Pub. L. 96101,  15 Nov. 4, 1979 93 Stat. 743 Pub. L. 96448, title VII,  701(a)(3) Oct. 14, 1980 94 Stat. 1959 Pub. L. 11758, div. B, title I,  21301(j)(3)(E) Nov. 15, 2021 135 Stat. 692  Editorial Notes  References in Text Section 831 of this title Pub. L. 105178, title VII,  7203(a)(2) June 9, 1998 112 Stat. 477 section 823(b) of this title section 7203(a)(4) of Pub. L. 105178 Section 823(b) of this title Pub. L. 11758, div. B, title I,  21301(b)(1)(A) Nov. 15, 2021 135 Stat. 683 Amendments 2021Subsec. (f). Pub. L. 11758 Section 22404 of title 49 Section 836 of this title 1980Subsec. (e). Pub. L. 96448 Statutory Notes and Related Subsidiaries Effective Date of 1980 Amendment Amendment by Pub. L. 96448 Oct. 14, 1980 section 710(d) of Pub. L. 96448 section 1170 of Title 11  915. Court approved abandonment and sales in pending cases (a) Abandonment of lines of railroad under Bankruptcy Act Notwithstanding any other provision of law, in any case pending under section 77 of the Bankruptcy Act on November 4, 1979 section 1170 of title 11 1 1 (b) Sale or transfer of lines of railroad under Bankruptcy Act (1) Notwithstanding any other provision of law, in any case pending under section 77 of the Bankruptcy Act on November 4, 1979 November 1, 1979 1 (2) The court described in paragraph (1) may not authorize a sale or transfer pursuant to such paragraph unless an appropriate application with respect to such sale or transfer is initiated with the Commission and, within such time as the court may fix, not exceeding 180 days, the Commission, with or without a hearing, as the Commission may determine, and with or without modification or condition, approves such application, or does not act on such application. Any action or order of the Commission approving, modifying, conditioning, or disapproving such application is subject to review by the court only under sections 706(2)(A), 706(2)(B), 706(2)(C), and 706(2)(D) of title 5. (3) (A) If a person has made or makes an offer to acquire from a carrier subject to liquidation a rail line or lines over which no service is provided by that carrier, and that offer has been or is rejected by the trustee in bankruptcy of such carrier, such person may submit an application to the Commission seeking approval of such persons acquisition of such line or lines. A copy of any such application shall be filed simultaneously with the court. (B) The Commission shall, within 15 days after the filing of an application under subparagraph (A) of this paragraph, determine whether the applicant (i) is a financially responsible person; and (ii) has made a bona fide offer to acquire the line or lines under reasonable terms. (C) (i) If the Commissions determination under subparagraph (B) of this paragraph is affirmative with respect to the matters referred to in clauses (i) and (ii) of such subparagraph, the applicant and the trustee in bankruptcy (hereafter in this paragraph referred to collectively as the parties) shall enter into negotiations with respect to terms for the acquisition of the line or lines applied for. If the parties at any time agree on such terms, a request for approval of the acquisition shall be filed with the Commission and the court. If the parties are unable to agree to such terms within 30 days after the date of the Commissions determination under subparagraph (B) of this paragraph, either party may, within 60 days after the expiration of such 30-day period, request the Commission to prescribe terms for such acquisition, including compensation for the line or lines to be acquired. The Commission shall prescribe such terms within 60 days after any such request is made. The terms prescribed by the Commission shall be binding upon both parties, subject to court review as provided in subparagraph (D) of this paragraph, except that the applicant may withdraw its offer within 10 days after the Commission prescribes such terms. (ii) If more than one applicant has requested under this subparagraph that the Commission prescribe the terms of acquisition for the same or overlapping lines or portions of such lines, the Commission shall prescribe terms for such acquisition which it determines best serve the public interest. (D) (i) Within 15 days after the Commission prescribes terms under subparagraph (C) of this paragraph, the Commission shall transmit such terms to the court, unless the offer is withdrawn under such subparagraph. Notwithstanding any other provision of law, the court shall, within 60 days after such transmittal, approve the acquisition under terms prescribed by the Commission if the compensation for the line or lines is not less than that required as a constitutional minimum. (ii) Except as provided in this subparagraph, no action shall be taken by the court which would prejudice the acquisition which is the subject of an application under this paragraph. (E) The Commission shall require that any person acquiring a line or lines under this paragraph use, to the maximum extent practicable, employees or former employees of the carrier subject to liquidation in the operation of service on such line or lines. (F) No person acquiring a line under this paragraph may transfer or discontinue service on such line prior to the expiration of 4 years after such acquisition. (G) The Commission shall, within 45 days after January 14, 1983 (H) As used in this paragraph, the term (i) carrier subject to liquidation means a carrier which, on January 14, 1983 (ii) the court means the court having bankruptcy jurisdiction over the carrier subject to liquidation; and (iii) financially responsible person means a person capable of compensating the carrier subject to liquidation for the acquisition of the line or lines proposed to be acquired and able to cover expenses associated with providing service over such line or lines for a period of not less than 4 years. (4) Pending review of an application by the Commission pursuant to paragraph (2) of this subsection, the court described in paragraph (1) may, on a preliminary basis, authorize the sale or transfer proposed in such application. The court may permit the purchasing carrier to operate interim service over the lines to be purchased, and in operating such service it shall use employees of the carrier subject to the bankruptcy proceeding to the extent such purchasing carrier deems necessary for the operation of such service. (c) Judicial review Any action or order of the Commission approving, modifying, conditioning, or disapproving an application for the sale or transfer of rail property that is filed with the Commission before November 1, 1979 November 4, 1979 (1) is subject to review by the court only under sections 706(2)(A), 706(2)(B), 706(2)(C), and 706(2)(D) of title 5; and (2) may not be stayed by the Commission. (d) Authority of bankruptcy court The authority of the bankruptcy court to authorize abandonments, sales, and transfers of lines of the Milwaukee Railroad shall be governed by the provisions of section 904 of this title (e) Effect on priorities and timing of employee protection payments Nothing in this section shall be deemed to affect the priorities or timing of payment of employee protection which might have existed in the absence of this chapter. ( Pub. L. 96101,  17 Nov. 4, 1979 93 Stat. 744 Pub. L. 97468, title II,  213 Jan. 14, 1983 96 Stat. 2544  Editorial Notes  References in Text Section 77 of the Bankruptcy Act, referred to in subsecs. (a), (b)(1), (3)(H)(i), and (c), was classified to section 205 of former Title 11, Bankruptcy. The Bankruptcy Act ( act July 1, 1898, ch. 541 30 Stat. 544 Oct. 1, 1979 Pub. L. 95598 Nov. 6, 1978 92 Stat. 2682 Section 11347 of title 49 Pub. L. 10488, title I,  102(a) Dec. 29, 1995 109 Stat. 804 section 11326(a) of Title 49 Amendments 1983Subsec. (b)(3), (4). Pub. L. 97468 Statutory Notes and Related Subsidiaries  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  916. Repealed. Pub. L. 10488, title III,  328 Dec. 29, 1995 109 Stat. 952   Section, Pub. L. 96101,  18 Nov. 4, 1979 93 Stat. 746 Pub. L. 96254, title I,  116 May 30, 1980 94 Stat. 405 Statutory Notes and Related Subsidiaries Effective Date of Repeal Repeal effective Jan. 1, 1996 section 2 of Pub. L. 10488 section 1301 of Title 49  917. Applicability of National Environmental Policy Act  The provisions of the National Environmental Policy Act [ 42 U.S.C. 4321 ( Pub. L. 96101,  19 Nov. 4, 1979 93 Stat. 746  Editorial Notes  References in Text The National Environmental Policy Act, referred to in text, probably means the National Environmental Policy Act of 1969, Pub. L. 91190 Jan. 1, 1970 83 Stat. 852 section 4321 of Title 42  918. Authority of Railroad Retirement Board (a) The Board may prescribe such regulations as may be necessary to carry out its duties under this chapter. (b) In carrying out its duties under this chapter, the Board may exercise such of the powers, duties, and remedies provided in subsections (a), (b), and (d) of section 362 of this title ( Pub. L. 96101,  20 Nov. 4, 1979 93 Stat. 746  919. Publications and reports (a) Within 30 days after November 4, 1979 1 1 (b) During the 2-year period beginning on November 4, 1979 ( Pub. L. 96101,  21 Nov. 4, 1979 93 Stat. 746  Editorial Notes  References in Text Section 909 of this title section 10 of Pub. L. 96101 Nov. 4, 1979 93 Stat. 741 section 909 of this title section 231f(b)(7) of this title Section 910 of this title Pub. L. 9735, title XI,  1144(b) Aug. 13, 1981 95 Stat. 669  920. Continuation of service (a) Until the occurrence of an event described in subsection (b) of this section, the Milwaukee Railroad (1) shall maintain its entire railroad system, as it existed on October 15, 1979 (b) The Milwaukee Railroad shall comply with the requirements of subsection (a) of this section until (1) an employee or employee-shipper ownership plan is not submitted to the Interstate Commerce Commission within the time period prescribed under section 905(a) of this title (2) the proposed plan is found by the Commission not to be feasible or the Commission does not act within 30 days; (3) the proposed plan is found by the bankruptcy court not to be fair and equitable to the estate of the Milwaukee Railroad; or (4) the plan is not implemented within the time period prescribed under section 905(c) of this title ( Pub. L. 96101,  22 Nov. 4, 1979 93 Stat. 746  Statutory Notes and Related Subsidiaries  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  921. Office of Rail Public Counsel  The Office of Rail Public Counsel may appear and be heard in the case in the bankruptcy court involving the reorganization of the Milwaukee Railroad, for purposes of representing affected shippers, localities, and municipalities with respect to the proposed abandonment of any line of the Milwaukee Railroad. ( Pub. L. 96101,  25 Nov. 4, 1979 93 Stat. 747  922. Employee stock ownership plan for surviving portion of Milwaukee Railroad  If an event described in section 920(b) of this title 45 U.S.C. 661 ( Pub. L. 96101,  26 Nov. 4, 1979 93 Stat. 747  Editorial Notes  References in Text The Emergency Rail Services Act of 1970, referred to in text, is Pub. L. 91663 Jan. 8, 1971 84 Stat. 1975 section 661 of this title CHAPTER 19 ROCK ISLAND RAILROAD EMPLOYEE ASSISTANCE    Sec.  1001. Congressional findings.  1002. Definitions.  1003. Service continuation.  1004. Railroad hiring.  1005. Employee protection agreement.  1006. Repealed.  1007. Election.  1008. Repealed.  1009. Expedited proceedings.  1010. Applicability of National Environmental Policy Act and section 6362(b) of title 42  1011. Authority of Railroad Retirement Board.  1012. Publications and reports.  1013. Repealed.  1014. New career training assistance.  1015. Repealed.  1016. Temporary rail banking.  1017. Temporary operating approval.  1018. Judicial review.  1001. Congressional findings Congress hereby finds that (1) uninterrupted continuation of services over Rock Island lines is dependent on adequate employee protection provisions covering Rock Island Railroad employees who are not hired by other railroads; (2) for those Rock Island Railroad employees not hired by other rail carriers, there is no other practicable means of obtaining funds to meet the necessary costs of such employee protection that are assumed by the Rock Island Railroad; (3) a cessation of necessary operations of the Rock Island Railroad would have serious repercussions on the economies of the States in which such railroad principally operates; and (4) premature cessation of services over lines which are the subject of pending purchase application would result in harm to the shipping public and could imperil continuation of vital commuter service. ( Pub. L. 96254, title I,  102 May 30, 1980 94 Stat. 399  Statutory Notes and Related Subsidiaries Short Title Pub. L. 96254, title I,  101 May 30, 1980 94 Stat. 399 This title [enacting this chapter, amending sections 231f, 726, 825, 902, 911, 913, and 916 of this title, and enacting provisions set out as a note under this section] may be cited as the Rock Island Railroad Transition and Employee Assistance Act. Savings Provision Pub. L. 96254, title I,  125 May 30, 1980 94 Stat. 409 Pub. L. 96448, title VII,  701(a)(1) Oct. 14, 1980 94 Stat. 1959 If any provision of this title [see Short Title note above] or the application thereof to any person or circumstance is held invalid, the remainder of this title and the application of such provision to other persons or circumstances shall not be affected thereby.  1002. Definitions As used in this chapter, the term (1) bankruptcy court means the court having jurisdiction over the reorganization of the Rock Island Railroad; (2) Board means the Railroad Retirement Board; (3) Commission means the Interstate Commerce Commission; (4) employee includes any employee of the Rock Island Railroad as of August 1, 1979 (5) the term Rock Island Railroad means the Chicago, Rock Island and Pacific Railroad Company, the estate of such Company in its reorganization proceeding, or the trustee appointed in such proceeding; and (6) the term Secretary means the Secretary of Transportation. ( Pub. L. 96254, title I,  103 May 30, 1980 94 Stat. 399 Pub. L. 96448, title VII,  701(b)(3) Oct. 14, 1980 94 Stat. 1960  Editorial Notes  References in Text This chapter, referred to in text, was in the original this title, meaning title I ( 101 et seq.) of Pub. L. 96254 May 30, 1980 94 Stat. 399 section 1001 of this title Amendments 1980Par. (5). Pub. L. 96448 Statutory Notes and Related Subsidiaries Effective Date of 1980 Amendment Amendment by Pub. L. 96448 Oct. 14, 1980 section 710(d) of Pub. L. 96448 section 1170 of Title 11  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  1003. Service continuation (a) Situations requiring directed service; time period Notwithstanding the provisions of Public Law 96131 (1) a lack of rail service exists which cannot be resolved by a grant of interim operating authority over such line and grains or foods are ready to be shipped to market; or (2) a lack of rail service exists which cannot be resolved by a grant of interim operating authority over such line and a rail carrier, shipper, State, or other interested party has expressed in writing to the Secretary an interest in purchasing, leasing, or rehabilitating the particular rail line or facility for purposes of providing rail services, and there is a reasonable expectation that such transaction will be consummated. (b) Availability of funds (1) Not more than $15,000,000 of the funds available for expenditure by the Secretary out of the Railroad Rehabilitation and Improvement Fund established under chapter 224 of title 49 may be made available by the Secretary to the Commission for purposes of providing directed service under this section. (2) Funds may be made available for directed service under this section without regard to the findings of the Secretary required under chapter 224 of title 49, including section 22404 of such title, shall not apply to any directed service provided with such funds. (c) Continuation of compensation terms for trackage rights, joint facilities, etc. The terms of compensation for all trackage rights, joint facilities, and similar arrangements between other rail carriers and the trustee of the Rock Island Railroad which are in effect on or after March 15, 1980 ( Pub. L. 96254, title I,  104 May 30, 1980 94 Stat. 400 Pub. L. 10488, title III,  329(1) Dec. 29, 1995 109 Stat. 952 Pub. L. 11758, div. B, title I,  21301(j)(3)(F) Nov. 15, 2021 135 Stat. 692  Editorial Notes  References in Text Public Law 96131 Pub. L. 96131 Nov. 30, 1979 93 Stat. 1023 section 851 of this title section 501 of Title 14 section 10344 of Title 49 Amendments 2021Subsec. (b)(1). Pub. L. 11758,  21301(j)(3)(F)(i) 45 U.S.C. 821 section 916(b) of this title Subsec. (b)(2). Pub. L. 11758,  21301(j)(3)(F)(ii) 45 U.S.C. 836 1995Subsec. (a). Pub. L. 10488 Public Law 96131 section 11125 of title 49 Public Law 96131 Statutory Notes and Related Subsidiaries Effective Date of 1995 Amendment Amendment by Pub. L. 10488 Jan. 1, 1996 section 2 of Pub. L. 10488 section 1301 of Title 49  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  1004. Railroad hiring (a) Each person who is an employee of the Rock Island Railroad on August 1, 1979 January 1, 1984 (b) The rights afforded to Rock Island Railroad employees by this section shall be coequal to the rights afforded to Chicago, Milwaukee, Saint Paul and Pacific Railroad Company employees by section 907 of this title ( Pub. L. 96254, title I,  105 May 30, 1980 94 Stat. 400 Pub. L. 97468, title II,  236(b) Jan. 14, 1983 96 Stat. 2547  Editorial Notes Amendments 1983Subsec. (a). Pub. L. 97468 January 1, 1984 January 1, 1981 Statutory Notes and Related Subsidiaries  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49 Exemption of National Railroad Passenger Corporation in Hiring Qualified Train and Engine Employees Section inapplicable to National Railroad Passenger Corporation in hiring of qualified train and engine employees holding seniority rights to work in intercity rail passenger service in connection with the assumption by such Corporation of functions previously performed under contract by other carriers, see section 4011(c) of Pub. L. 99272 section 797b of this title  1005. Employee protection agreement (a) Authorization; time for agreement; use of funds The Secretary and the representatives of the various classes and crafts of employees of the Rock Island Railroad shall, not later than 90 days after January 14, 1983 (1) Subsistence allowances to employees. (2) Moving expenses for employees who must make a change in residence. (3) Retraining expenses for employees who are seeking employment in new areas. (4) Separation allowances for employees. (5) Health and welfare insurance premiums. (6) Such other purposes as may be agreed upon by the parties. (b) Failure to reach agreement; benefit schedule If the parties are unable to reach agreement within the time period specified in subsection (a) of this section, the Secretary shall, within 30 days after the expiration of such time period, prescribe a schedule of benefits for employee protection not inconsistent with the provisions of this chapter. (c) Limitations on funds Any agreement entered into under subsection (a) of this section, and any benefit schedule prescribed under subsection (b) of this section, shall not require the expenditure of funds in excess of amounts authorized to be appropriated under section 727(f)(1)(C) of this title April 1, 1984 (d) Administration of funds; promulgation of regulations The Board shall, in such manner as it shall prescribe by regulation, administer the distribution of funds under any agreement entered into or benefit schedule prescribed under this section, and shall determine the amount for which each employee is eligible under such agreement or benefit schedule. Such regulation shall include procedures to resolve by final and binding arbitration any dispute over an employees eligibility or claim. ( Pub. L. 96254, title I,  106 May 30, 1980 94 Stat. 401 Pub. L. 96448, title VII,  701(b)(1) Oct. 14, 1980 94 Stat. 1959 Pub. L. 97468, title II,  231 Jan. 14, 1983 96 Stat. 2546  Editorial Notes  References in Text This chapter, referred to in subsec. (b), was in the original this Act, which probably was meant to be a reference to this title, meaning title I ( 101 et seq.) of Pub. L. 96254 May 30, 1980 94 Stat. 399 section 1001 of this title Codification Prior to the general amendment of section 106 of Pub. L. 96254 Pub. L. 97468 section 106 of Pub. L. 96254 section 231f(b)(7) of this title Amendments 1983Subsec. (a). Pub. L. 97468 Subsec. (b). Pub. L. 97468 Subsec. (c). Pub. L. 97468 Subsec. (d). Pub. L. 97468 Subsec. (e). Pub. L. 97468 1980Subsec. (a). Pub. L. 96448 October 14, 1980 May 30, 1980 Subsec. (b). Pub. L. 96448 October 14, 1980 May 30, 1980 October 14, 1980 May 30, 1980 Subsec. (c). Pub. L. 96448 Subsec. (d). Pub. L. 96448 Subsec. (e). Pub. L. 96448 Statutory Notes and Related Subsidiaries Effective Date of 1980 Amendment Amendment by Pub. L. 96448 Oct. 14, 1980 section 710(d) of Pub. L. 96448 section 1170 of Title 11  1006. Repealed. Pub. L. 9735, title XI,  1144(b) Aug. 13, 1981 95 Stat. 669   Section, Pub. L. 96254, title I,  107 May 30, 1980 94 Stat. 402 section 797c of this title Statutory Notes and Related Subsidiaries Effective Date of Repeal Repeal effective Aug. 13, 1981 section 1169 of Pub. L. 9735 section 1101 of this title  1007. Election (a) Assistance received under employee protection agreement; waiver of other employee protection benefits; exception Any employee who receives any assistance under an employee protection agreement entered into or benefit schedule prescribed under section 1005 of this title section 1014 of this title March 4, 1980 (b) Filing of statement Any employee of the Rock Island Railroad who is entitled to receive assistance under this chapter shall, no later than 120 days after the effective date of any agreement entered into under section 1005(a) of this title section 1005(b) of this title (c) Effect on priority, timing, etc., of employee protection payments With regard to any employee who elects benefits under subsection (b)(2) of this section, nothing in this chapter shall be deemed to determine or otherwise affect the priority, status, or timing of payment of, or the liability for any claim for, employee protection which might have existed in the absence of this chapter. (d) Limitation on assistance eligibility An employee shall not be eligible to receive any assistance (other than moving expenses) under an employee protection agreement entered into or benefit schedule prescribed under section 1005 of this title section 1014 of this title (1) during any period in which such employee is employed by any rail carrier providing temporary service over any lines of the Rock Island Railroad; or (2) at any time after the date such employee receives an offer of employment, in his craft and for which such employee is qualified, from a rail carrier acquiring lines of the Rock Island Railroad. ( Pub. L. 96254, title I,  108 May 30, 1980 94 Stat. 402 Pub. L. 96448, title VII,  701(b)(2) Oct. 14, 1980 94 Stat. 1960 Pub. L. 97468, title II,  232 Jan. 14, 1983 96 Stat. 2547  Editorial Notes  References in Text The Bankruptcy Act, referred to in subsecs. (a) and (b), is act July 1, 1898, ch. 541 30 Stat. 544 Oct. 1, 1979 Pub. L. 95598 Nov. 6, 1978 92 Stat. 2682 This chapter, referred to in subsecs. (b) and (c), was in the original this title, meaning title I ( 101 et seq.) of Pub. L. 96254 May 30, 1980 94 Stat. 399 section 1001 of this title Amendments 1983Subsec. (a). Pub. L. 97468,  232(1) Subsec. (b). Pub. L. 97468,  232(2) section 1005(a) of this title section 1005(b) of this title April 1, 1981 Subsec. (d). Pub. L. 97468,  232(1) 1980Subsec. (a). Pub. L. 96448 Mar. 4, 1980 Statutory Notes and Related Subsidiaries Effective Date of 1980 Amendment Amendment by Pub. L. 96448 Oct. 14, 1980 section 710(d) of Pub. L. 96448 section 1170 of Title 11  1008. Repealed. Pub. L. 97468, title II,  234(a) Jan. 14, 1983 96 Stat. 2547   Section, Pub. L. 96254, title I,  110 May 30, 1980 94 Stat. 403 Pub. L. 96448, title VII,  701(a)(2) Oct. 14, 1980 94 Stat. 1959  1009. Expedited proceedings (a) The Commission shall give all proceedings involving the Rock Island Railroad preference over all other pending proceedings related to rail carriers and make all of its decisions at the earliest practicable time. (b) The Commission shall, within 100 days of the filing of an application (or such shorter period as the court may set) pursuant to section 915 of this title January 1, 1980 ( Pub. L. 96254, title I,  111 May 30, 1980 94 Stat. 404  Statutory Notes and Related Subsidiaries  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  1010. Applicability of National Environmental Policy Act and section 6362(b) of title 42  The provisions of the National Environmental Policy Act [ 42 U.S.C. 4321 section 6362(b) of title 42 ( Pub. L. 96254, title I,  113 May 30, 1980 94 Stat. 405  Editorial Notes  References in Text The National Environmental Policy Act, referred to in text, probably means the National Environmental Policy Act of 1969, Pub. L. 91190 Jan. 1, 1970 83 Stat. 852 section 4321 of Title 42 This chapter, referred to in text, was in the original this title, meaning title I ( 101 et seq.) of Pub. L. 96254 May 30, 1980 94 Stat. 399 section 1001 of this title  1011. Authority of Railroad Retirement Board (a) The Board may prescribe such regulations as may be necessary to carry out its duties under this chapter. (b) In carrying out its duties under this chapter, the Board may exercise such of the powers, duties, and remedies provided in subsections (a), (b), and (d) of section 362 of this title ( Pub. L. 96254, title I,  114 May 30, 1980 94 Stat. 405  Editorial Notes  References in Text This chapter, referred to in text, was in the original this title, meaning title I ( 101 et seq.) of Pub. L. 96254 May 30, 1980 94 Stat. 399 section 1001 of this title  1012. Publications and reports  Within 45 days after May 30, 1980 1 1 ( Pub. L. 96254, title I,  115 May 30, 1980 94 Stat. 405  Editorial Notes  References in Text Section 1006 of this title Pub. L. 9735, title XI,  1144(b) Aug. 13, 1981 95 Stat. 669  1013. Repealed. Pub. L. 103272,  7(b) July 5, 1994 108 Stat. 1379   Section, Pub. L. 96254, title I,  117 May 30, 1980 94 Stat. 406 section 20306 of Title 49  1014. New career training assistance (a) Eligible employees An employee who elects to receive a separation allowance under an employee protection agreement entered into or a benefit schedule prescribed under section 1005 of this title (b) Conditions for assistance To be eligible for assistance under this section, an employee (1) must first exhaust any Federal educational benefits available to such employee under any existing program; and (2) must begin his course of training within 2 years following the date of such employees separation from employment with the Rock Island Railroad. (c) Determination of reasonable expenses by Board Reasonable expenses for assistance under this section shall be determined by the Board on the basis of an application therefor filed by an employee with the Board. (d) Assistance prohibited after April 1, 1984 No assistance may be provided under this section after April 1, 1984 (e) Definitions As used in this section (1) the term expenses means actual, reasonable expenses paid for room, board, tuition, fees, or educational material in an amount not to exceed $3,000; and (2) the term qualified institution means an educational institution accredited for payment by the Veterans Administration under chapter 36 of title 38, or a State-accredited institution which has been in existence for not less than 2 years. ( Pub. L. 96254, title I,  119(a) May 30, 1980 94 Stat. 408 Pub. L. 97468, title II,  233 Jan. 14, 1983 96 Stat. 2547  Editorial Notes Codification Section is comprised of subsecs. (a) to (e) of section 119 of Pub. L. 96254 section 911 of this title Amendments 1983Subsec. (a). Pub. L. 97468 section 1005 of this title section 1005 of this title Statutory Notes and Related Subsidiaries  Change of Name Reference to Veterans Administration deemed to refer to Department of Veterans Affairs pursuant to section 10 of Pub. L. 100527 section 301 of Title 38  1015. Repealed. Pub. L. 10488, title III,  329(2) Dec. 29, 1995 109 Stat. 952   Section, Pub. L. 96254, title I,  120 May 30, 1980 94 Stat. 408 Pub. L. 97216, title I,  101 July 18, 1982 96 Stat. 188 Mar. 1, 1980 Statutory Notes and Related Subsidiaries Effective Date of Repeal Repeal by Pub. L. 10488 Jan. 1, 1996 section 2 of Pub. L. 10488 section 1301 of Title 49  1016. Temporary rail banking During the 180-day period beginning on May 30, 1980 (1) a rail carrier, shipper, State, or other interested party has expressed in writing an interest in purchasing, leasing or rehabilitating the particular rail line or facility for purposes of providing rail service; and (2) there is a reasonable expectation that such purchase transaction will be consummated. ( Pub. L. 96254, title I,  121 May 30, 1980 94 Stat. 409  Statutory Notes and Related Subsidiaries  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  1017. Temporary operating approval (a) Use of tracks and facilities by other rail carriers; terms of compensation; continuation of service The Commission may authorize any rail carrier willing to do so voluntarily to use the tracks and facilities of a carrier which, on January 14, 1983 (b) Use of employees In carrying out the provisions of this section, the Commission shall require, to the maximum extent practicable, the use of the employees who would normally have performed work in connection with the traffic subject to the action of the Commission. ( Pub. L. 96254, title I,  122 May 30, 1980 94 Stat. 409 Pub. L. 97130,  5(a) Dec. 29, 1981 95 Stat. 1690 Pub. L. 97468, title II,  214 Jan. 14, 1983 96 Stat. 2545  Editorial Notes  References in Text Section 77 of the Bankruptcy Act, referred to in subsec. (a), was classified to section 205 of former Title 11, Bankruptcy. The Bankruptcy Act ( act July 1, 1898, ch. 541 30 Stat. 544 Oct. 1, 1979 Pub. L. 95598 Nov. 6, 1978 92 Stat. 2682 Amendments 1983Subsec. (a). Pub. L. 97468,  214(a) January 14, 1983 Subsec. (c). Pub. L. 97468,  214(b) 1981Subsec. (a). Pub. L. 97130 Statutory Notes and Related Subsidiaries  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49 Termination of Applicability of Amendment to Interstate Commerce Service Order 1498 on May 15, 1982 Pub. L. 97130,  5(b) Dec. 29, 1981 95 Stat. 1691 The applicability of the amendment made by subsection (a) [amending subsec. (a) of this section] to Interstate Commerce Commission Service Order 1498 shall expire at the end of May 15, 1982  1018. Judicial review (a) Appeals Notwithstanding any other provision of law, any appeal from (1) any decision of the bankruptcy court with respect to the constitutionality of any provision of this chapter; and (2) any decision of the court having jurisdiction over the reorganization of the Milwaukee Railroad with respect to the constitutionality of the Milwaukee Railroad Restructuring Act ( 45 U.S.C. 901 shall be taken to the United States Court of Appeals for the Seventh Circuit. (b) Appellate proceedings If appeals are taken from decisions described in subsection (a) of this section involving section 1005 or 1008 1 1 45 U.S.C. 908 (c) Action in United States Court of Claims Nothing in this chapter or in the Milwaukee Railroad Restructuring Act ( 45 U.S.C. 901 1 section 1491 of title 28 ( Pub. L. 96254, title I,  124 Pub. L. 96448, title VII,  701(a)(1) Oct. 14, 1980 94 Stat. 1959 Pub. L. 98620, title IV,  402(49) Nov. 8, 1984 98 Stat. 3361  Editorial Notes  References in Text This chapter, referred to in subsecs. (a)(1) and (c), was in the original this title, meaning title I ( 101 et seq.) of Pub. L. 96254 May 30, 1980 94 Stat. 399 section 1001 of this title The Milwaukee Railroad Restructuring Act, referred to in subsecs. (a)(2) and (c), is Pub. L. 96101 Nov. 4, 1979 93 Stat. 736 section 901 of this title Section 1008 of this title Pub. L. 97468, title II,  234(a) Jan. 14, 1983 96 Stat. 2547 The United States Court of Claims, referred to in subsec. (c), and the United States Court of Customs and Patent Appeals were merged effective Oct. 1, 1982 Pub. L. 97164 Apr. 2, 1982 96 Stat. 25 Amendments 1984Subsec. (b). Pub. L. 98620 Statutory Notes and Related Subsidiaries Effective Date of 1984 Amendment Amendment by Pub. L. 98620 Nov. 8, 1984 section 403 of Pub. L. 98620 section 1657 of Title 28 Effective Date Section effective Oct. 14, 1980 section 710(d) of Pub. L. 96448 section 1170 of Title 11 CHAPTER 20 NORTHEAST RAIL SERVICE    Sec.  1101. Congressional findings and declarations.  1102. Statement of purpose.  1103. Goals and objectives.  1104. Definitions.  1105. Judicial review.  1106. Exemption from transfer taxes and fees; recordation.  1107. Repealed.  1108. Concerted economic action.  1109. Effectuation of cost reductions.  1110 1111. Repealed.  1112. Interstate Commerce Commission proceedings.  1113. Intercity passenger service.  1114. Repealed.  1115. Redemption of stock.  1116. Applicability of other laws.  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 (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 (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. ( Pub. L. 9735, title XI,  1132 Aug. 13, 1981 95 Stat. 644  Editorial Notes  References in Text The Regional Rail Reorganization Act of 1973, referred to in pars. (1) and (4), is Pub. L. 93236 Jan. 2, 1974 87 Stat. 985 section 701 of this title Statutory Notes and Related Subsidiaries Effective Date Pub. L. 9735, title XI,  1169 Aug. 13, 1981 95 Stat. 687 Except as otherwise provided, the provisions of and the amendments made by this subtitle [subtitle E ( 11311169) of title XI of Pub. L. 9735 Aug. 13, 1981 Short Title Pub. L. 9735, title XI,  1131 Aug. 13, 1981 95 Stat. 643 This subtitle [subtitle E ( 11311169) of title XI of Pub. L. 9735  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 Governments 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. ( Pub. L. 9735, title XI,  1133 Aug. 13, 1981 95 Stat. 644  Editorial Notes  References in Text This subtitle, referred to in text, is subtitle E ( 11311169) of title XI of Pub. L. 9735 Aug. 13, 1981 95 Stat. 643 section 1101 of this title  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 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 Conrails costs in an amount equal to $200,000,000 a year, beginning April 1, 1981 (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. ( Pub. L. 9735, title XI,  1134 Aug. 13, 1981 95 Stat. 645  Editorial Notes  References in Text This subtitle, referred to in text, is subtitle E ( 11311169) of title XI of Pub. L. 9735 Aug. 13, 1981 95 Stat. 643 section 1101 of this title The Staggers Rail Act of 1980, referred to in par. (3), is Pub. L. 96448 Oct. 14, 1980 94 Stat. 1895 section 10101 of Title 49 Statutory Notes and Related Subsidiaries  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title  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 (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) 45 U.S.C. 719(b)(2) ( Pub. L. 9735, title XI,  1135(a) Aug. 13, 1981 95 Stat. 645 Pub. L. 104317, title VI,  605(c)(3) Oct. 19, 1996 110 Stat. 3859  Editorial Notes  References in Text This subtitle, referred to in text, is subtitle E ( 11311169) of title XI of Pub. L. 9735 Aug. 13, 1981 95 Stat. 643 section 1101 of this title The Regional Rail Reorganization Act of 1973, referred to in par. (5), is Pub. L. 93236 Jan. 2, 1974 87 Stat. 985 section 701 of this title Codification In par. (1), chapter 243 of title 49 substituted for title III of the Rail Passenger Service Act ( 45 U.S.C. 541 Pub. L. 103272,  6(b) July 5, 1994 108 Stat. 1378 Amendments 1996Par. (8). Pub. L. 104317 45 U.S.C. 719 Statutory Notes and Related Subsidiaries Effective Date of 1996 Amendment Amendment by Pub. L. 104317 Oct. 19, 1996 section 605(e) of Pub. L. 104317 section 719 of this title  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  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 (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 (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 (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 (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 section 706 of title 5 45 U.S.C. 1311 ( Pub. L. 9735, title XI,  1152 Aug. 13, 1981 95 Stat. 676 Pub. L. 99509, title IV,  4033(c)(1)(A) Oct. 21, 1986 100 Stat. 1908 Pub. L. 100352,  6(f) June 27, 1988 102 Stat. 664 Pub. L. 104317, title VI,  605(b)(3) Oct. 19, 1996 110 Stat. 3859  Editorial Notes  References in Text This subtitle, referred to in subsecs. (a) and (c), is subtitle E ( 11311169) of title XI of Pub. L. 9735 Aug. 13, 1981 95 Stat. 643 section 1101 of this title The Conrail Privatization Act, referred to in subsecs. (a) and (c), is subtitle A ( 40014052) of title IV of Pub. L. 99509 Oct. 21, 1986 100 Stat. 1892 section 1301 of this title Amendments 1996Subsec. (b). Pub. L. 104317,  605(b)(3) Subsec. (d). Pub. L. 104317,  605(c)(4) section 1407 of title 28 1988Subsec. (b). Pub. L. 100352 1986Subsecs. (a), (b). Pub. L. 99509,  4033(c)(1)(A)(i) Subsec. (c). Pub. L. 99509,  4033(c)(1)(A) Statutory Notes and Related Subsidiaries Effective Date of 1996 Amendment Amendment by Pub. L. 104317 Oct. 19, 1996 section 605(e) of Pub. L. 104317 section 719 of this title Effective Date of 1988 Amendment Amendment by Pub. L. 100352 June 27, 1988 section 7 of Pub. L. 100352 section 1254 of Title 28 Cases Pending in Special Court For applicability of amendment by Pub. L. 104317 section 719(b) of this title section 605(d) of Pub. L. 104317 section 719 of this title  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title  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 1 (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. ( Pub. L. 9735, title XI,  1153 Aug. 13, 1981 95 Stat. 677  Editorial Notes  References in Text This subtitle, referred to in subsecs. (a)(1) and (b), is subtitle E ( 11311169) of title XI of Pub. L. 9735 Aug. 13, 1981 95 Stat. 643 section 744a of this title section 1101 of this title  1107. Repealed. Pub. L. 99509, title IV,  4033(c)(1)(C)(i)(I) Oct. 21, 1986 100 Stat. 1908   Section, Pub. L. 9735, title XI,  1154 Aug. 13, 1981 95 Stat. 677  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 Commuters 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 ( Pub. L. 9735, title XI,  1158 Aug. 13, 1981 95 Stat. 682  Editorial Notes  References in Text The Railway Labor Act, referred to in subsec. (c), is act May 20, 1926, ch. 347 44 Stat. 577 section 151 of this title  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 1 ( Pub. L. 9735, title XI,  1159 Aug. 13, 1981 95 Stat. 682  Editorial Notes  References in Text This subtitle, referred to in text, is subtitle E ( 11311169) of title XI of Pub. L. 9735 Aug. 13, 1981 95 Stat. 643 section 1101 of this title Chapter 107 of title 49, referred to in text, was omitted and a new chapter 107 enacted in the general amendment of subtitle IV of Title 49, Transportation, by Pub. L. 10488, title I,  102(a) Dec. 29, 1995 109 Stat. 804  1110. Repealed. Pub. L. 99509, title IV,  4033(c)(1)(C)(i)(II) Oct. 21, 1986 100 Stat. 1908   Section, Pub. L. 9735, title XI,  1161 Aug. 13, 1981 95 Stat. 682  1111. Repealed. Pub. L. 105134, title IV,  408 Dec. 2, 1997 111 Stat. 2586   Section, Pub. L. 9735, title XI,  1163 Aug. 13, 1981 95 Stat. 685 Pub. L. 99272, title IV,  4017(a)(1) Apr. 7, 1986 100 Stat. 110  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 November 4, 1979 (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 section 721(a) of this title (c) Interest of United States attaching in bankruptcy, liquidation, abandonment, etc. (1) If the Secretary determines under subsection (b) that there is an agreement between a profitable railroad in the Region (as defined in section 702 of this title section 721(a) of this title (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 Secretarys judgment, will effectuate the purposes of this subsection. ( Pub. L. 9735, title XI,  1164 Aug. 13, 1981 95 Stat. 685 Pub. L. 97468, title V,  510 Jan. 14, 1983 96 Stat. 2554 Pub. L. 10488, title III,  331 Dec. 29, 1995 109 Stat. 953  Editorial Notes  References in Text Section 77 of the Bankruptcy Act, referred to in subsec. (a), was classified to section 205 of former Title 11, Bankruptcy. The Bankruptcy Act ( act July 1, 1898, ch. 541 30 Stat. 544 Oct. 1, 1979 Pub. L. 95598 Nov. 6, 1978 92 Stat. 2682 Amendments 1995Subsecs. (a), (b). Pub. L. 10488 1983Subsec. (c)(1). Pub. L. 97468,  510(1) Subsec. (c)(2). Pub. L. 97468,  510(2) Subsec. (c)(3). Pub. L. 97468,  510(3) Statutory Notes and Related Subsidiaries Effective Date of 1995 Amendment Amendment by Pub. L. 10488 Jan. 1, 1996 section 2 of Pub. L. 10488 section 1301 of Title 49  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  1113. Intercity passenger service (a) Responsibility of Conrail to provide crews terminated; negotiations for employee transfers After January 1, 1983 August 13, 1981 (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 1 ( Pub. L. 9735, title XI,  1165 Aug. 13, 1981 95 Stat. 686 Pub. L. 97468, title V,  505(a) Jan. 14, 1983 96 Stat. 2553  Editorial Notes  References in Text Section 797 of this title Pub. L. 99509, title IV,  4024(c) Oct. 21, 1986 100 Stat. 1904 Apr. 2, 1987 Codification  August 13, 1981 Amendments 1983 Pub. L. 97468,  505(a) Statutory Notes and Related Subsidiaries Conrail Employees Eligible for Employee Protection Benefits Under Regional Rail Reorganization Act of 1973 Pub. L. 97377, title I,  137 Dec. 21, 1982 96 Stat. 1915 Conrail employees who are deprived of employment by assumption or discontinuance of intercity passenger service by Amtrak shall hereafter be eligible for employee protection benefits under section 701 of the Regional Rail Reorganization Act of 1973 ( 45 U.S.C. 797  1114. Repealed. Pub. L. 99509, title IV,  4033(c)(1)(C)(i)(III) Oct. 21, 1986 100 Stat. 1908   Section, Pub. L. 9735, title XI,  1166 Aug. 13, 1981 95 Stat. 686  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 1 1 section 1105(a)(4) of this title section 746 of this title ( Pub. L. 9735, title XI,  1167(b) Aug. 13, 1981 95 Stat. 686  Editorial Notes  References in Text Section 1107 of this title Pub. L. 99509, title IV,  4033(c)(1)(C)(i)(I) Oct. 21, 1986 100 Stat. 1908 Codification Section is comprised of subsec. (b) of section 1167 of Pub. L. 9735 section 743 of this title Pub. L. 99509, title IV,  4033(c)(1)(C)(i)(IV) Oct. 21, 1986 100 Stat. 1908  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), chapter 10 of title 5, section 102(2)(C) of the National Environmental Policy Act of 1969 [ 42 U.S.C. 4332(2)(C) section 303 of title 49 45 U.S.C. 761 1 1 45 U.S.C. 1301 (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. ( Pub. L. 9735, title XI,  1168 Aug. 13, 1981 95 Stat. 687 Pub. L. 99509, title IV,  4033(c)(1)(B) Oct. 21, 1986 100 Stat. 1908 Pub. L. 113287,  5(m)(1) Dec. 19, 2014 128 Stat. 3271 Pub. L. 117286,  4(a)(288) Dec. 27, 2022 136 Stat. 4337  Editorial Notes  References in Text The Administrative Procedure Act, referred to in subsec. (a), is act June 11, 1946, ch. 324 60 Stat. 237 Pub. L. 89554 Sept. 6, 1966 80 Stat. 378 The Government in the Sunshine Act, referred to in subsec. (a), is Pub. L. 94409 Sept. 13, 1976 90 Stat. 1241 section 552b of Title 5 section 10 of Pub. L. 92463 section 410 of Title 39 section 552b of Title 5 section 552b of Title 5 The Regional Rail Reorganization Act of 1973, referred to in subsec. (a), is Pub. L. 93236 Jan. 2, 1974 87 Stat. 985 Pub. L. 99509, title IV,  4033(a)(1) Oct. 21, 1986 100 Stat. 1908 section 701 of this title The Conrail Privatization Act, referred to in subsec. (a), is subtitle A ( 40014052) of title IV of Pub. L. 99509 Oct. 21, 1986 100 Stat. 1892 section 1301 of this title Codification In subsec. (a),  section 303 of title 49 49 U.S.C. 1653(f) Pub. L. 97449,  6(b) Jan. 12, 1983 96 Stat. 2443 Amendments 2022Subsec. (a). Pub. L. 117286 2014Subsec. (a). Pub. L. 113287 1986Subsec. (a). Pub. L. 99509 CHAPTER 21 ALASKA RAILROAD TRANSFER    Sec.  1201. Findings.  1202. Definitions.  1203. Transfer authorization.  1204. Transition period.  1205. Lands to be transferred.  1206. Employees of Alaska Railroad.  1207. State operation.  1208. Future rights-of-way.  1209. Repealed.  1210. Other disposition.  1211. Denali National Park and Preserve lands.  1212. Applicability of other laws.  1213. Conflict with other laws.  1214. Separability.  1201. Findings The Congress finds that (1) the Alaska Railroad, which was built by the Federal Government to serve the transportation and development needs of the Territory of Alaska, presently is providing freight and passenger services that primarily benefit residents and businesses in the State of Alaska; (2) many communities and individuals in Alaska are wholly or substantially dependent on the Alaska Railroad for freight and passenger service and provision of such service is an essential governmental function; (3) continuation of services of the Alaska Railroad and the opportunity for future expansion of those services are necessary to achieve Federal, State, and private objectives; however, continued Federal control and financial support are no longer necessary to accomplish these objectives; (4) the transfer of the Alaska Railroad and provision for its operation by the State in the manner contemplated by this chapter is made pursuant to the Federal goal and ongoing program of transferring appropriate activities to the States; (5) the States continued operation of the Alaska Railroad following the transfer contemplated by this chapter, together with such expansion of the railroad as may be necessary or convenient in the future, will constitute an appropriate public use of the rail system and associated properties, will provide an essential governmental service, and will promote the general welfare of Alaskas residents and visitors; and (6) in order to give the State government the ability to determine the Alaska Railroads role in serving the States transportation needs in the future, including the opportunity to extend rail service, and to provide a savings to the Federal Government, the Federal Government should offer to transfer the railroad to the State, in accordance with the provisions of this chapter, in the same manner in which other Federal transportation functions (including highways and airports) have been transferred since Alaska became a State in 1959. ( Pub. L. 97468, title VI,  602 Jan. 14, 1983 96 Stat. 2556  Editorial Notes  References in Text This chapter, referred to in pars. (4) to (6), was in the original this title, meaning title VI ( 601 et seq.) of Pub. L. 97468 Jan. 14, 1983 96 Stat. 2556 Statutory Notes and Related Subsidiaries Short Title Pub. L. 97468, title VI,  601 Jan. 14, 1983 96 Stat. 2556 This title [enacting this chapter, amending sections 231, 712, and 802 of this title, sections 305, 3401, 5102, 5342, and 7327 of Title 5, Government Organization and Employees, section 410hh1 of Title 16 section 251 of Title 42 section 10749 of Title 49 section 353a of Title 16 section 208a of Title 30 section 301a of Title 48 section 1611 of Title 43  1202. Definitions As used in this chapter, the term (1) Alaska Railroad means the agency of the United States Government that is operated by the Department of Transportation as a rail carrier in Alaska under authority of the Act of March 12, 1914 43 U.S.C. 975 1 1 (2) Alaska Railroad Revolving Fund means the public enterprise fund maintained by the Department of the Treasury into which revenues of the Alaska Railroad and appropriations for the Alaska Railroad are deposited, and from which funds are expended for Alaska Railroad operation, maintenance and construction work authorized by law; (3) claim of valid existing rights means any claim to the rail properties of the Alaska Railroad on record in the Department of the Interior as of January 13, 1983 (4) date of transfer means the date on which the Secretary delivers to the State the four documents referred to in section 1203(b)(1) of this title (5) employees means all permanent personnel employed by the Alaska Railroad on the date of transfer, including the officers of the Alaska Railroad, unless otherwise indicated in this chapter; (6) exclusive-use easement means an easement which affords to the easement holder the following: (A) the exclusive right to use, possess, and enjoy the surface estate of the land subject to this easement for transportation, communication, and transmission purposes and for support functions associated with such purposes; (B) the right to use so much of the subsurface estate of the lands subject to this easement as is necessary for the transportation, communication, and transmission purposes and associated support functions for which the surface of such lands is used; (C) subjacent and lateral support of the lands subject to the easement; and (D) the right (in the easement holders discretion) to fence all or part of the lands subject to this easement and to affix track, fixtures, and structures to such lands and to exclude other persons from all or part of such lands; (7) Native Corporation has the same meaning as such term has under section 102(6) of the Alaska National Interest Lands Conservation Act ( 16 U.S.C. 3102(6) (8) officers of the Alaska Railroad means the employees occupying the following positions at the Alaska Railroad as of the day before the date of transfer: General Manager; Assistant General Manager; Assistant to the General Manager; Chief of Administration; and Chief Counsel; (9) public lands has the same meaning as such term has under section 3(e) of the Alaska Native Claims Settlement Act ( 43 U.S.C. 1602(e) (10) rail properties of the Alaska Railroad means all right, title, and interest of the United States to lands, buildings, facilities, machinery, equipment, supplies, records, rolling stock, trade names, accounts receivable, goodwill, and other real and personal property, both tangible and intangible, in which there is an interest reserved, withdrawn, appropriated, owned, administered or otherwise held or validly claimed for the Alaska Railroad by the United States or any agency or instrumentality thereof as of January 14, 1983 (A) the unexercised reservation to the United States for future rights-of-way required in all patents for land taken up, entered, or located in Alaska, as provided by the Act of March 12, 1914 43 U.S.C. 975 (B) the right of the United States to exercise the power of eminent domain; (C) any moneys in the Alaska Railroad Revolving Fund which the Secretary demonstrates, in consultation with the State, are unobligated funds appropriated from general tax revenues or are needed to satisfy obligations incurred by the United States in connection with the operation of the Alaska Railroad which would have been paid from such Fund but for this chapter and which are not assumed by the State pursuant to this chapter; (D) any personal property which the Secretary demonstrates, in consultation with the State, prior to the date of transfer under section 1203 of this title (E) any lands or interest therein (except as specified in this chapter) within the boundaries of the Denali National Park and Preserve; (11) right-of-way means, except as used in section 1208 of this title (A) an area extending not less than one hundred feet on both sides of the center line of any main line or branch line of the Alaska Railroad; or (B) an area extending on both sides of the center line of any main line or branch line of the Alaska Railroad appropriated or retained by or for the Alaska Railroad that, as a result of military jurisdiction over, or non-Federal ownership of, lands abutting the main line or branch line, is of a width less than that described in subparagraph (A) of this paragraph; (12) Secretary means the Secretary of Transportation; (13) State means the State of Alaska or the State-owned railroad, as the context requires; (14) State-owned railroad means the authority, agency, corporation or other entity which the State of Alaska designates or contracts with to own, operate or manage the rail properties of the Alaska Railroad or, as the context requires, the railroad owned, operated, or managed by such authority, agency, corporation, or other entity; and (15) Village Corporation has the same meaning as such term has under section 3(j) of the Alaska Native Claims Settlement Act ( 43 U.S.C. 1602(j) ( Pub. L. 97468, title VI,  603 Jan. 14, 1983 96 Stat. 2556  Editorial Notes  References in Text Act of March 12, 1914 43 U.S.C. 975 act Mar. 12, 1914, ch. 37 38 Stat. 305 section 353a of Title 16 section 615(a)(1) of Pub. L. 97468 Jan. 5, 1985 section 1203 of this title Section 6(i) of the Department of Transportation Act, referred to in par. (1), is section 6(i) of Pub. L. 89670 Pub. L. 97468, title VI,  615(a)(4) Jan. 14, 1983 96 Stat. 2578  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 (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 (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 (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 section 615 of this title 1 1 (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 (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 692500035165 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 (D) Any hazardous substance, petroleum or other contaminant release at or from the State-owned rail properties that began prior to January 5, 1985 42 U.S.C. 9601 1 (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 (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 2 (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 employees 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. 97468, title VI,  604 Jan. 14, 1983 96 Stat. 2559 Pub. L. 1087, div. I, title III,  345(5) Feb. 20, 2003 117 Stat. 418 Pub. L. 108447, div. H, title I,  152(3) Dec. 8, 2004 118 Stat. 3222  Editorial Notes  References in Text Act of March 12, 1914 act Mar. 12, 1914, ch. 37 38 Stat. 305 section 353a of Title 16 section 615(a)(1) of Pub. L. 97468 Jan. 5, 1985 Section 615 of this title section 615 of title VI of Pub. L. 97468 Jan. 14, 1983 96 Stat. 2577 Pub. L. 97468 section 1203 of this title section 1210 of this title 42 U.S.C. 9601 Pub. L. 96510 Dec. 11, 1980 94 Stat. 2767 section 9601 of Title 42 Amendments 2004Subsec. (d)(2)(D). Pub. L. 108447 2003Subsec. (b)(1). Pub. L. 1087 section 1209 of this title Statutory Notes and Related Subsidiaries  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 July 6, 1984 January 5, 1985 Denali National Park and Alaska Railroad Corporation Exchange Pub. L. 110229, title III,  351 May 8, 2008 122 Stat. 800  (a)  Definitions In this section: (1)  Corporation The term Corporation means the Alaska Railroad Corporation owned by the State of Alaska. (2)  Secretary The term Secretary means the Secretary of the Interior. (b)  Exchange. (1)  In general. (A)  Easement expanded The Secretary is authorized to grant to the Alaska Railroad Corporation an exclusive-use easement on land that is identified by the Secretary within Denali National Park for the purpose of providing a location to the Corporation for construction, maintenance, and on-going operation of track and associated support facilities for turning railroad trains around near Denali Park Station. (B)  Easement relinquished In exchange for the easement granted in subparagraph (A), the Secretary shall require the relinquishment of certain portions of the Corporations existing exclusive use easement within the boundary of Denali National Park. (2)  Conditions of the exchange. (A)  Equal exchange The exchange of easements under this section shall be on an approximately equal-acre basis. (B)  Total acres The easement granted under paragraph (1)(A) shall not exceed 25 acres. (C)  Interests conveyed The easement conveyed to the Alaska Railroad Corporation by the Secretary under this section shall be under the same terms as the exclusive use easement granted to the Railroad in Denali National Park in the Deed for Exclusive Use Easement and Railroad Related Improvements filed in Book 33, pages 985994 of the Nenana Recording District, Alaska, pursuant to the Alaska Railroad Transfer Act of 1982 ( 45 U.S.C. 1201 45 U.S.C. 1201 (D)  Costs The Alaska Railroad shall pay all costs associated with the exchange under this section, including the costs of compliance with the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 (E)  Land to be part of wilderness The land underlying any easement relinquished to the United States under this section that is adjacent to designated wilderness is hereby designated as wilderness and added to the Denali Wilderness, the boundaries of which are modified accordingly, and shall be managed in accordance with applicable provisions of the Wilderness Act ( 78 Stat. 892 16 U.S.C. 1131 94 Stat. 2371 (F)  Other terms and conditions The Secretary shall require any additional terms and conditions under this section that the Secretary determines to be appropriate to protect the interests of the United States and of Denali National Park.  1204. Transition period (a) Joint report by Secretary and Governor of Alaska; contents, preparation, etc. Within 6 months after January 14, 1983 1 1 1 section 1203(b)(1)(C) of this title section 1203(c)(2) of this title (b) Inspection, etc., of rail properties and records; terms and conditions; restrictions During the period from January 14, 1983 section 1205(b)(3) of this title (1) make or incur any obligation to make any individual capital expenditure of money from the Alaska Railroad Revolving Fund in excess of $300,000; (2) (except as required by law) sell, exchange, give, or otherwise transfer any real property included in the rail properties of the Alaska Railroad; or (3) lease any rail property of the Alaska Railroad for a term in excess of five years. (c) Format for accounting practices and systems Prior to transfer of the rail properties of the Alaska Railroad to the State, the Alaska Railroads accounting practices and systems shall be capable of reporting data to the Interstate Commerce Commission in formats required of comparable rail carriers subject to the jurisdiction of the Interstate Commerce Commission. (d) Fair market value; determination, terms and conditions, etc. (1) Within nine months after January 14, 1983 (2) The determination made pursuant to paragraph (1) of this subsection shall not be construed to affect, enlarge, modify, or diminish any inventory, valuation, or classification required by the Interstate Commerce Commission pursuant to subchapter V 2 2 ( Pub. L. 97468, title VI,  605(a) Jan. 14, 1983 96 Stat. 2562  Editorial Notes  References in Text Subchapter V of chapter 107 of title 49, referred to in subsec. (d)(2), was omitted in the general amendment of subtitle IV of Title 49, Transportation, by Pub. L. 10488, title I,  102(a) Dec. 29, 1995 109 Stat. 804 Codification In subsec. (a), references to section 1202(10)(C) and (D) of this title were in the original references to section 603(8)(C) and (D) of title VI of Pub. L. 97468 Section is comprised of subsecs. (a) to (d) of section 605 of Pub. L. 97468 section 605 of Pub. L. 97468 section 712 of this title Statutory Notes and Related Subsidiaries  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  Abolition of United States Railway Association and Transfer of Functions and Securities See section 1341 of this title  1205. Lands to be transferred (a) Availability of lands among rail properties Lands among the rail properties of the Alaska Railroad shall not be (1) available for selection under section 12 of the Act of January 2, 1976 43 U.S.C. 1611 (2) available for conveyance under section 1425 of the Alaska National Interest Lands Conservation Act ( Public Law 96487 94 Stat. 2515 (3) available for conveyance to Chugach Natives, Inc., under sections 1429 or 1430 of the Alaska National Interest Lands Conservation Act ( Public Law 96487 94 Stat. 2531 43 U.S.C. 1611(c) (4) available under any law or regulation for entry, location, or for exchange by the United States, or for the initiation of a claim or selection by any party other than the State or other transferee under this chapter, except that this paragraph shall not prevent a conveyance pursuant to section 12(b)(8)(i)(D) of the Act of January 2, 1976 43 U.S.C. 1611 (b) Review and settlement of claims; administrative adjudication; management of lands; procedures applicable (1) (A) During the ten months following January 14, 1983 section 1204(a) of this title (B) At the conclusion of the review and settlement process provided in subparagraph (A) of this paragraph, the Secretary of the Interior shall prepare a report identifying lands to be conveyed in accordance with settlement agreements under this chapter or applicable law. Such settlement shall not give rise to a presumption as to whether a parcel of land subject to such agreement is or is not public land. (2) The Secretary of the Interior shall have the continuing jurisdiction and duty to adjudicate unresolved claims of valid existing rights pursuant to applicable law and this chapter. The Secretary of the Interior shall complete the final administrative adjudication required under this subsection not later than three years after January 14, 1983 January 14, 1983 January 14, 1983 (3) Pending settlement or final administrative adjudication of claims of valid existing rights filed by Village Corporations prior to the date of transfer or while subject to the license granted to the State pursuant to section 1203(b)(1)(C) of this title section 12 of the Act of January 2, 1976 Public Law 94204 89 Stat. 1150 (4) The following procedures and requirements are established to promote finality of administrative adjudication of claims of valid existing rights filed by Village Corporations, to clarify and simplify the title status of lands subject to such claims, and to avoid potential impairment of railroad operations resulting from joint or divided ownership in substantial segments of right-of-way: (A) (i) Prior to final administrative adjudication of Village Corporation claims of valid existing rights in land subject to the license granted under section 1203(b)(1)(C) of this title (ii) With respect to a claim described in clause (i) of this subparagraph that is not settled or relinquished prior to final administrative adjudication, the Congress finds that exclusive control over the right-of-way by the Alaska Railroad has been and continues to be necessary to afford sufficient protection for safe and economic operation of the railroad. Upon failure of the interested Village Corporation to relinquish so much of its claims as involve lands within the right-of-way prior to final adjudication of valid existing rights, the Secretary shall convey to the State pursuant to section 1203(b)(1)(B) or (2) of this title all right, title and interest of the United States in and to the right-of-way free and clear of such Village Corporations claim to and interest in lands within such right-of-way. (B) Where lands within the right-of-way, or any interest in such lands, have been conveyed from Federal ownership prior to January 14, 1983 section 1203(b) of this title January 14, 1983 (c) Judicial review; remedies available; standing of State (1) The final administrative adjudication pursuant to subsection (b) of this section shall be final agency action and subject to judicial review only by an action brought in the United States District Court for the District of Alaska. (2) No administrative or judicial action under this chapter shall enjoin or otherwise delay the transfer of the Alaska Railroad pursuant to this chapter, or substantially impair or impede the operations of the Alaska Railroad or the State-owned railroad. (3) Before the date of transfer, the State shall have standing to participate in any administrative determination or judicial review pursuant to this chapter. If transfer to the State does not occur pursuant to section 1203 of this title (d) Omitted (e) Liability of State for damage to land while used under license The State shall be liable to a party receiving a conveyance of land among the rail properties of the Alaska Railroad subject to the license granted pursuant to section 1203(b)(1)(C) of this title ( Pub. L. 97468, title VI,  606(a) Jan. 14, 1983 96 Stat. 25642566 Pub. L. 98620, title IV,  402(52) Nov. 8, 1984 98 Stat. 3361  Editorial Notes  References in Text Section 12 of the Act of January 2, 1976 section 12 of Pub. L. 94204 Jan. 2, 1976 89 Stat. 1150 section 1611 of Title 43 section 12 of Pub. L. 94204 section 606(d)(5) of Pub. L. 97468 Jan. 14, 1983 96 Stat. 2566 The Alaska National Interest Lands Conservation Act, referred to in subsecs. (a)(2) and (c), is Pub. L. 96497 Dec. 2, 1980 94 Stat. 2371 94 Stat. 2515 section 3101 of Title 16 Codification Section is comprised of subsecs. (a)(c) and (e) of section 606 of Pub. L. 97468 section 606 of Pub. L. 97468 section 12 of Pub. L. 94204 section 1611 of Title 43 Amendments 1984Subsec. (c)(1). Pub. L. 98620 16 U.S.C. 3168 Statutory Notes and Related Subsidiaries Effective Date of 1984 Amendment Amendment by Pub. L. 98620 Nov. 8, 1984 section 403 of Pub. L. 98620 section 1657 of Title 28  1206. Employees of Alaska Railroad (a) Coverage under Federal civil service retirement laws; election, funding, nature of benefits, etc., for employees transferring to State-owned railroad; voluntary separation incentives (1) Any employees who elect to transfer to the State-owned railroad and who on the day before the date of transfer are subject to the civil service retirement law (subchapter III of chapter 83 of title 5) shall, so long as continually employed by the State-owned railroad without a break in service, continue to be subject to such law, except that the State-owned railroad shall have the option of providing benefits in accordance with the provisions of paragraph (2) of this subsection. Employment by the State-owned railroad without a break in continuity of service shall be considered to be employment by the United States Government for purposes of subchapter III of chapter 83 of title 5. The State-owned railroad shall be the employing agency for purposes of section 8334(a) of title 5 section 8331(3) of title 5 section 8334(a) of title 5 (2) At any time during the two-year period commencing on the date of transfer, the State-owned railroad shall have the option of providing to transferred employees retirement benefits, reflecting prior Federal service, in or substantially equivalent to benefits under the retirement program maintained by the State for State employees. If the State decides to provide benefits under this paragraph, the State shall provide such benefits to all transferred employees, except those employees who will meet the age and service requirements for retirement under section 8336(a), (b), (c) or (f) of title 5 within five years after the date of transfer and who elect to remain participants in the Federal retirement program. (3) If the State provides benefits under paragraph (2) of this subsection (A) the provisions of paragraph (1) of this subsection regarding payments into the Civil Service Retirement and Disability Fund for those employees who are transferred to the State program shall have no further force and effect (other than for employees who will meet the age and service requirements for retirement under section 8336(a), (b), (c) or (f) of title 5 within five years after the date of transfer and who elect to remain participants in the Federal retirement program); and (B) all of the accrued employee and employer contributions and accrued interest on such contributions made by and on behalf of the transferred employees during their prior Federal service (other than amounts for employees who will meet the age and service requirements for retirement under section 8336(a), (b), (c) or (f) of title 5 within five years after the date of transfer and who elect to remain participants in the Federal retirement program) shall be withdrawn from the Federal Civil Service Retirement and Disability Fund and shall be paid into the retirement fund utilized by the State-owned railroad for the transferred employees, in accordance with the provisions of paragraph (2) of this subsection. Upon such payment, credit for prior Federal service under the Federal civil service retirement system shall be forever barred, notwithstanding the provisions of section 8334 of title 5 (4) (A) The State-owned railroad shall be included in the definition of agency for purposes of section 3(a), (b), (c), and (e) of the Federal Workforce Restructuring Act of 1994 and may elect to participate in the voluntary separation incentive program established under such Act. Any employee of the State-owned railroad who meets the qualifications as described under the first sentence of paragraph (1) shall be deemed an employee under such Act. (B) An employee who has received a voluntary separation incentive payment under this paragraph and accepts employment with the State-owned railroad within 5 years after the date of separation on which payment of the incentive is based shall be required to repay the entire amount of the incentive payment unless the head of the State-owned railroad determines that the individual involved possesses unique abilities and is the only qualified applicant available for the position. (b) Coverage for employees not transferring to State-owned railroad Employees of the Alaska Railroad who do not transfer to the State-owned railroad shall be entitled to all of the rights and benefits available to them under Federal law for discontinued employees. (c) Rights and benefits of transferred employees whose employment with State-owned railroad is terminated Transferred employees whose employment with the State-owned railroad is terminated during the two-year period commencing on the date of transfer shall be entitled to all of the rights and benefits of discontinued employees that such employees would have had under Federal law if their termination had occurred immediately before the date of the transfer, except that financial compensation paid to officers of the Alaska Railroad shall be limited to that compensation provided pursuant to section 1203(d)(3)(E) of this title (d) Lump-sum payment for unused annual leave for employees transferring to State-owned railroad Any employee who transfers to the State-owned railroad under this chapter shall not be entitled to lump-sum payment for unused annual leave under section 5551 of title 5 (e) Continued coverage for certain employees and annuitants in Federal health benefits plans and life insurance plans (1) Any person described under the provisions of paragraph (2) may elect life insurance coverage under chapter 87 of title 5 and enroll in a health benefits plan under chapter 89 of title 5 in accordance with the provisions of this subsection. (2) The provisions of paragraph (1) shall apply to any person who (A) on March 30, 1994 (B) has 20 years or more of service (in the civil service as a Federal employee or as an employee of the State-owned railroad, combined) on the date of retirement from the State-owned railroad; and (C) (i) was covered under a life insurance policy pursuant to chapter 87 of title 5 on January 4, 1985 (ii) was enrolled in a health benefits plan pursuant to chapter 89 of title 5 on January 4, 1985 (3) For purposes of this section, any person described under the provisions of paragraph (2) shall be deemed to have been covered under a life insurance policy under chapter 87 of title 5 and to have been enrolled in a health benefits plan under chapter 89 of title 5 during the period beginning on January 5, 1985 (4) The provisions of paragraph (1) shall not apply to any person described under paragraph (2) until the date such person retires from the State-owned railroad. ( Pub. L. 97468, title VI,  607 Jan. 14, 1983 96 Stat. 2571 Pub. L. 100238, title I,  136(a) Jan. 8, 1988 101 Stat. 1766 Pub. L. 103226,  10 Mar. 30, 1994 108 Stat. 122  Editorial Notes  References in Text The Federal Workforce Restructuring Act of 1994, referred to in subsec. (a)(4)(A), is Pub. L. 103226 Mar. 30, 1994 108 Stat. 111 section 5597 of Title 5 section 2101 of Title 5 Amendments 1994Subsec. (a)(4). Pub. L. 103226,  10(a) Subsec. (e). Pub. L. 103226,  10(b) 1988Subsec. (e). Pub. L. 100238 Statutory Notes and Related Subsidiaries Administrative Provision Pub. L. 100238, title I,  136(b) Jan. 8, 1988 101 Stat. 1767 Within 180 days after the date of enactment of this section [ Jan. 8, 1988 45 U.S.C. 1206(e)(2)(A) 45 U.S.C. 1206(e)(1)  1207. State operation (a) Laws, authorities, etc., applicable to State-owned railroad with status as rail carrier engaged in interstate and foreign commerce (1) After the date of transfer to the State pursuant to section 1203 of this title 1 1 45 U.S.C. 231 26 U.S.C. 3201 45 U.S.C. 151 April 22, 1908 45 U.S.C. 51 45 U.S.C. 351 (2) The transfer to the State authorized by section 1203 of this title 2 2 (3) All memoranda which sanction noncompliance with Federal railroad safety regulations contained in 49 CFR Parts 209236, and which are in effect on the date of transfer, shall continue in effect according to their terms as waivers of compliance (as that term is used in section 20103(d) of title 49 (4) The operation of trains by the State-owned railroad shall not be subject to the requirement of any State or local law which specifies the minimum number of crew members which must be employed in connection with the operation of such trains. (5) Revenues generated by the State-owned railroad, including any amount appropriated or otherwise made available to the State-owned railroad, shall be retained and managed by the State-owned railroad for railroad and related purposes. (6) (A) After the date of transfer, continued operation of the Alaska Railroad by a public corporation, authority or other agency of the State shall be deemed to be an exercise of an essential governmental function, and revenue derived from such operation shall be deemed to accrue to the State for the purposes of section 115(a)(1) of title 26 2 2 (B) Nothing in this chapter shall be deemed or construed to affect customary tax treatment of private investment in the equipment or other assets that are used or owned by the State-owned railroad. (b) Procedures for issuance of certificate of public convenience and necessity; inventory, valuation, or classification of property; additional laws, authorities, etc., applicable As soon as practicable after January 14, 1983 2 42 U.S.C. 4321 42 U.S.C. 6362(b) (c) Eligibility for participation in Federal railroad assistance programs The State-owned railroad shall be eligible to participate in all Federal railroad assistance programs on a basis equal to that of other rail carriers subject to part A of subtitle IV of title 49. (d) Laws and regulations applicable to national forest and park lands; limitations on Federal actions After the date of transfer to the State pursuant to section 1203 of this title (e) Preservation and protection of rail properties The State-owned railroad may take any necessary or appropriate action, consistent with Federal railroad safety laws, to preserve and protect its rail properties in the interests of safety. ( Pub. L. 97468, title VI,  608 Jan. 14, 1983 96 Stat. 2573 Pub. L. 99514,  2 Oct. 22, 1986 100 Stat. 2095 Pub. L. 10488, title III,  326 Dec. 29, 1995 109 Stat. 951 Pub. L. 108447, div. H, title I,  152(1) Dec. 8, 2004 118 Stat. 3222  Editorial Notes  References in Text The Railroad Retirement Act of 1974, referred to in subsec. (a)(1), is act Aug. 29, 1935, ch. 812 Pub. L. 93445, title I,  101 Oct. 16, 1974 88 Stat. 1305 section 231 of this title section 231t of this title The Railroad Retirement Tax Act, referred to in subsec. (a)(1), is act Aug. 16, 1954, ch. 736 68A Stat. 431 section 3233 of Title 26 The Railway Labor Act, referred to in subsec. (a)(1), is act May 20, 1926, ch. 347 44 Stat. 577 section 151 of this title Act of April 22, 1908 45 U.S.C. 51 act Apr. 22, 1908, ch. 149 35 Stat. 65 section 51 of this title The Railroad Unemployment Insurance Act, referred to in subsec. (a)(1), is act June 25, 1938, ch. 680 52 Stat. 1094 section 367 of this title Section 10713 of title 49 Pub. L. 10488, title I,  102(a) Dec. 29, 1995 109 Stat. 804 section 10709 of Title 49 Section 103, referred to in subsec. (a)(6)(A), which related to interest on certain governmental obligations was amended generally by Pub. L. 99514, title XIII,  1301(a) Oct. 22, 1986 100 Stat. 2602 Subchapter V of chapter 107 of title 49, referred to in subsec. (b), was omitted in the general amendment of subtitle IV of Title 49, Transportation, by Pub. L. 10488, title I,  102(a) Dec. 29, 1995 109 Stat. 804 The National Environmental Policy Act of 1969, referred to in subsec. (b), is Pub. L. 91190 Jan. 1, 1970 83 Stat. 852 section 4321 of Title 42 Codification In subsec. (a)(3),  section 20103(d) of title 49 45 U.S.C. 431(c) Pub. L. 103272,  6(b) July 5, 1994 108 Stat. 1378 Amendments 2004Subsec. (a)(5). Pub. L. 108447,  152(1) Subsec. (e). Pub. L. 108447,  152(2) 1995Subsecs. (a)(1), (c). Pub. L. 10488 1986Subsec. (a)(6)(A). Pub. L. 99514 Statutory Notes and Related Subsidiaries Effective Date of 1995 Amendment Amendment by Pub. L. 10488 Jan. 1, 1996 section 2 of Pub. L. 10488 section 1301 of Title 49  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49 Alaska Railroad Pub. L. 10959, title IX,  9006 Aug. 10, 2005 119 Stat. 1925  (a)  Grants The Secretary [of Transportation] shall make grants to the Alaska Railroad for capital rehabilitation and improvements benefiting its passenger operations. (b)  Authorization of Appropriations There are authorized to be appropriated to carry out this section such sums as may be necessary. Similar provisions were contained in Pub. L. 105178, title VII,  7204 June 9, 1998 112 Stat. 477  1208. Future rights-of-way (a) Access across Federal lands; application approval After January 14, 1983 (b) Consultative requirements prior to approval of application; conformance of rights-of-way, etc. Before approving a right-of-way application described in subsection (a) of this section, the Secretary of the Interior or the Secretary of Agriculture, as appropriate, shall consult with the Secretary. Approval of an application for a right-of-way, permit, lease, or conveyance described in subsection (a) of this section shall be pursuant to applicable law. Rights-of-way, grounds, and sites granted pursuant to this section and other applicable law shall conform, to the extent possible, to the standards provided in the Act of March 12, 1914 43 U.S.C. 975 section 1202(6) of this title section 615 of this title 1 1 ( Pub. L. 97468, title VI,  609 Jan. 14, 1983 96 Stat. 2574 Pub. L. 1087, div. I, title III,  345(5) Feb. 20, 2003 117 Stat. 418  Editorial Notes  References in Text Act of March 12, 1914 43 U.S.C. 975 act Mar. 12, 1914, ch. 37 38 Stat. 305 section 353a of Title 16 section 615(a)(1) of Pub. L. 97468 Jan. 5, 1985 section 1203 of this title Section 615 of this title section 615 of title VI of Pub. L. 97468 Jan. 14, 1983 96 Stat. 2577 Pub. L. 97468 section 1203 of this title section 1210 of this title Amendments 2003Subsec. (c). Pub. L. 1087 section 1209 of this title  1209. Repealed. Pub. L. 1087, div. I, title III,  345(5) Feb. 20, 2003 117 Stat. 418   Section, Pub. L. 97468, title VI,  610 Jan. 14, 1983 96 Stat. 2575  1210. Other disposition If the Secretary has not certified that the State has satisfied the conditions under section 1203 of this title section 1204(a) of this title (1) such preference shall not diminish or modify the rights of the Cook Inlet Region, Incorporated (as that term is used in section 12 of the Act of January 2, 1976 Public Law 94204 89 Stat. 1150 section 606(d) of this title 1 1 (2) this section shall not be construed to diminish or modify the powers of consent of the Secretary or the State under section 12(b)(8) of such Act, as amended by section 606(d)(5) of this title 1 Any disposal under this section shall be subject to valid existing rights. ( Pub. L. 97468, title VI,  611 Jan. 14, 1983 96 Stat. 2576  Editorial Notes  References in Text Section 12 of the Act of January 2, 1976 section 12 of Pub. L. 94204 Jan. 2, 1976 89 Stat. 1150 section 1611 of Title 43 Section 606(d) of this title section 606(d) of title VI of Pub. L. 97468 Jan. 14, 1983 96 Stat. 2566  1211. Denali National Park and Preserve lands  On the date of transfer to the State (pursuant to section 1203 of this title section 1210 of this title section 1203(b)(1)(D) of this title section 1210 of this title section 1203(b)(1)(D) of this title ( Pub. L. 97468, title VI,  612 Jan. 14, 1983 96 Stat. 2576  1212. Applicability of other laws (a) Actions subject to other laws The provisions of chapter 5 of title 5 (popularly known as the Administrative Procedure Act, and including provisions popularly known as the Government in the Sunshine Act), chapter 10 of title 5, division A of subtitle III of title 54, section 303 of title 49 42 U.S.C. 4321 section 1208 of this title (b) Federal surplus property disposal; withdrawal or reservation of land for use of Alaska Railroad The enactment of this chapter, actions taken during the transition period as provided in section 1204 of this title October 3, 1944 1 1 March 12, 1914 43 U.S.C. 975 48 U.S.C. 21 43 U.S.C. 1601 January 2, 1976 Public Law 94204 89 Stat. 1145 Public Law 96487 94 Stat. 2371 (c) Ceiling on Government contributions for Federal employees health benefits insurance premiums Beginning on January 14, 1983 section 8906(b)(2) of title 5 (d) Acreage entitlement of State or Native Corporation Nothing in this chapter is intended to enlarge or diminish the acreage entitlement of the State or any Native Corporation pursuant to existing law. (e) Judgments involving interests, etc., of Native Corporations With respect to interests of Native Corporations under the Alaska Native Claims Settlement Act ( 43 U.S.C. 1601 16 U.S.C. 3101 ( Pub. L. 97468, title VI,  613 Jan. 14, 1983 96 Stat. 2577 Pub. L. 113287,  5(m)(2) Dec. 19, 2014 128 Stat. 3271 Pub. L. 117286,  4(a)(289) Dec. 27, 2022 136 Stat. 4337  Editorial Notes  References in Text The Administrative Procedure Act, referred to in subsec. (a), is act June 11, 1946, ch. 324 60 Stat. 237 Pub. L. 89554 Sept. 6, 1966 80 Stat. 378 The Government in the Sunshine Act, referred to in subsec. (a), is Pub. L. 94409 Sept. 13, 1976 90 Stat. 1241 section 552b of Title 5 section 10 of Pub. L. 92463 section 410 of Title 39 section 552b of Title 5 section 552b of Title 5 The National Environmental Policy Act of 1969, referred to in subsec. (a), is Pub. L. 91190 Jan. 1, 1970 83 Stat. 852 section 4321 of Title 42 Act of October 3, 1944 act Oct. 3, 1944, ch. 479 58 Stat. 765 July 1, 1949 act June 30, 1949, ch. 288, title VI,  602(a)(1) 63 Stat. 399 Sept. 5, 1950, ch. 849,  6(a) 64 Stat. 583 section 545 of Title 40 Pub. L. 103272 July 5, 1994 108 Stat. 12781280 act June 7, 1939, ch. 190,  6(e) act July 23, 1946, ch. 590 60 Stat. 599 act June 25, 1948, ch. 645,  21 62 Stat. 862 Sept. 1, 1948 section 3287 of Title 18 Pub. L. 87256,  111(a)(1) Sept. 21, 1961 75 Stat. 538 Act of March 12, 1914 act Mar. 12, 1914, ch. 37 38 Stat. 305 section 353a of Title 16 section 615(a)(1) of Pub. L. 97468 Jan. 5, 1985 section 1203 of this title The Alaska Statehood Act, referred to in subsec. (b), is Pub. L. 85508 July 7, 1958 72 Stat. 339 section 21 of Title 48 The Alaska Native Claims Settlement Act, referred to in subsecs. (b) and (e), is Pub. L. 92203 Dec. 18, 1971 85 Stat. 688 section 1601 of Title 43 Act of January 2, 1976 Public Law 94204 89 Stat. 1145 43 U.S.C. 1601 The Alaska National Interest Lands Conservation Act, referred to in subsecs. (b) and (e), is Pub. L. 96487 Dec. 2, 1980 94 Stat. 2371 section 3101 of Title 16 Codification In subsec. (a),  section 303 of title 49 49 U.S.C. 1653(f) Pub. L. 97449,  6(b) Jan. 12, 1983 96 Stat. 2443 In subsec. (b), sections 541 to 555 of title 40 substituted for the Federal Property and Administrative Services Act of 1949 ( 40 U.S.C. 484 Pub. L. 107217,  5(c) Aug. 21, 2002 116 Stat. 1303 Amendments 2022Subsec. (a). Pub. L. 117286 2014Subsec. (a). Pub. L. 113287 16 U.S.C. 470  1213. Conflict with other laws  The provisions of this chapter shall govern if there is any conflict between this chapter and any other law. ( Pub. L. 97468, title VI,  614 Jan. 14, 1983 96 Stat. 2577  1214. Separability  If any provision of this chapter or the application thereof to any person or circumstance is held invalid, the remainder of this chapter and the application of such provision to other persons or circumstances shall not be affected thereby. ( Pub. L. 97468, title VI,  616 Jan. 14, 1983 96 Stat. 2578 CHAPTER 22 CONRAIL PRIVATIZATION    SUBCHAPTER IGENERAL PROVISIONS  Sec.  1301. Findings.  1302. Purposes.  1303. Definitions.  SUBCHAPTER IICONRAIL  Part ASale of Conrail  1311. Preparation for public offering.  1312. Public offering.  1313. Fees.  Part BOther Matters Relating to Sale  1321. Rail service obligations.  1322. Ownership limitations.  1323. Board of Directors.  1324. Certain enforcement relief.  Part CMiscellaneous Provisions  1341. Abolition of United States Railway Association.  1342. Exemption from liability.  1343. Charter amendment.  1344. Status of Conrail after sale.  1345. Effect on contracts.  1346. Resolution of certain issues.  1347. Tax treatment of Conrail public sale. SUBCHAPTER I GENERAL PROVISIONS  1301. Findings The Congress finds that (1) the bankruptcy of the Penn Central and other railroads in the Northeast and Midwest resulted in a transportation emergency which required the intervention of the Federal Government; (2) the United States Government created the Consolidated Rail Corporation, which provides essential rail service to the Northeast and Midwest; (3) the future of rail service in the Northeast and Midwest is essential and must be protected through rail service obligations, consistent with the transfer of the Corporation to the private sector; (4) the Northeast Rail Service Act of 1981 has achieved its purpose in allowing the Corporation to become financially self-sustaining; (5) the Federal Government has invested over $7,000,000,000 in providing rail service to the Northeast and Midwest; (6) the Government, as a result of its ownership and investment of taxpayer dollars in the Corporation, controls substantial assets, including cash of approximately $1,000,000,000; (7) the Corporations viability and sound performance allow it to be sold to the American public for a substantial sum through a public offering; (8) a public offering of the Corporations stock will preserve competitive rail service in the region, provide a reasonable return to the Government, and protect employment; (9) the Corporations employees contributed significantly to the turnaround in the Corporations financial performance and they should share in the Corporations success through a settlement of their claims for reimbursement for wages below industry standard, and a share in the common equity of the Corporation; (10) the requirements of section 761(e) 1 1 (11) the Secretary of Transportation has discharged the responsibilities of the Department of Transportation under the Northeast Rail Service Act of 1981 with respect to the sale of the Corporation as a single entity. ( Pub. L. 99509, title IV,  4002 Oct. 21, 1986 100 Stat. 1893  Editorial Notes  References in Text The Northeast Rail Service Act of 1981, referred to in pars. (4) and (11), is subtitle E of title XI of Pub. L. 9735 Aug. 13, 1981 95 Stat. 643 section 1101 of this title Section 761 of this title Pub. L. 99509, title IV,  4033(a)(1) Oct. 21, 1986 100 Stat. 1908 This chapter, referred to in par. (10), was in the original this subtitle meaning subtitle A ( 40014052) of title IV of Pub. L. 99509 Oct. 21, 1986 100 Stat. 1892 Statutory Notes and Related Subsidiaries Short Title Section 4001(a) of subtitle A ( 40014052) of title IV of Pub. L. 99509 This subtitle [enacting this chapter, amending sections 702, 726, 727, 741, 797, 821, 825, 829, 831, 1105, 1115, and 1116 of this title and sections 10362 and 10713 of Title 49, Transportation, repealing sections 761 to 769c, 797 l section 797 of this title  1302. Purposes  The purposes of this chapter are to transfer the interest of the United States in the common stock of the Corporation to the private sector in a manner that provides for the long-term viability of the Corporation, provides for the continuation by the Corporation of its rail service in the Northeast and Midwest, provides for the protection of the public interest in a sound rail transportation system, and, to the extent not inconsistent with such purposes, secures the maximum proceeds to the United States. ( Pub. L. 99509, title IV,  4003 Oct. 21, 1986 100 Stat. 1893  1303. Definitions For the purposes of this chapter (1) the term capital expenditures means amounts expended by the Corporation and its subsidiaries for replacement or rehabilitation of, or enhancements to, the railroad plant, property, trackage, and equipment of the Corporation and its subsidiaries, as determined in accordance with generally accepted accounting principles, and in interpreting generally accepted accounting principles, no amount spent on normal repair, maintenance, and upkeep of such railroad plant, property, trackage, and equipment in the ordinary course of business shall constitute capital expenditures; (2) the term Commission means the Interstate Commerce Commission; (3) the term consolidated funded debt means the aggregate, after eliminating intercompany items, of all funded debt of the Corporation and its consolidated subsidiaries, consolidated in accordance with generally accepted accounting principles; (4) the term consolidated tangible net worth means the market value of the common equity of the Corporation as of the sale date, plus or minus the change from the sale date to the date of measurement in the excess, after making appropriate deductions for any minority interest in the net worth of subsidiaries, of (A) the assets of the Corporation and its subsidiaries (excluding intercompany items) which, in accordance with generally accepted accounting principles, are tangible assets, after deducting adequate reserves in each case where, in accordance with generally accepted accounting principles, a reserve is proper, over (B) all liabilities of the Corporation and its subsidiaries (excluding intercompany items), taking into account inventory and securities on the basis of the cost or current market value, whichever is lower, and not taking into account patents, trademarks, trade names, copyrights, licenses, goodwill, treasury stock, or any write-up in the book value of any assets; (5) the term Corporation means the Consolidated Rail Corporation; (6) the term cumulative net income means, for any period, the net income of the Corporation and its consolidated subsidiaries as determined in accordance with generally accepted accounting principles, before provision for expenses (net of income tax effect) related to (A) amounts paid by the Corporation under section 4024(e), and comparable payments made to present and former employees of the Corporation not covered by such section; and (B) the aggregate value of any shares and cash distributed by the Corporation under section 4024(f); (7) the term debt means (A) indebtedness, whether or not represented by bonds, debentures, notes, or other securities, for the repayment of money borrowed, (B) deferred indebtedness for the payment of the purchase price of property or assets purchased, (C) guarantees, endorsements, assumptions, and other contingent obligations in respect of, or to purchase or to otherwise acquire, indebtedness of others, and (D) indebtedness secured by any mortgage, pledge, or lien existing on property owned, subject to such mortgage, pledge, or lien, whether or not indebtedness secured thereby shall have been assumed; (8) the term funded debt means all debt created, assumed, or guaranteed, directly or indirectly, by the Corporation and its subsidiaries which matures by its terms, or is renewable at the option of the Corporation or any such subsidiary to a date, more than 1 year after the date of the original creation, assumption, or guarantee of such debt by the Corporation or such subsidiary; (9) the term liabilities means all items of indebtedness or liability which, in accordance with generally accepted accounting principles, would be included in determining total liabilities as shown on the liabilities side of a balance sheet as at the date as of which liabilities are to be determined; (10) the term person means an individual, corporation, partnership, association, trust, or other entity or organization, including a government or political subdivision thereof or a governmental body; (11) the term preferred stock means any class or series of preferred stock, and any class or series of common stock having liquidation and dividend rights and preferences superior to the common stock of the Corporation offered for sale under section 1312 of this title (12) the term public offering means an underwritten offering to the public of such common stock of the Corporation as the Secretary of Transportation determines to sell under section 1312 of this title (13) the term sale date means the date on which the initial public offering is closed; (14) the term subsidiary means any corporation more than 50 percent of whose outstanding voting securities are directly or indirectly owned by the Corporation; and (15) the term United States share means a share of common stock of the Corporation held by the United States Government on October 21, 1986 section 1312(d) of this title ( Pub. L. 99509, title IV,  4004 Oct. 21, 1986 100 Stat. 1894  Editorial Notes  References in Text Section 4024(e) and section 4024(f), referred to in par. (6), are section 4024(e) and (f) of Pub. L. 99509 section 797 of this title Statutory Notes and Related Subsidiaries  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49 SUBCHAPTER II CONRAIL Part A Sale of Conrail  1311. Preparation for public offering (a) Public offering managers (1) Not later than 30 days after October 21, 1986 (2) In selecting the investment banking firms to serve as co-lead managers of the public offering under paragraph (1), consideration shall be given to the firms institutional and retail distribution capabilities, financial strength, knowledge of the railroad industry, experience in large scale public offerings, research capability, and reputation. In addition, recognition shall also be given to contributions made by particular investment banking firms before October 21, 1986 (b) Payment to United States (1) Not later than 30 days after October 21, 1986 (2) On or before February 1, 1987 (c) Registration statement The Corporation shall prepare and cause to be filed with the Securities and Exchange Commission a registration statement with respect to the securities to be offered and sold in accordance with the securities laws and the rules and regulations thereunder in connection with the initial and any subsequent public offering. (d) Omitted ( Pub. L. 99509, title IV,  4011 Oct. 21, 1986 100 Stat. 1895  Editorial Notes  References in Text This part, referred to in subsec. (a), was in the original this subpart meaning subpart A ( 40114013) of part 2 of subtitle A of title IV of Pub. L. 99509 Oct. 21, 1986 100 Stat. 1895 section 726 of this title Codification Subsec. (d) of this section amended section 726 of this title  1312. Public offering (a) Structure of public offering (1) After the registration statement referred to in section 1311(c) of this title (2) The Secretary of Transportation, after such consultation, may elect to offer less than all of the United States shares for sale at the time of the initial sale. (3) Under no circumstances shall the Secretary of Transportation offer any of the United States shares for sale unless, before the sale date, the Secretary determines, after such consultation, that the estimated sum of the gross proceeds from the sale of all the United States shares will be an adequate amount. A determination by the Secretary under this paragraph shall not be reviewable. (4) In making a determination under paragraph (3), the Secretary shall have the goal of obtaining at least $2,000,000,000 in aggregate gross proceeds for the United States from the public offering and any payments made under section 1311(b) of this title (b) Subsequent sales If the Secretary of Transportation elects to offer for sale less than all the United States shares, the Secretary shall sell the remaining United States shares in subsequent public offerings. (c) Consent of Corporation not required Any public offering under this section may be made without the consent of the Corporation. (d) Authority to require stock splits (1) The Secretary of Transportation, in consultation with the co-lead managers and the Chairman of the Board of Directors of the Corporation, may, in connection with the initial public offering described in subsection (a), before the filing of the registration statement referred to in section 1311(c) of this title (2) The Corporation shall take such action as may be necessary to comply with the Secretarys requirements under this subsection. (e) Cancellation of other securities held by United States (1) In consideration for amounts transferred to the United States under section 1311(b) of this title (2) For purposes of regulation by the Commission and State public utility regulation, the actions authorized by this subsection, the public offering, and the value of the consideration received therefor shall not change the value of the Corporations assets net of depreciation and shall not be used to alter the calculation of the Corporations stock or asset values, rate base, expenses, costs, returns, profits, or revenues, or otherwise affect or be the basis for a change in the regulation of any railroad service, rate, or practice provided or established by the Corporation, or any change in the financial reporting practice of the Corporation. (f) Minority investment banking firms The Secretary of Transportation shall ensure that minority owned or controlled investment banking firms shall have an opportunity to participate to a significant degree in any public offering under this subchapter. (g) Investment banking firm requirements (1) The level of any investment banking firms participation in the public offering shall be consistent with that firms financial capabilities. (2) No investment banking firm which was not in existence on September 1, 1986 (h) Government Accountability Office authority to conduct audits The Government Accountability Office may make such audits as may be deemed appropriate by the Comptroller General of the United States of all accounts, books, records, memoranda, correspondence, and other documents and transactions of the Corporation and the co-lead managers associated with the public offering. The co-lead managers shall agree, in writing, to allow the Government Accountability Office to make such audits. The Government Accountability Office shall report the results of all such audits to the Congress. ( Pub. L. 99509, title IV,  4012 Oct. 21, 1986 100 Stat. 1896 Pub. L. 108271,  8(b) July 7, 2004 118 Stat. 814  Editorial Notes  References in Text This subchapter, referred to in subsec. (f), was in the original this part meaning part 2 ( 40114038) of subtitle A of title IV of Pub. L. 99509 Oct. 21, 1986 100 Stat. 1895 section 10362 of Title 49 l section 797 of this title Amendments 2004Subsec. (h). Pub. L. 108271 Statutory Notes and Related Subsidiaries  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  1313. Fees (a) Investment banking firm fees The Secretary of Transportation, in consultation with the Secretary of the Treasury, shall agree to pay to investment banking firms and other persons participating with such firms in the public offering the absolute minimum amount in fees necessary to carry out the public offering. (b) Costs of public offering All costs of the public offering payable by the Secretary of Transportation shall be paid from the proceeds of the public offering. ( Pub. L. 99509, title IV,  4013 Oct. 21, 1986 100 Stat. 1897 Part B Other Matters Relating to Sale  1321. Rail service obligations (a) Obligations of Corporation During a period of 5 years beginning on October 21, 1986 (1) The Corporation shall spend in each fiscal year the greater of (A) an amount equal to the Corporations depreciation for financial reporting purposes for such year or (B) $500,000,000, in capital expenditures. With respect to any fiscal year, the Corporations Board of Directors may reduce the required capital expenditures for such year to an amount which the Board determines is justified by prudent business and engineering practices, except that the Corporations capital expenditures shall not be less than $350,000,000 for its first fiscal year beginning after the sale date, a total of $700,000,000 for its first two fiscal years beginning after the sale date, a total of $1,050,000,000 for its first three fiscal years beginning after the sale date, a total of $1,400,000,000 for its first four fiscal years beginning after the sale date, and a total of $1,750,000,000 for its first five fiscal years beginning after the sale date. (2) Repealed. Pub. L. 101213,  2(b)(3) Dec. 11, 1989 103 Stat. 1843 (3) The Corporation shall continue its affirmative action program and its minority vendor program, substantially as such programs were being conducted by the Corporation as of February 8, 1985 (4) The Corporation shall not permit to occur any transaction or series of transactions (other than in the ordinary course of business of the Corporation and its subsidiaries) whereby all or any substantial part of the railroad assets and business of the Corporation and its subsidiaries taken as a whole are sold, leased, transferred, or otherwise disposed of to any corporation or entity other than to a wholly owned subsidiary of the Corporation. (5) The Corporation shall offer any line for which an abandonment certificate is issued by the Commission to a purchaser who agrees to provide interconnecting rail service. Such offer shall last for the 120-day period following the date of issuance of the abandonment certificate and the price for such abandoned line shall be equal to 75 percent of net liquidation value as determined by the Commission, pursuant to regulations that had been issued under section 748 of this title (6) The Corporation and its subsidiaries shall maintain, preserve, protect, and keep their respective properties in good repair, working order, and condition, and shall not permit deferral of normal and prudent maintenance necessary to provide and maintain rail service. (b) Compliance certificates (1) Within 90 days after the close of each of its fiscal years, or at the time its financial statements have been audited, whichever occurs later, the Corporation shall deliver to the Secretary of Transportation a certificate executed by an executive officer of the Corporation. Such certificate shall certify that, as of such date, the Corporation is in compliance with all requirements (other than the requirement regarding a common stock dividend or a preferred stock dividend) set forth in this section. Such certificate shall include audited consolidated financial statements. (2) Within 5 days after the declaration of any common stock dividend or preferred stock dividend, the Corporation shall deliver to the Secretary of Transportation a certificate executed by an executive officer of the Corporation. Such certificate shall certify that, after giving effect to any such dividend, the Corporation shall be in compliance with any requirement regarding a common stock dividend or a preferred stock dividend set forth in this section. Such certificate shall include (A) quarterly financial statements; and (B) a report of the Corporations total capital expenditures, for the period with respect to which the dividend has been declared, and the fiscal year to date, and shall compare such capital expenditures to the budgeted capital expenditures and to the capital expenditures during the comparable periods of the previous fiscal year. ( Pub. L. 99509, title IV,  4021 Oct. 21, 1986 100 Stat. 1898 Pub. L. 101213,  2(b)(3) Dec. 11, 1989 103 Stat. 1843  Editorial Notes Amendments 1989Subsec. (a)(2). Pub. L. 101213 Statutory Notes and Related Subsidiaries  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  1322. Ownership limitations (a) General (1) During a period of 3 years beginning on the sale date, no person, directly or indirectly, may acquire or hold securities representing more than 10 percent of the total votes of all outstanding voting securities of the Corporation. (2) This subsection shall not apply (A) to the employee stock ownership plan (or successor plans) of the Corporation, (B) to the Secretary of Transportation, (C) to a railroad as described under subsection (b), (D) to underwriting syndicates holding shares for resale, or (E) in the case of shares beneficially held for others, to commercial banks, broker-dealers, clearing corporations, or other nominees. (b) Railroads (1) During a period of 1 year beginning on the sale date, no railroad may purchase or hold, directly or indirectly, more than 10 percent of any class of stock of the Corporation. During such period, no railroad may file an application with the Commission for a merger or consolidation with the Corporation or the acquisition of control of the Corporation under section 11344 1 1 (2) During a period of 3 years beginning on the sale date, any railroad which purchases or holds any stock of the Corporation shall vote such stock in the same proportion as all other common stock of the Corporation is voted. After the expiration of 1 year after the sale date, the preceding sentence shall not apply to any railroad with respect to which the Commission has approved an application for a merger or consolidation with the Corporation or the acquisition of control of the Corporation under section 11344 1 (3) As used in this subsection, the term railroad means a class I railroad as determined by the Commission under the definition in effect on October 21, 1986 ( Pub. L. 99509, title IV,  4022 Oct. 21, 1986 100 Stat. 1900  Editorial Notes  References in Text Section 11344 of title 49 Pub. L. 10488, title I,  102(a) Dec. 29, 1995 109 Stat. 804 Statutory Notes and Related Subsidiaries  Abolition of Interstate Commerce Commission and Transfer of Functions Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 10488 Jan. 1, 1996 section 1302 of Title 49 section 101 of Pub. L. 10488 section 1301 of Title 49 section 205 of Pub. L. 10488 section 1301 of Title 49  1323. Board of Directors The Board of Directors of the Corporation shall be comprised as follows: (1) Except as provided in paragraph (3), with respect to the period ending June 30, 1987 October 21, 1986 (2) (A) Except as provided in paragraph (3), with respect to the period beginning July 1, 1987 (i) 3 directors appointed by the Secretary of Transportation; (ii) the Chief Executive Officer and the Chief Operating Officer of the Corporation; and (iii) 8 directors appointed from among persons knowledgeable in business affairs by the special court trustees named under subparagraph (C), in consultation with the Secretary of Transportation and the Chairman of the Board of Directors of the Corporation, and recognizing the need for and importance of (I) continuity in the direction of the Corporations business and affairs; (II) preserving the value of the investment of the United States in the Corporation; (III) preserving essential rail service provided by the Corporation; and (IV) providing for the sale of the United States shares. (B) The Secretary of Transportation and the special court trustees may appoint directors under subparagraph (A) from among existing directors of the Corporation. (C) (i) If more than 50 percent of the interest of the United States in the Corporation has not been sold before June 1, 1987 section 719 of this title (ii) No person shall be eligible to be appointed as a special court trustee under this subparagraph who, at any time during the 30 months immediately preceding such appointment, was an officer, employee, or director of the United States Railway Association, the Corporation, or the Department of Transportation. (3) (A) After the sale date, one director shall be elected by the public shareholders of the Corporation for each increment of 12.5 percent of the interest of the United States in the Corporation that has been sold through public offering. (B) With respect to the period ending June 30, 1987 (i) the first director elected under this paragraph shall replace the member of the board who became a director most recently from among (I) directors appointed by the United States Railway Association, or elected under paragraph (1) to replace such a director, and (II) directors appointed by the Secretary of Transportation, or elected under paragraph (1) to replace such a director; (ii) the second director elected under this paragraph shall replace the member of the Board who became a director most recently from among directors described in clause (i)(I) or (II), whichever group the first director replaced under this subparagraph was not a member of; and (iii) subsequent directors elected under this paragraph shall replace members alternately from the groups described in clause (i)(I) and (II). (C) With respect to the period beginning July 1, 1987 (D) With respect to the period beginning on the first date more than 50 percent of the interest of the United States in the Corporation has been sold through public offering and ending when 100 percent of such interest has been sold (i) all remaining members of the board referred to in paragraph (2)(A)(iii), and (ii) with respect to the period ending June 30, 1987 shall be replaced by directors elected by the public shareholders of the Corporation. (E) After 100 percent of the interest of the United States in the Corporation has been sold, any remaining directors appointed by the Secretary of Transportation, the United States Railway Association, or the special court trustees referred to under paragraph (2)(A)(iii), shall be replaced by directors elected by the public shareholders of the Corporation. (F) Nothing in this paragraph shall be construed to prohibit any director referred to in this section from being elected as a director by the public shareholders of the Corporation. (4) (A) No director appointed or elected under this section shall be a special court trustee or an employee of the United States, except as elected by the public shareholders of the Corporation. (B) No director appointed or elected under this section shall be an employee of the Corporation, except as provided in paragraph (2)(A)(ii) or as elected by the public shareholders of the Corporation. ( Pub. L. 99509, title IV,  4023 Oct. 21, 1986 100 Stat. 1901  Statutory Notes and Related Subsidiaries  Abolition of Special Court, Regional Rail Reorganization Act of 1973, and Transfer of Functions Special court abolished and all jurisdiction and functions transferred to United States District Court for District of Columbia, see section 719(b)(2) of this title  1324. Certain enforcement relief (a) Enforcement actions The Secretary of Transportation, with respect to any provision of section 1321 or 1322 of this title, and any person who suffers direct and substantial economic injury as a result of an alleged violation by the Corporation, with respect to the provisions of section 1321(a)(1) and (2) 1 1 section 1322 of this title (b) Special court Any action brought under this subchapter shall be brought before the special court established under section 719 of this title section 1321 of this title ( Pub. L. 99509, title IV,  4025 Oct. 21, 1986 100 Stat. 1905  Editorial Notes  References in Text Section 1321(a)(2) of this title Pub. L. 101213,  2(b)(3) Dec. 11, 1989 103 Stat. 1843 Statutory Notes and Related Subsidiaries  Abolition of Special Court, Regional Rail Reorganization Act of 1973, and Transfer of Functions Special court abolished and all jurisdiction and functions transferred to United States District Court for District of Columbia, see section 719(b)(2) of this title Part C Miscellaneous Provisions  1341. Abolition of United States Railway Association (a) Abolition and termination (1) Effective April 1, 1987 (2) On January 1, 1987 45 U.S.C. 701 (3) The sole function of the United States Railway Association after January 1, 1987 (b) Transfer of securities and responsibilities (1) Any securities of the Corporation held by the United States Railway Association shall, upon 1 1 October 21, 1986 (2) If, on the date the United States Railway Association is abolished under subsection (a), such association shall not have completed the termination of its affairs and the liquidation of its assets, the duty of completing such winding up of its affairs and liquidation shall be transferred to the Secretary of Transportation, who for such purposes shall succeed to all remaining powers, duties, rights, and obligations of such association. (c) Financing agreement (1) On January 1, 1987 May 10, 1979 (2) Effective as of the sale date, those provisions of the Financing Agreement referred to in paragraph (1) shall terminate. ( Pub. L. 99509, title IV,  4031 Oct. 21, 1986 100 Stat. 1906  Editorial Notes  References in Text The Regional Rail Reorganization Act of 1973, referred to in subsec. (a)(2), is Pub. L. 93236 Jan. 2, 1974 87 Stat. 985 section 701 of this title  1342. Exemption from liability (a) In general No person referred to in section 726(f)(8)(C)(i), (ii), or (iii) of this title shall be liable, for money damages or otherwise, to any party if, with respect to the subject matter of the action, suit, or proceeding, such person was fulfilling a duty, in connection with any action taken under this subchapter, which such person in good faith reasonably believed to be required by law or vested in such person. (b) Exception This section shall not apply to claims arising out of the Securities Act of 1933 [ 15 U.S.C. 77a 15 U.S.C. 78a section 1312 of this title ( Pub. L. 99509, title IV,  4034 Oct. 21, 1986 100 Stat. 1909  Editorial Notes  References in Text The Securities Act of 1933, referred to in subsec. (b), is act May 27, 1933, ch. 38, title I 48 Stat. 74 section 77a of Title 15 The Securities Exchange Act of 1934, referred to in subsec. (b), is act June 6, 1934, ch. 404 48 Stat. 881 section 78a of Title 15  1343. Charter amendment  Within 60 days after October 21, 1986 It shall be a fundamental purpose of the Corporation to maintain continued rail service in its service area.. ( Pub. L. 99509, title IV,  4035 Oct. 21, 1986 100 Stat. 1909  1344. Status of Conrail after sale  The Corporation shall be a rail carrier as defined in section 10102 of title 49 ( Pub. L. 99509, title IV,  4036 Oct. 21, 1986 100 Stat. 1909 Pub. L. 10488, title III,  332 Dec. 29, 1995 109 Stat. 953  Editorial Notes Amendments 1995 Pub. L. 10488 Statutory Notes and Related Subsidiaries Effective Date of 1995 Amendment Amendment by Pub. L. 10488 Jan. 1, 1996 section 2 of Pub. L. 10488 section 1301 of Title 49  1345. Effect on contracts  Nothing in this subchapter shall affect any obligation of the Corporation to carry out its transportation contracts and equipment leases, equipment trusts, and conditional sales agreements, in accordance with their terms. ( Pub. L. 99509, title IV,  4037 Oct. 21, 1986 100 Stat. 1909  1346. Resolution of certain issues (a) Employee issues Section 4024 completely and finally (1) extinguishes all employee rights, and any obligation of the United States, under section 761(e) 1 1 October 21, 1986 (2) resolves any and all claims against the Corporation or any other person arising under the Definitive Agreement referred to in section 4024(d)(1) or any other agreement containing similar terms and conditions; (3) resolves all claims to pay entitlements arising out of the pay increase deferrals by present and former employees of the Corporation under the Agreement of May 5, 1981 (4) resolves all issues raised by notices served by representatives of such employees under section 156 of this title (5) resolves all claims against the Railway Labor Executives Association or the Corporation by any adviser, consultant, or other person who has provided services to such association in connection with any matter referred to in this subchapter. (b) Corporation actions The Corporation shall not be considered to be in breach, default, or violation of any agreement to which it is a party, notwithstanding any provision of such agreement, because of any provision of this subchapter or any action the Corporation is required to take under this subchapter. (c) Right to sue withdrawn The United States hereby withdraws any stated or implied consent for the United States, or any agent or officer of the United States, to be sued by any person for any legal, equitable, or other relief with respect to any claim arising out of, or resulting from, acts or omissions under this subchapter, except actions brought to require the Secretary of Transportation to perform duties or acts required under part A of this subchapter. ( Pub. L. 99509, title IV,  4038 Oct. 21, 1986 100 Stat. 1909  Editorial Notes  References in Text Section 4024, referred to in subsec. (a), is section 4024 of Pub. L. 99509 section 797 of this title section 797 of this title section 797 of this title section 797 of this title Section 761 of this title Pub. L. 99509, title IV,  4033(a)(1) Oct. 21, 1986 100 Stat. 1908 Part A of this subchapter, referred to in subsec. (c), was in the original subpart A meaning subpart A ( 40114013) of part 2 of subtitle A of title IV of Pub. L. 99509 Oct. 21, 1986 100 Stat. 1895 section 726 of this title  1347. Tax treatment of Conrail public sale (a) Treatment as new corporation (1) In general For periods after the public sale, for purposes of title 26, Conrail shall be treated as a new corporation which purchased all of its assets as of the beginning of the day after the date of the public sale for an amount equal to the deemed purchase price. (2) Allocation among assets The deemed purchase price shall be allocated among the assets of Conrail in accordance with the temporary regulations prescribed under section 338 of title 26 October 21, 1986 (3) Deemed purchase price For purposes of this subsection, the deemed purchase price is an amount equal to the gross amount received pursuant to the public sale, multiplied by a fraction (A) the numerator of which is 100 percent, and (B) the denominator of which is the percentage (by value) of the stock of Conrail sold in the public sale. The amount determined under the preceding sentence shall be adjusted under regulations prescribed by the Secretary for liabilities of Conrail and other relevant items. (b) No income from cancellation of debt or preferred stock No amount shall be included in the gross income of any person by reason of any cancellation of any obligation (or preferred stock) of Conrail in connection with the public sale. (c) Disallowance of certain deductions No deduction shall be allowed to Conrail for any amount which is paid after the date of the public sale to employees of Conrail for services performed on or before the date of the public sale. (d) Waiver of certain employee stock ownership plan provisions For purposes of determining whether the employee stock ownership plans of Conrail meet the qualifications of sections 401 and 501 of title 26 (1) the limits of section 415 of such title (relating to limitations on benefits and contributions under qualified plans) shall not apply with respect to interests in stock transferred pursuant to this Act or a law heretofore enacted, and (2) the 2-year waiting period for withdrawals shall not apply to withdrawals of amounts (or shares) in participants accounts in connection with the public sale. (e) Definitions For purposes of this section (1) Conrail The term Conrail means the Consolidated Rail Corporation. Such term includes any corporation which was a subsidiary of Conrail immediately before the public sale. (2) Public sale The term public sale means the sale of stock in Conrail pursuant to a public offering under the Conrail Privatization Act [ 45 U.S.C. 1301 (3) Secretary The term Secretary means the Secretary of the Treasury or his delegate. ( Pub. L. 99509, title VIII,  8021 Oct. 21, 1986 100 Stat. 1954 Pub. L. 99514,  2 Oct. 22, 1986 100 Stat. 2095  Editorial Notes  References in Text This Act, referred to in subsec. (d)(1), is Pub. L. 99509 Oct. 21, 1986 100 Stat. 1874 The Conrail Privatization Act, referred to in subsec. (e)(2), is subtitle A ( 40014052) of title IV of Pub. L. 99509 Oct. 21, 1986 100 Stat. 1892 section 1301 of this title Codification This section was enacted as part of the Omnibus Budget Reconciliation Act of 1986, and not as part of subtitle A of title IV of that Act, known as the Conrail Privatization Act, which comprises this chapter. Amendments 1986Subsecs. (a)(1), (2), (d). Pub. L. 99514