An Act to amend the Regional Reorganization Act of 1973 to increase the financial assistance available under section 213 and section 215, and for other purposes.
PL 94-5 (S.281), enacted 02/28/1975

PUBLIC LAW 94-5—FEB. 28, 1975 
89 STAT. 7 
Public Law 94-5 
94th Congress 
An Act 
To auiead the Regional Rail Reorganization Act of 1973 to increase the financial 
assistance available under section 213 and section 215, and for other puri)Oses. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America 
in Congress assembled^ That this Act may 
be cited as the "Regional Rail Reorganization Act Amendments of 
1975". 
SEC. 2. (a) Section 202(b) of the Regional Rail Reorganization Act 
of 1973 (45 U.S.C. 712 (b)) is amended— 
(1) in paragraph (2) by inserting "and express" immediately 
after "rail" each time it appears; 
(2) by striking out the period at the end of paragraph (7) and 
inserting in lieu thereof "; and"; and 
(3) by adding at the end thereof the following new paragraph: 
"(8) study the feasibility of coordinating rail and express 
service in the region.", 
(b) Section 206(a)(1) of the Regional Rail Reorganization Act 
of 1973 (45 U.S.C. 716(a) (1)) is amended by inserting "and express" 
immediately after "rail". 
SEC. 3. Section 205(d) (2) of the Regional Rail Reorganization Act 
of 1973 (45 U.S.C. 715(d) (2)) is amended to read as follows: 
"(2) employ and utilize the services of attorneys and such 
other personnel as may be required in order to properly protect 
the interests of those communities and users of rail service which, 
for whatever reason, such as their size or location, might not 
otherwise be adequately represented in the course of the reorgani-
zation process as provided by this Act;". 
SEC. 4. (a) Section 207(b) of the Regional Rail Reorganization 
Act of 1973 (45 U.S.C. 717(b)) is amended by inserting " ( 1 ) " immedi-
ately before the first sentence thereof, and by adding at the end thereof 
the following new paragraph: 
"(2) Whenever it has been finally determined pursuant to the pro-
cedures of paragraph (1) of this subsection, that the reorganization 
of a railroad subject to reorganization under section 77 of the Bank-
ruptcy Act (11 U.S.C. 205) shall not be proceeded with pui-suant to this 
Act, the court having jurisdiction over such railroad may, upon a peti-
tion which is filed within 10 days after the date of enactment of this 
subsection by the trustees of such railroad, reconsider such order. Such 
reorganization court shall (i) affirm its previous order or (ii) issue 
an order that the reorganization of such railroad be proceeded with 
pursuant to this Act unless it finds that this Act does not provide a 
process which would be fair and equitable. The provisions of para-
graph (1) of this subsection are applicable in such reconsideration, 
except that (A) such reorganization couit shall make its decision 
within 30 days after such petition is filed, and (B) any decision by the 
special court on appeal from such a decision shall be rendered within 
30 days after such reorganization court decision is made. There shall 
be no review of the decision of the special court. The Association shall 
take any steps it finds necessary, consistent with time limitations and 
other provisions of this Act, to effectuate the consequences of such a 
revised order, including the preparation and submission of any neces-
sary or appropriate supplements to the preliminary system plan.". 
(b) Section 207(a)(2) of the Regional Rail Reorganization Act 
of 1973 (45 U.S.C. 717(a)) is amended by adding at the end thereof 
the following new sentence: "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 
Feb. 28. 1975 
[S. 2811 
Regional Rail 
Reorganization 
Act Amendments 
of 1975. 
45 use 701 none. 
Rail Services 
Planning Office;, 
employment of 
attorneys and 
other personnel!. 
Preliminary 
system plan. 
Petition for 
reconsideration. 
Hearings. 
89 STAT. 8 
PUBLIC LAW 94-5—FEB. 28, 1975 
Loans. 
Emergency 
assistance. 
Infra. 
Appropriation 
authorization. 
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.". 
SEC. 5. (a) Section 211(a) of the Regional Rail Reorganization Act 
of 1973 (45 IT.S.C. 721(a)) is amended by striking out "for purposes 
of assisting in the implementation of the final system plan;" and 
inserting in lieu thereof "for purposes of achieving the goals of this 
Act;". 
(b) Section 211(e) (1) of the Regional Rail Reorganization Act of 
1973 (45 U.S.C. 721(e) (1)) is amended by striking out "carry out the 
final system plan" and inserting in lieu thereof "achieve the goals of 
this Act". 
(c) Section 211(f) of the Regional Rail Reorganization Act of 
1973 (45 U.S.C. 721(f)) is amended by striking out "goals of the 
final system plan" and inserting in lieu thereof "goals of this Act". 
SEC. 6. (a) Section 213(a) of the Regional Rail Reorganization Act 
of 1973 (45 U.S.C. 723(a)) is amended by adding the following at the 
end thereof: "Where the Secretary and the trustees agree that funds 
provided pursuant to this section are to be used (together with funds 
provided pursuant to section 215 of this Act, if any) to perform pro-
gram maintenance on designated rail properties until the date rail 
properties are conveyed under this Act or to improve such designated 
properties, such agreement shall contain the conditions set forth in 
section 215(b) of this Act.". 
(b) Section 213(b) of the Regional Rail Reorganization Act of 
1973 (45 U.S.C. 723(b)) is amended— 
(1) by striking out "$85,000,000" and inserting in lieu thereof 
"$282,000,000"; and 
(2) by adding at the end thereof the following new sentence: 
"Of amounts authorized to be appropriated under this subsection, 
$50,000,000 shall be available solely to pay to the trustees of rail-
roads in reorganization such sums as may be necessary to provide 
such railroads wath amounts equal to revenues attributable to tariff 
increases proposed by such railroads and suspended by the Inter-
state Commerce Commission during the calendar year 1975, if the 
Secretary determines that such payments are necessary to carry 
out this section.". 
SEC. 7. Section 215 of the Regional Rail Reorganization Act of 1973 
(45 LLS.C. 725) is amended to read as follows: 
u 
INTERIM AGREEMENTS 
"SEC. 215. (a) PURPOSES.—Prior to the date upon which rail prop-
erties are conveyed to the Corporation under this Act, the Secretary, 
with the approval of the Association, is authorized to enter into agree-
ments with the trustees of the railroads in reorganization in the region 
(or railroads 
leased, operated, 
or 
controlled 
by 
railroads 
in 
reorganization)— 
PUBLIC LAW 94-5—FEB. 28, 1975 
89 STAT. 9 
"(1) to perform the program maintenance on designated rail 
properties of such railroads until the date rail properties are con-
veyed under this Act; 
" (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 Act, 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 obliga-
tions therefor. 
"(b) CONDITIONS.—Agreements pursuant to subsection (a) of this 
section shall contain such reasonable terms and conditions as the Secre-
tary 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 206(f) or 303(c) of this Act, 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 210(b) of this title, 
the Association shall issue obligations under section 210(a) of this 
title in an amount sufficient to finance such agreements and shall 
require the Corporation to assume any such obligations. The aggregate 
amount of obligations issued under this section and outstanding at 
any one time shall not exceed $300,000,000. The Association, with the 
approval of the Secretary, shall designate in the final system plan that 
portion of such obligations issued or to be issued which shall be refi-
nanced and the terms thereof, and that portion from which the Cor-
poration shall be released of its obligations. 
"(d) CONVEYANCE.—The Secretary may convey to the Corporation, 
with or without receipt of consideration, any property or interests 
acquired by, transferred to, or otherwise held by the Secretary pur-
suant to this section or section 213 of this Act.". 
SEC. 8. Section 303(c) (1) of the Regional Rail Reorganization 
Act of 1973 (45 U.S.C. 745(c) (1)) is amended by striking out the last 
word of paragraph (A), by striking out the period at the end of para-
graph (B) and insertmg "; and" in lieu thereof, and by inserting 
after paragraph (B) the following new paragraph: 
"(C) what portion of the proceeds received by a railroad in 
reorganization from an entity other than the Corporation for 
the sale, lease, or transfer of property subject to an agreement 
under section 213 or section 215 (a) (1) or (2) of this Act reflects 
value attributable to the maintenance or improvement provided 
pursuant to the agreement.". 
SEC. 9. Title VI of the Regional Rail Reorganization Act of 1973 
is amended by adding at the end thereof the following new section: 
45 u s e 716. 
Infra. 
45 u s e 720. 
Limitation. 
Ante, p. 8. 
Proceeds for 
maintenance or 
improvement. 
45 use 743. 
Ante, p. 8. 
89 STAT. 10 
PUBLIC LAW 94-5—FEB. 28, 1975 
< ( i TAX PAYMENTS TO STATES 
45 use 794. 
"SEC. 605. (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. 
Penalty. 
"(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.". 
Approved February 28, 1975. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 94-7 accompanying H.R. 2051 (Comm. on Interstate and Foreign 
Commerce). 
SENATE REPORT No. 94-5 (Comm. on Commerce). 
CONGRESSIONAL RECORD, VoL 121 (1975): 
Jan. 28, 29, considered and passed Senate. 
Feb. 19, considered and passed House, amended, in lieu of H.R. 2051. 
Feb. 21, 22, 24-26, Senate concurred in House amendment.