An act to provide for the orderly restructuring of the Milwaukee Railroad, and for the protection of the employees of such railroad.
PL 96-101 (S.1905), enacted 11/04/1979

93 STAT. 736 
PUBLIC LAW 96-101—NOV. 4, 1979 
Public Law 96-101 
96th Congress 
An Act 
Nov. 4, 1979 
To provide for the orderly restructuring of the Milwaukee Railroad, and for the 
[S. 1905] 
protection of the employees of such railroad. 
Be it enacted by the Senate and House of Representatives of the 
Milwaukee 
United States of 
America in Congress assembled. That this Act may be 
Re^t^°^ turin 
^^^®^ ^^ *^® "Milwaukee Raihoad Restructuring Act". 
Act 
45 use 901 note. 
CONGRESSIONAL FINDINGS 
45 use 901. 
SEC. 2. (a) Congress hereby finds that— 
(1) the severe operating losses and the deteriorating plant and 
equipment of the Milwaukee Railroad threaten to cause cessa-
tion 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 Washing-
ton, 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 contribu-
tion 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 Mil-
waukee 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 
Act 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. 
DEFINITIONS 
45 use 902. 
SEC. 3. As used in this Act— 
(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; 
PUBLIC LAW 96-101—NOV. 4, 1979 
93 STAT. 737 
(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; but 
(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, Mil-
waukee, St. Paul and Pacific Railroad Company; and 
(6) the term "restructured Milwaukee Railroad"— 
(A) means the entity operating the lines of the Milwaukee 
Railroad after the 6-month period beginning on (i) the 
occurrence of an event described in section 22(b) of this Act, 
or (ii) April 1,1980, whichever first occurs; but 
(B) does not include (i) any line of the Milwaukee Railroad 
which is the subject of a proposed sale, transfer, or abandon-
ment pending on the expiration of the 6-month period 
described in subparagraph (A) of this paragraph, or (ii) any 
entity formed pursuant to section 6 of this Act, 
SALES AND TRANSFERS 
SEC. 4. (a) The Milwaukee Railroad may negotiate and enter into 45 use 903. 
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. Such sale agreements may in no event become final 
and effective until the occurrence of an event described in section 
22(b) of this Act, or April 1, 1980, whichever first occurs. In taking 
action under this subsection, the Milwaukee Railroad may consult 
with the Secretary of Transportation. 
(b)(1) The Secretary of Transportation, under the authority of 
section 5(a)-(e) of the Department of Transportation Act, may develop 49 use 1654. 
plans, participate in negotiations, and recommend to the trustee 
proposals for the sale or transfer of any rail properties of the 
Milwaukee Railroad which are used in rail operations as of October 
15, 1979. In taking action under this paragraph, the Secretary shall 
give preference to financially responsible persons, including govern-
mental entities, negotiating for the purchase of any lines with the 
intent of providing common carrier service. 
(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 occur-
rence of an event described in section 22(b) of this Act, or April 1, 
1980, whichever first occurs. 
COURT APPROVED ABANDONMENTS AND SALES 
• 
'' 
SEC. 5. (a)(1) Upon the occurrence of an event described in section 45 use 904. 
2203) of this Act, or on April 1, 1980, whichever first occurs, the 
bankruptcy court may authorize the abandonment of lines of the 
Milwaukee Railroad pursuant to section 1170 of title 11 of the United 
States Code. Pending the expiration of the time for appeal of an 92 Stat. 2643. 
abandonment order or the determination of any such appeal, the 
bankruptcy court may authorize the termination of service on a line 
to be abandoned, and the order authorizing such termination may not 
be stayed. In authorizing any abandonment pursuant to this section, 
the court shall require the carrier to provide a fair arrangement at 
59-194 0 — 81 
49 : QL3 
93 STAT. 738 
PUBLIC LAW 96-101—NOV. 4, 1979 
least as protective of the interests of employees as that required 
92 Stat. 1439. 
under section 11347 of title 49 of the United States Code. 
(2) Prior to the date specified in paragraph (1) of this subsection, the 
bankruptcy court may hear and consider any request for the aban-
donment of lines of the Milwaukee Railroad, and may fix the time for 
the Commission's report on the request, but it may take fmal action 
authorizing such abandonment only in accordance with such para-
graph (1). 
(b)(1) Upon the occurrence of an event described in section 22(b) of 
this Act, or on April 1, 1980, whichever first occurs, the bankruptcy 
court may authorize the sale or transfer of a line of the Milwaukee 
Railroad to be used in continued rail operations, subject to the 
approval of the Commission under paragraph (2) of this subsection. In 
authorizing any such sale or transfer, the court shall provide a fair 
arrangement at least as protective of the interest of employees as 
that required under section 11347 of title 49 of the United States 
Code. 
(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 Commis-
sion 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, condition-
ing, 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 of the United States Code. 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 
92 Stat. 1402. 
of title 49 of the United States Code. In operating such service, the 
purchasing carrier shall use employees of the Milwaukee Railroad to 
the extent necessary for the operation of such service. The bank-
ruptcy court may take final action authorizing any such sale or 
transfer only in accordance with paragraph (1) of this subsection, 
(c) 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 Act, 
EMPLOYEE OR EMPLOYEE-SHIPPER OWNERSHIP PLAN 
45 use 905. 
SEC. 6. (a)(1) No later than December 1, 1979, an association 
composed of representatives of national railway labor organizations, 
employee coalitions, and shippers (or any combination of the forego-
ing) may submit to the Commission a single plan for converting all or 
a substantial part of the Milwaukee Railroad into an employee or 
employee-shipper owned company and a method for implementing 
such plan. The plan shall include a comprehensive evaluation of 
the prospects for the financial self-sustainability of the Milwaukee 
Railroad. 
(2) The Commission shall, within 30 days after the date of submis-
sion 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 
PUBLIC LAW 96-101—NOV. 4, 1979 
93 STAT. 739 
Commission with respect to the feasibiUty of the plan shall be made 
pursuant to section 554 of title 5 of the United States Code. 
(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 Milwau-
kee 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) which are or will be available to the proponent and 
which the proponent is likely to obtain. 
(b) 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 Commission's 
determination with respect to that issue shall be rebutted only by 
clear and convincing evidence. 
(c) 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) Except as provided in this section, the findings of the Commis-
sion with respect to the plan shall not be subject to review. 
(e)(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. 
EMERGENCY RAIL SERVICES ACT OF 1970 
SEC. 7. (a) Subsection (a) of section 3 of the Emergency Rail Services 
Act of 1970 (45 U.S.C. 662(a)) is amended by striking out "upon a 
finding" in the fifth sentence and all that follows in that subsection 
and inserting in lieu thereof a period. 
(b) Section 3 of the Emergency Rail Services Act of 1970 (45 U.S.C. 
662) is amended by inserting after subsection O
^
) the following new 
subsection: 
93 STAT. 740 
PUBLIC LAW 96-101—NOV. 4, 1979 
"(c) The Secretary shall not guarantee any certificate under this 
section unless such certificate is treated as an expense of administra-
tion and receives the highest lien on the railroad's property and 
92 Stat. 2549. 
priority in payment under the Bankruptcy Act, except that this 
11 use 101 et 
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.", 
(c) Section 3(e) of the Emergency Rail Services Act of 1970 (45 U.S.C. 
662(e)) is amended— 
(1) by striking out "$125,000,000" and inserting in lieu thereof 
"$200,000,000"; and 
(2) by striking out the last sentence thereof, as added by Public 
Law 96-86. 
45 use 906. 
(d) The Secretary of Transportation shall, under the authority of 
45 use 661 note, the Emergency Rail Services Act of 1970, immediately guarantee 
trustee certificates of the Milwaukee Railroad, on the basis of an 
estimate of the amount required to be provided under subsection (e) of 
this section, for purposes of allowing the Milwaukee Railroad, com-
mencing November 1,1979, to maintain its entire railroad system in 
accordance with section 22 of this Act, and as required to finance 
operations which the Milwaukee Railroad continues for the 60-day 
period beginning on the date of the occurrence of an event described 
in section 22(b) of this Act or on April 1,1980, whichever first occurs. 
Such guarantee shall be made without regard to the findings set forth 
in section 3(a) of the Emergency Rail Services Act of 1970, and the 
provisions of section 30))(3) and the last two sentences of section 3(d) 
of such Act shall not apply to such guarantee. 
45 use 906. 
(e) The Secretary shall guarantee trustee certificates of the Mil-
waukee 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. 
45 use 906. 
(f) Notwithstanding the provisions of section 3(c) of the Emergency 
Rail Services Act of 1970, certificates guaranteed under this Act shall 
be subordinated to the claims of any creditors of the Milwaukee 
Railroad as of the date of enactment of this Act. 
45 use 906. 
(g) 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 of the United States Code. 
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, in accordance with section 22 of this Act. 
RAILROAD HIRING 
45 use 907. 
SEC. 8. Each person who is an employee of the Milwaukee Railroad 
on September 30, 1979, and who is separated or furloughed from his 
employment with such railroad (other than for cause) prior to April 1, 
1981, as a result of a reduction of service by such railroad shall, unless 
found to be less qualified than other applicants, have the first right of 
hire by any other rail carrier that is subject to regulation by the 
Commission for any vacancy that is not 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 
Rail carrier. 
voluntary affirmative action plan. For purposes of this section, a rail 
PUBLIC LAW 96-101—NOV. 4, 1979 
93 STAT. 741 
carrier shall not be considered to be hiring new employees when it 
recalls any of its own furloughed employees. 
EMPLOYEE PROTECTION AGREEMENTS 
SEC. 9. (a) The Milwaukee Railroad and labor organizations repre- 45 use 908. 
senting the employees of such railroad may, not later than 20 days 
after the date of enactment of this Act, enter into an agreement 
providing protection for employees of such railroad who are adversely 
affected as a result of a reduction in service by such railroad or a 
restructuring transaction carried out by such railroad. Such 
employee protection may include, but need not be limited to, interim 
employee assistance, moving expenses, employee relocation incentive 
compensation, and separation allowances. 
(b) If the Milwaukee Railroad and the labor organizations repre-
senting the employees of such railroad are unable to enter into an 
employee protection agreement under subsection (a) of this section 
within 20 days after the date of enactment of this Act, the parties 
shall immediately submit the matter to the National Mediation 
Board. The National Mediation Board shall attempt, by mediation, to 
bring the parties to an agreement with respect to employee protec-
tion no later than 40 days after the date of enactment of this Act. 
(c)( 
1) If the National Mediation Board is unable to bring the parties 
to an agreement under subsection 0)) of this section within 40 days 
after the date of enactment of this Act, the Milwaukee Railroad and 
the labor organizations representing the employees of such railroad 
shall immediately enter into an employee protection agreement that 
is fair and equitable. 
(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) Benefits and allowances under an employee protection agree-
ment entered into under this section shall be paid by the Milwaukee 
Railroad in accordance with section 15 of tnis Act, and claims of 
employees for such benefits and allowances shall be treated as 
administrative expenses of the estate of the Milwaukee Railroad. 
SUPPLEMENTARY UNEMPLOYMENT INSURANCE 
SEC. 10. (a) Any employee of the Milwaukee Railroad— 
45 use 909. 
(1) who (A) is employed by the restructured Milwaukee Rail-
road, and (B) is separated from that employment by reason of any 
reduction in service by such railroad prior to April 1, 1984; or 
(2) who (A) is separated from his employment with the Milwau-
kee Railroad in connection with a restructuring transaction 
carried out by such railroad, and obtains employment, prior to 
April 1,1981, with another rail carrier, and (B) is separated from 
employment with such other carrier prior to April 1, 1984, 
shall be entitled to receive monthly supplementary unemployment 
insurance in accordance with the provisions of this section. 
(b) 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 
93 STAT. 742 
PUBLIC LAW 96-101—NOV. 4, 1979 
carrier. Each such employee shall be entitled to receive such insur-
ance 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 employee's total months of service with the 
Milwaukee Railroad; and 
(2) no compensation shall be provided under this section after 
April 1, 1984, unless it is necessary in order to provide an 
employee with at least 8 months of such insurance, but after such 
date, such employee only shall receive such 8-month minimum if 
such employee is not employed continuously after such date. 
(c) 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 employee's average monthly normal 
compensation from employment with the Milwaukee Railroad 
during the period beginning June 1,1977, and ending on the date 
of enactment of this Act, less 
(2) the sum of (A) the amount of any benefits payable to such 
employee for such month under the Railroad Unemployment 
Insurance Act or under any State unemployment insurance 
program, and (B) the amount of any earnings of such employee 
for such month from employment or self-employment of any 
kind. 
(d) 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) Any supplementary unemployment insurance received by any 
employee pursuant to this section shall be considered to be compensa-
tion solely— 
(1) for purposes of the Railroad Retirement Act of 1974 (45 
U.S.C.231etseq.);and 
(2) for purposes of determining the compensation received by 
such employee in any base year under the Railroad Unemploy-
45 use 367. 
ment Insurance Act. 
(f)(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 appli-
cable 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) For purposes of this section, any employee of the Milwaukee 
Railroad who is furloughed shall be considered to be separated from 
his employment. 
(h) The first sentence of section 7(b)(7) of the Railroad Retirement 
Act of 1974 (45 U.S.C. 231f(b)(7) is amended— 
(1) by striking out "The" and inserting "Notwithstanding any 
other provision of law, the" in lieu thereof; and 
(2) by inserting "and the Milwaukee Railroad Restructuring 
Act" immediately before the period at the end thereof. 
EMPLOYMENT OF MILWAUKEE RAILROAD EMPLOYEES 
45 use 910. 
SEC. U . (a) The Board shall prepare and maintain— 
PUBLIC LAW 96-101—NOV. 4, 1979 
93 STAT. 743 
(1) a list of individuals separated from employment with the 
Milwaukee Railroad who indicate a desire to appear on a list to 
be available to rail carriers; and 
(2) a list of employment, by class and craft, available with rail 
carriers, 
based upon information submitted to the Board by the Milwaukee 
Railroad and other rail carriers. Upon the request of any rail carrier, 
the Board shall make available to such carrier a copy of the list 
described in paragraph (1) of this subsection. 
(b) The Board shall maintain the lists required by subsection (a) of 
this section through December 31,1984. 
NEW CAREER TRAINING ASSISTANCE 
SEC. 12. (a) Any employee who elects to receive a separation 45USC911. 
allowance from the Milwaukee Railroad under an employee protec-
tion agreement entered into under section 9 of this Act shall be 
entitled to receive from the Board expenses for training in qualified 
institutions for new career opportunities. 
(b) 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) 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) No assistance may be provided under this section after April 1, 
1984. 
(e) 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' Administra-
tion under chapter 36 of title 38 of the United States Code. 
'Expenses.' 
"Qualified 
institution." 
38 u s e 1770 et 
seq. 
ELECTION 
SEC. 13. Any employee who receives any assistance under section 10 
or section 12 of this Act or under an employee protection agreement 
entered into under section 9 of this Act shall be deemed to waive any 
employee protection benefits otherwise available to such employee 
under the Bankruptcy Act, title 11 of the United States Code, subtitle 
IV of title 49 of the United States Code, or any applicable contract or 
agreement. 
AUTHORIZATION OF APPROPRIATIONS 
45 u s e 912. 
92 Stat. 2549. 
llUSeiOlefseg. 
92 Stat. 1337. 
49 u s e 10101 et 
seq. 
SEC. 14. (a) There is authorized to be appropriated to provide 45 use 913. 
supplementary unemployment insurance under section 10 of this Act 
not to exceed $5,000,000. 
(b) There is authorized to be appropriated for new career training 
assistance under section 12 of this Act not to exceed $1,500,000. 
(c) There is authorized to be appropriated to the Board to carry out 
its administrative expenses under this Act not to exceed $750,000. 
(d) Amounts appropriated under this section are authorized to 
remain available until expended. 
OBLIGATION GUARANTEES 
SEC. 15. (a) The Secretary of Transportation, under the authority of 45 use 914. 
section 511 of the Railroad Revitalization and Regulatory Reform Act 
93 STAT. 744 
PUBLIC LAW 96-101—NOV. 4, 1979 
of 1976 (45 U.S.C. 831), shall guarantee obligations of the Milwaukee 
Railroad for purposes of providing employee protection in accordance 
with the terms of the employee protection agreement entered into 
under section 9 of this Act. Guarantees under this section shall be 
entered into without regard to the requirements of subsection (g) of 
section 511 of the Railroad Revitalization and Regulatory Reform Act 
45 use 831. 
of 1976. 
(b) Any obligation guaranteed pursuant to this section shall be 
treated as an administrative expense of the estate of the Milwaukee 
Railroad. 
(c) 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) The total liability of the Milwaukee Railroad in connection with 
benefits and allowances provided under an employee protection 
agreement entered into under section 9 of this Act shall not exceed 
$75,000,000. 
(e) Except in connection with obligations guaranteed under this 
section, the United States shall incur no liability in connection with 
any employee protection agreement entered into under section 9 of 
this Act. 
(f) Section 516 of the Railroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 836) shall not apply to any obligation 
guaranteed under this section. 
TRANSACTION ASSISTANCE 
SEC. 16. Section 505 of the Railroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 825) is amended by adding at the end 
thereof the following new subsections: 
"(f) REHABILITATION FOR COMMON CARRIER SERVICE.—(1) Notwith-
standing subsections (a) through (e) of this section (other than 
subsection (d)(3)), the Secretary shall immediately purchase redeem-
able preference shares or trustee certificates convertible to redeem-
able preference shares under this section as necessary to facilitate 
the rehabilitation and improvement of Milwaukee Railroad property 
that has been sold or transferred to another person or retained by the 
restructured Milwaukee Railroad and that will be used for common 
carrier rail service. 
"(2) The Secretary may not take any action under this subsection— 
"(A) prior to (i) the occurrence of an event described in section 
Post, p. 746. 
22(b) of the Milwaukee Railroad Restructuring Act, or (ii) April 1, 
1980, whichever first occurs; or 
"(B) after April 1,1981. 
"(3) Funds received from purchases by the Secretary pursuant to 
this subsection may not be used for the rehabilitation and improve-
ment of any line of railroad which carried less than an average of 
3,000,000 gross tons of freight per mile per year during the previous 
three-year period. 
"(g) LIMITATION.—Not more than 50 percent of the funds made 
available at any time for the purchase of redeemable preference 
shares and trustee certificates under this section may be used for the 
rehabilitation and improvement of the facilities of any single railroad 
undergoing restructuring.". 
COURT APPROVED ABANDONMENTS AND SALES IN PENDING CASES 
45 use 915. 
SEC. 17. (a) Notwithstanding any other provision of law, in any case 
11 use 205. 
pending under section 77 of the Bankruptcy Act on the date of 
PUBLIC LAW 96-101—NOV. 4, 1979 
93 STAT. 745 
enactment of this Act, the court may authorize the abandonment of 
lines of railroad pursuant to section 1170 of title 11 of the United 
States Code. Pending the expiration of the time for appeal of an 92 stat. 2643. 
abandonment order or the determination of any such appeal, the 
court may authorize the termination of service on a line to be 
abandoned, and the order authorizing such termination may not be 
stayed. In authorizing any abandonment pursuant to this section, the 
court shall require the carrier to provide a fair arrangement at least 
as protective of the interests of employees as that required under 
section 11347 of title 49 of the United States Code. 
92 Stat. 1439. 
ODXD Notwithstanding any other provision of law, in any case 
pending under section 77 of the Bankruptcy Act on the date of ^ use 205. 
enactment of this Act, the court may authorize the sale or transfer of 
a line of railroad to be used in continued rail operations, subject to the 
approval of the Commission under paragraph (2) of this subsection, if 
the application with respect to such sale or transfer is filed with the 
Commission on or after November 1, 1979. In authorizing any such 
sale or transfer, the court shall provide a fair arrangement at least as 
protective of the interests of 
employees as that required under section 
11347 of title 49, United States Code. 
(2) The court described in paragraph (1) may not authorize a sale or 
transfer pursuant to such paragraph unless an appropriate applica-
tion 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 Commis-
sion 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, condition-
ing, 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 of the United States Code. 
(3) 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) 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, in connection with a case pending under section 77 of the 
Bankruptcy Act on the date of enactment of this Act— 
(1) is subject to review by the court only under sections 
706(2XA), 706(2)(B), 706(2)(C), and 706(2)(D) of title 5 of the United 
States Code; and 
(2) may not be stayed by the Commission. 
(d) The authority of the bankruptcy court to authorize abandon-
ments, sales, and transfers of lines of the Milwaukee Railroad shall 
be governed by the provisions of section 5 of this Act, rather than the 
provisions of this section. 
(e) 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 Act. 
93 STAT. 746 
PUBLIC LAW 96-101—NOV. 4, 1979 
DIRECTED SERVICE 
45 use 916. 
SEC. 18. Until April 1, 1981, the provisions of this Act shall be in 
lieu of any directed service on any line of the Milwaukee Railroad 
92 Stat. 1423. 
under section 11125 of title 49 of the United States Ck)de. 
APPUCABIUTY OF NEPA 
45 use 917. 
SEC 19. The provisions of the National Environmental Policy Act 
note 
^^^^^ ^°^ apply to transactions carried out pursuant to this Act. 
AUTHORITY OF THE RAILROAD RETIREMENT BOARD 
45 use 918. 
SEC 20. (a) The Board may prescribe such regulations as may be 
necessary to carry out its duties under this Act. 
(b) In carrying out its duties under this Act, the Board may exercise 
such of the powers, duties, and remedies provided in subsections (a), 
45 use 362. 
(b), and (d) of section 12 of the Railroad Unemployment Insurance Act 
as are not inconsistent with the provisions of this Act. 
PUBUCATIONS AND REPORTS 
45 use 919. 
SEC 21. (a) Within 30 days after the date of enactment of this Act, 
the Board shall publish, and make available for distribution by the 
Milwaukee Railroad to all its employees, a document which describes 
in detail the rights of such employees under sections 8, 9,10,11, and 
12 of this Act. 
Report to 
(b) During the 2-year period beginning on the date of enactment of 
eongress. 
this Act, the Board shall submit a report to the Congress every 6 
months describing its activities under this Act. 
CONTINUATION OF SERVICE 
45 use 920. 
SEC 22. (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, (2) shall 
continue no less than the regular level of service provided by it as of 
that date, and (3) shall not embargo traffic (other than when necessi-
tated by acts of God or safety requirements) or abandon or discon-
tinue service over any part of its railroad system. 
(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 6(a) of this Act; 
(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 pre-
scribed under section 6(c) of this Act. 
AMENDMENT TO THE REGIONAL RAIL REORGANIZATION ACT OF 1973 
SEC 23. Section 211(d) of the Regional Rail Reorganization Act of 
1973 (45 U.S.C. 721(d)) is amended by striking out paragraph (2) and 
the sentence following that paragraph and inserting in lieu thereof 
the following: 
"(2) increase the principal amount of such loan to such rail-
road, in an amount not to exceed $4,000,000, only if the Associ-
PUBLIC LAW 96-101—NOV. 4, 1979 
93 STAT. 747 
ation 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 railroad will adopt an employee stock ownership plan 
which will acquire qualifying employer securities with a fair 
market value of $250,000. 
The Association may not take any action pursuant to the preceding 
sentence of this subsection after December 31,1980.". 
REHABILITATION AND IMPROVEMENT FINANCING 
SEC. 24. (a) Section 505G))(2) of the Railroad Revitalization and 
Regulatory Reform Act of 1976 (45 U.S.C. 825(b)(2)) is amended— 
(1) by inserting immediately after the comma at the end of 
clause (A) thereof the following: "except that if the Secretary 
determines, pursuant to clause (C) of this paragraph, that signifi-
cant railroad restructuring will result from the project, the 
Secretary shall not consider the availability of funds from other 
sources but instead shall consider whether such restructuring 
benefits would be likely to be achieved if assistance were not 
provided,"; and 
(2) by amending clause (C) thereof to read as follows: "(C) the 
public benefits, including any significant railroad restructuring, 
to be realized from the project to be financed in relation to the 
public costs of such financing and whether the proposed project 
will return public benefits sufficient to justify such public costs.". 
(b) Section 501 of the Railroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 821) is amended— 
(1) by striking out "and" at the end of paragraph (6); 
(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) 'restructuring' means any activity (including a consolida-
tion, coordination, merger, or abandonment) which (A) involves 
rehabilitation or improvement of a facility or the transfer of a 
facility, (B) improves the long-term profitability of any railroad, 
and (C) results in the enhancement of the national rail freight 
system through the achievement of higher average traffic densi-
ties or improved asset utilization.". 
OFFICE OF RAIL PUBLIC COUNSEL 
SEC. 25. The Office of Rail Public Counsel may appear and be heard 45 USC 921. 
in the case in the bankruptcy court involving the reorganization of 
the Milwaukee Railroad, for purposes of representing affected ship-
pers, localities, and municipalities with respect to the proposed 
abandonment of any line of the Milwaukee Railroad. 
EMPLOYEE STOCK O W N E R S H I P P L A N FOR SURVIVING PORTION OF 
MILWAUKEE RAILROAD 
SEC. 26. If an event described in section 22(b) of this Act occurs, 45 use 922. 
resulting in the survival of less than the entire Milwaukee Railroad 
system, then any relief provided for such surviving Milwaukee 
Railroad system under the Emergency Rail Services Act of 1970 or 45 USC 661 note. 
any other Federal legislation shall be conditioned upon good faith 
efforts by the trustee or the Milwaukee Railroad, or both, to establish 
93 STAT. 748 
PUBLIC LAW 96-101—NOV. 4, 1979 
an employee stock ownership plan which shall embrace the purchase 
or acquisition of qualifying employer securities of the Milwaukee 
Railroad equal in value to 25 per centum of the amount of such relief 
provided. 
Approved November 4, 1979. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 96-225 accompanying H.J. Res. 341 (Comm. on Interstate and 
Foreign Commerce) and No. 96-583 (Comm. of Conference). 
CONGRESSIONAL RECORD, Vol. 125 (1979): 
Oct. 30, considered and passed Senate. 
Oct. 30, H.J. Res. 341 considered and passed House; passage vacated and S. 1905, 
amended, passed in lieu. 
Nov. 2, House and Senate agreed to conference report.