45 U.S.C. § 717 — Adoption of final system plan

Page 166 TITLE 45—RAILROADS § 717 Subsec. (d)(4). Pub. L. 94–210, § 607(o), inserted provi- sion relating to modification of offer until the date of acceptance, and substituted ‘‘95’’ for ‘‘60’’ and ‘‘7 days after February 5, 1976,’’ for ‘‘30 days after the effective date of the final system plan’’. Subsec. (d)(5). Pub. L. 94–555, § 202(a), inserted ‘‘or for purposes of providing rail marine freight floating serv- ice’’ after ‘‘intercity rail passenger service’’. Pub. L. 94–436, § 2, inserted provision relieving the Corporation, its Board of Directors, and its individual directors from liability to any party by reason of the fact that the Corporation transferred property pursu- ant to section 743 of this title. Pub. L. 94–210, § 807, restructured provisions and sub- stituted provisions relating to valuation of transferred properties transferred by the Corporation and adjust- ment of such valuation, for provisions relating to valu- ation of transferred properties sold by the Corporation. Subsec. (d)(6). Pub. L. 94–210, § 607(p), added par. (6). Subsec. (d)(7). Pub. L. 94–555, § 202(c), inserted ‘‘by the Corporation pursuant to the final system plan’’ after ‘‘with respect to the acquisition’’. Pub. L. 94–436, § 4, added par. (7). Subsec. (j). Pub. L. 94–210, § 607(q), added subsec. (j). 1975—Subsec. (a)(1). Pub. L. 94–5 inserted ‘‘and ex- press’’ after ‘‘rail’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1978 AMENDMENT Pub. L. 95–611, § 4(b), Nov. 8, 1978, 92 Stat. 3090, pro- vided that: ‘‘The amendment made by this Act [prob- ably meaning this section 4, which amended section 716 of this title] shall be effective on January 2, 1974.’’ EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94–555 effective Oct. 1, 1976, see section 303 of Pub. L. 94–555, set out as a note under section 702 of this title. ABOLITION OF INTERSTATE COMMERCE COMMISSION AND TRANSFER OF FUNCTIONS Interstate Commerce Commission abolished and func- tions of Commission transferred, except as otherwise provided in Pub. L. 104–88, to Surface Transportation Board effective Jan. 1, 1996, by section 1302 of Title 49, Transportation, and section 101 of Pub. L. 104–88, set out as a note under section 1301 of Title 49. References to Interstate Commerce Commission deemed to refer to Surface Transportation Board, a member or employee of the Board, or Secretary of Transportation, as appro- priate, see section 205 of Pub. L. 104–88, set out as a note under 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. 94–210, see section 619 of Pub. L. 94–210, set out as a note under section 791 of this title. § 717. Adoption of final system plan (a) Preliminary system plan (1) Within 420 days after January 2, 1974, the Association shall adopt and release a prelimi- nary system plan prepared by it on the basis of reports and other information submitted to it by the Secretary, the Office, and interested persons in accordance with this chapter and on the basis of its own investigations, consultations, re- search, evaluation, and analysis pursuant to this chapter. Copies of the preliminary system plan shall be transmitted by the Association to the Secretary, the Office, the Governor and public utility commission of each State in the region, the Congress, each court having jurisdiction over a railroad in reorganization in the region, the special court, and interested persons, and a copy shall be published in the Federal Register. The Association shall invite and afford inter- ested persons an opportunity to submit com- ments on the preliminary system plan to the As- sociation within 60 days after the date of its re- lease. (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 au- thorized to hold public hearings on any supple- ment 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 cri- tique and evaluation of such supplement, not later than 30 days after the release of such sup- plement. (b) Approval (1) Within 120 days after January 2, 1974, each United States district court or other court hav- ing jurisdiction over a railroad in reorganization shall decide whether the railroad is reorganiz- able on an income basis within a reasonable time under section 77 of the Bankruptcy Act and that the public interest would be better served by continuing the present reorganization pro- ceedings than by a reorganization under this chapter. Within 60 days after the submission of the report by the Office, under section 715(d)(1) of this title, on the Secretary’s report on rail services in the region, each United States dis- trict court or other court having jurisdiction over a railroad in reorganization shall decide whether or not such railroad shall be reorga- nized by means of transferring some of its rail properties to the Corporation pursuant to the provisions of this chapter. Because of the strong public interest in the continuance of rail trans- portation in the region pursuant to a system plan devised under the provisions of this chap- ter, each such court shall order that the reorga- nization be proceeded with pursuant to this chapter unless it (1) has found that the railroad is reorganizable on an income basis within a rea- sonable time under section 77 of the Bankruptcy Act and that the public interest would be better served by such a reorganization than by a reor- ganization under this chapter, or (2) finds that this chapter does not provide a process which would be fair and equitable to the estate of the railroad in reorganization in which case it shall dismiss the reorganization proceeding. If a court does not enter an order or make a finding as re- quired by this subsection, the reorganization shall be proceeded with pursuant to this chap- ter. An appeal from an order made under this section may be made only to the special court. Appeal to the special court shall be taken with- in 10 days following entry of an order pursuant Page 167 TITLE 45—RAILROADS § 718 to this subsection, and the special court shall complete its review and render its decision with- in 80 days after such appeal is taken. There shall be no review of the decision of the special court. (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 peti- tion which is filed within 10 days after February 28, 1975, by the trustees of such railroad, recon- sider 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 chapter unless it finds that this chapter does not provide a process which would be fair and equitable. The provisions of paragraph (1) of this subsection are applicable in such reconsideration, except that (A) such reorganization court shall make its de- cision within 30 days after such petition is filed, and (B) any decision by the special court on ap- peal from such a decision shall be rendered with- in 30 days after such reorganization court deci- sion is made. There shall be no review of the de- cision of the special court. The Association shall take any steps it finds necessary, consistent with time limitations and other provisions of this chapter, to effectuate the consequences of such a revised order, including the preparation and submission of any necessary or appropriate supplements to the preliminary system plan. (c) Adoption Within 540 days after January 2, 1974, the exec- utive committee of the Association shall pre- pare and submit a final system plan for the ap- proval of the Board of Directors of the Associa- tion. A copy of such submission shall be simul- taneously presented to the Commission. The submission shall reflect evaluation of all re- sponses and summaries of responses received, testimony at any public hearings, and the re- sults of additional study and review. Within 30 days thereafter, the Board of Directors of the Association shall by a majority vote of all its members approve a final system plan which meets all of the requirements of section 716 of this title. (d) Review of Commission Within 30 days following the adoption of the final system plan by the Association under sub- section (c) of this section and the submission of such plan to Congress under section 718(a) of this title, the Commission shall submit to the Congress an evaluation of the final system plan delivered to both Houses of Congress. (Pub. L. 93–236, title II, § 207, Jan. 2, 1974, 87 Stat. 998; Pub. L. 93–488, § 1(a), (b), Oct. 26, 1974, 88 Stat. 1464; Pub. L. 94–5, § 4, Feb. 28, 1975, 89 Stat. 7.) Editorial Notes REFERENCES IN TEXT Section 77 of the Bankruptcy Act, referred to in sub- sec. (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, as amended) was repealed ef- fective Oct. 1, 1979, by Pub. L. 95–598, §§ 401(a), 402(a), Nov. 6, 1978, 92 Stat. 2682, section 101 of which enacted revised Title 11. For current provisions relating to rail- road reorganization, see subchapter IV (§ 1161 et seq.) of chapter 11 of Title 11. Section 715(d)(1) of this title, referred to in subsec. (b)(1), is a reference to section 715(d)(1) prior to amend- ment by Pub. L. 94–210. Section 715 was repealed by Pub. L. 95–473, § 4(b), Oct. 17, 1978, 92 Stat. 1466, the first section of which enacted subtitle IV (§ 10101 et seq.) of Title 49, Transportation. AMENDMENTS 1975—Subsec. (a)(2). Pub. L. 94–5, § 4(b), inserted provi- sions authorizing the Office to hold public hearings on supplements 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 the supplement not later than 30 days after the re- lease of the supplement. Subsec. (b). Pub. L. 94–5, § 4(a), designated existing provisions as par. (1) and added par. (2). 1974—Subsec. (a)(1). Pub. L. 93–488, § 1(a), substituted ‘‘420’’ for ‘‘300’’. Subsec. (c). Pub. L. 93–488, § 1(b), substituted ‘‘540’’ for ‘‘420’’. Statutory Notes and Related Subsidiaries ABOLITION OF SPECIAL COURT, REGIONAL RAIL REORGA- NIZATION ACT OF 1973, AND TRANSFER OF FUNCTIONS Special court abolished and all jurisdiction and func- tions 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 func- tions of Commission transferred, except as otherwise provided in Pub. L. 104–88, to Surface Transportation Board effective Jan. 1, 1996, by section 1302 of Title 49, Transportation, and section 101 of Pub. L. 104–88, set out as a note under section 1301 of Title 49. References to Interstate Commerce Commission deemed to refer to Surface Transportation Board, a member or employee of the Board, or Secretary of Transportation, as appro- priate, see section 205 of Pub. L. 104–88, set out as a note under 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 Com- mittee on Commerce, Science, and Transpor- tation 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 Con- gress after such date of transmittal unless ei- ther 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 reso- lution of disapproval under subsection (a) of this section, the Association, with the cooperation and assistance of the Secretary and the Office,