expedited railroad merger procedure

expedited railroad merger procedure Sec. 403. (a) Section 5 of the Interstate Commerce Act (49 U.S.C. 5) is amended by redesignating paragraphs (3) through (16) thereof as paragraphs (4) through (17) thereof, respectively, and by inserting therein a new paragraph (3), as follows: “(3) (a) If a merger, consolidation, unification or coordination project (as described in section 5(c) of the Department of Transportation Act), joint use of tracks or other facilities, or acquisition or sale of assets, which involves any common carrier by railroad subject to this part, is proposed by an eligible party in accordance with subdivision (b) during the period beginning on the date of enactment of this paragraph and ending on December 31, 1981, the party seeking authority for the execution or implementation of such transaction may utilize the procedure set forth in this paragraph or in paragraph (2). “(b) Any transaction described in subdivision (a) may be proposed to the Commission by— “(i) the Secretary of Transportation (hereafter in this paragraph referred to as the ‘Secretary’), with the consent of the common carriers by railroad subject to this part which are parties to such transaction; or “(ii) any such carrier which, not less than 6 months prior to such submission to the Commission, submitted such proposed transaction to the Secretary for evaluation pursuant to subdivision (f). “(c) Whenever a transaction described in subdivision (a) is proposed under this paragraph, the proposing party shall submit an application for approval thereof to the Commission, in accordance with such requirements as to form, content, and documentation as the Commission may prescribe. Within 10 days after the date of receipt of such an application, the Commission shall send a notice of such proposed transaction to— “(i) the Governor of each State which may lie affected, directly or indirectly, by such transaction if it is executed or implemented; “(ii) the Attorney General; “(iii) the Secretary of Labor; and “(iv) the Secretary’ (except where the Secretary is the proposing party). 90 STAT. 64 The Commission shall accompany its notice to the Secretary with a request for the report of the Secretary pursuant to clause (v) of subdivision (f). Each such notice shall include a copy of such application; a summary of the proposed transaction involved, and the proposing party’s reasons and public interest justifications therefor. “(d) The Commission shall hold a public hearing on each application submitted to it pursuant to subdivision (c), within 90 days after the date of receipt of such application. Such public hearing shall be held before a panel of the Commission duly designated for such purpose by the Commission. Such panel may utilize administrative law judges and the Rail Services Planning Office in such manner as it considers appropriate for the conduct of the hearing, the evaluation of such application and comments thereon, and the timely and reasonable determination of whether it is in the public interest to grant such application and to approve such proposed transaction pursuant to subdivision (g). Such panel shall complete such hearing within 180 days after the date of referral of such application to such panel, and it may, in order to meet such requirement, prescribe such rules and make such rulings as may tend to avoid unnecessary costs or delay. Such panel shall recommend a decision and certify the record to the full Commission for final decision, within 90 days after the termination of such hearing. The full Commission shall hear oral argument on the matter so certified, and it shall render a final decision within 120 days after receipt of the certified record and recommended decision of such panel. The Commission may, in its discretion, extend any time period set forth in this subdivision, except that the final decision of the Commission shall be rendered not later than the second anniversary of the date of receipt of such an application by the Commission. “(e) In making its recommended decision with respect to any transaction proposed under this paragraph, the duly designated panel of the Commission shall— “(i) request the views of the Secretary, with respect to the effect of such proposed transaction on the national transportation policy, as stated by the Secretary, and consider the matter submitted under subdivision (f); “(ii) request the views of the Attorney General, with respect to any competitive or anticompetitive effects of such proposed transaction; and “(iii) request the views of the Secretary of Labor, with respect to the effect of such proposed transaction on railroad employees, particularly as to whether such proposal contains adequate employee protection provisions. Such views shall be submitted in writing and shall be available to the public upon request. “(f) Whenever a proposed transaction is submitted to the Secretary by a common carrier by railroad pursuant to clause (ii) of subdivision (b), and whenever the Secretary develops a proposed transaction for submission to the Commission pursuant to subdivision (c), the Secretary shall— “(i) publish a summary and a detailed account of the contents of such proposed transaction in the Federal Register, in order to provide reasonable notice to interested parties and the public of such proposed transaction: “(ii) give notice of such proposed transaction to the Attorney General and to the Governor of each State in which any part of the properties of the common carriers by railroad involved in such proposed transaction are situated; 90 STAT. 65 “(iii) conduct an informal public hearing with respect to such proposed transaction and provide an opportunity for all interested parties to submit written comments; “(iv) study each such proposed transaction with respect to— “(A) the needs of rail transportation in the geographical area affected; “(B) the effect of such proposed transaction on the retention and promotion of competition in the provision of rail and other transportation services in the geographical area affected; “(C) the environmental impact of such proposed transaction and of alternative choices of action; “(D) the effect of such proposed transaction on employment; “(E) the cost of rehabilitation and modernization of track, equipment, and other facilities, with a comparison of the potential savings or losses from other possible choices of action; “(F) the rationalization of the rail system; “(G) the impact of such proposed transaction on shippers, consumers, and railroad employees; “(H) the effect of such proposed transaction on the communities in the geographical areas affected and on the geographical areas contiguous to such areas; and “(I) whether such proposed transaction will improve rail service; and “(v) submit a report to the Commission setting forth the results of each study conducted pursuant to clause (iv), within 10 days after an application is submitted to the Commission pursuant to subdivision (c), with respect to the proposed transaction which is the subject of such study. The Commission shall g.ve due weight and consideration to such report in making its determinations under this paragraph. “(g) The Commission may— “(i) approve a transaction proposed under this paragraph, if the Commission determines that such proposed transaction is in the public interest; and “(ii) condition its approval of any such proposed transaction on any terms, conditions, and modifications which the Commission determines are in the public interest; or “(iii) disapprove any such proposed transaction, if the Commission determines that such proposed transaction is not in the public interest. In each such case, the decision of the Commission shall be accompanied by a written opinion setting forth the reasons for its action.”. (b) Section 5 of the Interstate Commerce Act (49 U.S.C. 5) is further amended— (1) in paragraph (2) (a) thereof by inserting “or paragraph (3)” immediately after “subdivision (b)”; (2) in paragraph (2) (f) thereof, by inserting immediately after “(2)” the following: “or paragraph (3)”; (3) in paragraph (5) thereof, as redesignated by this Act, by striking out “paragraph (2)” and inserting in lieu thereof “paragraphs (2) and (3)”, and by striking out “paragraph (5)” and inserting in lieu thereof “paragraph (6)”; (4) in paragraph (8) thereof, as redesignated by this Act, by striking out “paragraph (4)” and inserting in lieu thereof 90 STAT. 66“paragraph (5)”, and by striking out “(12)” and inserting in lieu thereof “(13)”; (5) in paragraph (10) thereof, as redesignated by this Act, by striking out “(7)” and inserting in lieu thereof “(8)”; (6) in paragraph (14) thereof, as redesignated by this Act, by striking out “(12)” and inserting in lieu thereof “(13)”; (7) in paragraph (16), as redesignated by this Act, by striking out “paragraph (14)” and inserting in lieu thereof “paragraph (15)” (8) in paragraph (17), as redesignated by this Act, by striking out “paragraph (14)” and inserting in lieu thereof “paragraph (15)”; and (9) by striking out “subparagraph” each place it appears and inserting in lieu thereof “subdivision”.