§11125. Directed rail transportation

(a) When a rail carrier providing transportation subject to the jurisdiction of the Interstate Commerce Commission under subchapter I of chapter 105 of this title cannot transport the traffic offered to it because-

(1) its cash position makes its continuing operation impossible;

(2) transportation has been discontinued under court order; or

(3) it has discontinued transportation without obtaining a required certificate under section 10903 of this title;

the Commission may direct the handling, routing, and movement of the traffic available to that carrier and its distribution over the railroad lines of that carrier by another carrier to promote service in the interest of the public and of commerce. Subject to subsection (b) of this section, the Commission may act without regard to subchapter II of chapter 103 of this title and subchapter II of chapter 5 of title 5.

(b)(1) Action of the Commission under subsection (a) of this section may not remain in effect for more than 60 days. However, the Commission may extend that period for an additional designated period of not more than 180 days if cause exists.

(2) The Commission may not take action that would-

(A) cause a directed carrier to operate in violation of chapter 201 of this title; or

(B) impair substantially the ability of a directed carrier to serve its own patrons adequately, or to meet its outstanding common carrier obligations.

(3) A directed carrier is not responsible, because of the direction of the Commission, for the debts of the other carrier.

(4) A directed carrier shall hire the employees of the other carrier, to the extent that they previously provided that transportation for the other carrier, and assume the existing employment obligations and practices of the other carrier for those employees including agreements governing rate of pay, rules and working conditions, and employee protective conditions for the period during which the action of the Commission is effective.

(5) A directed carrier may apply to the Commission for payment of an amount equal to the amount by which (A) the total expenses of that carrier incurred in or attributable to the handling, routing, and moving the traffic over the lines of the other carrier for the period during which the action of the Commission is effective, including renting or leasing necessary equipment and an allocation of common expenses, overhead, and a reasonable profit, exceed (B) the direct revenues from handling, routing, and moving that traffic over the lines of the other carrier during that period. The carrier must submit a current record of those total expenses to the Commission. The Commission shall certify promptly, to the Secretary of the Treasury, the amount to be paid. The Secretary shall pay that amount by the 90th day after the end of the period during which the direction of the Commission is effective, and funds are authorized to be appropriated for that payment. The Commission may audit any such record.

( Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1423 ; Pub. L. 98–216, §2(15), Feb. 14, 1984, 98 Stat. 5 ; Pub. L. 103–272, §5(m)(28), July 5, 1994, 108 Stat. 1378 .)

In subsection (a), the word "When" is substituted for "Whenever" for clarity. The word "cannot" is substituted for "is unable" to conform to the style of the revised title. The word "discontinued" is substituted for "abandoned" to conform with section 10903 of the revised title. The word "transportation" is substituted for "service" in view of the definition of "transportation" in section 10102 of the revised title and because the Interstate Commerce Commission has jurisdiction over transportation. The words "required certificate" are substituted for "certificate" in view of section 10903 of the revised title. The last sentence is a restatement of the procedure required to be followed under the cross reference in 49:1(16)(b) to 49:1(15). The words "just and reasonable" are omitted as unnecessary.

In subsection (b), the words "Action of the Commission" are substituted for "Such direction" for clarity.

In subsection (b)(5), the words "order" and "general order" are omitted as unnecessary. The words "The term 'cost' shall mean" are omitted as unnecessary. The words "in such manner and on such forms" are omitted in view of section 10321(a) of the revised title.

Amendments

1994-Subsec. (b)(2)(A). Pub. L. 103–272 substituted "chapter 201 of this title" for "the Federal Railroad Safety Act of 1970 (45 U.S.C. 431 et seq.)".

1984-Subsec. (b)(2)(A). Pub. L. 98–216 substituted "the Federal Railroad Safety Act of 1970 (45 U.S.C. 431 et seq.)" for "section 421 of title 45".

Section Referred to in Other Sections

This section is referred to in sections 11121, 11126, 11342, 11901 of this title; title 45 sections 744, 916, 1003, 1015.