A bill entitled the "Improved Rural and Short-Line Railroad Service Act."

Amends Federal transportation law to revise criteria used by the Interstate Commerce Commission in making determinations with respect to applications for abandonment or discontinuance of railroad lines and rail transportation in rural and agricultural areas, especially if abandonment or discontinuance will have a serious adverse effect on development.

Requires rail carriers listing a railroad line for abandonment or discontinuance to make specified records and justifications available to government agencies or local governments. Grants lessees of property or facilities owned by a rail carrier proposing an abandonment or discontinuance elsewhere the right of first refusal to buy a facility served by the line to be abandoned or discontinued.

 
S 641 IS
102d CONGRESS
1st Session
S. 641
Entitled the `Improved Rural and Short-Line Railroad Service Act'.
IN THE SENATE OF THE UNITED STATES
March 13 (legislative day, FEBRUARY 6), 1991
Mrs. KASSEBAUM introduced the following bill; which was read twice and
referred to the Committee on Commerce, Science, and Transportation
A BILL
Entitled the `Improved Rural and Short-Line Railroad Service Act'.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. AMENDMENTS.
  (a) The last sentence of section 10903(a) of title 49, United States Code,
  is amended to read as follows: `In making the finding, the Commission shall--
  `(A) consider whether the abandonment or discontinuance will have a serious,
  adverse impact on rural, agricultural, or community development;
  `(B) not approve any abandonments or discontinuance unless the rail carrier
  can demonstrate substantial and good faith efforts were made to transfer
  or sell the subject line as a going concern railroad; and
  `(C) in the case of an application made by a rail carrier to which the
  subject line was transferred during the three years preceding the application
  to abandon or discontinue, not authorize the abandonment or discontinuance
  if it appears that the transfer was for the purpose, in whole or in part,
  or furthering an effort by the transferor to avoid any condition which would
  have prohibited the transferor from abandoning or discontinuing the line.'.
  (b) Section 10904(e)(3) of title 49, United States Code, is amended by
  adding at the end thereof the following: `Whenever a railroad line is
  listed by a rail carrier pursuant to the provisions of paragraph (2), the
  rail carrier shall, upon written request, make available to any affected
  governmental agency or political subdivision an accurate and understandable
  summary of the rail carrier's reasons for so listing the line, records
  demonstrating traffic volumes handled on or over the line for each of the
  four preceding years, its most recent records on the physical condition
  of the line, including deferred maintenance and planned maintenance, and
  such other data and information as reasonably may be regarded as relevant
  to the ability of the governmental agency or subdivision to evaluate the
  viability of the line.'.
  (c) Section 10905 of title 49, United States Code, is amended by adding
  at the end thereof the following new subsection:
  `(g) When the Commission makes the finding described in subsection (c)
  of this section, any person who is the lessee of property or facilities
  owned by the applicant railroad that are not included in the railroad line
  approved for abandonment or discontinuance but on which there is situated
  a facility exclusively served by such line shall be accorded the right of
  first refusal to purchase such facilities or property at its fair market
  value as determined by the value of the facilities or property assuming
  the discontinuance or abandonment of rail service. The railroad seeking
  abandonment or discontinuance shall provide to any such lessee written
  notice of this option no less than thirty days prior to the date when the
  Commission finding described in subsection (c) of this section is due. Any
  lessee wishing to avail itself of this option may do so by following the
  notice and other procedures set forth in subsection (c) of this section
  regarding offers to subsidize or purchase the line, and the same requirements
  and obligations regarding such offers to purchase or subsidize shall be
  applied by the Commission with respect to offers by lessees to acquire the
  facilities or property described in this subpart. For the purposes of this
  section, the term `facilities or property owned by the applicant railroad'
  shall include property owned by any entity under common ownership with the
  applicant railroad or any person who acquired such facilities or property
  from the applicant railroad or any entity under common control therewith
  at any time later than one year preceding the listing of the line under
  section 10904(e)(2).'.