United States Railway Association Amendments Act

(Measure laid on table in House, S. 2788 passed in lieu)

United States Railway Association Amendments Act - Amends the Regional Rail Reorganization Act of 1933 to authorize additional appropriations to the United States Railway Association in order to purchase securities of the Consolidated Rail Corporation (ConRail).

Directs ConRail to establish an employee stock ownership plan. Prohibits the Association from investing specified final sums authorized by such Act until such plan is in effect.

Requires that such plan provide for a transfer to the plan and to the accounts of plan participants, periodic installments of Series A preferred stock of the Corporation with a stated redemption value of at least $345,000,000 or any other securities in an amount determined by the Association, with concurrence of the Senate Finance Committee. States that the use of Series A preferred Stock to fund the Employee Stock Ownership Plan shall not relieve ConRail of the responsibility of repaying its indebtedness to the Association. Provides for: (1) the immediate vesting of rights of plan participants in such securities upon allocation to their accounts, subject to defeasance as a result of the plan's termination; and (2) the termination of the plan in the event that ConRail has not attained positive net income for two consecutive quarters and a freight labor cost to freight revenue ratio equal to the average ratio for all Class I railroads in 1977.

Lists requirements the plan must fulfill, including, but not limited to, being approved by the Board of Directors of ConRail, the Association, and the Senate Finance Committee.

States that the employee stock ownership plan shall be an employee benefit plan, combined with a trust that is tax exempt under the Internal Revenue Code of 1954. Makes provisions for plans which do not meet the requirements of the Internal Revenue Code.

Directs ConRail to adopt terms and conditions governing securities or interests therein to be transferred to the plan to protect the interest of the United States in the valuation and conveyance of rail properties litigation.

Requires ConRail, the Association, and a representative appointed by the Chairman of the Railway Labor Executives' Association as representative of all classes or crafts of ConRail employees to engage in negotiations to agree upon a plan in accordance with this Act. Directs ConRail to transmit to the Congress a draft of such plan and a report on its progress in establishing and administering the plan. Lists provisions which must be included in the plan, including recommendations of contractual and statutory provisions to exempt from liability because of the acquisition of, or investment in, securities or interest therein of ConRail, the Trustees of the Plan, ConRail, the Association, any member of the Finance Committee, and any other person with any fiduciary duty.

Directs the Association, within 14 months of the effective date of this Act, to report to the Congress on the draft plan and on any legal obstacle to the ability of ConRail to effectuate and implement an employee stock ownership plan, with appropriate, separate comments from the Departments of Transportation and the Treasury.

Stipulates that the union officers who are authorized to represent the union employees and are given leaves of absence by the Corporation to serve as such officers shall be eligible to participate in the plan.

Empowers the President to fix relocation, travel, and transportation expenses for the General Manager of the railroad in the State of Alaska. Applies such provision retroactively to the General Manager serving on the date of enactment of this Act.

Amends the Railroad Revitalization and Regulatory Reform Act to extend for one year until September 30, 1979, the rail assistance program for rehabilitation and improvement financing. Deletes the provision of such program which sets a ceiling of $100,000,000 on trustee certificates.

Authorizes $9,000,000 to be appropriated to the Secretary of Transportation for making payments to ConRail to construct the railroad bridge over the Hudson River at Poughkeepsie, New York.

Provides for monitoring the activities and operation of ConRail. Requires the Association to submit to the Congress: (1) a report on the policies of ConRail and the results of such policies with respect to the operation, cost containment, and marketing along with necessary additional and methodological information; and (2) a report on ConRail's revenue and capital and operating expenses. Stipulates that such monitoring information be submitted within 90 days after the date of enactment of this Act and at the end of the first quarter of each calendar year thereafter, with periodic updating as deemed necessary.