An act to provide for the orderly restructuring of the Milwaukee Railroad, and for the protection of the employees of such railroad.

Summary

Milwaukee Railroad Restructuring Act - Authorizes the bankruptcy court to allow the abandonment of the lines of the Milwaukee Railroad if an employee ownership or employee-shipper ownership arrangement is not implemented by a specified date. Stipulates that, pending the expiration of the time for appeal of such an order, the court may authorize the termination of service on a line to be abandoned. Stipulates that such order may not be stayed. Directs the Interstate Commerce Commission to give preference to proceedings involving the sale or transfer of a line of a railroad in reorganization. Sets forth time limits regarding such proceedings. Authorizes a bankruptcy court, upon the date of enactment of this Act, to authorize the abandonment of lines of railroad in any case pending under the Bankruptcy Act. Stipulates that, pending the expiration of the time for appeal of such an order, the court may authorize the termination of service on a line to be abandoned. Stipulates that such an order may not be stayed. Authorizes an association of representatives of national railway labor organizations, employee coalitions, and shippers to submit to the Commission a single plan for converting all or substantially all of the Milwaukee Railroad into an employee or employee-shipper-owned company. Stipulates that such a plan must be submitted by December 1, 1979. Directs the Commission, within 30 days, to approve such a plan if: (1) adequate financing is available to the proponents of such plan; (2) the plan is fair and equitable to the railroad's creditors; (3) implementation of such plan will occur by March 1, 1980; (4) the railroad can be operated on a self-sustaining basis; and (5) the plan contains an assessment of all operating practices including the implementation of changes designed to achieve the greatest possible labor productivity increases consistent with safe operations and adequate service. Directs the Commission, upon finding that the plan meets such criteria, to submit its findings to the bankruptcy court. Directs the court, within ten days, to determine whether the plan is fair and equitable to the estate of the Milwaukee Railroad. Stipulates that if the court approves such plan the proponents shall implement the plan by March 1, 1980. Amends the Emergency Rail Services Act of 1970 to remove the requirement that Federally guaranteed railroad certificates of railroads in reorganization be treated as an expense of administration and receive the highest priority in bankruptcy if the railroad involved is actively engaged in formulating an employee ownership plan or an employee-shipper ownership plan. Increases the aggregate principal amount of all certificates which may be guaranteed under such Act. Directs the Secretary of Transportation to immediately guarantee trustee certificates of the Milwaukee Railroad to allow the railroad to maintain its rail system. Stipulates that such certificates shall be subordinated to the claims of any creditor's of the railroad which exist on the date of enactment of this Act. Stipulates that an employee of such railroad who elects to receive a separation allowance shall be entitled to receive from the Railroad Retirement Board expenses for training in qualified institutions for new career opportunities. Authorizes appropriations for such purpose. Directs the Secretary, pursuant to the Railroad Revitalization and Regulatory Reform Act of 1976 to guarantee obligations of such railroad in order to provide protection for employees affected by restructuring, transactions, or reductions in service by such railroad. Directs the Secretary to guarantee obligations of the railroad to finance an equipment repair program for the railroad, or its successors, during the remainder of 1979 and 1980. Stipulates that the obligations guaranteed for such repair program and for employee protection arrangements shall be subordinated to the claims of any creditor of the railroad existing on the date of enactment of this Act. Amends the Railroad Revitalization and Regulatory Reform Act of 1976 to authorize the Secretary to purchase redeemable preference shares or trustee certificates which are convertible to such shares to facilitate the rehabilitation and improvement of Milwaukee Railroad property that has been sold to another person prior to November 1, 1980, or retained by such railroad so long as such property will be used for continuing rail service. Stipulates that the provisions of the National Environmental Policy Act of 1969 shall not apply to transactions carried out pursuant to this Act. Directs the Milwaukee Railroad to maintain its entire railroad system and continue its level of service until: (1) an employee or employee-shipper ownership plan is not submitted to the Commission in the allotted time; (2) the Commission finds the plan not to be feasible; (3) the bankruptcy court finds that the plan is not fair and equitable to the railroad's creditors; or (4) the plan is not implemented within the allotted time. Amends the Regional Rail Reorganization Act of 1973 to stipulate that the United States Railway Association may increase the principal amount of a loan, in an amount not to exceed $4,000,000 if the railroad is establishing an employee stock ownership plan, that assures by December 31, 1980, the railroad will contribute a specified sum to such plan. Amends the Department of Transportation Act to stipulate that rail service assistance funds which are available for reallocation as of October 1, 1979, shall be reallocated solely to States which require supplementary assistance to mitigate the effects caused by the filing of large-scale abandonments by railroads in liquidation on reorganization.

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Documents

5 official files

• Public Law (PDF)

  Public Law · EN · 5 November 1979

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• Conference report filed in House

  summary · EN · 2 November 1979

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• Passed House amended

  summary · EN · 30 October 1979

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• Reported to Senate with amendment(s)

  summary · EN · 29 October 1979

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• Introduced in Senate

  summary · EN · 17 October 1979

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