49 U.S.C. § 10902

Short line purchases by Class II and Class III rail carriers

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(a) A Class II or Class III rail carrier providing transportation subject to the jurisdiction of the Board under this part may acquire or operate an extended or additional rail line under this section only if the Board issues a certificate authorizing such activity under subsection (c).(b) A proceeding to grant authority under subsection (a) of this section begins when an application is filed. On receiving the application, the Board shall give reasonable public notice of the beginning of such proceeding.(c) The Board shall issue a certificate authorizing activities for which such authority is requested in an application filed under subsection (b) unless the Board finds that such activities are inconsistent with the public convenience and necessity. Such certificate may approve the application as filed, or with modifications, and may require compliance with conditions (other than labor protection conditions) the Board finds necessary in the public interest.(d) The Board shall require any Class II rail carrier which receives a certificate under subsection (c) of this section to provide a fair and equitable arrangement for the protection of the interests of employees who may be affected thereby. The arrangement shall consist exclusively of one year of severance pay, which shall not exceed the amount of earnings from railroad employment of the employee during the 12-month period immediately preceding the date on which the application for such certificate is filed with the Board. The amount of such severance pay shall be reduced by the amount of earnings from railroad employment of the employee with the acquiring carrier during the 12-month period immediately following the effective date of the transaction to which the certificate applies. The parties may agree to terms other than as provided in this subsection. The Board shall not require such an arrangement from a Class III rail carrier which receives a certificate under subsection (c) of this section.(Added Pub. L. 104–88, title I, § 102(a), Dec. 29, 1995, 109 Stat. 823.)Editorial NotesPrior Provisions

A prior section 10902, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1403, related to authorizing action by rail carriers to provide adequate, efficient, and safe facilities.

Statutory Notes and Related SubsidiariesEffective Date

Section effective Jan. 1, 1996, except as otherwise provided in Pub. L. 104–88, see section 2 of Pub. L. 104–88, set out as a note under section 1301 of this title.

Notes of Decisions

Cited in 6 cases, 1998–2020 · leading case: Buffalo S. R.R. v. Vill. of Croton-On-Hudson, 434 F. Supp. 2d 241 (S.D.N.Y. 2006).

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Buffalo S. R.R. v. Vill. of Croton-On-Hudson, 434 F. Supp. 2d 241 (S.D.N.Y. 2006). · cites it 3× “But it argues that preemption does not apply in this case, because BSOR’s operations as a common carrier by rail at the Yard are unlawful unless the STB grants plaintiff a license (in the form of a certificate pursuant to 49 U.S.C. § 10902 ) to operate as a common carrier in…”

Snohomish Cnty., Washington v. STB, 954 F.3d 290 (D.C. Cir. 2020). “§ 10901 , governing construction and operation of railroad lines, and 49 U.S.C. § 10902 , governing short-line purchases by Class II and Class III rail carriers.”

United Transp. Union-Illinois Legislative Bd. v. Surface Transp. Bd., 169 F.3d 474 (7th Cir. 1999). · cites it 8× “Class II and Class III carriers must have Board authorization, involving satisfaction of various regulatory conditions, to enter into transactions to acquire or operate additional rail lines, see 49 U.S.C. § 10902 , unless they obtain an exemption.”

Union Pac. R.R. v. Surface Transp. Bd., 358 F.3d 31 (D.C. Cir. 2004). “In Association of American Railroads the Board had issued an order, under a cognate labor protection provision, 49 U.S.C. § 10902 (d), requiring arbitration for disputes arising under that order, and we upheld the Board.”

Ass'n of Am. Railroads v. Surface Transp. Bd., 162 F.3d 101 (D.C. Cir. 1998). · cites it 7× “See 49 U.S.C.A. § 10902 (1997). Under-the prior statutory scheme, the ICC had authority to require railroads seeking expedited agency approval of rail line acquisitions to provide “a fair and equitable arrangement to protect the interests of the railroad employees affected.”

Ass'n of Am. Railroads v. Surface Transp. Bd., 161 F.3d 58 (D.C. Cir. 1998). “§ 10901 , governing construction and operation of railroad lines, and 49 U.S.C. § 10902 , governing short-line purchases by Class II and Class III rail carriers.”

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