---
kind: "section"
citation: "49 U.S.C. § 10902"
title: "49"
title_heading: "Transportation"
number: "10902"
heading: "Short line purchases by Class II and Class III rail carriers"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/49/10902"
units:
  - "Subtitle IV — Interstate Transportation"
  - "Part A — Rail"
  - "Chapter 109 — Licensing"
---

# §10902. Short line purchases by Class II and Class III rail carriers

- (a) A Class II or Class III [rail carrier](/usc/49/10102.md?p=5) providing [transportation](/usc/49/10102.md?p=9) subject to the jurisdiction of the [Board](/usc/49/10102.md?p=1) under this part may acquire or operate an extended or additional rail line under this section only if the [Board](/usc/49/10102.md?p=1) issues a certificate authorizing such activity under [subsection (c)](#c).
- (b) A proceeding to grant authority under [subsection (a)](#a) of this section begins when an application is filed. On receiving the application, the [Board](/usc/49/10102.md?p=1) shall give reasonable public notice of the beginning of such proceeding.
- (c) The [Board](/usc/49/10102.md?p=1) shall issue a certificate authorizing activities for which such authority is requested in an application filed under [subsection (b)](#b) unless the [Board](/usc/49/10102.md?p=1) 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](/usc/49/10102.md?p=1) finds necessary in the public interest.
- (d) The [Board](/usc/49/10102.md?p=1) shall require any Class II [rail carrier](/usc/49/10102.md?p=5) which receives a certificate under [subsection (c)](#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](/usc/49/10102.md?p=6) 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](/usc/49/10102.md?p=1). The amount of such severance pay shall be reduced by the amount of earnings from [railroad](/usc/49/10102.md?p=6) employment of the employee with the acquiring [carrier](/usc/49/13102.md?p=3) 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](/usc/49/10102.md?p=1) shall not require such an arrangement from a Class III [rail carrier](/usc/49/10102.md?p=5) which receives a certificate under [subsection (c)](#c) of this section.

## Source credit

(Added Pub. L. 104–88, title I, § 102(a), Dec. 29, 1995, 109 Stat. 823.)

## Notes

### Editorial Notes

### Prior 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 Subsidiaries

### Effective 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.