[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1318 Referral Instructions Senate (RIS)]

  1st Session
                                S. 1318

                          [Report No. 104-157]

To reform the statutes relating to Amtrak, to authorize appropriations 
                  for Amtrak, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             October 12 (legislative day, October 10), 1995

      Mr. Pressler, from the Committee on Commerce, Science, and 
 Transportation, reported the following original bill; which was read 
                    twice and placed on the calendar

             October 19 (legislative day, October 18), 1995

      Ordered referred to the Committee on Finance solely for the 
 consideration of title X, for a period not to exceed 15 calendar days 
                         to report or discharge

_______________________________________________________________________

                                 A BILL


 
To reform the statutes relating to Amtrak, to authorize appropriations 
                  for Amtrak, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Amtrak and Local Rail Revitalization 
Act of 1995''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) intercity rail passenger service is an essential 
        component of a national intermodal passenger transportation 
        system, and the National Railroad Passenger Corporation 
        (Amtrak) must provide a quality transportation product in the 
        form of clean, comfortable, and on-time service to achieve its 
        full potential;
            (2) Amtrak has been forced to significantly cut back its 
        basic system due to cash shortages, and further cutback may be 
        required unless Amtrak is able to reduce its costs and increase 
        its revenues;
            (3) to ensure Amtrak's long-term viability as a provider of 
        intercity rail passenger service, all of Amtrak's stakeholders 
        must participate in efforts to reduce Amtrak's costs and 
        increase its revenues;
            (4) additional management flexibility is needed to allow 
        Amtrak to operate in a businesslike manner in order to adjust 
        quickly to meet demand and changing customer needs;
            (5) Amtrak's management and employees are dedicated to 
        providing the high-quality service that Amtrak's customers 
        deserve but additional capital investment is needed to acquire 
        the modern equipment and efficient facilities that are 
        essential to satisfy the demand for superior intercity rail 
        passenger service;
            (6) adequate levels of capital investment from the Federal 
        Government and State governments and innovative partnerships 
        with the private sector will enable Amtrak to provide the world 
        class service American rail passengers deserve and will help 
        reduce operating costs in the long term;
            (7) Amtrak's management should be held accountable to 
        ensure that all capital investment by the Federal Government 
        and State governments is used effectively to improve the 
        quality of service and the long-term financial health of 
        Amtrak;
            (8) Amtrak's employees should share equitably in the burden 
        of restoring Amtrak to financial health;
            (9) States, local governments, and private parties can and 
        should play an increasingly significant role in supporting 
        cost-efficient intercity rail passenger transportation and in 
        addressing local transportation needs and air quality control;
            (10) mandatory payments reflecting funds paid into the 
        railroad retirement and railroad unemployment systems on 
        Amtrak's behalf in excess of the funds needed to pay retirement 
        and unemployment benefits for Amtrak's employees and their 
        beneficiaries should not be considered a Federal operating 
        subsidy of Amtrak;
            (11) Federal financial assistance to cover operating losses 
        incurred by Amtrak should be eliminated by the year 2001;
            (12) Amtrak and its employees should proceed quickly with 
        proposals to modify collective bargaining agreements to make 
        more efficient use of manpower and to realize cost savings 
        which are necessary to eliminate Federal financial assistance 
        to cover its operating losses by the fiscal year following the 
        fifth anniversary of the date of enactment of this Act; and
            (13) Amtrak should ensure that new management flexibility 
        produces cost savings without compromising safety.

                      TITLE I--PROCUREMENT REFORMS

SEC. 101. CONTRACTING OUT.

    (a) Contracting Out Reform.--Effective 180 days after the date of 
enactment of this Act, section 24312 of title 49, United States Code, 
is amended--
            (1) by striking the paragraph designation for paragraph (1) 
        of subsection (a);
            (2) by striking ``(2)'' in subsection (a)(2) and inserting 
        ``(b)''; and
            (3) by striking subsection (b).
The amendment made by paragraph (3) is without prejudice to the power 
of Amtrak to contract out the provision of food and beverage services 
on board Amtrak trains or to contract out work not resulting in the 
layoff of Amtrak employees.
    (b) Negotiation of Contracting Out Rules.--
            (1) In general.--Within 5 days after the date of enactment 
        of this Act, Amtrak and its labor organizations shall meet to 
        resolve the issue of under what conditions, if any, Amtrak may 
        contract out work normally performed by an employee in a 
        bargaining unit covered by a contract between Amtrak and its 
        labor organizations when the contracting out results in the 
        layoff of employees in the bargaining unit. The issue for 
        negotiation under this paragraph does not include the 
        contracting out of work involving food and beverage services 
        provided on Amtrak trains or the contracting out of work not 
        resulting in the layoff of Amtrak employees.
            (2) Assisted negotiations if issue unresolved within 90 
        days.--If the parties negotiating under paragraph (1) are 
        unable to resolve the issue within 90 days after such date of 
        enactment, they shall each select a neutral person from the 
        list of National Mediation Board arbitrators. The persons 
        selected shall meet and select an arbitrator who will assist 
        the parties in their discussions and arbitrate the dispute if 
        the parties fail to negotiate a resolution of the issue. If the 
        National Mediation Board is not informed of the selection of 
        the arbitrator within 120 days after such date of enactment, 
        the National Mediation Board will immediately select the 
        arbitrator for the issue in dispute. One half of the expenses 
        of the neutral persons and the arbitrator selected under this 
        paragraph will be borne by Amtrak, and the other half by the 
        labor organizations jointly.
            (3) Hearing scheduled.--If the issue remains unresolved 120 
        days after such date of enactment, the arbitrator selected 
        under paragraph (2) shall schedule a hearing to be held 150 
        days after such date of enactment and shall meet with the 
        parties to mediate the issue before the hearing.
            (4) Last best offers.--If the issue has not been resolved 
        before the date of the hearing scheduled under paragraph (3), 
        each party involved in the negotiation shall submit its last 
        best offer to the arbitrator at the time of the hearing.
            (5) Hearing procedure.--At the hearing, the arbitrator 
        shall receive the arguments and supporting evidence for the 
        positions of the parties, as well as any clarifications of last 
        best offers submitted by the parties. All materials to be 
        reviewed by the arbitrator shall be presented at the hearing.
            (6) Award.--
                    (A) In general.--Within 170 days after such date of 
                enactment, the arbitrator will select either of the 
                last best offers and render an award resolving the 
                issue. The authority of the arbitrator is limited to 
                resolving the issue presented by the hearing. The award 
                will take effect on the 180th day after such date of 
                enactment, and, except as provided in subparagraph (B) 
                shall be final and binding on all parties.
                    (B) Contest of award.--The United States District 
                Court for the District of Columbia has exclusive 
                jurisdiction to hear an action contesting an award 
                under subparagraph (A). The court may not set aside or 
                modify such an award except on--
                            (i) the grounds that the proceeding or the 
                        award plainly does not conform to the 
                        substantive requirements of this section; or
                            (ii) grounds set forth in section 9 Third 
                        (c) of the Railway Labor Act (45 U.S.C. 159 
                        Third (c)).
                Except as otherwise provided in this section, the 
                provisions of section 9 of such Act (45 U.S.C. 159) 
                govern any contest of an award under subparagraph (A) 
                of this paragraph.
                    (C) Award supersedes existing collective bargaining 
                arrangements.--An award under subparagraph (A) 
                supersedes any collective bargaining agreement entered 
                into before the award is made, and any practice in 
                effect before the award is made, to the extent that 
                such agreement or practice is inconsistent with the 
                award or limits the right to engage in subcontracting 
                under the award.
            (7) Amendment of award.--The award remains in effect until 
        amended by mutual agreement of the parties. Notices under 
        section 6 of the Railway Labor Act to amend the award may not 
        be served until 30 days before the end of the third year after 
        the effective date of the award.
    (b) No Precedent for Freight.--Nothing in this section shall be a 
precedent for the resolution of any dispute between a freight railroad 
and any labor organization representing that railroad's employees.

SEC. 102. CONTRACTING PRACTICES.

    (a) Below-cost Competition.--Section 24305(b) of title 49, United 
States Code, is amended to read as follows:
    ``(b) Below-cost Competition.--Amtrak shall not submit any bid for 
the performance of services under a contract for an amount less than 
the cost to Amtrak of performing such services, with respect to any 
activity other than the provision of intercity rail passenger 
transportation, or mail or express transportation. For purposes of this 
subsection, the cost to Amtrak of performing services shall be 
determined using generally accepted accounting principles for 
contracting. This subsection shall not apply for any fiscal year for 
which Amtrak receives no Federal subsidy.''.
    (b) Through Service in Conjunction With Intercity Bus Operations.--
Section 24305(a) of title 49, United States Code, is amended by adding 
at the end the following new paragraph:
    ``(3)(A) Except as provided in subsection (d)(2), Amtrak may enter 
into a contract with a motor carrier of passengers for the intercity 
transportation of passengers by motor carrier over regular routes 
only--
            ``(i) if the motor carrier is not a public recipient of 
        governmental assistance, as such term is defined in section 
        10922(d)(1)(F)(i) of this title, other than a recipient of 
        funds under section 18 of the Federal Transit Act;
            ``(ii) for passengers who have had prior movement by rail 
        or will have subsequent movement by rail; and
            ``(iii) if the buses, when used in the provision of such 
        transportation, are used exclusively for the transportation of 
        passengers described in clause (ii).
    ``(B) Subparagraph (A) shall not apply to transportation funded 
predominantly by a State or local government, or to ticket selling 
agreements.''.
    (2) Section 24305(d) of title 49, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(3) Congress encourages Amtrak and motor common carriers of 
passengers to use the authority conferred in section 11342(a) of this 
title for the purpose of providing improved service to the public and 
economy of operation.''.

SEC. 103. RAIL AND MOTOR CARRIER PASSENGER SERVICE.

    (a) In General.--Notwithstanding any other provision of law (other 
than section 24305(a) of title 49, United States Code), Amtrak and 
motor carriers of passengers are authorized--
            (1) to combine or package their respective services and 
        facilities to the public as a means of increasing revenues; and
            (2) to coordinate schedules, routes, rates, reservations, 
        and ticketing to provide for enhanced intermodal surface 
        transportation.
    (b) Review.--The authority granted by subsection (a) is subject to 
the review of the Interstate Commerce Commission and such authority may 
be modified or revoked by the Interstate Commerce Commission if in the 
public interest.

SEC. 104. WORLD CLASS SERVICE.

    Section 24101(c) of title 49, United States Code, is amended by 
redesignating paragraphs (10) and (11) as (12) and (13), respectively, 
and by inserting after paragraph (9) the following:
            ``(10) manage capital investment in such a way as to 
        provide customers with world class service;
            ``(11) treat all passengers with respect, courtesy, and 
        dignity;''.

SEC. 105. PASSENGER CHOICE.

    Federal employees shall be permitted to choose travel on Amtrak for 
official business where total travel cost from office to office is 
competitive on a total trip or time basis.

SEC. 106. FREEDOM OF INFORMATION ACT.

    Section 24301(e) of title 49, United States Code, is amended by 
adding at the end thereof the following: ``Section 552 of title 5, 
United States Code, shall apply to Amtrak in any fiscal year for which 
Amtrak receives a Federal operating subsidy.''.

                     TITLE II--OPERATIONAL REFORMS

SEC. 201. BASIC SYSTEM.

    (a) Operation of Basic System.--Amtrak shall strive to operate as a 
national rail passenger transportation system which provides access to 
all areas of the country and ties together existing and emergent 
regional rail passenger networks and other intermodal passenger 
service.
    (b) Improving Rail Passenger Transportation.--Section 24702 of 
title 49, United States Code, and the item relating thereto in the 
table of sections of chapter 247 of such title, are repealed.
    (c) Discontinuance.--Section 24706 of title 49, United States Code, 
is amended--
            (1) by striking ``90 days'' and inserting ``180 days'' in 
        subsection (a)(1);
            (2) by striking ``a discontinuance under section 24704 or 
        24707(a) or (b) of this title'' in subsection (a)(1) and 
        inserting ``discontinuing service over a route'';
            (3) by inserting ``or assume'' after ``agree to share'' in 
        subsection (a)(1); and
            (4) by striking ``section 24704 or 24707(a) or (b) of this 
        title'' in subsections (a)(2) and (b)(1) and inserting 
        ``paragraph (1)''.
    (d) Cost and Performance Review.--Section 24707 of title 49, United 
States Code, and the item relating thereto in the table of sections of 
chapter 247 of such title, are repealed.
    (e) Special Commuter Transportation.--Section 24708 of title 49, 
United States Code, and the item relating thereto in the table of 
sections of chapter 247 of such title, are repealed.
    (f) Conforming Amendment.--Section 24312(a)(1) of title 49, United 
States Code, is amended by striking ``, 24701(a),''.

SEC. 202. MAIL, EXPRESS, AND AUTO-FERRY TRANSPORTATION.

    (a) Repeal.--Section 24306 of title 49, United States Code, and the 
item relating thereto in the table of sections of chapter 243 of such 
title, are repealed.
    (b) Conforming Amendment.--Section 24301 of title 49, United States 
Code, is amended by adding at the end the following new subsection:
    ``(o) Nonapplication of Certain Other Laws.--State and local laws 
and regulations that impair the provision of mail, express, and auto-
ferry transportation do not apply to Amtrak or a rail carrier providing 
mail, express, or auto-ferry transportation.''.

SEC. 203. ROUTE AND SERVICE CRITERIA.

    Section 24703 of title 49, United States Code, and the item 
relating thereto in the table of sections of chapter 247 of such title, 
are repealed.

SEC. 204. ADDITIONAL QUALIFYING ROUTES.

    Section 24705 of title 49, United States Code, and the item 
relating thereto in the table of sections of chapter 247 of such title, 
are repealed.

SEC. 205. TRANSPORTATION REQUESTED BY STATES, AUTHORITIES, AND OTHER 
              PERSONS.

    (a) Repeal.--Section 24704 of title 49, United States Code, and the 
item relating thereto in the table of sections of chapter 247 of such 
title, are repealed.
    (b) Existing Agreements.--Amtrak shall not, after the date of the 
enactment of this Act, be required to provide transportation services 
pursuant to an agreement entered into before such date of enactment 
under the section repealed by subsection (a) of this section.
    (c) State, Regional, and Local Cooperation.--Section 24101(c)(2) of 
title 49, United States Code, is amended by inserting ``, separately or 
in combination,'' after ``and the private sector''.
    (d) Conforming Amendment.--Section 24312(a)(1) of title 49, United 
States Code, is amended by striking ``or 24704(b)(2)''.

SEC. 206. AMTRAK COMMUTER.

    (a) Repeal of Chapter 245.--Chapter 245 of title 49, United States 
Code, and the item relating thereto in the table of chapters of 
subtitle V of such title, are repealed.
    (b) Conforming Amendment.--Section 24301(f) of title 49, United 
States Code, is amended to read as follows:
    ``(f) Tax Exemption for Certain Commuter Authorities.--A commuter 
authority that was eligible to make a contract with Amtrak Commuter to 
provide commuter rail passenger transportation but which decided to 
provide its own rail passenger transportation beginning January 1, 
1983, is exempt, effective October 1, 1981, from paying a tax or fee to 
the same extent Amtrak is exempt.''.
    (c) Trackage Rights Not Affected.--Subsection (a) of this section 
shall not affect any trackage rights held by Amtrak or the Consolidated 
Rail Corporation.

SEC. 207. COMMUTER COST SHARING ON THE NORTHEAST CORRIDOR.

    (a) Determination of Compensation.--(1) Section 24904(c)(2) of 
title 49, United States Code, is amended--
            (A) by striking ``between intercity rail passenger and rail 
        freight transportation'' and inserting ``among intercity rail 
        passenger, commuter rail passenger, and rail freight 
        transportation''; and
            (B) by inserting ``commuter rail carrier or'' after 
        ``Commission shall assign to a''.
    (2) The amendments made by paragraph (1) of this subsection shall 
take effect 2 years after the date of the enactment of this Act.
    (b) Privatization.--Section 24101(d) of title 49, United States 
Code, is amended to read as follows:
    ``(d) Minimizing Government Subsidies.--To carry out this part, 
Amtrak is encouraged to make agreements with the private sector and 
undertake initiatives that are consistent with good business judgment, 
that produce income to minimize Government subsidies, and that promote 
the potential privatization of Amtrak's operations.''.

SEC. 208. ACCESS TO RECORDS AND ACCOUNTS.

    Section 24315 of title 49, United States Code, is amended by adding 
at the end the following new subsection:
    ``(h) Access to Records and Accounts.--A State shall have access to 
Amtrak's records, accounts, and other necessary documents used to 
determine the amount of any payment to Amtrak required of the State.''.

                 TITLE III--EMPLOYEE PROTECTION REFORMS

SEC. 301. SERVICE DISCONTINUANCE.

    (a) Repeal.--Section 24706(c) of title 49, United States Code, is 
amended to read as follows:
    ``(c) Employee Protection.--Notwithstanding any arrangement in 
effect before the enactment of the Amtrak and Local Rail Revitalization 
Act of 1995--
            ``(1) an employee of Amtrak shall be entitled to protective 
        benefits only if deprived of employment as a result of a 
        discontinuance of intercity rail passenger service or other 
        transaction creating an entitlement to such benefits;
            ``(2) the total amount of protective payments shall not 
        exceed 6 months' pay; and
            ``(3) fringe benefits shall not be continued in excess of 6 
        months or the minimum period established by other Federal law 
        for such benefits, whichever is longer.''.
    (b) Intercity Passenger Service Employees.--Section 1165(a) of the 
Northeast Rail Service Act of 1981 (45 U.S.C. 1113(a)) is amended--
            (1) by inserting ``(1)'' before ``After January 1, 1983'';
            (2) by striking ``Amtrak, Amtrak Commuter, and Conrail'' 
        and inserting ``Amtrak and Conrail'';
            (3) by striking ``Such agreement shall ensure'' and all 
        that follows through ``submitted to binding arbitration.''; and
            (4) by adding at the end the following new paragraph:
    ``(2) Notwithstanding any other provision of law, agreement, or 
arrangement, with respect to employees in any class or craft in train 
or engine service, Conrail shall have the right to furlough one such 
employee for each employee in train or engine service who moves from 
Amtrak to Conrail in excess of the cumulative number of such employees 
who move from Conrail to Amtrak. Conrail shall not be obligated to fill 
any position governed by an agreement concerning crew consist, 
attrition arrangements, reserve boards, or reserve engine service 
positions, where an increase in positions is the result of the return 
of an Amtrak employee pursuant to an agreement entered into under 
paragraph (1). Conrail's collective bargaining agreements with 
organizations representing its train and engine service employees shall 
be deemed to have been amended to conform to this paragraph. Any 
dispute or controversy with respect to the interpretation, application, 
or enforcement of this paragraph which has not been resolved within 90 
days after the date of the enactment of this paragraph may be submitted 
by either party to an adjustment board for a final and binding decision 
under section 3 of the Railway Labor Act.''.
    (c) Technical Amendment.--Section 11347 of title 49, United States 
Code, is amended by striking ``sections 24307(c), 24312, and'' and 
inserting ``section''.

                  TITLE IV--USE OF RAILROAD FACILITIES

SEC. 401. LIABILITY LIMITATION.

    (a) Amendment.--Chapter 281 of title 49, United States Code, is 
amended by adding at the end the following new section:
``Sec. 28103. Limitations on rail passenger transportation liability
    ``(a) Limitations.--
            ``(1) Notwithstanding any other statutory or common law or 
        public policy, or the nature of the conduct giving rise to 
        damages or liability, a contract between Amtrak and its 
        passengers, the Alaska Railroad and its passengers, or private 
        railroad car operators and their passengers regarding claims 
        for personal injury, death, or damage to property arising from 
        or in connection with the provision of rail passenger 
        transportation, or from or in connection with any operations 
        over or use of right-of-way or facilities owned, leased, or 
        maintained by Amtrak or the Alaska Railroad, or from or in 
        connection with any rail passenger transportation operations 
        over or rail passenger transportation use of right-of-way or 
        facilities owned, leased, or maintained by any high-speed 
        railroad authority or operator, any commuter authority or 
        operator, or any rail carrier shall be enforceable if--
                    ``(A) punitive or exemplary damages, where 
                permitted, are not limited to less than 2 times 
                compensatory damages awarded to any claimant by any 
                State or Federal court or administrative agency, or in 
                any arbitration proceeding, or in any other forum or 
                $250,000, whichever is greater;
                    ``(B) passengers are provided adequate notice of 
                any such contractual limitation or waiver or choice of 
                forum; and
                    ``(C) passengers are given an opportunity to 
                purchase supplemental insurance coverage when a ticket 
                is purchased or at point of departure.
            ``(2) For purposes of this subsection, the term `claim' 
        means a claim made directly or indirectly--
                    ``(A) against Amtrak, any high-speed railroad 
                authority or operator, any commuter authority or 
                operator, or any rail carrier including the Alaska 
                Railroad or private rail car operators; or
                    ``(B) against an affiliate engaged in railroad 
                operations, officer, employee, or agent of, Amtrak, any 
                high-speed railroad authority or operator, any commuter 
                authority or operator, or any rail carrier.
            ``(3) Notwithstanding paragraph (1)(A), if, in any case in 
        which death was caused, the law of the place where the act or 
        omission complained of occurred provides, or has been construed 
        to provide, for damages only punitive in nature, a claimant may 
        recover in a claim limited by this subsection for actual or 
        compensatory damages measured by the pecuniary injuries, 
        resulting from such death, to the persons for whose benefit the 
        action was brought, subject to the provisions of paragraph 
        (1)(B).
    ``(b) Effect on Other Laws.--This section shall not affect the 
damages that may be recovered under the Act of April 27, 1908 (45 
U.S.C. 51 et seq.; popularly known as the `Federal Employers' Liability 
Act') or under any workers compensation act.''.
    (b) Conforming Amendment.--The table of sections of chapter 281 of 
title 49, United States Code, is amended by adding at the end the 
following new item:

``28103. Limitations on rail passenger transportation liability.''.

                       TITLE V--FINANCIAL REFORMS

SEC. 501. AMTRAK FINANCIAL GOALS.

    Section 24101(d) of title 49, United States Code, is amended by 
adding at the end thereof the following: ``Within 90 days after the 
date of enactment of the Amtrak and Local Rail Revitalization Act of 
1995, Amtrak shall prepare a financial plan to operate within the 
funding levels authorized by section 24104 of this chapter, including 
budgetary goals for fiscal years 1995 through 1997. Commencing no later 
than the fiscal year following the fifth anniversary of the enactment 
of the Amtrak and Local Rail Revitalization Act of 1995, Amtrak shall 
operate without the need for any Federal operating grant funds 
appropriated for its benefit. The plan shall include internal reforms 
to maximize cost savings through overhead reduction and productivity 
improvement, steps to maximize revenue, implementation of a 
commercially rationalized national route system, and achievement 
through negotiation of substantial reductions in costs directly 
relating to health and welfare plans, train and engine crew size 
requirements, and mechanical workforce inefficiencies. Each year before 
the fifth anniversary of the date of enactment of the Amtrak and Local 
Rail Revitalization Act of 1995, the Amtrak Reform Council shall submit 
to the Congress a progress report outlining the likelihood that Amtrak 
will not require Federal operating grants after that anniversary.''.

SEC. 502. AMTRAK SUNSET TRIGGER.

    Section 24104 of title 49, United States Code, is amended by adding 
at the end thereof the following:
    ``(g) Sunset Trigger.--
            ``(1) Following the third anniversary of the enactment of 
        the Amtrak and Local Rail Revitalization Act of 1995, the 
        Amtrak Reform Council shall review the progress Amtrak has made 
        under its plan to achieve the financial goals specified in 
        section 24101(d), and determine on the basis of performance 
        under the plan the likelihood that Amtrak will not require 
        Federal operating grant funds appropriated for its benefit 
        after the fifth anniversary of the enactment of that Act. The 
        Amtrak Reform Council will submit a report on its findings and 
        determinations, and the action plan recommended for 
        implementation by the Secretary and Amtrak under section 601 of 
        that Act to the Congress 90 days after the third anniversary of 
        the enactment of that Act. Authorizations for appropriations 
        made by this section for fiscal years beginning after the 
        submission of the report to the Congress pursuant to this 
        subsection are conditioned on Amtrak achieving the targets in 
        its plan and findings that Amtrak will not require Federal 
        operating grant funds to be appropriated for its benefit in 
        fiscal years following the fifth anniversary of the enactment 
        of that Act.
            ``(2) In determining whether Amtrak has met the targets in 
        its plans and the likelihood that it will not require a Federal 
        operating subsidy for fiscal years beginning after the fifth 
        anniversary of the date of enactment of the Amtrak and Local 
        Rail Revitalization Act of 1995, the Amtrak Reform Council 
        shall take into account Acts of God, national emergencies, and 
        other events beyond the reasonable control of Amtrak.
            ``(3) If the Amtrak Reform Council finds that--
                    ``(A) Amtrak--
                            ``(i) has met the financial goals 
                        anticipated for it at the end of 3 years, 
                        taking into account the factors in paragraph 
                        (2), and
                            ``(ii) will be able to maintain a national 
                        passenger rail system which provides access to 
                        all areas of the country without Federal 
                        operational support,
                then the Secretary and Amtrak shall implement the 
                Amtrak plan developed under section 601(b)(6)(A) of the 
                Amtrak and Local Rail Revitalization Act of 1995 
                providing the continued operation of Amtrak unless the 
                Congress disapproves the plan within 45 days after it 
                is submitted to the Congress; or
                    ``(B) Amtrak has failed to meet the financial goals 
                anticipated for it at the end of 3 years, taking into 
                account the factors in paragraph (2), then the 
                Secretary and Amtrak shall implement the Amtrak sunset 
                plan developed under section 601(b)(6)(B) of that Act 
                providing for the complete liquidation of Amtrak, 
                unless the Congress disapproves the plan within 45 days 
                after it is submitted to the Congress.
            ``(4) The annual report of the Amtrak Reform Council shall 
        include an assessment of progress on the resolution or status 
        of productivity issues, including--
                    ``(A) train and engine manning requirements;
                    ``(B) utilization of employees in the mechanical 
                operations;
                    ``(C) health and welfare benefits and plan design;
                    ``(D) management efficiency improvement;
                    ``(E) property utilization and management;
                    ``(F) revenue enhancement and ridership;
                    ``(G) Amtrak's operation as a national passenger 
                rail system which provides access to all areas of the 
                country and ties together existing and emerging 
                regional rail passenger networks and other intermodal 
                passenger service;
                    ``(H) technology utilization; and
                    ``(I) procurement reforms.''.

SEC. 503. DISBURSEMENT OF FEDERAL FUNDS; GRANT RELEASE DATE.

    Section 24104(d) of title 49, United States Code, is amended to 
read as follows:
    ``(d) Administration of Appropriations.--Funds appropriated 
pursuant to this section shall be provided to Amtrak upon appropriation 
when requested by Amtrak. Notwithstanding any agreement to the 
contrary, funds that have been appropriated to the Secretary for use in 
implementing the Northeast Corridor Improvement Project prior to 
September 30, 1995, shall be made immediately available to Amtrak for 
use in undertaking the improvements authorized by chapter 249 of this 
title.''.

SEC. 504. TRANSFER OF EXCESS RAILROAD TAXES.

    Section 24301 of title 49, United States Code, as amended by 
section 202 of this Act, is amended by adding at the end thereof the 
following new subsection:
    ``(p) Tax Relief.--
            ``(1) In general.--To the extent funds are appropriated 
        pursuant to paragraph (3) of this subsection, Amtrak shall, 
        effective October 1, 1995, be relieved from any liability or 
        obligation to pay--
                    ``(A) tax liabilities under section 3221 of the 
                Internal Revenue Code of 1986 that are more than the 
                amount needed for benefits for individuals who retire 
                from Amtrak and for their beneficiaries; and
                    ``(B) obligations of Amtrak under section 8(a) of 
                the Railroad Unemployment Insurance Act (45 U.S.C. 
                358(a)) that are more than obligations of Amtrak 
                calculated on an experience-related basis.
        ``(2) Scope.--
                    ``(A) Employee classification.--In determining 
                Amtrak's liabilities or obligations under the 
                provisions of law to which reference is made in 
                paragraph (1), workers not on Amtrak's employee roster 
                shall not be classified as Amtrak's employees.
                    ``(B) No reduction of benefit.--Nothing in this 
                subsection shall be construed as a basis for reducing 
                any benefit payable to any railroad employee, retiree, 
                or beneficiary.
                    ``(C) Residual liability.--Amtrak remains liable 
                for any obligations not paid under paragraph (3).
            ``(3) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary amounts 
        necessary to relieve Amtrak of portions of its liabilities 
        under section 3221 of the Internal Revenue Code of 1086 and 
        section 8(a) of the railroad Unemployment Insurance Act, as 
        provided in paragraph (1) of this subsection, up to the 
        estimated amount of such portions in each calendar year. To the 
        extent funds are appropriated pursuant to this paragraph, 
        Amtrak is relieved of such liabilities. Appropriations to the 
        Secretary which have been authorized by this subsection shall 
        be paid in the same manner as tax liabilities or obligations 
        from which Amtrak has not been relieved. Amounts appropriated 
        under this subsection shall not be considered a United States 
        Government subsidy of Amtrak.''.

SEC. 505. REPORTS AND AUDITS.

    Section 24315 of title 49, United States Code, as amended by 
section 208, is amended--
            (1) by striking subsections (a) and (c);
            (2) by redesignating subsections (b), (d), (e), (f), (g), 
        and (h) as subsections (a), (b), (c), (d), (e), and (f) 
        respectively; and
            (3) in subsection (d), as so redesignated by paragraph (2) 
        of this section, by striking ``(d) or (e)'' and inserting ``(b) 
        or (c)''.

SEC. 506. OFFICERS' PAY.

    Section 24303(b) of title 49, United States Code, is amended by 
adding at the end the following: ``The preceding sentence shall not 
apply for any fiscal year for which no Federal operating assistance is 
provided to Amtrak.''.

SEC. 507. EXEMPTION FROM TAXES.

    (a) In General.--Section 24301(l)(1) of title 49, United States 
Code, is amended--
            (1) by inserting ``, and any passenger or other customer of 
        Amtrak or such subsidiary,'' after ``subsidiary of Amtrak'';
            (2) by striking ``or fee imposed'' and all that follows 
        through ``levied on it'' and inserting ``, fee, head charge, or 
        other charge, imposed or levied by a State, political 
        subdivision, or local taxing authority, directly or indirectly 
        on Amtrak, a rail carrier subsidiary of Amtrak, or on persons 
        traveling in intercity rail passenger transportation or on mail 
        or express transportation provided by Amtrak or such a 
        subsidiary, or on the carriage of such persons, mail, or 
        express, or on the sale of any such transportation, or on the 
        gross receipts derived therefrom''; and
            (3) by striking the last sentence and inserting the 
        following: ``Amtrak is not exempt from a tax or fee it was 
        required to pay as of September 10, 1982, if that tax or fee 
was assessed before April 1, 1995.''.
    (b) Effective Date.--The amendments made by subsection (a) do not 
apply to sales taxes imposed on intrastate travel as of the date of 
enactment of this Act.

                        TITLE VI--MISCELLANEOUS

SEC. 601. AMTRAK REFORM COUNCIL.

    (a) Establishment.--There is established an independent commission 
to be known as the Amtrak Reform Council.
    (b) Duties.--The Council shall--
            (1) evaluate Amtrak's performance and report thereon 
        annually to the Congress;
            (2) prepare an analysis and critique of Amtrak's business 
        plan;
            (3) suggest strategies for further cost containment and 
        productivity improvements, including strategies with the 
        potential for further reduction in Federal operating subsidies;
            (4) consider the merits, costs, and service implications of 
        the partial or complete privatization of Amtrak's operations;
            (5) recommend appropriate methods for adoption of uniform 
        cost and accounting procedures throughout the Amtrak system, 
        based on generally accepted accounting principles; and
            (6) either--
                    (A) develop, and submit to the Congress, an action 
                plan for Amtrak, to take effect not later than the 
                fiscal year beginning after the fifth anniversary of 
                the date of enactment of this Act in the event that the 
                Amtrak sunset is not triggered under section 24104(g) 
                of title 49, United States Code; or
                    (B) develop, and submit to the Congress, an action 
                plan for complete liquidation of Amtrak no later than 
                the fifth anniversary of the date of enactment of this 
                Act in the event Amtrak sunset is triggered under 
                section 24104(g) of title 49, United States Code.
    (c) Membership.--(1)(A) The Council shall consist of 8 members 
appointed by the President, by and with the advise and consent of the 
Senate.
    (B) The President shall transmit to the Senate the nominations for 
appointment to the Commission within 90 days after the date of 
enactment of this Act.
    (C) Members shall serve for terms of 5 years.
    (2) Appointments under paragraph (1) shall be made from among 
individuals who--
            (A) have technical qualification, professional standing, 
        and demonstrated expertise in the fields of transportation, 
        rail labor, and corporate management; and
            (B) are not employees of Amtrak, employees of the United 
        States, or representatives of rail labor or rail management.
    (3) In selecting individuals for nominations for appointment to the 
Council, the President shall consult with--
            (A) the Speaker of the House of Representatives concerning 
        the appointment of 2 members;
            (B) the majority leader of the Senate concerning the 
        appointment of 2 members;
            (C) the minority leader of the House of Representatives 
        concerning the appointment of 1 member; and
            (D) the minority leader of the Senate concerning the 
        appointment of 1 member.
    (4) At the time the President nominates individuals for appointment 
to the Council, the President shall designate one such individual as 
Chairman. The Chairman shall serve as chairman until the confirmation 
of his successor.
    (5) If a vacancy occurs other than by the expiration of a term, the 
individual appointed to fill the vacancy shall serve only for the 
unexpired portion of the term for which that individual's predecessor 
was appointed.
    (d) Meetings.--
            (1) Each meeting of the Council, other than meetings in 
        which proprietary information is to be discussed, shall be open 
        to the public.
            (2) All proceedings, information, and deliberations of the 
        Council shall be open, upon request, to the Chairman and the 
        ranking minority party member of the Subcommittee on Surface 
        Transportation of the Committee on Commerce, Science, and 
        Transportation of the Senate or such other members of the 
        subcommittee designated by the chairman or ranking minority 
        party member.
    (e) Travel Expenses.--Each member of the Council shall serve 
without pay, but shall receive travel expenses, including per diem in 
lieu of subsistence, in accordance with sections 5702 and 5703 of title 
5, United States Code.
    (f) Administrative Support.--The Secretary of Transportation shall 
provide to the Council such administrative support as the Council 
requires to carry out this section.
    (g) Access to Information.--Amtrak shall make available to the 
Council all information the Council requires to carry out this section. 
The Council shall establish appropriate procedures to ensure against 
the public disclosure of any information obtained under this subsection 
which is a trade secret or commercial or financial information that is 
privileged or confidential.
    (h) Status.--The Council shall not be subject to the Federal 
Advisory Committee Act (5 U.S.C. App.) or section 552 of title 5, 
United States Code (commonly referred to as the Freedom of Information 
Act).

SEC. 602. PRINCIPAL OFFICE AND PLACE OF BUSINESS.

    Section 24301 of title 49, United States Code, is amended--
            (1) by striking the first sentence of subsection (b);
            (2) by striking ``District of Columbia'' in subsection (b) 
        and inserting ``State in which its principal office and place 
        of business is located'';
            (3) by adding at the end of subsection (b) the following: 
        ``For purposes of this subsection, the term `State' includes 
        the District of Columbia. Notwithstanding section 3 of the 
        District of Columbia Business Corporation Act, Amtrak may, at 
        its election, continue to be organized under the provisions of 
        that Act.''; and
            (4) by striking ``the District of Columbia Business 
        Corporation Act (D.C. Code Sec.  29-301 et seq.)'' in 
        subsection (e) and inserting ``the corporate law of the State 
        in which it is incorporated''.

SEC. 603. STATUS AND APPLICABLE LAWS.

    Section 24301 of title 49, United States Code, is amended--
            (1) by striking ``rail carrier under section 10102'' in 
        subsection (a)(1) and inserting ``railroad carrier under 
        section 20102(2) and chapters 261 and 281''; and
            (2) by amending subsection (c) to read as follows:
    ``(c) Application of Subtitle IV.--Subtitle IV of this title shall 
not apply to Amtrak, except for sections 11303, 11342(a), 11504(a) and 
(d), and 11707. Notwithstanding the preceding sentence, Amtrak shall 
continue to be considered an employer under the Railroad Retirement Act 
of 1974, the Railroad Unemployment Insurance Act, and the Railroad 
Retirement Tax Act.''.

SEC. 604. WASTE DISPOSAL.

    Section 24301(m)(1)(A) of title 49, United States Code, is amended 
by striking ``1996'' and inserting ``2001''.

SEC. 605. ASSISTANCE FOR UPGRADING FACILITIES.

    Section 24310 of title 49, United States Code, and the item 
relating thereto in the table of sections of chapter 243 of such title, 
are repealed.

SEC. 606. RAIL SAFETY SYSTEM PROGRAM.

    Section 24313 of title 49, United States Code, and the item 
relating thereto in the table of sections of chapter 243 of such title, 
are repealed.

SEC. 607. DEMONSTRATION OF NEW TECHNOLOGY.

    Section 24314 of title 49, United States Code, and the item 
relating thereto in the table of sections of chapter 243 of such title, 
are repealed.

SEC. 608. NORTHEAST CORRIDOR IMPROVEMENT PROJECT.

    Section 24902 of title 49, United States Code, is amended by adding 
at the end the following new subsection:
    ``(m) Applicable Procedures.--For the purpose of any State or local 
requirement for permit or other approval for construction or operation 
of any improvement undertaken by or for the benefit of Amtrak as part 
of, or in furtherance of, the Northeast Corridor Improvement Project, 
or chapter 241, 243, or 247 of this title, the exemptions and 
procedures applicable to a project undertaken by the Federal Government 
or an agency thereof shall apply. The preceding sentence shall not 
apply to any project initiated in any fiscal year for which Amtrak 
receives no Federal operating subsidy.''.

SEC. 609. PROGRAM MASTER PLAN FOR BOSTON-NEW YORK MAIN LINE.

    (a) Repeal.--Section 24903 of title 49, United States Code, is 
repealed and the table of sections for chapter 249 of such title is 
amended by striking the item relating to that section.
    (b) Conforming Amendments.--
            (1) Section 24902 of title 49, United States Code, as 
        amended by section 608 of this Act, is amended by striking 
        subsections (a), (c), and (d) and redesignating subsection (b) 
        as subsection (a) and subsections (e) through (m) as 
        subsections (b) through (j), respectively.
            (2) Section 24904(a)(8) is amended by striking ``the high-
        speed rail passenger transportation area specified in section 
        24902(a)(1) and (2)'' and inserting ``a high-speed rail 
        passenger transportation area''.

SEC. 610. AMERICANS WITH DISABILITIES ACT OF 1990.

    (a) Application to Amtrak.--Amtrak shall not be subject to any 
requirement under subsections (a)(1) and (3) and under subsection 
(e)(2) of section 242 of the Americans With Disabilities Act of 1990 
(42 U.S.C. 12162) until--
            (1) January 1, 1998, for subsections (a)(1) and (3); and
            (2) October 15, 2001, for subsection (e)(2).
    (b) Conforming Amendment.--Section 24307 of title 49, United States 
Code, is amended--
            (1) by striking subsection (b); and
            (2) by redesignating subsection (c) as subsection (b).

SEC. 611. DEFINITIONS.

    Section 24102 of title 49, United States Code, is amended--
            (1) by striking paragraphs (2) and (11);
            (2) by redesignating paragraphs (3) through (8) as 
        paragraphs (2) through (7), respectively;
            (3) by inserting ``, including a unit of State or local 
        government,'' after ``means a person'' in paragraph (7), as so 
        redesignated; and
            (4) by inserting after paragraph (7), as so redesignated, 
        the following new paragraph:
            ``(8) `rail passenger transportation' means the interstate, 
        intrastate, or international transportation of passengers by 
        rail, including mail and express.''.

SEC. 612. NORTHEAST CORRIDOR COST DISPUTE.

    Section 1163 of the Northeast Rail Service Act of 1981 (45 U.S.C. 
1111) is repealed.

SEC. 613. INSPECTOR GENERAL ACT OF 1978 AMENDMENT.

    (a) Amendment.--
            (1) In general.--Section 8G(a)(2) of the Inspector General 
        Act of 1978 (5 U.S.C. App.) is amended by striking ``Amtrak,''.
            (2) Effective date.--The amendment made by paragraph (1) 
        takes effect in the first fiscal year for which Amtrak receives 
        no Federal operating subsidy.
    (b) Amtrak Not a Federal Entity.--Amtrak shall not be considered a 
Federal entity for purposes of the Inspector General Act of 1978. The 
preceding sentence shall apply for any fiscal year for which Amtrak 
receives no Federal operating subsidy.

SEC. 614. CONSOLIDATED RAIL CORPORATION.

    Section 4023 of the Conrail Privatization Act (45 U.S.C. 1323), and 
the item relating thereto in the table of contents of such Act, are 
repealed.

SEC. 615. INTERSTATE RAIL COMPACTS.

    (a) Consent to Compacts.--Congress grants consent to States with an 
interest in a specific form, route, or corridor of intercity passenger 
rail service (including high speed rail service) to enter into 
interstate compacts to promote the provision of the service, 
including--
            (1) retaining an existing service or commencing a new 
        service;
            (2) assembling rights-of-way; and
            (3) performing capital improvements, including--
                    (A) the construction and rehabilitation of 
                maintenance facilities;
                    (B) the purchase of locomotives; and
                    (C) operational improvements, including 
                communications, signals, and other systems.
    (b) Financing.--An interstate compact established by States under 
subsection (a) may provide that, in order to carry out the compact, the 
States may--
            (1) accept contributions from a unit of State or local 
        government or a person;
            (2) use any Federal or State funds made available for 
        intercity passenger rail service (except funds made available 
        for the National Railroad Passenger Corporation);
            (3) on such terms and conditions as the States consider 
        advisable--
                    (A) borrow money on a short-term basis and issue 
                notes for the borrowing; and
                    (B) issue bonds; and
            (4) obtain financing by other means permitted under Federal 
        or State law.

               TITLE VII--AUTHORIZATION OF APPROPRIATIONS

SEC. 701. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Section 24104(a) of title 49, United States Code, 
is amended to read as follows:
    ``(a) In General.--There are authorized to be appropriated to the 
Secretary of Transportation--
            ``(1) $772,000,000 for fiscal year 1995;
            ``(2) $712,000,000 for fiscal year 1996;
            ``(3) $712,000,000 for fiscal year 1997;
            ``(4) $712,000,000 for fiscal year 1998; and
            ``(5) $403,000,000 for fiscal year 1999,
for the benefit of Amtrak for capital expenditures under chapters 243 
and 247 of this title, operating expenses, and payments described in 
subsection (c)(1)(A) through (C). In fiscal years following the fifth 
anniversary of the enactment of the Amtrak and Local Rail 
Revitalization Act of 1995 no funds authorized for Amtrak shall be used 
for operating expenses.''.
    (b) Additional Authorizations.--Section 24104(b) of title 49, 
United States Code, is amended to read as follows:
    ``(b) Additional Authorizations.--In addition to amounts 
appropriated under subsection (a), there are authorized to be 
appropriated to the Secretary of Transportation--
            ``(1) $200,000,000 for fiscal year 1995;
            ``(2) $200,000,000 for fiscal year 1996;
            ``(3) $200,000,000 for fiscal year 1997;
            ``(4) $200,000,000 for fiscal year 1998; and
            ``(5) $200,000,000 for fiscal year 1999,
for the benefit of Amtrak to make capital expenditures under chapter 
249 of this title.''.
    (c) Conforming Amendments.--Section 24909 of title 49, United 
States Code, and the item relating thereto in the table of sections of 
chapter 249 of such title, are repealed.
    (d) Guarantee of Obligations.--There are authorized to be 
appropriated to the Secretary of Transportation--
            (1) $50,000,000 for fiscal year 1996;
            (2) $50,000,000 for fiscal year 1997;
            (3) $50,000,000 for fiscal year 1998; and
            (4) $50,000,000 for fiscal year 1999,
for guaranteeing obligations of Amtrak under section 511 of the 
Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
831). Notwithstanding any other provision of law to the contrary, the 
proceeds of the obligations guaranteed hereunder may be used for the 
acquisition, rehabilitation, improvement, development, or establishment 
of any intercity rail passenger equipment or facilities or the re-
financing of any of the foregoing. The United States shall be deemed to 
have reasonable protection and security if the Secretary obtains a lien 
or mortgage encumbering such facilities or equipment, which lien or 
mortgage may be subordinated to any mortgages or liens thereon securing 
obligations to a lender or lessor. The Secretary shall not be required 
to make any finding regarding the value or prospective earning power of 
the equipment or facilities or the earning power of the obligor or the 
place where high-speed rail facilities or equipment are mined, 
produced, or manufactured. The obligor may incur the obligations 
guaranteed by the Secretary hereunder without obtaining the consent of 
the Secretary under section 24304(f) of title 49, United States Code. 
The obligations shall have a liquidation interest superior to the 
preferred stock of the obligor issued to the Secretary and may be 
secured by a lien or mortgage on the property of the obligor superior 
to any lien or mortgage held by the Secretary. The Secretary shall not 
require that pre-existing obligations of the obligor be subordinated to 
the rights of the Secretary in the event of a default. The Secretary 
shall act on an application for a guarantee hereunder within 30 days 
after it is submitted.
    (e) Amtrak shall expend capital funds equitably across its national 
passenger rail system on projects deemed necessary to meet its most 
critical operating and capital needs. Priority shall be given to those 
projects which offer significant return on investment and which 
leverage the highest levels of State, local, and private financial 
support.

                 TITLE VIII--AMTRAK REVENUE ENHANCEMENT

SEC. 801. INTERCITY RAIL PASSENGER ACCOUNT.

    (a) In General.--Chapter 243 of title 49, United States Code, is 
amended by adding at the end thereof the following new section:
``Sec. 24316. Intercity Rail Passenger Account
    ``(a) Establishment.--Amtrak shall establish an Intercity Rail 
Passenger Account. Amounts deposited in this account shall be available 
for use by Amtrak to--
            ``(1) acquire passenger equipment and locomotives;
            ``(2) encourage State and local investment in facilities 
        and equipment used to provide intercity rail passenger 
        transportation; and
            ``(3) address other critical capital priorities.
    ``(b) Deposits.--During fiscal years 1995 through 1999, Amtrak 
shall deposit amounts equal in the aggregate to 5 percent of ticket 
revenue for that 5 fiscal year period into the Intercity Rail Passenger 
Account and may deposit into the Account--
            ``(1) payments received for the use of its equipment or 
        facilities;
            ``(2) claims recovered by Amtrak;
            ``(3) amounts from any other source to the extent 
        authorized by law; and
            ``(4) amounts received by Amtrak as refunds of taxes on the 
        fuel required for its operations.''.
    (b) Clerical Amendment.--The table of sections for chapter 243 of 
such title is amended by adding at the end thereof the following:

                                  ``24316. Intercity Rail Passenger 
                                            Account''.

SEC. 802. UNION STATION STATE OF GOOD REPAIR.

    In lieu of payments to the Secretary of Transportation for loan 
repayments, the Union Station Redevelopment Corporation shall make an 
equal payment into a capital reserve account to maintain Washington 
Union Station in a state of good repair.

SEC. 803. COMMERCIAL DIVERSIFICATION.

    (a) In General.--Amtrak may increase non-Federal revenues through--
            (1) the sale of concessions and the use of vending machines 
        and video and audio entertainment on trains;
            (2) the sale of advertising space on trains and in rail 
        stations;
            (3) use of telecommunications networks or infrastructure; 
        and
            (4) other creative marketing and services activities.
    (b) Applicable Laws.--Section 24301 of title 49, United States 
Code, as amended by section 504 of this Act, is amended by adding at 
the end thereof the following:
    ``(q) Power Purchases.--The sale of power to Amtrak for its own 
use, including operating its electric traction system, does not 
constitute a direct sale of electric energy to an ultimate consumer 
under section 212(h)(1) of the Federal Power Act (16 U.S.C. 
824k(h)(1)).
    ``(r) Power Sales to Commuter Authorities and Others.--A state or 
other law, rule, regulation, order, or standards relating to the 
licensing, rates, terms, and conditions of sales of electric energy at 
retail does not apply to Amtrak in making sales of electric energy from 
its electric power transmission and distribution system to commuter 
authorities and other consumers of electricity.
    ``(s) Transmission Service.--Any entity selling power to Amtrak for 
its own use or to be resold by Amtrak to Commuter authorities or other 
consumers of electricity may seek an order under section 211(a) of the 
Federal Power Act (16 U.S.C. 824j(a)) requiring a utility to provide 
transmission service for this power without regard to any restrictions 
in subsections (g) and (h) of section 212 of such Act (16 U.S.C. 
824k).''.
    (c) Definition of Amtrak.--Section 24102 of title 49, United States 
Code, is amended by redesignating paragraphs (1) through (11) as (2) 
through (12), respectively, and by inserting before paragraph (2), as 
so redesignated, the following:
            ``(1) `Amtrak' means the National Railroad Passenger 
        Corporation and any successor, assign, subsidiary, affiliate, 
        or joint venture in which that Corporation has a material 
        interest.''.
    (d) Authority to Sell Surplus Power.--Section 24305 of title 49, 
United States Code, is amended by adding at the end the following:
    ``(g) Sale of Surplus Power.--Whenever Amtrak owns electric energy 
or power transmission capacity that is surplus to its traction power 
needs, it may sell such power at wholesale or retail to any purchaser, 
sell power transmission services, seek interconnection under section 
210 of the Federal Power Act (16 U.S.C. 824i), and enter into 
coordination, power pooling, and other arrangements with electric 
utilities designed to increase Amtrak's revenues or decrease its 
costs.''.
    (e) Conforming Amendment.--Section 212(h)(2)(A) of the Federal 
Power Act (16 U.S.C. 824k(h)(2)(A)) is amended by inserting ``Amtrak;'' 
after ``a State or any political subdivision of a State (or an agency, 
authority or instrumentality of a State or any political subdivision of 
a State);''.

             TITLE IX--PRESERVATION OF RAIL INFRASTRUCTURE

SEC 901. SHORT TITLE.

    This title may be cited as the ``Rail Infrastructure Preservation 
Act of 1995''.

SEC. 902. LOCAL RAIL FREIGHT ASSISTANCE; AUTHORIZATION OF 
              APPROPRIATIONS.

    Section 22108 of title 49, United States Code, is amended--
            (1) by striking out so much of subsection (a) as precedes 
        paragraph (2) and inserting the following:
    ``(a) In General.--
            ``(1) There is authorized to be appropriated to the 
        Secretary of Transportation to carry out this chapter the sum 
        of $25,000,000 for the fiscal year ending September 30, 1996, 
        and for each subsequent fiscal year.''; and
            (2) by striking subsection (a)(3).

SEC. 903. DISASTER FUNDING FOR RAILROADS.

    Section 22101 of title 49, United States Code, is amended by 
redesignating subsection (d) as (e), and by inserting after subsection 
(c) the following:
    ``(d) Disaster Funding for Railroads.--
            ``(1) The Secretary may declare that a disaster has 
        occurred and that it is necessary to repair and rebuild rail 
        lines damaged as a result of such disaster. If the Secretary 
        makes the declaration under this paragraph, the Secretary may--
                    ``(A) waive the requirements of this section; and
                    ``(B) prescribe the form and time for applications 
                for assistance made available herein.
            ``(2) The Secretary may not provide assistance under this 
        subsection unless emergency disaster relief funds are 
        appropriated for that purpose.
            ``(3) Funds provided for under this subsection shall remain 
        available until extended.''.

SEC. 904. GRADE-CROSSING ELIGIBILITY.

    Section 22101(a) of title 49, United States Code, is amended--
            (1) by striking ``and'' after the semicolon in paragraph 
        (2);
            (2) by striking the period at the end of paragraph (3) and 
        inserting a semicolon; and
            (3) by adding at the end thereof the following new 
        paragraphs:
            ``(4) the cost of closing or improving a railroad grade 
        crossing or series of railroad grade crossings; and
            ``(5) the cost of creating a State-supervised grain car 
        pool.''.

SEC. 905. DECLARATION OF POLICY.

    Section 101(a) of the Railroad Revitalization and Regulatory Reform 
Act of 1976 (45 U.S.C. 801(a)(4)) is amended to read as follows:
            ``(4) continuation of service on, or preservation of, light 
        density lines that are necessary to continued employment and 
        community well-being throughout the United States;''.

SEC. 906. RAILROAD LOAN GUARANTEES; MAXIMUM RATE OF INTEREST.

    Section 511(f) of the Railroad Revitalization and Regulatory Reform 
Act of 1976 (45 U.S.C. 831(f)) is amended by striking ``shall not 
exceed an annual percentage rate which the Secretary determines to be 
reasonable, taking into consideration the prevailing interest rates for 
similar obligations in the private market.'' and inserting ``shall not 
exceed the annual percentage rate charged equivalent to the cost of 
money to the Federal government.''.

SEC. 907. RAILROAD LOAN GUARANTEES; MINIMUM REPAYMENT PERIOD AND 
              PREPAYMENT PENALTIES.

    Section 511(g)(2) of the Railroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 831(g)(2)) is amended to read as follows:
            ``(2) payment of the obligation is required by its terms to 
        be made not less than 15 years and not more than 25 years from 
        the date of its execution, with no penalty imposed for 
        prepayment after 5 years;''.

SEC. 908. RAILROAD LOAN GUARANTEES; DETERMINATION OF REPAYABILITY.

    Section 511(g)(5) of the Railroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 831(g)(5)) is amended to read as follows:
            ``(5) either the loan can reasonably be repaid by the 
        applicant or the loan is collaterallized at no more than the 
        current value of assets being financed under this section to 
        provide protection to the United States;''.

SEC. 909. RAILROAD LOAN GUARANTEES; RIGHTS OF SECRETARY.

    Section 511(i) of the Railroad Revitalization and Regulatory Reform 
Act of 1976 (45 U.S.C. 831(i)) is amended by adding at the end the 
following:
            ``(4) The Secretary shall not require, as a condition for 
        guarantee of an obligation, that all preexisting secured 
        obligations of an obligor be subordinated to the rights of the 
        Secretary in the event of a default.''.

                     TITLE X--FISCAL REVITALIZATION

SEC. 1001. ON-TIME PERFORMANCE INCENTIVES.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended--
            (1) by redesignating section 137 as 138; and
            (2) by inserting after section 136 the following:

``SEC. 137. INCENTIVE PAYMENTS FOR ON-TIME PERFORMANCE.

    ``Gross income does not include payments received by a railroad as 
an incentive for the on-time operation of intercity passenger 
trains.''.
    (b) The table of sections for such part is amended by striking the 
item relating to section 137 and inserting the following:

                                  ``Sec. 137. On-time performance 
                                            incentives.
                                  ``Sec. 138. Cross references to 
                                            other Acts.''.

SEC. 1002. PAYMENT TO THE INTERCITY RAIL PASSENGER ACCOUNT OF EXCISE 
              TAXES ON FUEL.

    Section 6427 of the Internal Revenue Code of 1986 (relating to 
fuels not used for taxable purposes) is amended by redesignating 
subsection (r) as subsection (s) and by inserting after subsection (q) 
the following:
    ``(r) Amtrak Intercity Passenger Trains.--The Secretary shall pay 
(without interest) to the Intercity Rail Passenger Account established 
by section 24316 of title 49, United States Code, the amount of tax 
paid by Amtrak under chapter 31 or 32 on any fuel used in the operation 
of intercity passenger trains. For purposes of subsection (k)(1) of 
this section, payment to the Intercity Rail Passenger Account shall be 
considered to be a payment described in subsection (k)(1)(A).''.

SEC. 1003. FUNDING FOR THE NATIONAL RAILROAD PASSENGER CORPORATION FROM 
              THE MASS TRANSIT ACCOUNT.

    Section 9503(e) of the Internal Revenue Code of 1986 (relating to 
establishment of mass transit account) is amended by adding at the end 
thereof the following:
            ``(6) Transfers to the intercity rail passenger account.--
        Notwithstanding any other provision of law to the contrary, the 
        Secretary shall transfer from the Mass Transit Account to the 
        Intercity Rail Passenger Account established under section 
        24316 of title 49, United States Code, the intercity rail 
        passenger portion of the amounts appropriated under subsection 
        (b) of this section which are attributable to taxes under 
        sections 4041 and 4081 imposed on or after October 1, 1995. The 
        intercity rail passenger portion is appropriated for the 
        benefit of Amtrak for expenditure in accordance with the 
        provisions of such section 24316. For purposes of this 
        paragraph, the term `intercity rail passenger portion' means 
        the amount attributable to 0.5 cent per gallon of the 2 cents 
        per gallon to be transferred to the Mass Transit Account 
        pursuant to paragraph (2) of this subsection. The Secretary 
        shall transfer such funds at the end of each quarter of a 
        fiscal year.''.

SEC. 1004. SAFEHARBOR LEASING OF INTERCITY RAIL PASSENGER EQUIPMENT AND 
              FACILITIES.

    (a) In General.--Section 168 of the Internal Revenue Code of 1986 
(relating to accelerated cost recovery system) is amended by adding at 
the end thereof the following new subsection:
    ``(k) Leased Property Used in the Provision of Intercity Rail 
Passenger Service.--
            ``(1) In general.--In the case of an agreement with respect 
        to qualified leased property, if all of the parties to the 
        agreement characterize such agreement as a lease and elect to 
        have the provisions of this subsection apply with respect to 
        such agreement, and if the requirements of paragraph (2) are 
        met, then, for purposes of this subtitle, such agreement shall 
        be treated as a lease entered into by the parties in the course 
        of carrying on a trade or business and the lessor shall be 
        treated as the owner of the property and the lessee shall be 
        treated as the lessee of the property.
            ``(2) Certain requirements must be met.--The requirements 
        of this subsection are met if the minimum investment of the 
        lessor at the time the property is first placed in service 
        under the lease and at all times during the lease term is not 
        less than 10 percent of the adjusted basis of such property and 
        the term of the lease (including any extensions) does not 
        exceed the greater of 90 percent of the useful life of such 
        property or 150 percent of the class life of such property.
            ``(3) No other factors taken into account.--If the 
        requirements of paragraphs (1) and (2) are met with respect to 
        any transaction described in paragraph (1), no other factors 
        shall be taken into account in making a determination as to 
        whether paragraph (1) applies with respect to the transaction.
            ``(4) Qualified leased property.--For purposes of this 
        subsection, the term `qualified leased property' means property 
        used in the provision of intercity rail passenger service which 
        was leased within 3 months after such property was placed in 
        service by the lessee and with respect to which the adjusted 
        basis of the lessor does not exceed the adjusted basis of the 
        lessee at the time of the lease.
            ``(5) Minimum investment.--For purposes of paragraph (1), 
        the term `minimum investment' means the amount the lessor has 
        at risk with respect to the property (other than financing from 
        the lessee or a related party of the lessee). For the purposes 
        of the preceding sentence, an agreement between the lessor and 
        lessee requiring either or both parties to purchase or sell the 
        qualified leased property at some price (whether or not fixed 
in the agreement at the end of the lease term) shall not affect the 
amount the lessor is treated as having at risk with respect to the 
property.
            ``(6) Use of private activity bond financing.--A private 
        activity bond issued to finance qualified leased property shall 
        be deemed to be a qualified bond (within the meaning of section 
        141) for the purpose of section 103 and subpart A of part IV of 
        this chapter. Qualified leased property financed by a private 
        activity bond shall not be deemed to be `tax-exempt bond 
        financed property' or `tax-exempt use property' for the purpose 
        of subsection (g).
            ``(7) Characterization by parties.--For purposes of this 
        subsection, any determination as to whether a person is a 
        lessor or lessee, or whether property is leased, shall be made 
        on the basis of the characterization of such person or property 
        under the agreement described in paragraph (1).
            ``(8) Regulations.--The Secretary shall prescribe such 
        regulations as may be necessary to carry out the purposes of 
        this subsection, including regulations consistent with such 
        purposes which limit the aggregate amount of (and timing of) 
        deductions and credits in respect of qualified leased property 
        to the aggregate amount (and the timing) allowable without 
        regard to this subsection.''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to property placed in service after the date of enactment 
of this Act.

SEC. 1005. ISSUANCE OF TAX-EXEMPT DEBT.

    (a) In General.--Section 150 of the Internal Revenue Code of 1986 
(relating to definitions and special rules) is amended by adding at the 
end thereof the following:
    ``(f) Intercity Rail Passenger Bonds.--
            ``(1) In general.--For purposes of this part and section 
        103--
                    ``(A) Treatment as state or local bond.--An 
                intercity rail passenger bond shall be treated as a 
                State or local bond.
                    ``(B) Definition of intercity rail passenger 
                bond.--The term `intercity rail passenger bond' means a 
                bond issued by an intercity passenger railroad created 
                under an Act of Congress (or a related party thereto) 
                95 percent or more of the net proceeds of which are to 
                be used by the issuer (or a related party) in the trade 
                or business of operating an intercity passenger 
                railroad, including the acquisition, construction, 
                reconstruction, or improvement of property to be used 
                for such purposes and other general purposes of the 
                issuer. Issuance of not more than $100,000,000 per year 
                shall be treated as a State or local bond under this 
                section.
                    ``(C) Not federally-guaranteed or private activity 
                bond.--An intercity rail passenger bond shall not be 
                treated as a private activity bond or as Federally 
                guaranteed.
            ``(2) Coordination with other provisions.--
                    ``(A) Treatment of bond-financed property.--
                Property acquired with the proceeds of intercity rail 
                passenger bonds shall not be treated as tax-exempt bond 
                financed property for purposes of section 168.
                    ``(B) Treatment of issuer.--The issuer of such a 
                bond shall not be treated as a tax-exempt entity for 
                any purpose of this title solely because of such 
                issuance.
                    ``(C) Treatment of lease agreements.--An agreement 
                entered into by the issuer of such a bond which 
                otherwise qualifies as a lease of property to the 
                issuer under this title will be treated as a lease, 
                notwithstanding any use of proceeds of the bonds to 
                finance the acquisition of leased property.''.
    (b) Effective Date.--The amendment made by subsection (a) applies 
to bonds issued after the date of enactment of this Act.
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