[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1958 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 1958

 To provide a restructured and rationalized rail passenger system that 
   provides efficient service on viable routes; to eliminate budget 
     deficits and management inefficiencies at Amtrak through the 
      establishment of an Amtrak Control Board; to allow for the 
  privatization of Amtrak; to increase the role of State and private 
  entities in rail passenger service; and, to promote competition and 
             improved rail passenger service opportunities.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 15, 2002

  Mr. McCain introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
 To provide a restructured and rationalized rail passenger system that 
   provides efficient service on viable routes; to eliminate budget 
     deficits and management inefficiencies at Amtrak through the 
      establishment of an Amtrak Control Board; to allow for the 
  privatization of Amtrak; to increase the role of State and private 
  entities in rail passenger service; and, to promote competition and 
             improved rail passenger service opportunities.

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

SECTION 1. SHORT TITLE; AMENDMENT OF TITLE 49; REPAYMENT OBLIGATIONS; 
              TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Rail Passenger 
Service Improvement Act''.
    (b) Amendment of Title 49.--Except as otherwise expressly provided, 
whenever in this Act an amendment or repeal is expressed in terms of an 
amendment to, or a repeal of, a section or other provision, the 
reference shall be considered to be made to a section or other 
provision of title 49, United States Code.
    (c) No Effect on Amtrak Repayment Obligations.--Nothing in this Act 
may be construed to relieve any obligations of Amtrak existing as of 
the date of the enactment of this Act to repay any individual or entity 
from whom Amtrak has borrowed funds.
    (d) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; amendment of title 49; repayment obligations; 
                            table of contents.
Sec. 2. Findings; purpose.
Sec. 3. Purpose and goal of chapter 241 of title 49, United States 
                            Code.
                   TITLE I--THE ROLE OF THE SECRETARY

Sec. 101. Office of rail passenger development and franchising.
Sec. 102. Use of facilities.
                     TITLE II--RESTRUCTURING AMTRAK

                       Subtitle A--Privatization

Sec. 201. Establishment of subsidiaries.
Sec. 202. Redemption of common stock
                Subtitle B--Interim Operations by Amtrak

Sec. 231. Limits on service provision.
                     Subtitle C--Northeast Corridor

Sec. 251. Northeast corridor transfer.
Sec. 252. Care, custody, and control.
Sec. 253. Northeast corridor plan.
Sec. 254. Northeast corridor improvements.
                    TITLE III--AMTRAK CONTROL BOARD

                       Subtitle A--Establishment

Sec. 301. Establishment and organization of Amtrak financial 
                            responsibility and management assistance 
                            authority.
Sec. 302. Executive director and staff of Amtrak control board.
Sec. 303. Powers of Amtrak control board.
Sec. 304. Exemption from liability for claims.
Sec. 305. Treatment of actions arising from Act.
Sec. 306. Funding for operation of Amtrak control board.
Sec. 307. Suspension of activities.
    Subtitle B--Financial Stability and Management Responsibilities

Sec. 331. Amtrak control board responsibilities.
Subtitle C--Establishment and Enforcement of Amtrak Financial Plan and 
                                 Budget

Sec. 351. Development of financial plan and budget for Amtrak.
Sec. 352. Process for submission and approval of financial plan and 
                            annual Amtrak budget.
Sec. 353. Review of activities of Amtrak to ensure compliance with 
                            approved financial plan and budget.
Sec. 354. Restrictions on borrowing by Amtrak during control year.
Sec. 355. Deposit of annual federal payment with Amtrak control board.
Sec. 356. Effect of finding of non-compliance with financial plan and 
                            budget.
Sec. 357. Recommendations on financial stability and management 
                            responsibility.
Sec. 358. Special rules for fiscal year 2002.
Sec. 359. Control period described.
Sec. 360. General assistance in achieving financial stability and 
                            management efficiency.
Sec. 361. Obtaining reports.
Sec. 362. Reports and comments.
Sec. 363. Inspector General review of Amtrak Control Board.
                 Subtitle D--Use of Highway Trust Fund

Sec. 371. Highway Trust Fund Flexibility.
                   TITLE IV--RAIL PASSENGER SECURITY

Sec. 401. Emergency security assistance.
                        TITLE V--APPROPRIATIONS

Sec. 501. Authorization of appropriations.
       TITLE VI--TECHNICAL AND CONFORMING CHANGES IN EXISTING LAW

Sec. 601. Amendments to chapter 241 of title 49, United States Code.
Sec. 602. Amendments to chapter 243 of title 49, United States Code.
Sec. 603. Amendments to chapter 247 of title 49, United States Code.
Sec. 604. Amendments to chapter 249 of title 49, United States Code.
Sec. 605. Amendments to chapter 281 of title 49, United States Code.
Sec. 606. Amendments to the Amtrak Reform and Accountability Act of 
                            1997.

SEC. 2. FINDINGS; PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) Amtrak was established in 1971 by the Rail Passenger 
        Service Act of 1970 and was expected to become self-sustaining 
        within two years.
            (2) Since 1971, Amtrak has received $25 billion in Federal 
        funding to help cover its operating and capital costs and is 
        seeking another $3.2 billion for emergency needs, $1.2 billion 
        annually for ``basic needs'', $5.8 billion to address the 
        system's capital investment backlog, and $12 billion to fund 
        higher speed rail projects.
            (3) The Amtrak Reform and Accountability Act, passed 
        unanimously in 1997, requires that Amtrak become operationally 
        self-sufficient by December 2, 2002.
            (4) A combination of accumulated operating deficits, cash 
        shortages, management inefficiencies, and delay in full 
        implementation of Acela Express service have created a fiscal 
        emergency at Amtrak, with growing and substantial debt 
        obligations totaling over $3.3 billion.
            (5) The Amtrak Reform Council has found that Amtrak will 
        not be operationally self-sufficient by December 2, 2002, as 
        required by law, citing major inherent flaws and weaknesses in 
        Amtrak's institutional design.
            (6) The Department of Transportation Inspector General 
        Report on the 2001 Assessment of Amtrak's Financial Performance 
        and Requirements found that Amtrak suffered operating losses of 
        $1.1 billion, the largest in Amtrak's history, and that Amtrak 
        is no closer to operating self-sufficiency now than it was in 
        1997.
            (7) Amtrak's financial crisis must be addressed by taking 
        visionary actions to improve Amtrak's fiscal management and 
        operational structure which exempts no part of Amtrak.
            (8) Amtrak should be restructured to eliminate its reliance 
        on the American taxpayers and to allow for its privatization.
            (9) A comprehensive reexamination of our nation's rail 
        passenger policy is required and a clearly defined role for the 
        Federal government, States, and private industry must be 
        established.
            (10) The States and private sector must be allowed a 
        greater role in establishing a rail passenger network.
            (11) The nation should be afforded the opportunity to 
        receive safe, efficient and cost-effective rail passenger 
        service.
    (b) Purposes.--The purposes of this Act are--
            (1) to eliminate budget deficits and cash shortages of 
        Amtrak through visionary financial planning, sound budgeting, 
        accurate revenue forecasts, and careful spending;
            (2) to ensure the most efficient and cost effective rail 
        passenger service by Amtrak during a period of fiscal 
        emergency;
            (3) to assist Amtrak in--
                    (A) restructuring its organization and workforce to 
                ensure that the users of intercity rail passenger 
                transportation are served by an operator that is safe 
                and efficient; and
                    (B) modernizing its budget, accounting, personnel, 
                procurement, information technology, and management 
                systems to ensure the maximum financial and performance 
                accountability of Amtrak, its officers, and employees;
            (4) to provide for the review of the financial impact of 
        activities of Amtrak before such activities are implemented or 
        carried out;
            (5) to remedy Amtrak's financial crisis in order to become 
        a viable private entity;
            (6) to ensure States are afforded a greater role in 
        determining the rail passenger network and require a financial 
        commitment to rail passenger service while allowing states to 
        determine where it wishes to invest in rail passenger 
        transportation with the federal transportation dollars it 
        receives; and
            (7) to enable a new, viable intercity rail passenger system 
        to emerge that would be operated in a safe, efficient, and cost 
        effective manner by competing franchises.

SEC. 3. PURPOSE AND GOAL OF CHAPTER 241 OF TITLE 49, UNITED STATES 
              CODE.

    (a) In General.--Section 24101 is amended to read as follows:
``Sec. 24101. Purpose and goal
    ``(a) Purpose.--The purpose of this chapter is to promote the 
provision of intercity rail passenger service where it can play an 
important role in facilitating passenger mobility in the United States.
    ``(b) Goal.--It is the goal of this chapter to ensure that 
intercity rail passenger service is safe, efficient, cost effective, 
and of high quality. In order to achieve this goal, this chapter 
promotes provision of intercity rail passenger service by the private 
sector in those intercity corridors where such service can be supported 
from revenues derived from such service or where the State or local 
government has determined that such service is in the public interest 
and will adequately compensate the private sector entity providing this 
service.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 241 is 
amended by striking the item relating to section 24101 and inserting 
the following:

``24101. Purpose and goal.''.

                   TITLE I--THE ROLE OF THE SECRETARY

SEC. 101. OFFICE OF RAIL PASSENGER DEVELOPMENT AND FRANCHISING.

    (a) Creation of the Office.--
            (1) In general.--The Secretary of Transportation shall 
        create in the Federal Railroad Administration an Office of Rail 
        Passenger Development and Franchising.
            (2) Redesignation allowed.--Nothing in this subsection 
        prevents the Secretary from redesignating an existing Office of 
        the Federal Railroad Administration as the Office of Rail 
        Passenger Development and Franchising.
    (b) Duties.--The Office of Rail Passenger Development and 
Franchising shall provide expert advice and administrative support to 
the Secretary and the Federal Railroad Administrator on the following 
matters:
            (1) Administration of the rail passenger franchising 
        responsibilities of the Secretary under section 24308 of title 
        49, United States Code.
            (2) Undertaking capital improvements to the Northeast 
        Corridor authorized by section 254 of this Act.
            (3) Such other matters as the Secretary or the 
        Administrator may assign to the Office.

SEC. 102. USE OF FACILITIES.

    (a) In General.--Section 24308 is amended--
            (1) by striking ``Amtrak'' in subsection (a)(1) and 
        inserting ``The Secretary or a rail passenger operator acting 
        pursuant to a franchise granted by the Secretary'';
            (2) by striking ``Amtrak;'' in subsection (a)(2)(A)(i) by 
        striking and inserting ``a rail passenger operator acting 
        pursuant to a franchise granted by the Secretary;'';
            (3) by striking ``Amtrak'' in subsection (a)(2)(C) and 
        inserting ``a rail passenger operator acting pursuant to a 
        franchise granted by the Secretary'';
            (4) by striking ``Amtrak's right'' in subsection (a)(3) and 
        inserting ``The right of a rail passenger operator acting 
        pursuant to a franchise granted by the Secretary'';
            (5) by striking ``Amtrak'' in subsection (a)(3) and 
        inserting ``the rail passenger operator'';
            (6) by striking ``Amtrak'' the first place it appears in 
        subsection (a)(4) and inserting ``a rail passenger operator 
        acting pursuant to a franchise granted by the Secretary'';
            (7) by striking ``Amtrak'' the second place it appears in 
        subsection (a)(4) and inserting ``the rail passenger 
        operator'';
            (8) by striking ``Amtrak'' the first place it appears in 
        subsection (b) inserting ``a rail passenger operator acting 
        pursuant to a franchise granted by the Secretary'';
            (9) by striking ``Amtrak'' the second and third places it 
        appears in subsection (b) and inserting ``the rail passenger 
        operator'';
            (10) by striking ``Amtrak'' the first place it appears in 
        subsection (c) and inserting ``a rail passenger operator acting 
        pursuant to a franchise granted by the Secretary'';
            (11) by striking ``Amtrak'' the second place it appears in 
        subsection (c) and inserting ``the rail passenger operator'';
            (12) by striking ``Amtrak, Amtrak'' in subsection (d) and 
        inserting ``a rail passenger operator acting pursuant to a 
        franchise granted by the Secretary, the rail passenger 
        operator'';
            (13) by striking ``Amtrak'' in the last sentence of 
        subsection (d) and inserting ``the rail passenger operator's'';
            (14) by striking ``Amtrak'' the first place it appears in 
        subsection (e)(1) and inserting ``a rail passenger operator 
        acting pursuant to a franchise granted by the Secretary'';
            (15) by striking ``Amtrak'' the second place it appears in 
        subsection (e)(1) and inserting ``the rail passenger 
        operator'';
            (16) by striking ``the statutory goal of Amtrak'' in 
        subsection (e)(2)(B) and inserting ``the ability of the rail 
        passenger operator''; and
            (17) by striking ``Amtrak'' in subsection (e)(3) and 
        inserting ``the rail passenger operator''.
    (b) Award of Franchises To Provide Passenger Rail Service.--Section 
24308 is further amended by adding at the end the following:
    ``(f) Awarding of Franchises.--
            ``(1) In general.--The Secretary may award franchises to 
        qualified rail passenger operators to provide safe, efficient, 
        and cost effective intercity rail passenger service over 
        portions of the rail system of the United States, except over 
        the Alaska Railroad.
            ``(2) Conditions.--The Secretary may not award a franchise 
        to a rail passenger operator unless--
                    ``(A) the rail passenger operator demonstrates 
                that--
                            ``(i) it is actively engaged in good faith 
                        negotiations to receive access rights with any 
                        freight rail operator whose trackway, right-of-
                        way, or facilities will be used by the rail 
                        passenger operator to provide rail passenger 
                        transportation service; or
                            ``(ii) an access agreement has been 
                        executed; and
                    ``(B) the Secretary determines that the award of 
                the franchise would not result in a downgrade in the 
                service of a freight operator or its ability to serve 
                its customers.
            ``(3) Procedures.--Within a year after the date of 
        enactment of the Rail Passenger Service Improvement Act, the 
        Secretary shall by rule establish procedures for awarding 
        franchises to provide intercity rail passenger service. At a 
        minimum, that rule shall include--
                    ``(A) qualifications for a rail passenger operator, 
                including safety standards and liability coverage;
                    ``(B) procedures for soliciting and evaluating 
                proposals to provide rail passenger service;
                    ``(C) procedures for determining the terms of the 
                franchise including exclusivity, duration, 
                compensation, and service standards; and
                    ``(D) procedures for terminating the franchise for 
                cause or other reasons that the Secretary may deem 
                appropriate.''.
    (c) Transition.--
            (1) Amtrak may continue service until franchise awarded.--
        Amtrak shall retain the franchise and right to operate over 
        each of the routes it served on the date of enactment of this 
        Act under contracts then in effect with the rail carriers 
        owning the track until such time as the Secretary awards a 
        franchise over a specific route to a rail passenger operator 
        under section 24308 of title 49, United States Code.
            (2) Service on other routes.--The award of a franchise for 
        a specific route to a rail passenger  operator under that 
section does not affect Amtrak's right to provide service over other 
routes.
    (d) Conforming Amendments.--
            (1) The caption of section 24308 is amended to read as 
        follows:
``Sec. 24308. Use of facilities and providing services to rail 
              passenger operators''.
            (2) The chapter analysis for chapter 243 is amended by 
        striking the item relating to section 24308 and inserting the 
        following:

``24308. Use of facilities and providing services to rail passenger 
                            operators.''.

                     TITLE II--RESTRUCTURING AMTRAK

                       Subtitle A--Privatization

SEC. 201. ESTABLISHMENT OF SUBSIDIARIES.

    (a) Authorization of Subsidiaries.--Notwithstanding any other 
provision of law, including any law of the District of Columbia, the 
National Railroad Passenger Corporation is authorized to establish 
subsidiaries of the Corporation.
    (b) Establishment of Subsidiaries.--
            (1) In general.--Within one year after the date of 
        enactment of this Act, the National Railroad Passenger 
        Corporation shall establish the following subsidiaries of the 
        Corporation:
                    (A) Amtrak operations.--Amtrak Operations, which 
                shall consist of those activities, employees, 
                facilities and other assets and associated debt of the 
                Corporation directly related to the operation of 
                intercity trains, including the transportation of mail 
                and express, and include train and engine operations, 
                on-board services and personnel, dispatching, police 
                and security functions, servicing of equipment, 
                marketing, as well as control of equipment owned or 
                leased by the Corporation.
                    (B) Amtrak maintenance.--Amtrak Maintenance, which 
                shall consist of those activities, employees, 
                facilities and other assets and associated debt of the 
                Corporation related to the maintenance of way and 
                maintenance of equipment used for the operation of 
                intercity trains.
                    (C) Intercity rail reservations.--Intercity Rail 
                Reservations, which shall consist of those activities, 
                employees, facilities, and other assets and associated 
                debt of the Corporation related to reservations and the 
                sale of tickets for passenger transportation.
                    (D) Other subsidiaries.--Such other subsidiaries 
                that the Reform Board established under section 
                24302(a) of title 49, United States Code, (hereinafter 
                referred to as the ``Reform Board'') believes represent 
                a viable business entity.
            (2) Legal status of subsidiaries.--
                    (A) The Amtrak operations subsidiary shall be 
                considered an employer under the Railroad Retirement 
                Act of 1974, the Railroad Unemployment Insurance Act, 
                and the Railroad Retirement Tax Act.
                    (B) Neither the Amtrak maintenance subsidiary nor 
                the Intercity rail reservations subsidiary shall be 
                considered an employer under the Railroad Retirement 
                Act of 1974, the Railroad Unemployment Insurance Act, 
                and the Railroad Retirement Tax Act.
            (3) Equipment ownership and leasing.--If the Reform Board 
        determines that it is appropriate to consolidate equipment 
        ownership and leasing functions in a separate subsidiary, those 
        functions need not be part of the Amtrak operations subsidiary.
            (4) Access to other intercity rail passenger service 
        providers.--In setting up subsidiaries under this subsection, 
        the Reform Board shall assure that appropriate provisions are 
        made for rail passenger operators other than the Amtrak 
        operations subsidiary to have access to equipment, reservations 
        services, and other assets or services needed to provide 
        intercity rail passenger service under terms no less favorable 
        than those under which such access is provided to the Amtrak 
        operations subsidiary.
    (c) Management and Accounting.--
            (1) Competitive operations.--The subsidiaries shall be 
        managed as independent for-profit entities and shall be free to 
        compete for business outside the Amtrak corporate structure, 
        but no Federal operating assistance may be used to enhance the 
        subsidiaries' competitive position in seeking such business.
            (2) Accounting standards.--In establishing the 
        subsidiaries, the Corporation shall establish a transparent 
        accounting system for each subsidiary that accurately assigns 
        costs to each subsidiary and allocates revenues to each 
        subsidiary as if they were each independent corporations 
        operating in a competitive environment.
    (d) Incorporation.--Not later than 2 years after the date of 
enactment of this Act, the Reform Board shall take whatever actions are 
necessary to incorporate each of the subsidiaries under the District of 
Columbia Business Corporation Act.
    (e) Initial Stock Ownership.--Subsequent to incorporation, the 
Reform Board shall distribute the ownership of the common stock of the 
new corporations as follows:
            (1) 75 percent of the common stock of each of the new 
        corporations shall be owned by the National Railroad Passenger 
        Corporation.
            (2) 25 percent of the common stock of each of the new 
        corporations shall be owned by the employees of that 
        corporation through an employee stock ownership plan. The 
        Reform Board, after consultation with the representatives of 
        each subsidiary's employees, shall develop an equitable 
        allocation of the stock held by the employee stock ownership 
        plan.
    (f) Privatization.--Not later than 4 years after the date of 
enactment, the Reform Board shall undertake all necessary measures to 
sell the common stock owned by the National Railroad Passenger 
Corporation in each of the subsidiaries or distribute a portion or all 
of such stock to the subsidiary corporation's employee stock ownership 
plan.
    (g) Sunset.--Upon completion of the privatization of each 
subsidiary, the Reform Board shall--
            (1) use the proceeds from the sale of common stock in the 
        subsidiary corporations to satisfy any remaining obligations of 
        the National Railroad Passenger Corporation and transfer any 
        remaining proceeds to the Treasury of the United States; and
            (2) liquidate the National Railroad Passenger Corporation.

SEC. 202. REDEMPTION OF COMMON STOCK.

    (a) Redemption.--After the transfer of assets to the Secretary of 
Transportation under section 251 of this Act, Amtrak shall attempt to 
redeem all common stock in the National Railroad Passenger Corporation 
issued before the date of enactment of this Act for the fair market of 
such stock.
    (b) Acquisition Through Eminent Domain.--If Amtrak and the owners 
of the common stock in the National Railroad Passenger Corporation have 
not completed the redemption of such stock by May 1, 2003, Amtrak shall 
on that date exercise the eminent domain provisions of section 24311 of 
title 49, United States Code, to acquire that stock.
    (c) Conversion of Preferred Stock to Common.--
            (1) In general.--After the redemption of the common stock 
        in the National Railroad Passenger Corporation issued before 
        the date of enactment of this Act, the Secretary of 
        Transportation shall convert the share of the preferred stock 
        of the Corporation retained pursuant to section 251(d)(2) of 
        this Act into 10 shares of common stock in the Corporation.
            (2) Other issuances of common stock.--The Corporation may 
        not issue any other common stock without the express written 
        consent of the Secretary of Transportation.

                Subtitle B--Interim Operations by Amtrak

SEC. 231. LIMITS ON SERVICE PROVISION.

    (a) Coverage of Avoidable Costs.--Notwithstanding any other 
provision of law, beginning October 1, 2003, and continuing until the 
stock in Amtrak's subsidiaries has been sold or transferred to employee 
stock ownership plans under section 201(f) of this Act, Amtrak shall 
not operate over any route or provide any service that does not cover, 
at a minimum, Amtrak's avoidable costs unless expressly approved by the 
Amtrak Control Board.
    (b) Development of a Procedure To Calculate Avoidable Cost.--Not 
later than 6 months after the date of enactment of this Act, the Amtrak 
Control Board shall develop, in consultation with the Inspector General 
of the Department of Transportation, the General Accounting Office, 
States currently contributing operating or capitol subsidies directly 
to Amtrak for service, and any other person the Amtrak Control Board 
deems appropriate, a procedure to identify the avoidable cost of routes 
and services provided by Amtrak.
    (c) Annual Estimate of Avoidable Cost.--Beginning no later than 
February 1, 2003, and continuing annually thereafter until the common 
stock of the subsidiaries of the National Railroad Passenger 
Corporation is sold or transferred to an employee stock ownership plan, 
Amtrak shall provide to the Committees on Appropriations of the Senate 
and the House of Representatives, the Committee on Commerce, Science, 
and Transportation of the Senate and the Committee on Transportation 
and Infrastructure of the House of Representatives, and to the Governor 
and the Secretary of Transportation (or the equivalent State official) 
in each State in which Amtrak operates, an estimate of the avoidable 
cost of each route and service Amtrak plans to provide in the following 
Federal fiscal year and an estimate of the difference between the 
estimated avoidable cost and anticipated revenues from that route and 
service.
    (d) Termination of Service.--
            (1) Termination of unsubsidized loss routes.--Amtrak shall 
        terminate a net loss route or service on the first day of any 
        Federal fiscal year beginning after September 30, 2003, if it 
        has not received a route-specific funding commitment, or a 
        binding agreement from a State, local government, or other 
        entity by the end of the preceding fiscal year to cover the net 
        loss from that service.
            (2) Period of application.--Paragraph (1) applies to any 
        fiscal year ending before the fiscal year in which the common 
        stock of all subsidiaries established under section 201 has 
        been sold or transferred to employee stock ownership plans.
            (3) Waiver.--The Amtrak Control Board may waive the 
        requirement of paragraph (1) if it finds that the national 
        interest would be served by preserving a specific route or 
        service that would be terminated under paragraph (1).
            (4) Net loss route.--For purposes of paragraph (1), the 
        term ``net loss route'' means a route or service on which the 
        avoidable costs are not covered by revenue from that route or 
        service.

                     Subtitle C--Northeast Corridor

SEC. 251. NORTHEAST CORRIDOR TRANSFER.

    (a) Transfer.--Before the National Railroad Passenger Corporation 
may receive any Federal funds authorized by section 24104 of title 49, 
United States Code, for fiscal year 2003 or any subsequent fiscal year, 
it shall transfer title to those portions of the Northeast Corridor 
currently owned by the Corporation and which were originally acquired 
by the Corporation pursuant to section 701(b) of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 851(b)), as 
well as any subsequent improvements made to these assets, to the 
Secretary of Transportation. The assets transferred to the Secretary 
shall include the rail right-of-way, stations, track, signal equipment, 
electric traction facilities, bridges, tunnels, and all other 
improvements owned by the Corporation between Boston, Massachusetts, 
and Washington, District of Columbia (including the route through 
Springfield, Massachusetts and the routes to Harrisburg, Pennsylvania, 
and Albany, New York, from the Northeast Corridor main line).
    (b) Existing Encumbrances.--With regard to any portion of the 
Northeast Corridor that the Corporation  has provided as security or 
collateral for a debt entered into before the date of enactment of this 
Act, the Corporation shall transfer its underlying interest in such 
asset and shall remain liable for the debt secured by that asset.
    (c) Exception to Assets Transferred.--The assets transferred shall 
not include maintenance of way and maintenance of equipment facilities 
transferred to the Amtrak maintenance subsidiary established under 
section 201 of this Act.
    (d) Consideration.--In consideration for the assets transferred to 
the United States under subsection (b), the Secretary of Transportation 
shall--
            (1) provide funds appropriated pursuant to the 
        authorization contained in this Act;
            (2) deliver to the Corporation all but 1 share of the 
        preferred stock of the Corporation held by the Secretary and 
        cancel any debt, including accrued interest, evidenced by these 
        preferred stock certificates; and
            (3) release the Corporation from all mortgages and liens 
        held by the Secretary on or before June 1, 2003.

SEC. 252. CARE, CUSTODY, AND CONTROL.

    (a) Agreement.--Before accepting title to the assets to be 
transferred under section 251, the Secretary of Transportation shall 
enter into an agreement with the Corporation under which the 
Corporation will exercise on behalf of the Secretary care, custody, and 
control of the assets to be transferred.
    (b) Expiration.--The term of the agreement entered into under 
subsection (a) shall expire no later than the fourth anniversary of the 
date of enactment of this Act.

SEC. 253. NORTHEAST CORRIDOR PLAN.

    (a) Development of a Plan.--Within 1 year after the date of 
enactment of this Act, the Secretary of Transportation shall--
            (1) report to the Congress on--
                    (A) capital investment needs related to the assets 
                acquired under section 251 and other portions of the 
                main line of the Northeast Corridor; and
                    (B) the priority for these investments; and
            (2) make recommendations on the future operation, control, 
        and ownership of those assets.
    (b) Consultation.--In preparing the report, the Secretary shall 
consult with the Departments of Transportation of the States in which 
the assets are located, any freight rail or commuter rail authority 
operating over any portion of the Northeast Corridor, the National 
Railroad Passenger Corporation, and any other persons or entities the 
Secretary deems appropriate.

SEC. 254. NORTHEAST CORRIDOR IMPROVEMENTS.

    (a) Authority.--
            (1) In general.--The Secretary of Transportation is 
        authorized to undertake capital improvements to assets acquired 
        under section 251 of this Act as well as other portions of the 
        main line of the Northeast Corridor which, in the Secretary's 
        judgment, are needed to improve the security and safety of the 
        traveling public, address deferred maintenance, increase 
        capacity, and enhance the capability of the Northeast Corridor 
        to accommodate intercity, commuter, and freight rail 
        transportation.
            (2) Competitive bidding.--The Secretary shall undertake the 
        improvements authorized by this section in an efficient and 
        cost effective manner and shall, to the maximum extent 
        practicable, seek competitive bids from firms qualified to 
        design or build such improvements.
            (3) Safety.--In undertaking the improvements authorized by 
        this section, the Secretary shall ensure all reasonable 
        measures are taken to assure the safety of railroad workers, 
        contractor employees, the traveling public, and persons living 
        or working in the vicinity of the Northeast Corridor.
            (4) Funding of related activities.--The Secretary may 
        retain from funds appropriated to undertake improvements to 
        Northeast Corridor, sufficient amounts to fund the Secretary's 
        related activities including planning, preparation of necessary 
        environmental studies, and project oversight.
            (5) Use of state transportation departments.--In carrying 
        out this subsection, the Secretary may act directly or through 
        a State department of transportation or other public authority 
        that otherwise can meet the requirements of this section.
    (b) Contributions.--
            (1) In general.--In undertaking improvements to the 
        Northeast Corridor, the Secretary shall seek the maximum level 
        of contributions from States, localities, transit authorities, 
        and freight railroads operating over the Northeast Corridor.
            (2) 20 percent minimum match required.--Except as provided 
        in paragraph (3), the Secretary shall require that parties 
        other than the Secretary contribute not less than 20 percent of 
        the cost of the improvement.
            (3) No match required for safety and security 
        improvements.--The Secretary may fund 100 percent of the cost 
        of investments that, in the opinion of the Secretary, are 
        essential for the security and safety of rail passengers and 
        residents adjacent to the Northeast Corridor.
            (4) Contribution considered for prioritization.--The 
        Secretary may use the extent to which parties other than the 
        Secretary commit to contribute in excess of 20 percent of the 
        cost of an improvement as one criteria for determining the 
        priority for undertaking improvements to the Northeast 
        Corridor.
    (c) Review by the Inspector General.--The Inspector General of the 
Department of Transportation shall undertake a periodic review of the 
program of improvements undertaken under this section and include in 
the report required by section 409(c) of the Amtrak Reform and 
Accountability Act of 1997 (5 U.S.C. App. 8G note) the Inspector 
General's observations as to the efficiency and cost effectiveness of 
the improvements undertaken.

                    TITLE III--AMTRAK CONTROL BOARD

                       Subtitle A--Establishment

SEC. 301. ESTABLISHMENT AND ORGANIZATION OF AMTRAK FINANCIAL 
              RESPONSIBILITY AND MANAGEMENT ASSISTANCE AUTHORITY.

    (a) Establishment.--
            (1) There is hereby established the Amtrak Financial 
        Responsibility and Management Assistance Authority (referred to 
        elsewhere in this Act as the Amtrak Control Board), consisting 
        of members appointed by the President in accordance with 
        subsection (b).
    (b) Membership.--
            (1) In general.--The Amtrak Control Board shall consist of 
        5 members appointed by the President who meet the 
        qualifications described in subsection (c), except that the 
        Authority may take any action under this Act (or any amendments 
        made by this Act) at any time after the President has appointed 
        3 of its members. The Amtrak Control Board should be comprised 
        of individuals representing a broad range of expertise.
            (2) Consultation with congress.--The President shall 
        appoint the members of the Authority after consulting with the 
        leadership of the House of Representatives and the Senate.
            (3) Chair.--The President shall designate one of the 
        members of the Amtrak Control Board as the Chair of the Amtrak 
        Control Board.
            (4) Sense of congress regarding deadline for appointment.--
        It is the sense of Congress that the President should appoint 
        the members of the Amtrak Control Board as soon as practicable 
        after the date of the enactment of this Act, but in no event 
        later than 25 days after the date of the enactment of this Act.
            (5) Term of service.--
                    (A) Each member of the Authority shall be appointed 
                for a term of 4 years.
                    (B) The President may remove any member of the 
                Authority only for cause.
                    (C) An individual appointed to fill a vacancy 
                occurring before the expiration of the term for which 
                the predecessor of that individual was appointed, shall 
                be appointed for the remainder of that term. When the 
                term of office of a member ends, the member may 
                continue to serve until a successor is appointed and 
                qualified, but for a period not to exceed 1 year.
    (c) Qualifications for Membership.--An individual meets the 
qualifications for membership on the Amtrak Control Board if the 
individual--
            (1) has demonstrated knowledge and expertise in finance, 
        management, and the organization and operation of a for-profit 
        business;
            (2) is not an officer or employee of Amtrak or a current or 
        former member of Amtrak's Board of Directors; and
            (3) is not an employee of a local or state government or of 
        the United States.
    (d) No Compensation for Service.--Members of the Amtrak Control 
Board shall serve without pay, but may receive reimbursement for any 
reasonable and necessary expenses incurred by reason of service on the 
Board.
    (e) Adoption of By-Laws for Conducting Business of Amtrak Control 
Board.--
            (1) In general.--As soon as practicable after the 
        appointment of its members, the Amtrak Control Board shall 
        adopt by-laws, rules, and procedures governing its activities 
        under this Act, including procedures for hiring experts and 
        consultants. Such by-laws, rules, and procedures shall be 
        public documents, and shall be submitted by the Amtrak Control 
        Board upon adoption to Amtrak, the President, and Congress.
            (2) Certain activities requiring approval of majority of 
        members.--Under the by-laws adopted pursuant to paragraph (1), 
        the Amtrak Control Board may conduct its operations under such 
        procedures as it considers appropriate, except that an 
        affirmative vote of a majority of the members of the Amtrak 
        Control Board shall be required in order for the Amtrak Control 
        Board to--
                    (A) approve or disapprove a financial plan and 
                budget under section 352; and
                    (B) direct Amtrak to implement recommendations on 
                financial stability and management responsibility under 
                section 357.

SEC. 302. EXECUTIVE DIRECTOR AND STAFF OF AMTRAK CONTROL BOARD.

    (a) Executive Director.--The Amtrak Control Board is authorized to 
appoint an Executive Director. The Executive Director shall be paid at 
a rate determined by the Amtrak Control Board, except that such rate 
may not exceed the rate of basic pay payable for level IV of the 
Executive Schedule.
    (b) Staff.--With the approval of the Chair, the Executive Director 
may appoint and fix the pay of additional personnel as the Executive 
Director considers appropriate, except that no individual appointed by 
the Executive Director may be paid at a rate greater than the rate of 
pay for the Executive Director.
    (c) Inapplicability of Certain Employment and Procurement Laws.--
The Executive Director and staff of the Authority may be appointed 
without regard to the provisions of title 5, United States Code, 
governing appointments in the competitive service, and paid without 
regard to the provisions of chapter 51 and subchapter III of chapter 53 
of that title relating to classification and General Schedule pay 
rates.
    (d) Staff of Federal Agencies.--Upon request of the Chair, the head 
of any Federal department or agency may detail, on a reimbursable or 
non-reimbursable basis, any of the personnel of that department or 
agency to the Authority to assist it in carrying out its duties under 
this Act.

SEC. 303. POWERS OF AMTRAK CONTROL BOARD.

    (a) Hearings and Sessions.--The Amtrak Control Board may, for the 
purpose of carrying out this Act, hold hearings, sit and act at times 
and places, take testimony, and receive evidence as the Amtrak Control 
Board considers appropriate. The Amtrak Control Board may administer 
oaths or affirmations to witnesses appearing before it.
    (b) Powers of Members and Agents.--Any member or agent of the 
Amtrak Control Board may, if authorized by the Amtrak Control Board, 
take any action which the Amtrak Control Board is authorized to take by 
this section.
    (c) Obtaining Official Data.--
            (1) From federal government.--Notwithstanding sections 552 
        and 552b of title 5, United States Code, the Amtrak Control 
        Board may secure directly from any department or agency of the 
        United States information necessary to enable it to carry out 
        this Act, with the approval of the head of that department or 
        agency.
            (2) From amtrak.--Notwithstanding any other provision of 
        law, the Amtrak Control Board shall have the right to secure 
        copies of such records, documents, information, or data from 
        Amtrak necessary to enable the Amtrak Control Board to carry 
        out its responsibilities under this Act. At the request of the 
        Amtrak Control Board, the Amtrak Control Board shall be granted 
        direct access to such information systems, records, documents 
        or information or data as will enable the Amtrak Control Board 
        to carry out its responsibilities under this Act. The official 
        of Amtrak responsible shall provide the Amtrak Control Board 
        with such information and assistance (including granting the 
        Amtrak Control Board direct access to automated or other 
        information systems) as the Amtrak Control Board requires under 
        this paragraph.
    (d) Gifts, Bequests, and Devises.--The Amtrak Control Board may 
accept, use, and dispose of gifts, bequests, or devises of services or 
property, both real and personal, for the purpose of aiding or 
facilitating the work of the Amtrak Control Board. Gifts, bequests, or 
devises of money and proceeds from sales of other property received as 
gifts, bequests, or devises shall be deposited in such account as the 
Amtrak Control Board may establish and shall be available for 
disbursement upon order of the Chair.
    (e) Administrative Support Services.--Upon the request of the 
Amtrak Control Board, the Secretary of Transportation shall provide to 
the Amtrak Control Board the administrative support services necessary 
for the Amtrak Control Board to carry out its responsibilities under 
this Act.
    (f) Authority To Enter Into Contracts.--The Executive Director may 
enter into such contracts as the Executive Director considers 
appropriate (subject to the approval of the Chair) to carry out the 
Amtrak Control Board's responsibilities under this Act.
    (g) Civil Actions To Enforce Powers.--The Amtrak Control Board may 
seek judicial enforcement of its authority to carry out its 
responsibilities under this Act.
    (h) Penalties.--
            (1) Acts prohibited.--Any officer or employee of Amtrak 
        who--
                    (A) takes any action in violation of any valid 
                order of the Amtrak Control Board or fails or refuses 
                to take any action required by any such order; or
                    (B) prepares, presents, or certifies any 
                information (including any projections or estimates) or 
                report for the Amtrak Control Board or any of its 
                agents that is false or misleading, or, upon learning 
                that any such information is false or misleading, fails 
                to immediately advise the Amtrak Control Board or its 
                agents thereof in writing, shall be guilty of a 
                misdemeanor.
            (2) Administrative discipline.--In addition to any other 
        applicable penalty, any officer or employee of Amtrak who 
        knowingly and willfully violates paragraph (1) shall be subject 
        to appropriate administrative discipline, including (when 
        appropriate) suspension from duty without pay or removal from 
        office by order of either Amtrak or the Amtrak Control Board.
            (3) Report by amtrak on disciplinary actions taken.--In the 
        case of a violation of paragraph (1) by an officer or employee 
        of Amtrak, the Amtrak Reform Board shall immediately report to 
        the Amtrak Control Board all pertinent facts together with a 
        statement of the action taken thereon.

SEC. 304. EXEMPTION FROM LIABILITY FOR CLAIMS.

    The Amtrak Control Board and its members may not be liable for any 
obligation of or claim against Amtrak resulting from actions taken to 
carry out this Act.

SEC. 305. TREATMENT OF ACTIONS ARISING FROM ACT.

    (a) Jurisdiction Established in District Court for District of 
Columbia.--Any action against the Amtrak Control Board or any action 
otherwise arising out of this Act, in whole or in part, shall be 
brought in the United States District Court for the District of 
Columbia.
    (b) Prompt Appeal.--
            (1) Court of appeals.--Notwithstanding any other provision 
        of law, any order of the United States District Court for the 
        District of Columbia which is issued pursuant to an action 
        brought under subsection (a) shall be reviewable only pursuant 
        to a notice of appeal to the United States Court of Appeals for 
        the District of Columbia Circuit.
            (2) Supreme court.--Notwithstanding any other provision of 
        law, review by the Supreme Court of the United States of a 
        decision of the Court of Appeals which is issued pursuant to 
        paragraph (1) may be had only if the petition for such review 
        is filed within 10 days after the entry of such decision.
    (c) Timing of Relief.--No order of any court granting declaratory 
or injunctive relief against the Amtrak Control Board, including relief 
permitting or requiring the obligation, borrowing, or expenditure of 
funds, shall take effect during the pendency of the action before such 
court, during the time appeal may be taken, or (if appeal is taken) 
during the period before the court has entered its final order 
disposing of such action.
    (d) Expedited Consideration.--It shall be the duty of the United 
States District Court for the District of Columbia, the United States 
Court of Appeals for the District of Columbia Circuit, and the Supreme 
Court of the United States to advance on the docket and to expedite to 
the greatest possible extent the disposition of any matter brought 
under subsection (a).

SEC. 306. FUNDING FOR OPERATION OF AMTRAK CONTROL BOARD.

    (a) Submission of Budget.--The Amtrak Control Board shall submit a 
proposed budget for each fiscal year to the President for inclusion in 
the annual budget for Amtrak not later than the May 1 prior to the 
first day of the fiscal year. In the case of the budget for fiscal 
year  2003, the Amtrak Control Board shall submit its proposed budget 
not later than July 15, 2002.
    (b) Contents of Budget.--The budget shall describe--
            (1) expenditures of the Amtrak Control Board by each object 
        class, including expenditures for staff of the Amtrak Control 
        Board;
            (2) services of personnel and other services provided by or 
        on behalf of the Amtrak Control Board for which the Amtrak 
        Control Board made no reimbursement; and
            (3) any gifts or bequests made to the Amtrak Control Board 
        during the previous fiscal year.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Amtrak Control Board such sums as may be necessary 
to enable it to carry out its responsibilities under this Act.
    (d) Secretary of Transportation To Provide Interim Support.--For 
fiscal year 2002, the Secretary of Transportation shall advance to the 
Amtrak Control Board, out of any amounts appropriated to the Secretary 
and not otherwise obligated, such sums as may be necessary to enable 
the Amtrak Control Board to commence operations in fiscal year 2002. 
Any sums so advanced may be recouped by the Secretary in fiscal year 
2003 if so provided in appropriations Acts.

SEC. 307. SUSPENSION OF ACTIVITIES.

    (a) Suspension Upon Payment of Amtrak Control Board Obligations.--
            (1) In general.--The Amtrak Control Board shall suspend any 
        activities carried out under this Act, and the terms of the 
        members of the Amtrak Control Board, shall expire on the date 
        that the Amtrak Control Board certifies that--
                    (A) Amtrak has been fully privatized; and
                    (B) all obligations arising from the issuance by 
                the Amtrak Control Board of bonds, notes, or other 
                obligations pursuant to subtitle C have been 
                discharged, and that all borrowings by or on behalf of 
                Amtrak have been repaid, secured, or assumed.
            (2) No suspension during control period.--The Amtrak 
        Control Board may not suspend its activities pursuant to 
        paragraph (1) at any time during a control period.

    Subtitle B--Financial Stability and Management Responsibilities

SEC. 331. AMTRAK CONTROL BOARD RESPONSIBILITIES.

    (a) In General.--The Amtrak Control Board is directed to seek 
Amtrak operational and management efficiencies, including personnel 
changes and route eliminations or service reductions and direct 
implementation of such efficiencies by Amtrak. The Amtrak Control Board 
shall consider and promote options to improve Amtrak's financial 
condition and operational structure and may consult with the Executive 
Director, Amtrak, corporate and financial experts, Federal, State, and 
local officials, and the Congress.
    (b) Privatization Assistance.--The Amtrak Control Board is directed 
to assist Amtrak in improving its financial and operational condition 
to enable Amtrak to be privatized no later than 4 years after the date 
of enactment of this Act. Amtrak's privatization shall include spinning 
off Amtrak's operations, reservation system, and maintenance shops into 
private for-profit entities that can provide competitive services.
    (c) Route Restructuring.--In carrying out its duties, the Amtrak 
Control Board is authorized to direct Amtrak to restructure its route 
structure, including the elimination of routes which are operated at a 
financial loss, if Amtrak does not exercise its authority to 
restructure its route structure. Amtrak may maintain service on routes 
it has been operating at a financial loss only if States or regional 
compacts provide financial assistance to maintain such existing route 
operations.
    (d) State and Local Financial Support Agreements.--The Amtrak 
Control Board is authorized to direct Amtrak to negotiate with States 
and regional compacts and to enter into agreements to offset 
expenditures associated with rail passenger service. Amtrak is 
encouraged to work with states and multi-state compacts in an effort to 
retain or restructure routes and improve service quality but Amtrak 
must not bear the financial loses for money-losing routes.
    (e) Commuter Services.--The Amtrak Control Board is authorized to 
direct Amtrak to transfer all commuter services operated by Amtrak to 
regional compacts which will hold responsibility for commuter operation 
functions. The Amtrak Control Board shall ensure Amtrak provides 
adequate notice to any regional compact to which the services are 
transferred.

Subtitle C--Establishment and Enforcement of Amtrak Financial Plan and 
                                 Budget

SEC. 351. DEVELOPMENT OF FINANCIAL PLAN AND BUDGET FOR AMTRAK.

    (a) Development of Financial Plan and Budget.--For each fiscal year 
for which Amtrak is in a control period, the Reform Board shall develop 
and submit to the Amtrak Control Board a financial plan and budget for 
Amtrak in accordance with this section.
    (b) Contents of Financial Plan and Budget.--A financial plan and 
budget for Amtrak for a fiscal year shall specify the budgets for 
Amtrak for the applicable fiscal year and all subsequent fiscal years 
until Amtrak is fully privatized (including the projected revenues and 
expenditures for such years), in accordance with the following 
requirements:
            (1) The financial plan and budget shall meet the standards 
        described in subsection (c) to promote the financial stability 
        of Amtrak.
            (2) The financial plan and budget shall provide for 
        estimates of ridership, revenues and expenditures.
            (3) The financial plan and budget shall--
                    (A) describe lump sum expenditures and sources of 
                funding;
                    (B) describe capital expenditures (together with a 
                schedule of projected capital commitments of Amtrak and 
                sources of funding;
                    (C) contain estimates of short-term and long-term 
                debt (both outstanding and anticipated);
                    (D) contain cash flow forecasts at such intervals 
                as the Amtrak Control Board may require; and
                    (E) include other information as may be required by 
                the Amtrak Control Board.
            (4) The financial plan and budget shall include a statement 
        describing methods of estimations and significant assumptions.
            (5) The financial plan and budget shall include any other 
        provisions and shall meet such other criteria as the Amtrak 
        Control Board considers appropriate to meet the purposes of 
        this Act, including provisions for changes in personnel 
        policies and levels for each business unit, changes in the 
        structure and organization of Amtrak, and management 
        initiatives to promote productivity, improvement in the 
        delivery of services, or cost savings.
    (c) Standards To Promote Financial Stability Described.--
            (1) In general.--The standards to promote the financial 
        stability of Amtrak applicable to the financial plan and budget 
        for a fiscal year are as follows:
                    (A) In the case of the financial plan and budget 
                for a fiscal year during the control period, the 
                expenditures of Amtrak for each fiscal year (beginning 
                with fiscal year 2003) may not exceed Amtrak revenues, 
                State, local, or private entity financial support, and 
                appropriated expenditures to Amtrak for each such 
                fiscal year.
                    (B) During fiscal years 2003, 2004, 2005, and 2006, 
                Amtrak shall make continuous, substantial progress 
                towards equalizing the expenditures and revenues of 
                Amtrak for such fiscal years (in equal annual 
                installments to the greatest extent possible).
                    (C) Amtrak shall provide for the orderly 
                liquidation of its cumulative fund balance deficit, as 
                evidenced by financial statements prepared in 
                accordance with generally accepted accounting 
                principles.
                    (D) If funds in accounts of Amtrak which are 
                dedicated for specific purposes have been withdrawn 
                from such accounts for other purposes, Amtrak shall 
                fully restore the funds to such accounts.
                    (E) The financial plan and budget shall assure the 
                continuing financial stability of Amtrak, as indicated 
                by factors including access to short-term and long-term 
                capital markets, the efficient management of Amtrak's 
                workforce, and the effective provision of services by 
                Amtrak.
            (2) Application of sound budgetary practices.--In meeting 
        the standards described in paragraph (1) with respect to a 
        financial plan and budget for a fiscal year, Amtrak shall apply 
        sound budgetary practices, including reducing costs and other 
        expenditures, improving productivity, increasing revenues, or 
        combinations of such practices.
            (3) Application of gaap.--All budgets and accompanying 
        reports required by this Act shall be prepared in accordance 
        with Generally Accepted Accounting Principles.

SEC. 352. PROCESS FOR SUBMISSION AND APPROVAL OF FINANCIAL PLAN AND 
              ANNUAL AMTRAK 
              BUDGET.

    (a) Submission of Financial Plan and Budget by Amtrak.--Not later 
than the February 1 preceding a fiscal year for which Amtrak is in a 
control period, Amtrak shall submit to the Amtrak Control Board a 
financial plan and budget for the fiscal year which meets the 
requirements of section 351.
    (b) Review by Amtrak Control Board.--Upon receipt of the financial 
plan and budget for a fiscal year from Amtrak under subsection (a), the 
Amtrak Control Board shall promptly review the financial plan and 
budget. In conducting the review, the Amtrak Control Board may request 
any additional information it considers necessary and appropriate to 
carry out its duties under this subtitle.
    (c) Action Upon Approval of Amtrak's Financial Plan and Budget.--
            (1) In general.--If the Amtrak Control Board determines 
        that the financial plan and budget for the fiscal year 
        submitted by the Amtrak Reform Board under subsection (a) meets 
        the requirements of section 351, the Amtrak Control Board shall 
        approve the financial plan and budget and shall provide Amtrak, 
        the President, and Congress with a notice certifying its 
        approval.
            (2) Adoption of financial plan and budget by reform board 
        after receipt of approved financial plan and budget.--Not later 
        than 30 days after receiving notification of approval of the 
        financial plan and budget for the fiscal year from the Amtrak 
        Control Board under paragraph (1), the Reform Board shall by 
        Act adopt a financial plan and budget for the fiscal year which 
        shall serve as the adoption of the budgets of Amtrak for the 
        fiscal year under such section, and shall submit such financial 
        plan and budget to the Amtrak Control Board and the Congress.
    (d) Disapproval of Reform Board Initial Budget.--
            (1) If the Amtrak Control Board determines that the 
        financial plan and budget for the fiscal year under subsection 
        (a) does not meet the requirements of section 351, the Amtrak 
        Control Board shall disapprove the financial plan and budget, 
        and shall provide Amtrak, the President, and Congress with a 
        statement containing--
                    (A) the reasons for such disapproval;
                    (B) the amount of any shortfall in the budget or 
                financial plan; and
                    (C) any recommendations for revisions to the budget 
                the Amtrak Control Board considers appropriate to 
                ensure that the budget is consistent with the financial 
                plan and budget.
            (2) Amtrak control board review of reform board's revised 
        financial plan and budget.--
                    (A) Submission of revised financial plan and 
                budget.--Not later than 15 days after receiving the 
                statement from the Amtrak Control Board under paragraph 
                (1), the Reform Board shall promptly adopt a revised 
                financial plan and budget for the fiscal year which 
                addresses the reasons for the Amtrak Control Board's 
                disapproval cited in the statement, and shall submit 
                such financial plan and budget to the Amtrak Control 
                Board.
                    (B) Approval of revised financial plan and 
                budget.--If, after reviewing the revised financial plan 
                and budget for a fiscal year submitted under 
                subparagraph (A) in accordance with the procedures 
                described in this subsection, the Amtrak Control Board 
                determines that the revised financial plan and budget 
                meets the requirements of section 351, the Amtrak 
                Control Board shall approve the financial plan and 
                budget and shall provide Amtrak, the President, and 
                Congress with a notice certifying its approval.
                    (C) Disapproval of reform board's revised financial 
                plan and budget.--If, after reviewing the revised 
                financial plan and budget for a fiscal year submitted 
                under subparagraph (A) in accordance with the 
                procedures described in this subsection, the Amtrak 
                Control Board determines that the revised financial 
                plan and budget does not meet the applicable 
                requirements under section 351, the Amtrak Control 
                Board shall--
                            (i) disapprove the financial plan and 
                        budget;
                            (ii) provide Amtrak, the President, and 
                        Congress with a statement containing the 
                        reasons for such disapproval and describing the 
                        amount of any shortfall in the financial plan 
                        and budget; and
                            (iii) approve and recommend a financial 
                        plan and budget for Amtrak which meets the 
                        applicable requirements under section 351, and 
                        submit such financial plan and budget to 
                        Amtrak, the President, and Congress.
                    (D) Adoption of amtrak control board financial plan 
                and budget.--The Reform Board shall adopt the financial 
                plan and budget of the Amtrak Control Board and shall 
                provide the Amtrak Control Board, the President, and 
                Congress with a notice certifying its adoption.
            (3) Deadline for transmission of financial plan and budget 
        by amtrak control board.--Notwithstanding any other provision 
        of this section, not later than the June 15 preceding each 
        fiscal year in the control period, the Amtrak Control Board 
        shall--
                    (A) provide Congress with a notice certifying its 
                approval of Amtrak's financial plan and budget for the 
                fiscal year under subsection (c)(1);
                    (B) provide Congress with a notice certifying its 
                approval of Amtrak's revised financial plan and budget 
                for the fiscal year under paragraph (2)(B); or
                    (C) submit to Congress an approved and recommended 
                financial plan and budget of the Amtrak Control Board 
                for the Amtrak for the fiscal year under paragraph 
                (2)(C).

SEC. 353. REVIEW OF ACTIVITIES OF AMTRAK TO ENSURE COMPLIANCE WITH 
              APPROVED FINANCIAL PLAN AND BUDGET.

    (a) Review of Amtrak Actions.--
            (1) Submission of actions to amtrak control board.--Amtrak 
        shall submit to the Amtrak Control Board a detailed description 
        of each proposed action adopted by the Reform Board during a 
        fiscal year during the control period, together with the 
        estimate of costs accompanying such action.
            (2) Prompt review by amtrak control board.--Upon receipt of 
        any description of a proposed action from Amtrak under 
        paragraph (1), the Amtrak Control Board shall promptly review 
        the proposed action to determine whether it is consistent with 
        the applicable financial plan and budget approved under this 
        subtitle and with the estimate of costs provided by the Reform 
        Board the action described in paragraph (1).
            (3) Actions by amtrak control board.--
                    (A) Approval.--Except as provided in subparagraph 
                (C), if the Amtrak Control Board determines that an 
                action is consistent with the applicable financial plan 
                and budget, the Amtrak Control Board shall notify 
                Amtrak that it approves the Action.
                    (B) Finding of inconsistency.--Except as provided 
                in subparagraph (C), if the Amtrak Control Board 
                determines that an Act is significantly inconsistent 
                with the applicable financial plan and budget, the 
                Amtrak Control Board shall--
                            (i) notify Amtrak of its finding;
                            (ii) provide Amtrak with an explanation of 
                        the reasons for its finding; and
                            (iii) to the extent the Amtrak Control 
                        Board considers appropriate, provide Amtrak 
                        with recommendations for modifications to the 
                        action.
                    (C) Exception for emergency actions.--Subparagraphs 
                (A) and (B) shall not apply with respect to any action 
                which Amtrak determines should take effect immediately 
                because of emergency circumstances. If Amtrak takes 
                action under this subparagraph, it shall notify the 
                Amtrak Control Board within 5 days after its 
                determination. The Amtrak Control Board shall 
                immediately review the determination and action taken 
                by Amtrak and take whatever action the Amtrak Control 
                Board deems appropriate and necessary.
            (4) Preliminary review of proposed actions.--At the request 
        of Amtrak, the Amtrak Control Board may conduct a preliminary 
        review of proposed actions to determine whether the actions as 
        proposed would be consistent with the applicable financial plan 
        and budget approved under this subtitle, except that any such 
        preliminary review shall not be binding on the Amtrak Control 
        Board in reviewing any action subsequently submitted under this 
        subsection.
    (b) Effect of Approved Financial Plan and Budget on Contracts and 
Leases.--
            (1) Mandatory prior approval for certain contracts and 
        leases.--
                    (A) In general.--In the case of a contract or lease 
                described in subparagraph (B) which is proposed to be 
                entered into by Amtrak during a fiscal year in the 
                control period, the Reform Board shall submit the 
                proposed contract or lease to the Amtrak Control Board. 
                The Amtrak Control Board shall review each contract or 
                lease submitted under this subparagraph, and Amtrak may 
                not enter into the contract or lease unless the Amtrak 
                Control Board determines that the proposed contract or 
                lease is consistent with the financial plan and budget 
                for the fiscal year.
                    (B) Contracts and leases described.--A contract or 
                lease described in this subparagraph is--
                            (i) a labor contract entered into through 
                        collective bargaining; or
                            (ii) such other type of contract or lease 
                        as the Amtrak Control Board may specify for 
                        purposes of this subparagraph.
            (2) Amtrak control board to review other contracts and 
        leases after execution.--
                    (A) In general.--In addition to the prior approval 
                of certain contracts and leases under paragraph (1), 
                the Amtrak Control Board may require Amtrak to submit 
                to the Amtrak Control Board any other contract 
                (including a contract to carry out a grant) or lease 
                entered into by Amtrak during a fiscal year in the 
                control period which is executed after the Amtrak 
                Control Board has approved the financial plan and 
                budget for the year under section 352(c) or (d), or any 
                proposal of Amtrak to renew, extend, or modify a 
                contract or lease in a fiscal year during the control 
                period which is made after the Amtrak Control Board has 
                approved such financial plan and budget.
                    (B) Review by amtrak control board.--The Amtrak 
                Control Board shall review each contract or lease 
                submitted under subparagraph (A) to determine if the 
                contract or lease is consistent with the financial plan 
                and budget for the fiscal year. If the Amtrak Control 
                Board determines that the contract or lease is not 
                consistent with the financial plan and budget, the 
                Reform Board shall revise the contract or lease, or 
                shall submit a proposed revision to the financial plan 
                and budget in accordance with section 352(d), so that 
                the contract or lease will be consistent with the 
                financial plan and budget.
    (c) Restrictions on Reprogramming of Amounts in Budget During 
Control Years.--
            (1) Submissions of requests to amtrak control board.--If 
        Amtrak seeks to reprogram any amounts provided in a budget for 
        a fiscal year in the control period after the budget is adopted 
        by Amtrak, the Reform Board shall submit such request to the 
        Amtrak Control Board, which shall analyze the effect of the 
        proposed reprogramming on the financial plan and budget for the 
        fiscal year and submit its analysis to Amtrak not later than 15 
        days after receiving the request.
            (2) No action permitted until analysis received.--The 
        Reform Board may not adopt a reprogramming during a fiscal year 
        in the control period, and no officer or employee of Amtrak may 
        carry out any reprogramming during such a year, until the 
        Amtrak Control Board has--
                    (A) provided Amtrak with an analysis of a request 
                for the reprogramming in accordance with paragraph (1); 
                and
                    (B) if the Amtrak Control Board determines that the 
                reprogramming is appropriate, approved the request.

SEC. 354. RESTRICTIONS ON BORROWING BY AMTRAK DURING CONTROL YEAR.

    (a) Prior Approval Required.--
            (1) In general.--Amtrak may not borrow money in a fiscal 
        year during the control period unless the Amtrak Control Board 
        provides prior certification that both the receipt of funds 
        through such borrowing and the repayment of obligations 
        incurred through such borrowing are consistent with the 
        financial plan and budget for the year.
            (2) Revisions to financial plan and budget permitted.--If 
        the Amtrak Control Board determines that the borrowing proposed 
        to be undertaken by Amtrak is not consistent with the financial 
        plan and budget, the Reform Board may submit to the Amtrak 
        Control Board a proposed revision to the financial plan and 
        budget in accordance with section 352(d) so that the borrowing 
        will be consistent with the financial plan and budget as so 
        revised.
            (3) Borrowing described.--This subsection shall apply with 
        respect to any borrowing undertaken by Amtrak.

SEC. 355. DEPOSIT OF ANNUAL FEDERAL PAYMENT WITH AMTRAK CONTROL BOARD.

    (a) Deposit Into Escrow Account.--In the case of a fiscal year in 
the control period, the Secretary of the Treasury shall deposit the 
annual Federal payment to Amtrak into an escrow account held by the 
Amtrak Control Board, which shall allocate the funds to the Reform 
Board at such intervals and in accordance with such terms and 
conditions as it considers appropriate to implement the financial plan 
for the year. In establishing such terms and conditions, the Amtrak 
Control Board shall give priority to using the Federal payment for cash 
flow management and the payment of outstanding bills owed by Amtrak.
    (b) Expenditure of Funds From Account in Accordance With Amtrak 
Control Board Instructions.--Any funds allocated by the Amtrak Control 
Board to Amtrak from the escrow account described in paragraph (1) may 
be expended by the Amtrak only in accordance with the terms and 
conditions established by the Amtrak Control Board at the time the 
funds are allocated.

SEC. 356. EFFECT OF FINDING OF NON-COMPLIANCE WITH FINANCIAL PLAN AND 
              BUDGET.

    (a) Submission of Reports.--Not later than 30 days after the 
expiration of each quarter of each fiscal year (beginning with the 
current fiscal year), Amtrak shall submit reports to the Amtrak Control 
Board describing the actual revenues obtained and expenditures made by 
Amtrak during the quarter with its cash flows during the quarter, and 
comparing such actual revenues, expenditures, and cash flows with the 
most recent projections for these items.
    (b) Demand for Additional Information.--If the Amtrak Control Board 
determines, based on reports submitted by Amtrak under subsection (a), 
independent audits, or such other information as the Amtrak Control 
Board may obtain, that the revenues or expenditures of Amtrak in a 
fiscal year during the control period are not consistent with the 
financial plan and budget for the year, the Amtrak Control Board shall 
require Amtrak to provide such additional information as the Amtrak 
Control Board determines to be necessary to explain the inconsistency.
    (c) Certification of Variance.--
            (1) In general.--After requiring Amtrak to provide 
        additional information under subsection (b), the Amtrak Control 
        Board shall certify to Amtrak, the President, the Secretary of 
        Transportation, and Congress that Amtrak is at variance with 
        the financial plan and budget unless--
                    (A)(i) the additional information provides an 
                explanation for the inconsistency which the Amtrak 
                Control Board finds reasonable and appropriate; or
                    (ii) The Amtrak Control Board adopts or implements 
                remedial action (including revising the financial plan 
                and budget pursuant to section 352(d)) to correct the 
                inconsistency which the Amtrak Control Board finds 
                reasonable and appropriate, taking into account the 
                terms of the financial plan and budget; and
                    (B) Amtrak agrees to submit the reports described 
                in subsection (a) on a monthly basis for such period as 
                the Amtrak Control Board may require.
            (2) Special rule for inconsistencies attributable to acts 
        of congress.--
                    (A) Determination by amtrak control board.--If the 
                Amtrak Control Board determines that the revenues or 
                expenditures of Amtrak during a fiscal year during the 
                control period are not consistent with the financial 
                plan and budget for the year as approved by the Amtrak 
                Control Board under section 352 as a result of the 
                terms and conditions of the budget of Amtrak for the 
                year as enacted by Congress or as a result of any other 
                law enacted by Congress which affects, Amtrak, the 
                Amtrak Control Board shall so notify the Reform Board 
                and the Congress.
                    (B) Certification.--In the case of an inconsistency 
                described in subparagraph (A), the Amtrak Control Board 
                shall certify to Amtrak, the President, the Secretary 
                of Transportation, and Congress that Amtrak is at 
                variance with the financial plan and budget unless 
                Amtrak adopts or implements remedial action (including 
                revising the financial plan and budget pursuant to 
                section 352(d)) to correct the inconsistency which the 
                Amtrak Control Board finds reasonable and appropriate, 
                taking into account the terms of the financial plan and 
                budget.
    (d) Effect of Certification.--If the Amtrak Control Board certifies 
to the Secretary of Transportation that a variance exists--
            (1) the Amtrak Control Board may withhold any funds 
        deposited with the Amtrak Control Board under section 355 which 
        would otherwise be expended on behalf of Amtrak; and
            (2) the Secretary may withhold funds otherwise payable to 
        Amtrak under such Federal programs as the Amtrak Control Board 
        may specify, in such amounts and under such other conditions as 
        the Amtrak Control Board may specify.

SEC. 357. RECOMMENDATIONS ON FINANCIAL STABILITY AND MANAGEMENT 
              RESPONSIBILITY.

    (a) In General.--The Amtrak Control Board may at any time submit 
recommendations to Amtrak, the President, and Congress on actions 
Amtrak or the Federal Government may take to ensure compliance by 
Amtrak with a financial plan and budget or to otherwise promote the 
financial stability, management responsibility, and service delivery 
efficiency of Amtrak, including recommendations relating to--
            (1) the management of Amtrak's financial affairs, including 
        cash forecasting, information technology, placing controls on 
        expenditures for personnel, reducing benefit costs, reforming 
        procurement practices, and placing other controls on 
        expenditures;
            (2) the relationship between Amtrak and the Federal 
        Government;
            (3) the structural relationship of business units within 
        Amtrak;
            (4) the modification of existing revenue structures, 
        including route structures, or the establishment of additional 
        revenue structures;
            (5) the establishment of alternatives for meeting 
        obligations to pay for railroad retirement expenses;
            (6) modifications or transfers of the types of services 
        which are the responsibility of Amtrak;
            (7) the effects of Amtrak policies;
            (8) the establishment of a personnel system for employees 
        of Amtrak which is based upon employee performance standards; 
        and
            (9) the improvement of personnel training and proficiency, 
        the adjustment of staffing levels, and the improvement of 
        training and performance of management and supervisory 
        personnel.
    (b) Response to Recommendations for Actions Within Amtrak.--
            (1) In general.--In the case of any recommendations 
        submitted under subsection (a) during a fiscal year during the 
        control period which are within the authority of Amtrak to 
        adopt, not later than 15 days after receiving the 
        recommendations, the Reform Board shall submit a statement to 
        the Amtrak Control Board, the President, and Congress which 
        provides notice as to whether the Reform Board will adopt the 
        recommendations.
            (2) Implementation plan required for adopted 
        recommendations.--If Amtrak notifies the Amtrak Control Board 
        and Congress under paragraph (1) that Amtrak will adopt any of 
        the recommendations submitted under subsection (a), the Reform 
        Board shall include in the statement a written plan to 
        implement the recommendation which includes--
                    (A) specific performance measures to determine the 
                extent to which Amtrak has adopted the recommendation; 
                and
                    (B) a schedule for auditing Amtrak's compliance 
                with the plan.
            (3) Explanations required for recommendations not 
        adopted.--If Amtrak notifies the Amtrak Control Board, the 
        President, and Congress under paragraph (1) that Amtrak will 
        not adopt any recommendation submitted under subsection (a) 
        which Amtrak has authority to adopt, the Reform Board shall 
        include in the statement explanations for the rejection of the 
        recommendations.
    (c) Implementation of Rejected Recommendations by Amtrak Control 
Board.--If Amtrak notifies the Amtrak Control Board, the President, and 
Congress under subsection (b)(1) that Amtrak will not adopt any 
recommendation submitted under subsection (a) which Amtrak has 
authority to adopt, the Amtrak Control Board may by a majority vote of 
its members take such action concerning the recommendation as it deems 
appropriate, after consulting with the Secretary of Transportation.

SEC. 358. SPECIAL RULES FOR FISCAL YEAR 2002.

    (a) Adoption of Transition Budget.--Notwithstanding any provision 
of section 352 to the contrary, in the case of fiscal year 2002, the 
following rules shall apply:
            (1) Not later than 45 days after the appointment of its 
        members, the Amtrak Control Board shall review the proposed 
        budget and Strategic Business Plan for Amtrak for such fiscal 
        year submitted to Congress, and shall submit any 
        recommendations for modifications to such financial plan and 
        budget to promote the financial stability of Amtrak to the 
        Reform Board, the President, and Congress.
            (2) Not later than 15 days after receiving the 
        recommendations of the Amtrak Control Board submitted under 
        paragraph (1), the Reform Board shall promptly adopt a revised 
        budget for the fiscal year (in this section referred to as the 
        ``transition budget''), and shall submit the transition budget 
        to the Amtrak Control Board, the President, and Congress.
            (3) Not later than 15 days after receiving the transition 
        budget from the Reform Board under paragraph (2), the Amtrak 
        Control Board shall submit a report to Amtrak, the President, 
        and Congress analyzing the budget and shall include in the 
        report such recommendations for revisions to the transition 
        budget as the Amtrak Control Board considers appropriate to 
        promote the financial stability of Amtrak during the fiscal 
        year.
    (b) Financial Plan and Budget.--
            (1) Deadline for submission.--For purposes of section 352, 
        Amtrak shall submit the financial plan and budget for fiscal 
        year 2002 as soon as practicable after the date of the 
        enactment of this Act (in accordance with guidelines 
        established by the Amtrak Control Board).
            (2) Adoption by amtrak.--In accordance with the procedures 
        applicable under section 352 (including procedures providing 
        for review by the Amtrak Control Board)--
                    (A) Amtrak shall adopt the financial plan and 
                budget for the fiscal year; and
                    (B) the financial plan and budget adopted by Amtrak 
                (and, in the case of a financial plan and budget 
                disapproved by the Amtrak Control Board, together with 
                the financial plan and budget approved and recommended 
                by the Amtrak Control Board) shall be submitted to 
                Congress.
            (3) Transition budget as temporary financial plan and 
        budget.--Until the approval of the financial plan and budget 
        for fiscal year 2002 by the Amtrak Control Board under this 
        subsection, the transition budget established under subsection 
        (a) shall serve as the financial plan and budget adopted under 
        this subtitle for purposes of this Act (and any provision of 
        law amended by this Act) for fiscal year 2002.

SEC. 359. CONTROL PERIOD DESCRIBED.

    (a) Initiation.--The control period is deemed to exist upon the 
enactment of this Act.
    (b) Termination.--
            (1) In general.--The control period terminates upon the 
        certification by the Amtrak Control Board that the requirements 
        of section 201 of this Act have been met.
            (2) Consultation with inspector general.--In making the 
        certification under this subsection, the Amtrak Control Board 
        shall consult with the Inspector General of the Department of 
        Transportation.

SEC. 360. GENERAL ASSISTANCE IN ACHIEVING FINANCIAL STABILITY AND 
              MANAGEMENT EFFICIENCY.

    In addition to any other actions described in this title, the 
Amtrak Control Board may undertake cooperative efforts to assist Amtrak 
in achieving financial stability and management efficiency, including--
            (1) assisting Amtrak in avoiding defaults, eliminating and 
        liquidating deficits, maintaining sound budgetary practices, 
        and avoiding interruptions in the delivery of services;
            (2) assisting Amtrak in improving the training and 
        effectiveness of personnel, and the efficiency of management 
        and supervision; and
            (3) making recommendations to the President for 
        transmission to Congress on changes to this Act or other 
        Federal laws, or other actions of the Federal Government, which 
        would assist Amtrak in complying with an approved financial 
        plan and budget under subtitle A.

SEC. 361. OBTAINING REPORTS.

    The Amtrak Control Board may require Amtrak to prepare and submit 
such reports as the Amtrak Control Board considers appropriate to 
assist it in carrying out its responsibilities under this Act, 
including submitting copies of any reports regarding revenues, 
expenditures, budgets, costs, plans, operations, estimates, and other 
financial or budgetary matters of Amtrak.

SEC. 362. REPORTS AND COMMENTS.

    (a) Annual Reports to Congress.--Not later than 30 days after the 
last day of each fiscal year in the control period, the Amtrak Control 
Board shall submit a report to Congress describing--
            (1) the progress made by Amtrak in meeting the objectives 
        of this Act during the fiscal year;
            (2) the assistance provided by the Amtrak Control Board to 
        Amtrak in meeting the purposes of this Act for the fiscal year; 
        and
            (3) any other activities of the Amtrak Control Board during 
        the fiscal year.
    (b) Review and Analysis of Performance and Financial Accountability 
Reports.--The Amtrak Control Board shall review each report prepared 
and submitted by Amtrak, and shall submit a report to Congress 
analyzing the completeness and accuracy of such reports.
    (c) Comments Regarding Activities of Amtrak.--At any time during a 
fiscal year in the control period, the Amtrak Control Board may submit 
a report to Congress describing any action taken by Amtrak (or any 
failure to act by Amtrak) which the Amtrak Control Board determines 
will adversely affect Amtrak's ability to comply with an approved 
financial plan and budget under subtitle A or will otherwise have a 
significant adverse impact on the best interests of Amtrak, its 
employees and its customers.
    (d) Making Reports Publicly Available.--The Amtrak Control Board 
shall make any report submitted under this section available to the 
public, except to the extent that the Amtrak Control Board determines 
that the report contains confidential material.

SEC. 363. INSPECTOR GENERAL REVIEW OF AMTRAK CONTROL BOARD.

    (a) Application of Inspector General Act.--The Inspector General 
Act of 1978 (5 U.S.C. App.), and any other provision of law authorizing 
activities of the Inspector General of the Department of 
Transportation, shall apply to the Amtrak Control Board.
    (b) Review and Audit.--The Inspector General of the Department of 
Transportation shall, on an annual basis, review and audit the 
operations, budget, and program actions of the Amtrak Control Board. 
The Inspector General shall provide the results of the review to the 
Senate Committee on Commerce, Science, and Transportation and the House 
of Representatives Committee on Transportation and Infrastructure.

                 Subtitle D--Use of Highway Trust Fund

SEC. 371. HIGHWAY TRUST FUND FLEXIBILITY.

    Notwithstanding any provision of law to the contrary, a State may 
use amounts otherwise available for obligation or expenditure from the 
Highway Trust Fund established by section 9503 of the Internal Revenue 
Code of 1986 to provide intercity rail passenger transportation 
service. A State may not use such amounts to provide the State share 
for a Federally-assisted project.

                   TITLE IV--RAIL PASSENGER SECURITY

SEC. 401. EMERGENCY SECURITY ASSISTANCE.

    (a) In General.--
            (1) Systemwide security upgrades.--There are authorized to 
        be appropriated to the Secretary of Transportation for the use 
        of Amtrak $510,000,000 for systemwide security upgrades, 
        including the reimbursement of extraordinary security-related 
        costs determined by the Secretary to have been incurred by 
        Amtrak since September 11, 2001, and including the hiring and 
        training of additional police officers, canine-assisted 
        security units, and surveillance equipment.
            (2) Tunnel projects.--There are authorized to be 
        appropriated to the Secretary of Transportation $898,000,000 to 
        be used to complete New York tunnel life safety projects and 
        rehabilitate tunnels in Washington, D.C., and Baltimore, 
        Maryland.
    (b) Availability of Appropriated Funds.--Amounts appropriated 
pursuant to subsection (a) shall remain available until expended.
    (c) Plan Required.--
            (1) Systemwide upgrades.--The Secretary may not make 
        amounts available to Amtrak for obligation or expenditure under 
        subsection (a)(1) for implementing systemwide security upgrades 
        until--
                    (A) Amtrak has submitted to the Secretary, and the 
                Secretary has approved, a plan for such upgrades; and
                    (B) Amtrak has submitted to the Secretary such 
                additional information as the Secretary may require in 
                order to ensure full accountability for the obligation 
                or expenditure of amounts made available to Amtrak for 
                the purpose for which the funds are provided.
            (2) Tunnel projects.--The Secretary may not make amounts 
        available for obligation or expenditure under subsection (a)(2) 
        for completing the tunnel life safety and rehabilitation 
        projects until the  Secretary has approved an engineering and 
financial plan for such projects.
    (d) Financial Contribution From Other Tunnel Users.--The Secretary 
shall, taking into account the need for the timely completion of all 
life safety portions of the tunnel projects described in subsection 
(a)(2)--
            (1) consider the extent to which rail carriers other than 
        Amtrak use the tunnels;
            (2) consider the feasibility of seeking a financial 
        contribution from those other rail carriers toward the costs of 
        the projects; and
            (3) obtain financial contributions or commitments from such 
        other rail carriers if feasible.
    (e) Targeting Security Expenditures.--The Secretary shall ensure 
that amounts appropriated pursuant to subsection (a)(1) are obligated 
or expended for the most significant projects for addressing security 
concerns, but not limited to projects in the Northeast Corridor.
    (f) Overlap Review by DOT Inspector General.--The Inspector General 
shall, as part of the Department's annual assessment of Amtrak's 
financial status and capital funding requirements review the obligation 
and expenditure of funds under each such funding document, procedure, 
or arrangement to ensure that the expenditure and obligation of those 
funds are consistent with the purposes for which they are provided 
under this Act.

                        TITLE V--APPROPRIATIONS

SEC. 501. AUTHORIZATION OF APPROPRIATIONS.

    Section 24104 is amended to read as follows:
``Sec. 24104. Authorization of appropriations
    ``(a) Operating Expenses of the Corporation.--There are authorized 
to be appropriated to the Secretary of Transportation--
            ``(1) $400,000,000 for fiscal year 2003,
            ``(2) $300,000,000 for fiscal year 2004,
            ``(3) $200,000,000 for fiscal year 2005, and
            ``(4) $100,000,000 for fiscal year 2006,
for the benefit of Amtrak and its subsidiaries for operating expenses 
including payments of tax liabilities under section 3221 of the 
Internal Revenue Code of 1986, obligations under section 8(a) of the 
Railroad Unemployment Insurance Act (45 U.S.C. 358(a)), and obligations 
of Amtrak under section 3321 of the Internal Revenue Code of 1986.
    ``(b) Capital Expenses.--
            ``(1) There are authorized to be appropriated to the 
        Secretary of Transportation--
            ``(A) $400,000,000 for fiscal year 2003,
            ``(B) $400,000,000 for fiscal year 2004,
            ``(C) $400,000,000 for fiscal year 2005, and
            ``(D) $400,000,000 for fiscal year 2006,
for the purpose of making capital grants to facilitate the operation of 
intercity rail passenger service.
            ``(2) In making capital grants under this subsection, the 
        Secretary shall require that investments undertaken with funds 
        provided by such grants meet the standards for capital 
        investments as provided for under Generally Accepted Accounting 
        Principles.
            ``(3) In making capital grants under this subsection, the 
        Secretary may require Amtrak or any other potential recipient 
        of grant funds to submit such information as the Secretary may 
        require in order to ensure full accountability for the 
        obligation or expenditure of the amounts made available.
            ``(4) The Secretary shall require that the grant recipient 
        provide not less than 20 percent of the cost of the capital 
        investment to be undertaken with the grant funds.
    ``(c) Northeast Corridor Improvements.--There are authorized to be 
appropriated to the Secretary of Transportation--
            ``(1) $500,000,000 for fiscal year 2003,
            ``(2) $500,000,000 for fiscal year 2004,
            ``(3) $500,000,000 for fiscal year 2005, and
            ``(4) $500,000,000 for fiscal year 2006,
to undertake the capital investments in the Northeast Corridor 
authorized by section 254 of the Rail Passenger Service Improvement 
Act.
    ``(d) Availability of Amounts Appropriated.--Amounts appropriated 
under this section remain available until expended.''.

       TITLE VI--TECHNICAL AND CONFORMING CHANGES IN EXISTING LAW

SEC. 601. AMENDMENTS TO CHAPTER 241 OF TITLE 49, UNITED STATES CODE.

    (a) Definitions.--Section 24102 is amended--
            (1) by striking paragraph (2) and redesignating paragraphs 
        (3), (4), (5), and (6) as paragraphs (2), (3), (4), and (5), 
        respectively; and
            (2) by inserting after paragraph (5), as so redesignated, 
        the following:
            ``(6) `rail passenger operator' means a person, including a 
        unit of State or local government, acting pursuant to a 
        franchise granted by the Secretary of Transportation to provide 
        intercity rail passenger service for compensation.''.
    (b) Enforcement.--Section 24103 is amended--
            (1) by striking ``Amtrak or'' in subsection (a) and 
        inserting ``Amtrak, a rail passenger operator, or'';
            (2) by inserting ``or a rail passenger operator'' after 
        ``Amtrak'' in subsection (b); and
            (3) by striking ``Amtrak or'' in subsection (c) and 
        inserting ``Amtrak, a rail passenger operator, or''.

SEC. 602. AMENDMENTS TO CHAPTER 243 OF TITLE 49, UNITED STATES CODE.

    (a) Status of Amtrak; Applicable Laws.--Section 24301 is amended--
            (1) by striking ``Amtrak,'' and inserting ``Amtrak or a 
        rail passenger operator,'' in the first sentence of subsection 
        (c);
            (2) by striking the second sentence of subsection (c);
            (3) by striking ``Amtrak.'' in subsection (d) and inserting 
        ``Amtrak or a rail passenger operator.'';
            (4) by inserting ``or a rail passenger operator'' after 
        ``Amtrak'' in subsection (g);
            (5) by striking ``Amtrak.'' in subsection (h) and inserting 
        ``Amtrak or a rail passenger operator.'';
            (6) by inserting ``or a rail passenger operator'' after 
        ``Amtrak'' the second place it appears in subsection (h);
            (7) by inserting ``or a rail passenger operator'' after 
        ``Amtrak'' in subsection (i);
            (8) by striking ``Amtrak.'' in subsection (m)(2) and 
        inserting ``Amtrak or a rail passenger operator.'';
            (9) by striking ``Amtrak'' the first place it appears in 
        subsection (n) and inserting ``Amtrak and other rail passenger 
        operators''; and
            (10) by striking ``Amtrak'' the second place it appears in 
        subsection (n) and inserting ``rail''.
    (b) Board of Directors.--Section 24302 is amended--
            (1) by striking subsection (a)(3); and
            (2) by striking subsection (c).
    (c) General Authority.--Section 24305 is amended--
            (1) by striking paragraph (2) of subsection (a) and 
        redesignating paragraph (3) as paragraph (2);
            (2) by striking paragraph (4) of subsection (b) and 
        designating paragraphs (5) and (6) as paragraphs (4) and (5), 
        respectively; and
            (3) by inserting ``For items acquired with funds provided 
        by the Federal Government,'' in subsection (f)(2) before 
        ``Amtrak''.
    (d) Mail, Express, and Auto-Ferry Transportation.--Section 24306(b) 
is amended--
            (1) by striking ``Amtrak or'' and inserting ``Amtrak, a 
        rail passenger operator, or''; and
            (2) by inserting ``or a rail passenger operator'' after 
        ``Amtrak'' in the second sentence.
    (e) Special Transportation.--Section 24307 is amended by inserting 
``and any other rail passenger operator'' after ``Amtrak'' in 
subsection (a).
    (f) Retaining and Maintaining Facilities.--Section 24309 is 
amended--
            (1) by striking subsection (c) and redesignating 
        subsections (d) and (e) as subsections (c) and (d), 
        respectively;
            (2) by inserting ``or another rail passenger operator'' 
        after ``Amtrak'' in paragraph (1) of subsection (c), as 
        redesignated; and
            (3) by inserting ``or the other rail passenger operator'' 
        after ``Amtrak'' each place it appears in paragraph (2) of 
        subsection (c), as redesignated.
    (g) Acquiring Interests in Property by Eminent Domain.--Section 
24311 is amended--
            (1) by striking ``or'' after the semicolon in subsection 
        (a)(1)(A);
            (2) by striking ``Amtrak.'' in subsection (a)(1)(B) and 
        inserting ``Amtrak; or'';
            (3) by inserting after subsection (a)(1)(B) the following:
                    ``(C) common stock of the National Railroad 
                Passenger Corporation outstanding on the date of 
                enactment of the Rail Passenger Service Improvement 
                Act.''; and
            (4) by striking ``located.'' in subsection (b)(1) and 
        inserting ``located, or, in the case of common stock of the 
        National Railroad Passenger Corporation outstanding on the date 
        of enactment of the Rail Passenger Service Improvement Act, the 
        district court for the District of Columbia.''.
    (h) Reports and Audits.--Section 24315 is amended--
            (1) by striking ``year,'' in subsection (a) the first place 
        it appears and inserting ``year in which Amtrak receives a 
        Federal operating subsidy,'';
            (2) by striking ``year,'' in subsection (b) the first place 
        it appears and inserting ``year in which Amtrak receives a 
        Federal operating subsidy,''; and
            (3) by striking subsection (c) and redesignating 
        subsections (d) through (h) as subsections (c) through (g), 
        respectively.

SEC. 603. AMENDMENTS TO CHAPTER 247 OF TITLE 49, UNITED STATES CODE.

    (a) Repeals.--Sections 24701 and 24706 are repealed.
    (b) International Transportation.--Section 24709 is amended--
            (1) by redesignating it as section 24701;
            (2) by inserting ``or a rail passenger operator'' after 
        ``Amtrak'' the first place it appears; and
            (3) by inserting the words ``or the rail passenger 
        operator'' after ``Amtrak'' the second place it appears.
    (c) Conforming Amendments.--
            (1) The chapter analysis for chapter 247 is amended to read 
        as follows:

              ``CHAPTER 247. INTERNATIONAL TRANSPORTATION

``Sec.
``24701. International transportation.''.
            (2) The subtitle analysis for subtitle V is amended by 
        striking the item relating to chapter 247 and inserting the 
        following:

247. International transportation..........................    24701''.

SEC. 604. AMENDMENTS TO CHAPTER 249 OF TITLE 49, UNITED STATES CODE.

    (a) Repeals.--Chapter 249 is amended by striking sections 24901, 
24904, 24906, 24908, and 24909.
    (b) Applicable Procedures.--Section 24902 is amended--
            (1) by striking the section caption and inserting the 
        following:
``Sec. 24902. Applicable procedures'';
            (2) by striking subsections (a) through (i);
            (3) by striking ``by or for the benefit of Amtrak as part 
        of, or in furtherance of the Northeast Corridor Improvement 
        Project'' in subsection (j) and inserting ``by the Secretary 
        under section 254 of the Rail Passenger Service Improvement 
        Act'';
            (4) by striking the last sentence of subsection (j);
            (5) by striking ``(i)'' and ``(ii)'' in subsection (j) and 
        inserting ``(1)'' and ``(2)'', respectively; and
            (6) by striking ``(j) Applicable procedures.--'' in 
        subsection (j).
    (c) Coordination Board and Safety Committee.--Section 24905 is 
amended--
            (1) by striking the section caption and inserting the 
        following:
``Sec. 24905. Northeast corridor safety committee'';
            (2) by striking subsection (a);
            (3) by striking ``(b) Northeast Corridor Safety 
        Committee.--(1)'' and inserting ``(a) In General.--'';
            (4) by redesignating subparagraphs (A) through (G) of 
        paragraph (1) as paragraphs (1) through (7), respectively;
            (5) by striking ``Amtrak'' in paragraph (2), as 
        redesignated, and inserting ``the rail passenger operator 
        providing intercity rail passenger service on the main line of 
        the Northeast Corridor;'';
            (6) by striking ``(2) The'' and inserting ``(b) Meetings.--
        '';
            (7) by striking ``(3) At'' and inserting ``(c) Report.--''; 
        and
            (8) by striking ``(4) The'' and inserting ``(d) 
        Termination.--''.
    (d) Conforming Amendments.--
            (1) The chapter analysis for chapter 249 is amended by 
        striking the item relating to section 24902 and inserting the 
        following:

``24902. Applicable procedures.''.
            (2) The chapter analysis for chapter 249 is amended by 
        striking the item relating to section 24905 and inserting the 
        following:

``24905. Northeast corridor safety committee.''.

SEC. 605. AMENDMENTS TO CHAPTER 281 OF TITLE 49, UNITED STATES CODE.

    (a) Limit on Accident or Incident Liability.--Section 28102 is 
amended--
            (1) by striking ``Amtrak'' the first and third places it 
        appears in subsection (a) and inserting ``Amtrak or a rail 
        passenger operator'';
            (2) by striking ``Amtrak,'' in subsection (a) and inserting 
        ``Amtrak or the rail passenger operator,''; and
            (3) by striking ``Amtrak'' in subsection (c) and inserting 
        ``Amtrak, a rail passenger operator,''.
    (b) Limitations on Rail Passenger Transportation Liability.--
Section 28103 is amended--
            (1) by inserting ``and any other rail passenger operator'' 
        in subsection (c) after ``Amtrak''; and
            (2) by inserting ``any other rail passenger operator,'' 
        after ``Amtrak,'' each place it appears in subsection (e).

SEC. 606. AMENDMENTS TO THE AMTRAK REFORM AND ACCOUNTABILITY ACT OF 
              1997.

    (a) Repeal of Certain Sections of Title II.--Sections 202, 203, 
204, 205, and 209 of the Amtrak Reform and Accountability Act of 1997 
(49 U.S.C. 24101 note and 24104 note) are repealed.
    (b) Repeal of Certain Sections of Title IV.--Sections 412 and 413 
of the Amtrak Reform and Accountability Act of 1997 (49 U.S.C. 24305 
note) are repealed.
    (c) Inspector General Assessment.--Section 409(c)(1) of the Amtrak 
Reform and Accountability Act of 1997 (5 U.S.C. App. 8G note) is 
amended by striking ``similar to the assessment required by section 
202(a).'' and inserting ``of the financial requirements of Amtrak 
through fiscal year 2006, including a review of Amtrak's strategic 
business and capital plans (including strategic business and capital 
plans of any subsidiary of Amtrak), revenues and expenses including the 
allocation of these among subsidiaries, and such other matters as the 
Inspector General deems appropriate.''.
                                 <all>