[Congressional Record Volume 143, Number 63 (Wednesday, May 14, 1997)]
[Senate]
[Pages S4479-S4489]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mrs. HUTCHISON:
S. 738. A bill to reform the statutes relating to Amtrak, to
authorize appropriations for Amtrak, and for other purposes; to the
Committee on Commerce, Science, and Transportation.
AMTRAK REFORM AND ACCOUNTABILITY ACT OF 1997
Mrs. HUTCHISON. Mr. President, I think it is very important in this
country that we have a national rail passenger system. Rail is a viable
alternative transportation. We now have a bus system that is feeding
into Amtrak stations so people can come from small communities on the
bus, into the Amtrak station, and go anywhere in the country as long as
we keep our national system. You can go from Marshall, TX, to Chicago,
IL, or to San Antonio and then to Los Angeles or all the way to
Florida. It is really an exciting opportunity.
However, Mr. President, the national rail passenger service that we
have now is really just an experiment. It really does not work very
well, through no fault of the people who run it. Tom Downs is actually
doing a terrific job. But we in Congress have put so many constraints
and mandates on him that he cannot possibly compete to survive.
So, in fact, it is time to get the railroad back on track. It is time
to get
[[Page S4480]]
this railroad right. We can do it if Congress will correct some of the
problems that we have put on this rail passenger train and let them
compete. We have told them, ``Run a good railroad,'' but we have tied
one arm behind their back. So now it is time to let them compete, with
the help of the bill I am introducing, most of which passed out of the
Commerce Committee last year.
I am chairman of the Surface Transportation Subcommittee. It is in my
purview to reauthorize Amtrak, and I want to reauthorize it and reform
it so that it can compete and, hopefully, by the year 2002, there will
not have to be operational subsidies from the taxpayers of America. But
there is no question this will fail unless we have these reforms that
will allow Amtrak to operate more like a business.
So, what are we trying to do? We are trying to have a system that is
up and going without operational subsidies by the year 2002. Many of my
friends say, ``I do not know why we should help Amtrak. Why should we
have taxpayer subsidies of Amtrak when all the other transportation
modes do not need taxpayer subsidies?'' Every transportation mode has
taxpayer subsidies. Part of the reason we have mobility in our country
is because we subsidize highways, we subsidize airports, we now also
subsidize trains, and it does provide mobility.
I want to try to get Amtrak back on track, get it to run right, and
see if we can have a passenger rail system that is dependable, that
provides good service and viable transportation options to all the
people of our country, whether they are elderly and do not want to
drive, whether they just cannot drive, whether they do not like to fly,
whether they live in a small community that does not have any kind of
passenger service. We want people to have this mobility.
How are we going to do it? The Amtrak reform bill, first, will repeal
two laws that have been very expensive. One is the 6-year termination
provisions for anyone who is employed at Amtrak, if a line is shut
down. Now, I am sure there are a lot of people in America that would
like to have a 6-year termination agreement that says if you lose your
job, you get 6 years full pay. That would be nice, but it is not
realistic, and it certainly does not meet today's standards. Even many
Amtrak employees tell me that they realize this is out of line. It is a
congressional mandate that they have a 6-year termination agreement,
but they know that Amtrak cannot compete with that kind of agreement in
place. It is just much too expensive. They would rather keep their
jobs. They love what they are doing. They want to keep their jobs
rather than have a 6-year termination agreement.
So we want to require Amtrak to have free and open bargaining with
its unions in the absence of a Government mandate of a 6-year
termination agreement. In fact, it would be free and open like every
other union negotiation is in this country. That is fair, and I think
most Amtrak employees agree that is fair. Let them sit at the
bargaining table with open and fair negotiations, and they will be able
to get the best that the market can bear while still having a good job,
a viable job, and doing a service for the people of our country.
This bill will also extinguish the prohibition on contracting out.
One of the things that Tom Downs tells me they need is the ability to
make the decision if they want to contract out in order to save costs,
because if we are going to tell Mr. Downs that he has to run a tight
ship, we cannot put mandates on him that are not anywhere else in any
other competitive system in our country and expect him to do a good
job. We have to take the shackles off.
We also must give him the ability to have some liability reform. He
says one of the most expensive things he has to deal with is liability
and not being able to have the right of indemnification with the people
that own the tracks Amtrak uses. We need to have liability reform, and,
in fact, this was passed out of the Commerce Committee last year. Like
last year's bill, the liability reform in my bill would have caps on
punitive damages for two times compensatory damages or $250,000,
whichever is greater.
In fact, these kinds of liability limits, I think, are quite
reasonable. Many States are enacting these kinds of liability limits,
in particular for publicly assisted transportation services. It allows
a person who has been wrongly injured to have compensation for that,
but it puts some limitation so there will be a budget on it, so that
there will be some reliability about how much you have to put in the
budget for that kind of occurrence. It also confirms the right of
passenger rail operators and owners of rights-of-way to contractually
indemnify each other for liability arising out of an accident.
In addition to the reforms, we have accountability. We have an
independent audit of Amtrak that will commence as soon as the bill is
passed and signed by the President that will provide a basis upon which
to judge what we can do better in Amtrak.
Like last year's bill, we also have an Amtrak reform council that is
designed to monitor Amtrak's progress and viability and to make
independent recommendations. We want overseers who are saying to
Amtrak, is what you are doing what's best, and also to tell Congress
that if we are not going to be able to make this work, we are not going
to keep throwing money at Amtrak if it does not have a chance to
survive.
So we have told this independent council if you make a determination
that Amtrak just cannot make it, even with the reforms that we are
giving them, then tell us. We will pull the plug and we will say it was
a great effort but it just did not work.
Mr. President, what we are trying to do is give Amtrak a chance. We
are trying to get it right. It is time to get this railroad right. In
fact, it is time to get it back on track. We have had 26 years of
experiments. We have not gotten it right yet. Most of that is at the
feet of Congress. We have to give them a chance to compete if, in fact,
we are going to have by the year 2002 a national rail passenger train
opportunity--real mobility for people that live in small towns, people
who are elderly, people who do not want to fly, and who can't fly or
simply want more transportation options. We want mobility in our
country. And we have made huge investments in infrastructure in our
country in highways and airports. I think rail is a component part of
that system.
We want a passenger rail opportunity in this country. But we don't
want taxpayers subsidizing the operations of trains for the passengers
who do not choose to use this route.
So we believe that this is the fairest way--reauthorize, reform, tell
them to get their act together, and give them the tools to do it. That
is the mandate of this bill.
So, Mr. President, I thank you and ask unanimous consent that this
legislation be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 738
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF SECTIONS.
(a) Short Title.--This Act may be cited as the ``Amtrak
Reform and Accountability Act of 1997''.
(b) Table of Sections.--The table of sections for this Act
is as follows:
Sec. 1. Short title; table of sections.
Sec. 2. Findings.
Title I--Reforms
Subtitle A--Operational Reforms
Sec. 101. Basic system.
Sec. 102. Mail, express, and auto-ferry transportation.
Sec. 103. Route and service criteria.
Sec. 104. Additional qualifying routes.
Sec. 105. Transportation requested by States, authorities, and other
persons.
Sec. 106. Amtrak commuter.
Sec. 107. Through service in conjunction with intercity bus operations.
Sec. 108. Rail and motor carrier passenger service.
Sec. 109. Passenger choice.
Sec. 110. Application of certain laws.
Subtitle B--Procurement
Sec. 121. Contracting out.
Subtitle C--Employee Protection Reforms
Sec. 141. Railway Labor Act Procedures.
Sec. 142. Service discontinuance.
Subtitle D--Use of Railroad Facilities
Sec. 161. Liability limitation.
Title II--Fiscal Accountability
Sec. 201. Amtrak financial goals.
Sec. 202. Independent assessment.
Sec. 203. Amtrak Reform Council.
Sec. 204. Sunset trigger.
Sec. 205. Access to records and accounts.
[[Page S4481]]
Sec. 206. Officers' pay.
Sec. 207. Exemption from taxes.
Title III--Authorization of Appropriations
Sec. 301. Authorization of appropriations.
Title IV--Miscellaneous
Sec. 401. Status and applicable laws.
Sec. 402. Waste disposal.
Sec. 403. Assistance for upgrading facilities.
Sec. 404. Demonstration of new technology.
Sec. 405. Program master plan for Boston-New York main line.
Sec. 406. Americans with Disabilities Act of 1990.
Sec. 407. Definitions.
Sec. 408. Northeast Corridor cost dispute.
Sec. 409. Inspector General Act of 1978 amendment.
Sec. 410. Interstate rail compacts.
Sec. 411. Composition of Amtrak board of directors.
SEC. 2. FINDINGS.
The Congress finds that--
(1) intercity rail passenger service is an essential
component of a national intermodal passenger transportation
system;
(2) Amtrak is facing a financial crisis, with growing and
substantial debt obligations severely limiting its ability to
cover operating costs and jeopardizing its long-term
viability;
(3) immediate action is required to improve Amtrak's
financial condition if Amtrak is to survive;
(4) all of Amtrak's stakeholders, including labor,
management, and the Federal government, must participate in
efforts to reduce Amtrak's costs and increase its revenues;
(5) additional flexibility is needed to allow Amtrak to
operate in a businesslike manner in order to manage costs and
maximize revenues;
(6) Amtrak should ensure that new management flexibility
produces cost savings without compromising safety;
(7) Amtrak's management should be held accountable to
ensure that all investment by the Federal Government and
State governments is used effectively to improve the quality
of service and the long-term financial health of Amtrak;
(8) Amtrak and its employees should proceed quickly with
proposals to modify collective bargaining agreements to make
more efficient use of manpower and to realize cost savings
which are necessary to reduce Federal financial assistance;
(9) Amtrak and intercity bus service providers should work
cooperatively and develop coordinated intermodal
relationships promoting seamless transportation services
which enhance travel options and increase operating
efficiencies; and
(10) Federal financial assistance to cover operating losses
incurred by Amtrak should be eliminated by the year 2002.
TITLE I--REFORMS
Subtitle A--Operational Reforms
SEC. 101. BASIC SYSTEM.
(a) Operation of Basic System.--Section 24701 of title 49,
United States Code, is amended to read as follows:
``Sec. 24701. OPERATION OF BASIC SYSTEM
``Amtrak shall provide intercity rail passenger
transportation within the basic system. Amtrak shall strive
to operate as a national rail passenger transportation system
which provides access to all areas of the country and ties
together existing and emergent regional rail passenger
corridors and other intermodal passenger service.''.
(b) Improving Rail Passenger Transportation.--Section 24702
of title 49, United States Code, and the item relating
thereto in the table of sections of chapter 247 of such
title, are repealed.
(c) Discontinuance.--Section 24706 of title 49, United
States Code, is amended--
(1) by striking ``90 days'' and inserting ``180 days'' in
subsection (a)(1);
(2) by striking ``a discontinuance under section 24707(a)
or (b) of this title'' in subsection (a)(1) and inserting
``discontinuing service over a route'';
(3) by inserting ``or assume'' after ``agree to share'' in
subsection (a)(1); and
(4) by striking ``section 24707(a) or (b) of this title''
in subsections (a)(2) and (b)(1) and inserting ``paragraph
(1)''.
(d) Cost and Performance Review.--Section 24707 of title
49, United States Code, and the item relating thereto in the
table of sections of chapter 247 of such title, are repealed.
(e) Special Commuter Transportation.--Section 24708 of
title 49, United States Code, and the item relating thereto
in the table of sections of chapter 247 of such title, are
repealed.
(f) Conforming Amendment.--Section 24312(a)(1) of title 49,
United States Code, is amended by striking ``, 24701(a),''.
SEC. 102. MAIL, EXPRESS, AND AUTO-FERRY TRANSPORTATION.
(a) Repeal.--Section 24306 of title 49, United States Code,
is amended--
(1) by striking the last sentence of subsection (a);
(2) by striking paragraphs (1) and (2) of subsection (b);
and
(3) by striking ``(3) State'' and inserting ``State''.
SEC. 103. ROUTE AND SERVICE CRITERIA.
Section 24703 of title 49, United States Code, and the item
relating thereto in the table of sections of chapter 247 of
such title, are repealed.
SEC. 104. ADDITIONAL QUALIFYING ROUTES.
Section 24705 of title 49, United States Code, and the item
relating thereto in the table of sections of chapter 247 of
such title, are repealed.
SEC. 105. TRANSPORTATION REQUESTED BY STATES, AUTHORITIES,
AND OTHER PERSONS.
Section 24101(c)(2) of title 49, United States Code, is
amended by inserting ``, separately or in combination,''
after ``and the private sector''.
SEC. 106. AMTRAK COMMUTER.
(a) Repeal of Chapter 245.--Chapter 245 of title 49, United
States Code, and the item relating thereto in the table of
chapters of subtitle V of such title, are repealed.
(b) Conforming Amendment.--Section 24301(f) of title 49,
United States Code, is amended to read as follows:
``(f) Tax Exemption for Certain Commuter Authorities.--A
commuter authority that was eligible to make a contract with
Amtrak Commuter to provide commuter rail passenger
transportation but which decided to provide its own rail
passenger transportation beginning January 1, 1983, is
exempt, effective October 1, 1981, from paying a tax or fee
to the same extent Amtrak is exempt.''.
(c) Trackage Rights Not Affected.--The repeal of chapter
245 of title 49, United States Code, by subsection (a) of
this section is without prejudice to the retention of
trackage rights over property owned or leased by commuter
authorities.
SEC. 107. THROUGH SERVICE IN CONJUNCTION WITH INTERCITY BUS
OPERATIONS.
(a) In General.--Section 24305(a) of title 49, United
States Code, is amended by adding at the end the following
new paragraph:
``(3)(A) Except as provided in subsection (d)(2), Amtrak
may enter into a contract with a motor carrier of passengers
for the intercity transportation of passengers by motor
carrier over regular routes only--
``(i) if the motor carrier is not a public recipient of
governmental assistance, as such term is defined in section
10922(d)(1)(F)(i) of this title, other than a recipient of
funds under section 18 of the Federal Transit Act;
``(ii) for passengers who have had prior movement by rail
or will have subsequent movement by rail; and
``(iii) if the buses, when used in the provision of such
transportation, are used exclusively for the transportation
of passengers described in clause (ii).
``(B) Subparagraph (A) shall not apply to transportation
funded predominantly by a State or local government, or to
ticket selling agreements.''.
(b) Policy Statement.--Section 24305(d) of title 49, United
States Code, is amended by adding at the end the following
new paragraph:
``(3) Congress encourages Amtrak and motor common carriers
of passengers to use the authority conferred in section
11342(a) of this title for the purpose of providing improved
service to the public and economy of operation.''.
SEC. 108. RAIL AND MOTOR CARRIER PASSENGER SERVICE.
(a) In General.--Notwithstanding any other provision of law
(other than section 24305(a) of title 49, United States
Code), Amtrak and motor carriers of passengers are
authorized--
(1) to combine or package their respective services and
facilities to the public as a means of increasing revenues;
and
(2) to coordinate schedules, routes, rates, reservations,
and ticketing to provide for enhanced intermodal surface
transportation.
(b) Review.--The authority granted by subsection (a) is
subject to review by the Surface Transportation Board and may
be modified or revoked by the Board if modification or
revocation is in the public interest.
SEC. 109. PASSENGER CHOICE.
Federal employees are authorized to travel on Amtrak for
official business where total travel cost from office to
office is competitive on a total trip or time basis.
SEC. 110. APPLICATION OF CERTAIN LAWS.
(a) Application of FOIA.--Section 24301(e) of title 49,
United States Code, is amended by adding at the end thereof
the following: ``Section 552 of title 5, United States Code,
applies to Amtrak for any fiscal year in which Amtrak
receives a Federal subsidy.''.
(b) Application of Federal Property and Administrative
Services Act.--Section 304A(m) of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253b) applies
to a proposal in the possession or control of Amtrak.''.
Subtitle B--Procurement
SEC. 121. CONTRACTING OUT.
(a) Contracting Out Reform.--Effective 180 days after the
date of enactment of this Act, section 24312 of title 49,
United States Code, is amended--
(1) by striking the paragraph designation for paragraph (1)
of subsection (a);
(2) by striking ``(2)'' in subsection (a)(2) and inserting
``(b)''; and
(3) by striking subsection (b).
The amendment made by paragraph (3) is without prejudice to
the power of Amtrak to contract out the provision of food and
beverage services on board Amtrak trains or to contract out
work not resulting in the layoff of Amtrak employees.
(b) Notices.-- Notwithstanding any arrangement in effect
before the date of the enactment of this Act, notices under
section 6 of the Railway Labor Act (45 U.S.C. 156) with
respect to all issues relating to contracting out by Amtrak
of work normally performed by an employee in a bargaining
unit covered by a contract between Amtrak and a labor
organization representing Amtrak employees, which are
applicable to employees of Amtrak shall be deemed served
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and effective on the date which is 45 days after the date of
the enactment of this Act. Amtrak, and each affected labor
organization representing Amtrak employees, shall promptly
supply specific information and proposals with respect to
each such notice. This subsection shall not apply to issues
relating to provisions defining the scope or classification
of work performed by an Amtrak employee. The issue for
negotiation under this paragraph does not include the
contracting out of work involving food and beverage services
provided on Amtrak trains or the contracting out of work not
resulting in the layoff of Amtrak employees.
(c) National Mediation Board Efforts.-- Except as provided
in subsection (d), the National Mediation Board shall
complete all efforts, with respect to the dispute described
in subsection (b), under section 5 of the Railway Labor Act
(45 U.S.C. 155) not later than 120 days after the date of the
enactment of this Act.
(d) Railway Labor Act Arbitration.--The parties to the
dispute described in subsection (b) may agree to submit the
dispute to arbitration under section 7 of the Railway Labor
Act (45 U.S.C. 157), and any award resulting therefrom shall
be retroactive to the date which is 120 days after the date
of the enactment of this Act.
(e) Dispute Resolution.--
(1) With respect to the dispute described in subsection (b)
which--
(A) is unresolved as of the date which is 120 days after
the date of the enactment of this Act; and
(B) is not submitted to arbitration as described in
subsection (d),
Amtrak shall, and the labor organizations that are parties to
such dispute shall, within 127 days after the date of the
enactment of this Act, each select an individual from the
entire roster of arbitrators maintained by the National
Mediation Board. Within 134 days after the date of the
enactment of this Act, the individuals selected under the
preceding sentence shall jointly select an individual from
such roster to make recommendations with respect to such
dispute under this subsection. If the National Mediation
Board is not informed of the selection of the individual
under the preceding sentence 134 days after the date of
enactment of this Act, the Board will immediately select such
individual.
(2) No individual shall be selected under paragraph (1) who
is pecuniarily or otherwise interested in any organization of
employees or any railroad or who is selected pursuant to
section 141(d) of this Act.
(3) The compensation of individuals selected under
paragraph (1) shall be fixed by the National Mediation Board.
The second paragraph of section 10 of the Railway Labor Act
(45 U.S.C. 160) shall apply to the expenses of such
individuals as if such individuals were members of a board
created under such section 10.
(4) If the parties to a dispute described in subsection (b)
fail to reach agreement within 150 days after the date of the
enactment of this Act, the individual selected under
paragraph (1) with respect to such dispute shall make
recommendations to the parties proposing contract terms to
resolve the dispute.
(5) If the parties to a dispute described in subsection (b)
fail to reach agreement, no change shall be made by either of
the parties in the conditions out of which the dispute arose
for 30 days after recommendations are made under paragraph
(4).
(6) Section 10 of the Railway Labor Act (45 U.S.C. 160)
shall not apply to a dispute described in subsection (b).
(f) No Precedent for Freight.--Nothing in this section
shall be a precedent for the resolution of any dispute
between a freight railroad and any labor organization
representing that railroad's employees.
Subtitle C--Employee Protection Reforms
SEC. 141. RAILWAY LABOR ACT PROCEDURES.
(a) Notices.--Notwithstanding any arrangement in effect
before the date of the enactment of this Act, notices under
section 6 of the Railway Labor Act (45 U.S.C. 156) with
respect to all issues relating to employee protective
arrangements and severance benefits which are applicable to
employees of Amtrak, including all provisions of Appendix C-2
to the National Railroad Passenger Corporation Agreement,
signed July 5, 1973, shall be deemed served and effective on
the date which is 45 days after the date of the enactment of
this Act. Amtrak, and each affected labor organization
representing Amtrak employees, shall promptly supply specific
information and proposals with respect to each such notice.
(b) National Mediation Board Efforts.--Except as provided
in subsection (c), the National Mediation Board shall
complete all efforts, with respect to the dispute described
in subsection (a), under section 5 of the Railway Labor Act
(45 U.S.C. 155) not later than 120 days after the date of the
enactment of this Act.
(c) Railway Labor Act Arbitration.--The parties to the
dispute described in subsection (a) may agree to submit the
dispute to arbitration under section 7 of the Railway Labor
Act (45 U.S.C. 157), and any award resulting therefrom shall
be retroactive to the date which is 120 days after the date
of the enactment of this Act.
(d) Dispute Resolution.--
(1) With respect to the dispute described in subsection (a)
which
(A) is unresolved as of the date which is 120 days after
the date of the enactment of this Act; and
(B) is not submitted to arbitration as described in
subsection (c), Amtrak shall, and the labor organization
parties to such dispute shall, within 127 days after the date
of the enactment of this Act, each select an individual from
the entire roster of arbitrators maintained by the National
Mediation Board. Within 134 days after the date of the
enactment of this Act, the individuals selected under the
preceding sentence shall jointly select an individual from
such roster to make recommendations with respect to such
dispute under this subsection. If the National Mediation
Board is not informed of the selection under the preceding
sentence 134 days after the date of enactment of this Act,
the Board will immediately select such individual.
(2) No individual shall be selected under paragraph (1) who
is pecuniarily or otherwise interested in any organization of
employees or any railroad or who is selected pursuant to
section 121(e) of this Act.
(3) The compensation of individuals selected under
paragraph (1) shall be fixed by the National Mediation Board.
The second paragraph of section 10 of the Railway Labor Act
shall apply to the expenses of such individuals as if such
individuals were members of a board created under such
section 10.
(4) If the parties to a dispute described in subsection (a)
fail to reach agreement within 150 days after the date of the
enactment of this Act, the individual selected under
paragraph (1) with respect to such dispute shall make
recommendations to the parties proposing contract terms to
resolve the dispute.
(5) If the parties to a dispute described in subsection (a)
fail to reach agreement, no change shall be made by either of
the parties in the conditions out of which the dispute arose
for 30 days after recommendations are made under paragraph
(4).
(6) Section 10 of the Railway Labor Act (45 U.S.C. 160)
shall not apply to a dispute described in subsection (a).
SEC. 142. SERVICE DISCONTINUANCE.
(a) Repeal.--Section 24706(c) of title 49, United States
Code, is repealed.
(b) Existing Contracts.--Any provision of a contract
entered into before the date of the enactment of this Act
between Amtrak and a labor organization representing Amtrak
employees relating to employee protective arrangements and
severance benefits applicable to employees of Amtrak is
extinguished, including all provisions of Appendix C-2 to the
National Railroad Passenger Corporation Agreement, signed
July 5, 1973.
(c) Special Effective Date.--Subsections (a) and (b) of
this section shall take effect 180 days after the date of the
enactment of this Act.
(d) Nonapplication of Bankruptcy Law Provision.--Section
1172(c) of title 11, United States Code, shall not apply to
Amtrak and its employees.
Subtitle D--Use of Railroad Facilities
SEC. 161. LIABILITY LIMITATION.
(a) Amendment.--Chapter 281 of title 49, United States
Code, is amended by adding at the end the following new
section:
``Sec. 28103. Limitations on rail passenger transportation
liability
``(a) Limitations.--
``(1) Notwithstanding any other statutory or common law or
public policy, or the nature of the conduct giving rise to
damages or liability, a contract between Amtrak and its
passengers, the Alaska Railroad and its passengers, or
private railroad car operators and their passengers regarding
claims for personal injury, death, or damage to property
arising from or in connection with the provision of rail
passenger transportation, or from or in connection with any
operations over or use of right-of-way or facilities owned,
leased, or maintained by Amtrak or the Alaska Railroad, or
from or in connection with any rail passenger transportation
operations over or rail passenger transportation use of
right-of-way or facilities owned, leased, or maintained by
any high-speed railroad authority or operator, any commuter
authority or operator, or any rail carrier shall be
enforceable if--
``(A) punitive or exemplary damages, where permitted, are
not limited to less than 2 times compensatory damages awarded
to any claimant by any State or Federal court or
administrative agency, or in any arbitration proceeding, or
in any other forum or $250,000, whichever is greater; and
``(B) passengers are provided adequate notice of any such
contractual limitation or waiver or choice of forum.
``(2) For purposes of this subsection, the term `claim'
means a claim made directly or indirectly--
``(A) against Amtrak, any high-speed railroad authority or
operator, any commuter authority or operator, or any rail
carrier including the Alaska Railroad or private rail car
operators; or
``(B) against an affiliate engaged in railroad operations,
officer, employee, or agent of, Amtrak, any high-speed
railroad authority or operator, any commuter authority or
operator, or any rail carrier.
``(3) Notwithstanding paragraph (1)(A), if, in any case in
which death was caused, the law of the place where the act or
omission complained of occurred provides, or has been
construed to provide, for damages only punitive in nature, a
claimant may recover in a claim limited by this subsection
for actual or compensatory damages measured by the pecuniary
injuries, resulting from such death, to the persons for whose
benefit the
[[Page S4483]]
action was brought, subject to the provisions of paragraph
(1).
(b) Indemnification Obligation.--Obligations of any party,
however arising, including obligations arising under leases
or contracts or pursuant to orders of an administrative
agency, to indemnify against damages or liability for
personal injury, death, or damage to property described in
subsesction (a), incurred after the death of the enactment of
the Amtrak Reform and Accountability Act of 1997, shall be
enforceable, notwithstanding any other statuatory or common
law or public policy, or the nature of the conduct giving
rise to the damages or liability.
(b) Conforming Amendment.--The table of sections of chapter
281 of title 49, United States Code, is amended by adding at
the end the following new item:
``28103. Limitations on rail passenger transportation liability.''.
TITLE II--FISCAL ACCOUNTABILITY
SEC. 201. AMTRAK FINANCIAL GOALS.
Section 24101(d) of title 49, United States Code, is
amended by adding at the end thereof the following: ``Amtrak
shall prepare a financial plan to operate within the funding
levels authorized by section 24104 of this chapter, including
budgetary goals for fiscal years 1998 through 2002.
Commencing no later than the fiscal year following the fifth
anniversary of the Amtrak Reform and Accountability Act of
1997, Amtrak shall operate without Federal operating grant
funds appropriated for its benefit.''.
SEC. 202. INDEPENDENT ASSESSMENT.
(a) Initiation.--Not later than 15 days after the date of
enactment of this Act, the Secretary of Transportation shall
contract with an entity independent of Amtrak and not in any
contractual relationship with Amtrak and of the Department of
Transportation to conduct a complete independent assessment
of the financial requirements of Amtrak through fiscal year
2002. The entity shall have demonstrated knowledge about
railroad industry accounting requirements, including the
uniqueness of the industry and of Surface Transportation
Board accounting requirements.
(b) Assessment Criteria.--The Secretary and Amtrak shall
provide to the independent entity estimates of the financial
requirements of Amtrak for the period described above, using
as a base the fiscal year 1997 appropriation levels
established by the Congress. The independent assessment shall
be based on an objective analysis of Amtrak's funding needs.
(c) Certain Factors To Be Taken Into Account.--The
independent assessment shall take into account all relevant
factors, including Amtrak's--
(1) cost allocation process and procedures;
(2) expenses related to intercity rail passenger service,
commuter service, and any other service Amtrak provides;
(3) Strategic Business Plan, including Amtrak's projected
expenses, capital needs, ridership, and revenue forecasts;
and
(4) Amtrak's debt obligations.
(d) Deadline.--The independent assessment shall be
completed not later than 90 days after the contract is
awarded, and shall be submitted to the Council established
under section 203, the Secretary of Transportation, the
Committee on Commerce, Science, and Transportation of the
United States Senate, and the Committee on Transportation and
Infrastructure of the United States House of Representatives.
SEC. 203. AMTRAK REFORM COUNCIL.
(a) Establishment.--There is established an independent
commission to be known as the Amtrak Reform Council.
(b) Membership.--
(1) In general.--The Council shall consist of 9 members, as
follows:
(A) The Secretary of Transportation.
(B) Two individuals appointed by the President, of which--
(i) one shall be a representative of a rail labor
organization; and
(ii) one shall be a representative of rail management.
(C) Two individuals appointed by the Majority Leader of the
United States Senate.
(D) One individual appointed by the Minority Leader of the
United States Senate.
(E) Two individuals appointed by the Speaker of the United
States House of Representatives.
(F) One individual appointed by the Minority Leader of the
United States House of Representatives.
(2) Appointment Criteria.--
(A) Time for initial appointments.--Appointments under
paragraph (1) shall be made within 30 days after the date of
enactment of this Act.
(B) Expertise.--Individuals appointed under subparagraphs
(C) through (F) of paragraph (1)--
(i) may not be employees of the United States;
(ii) may not be board members or employees of Amtrak;
(iii) may not be representatives of rail labor
organizations or rail management; and
(iv) shall have technical qualifications, professional
standing, and demonstrated expertise in the field of
corporate management, finance, rail or other transportation
operations, labor, economics, or the law, or other areas of
expertise relevant to the Council.
(3) Term.--Members shall serve for terms of 5 years. If a
vacancy occurs other than by the expiration of a term, the
individual appointed to fill the vacancy shall be appointed
in the same manner as, and shall serve only for the unexpired
portion of the term for which, that individual's predecessor
was appointed.
(4) Chairman.--The Council shall elect a chairman from
among its membership within 15 days after the earlier of--
(A) the date on which all members of the Council have been
appointed under paragraph (2)(A); or
(B) 45 days after the date of enactment of this Act.
(4) Majority required for action.--A majority of the members
of the Council present and voting is required for the Council
to take action. No person shall be elected chairman of the
Council who receives fewer than 5 votes.
(c) Administrative Support.--The Secretary of
Transportation shall provide such administrative support to
the Council as it needs in order to carry out its duties
under this section.
(d) Travel Expenses.--Each member of the Council shall
serve without pay, but shall receive travel expenses,
including per diem in lieu of subsistence, in accordance with
section 5702 and 5703 of title 5, United States Code.
(e) Meetings.--Each meeting of the Council, other than a
meeting at which proprietary information is to be discussed,
shall be open to the public.
(f) Access to Information.--Amtrak shall make available to
the Council all information the Council requires to carry out
its duties under this section. The Council shall establish
appropriate procedures to ensure against the public
disclosure of any information obtained under this subsection
that is a trade secret or commercial or financial information
that is privileged or confidential.
(g) Duties.--
(1) Evaluation and Recommendation.--The Council--
(A) shall evaluate Amtrak's performance; and
(B) make recommendations to Amtrak for achieving further
cost containment and productivity improvements, and financial
reforms.
(2) Specific Considerations.--In making its evaluation and
recommendations under paragraph (1), the Council take
consider all relevant performance factors, including--
(A) Amtrak's operation as a national passenger rail system
which provides access to all regions of the country and ties
together existing and emerging rail passenger corridors;
(B) appropriate methods for adoption of uniform cost and
accounting procedures throughout the Amtrak system, based on
generally accepted accounting principles; and
(C) management efficiencies and revenue enhancements,
including savings achieved through labor and contracting
negotiations.
(h) Annual Report.--Each year before the fifth anniversary
of the date of enactment of this Act, the Council shall
submit to the Congress a report that includes an assessment
of Amtrak's progress on the resolution or status of
productivity issues; and makes recommendations for
improvements and for any changes in law it believes to be
necessary or appropriate.
(i) Authorization of Appropriations.--There are authorized
to be appropriated to the Council such sums as may be
necessary to enable the Council to carry out its duties.
SEC. 204. SUNSET TRIGGER.
(a) In General.--If at any time the Amtrak Reform Council
finds that--
(1) Amtrak's business performance will prevent it from
meeting the financial goals set forth in section 201; or
(2) Amtrak will require operating grant funds after the
fifth anniversary of the date of enactment of this Act, then
the Council shall immediately notify the President, the
Committee on Commerce, Science, and Transportation of the
United States Senate; and the Committee on Transportation and
Infrastructure of the United States House of Representatives.
(b) Factors Considered.--In making a finding under
subsection (a), the Council shall take into account--
(1) Amtrak's performance;
(2) the findings of the independent assessment conducted
under section 202; and
(3) Acts of God, national emergencies, and other events
beyond the reasonable control of Amtrak.
(c) Action Plan.--Within 90 days after the Council makes a
finding under subsection (a), it shall develop and submit to
the Congress--
(1) an action plan for a restructured and rationalized
intercity rail passenger system; and
(2) an action plan for the complete liquidation of Amtrak.
If the Congress does not approve by concurrent resolution the
implementation of the plan submitted under paragraph (1)
within 90 calendar days after it is submitted to the
Congress, then the Secretary of Transportation and Amtrak
shall implement the plan submitted under paragraph (2).
SEC. 205. ACCESS TO RECORDS AND ACCOUNTS.
Section 24315 of title 49, United States Code, is amended
by adding at the end the following new subsection:
``(h) Access to Records and Accounts.--A State shall have
access to Amtrak's records, accounts, and other necessary
documents used to determine the amount of any payment to
Amtrak required of the State.''.
[[Page S4484]]
SEC. 206. OFFICERS' PAY.
Section 24303(b) of title 49, United States Code, is
amended by adding at the end the following: ``The preceding
sentence shall not apply for any fiscal year for which no
Federal assistance is provided to Amtrak.''.
SEC. 207. EXEMPTION FROM TAXES.
(a) In General.--Subsection (l) of section 24301 of title
49, United States Code, is amended--
(1) by striking so much of the subsection as precedes ``or
a rail carrier'' in paragraph (1) and inserting the
following:
``(l) Exemption from taxes levied after September 30,
1981.--
``(1) In general.--Amtrak'';
(2) by inserting ``, and any passenger or other customer of
Amtrak or such subsidiary,'' in paragraph (1) after
``subsidiary of Amtrak'';
(3) by striking ``or fee imposed''in paragraph (1) and all
that follows through ``levied on it'' and inserting ``, fee,
head charge, or other charge, imposed or levied by a State,
political subdivision, or local taxing authority on Amtrak, a
rail carrier subsidiary of Amtrak, or on persons traveling in
intercity rail passenger transportation or on mail or express
transportation provided by Amtrak or such a subsidiary, or on
the carriage of such persons, mail, or express, or on the
sale of any such transportation, or on the gross receipts
derived therefrom'';
(4) by striking the last sentence of paragraph (1);
(5) by striking ``(2) The'' in paragraph (2) and inserting
``(3) Jurisdiction of United States District Courts.--The'';
and
(6) by inserting after paragraph (1) the following:
``(2) Phase-in of exemption for certain existing taxes and
fees.--
``(A) Years before 2000.--Notwithstanding paragraph (1),
Amtrak is exempt from a tax or fee referred to in paragraph
(1) that Amtrak was required to pay as of September 10, 1982,
during calendar years 1997 through 1999, only to the extent
specified in the following table:
Phase-in of Exemption
Year of assessment Percentage of exemption
1997............................... 40
1998............................... 60
1999............................... 80
2000 and later years............... 100
``(B) Taxes assessed after March, 1999.--Amtrak shall be
exempt from any tax or fee referred to in subparagraph (A)
that is assessed on or after April 1, 1999.''.
(b) Effective Date.--The amendments made by subsection (a)
do not apply to sales taxes imposed on intrastate travel as
of the date of enactment of this Act.
TITLE III--AUTHORIZATION OF APPROPRIATIONS
SEC. 301. AUTHORIZATION OF APPROPRIATIONS.
Section 24104(a) of title 49, United States Code, is
amended to read as follows:
``(a) In General.--There are authorized to be appropriated
to the Secretary of Transportation--
``(1) $1,138,000,000 for fiscal year 1998;
``(2) $1,058,000,000 for fiscal year 1999;
``(3) $1,023,000,000 for fiscal year 2000;
``(4) $989,000,000 for fiscal year 2001; and
``(5) $955,000,000 for fiscal year 2002,
for the benefit of Amtrak for capital expenditures under
chapters 243 and 247 of this title, operating expenses, and
payments described in subsection (c)(1)(A) through (C). In
fiscal years following the fifth anniversary of the enactment
of the Amtrak Reform and Accountability Act of 1997 no funds
authorized for Amtrak shall be used for operating expenses
other than those prescribed for tax liabilities under section
3221 of the Internal Revenue Code of 1986 that are more than
the amount needed for benefits of individuals who retire from
Amtrak and for their beneficiaries.''.
TITLE IV--MISCELLANEOUS
SEC. 401. STATUS AND APPLICABLE LAWS.
Section 24301 of title 49, United States Code, is amended--
(1) by striking ``rail carrier under section 10102'' in
subsection (a)(1) and inserting ``railroad carrier under
section 20102(2) and chapters 261 and 281''; and
(2) by amending subsection (c) to read as follows:
``(c) Application of Subtitle IV.--Subtitle IV of this
title shall not apply to Amtrak, except for sections 11303,
11342(a), 11504(a) and (d), and 11707. Notwithstanding the
preceding sentence, Amtrak shall continue to be considered an
employer under the Railroad Retirement Act of 1974, the
Railroad Unemployment Insurance Act, and the Railroad
Retirement Tax Act.''.
SEC. 402. WASTE DISPOSAL.
Section 24301(m)(1)(A) of title 49, United States Code, is
amended by striking ``1996'' and inserting ``2001''.
SEC. 403. ASSISTANCE FOR UPGRADING FACILITIES.
Section 24310 of title 49, United States Code, and the item
relating thereto in the table of sections of chapter 243 of
such title, are repealed.
SEC. 404. DEMONSTRATION OF NEW TECHNOLOGY.
Section 24314 of title 49, United States Code, and the item
relating thereto in the table of sections for chapter 243 of
that title, are repealed.
SEC. 405. PROGRAM MASTER PLAN FOR BOSTON-NEW YORK MAIN LINE.
(a) Repeal.--Section 24903 of title 49, United States Code,
is repealed and the table of sections for chapter 249 of such
title is amended by striking the item relating to that
section.
(b) Conforming Amendments.--
(1) Section 24902 of title 49, United States Code, is
amended by striking subsections (a), (c), and (d) and
redesignating subsection (b) as subsection (a) and
subsections (e) through (m) as subsections (b) through (j),
respectively.
(2) Section 24904(a)(8) is amended by striking ``the high-
speed rail passenger transportation area specified in section
24902(a)(1) and (2)'' and inserting ``a high-speed rail
passenger transportation area''.
SEC. 406. AMERICANS WITH DISABILITIES ACT OF 1990.
(a) Application to Amtrak.--
(1) Access improvements at certain shared stations.--Amtrak
is responsible for its share, if any, of the costs of
accessibility improvements at any station jointly used by
Amtrak and a commuter authority.
(2) Certain requirements not to apply until 1998.--Amtrak
shall not be subject to any requirement under subsection
(a)(1), (a)(3), or (e)(2) of section 242 of the Americans
With Disabilities Act of 1990 (42 U.S.C. 12162) until January
1, 1998.
(b) Conforming Amendment.--Section 24307 of title 49,
United States Code, is amended--
(1) by striking subsection (b); and
(2) by redesignating subsection (c) as subsection (b).
SEC. 407. DEFINITIONS.
Section 24102 of title 49, United States Code, is amended--
(1) by striking paragraphs (2) and (11);
(2) by redesignating paragraphs (3) through (8) as
paragraphs (2) through (7), respectively;
(3) by inserting ``, including a unit of State or local
government,'' after ``means a person'' in paragraph (7), as
so redesignated; and
(4) by inserting after paragraph (7), as so redesignated,
the following new paragraph:
``(8) `rail passenger transportation' means the interstate,
intrastate, or international transportation of passengers by
rail, including mail and express.''.
SEC. 408. NORTHEAST CORRIDOR COST DISPUTE.
Section 1163 of the Northeast Rail Service Act of 1981 (45
U.S.C. 1111) is repealed.
SEC. 409. INSPECTOR GENERAL ACT OF 1978 AMENDMENT.
(a) Amendment.--
(1) In general.--Section 8G(a)(2) of the Inspector General
Act of 1978 (5 U.S.C. App.) is amended by striking
``Amtrak,''.
(2) Effective date.--The amendment made by paragraph (1)
takes effect in the first fiscal year for which Amtrak
receives no Federal subsidy.
(b) Amtrak Not Federal Entity.--Amtrak shall not be
considered a Federal entity for purposes of the Inspector
General Act of 1978. The preceding sentence shall apply for
any fiscal year for which Amtrak receives no Federal subsidy.
SEC. 410. INTERSTATE RAIL COMPACTS.
(a) Consent to Compacts.--Congress grants consent to States
with an interest in a specific form, route, or corridor of
intercity passenger rail service (including high speed rail
service) to enter into interstate compacts to promote the
provision of the service, including--
(1) retaining an existing service or commencing a new
service;
(2) assembling rights-of-way; and
(3) performing capital improvements, including--
(A) the construction and rehabilitation of maintenance
facilities;
(B) the purchase of locomotives; and
(C) operational improvements, including communications,
signals, and other systems.
(b) Financing.--An interstate compact established by States
under subsection (a) may provide that, in order to carry out
the compact, the States may--
(1) accept contributions from a unit of State or local
government or a person;
(2) use any Federal or State funds made available for
intercity passenger rail service (except funds made available
for the National Railroad Passenger Corporation);
(3) on such terms and conditions as the States consider
advisable--
(A) borrow money on a short-term basis and issue notes for
the borrowing; and
(B) issue bonds; and
(4) obtain financing by other means permitted under Federal
or State law.
(c) Eligible Projects.--Section 133(b) of title 23, United
States Code, is amended by striking ``and publicly owned
intracity or intercity bus terminals and facilities'' in
paragraph (2) and inserting a comma and ``including vehicles
and facilities, publicly or privately owned, that are used to
provide intercity passenger service by bus or rail, or a
combination of both''.
(d) Eligibility of Passenger Rail Under Congestion
Mitigation and Air Quality Improvement Program.--The first
sentence of section 149(b) of title 23, United States Code,
is amended--
(1) by striking ``or'' at the end of paragraph (3);
(2) by striking the period at the end of paragraph (4); and
(3) by adding at the end thereof the following:
``(5) if the project or program will have air quality
benefits through construction of and operational improvements
for intercity passenger rail facilities, operation of
intercity
[[Page S4485]]
passenger rail trains, and acquisition of rolling stock for
intercity passenger rail service, except that not more than
50 percent of the amount received by a State for a fiscal
year under this paragraph may be obligated for operating
support.''.
(e) Eligibility of Passenger Rail as National Highway
System Project.--Section 103(i) of title 23, United States
Code, is amended by adding at the end thereof the following:
``(14) Construction, reconstruction, and rehabilitation of,
and operational improvements for, intercity rail passenger
facilities (including facilities owned by the National
Railroad Passenger Corporation), operation of intercity rail
passenger trains, and acquisition or reconstruction of
rolling stock for intercity rail passenger service, except
that not more than 50 percent of the amount received by a
State for a fiscal year under this paragraph may be obligated
for operation.''.
SEC. 411. COMPOSITION OF AMTRAK BOARD OF DIRECTORS.
Section 24302(a) of title 49, United States Code, is
amended--
(1) by striking ``3'' in paragraph (1)(C) and inserting
``4'';
(2) by striking clauses (i) and (ii) of paragraph (1)(C)
and inserting the following:
``(i) one individual selected as a representative of rail
labor in consultation with affected labor organizations.
``(ii) one chief executive officer of a State, and one
chief executive officer of a municipality, selected from
among the chief executive officers of State and
municipalities with an interest in rail transportation, each
of whom may select an individual to act as the officer's
representative at board meetings.'';
(4) striking subparagraphs (D) and (E) of paragraph (1);
(5) inserting after subparagraph (C) the following:
``(D) 3 individuals appointed by the President of the
United States, as follows:
``(i) one individual selected as a representative of a
commuter authority, (as defined in section 102 of the
Regional Rail Reorganization Act of 1973 (45 U.S.C. 702) that
provides its own commuter rail passenger transportation or
makes a contract with an operator, in consultation with
affected commuter authorities.
``(ii) one individual with technical expertise in finance
and accounting principles.
``(iii) one individual selected as a representative of the
general public.''; and
(6) by striking paragraph (6) and inserting the following:
``(6) The Secretary may be represented at a meeting of the
board only by the Administrator of the Federal Railroad
Administration.''.
______
By Mr. DASCHLE:
S. 740. A bill to provide a 1-year delay in the imposition of
penalties on small businesses failing to make electronic fund transfers
of business taxes; to the Committee on Finance.
the electronic funds transfer tax payments by small businesses act of
1997
Mr. DASCHLE. Mr. President, today I am introducing legislation that
would waive for 1 year penalties on small businesses that fail to pay
their taxes to the Internal Revenue Service [IRS] electronically.
Last July, millions of small business owners received a letter from
the IRS announcing that, beginning January 1, 1997, business tax
payments would have to be made via electronic funds transfer. This
letter sent shock waves through the small business community in South
Dakota. The letter was vague and provided little information on how the
new deposit requirement would work.
In meetings, letters, and phone calls, South Dakotans posed many
questions to me that the IRS letter did not answer: ``How much will
this cost my business?''; ``Will I have to purchase new equipment to
make these electronic transfers?''; and ``Will the IRS be taking the
money directly out of my account?''
As you may recall, this new requirement was adopted as part of a
package of revenue offsets for the North American Free-Trade Agreement.
The Treasury Department was directed to draw up regulations phasing in
the requirement, which will raise money by eliminating the float banks
accrue on the delay between the time they receive tax deposits from
businesses and the time they transfer this money to the Treasury.
All businesses with $47 million or more in annual payroll taxes are
already required to pay by electronic funds transfer. The new, lower
threshold is estimated to bring 1.3 million small- and medium-sized
businesses into the program for the first time.
As a result of protests registered by many small businesses, the IRS
decided to delay for 6 months the 10-percent penalty on firms failing
to begin making deposits electronically by January 1, 1997. Not
satisfied with this step, Congress recently passed an outright 6-month
delay in the electronic filing requirement as part of the Small
Business Job Protection Act of 1996.
I strongly supported this amendment. However, I believe that these
1.3 million businesses should be given further time to comply without
the threat of financial penalties. Electronic funds transfer may well
prove to be the most efficient system of payment for all concerned,
including small businesses. Once they learn the advantages of the new
system, these firms may well come to prefer it to the existing one,
which requires a special kind of coupon and a lot of paperwork. But
this is a new procedure, and many small employers are not sure what it
will entail. A recent hearing in the House of Representatives
documented a series of uncertainties and potential problems
accompanying an extension of the electronic funds transfer mandate to
smaller firms.
The bill I am introducing today would suspend penalties for
noncompliance for 1 year, until July 1, 1998. I believe this step is
necessary to provide time for small businesses to be properly educated
about the easiest, least burdensome, and most cost-efficient way to
comply. In my view, whenever possible, the IRS should avoid taking an
adversarial approach toward the small business community or, for that
matter, any taxpayer. At every opportunity, the IRS should seek to help
taxpayers comply with their obligations. I believe that, by removing
the threat of penalties for a short while longer, my bill will help the
IRS fulfill this important part of its mission.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 740
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. WAIVER OF PENALTY ON SMALL BUSINESSES FAILING TO
MAKE ELECTRONIC FUND TRANSFERS OF TAXES.
No penalty shall be imposed under the Internal Revenue Code
of 1986 solely by reason of a failure by a person to use the
electronic fund transfer system established under section
6302(h) of such Code if--
(1) such person is a member of a class of taxpayers first
required to use such system on or after July 1, 1997, and
(2) such failure occurs during the 1-year period beginning
on July 1, 1997.
______
By Mr. BREAUX:
S. 741. A bill to amend the Communications Act of 1934 to enable the
Federal Communications Commission to enhance its spectrum management
program capabilities through the collection of lease fees for new
spectrum for radio services that are statutorily excluded from
competitive bidding, and to enhance law enforcement and public safety
radio communications; to the Committee on Commerce, Science, and
Transportation.
THE PRIVATE WIRELESS SPECTRUM AVAILABILITY ACT
Mr. BREAUX. Mr. President, I introduce the Private Wireless
Spectrum Availability Act of 1997. This legislation will help the more
than 300,000 U.S. companies, both large and small, that have invested
$25 billion in internally owned and operated wireless communications
systems. It will provide these companies with critically needed
spectrum and will do so through an equitable lease fee system.
The private wireless communications community includes industrial,
land transportation, business, educational, and philanthropic
organizations that own and operate communications systems for their
internal use. The top 10 U.S. industrial companies have more than 6,000
private wireless licenses. Private wireless systems also serve
America's small businesses in the utility, contracting, taxi, and
livery industries.
These internal-use communications facilities greatly enhance public
safety and the quality of American life. They also support global
competitiveness for American firms. For example, private wireless
systems support: the efficient production of goods and services; the
safe transportation of passengers and products by land and air; the
exploration, production, and distribution of energy; agricultural
enhancement and production; the maintenance and development of
America's infrastructure;
[[Page S4486]]
and compliance with various local, State, and Federal operational
government statutes.
Current regulatory policy inadequately recognizes the public interest
benefits that private wireless licensees provide to the American
public. Consequently, allocations of spectrum to these private wireless
users has been deficient. Private wireless entities received spectrum
in 1974 and 1986 when the FCC allocated channels in the 800 megahertz
and 900 megahertz bands. Over time, however, the FCC has significantly
reduced the number of channels available to industrial and business
entities in those allocations. Private wireless entities now have
access to only 299 channels, or 32 percent of the channels of the
original allocation.
Spectrum auctions have done a great job of speeding up the licensing
of interpersonal communications services and have generated significant
revenues for the U.S. Treasury. They have also unfortunately skewed the
spectrum allocation process toward subscriber-based services and away
from critical radio services such as private wireless which are
exempted from auctions. Nearly 200 megahertz of spectrum has been
allocated for the provision of commercial telecommunications services,
virtually all of which has been assigned by the FCC through competitive
bidding.
Competitive bidding is not the proper assignment methodology for
private wireless telecommunications users. Private wireless operations
are site-specific systems which vary in size based on that user's
particular needs, and are seldom mutually exclusive from other private
wireless applicants. Auctions, which depend on mutually exclusive
applications and use market areas based on population, simply cannot be
designed for private wireless systems.
This legislation mandates that the FCC allocate no less than 12
megahertz of new spectrum for private wireless use as a measure to
maintain our industrial and business competitiveness in the global
arena, as well as to protect the welfare of the employees in the
American workplace. Research indicates that private wireless companies
are willing to pay a reasonable fee in return for use of spectrum. They
recognize that their access to spectrum increases with their
willingness to pay fair value for the use of this national asset.
My bill grants the FCC legislative authority to charge efficiency-
based spectrum lease fees in this new spectrum allocation. These lease
fees should encourage the efficient use of spectrum by the private
wireless industry, generate recurring annual revenues as compensation
for the use of spectrum, and retain spectrum ownership by the public.
Furthermore, the fees should be easy for private frequency advisory
committees to calculate and collect.
Mr. President, I am mindful that some peripheral concerns expressed
by small businesses that service private wireless users are not
addressed in this bill. I assure these companies that I will work with
them through the legislative process to address these issues. I urge my
colleagues to join me in supporting this bill and ask unanimous consent
that the full text of the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 741
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Private Wireless Spectrum
Availability Act''.
SEC. 2. DEFINITIONS.
As used in this Act--
(1) Commission.--The term ``Commission'' means the Federal
Communications Commission.
(2) Public safety.--The term ``public safety'' means fire,
police, or emergency medical service including critical care
medical telemetry, and such other services related to public
safety as the Commission may include within the definition of
public safety for purposes of this Act.
(3) Private wireless.--The term ``private wireless''
encompasses all land mobile telecommunications systems
operated by or through industrial, business, transportation,
educational, philanthropic or ecclesiastical organizations
where these systems, the operation of which may be shared,
are for the licensees' internal use, rather than subscriber-
based Commercial Mobile Radio Services (CMRS) systems.
(4) Spectrum lease fee.--The term ``spectrum lease fee''
means a periodic payment for the use of a given amount of
electromagnetic spectrum in a given area in consideration of
which the user is granted a license for such use.
SEC. 3. FINDINGS.
The Congress finds that:
(1) Private wireless communications systems enhance the
competitiveness of American industry and business in
international commerce, promote the development of national
infrastructure, improve the delivery of products and services
to consumers in the United States and abroad, and contribute
to the economic and social welfare of citizens of the United
States.
(2) The highly specialized telecommunications requirements
of licensees in the private wireless services would be
served, and a more favorable climate would be created for the
allocation of additional electromagnetic spectrum for those
services if an alternative license administration
methodology, in addition to the existing competitive bidding
process, were made available to the Commission.
SEC. 4. SPECTRUM LEASING FEES.
Title I of the Communications Act of 1934 (47 U.S.C. 151 et
seq.) is amended by adding at the end thereof the following:
``SEC. 12. SPECTRUM LEASE FEE PROGRAM.
``(a) Spectrum Lease Fees.--
``(1) In general.--Within 6 months after the date of
enactment of the Private Wireless Spectrum Availability Act,
the Commission shall by rule--
``(A) implement a system of spectrum lease fees applicable
to newly allocated frequency bands, as described in section 5
of the Private Wireless Spectrum Availability Act, assigned
to systems (other than public safety systems (as defined in
section 2(2) of the Private Wireless Spectrum Availability
Act)) in private wireless service;
``(B) provide appropriate incentives for licensees to
confine their radio communication to the area of operation
actually required for that communications; and
``(C) permit private land mobile frequency advisory
committees certified by the Commission to assist in the
computation, assessment, collection, and processing of
amounts received under the system of spectrum lease fees.
``(2) Formula.--The Commission shall include as a part of
the rulemaking carried out under paragraph (1)--
``(A) a formula to be used by private wireless licensees
and certified frequency advisory committees to compute
spectrum lease fees; and
``(B) an explanation of the technical factors included in
the spectrum lease fee formula, including the relative weight
given to each factor.
``(b) Fee Basis.--
``(1) Initial fees.--Fees assessed under the spectrum lease
fee system established under subsection (a) shall be based on
the approximate value of the assigned frequencies to the
licensees. In assessing the value of the assigned frequencies
to licensees under this subsection, the Commission shall take
into account all relevant factors, including the amount of
assigned bandwidth, the coverage area of a system, the
geographic location of the system, and the degree of
frequency sharing with other licensees in the same area.
These factors shall be incorporated in the formula described
in subsection (a)(2).
``(2) Adjustment of fees.--The Commission may adjust the
formula developed under subsection (a)(2) whenever it
determines that adjustment is necessary in order to calculate
the lease fees more accurately or fairly.
``(3) Fee cap.--The spectrum lease fees shall be set so
that, over a 10-year license term, the amount of revenues
generated will not exceed the revenues generated from the
auction of comparable spectrum. For purposes of this
paragraph, the `comparable spectrum' shall mean spectrum
located within 500 megahertz of that spectrum licensed in a
concluded auction for mobile radio communication licenses.
``(c) Application to Private Wireless Systems.--After the
Commission has implemented the spectrum leasing fee system
under subsection (a) and provided licensees access to new
spectrum as defined in section 5(c)(2) of the Private
Wireless Spectrum Availability Act, it shall assess the fees
established for that system against all licensees authorized
in any new frequency bands allocated for private wireless
use.''.
SEC. 5. SPECTRUM LEASE FEE PROGRAM INITIATION.
(a) In General.--The Commission shall allocate for use in
the spectrum lease fee program under section 12 of the
Communications Act of 1934 (47 U.S.C. 162) not less than 12
megahertz of electromagnetic spectrum, previously unallocated
to private wireless, located between 150 megahertz and 1000
megahertz on a nationwide basis.
(b) Existing Incumbents.--In allocating electromagnetic
spectrum under subsection (a), the Commission shall ensure
that existing incumbencies do not inhibit effective access to
use of newly allocated spectrum to the detriment of the
spectrum lease fee program.
(c) Timeframe.--
(1) Allocation.--The Commission shall allocate
electromagnetic spectrum under subsection (a) within 6 months
after the date of enactment of this Act.
(2) Access.--The Commission shall take such reasonable
action as may be necessary to ensure that initial access to
electromagnetic spectrum allocated under subsection (a)
commences not later than 12
[[Page S4487]]
months after the date of enactment of this Act.
SEC. 6. DELEGATION OF AUTHORITY.
Section 5 of the Communications Act of 1934 (47 U.S.C. 155)
is amended by adding at the end thereof the following:
``(f) Delegation to Certified Frequency Advisory
Committees.--
``(1) In general.--The Commission may, by published rule or
order, utilize the services of certified private land mobile
frequency advisory committees to assist in the computation,
assessment, collection, and processing of funds generated
through the spectrum lease fee program under section 12 of
this Act. Except as provided in paragraph (3), a decision or
order made or taken pursuant to such delegation shall have
the same force and effect, and shall be made, evidenced, and
enforced in the same manner, as decisions or orders of the
Commission.
``(2) Processing and depositing of fees.--A frequency
advisory committee shall deposit any spectrum lease fees
collected by it under Commission authority with a banking
agent designated by the Commission in the same manner as it
deposits application filing fees collected under section 8 of
this Act.
``(3) Review of actions.--A decision or order under
paragraph (1) is subject to review in the same manner, and to
the same extent, as decisions or orders under subsection
(c)(1) are subject to review under paragraphs (4) through (7)
of subsection (c).
SEC. 7. PROHIBITION OF USE OF COMPETITIVE BIDDING.
Section 309(j)(6) of the Communications Act of 1934 (47
U.S.C. 309(j)(6)) is amended--
(1) by striking ``or'' at the end of subparagraph (G);
(2) by striking the period at the end of subparagraph (H)
and inserting a semicolon and ``or''; and
(3) by adding at the end thereof the following:
``(I) preclude the Commission from considering the public
interest benefits of private wireless communications systems
(as defined in section 2(3) of the Spectrum Efficiency Reform
Act of 1977) and making allocations in circumstances in
which--
``(i) the pre-defined geographic market areas required for
competitive bidding processes are incompatible with the needs
of radio services for site-specific system deployment;
``(ii) the unique operating characteristics and
requirements of Federal agency spectrum users demand, as a
prerequisite for sharing of Federal spectrum, that
nongovernment access to the spectrum be restricted to radio
systems that are non subscriber-based;
``(iii) licensee concern for operational safety, security,
and productivity are of paramount importance and, as a
consequence, there is no incentive, interest, or intent to
use the assigned frequency for producing subscriber-based
revenue; or
``(iv) the Commission, in its discretion, deems competitive
bidding processes to be incompatible with the public
interest, convenience, and necessity.''.
SEC. 8. USE OF PROCEEDS FROM SPECTRUM LEASE FEES.
(a) Establishment of Account.--There is hereby established
on the books of the Treasury an account for the spectrum
license fees generated by the spectrum license fee system
established under section 12 of the Communications Act of
1934 (47 U.S.C. 162). Except as provided in subsections (b)
and (c), all proceeds from spectrum lease fees shall be
deposited in the Treasury in accordance with chapter 33 of
title 31, United States Code, and credited to the account
established by this subsection.
(b) Administrative Expenses.--Out of amounts received from
spectrum lease payments a fair and reasonable amount, as
determined by the Commission, may be retained by a certified
frequency advisory committee acting under section 5(f) of the
Communications Act of 1934 (47 U.S.C. 155(f)) to cover costs
incurred by it in administering the spectrum lease fee
program.
SEC. 9. LEASING NOT TO AFFECT COMMISSION'S DUTY TO ALLOCATE.
The implementation of spectrum lease fees as a license
administration mechanism is not a substitute for effective
spectrum allocation procedures. The Commission shall continue
to allocate spectrum to various services on the basis of
fulfilling the needs of these services, and shall not use
fees or auctions as an allocation mechanism.
______
By Ms. SNOWE (for herself, Mr. Reid, Mr. Warner, Ms. Mikulski,
Mr. Chafee, Mr. Durbin, Ms. Collins, Mrs. Murray, and Mr.
Jeffords):
S. 743. A bill to require equitable coverage of prescription
contraceptive drugs and devices, and contraceptive services under
health plans; to the Committee on Finance.
THE EQUITY IN PRESCRIPTION INSURANCE AND CONTRACEPTIVE COVERAGE ACT
Ms. SNOWE. Mr. President, nowhere is the middle ground in American
politics harder to find than in the debate over abortion. It is clear
that the apparent inability of pro-choice and pro-life members to find
common ground is one of the most divisive issues we face today. In
debate after debate, it often appears that there is no middle ground.
Well, I am extremely pleased that my colleague from Nevada, Senator
Reid, is joining me today to introduce legislation that will prove this
statement untrue.
Too often, pro-choice leaders do too little to convey that they are
not pro-abortion. Likewise, abortion opponents too often fail to work
constructively toward reducing the need for abortion. The failure of
pro-choice and pro-life members to stake out common ground weakens our
Nation immeasurably.
Today that's going to change. The cosponsors of this bill come from
different parties, and have very different views on abortion. Our
voting records are clear: I am firmly pro-choice; Senators Reid is
firmly pro-life. Yet, despite these fundamental differences, we agree
that something can and must be done to reduce the rates of unintended
pregnancy and abortion in this country. That is why we are joining
forces and introducing bipartisan, landmark legislation to make
contraceptives more affordable for Americans. And I am pleased that a
number of my colleagues, including Senators Warner, Mikulski, Chafee,
Durbin, Collins, Murray, and Jeffords are joining us as original
cosponsors.
The need is clear. This year, there will be 3.6 million unintended
pregnancies--over 56 percent of all pregnancies in America--and half
will end in abortion. These are staggering statistics. But what's even
more staggering is that it doesn't have to be this way. If prescription
contraceptives were covered like other prescription drugs, a lot more
Americans could afford to use safe, effective means to prevent
unintended pregnancies.
The fact is, under many of today's health insurance plans, a woman
can afford a prescription to alleviate allergy symptoms but not a
prescription to prevent an unintended and life-altering pregnancy. It
is simply not right that while the vast majority of insurers cover
prescription drugs, half of large group plans exclude coverage of
prescription contraceptives. And only one-third cover oral
contraceptives--the most popular form of birth control.
Is it any wonder that women spend 68 percent more than men in out-of-
pocket health care costs--68 percent. It does not make sense that, at a
time when we want to reduce unintended pregnancies, so many otherwise
insured woman can't afford access to the most effective contraceptives
because of the disparity in coverage.
The lack of contraceptive coverage in health insurance is not news to
most women. Countless American women have been shocked to learn that
their insurance does not cover contraceptives, one of their most basic
health care needs, even though other prescriptions drugs which are
equally valuable to their lives are routinely covered. But until today,
women could do little more than feel silent outrage at a practice that
disadvantages both their health and their pocketbook.
Now, the Equity in Prescription Insurance and Contraceptive Coverage
Act gives voice to that outrage. EPICC sends a message that we can no
longer tolerate policies that disadvantage women and disadvantage our
nation. When our bill is passed, women will finally be assured of
equity in prescription drug coverage and health care services. And
America's unacceptably high rates of unintended pregnancies and
abortions will be reduced in the process.
This EPICC approach is simple. It says that if insurers already cover
prescription drugs and devices, they must also cover FDA-approved
prescription contraceptives. And it takes the commonsense approach of
requiring health plans which already cover basic health care services
to also cover medical and counseling services to promote the effective
use of those contraceptives. The bill does not require insurance
companies to cover prescription drugs--it simply says that if insurers
cover prescription drugs, they cannot treat prescription contraceptives
any differently. Similarly, it says that insurers which cover
outpatient health care services cannot limit or exclude coverage of the
medical and counseling services necessary for effective contraceptive
use in order to prevent unintended pregnancies.
This bill is not only good policy, it also makes good economic sense.
We know that contraceptives are cost-effective: in the public sector,
for every
[[Page S4488]]
dollar invested in family planning, $4 to $14 is saved in health care
and related costs. And we also know that by helping families to
adequately space their pregnancies, contraceptives contribute to
healthy pregnancies and healthy births, reducing rates of maternal
complications, and low-birth weight.
Time and time again Americans have expressed the desire for their
leaders to come together to work on the problems that face us. This
bill exemplifies that spirit of cooperation. It crosses some very wide
gulfs and makes some very meaningful changes in policy that will
benefit countless Americans.
As someone who is pro-choice, I firmly believe that abortions should
be safe, legal, and rare. Through this bill, I invite both my pro-
choice and pro-life colleagues to join with me in emphasizing the rare.
And I invite all who believe in sound public policy to join our
alliance. Because we as a nation must be truly committed to reducing
rates of unintended pregnancy and abortion. We must come together
despite our differences. We must pass this EPICC bill into law.
Mr. REID. Mr. President, I am proud to introduce today, with Senator
Snowe, the Equity in Prescription and Contraception Coverage Act of
1997. I have said time and time again that if men suffered from the
same illnesses as women, the biomedical research community would be
much closer to eliminating diseases that strike women. I believe this
is a similar type of issue. If men had to pay for contraceptive drugs
and devices, the insurance industry would cover them.
The health industry has done a poor job of responding to women's
health needs. Women spend 68 percent more in out-of-pocket costs for
health care than men. Reproductive health care services account for
much of this difference. According to a study done by the Alan
Guttmacher Institute, 49 percent of all large-group health care plans
do not routinely cover any contraceptive method at all, and only 15
percent cover all five of the most common contraceptive methods. Women
are forced to use disposable income to pay for family planning services
not covered by their health insurance--the pill--one of the most common
birth control methods, can cost cover $300 a year. Therefore, women who
lack disposable income are forced to use less reliable methods of
contraception and risk an unintended pregnancy.
The legislation we introduce today would require insurers, HMO's, and
employee health benefit plans that offer prescription drug benefits to
cover contraceptive drugs and devices approved by the FDA. Further, it
would require these insurers to cover outpatient contraceptive services
if a plan covers other outpatient services. Lastly, it would prohibit
the imposition of copays and deductibles for prescription
contraceptives or outpatient services that are greater than those for
other prescription drugs.
Each year approximately 3,600,000 pregnancies, or 60 percent of all
pregnancies, in this country are unintended. Of these unintended
pregnancies, 44 percent end in abortion. Reliable family planning
methods must be made available if we wish to reduce this disturbing
number. Further, a reduction in unintended pregnancies will also lead
to a reduction in infant mortality, low-birth weight, and maternal
morbidity. In fact, the National Commission to Prevent Infant Mortality
determined that ``infant mortality could be reduced by 10 percent if
all women not desiring pregnancy used contraception.''
Ironically, abortion is routinely covered by 66 percent of indemnity
plans, 67 percent of preferred provider organizations, and 70 percent
of HMO's. Sterilization and tubal ligation are also routinely covered.
It does not make sense financially for insurance companies to cover
these more expensive services, rather than contraception. Studies
indicate that for every dollar of public funds invested in family
planning, $4 to $14 of public funds is saved in pregnancy and health
care-related costs. According to one recent study in the American
Journal of Public Health, by increasing the number of women who use
oral contraceptives by 15 percent, health plans would accrue enough
savings in pregnancy care costs to cover oral contraceptives for all
users under the plan.
It is vitally important to the health of our country that quality
contraception is not beyond the financial reach of women. Providing
access to contraception will bring down the unintended pregnancy rate,
insure good reproductive health for women, and reduce the number of
abortions.
It is a significant step, in my opinion, to have support from both
pro-life and pro-choice Senators for this bill. Prevention is the
common ground on which we can all stand. Let's begin to attack the
problem of unintended pregnancies at its root.
______
By Mr. JOHNSON (for himself and Mr. Daschle):
S. 744. A bill to authorize the construction of the Fall River Water
Users District Rural Water System and authorize financial assistance to
the Fall River Water Users District, a nonprofit corporation, in the
planning and construction of the water supply system, and for other
purposes; to the Committee on Energy and Natural Resources.
THE FALL RIVER WATER USERS DISTRICT RURAL WATER SYSTEM ACT OF 1997
Mr. JOHNSON. Mr. President, today I am proud to introduce
legislation to authorize a critically important rural water system in
South Dakota, the Fall River Water Users District Rural Water System
Act of 1997. This legislation is strongly supported by local project
sponsors who have demonstrated that support by agreeing to substantial
financial contributions from the local level. I am pleased to introduce
this legislation today, along with my colleague from South Dakota,
Senate Minority Leader Tom Daschle. Both Senator Daschle and I were
sponsors of similar legislation in the 104th Congress, and we will work
together to enact this necessary rural water legislation in the 105th
Congress.
Like many parts of South Dakota, Fall River County has insufficient
water supplies of reasonable quality available, and the water supplies
that are available do not meet the minimum health and safety standards.
In addition to improving the health of residents in the region, I
strongly believe that these rural drinking water delivery projects will
help to stabilize the rural economy in both regions. Water is a basic
commodity and is essential if we are to foster rural development in
many parts of rural South Dakota, including the Fall River County area.
Past cycles of severe drought in the southeastern area of Fall River
County have left local residents without a satisfactory water supply
and during 1990, many homeowners and ranchers were forced to haul water
to sustain their water needs.
Currently, many residents are either using bottled water for human
consumption or they are using distillers due to the poor quality of the
water supplies available. After conducting a feasibility study and
preliminary engineering report, the best available, reliable, and safe
rural and municipal water supply to serve the needs of the Fall River
Water Users District consists of a Madison Aquifer well, three separate
water storage reservoirs, three pumping stations, and approximately 200
miles of pipeline. The legislation I am introducing today authorizes
the Bureau of Reclamation to construct a rural water system in Fall
River County as described above. The Fall River system will serve rural
residents, as well as the community of Oelrichs and the Angostura State
Recreation Area.
Mr. President, South Dakota is plagued by water of exceedingly poor
quality, and the Fall River County rural water project is an effort to
help provide clean water--a commodity most of us take for granted--to
the people of South Dakota. I am a strong believer in the role of the
Federal Government to help in the delivery of rural water, and I hope
to continue to advance that agenda both in South Dakota and around the
country. I urge my colleagues to support this legislation, and I look
forward to working with my colleagues on the Energy and Natural
Resources Committee to move forward on enactment as quickly as
possible.
Mr. President, I ask unanimous consent the text of the bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
[[Page S4489]]
S. 744
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Fall River Water Users
District Rural Water System Act of 1997''.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds that--
(1) there are insufficient water supplies of reasonable
quality available to the members of the Fall River Water
Users District Rural Water System located in Fall River
County, South Dakota, and the water supplies that are
available are of poor quality and do not meet minimum health
and safety standards, thereby posing a threat to public
health and safety;
(2) past cycles of severe drought in the southeastern area
of Fall River County have left residents without a
satisfactory water supply, and, during 1990, many home owners
and ranchers were forced to haul water to sustain their water
needs;
(3) because of the poor quality of water supplies, most
members of the Fall River Water Users District are forced to
either haul bottled water for human consumption or use
distillers;
(4) the Fall River Water Users District Rural Water System
has been recognized by the State of South Dakota; and
(5) the best available, reliable, and safe rural and
municipal water supply to serve the needs of the Fall River
Water Users District Rural Water System members consists of a
Madison Aquifer well, 3 separate water storage reservoirs, 3
pumping stations, and approximately 200 miles of pipeline.
(b) Purposes.--The purposes of this Act are--
(1) to ensure a safe and adequate municipal, rural, and
industrial water supply for the members of the Fall River
Water Users District Rural Water System in Fall River County,
South Dakota;
(2) to assist the members of the Fall River Water Users
District in developing safe and adequate municipal, rural,
and industrial water supplies; and
(3) to promote the implementation of water conservation
programs by the Fall River Water Users District Rural Water
System.
SEC. 3. DEFINITIONS.
In this Act:
(1) Engineering report.--The term ``engineering report''
means the study entitled ``Supplemental Preliminary
Engineering Report for Fall River Water Users District''
published in August 1995.
(2) Project construction budget.--The term ``project
construction budget'' means the description of the total
amount of funds that are needed for the construction of the
water supply system, as described in the engineering report.
(3) Pumping and incidental operational requirements.--The
term ``pumping and incidental operational requirements''
means all power requirements that are incidental to the
operation of intake facilities, pumping stations, water
treatment facilities, cooling facilities, reservoirs, and
pipelines to the point of delivery of water by the Fall River
Water Users District Rural Water System to each entity that
distributes water at retail to individual users.
(4) Secretary.--The term ``Secretary'' means the Secretary
of the Interior, acting through the Director of the Bureau of
Reclamation.
(5) Water supply system.--The term ``water supply system''
means the Fall River Water Users District Rural Water System,
a nonprofit corporation, established and operated
substantially in accordance with the engineering report.
SEC. 4. FEDERAL ASSISTANCE FOR WATER SUPPLY SYSTEM.
(a) In General.--The Secretary shall make grants to the
water supply system for the Federal share of the costs of the
planning and construction of the water supply system.
(b) Service Area.--The water supply system shall provide
for safe and adequate municipal, rural, and industrial water
supplies, mitigation of wetlands areas, and water
conservation within the boundaries of the Fall River Water
Users District, described as follows: bounded on the north by
the Angostura Reservoir, the Cheyenne River, and the line
between Fall River and Custer Counties, bounded on the east
by the line between Fall River and Shannon Counties, bounded
on the south by the line between South Dakota and Nebraska,
and bounded on the west by the Igloo-Provo Water Project
District.
(c) Amount of Grants.--Grants made available under
subsection (a) to the water supply system shall not exceed
the Federal share under section 9.
(d) Limitation on Availability of Construction Funds.--The
Secretary shall not obligate funds for the construction of
the water supply system until--
(1) the requirements of the National Environmental Policy
Act of 1969 (42 U.S.C. 4321 et seq.) are met with respect to
the water supply system; and
(2) a final engineering report has been prepared and
submitted to Congress for a period of not less than 90 days
before the commencement of construction of the system.
SEC. 5. MITIGATION OF FISH AND WILDLIFE LOSSES.
Mitigation of fish and wildlife losses incurred as a result
of the construction and operation of the water supply system
shall be on an acre-for-acre basis, based on ecological
equivalency, concurrent with project construction, as
provided in the engineering report.
SEC. 6. USE OF PICK-SLOAN POWER.
(a) In General.--From power designated for future
irrigation and drainage pumping for the Pick-Sloan Missouri
River Basin Program, the Western Area Power Administration
shall make available the capacity and energy required to meet
the pumping and incidental operational requirements of the
water supply system during the period beginning May 1 and
ending October 31 of each year.
(b) Conditions.--The capacity and energy described in
subsection (a) shall be made available on the following
conditions:
(1) The water supply system shall be operated on a not-for-
profit basis.
(2) The water supply system shall contract to purchase its
entire electric service requirements, including the capacity
and energy made available under subsection (a), from a
qualified preference power supplier that itself purchases
power from the Western Area Power Administration.
(3) The rate schedule applicable to the capacity and energy
made available under subsection (a) shall be the firm power
rate schedule of the Pick-Sloan Eastern Division of the
Western Area Power Administration in effect when the power is
delivered by the Administration.
(4) It shall be agreed by contract among--
(A) the Western Area Power Administration;
(B) the power supplier with which the water supply system
contracts under paragraph (2);
(C) the power supplier of the entity described in
subparagraph (B); and
(D) the Fall River Water Users District;
that in the case of the capacity and energy made available
under subsection (a), the benefit of the rate schedule
described in paragraph (3) shall be passed through to the
water supply system, except that the power supplier of the
water supply system shall not be precluded from including, in
the charges of the supplier to the water system for the
electric service, the other usual and customary charges of
the supplier.
SEC. 7. NO LIMITATION ON WATER PROJECTS IN STATE.
This Act does not limit the authorization for water
projects in South Dakota under law in effect on or after the
date of enactment of this Act.
SEC. 8. WATER RIGHTS.
Nothing in this Act--
(1) invalidates or preempts State water law or an
interstate compact governing water;
(2) alters the rights of any State to any appropriated
share of the waters of any body of surface or ground water,
whether determined by past or future interstate compacts or
by past or future legislative or final judicial allocations;
(3) preempts or modifies any Federal or State law, or
interstate compact, dealing with water quality or disposal;
or
(4) confers on any non-Federal entity the ability to
exercise any Federal right to the waters of any stream or to
any ground water resource.
SEC. 9. FEDERAL SHARE.
The Federal share under section 4 shall be 80 percent of--
(1) the amount allocated in the total project construction
budget for the planning and construction of the water supply
system under section 4; and
(2) such sums as are necessary to defray increases in
development costs reflected in appropriate engineering cost
indices after August 1, 1995.
SEC. 10. NON-FEDERAL SHARE.
The non-Federal share under section 4 shall be 20 percent
of--
(1) the amount allocated in the total project construction
budget for the planning and construction of the water supply
system under section 4; and
(2) such sums as are necessary to defray increases in
development costs reflected in appropriate engineering cost
indices after August 1, 1995.
SEC. 11. CONSTRUCTION OVERSIGHT.
(a) Authorization.--The Secretary may provide construction
oversight to the water supply system for areas of the water
supply system.
(b) Project Oversight Administration.--The amount of funds
used by the Secretary for planning and construction of the
water supply system may not exceed an amount equal to 3
percent of the amount provided in the total project
construction budget for the portion of the project to be
constructed in Fall River County, South Dakota.
SEC. 12. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated--
(1) $3,600,000 for the planning and construction of the
water system under section 4; and
(2) such sums as are necessary to defray increases in
development costs reflected in appropriate engineering cost
indices after August 1, 1995.
____________________