[Congressional Record Volume 143, Number 63 (Wednesday, May 14, 1997)]
[Senate]
[Pages S4479-S4485]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

       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

[[Page S4482]]

     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.''.
                                 ______