[Congressional Record Volume 143, Number 155 (Friday, November 7, 1997)]
[Senate]
[Pages S11923-S11938]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
AMTRAK REFORM AND ACCOUNTABILITY ACT OF 1997
The PRESIDING OFFICER. The clerk will report the bill.
The assistant legislative clerk read as follows:
A bill (S. 738) to reform the statutes relating to Amtrak,
to authorize appropriation for Amtrak, and for other
purposes.
The Senate proceeded to consider the bill, which had been reported
from the Committee on Commerce, Science, and Transportation, with
amendments; as follows:
(The parts of the bill intended to be stricken are shown in boldface
brackets and the parts of the bill intended to be inserted are shown in
italic.)
[[Page S11924]]
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.
Sec. 162. Retention of facilities.
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.
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. 412. Educational participation.
Sec. 413. Report to Congress on Amtrak bankruptcy.
Sec. 414. Amtrak to notify Congress of lobbying relationships.
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) Amtrak's Strategic Business Plan calls for the
establishment of a dedicated source of capital funding for
Amtrak in order to ensure that Amtrak will be able to fulfill
the goals of maintaining--
(A) a national passenger rail system; and
(B) that system without Federal operating assistance; and
[(10)] (11) 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'';]
(2) by striking ``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); and
[(2) by striking paragraphs (1) and (2) of subsection (b);
and]
[(3) by striking ``(3) State'' and inserting ``State''.]
(2) by striking subsection (b) and inserting the following:
``(b) Authority of Others To Provide Auto-ferry
Transportation.--State and local laws and regulations that
impair the provision of auto-ferry transportation do not
apply to Amtrak or a rail carrier providing auto-ferry
transportation. A rail carrier may not refuse to participate
with Amtrak in providing auto-ferry transportation because a
State or local law or regulation makes the transportation
unlawful.''.
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)] 13902(b)(8)(A) of this title, other than
a recipient of funds under section [18 of the Federal Transit
Act;] 5311 of this title;
``(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
[[Page S11925]]
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)] 303B(m) of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C.
[253b)] 253b(m)) applies to a proposal in the possession or
control of [Amtrak.''.] 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 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
[[Page S11926]]
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,]
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,] Amtrak, 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), in any case in
which death was caused, the law of the place where the act or
omission complained of occurred provides, or has been
construed to provide, for damages only punitive in nature, a
claimant may recover in a claim limited by this subsection
for actual or compensatory damages measured by the pecuniary
injuries, resulting from such death, to the persons for whose
benefit the action was brought, subject to the provisions of
paragraph (1).
[(b)] ``(b) 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] subsection (a), incurred after the
[death] date 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.] liability.''.
(c) 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.''.
SEC. 162. RETENTION OF FACILITIES.
Section 24309(b) of title 49, United States Code, is
amended by inserting ``or on January 1, 1997,'' after
``1979,''.
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. The Department of
Transportation, Office of Inspector General, shall approve
the entity's statement of work and the award and shall
oversee the contract. In carrying out its responsibilities
under the preceding sentence, the Inspector General's Office
shall perform such overview and validation or verification of
data as may be necessary to assure that the assessment
conducted under this subsection meets the requirements of
this section.
(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.] assets and liabilities.
For purposes of paragraph (3), in the capital needs part of
its Strategic Business Plan Amtrak shall distinguish between
that portion of the capital required for the Northeast
corridor and that required outside the Northeast corridor,
and shall include rolling stock requirements, including
capital leases, ``state of good repair'' requirements, and
infrastructure improvements.
(d) Deadline.--The independent assessment shall be
completed not later than [90] 180 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)] (5) 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.
[[Page S11927]]
(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 more than 2 years after the
date of enactment of this Act and implementation of the
financial plan referred to in section 201 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) the level of Federal funds made available for carrying
out the financial plan referred to in section 201; and
[(3)] (4) 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).]
(c) Action Plan.--
(1) Development of plans.--Within 90 days after the Council
makes a finding under subsection (a)--
(A) it shall develop and submit to the Congress an action
plan for a restructured and rationalized national intercity
rail passenger system; and
(B) Amtrak shall develop and submit to the Congress an
action plan for the complete liquidation of Amtrak, after
having the plan reviewed by the Inspector General of the
Department of Transportation and the General Accounting
Office for accuracy and reasonableness.
(2) Congressional action or inaction.--If within 90 days
after receiving the plans submitted under paragraph (1), an
Act to implement a restructured and rationalized intercity
rail passenger system does not become law, then Amtrak shall
implement the liquidation plan developed under paragraph
(1)(B) after such modification as may be required to reflect
the recommendations, if any, of the Inspector General of the
Department of Transportation and the General Accounting
Office.
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.''.
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)] paragraph (1) as precedes
``exempt'' and inserting the following:
[``(l) Exemption from taxes levied after September 30,
1981.--]
``(1) In general.--[Amtrak,] Amtrak, a rail carrier
subsidiary of Amtrak, and any passenger or other customer of
Amtrak or such subsidiary, are'';
[(2) by inserting ``, and any passenger or other customer
of Amtrak or such subsidiary,'' in paragraph (1) after
``subsidiary of Amtrak'';
[(3)] (2) by striking ``tax or fee imposed'' in paragraph
(1) and all that follows through ``levied on it'' and
inserting ``tax, 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)] (3) by striking the last sentence of paragraph (1);
[(5)] (4) by striking ``(2) The'' in paragraph (2) and
inserting ``(3) Jurisdiction of United States District
Courts.--The''; and
[(6)] (5) 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.] 11301, 11322(a),
11502(a) and (d), and 11706. 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
[[Page S11928]]
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)] (10) as
paragraphs (2) through [(7),] (9), respectively; and
(3) by inserting ``, including a unit of State or local
government,'' after ``means a person'' in paragraph (7), as
so [redesignated; and] redesignated.
[(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.
(c) Federal Subsidy.--
(1) Assessment.--In any fiscal year for which Amtrak
requests Federal assistance, the Inspector General of the
Department of Transportation shall review Amtrak's operations
and conduct an assessment similar to the assessment required
by section 202(a). The Inspector General shall report the
results of the review and assessment to--
(A) the President of Amtrak;
(B) the Secretary of Transportation;
(C) the United States Senate Committee on Appropriations;
(D) the United States Senate Committee on Commerce,
Science, and Transportation;
(E) the United States House of Representatives Committee on
Appropriations;
(F) the United States House of Representatives Committee on
Transportation and Infrastructure.
(2) Report.--The report shall be submitted, to the extent
practicable, before any such committee reports legislation
authorizing or appropriating funds for Amtrak for capital
acquisition, development, or operating expenses.
(3) Special effective date.--This subsection takes effect 1
year after the date of enactment of this Act.
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'']
facilities.'' in paragraph (2) and inserting [a comma and]
``facilities, 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''.]
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] ``standard.'' in paragraph (4) and inserting ``standard;
or''
(3) by [adding at the end thereof] inserting after
paragraph (4) 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 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.''.]
``(6) The Secretary may be represented at a meeting of the
Board by his designate.''.
SEC. 412. EDUCATIONAL PARTICIPATION.
Amtrak shall participate in educational efforts with
elementary and secondary schools to inform students on the
advantages of rail travel and the need for rail safety.
SEC. 413. REPORT TO CONGRESS ON AMTRAK BANKRUPTCY.
Within 120 days after the date of enactment of this Act,
the Comptroller General shall submit a report identifying
financial and other issues associated with an Amtrak
bankruptcy to the United States Senate Committee on Commerce,
Science, and Transportation and to the United States House of
Representatives Committee on Transportation and
Infrastructure. The report shall include an analysis of the
implications of such a bankruptcy on the Federal government,
Amtrak's creditors, and the Railroad Retirement System.
SEC. 414. AMTRAK TO NOTIFY CONGRESS OF LOBBYING
RELATIONSHIPS.
If, at any time, Amtrak enters into a consulting contract
or similar arrangement, or a contract for lobbying, with a
lobbying firm, an individual who is a lobbyist, or who is
affiliated with a lobbying firm, as those terms are defined
in section 3 of the Lobbying Disclosure Act of 1995 (2 U.S.C.
1602), Amtrak shall notify the United States Senate Committee
on Commerce,
[[Page S11929]]
Science, and Transportation, and the United States House of
Representatives Committee on Transportation and
Infrastructure of--
(1) the name of the individual or firm involved;
(2) the purpose of the contract or arrangement; and
(3) the amount and nature of Amtrak's financial obligation
under the contract.
Mr. McCAIN. Mr. President, before the majority leader leaves the
floor, are we contemplating a recorded vote on this, I would ask the
majority leader, or what is the will of the Democratic leader?
Mr. LOTT. Mr. President, if I could respond, I believe we have it
cleared and that this could be moved by voice vote.
Mr. McCAIN. Does the Senator from Pennsylvania want a recorded vote
on this or is a voice vote sufficient?
Mr. LOTT. If I could respond to the question, I know Pennsylvania is
very supportive of Amtrak and would like this proposal to move forward
as quickly as possible so I hope that we wouldn't have to have a
recorded vote.
Mr. McCAIN. I thank the majority leader. The reason why I asked is
that the Senator from Pennsylvania had asked the question as to whether
we would have a recorded vote.
I thank the Democratic leader as well as the majority leader for
their kind remarks.
Amendment No. 1609
(Purpose: To reauthorize Amtrak and for other purposes)
The PRESIDING OFFICER. We need to have the clerk report the
amendment.
The assistant legislative clerk read as follows:
The Senator from Texas [Mrs. Hutchison], for herself, Mr.
Lott, Mr. McCain, and Mr. Jeffords, proposes an amendment
numbered 1609.
Mr. McCAIN. Mr. President, I ask unanimous consent that reading of
the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
(The text of the amendment is printed in today's Record under
``Amendments Submitted.'')
The PRESIDING OFFICER. The Senator from Arizona.
Mr. McCAIN. I thank the Chair.
I thank the majority leader and the Democratic leader for their kind
remarks. I especially wish to thank Senator Hutchison and Senator Kerry
and Senator Breaux who spent literally hundreds of hours on this bill.
I think it is important to point out for the Record that this effort
was begun by the majority leader when he was chairman of the
subcommittee which is now chaired by the Senator from Texas, and the
groundwork was laid through his strong efforts.
I might say that there were several occasions when we were gridlocked
on this bill and we gathered in the majority leader's office and he
helped us find ways to reach common ground.
Mr. President, this compromise reauthorization legislation is the
product of more than 3 years of bipartisan negotiations. Let there be
no mistake. Amtrak is on the verge of bankruptcy. Fundamental reforms
are needed immediately if there is to be any possibility of addressing
Amtrak's financial crisis and turning it into a viable operation. This
measure is long overdue. Some fear, as I do, that even with these
reforms Amtrak may not make it.
Again, I thank Senator Hutchison for all her hard work, along with
Senator Breaux and Senator Kerry. Senator Breaux and Senator Kerry will
be in the Chamber shortly, I am told, to add their comments. Senator
Hutchison will describe the details of her amendment which have to do
with labor, contracting out, liability, and the sunset trigger which is
part of this legislation.
I think everyone knows that I hold strong reservations about Amtrak.
After subsidizing for 26 years what was to have been a 2-year
experiment, I believe Congress must carefully evaluate whether this is
the best use of our limited taxpayers dollars.
Since 1971, Amtrak has received over $20 billion in Federal tax
dollars. I know that Amtrak has strived to reduce its operating costs
and increase its revenues. And, yes, a portion of Amtrak's financial
challenges are due to statutory constraints that Congress imposed and
has failed to lift, but the fact remains the Amtrak 12-year experiment
was unsuccessful 26 years ago, it is unsuccessful today, and the
prospects of its future are rather bleak.
I realize that my pessimistic view of Amtrak's future, based on its
track record, is not shared by the majority of the Congress. That is
why I have worked with my colleagues to bring some semblance of
legitimacy to this operation. The bill before us does not go as far as
many of us would like. For some of my colleagues on the other side of
the aisle, they may say it goes too far. Regardless of the position
held, the bill does provide for some comprehensive changes.
According to a November 5, 1997, letter from Tom Downs, ``enactment
of the Amtrak Accountability and Reform Act of 1997 would be the
single-most significant action the Congress can take to aid Amtrak in
achieving operating self-sufficiency by 2002.'' He goes on to say,
``The legislative reforms contained in the bill will allow Amtrak to
operate in a more businesslike, cost-effective manner, thus allowing
greater productivity and increased savings.''
Mr. President, I ask unanimous consent that the letter from Mr. Tom
Downs, who is the president and chief executive officer of Amtrak, be
printed in the Record.
There being no objection, the letter was ordered to be printed in the
Record, as follows:
National Railroad
Passenger Corporation,
Washington, DC, November 5, 1997.
Hon. John McCain, Chair,
Hon. Ernest F. Hollings,
Ranking Member, Committee on Commerce, Science and
Transportation, Dirksen Senate Office Building,
Washington, DC.
Dear Chairmen: Thank you for your leadership in working
toward an agreement in the Senate on comprehensive reform
legislation for Amtrak. It is my understanding that agreement
has been reached, and the Senate will soon consider the
modified version of S. 738. I want to let you know that
enactment of the Amtrak Reform and Revitalization Act of 1997
would be the single most significant action the Congress can
take to aid Amtrak in achieving operating self-sufficiency by
2002. I will urge your colleagues to support the compromise
you have achieved.
Enactment of the reauthorization bill will not in and of
itself enable Amtrak to become independent of federal
operating support, but it is the most critical step in the
process. The legislative reforms contained in the bill will
allow Amtrak to operate in a more businesslike, cost-
effective manner, thus allowing greater productivity and
increased savings. The capital funding made available by
enactment of the legislation will allow us to begin to bring
the system up to a state of good repair and invest in high
rate-of-return capital projects. Adequate capital investment
is the key to operational self-sufficiency and the overall
economic viability of the railroad.
Consistent with all our previous statement on becoming
independent of federal operating support and as outlined in
our Strategic Business Plan, we will still require a
specific, declining level of federal operating support
through 2002, excess mandatory Railroad Retirement payments,
an the level of capital identified in the Congressional
Budget Resolution. It is my strong hope that the
Administration and the Congress will continue to support us
as we come closer to reaching our goal.
Again, thank you for all your leadership and diligence on
working out an agreement on this legislation. As both Amtrak
and the General Accounting Office (GAO) have made very clear
this year, Amtrak will not be around much longer under the
status quo. Legislative relief and capital funding are two of
the three most critical pieces in regaining our economic
health and long-term viability, and enactment of this
legislation will accomplish those two goals. Achieving an
agreement on this legislation is a goal both the Secretary of
Transportation and the Senate Majority Leader have identified
as important for this Congress, due to Amtrak's precarious
financial condition. I congratulate you on achieving this in
the substitute offered today.
Very truly yours,
Thomas M. Downs,
Chairman, President and
Chief Executive Officer.
Mr. McCAIN. In closing, Mr. President, I want to remind my colleagues
that even if Congress approves the statutory reforms and the $2.3
billion for capital improvements is released, Amtrak's viability
remains uncertain. Let's be clear. Amtrak is $1 billion in debt and
that debt level is predicted by the General Accounting Office to double
to $2 billion in the next 2 years. Tom Downs predicts that without this
legislation Amtrak could be bankrupt by next spring. Others predict
even sooner.
I hope the dire predictions are wrong but prudence dictates that
while we
[[Page S11930]]
empower Amtrak to meet its financial goals and protect taxpayers,
Congress and the administration prepare for and have a clear
understanding of the long-range economic effects of a potential
bankruptcy.
I requested the General Accounting Office to conduct an analysis of
this issue and submit a report to the committee providing an overview
of the financial issues and implications associated with an Amtrak
liquidation. The report will include an analysis of the financial
implications for the Federal Government, Amtrak's creditor's and the
railroad retirement system.
I strongly support passage of this reform measure. However, I will
continue to hold strong reservations over Amtrak's ability to ever turn
Amtrak into a profitable, subsidy-free operation. One of the most
important elements of this bill is that it provides the opportunity for
us to shut off the spigot if and when it is clear the promise of
financial viability will not or cannot be achieved.
What is happening here is not just a piece of reform legislation, Mr.
President. We are releasing $2.3 billion in what I have previously
described as the great train robbery of 1997. Back in the old days some
citizens of my State used to rob trains. But now the trains have
decided to rob the taxpayers of $2.3 billion with the help of this
body.
The proviso, or the rationale that allowed the $2.3 billion to be
fenced off was $2.3 billion in back taxes. The only problem with that
scenario, Mr. President, is Amtrak has never paid any taxes. So we are
providing another $2.3 billion giveaway to Amtrak. These reforms
release that money.
I will never forget when I first came to Congress in 1982, Mr.
President. I was visited by a man whom I respect as much as any man,
Graham Claytor, who was then the head of Amtrak. And he gave me in
graphic detail a long and extensive briefing about how Amtrak was going
to be viable financially by the year 1985. That's only 12 years ago.
But every 2 or 3 years Amtrak has come over to Congress with another
plan to become financially viable within 2 or 3 years, and we know the
answer. The answer is that they have now received more than $20 billion
of the taxpayers' money.
I say enough is enough. And I commit now that if this reform and
reauthorization plan does not make Amtrak financially viable, I will do
everything in my power as a Senator and as chairman of the Commerce,
Science, and Transportation Committee to see that it comes to an end.
I wish Amtrak every success with the passage of this legislation by
the House. I will hope and pray that Amtrak succeeds. But I must tell
you I am not optimistic that they will succeed and I hope to God that
this is the last trip to the taxpayers' pocket book that we make on
behalf of Amtrak.
Mr. President, again I thank Senator Hutchison who has done such a
magnificent job on this legislation. She has worked countless numbers
of hours. She has made compromises that clearly at the beginning she
was not prepared to do. She made these compromises because she knew
that that is the essence of legislation and the lessons of getting
legislative results. She deserves enormous credit, along with my dear
friend, Senator Kerry and Senator Breaux, from Massachusetts and
Louisiana, who played a great role. Bipartisanship is what this place
is supposed to be about on issues that don't lend themselves to
partisanship, and I believe that this is truly a bipartisan effort of
which I think all of us can be proud. Again, my thanks to Senator
Hutchison.
Mr. President, I yield the floor.
The PRESIDING OFFICER (Mr. Brownback). The Senator from Texas.
Mrs. HUTCHISON. Mr. President, I ask unanimous consent that Senators
Santorum and Jeffords be added as original cosponsors of the
substitute.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mrs. HUTCHISON. I am ready to vote, after which we will then debate.
THE PRESIDING OFFICER. If there be no further debate, the question is
on agreeing to the amendment.
The amendment (No. 1609) was agreed to.
Mrs. HUTCHISON. Mr. President, I want to say that what Senator McCain
said is absolutely true. I think it is fairly clear from his comments
that he is not a fan of Amtrak. But as the chairman of the committee,
he worked with all of us who do care about Amtrak, who do want
passenger rail for our country, to try to give Amtrak a chance to
succeed. I think all of us have come together on a bill that will give
Amtrak a chance to succeed and will also make Amtrak accountable. That
is what Senator McCain is looking for and that is what all of us hope
will happen.
In fact, Senator Lott, the majority leader, who has worked on this
for, as he said, 3 years--he was the Surface Transportation
Subcommittee chairman before I took that position, before he became
majority leader--Senator McCain, Senator Hollings, Senator Breaux,
Senator Kerry, all contributed greatly to a very hard-fought
compromise. Because, of course, we are making huge changes in the law
as it affects Amtrak and passenger rail in our country. Anything that
makes this many changes, of course, could not be done easily. It took
the labor groups, it took the trial lawyer groups to come together and
work with us, along with Senators such as Senator McCain who want
accountability. So I think we have come together in a bill that will
give Amtrak a chance. It is not a slam dunk. It is not an assured
success. This is the first step in many steps that must be made for
Amtrak to be able to operate without subsidies in the future.
What this bill has done is authorize the subsidies over the next 5
years that eventually will phase out. At the end of 5 years there will
not be operational subsidies by the taxpayers of Amtrak. We have all
agreed to that. That is why it was essential that we have reforms, so
that Amtrak could be more efficient, so it could compete in the
marketplace, so that it could have a passenger operation that would be
much improved and, hopefully, bring more people into the system so it
could operate without the subsidies. In addition, the $2.3 billion in
infrastructure improvements, which are necessary both for the efficient
operations and for the higher technology trains that we hope they will
be able to operate, is contingent on these reforms. I think it was very
wise, in the budget reconciliation bill, that the $2.3 billion that
would be put into investment in capital improvements would be tied to
these very important reforms. Because without the reforms, Amtrak has
no chance to succeed--none. With the reforms, it has a chance. That is
what our bill today will give it. I would like to go through a few of
the most important points of what we did today.
First, some of the labor protections that were mandated by the
Federal Government are now taken out of the law. The 6-year statutory
severance benefits will now be in place for 180 days as they are
negotiated at the bargaining table, after which they will be totally
lifted from all negotiation and there will be no Federal mandates. In
other words, today if a line goes out of business or Amtrak takes it
off, those employees today would be entitled by Federal law to 6 years
of severance pay. Most Americans do not have jobs that have 6-year
termination agreements. In fact, when Amtrak first came into place, it
was a different time. Today, these severance packages are about to
break the system, and I think the unions realize that and they are
willing to say we will put it on the negotiating table and we will let
the free market reign. So that is the first thing we are doing.
The second thing we are doing is taking the prohibition against any
contracting out out of the law once again. It will be part of the
contracts for the next 2 years, but it is on the negotiating table now
so that Amtrak, if it sees that it can make efficiencies by contracting
out certain services, will be able to do that in a negotiated
framework. So that will be on the table as well.
It is very important that Amtrak bring its labor costs into line
because, in fact, if you look at other forms of transportation, the
labor costs in passenger rail transportation are lopsided. For
instance, no airline has more than 37 percent total labor expense, yet
Amtrak is at 54 percent of its total expenses in labor. No competing
passenger industry has similar protection rules that are mandated by
the Federal Government. In fact, Greyhound drivers and mechanics, who
might be laid off because of service discontinuances,
[[Page S11931]]
are guaranteed 7 days' notice under union contracts; no statutory
guarantee against contracting out. So I think if you are looking at
transportation in its totality in our country, you have to have the
ability to compete. So we have to have the ability at the bargaining
table to bring these costs in line, if Amtrak is going to be a viable
alternative form of transportation.
Another major area that needed some limitations was liability. Our
substitute bill provides for a global passenger liability cap of $200
million. I think this is very important. For any one accident there
will be a cap, so Amtrak will be able to buy insurance. That is what we
are trying to do, is have some sort of quantifiable limit so we will
know what the costs would be in the most extreme circumstances. And
Amtrak could buy insurance to cover that, hopefully at a reasonable
cost.
As Senator McCain mentioned, there is a trigger on this. There will
be an Amtrak Reform Council appointed to monitor Amtrak's progress with
these new reforms, to look at the 5-year glidepath that Amtrak is on,
to try to get to the point that there will be no more taxpayer
subsidies of Amtrak. This Amtrak Reform Council is going to look at the
Amtrak operation and the reforms and see how Amtrak is doing. After 2
years they will submit a strategic plan for Amtrak, and they will also
report to Congress if they just don't think Amtrak has a chance to make
it, after which Congress will be able, then, to either implement the
plan, the strategic plan that would be put forward, or pull the plug on
Amtrak.
These are accountability standards that I think are reasonable.
Certainly we want to put good money into helping Amtrak succeed, but if
it is going to be hopeless, we don't want to throw good money after
bad. So I think the accountability is a very important part of this
compromise.
We also provide in this bill for interstate rail compacts, so that
two States that have traffic that would warrant, perhaps, a joint
effort toward rail transportation could come together, could pool their
resources and provide for rail transportation in their States. I think
that is a very important step, for our States to be able to form
compacts, because that will add to the options of rail transportation.
It also provides that Amtrak will have to give 180 days' notice if
they are going to discontinue a route. The previous law required 90
days' notice. That is not enough time for a State to be able to step in
and help Amtrak, especially if it's a State that has a legislature that
only meets every other year and would have to make some emergency
arrangements.
So I think we have several new parts of the law that will help very
much in giving Amtrak the ability to succeed and also in giving more
options to our States to add to the rail passenger capabilities in our
country. Because, you see, I think one of the reasons that Amtrak is
not only viable but a very important part of an intermodal mobility
system for our country is because cities are now going more and more
into intracity rail systems. Even in southern States, in my State of
Texas, now, in Dallas, Dallas has a rail train system that goes out of
the Amtrak station. So I am very happy that the Texas Eagle Amtrak
train will be able to start in Chicago, IL, come down through Missouri,
through Arkansas, over through east Texas into Dallas and Fort Worth.
People can get off the train in Dallas or Fort Worth and they can get
on an intracity train and go all over the city of Dallas. They can go
to the zoo, they can go to the museums, they can go out north where the
commuting traffic is. They will be able eventually to go to the
airport.
So, as more cities are beginning to have rail transportation options,
then the feeding in of Amtrak also provides more passengers for Amtrak
and more mobility for the citizens of our country. I love the fact that
you can go from Chicago all the way down through Texas to San Antonio
and then get on another Amtrak train, the Sunset Limited, and go to Los
Angeles or all the way over to Florida.
These systems will provide vacation capabilities for people in our
country to see the sights of America on a train. I think it is
something that has been so successful in Europe through the years that
it will also have a resurrection in America that will provide more
opportunities for families to see this great country from a train and
have that experience that we really almost lost in the last 25 or 30
years.
So I think what we are doing today is not propping up a historic,
old, antiquated type of transportation that we have known in the past
in this country. That is not what we are doing today. What we are doing
today is providing a new, vibrant option for rail transportation to be
added to the air transportation that is so terrific in our country and
the bus transportation and the automobiles and highways that provide
mobility options for all kinds of people--people who can't drive and
people who don't want to drive. People who don't live near airports
would be able to go to a train station that is fed from buses from
small communities all over our States, going into an Amtrak train
station where someone can get off a bus in a very small town and get
onto an Amtrak train and go into cities from Florida to California,
from Illinois to Massachusetts, and all the way down to Texas.
So I think it is a very exciting thing we are doing. That is why I
have worked so hard with my colleagues, Senator Kerry, Senator Breaux,
Senator Hollings and Senator McCain, to make this a reality, to give
Amtrak a chance. Because if Amtrak can compete with the other kinds of
transportation, I think it will not be a relic of the past but a very
important part of an overall transportation system for the future for
our country, for our children to have this experience, for our elderly
people to have the mobility that train passenger systems can give.
I am very excited that we have come to this agreement. I appreciate
the bipartisan spirit in which this agreement has been made.
I thank the Senators who are waiting to speak and I yield the floor.
Mr. JEFFORDS. Mr. President, today we move another step closer to
preserving our Nation's passenger rail system. The desperate call for
action signals the importance of rail travel and the severe impacts a
shutdown of Amtrak would have on the daily lives of millions of
Americans.
We live in a nation that prides itself on independence. For many
Americans, their personal automobile grants them the ability to travel
unincumbered for work and pleasure. But as we all know, this freedom is
slowly ebbing as our Nation's highways and skies become more and more
congested. Our roadways and runways are at capacity and growth
opportunities are severely limited.
A drive through and around any major American city today will leave
most drivers frustrated by delays. This constant automobile congestion
slows commerce, reduces worker productivity, and limits travel
independence. In fact, highway congestion now costs the United States
$100 billion annually, not including the economic and societal costs of
increased pollution and wasted energy.
The American solution has been to find alternatives. Our road options
are limited. Ten-lane highways cannot be expanded, and new highways are
difficult to site and result in the destruction of irreplaceable land
and neighborhoods.
Congestion in the air is also a major issue. Slots at airports are
filled. Runways are backed up. Air space is busy. A recent safety study
reported that 21 of the 26 major airports experienced serious delays,
costing billions of dollars. New airports are expensive and only add to
the problems we face today.
Rail remains the one underutilized infrastructure available to our
Nation. Railroads offer us the opportunity to move cars off the
highways and planes from the air. Rail is efficient, cheaper and more
environmentally preferable than our other options. We must now begin
the careful process of retaining and rebuilding passenger rail in our
country.
Created in 1970, Amtrak serves millions of passengers each year. For
10 million households that have no car, and many communities without
air or bus service, Amtrak is their lifeline. Amtrak connects 68 of the
75 largest urban areas in the United States, and serves many of the 62
million Americans living in rural areas.
According to the Journal of Commerce, without Amtrak there would be
[[Page S11932]]
an immediate need for 10 new tunnels under the Hudson River between
northern New Jersey and New York City and 20 new highway lanes in New
York. If Amtrak disappeared tomorrow, there would be an additional
27,000 cars on the highway between New York and Boston every day.
In my home State of Vermont, passenger rail has been rediscovered. We
launched a new passenger service, the Ethan Allen Express last year, to
complement the already existing Vermonter. Both trains have been
immensely successful, brining passengers from New England, New York,
and across the Nation to our beautiful State. These trains have
relieved highway congestion, given an economic boost to the State and
offer travelers an alternative to driving or flying. Our dream in
Vermont is to expand this service, linking a number of our larger
cities and reestablishing rail service to Maine, New Hampshire, and
Boston.
And as we learned last winter in Vermont, rail keeps rolling
regardless of weather. During the deep winter storms, as cars were
snowbound and planes held on the ground, the trains were bringing
business travelers and skiers to our State. We all remember when the
eastern seaboard was hit with a major blizzard in in the winter of 1996
and the Federal Government was shut down for a solid week. But Amtrak
kept running. In fact, my only means of getting to the Senate that week
was on the train, as roads were blocked an planes grounded.
Passenger rail service is the future. But many in this city have yet
to recognize this reality. Amtrak has never been given the proper tools
to bring the train into the modern age. The rail system operates on
1930's technology, with outdated engines, cars and maintenance
facilities.
While this system struggles, other nation's have invested heavily in
technologically advanced high speed trains. France, Japan, and many
other nations operate state-of-the-art trains, an efficient mode of
travel in densely populated regions. Japan installed their bullet
trains in the early 1960's, and Europe in the 1970's. The high-speed
trains, cruising at 200 miles per hour or more, easily compete with
cars, buses, and planes.
Why has the United States fallen so far behind? Railroads in this
country once had the prestige and financial capital to do nearly
anything, but that changed over the years. Through mismanagement and
limited public support we let our passenger railroads decay to the
point of extinction. Today, we face the same choices. Should we support
reviving and expanding advanced passenger rail through public financing
or shut the system down? Let's not make a mistake that we would truly
regret in the future. It's time to make this railroad work and maintain
its role as a vital component of our Nation's transportation
infrastructure.
This Nation is on the verge of one of the most important
transportation developments in its history. High speed rail should be
operational from Washington to Boston by 1999. Other regions of the
country are also working to develop high-speed train service, including
California, Florida, and many other States. These trains easily compete
with air travel and allow travelers a comfortable, fast and efficient
means to reach their destination.
High-speed rail will also aid Amtrak's bottom line. This new system
will bring further profits to a business that badly needs the capital.
Many critics will question the need for further public investment in
Amtrak. As compared to other infrastructure programs, passenger rail
gets little public support. Last year we spent $20 billion on highways,
while capital investment for Amtrak was less than $450 million. In
relative terms, between fiscal year 1980 and fiscal year 1994, spending
on highways increased 73 percent, aviation increased 170 percent, while
spending on rail declined by 60 percent.
Without proper reforms and additional capital funding the future of
this railroad is at risk. I commend members of the Senate Commerce
committee who have worked to deliver a solid reform proposal to the
Senate. My hope is that the House will accept these changes and send
this bill to the President before we adjourn for the year. The plan we
have developed offers serious reforms that will enable the railroad to
modernize while reducing operating costs.
Our Nation needs passenger rail. Together, we must move forward to
preserve this important transportation option. The investments we are
committing to today will increase our Nation's investment in the Amtrak
rail system, and allow it to succeed in its efforts to continue to
operate into the future.
Mr. LAUTENBERG. Mr. President, I rise to support the compromise
Amtrak reauthorization bill being offered by Senator Hutchison. Passage
of this bill brings us one step closer to putting Amtrak on firm
footing by extending authorization for 5 years, and most importantly,
by giving Amtrak $2.3 billion in tax credits for much-needed capital
investments.
But let's not pretend we are completely solving the problem today.
The General Accounting Office has warned us over and over again that
making Amtrak self sufficient will be difficult and that realistically
we have to look at continued investment in the system beyond the year
2002.
Mr. President, our national transportation system is crucial to our
economy. And a national rail system is a crucial part of any national
transportation plan. But over the years we have consistently
shortchanged Amtrak.
For instance, over the course of this decade, Germany has decided to
invest nearly $70 billion on what is already an excellent railway
system in a country a fraction of the size of the United States.
What have we done? Well, since 1971, we've invested just $19 billion
in Amtrak. And now we are preparing to phase out operating subsidies
entirely. I think this is unrealistic.
Mr. President, let me put this in perspective. We continue to
subsidize every other form of transportation.
Over the past 15 years, in relative terms, we've increased spending
on highways by 73 percent and aviation by 170 percent, while we have
cut Amtrak's funding 62 percent.
As we starved our national rail system during most of this decade,
service declined and so did ridership. Between 1994 and 1996 Amtrak
went from 21.1 million passengers to 19.7 million --meaning Amtrak lost
even more revenue and was being sent into a downward spiral toward
bankruptcy.
And those 1.4 million riders Amtrak lost still had to get to their
destinations somehow and that likely meant more cars, buses, or planes
in our already congested airports and highways.
Coming from the State of New Jersey, I can speak first hand about the
importance of Amtrak to my State and the rest of the northeast
corridor.
The New York/New Jersey metropolitan area is one of the most
congested in the nation. A recent study said that every day people
waste more than 2 million hours in traffic--2 million hours a day.
To put that number into perspective, that means that people here will
waste more time in traffic in a single year than the man-hours to build
the entire Continental railroad.
And if Amtrak wasn't there, another 11 million people would be dumped
onto our roads.
How many billions of dollars would we have to spend widening roads in
order to accommodate this new traffic? How much time and money would
trucking companies, businesses and commuters lose as a result of
increased traffic and congestion? I do not think that anyone can
legitimately make the argument that highway users do not benefit from
Amtrak's operations.
Amtrak does not just reduce congestion on our highways. It carries
over 40 percent of the combined air-rail market between Washington and
New York. Loss of Amtrak service in this corridor would require another
7,500 fully booked 757 jetliners to carry Amtrak's passenger load each
year. How many billions would we have to invest in our air
infrastructure to accommodate these travelers?
Mr. President, while I've spoken about my region, Amtrak is also a
national passenger rail system that provides important service in areas
of the country that are not as congested. In many cases, Amtrak
provides residents of small rural towns with their only form of
intercity transportation. Each year, some 22 million passengers depend
on Amtrak for transportation between urban centers and rural locations.
Amtrak provides service in 45 of the 50 States.
[[Page S11933]]
Ask any Amtrak passenger, traveling through the State of Montana,
perhaps stopping off at Havre, on their way to Glacier National Park,
whether Amtrak is important to them. Of course it is.
Mr. President, this agreement in front of us today strikes a
compromise on very difficult labor issues. It asks Amtrak's workers to
make signficant concessions.
Mr. President, I worked hard to make these funds available to Amtrak.
During the budget negotiations, I worked with Senators Roth and
Domenici to include a reserve fund for Amtrak to allow us to make
additional capital funding available in future legislation.
Thanks to the leadership of Senators Roth and Moynihan, the Finance
Committee found a way to provide this funding in the tax reconciliation
bill through a $2.3 billion tax credit.
Mr. President, I would like to end by commending all of those who
worked so feverishly to put this compromise together. In particular,
Senators Kerry, Hollings, Lott, Hutchison, McCain, Roth and Breaux
deserve special recognition for their efforts and leadership in this
matter.
I urge my colleagues to support this Amtrak reauthorization
compromise.
I think this step we take today to begin rejuvenating our national
rail system might someday be considered just as historic as the
century-old congressional decision to build it in the first place.
But we must not kid ourselves. More will need to be done if Amtrak is
to thrive, not just survive.
Mr. CHAFEE. Mr. President, I strongly support this legislation, which
will preserve vital passenger rail service in the United States. I
applaud the hard work of the members of the Commerce Committee who have
worked out a reasonable compromise on this much-needed bill.
In the 25 years since Amtrak was created, we've learned several
things about passenger rail operations in the United States: First, in
today's increasingly competitive transportation marketplace, Amtrak
cannot continue to operate viably under the status quo. Second, we
recognize political reality and know that the American people will not
continue to support taxpayer subsidies of Amtrak if the railroad
continues to operate under the same structure that has brought it close
to financial collapse. Third, like its counterparts in the highway and
aviation sectors, passenger railroad ought to be afforded a reasonable
level of Federal assistance for its increasingly urgent infrastructure
needs.
With regard this third matter--Federal support--I am pleased that
Congress included within the tax bill passed earlier this year $2.3
billion for Amtrak's capital improvements. These funds will help Amtrak
conduct badly needed modernization of its infrastructure so that it can
enhance service to its customers and more effectively perform in a
competitive marketplace. However, these funds are on hold until the
bill before the Senate today is enacted into law.
What is also needed is a realistic assessment of the Federal laws
currently governing Amtrak's operation. Although attention recently
seems to be focused on the protections for Amtrak employees, there are
a wide range of laws that hinder Amtrak's stated goal of operating more
like a business.
It has been the provisions affecting Amtrak workers that have been
most controversial and have stymied action in Congress for the past 2
years. Some of these laws stem from the Depression era, a time when
Congress and the President sought to relieve a national tragedy. Others
were enacted when Amtrak was first created in the early 1970's, well
before the railroad's financial problems had developed.
In any event, it is important to note that many of these provisions
are mandated by law, rather than agreed to through the traditional
collective-bargaining process that businesses and labor unions across
America deal with regularly. Other employers in the United States are
certainly not required by law to provide worker benefits similar to
those required of Amtrak.
If financial and operational viability is going to be restored at
Amtrak, we simply must take a candid and reasonable look at all of the
very unique laws--not just the labor protections--that have hindered
Amtrak's ability to succeed. We must also ensure that, like its
counterparts in the aviation and highway sectors, passenger rail is
provided a reasonable level of support for capital improvements. These
are the goals this bill seeks to achieve, and I am pleased that Senate
is able to take it up today.
Specifically, when amended by this substitute, S. 738 will:
Authorize $5.163 billion for Amtrak over the next 5 years;
Mandate that Amtrak be independent of Federal operating subsidies in
5 years;
Repeal two statutes that affect work rules at Amtrak, and put them
into the collective bargaining process. These outdated statutes
prohibit Amtrak from contracting out, and mandate 6 years of severance
pay for laid off employees;
Impose a reasonable cap on punitive damages on rail transportation
liability;
Create an Amtrak reform council [ARC] that will regularly evaluate
Amtrak's financial performance to ensure accountability to the
taxpayer;
Clarify that the $2.3 billion included within the tax bill can only
be used for Amtrak capital improvements.
When taken together, the provisions of this legislation will restore
financial viability to Amtrak by permitting the company to operate more
like a business. The bill also gives the U.S. taxpayer the assurance
that Congress will no longer provide open-ended subsidies to passenger
rail.
There are allegations that Amtrak's operational reforms are being
sought as a ploy to make it less expensive to eliminate these jobs and
shut down the railroad altogether. This contention is ludicrous. The
biggest threat to these jobs is maintaining the status quo, which is
not financially viable for Amtrak.
If things continue under the current framework, Amtrak will soon be
forced into bankruptcy. Such an outcome would eliminate all of Amtrak's
20,000 jobs, to say nothing of depriving the Nation of a needed
service.
Ultimately, our effort to ensure that passenger rail survives into
the 21st century should be focused on the customer: we should help
ensure that conditions exist that will allow Amtrak to provide
efficient, reliable national transportation service without adversely
impacting its workforce or burdening U.S. taxpayers.
Absent this service, Amtrak's customers would go elsewhere, and our
highways and airports would become severely clogged. This legislation
ensures the viability of passenger rail service for the traveling
public, and I urge my colleagues to support it.
Ms. SNOWE. Mr. President, today the Senate holds the future of Amtrak
in its hands. The legislation before us seeks to put Amtrak's financial
situation on a track to self-sufficiency. We have delayed action on
Amtrak for three years and we cannot afford to delay it any longer.
As a member of the Senate Commerce Committee for the last 3 years, I
have listened to Amtrak and its detractors discuss the problems and the
potential for passenger rail service. The committee, first under the
leadership of Senator Lott, and now under the leadership of Senator
Hutchison, chair of the Surface Transportation Subcommittee, have
reported out tough but fair reform bills that put the burden on Amtrak
to prove it can survive without a Federal operating subsidy.
In the last Congress, despite the best efforts of Senator Lott, no
agreement could be reached with those who claim they want Amtrak reform
but also wouldn't let it come to the floor--even when they were offered
the opportunity to offer, debate, and vote on their amendments. Much
the same can be said to explain why we are here, in the waning hours of
the first session, considering this important bill.
I want to express my support for the amendment offered by Senator
Hutchison and my appreciation for her dedication to moving the reform
process forward. She has fought a difficult battle because of her
belief in the importance of maintaining a national passenger rail
system, and I would like to commend her for her hard work and
dedication to reform.
But, we are not simply debating Amtrak reform, but a more complex
question: Do we, as a Nation, believe that we should have a national
passenger rail service? If we do, then we will pass
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this bill with Senator Hutchison's amendment. If we fail to address the
financial problems at Amtrak all we are doing is delaying the
inevitable.
We need to make the tough choices--that is what the people of this
country have sent us here to do. If we are not willing or able to do
that for Amtrak then we might as well shut the system down rather then
allow it to slowly bleed to death. That is what is happening now
because some in this body have been unwilling to face up to the fact
that there is no easy answer to the financial problems facing Amtrak.
If there were--we would not find ourselves in this situation.
Three years ago, Amtrak took the Government's pronouncement that it
should operate without Federal operating subsidies to heart. They
developed a business plan and told Congress what was needed both in the
way of statutory changes and capital funding in order to meet this
goal. Earlier this year we created the capital trust fund--an important
first step--but in this case money simply isn't enough. Until we
address the statutory changes they need, we have left them to sink
slowly into bankruptcy.
Tom Downs has come before the Commerce Committee, the Finance
Committee, the Appropriations Committee, and the Environment and Public
Works Committee to tell the Senate what changes Amtrak needs in order
to turn a public railroad into a business. He has laid out the
statutory changes that are necessary in order to allow Amtrak to
compete in the next century. He has been very straightforward about the
fact that without these changes, Amtrak has no future.
The Commerce Committee has twice reported out bills that provide
these changes. But the committee has also made it clear that the reform
bill is a commitment between Congress and Amtrak to achieve the mutual
goal of self-sufficiency. We have created the Amtrak Review Council
which will consider factors that will help it determine if Amtrak has
kept its end of the deal--Amtrak's performance, and the findings of the
independent assessment--in order to determine whether or not Amtrak
should continue to exist. I included a provision in the bill that will
require the ARC to also consider whether Congress has held up its end
of the bargain by requiring the council to look at whether sufficient
funding was provided for Amtrak to carry out the financial plan it is
required to write under the bill.
In my very first Commerce Committee hearing in January, 1995, Ken
Mead, then with GAO told us that ``. . . Congress needs to decide what
is to be expected from Amtrak and how much it is willing to pay to
fulfill those expectations.'' I believe the committee has provided the
full Senate with a bill that provides Amtrak and its shareholders with
a clear outline of those expectations and most importantly, provides
Amtrak with all the tools, within its power, to meet those
expectations.
I believe that the committee's reform package--offered today by the
distinguished Senator from Texas--is a fair one, but least anyone think
that we are simply pouring money into a sinking ship, it is important
to remember that this bill also includes a heavy dose of tough love. If
the ARC determines that Amtrak cannot become free of Federal operating
subsidies, then plans will be made for liquidation or a major
restructuring will be undertaken.
Having worked with Tom Downs, I am a firm believer that he and the
men and women who have worked so hard to keep Amtrak moving will meet
the goal of self-sufficiency. If they cannot, even after Congress has
provided them with the tools they have asked for, then I am ready to
close them down. But I want to know that they had the opportunity, the
resources and the tools to meet that goal, first. And that is why it is
so important that we adopt the amendment offered by Senator Hutchison.
It is also important to look at what, until today, has prevented us
from moving the Amtrak reform legislation--labor and liability.
According to the General Accounting Office, labor accounts for 52
percent of the costs at Amtrak. You don't need to be an accountant to
know that if Amtrak is to succeed it needs to be able to address these
costs. Amtrak has asked for the ability to sit down at the bargaining
table and negotiate on the issues of contracting out of services and
severance pay, which under current law is 6 years. The Committee bill
required both sides to negotiate. Under the Hutchison amendment, the
issue of contracting out shall itself be negotiated in the next round
of contract negotiations.
A lot has changed since Amtrak was created and we need to allow the
system to change with the times if it is to be a competitive force as
we enter the next century. The men and women of Amtrak have worked hard
to improve the system, make no mistake about it, and they have more at
stake then anyone for without Amtrak they have no job. I do not believe
that asking them to sit down at the table and negotiate is asking too
much.
The Hutchison amendment also makes changes in the liability issue
that has long held up reform. It is a much misunderstood issue and I
applaud the Senator from Texas' ability to reach agreement on the
issue.
The Senate will make an important decision today. We can take the
responsible approach, pass reform, and help put Amtrak on the road to
self-sufficiency. Or we can take the irresponsible approach, kill the
bill and shut down passenger rail service. I have the luxury, I
suppose, of coming from a State that will not be impacted one way or
the other at this time. Maine does not have train service. We would
like it, and we are waiting for a decision by the Surface
Transportation Board to determine if we will get it, but the people of
my State believe that a national passenger rail system is important,
and so do I.
A national passenger rail system is as much a part of our future as
it is of our past. The Journal of Commerce noted last year that
Amtrak's presence eliminates the need for 20 additional highway lanes
in New York City and 10 new tunnels under the Hudson. It also replaces
27,000 cars on the highway between Boston and New York every day. We
can only add so many lanes to any given highway.
We need Amtrak--not as a reminder of our past, but as a vital part of
our transportation future, and I urge my colleagues to join me in
passing this bill.
Mr. HOLLINGS. Mr. President, I rise today in support of S. 738, the
Amtrak Reform and Revitalization Act of 1997, and urge its immediate
passage.
S. 738 is the final product of a long collaborative process between
Democrats and Republicans alike who have come together in a bipartisan
way in order to save and strengthen Amtrak, the Nation's passenger rail
carrier. Credit must be given to Senator Hutchison, the subcommittee
chairman, Senator McCain, our Commerce Committee chairman, and the
majority leader, Senator Lott who took a personal interest in this
legislation to get it done. On my side of the aisle we must acknowledge
the contributions of Senators Kerry, Breaux, and Ford who negotiated
this compromise.
In addition, we should mention those Senate staff members who worked
long hours to bring this legislation to the floor today. They include:
Ann Begeman and Charlotte Casey from the Commerce Committee majority
staff; Amy Henderson and Larry DiRita from Senator Hutchison's staff;
Carl Biersack of the majority leader's office. On the Democratic side I
want to mention: Ivan Schlager, Jim Drewry, Clyde Hart, and Carl
Bentzel from the committee staff; Gregg Rothschild from Senator Kerry's
office; Mark Ashby from Senator Breaux's staff; Greg Rohde from Senator
Dorgan's office; Tom Zoeller from Senator Ford's office; and Jonathan
Adelstein of the minority leader's office.
This bill gives Amtrak the tools it says it needs to survive and
prosper into the 21st century. In order for this to be done, each of
Amtrak's stakeholders has had to give up some benefit. Amtrak
passengers will have to bear a limit on Amtrak's liability to them,
much the same way that the airlines limit their liability to
passengers. Amtrak employees will have labor protections trimmed, but
they will retain the ability to renegotiate these protections in the
collective bargaining process. In addition, Amtrak management will be
under increased scrutiny to perform. The bill establishes an Amtrak
Reform Council to advise Amtrak management and to report to the
Congress
[[Page S11935]]
on Amtrak's progress to self-sufficiency.
However, in return for those sacrifices, the bill provides Amtrak,
for perhaps the first time, sufficient funds for it to repair and
revitalize its track and facilities to grow into a first-class rail
passenger service. The United States ranks very low in the world in the
amount of money it spends on rail passenger service. According to one
study the United States ranks below Bangladesh in the amount of money
we allocate to this service. With this bill we can begin to close that
gap and give the American people a service they can use and be proud
of.
Mr. SHELBY. Mr. President, I compliment my colleagues on the Senate
Commerce, Science, and Transportation Committee on today's successful
passage of the Amtrak reauthorization bill. I acknowledge that the
procurement, labor, and liability reforms contained in this bill as
amended by the chairman's substitute amendment are the end result of
difficult negotiations and compromises among many competing interests,
and represent many years' effort. Issues such as contracting out and
mandatory 6-year severance pay have been taken out of statute and put
on the negotiating table.
I hope this bill's provisions, along with future negotiations, result
in some real reforms. Even with the $2.3 billion in tax credits that
will be released on January 1, 1998 if this reauthorization bill is
enacted into law, Amtrak will still be hard-pressed to continue running
trains in the future, if meaningful improvements are not made in the
way the railroad does business. Since I have taken on the chairmanship
of the Senate Appropriations Transportation Subcommittee this year, one
thing has become crystal clear: Amtrak does not intend to be weaned
from Federal subsidies any time soon. The Amtrak-Brotherhood of
Maintenance of Way Employees [BMWE] union agreement reached last
weekend contains contingencies that require appropriations levels
higher than those in current law or contemplated by the balanced budget
agreement. Amtrak touts its glidepath to self-sufficiency as the
funding path that will eventually lead to the elimination of Federal
operating subsidies. However, the Amtrak-BMWE agreement points to a
glidepath in the opposite direction.
The fiscal year 1998 transportation appropriations bill provided $793
million for Amtrak operating and capital expenses. Added to Federal
subsidies paid to Amtrak since the Corporation was formed in 1971, the
taxpayers have thus far spent $22 billion on a national railroad that
carries fewer than 20 million passengers a year--less than 1 percent of
all annual intercity passenger trips in the United States. According to
the General Accounting Office, the average Amtrak direct Federal
subsidy is $38 per passenger trip, compared to $1.50 per commercial
airline passenger enplanement. This is subsidy that comes out of the
pockets of every American taxpayer, and yet, wide swaths of the country
are not served at all by Amtrak, and many communities that do have
train service only see the train a few times a week, or at odd hours of
the night.
There is a growing sense that Federal funding of Amtrak can no longer
be justified on fiscal or mobility grounds, and that it is time to
consider phasing out the railroads's public monopoly status. I really
hope that the reforms contained in this reauthorization bill do make a
difference in the way Amtrak does business. Because if they do not, by
releasing these tax credit funds, the Congress may simply be extending
Amtrak's financial instability for 2 more years, and costing the
taxpayers yet more appropriated funds for the subsidy of a failed
experiment.
Mr. BIDEN. Mr. President, I am pleased that we finally have before us
the legislation we need to give Amtrak a new lease on life. In my
remarks this afternoon, I will start with the bottom line.
When we pass this legislation today, Amtrak will be eligible to
receive the $2.3 billion that was provided in last summer's balanced
budget plan. This legislation authorizes the continued existence of
Amtrak--that authorization expired in 1994--and therefore gives Amtrak
access to the capital fund that some of us have worked so many years to
establish.
Agreement on the terms of Amtrak's reauthorization has not been easy,
Mr. President. It has taken several years to accomplish, marked by many
long hours and more frustrations than I care to recall, as agreements
we thought were done unraveled over and over again.
The bill before us this afternoon has required the best efforts of
many of my colleagues, who have persevered in the face of those
frustrations. We could not have reached this point without the
leadership of Senator Hutchison, along with Senator McCain, and of
course, their colleague on the Commerce Committee, the distinguished
majority leader, to reach agreement on the many difficult issues that
this legislation has raised.
And I know that without the persistence of Senator John Kerry, along
with Senators Hollings and Breaux, we would not have reached this
point.
And if I may say so, Mr. President, the entire Delaware congressional
delegation has been a part of this process from the beginning. My good
friend Bill Roth, chair of the Finance Committee, and our Governor, Tom
Carper, who is on the Amtrak board of directors, both continued to play
their key roles at critical moments in this process.
The result is a bipartisan compromise, that required that everyone
give up some of what they wanted to get as much as possible of what
Amtrak needs. Those of us who followed these negotiations closely can
count many moments when it seemed that this legislation was dead. Only
the long-suffering perseverance of the key players made this
legislation possible.
But let's be clear about where we are in the life of Amtrak. As my
good friend, Senator McCain, has stressed today, Amtrak is indeed in
dire economic trouble. And yes, some of this trouble is indeed due to
some of the constraints that we in Congress put on Amtrak's business
practices when we created it a quarter of a century ago. That is why
the reforms in this legislation are needed.
But I believe that much of the problem is due to our failure over the
years to provide our nation's passenger rail system with the level of
financial support that we give to other elements of our country's
transportation system.
As Senator Kerry has argued here this afternoon, we here in the
United States rank below some of the poorest Nations on the planet in
the level of financial support per citizen that we provide our
passenger rail system.
One result of this has been that during the 25 year life of Amtrak,
its employees have seen their wages cut as the cost of living
grew while their paychecks stagnated.
In my State of Delaware, we have two of the essential maintenance
facilities for Amtrak--at the Wilmington and Bear, DE yards. The
workers at these facilities are the best in the business, and are
carrying on a tradition that reaches back to the turn of the century in
which Delaware has provided essential support for passenger rail along
the East Coast.
The hard work that the men and women of the Delaware yards have put
in keeping Amtrak's equipment and tracks safe and dependable has been
rewarded with a stagnant standard of living. And our citizens--not just
in East Coast urban areas, as we often hear, but in small towns all
over the country--have had much less passenger rail service than the
citizens of other major industrial nations.
By failing to support Amtrak adequately, we have been forced to live
with a less efficient transportation system, reducing the effectiveness
of the more substantial funds we provide for highways and airports,
which are crowded with travelers who might otherwise be able to travel
by rail.
We all hope that Amtrak will make the best of the management reforms
in this bill to put passenger rail on a healthier financial track for
the future. But this legislation entails more than operating reforms
and access to a new capital fund.
As Senator McCain so rightly pointed out, this legislation makes
provision for termination of Federal Financial support for Amtrak's
operations by the year 2002, something already part of our long-term
budget plans. It includes provision for a study of the possibility of
Amtrak's bankruptcy and liquidation. For the first time in Federal law,
[[Page S11936]]
we are contemplating the possibility of shutting down passenger rail in
this country.
So while those of us who put in the hard work that made this moment
possible should rightfully be proud of those efforts, we must not lose
sight of the big picture. While we have bought a little more time for
Amtrak, we have by no means assured that passenger rail--essential to
the efficient operation of every other industrial economy's
transportation system--will survive in the United States.
Over the next 5 years, there will be more tough choices as we move
toward the twin goals of a balanced Federal budget and the end of
Federal operating support for our country's passenger rail system. If
we fail to provide Amtrak with the resources it needs to modernize, to
attract the ridership and revenues that can advance the goal of self-
sufficiency, today's accomplishment will be hollow.
I am not convinced, Mr. President, that we have chosen the right
course for passenger rail in this country. No one argues against
reforms that make the best use of taxpayers dollars, reforms that
permit Amtrak to make use of the best business practices to attract
riders and to expand our country's passenger rail system.
But by themselves, those reforms will not relieve us of our
responsibility to keep passenger rail alive.
Senator Kerry reminded us today that the European Community has
committed to major new investments on top of their substantial
contributions to their continent's passenger rails system. As the most
productive economy in the world, we should face up to the need to make
similar commitments here.
So many benefits flow from these investments--benefits that can be
measured, but not always on the books of any given passenger rail
system--that the rest of the developed world is willing to make that
kind of commitment. Those benefits include more efficient use of fuel,
cleaner air, reduced congestion on our highways and at our airports--
real benefits that add up to real dollars saved that can be put to
better use.
In today's world--with balanced budgets and increased economic
competition--we must make sure that we capture those benefits and save
those dollars. That is why the fight for passenger rail in the United
States is far from over today.
The PRESIDING OFFICER. The Senator from Massachusetts.
Mr. KERRY. Mr. President, I ask unanimous consent that the vote that
was scheduled for 2:15 be delayed until the end of my comments.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. KERRY. Mr. President, I am delighted to join with the Senator
from Texas, the chairman of the Commerce Committee, the Senator from
Arizona, Senator Hollings, Senator Breaux in strongly supporting Amtrak
itself and, equally important, supporting this reauthorization bill
which is pending before the Senate.
I offer my sincere thanks to the Senator from Texas, Senator
Hutchison, for her persistence on behalf not just of the bill but
particularly Amtrak, which she just talked about, which she has vision
of and of which we share a vision.
I also thank Senator McCain who worked hard with all of us. Despite
his own very deeply felt misgivings regarding federally subsidized
passenger rail, as chairman he was very fair to all of the opinions
that existed on the committee and gave us the opportunity to be able to
come together to forge what I think is a good compromise.
A compromise, obviously, doesn't leave everybody happy. It is not
supposed to. There are folks on both sides of the aisle who, if they
wrote their own bill, would have written a different bill. Clearly,
that is true. But it is because we reached that compromise that I think
we put Amtrak in a position not only to survive but to thrive, and we
have preserved the rights of labor to be able to negotiate
appropriately for their relationship with the management.
I will not review, in the interest of time, any of the specific
provisions at this moment. Senator Hutchison has done that. Senator
McCain has done that. But I would like to take a moment just to
emphasize what I think can't be emphasized enough, which is the
importance of Amtrak to the country and particularly important to the
Northeast Corridor Improvement Project and to the transportation
infrastructure of the Northeast region of the country. I think it is
important to all the regions it reaches, but I particularly point out
that the future completion of the Northeast corridor, which this
legislation will help to ensure, is expected to attract 3 million
additional passengers annually between New York and Boston.
This improved rail service is going to ease the congestion of Logan
and other major Northeast airports. The Federal Railroad Administration
expects passenger air service between Boston and New York to decrease
by 40 percent as a result of these measures and to result in the
elimination of over 50 daily New York-Boston flights. Indeed, without
this legislation, and without the continued modernization of rail
travel in the Northeast, the four airports between New York and Boston
would be projected to produce annual passenger delays of over 20
million hours per year. That is lost productivity. That is a lost
competitive edge for our country, as well as for the region.
We can expect improved Northeast rail service that will come as a
result of this legislation to have a spillover positive impact on road
congestion. Mr. President, 5.9 billion passenger miles were taken on
Amtrak in 1994. These are trips that were not taken on crowded highways
and airways. Improved rail service in the Northeast is projected to
eliminate over 300,000 auto trips each year from highways that are
increasingly overly congested, and it will reduce auto congestion
around the airports as well as improving air quality for the country
and in the Northeast.
As these figures demonstrate, a healthy and financially viable
passenger rail system is the key to ensuring an efficient
transportation infrastructure in our country. We simply cannot
continue, in some parts of the country certainly, to build more and
more roads and more and more airports. The space doesn't allow it. We
should look to Europe, and we should look to Japan, and we should look
to other countries for the experience that they have had as more and
more of the square miles of their country are consumed by business and
by living space and where they have had to make use of those spaces
effectively.
The fact is that in the United States of America within the next 20
to 30 years, the vast majority of our population, 75 percent of it,
will live within 50 miles of coastline, including the Great Lakes. We
will need to consider how we move people and products as those areas
become more crowded.
So, simply stated, we need Amtrak because we cannot continue to pave
our way out of our transportation problems. I would like to take just a
quick moment to address some of those in the Congress who criticize
Amtrak and any kind of Federal subsidy of rail as a form of some kind
of central planning that is inherently dangerous and that supposedly
the United States has always avoided. The fact is, Mr. President, we
have not only not always avoided it; we have relied significantly on
that kind of Federal input and planning to help us to be able to build
the network of transportation that we rely on.
Throughout our Nation's history, we in Congress have been proactive
and aggressive about this kind of assistance. You can drive in one
relatively straight line from the northern coast of Maine to Florida on
a well-paved road because the Federal Government planned it and because
we funded the Interstate Highway System. The planning and construction
of our Nation's ports and canal networks, transcontinental railroads,
the air traffic control system, and the Interstate Highway System are
all examples of Federal leadership in transportation policy which led
to overall economic growth, to improved transportation efficiency and,
finally, to the development of entirely new industries.
Indeed, while we in Congress have argued over whether the Federal
Government should or shouldn't ensure a healthy inter-city rail system,
internationally it is no secret that a well-founded rail network is an
essential ingredient of a strong 21st century economy.
[[Page S11937]]
In fact, every major economic power, except the United States,
invests several billions of dollars annually in passenger rail
transportation. The European Union plans to invest more than $100
billion to better utilize and integrate its multibillion-dollar-rail
network. And our economic competitors in Asia, including China, Taiwan,
Malaysia, and South Korea, are all investing heavily in rail.
The unfortunate truth is that on a per capita basis, at least 34
countries, including Guinea, Myanmar, South Africa, Iran, and Botswana
each spend more than the United States on passenger rail. In this
light, which I think is the correct light in which to view what we are
doing today, we are doing the bare minimum necessary to ensure
continued passenger rail travel in the United States and to maintain a
vibrant national transportation network.
Finally, I would like to take a moment just to say something about
the men and women in Amtrak's labor organizations who work
extraordinarily hard daily to ensure that the trains are in working
order, that the tracks are maintained and that millions of Americans
are able to get to work and travel comfortably and safely from city to
city.
Much has been made in the arguments over reform about labor
provisions in U.S. law which did give protections to those who worked
on Amtrak. Those protections were to guarantee that their jobs wouldn't
be contracted away or that a specific level of a severance might exist
in order to safeguard them.
Before one overly criticizes those provisions which we have changed
and which, in my judgment, we appropriately came to a compromise on,
recognizing the times that we now live in, but it is important to not
be overly cynical about them and to, frankly, understand the context in
which they came about.
Amtrak was formed only in the 1970`s, and the reason it was formed
was that the freight carriers were unwilling to continue to provide
passenger service. It was unclear at the time whether a new entity,
called Amtrak, was going to be able to survive at all. It needed
experienced, skillful workers in order to be able to put that survival
to the test, in order to try to become a viable entity.
So to attract those skilled, viable workers from another job under
another umbrella which they worked in where they had a pension and
where they had years of experience, it was necessary to say to them,
``You are not going to lose your job immediately. We are going to
guarantee you that for taking the risk for helping to make Amtrak work,
we will provide you with a guarantee.''
The labor provisions that are at issue in this debate were originally
put into Amtrak law in order to attract employees from other carriers
so that they would work for Amtrak. Simply stated, the provisions
guaranteed that people who came to work for Amtrak when they didn't
know it would survive would receive nothing more than the protection
they had enjoyed previously.
Since that time, I point out to my colleagues, that Amtrak employees
have made tremendous financial sacrifices in order to help keep Amtrak
going. I don't think those have been recognized. In the early 1980's,
Amtrak employees agreed to a 12-percent wage deferral in order to help
Amtrak's bottom line. This deferral has never been repaid. So in point
of fact, it became not a deferral, it became a wage giveback, a 12-
percent wage giveback.
From 1987 through 1992, Amtrak employees agreed to have their wages
frozen, even though management received salary increases as high as 15
percent during that period.
In addition, Amtrak employees are paid considerably less than workers
holding similar jobs in other transportation agencies. For example,
Amtrak car mechanics will earn $2,200 less than those car mechanics on
Atlanta's commuter lines; $6,500 less than those on Chicago's commuter
lines; and $16,300 less than those on New York's and New Jersey's PATH
commuter lines. A mechanic who started to work at Washington's Metro in
1980 literally would have received over $100,000 more than if he or she
had worked for Amtrak.
So now with this bill, Amtrak's employees are making yet another
sacrifice, and they are giving up statutory protections to allow them
severance benefits in the event of route cuts and also to change the
contracting-out provisions.
Mr. President, one of the reasons we have this bill is because Amtrak
employees have agreed to make this sacrifice. I think that those of us
in Congress and the millions of Americans who enjoy Amtrak ought to be
grateful for their courage and commitment to its continued viability.
I believe we have laid the groundwork for Amtrak to survive. Labor
would be permitted to negotiate as normally as they can negotiate in
the marketing process. I think we have reached an accommodation that
will help us keep Amtrak not just alive but on the first steps to
becoming a model, hopefully, in the long run as we go into the next
century for what a good passenger rail system can be.
Mrs. HUTCHISON addressed the Chair.
The PRESIDING OFFICER. The Senator from the great State of Texas.
Mrs. HUTCHISON. Thank you, Mr. President. I thank the Senator from
Massachusetts who was so helpful in working out this compromise. I
think, as he said, a lot of people had to give something that they
didn't want to give, which probably means that we did a fair
compromise. Senator Breaux, who is also on the floor, was very much a
part of this. Senator Hollings, who was here, I also thank.
If there is no one else wishing to speak, then I would like to have
third reading and then go to a vote, if that is possible.
The PRESIDING OFFICER. The question is on the engrossment and third
reading of the bill.
The bill was ordered to be engrossed for a third reading and was read
the third time.
The PRESIDING OFFICER. The bill having been read the third time, the
question is, Shall it pass, as amended?
The bill (S. 738), as amended, was passed.
Mr. LOTT. Mr. President, today the Senate acted in a fully bipartisan
manner to adopt meaningful and genuine legal, labor, and management
reforms for America's national passenger railroad. It offers
legislative solutions that could begin to restore the fiscal health of
this failing railroad.
American taxpayers have already invested over $20 million in this
railroad.
Let me be clear: the Senate is sending a bipartisan message to this
railroad--the management and the workers must fundamentally change both
their culture and operating methods.
Amtrak cannot continue getting subsidies.
The legislation adopted today is an amendment to the bill reported by
the Commerce Committee earlier this year. It is the bill sponsored by
Senator Kay Bailey Hutchison. The amendment was a joint effort of
several members of the Commerce Committee on both sides of the aisle.
I want to personally commend the Senate's Commerce Committee for
their leadership on this important transportation issue.
I'm sure the nearly 2 million Americans who ride the commuter rail
system every day want to also thank them.
I also want to recognize the work of a number of dedicated staffers
who have invested many hours, evenings and weekends to get the
legislative language right. The work was intense, emotional and
personal, but everyone maintained their professional manner and got the
job done. The staff responsible for the details are: Ann Begeman, Clyde
Hart, Amy Henderson, James Drewry, Lloyd Ator, and Penny Compton.
Let me just take one moment and clarify one important issue within
this reform bill. The current industry practice between Amtrak and
other rail carriers is to allocate financial responsibility for claims.
This makes sense and in fact many such contractual agreements exist
today. The language in section 28103(b) of the bill is intended to
confirm that such contractual agreements are consistent with Federal
law and public policy. One should not construe this section as
modifying such agreements.
Today, the Senate has taken action to ensure America's passenger rail
service will not be interrupted. And, the Senate also mandated reforms
to assure a prosperous passenger railroad.
[[Page S11938]]
Mr. President, this reauthorization reform for Amtrak is long
overdue, but it is on the right track.
____________________