[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

[[Page S11934]]

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.

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  Mr. President, this reauthorization reform for Amtrak is long 
overdue, but it is on the right track.

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