[Congressional Record Volume 149, Number 115 (Wednesday, July 30, 2003)]
[Senate]
[Pages S10267-S10296]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. CAMPBELL:
S. 1489. A bill to authorize the burial of Bob Hope at Arlington
National Cemetery; to the Committee on Veterans' Affairs.
Mr. CAMPBELL. Mr. President, I ask unanimous consent that the text of
the ``Bob Hope Arlington Honors Act of 2003,'' legislation authorizing
the burial of Bob Hope at Arlington National Cemetery, be printed in
the Congressional Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1489
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Bob Hope Arlington Honors
Act of 2003''.
SEC. 2. AUTHORIZATION OF BURIAL OF BOB HOPE AT ARLINGTON
NATIONAL CEMETERY.
The Secretary of the Army shall permit the burial of Leslie
Townes (Bob) Hope of California, an honorary veteran of the
Armed Forces of the United States, in Arlington National
Cemetery, Virginia, upon the request therefor by the family
of Leslie Townes Hope.
______
By Mr. McCONNELL (for himself, Mrs. Dole, Mr. Bunning, Mr.
Hollings, Mr. Edwards, Mr. Miller, Mr. Frist, Mr. Warner, Mr.
Allen, Mr. Chambliss, Mr. Graham of South Carolina, Mr.
Alexander, and Mr. Bayh):
S. 1490. A bill to eliminate the Federal quota and price support
programs for tobacco, to provide assistance to quota holders, tobacco
producers, and tobacco-dependent communities, and for other purposes,
read the first time.
Mr. EDWARDS. Mr. President, the introduction of the Tobacco Market
Transition Act is an important milestone for tens of thousands of
farmers. I am proud to have been part of the bipartisan working group
that crafted this bill.
For decades, thousands of farmers in my state have depended on their
tobacco quotas. They made significant investments in equipment and
land. They paid into the no-net cost assessment program knowing that
the quota system they were locked into would provide for them. They
didn't get rich--most of the farmers in my State will tell you that
their tobacco profits allowed them to send their children to college or
just pay the bills.
But that financial security has been eroded. The Federal quota is at
an all-time low. In fact, just in the past five years tobacco farmers
have seen their quotas cut in half. That same time has been
particularly difficult for my farmers, who have had to adjust to the
dwindling quota while losing their crops and in some cases their entire
farms to three hurricanes, a massive ice storm and a severe drought.
It is time to end the Federal quota system. It is time to give these
hard working men and women a chance to transition to other crops or to
retire with dignity. And for those who want to continue to grow
tobacco, we must end the antiquated quota system and give them a chance
to compete with foreign producers just as if they were growing any
other crop like corn or sweet potatoes.
Of course, this isn't just another crop. This is tobacco and the
tobacco leaf is used to make addictive, deadly products. We must
address that fact. I am certain that before the year is out, the Senate
Health, Education and Labor Committee, of which I am a member, will
consider relevant legislation to protect public health. I welcome that
committee's efforts. But in the debate surrounding the tobacco
industry, we cannot lose sight of the fact that thousands of honest,
hard working people depend on the leaf for their economic livelihood.
People like Blythe and Gwendolyn Casey of Kinston, NC. Mr. and Ms.
Casey began farming tobacco decades ago. They made a decent living
doing what they loved. As the years passed, they increased their
production and made substantial investments in equipment and regulation
barns. They paid into the no-net cost assessment program and played by
the rules. They never got rich, but they were confident their
investments would allow them to one day retire and remain on their
farm.
Through no fault of their own, they've watched the value of their
quota essentially disappear. When they began farming, they never
thought they would reach retirement age mired in debt. The Caseys, and
thousands of tobacco farming families in eastern North Carolina face a
bleak financial future unless Congress acts.
The Federal quota system has reached a crisis point and we must
intervene. The Tobacco Market Transition Act is our best chance to
stave off economic disaster for tens of thousands of farmers.
This bill represents a compromise literally years in the making. This
bill is not perfect. But this bill could be the last hope for farmers.
Mr. ALEXANDER. Mr. President, I am proud to cosponsor the Tobacco
Market Transition Act of 2003, which is a vital piece of legislation to
farmers in Tennessee and other tobacco producing States. As our
citizens and government respond to the dangers of cigarettes and
tobacco, farmers and farm communities that have depended on this crop
are contending with challenges greater than just the decrease in
[[Page S10268]]
demand. Tobacco growing quotas, the leasing of those quotas, and the
Federal price support system have combined with decreasing demand to
form the ``perfect storm'' to afflict tobacco farmers.
I grew up in east Tennessee, and small family tobacco farms were a
part of the lifestyle and economic vitality in our region. Tobacco
farmers are currently suffering because of government programs and
declining demand for their crops. The number of tobacco farmers in
Tennessee has decreased from more than 35,000 farms in 1980 to fewer
than 15,000 today. Revenue from tobacco in Tennessee has declined by
$25 million over the same period.
This bill will provide a short term bridge to tobacco growers and
quota holders, and the communities in which they live. Tennesseans who
own quotas will receive a fair transition away from lease income they
have received. Growers will receive transition payments as well. The
buyout would last over six years and mean roughly $2 billion to the
family farmers, quota lease owners, and communities in Tennessee.
Tobacco farming will continue to be faced with challenges, but
successful passage of this legislation will provide a safety net to
farmers and their communities. I applaud the work of Senator McConnell
on this important legislation and will work with him and our other
cosponsors to provide the transition our tobacco farming communities
desperately need.
______
By Mr. CORNYN:
S. 1491. A bill to amend the Internal Revenue Code of 1986 to expand
workplace health incentives by equalizing the tax consequences of
employee athletic facility use; to the Committee on Finance.
Mr. CORNYN. Mr. President, over the past few months, the Medicare
debate has focused our attention on a range of issues related to the
future of health care in America. Central to our debate has been how to
pay for the dramatically rising costs of health care and whether we can
afford a prescription drug benefit to treat the disease of an aging
population.
The Medicare and Medicaid programs currently spend $84 billion
annually on five major chronic diseases, diabetes, heart disease,
depression, cancer and arthritis. We have discussed options for paying
for the treatment of these diseases, but have spent far less time
exploring ways to prevent them in the first place.
I believe that disease prevention and the promotion of healthier
lifestyles offers us an excellent opportunity to begin reversing the
steep rise in health care costs we are facing today. Public health
experts unanimously agree that people who maintain active healthy
lifestyles dramatically reduce their risk of contracting chronic
diseases. A physically fit population results in a decrease in health
care costs, reduced government spending, fewer illnesses and improved
worker productivity.
Given the tremendous benefits exercise provides, I believe we have a
duty to create as many incentives as possible to get Americans off the
coach and up and moving. With this in mind, I have introduced the
Workforce Health Improvement Program, WHIP Act. The WHIP Act mirrors
similar legislation introduced by Rep. Pat Toomey, R-PA, in the House
of Representatives and would allow for the favorable tax treatment of
health club memberships as an employee benefit.
Specifically, it would clarify an employer's right to deduct the cost
of subsidizing or providing health club benefits for their employees.
In addition, this legislation would exclude the wellness benefit from
being considered income for the employees, i.e., employer contributions
to the cost of health club fees would not be taxable income for
employees.
Current law already permits businesses to deduct the cost of on-site
workout facilities, which are provided for the benefit of employees on
a pre-tax basis. However, if a business wants, or needs, to outsource
these health benefits, they and/or their employees are required to bear
the full cost.
The WHIP Act would correct this inequity in the current tax code to
the benefit of many smaller businesses and their employees. It also
would be an important step in reversing the devastating health trend
that our country is facing by promoting physical activity, reducing
obesity and preventing disease.
According to the Surgeon General's ``Call to Action to Prevent
disease Overweight and Obesity,'' published in 2001, there are 300,000
deaths a year in the United States that are associated with overweight
and obesity. Repair physical activity reduces the risk of developing or
dying from some of the leading causes of illness and death in the
United States.
Further, physical activity can: reduce the risk of dying prematurely;
reduce the risk of dying prematurely of heart disease; reduce the risk
of developing diabetes; reduce the risk of developing high blood
pressure; help reduce blood pressure in people who already have high
blood pressure; reduce the risk of developing colon and other types of
cancer; reduce feelings of depression and anxiety; help control weight;
help build and maintain healthy bones, muscles, and joints; help older
adults become stronger and better able to move about without falling;
promote psychological well-being.
Public Health experts unanimously agree that active lifestyles result
in decreased health care costs, reduced governmental spending, fewer
illnesses, and improved worker productivity.
I ask you to join me in supporting this preventive health and fitness
bill.
______
By Mr. CHAMBLISS:
S. 1492. A bill to amend the Employee Retirement Income Security Act
of 1974, the Internal Revenue Code of 1986, and the Labor Management
Relations Act, 1947 to provide special rules for Teamster plans
relating to termination and funding; to the Committee on Health,
Education, Labor, and Pensions.
Mr. CHAMBLISS. Mr. President, I rise today to introduce the Multi-
employer Pension Security Act of 2003. This bill will strengthen and
protect the defined pension benefits of thousands of workers. These
workers have no other choice than to participate in the pension fund
that their employer offers. However, it is not just the employees who
need these plans to be reformed, but many employers realize that to be
fiducially responsible that these reforms need to be made as well.
Nearly 44 million working Americans participate in defined benefit
pension plans. Of that amount, almost ten million people, approximately
25 percent of all those who have defined pensions, participate in
multi-employer plans. Single-employer plans are completely managed
under a different system. Although recent policy debate has focused
primarily on single-employer plans, my reasoning in introducing this
legislation today is to broaden the pension plan debate by dealing with
the myriad of problems facing multi-employer pension plans.
This bill, the ``Multi-employer Pension Security Act,'' will provide
millions of active and retired workers who participate in these plans
with the long-term security of knowing their promised benefits will be
funded and safeguarded. This reform legislation is necessary and long
overdue.
The funding levels in single-employer pension plans have been greatly
affected by stock market losses, a sluggish economy and record-low
interest rates. These events have impacted multi-employer plans also.
However, the issues affecting multi-employer plans are much broader
than that. These plans operate under a fundamentally different
structure. The main difference between single and multi-employer plans
is that there is no minimum funding level required in multi-employer
plans. Losses can mount until simply there is no more money and
benefits cannot be paid to the participants in multi-employer pension
plans. My bill will correct his deficiency in current law.
This proposed legislation would address the lack of adequate funding
standards existing within the multi-employer pension plan system. Also
hardworking employees who participate in these multi-employer pension
funds do not currently have the guarantee of insurance. When a multi-
employer pension plan is defunct or goes bankrupt, there is no Pension
Benefit Guaranty Corporation (PBGC) to rely on--because multi-employer
plans do not fall under the guise of the PBGC structure. My bill will
address that and give the folks participating in a multi-employer plan
the same governmental oversight as provided to participants of single-
employer plans.
[[Page S10269]]
Again, I introduce the Multi-employer Pension Security Act today
because we, as a nation, must tackle these issues now to prevent
further deterioration of these plans and we must be willing to assure
our constituents that their promised pensions are available to them as
retirees currently and in the future. Single-employer plans must not be
the only pension plan that Congress considers changes to because we are
also responsible to the almost ten million Americans participating in
multi-employer pension plans as well. I urge my colleagues to consider
this legislation. We must engage in a discussion that will lead to
positive changes in multi-employer pension plans now.
______
By Mr. CHAMBLISS:
S. 1493. A bill to promote freedom, fairness, and economic
opportunity by repealing the income tax and other taxes, abolishing the
Internal Revenue Service, and enacting a national sales tax to be
administered primarily by the States; to the Committee on Finance.
Mr. CHAMBLISS. Mr. President, I rise today to introduce the Fair Tax
Act of 2003. This bill will promote freedom, fairness, and economic
opportunity by repealing the income tax and other taxes, abolishing the
Internal Revenue Service, and enacting a national sales tax.
The Fair Tax, commonly referred to as a national sales tax, is a
necessary piece of tax reform that, should it pass, upon its inception
would uproot our current unjust progressive tax code and replace it
with a simpler, fairer one.
I believe our antiquated tax code, that was implemented in 1913, and
has since been modified numerous times, is overly complicated and
desperately in need of an overhaul. We are well beyond rectifying the
unfairness in our current system by tinkering around the edges. All
Americans are in dire need of unbiased sweeping tax reform--and the
fair tax is just that.
The Fair Tax Act of 2003 would repeal the individual income tax, the
corporate tax, capital gains taxes, all payroll taxes, the self-
employment tax and the estate and gift taxes in lieu of a 23 percent
tax on the final sale of all goods and services. The eradication of
these taxes will not only bring about equality within our tax system,
it will also bring about simplicity.
This bill will also provide for tax relief for business-to-business
transactions. These transactions, including used product transactions
which have already been taxed, are not subject to the sales tax,
thereby abrogating any double taxation.
Social Security and Medicare benefits would remain untouched under
the Fair Tax bill. There would be no financial reductions to either one
of these vital programs. Instead, the source of the trust fund revenue
for these two programs would be replaced simply by a sales tax revenue
instead of a payroll tax revenue.
And lastly, under this bill, every American would receive a monthly
rebate check equal to spending up to the Federal poverty level
according to the Department of Health and Human Services guidelines.
This rebate would ensure that no American pays taxes on the purchase of
necessities.
The Fair Tax creates a fairer, simpler code that allows every
American the freedom to determine his or her own priorities and
opportunities.
Ronald Reagan once said, ``I believe we really can, however, say that
God did give mankind virtually unlimited gifts to invent, produce and
create. And for that reason alone, it would be wrong for governments to
devise a tax structure or economic system that suppresses and denies
those gifts.''
I couldn't agree more.
And as long as we continue to operate under our current skewed tax
code, we will continue to suppress and deny these unlimited gifts to
the American people who would otherwise thrive boundlessly under the
Fair Tax.
______
By Mr. BUNNING (for himself and Mr. Conrad):
S. 1494. A bill to amend the Internal Revenue Code of 1986 to extend
the special 5-year carryback of certain net operating losses to losses
for 2003, 2004, and 2005; to the Committee on Finance.
Mr. BUNNING. Mr. President, today, Senator Conrad and I are
introducing legislation that would greatly benefit out domestic
economy. Our legislation would increase the cash flow of many
struggling American companies, thus helping them hire and retain
workers and fund capital investments.
The legislation involves the ``net operating loss'' (``NOL'') rules
under the Internal Revenue Code. The NOL carryback and carryover rules
are designed to allow taxpayers to smooth out swings in business income
that result from business cycle fluctuations and unexpected financial
losses.
Last year's economic stimulus bill, the ``Job Creation and Worker
Assistance Act of 2002,'' allowed NOLs arising in 2001 and 2002 to be
carried back five years, rather than two years, as otherwise would be
provided under the tax law. The 2002 Act also removed a limitation that
the corporate alternative minimum tax (``AMT'') unfairly places on
these carrybacks. The 2002 Act thus gave taxpayers in many sectors of
the economy an enhanced ability to increase their cash flow through
refunds of income taxes paid in prior years.
Unfortunately, the same uncertain economic conditions that led to the
enactment of last year's stimulus bill have continued. Many taxpayers
are continuing to incur unexpected financial losses in 2003.
The legislation that we are introducing today would simply extend the
2002 Act's NOL carryback rules to cover NOLs arising in 2003 and to
NOLs that may arise in 2004 and 2005.
I urge my colleagues to support this important legislation, which
would give much needed relief to U.S. employers and would provide an
additional jump start to our economy.
______
By Mr. BUNNING (for himself and Mr. Conrad):
S. 1495. A bill to amend the Internal Revenue Code of 1986 to permit
the consolidation of life insurance companies with other companies; to
the Committee on Finance.
Mr. BUNNING. Mr. President, I rise today to introduce legislation
with my colleague, Senator Conrad, which will allow affiliated life and
non-life insurance companies to file consolidated tax returns. The
rules currently on the books do not allow such consolidation, for
reasons that are outdated and no longer applicable.
In general, consolidated return provisions under current law were
enacted so that the members of an affiliated group of corporations
could file a single tax return. The right to file a ``consolidated''
return is generally available irrespective of the nature or variety of
the businesses conducted by the affiliated corporations. The purpose
behind consolidated returns is simply to tax a complete business entity
rather than its component parts individually. Whether an enterprise's
businesses are operated as divisions within one corporation or as
subsidiary corporations with a common parent company, a business entity
should generally be taxed as a single entity and be allowed to file its
return accordingly.
Corporate groups that include life insurance companies, however, are
denied the ability to file a single consolidated return until they have
been affiliated for a least five years. Even after this five year
period, they are subject to two additional limitations that do not
apply to any other type of group: first, non-life insurance companies
must be members of the affiliated group for five years before their
losses may be used to offset life insurance company income, and second,
non-life insurance affiliated losses, including current year losses and
any carryover losses, that may offset life insurance company taxable
income are limited to the lesser of 35 percent of life insurance
company's taxable income or 35 percent of the non-life insurance
company's losses.
There are no sound reasons to deny affiliated groups that include
life insurance companies the same unrestricted ability to file
consolidated returns that is available to other financial
intermediaries, and corporations in general. Allowing the members of an
affiliated group of corporations to file a consolidated return prevents
the business enterprise's structure from obscuring the fact that the
true gain or loss of the business enterprise is the aggregate of each
of the members of the affiliated group. The limitations contained in
present law are so clearly without policy justification that they
should be repealed.
Our legislation will repeal the two five-year limitations for taxable
years
[[Page S10270]]
beginning after this year, and it will phase out the 35 percent
limitation over seven years. The staff of the Joint Committee on
Taxation has recommended repeal of two of the three limitations
addressed by my bill--on the grounds of needless complexity. The third
limitation is, in effect, merely a minimum tax on life insurance
company income. That limitation should have been repealed when the
alternative minimum tax was enacted, and certainly has no place in the
tax laws today.
We hope our colleagues will join us as cosponsors of this bipartisan,
much-needed legislation.
______
By Mrs. HUTCHISON (for herself, Mr. Kennedy, Mrs. Feinstein, and
Mr. Harkin):
S. 1496. A bill to provide for the expansion and coordination of
activities of the National Institutes of Health and the Centers for
Disease Control and Prevention with respect to research and programs on
cancer survivorship, and for other purposes; to the Committee on
Health, Education, Labor, and Pensions.
Mrs. HUTCHISON. Mr. President, today I would like to pay tribute to a
great Texan and a great American, Lance Armstrong. Last weekend, Lance
sailed to his fifth consecutive victory in the Tour de France. On the
heels of his stunning victory, I am pleased to introduce the Cancer
Survivorship Research and Quality of Life Act of 2003.
To some, Lance's victories might begin to seem routine, winning year
after year after year. But when you dig beneath the surface, past the
hype and drama of the Tour de France, you find that there's nothing
routine about Lance Armstrong.
By now, nearly everyone knows that Lance is a cancer survivor. It has
become common knowledge, not because Lance uses it as an excuse or to
seek sympathy. We know it because Lance has used his megaphone as a
sports hero to raise awareness of cancer research and survivorship. He
has dedicated himself to helping others and turning his personal
devastation into a legacy of hope for those afflicted with cancer. When
he was diagnosed, he was given a 40 percent chance of living. His
survival and amazing comeback have proved that cancer is not a death
sentence.
Sixty-two percent of adults and 77 percent of children diagnosed with
cancer this year will be alive 5 years from now. There are more than 9
million cancer survivors living today. These numbers are improving
because of advances in detection and early diagnosis, effective
treatments, and healthier lifestyles by survivors and those at risk.
We must continue our commitment to research so fewer people will
experience cancer.
The bill I am introducing today expands cancer research by
authorizing the Office of Cancer Survivorship within the National
Cancer Institutes to study the long- and short-term physical
psychological, social and economic effects of cancer. Research has
shown that cancer survivors are often susceptible to other diseases.
Expanding on this research will allow scientists and physicians to
improve patients' quality of life and help prevent other diseases and
disabilities.
Additionally, the bill expands the Centers for Disease Control
programs to improve cancer survivorship. For example, the CDC will
track the status of survivors to identify what health risks they face
and the successful course of treatment they have utilized. Other
programs will demonstrate how to prevent and control cancer, especially
in medically underserved populations.
This legislation has the support of CDC and NCI. It also has the
support of Lance Armstrong.
I have been privileged to meet with Lance on several occasions. He
has never boasted of his athletic feats or touted his ability to master
the world's toughest bicycle race. He speaks with passion of the Lance
Armstrong Foundation and the work it does on behalf of cancer survivors
and their families. When he mounts his bike each summer it is a symbol
of hope for cancer survivors the world over.
This year's Tour de France was no exception. Many predicted Lance's
defeat and he had to overcome illness, fatigue and crashes to reach the
finish line. But he never gave up. The trademark dedication and
perseverance that characterize him as an athlete and a survivor kicked
in once again. He pedaled to victory over the course of 3 weeks, more
than 2,100 miles and 84 hours of cycling, winning with a lead of 1
minute and 1 second.
It was truly a stunning end to a remarkable race.
The record-tying fifth consecutive win places Lance among cycling's
elite. Only four others can claim five-time winner of the Tour de
France among their accolades. Only one other man has won it
consecutively. If Lance wins the yellow jersey next year, it would be a
world record. But whether he breaks the record or not, he is a hero to
all of us.
I ask my colleagues to join me in congratulating Lance Armstrong on a
great victory and signing on as co-sponsors to this important
legislation to help carry his message of survivorship to the Nation.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows;
S. 1496
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Cancer Survivorship Research
and Quality of Life Act of 2003''.
SEC. 2. FINDINGS.
The Congress finds as follows:
(1) There are more than 9,600,000 individuals in the United
States today who are cancer survivors (living with, through,
and beyond cancer).
(2) 61 percent of cancer survivors are 65 years of age and
older.
(3) 62 percent of adults diagnosed with cancer today will
be alive 5 years from now.
(4) In 1960, 4 percent of children with cancer survived
more than 5 years.
(5) 77 percent of children (age 0 through 14) diagnosed
with cancer today will be living five years from now.
(6) Three out of every four American families will have at
least one family member diagnosed with cancer.
(7) 24 percent of adults with cancer are parents who have a
child 18 years or younger living in the home.
(8) One of every four deaths in the United States is from
cancer. In 2002, 556,500 Americans will die of cancer--more
than 1,500 people a day.
(9) The annual cost of cancer in the United States is
$180,000,000,000 in direct and indirect costs.
(10) In fiscal year 2001 the National Institutes of Health
invested $38,000,000 in survivorship--less than $4.25 per
survivor.
SEC. 3. CANCER CONTROL PROGRAMS.
Section 412 of the Public Health Service Act (42 U.S.C.
285a-1) is amended--
(1) in the first sentence, by inserting ``, for
survivorship,'' after ``treatment of cancer'';
(2) in paragraph (1)(B), by striking ``cancer patients''
and all that follows and inserting the following: ``cancer
patients, families of cancer patients, and cancer survivors,
and''; and
(3) in paragraph (3), by inserting ``and concerning cancer
survivorship programs,'' after ``control of cancer''.
SEC. 4. EXPANSION AND COORDINATION OF ACTIVITIES OF NATIONAL
INSTITUTES OF HEALTH WITH RESPECT TO CANCER
SURVIVORSHIP RESEARCH.
(a) In General.--
(1) Technical amendment.--Section 3 of Public Law 107-172
(116 Stat. 541) is amended by striking ``section 419C'' and
inserting ``section 417C''.
(2) New section.--Subpart 1 of part C of title IV of the
Public Health Service Act (42 U.S.C. 285 et seq.), as amended
pursuant to paragraph (1) of this subsection, is amended by
adding at the end the following:
``SEC. 417E. EXPANSION AND COORDINATION OF ACTIVITIES WITH
RESPECT TO CANCER SURVIVORSHIP RESEARCH.
``(a) In General.--
``(1) Expansion of activities.--The Director of NIH shall
expand and coordinate the activities of the National
Institutes of Health with respect to cancer survivorship
research.
``(2) Administration of program; collaboration among
agencies.--The Director of NIH shall carry out this section
acting through the Director of the National Cancer Institute
and in collaboration with any other agencies that the
Director determines appropriate.
``(b) Office on Survivorship.--
``(1) In general.--The Director of NIH shall establish an
Office on Cancer Survivorship within the National Cancer
Institute through which the activities under subsection
(a)(1) shall be implemented and directed.
``(2) Associate director for cancer survivorship;
appointment; function.--There shall be in the National Cancer
Institute an Associate Director for Cancer Survivorship to
coordinate and promote the programs in the Institute
concerning cancer survivorship
[[Page S10271]]
research. The Associate Director shall be appointed by the
Director of the Institute from among individuals who, because
of their professional training or experience, are equipped to
address the breadth of needs associated with cancer
survivorship.''.
(b) Funding.--Section 417B of the Public Health Service Act
(42 U.S.C. 285a-8) is amended by adding at the end the
following:
``(e) Office on Cancer Survivorship.--Of the amounts
appropriated for the National Cancer Institute for a fiscal
year, the Director of the Institute shall reserve an amount
for the Office of Cancer Survivorship under section
417E(b)(1).''.
SEC. 5. EXPANSION OF CDC COMPREHENSIVE CANCER PROGRAMS;
PROGRAMS TO IMPROVE CANCER SURVIVORSHIP.
(a) In General.--The Secretary of Health and Human Services
(referred to in this section as the ``Secretary''), acting
through the Director of the Centers for Disease Control and
Prevention, shall--
(1) expand and update the National Comprehensive Cancer
Control Program;
(2) assist States, territories, tribal organizations, and
the District of Columbia in developing and implementing a
cancer prevention and control program so that each entity
will have an active plan in place and so that States,
territories, tribal organizations, and the District of
Columbia will conduct activities to prevent and control
cancer and so that disparities in specific populations will
be addressed;
(3) establish programs that demonstrate how to prevent and
control cancer and improve access to and the quality of
cancer care among racial and ethnic minority and medically
underserved populations with disproportionate incidence of or
death from cancer;
(4) promote cancer education, prevention, and early
detection of cancer; and
(5) award grants to public and nonprofit organizations for
cancer control and prevention.
(b) Certain Studies and Programs.--
(1) In general.--The Secretary, acting through the Director
of the Centers for Disease Control and Prevention and in
collaboration with the Director of the Office of Cancer
Survivorship within the National Cancer Institute, shall
study the unique health challenges associated with cancer
survivorship and carry out projects and interventions to
improve the long-term health status of cancer survivors. Such
projects shall be carried out directly and through the awards
of grants or contracts.
(2) Certain activities.--Activities under paragraph (1)
include--
(A) the expansion, in collaboration with the Surveillance,
Epidemiology, and End Results Program (SEER) at the National
Cancer Institute and with the Agency for Healthcare Research
and Quality, of current cancer surveillance systems to track
the health status of cancer survivors and determine whether
cancer survivors are at-risk for other chronic and disabling
conditions;
(B) assess the unique public health challenges associated
with cancer survivorship; and
(C) the development and implementation of a national public
health cancer survivorship action plan, in partnership with
health organizations focused on cancer survivorship, to be
carried out in coordination with the State-based
comprehensive cancer control program of the Centers for
Disease Control and Prevention, in collaboration with the
Office of Cancer Survivorship at the National Cancer
Institute, and in consultation with other appropriate
entities, to support and advance cancer survivorship
through--
(i) surveillance and research;
(ii) communication, education, and training;
(iii) program, policies, and infrastructure; and
(iv) access to quality care and services.
(c) Coordination of Activities.--The Secretary shall assure
that activities under this section are coordinated as
appropriate with other agencies of the Public Health Service.
(d) Report to Congress.--Not later than October 1, 2004,
the Secretary shall submit to the Congress a report
describing the results of the evaluation under subsection
(a), and as applicable, the strategies developed under such
subsection.
(e) Authorization of Appropriations.--For the purpose of
carrying out this section, there are authorized to be
appropriated such sums as may be necessary for each of the
fiscal years 2004 through 2008.
SEC. 6. MONITORING AND EVALUATING QUALITY CANCER CARE AND
CANCER SURVIVORSHIP.
(a) In General.--Part M of title III of the Public Health
Service Act (42 U.S.C. 280e et seq.) is amended by inserting
after section 399E the following:
``SEC. 399E-1. MONITORING AND EVALUATING QUALITY CANCER CARE
AND CANCER SURVIVORSHIP.
``(a) In General.--The Secretary shall make grants to
eligible entities for the purpose of enabling such entities
to monitor and evaluate quality cancer care, develop
information concerning quality cancer care, and monitor
cancer survivorship. The Secretary shall carry out this
section jointly through the Director of the Centers for
Disease Control and Prevention and the Director of the
National Cancer Institute.
``(b) Eligible Entities.--For purposes of this section, an
entity is an eligible entity for a fiscal year if the
entity--
``(1) operates a statewide cancer registry with funds from
a grant made under section 399B for such fiscal year;
``(2) is certified by the North American Association of
Central Cancer Registries;
``(3) has personnel scientifically qualified to conduct
population-based epidemiology or analyze health services or
outcomes research; and
``(4) has access to a broad-based clinical research cohort
or an established clinical case base.
``(c) Contracting Authority.--In carrying out the purpose
described in subsection (a), an eligible entity may expend a
grant under such subsection to enter into contracts with
academic institutions, cancer centers, and other entities,
when determined appropriate by the Secretary.
``(d) Application for Grant.--A grant may be made under
subsection (a) only if an application for the grant is
submitted to the Secretary and the application is in such
form, is made in such manner, and contains such agreements,
assurances, and information as the Secretary determines to be
necessary to carry out this section.
``(e) Authority of Secretary Regarding Use of Grant.--The
Secretary shall determine the appropriate uses of grants
under subsection (a) to achieve the purpose described in such
subsection.
``(f) Authorization of Appropriations.--For the purpose of
carrying out this section, there are authorized to be
appropriated such sums as may be necessary for each of the
fiscal years 2004 through 2008.''.
(b) Conforming Amendment Regarding Authorization of
Appropriations.--Section 399F(a) of the Public Health Service
Act (42 U.S.C. 280e-4(a)) is amended in the first sentence by
striking ``this part,'' and inserting ``this part (other than
section 399E-1),''.
Mr. KENNEDY. Mr. President, it is a privilege to join my colleagues
Senator Hutchison, Senator Harkin and Senator Feinstein in introducing
the Cancer Survivorship and Quality of Life Act. It is fitting that we
are introducing this important legislation today. Just three days ago,
as the world knows, Lance Armstrong, the champion cyclist from Texas,
won his 5th consecutive Tour de France. His triumph is an extraordinary
achievement in and of itself, and it is even more extraordinary,
because just 6 years ago, he was diagnosed with a form of cancer--
testicular cancer--that is often curable when detected early, but that
in his case had already spread to his abdomen, his lungs, and brain.
Twenty-five years ago, he probably would not have survived. But with
the treatment and therapy now available and the same fighting spirit
that made him a winner yesterday, he won the battle against cancer and
became a worldwide symbol of courage and achievement.
His success is also a vivid symbol of the rapid progress being made
in the ongoing battle against cancer. Never before have there been such
high rates of survival for what used to be an overwhelmingly deadly
disease. Cancer research has brought new and more sensitive screening
tests and more accurate and less invasive diagnostic procedures.
Greater arrays of treatments are available that can cure cancer
completely or keep it at bay for many years.
As a result of these medical and technological advances, over half of
all adults and over three-quarters of all children diagnosed with
cancer today will be living five years from now and often far longer.
Experts now refer to many forms of cancer as ``chronic diseases''
illnesses that never go away, but can be treated in ways enabling
patients to focus on living instead of preparing for death.
In the United States today, there are almost 10 million cancer
survivors, and 40 percent of them are younger than 65. The financial
cost is large. Direct costs for cancer care and the indirect costs to
the economy are now estimated at $180 billion dollars per year. But
more important than the financial costs are the devastating personal
and emotional costs to the patients, their families and loved ones, and
their caregivers as well. Almost a quarter of adults with cancer are
parents who have a child 18 years old or younger living at home. Nearly
1.3 million people will be diagnosed with cancer this year--3,500
persons each and every day.
The National Cancer Institute and other federal agencies now devote
the majority of their funds to diagnosing and treating cancer, and we
need to continue strong federal support for these purposes. Greater
support is clearly needed to deal with the issues affecting survivors.
Many cancer survivors say that equally important is the ``non-medical''
care that they have received, and that is the purpose of the bill we
are introducing today.
[[Page S10272]]
The Cancer Survivorship Research and Quality of Life Act creates a
Cancer Survivorship Office in the National Institutes of Health and a
Cancer Control Center in the Centers for Disease Control and Prevention
to develop effective ways to improve the quality of life for patients
with cancer and their families. Such efforts include education of
patients about their cancer, their options for treatment, and how and
when to ask for a second opinion. They also include information about
support networks and other services in their community.
Under our bill, the Centers for Disease Control and the National
Cancer Institute will work together to expand their data collection to
include information about survivors and improvements in the care of
individuals newly diagnosed with cancer, such as successful treatments,
rehabilitation, and nutritional and exercise programs. Currently, there
is no effective way for new information to be widely shared. Patients
who are cancer survivors or who have family members or loved ones with
cancer understand the importance of this information. We introduce this
bill with the full support of the Lance Armstrong Foundation, which has
brought the issue of cancer survivorship to our national attention. I
urge the Senate to give our legislation the priority it deserves.
______
By Mr. McCAIN (for himself, Mr. Feingold, and Mr. Durbin):
S. 1497. A bill to amend the Communications Act of 1934 to revise and
expand the lowest unit cost provision applicable to political campaign
broadcasts, to establish commercial broadcasting station minimum
airtime requirements for candidate-centered and issue-centered
programming before primary and general elections, to establish a
voucher system for the purchase of commercial broadcast airtime for
political advertisement, and for other purposes; to the Committee on
Commerce, Science, and Transportation.
Mr. McCAIN. Mr. President, today I am introducing the ``Our
Democracy, Our Airwaves Act.'' This legislation is designed to increase
the flow of political information in broadcast media and to reduce the
cost to candidates of educating the electorate on their candidacy.
Consistent with broadcasters' obligations to serve the public
interest in exchange for being licensed to use the public airwaves, the
bill would require broadcast licensees to air a minimum of two hours
per week of candidate-centered or issue-centered programming before a
primary or general Federal election. This legislation also would
establish a program to provide candidates and national committees of
political parties vouchers that they may use for political
advertisements on radio and television broadcast stations. An annual
spectrum use fee paid by broadcasters would fund the voucher system.
Finally, the bill would require broadcast television and radio stations
to provide candidates and parties with non-preemptible advertising time
at the lowest rate provided to any other advertiser.
At a recent Committee hearing I chaired on the public interest
obligations of broadcasters, it became apparent that local broadcasters
are not adequately covering political campaigns as part of their local
newscasts. The hearing examined the results of a study prepared by the
Lear Center Local News Archive, which found that over a seven-week
period from September 18, 2002 through November 4, 2002, 56 percent of
the top-rated half-hour news broadcasts did not contain a single
political campaign story. In the 44 percent of broadcasts that did
contain campaign coverage, the average campaign story was 89 seconds
long. When campaigned stories did air, only 28 percent contained
stories where candidates spoke with the average sound bit being 12
seconds long.
This study illustrates the pressures on political candidates to raise
money because they are forced to gain the public's attention through
the use of costly advertisements. Our democracy is stronger when a
candidate's success is achieved by ideas, not by dollars, and when an
electorate is informed by facts, not 12-second sound bites. I ask
unanimous consent that the text of the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S.1497
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Our Democracy, Our Airwaves
Act of 2003''.
SEC. 2. MEDIA RATES.
(a) Lowest Unit Charge; National Committees.--Section
315(b) of the Communications Act of 1934 (47 U.S.C. 315(b))
is amended--
(1) by striking ``to such office'' in paragraph (1) and
inserting ``to such office, or by a national committee of a
political party on behalf of such candidate in connection
with such campaign,''; and
(2) by inserting ``for pre-emptible use thereof'' after
``station'' in subparagraph (A) of paragraph (1).
(b) Preemption; Audits.--
(1) In general.--Section 315 of such Act (47 U.S.C. 315) is
amended--
(A) by redesignating subsections (c) and (d) as subsections
(e) and (f), respectively and moving them to follow the
existing subsection (e);
(B) by redesignating the existing subsection (e) as
subsection (c); and
(C) by inserting after subsection (c) the following:
``(d) Preemption.--
``(1) In General.--Except as provided in paragraph (2), and
notwithstanding the requirements of subsection (b)(1)(A), a
licensee shall not preempt the use of a broadcasting station
by an eligible candidate or political committee of a
political party who has purchased and paid for such use.
``(2) Circumstances Beyond Control of Licensee.--If a
program to be broadcast by a broadcasting station is
preempted because of circumstances beyond the control of the
station, any candidate or party advertising spot scheduled to
be broadcast during that program shall be treated in the same
fashion as a comparable commercial advertising spot.
``(e) Audits.--During the 45-day period preceding a primary
election and the 60-day period preceding a general election,
the Commission shall conduct such audits as it deems
necessary to ensure that each broadcaster to which this
section applies is allocating television broadcast
advertising time in accordance with this section and section
312.
(2) Conforming amendment.--Section 504 of the Bipartisan
Campaign Reform Act of 2002 is amended by striking ``315), as
amended by this Act, is amended by redesignating subsections
(e) and (f) as subsections (f) and (g), respectively, and''
and inserting ``315) is amended by''.
(c) Stylistic Amendments.--Section 315 of such Act (47
U.S.C. 315) is amended--
(1) by striking ``For purposes of this section--'' in
subsection (e), as redesignated by subsection (b)(1)(A) of
this section, and inserting ``Definitions.--In this
section:'';
(2) by striking ``the'' in paragraph (1) of that subsection
and inserting ``Broadcasting station.--The'';
(3) by striking ``the'' in paragraph (2) of that subsection
and inserting ``Licensee; station licensee.--The''; and
(4) by inserting ``Regulations.--'' in subsection (f), as
so redesignated, before ``The Commission''.
SEC. 3. MINIMUM TIME REQUIREMENTS FOR CANDIDATE-CENTERED OR
ISSUE-CENTERED BROADCASTS BY BROADCASTING
STATIONS.
(a) In General.--
(1) Program content requirements.--In the administration of
the Communications Act of 1934 (47 U.S.C. 151 et seq.), the
Federal Communications Commission may not determine that a
broadcasting station has met its obligation to operate in the
public interest unless the station demonstrates to the
satisfaction of the Commission that--
(A) it broadcast at least 2 hours per week of candidate-
centered programming or issue-centered programming during
each of the 6 weeks preceding a Federal election, including
at least 4 of the weeks immediately preceding a general
election; and
(B) not less than 1 hour of such programming was broadcast
in each of those weeks during the period beginning at 5:00
p.m. and ending at 11:35 p.m. in the time zone in which the
primary broadcast audience for the station is located.
(2) Nightowl broadcasts not counted.--For purposes of
paragraph (1), any candidate-centered programming or issue-
centered programming broadcast between midnight and 6:00 a.m.
in the time zone in which the primary broadcast audience for
the station is located shall not be taken into account.
(3) Nonpartisan voter registration and get-out-the-vote
broadcasts.--For purposes of paragraph (1), programming that
constitutes nonpartisan activity designed to encourage
individuals to vote or to register to vote, within the
meaning of section 301(9)(B)(ii) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 431(9)(B)(ii)), is deemed to
be issue-centered programming to the extent it does not
exceed--
(A) 30 minutes per week for purposes of paragraph (1)(A);
and
(B) 15 minutes per week for purposes of paragraph (1)(B).
(b) Definitions.--In this section:
(1) Broadcasting station.--The term ``broadcasting
station''--
(A) has the meaning given that term by section 315(e)(1) of
the Communications Act of 1934.
[[Page S10273]]
(2) Candidate-centered Programming.--The term ``candidate-
centered programming''--
(A) includes debates, interviews, candidate statements, and
other program formats that provide for a discussion of issues
by the candidate; but
(B) does not include paid political advertisements.
(3) Federal election.--The term ``Federal election'' has
the meaning given that term in section 315A(g)(2) of the
Communications Act of 1934.
(4) Issue-centered programming.--The term ``issue-centered
programming''--
(A) includes debates, interviews, statements, and other
program formats that provide for a discussion of any ballot
measure which appears on a ballot in a forthcoming election;
but
(B) does not include paid political advertisements.
SEC. 4. POLITICAL ADVERTISEMENTS VOUCHER PROGRAM.
(a) In General.--Title III of the Communications Act of
1934 (47 U.S.C. 301 et seq.) is amended by inserting after
section 315 the following:
``SEC. 315A. POLITICAL ADVERTISEMENT VOUCHER PROGRAM.
``(a) In General.--The Commission shall establish and
administer a voucher program for the purchase of airtime on
broadcast stations for political advertisements in accordance
with the provisions of this section.
``(b) Candidates.--
``(1) Disbursement of vouchers.--Beginning no earlier than
January of each even-numbered year after 2003, the Commission
shall disburse vouchers at least once each month for the
purchase of radio or television broadcast airtime for
political advertisements on broadcasting stations to each
individual certified by the Federal Election Commission under
paragraph (2) as an eligible candidate.
``(2) FEC to certify eligible candidates.--The Commission
may not disburse vouchers under paragraph (1) to an
individual, until the Federal Election Commission has made
the following certifications with respect to that individual:
``(A) Qualification.--The individual is a legally-qualified
candidate in a Federal election.
``(B) Agreement.--The individual has agreed in writing--
``(i) to keep and furnish to the Federal Election
Commission such records, books, and other information as it
may require; and
``(ii) to repay to the Federal Communications Commission an
amount equal to 150 percent of the dollar value of vouchers
received from the Commission if the Federal Election
Commission makes a final determination that the individual
violated any term of the agreement.
``(C) House of Representatives candidates.--For candidates
for election to the House of Representatives, that--
``(i) the individual has received at least $25,000 in
contributions from individuals, not counting any amount in
excess of $250 received from any individual;
``(ii) the individual agrees not knowingly to make
expenditures from the individual's personal funds, or the
personal funds of the individual's immediate family, in
connection with the campaign for election to the House of
Representatives in excess of, in the aggregate, $125,000; and
``(iii) the individual faces opposition by at least 1 other
candidate who has received contributions or made expenditures
of, in the aggregate, at least $25,000 or who has been
certified by the Federal Election Commission under this
paragraph as eligible to receive vouchers under paragraph
(1).
``(D) Senate candidates.--For candidates for election to
the Senate, that--
``(i) the individual has received at least $25,000 in
contributions from individuals, not counting any amount in
excess of $250 received from any individual, multiplied by
the number of Representatives from the State in which the
individual seeks election;
``(ii) the individual agrees not knowingly to make
expenditures from the individual's personal funds, or the
personal funds of the individual's immediate family, in
connection with the campaign for election to the Senate in
excess of, in the aggregate, $500,000; and
``(iii) the individual faces opposition by at least 1 other
candidate who has received contributions or made expenditures
of, in the aggregate, at least $25,000 multiplied by the
number of Representatives from the State in which the
individual seeks election or who has been certified by the
Federal Election Commission under this paragraph as eligible
to receive vouchers under paragraph (1).
``(E) Presidential candidates.--For candidates for
nomination for election, or election, to the Office of
President--
``(i) the term `Federal election' includes a primary
election (as defined in section 9032(7) of the Internal
Revenue Code of 1986 (26 U.S.C. 9032(7))); and
``(ii) in order to be eligible to receive vouchers under
this section, the candidate shall--
``(i) execute the agreement described in subparagraph (B);
and
``(II) certify in writing under penalty of perjury that the
candidate has qualified to receive payments under section
9006 or 9037 of the Internal Revenue Code of 1986.
``(3) Certification process.--In carrying out its duties
under paragraph (2), the Federal Election Commission shall--
``(A) provide the requested certification, if the
individual meets the requirements for certification, within 7
days after it receives the information necessary therefor;
and
``(B) shall comply with the requirements of chapter 35 of
title 44, United States Code, (commonly known as the
Paperwork Reduction Act) and take other appropriate steps to
minimize the paperwork burden on candidates seeking
certification under this subsection.
``(c) Political parties.--
``(1) Disbursement of vouchers.--In January, 2004, and
January of each even-numbered year thereafter, the Commission
shall disburse vouchers for the purchase of radio or
television broadcast airtime for political advertisements on
broadcasting stations to each political party committee
certified by the Federal Election Commission under paragraph
(2) as an eligible committee.
``(2) FEC to certify eligible committees.--The Commission
may not disburse vouchers under paragraph (1) to a political
party committee, until the Federal Election Commission has
made the following certifications with respect to that
committee:
``(A) National party committees.--The committee is the
national committee of a political party or the national
congressional campaign committee of a political party (as
those terms are used in section 323(a)(1) of the Federal
Election Campaign Act of 1971 (2 U.S.C. 441i(a)(1))).
``(B) Minor party committees.--In the case of a political
party committee that is not described in subparagraph (A),
the committee meets the candidate base requirement of
subparagraph (C).
``(C) Candidate base.--The committee has candidates--
``(i) for election to the House of Representatives who have
been certified by the Federal Election Commission under
subsection (b)(2) as eligible candidates in at least 22
districts; or
``(ii) for election to the Senate in at least 5 States who
have been certified by the Federal Election Commission under
subsection (b)(2) as eligible candidates.
``(D) Agreement.--The committee agrees in writing--
``(i) to keep and furnish to the Federal Election
Commission such records, books, and other information as it
may require; and
``(ii) to repay to the Federal Communications Commission an
amount equal to 150 percent of the dollar value of vouchers
received from the Commission if the Federal Election
Commission makes a final determination that the committee
violated any term of the agreement.
``(d) Amounts.--
``(1) Calendar year 2004 aggregates.--For calendar year
2004, the Commission shall disburse vouchers in the aggregate
amount of not more than $750,000,000, of which--
``(A) not more than $650,000,000 shall be available for
disbursement to candidates under subsection (b); and
``(B) not more than $100,000,000 shall be available for
disbursement to political parties under subsection (c).
``(2) Per-candidate amount.--
``(A) In general.--Except as provided in subparagraphs (B)
and (C), the Commission shall disburse vouchers to an
individual candidate under subsection (b)(1) with respect to
a Federal election equal, in the aggregate, to $3 multiplied
by the contributions received by that individual with respect
to that election, not counting any amount in excess of $250
received from any individual.
``(B) Maximum.--Except as provided in subparagraph (C), the
Commission may not disburse vouchers to an individual
candidate under subsection (b)(1) with respect to a Federal
election of more than--
``(i) $375,000, for a candidate for election to the House
of Representatives; or
``(ii) $375,000 multiplied by the number of Representatives
from the State from which the individual seeks election, for
a candidate for election to the Senate.
``(C) Special rule for presidential candidates.--The
Commission shall disburse vouchers to a candidate for
nomination for election, or election, to the Office of
President who receives payments under section 9037 or 9006 of
the Internal Revenue Code of 1986 (26 U.S.C. 9037 or 9006),
respectively, equal to--
``(i) $1 for each dollar received under section 9037 of
such Code; and
``(ii) 50 cents for each dollar received under section 9006
of such Code.
``(3) Per-committee amount.--
``(A) In general.--The $100,000,000 available to be
disbursed to political parties shall disbursed as follows:
``(i) The Commission shall reserve a percentage, determined
by the Commission on the basis of the Commission's good faith
estimate of demand by minor party committees, of the amount
available for disbursement as provided in subparagraph (B) to
political party committees described in subsection (c)(2)(B)
that have been or will be certified by the Federal Election
Commission as eligible political party committees.
``(ii) The Commission shall disburse the remainder of the
amount available for disbursement in equal amounts among
political party committees described in subsection (c)(2)(A)
that have been or will be certified by the Federal Election
Commission as eligible political party committees.
``(B) Minor party committee amount.--From the amount
reserved under subparagraph (A)(i), the Commission shall
disburse to political party committees described in
subsection (c)(2)(B) certified by the Federal Election
Commission as eligible political party committees--
[[Page S10274]]
``(i) the same amount as the Commission disburses to each
political party committee under subparagraph (A)(ii) if the
political party with which the political committee is
affiliated has--
``(I) candidates for election to the House of
Representatives certified by the Federal Election Commission
under subsection (b)(2) as eligible candidates in 218 or more
districts; or
``(II) candidates for election to the Senate certified by
the Federal Election Commission under subsection (b)(2) as
eligible candidates in 17 or more of the States in which
elections for United States Senator are being held; and
``(ii) a percentage of such amount, determined under
subparagraph (C), if the political party with which the
political committee is affiliated does not qualify for the
full amount under clause (i).
``(C) Proportionate amount determination.--The amount the
Commission shall disburse to a political party committee
described in subparagraph (B)(ii) is a percentage of the
amount disbursed to a political party committee under
subparagraph (A)(2) equal to the greater of the following
percentages:
``(i) A percentage--
``(I) the numerator of which is the number of districts in
which the party has candidates for election to the House of
Representatives certified by the Federal Election Commission
under subsection (b)(2) as eligible candidates; and
``(II) the denominator of which is 435.
``(ii) A percentage--
``(I) the numerator of which is the number of States in
which the party has candidates for election to the Senate
certified by the Federal Election Commission under subsection
(b)(2) as eligible candidates; and
``(II) the denominator of which is 33 (or 34 in any year in
which there are 34 Senators for election).
``(e) Inflation Adjustment.--Each dollar amount in this
section shall be adjusted for even-numbered years after 2003
in the same manner as the limitations in section 315(b) and
(d) of the Federal Election Campaign Act of 1971 (2 U.S.C.
441a(b) and (d)) are adjusted under section 315(c) of that
Act (2 U.S.C. 441a(c)), except that, for the purpose of
applying section 315(c)--
``(1) `(commencing in 2005)' shall be substituted for
`(commencing in 1976)' in paragraph (1) of that section; and
``(2) `2003' shall be substituted for `1974' in paragraph
(2)(B) of that section.
``(f) Use.--
``(1) Exclusive use.--Vouchers disbursed by the Commission
under this section may be used exclusively for the purpose
described in subsection (b) by the candidate or political
party committee to which the vouchers were disbursed, except
that--
``(A) a candidate may exchange vouchers with a political
party under paragraph (2); and
``(B) a political party may use vouchers to purchase
broadcast airtime for political advertisements for its
candidates in a general election for any Federal, State, or
local office if it discloses the value of the voucher used as
an expenditure under section 315(d) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 441(d)).
``(2) Exchange with political party committee.--
``(A) In general.--A individual who receives a voucher
under this section may transfer the right to use all or a
portion of the value of the voucher to a committee, described
in subsection (c)(2)(A), of the political party of which the
individual is a candidate in exchange for money in an amount
equal to the cash value of the voucher or portion exchanged.
``(B) Continuation of candidate obligations.--The transfer
of a voucher, in whole or in part, to a political party
committee under this paragraph does not release the candidate
from any obligation under the agreement made under subsection
(b)(2) or otherwise modify that agreement or its application
to that candidate.
``(C) Party committee obligations.--Any political party
committee to which a voucher or portion thereof is
transferred under subparagraph (A)--
``(i) shall account fully, in accordance with such
requirements as the Commission may establish, for the receipt
of the voucher; and
``(ii) may not use the transferred voucher or portion
thereof for any purpose other than a purpose described in
paragraph (1)(B).
``(D) Voucher as a contribution under feca.--If a candidate
transfers a voucher or any portion thereof to a political
party committee under subparagraph (A)--
``(i) the value of the voucher or portion thereof
transferred shall be treated as a contribution from the
candidate to the committee, and from the committee to the
candidate, for purposes of sections 302 and 304 of the
Federal Election Campaign Act of 1971 (2 U.S.C. 432 and 434);
``(ii) the committee may, in exchange, provide to the
candidate only funds subject to the prohibitions,
limitations, and reporting requirements of the Federal
Election Campaign Act of 1971 (2 U.S.C. 431 et seq.); and
``(iii) the amount, if identified as a `voucher exchange'
shall not be considered a contribution for the purposes of
section 315 of that Act (2 U.S.C. 441a).
``(g) Value; Acceptance; Redemption.--
``(1) Voucher.--Each voucher disbursed by the Commission
under this section shall have a value in dollars, redeemable
upon presentation to the Commission, together with such
documentation and other information as the Commission may
require, for the purchase of broadcast airtime for political
advertisements in accordance with this section.
``(2) Acceptance.--A broadcasting station shall accept
vouchers in payment for the purchase of broadcast airtime for
political advertisements in accordance with this section.
``(3) Redemption.--The Commission shall redeem vouchers
accepted by broadcasting stations under paragraph (2) upon
presentation, subject to such documentation, verification,
accounting, and application requirements as the Commission
may impose to ensure the accuracy and integrity of the
voucher redemption system. The Commission shall use amounts
in the Political Advertising Voucher Account established
under subsection (h) to redeem vouchers presented under this
subsection.
``(4) Expiration.--
``(A) Candidates.--A voucher may only be used to pay for
broadcast airtime for political advertisements to be
broadcast before midnight on the day before the date of the
Federal election in connection with which it was issued and
shall be null and void for any other use or purpose.
``(B) Exception for political party committees.--A voucher
held by a political party committee may be used to pay for
broadcast airtime for political advertisements to be
broadcast before midnight on December 31st of the odd-
numbered year following the year in which the voucher was
issued by the Commission.
``(5) Voucher as expenditure under feca.--
``(A) Congressional campaigns.--Except as provided in
subparagraph (B), for purposes of the Federal Election
Campaign Act of 1971 (2 U.S.C. 431 et seq.), the use of a
voucher to purchase broadcast airtime constitutes an
expenditure as defined in section 301(9)(A) of that Act (2
U.S.C. 431(9)(A)).
``(B) Presidential campaigns.--Notwithstanding any
provision of the Federal Election Campaign Act of 1971 or
chapter 95 or 96 of the Internal Revenue Code of 1986 to the
contrary, the use of a voucher by a candidate for nomination
for election, or election, to the Office of President does
not constitute an expenditure for purposes of that Act or
chapter.
``(h) Political Advertising Voucher Account.--
``(1) In general.--The Commission shall establish an
account to be known as the Political Advertising Voucher
Account, which shall be credited with commercial television
and radio spectrum use fees assessed under this subsection,
together with any amounts repaid or otherwise reimbursed
under this section.
``(2) Spectrum use fee.--
``(A) In general.--The Commission shall assess, and collect
annually, a spectrum use fee based on a percentage of a
broadcasting station's gross revenues in an amount necessary
to carry out the provisions of this section.
``(B) Limitations.--The percentage under subparagraph (A)
may not be--
``(i) greater than 1 percent; nor
``(ii) less than .05 percent.
``(C) Availability.--Any amount assessed and collected
under this paragraph shall be retained by the Commission as
an offsetting collection for the purposes of making
disbursements under this section, except that--
``(i) the salaries and expenses account of the Commission
shall be credited with such sums as are necessary from those
amounts for the costs of developing and implementing the
program established by this section; and
``(ii) the Commission may reimburse the Federal Election
Commission for any expenses incurred by the Commission under
this section.
``(D) Fee does not apply to public broadcasting stations.--
Subparagraph (A) does not apply to a public
telecommunications entity (as defined in section 397(12) of
this Act).
``(3) Administrative provisions.--Except as otherwise
provided in this subsection, section 9 of this Act applies to
the assessment and collection of fees under this subsection
to the same extent as if those fees were regulatory fees
imposed under section 9.
``(i) Definitions.--In this section:
``(1) Broadcasting station.--The term `broadcasting
station' has the meaning given that term by section 315(e)(1)
of this Act.
``(2) Federal election.--The term `Federal election' means
any regularly-scheduled, primary, runoff, or special election
held to nominate or elect a candidate to Federal office.
``(3) Federal office.--The term `Federal office' has the
meaning given that term by section 301(3) of the Federal
Election Campaign Act of 1971 (2 U.S.C. 431(3)).
``(4) Legally-qualified candidate.--The term `legally-
qualified candidate' means a legally qualified candidate
within the meaning of section 315 of this Act.
``(5) Political party.--The term `political party' means a
major party or a minor party as defined in section 9002(3) or
(4) of the Internal Revenue Code of 1986 (26 U.S.C. 9002(3)
or (4)).
``(6) Other terms.--Except as otherwise provided in this
section, any term used in this section that is defined in
section 301 of the Federal Election Campaign of 1971 (2
U.S.C. 431) has the meaning given that term by section 301 of
that Act.
[[Page S10275]]
``(j) Regulations.--The Commission shall prescribe such
regulations as may be necessary to carry out the provisions
of this section. In developing the regulations, the
Commission shall consult with the Federal Elections
Commission.''.
(b) Delayed Effective Date for Presidential Candidates.--
The provisions of subsections (b)(2)(E) and (d)(2)(C) of
section 315A of the Communications Act of 1934, as added by
subsection (a), shall take effect on January 1, 2008.
SEC. 5. FCC TO PRESCRIBE STANDARDIZED FORM FOR REPORTING
CANDIDATE CAMPAIGN ADS.
(a) In General.--Within 90 days after the date of enactment
of this Act, the Federal Communications Commission shall
initiate a rulemaking proceeding to establish a standardized
form to be used by broadcasting stations (as defined in
section 315(e)(1) of the Communications Act of 1934; 47
U.S.C. 315(e)(1)) to record and report the purchase of
advertising time by or on behalf of a candidate for
nomination for election, or for election, to Federal elective
office.
(b) Contents.--The form prescribed by the Commission shall
require, broadcasting stations to report, at a minimum--
(1) the station call letters and mailing address;
(2) the name and telephone number of the station's sales
manager (or individual with responsibility for advertising
sales);
(3) the name of the candidate who purchased the advertising
time, or on whose behalf the advertising time was purchased,
and the Federal elective office for which he or she is a
candidate;
(4) the name, mailing address, and telephone number of the
person responsible for purchasing broadcast political
advertising for the candidate;
(5) notation as to whether the purchase agreement for which
the information is being reported is a draft or final
version; and
(6) the following information about the advertisement:
(A) The date and time of the broadcast.
(B) The program in which the advertisement was broadcast.
(C) The length of the broadcast airtime.
(c) Internet Access.--In its rulemaking, the Commission
shall require any broadcasting station reporting under this
section that maintains an Internet website to make available
a link to reports under this section on that website.
Mr. FEINGOLD. Mr. President, I am pleased to once again join with the
Senator from Arizona, Senator McCain, in introducing legislation that
we believe will significantly improve media coverage of elections and
reduce the negative impact that skyrocketing TV advertising costs have
on Federal campaigns. And I am very glad that the Senator from
Illinois, Senator Durbin, has again joined us as an original cosponsor
of this bill.
Although broadcast advertising is one of the most effective forms of
communication in our democracy, it also diminishes the quality of our
electoral process in two ways. First, broadcasters often fail to
provide adequate coverage to the issues in elections, focusing instead
on the horse race, if they cover elections at all. Second, the
extraordinarily high cost of advertising time fuels the insatiable need
for candidates to spend more and more time fundraising instead of
talking with voters. These two problems interact to undermine the great
promise that television has for promoting democratic discourse in our
country.
It need not be this way. The public owns the airwaves and licenses
them to broadcasters. Broadcasters pay nothing for their use of this
scarce and very valuable public resource. Their only ``payment'' is a
promise to serve the public interest, a promise that often goes
unfulfilled. A study by the Committee for the Study of the American
Electorate found that only 18 percent of gubernatorial, senatorial and
congressional debates held in 2000 were televised by network TV and an
additional 18 percent were covered by PBS or small independent TV
stations. More than 63 percent were not televised at all. This is
shocking in a democracy that depends on information and open debate.
The bill we introduce today addresses these problems by requiring
broadcast stations to devote a reasonable amount of air time to
election programming. It would also direct the FCC to create a voucher
system in which candidates and parties would receive vouchers they
could use for paid radio or TV advertising time, financed by a
broadcast spectrum usage fee. Candidates would qualify for vouchers
based on a ratio matched to the amount of small dollar donations they
raise.
Our proposal would allow candidates to leverage their grassroots
fundraising and would provide greater campaign resources to candidates
without requiring them to become more beholden to special interests.
The proposal would also make air time available to political parties,
which could be directed to underfunded candidates and challengers who
have a harder and harder time getting their message out under the
current system as the costs of advertising continue to rise.
Senator McCain and I remain devoted to improving the way our
electoral process functions and reducing the impact of big money on our
democracy. This bill will advance that cause in a very significant and
necessary way. I look forward to working with my colleagues to fine
tune this bill and enact it into law. Together we can make campaigns
less expensive, and more informative, using the public airwaves as a
tool to improve our democracy.
______
By Mr. BINGAMAN (for himself, Mr. Cochran, Ms. Landrieu, and Mr.
Kerry):
S. 1498. A bill to provide for the establishment of a Health
Workforce Advisory Commission to review Federal health workforce
policies and make recommendations on improving those policies; to the
Committee on Health, Education, Labor, and Pensions.
Mr. BINGAMAN. Mr. President, the legislation I am introducing today
with Senators Cochran, Landrieu, and Kerry entitled ``The Health
Workforce Advisory Commission Act of 2003'' is designed to create a
Health Workforce Advisory Commission to review Federal health workforce
policies and make recommendations on improving those policies.
In my own State of New Mexico, over 9 percent of our total workforce
is employed in the health sector. The New Mexico work force is not
dissimilar to the rest of the Nation, where the total health workforce
comprises 10.5 percent of the total U.S. labor force.
By 2020, the total population of New Mexico is projected to grow 32
percent and the population over 65 is projected to grow 80 percent,
compared to national growth projections of 18 percent and 53 percent,
respectively. But who will care for these burgeoning populations? New
Mexico ranks 33rd among States in physicians per capita, and we
graduate fewer new physicians per 1,000,000 population than the entire
United States.
The problem is not simply one of too few physicians however. New
Mexico ranks 7th lowest among the States in per capita employment of
Licensed Practical/Vocational Nurses and we have 7 nurse anesthetists
per 100,000 population, while the national average is close to 9 per
100,000 population. New Mexico ranks 49th in the Nation in then number
of dentists per capita. In fact, while the State's population grew in
the 1990s by 12 percent, the number of dentists in New Mexico declined
7 percent in the same time period. Among the 50 States, New Mexico
ranks 42nd in the number of pharmacists per 100,000 population.
We are reflection of a crisis occurring in States across the Nation:
a critical shortage in multiple areas of the health workforce in the
face of a changing population whose health care needs are only going to
grow and increase in complexity.
It is estimated that by 2050 the U.S. will need to more than triple
its number of long-term care workers; enrollment in nursing education
programs has been declining of the last 8 years; vacancy rates for
pharmacists in Federal facilities is up to 18 percent and 11 percent in
public hospitals. At the same time, the number of practitioners other
than physician grew rapidly in the 1990s. How does this growth interact
with the simultaneous shortages in other areas? How should the
workforce of the future best be structured to meet the rise in baby
boomers and how should we prepare for this?
These are the issues that health workforce policies attempt to
address. There has been, and continues to be, a significant investment
on the part of Federal and State governments in measuring, monitoring,
and analyzing the numbers and types of health professionals who are
trained and practice in the U.S. but despite such efforts, there remain
significant problems in determining the appropriate number, type, and
distribution of such personnel needed to provide access to appropriate
care for Americans. The underlying problem is that health workforce
policies developed by various State and
[[Page S10276]]
Federal entities tend to be profession or position specific. What is
lacking is a perspective on health workforce policies that is both
interactive and global in nature. As health care becomes increasingly
complex, and as the health needs of the Nation changes, it is
imperative to have a means with which the dynamics of a changing health
care market and health care workforce can be assessed and addressed.
We are all aware of the critical nursing shortages so many areas face
now, the increasing difficulty in recruiting and retaining rural based
physicians, the shortages of pharmacists and pharmacy techs, and of
skilled laboratory technicians. And there are organizations focused on
each of these specific issues; but these issues overlap in the
marketplace and impact each other in ways we cannot currently define.
It is as if there were a giant health care workforce machine with 500
interacting mechanisms and while there is a specific mechanic for each
of these components, there is no mechanic looking at the machine as a
whole. The health workforce is more than the sum of its individual
parts, and in order to enact effective Federal workforce policies, this
must be reflected in the analysis and creation of such policies. HWAC
is designed to do that.
For these reasons, we have introduced legislation that will create a
new health workforce commission, or HWAC for short. This legislation
requires the creation of a national advisory commission to review and
make recommendations pertaining to Federal health workforce policies.
Specifically, it will: Review federal health workforce policy under the
following Acts and their titles: Social Security Act, titles 18 & 19;
Public Health Service Act Titles 7 & 8, NIH, DOD, and VA and other
pertinent Acts and titles; Analyze and make recommendations to improve
the methods used to measure and monitor the U.S. health workforce and
the relationship between numbers and mix of such personnel and access
to appropriate health care; Review health workforce policies and other
factors and their impact on the ability of the health care system to
provide optimal medical and health care services; Analyze and make
recommendations pertaining to federal incentives, financial,
regulatory, and otherwise, and federal programs currently in place to
promote the education of an appropriate number and mix of health
professionals to provide access to appropriate health care for U.S.
citizens; Analyze and make recommendations about the appropriate supply
and distribution of physicians, nurses, and other health professionals
and personnel to achieve a health care system that is safe, effective,
patient centered, timely, equitable, and efficient; Analysis of the
role(s) and global implications of internationally trained physicians,
nurses, and other health professionals and personnel in the U.S.
workforce; Analyze and make recommendations about achieving the
appropriate diversity of the U.S. health workforce.
The Commission will be represented by national experts in health
workforce issues, the commissioned corps of the Public Health Service,
a wide spectrum of health professionals and personnel, and be
geographically balanced in its representation. The Commission will work
closely with other state and Federal advisory panels that deal with
professional or work specific issues of health workforce policy.
Membership in the Commission will be chosen by the Comptroller General,
with representation from a diverse group of fields in health care,
including members who are recognized for their policy expertise in
health workforce measurement, monitoring, and analysis, health
services, economic and other workforce related research and technology
assessments. At least 25 percent of the members are to be health care
providers from rural areas, in order to ensure a geographic balance in
representation. Through the creation of HWAC, a nodal focus of
information gathering, sharing, analysis, and implementation of the
knowledge created about the dynamics of the U.S. health workforce will
be put into place.
This legislation was created with significant input and assistance
from a variety of national organizations representing a cross section
of the spectrum of the U.S. health workforce. Organizations that have
expressed support for this bill include: American College of
Physicians--American Society of Internal Medicine, the American
Clinical Laboratory Association, the National Organization of Nurse
Practitioner Faculties, the American Society of Health-System
Pharmacists, the American Chiropractic Association, the National Rural
Health Association, the Commissioned Officers Association of the USPHS,
and the Therapeutic Communities of America.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1498
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Health Workforce Advisory
Commission Act of 2003''.
SEC. 2. HEALTH WORKFORCE ADVISORY COMMISSION.
(a) Establishment.--The Comptroller General shall establish
a commission to be known as the Health Workforce Advisory
Commission (referred to in this Act as the ``Commission'').
(b) Membership.--
(1) In general.--The Commission shall be composed of 18
members to be appointed by the Comptroller General not later
than 90 days after the date of enactment of this Act.
(2) Qualifications.--In appointing members to the
Commission under paragraph (1), the Comptroller General shall
ensure that--
(A) the Commission includes individuals with national
recognition for their expertise in health care workforce
issues, including workforce forecasting, undergraduate and
graduate training, economics, health care and health care
systems financing, public health policy, and other fields;
(B) the members are geographically representative of the
United States and maintain a balance between urban and rural
representatives;
(C) the members includes a representative from the
commissioned corps of the Public Health Service;
(D) the members represent the spectrum of professions in
the current and future healthcare workforce, including
physicians, nurses, and other health professionals and
personnel, and are skilled in the conduct and interpretation
of health workforce measurement, monitoring and analysis,
health services, economic, and other workforce related
research and technology assessment;
(E) at least 25 percent of the members who are health care
providers are from rural areas; and
(F) a majority of the members are individuals who are not
currently primarily involved in the provision or management
of health professions education and training programs.
(3) Terms and vacancies.--
(A) Terms.--The term of service of the members of the
Commission shall be for 3 years except that the Comptroller
General shall designate staggered terms for members initially
appointed under paragraph (1).
(B) Vacancies.--Any member who is appointed to fill a
vacancy on the Commission that occurs before the expiration
of the term for which the member's predecessor was appointed
shall be appointed only for the remainder of that term.
(4) Chairperson.--
(A) Designation.--The Comptroller General shall designate a
member of the Commission, at the time of the appointment of
such member--
(i) to serve as the Chairperson of the Commission; and
(ii) to serve as the Vice Chairperson of the Commission.
(B) Term.--A member shall serve as the Chairperson or Vice
Chairperson of the Commission under subparagraph (A) for the
term of such member.
(C) Vacancy.--In the case of a vacancy in the
Chairpersonship or Vice Chairpersonship, the Comptroller
General shall designate another member to serve for the
remainder of the vacant member's term.
(c) Duties.--The Commission shall--
(1) review the health workforce policies implemented--
(A) under titles XVIII and XIX of the Social Security Act
(42 U.S.C. 1395, 1396 et seq.);
(B) under titles VII and VIII of the Public Health Service
Act (42 U.S.C. 292, 296 et seq.);
(C) by the National Institutes of Health;
(D) by the Department of Health and Human Services;
(E) by the Department of Veterans Affairs; and
(F) by other departments and agencies as appropriate;
(2) analyze and make recommendations to improve the methods
used to measure and monitor the health workforce and the
relationship between the number and make up of such personnel
and the access of individuals to appropriate health care;
(3) review the impact of health workforce policies and
other factors on the ability of the health care system to
provide optimal medical and health care services;
(4) analyze and make recommendations pertaining to Federal
incentives (financial, regulatory, and otherwise) and Federal
programs that are in place to promote the education of an
appropriate number and mix of
[[Page S10277]]
health professionals to provide access to appropriate health
care in the United States;
(5) analyze and make recommendations about the appropriate
supply and distribution of physicians, nurses, and other
health professionals and personnel to achieve a health care
system that is safe, effective, patient centered, timely
equitable, and efficient;
(6) analyze the role and global implications of
internationally trained physicians, nurses, and other health
professionals and personnel in the United States health
workforce;
(7) analyze and make recommendations about achieving
appropriate diversity in the United States health workforce;
(8) conduct public meetings to discuss health workforce
policy issues and help formulate recommendations for Congress
and the Secretary of Health and Human Services;
(9) in the course of meetings conducted under paragraph
(8), consider the results of staff research, presentations by
policy experts, and comments from interested parties;
(10) make recommendations to Congress concerning health
workforce policy issues;
(11) not later than April 15, 2004, and each April 15
thereafter, submit a report to Congress containing the
results of the reviews conducted under this subsection and
the recommendations developed under this subsection;
(12) periodically, as determined appropriate by the
Commission, submit reports to Congress concerning specific
issues that the Commission determines are of high importance;
and
(13) carry out any other activities determined appropriate
by the Secretary of Health and Human Services.
(d) Ongoing Duties Concerning Reports and Reviews.--
(1) Commenting on reports.--
(A) Submission to commission.--The Secretary of Health and
Human Services shall transmit to the Commission a copy of
each report that is submitted by the Secretary to Congress if
such report is required by law and relates to health
workforce policy.
(B) Review.--The Commission shall review a report
transmitted under subparagraph (A) and, not later than 6
months after the date on which the report is transmitted,
submit to the appropriate committees of Congress written
comments concerning such report. Such comments may include
such recommendations as the Commission determines
appropriate.
(2) Agenda and additional reviews.--
(A) In general.--The Commission shall consult periodically
with the chairman and ranking members of the appropriate
committees of Congress concerning the agenda and progress of
the Commission.
(B) Additional reviews.--The Commission may from time to
time conduct additional reviews and submit additional reports
to the appropriate committees of Congress on topics relating
to Federal health workforce-related programs and as may be
requested by the chairman and ranking members of such
committees.
(3) Availability of reports.--The Commission shall transmit
to the Secretary of Health and Human Services a copy of each
report submitted by the Commission under this section and
shall make such reports available to the public.
(e) Powers of the Commission.--
(1) General powers.--Subject to such review as the
Comptroller General determines to be necessary to ensure the
efficient administration of the Commission, the Commission
may--
(A) employ and fix the compensation of the Executive
Director and such other personnel as may be necessary to
carry out its duties;
(B) seek such assistance and support as may be required in
the performance of its duties from appropriate Federal
departments and agencies;
(C) enter into contracts or make other arrangements as may
be necessary for the conduct of the work of the Commission.
(D) make advance, progress, and other payments that relate
to the work of the Commission;
(E) provide transportation and subsistence for personnel
who are serving without compensation; and
(F) prescribe such rules and regulations at the Commission
determined necessary with respect to the internal
organization and operation of the Commission.
(2) Information.--To carry out its duties under this
section, the Commission--
(A) shall have unrestricted access to all deliberations,
records, and nonproprietary data maintained by the General
Accounting Office;
(B) may secure directly from any department or agency of
the United States information necessary to enable the
Commission to carry out its duties under this section, on a
schedule that is agreed upon between the Chairperson and the
head of the department or agency involved;
(C) shall utilize existing information (published and
unpublished) collected and assessed either by the staff of
the Commission or under other arrangements;
(D) may conduct, or award grants or contracts for the
conduct of, original research and experimentation where
information available under subparagraphs (A) and (B) is
inadequate;
(E) may adopt procedures to permit any interested party to
submit information to be used by the Commission in making
reports and recommendations under this section; and
(F) may carry out other activities determined appropriate
by the Commission.
(f) Administrative Provisions.--
(1) Compensation.--While serving on the business of the
Commission a member of the Commission shall be entitled to
compensation at the per diem equivalent of the rate provided
for under level IV of the Executive Schedule under title 5,
United States Code.
(2) Meetings.--The Commission shall meet at the call of the
Chairperson.
(3) Executive director and staff.--The Comptroller General
shall appoint an individual to serve as the interim Executive
Director of the Commission until the members of the
Commission are able to select a permanent Executive Director
under subsection (e)(1)(A).
(4) Ethical disclosure.--The Comptroller General shall
establish a system for public disclosure by members of the
Commission of financial and other potential conflicts of
interest relating to such members.
(5) Audits.--The Commission shall be subject to periodic
audit by the Comptroller General.
(g) Funding.--
(1) Requests.--The Commission shall submit requests for
appropriations in the same manner as the Comptroller General
submits such requests. Amounts appropriated for the
Commission shall be separate from amounts appropriated for
the Comptroller General.
(2) Authorization of appropriations.--There are authorized
to be appropriated to carry out this section, $6,000,000 for
fiscal year 2004, and such sums as may be necessary for each
subsequent fiscal year, of which--
(A) 80 percent of such appropriated amount shall be made
available from the Federal Hospital Insurance Trust Fund
under section 1817 of the Social Security Act (42 U.S.C.
1395i); and
(B) 20 percent of such appropriation shall be made
available for amounts appropriated to carry out title XIX of
such Act (42 U.S.C. 1396 et seq.).
(h) Definition.--In this Act, the term ``appropriate
committees of Congress'' means the Committee on Finance of
the Senate and the Committee on Ways and Means of the House
of Representatives.
______
By Mr. LEAHY:
S. 1499. A bill to adjust the boundaries of Green Mountain National
Forest; to the Committee on Agriculture, Nutrition, and Forestry.
Mr. LEAHY. Mr. President, today I am introducing a bill to expand the
boundaries of the Green Mountain National Forest. This will allow for
the inclusion of lands that have already been purchased using Land and
Water Conservation Fund dollars to be brought into the boundaries of
the national forest providing them full statutory protection. The
Forest Service supports this administrative action and has been
extremely helpful in providing the information needed for this
legislation.
It is with pride that I can say that since I came to Congress in 1975
and began to seek funding for land acquisition in 1977 we Vermonters
have seen the Green Mountain National Forest expand from approximately
264,100 acres to over 387,500 acres in size. This 123,400 acre
expansion will provide unmeasured opportunities for the American
public.
While there is much debate over the future management of our Nation's
national forests today, this should not diminish their importance. In
Vermont, where approximately five percent of land base is in federal
ownership, these lands are treasured for the opportunities they provide
not only to Vermonters, but to all who enjoy the Green Mountain
National Forest. This includes recreational activities from camping,
hiking, mountain biking, and skiiing to job opportunities provided
through timber management activities, the ski industry, and other
support services, as well as for their intrinsic value by providing
that certain lands are set aside for in their natural state through
wilderness protection and other special designations.
I am concerned that some will argue that we need to reduce our land
acquisition dollars and to better manage what we already have. I do not
dispute the need for better management, but I wholeheartedly disagree
with reducing our land acquisition efforts. At one time this Nation
believed that our boundaries were limitless. Today we realize that land
is a finite resource and as more is acquired for development less will
available for the American public to acquire for Federal ownership.
There will come a time when the only land one can freely access,
thereby avoiding the ``No Trespassing'' signs, will be our Federal,
State, and county lands. Visionaries see what tomorrow will bring and
prepare for that today--those who are still building upon our public
land base have that vision.
At the turn of the century, the 20th century that is, there existed
that vision, between then Chief of the Forest
[[Page S10278]]
Service Gifford Pinchot and President Theodore Roosevelt who together
expanded the boundaries of the national forests immensely. We continue
to need that vision, as seen by the efforts by those on the Green
Mountain National Forest, in continuing to fund land acquisition into
the future.
This need, for providing the American public with unfettered access
to open lands, is of significant importance to those who live east of
the Mississippi; where more than 50 percent of the American public are
within three hours of their national forests, but only have access to
approximately one-quarter of the national forest land. I hope that my
colleagues will join me in supporting this bill and continue to carry
that vision on the future to build upon our national forest system as
we start the 21st century.
______
By Mr. McCAIN (by request):
S. 1501. A bill to amend title 49, United States code, to provide for
stable, productive, and efficient passenger rail service in the United
States, and for other purposes; to the Committee on Commerce, Science,
and Transportation.
Mr. McCAIN. Mr. President, today, by request, I am introducing the
Passenger Rail Investment Reform Act, the Administration's long-awaited
legislative proposal for restructuring Amtrak and the intercity
passenger rail program. In doing so, I want to express my appreciation
to Transportation Secretary Mineta and departing Deputy Secretary
Michael Jackson for meeting their commitment to me in April to deliver
the Administration's proposal before the August recess. I also want to
credit the work of the Amtrak Reform Council, the basis for several
elements of the Administration's plan.
Amtrak began operation in 1971 as a for-profit corporation and was to
be free of all Federal support by 1973. Throughout its history,
including between 1997 and 2001, Amtrak led Congress to believe that
profitability, or at least operational self-sufficiency was achievable.
But 32 years after its establishment, Amtrak is running annual deficits
exceeding $1 billion; has run up a debt of nearly $5 billion; continues
to operate trains that lose over $400 per passenger; and yet still has
less than 1 percent of the intercity travel market. Clearly, reform is
needed.
I hope the legislation I am introducing today will serve as the basis
for developing a consensus about the future of Amtrak and intercity
rail passenger service. Even Amtrak supporters should admit that
without significant restructuring, the passenger rail program cannot be
entrusted with billions of dollars of additional financial support from
the taxpayers, as some are proposing, particularly financing outside of
the annual appropriations process, which at least gives Congress the
ability to adjust Amtrak's funding based on its performance and use of
taxpayer dollars. Nor, in my view, should high-speed rail projects go
forward until the Amtrak problem is solved.
My priority is to establish a network of train service that makes
economic sense, minimizes subsidies at all levels of government, and
provides fair and open competition for Amtrak. The Administration's
proposal is a good start. Federal support for intercity passenger rail
service would be modeled after the existing transit program and consist
of capital funding matched by the States and managed through a ``full
funding grant agreement'' process. States, rather than the Federal
Government, would be responsible for funding operating losses after a
transition period.
Following the recommendation of the Amtrak Reform Council, the
legislation would divide Amtrak into an operating company which would
operate train services, and an infrastructure company which would
maintain the Northeast Corridor (NEC). After a transition period, the
services provided by both companies would be subject to competition
through competitive bidding. The NEC would be restored to a state of
good repair, and leased to and managed by an interstate compact. Amtrak
would not be privatized but would have to compete with companies in the
private sector, ensuring a lower-cost solution for the taxpayers.
I intend to hold a hearing on the Administration's bill and the bill
being introduced today by Senator Hutchison, the Chairman of the
Subcommittee on Surface Transportation and Merchant Marine. If a
consensus can be reached on a responsible proposal to fund and reform
Amtrak and provide for an improved rail passenger program, the
Committee will mark up legislation in the fall.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1501
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 CONTENTS.
(a) Short Title.--This Act may be cited as the ``Passenger
Rail Investment Reform Act''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Purposes; Definitions.
TITLE I--NATIONAL PASSENGER RAIL SERVICE RESTRUCTURING
Sec. 101. Board of directors of Amtrak.
Sec. 102. Passenger rail service restructuring.
Sec. 103. Northeast Corridor Compact.
Sec. 104. Assistance to address capital needs.
Sec. 105. Employee transition assistance; authorization.
Sec. 106. Limit on operating assistance for long-distance routes.
Sec. 107. Definitions.
Sec. 108. Repeal of obsolete and executed provisions of law; other.
TITLE II--FINANCIAL REFORM
Sec. 201. Limitations on availability of grants.
Sec. 202. Spending plans for capital backlog reduction.
Sec. 203. Redemption of common stock.
Sec. 204. Retirement of preferred stock; transfer of assets.
Sec. 205. Real estate and asset sales.
Sec. 206. Management and transfer of secured debt.
Sec. 207. Transition assistance.
TITLE III--GRANTS AND OTHER ASSISTANCE FOR INTERCITY PASSENGER RAIL
SERVICE
Sec. 301. Capital assistance for intercity passenger rail service.
Sec. 302. Final regulations on applications by States for corridor
development grants.
Sec. 303. Authority for interstate compacts for corridor development.
SEC. 2. PURPOSES; DEFINITIONS.
(a) Purposes.--The purposes of this Act are to--
(1) preserve an intercity passenger rail service system in
the United States that is driven by sound economics;
(2) provide a transition from the existing structure for
providing such service to a structure that is more aligned
with existing and emerging transportation needs;
(3) develop a system that provides high quality passenger
rail service at a reasonable cost;
(4) establish a long-term partnership among the states and
the Federal government to support intercity passenger rail
service; and
(5) create an effective public-private partnership, after a
reasonable transition, to manage the capital assets of the
Northeast Corridor.
(b) Definitions.--In this Act:
(1) Year 1.--The term ``year 1'' means the earlier of--
(A) the fiscal year in which this Act is enacted if the
fiscal year began less than 61 days before such date; or
(B) the first fiscal year beginning after the date of
enactment of this Act.
(2) Years 2, 3, 4, 5, and 6.--The terms ``year 2'', ``year
3'', ``year 4'', ``year 5'', and ``year 6'', mean,
respectively, the first, second, third, fourth, and fifth
fiscal years following year 1.
TITLE I--NATIONAL PASSENGER RAIL SERVICE RESTRUCTURING
SEC. 101. BOARD OF DIRECTORS OF AMTRAK.
Section 24302 of title 49, United States Code, is amended
to read as follows:
``Sec. 24302. Board of directors
``(a) Membership.--
``(1) In general.--Until the board of directors provided
for in subsection (f) assumes operational responsibility and
control, the board of directors of Amtrak shall be the
transition board provided for by this subsection.
``(2) Transition board.--The transition board of directors
of Amtrak shall consist of 11 voting members, including--
``(A) the Secretary of Transportation, or an officer of the
United States within the Department of Transportation
compensated under the Executive Schedule under title 5, who
is designated by the Secretary; and
``(B) 10 other members appointed by the President, by and
with the advice and consent of the Senate.
``(3) President of Amtrak.--The President of Amtrak shall
serve as an ex officio, nonvoting, member of the transition
board of directors.
``(b) Compensation.--Members of the transition board of
directors shall serve without pay, but shall receive travel
expenses, including per diem in lieu of subsistence, in
accordance with sections 5702 and 5703 of title 5.
[[Page S10279]]
``(c) Term of Office.--Members serving un-expired terms on
the date of enactment of the Passenger Rail Investment Reform
Act may continue to serve until the earlier of the expiration
of their terms or the date on which the restructuring
mandated under section 24310 of this title is implemented.
Members appointed by the President under subsection (a)(1)(B)
shall serve for a term that expires on the date the
restructuring mandated in section 24310 of this title is
implemented. At the expiration of their terms, members of the
Board shall be eligible to serve as members of the boards of
successor corporations to Amtrak.
``(d) Quorum.--At any time after the date of enactment of
the Passenger Rail Investment Reform Act, a majority of the
transition board members who have been lawfully appointed
shall constitute a quorum for purposes of conducting board
meetings and making all necessary decisions regarding the
operations, structure, and business affairs of Amtrak.
``(e) Asset Transition Committee.--
``(1) In general.--The transition board of directors shall
form an asset transition committee comprised of the Secretary
or the Secretary's designee, and 2 other members, or 1 other
member if 2 other members are not lawfully appointed.
``(2) Powers and duties.--In addition to other powers and
duties assigned by the board, the Asset Transition Committee
has the duty to ensure that the public interest is served in
board decisions and Amtrak management actions that change the
use of or status of--
``(A) the contractual right of access of Amtrak to rail
lines of other railroads;
``(B) Amtrak secured debt;
``(C) Northeast Corridor real property and assets; and
``(D) rolling stock.
``(3) Approval required.--The board may not take an action
with regard to the assets or secured debt specified in
paragraph (2), or permit an Amtrak management action with
regard to those assets, that is not approved by the asset
transition committee.
``(f) Board after Restructuring Completed.--
``(1) In general.--Upon the commencement of operations of
the Passenger Rail Service Provider and the Passenger Rail
Infrastructure Manager established under section 24310 of
this title, the board of directors of Amtrak shall consist
of--
``(A) the Secretary of Transportation;
``(B) the Federal Railroad Administrator or another officer
of the United States within the Department of Transportation
compensated under the Executive Schedule under title 5,
United States Code, who is designated by the Secretary; and
``(C) the Federal Transit Administrator or another officer
of the United States within the Department of Transportation
compensated under the Executive Schedule under title 5, who
is designated by the Secretary.
``(2) Transition board directors shifted.--When the board
of directors provided for in paragraph (1) takes office, the
members of the transition board of directors, with the
exception of the Secretary of Transportation, shall--
``(A) cease to serve as appointees of the President to the
transition board of directors; and
``(B) become members of the board of directors of the
Passenger Rail Service Provider or the Passenger Rail
Infrastructure Manager established under section 24310 of
this title.''.
SEC. 102. PASSENGER RAIL SERVICE RESTRUCTURING.
(a) In General.--Chapter 243 of title 49, United States
Code, is amended by inserting after section 24309 the
following:
``Sec. 24310. Amtrak restructuring mandate
``(a) In General.--Within 6 months after year 1 begins, and
notwithstanding any other provision of this title, the
transition board of directors shall prepare a plan to
restructure Amtrak management, personnel, assets, operations,
and other activities and relationships to conform to the
requirements of this section. The board shall transmit the
completed plan to the Committee on Commerce, Science, and
Transportation of the Senate, the Committee on Transportation
and Infrastructure of the House of Representatives, and the
Committees on Appropriations of the House of Representatives
and Senate.
``(b) Minimum Requirements.--At a minimum, the
restructuring plan shall provide for the following:
``(1) Article of incorporation for 2 new entities.--The
filing of appropriate articles of incorporation under State
law for 2 business corporations that are entirely independent
of Amtrak, 1 of which shall be known as the `Passenger Rail
Service Provider' and the other of which shall be knows as
the `Passenger Rail Infrastructure Manager', and referred to
collectively as the `successor corporations'.
``(2) Trifurcation of amtrak.--The division of Amtrak into
3 functionally independent entities as follows:
``(A) A corporation, hereinafter referred to as `Amtrak',
that shall provide overall supervision of Amtrak
restructuring and subsequent management of residual
responsibilities, including succeeding to the legal rights of
the National Railroad Passenger Corporation, and including
specifically Amtrak's legal right of access to other
railroads, following transfer of rail operations and
infrastructure management to the successor corporations
established under paragraph (1).
``(B) A corporation that shall provide passenger rail
operating services nationwide, including operation of the
reservation centers and ownership and management of existing
rolling stock and its maintenance.
``(C) A corporation that shall provide passenger rail
infrastructure management.
``(3) Assignment of amtrak personnel.--The assignment of
all Amtrak personnel by name to one of the entities specified
in paragraph (2), with no loss of pay or benefits, including
seniority rights to employment within any entity, except that
an employee who elects employment with the corporation
described in paragraph (2)(A) shall become an employee of
that corporation, with only such rights regarding pay and
benefits as the corporation shall determine.
``(4) The division of accounting, finance, budget, assets,
and personnel to provide for the operation and funding of
each entity independently.
``(5) A transition schedule that provides for completion of
the restructuring not later than the last day of year 1.
``(c) Successor Corporations.--
``(1) Consistent with the business corporation law of the
State of incorporation of the successor corporations under
subsection (b)(1), each of the successor corporations shall
be qualified to undertake railroad activities of an
operational or infrastructure nature on a contractual basis
with Amtrak or any other entity.
``(2) The Passenger Rail Service Provider--
``(A) shall have the exclusive right, until the last day of
year 3, to continue to provide the intercity passenger
service that is being provided by Amtrak on the date of
enactment of the Passenger Rail Investment Reform Act, but
after the last day of year 1, may operate such passenger rail
service only under a contract; and
``(B) shall provide interline reservations services to any
other provider of intercity passenger rail services on the
same basis and rates as services are provided to the
operational entities that provide service within Amtrak on
the date of enactment of that Act.
``(3) The Passenger Rail Infrastructure Manager--
``(A) shall have the exclusive right, until the last day of
year 6, to continue to provide the dispatching, maintenance,
and infrastructure services that are being provided by Amtrak
on the date of enactment of the Passenger Rail Investment
Reform Act, but after the last day of year 1, may provide
these services only under a contract; and
``(B) shall carry out the multi-year infrastructure plan
prepared by Amtrak to the extent that funds are made
available.
``(4)(A) The successor corporations are not a department,
agency, or instrumentality of the United States Government
nor are they Government corporations (as defined in section
103 of title 5).
``(B) Chapter 105 of this title does not apply to the
successor corporations, except that--
``(i) laws and regulations governing safety, employee
representation for collective bargaining purposes, the
handling of disputes between carriers and employees, employee
retirement, annuity, and unemployment systems, and other
dealings with employees that apply to a rail carrier
providing transportation subject to chapter 105 apply to the
successor corporations; and
``(ii) the employee retirement, annuity, and unemployment
systems that apply to a rail carrier providing transportation
subject to chapter 105 apply to the corporation described in
subsection (b)(2)(A).
``(C) Subsections (c) through (l) of section 24301 of this
title shall apply to the successor corporations.
``(5) Subject to further action by the board of directors,
the president of Amtrak on the date of enactment of the
Passenger Rail Investment Reform Act shall be offered the
position of chief executive officer of the Passenger Rail
Service Provider.
``(6) The contractual rights of successor corporations to
provide services may not be extended beyond the dates set
forth in paragraphs (2) and (3), as applicable, without
competitive bid.
``(7) The Passenger Rail Service Provider shall provide to
the Secretary of Transportation not later than the end of
year 2, recommendations on the feasibility, advantages, and
disadvantages of separation of the reservation centers into a
free-standing entity that can become an element of an
intermodal reservations service.
``(8) The corporation described in subsection (b)(2)(A)
shall retain all legal rights pertaining to the name
`Amtrak,' and may, at its option, license or otherwise make
the name `Amtrak' commercially available in connection with
intercity passenger rail and related services.
``(d) Rolling Stock and Shops.--
``(1) With respect to any route on which intercity
passenger rail service is provided on the date of enactment
of the Passenger Rail Investment Reform Act, the Passenger
Rail Service Provider shall make available to any replacement
operator the legacy equipment that is associated with the
service on the route.
``(2) Such equipment and services shall be made available
on such terms as Amtrak determines are fair, reasonable, and
in the public interest.
``(e) Freight and Commuter Operations.--
[[Page S10280]]
``(1) Amtrak shall ensure that the implementation of the
restructuring prescribed in this section gives due
consideration to the needs of freight and commuter rail
operations that, as of the effective date of the Passenger
Rail Investment Reform Act, operate in the Northeast Corridor
on Amtrak right of way.
``(2) Notwithstanding paragraph (1), commuter services
headquartered in a State or Commonwealth that is not a member
of the Northeast Corridor Compact after the last day of year
2, shall pay the fully allocated costs incurred by the
successor corporation or any successor entity for access to
and use of the Northeast Corridor for such services.
``(3) The right of access by Amtrak to rail lines owned by
other carriers is, as of the date of enactment of the
Passenger Rail Investment Reform Act, restricted as follows:
``(A) The terms and conditions for operation of an
intercity passenger rail route or frequency to be added after
that date shall be determined by negotiation and mutual
agreement between the host railroad and the operator of the
route or frequency sought to be added, with no preferential
right of access.
``(B) If not utilized by Amtrak, Amtrak's right of access
to any segment of rail line owned by another rail carrier may
be assigned to no more than 1 intercity passenger rail
operator during the term of the assignment, except by
agreement among Amtrak, its assignee, and the owner of the
rail line.''.
(b) Conforming Amendment.--The chapter analysis for chapter
243 of title 49, United States Code, is amended by inserting
the following after the item relating to section 24309:
``24310. Amtrak restructuring mandate''.
SEC. 103. NORTHEAST CORRIDOR COMPACT.
(a) Consent to Compact.--
(1) In general.--The States and the District of Columbia
that constitute the Northeast Corridor, as defined in section
24102 of title 49, United States Code, may enter into a
multistate compact, not in conflict with any other law of the
United States, to be known as the Northeast Corridor Compact,
to provide passenger rail service and to conduct related
activities in the Northeast Corridor.
(2) Congressional approval required.--The Northeast
Corridor Compact shall be submitted to Congress for its
consent. It is the sense of the Congress that rapid consent
to the Compact is a priority matter for the Congress.
(b) Compact Commission.--
(1) In general.--There is hereby established a commission
to be known as the Northeast Corridor Compact Commission. The
Commission shall be composed of--
(A) 2 members (or their designees), to be selected by the
Secretary of Transportation;
(B) 2 members (or their designees), to be selected by
agreement of--
(i) the governors of Maryland, Delaware, Pennsylvania, New
Jersey, New York, Connecticut, Rhode Island, and
Massachusetts (hereinafter referred to as the ``participating
States''); and
(ii) the mayor of the District of Columbia; and
(C) 1 member to be selected by the 4 members selected under
subparagraphs (A) and (B).
(2) Administrative provisions.--
(A) Members of the Commission shall be appointed for the
life of the Commission.
(B) A vacancy in the Commission shall be filled in the
manner in which the original appointment was made.
(C) Members shall serve without pay but shall receive
travel expenses, including per diem in lieu of subsistence,
in accordance with sections 5702 and 5703 of title 5, United
States Code.
(D) The Chairman of the Commission shall be elected by the
members.
(E) The Commission may appoint and fix the pay of such
personnel as it considers appropriate.
(F) Upon the request of the Commission, the head of any
department or agency of the United States may detail, on a
reimbursable basis, any of the personnel of that department
or agency to the Commission to assist it in carrying out its
duties under this section.
(G) Upon the request of the Commission, the Administrator
of General Services shall provide to the Commission, on a
reimbursable basis, the administrative support services
necessary for the Commission to carry out its
responsibilities under this section.
(c) Functions.--
(1) The Commission shall prepare for the consideration of
and adoption by participating States, the District of
Columbia, and the Secretary of Transportation an interstate
compact that provides for--
(A) full authority for 99 years to succeed to the
responsibilities of the National Railroad Passenger
Corporation as operator of the Northeast Corridor, subject to
the provisions of a lease from the Department of
Transportation;
(B) execution of a lease of the Northeast Corridor from the
Department of Transportation, for a period of 99 years,
subject to appropriate provisions protecting the lessor's
interests, including reversion of all lease interests to the
lessor in the event the lessee fails to meet its financial
obligations or otherwise assume financial responsibility for
Northeast Corridor functions;
(C) responsibility for Corridor maintenance and
improvement;
(D) operation of intercity passenger rail service;
(E) arrangements for operation of freight railroad
operations and commuter operations;
(F) assumption of financial responsibility for Northeast
Corridor functions;
(G) authority to make use of the Corridor for non-rail
purposes; and
(H) participation by the Department of Transportation, as
the non-voting representative of the United States.
(2) The compact terms shall, at a minimum, conform to the
requirements of subsections (e) through (i) of this section.
(d) Final Compact Proposal.--
(1) The Commission shall submit a final compact proposal to
participating States, the District of Columbia, and the
Federal Government not later than the last day of year 1.
(2) The Commission shall terminate on the 180th day
following the date of transmittal of the final compact
proposal under this subsection. All records and papers of the
Commission shall thereupon be delivered to the Administrator
of General Services for deposit in the National Archives.
(e) Governance and Funding Requirements for Compact.--
(1) The governance provisions of the compact shall provide
a mechanism to ensure voting representation for the
participating States and the District of Columbia and for
non-voting representation for the Secretary of Transportation
as an ex officio member participating in all Compact affairs.
(2) The provisions of the compact shall establish the
financial obligations of each compact member and shall
provide for its management of rail services in the Northeast
Corridor.
(f) Employee Interest Requirements for Compact.--The
employee provisions of the compact shall, at a minimum,
provide the following with regard to employees in the
Northeast Corridor if the Compact chooses to replace the
successor corporations for operation and maintenance of the
physical plant or operation of passenger trains, or both:
(1) Payment of any labor protection payments owed and not
paid by the successor corporations established under section
24310(b) of title 49, United States Code.
(2) In the case of an employee who is employed by the
National Railroad Passenger Corporation on the date of
enactment of the Passenger Rail Investment Reform Act and who
accepts employment by a successor corporation, a right of
first refusal to accept a substantially similar position with
the replacement operator when the successor corporation is
replaced.
(g) Federal Interest Requirements for Compact.--The
provisions of the Compact shall hold the United States
Government harmless as to the actions of the Compact under
the lease of rights to the Northeast Corridor by the United
States Government.
(h) Compact Borrowing Authority.--
(1) The borrowing authority provisions of the Compact may
authorize it to issue bonds or other debt instruments from
time to time at its discretion for purposes that include
paying any part of the cost of rail service improvements,
construction, and rehabilitation and the acquisition of real
and personal property, including operating equipment, except
that debt issued by the Compact may be secured only by
revenues to the Compact and may not be a debt of a
participating State, the District of Columbia, or the Federal
Government.
(2) The debt authorized by this subsection shall under no
circumstances be backed by the full faith and credit of the
United States, and a grant made under the authority of this
Act or under the authority of part C of subtitle V of title
49, United States Code, shall include an express
acknowledgement by the grantee that the debt does not
constitute an obligation of the United States.
(i) Adoption of Compact; Turnover.--
(1) The participating States and the District of Columbia
shall adopt a final compact agreement not later than the last
day of year 2, and the Compact shall thereafter assume
responsibility for all Northeast Corridor operations from the
successor corporations on a date that is not later than 8
months following adoption of the Compact.
(2) In the event that the participating States and the
District of Columbia do not adopt the final compact agreement
and make it operational under the schedule set forth in this
section, the Secretary of Transportation shall assume control
of the corporation described in section 24310(b)(2)(A) of
title 49, United States Code, and shall make such legislative
recommendations as the President judges necessary and
expedient to Congress that address the monetary contributions
by Northeast Corridor states and the District of Columbia
that would be necessary to provide continued intercity
passenger rail service in the Northeast Corridor.
(j) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Transportation such
sums as may be necessary to carry out the purposes of this
section.
SEC. 104. ASSISTANCE TO ADDRESS CAPITAL NEEDS.
(a) In General.--There are authorized to be appropriated to
the Secretary of Transportation, for capital expenditures in
compliance with capital spending plans developed under
section 202 of this Act, including the Secretary's expenses
related thereto, the following amounts:
(1) Such sums as may be necessary for year 3.
[[Page S10281]]
(2) Such sums as may be necessary for year 4.
(3) Such sums as may be necessary for year 5.
(4) Such sums as may be necessary for year 6.
(b) Obligation Options.--
(1) Subject to paragraph (2), the Secretary may obligate
the funds authorized by this section through grants to or
cooperative agreements with States, the Passenger Rail
Service Provider, the Northeast Corridor Compact or another
qualified Compact, or through contracts with private
companies.
(2) Funds appropriated under this section shall not be
obligated and not be disbursed from the Treasury for the
Northeast Corridor Compact until it has been established and
is empowered and qualified to enter into contracts for the
expenditure of the funds.
(c) Eligibility of Expenditures.--
(1) The Federal share of expenditures for capital
improvements under this section may be not more than 100
percent and is solely authorized for the purpose of funding
deferred maintenance, safety, and security projects.
Expenditures for capacity expansion are not authorized by
this section.
(2) Funds appropriated under this section may be obligated
for an expenditure only if the Secretary has determined in
writing that the expenditure on any railroad infrastructure
investments is limited to a route or routes with a useful
life of at least 5 years.
SEC. 105. EMPLOYEE TRANSITION ASSISTANCE; AUTHORIZATION.
(a) Provision of Financial Incentives.--To facilitate the
restructuring required by this title, the Secretary is
authorized to develop a program under which the Secretary
may, at the Secretary's discretion, provide grants for
financial incentives to be provided to employees of the
National Railroad Passenger Corporation who voluntarily
terminate their employment with the Corporation or the
successor corporations (as such term is used in section
24310(b)(1) of title 49, United States Code) and relinquish
any legal rights to receive termination-related payments
under any contractual agreement with the Corporation or the
successor corporations.
(b) Conditions for Financial Incentives.--As a condition
for receiving financial assistance grants under this section,
the Corporation or the successor corporations shall certify
that--
(1) the financial assistance results in a net reduction in
the total number of employees equal to the number receiving
financial incentives;
(2) the financial assistance results in a net reduction in
total employment expense equivalent to the total employment
expenses associated with the employees receiving financial
incentives; and
(3) the total number of employees eligible for termination-
related payments will not be increased without the express
written consent of the Secretary.
(c) Amount of Financial Incentives.--The financial
incentives authorized under this section may not exceed
$50,000 per employee.
(d) Authorization of Appropriations.--There are hereby
authorized to be appropriated to the Secretary such sums as
may be necessary to make grants to the National Railroad
Passenger Corporation or the successor corporations to fund
termination-related payments to employees under existing
contractual agreements from the first day of year 1 through
the last day of year 4.
SEC. 106. LIMIT ON OPERATING ASSISTANCE FOR LONG-DISTANCE
ROUTES.
(a) In General.--Chapter 243 of title 49, United States
Code, is amended by adding at the end the following:
``Sec. 24316. Limit on operating assistance for long-distance
routes
``(a) General Authority.--
``(1) Grant authority.--After the last day of year 1, the
Secretary of Transportation may make grants for operating
assistance under the authority of this section, and not under
any other provision of law, to reimburse operators of long-
distance routes and corridor feeder routes for the operating
expenses incurred in operating those routes to provide
intercity passenger rail transportation.
``(2) Conditions.--A grant under this section shall be
subject to the terms, conditions, requirements, and
provisions the Secretary decides are necessary or appropriate
for the purposes of this section, including limitations on
what operating expenses are eligible for reimbursement and
documentation of eligible operating losses on a quarterly
basis.
``(b) Federal Share of Operating Expenses.--
``(1) In general.--No funds appropriated to carry out this
section may be used to fund operating expenses of a long-
distance route after the last day of year 1, except as
provided in paragraph (2).
``(2) Reimbursable amount for years 2, 3, and 4.--The
Secretary may reimburse an operator of a long-distance route
or a corridor feeder route for operating expenses on that
route that do not exceed the operating losses on that route
and are not more than--
``(A) $0.40 per-passenger mile during year 2;
``(B) $0.20 per-passenger mile during year 3; or
``(C) $0.10 per-passenger mile during year 4.
``(3) Termination after year 4.--The Secretary may not
reimburse an operator of a long-distance route or a corridor
feeder route for operating expenses under this section after
year 4.
``(c) Authorization of Appropriations.--There are
authorized to be appropriated to the Secretary such sums as
may be necessary to carry out this section, including
administrative costs.''.
(b) Conforming Amendments.--The chapter analysis for
chapter 243 of title 49, United States Code, is amended by
adding at the end the following:
``24316. Limit on operating assistance for long-distance routes''.
SEC. 107. DEFINITIONS.
Section 24102 of title 49, United States Code, is amended--
(1) by redesignating paragraphs (5) through (9) as
paragraphs (6) through (10), respectively;
(2) by inserting after paragraph (4) the following:
``(5) `corridor feeder route' means a portion of a long
distance train or route that provides services between
regional corridors by connecting to endpoints of the
corridors.'';
(3) by redesignating paragraphs (7) through (10), as
redesignated, as paragraphs (9) through (12), respectively;
(4) by inserting after paragraph (6), as redesignated, the
following:
``(7) `legacy equipment' means the rolling stock required
to provide intercity passenger rail service owned or leased
by the National Railroad Passenger Corporation on the date of
enactment of the Passenger Rail Investment Reform Act.
``(8) `long distance train' or `long distance route' means
all or a portion of the following trains or routes operated
by the National Railroad Passenger Corporation on the date of
enactment of the Passenger Rail Investment Reform Act:
``(A) The Silver Star.
``(B) The Three Rivers.
``(C) The Cardinal.
``(D) The Silver Meteor.
``(E) The Empire Builder.
``(F) The Capitol Limited.
``(G) The California Zephyr.
``(H) The Southwest Chief.
``(I) The City of New Orleans.
``(J) The Texas Eagle.
``(K) The Sunset Limited.
``(L) The Coast Starlight.
``(M) The Lake Shore Limited.
``(N) The Palmetto.
``(O) The Crescent.
``(P) The Pennsylvanian.
``(Q) The Auto Train.; and
(5) by adding at the end the following:
``(13) `year 1' means the earlier of--
``(A) the fiscal year in which the Passenger Rail
Investment Reform Act is enacted if the fiscal year began
less than 61 days before such date; or
``(B) the first fiscal year beginning after the date of
enactment of that Act.
``(14) `year 2', `year 3', `year 4', `year 5', and `year
6', mean, respectively, the first, second, third, fourth, and
fifth fiscal years following year 1.''.
SEC. 108. REPEAL OF OBSOLETE AND EXECUTED PROVISIONS OF LAW.
(a) In General.--Title 49, United States Code, is amended
by repeal of the following sections:
(1) Section 24701.
(2) Section 24706.
(3) Section 24901.
(4) Section 24902.
(5) Section 24904.
(6) Section 24906.
(7) Section 24909.
(b) Amendment of Section 24305.--Section 24305 of title 49,
United States Code, is amended--
(1) by striking paragraph (2) of subsection (a) and
redesignating paragraph (3) as paragraph (2);
(2) by striking paragraph (4) of subsection (b) and
redesignating paragraphs (5) and (6) as paragraphs (4) and
(5), respectively; and
(3) by inserting ``With regard to items acquired with funds
provided by the Federal Government,'' before ``Amtrak'' in
subsection (f)(2).
(c) Conforming Amendments.--The chapter analyses for
chapters 243, 247, and 249 or title 49, United States Code,
are amended, as appropriate, by striking the items relating
to sections 24307, 24701, 24706, 24901, 24902, 24904, 24906,
24908, and 24909.
(d) Effective Date.--The amendments made by this section
shall take effect on the first day of year 1.
TITLE II--FINANCIAL REFORMS
SEC. 201. LIMITATIONS ON AVAILABILITY OF GRANTS.
(a) In General.--Chapter 43 of title 49, United States
Code, is amended by inserting after section 24313 the
following:
``Sec. 24314. Transitional limitations on availability of
grants
``(a) Requirements Prior to Restructuring.--A grant made to
the National Railroad Passenger Corporation under the
authority of this part between the first day of year 1, and
the establishment and commencement of operations by the
successor corporations under section 24310 of this title may
only be made subject to the following limitations:
``(1) The Secretary of Transportation shall not disburse
funding to cover operating losses on a long-distance train
route without first receiving and approving a grant request
for that specific train route.
``(2) Each such grant request shall be accompanied by a
detailed financial analysis and revenue projection justifying
the Federal support to the Secretary's satisfaction.
``(3) The Secretary of Transportation and the board of
directors of the Corporation
[[Page S10282]]
shall ensure that, of the amount made available by
appropriations for capital and operating assistance to the
Corporation in a fiscal year, sufficient sums are reserved to
satisfy the contractual obligations of the Corporation to
provide commuter and intrastate passenger rail service.
``(4) Not later than December 31 prior to each fiscal year
in which grants are made to the Corporation, the Corporation
shall transmit to the Secretary of Transportation, the
Committee on Commerce, Science, and Transportation of the
Senate, the Committee on Transportation and Infrastructure of
the House of Representatives, and the House of
Representatives and Senate Committees on Appropriations a
business plan for operating and capital improvements to be
funded in the fiscal year under section 24104(a) of this
title 49.
``(5) The business plan shall include a description of the
work to be funded, along with cost estimates and an estimated
timetable for completion of the projects covered by the
business plan.
``(6) Each month of each fiscal year in which grants are
made to the Corporation, the Corporation shall submit to the
Secretary of Transportation, the Committee on Commerce,
Science, and Transportation of the Senate, the Committee on
Transportation and Infrastructure of the House of
Representatives, and the House of Representatives and Senate
Committees on Appropriations a supplemental report regarding
the business plan, which shall describe the work completed to
date, any changes to the business plan, and the reasons for
such changes.
``(7) A grant that is not approved by the Secretary of
Transportation and an element of the Corporation's current
fiscal year business plan may not be used for operating
expenses or capital projects, and may not be obligated or
expended unless the Corporation certifies, as part of the
grant agreement, that it has complied with and will abide by
the following requirements:
``(A) The Corporation's management will maintain financial
controls and accounting transparency to the satisfaction of
the Secretary, including developing or enhancing any existing
capacity separately to report--
``(i) all revenue and expenses associated with rail
operations by route; and
``(ii) budgeted and actual expenditures for all capital
investments.
``(B) The Corporation's management will provide a monthly
performance report to the board of directors, the Secretary
of Transportation, and the committees of Congress described
paragraph (6). The Corporation shall also make available to
the Secretary the same details and reports on its financial
performance that it makes available to Amtrak management, at
the same time that it provides those reports and details to
Amtrak management.
``(C) The Corporation shall expend funds only for the
continuation of existing plants and services. With the
exception of expenditures for which it obtains written
approval from the Secretary of Transportation, the
Corporation will not use of any of its funds for expansion or
planning for expansion of rail service, including high speed
rail service.
``(D) The Corporation has negotiated with its employees
substantial operating cost reductions needed to make its
operations competitive with private-sector service providers.
``(b) Requirements Following Restructuring.--Any grant made
directly to a successor corporation (as such term is used in
section 24310(b)(1)) under the authority of this part may
only be made subject to the following limitations:
``(1) The Secretary of Transportation shall not disburse
funding to cover operating losses on a long-distance train
route without first receiving and approving a grant request
for that specific train route.
``(2) Each such grant request shall be accompanied by a
detailed financial analysis and revenue projection justifying
the Federal support to the Secretary's satisfaction.
``(3) The Secretary shall ensure that, of the amount made
available by appropriations for capital and operating
assistance in a fiscal year, sufficient sums are reserved to
satisfy the successor corporation's contractual obligations,
if any, with respect to commuter and intrastate passenger
rail service.
``(4) Not later than December 31 prior to each fiscal year
in which grants are made, the successor corporations shall
each transmit to the Secretary of Transportation a business
plan for operating and capital improvements to be funded in
the fiscal year.
``(5) The business plan shall include a description of the
work to be funded, along with cost estimates and an estimated
timetable for completion of the projects covered by the
business plan.
``(6) Each month of each fiscal year in which grants are
made, the successor corporations shall each submit to the
Secretary a supplemental report regarding the business plan,
which shall describe the work completed to date, any changes
to the business plan, and the reasons for such changes.
``(7) A grant that is not approved by the Secretary of
Transportation and an element of the Corporation's current
fiscal year business plan may not be used for operating
expenses or capital projects, and may not be obligated or
expended unless the Corporation certifies, as part of the
grant agreement, that it has complied with and will abide by
the following requirements:
``(A) Management will maintain financial controls and
accounting transparency to the satisfaction of the Secretary,
including developing or enhancing any existing capacity
separately to report--
``(i) all revenue and expenses associated with rail
operations by route; and
``(ii) budgeted and actual expenditures for all capital
investments.
``(B) Management of each successor corporation shall make
available to the Secretary the same details and reports on
its financial performance that it makes available internally,
at the same time that it provides those reports and details
internally.
``(C) Funds will be spent only on existing plants and
services.''.
(b) Conforming Amendment.--The chapter analysis for chapter
243 of title 49, United States Code, is amended by inserting
after the item relating to section 24313 the following:
``24314. Transitional limitations on availability of grants''.
SEC. 202. SPENDING PLANS FOR CAPITAL BACKLOG REDUCTION.
(a) In General.--Within 6 months after year 1 begins, and
as a condition of grants to the National Railroad Passenger
Corporation between that date and the implementation of the
restructuring required under section 24310 of title 49,
United States Code, the Corporation shall prepare a capital
spending plan that addresses capital needs, consistent with
the funding levels authorized to be provided for year 1 and
each fiscal year thereafter through year 6, for--
(1) Northeast Corridor capital assets;
(2) capital assets on long-distance routes other than on
the Northeast Corridor; and
(3) capital assets on short-distance routes other than the
NortheastCorridor.
(b) Approval by the Secretary and the Compact.--
(1) In general.--The Corporation shall submit the capital
spending plan prepared under subsection (a) to the Secretary
of Transportation for review and approval. The plan shall be
implemented only after approval by the Secretary, and with
any modifications specified by the Secretary.
(2) Annual updates.--The plan shall be updated and
resubmitted at least annually.
(3) No plan no grant.--After creation of Northeast Corridor
Compact, the Secretary may not make a grant to the Compact
for capital investments except in accordance with a capital
spending plan prepared by the Compact and approved by both
the Compact and the Secretary. The same requirements shall
apply to grants made to States and other Compacts under this
section.
SEC. 203. REDEMPTION OF COMMON STOCK.
(a) Valuation.--The Secretary of Transportation shall
arrange, at the National Railroad Passenger Corporation's
expense, for a valuation of all assets and liabilities of the
Corporation to be performed by the Secretary of the Treasury,
or by a contractor selected by the Secretary of the Treasury.
The valuation shall be conducted in accordance with criteria
and requirements to be determined by the Secretary in the
Secretary's discretion and shall be completed within 6 months
after year 1 begins.
(b) Redemption.--
(1) Prior to the transfer of assets to the Secretary
directed by section 204 of this Act, and within 9 months
after year 1 begins, the Corporation shall redeem all common
stock in the Corporation issued prior to the date of
enactment of this Act at the value of such stock, based on
the valuation performed under subsection (a).
(2) No provision of this Act, or amendments made by this
Act, provide to the owners of the common stock a priority
over holders of indebtedness or other stock of the
Corporation.
(c) Acquisition through Eminent Domain.--In the event that
the Corporation and the owners of its common stock have not
completed the redemption of such stock by a date that is
within 9 months after year 1 begins, the Corporation shall
exercise its right of eminent domain under section 24311 of
title 49, United States Code, to acquire that stock. The
valuation performed under subsection (a) shall be deemed to
constitute just compensation except to the extent that the
owners of the common stock demonstrate that the valuation is
less than the constitutional minimum value of the stock.
(d) Amendment of Section 24311.--Section 24311(a)(1) of
title 49, United States Code, is amended--
(1) by striking ``or'' at the end of subparagraph (A);
(2) by striking ``Amtrak.'' in subparagraph (B) and
inserting ``Amtrak; or''; and
(3) by adding at the end the following:
``(C) necessary to redeem the Corporation's common stock
from any holder thereof, including a rail carrier.''.
(e) Conversion of Preferred Stock to Common.--
(1) Subsequent to the redemption of the common stock in the
corporation issued prior to the date of enactment of this
Act, the Secretary of Transportation shall convert the one
share of the preferred stock of the Corporation retained
under section 204 of this Act for 10 shares of common stock
in the Corporation.
(2) The Corporation shall not issue any other common stock
without the express written consent of the Secretary.
SEC. 204. RETIREMENT OF PREFERRED STOCK; TRANSFER OF ASSETS.
(a) Transfer.-- Not later than 30 days after the redemption
or acquisition of stock
[[Page S10283]]
under section 203 of this Act, the Corporation shall, in
return for the consideration specified in subsection (c),
transfer to the Secretary of Transportation title to the
following assets:
(1) The portions of the Northeast Corridor currently owned
or leased by the Corporation as well as any improvements made
to these assets, including the rail right-of-way, stations,
track, signal equipment, electric traction facilities,
bridges, tunnels and all other improvements owned by Amtrak
between Boston, Massachusetts, and Washington, District of
Columbia (including the route through Springfield,
Massachusetts, and the routes to Harrisburg, Pennsylvania,
and Albany, New York, from the Northeast Corridor mainline).
(2) Chicago Union Station and rail-related assets in the
Chicago metropolitan area.
(3) All other track and right-of-way, stations, repair
facilities, and other real property owned or leased by the
Corporation.
(b) Existing Encumbrances.--(1) With regard to any assets
described in subsection (a) that the Corporation has provided
as security or collateral for a debt entered into prior to
the date of enactment of this Act, the Corporation shall
transfer its underlying legal interest in such asset to the
Secretary, but the Corporation shall remain liable for the
debt secured by the asset.
(2) The obligation of the National Railroad Passenger
Corporation to repay in full any indebtedness to the United
States incurred since January 1, 1990, is not affected by
this Act or an amendment made by this Act.
(c) Consideration.--In consideration for the assets
transferred to the United States under subsection (b), the
Secretary shall--
(1) deliver to the Corporation all but 1 share of the
preferred stock of the Corporation held by the Secretary and
forgive the Corporation's legal obligation to pay any
dividends, including accrued but unpaid dividends as of the
date of transfer, evidenced by the preferred stock
certificates; and
(2) Release the Corporation from all mortgages and liens
held by the Secretary that were in existence on January 1,
1990.
(d) Agreement.--Prior to accepting title to the assets
transferred under this section, the Secretary shall enter
into an agreement with the Corporation under which the
Corporation will exercise on behalf of the Secretary care,
custody, and control of the assets to be transferred. The
agreement shall identify in detail the specific functions of
the Corporation's employees and equipment, and the specific
numbers and locations of the employees and equipment
associated with each function, that would be needed for
continuation of commuter and freight rail service in the
event that the Corporation were to cease operation, and
identify those actions that would be required to ensure that
such functions can be continued on an interim basis to avoid
any interruption in commuter or freight rail service on the
Northeast Corridor.
(e) Further Transfers.--
(1) The Secretary may, for appropriate consideration,
transfer title to all or part of Chicago Union Station and
rail-related assets in the Chicago metropolitan area acquired
under this section to a regional public transportation agency
that has significant operations in Chicago Union Station on
the date of enactment of this Act.
(2) The Secretary may, for appropriate consideration,
transfer to the underlying States title to real estate
properties owned by the Corporation between Boston,
Massachusetts, and Washington, District of Columbia, that
constitute the route through Springfield, Massachusetts, and
the routes to Harrisburg, Pennsylvania, and Albany, New York,
from the Northeast Corridor mainline.
(3) The Secretary may, for appropriate consideration,
transfer title to all or part of the assets acquired under
subsection (a)(3) to a State, a public agency, a railroad, or
other entity deemed appropriate by the Secretary.
(4) All financial consideration determined by the Secretary
to be appropriate consideration for the transfer of the
assets described in paragraphs (1) through (3) shall be used
exclusively to reduce the Corporation's long-term debt that
exists on the date of enactment.
SEC. 205. REAL ESTATE AND ASSET SALES; OTHER.
(a) In General.--The Amtrak board of directors shall
undertake and complete not later than the last day of year 3,
the disposition of all stations, track, and other facilities
outside the Northeast Corridor mainline, including property
conveyed to the Secretary of Transportation under section 204
of this Act.
(b) Proceeds of Liquidation.--Notwithstanding section 3302
of title 31, United States Code, any proceeds from the
liquidation of assets under this section shall--
(1) be credited as an offsetting collection to the account
that finances grants for debt and interest payments under
section 206 of this Act to the Passenger Rail Service
Provider established under section 24310 of title 49, United
States Code; and
(2) remain available until expended.
SEC. 206. MANAGEMENT AND TRANSFER OF SECURED DEBT.
(a) New Debt Prohibition.--Except as approved by the
Secretary of Transportation to refinance existing secured
debt, the Corporation shall not enter into any obligation
secured by assets of the Corporation after the date of
enactment of this Act. This section does not prohibit
unsecured lines of credit used by the Corporation or any
subsidiary for working capital purposes.
(b) Secured Debt Transfer.--
(1) Upon establishment of the Passenger Rail Service
Provider established under section 24310 of title 49, United
States Code, and the transfer of ownership of the existing
rolling stock, all debt secured by the rolling stock shall be
transferred to and become a liability solely of, the
Passenger Rail Service Provider.
(2) Upon establishment of the Northeast Corridor Compact
under section 103 of this Act, the secured debt associated
with fixed assets in the Northeast Corridor shall be
transferred to, and become a liability solely of, the
Northeast Corridor Compact.
(c) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
the Secretary of Transportation for grants to the Passenger
Rail Service Provider established under section 24310 of
title 49, United States Code, to pay principal and interest
payments on secured debt existing on the date of enactment of
this Act the following amounts:
(A) Such sums as may be necessary in year 2.
(B) Such sums as may be necessary in year 3.
(C) Such sums as may be necessary in year 4.
(D) Such sums as may be necessary in year 5.
(E) Such sums as may be necessary in year 6.
(2) Legal effect of payments under this section.--The
payment of principal and interest secured debt with the
proceeds of grants under paragraph (1) on funding authorized
by this section shall not--
(A) modify the extent or nature of any indebtedness of the
National Railroad Passenger Corporation to the United States
in existence of the date of enactment of this Act;
(B) change the private nature of Amtrak's or its
successors' liabilities; or
(C) imply any Federal guarantee or commitment to amortize
Amtrak's outstanding indebtedness.
SEC. 207. TRANSITION ASSISTANCE.
(a) Year 1 Assistance.--There are authorized to be
appropriated to the Secretary of Transportation for grants to
the National Railroad Passenger Corporation for operating and
capital expenses such sums as may be necessary in year 1.
(b) Year 2 Successor Corporation Operating Assistance.--
There are authorized to be appropriated to the Secretary such
sums as may be necessary for grants to--
(1) the Passenger Rail Service Provider established under
section 24310 of title 49, United States Code, for operating
expenses of all services except long-distance trains and
routes in year 2; and
(2) the Passenger Rail Infrastructure Manager established
under that section for capital expenses in year 2.
(c) Administrative Expenses of Compacts.--There are
authorized to be appropriated to the Secretary such sums as
may be necessary for grants for the administrative expenses
of interstate compacts in years 1 through 3.
(d) Expenses of Amtrak.-- There are authorized to be
appropriated to the Secretary such sums as may be necessary
for grants for the administrative expenses of Amtrak in years
2 through 6.
(e) Grants Made After Year 2.--After the last day of year
2, the Secretary may not enter into a grant agreement under
this Act, other than section 206(c), or part C of title V of
title 49, United States Code, unless each other party to the
grant agreement is a State, regional compact, or other public
entity.
TITLE III--GRANTS AND OTHER ASSISTANCE FOR INTERCITY PASSENGER RAIL
SERVICE
SEC. 301. CAPITAL ASSISTANCE FOR INTERCITY PASSENGER RAIL
SERVICE.
(a) In General.--Part C of subtitle V of title 49, United
States Code, is amended by inserting after chapter 243 the
following:
``CHAPTER 244--INTERCITY PASSENGER RAIL SERVICE CORRIDOR CAPITAL
ASSISTANCE
``Sec.
``24401. Definitions; effective date
``24402. Capital investment grants to support intercity passenger rail
service
``24403. Project management oversight
``24404. Use of capital grants to finance first-dollar liability of
grant project
``24405. Authorization of appropriations
``Sec. 24401. Definitions; effective date.
``(a) Definitions.--In this chapter:
``(1) Applicant.--The term `applicant' means a State, an
Interstate Compact (including the Northeast Corridor Compact
as specified in section 103 of the Passenger Rail Investment
Reform Act), or a public agency established by one or more
States and having responsibility for providing intercity
passenger rail service.
``(2) Capital project.--The term `capital project' means a
project within a corridor plan or program for--
``(A) acquiring, constructing, supervising or inspecting
equipment or a facility for use in intercity passenger rail
service, expenses incidental to the acquisition or
construction (including designing, engineering, location
surveying, mapping, environmental studies, and acquiring
rights-of-way), payments for the capital portions of rail
trackage rights agreements, passenger rail-related
intelligent transportation systems, highway-rail grade
crossing improvements on routes used
[[Page S10284]]
for intercity passenger rail service, relocation assistance,
acquiring replacement housing sites, and acquiring,
constructing, relocating, and rehabilitating replacement
housing;
``(B) rehabilitating, remanufacturing or overhauling rail
rolling stock and facilities used primarily in intercity
passenger rail service; or
``(C) the first-dollar liability costs for insurance
related to the provision of intercity passenger rail service.
``(3) Intercity passenger rail service.--The term
`intercity passenger rail service' means transportation
services with the primary purpose of passenger transportation
between towns, cities, and metropolitan areas by rail,
including high-speed rail.
``(b) Effective Date.--This chapter is effective on the
first day of year 2.
``Sec. 24402. Capital investment grants to support intercity
passenger rail service
``(a) General Authority.--
``(1) Grants.--The Secretary of Transportation may make
grants under this section to an applicant to assist in
financing the capital costs of facilities and equipment
necessary to provide intercity passenger rail transportation.
``(2) Terms and conditions.--The Secretary shall require
that a grant under this section be subject to the terms,
conditions, requirements, and provisions the Secretary
decides are necessary or appropriate for the purposes of this
section, including requirements for the disposition of net
increases in value of real property resulting from the
project assisted under this section.
``(3) Limitation.--A grant under this section may not be
made for a project or program of projects that qualifies for
financial assistance under chapter 53 of this title.
``(b) Project as Part of Approved Program.--
``(1) In general.--The Secretary may not approve a grant
for a project under this section unless the Secretary finds
that the project is part of an approved corridor plan and
program developed under section 5303 of this title and that
the applicant or recipient has or will have the legal,
financial, and technical capacity to carry out the project
(including safety and security aspects of the project),
satisfactory continuing control over the use of the equipment
or facilities, and the capability and willingness to maintain
the equipment or facilities.
``(2) Eligibility information.--An applicant shall provide
sufficient information upon which the Secretary can make the
findings required by this subsection.
``(3) Proposed operator justification.--If an applicant has
not selected the proposed operator of its service
competitively, the applicant shall provide written
justification to the Secretary showing why the proposed
operator is the best, taking into account price and other
factors, and that use of the proposed operator will not
increase the capital cost of the project.
``(4) Rail agreement.--An applicant shall demonstrate that
it has agreed with the railroad over which the intercity
passenger rail service will operate concerning the
applicant's operating and capital plans.
``(c) Letters of Intent, Full Funding Grant Agreements, and
Early Systems Work Agreements.--
``(1) Letter of intent.--
``(A) The Secretary may issue a letter of intent to an
applicant announcing an intention to obligate, for a major
capital project under this section, an amount from future
available budget authority specified in law that is not more
than the amount stipulated as the financial participation of
the Secretary in the project.
``(B) At least 30 days before issuing a letter under
subparagraph (A) of this paragraph or entering into a full
funding grant agreement, the Secretary shall notify in
writing the Committee on Transportation and Infrastructure of
the House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate and the House of
Representatives and Senate Committees on Appropriations of
the proposed letter or agreement. The Secretary shall include
with the notification a copy of the proposed letter or
agreement as well as the evaluations and ratings for the
project.
``(C) The issuance of a letter is deemed not to be an
obligation under sections 1108(c) and (d), 1501, and 1502(a)
of title 31, or an administrative commitment.
``(D) An obligation or administrative commitment may be
made only when amounts are appropriated.
``(2) Full funding agreement.--
``(A) The Secretary may make a full funding grant agreement
with an applicant. The agreement shall--
``(i) establish the terms of participation by the United
States Government in a project under this section;
``(ii) establish the maximum amount of Government financial
assistance for the project;
``(iii) cover the period of time for completing the
project, including a period extending beyond the period of an
authorization; and
``(iv) make timely and efficient management of the project
easier according to the law of the United States.
``(B) An agreement under this paragraph obligates an amount
of available budget authority specified in law and may
include a commitment, contingent on amounts to be specified
in law in advance for commitments under this paragraph, to
obligate an additional amount from future available budget
authority specified in law. The agreement shall state that
the contingent commitment is not an obligation of the
Government and is subject to subject to the availability of
appropriations made by Federal law and to Federal laws in
force on or enacted after the date of the contingent
commitment. Interest and other financing costs of efficiently
carrying out a part of the project within a reasonable time
are a cost of carrying out the project under a full funding
grant agreement, except that eligible costs may not be more
than the cost of the most favorable financing terms
reasonably available for the project at the time of
borrowing. The applicant shall certify, in a way satisfactory
to the Secretary, that the applicant has shown reasonable
diligence in seeking the most favorable financing terms.
``(3) Early systems work agreement.--
``(A) The Secretary may make an early systems work
agreement with an applicant if a record of decision under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) has been issued on the project and the Secretary finds
there is reason to believe--
``(i) a full funding grant agreement for the project will
be made; and
``(ii) the terms of the work agreement will promote
ultimate completion of the project more rapidly and at less
cost.
``(B) A work agreement under this paragraph obligates an
amount of available budget authority specified in law and
shall provide for reimbursement of preliminary costs of
carrying out the project, including land acquisition, timely
procurement of system elements for which specifications are
decided, and other activities the Secretary decides are
appropriate to make efficient, long-term project management
easier. A work agreement shall cover the period of time the
Secretary considers appropriate. The period may extend beyond
the period of current authorization. Interest and other
financing costs of efficiently carrying out the work
agreement within a reasonable time are a cost of carrying out
the agreement, except that eligible costs may not be more
than the cost of the most favorable financing terms
reasonably available for the project at the time of
borrowing. The applicant shall certify, in a way satisfactory
to the Secretary, that the applicant has shown reasonable
diligence in seeking the most favorable financing terms. If
an applicant does not carry out the project for reasons
within the control of the applicant, the applicant shall
repay all Government payments made under the work agreement
plus reasonable interest and penalty charges the Secretary
establishes in the agreement.
``(4) Limit on total obligations and commitments.--The
total estimated amount of future obligations of the
Government and contingent commitments to incur obligations
covered by all outstanding letters of intent, full funding
grant agreements, and early systems work agreements may be
not more than the amount authorized under section 24405 of
this title, less an amount the Secretary reasonably estimates
is necessary for grants under this section not covered by a
letter. The total amount covered by new letters and
contingent commitments included in full funding grant
agreements and early systems work agreements may be not more
than a limitation specified in law.
``(d) Federal Share of Net Project Cost.--
``(1) In general.--
``(A) Based on engineering studies, studies of economic
feasibility, and information on the expected use of equipment
or facilities, the Secretary shall estimate the net project
cost.
``(B) A grant for the project shall not exceed the
specified percentage of the project net capital cost
established for the year the grant is approved, as follows:
``(i) 100 percent in the case of approval for year 2.
``(ii) 80 percent in the case of approval for year 3.
``(iii) 60 percent in the case of approval for year 4.
``(iii) 50 percent in the case of approval for year 5, and
thereafter.
``(C) The Secretary shall give priority in allocating
future obligations and contingent commitments to incur
obligations to grant requests seeking a lower federal share
of the project net capital cost.
``(2) Additional funding.--Up to an additional 30 percent
of project net capital cost may be funded from amounts
appropriated to or made available to a department or agency
of the Federal Government that are eligible to be expended
for transportation.
``(e) Undertaking Projects in Advance.--
``(1) In general.--The Secretary may pay the Federal share
of the net capital project cost to an applicant that carries
out any part of a project described in this section according
to all applicable procedures and requirements if--
``(A) the applicant applies for the payment;
``(B) the Secretary approves the payment; and
``(C) before carrying out a part of the project, the
Secretary approves the plans and specifications for the part
in the same way as other projects under this section.
``(2) Interest costs.--The cost of carrying out part of a
project includes the amount of interest earned and payable on
bonds issued by the applicant to the extent proceeds of the
bonds are expended in carrying out the part. The amount of
interest includable as cost under this paragraph may not be
more
[[Page S10285]]
than the most favorable interest terms reasonably available
for the project at the time of borrowing. The applicant shall
certify, in a manner satisfactory to the Secretary, that the
applicant has shown reasonable diligence in seeking the most
favorable financial terms.
``(3) Use of cost indices.--The Secretary shall consider
changes in capital project cost indices when determining the
estimated cost under paragraph (2) of this subsection.
``Sec. 24403. Project management oversight
``(a) Project Management Plan Requirements.--To receive
Federal financial assistance for a major capital project
under this chapter, an applicant shall prepare and carry out
a project management plan approved by the Secretary of
Transportation. The plan shall provide for--
``(1) adequate recipient staff organization with well-
defined reportingrelationships, statements of functional
responsibilities, job descriptions, and job qualifications;
``(2) a budget covering the project management
organization, appropriateconsultants, property acquisition,
utility relocation, systems demonstration staff, audits, and
miscellaneous payments the recipient may be prepared to
justify;
``(3) a construction schedule for the project;
``(4) a document control procedure and recordkeeping
system;
``(5) a change order procedure that includes a documented,
systematicapproach to handling the construction change
orders;
``(6) organizational structures, management skills, and
staffing levelsrequired throughout the construction phase;
``(7) quality control and quality assurance functions,
procedures, and responsibilities for construction, system
installation, and integration of system components;
``(8) material testing policies and procedures;
``(9) internal plan implementation and reporting
requirements;
``(10) criteria and procedures to be used for testing the
operationalsystem or its major components;
``(11) periodic updates of the plan, especially related to
project budget and project schedule, financing, and ridership
estimates; and
``(12) the recipient's commitment to submit a project
budget and project schedule to the Secretary each month.
``(b) Secretarial Oversight.--
``(1) In general.--The Secretary may use no more than 0.5
percent of amounts made available in a fiscal year for
capital projects under this chapter to enter into contracts
to oversee the construction of such projects.
``(2) Use of funds.--The Secretary may use amounts
available under paragraph (1) of this subsection to make
contracts for safety, procurement, management, and financial
compliance reviews and audits of a recipient of amounts under
paragraph (1).
``(3) Federal share.--The Federal Government shall pay the
entire cost of carrying out a contract under this subsection.
``(c) Access to Sites and Records.--Each recipient of
assistance under this chapter shall provide the Secretary and
a contractor the Secretary chooses under subsection (b) of
this section with access to the construction sites and
records of the recipient when reasonably necessary.
``(d) Regulations.-- The Secretary shall prescribe
regulations necessary to carry out this section. The
regulations shall include--
``(1) a definition of `major capital project' for this
section;
``(2) a requirement that oversight begin during the
preliminary engineering stage of a project, unless the
Secretary finds it more appropriate to begin oversight during
another stage of a project, to maximize the transportation
benefits and cost savings associated with project management
oversight;
``(3) a deadline by which all grant applications for a
fiscal year shall be submitted that is early enough to permit
the Secretary to evaluate all timely applications thoroughly
before making grants;
``(4) a formula based on population, track miles of
railroad, and passenger miles traveled in the prior fiscal
year by which one-half of the funds appropriated for capital
grants for each fiscal year are to be allocated among the
States;
``(5) a requirement that, if a State does not timely apply
for its share of formula grant funds under paragraph (4) of
this subsection, those funds will be made available to other
States under paragraph (6) of this subsection; and
``(6) criteria by which the Secretary will allocate one-
half of the funds appropriated for capital grants for each
fiscal year, including at least projected ridership,
passenger rail and intermodal connections, congestion and air
quality mitigation, underserved communities, and the effect
of the grant on whether existing service will continue.
``Sec. 24404. Use of capital grants to finance first-dollar
liability of grant project.
``Notwithstanding the requirements of section 24402 of this
title, the Secretary of Transportation may approve the use of
capital assistance under this chapter to fund self-insured
retention of risk for the first tier of liability insurance
coverage for rail passenger service associated with the
capital assistance grant, but the coverage may not exceed
$20,000,000 per occurrence or $20,000,000 in aggregate per
year.
``Sec. 24405. Authorization of appropriations.
``There are authorized to be appropriated to the Secretary
of Transportation to make capital financial assistance grants
under this chapter, including administrative expenses, the
following amounts:
``(1) Such sums as may be necessary in year 2.
``(2) Such sums as may be necessary in year 3.
``(3) Such sums as may be necessary in year 4.
``(4) Such sums as may be necessary in year 5.
``(5) Such sums as may be necessary in year 6.''.
(b) Conforming Amendments.--
(1) The table of chapters for title 49, United States Code,
is amended by inserting the following after the item relating
to chapter 243:
``244. INTERCITY PASSENGER RAIL SERVICE CAPITAL ASSISTANCE.....24401''.
(2) The chapter analysis for subtitle V of title 49, United
States Code, is amended by inserting the following after the
item relating to chapter 243:
``244. Intercity Passenger Rail Service Capital Assistance.....24401''.
SEC. 302. FINAL REGULATIONS ON APPLICATIONS BY STATES FOR
DEVELOPMENT GRANTS.
Not later than June 1 of year 1, the Administrator of the
Federal Railroad Administration shall issue final regulations
setting forth procedures for application and minimum
requirements for the award of grants on and after the first
day of year 2, under chapter 244 of title 49, United States
Code.
SEC. 303. AUTHORITY FOR INTERSTATE COMPACTS FOR CORRIDOR
DEVELOPMENT.
(a) Consent to Compacts--
(1) 2 or more States with an interest in a specific form,
route, or corridor of intercity passenger rail service
(including high speed rail service) may enter into interstate
compacts to implement the service, including--
(A) retaining an existing service or commencing a new
service;
(B) assembling rights-of-way; and
(C) performing capital improvements, including-
(i) the construction and rehabilitation of maintenance
facilities;
(ii) the purchase of rolling stock; and
(iii) operational improvements, including communications,
signals, and other systems.
(2) A compact entered into under the authority of this
section shall be submitted to Congress for its consent. It is
the sense of Congress that rapid consent to the Compact is a
priority for the Congress.
(b) Financing.--
(1) An interstate compact established by States under
subsection (a) may provide that, in order to carry out the
compact, the States may--
(A) accept contributions from a unit of State or local
government or a person;
(B) use any Federal or State funds made available for
intercity passenger rail service (except funds made available
for Amtrak);
(C) on such terms and conditions as the States consider
advisable--
(i) borrow money on a short-term basis and issue notes for
the borrowing; and
(ii) issue bonds; and
(D) obtain financing by other means permitted under Federal
or State law.
(2) Bonds and other indebtedness incurred under the
authority of this subsection shall under no circumstances be
backed by the full faith and credit of the United States.
______
By Mr. BINGAMAN (for himself and Mr. Domenici):
S. 1502. A bill to amend title XXI of the Social Security Act to make
a technical correction with respect to the definition of qualifying
State; to the Committee on Finance.
______
By Mr. BINGAMAN (for himself and Mr. Domenici):
S. 1503. A bill to amend title XXI of the Social Security Act to make
a technical correction with respect to the definition of qualifying
State; to the Committee on Finance.
Mr. BINGAMAN. Mr. President, I am introducing two bills today with
Senator Domenici to address a technical problem with H.R. 2854 that
potentially causes problems for the State of New Mexico. We continue to
believe that New Mexico meets the definition of a ``qualifying state''
under the legislative language but introduce these two bills to clarify
that New Mexico is such a State. I ask unanimous consent that the text
of both bills to be printed in the Record.
There being no objection, the bills were ordered to be printed in the
Record, as follows:
S. 1502
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. TECHNICAL CORRECTION RELATING TO THE DEFINITION OF
QUALIFYING STATE UNDER TITLE XXI OF THE SOCIAL
SECURITY ACT.
Effective as if included in the enactment of H.R. 2854,
108th Congress, section 2105(g)(2) of the Social Security
Act, as added by section 1(b) of H.R. 2854, 108th Congress,
as passed by the House of Representatives on July 25,
[[Page S10286]]
2003, is amended by inserting before the period ``, and
includes New Mexico''.
S. 1503
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. TECHNICAL CORRECTION RELATING TO THE DEFINITION OF
QUALIFYING STATE UNDER TITLE XXI OF THE SOCIAL
SECURITY ACT.
Effective as if included in the enactment of H.R. 2854,
108th Congress, section 2105(g)(2) of the Social Security
Act, as added by section 1(b) of H.R. 2854, 108th Congress,
as passed by the House of Representatives on July 25, 2003,
is amended by inserting ``(as determined by rounding to
nearest whole percentage)'' after ``percent'' the first place
it appears.
______
By Mrs. HUTCHISON (for herself, Mr. Lott Mr. Burns, and Ms.
Snowe):
S. 1505. A bill to establish a National Passenger Rail Office, and
for other purposes; to the Committee on Finance.
Mrs. HUTCHISON. Mr. President, I support Amtrak and believe we can
have a viable national passenger rail system. Unfortunately, we are far
from realizing that goal. Outside the Northeast Corridor (NEC), trains
seldom run on time, and service is abysmal. Lateness is often measured
in days, not hours. Several years ago, when the airlines on-time rate
fell below 75 percent it was considered a national emergency. At
Amtrak, on-time records under 50 percent are business as usual. Rail
critics point to low ridership as the reason why we starve the national
system. I contend that starvation is the reason for low ridership.
In the Northeast, a passenger can board a train here at Union Station
and reasonably expect to be in New York City, about 225 miles away, in
less than three hours. If one of my constituents buy a ticket from
Austin to Fort Worth, a trip thirty-eight miles shorter than DC to New
York, the best he can expect is that it will take four and one-half
hours. Of course, the Texas Eagle makes its schedule only 35 percent of
the time, so my constituent will likely waste even more time on this
short trip. An Austin businessman may prefer not to deal with airport
hassles for such a short flight, and he may want to avoid the traffic
on I-35, but the train is not a reasonable option if he has a meeting
in fort worth at a time certain.
This inequity cannot continue. Either we commit to building a rail
transportation alternative for the entire Nation, or we abandon the
pretense of Amtrak and turn it over to the States and private
companies. Our motto for Amtrak is ``National or Nothing!''
Improving service on the national system will require creative
thinking and innovative financing. We cannot continue to fund Amtrak
just enough to keep it going until the next crisis. That is a road map
for failure. Private investment, State participation, and the
cooperation of the freight railroads are all essential to achieving
service upgrades.
In Texas, most passenger trains are forced to operate at less than
thirty miles per hour due to track conditions and freight operations.
The national system needs at least $38 billion in capital improvements
to allow trains to meet a reasonable schedule. Safety improvements
alone will cost $13.8 billion. The Northeast Corridor needs roughly $10
billion to avoid an increased risk of accidents and a systemwide
slowdown. Postponing these upgrades and repairs will only make them
more expensive.
In the 1950s, President Eisenhower convinced the Nation to pay for
the construction of the National Highway System. Fiscal realities have
changed since then, and we must find a way to creatively finance the
rail infrastructure needs of the nation without draining resources from
alternative modes of transportation and other federal priorities.
Municipal bonding and private investment are necessary components of
any plan to restore and improve rail infrastructure.
Making this investment will not only improve passenger service, but
also upgrade freight operations throughout the country. Outside the
NEC, freight and passenger trains must run on the same tracks. In
exchange for an investment in upgrading those tracks, the freight must
agree to allow Amtrak to meet its schedule. I realize the critical role
played by freight railroads in the American economy, and I know this
industry has seen better days. That is why I urge them to work with us
to achieve a mutually beneficial agreement. If we cooperate, freight
railroads will enjoy capital improvements they could not otherwise hope
to afford, as we secure the future of passenger rail in this country.
It can be a win-win situation.
I was deeply disappointed to see Amtrak's proposed 5-year capital
plan call for $9.1 billion in Federal funding, with more than $8
billion spent in the Northeast Corridor. The national system must
receive more than the crumbs left over after the needs of the NEC have
been met.
We will never have a better opportunity to accomplish this goal than
right now. That is why I am introducing legislation along with Senators
Lott, Burns, Snowe and Smith to begin to bring the national system up
to Northeast Corridor standards. My bill will strengthen the Federal
role by creating a National Passenger Rail Office at DOT, responsible
for coordinating with States and the railroads to assure the national
system receive the improvements necessary to operate an effective
inter-city passenger rail system. The legislation authorizes $12
billion for Amtrak in operating assistance. Amtrak will be required to
bring the national system up to an 80 percent on-time arrival rate.
Once a route has enjoyed reasonable on-time performance, it can be
fairly evaluated from a cost-benefit perspective. 80 percent is a
modest goal, but it is not going to be easy to attain. If Amtrak is
unable to meet performance requirements on a route, that route should
be opened for bidding by other operators.
If we fail to enact real change in this reauthorization bill, we may
run out of chances to obtain the elusive intermodal transportation
system we profess to seek. We must decide whether we want to create a
viable national system, or settle for a single rail corridor providing
ever-deteriorating service to only one sector of the country. I will
not support any proposal that does not put the national system on par
with the Northeast Corridor. Today marks a new beginning, or the
beginning of the end. It's national or nothing.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1505
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``American Rail Equity Act of
2003''.
SEC. 2. AMENDMENT OF TITLE 49, UNITED STATES CODE.
Except as otherwise expressly provided, whenever in this
Act an amendment or repeal is expressed in terms of an
amendment to, or a repeal of, a section or other provision,
the reference shall be considered to be made to a section or
other provision of title 49, United States Code.
SEC. 3. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Amendment of title 49, United States Code.
Sec. 3. Table of contents.
TITLE I--NATIONAL PASSENGER RAIL OFFICE
Sec. 101. Establishment of National Passenger Rail Office.
TITLE II--NATIONAL PASSENGER RAIL SYSTEM
Subtitle A--National Passenger Rail System
Sec. 201. National passenger rail system.
Subtitle B--High-speed Corridors for Passenger Rail
Sec. 211. Interstate railroad passenger high-speed transportation
policy.
Sec. 212. High-speed rail corridor planning.
Sec. 213. Assistance for establishment of corridors for high-speed rail
service.
TITLE III--RAIL INFRASTRUCTURE IMPROVEMENT
Subtitle A--Rail Infrastructure Finance Corporation
Sec. 301. Establishment of corporation.
Sec. 302. Board of directors.
Sec. 303. Officers and employees.
Sec. 304. Nonprofit and nonpolitical nature of the corporation.
Sec. 305. Purpose and activities of corporation.
Sec. 306. Report to Congress.
Sec. 307. Administrative matters.
Sec. 308. Rail infrastructure finance trust.
Subtitle B--Rail Development Grant Program
Sec. 311. National system improvement grant program.
[[Page S10287]]
Sec. 312. Grant program requirements and limitations.
Subtitle C--Rail Infrastructure Tax Credit Bonds
Sec. 321. Credit to holders of qualified rail infrastructure bonds.
Sec. 322. Annual report by Treasury on rail infrastructure trust
account.
Sec. 323. Issuance of regulations.
Sec. 324. Effective date.
TITLE IV--RAIL INFRASTRUCTURE AND INTERMODAL TRANSPORTATION
Sec. 401. Intermodal transportation policy.
Sec. 402. State rail plans.
TITLE I--NATIONAL PASSENGER RAIL OFFICE
SEC. 101. ESTABLISHMENT OF NATIONAL PASSENGER RAIL OFFICE.
(a) Establishment.--(1) Chapter 1 of title 49, United
States Code, is amended by inserting after section 107 the
following new section:
``Sec. 107A. National Passenger Rail Office
``(a) In General.--The National Passenger Rail Office is an
office in the Department of Transportation.
``(b) Head of Office.--The head of the Office is the
Director of the National Passenger Rail Office who is
appointed by the President, by and with the advice and
consent of the Senate.
``(c) Administrative Matters.--
``(1) Administrative location.--The Office is located
within the Federal Transit Administration for administrative
purposes.
``(2) Supervision.--The Director of the National Passenger
Rail Office reports directly to the Administrator of the
Federal Transit Administration.
``(d) Duties.--The duties of the Office are as follows:
``(1) To carry out the responsibilities of the Office with
respect to the national passenger railroad system under
chapter 251 of this title, including--
``(A) the allocation of funds to the National Passenger
Rail Corporation for the operations of the Corporation under
section 25005 of this title;
``(B) the responsibilities for the national passenger
railroad system set forth under section 25006 of this title;
``(C) the responsibilities for the national passenger
railroad system route map set forth under section 25007 of
this title; and
``(D) the quarterly identification of infrastructure
improvement projects for the national passenger railroad
system under section 25008 of this title.
``(2) To carry out such other responsibilities as may be
provided by the Secretary of Transportation or by law.
``(e) Funding of Administrative Expenses.--The amount
available under section 25010(c)(1) of this title each fiscal
year shall be available for the administrative costs of the
Office in such fiscal year.''.
(2) The table of section at the beginning of such chapter
is amended by inserting after the item relating to section
107 the following new item:
``107A. National Passenger Rail Office.''.
(b) Rate of Pay of Director of Office.--Section 5315 of
title 5, United States Code, is amended by adding at the end
the following:
``Director, National Passenger Rail Office.''.
TITLE II--NATIONAL PASSENGER RAIL SYSTEM
Subtitle A--National Passenger Rail System
SEC. 201. NATIONAL PASSENGER RAIL SYSTEM.
(a) In General.--Part C of subtitle V of title 49, United
States Code, is amended by adding at the end the following
new chapter:
``CHAPTER 251--NATIONAL PASSENGER RAIL SYSTEM
``Sec.
``25001. Purpose.
``25002. National passenger rail system.
``25003. Designation of Amtrak as National Passenger Rail Corporation.
``25004. National Passenger Rail Corporation: responsibility for
national passenger rail system; status.
``25005. National Passenger Rail Office: allocation of operating funds
to National Passenger Rail Corporation.
``25006. National Passenger Rail Office: responsibility for national
passenger rail system.
``25007. National Passenger Rail Office: responsibility for national
passenger rail system route map.
``25008. National Passenger Rail Office: identification of rail
infrastructure improvement projects for national
passenger rail system.
``25009. Rail infrastructure improvements grant program.
``25010. Construction with other law; preservation and allocation of
authorities.
``25011. Authorizations.
``Sec. 25001. Purpose
``The purpose of this chapter is to improve rail passenger
service in the United States by--
``(1) redesignating Amtrak as the National Passenger Rail
Corporation; and
``(2) reallocating the responsibilities of Amtrak for
intercity and commuter rail passenger transportation (and
related transportation) among the National Passenger Rail
Corporation and the National Rail Passenger Office so that--
``(A) the National Passenger Rail Corporation retains the
responsibilities of Amtrak for the provision of such
transportation; and
``(B) the National Rail Passenger Office assumes the
responsibilities of Amtrak for the equipment and facilities
of Amtrak and for the route map of the national passenger
rail system.
``Sec. 25002. National passenger rail system
``(a) In General.--The system of intercity rail passenger
transportation (and related transportation), known as the
national passenger rail system, includes--
``(1) the segment of the Northeast Corridor between Boston,
Massachusetts, and Washington, D.C.;
``(2) rail corridors that have been designated by the
Secretary of Transportation as high-speed corridors, but only
after they have been improved to permit operation of high-
speed service;
``(3) long-distance routes of more than 750 miles between
endpoints operated by Amtrak as of the date of enactment of
the American Rail Equity Act of 2003; and
``(4) short-distance corridors or routes operated by
Amtrak.
``(b) Transportation Requested by States, Authorities, and
Other Persons.--
``(1) Contracts for transportation.--Amtrak and a State, a
regional or local authority, or another person may enter into
a contract for Amtrak to operate an intercity rail service or
route not included in the national rail passenger
transportation system upon such terms as the parties thereto
may agree.
``(2) Discontinuance.--Upon termination of a contract
entered into under this subsection, or the cessation of
financial support under such a contract, Amtrak may
discontinue such service or route, notwithstanding any other
provision of law.
``Sec. 25003. Designation of Amtrak as National Passenger
Rail Corporation
``Effective as of the date of the enactment of the American
Rail Equity Act of 2003, the portion of Amtrak that is
responsible for the operations relating to intercity rail
passenger transportation and commuter rail passenger
transportation (and related transportation) specified in
section 25004(b) of this title is hereby redesignated as the
National Passenger Rail Corporation.
``Sec. 25004. National Passenger Rail Corporation:
responsibility for national passenger rail system; status
``(a) Termination of For-Profit Status.--The National
Passenger Rail Corporation shall not be required to be
operated or managed as a for-profit corporation.
``(b) Limitation of Responsibilities to Transportation and
Certain Maintenance Facilities.--The Corporation shall have
responsibility only for the following:
``(1) Operations relating to the provision of intercity
rail passenger transportation.
``(2) Operations relating to the provision of commuter rail
passenger transportation.
``(3) Operations relating to the transportation of mail and
express.
``(4) Operations relating to auto-ferry transportation.
``(5) Marketing relating to transportation provided under
paragraphs (1) through (4).
``(6) Facilities for the maintenance of the rolling stock
necessary to provide transportation under paragraphs (1)
through (4).
``(c) Transfer of Other Assets and Responsibilities to
National Passenger Rail Office.--The Corporation shall
transfer to the National Passenger Rail Office jurisdiction
of all equipment and facilities of the Corporation as of the
date of the enactment of the American Rail Equity Act of 2003
that are not the responsibility of the Corporation under
subsection (b).
``Sec. 25005. National Passenger Rail Office: allocation of
operating funds to National Passenger Rail Corporation
``(a) In General.--The National Passenger Rail Office
shall, from amounts available for a fiscal year under section
25010(c)(2)(A) of this title, allocate amounts to the
National Passenger Rail Corporation in order to permit the
Corporation carry out operations for the provision of
transportation under section 25004(b) of this title.
``(b) Allocation on Route-By-Route Basis.--The Office shall
allocate amounts to the Corporation under subsection (a) on a
route-by-route basis.
``(c) Oversight of Expenditures.--The Office shall oversee
and review expenditures of amounts allocated to the
Corporation under subsection (a) in order to ensure that the
Corporation is utilizing amounts so allocated in an
appropriate manner.
``Sec. 25006. National Passenger Rail Office: responsibility
for national passenger rail system
``(a) Northeast Corridor Equipment and Facilities.--The
National Passenger Rail Office shall have responsibility for
all equipment and facilities relating to the Northeast
Corridor route that are transferred to the Office under
section 25003(c) of this title.
``(b) Pennsylvania Station, New York.--The Office shall
treat Pennsylvania Station, New York, and the electric power
generation facilities at Pennsylvania Station for the
Northeast Corridor route, as a part of the Northeast Corridor
route under subsection (a).
``(c) Other Equipment and Facilities.--
``(1) Operation through lease required.--The Office shall
provide for the operation of any equipment and facilities
transferred to the Office under section 25004(c) of this
title that are not the responsibility of the Office under
subsections (a) and (b) through the lease of such equipment
and facilities to 1 or more appropriate persons or entities.
[[Page S10288]]
``(2) Full and open competition.--The Office shall identify
any lessee of equipment and facilities under paragraph (1)
utilizing procedures for full and open competition.
``Sec. 25007. National Passenger Rail Office: responsibility
for national passenger rail system route map
``(a) In General.--The National Passenger Rail Office shall
have responsibility for the modification of routes of the
National Passenger Rail Corporation.
``(b) Failure of On-Time Performance.--
``(1) Surveys of on-time performance.--Not later than 12
months after the date of the enactment of this American Rail
Equity Act of 2003 and every year thereafter, the Office
shall determine for each route of the Corporation whether the
Corporation met the on-time performance goal for such route
during the most recent performance period.
``(2) Contingent requirement to preserve routes.--The
Office may not discontinue a route of the Corporation as in
effect on the date of the enactment of that Act unless the
Office determines under paragraph (1) in any year that the
Corporation did not meet the on-time performance goal for
such route in 3 out of the 5 years immediately preceding the
year in which the determination is made.
``(3) Transportation rights following failure on on-time
performance.--
``(A) Forfeiture of rights.--If the Office determines (in
the determination under paragraph (2) that is required to be
completed 5 years after the date of the enactment of the
American Rail Equity Act of 2003) that the Corporation did
not meet the on-time performance goal for a route of the
Corporation during the most recent performance period, the
Corporation shall forfeit to the Office the right to provide
passenger rail transportation on such route (including the
right to use the tracks of such route to provide such
transportation).
``(B) Lease of forfeited rights.--The Office shall lease to
an appropriate person or entity the right to provide
passenger rail transportation on a route (including the right
to use the tracks of such route to provide such
transportation) that is forfeited under subparagraph (A). The
Office shall identify any lessee of such right to provide
rail passenger transportation on a route utilizing procedures
for full and open competition.
``(C) Transportation.--A person or entity leasing the right
to provide rail passenger transportation on a route under
subparagraph (B) shall provide such rail passenger
transportation on the route as is specified by the Office in
the lease under subparagraph (B). The rail passenger
transportation so specified for a route shall be equivalent
to the rail passenger transportation scheduled to provided by
the Corporation on the route before the forfeiture of the
right to provide transportation on the route under
subparagraph (A).
``(D) Assistance.--A person or entity providing rail
passenger transportation on a route under subparagraph (B)
shall be entitled to such assistance under this part, and
under any other provision of law, for the provision of such
rail passenger transportation as would otherwise have been
provided to the Corporation if the Corporation had provided
such rail passenger transportation on such route.
``(E) Bonus.--If the Office determines that a person or
entity providing rail passenger transportation on a route
under subparagraph (B) has met the on-time performance goal
for that route during the most recent performance period, the
Office may pay such person or entity a bonus in an amount
determined appropriate by the Office.
``(4) Failure of on-time performance based on lack of
access.--
``(A) Notice.--The Corporation shall notify the Office of
each allegation of the Corporation that the failure of the
Corporation to meet the on-time performance goal for a route
is due to the denial of access to the tracks of the route by
the rail carrier owning the route.
``(B) Transmittal.--Amtrak shall transmit to the Surface
Transportation Board each allegation received by the Office
under subparagraph (A).
``(C) Investigation.--The Board shall investigate each
allegation transmitted under subparagraph (B).
``(D Civil penalties.--If as a result of an investigation
under subparagraph (C) the Board verifies an allegation under
subparagraph (A), the Board may impose a civil penalty on the
rail carrier that is the subject of the allegation in such
amount as the Board considers appropriate.
``(5) Definitions.--In this subsection:
``(A) On-time performance goal.--Within 12 months after the
date of enactment of the American Rail Equity Act of 2003,
the National Rail Office, after consulation with Amtrak,
shall establish criteria for determining what attributes
characterize an `on-time performance goal'. In the case of a
route, the criteria shall be based upon at least 80 percent
of the trains scheduled to provide passenger rail
transportation on the route during the most recent
performance period arriving not later than their scheduled
arrival time.
``(B) Performance period.--The term `performance period'
means the 12-month period ending on the date a determination
is made regarding whether the trains scheduled to provide
passenger rail transportation on a route met their on-time
performance goal.
``(c) Additional Routes.--
``(1) Additional routes.--The Office may establish 1 or
more additional routes for the national rail passenger system
if the Office determines pursuant to the study under section
502 of the American Rail Equity Act of 2003 that the
establishment of such route or routes is feasible and
advisable.
``(2) Corridors for high-speed rail service.--The Office
may add to the national passenger rail system any corridor
for high-speed rail service established pursuant to section
26104 of this title.
``Sec. 25008. National Passenger Rail Office: identification
of rail infrastructure improvement projects for national
passenger rail system
``(a) Identification of Rail Infrastructure Improvement
Projects.--
``(1) In general.--The National Passenger Rail Office
shall, on a quarterly basis, identify the rail infrastructure
improvement projects that are advisable to improve or enhance
the operations of the national passenger rail system,
including operations in the Northeast Corridor.
``(2) Nature of improvements.--The infrastructure
improvements covered by rail infrastructure improvement
projects under paragraph (1) may include--
``(A) track and other capital improvements;
``(B) the acquisition of rights-of-way; and
``(C) such other improvements as the Office considers
advisable to improve or enhance the operations of the
national passenger rail system.
``(3) State input.--Recommendations of States for projects
for identification under paragraph (1) shall be submitted to
the National Passenger Rail Office in accordance with such
requirements as the Director of the Office may prescribe.
``(b) Information on Potential Projects.--A rail carrier
seeking to carry out a rail infrastructure improvement
project for purposes of subsection (a) shall submit to the
Office such information on the project as the Director of the
Office shall require, including--
``(1) the nature of the infrastructure improvements under
the project;
``(2) the cost of the infrastructure improvements; and
``(3) an assessment of the extent to which the
infrastructure improvements will improve or enhance the
operations of the national passenger rail system.
``(c) Reports to National Rail Transportation Financing
Corporation.--
``(1) In general.--The Director of the Office shall, on a
quarterly basis, submit to the National Rail Transportation
Financing Corporation a report setting forth the rail
infrastructure improvement projects identified under
subsection (a) during the preceding quarter.
``(2) Report elements.--Each report under paragraph (1)
shall contain such information as the Director of the Office
and the Corporation jointly consider appropriate in order--
``(A) to fully inform the Corporation of the nature, cost,
benefits, and priority of each rail infrastructure
improvement project identified in such report; and
``(B) to permit the Corporation to evaluate the
advisability of making a grant for each such rail
infrastructure improvement project under 306 of the American
Rail Equity Act of 2003.
``Sec. 25009. Rail infrastructure improvements grant program
``The National Passenger Rail Office may make grants for
rail infrastructure improvement projects identified under
section 25008 of this title.
``Sec. 25010. Construction with other law; preservation and
allocation of authorities
``(a) Construction.--The provisions of this chapter
supersede any provisions of this part, and any other
provisions of law, that are inconsistent with the provisions
of this chapter.
``(b) Preservation of Authorities.--
``(1) National passenger rail office.--For purposes of
carrying out its responsibility under this chapter, including
the operation and maintenance of facilities under section
25005(c) of this title, the National Passenger Rail Office
may utilize any power or authority of Amtrak under this part,
or under any other provision of law, to the extent that such
power or authority is not inconsistent with a provision of
this chapter, as if the Office were Amtrak.
``(2) National passenger rail authority.--For purposes of
carrying out its responsibilities under section 25004(b) of
this title, the National Passenger Rail Corporation may
utilize any power or authority of Amtrak under this part, or
under any other provision of law, to the extent that such
power or authority is not inconsistent with a provision of
this chapter, as if the Corporation were Amtrak.
``(c) Memorandum of Understanding.--The Office and the
Corporation shall, subject to the supervision and concurrence
of the Administrator of the Federal Transit Administration,
enter into a memorandum of understanding allocating among the
Office and the Corporation the authorities, powers, and
responsibilities of Amtrak under this part, and under any
other provision of law, in a manner consistent with the
provisions of this chapter.
``(d) References.--
``(1) National passenger rail authority.--Any reference to
Amtrak in any law, regulation, map, document, record, or
other paper of the United States with respect to the
performance of any function or activity that is retained by
the National Passenger
[[Page S10289]]
Rail Corporation under this chapter shall be considered to be
a reference to the National Passenger Rail Corporation.
``(2) National passenger rail office.--Any reference to
Amtrak in any law, regulation, map, document, record, or
other paper of the United States with respect to the
performance of any function or activity that is assumed by
the National Passenger Rail Office under this chapter shall
be considered to be a reference to the National Passenger
Rail Office.
``Sec. 25011. Authorizations
``(a) In General.--There are authorized to be appropriated
$2,000,000,000 for each of fiscal years 2004 through 2009 for
the operations of the National Passenger Rail Corporation
under this chapter.
``(b) Allocations.--To the extent provided in
appropriations Acts, $3,000,000 of the amount appropriated
pursuant to the authorization of appropriations in subsection
(a) in any fiscal year shall be available for the National
Passenger Rail Office for the administrative expenses of the
Office in such fiscal year.''.
(b) Clerical Amendment.--The table of chapters at the
beginning of subtitle V of title 49, United States Code, is
amended by inserting after the item relating to chapter 249
the following new item:
``251. NATIONAL PASSENGER RAILROAD SYSTEM..................25001''.....
Subtitle B--High-Speed Corridors for Passenger Rail
SEC. 211. INTERSTATE RAILROAD PASSENGER HIGH-SPEED
TRANSPORTATION POLICY.
(a) In General.--Chapter 261 is amended by inserting before
section 26101 the following:
``Sec. 26100. Policy.
``The Congress declares that it is the policy of the United
States that designated high-speed railroad passenger
transportation corridors are the building blocks of an
interconnected interstate railroad passenger system that
serves the entire Nation.''.
(b) Conforming Amendment.--The chapter analysis for chapter
261 is amended by inserting before the item relating to
section 26101 the following:
``26100. Policy''.
SEC. 212. HIGH-SPEED RAIL CORRIDOR PLANNING.
(a) In General.--Section 26101(a) is amended to read as
follows:
``(a) Planning.--
``(1) In general.--The Secretary of Transportation shall
provide planning assistance to States or group of States and
other public agencies promoting the development of high-speed
rail corridors designated by the Secretary under section
104(d) of title 23.
``(2) Secretary may provide direct or financial
assistance.--The Secretary may provide planning assistance
under paragraph (1) directly or by providing financial
assistance to a public agency or group of public agencies to
undertake planning activities approved by the Secretary. Not
less than 20 percent of the publicly financed planning costs
associated with projects assisted under this chapter shall
come from non-Federal sources. State matching contributions
may not be derived, directly or indirectly, from Federal
funds.''.
(b) Conforming and Other Amendments to Section 26101.--
Section 26101 is further amended--
(1) by striking subsection (c)(2) and inserting the
following:
``(2) the extent to which the proposed planning focuses on
high-speed rail systems, giving a priority to systems which
will achieve sustained speeds of 125 miles per hour or
greater and projects involving dedicated rail passenger
rights-of-way;'';
(2) by inserting ``and'' after the semicolon in subsection
(c)(12);
(3) by striking ``completed; and'' in subsection (c)(13)
and inserting ``completed.''; and
(4) by striking subsection (c)(14).
(c) Conforming Amendment.--Section 26105(2)(A) is amended
by striking ``more than 125 miles per hour;'' and inserting
``90 miles per hour or more;''.
(d) Financial Assistance To Include Loans and Loan
Guarantees.--Section 26105(1) is amended by inserting
``loans, loan guarantees,'' after ``contracts,''.
(e) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Transportation such
sums as may be necessary for each of fiscal years 2004
through 2008 to provide planning assistance under section
26101(a) of title 49, United States Code, as amended by
subsection (a).
SEC. 213. ASSISTANCE FOR ESTABLISHMENT OF CORRIDORS FOR HIGH-
SPEED RAIL SERVICE.
(a) In General.--Chapter 261 of title 49, United States
Code, is amended--
(1) by redesignating sections 26104 and 26105 as sections
26105 and 26106, respectively; and
(2) by inserting after section 26103 the following new
section 26104:
``Sec. 26104. Additional support for establishment of high-
speed rail corridors
``(a) Purpose.--The purpose of this section is to
facilitate the establishment of a national network of
corridors for high-speed rail service.
``(b) Corporation To Make Grants.--The National Rail
Transportation Financing Corporation under title III of the
American Rail Equity Act of 2003 may make grants of financial
assistance to individual States or compacts of States for the
establishment of corridors for high-speed rail service.
``(c) Application.--A State or compact of States seeking a
grant under this section shall submit to the Corporation an
application therefor in such form, and including such
information, as the Corporation shall require.
``(d) Matching Requirement.--A State or compact of States
receiving a grant under this section for activities relating
to the establishment of a corridor for high-speed rail
service shall bear not less than 80 percent of the costs of
the activities funded by the grant.
``(e) Use of Grant.--A State or compact of States receiving
a grant under this section shall use the grant amount for
purposes of the establishment of 1 or more corridors for
high-speed rail service, including the purchase of rights-of-
way for the provision of such service.
``(f) Treatment of Corridors.--The National Passenger Rail
Office may treat a corridor established pursuant to this
section as part of the national passenger rail system under
chapter 251 of this title.
``(g) Construction With Other Assistance Corporation.--The
authority to make grants under this section for the
establishment of corridors for high-speed rail service is in
addition to any other authority in this chapter, or under any
other provision of law, relating to the provision of
assistance for the establishment of corridors for high-speed
rail service.
``(h) Funding.--Amounts derived from the issuance of
qualified rail transportation bonds under title III of the
American Rail Equity Act of 2003 and section 54 of the
Internal Revenue Code of 1986 shall be available for grants
under this section.''.
(b) Clerical Amendment.--The table of sections at the
beginning of chapter 261 of such title is amended by striking
the items relating to section 26104 and 26105 and inserting
the following new items:
``26104. Additional support for establishment of high-speed rail
corridors.
``26105. Authorization of appropriations.
``26106. Definitions.''.
TITLE III--RAIL INFRASTRUCTURE IMPROVEMENT
Subtitle A--Rail Infrastructure Finance Corporation
SEC. 301. ESTABLISHMENT OF CORPORATION.
There is established a nonprofit corporation, to be known
as the ``Rail Infrastructure Finance Corporation''. The Rail
Infrastructure Finance Corporation is not an agency or
establishment of the United States Government. The
Corporation shall be subject to the provisions of this
subtitle, and, to the extent consistent with this section, to
the laws of the State of Delaware applicable to corporations
not for profit.
SEC. 302. BOARD OF DIRECTORS.
(a) Appointment.-- The Rail Infrastructure Finance
Corporation shall have a Board of Directors consisting of 9
members appointed by the President, by and with the advice
and consent of the Senate. Not more than 5 members of the
Board may be members of the same political party.
(b) Membership Qualifications.--
(1) In general.--The 9 members of the Board shall be
appointed from among citizens of the United States (not
regular full-time employees of the United States) who are
eminent in the fields of rail transportation, rail financing,
and intermodal transportation planning, and the financing and
management of large-scale, long-term public-private
cooperative projects.
(2) Representation of specific interests.--Of the 9 members
of the Board, 8 of the members shall be selected as follows:
(A) Two members from among individuals who represent the
interests of freight rail transportation.
(B) One member from among individuals who represent the
interests of passenger rail transportation.
(C) One member from among individuals who represent the
interests of the States.
(D) One member from among individuals who represent the
interests of intercity passenger rail users.
(E) One member from among individuals who represent the
interests of organized labor.
(F) Two members from among persons who are involved in
finance.
(c) Incorporation.--The members initially appointed to the
Board of Directors shall serve as incorporators and shall
take whatever actions are necessary to establish the
Corporation under the laws of Delaware.
(d) Terms of Office.--Members of the Board shall be
appointed for terms of 6 years, except that of the members
first appointed, the President shall designate 2 to serve a
term of 1 year and 2 to serve a term of 3 years. No member of
the Board shall be eligible to serve in excess of 2
consecutive full terms.
(e) Vacancies.--A member of the Board appointed to fill a
vacancy occurring before the expiration of the term for which
the member's predecessor was appointed shall serve only for
the remainder of the term. Upon the expiration of a member's
term, the member shall continue to serve until a successor is
appointed.
(f) Attendance Required.--Members of the Board shall attend
not less than 50 percent of all duly convened meetings of the
Board in any calendar year. A member who fails to meet the
requirement of the preceding sentence shall forfeit
membership and the President shall appoint a new member to
fill the
[[Page S10290]]
resulting vacancy not later than 30 days after such vacancy
is determined by the Chairman of the Board.
(g) Election of Chairman and Vice Chairman.--Members of the
Board shall annually elect 1 of their members to be Chairman
and elect 1 or more of their members as a Vice Chairman or
Vice Chairmen.
(h) Compensation.--The members of the Board shall not, by
reason of such membership, be considered to be officers or
employees of the United States. They shall, while attending
meetings of the Board or while engaged in duties related to
such meetings or other activities of the Board pursuant to
this title, be entitled to receive compensation at the rate
of $150 per day, including traveltime. No Board member shall
receive compensation of more than $10,000 in any fiscal year.
While away from their homes or regular places of business,
Board members shall be allowed travel and actual, reasonable,
and necessary expenses.
(i) Meetings Open to Public.--All meetings of the Board of
Directors of the Corporation, including any committee of the
Board, shall be open to the public under such terms,
conditions, and exceptions as the Board may establish.
SEC. 303. OFFICERS AND EMPLOYEES.
(a) In General.--The Rail Infrastructure Finance
Corporation shall have a President, and such other officers
as may be named and appointed by the Board for terms and at
rates of compensation fixed by the Board. No officer or
employee of the Corporation may be compensated by the
Corporation at an annual rate of pay that exceeds the rate of
basic pay for level I of the Executive Schedule under section
5312 of title 5, United States Code. No individual other than
a citizen of the United States may be an officer of the
Corporation. Subject to section 302(h), no officer of the
Corporation may receive any salary or other compensation
(except for compensation for services on boards of directors
of other organizations that do not receive funds from the
Corporation, on committees of such boards, and in similar
activities for such organizations) from any sources other
than the Corporation for services rendered during the period
of his or her employment by the Corporation. Service by any
officer on boards of directors of other organizations, on
committees of such boards, and in similar activities for such
organizations shall be subject to annual advance approval by
the Board and subject to the provisions of the Corporation's
Statement of Ethical Conduct. All officers shall serve at the
pleasure of the Board.
(b) Nonpartisan Nature of Appointments.--Except as provided
in the second sentence of section 302(a), no political test
or qualification shall be used in selecting, appointing,
promoting, or taking other personnel actions with respect to
officers, agents, and employees of the Corporation.
SEC. 304. NONPROFIT AND NONPOLITICAL NATURE OF THE
CORPORATION.
(a) Stock.--The Rail Infrastructure Finance Corporation
shall have no power to issue any shares of stock, or to
declare or pay any dividends.
(b) No Private Benefit.--No part of the income or assets of
the Corporation shall inure to the benefit of any director,
officer, employee, or any other individual except as salary
or reasonable compensation for services.
(c) Political Activity Prohibited.--The Corporation may not
contribute to or otherwise support any political party or
candidate for elective public office.
(d) Conflicts of Interest.--No director, officer, or
employee of the Corporation shall in any manner, directly or
indirectly, participate in the deliberation upon or the
determination of any question affecting his or her personal
interests or the interests of any corporation, partnership,
or organization in which he or she is directly or indirectly
interested. Board members shall recuse themselves from Board
decisions that directly affect either them or entities they
represent regarding grants and other assistance provided to
States by the Board.
SEC. 305. PURPOSE AND ACTIVITIES OF CORPORATION.
(a) Purpose.--The Rail Infrastructure Finance Corporation
shall, through the issuance of qualified rail infrastructure
bonds in accordance with section 54 of the Internal Revenue
Code of 1986 and this title, provide financial support for
rail transportation capital projects under subtitle B.
(b) Bond Issuance Corporation.--
(1) In general.--In order to carry out its purposes, the
Corporation is authorized to issue qualified rail
infrastructure bonds (as defined in section 54(e) of the
Internal Revenue Code of 1986) during the 6-year period
beginning October 1, 2003.
(2) Limitation.--The total face amount of the bonds
outstanding under paragraph (1) at any time may not exceed
$48,000,000,000.
(3) No federal guarantee.--
(A) Obligations insured by the corporation.--No obligation
that is insured, guaranteed, or otherwise backed by the
Corporation shall be deemed to be an obligation that is
guaranteed by the full faith and credit of the United States.
(B) Special rule.--This paragraph shall not affect the
determination of whether such obligation is guaranteed for
purposes of Federal income taxes.
(C) Securities offered by the corporation.--No debt or
equity securities of the Corporation shall be deemed to be
guaranteed by the full faith and credit of the United States.
(4) Authority.--To carry out the foregoing purposes and
engage in the foregoing activities, the Corporation shall
have the usual powers conferred upon a nonprofit corporation
under the laws of the State of Delaware.
(c) Federal Assistance.--The Corporation shall be eligible
to receive discretionary grants, contracts, gifts,
contributions, or technical assistance from any department or
agency of the Federal Government, but only to the extent
permitted by law and to the extent necessary to carry out the
purpose set forth in subsection (a) and the activities
described in subsection (b).
SEC. 306. REPORT TO CONGRESS.
(a) In General.--On or before May 15 of each year, the Rail
Infrastructure Finance Corporation shall submit an annual
report for the fiscal year ending on September 30 of the
preceding year to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives. The report shall include a comprehensive and
detailed report of the Corporation's operations, activities,
financial condition, and accomplishments under this title and
such recommendations as the Corporation deems appropriate.
(b) Availability for Testimony.--The officers and directors
of the Corporation shall be available to testify before those
committees with respect to such report, the report of any
audit made by the Comptroller General pursuant to section
307(d)(3), or any other matter which such committees may
determine.
SEC. 307. ADMINISTRATIVE MATTERS.
(a) Budget.--The Rail Infrastructure Finance Corporation
shall establish an annual budget for the Corporation,
including the Rail Infrastructure Investment Account under
subsection (c).
(b) Implementation Plan.--
(1) Requirement for plan.--The Corporation shall conduct a
study and prepare a plan on how the Corporation can best
achieve the purposes and fulfill the requirements of this
title.
(2) Consultation.--In preparing the plan, the Corporation
may consult with the Secretary of Transportation, the
Secretary of the Treasury, and representatives of State and
local governments.
(3) Other requirements.--The plan, which shall be based on
the conclusions resulting from the study conducted under
paragraph (1), shall be submitted by the Corporation to the
Committee on Commerce, Science, and Transportation of the
Senate and the Committee on Transportation and Infrastructure
of the House of Representatives not later than January 31,
2004. Unless directed otherwise by law, the Corporation shall
implement the plan during the first fiscal year beginning
after the fiscal year in which the plan is submitted to
Congress.
(c) Rail Infrastructure Investment Account.--
(1) Establishment.--The Board of Directors for the
Corporation shall establish an account to be known as the
Rail Infrastructure Investment Account.
(2) Deposit of bond proceeds.--The Corporation shall
deposit the proceeds of sales of any bonds issued under
section 54 of the Internal Revenue Code of 1986 into the
Account.
(3) Deposit of non-federal contributions.--The Board shall
deposit all contributions received under section 304(a) into
the Account.
(4) Disbursements.--The Board shall make available and may
disburse, at the beginning of fiscal year 2004 and of each
succeeding fiscal year thereafter, such funds as may be
available for obligation and expenditure from the Account.
(5) Use of account funds.--Funds in the Account--
(A) shall be used by the Corporation for investment
purposes through the trust established under section 308 to
generate an amount sufficient--
(i) to repay the principal of the bonds at their maturity;
and
(ii) to pay the administrative costs of the Corporation and
the Rail Infrastructure Finance Trust under section 308; and
(B) shall, to the extent of the net spendable proceeds in
the account, be held in the Rail Infrastructure Finance Trust
established under section 308 and be available for
distribution as grants of financial assistance under subtitle
B.
(6) Net spendable proceeds defined.--In this subsection,
the term `net spendable proceeds', with respect to the Rail
Infrastructure Investment Account, means the amount equal to
the excess of--
(A) the total amount in such Account, over
(B) the amount in such Account that is needed for uses
under paragraph (5)(A).
(d) Records and Audit.--
(1) In general.--The account of the Corporation shall be
audited annually in accordance with generally accepted
auditing standards by independent certified public
accountants or independent licensed public accountants
certified or licensed by a regulatory authority of a State or
other political subdivision of the United States. The audits
shall be conducted at the place or places where the accounts
of the Corporation are normally kept. All books, accounts,
financial records, reports, files, and all other papers,
things, or property belonging to or in use by the Corporation
and necessary to facilitate the audits shall be made
available to the person or persons conducting the audits; and
full facilities for verifying transactions with the
[[Page S10291]]
balances or securities held by depositories, fiscal agents
and custodians shall be afforded to such person or persons.
(2) Audit report.--The report of each such independent
audit shall be included in the annual report required by
section 306. The audit report shall set forth the scope of
the audit and include such statements as are necessary to
present fairly the Corporation's assets and liabilities,
surplus or deficit, with an analysis of the changes therein
during the year, supplemented in reasonable detail by a
statement of the Corporation's income and expenses during the
year, and a statement of the sources and application of
funds, together with the independent auditor's opinion of
those statements.
(3) Audit by comptroller general.--The financial
transactions of the Corporation may be audited by the General
Accounting Office in accordance with the principles and
procedures applicable to commercial corporate transactions
and under such rules and regulations as may be prescribed by
the Comptroller General of the United States. Any such audit
shall be conducted at the place or places where accounts of
the Corporation are normally kept. The representative of the
General Accounting Office shall have access to all books,
accounts, records, reports, files, and all other papers,
things, or property belonging to or in use by the Corporation
pertaining to its financial transactions and necessary to
facilitate the audit, and they shall be afforded full
facilities for verifying transactions with the balances or
securities held by depositories, fiscal agents, and
custodians. All such books, accounts, records, reports,
files, papers and property of the Corporation shall remain in
possession and custody of the Corporation.
(4) GAO report to congress.--A report of each audit under
paragraph (3) shall be made by the Comptroller General to the
Committee on Commerce, Science, and Transportation of the
Senate and the Committee on Transportation and Infrastructure
of the House of Representatives. The report shall contain
such comments and information as the Comptroller General
considers necessary to inform the committees of the financial
operations and condition of the Corporation, together with
such recommendations with respect thereto as he may deem
advisable. The report shall also show specifically any
program, expenditure, or other financial transaction or
undertaking observed in the course of the audit, which, in
the opinion of the Comptroller General, has been carried on
or made without authority of law. A copy of each report shall
be furnished to the President, to the Secretary, and to the
Corporation at the time submitted to the Congress.
(5) Accounting principles.--
(A) Applicable principles.--Not later than 1 year after the
date of the enactment of this Act, the Corporation shall
develop accounting principles which shall be used uniformly
by all entities receiving funds under this title, taking into
account organizational differences among various categories
of such entities. Such principles shall be designed to
account fully for all funds received and expended for
purposes of this title by such entities.
(B) Consultation.--The Corporation may consult with the
Comptroller General and, as appropriate, with others in the
development of the accounting principles under subparagraph
(A).
(6) Requirements for recipients.--Each entity receiving
funds under this title shall--
(A) keep its books, records, and accounts in such form as
may be required by the Corporation;
(B) either--
(i) undergo a biennial audit by independent certified
public accountants or independent licensed public accountants
certified or licensed by a regulatory authority of a State,
which audit shall be in accordance with auditing standards
developed by the Corporation, in consultation with the
Comptroller General; or
(ii) submit a financial statement in lieu of the audit
required by subparagraph (A) if the Corporation determines
that the cost burden of such audit on such entity is
excessive in light of the financial condition of such entity;
and
(C) furnish biennially to the Corporation a copy of the
audit report required pursuant to the subparagraph (B), as
well as such other information regarding finances (including
an annual financial report) as the Corporation may require.
(7) Additional recordkeeping.--Any recipient of assistance
by grant or contract under this section, other than a fixed
price contract awarded pursuant to competitive bidding
procedures, shall keep such records as may be reasonably
necessary to disclose fully the amount and the disposition by
such recipient of such assistance, that total cost of the
project or undertaking in connection with which such
assistance is given or used, and the amount and nature of
that portion of the cost of the projects or undertaking
supplied by other sources, and such other records as will
facilitate an effective audit.
(8) Access to records.--The Corporation or any of its duly
authorized representatives shall have access to any books,
documents, papers, and records of any recipient of assistance
for the purpose of auditing and examining all funds received
from the Corporation. The Comptroller General of the United
States or any of his duly authorized representatives also
shall have access to such books, documents, papers, and
records for the purpose of auditing and examining all funds
received from the Corporations during any fiscal year for
which Federal funds are available to the Corporation.
(9) Public inspection.--The Corporation shall maintain the
information described in paragraphs (6), (7), and (8) at its
offices for public inspection and copying for at least 3
years, according to such reasonable guidelines as the
Corporation may issue. This public file shall be updated
regularly.
SEC. 308. RAIL INFRASTRUCTURE FINANCE TRUST.
(a) Establishment.--The Board of Directors of the Rail
Infrastructure Finance Corporation shall establish the Rail
Infrastructure Finance Trust (hereafter in this section
referred to as the ``Trust'') as a trust domiciled in the
State of Delaware. The Trust shall, to the extent not
inconsistent with this Act, be subject to the laws of the
State of Delaware that are applicable to trusts. The Trust
shall manage and invest the assets of the Rail Infrastructure
Account described in section 307(c) that are transferred to
it by the Board in the manner set forth in this section.
(b) Not a Federal Agency or Instrumentality.--The Trust is
not a department, agency, or other instrumentality of the
Government of the United States and shall not be subject to
title 31, United States Code.
(c) Board of Trustees.--
(1) Establishment.--The Trust shall have a Board of
Trustees.
(2) Composition.--
(A) Appointment.--The Board of Trustees shall consist of 5
members each of whom (hereafter in this title referred to as
a ``Trustee'') is appointed by a unanimous vote of the Board
of Directors of the Rail Infrastructure Finance Corporation.
The Board of Directors, by unanimous vote, may remove any
member of the Board of Trustees.
(B) Representation of particular interests.--The 5 members
of the Board of Trustees shall be selected as follows:
(i) One from among persons who represent the interests of
the States.
(ii) One from among persons who represent the interests of
freight railroads.
(iii) One from among persons who represent the interests of
passenger railroads.
(iv) One from among persons who represent the interests of
holders of qualified rail infrastructure bonds issued by the
Rail Infrastructure Finance Corporation.
(v) One from among persons whose interests are independent
of interests referred to in the other clauses of this
subparagraph.
(3) Members not united states officials.--The members of
the Board of Trustees may not be considered officers or
employees of the Government of the United States.
(4) Qualifications.--The Trustees shall be appointed only
from among persons who have experience and expertise in the
management of financial investments. No member of the Board
of Directors of the Rail Infrastructure Finance Corporation
is eligible to be a Trustee.
(5) Terms.--Each member of the Board of Trustees shall be
appointed for a 3-year term. Any member whose term has
expired may serve until such member's successor has taken
office, or until the end of the calendar year in which such
member's term has expired, whichever is earlier. A vacancy in
the Board of Trustees shall not affect the powers of the
Board of Trustees and shall be filled in the same manner as
the member whose departure caused the vacancy. Any member
appointed to fill a vacancy occurring prior to the expiration
of the term for which such member's predecessor was appointed
shall be appointed for the remainder of such term.
(d) Powers.--The Board of Trustees shall--
(1) establish investment policies, including guidelines,
and retain independent advisers to assist in the formulation
and adoption of the investment guidelines;
(2) retain independent investment managers to invest the
assets of the Trust in a manner consistent with such
investment guidelines;
(3) invest assets in the Trust, pursuant to the policies
adopted in paragraph (1);
(4) pay administrative expenses of the Trust from the
assets in the Trust; and
(5) transfer money to the Rail Infrastructure Investment
Account, upon request of the Board of Directors of the Rail
Infrastructure Finance Corporation, for bond repayment and
administrative expenses, and for grants under subtitle B.
(e) Reporting Requirements and Fiduciary Standards.--The
following reporting requirements and fiduciary standards
shall apply with respect to the Trust:
(1) Duties of the board of trustees.--The Trust and each
member of the Board of Trustees shall discharge the duties of
the Trust and the duties of the Trustee, respectively
(including the voting of proxies), with respect to the assets
of the Trust solely in the interests of the Rail
Infrastructure Finance Corporation and the programs funded
under this title--
(A) for the exclusive purposes of--
(i) providing sufficient funds to repay qualified rail
infrastructure bonds issued by the Rail Infrastructure
Finance Corporation, to fund the administrative costs of the
Rail Infrastructure Finance Corporation and to provide grants
for rail capital projects under subtitle B; and
(ii) defraying reasonable expenses of administering the
Trust;
(B) with the care, skill, prudence, and diligence under the
circumstances then prevailing that a prudent person acting in
a like
[[Page S10292]]
capacity and familiar with such matters would use in the
conduct of an enterprise of a like character and with like
aims;
(C) by diversifying investments so as to minimize the risk
of large losses and to avoid disproportionate influence over
a particular industry or firm, unless under the circumstances
it is clearly prudent not to do so; and
(D) in accordance with Trust governing documents and
instruments insofar as such documents and instruments are
consistent with this Act.
(2) Prohibitions with respect to members of the board of
trustees.--A member of the Board of Trustees may not--
(A) deal with the assets of the Trust in the Trustee's own
interest or for the Trustee's own account;
(B) in an individual or in any other capacity, act in any
transaction involving the assets of the Trust on behalf of a
party (or represent a party) whose interests are adverse to
the interests of the Trust and the Rail Infrastructure
Finance Corporation; or
(C) receive any consideration for the Trustee's own
personal account from any party dealing with the assets of
the Trust.
(3) Exculpatory provisions and insurance.--Any provision in
an agreement or instrument that purports to relieve a Trustee
from responsibility or liability for any responsibility,
obligation, or duty under this Act shall be void. Nothing in
this paragraph shall be construed to preclude--
(A) the Trust from purchasing insurance for its Trustees or
for itself to cover liability or losses occurring by reason
of the act or omission of a Trustee, if such insurance
permits recourse by the insurer against the Trustee in the
case of a breach of a fiduciary obligation by such Trustee;
(B) a Trustee from purchasing insurance to cover liability
under this section from and for his own account; or
(C) an employer or an employee organization from purchasing
insurance to cover potential liability of 1 or more Trustees
with respect to their fiduciary responsibilities,
obligations, and duties under this section.
(4) Trustees bonds.--
(A) Requirement.--Each Trustee and every person who handles
funds or other property of the Trust (hereafter in this
section referred to as ``Trust official'') shall be bonded.
The bond shall provide protection to the Trust against loss
by reason of acts of fraud or dishonesty on the part of any
Trust official, directly or through the connivance of others.
(B) Amount.--The amount of a bond for a Trustee under this
paragraph shall be fixed at the beginning of each fiscal year
of the Trust by the Board of Directors of the Rail
Infrastructure Finance Corporation. The amount may not be
less than 10 percent of the amount of the funds administered
by the Trust. In no case may such bond be less than $1,000
nor more than $500,000, except that the Board of Directors,
after consideration of the record, may prescribe an amount in
excess of $500,000, subject to the 10 percent minimum
requirement in the preceding sentence.
(C) Unlawful conduct.--It shall be unlawful for--
(i) any Trust official to receive, handle, disburse, or
otherwise exercise custody or control of any of the funds or
other property of the Trust without being bonded as required
by this subsection;
(ii) any Trust official, or any other person having
authority to direct the performance of such functions, to
permit such functions, or any of them, to be performed by any
Trust official, with respect to whom the requirements of this
subsection have not been met; and
(iii) any person to procure any bond required by this
subsection from any surety or other company or through any
agent or broker in whose business operations such person has
any control or significant financial interest, direct or
indirect.
(f) Audit and Report.--
(1) Requirement for annual audit.--The Trust shall annually
engage an independent qualified public accountant to audit
the financial statements of the Trust.
(2) Annual management report.--The Trust shall submit an
annual management report to be included in the annual report
of the Corporation required under section 306. The management
report under this paragraph shall include the following
matters:
(A) A statement of financial position.
(B) A statement of operations.
(C) A statement of cash flows.
(D) A statement on internal accounting and administrative
control systems.
(E) The report resulting from an audit of the financial
statements of the Trust conducted under paragraph (1).
(F) Any other comments and information necessary to inform
Congress about the operations and financial condition of the
Trust.
(3) Additional copies.--The Trust shall provide the
President and the Director of the Office of Management and
Budget a copy of the management report when it is submitted
to Congress.
(g) Enforcement.--The Rail Infrastructure Finance
Corporation may commence a civil action--
(1) to enjoin any act or practice by the Trust, its Board
of Trustees, or its employees or agents that violates any
provision of this Act; or
(2) to obtain other appropriate relief to redress such
violations, or to enforce any provisions of this Act.
(h) Administrative Matters.--
(1) Authority.--The Board of Trustees shall have the
authority to make rules to govern its operations, employ
professional staff, and contract with outside advisers
(including the Rail Infrastructure Finance Corporation) to
provide legal, accounting, investment advisory, or other
services necessary for the proper administration of this
section. In the case of a contract for investment advisory
services, compensation for such services may be provided on a
fixed fee basis or on such other terms and conditions as are
customary for such services.
(2) Quorum and proceedings.--Three members of the Board of
Trustees shall constitute a quorum for the Board to conduct
business. Investment guidelines shall be adopted by a
unanimous vote of the entire Board of Trustees. All other
decisions of the Board of Trustees shall be decided by a
majority vote of the quorum present. All decisions of the
Board of Trustees shall be entered upon the records of the
Board of Trustees.
(3) Compensation of trustees and employees.--The salaries
of the Trustees and the employees of the Trust are subject to
the limitations in section 303.
(4) Funding.--The expenses of the Trust and the Board of
Trustees that are incurred under this section shall be paid
from the Trust.
(i) Exemption From Tax for Rail Infrastructure Finance
Trust.--Subsection (c) of section 501 of the Internal Revenue
Code of 1986 is amended by adding at the end the following
new paragraph:
``(29) The Rail Infrastructure Finance Trust established
under section 308 of the American Rail Equity Act of 2003.''.
Subtitle B--Rail Development Grant Program
SEC. 311. NATIONAL SYSTEM IMPROVEMENT GRANT PROGRAM.
(a) Grants to States.--The Board of Directors of the Rail
Infrastructure Finance Corporation may, by grant, provide
financial assistance to a State, group of States, or the
National Railroad Passenger Corporation, for, or in
connection with, intercity passenger rail capital projects
that are--
(1) designated as National System Improvement Projects
under section 22506 of title 49, United States Code; and
(2) as determined by the Board, will significantly benefit
the National System, as designated under section 25002(a) of
title 49, United States Code, of intercity passenger rail
infrastructure or services.
(b) Project Selection Criteria.--The Board, in selecting
the recipients of financial assistance to be provided under
subsection (a), shall--
(1) give preference to projects that most significantly
improve intercity passenger rail service on routes of the
National System through increased frequency of on-time
performance, reduced trip time, higher ridership, increased
service frequency, or other service measures as defined under
section 22506 of title 49, United States Code;
(2) give preference to projects that effect multiple routes
or the entire National System;
(3) require that each proposed project meet all safety
requirements that are applicable to the project under law,
and give a preference to any project determined by the Board
as having provided for particularly high levels of safety;
(4) encourage intermodal connectivity through projects that
provide direct connections between train stations, airports,
bus terminals, subway stations, ferry ports, and other modes
of transportation;
(5) ensure a general balance across geographic regions of
the United States in providing such assistance and avoid a
concentration of a disproportionate amount of such financial
assistance in a single project or region of the country;
(6) favor projects that are expected to have a significant
favorable impact on air or highway traffic congestion;
(7) encourage projects that also improve freight or
commuter rail operations;
(8) favor projects that either--
(A) have significant environmental benefits; or
(B) are--
(i) at a stage of preparation that all precommencement
compliance with environmental protection requirements has
already been completed; and
(ii) ready to be commenced;
(9) favor projects with positive economic and employment
impacts;
(10) encourage the use of positive train control
technologies;
(11) favor projects that have commitments of funding from
non-Federal Government sources in a total amount that exceeds
the minimum amount of the non-Federal contribution required
under section 315(a);
(12) ensure that each project is compatible with, and is
operated in conformance with--
(A) plans developed pursuant to the requirements of
sections 134 and 135 of title 23, United States Code;
(B) State rail plans under chapter 225 of title 49, United
States Code; and
(C) the national rail plan; and
(13) favor projects that enhance national security.
(c) Amtrak Eligibility.--To receive a grant under this
section, the National Railroad Passenger Corporation may
enter into a cooperative agreement with 1 or more States to
carry out 1 or more projects on an approved State rail plan's
ranked list of priority freight and passenger rail capital
projects developed under section 22504(5) of title 49, United
States Code, or may submit an independent application for a
grant for
[[Page S10293]]
any project designated as a National System Improvement
Project under section 22506 of title 49, United States Code.
Any such independent grant request shall be subject to the
same selection criteria as apply under subsection (b) to
projects of States, except the criteria set forth in
subparagraphs (A) and (B) of subsection (b)(12).
(e) Limitations.--
(1) Two-year availability.--If any amount provided as a
grant to a State or the National Railroad Passenger
Corporation under this section is not obligated or expended
for the purposes described in subsections (a) and (b) within
2 years, such sums shall be returned to the Board for other
national system improvement projects under this section at
the discretion of the Board.
(2) Single project amount.--In awarding grants to States
for eligible projects under this section, the Board shall
limit the amount of any grant made for a particular project
in a fiscal year to not more than 30 percent of the total
amount of the funds available for grants under this section
for that fiscal year.
(3) Amtrak.--The total amount of grants made under this
section to the National Railroad Passenger Corporation in a
fiscal year may not exceed 50 percent of the total amount
available under this section for all grants in that fiscal
year.
(4) Northeast corridor projects.--The total amount of
grants made under this section for the Northeast Corridor in
a fiscal year may not exceed 25 percent of the total amount
available under this section for all grants under this
section in that fiscal year.
(5) Other projects.--The total amount of grants made under
this section for projects other than projects for the
Northeast Corridor in any fiscal year may not exceed 75
percent of the total amount available under this section for
all grants under this section in that fiscal year.
(6) Northeast corridor defined.--In this section, the term
``Northeast Corridor'' has the meaning given that term in
section 24102(6) of title 49, United States Code.
(f) Funding.--
(1) In general.--There are authorized to be appropriated to
the Secretary of Transportation for fiscal years 2004 through
2009 such sums as may be necessary to carry out subsections
(a) through (e) of this section.
(2) Northeast corridor freight-only track.--
(A) In general.--Notwithstanding any other provision of
this section, there are authorized to be appropriated to the
Secretary of Transportation for the construction of a
freight-only track on the Northeast Corridor for fiscal year
2005 $125,000,000, including capital improvements,
improvements to signal systems, high-speed interlockings,
track, and bridges, such sum to remain available until
expended.
(B) Financial contribution from other users.--The Secrtary
shall consider the feasibility of seeking a financial
contribution to the construction of the track and capital
improvements related thereto from other users.
(C) Project construction.--The Secretary shall coordinate
construction of the track with the owner of the freight
easement on the Northeast Corridor to ensure that current
service commitments for both passenger and freight rail
transportation are maintained.
SEC. 312. GRANT PROGRAM REQUIREMENTS AND LIMITATIONS.
(a) Authorized Uses.--The proceeds of a grant made for a
project under this subtitle may be used to defray the costs
of the project or to reimburse the recipient for costs of the
project paid by the recipient.
(b) Non-Federal Contribution.--The proceeds of a grant for
1 or more projects under this subtitle may be released upon
receipt by the Board of Directors of the Rail Infrastructure
Finance Corporation of cash payment by a non-Federal
Government source, or 1 or more such sources jointly, in an
amount not less than the amount equal to 20 percent of the
amount of the grant disbursed. The cash payment may not be
derived, directly or indirectly, from Federal funds. Amounts
received under this subsection shall be credited to the Rail
Infrastructure Investment Account established under section
307(c).
(c) Preference Involving Donated Property Interests and
Services.--In selecting projects for grant funding under this
subtitle, the Board may give preference to projects that
involve donated right-of-way, property, or in-kind services
by a public sector or private sector entity. The value of a
donation under subsection (c) may not be counted toward
satisfaction of the requirement in subsection (b).
(d) Flexibility.--Notwithstanding any other provision of
this subtitle, amounts made available under section 316 may
be combined and used for projects that significantly benefit
both freight rail service and intercity passenger rail
service.
(e) Suballocation; Public-Private Partnerships.--
(1) In general.--A metropolitan planning organization,
State transportation department, or other project sponsor may
enter into an agreement with any public, private, or
nonprofit entity to cooperatively implement any project
funded with a grant under this subtitle.
(2) Forms of participation.--Participation by an entity
under paragraph (1) may consist of--
(A) ownership or operation of any land, facility,
locomotive, rail car, vehicle, or other physical asset
associated with the project;
(B) cost-sharing of any project expense;
(C) carrying out administration, construction management,
project management, project operation, or any other
management or operational duty associated with the project;
and
(D) any other form of participation approved by the Board.
(3) Sub-allocation.--A State may allocate funds under this
section to any entity described in paragraph (1).
(f) Applications.--To seek a grant under this subtitle, a
State or, in the case of a grant under section 311, the
National Railroad Passenger Corporation shall submit an
application for the grant to the Board. The application shall
be submitted at such time and contain such information as the
Board requires.
(g) Procedures for Grant Award.--The Board shall prescribe
procedures for the awarding of grants under this subtitle,
including application and qualification procedures and a
record of decision on applicant eligibility. The procedures
shall include the execution of a grant agreement between the
applicant and the Board. The Board shall initiate rulemaking
for the purpose of this subsection not later than 90 days
after the date of the enactment of this Act.
Subtitle C--Rail Infrastructure Tax Credit Bonds
SEC. 321. CREDIT TO HOLDERS OF QUALIFIED RAIL INFRASTRUCTURE
BONDS.
(a) In General.--Part IV of subchapter A of chapter 1 of
the Internal Revenue Code of 1986 (relating to credits
against tax) is amended by adding at the end the following
new subpart:
``Subpart H--Nonrefundable Credit for Holders of Qualified Rail
Infrastructure Bonds
``Sec. 54. Credit to holders of qualified rail infrastructure bonds.
``SEC. 54. CREDIT TO HOLDERS OF QUALIFIED RAIL INFRASTRUCTURE
BONDS.
``(a) Allowance of Credit.--In the case of a taxpayer who
holds a qualified rail infrastructure bond on a credit
allowance date of such bond which occurs during the taxable
year, there shall be allowed as a credit against the tax
imposed by this chapter for such taxable year an amount equal
to the sum of the credits determined under subsection (b)
with respect to credit allowance dates during such year on
which the taxpayer holds such bond.
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any credit allowance
date for a qualified rail infrastructure bond is 25 percent
of the annual credit determined with respect to such bond.
``(2) Annual credit.--The annual credit determined with
respect to any qualified rail infrastructure bond is the
product of--
``(A) the applicable credit rate, multiplied by
``(B) the outstanding face amount of the bond.
``(3) Applicable credit rate.--For purposes of paragraph
(2), the applicable credit rate with respect to an issue is
the rate equal to an average market yield (as of the day
before the date of sale of the issue) on outstanding long-
term corporate debt obligations (determined under regulations
prescribed by the Secretary).
``(4) Credit allowance date.--For purposes of this section,
the term `credit allowance date' means--
``(A) March 15,
``(B) June 15,
``(C) September 15, and
``(D) December 15.
Such term includes the last day on which the bond is
outstanding.
``(5) Special rule for issuance and redemption.--In the
case of a bond which is issued during the 3-month period
ending on a credit allowance date, the amount of the credit
determined under this subsection with respect to such credit
allowance date shall be a ratable portion of the credit
otherwise determined based on the portion of the 3-month
period during which the bond is outstanding. A similar rule
shall apply when the bond is redeemed.
``(c) Limitation Based on Amount of Tax.--
``(1) In general.--The credit allowed under subsection (a)
for any taxable year shall not exceed the excess of--
``(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under this part
(other than this subpart and subpart C).
``(2) Carryover of unused credit.--If the credit allowable
under subsection (a) exceeds the limitation imposed by
paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the
credit allowable under subsection (a) for such taxable year.
``(d) Credit Included in Gross Income.--Gross income
includes the amount of the credit allowed to the taxpayer
under this section (determined without regard to subsection
(c)) and the amount so included shall be treated as interest
income.
``(e) Qualified Rail Infrastructure Bond.--For purposes of
this part, the term `qualified rail infrastructure bond'
means any bond issued as part of an issue if--
``(1) the bond is issued by the Rail Infrastructure Finance
Corporation and is in registered form,
``(2) the term of each bond which is part of such issue
does not exceed 20 years,
[[Page S10294]]
``(3) the payment of principal with respect to such bond is
the obligation of the Rail Infrastructure Finance Corporation
and not an obligation of the United States,
``(4) all proceeds from the sale of the issue are used for
the purposes set forth in section 307(c)(5) of the American
Rail Equity Act of 2003, and
``(5) 95 percent or more of the net spendable proceeds from
the sale of such issue are to be used for expenditures
incurred after the date of enactment of the American Rail
Equity Act of 2003 for any project described in section 311,
312, 313, or 314 of that Act.
``(f) Special Rules Relating to Arbitrage.--
``(1) In general.--Subject to paragraph (2), an issue shall
be treated as meeting the requirements of this subsection if,
as of the date of issuance, the issuer reasonably expects--
``(A) to award grants under sections 311, 312, 313, and 314
of the American Rail Equity Act of 2003 in a total amount
that is at least 95 percent of the net spendable proceeds of
the issue for 1 or more qualified projects within the 3-year
period beginning on such date,
``(B) to incur a binding commitment with a third party--
``(i) to spend at least 10 percent of the net spendable
proceeds of the issue, or to commence construction, with
respect to such projects within the 6-month period beginning
on such date, and
``(ii) to proceed with due diligence to complete such
projects, and
``(C) to expend the total amount of the net spendable
proceeds of the issue.
``(2) Rules regarding continuing compliance after 3-year
determination.--If at least 95 percent of the net spendable
proceeds of the issue is not awarded as grants to be expended
for 1 or more qualified projects within the 3-year period
beginning on the date of issuance, but the requirements of
paragraph (1) are otherwise met, an issue shall be treated as
continuing to meet the requirements of paragraph (1) if
either the requirement under subparagraph (A) or the
requirements under subparagraph (B) are met, as follows:
``(A) The issuer uses all unspent proceeds from the sale of
the issue to redeem bonds of the issue within 90 days after
the end of such 3-year period and disburses any remaining net
spendable proceeds to the Secretary of Transportation within
30 days after the end of such 3-year period.
``(B) The issuer--
``(i) awards in grants under sections 311, 312, 313, and
314 of the American Rail Equity Act of 2003 at least 75
percent of the net spendable proceeds of the issue for 1 or
more qualified projects within the 3-year period beginning on
the date of issuance, and
``(ii) either--
``(I) awards in grants under sections 311, 312, 313, and
314 of the American Rail Equity Act of 2003 at least 95
percent of the net spendable proceeds of the issue for 1 or
more qualified projects within the 4-year period beginning on
the date of issuance, or
``(II) pays to the Federal Government any earnings on the
proceeds from the sale of the issue that accrue after the end
of the 3-year period beginning on the date of issuance and
uses all unspent proceeds from the sale of the issue to
redeem bonds of the issue within 90 days after the end of the
4-year period beginning on the date of issuance.
``(g) Recapture of Portion of Credit Where Cessation of
Compliance.--
``(1) In general.--If any bond which when issued purported
to be a qualified rail infrastructure bond ceases to be such
a qualified bond, the issuer shall pay to the United States
(at the time required by the Secretary) an amount equal to
the sum of--
``(A) the aggregate of the credits allowable under this
section with respect to such bond (determined without regard
to subsection (c)) for taxable years ending during the
calendar year in which such cessation occurs and the 2
preceding calendar years, and
``(B) interest at the underpayment rate under section 6621
on the amount determined under subparagraph (A) for each
calendar year for the period beginning on the first day of
such calendar year.
``(2) Failure to pay.--If the issuer fails to timely pay
the amount required by paragraph (1) with respect to such
bond, the tax imposed by this chapter on each holder of any
such bond which is part of such issue shall be increased (for
the taxable year of the holder in which such cessation
occurs) by the aggregate decrease in the credits allowed
under this section to such holder for taxable years beginning
in such 3 calendar years which would have resulted solely
from denying any credit under this section with respect to
such issue for such taxable years.
``(3) Special rules.--
``(A) Tax benefit rule.--The tax for the taxable year shall
be increased under paragraph (2) only with respect to credits
allowed by reason of this section which were used to reduce
tax liability. In the case of credits not so used to reduce
tax liability, the carryforwards and carrybacks under section
39 shall be appropriately adjusted.
``(B) No credits against tax.--Any increase in tax under
paragraph (2) shall not be treated as a tax imposed by this
chapter for purposes of determining--
``(i) the amount of any credit allowable under this part,
or
``(ii) the amount of the tax imposed by section 55(19).
``(h) Rail Infrastructure Finance Trust.--
``(1) In general.--The following amounts shall be held in a
trust account by the Rail Infrastructure Finance Corporation:
``(A) An amount of the proceeds from the sale of all bonds
designated for purposes of this section that, when combined
with amounts described in subparagraphs (B), (C), and (D), is
sufficient--
``(i) to ensure the Corporation's ability to redeem all
bonds upon maturity; and
``(ii) to pay the administrative expenses of the
Corporation and the Rail Infrastructure Finance Trust.
``(B) The amount of any non-Federal contributions required
under section 304(a) of the American Rail Equity Act of 2003.
``(C) The temporary period investment earnings on proceeds
from the sale of such bonds.
``(D) Any earnings on any amounts described in subparagraph
(A), (B), or (C).
``(2) Use of funds.--Amounts in the trust account may be
used only for investment purposes to generate sufficient
funds to redeem qualified rail infrastructure bonds at
maturity and pay the administrative expenses of the
Corporation and the Trust, and for funding grants as provided
for in section 307(c)(5)(B) of the American Rail Equity Act
of 2003.
``(3) Use of remaining funds in trust account.--If the
Corporation determines that the amount in the trust account
exceeds the amount required to comply with paragraph (2), the
Corporation shall transfer the excess to the Rail
Infrastructure Finance Trust.
``(i) Other Definitions and Special Rules.--For purposes of
this section--
``(1) Bond.--The term `bond' includes any obligation.
``(2) Net spendable proceeds.--The term `net spendable
proceeds' has the meaning give such term in section 307(c)(6)
of the American Rail Equity Act of 2003.
``(3) Qualified project.--The term `qualified project'
means any project that is eligible for grant funding under
section 311, 312, 313, or 314 of the American Rail Equity Act
of 2003.
``(4) Partnership; s corporation; and other pass-thru
entities.--Under regulations prescribed by the Secretary, in
the case of a partnership, trust, S corporation, or other
pass-thru entity, rules similar to the rules of section 41(g)
shall apply with respect to the credit allowable under
subsection (a).
``(5) Bonds held by regulated investment companies.--If any
qualified rail infrastructure bond is held by a regulated
investment company, the credit determined under subsection
(a) shall be allowed to shareholders of such company under
procedures prescribed by the Secretary.
``(6) Reporting.--Issuers of qualified rail infrastructure
bonds shall submit reports similar to the reports required
under section 149(e).''.
(b) Amendments to Other Code Sections.--
(1) Reporting.--Subsection (d) of section 6049 of the
Internal Revenue Code of 1986 (relating to returns regarding
payments of interest) is amended by adding at the end the
following new paragraph:
``(8) Reporting of credit on qualified rail infrastructure
bonds.--
``(A) In general.--For purposes of subsection (a), the term
`interest' includes amounts includible in gross income under
section 54(d) and such amounts shall be treated as paid on
the credit allowance date (as defined in section 54(b)(4)).
``(B) Reporting to corporations, etc.--Except as otherwise
provided in regulations, in the case of any interest
described in subparagraph (A), subsection (b)(4) shall be
applied without regard to subparagraphs (A), (H), (I), (J),
(K), and (L)(i) of such subsection.
``(C) Regulatory authority.--The Secretary may prescribe
such regulations as are necessary or appropriate to carry out
the purposes of this paragraph, including regulations which
require more frequent or more detailed reporting.''.
(2) Treatment for estimated tax purposes.--
(A) Individual.--Section 6654 of such Code (relating to
failure by individual to pay estimated income tax) is amended
by redesignating subsection (m) as subsection (n) and by
inserting after subsection (l) the following new subsection:
``(m) Special Rule for Holders of Qualified Rail
Infrastructure Bonds.--For purposes of this section, the
credit allowed by section 54 to a taxpayer by reason of
holding a qualified rail infrastructure bond on a credit
allowance date shall be treated as if it were a payment of
estimated tax made by the taxpayer on such date.''.
(B) Corporate.--Section 6655 of such Code (relating to
failure by corporation to pay estimated income tax) is
amended by adding at the end of subsection (g) the following
new paragraph:
``(5) Special rule for holders of qualified rail
infrastructure bonds.--For purposes of this section, the
credit allowed by section 54 to a taxpayer by reason of
holding a qualified rail infrastructure bond on a credit
allowance date shall be treated as if it were a payment of
estimated tax made by the taxpayer on such date.''.
(c) Clerical Amendments.--
(1) The table of subparts for part IV of subchapter A of
chapter 1 is amended by adding at the end the following new
item:
``Subpart H. Nonrefundable Credit for Holders of Qualified Rail
Infrastructure Bonds.''.
[[Page S10295]]
(2) Section 6401(b)(1) is amended by striking ``and G'' and
inserting ``G, and H''.
SEC. 322. ANNUAL REPORT BY TREASURY ON RAIL INFRASTRUCTURE
TRUST ACCOUNT.
The Secretary of the Treasury shall annually report to
Congress as to whether the amount deposited in the trust
account established by the Rail Infrastructure Finance
Corporation under section 54(i) of the Internal Revenue Code
of 1986, as added by section 321, is sufficient to fully
repay at maturity the principal of any outstanding qualified
rail infrastructure bonds issued pursuant to section 54 of
such Code (as so added), together with amounts expected to be
deposited into such account, as certified by the Rail
Infrastructure Finance Corporation in accordance with
procedures prescribed by the Secretary of the Treasury.
SEC. 323. ISSUANCE OF REGULATIONS.
The Secretary of the Treasury shall issue regulations
required under section 54 of the Internal Revenue Code of
1986 (as added by this section 321) not later than 90 days
after the date of the enactment of this Act.
SEC. 324. EFFECTIVE DATE.
The amendments made by section 321 shall apply to
obligations issued after the date of enactment of this Act.
TITLE IV--RAIL INFRASTRUCTURE AND INTERMODAL TRANSPORTATION
SEC. 401. INTERMODAL TRANSPORTATION POLICY.
Section 302(e) is amended by striking ``system'' and
inserting ``system, including freight and passenger rail
service and maritime transportation, including such
transportation via inland waterways,''.
SEC. 402. STATE RAIL PLANS.
(a) In General.--Part B of subtitle V is amended by adding
at the end the following:
``CHAPTER 225--STATE RAIL PLANS
``Sec.
``22501. Authority.
``22502. Purposes and coordination.
``22503. Transparency and review.
``22504. Content.
``22505. High priority projects.
``22506. Approval.
``22507. Definitions.
``Sec. 22501. Authority
``(a) In General.--Each State may prepare and maintain a
State rail plan in accordance with the provisions of this
chapter.
``(b) Requirements.--For the preparation and periodic
revision of a State rail plan, a State shall--
``(1) establish or designate a State rail transportation
authority to prepare, maintain, coordinate, and administer
the plan;
``(2) establish or designate a State rail plan approval
authority to approve the plan;
``(3) submit the approved plan to the Secretary of
Transportation for approval; and
``(4) revise and resubmit an approved plan no less
frequently than once every 7 years for reapproval by the
Secretary.
``Sec. 22502. Purposes and coordination
``(a) Purposes.--The purposes of a State rail plan are as
follows:
``(1) To set forth State policy for all freight and
passenger rail transportation, including commuter rail
operations, in the State.
``(2) To establish the period covered by the State rail
plan.
``(3) To present priorities and strategies to preserve,
enhance, or expand rail service in the State.
``(4) To serve as the basis for Federal and State rail
investments within the State.
``(b) Coordination.--A State rail plan shall be coordinated
with other State transportation planning goals and programs
and set forth rail transportation's role within the State
transportation system.
``Sec. 22503. Transparency and review
``(a) Preparation.--A State shall provide adequate and
reasonable notice and opportunity for comment and other input
to the public, rail carriers, commuter and transit
authorities operating in, or affected by rail operations
within the State, units of local government, and other
interested parties in the preparation and review of its State
rail plan.
``(b) Annual Reviews.--Each State shall transmit an annual
report on its plan to the Secretary of Transportation. The
report shall included, for the year preceding the year in
which submitted, the following matters:
``(1) A review of progress made, and actions taken, under
the plan during the year.
``(2) A schedule of actions to be taken during the current
year.
``(3) Any modifications made in the plan after approval of
the plan by the Secretary or after the submission of the most
recent annual report on the plan to the Secretary, including
any modifications made to the priority freight or passenger
rail capital project list required by section 22504(a)(5) of
this title.
``(c) Approval of Modified Plans.--Each modification of a
State rail plan that is determined substantive by the
Secretary, including any modification to a priority freight
or passenger rail capital project list required by section
22504(a)(5) of this title, is subject to approval (for the
purposes of this chapter) by the Secretary.
``Sec. 22504. Content
``(a) In General.--Each State rail plan shall contain the
following:
``(1) An evaluation of the existing overall rail
transportation system and rail services and facilities within
the State, a prioritization of such services and facilities
in terms of their contributions to the State's rail and
transportation system.
``(2) A comprehensive review of all rail lines within the
State, including proposed high speed rail corridors and
significant rail line segments not currently in service,
containing an analysis of the transportation services
provided by those lines, their ownership, operating
characteristics, the state of their infrastructure (including
capital and maintenance requirements), and the economic and
environmental impact of those lines.
``(3) A statement of freight and passenger rail service
objectives, including minimum service levels, for rail
transportation routes in the State.
``(4) A general analysis and quantification of rail's
transportation, economic, and environmental impacts in the
State, including congestion mitigation, trade and economic
development, air quality, land-use, energy-use, and community
impacts.
``(5) A long-range rail service and investment program for
current and future freight and passenger services in the
State that meets the requirements of subsection (b).
``(6) A statement of rail financing issues in the State,
including a list of current and prospective capital and
operating funding resources, public subsidies, State and
Federal taxation, and other financial policies relating to
rail service and rail infrastructure development.
``(7) A statement of rail service issues within the State,
such as congestion and capacity, and current system
deficiencies on a regional, intrastate, and interstate basis,
that reflects consultation with neighboring States and
describes any coordination of regional rail service.
``(8) A review of major passenger and freight intermodal
rail connections and facilities within the State, including
seaports, and options to maximize service integration and
efficiency between rail and other modes of transportation
within the State.
``(9) A description of new technology that relates to rail
transportation within the State, including logistics and
process improvements.
``(10) A review of plans and projects within the State to
improve rail transportation safety and security, including
all major projects funded under section 130 of title 23.
``(11) A performance evaluation of passenger rail services
operating in the State, including possible improvements in
those services, and a description of strategies to achieve
those improvements.
``(12) A description of activities by regional planning
agencies, regional transportation authorities, and
municipalities in the State on freight and passenger rail
service within the State, or in the region in which the State
is located, including a presentation of any recommendations
made by such agencies, authorities, and municipalities.
``(13) A compilation of studies and reports on high-speed
rail corridor development within the State not included in a
previous plan under this chapter, and a plan for funding any
recommended development of such corridors in the State.
``(14) A statement that the State is in compliance with the
requirements of section 22102.
``(b) Long-Range Service and Investment Program.--
``(1) Program content.--A long-range rail service and
investment program included in a State rail plan under
subsection (a)(5) shall include the following matters:
``(A) Two ranked lists for rail capital projects, one for
priority freight rail capital projects and one for priority
passenger rail capital projects.
``(B) A detailed funding plan for the projects.
``(2) Project list content.--The ranked list of priority
freight and passenger rail capital projects shall contain--
``(A) a description of the anticipated public and private
benefits of each such project; and
``(B) a statement of the correlation between--
``(i) private funding contributions for the projects; and
``(ii) the private benefits.
``(3) Considerations for project list.--In preparing the
ranked list of priority freight and passenger rail capital
projects, a State rail transportation authority shall take
into consideration the following matters:
``(A) Contributions made by non-Federal Government and non-
State sources through user fees, matching funds, or other
private capital involvement.
``(B) Rail capacity and congestion effects.
``(C) Highway and transportation system congestion
mitigation.
``(D) Regional balance.
``(E) Environmental impact.
``(F) Competitive and service impact for rail carriers and
shippers.
``(G) Preservation of rail service.
``(H) Economic and employment impacts.
``(I) Projected ridership for passenger projects.
``(c) Waiver.--The Secretary may waive the any requirement
of subsection (a), except the requirement in paragraph (5) of
such subsection, upon application under circumstances that
the Secretary determines appropriate.
``Sec. 22505. High priority projects
``(a) Designation of Projects.--The Secretary of
Transportation may designate as a high priority project any
project that meets both of the following criteria:
``(1) The project is on a ranked list of priority freight
and passenger rail capital
[[Page S10296]]
projects that is included in a State rail plan under section
22504(5).
``(2) The project focuses on key rail congestion points
that are selected by the Secretary--
``(A) on the basis of national benefits to the rail
transportation system; and
``(B) coordinated with the national rail plan.
``(b) Preferred Projects.--The Secretary, in designating
high priority projects, shall give preference to--
``(1) projects that have national significance for--
``(A) improving the national rail network and the Nation's
transportation system;
``(B) ensuring particularly high levels of safety;
``(C) increasing intermodal connectivity by providing or
improving direct connections between rail facilities and
other modes of transportation;
``(D) significantly affecting highway, aviation, or
maritime capacity, congestion, or safety;
``(E) improving both intercity passenger rail an freight
rail services;
``(F) enhancing rail completion or freight rail service for
shippers;
``(G) causing positive economic and employment results;
``(H) producing significant environmental or community
benefits;
``(I) having received financial commitments and other
support from numerous entities such as States, local
governments, or private entities;
``(J) enhancing international trade;
``(K) enhancing national security; or
``(L) employing positive train control technologies; and
``(2) projects that are at the stage of preparation that
all precommencement compliance with environmental protection
requirements has been completed and the projects are ready to
commence.
``(c) Regional Balance and Compatibility.--The Secretary,
in designating high priority projects, shall ensure that--
``(1) the geographic distribution of the projects
designated as high priority projects is generally balanced
among the geographic regions of the United States and a
disproportionate number of such projects is not concentrated
in a single region or State; and
``(2) all projects are compatible with, and carried out in
conformance with--
``(A) plans developed pursuant to the requirements of
sections 134 and 135 of title 23; and
``(B) the national rail plan.
``Sec. 22506. Approval
``(a) Criteria.--The Secretary may approve a State rail
plan for the purposes of this chapter if--
``(1) the plan meets all of the requirements applicable to
State plans under this chapter;
``(2) for each project listed on the ranked list of
priority freight and passenger rail capital projects under
the plan--
``(A) the project meets all safety requirements that are
applicable to the project under law; and
``(B) the State has entered into an agreement with any
owner of rail infrastructure directly affected by the project
that provides for the State to proceed with the project; and
``(3) the content of the plan is coordinated with--
``(A) plans developed pursuant to the requirements of
sections 134 and 135 of title 23; and
``(B) the national rail plan and any other transportation
plan of the Federal Government that is required by law.
``(b) Procedures for State Rail Plan Submission and
Approval.--The Secretary shall prescribe procedures for
States to submit State rail plans for review under this
subtitle, including application and qualification procedures.
The procedures shall provide for the Secretary to review a
State rail plan and issue a record of decision of approval or
disapproval, with comment, on such plan within 180 days after
the plan is submitted.
``Sec. 22507. Definitions
``In this chapter:
``(1) Private benefit.--The term `private benefit' means a
benefit accrued to a person or private entity that directly
improves the economic and competitive condition of that
person or entity through improved assets, cost reductions,
service improvements, or any other means as defined by the
Secretary.
``(2) Public benefit.--The term `public benefit' means a
benefit accrued to the public in the form of enhanced
mobility of people or goods, environmental protection or
enhancement, congestion mitigation, enhanced trade and
economic development, improved air quality or land use, more
efficient energy use, enhanced public safety or security,
reduction of public expenditures due to improved
transportation efficiency or infrastructure preservation, and
any other positive community effects as defined by the
Secretary.
``(3) State.--The term `State' means any of the 50 States
and the District of Columbia.
``(4) State rail transportation authority.--The term `State
rail transportation authority' means the State agency or
official responsible under the direction of the Governor of
the State or a State law for preparation, maintenance,
coordination, and administration of the State rail plan.''.
(b) Clerical Amendment.--The table of chapters for subtitle
V is amended by inserting after the item relating to chapter
223 the following:
``225. STATE RAIL PLANS.......................................22501.''.
____________________