[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.''.

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