[House Report 104-299]
[From the U.S. Government Publishing Office]



                                                                       
104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    104-299
_______________________________________________________________________


 
              AMTRAK REFORM AND PRIVATIZATION ACT OF 1995
                                _______


October 30, 1995.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______


 Mr. Shuster, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 1788]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 1788) to reform the statutes 
relating to Amtrak, to authorize appropriations for Amtrak, and 
for other purposes, having considered the same, reports 
favorably thereon with an amendment and recommends that the 
bill as amended do pass.

  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Amtrak Reform and Privatization Act of 
1995''.

                      TITLE I--PROCUREMENT REFORMS

SEC. 101. CONTRACTING OUT.

  (a) Amendment.--Section 24312(b) of title 49, United States Code, is 
amended to read as follows--
  ``(b) Contracting Out.--(1) When Amtrak contracts out work normally 
performed by an employee in a bargaining unit covered by a contract 
between a labor organization and Amtrak, Amtrak is encouraged to use 
other rail carriers for performing such work.
  ``(2)(A) Amtrak may not enter into a contract for the operation of 
trains with any entity other than a State or State authority.
  ``(B) If Amtrak enters into a contract as described in subparagraph 
(A)--
          ``(i) such contract shall not relieve Amtrak of any 
        obligation in connection with the use of facilities of another 
        entity for the operation covered by such contract; and
          ``(ii) such operation shall be subject to any operating or 
        safety restrictions and conditions required by the agreement 
        providing for the use of such facilities.
  ``(C) This paragraph shall not restrict Amtrak's authority to enter 
into contracts for access to or use of tracks or facilities for the 
operation of trains.''.
  (b) Effective Date.--Subsection (a) shall take effect 254 days after 
the date of the enactment of this Act.

SEC. 102. CONTRACTING PRACTICES.

  (a) Below-Cost Competition.--Section 24305(b) of title 49, United 
States Code, is amended to read as follows:
  ``(b) Below-Cost Competition.--(1) Amtrak shall not submit any bid 
for the performance of services under a contract for an amount less 
than the cost to Amtrak of performing such services, with respect to 
any activity other than the provision of intercity rail passenger 
transportation, commuter rail passenger transportation, or mail or 
express transportation. For purposes of this subsection, the cost to 
Amtrak of performing services shall be determined using generally 
accepted accounting principles for contracting.
  ``(2) Any aggrieved individual may commence a civil action for 
violation of paragraph (1). The United States district courts shall 
have jurisdiction, without regard to the amount in controversy or the 
citizenship of the parties, to enforce paragraph (1). The court, in 
issuing any final order in any action brought pursuant to this 
paragraph, may award bid preparation costs, anticipated profits, and 
litigation costs, including reasonable attorney and expert witness 
fees, to any prevailing or substantially prevailing party. The court 
may, if a temporary restraining order or preliminary injunction is 
sought, require the filing of a bond or equivalent security in 
accordance with the Federal Rules of Civil Procedure.
  ``(3) This subsection shall cease to be effective on the expiration 
of a fiscal year during which no Federal operating assistance is 
provided to Amtrak.''.
  (b) Through Service in Conjunction With Intercity Bus Operations.--
(1) Section 24305(a) of title 49, United States Code, is amended by 
adding at the end the following new paragraph:
  ``(3)(A) Except as provided in subsection (d)(2), Amtrak may enter 
into a contract with a motor carrier of passengers for the intercity 
transportation of passengers by motor carrier over regular routes 
only--
          ``(i) if the motor carrier is not a public recipient of 
        governmental assistance, as such term is defined in section 
        10922(d)(1)(F)(i) of this title, other than a recipient of 
        funds under section 18 of the Federal Transit Act;
          ``(ii) for passengers who have had prior movement by rail or 
        will have subsequent movement by rail; and
          ``(iii) if the buses, when used in the provision of such 
        transportation, are used exclusively for the transportation of 
        passengers described in clause (ii).
  ``(B) Subparagraph (A) shall not apply to transportation funded 
predominantly by a State or local government, or to ticket selling 
agreements.''.
  (2) Section 24305(d) of title 49, United States Code, is amended by 
adding at the end the following new paragraph:
  ``(3) Congress encourages Amtrak and motor common carriers of 
passengers to use the authority conferred in section 11342(a) of this 
title for the purpose of providing improved service to the public and 
economy of operation.''.

SEC. 103. FREEDOM OF INFORMATION ACT.

  Section 24301(e) of title 49, United States Code, is amended by 
striking ``Section 552 of title 5, this part,'' and inserting in lieu 
thereof ``This part''.

                     TITLE II--OPERATIONAL REFORMS

SEC. 201. BASIC SYSTEM.

  (a) Operation of Basic System.--Section 24701 of title 49, United 
States Code, and the item relating thereto in the table of sections of 
chapter 247 of such title, are repealed.
  (b) Improving Rail Passenger Transportation.--Section 24702 of title 
49, United States Code, and the item relating thereto in the table of 
sections of chapter 247 of such title, are repealed.
  (c) Discontinuance.--Section 24706 of title 49, United States Code, 
is amended--
          (1) in subsection (a)(1)--
                  (A) by striking ``90 days'' and inserting in lieu 
                thereof ``180 days'';
                  (B) by striking ``a discontinuance under section 
                24704 or 24707 (a) or (b) of this title'' and inserting 
                in lieu thereof ``discontinuing service over a route''; 
                and
                  (C) by inserting ``or assume'' after ``agree to 
                share'';
          (2) in subsection (a)(2), by striking ``section 24704 or 
        24707 (a) or (b) of this title'' and inserting in lieu thereof 
        ``paragraph (1)''; and
          (3) by striking subsection (b).
  (d) Cost and Performance Review.--Section 24707 of title 49, United 
States Code, and the item relating thereto in the table of sections of 
chapter 247 of such title, are repealed.
  (e) Special Commuter Transportation.--Section 24708 of title 49, 
United States Code, and the item relating thereto in the table of 
sections of chapter 247 of such title, are repealed.
  (f) Conforming Amendment.--Section 24312(a)(1) of title 49, United 
States Code, is amended by striking ``, 24701(a),''.

SEC. 202. MAIL, EXPRESS, AND AUTO-FERRY TRANSPORTATION.

  (a) Repeal.--Section 24306 of title 49, United States Code, and the 
item relating thereto in the table of sections of chapter 243 of such 
title, are repealed.
  (b) Conforming Amendment.--Section 24301 of title 49, United States 
Code, is amended by adding at the end the following new subsection:
  ``(o) Nonapplication of Certain Other Laws.--State and local laws and 
regulations that impair the provision of mail, express, and auto-ferry 
transportation do not apply to Amtrak or a rail carrier providing mail, 
express, or auto-ferry transportation.''.

SEC. 203. ROUTE AND SERVICE CRITERIA.

  Section 24703 of title 49, United States Code, and the item relating 
thereto in the table of sections of chapter 247 of such title, are 
repealed.

SEC. 204. ADDITIONAL QUALIFYING ROUTES.

  Section 24705 of title 49, United States Code, and the item relating 
thereto in the table of sections of chapter 247 of such title, are 
repealed.

SEC. 205. TRANSPORTATION REQUESTED BY STATES, AUTHORITIES, AND OTHER 
                    PERSONS.

  (a) Repeal.--Section 24704 of title 49, United States Code, and the 
item relating thereto in the table of sections of chapter 247 of such 
title, are repealed.
  (b) Existing Agreements.--Amtrak shall not, after the date of the 
enactment of this Act, be required to provide transportation services 
pursuant to an agreement entered into before such date of enactment 
under the section repealed by subsection (a) of this section.
  (c) State, Regional, and Local Cooperation.--Section 24101(c)(2) of 
title 49, United States Code, is amended by inserting ``, separately or 
in combination,'' after ``and the private sector''.
  (d) Conforming Amendment.--Section 24312(a)(1) of title 49, United 
States Code, is amended by striking ``or 24704(b)(2)''.

SEC. 206. AMTRAK COMMUTER.

  (a) Repeal of Chapter 245.--Chapter 245 of title 49, United States 
Code, and the item relating thereto in the table of chapters of 
subtitle V of such title, are repealed.
  (b) Conforming Amendments.--(1) Section 24301(f) of title 49, United 
States Code, is amended to read as follows:
  ``(f) Tax Exemption for Certain Commuter Authorities.--A commuter 
authority that was eligible to make a contract with Amtrak Commuter to 
provide commuter rail passenger transportation but which decided to 
provide its own rail passenger transportation beginning January 1, 
1983, is exempt, effective October 1, 1981, from paying a tax or fee to 
the same extent Amtrak is exempt.''.
  (2) Subsection (a) of this section shall not affect any trackage 
rights held by Amtrak or the Consolidated Rail Corporation.

SEC. 207. COMMUTER COST SHARING ON THE NORTHEAST CORRIDOR.

  (a) Determination of Compensation.--Section 24904 of title 49, United 
States Code, is amended--
          (1) by striking subsection (b);
          (2) by redesignating subsection (c) as subsection (b);
          (3) in subsection (b), as so redesignated by paragraph (2) of 
        this subsection--
                  (A) by striking ``Transportation Over Certain Rights 
                of Way and Facilities'' in the subsection head and 
                inserting in lieu thereof ``Freight Transportation'';
                  (B) by inserting ``relating to rail freight 
                transportation'' after ``subsection (a)(6) of this 
                section'' in paragraph (1); and
                  (C) by inserting ``to an agreement described in 
                paragraph (1)'' after ``If the parties'' in paragraph 
                (2); and
          (4) by inserting after subsection (b), as so redesignated by 
        paragraph (2) of this subsection, the following new subsection:
  ``(c) Binding Arbitration for Commuter Disputes.--(1) If the parties 
to an agreement described in subsection (a)(6) relating to commuter 
rail passenger transportation cannot agree to the terms of such 
agreement, such parties shall submit the issues in dispute to binding 
arbitration.
  ``(2) The parties to a dispute described in paragraph (1) may agree 
to use the Interstate Commerce Commission to arbitrate such dispute, 
and if requested the Interstate Commerce Commission shall perform such 
function.''.
  (b) Privatization.--Section 24101(d) of title 49, United States Code, 
is amended to read as follows:
  ``(d) Minimizing Government Subsidies.--To carry out this part, 
Amtrak is encouraged to make agreements with the private sector and 
undertake initiatives that are consistent with good business judgment, 
that produce income to minimize Government subsidies, and that promote 
the potential privatization of Amtrak's operations.''.

SEC. 208. ACCESS TO RECORDS AND ACCOUNTS.

  Section 24315 of title 49, United States Code, is amended--
          (1) in subsection (e), by inserting ``financial or'' after 
        ``Comptroller General may conduct''; and
          (2) by adding at the end the following new subsection:
  ``(h) Access to Records and Accounts.--A State shall have access to 
Amtrak's records, accounts, and other necessary documents used to 
determine the amount of any payment to Amtrak required of the State.''.

                TITLE III--COLLECTIVE BARGAINING REFORMS

SEC. 301. RAILWAY LABOR ACT PROCEDURES.

  (a) Notices.--(1) Notwithstanding any arrangement in effect before 
the date of the enactment of this Act, notices under section 6 of the 
Railway Labor Act (45 U.S.C. 156) with respect to all issues relating 
to--
          (A) employee protective arrangements and severance benefits, 
        including all provisions of Appendix C-2 to the National 
        Railroad Passenger Corporation Agreement, signed July 5, 1973; 
        and
          (B) contracting out by Amtrak of work normally performed by 
        an employee in a bargaining unit covered by a contract between 
        Amtrak and a labor organization representing Amtrak employees,
applicable to employees of Amtrak shall be deemed served and effective 
on the date which is 90 days after the date of the enactment of this 
Act. Amtrak, and each affected labor organization representing Amtrak 
employees, shall promptly supply specific information and proposals 
with respect to each such notice. This subsection shall not apply to 
issues relating to provisions defining the scope or classification of 
work performed by an Amtrak employee.
  (2) In the case of provisions of a collective bargaining agreement 
with respect to which a moratorium is in effect 90 days after the date 
of the enactment of this Act, paragraph (1) shall take effect on the 
expiration of such moratorium. For purposes of the application of 
paragraph (1) to such provisions, notices shall be deemed served and 
effective on the date of such expiration.
  (b) National Mediation Board Efforts.--Except as provided in 
subsection (c), the National Mediation Board shall complete all 
efforts, with respect to each dispute described in subsection (a), 
under section 5 of the Railway Labor Act (45 U.S.C. 155) not later than 
180 days after the date of the enactment of this Act.
  (c) Railway Labor Act Arbitration.--The parties to any dispute 
described in subsection (a) may agree to submit the dispute to 
arbitration under section 7 of the Railway Labor Act (45 U.S.C. 157), 
and any award resulting therefrom shall be retroactive to the date 
which is 180 days after the date of the enactment of this Act.
  (d) Dispute Resolution.--(1) With respect to any dispute described in 
subsection (a) which--
          (A) is unresolved as of the date which is 180 days after the 
        date of the enactment of this Act; and
          (B) is not submitted to arbitration as described in 
        subsection (c),
Amtrak and the labor organization parties to such dispute shall, within 
187 days after the date of the enactment of this Act, each select an 
individual from the entire roster of arbitrators maintained by the 
National Mediation Board. Within 194 days after the date of the 
enactment of this Act, the individuals selected under the preceding 
sentence shall jointly select an individual from such roster to make 
recommendations with respect to such dispute under this subsection.
  (2) No individual shall be selected under paragraph (1) who is 
pecuniarily or otherwise interested in any organization of employees or 
any railroad. Nothing in this subsection shall preclude an individual 
from being selected for more than 1 dispute described in subsection 
(a).
  (3) The compensation of individuals selected under paragraph (1) 
shall be fixed by the National Mediation Board. The second paragraph of 
section 10 of the Railway Labor Act shall apply to the expenses of such 
individuals as if such individuals were members of a board created 
under such section 10.
  (4) If the parties to a dispute described in subsection (a) fail to 
reach agreement within 224 days after the date of the enactment of this 
Act, the individual selected under paragraph (1) with respect to such 
dispute shall make recommendations to the parties proposing contract 
terms to resolve the dispute.
  (5) If the parties to a dispute described in subsection (a) fail to 
reach agreement, no change shall be made by either of the parties in 
the conditions out of which the dispute arose for 30 days after 
recommendations are made under paragraph (4).
  (6) Section 10 of the Railway Labor Act (45 U.S.C. 160) shall not 
apply to a dispute described in subsection (a).

SEC. 302. SERVICE DISCONTINUANCE.

  (a) Repeal.--(1) Section 24706(c) of title 49, United States Code, is 
repealed.
  (2)(A) Any provision of a contract, entered into before the date of 
the enactment of this Act between Amtrak and a labor organization 
representing Amtrak employees, relating to--
          (i) employee protective arrangements and severance benefits, 
        including all provisions of Appendix C-2 to the National 
        Railroad Passenger Corporation Agreement, signed July 5, 1973; 
        or
          (ii) contracting out by Amtrak of work normally performed by 
        an employee in a bargaining unit covered by a contract between 
        Amtrak and a labor organization representing Amtrak employees,
applicable to employees of Amtrak is extinguished. This paragraph shall 
not apply to provisions defining the scope or classification of work 
performed by an Amtrak employee.
  (B) In the case of provisions of a collective bargaining agreement 
with respect to which a moratorium is in effect 90 days after the date 
of the enactment of this Act, subparagraph (A) shall take effect 164 
days after the date of the expiration of such moratorium.
  (3) Section 1172(c) of title 11, United States Code, shall not apply 
to Amtrak and its employees.
  (4) Paragraphs (1) and (2) of this subsection shall take effect 254 
days after the date of the enactment of this Act.
  (b) Intercity Passenger Service Employees.--Section 1165(a) of the 
Northeast Rail Service Act of 1981 (45 U.S.C. 1113(a)) is amended--
          (1) by inserting ``(1)'' before ``After January 1, 1983'';
          (2) by striking ``Amtrak, Amtrak Commuter, and Conrail'' and 
        inserting in lieu thereof ``Amtrak and Conrail'';
          (3) by striking ``Such agreement shall ensure'' and all that 
        follows through ``submitted to binding arbitration.''; and
          (4) by adding at the end the following new paragraph:
  ``(2) Notwithstanding any other provision of law, agreement, or 
arrangement, with respect to employees in any class or craft in train 
or engine service, Conrail shall have the right to furlough one such 
employee for each employee in train or engine service who moves from 
Amtrak to Conrail in excess of the cumulative number of such employees 
who move from Conrail to Amtrak. Conrail shall not be obligated to fill 
any position governed by an agreement concerning crew consist, 
attrition arrangements, reserve boards, or reserve engine service 
positions, where an increase in positions is the result of the return 
of an Amtrak employee pursuant to an agreement entered into under 
paragraph (1). Conrail's collective bargaining agreements with 
organizations representing its train and engine service employees shall 
be deemed to have been amended to conform to this paragraph. Any 
dispute or controversy with respect to the interpretation, application, 
or enforcement of this paragraph which has not been resolved within 90 
days after the date of the enactment of this paragraph may be submitted 
by either party to an adjustment board for a final and binding decision 
under section 3 of the Railway Labor Act.''.
  (c) Technical Amendment.--Section 11347 of title 49, United States 
Code, is amended by striking ``sections 24307(c), 24312, and'' and 
inserting in lieu thereof ``section''.

                  TITLE IV--USE OF RAILROAD FACILITIES

SEC. 401. LIABILITY LIMITATION.

  (a) Amendment.--Chapter 281 of title 49, United States Code, is 
amended by adding at the end the following new section:

``Sec. 28103. Limitations on rail passenger transportation liability

  ``(a) Limitations.--(1) Notwithstanding any other statutory or common 
law or public policy, or the nature of the conduct giving rise to 
damages or liability, in a claim for personal injury, death, or damage 
to property arising from or in connection with the provision of rail 
passenger transportation, or from or in connection with any rail 
passenger transportation operations over or rail passenger 
transportation use of right-of-way or facilities owned, leased, or 
maintained by any high-speed railroad authority or operator, any 
commuter authority or operator, any rail carrier, or any State--
          ``(A) punitive damages shall not exceed the greater of--
                  ``(i) $250,000; or
                  ``(ii) three times the amount of economic loss; and
          ``(B) noneconomic damages awarded to any claimant for each 
        accident or incident shall not exceed the claimant's economic 
        loss, if any, by more than $250,000.
  ``(2) If, in any case wherein death was caused, the law of the place 
where the act or omission complained of occurred provides, or has been 
construed to provide, for damages only punitive in nature, the claimant 
may recover in a claim limited by this subsection for economic and 
noneconomic damages and punitive damages, subject to paragraph (1)(A) 
and (B).
  ``(3) For purposes of this subsection--
          ``(A) the term `actual damages' means damages awarded to pay 
        for economic loss;
          ``(B) the term `claim' means a claim made, directly or 
        indirectly--
                  ``(i) against Amtrak, any high-speed railroad 
                authority or operator, any commuter authority or 
                operator, any rail carrier, or any State; or
                  ``(ii) against an officer, employee, affiliate 
                engaged in railroad operations, or agent, of Amtrak, 
                any high-speed railroad authority or operator, any 
                commuter authority or operator, any rail carrier, or 
                any State;
          ``(C) the term `economic loss' means any pecuniary loss 
        resulting from harm, including the loss of earnings, medical 
        expense loss, replacement services loss, loss due to death, 
        burial costs, loss of business or employment opportunities, and 
        any other form of pecuniary loss allowed under applicable State 
        law or under paragraph (2) of this subsection;
          ``(D) the term `noneconomic damages' means damages other than 
        punitive damages or actual damages; and
          ``(E) the term `punitive damages' means damages awarded 
        against any person or entity to punish or deter such person or 
        entity, or others, from engaging in similar behavior in the 
        future.
  ``(b) Indemnification Obligations.--Obligations of any party, however 
arising, including obligations arising under leases or contracts or 
pursuant to orders of an administrative agency, to indemnify against 
damages or liability for personal injury, death, or damage to property 
described in subsection (a), incurred after the date of the enactment 
of the Amtrak Reform and Privatization Act of 1995, shall be 
enforceable, notwithstanding any other statutory or common law or 
public policy, or the nature of the conduct giving rise to the damages 
or liability.
  ``(c) Effect on Other Laws.--This section shall not affect the 
damages that may be recovered under the Act of April 27, 1908 (45 
U.S.C. 51 et seq.; popularly known as the `Federal Employers' Liability 
Act') or under any workers compensation act.
  ``(d) Definition.--For purposes of this section, the term `rail 
carrier' includes a person providing excursion, scenic, or museum train 
service, and an owner or operator of a privately owned rail passenger 
car.''.
  (b) Conforming Amendment.--The table of sections of chapter 281 of 
title 49, United States Code, is amended by adding at the end the 
following new item:

``28103. Limitations on rail passenger transportation liability.''.

                       TITLE V--FINANCIAL REFORMS

SEC. 501. FINANCIAL POWERS.

  (a) Capitalization.--(1) Section 24304 of title 49, United States 
Code, is amended to read as follows:

``Sec. 24304. Employee stock ownership plans

  ``In issuing stock pursuant to applicable corporate law, Amtrak is 
encouraged to include employee stock ownership plans.''.
  (2) The item relating to section 24304 of title 49, United States 
Code, in the table of sections of chapter 243 of such title is amended 
to read as follows:

``24304. Employee stock ownership plans.''.
  (b) Redemption of Common Stock.--(1) Amtrak shall, within 2 months 
after the date of the enactment of this Act, redeem all common stock 
previously issued, for the fair market value of such stock.
  (2) Section 28103 of title 49, United States Code, shall not apply to 
any rail carrier holding common stock of Amtrak after the expiration of 
2 months after the date of the enactment of this Act.
  (3) Amtrak shall redeem any such common stock held after the 
expiration of the 2-month period described in paragraph (1), using 
procedures set forth in section 24311(a) and (b).
  (c) Elimination of Liquidation Preference and Voting Rights of 
Preferred Stock.--(1)(A) Preferred stock of Amtrak held by the 
Secretary of Transportation shall confer no liquidation preference.
  (B) Subparagraph (A) shall take effect 90 days after the date of the 
enactment of this Act.
  (2)(A) Preferred stock of Amtrak held by the Secretary of 
Transportation shall confer no voting rights.
  (B) Subparagraph (A) shall take effect 60 days after the date of the 
enactment of this Act.
  (d) Note and Mortgage.--(1) Section 24907 of title 49, United States 
Code, and the item relating thereto in the table of sections of chapter 
249 of such title, are repealed.
  (2) The United States hereby relinquishes all rights held in 
connection with any note obtained or mortgage made under such section 
24907, or in connection with the note, security agreement, and terms 
and conditions related thereto entered into with Amtrak dated October 
5, 1983.
  (3) No amount shall be includible in Amtrak's gross income for 
Federal tax purposes as a result of the application of this subsection 
or subsection (c).
  (e) Status and Applicable Laws.--(1) Section 24301(a)(3) of title 49, 
United States Code, is amended by inserting ``, and shall not be 
subject to title 31, United States Code'' after ``United States 
Government''.
  (2) Section 9101(2) of title 31, United States Code, relating to 
Government corporations, is amended by striking subparagraph (A) and 
redesignating subparagraphs (B) through (M) as subparagraphs (A) 
through (L), respectively.

SEC. 502. DISBURSEMENT OF FEDERAL FUNDS.

  Section 24104(d) of title 49, United States Code, is amended to read 
as follows:
  ``(d) Administration of Appropriations.--Federal funds appropriated 
to Amtrak shall be provided to Amtrak upon appropriation when requested 
by Amtrak, and shall not be includible in Amtrak's gross income for 
Federal tax purposes.''.

SEC. 503. BOARD OF DIRECTORS.

  (a) Amendment.--Section 24302 of title 49, United States Code, is 
amended to read as follows:

``Sec. 24302. Board of Directors

  ``(a) Emergency Reform Board.--
          ``(1) Establishment and duties.--The Emergency Reform Board 
        described in paragraph (2) shall assume the responsibilities of 
        the Board of Directors of Amtrak 60 days after the date of the 
        enactment of the Amtrak Reform and Privatization Act of 1995, 
        or as soon thereafter as such Board is sufficiently constituted 
        to function as a board of directors under applicable corporate 
        law. Such Board shall adopt new bylaws, including procedures 
        for the selection of members of the Board of Directors under 
        subsection (c) which provide for employee representation.
          ``(2) Membership.--(A) The Emergency Reform Board shall 
        consist of 7 members appointed by the President, by and with 
        the advice and consent of the Senate.
          ``(B) In selecting individuals for nominations for 
        appointments to the Emergency Reform Board, the President 
        should consult with--
                  ``(i) the Speaker of the House of Representatives 
                concerning the appointment of two members;
                  ``(ii) the minority leader of the House of 
                Representatives concerning the appointment of one 
                member;
                  ``(iii) the majority leader of the Senate concerning 
                the appointment of two members; and
                  ``(iv) the minority leader of the Senate concerning 
                the appointment of one member.
          ``(C) Appointments under subparagraph (A) shall be made from 
        among individuals who--
                  ``(i) have technical qualification, professional 
                standing, and demonstrated expertise in the fields of 
                intercity common carrier transportation and corporate 
                management; and
                  ``(ii) are not employees of Amtrak, employees of the 
                United States, or representatives of rail labor or rail 
                management.
  ``(b) Director General.--If the Emergency Reform Board described in 
subsection (a)(2) is not sufficiently constituted to function as a 
board of directors under applicable corporate law before the expiration 
of 60 days after the date of the enactment of the Amtrak Reform and 
Privatization Act of 1995, the special court established under section 
209(b) of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 
719(b)) shall appoint a Director General, who shall exercise all powers 
of the Board of Directors of Amtrak until the Emergency Reform Board 
assumes such powers.
  ``(c) Board of Directors.--Four years after the establishment of the 
Emergency Reform Board under subsection (a), a Board of Directors shall 
be selected pursuant to bylaws adopted by the Emergency Reform Board, 
and the Emergency Reform Board shall be dissolved.''.
  (b) Effect on Authorizations.--If the Emergency Reform Board has not 
assumed the responsibilities of the Board of Directors of Amtrak before 
March 15, 1996, all provisions authorizing appropriations under the 
amendments made by section 701 of this Act for a fiscal year after 
fiscal year 1996 shall cease to be effective.

SEC. 504. REPORTS AND AUDITS.

  Section 24315 of title 49, United States Code, as amended by section 
208 of this Act, is further amended--
          (1) by striking subsections (a) and (c);
          (2) by redesignating subsections (b), (d), (e), (f), (g), and 
        (h) as subsections (a), (b), (c), (d), (e), and (f), 
        respectively; and
          (3) in subsection (d), as so redesignated by paragraph (2) of 
        this section, by striking ``(d) or (e)'' and inserting in lieu 
        thereof ``(b) or (c)''.

SEC. 505. OFFICERS' PAY.

  Section 24303(b) of title 49, United States Code, is amended by 
inserting ``The preceding sentence shall cease to be effective on the 
expiration of a fiscal year during which no Federal operating 
assistance is provided to Amtrak.'' after ``with comparable 
responsibility.''.

SEC. 506. EXEMPTION FROM TAXES.

  Section 24301(l)(1) of title 49, United States Code, is amended--
          (1) by inserting ``, and any passenger or other customer of 
        Amtrak or such subsidiary,'' after ``subsidiary of Amtrak'';
          (2) by striking ``or fee imposed'' and all that follows 
        through ``levied on it'' and inserting in lieu thereof ``, fee, 
        head charge, or other charge, imposed or levied by a State, 
        political subdivision, or local taxing authority, directly or 
        indirectly on Amtrak or on persons traveling in intercity rail 
        passenger transportation or on mail or express transportation 
        provided by Amtrak or a rail carrier subsidiary of Amtrak, or 
        on the carriage of such persons, mail, or express, or on the 
        sale of any such transportation, or on the gross receipts 
        derived therefrom''; and
          (3) by amending the last sentence thereof to read as follows: 
        ``In the case of a tax or fee that Amtrak was required to pay 
        as of September 10, 1982, Amtrak is not exempt from such tax or 
        fee if it was assessed before April 1, 1995.''.

                        TITLE VI--MISCELLANEOUS

SEC. 601. TEMPORARY RAIL ADVISORY COUNCIL.

  (a) Appointment.--Within 30 days after the date of the enactment of 
this Act, a Temporary Rail Advisory Council (in this section referred 
to as the ``Council'') shall be appointed under this section.
  (b) Duties.--The Council shall--
          (1) evaluate Amtrak's performance;
          (2) prepare an analysis and critique of Amtrak's business 
        plan;
          (3) suggest strategies for further cost containment and 
        productivity improvements, including strategies with the 
        potential for further reduction in Federal operating subsidies 
        and the eventual partial or complete privatization of Amtrak's 
        operations; and
          (4) recommend appropriate methods for adoption of uniform 
        cost and accounting procedures throughout the Amtrak system, 
        based on generally accepted accounting principles.
  (c) Membership.--(1) The Council shall consist of 7 members appointed 
as follows:
          (A) Two individuals to be appointed by the Speaker of the 
        House of Representatives.
          (B) One individual to be appointed by the minority leader of 
        the House of Representatives.
          (C) Two individuals to be appointed by the majority leader of 
        the Senate.
          (D) One individual to be appointed by the minority leader of 
        the Senate.
          (E) One individual to be appointed by the President.
  (2) Appointments under paragraph (1) shall be made from among 
individuals who--
          (A) have technical qualification, professional standing, and 
        demonstrated expertise in the fields of transportation and 
        corporate management; and
          (B) are not employees of Amtrak, employees of the United 
        States, or representatives of rail labor or rail management.
  (3) Within 40 days after the date of the enactment of this Act, a 
majority of the members of the Council shall elect a chairman from 
among such members.
  (d) Travel Expenses.--Each member of the Council shall serve without 
pay, but shall receive travel expenses, including per diem in lieu of 
subsistence, in accordance with sections 5702 and 5703 of title 5, 
United States Code.
  (e) Administrative Support.--The Secretary of Transportation shall 
provide to the Council such administrative support as the Council 
requires to carry out this section.
  (f) Access to Information.--Amtrak shall make available to the 
Council all information the Council requires to carry out this section. 
The Council shall establish appropriate procedures to ensure against 
the public disclosure of any information obtained under this subsection 
which is a trade secret or commercial or financial information that is 
privileged or confidential.
  (g) Reports.--(1) Within 120 days after the date of the enactment of 
this Act, the Council shall transmit to the Amtrak board of directors 
and the Congress an interim report on its findings and recommendations.
  (2) Within 270 days after the date of the enactment of this Act, the 
Council shall transmit to the Amtrak board of directors and the 
Congress a final report on its findings and recommendations.
  (h) Status.--The Council shall not be subject to the Federal Advisory 
Committee Act (5 U.S.C. App.) or section 552 of title 5, United States 
Code (commonly referred to as the Freedom of Information Act).

SEC. 602. PRINCIPAL OFFICE AND PLACE OF BUSINESS.

  Section 24301(b) of title 49, United States Code, is amended--
          (1) by striking the first sentence;
          (2) by striking ``of the District of Columbia'' and inserting 
        in lieu thereof ``of the State in which its principal office 
        and place of business is located''; and
          (3) by inserting ``For purposes of this subsection, the term 
        `State' includes the District of Columbia. Notwithstanding 
        section 3 of the District of Columbia Business Corporation Act, 
        Amtrak, if its principal office and place of business is 
        located in the District of Columbia, shall be considered 
        organized under the provisions of such Act.'' after ``in a 
        civil action.''.

SEC. 603. STATUS AND APPLICABLE LAWS.

  Section 24301 of title 49, United States Code, is amended--
          (1) in subsection (a)(1), by striking ``rail carrier under 
        section 10102'' and inserting in lieu thereof ``railroad 
        carrier under section 20102(2) and chapters 261 and 281''; and
          (2) by amending subsection (c) to read as follows:
  ``(c) Application of Subtitle IV.--Subtitle IV of this title shall 
not apply to Amtrak, except for sections 11303, 11342(a), 11504 (a) and 
(d), and 11707. Notwithstanding the preceding sentence, Amtrak shall 
continue to be considered an employer under the Railroad Retirement Act 
of 1974, the Railroad Unemployment Insurance Act, and the Railroad 
Retirement Tax Act.''.

SEC. 604. WASTE DISPOSAL.

  Section 24301(m)(1)(A) of title 49, United States Code, is amended by 
striking ``1996'' and inserting in lieu thereof ``2001''.

SEC. 605. ASSISTANCE FOR UPGRADING FACILITIES.

  Section 24310 of title 49, United States Code, and the item relating 
thereto in the table of sections of chapter 243 of such title, are 
repealed.

SEC. 606. RAIL SAFETY SYSTEM PROGRAM.

  Section 24313 of title 49, United States Code, and the item relating 
thereto in the table of sections of chapter 243 of such title, are 
repealed.

SEC. 607. DEMONSTRATION OF NEW TECHNOLOGY.

  Section 24314 of title 49, United States Code, and the item relating 
thereto in the table of sections of chapter 243 of such title, are 
repealed.

SEC. 608. PROGRAM MASTER PLAN FOR BOSTON-NEW YORK MAIN LINE.

  (a) Repeal.--Section 24903 of title 49, United States Code, and the 
item relating thereto in the table of sections of chapter 249 of such 
title, are repealed.
  (b) Conforming Amendment.--Section 24902(a)(1)(A) of title 49, United 
States Code, is amended by striking ``and 40 minutes''.

SEC. 609. BOSTON-NEW HAVEN ELECTRIFICATION PROJECT.

  Section 24902(f) of title 49, United States Code, is amended--
          (1) by inserting ``(1)'' before ``Improvements under''; and
          (2) by adding at the end the following new paragraph:
  ``(2) Amtrak shall design and construct the electrification system 
between Boston, Massachusetts, and New Haven, Connecticut, to 
accommodate the installation of a third mainline track between 
Davisville and Central Falls, Rhode Island, to be used for double-stack 
freight service to and from the Port of Davisville. Amtrak shall also 
make clearance improvements on the existing main line tracks to permit 
double stack service on this line, if funds to defray the costs of 
clearance improvements beyond Amtrak's own requirements for electrified 
passenger service are provided by public or private entities other than 
Amtrak. Wherever practicable, Amtrak shall use portal structures and 
realign existing tracks on undergrade and overgrade bridges to minimize 
the width of the right-of-way required to add the third track. Amtrak 
shall take such other steps as may be required to coordinate and 
facilitate design and construction work. The Secretary of 
Transportation may provide appropriate support to Amtrak for carrying 
out this paragraph.''.

SEC. 610. AMERICANS WITH DISABILITIES ACT OF 1990.

  (a) Application to Amtrak.--Amtrak shall not be subject to any 
requirement under section 242 (a)(1) and (3) and (e)(2) of the 
Americans With Disabilities Act of 1990 (42 U.S.C. 12162 (a)(1) and (3) 
and (e)(2)) until January 1, 1998.
  (b) Conforming Amendment.--Section 24307 of title 49, United States 
Code, is amended--
          (1) by striking subsection (b); and
          (2) by redesignating subsection (c) as subsection (b).

SEC. 611. DEFINITIONS.

  Section 24102 of title 49, United States Code, is amended--
          (1) by striking paragraphs (2), (3), and (11);
          (2) by redesignating paragraphs (4) through (8) as paragraphs 
        (2) through (6), respectively;
          (3) by inserting after paragraph (6), as so redesignated by 
        paragraph (2) of this section, the following new paragraph:
          ``(7) `rail passenger transportation' means the interstate, 
        intrastate, or international transportation of passengers by 
        rail;'';
          (4) in paragraph (6), as so redesignated by paragraph (2) of 
        this section, by inserting ``, including a unit of State or 
        local government,'' after ``means a person''; and
          (5) by redesignating paragraphs (9) and (10) as paragraphs 
        (8) and (9), respectively.

SEC. 612. NORTHEAST CORRIDOR COST DISPUTE.

  Section 1163 of the Northeast Rail Service Act of 1981 (45 U.S.C. 
1111) is repealed.

SEC. 613. INSPECTOR GENERAL ACT OF 1978 AMENDMENT.

  (a) Amendment.--Section 8G(a)(2) of the Inspector General Act of 1978 
(5 U.S.C. App.) is amended by striking ``Amtrak,''.
  (b) Amtrak Not Federal Entity.--Amtrak shall not be considered a 
Federal entity for purposes of the Inspector General Act of 1978.

SEC. 614. CONSOLIDATED RAIL CORPORATION.

  Section 4023 of the Conrail Privatization Act (45 U.S.C. 1323), and 
the item relating thereto in the table of contents of such Act, are 
repealed.

SEC. 615. INTERSTATE RAIL COMPACTS.

  (a) Consent to Compacts.--Congress grants consent to States with an 
interest in a specific form, route, or corridor of intercity passenger 
rail service (including high speed rail service) to enter into 
interstate compacts to promote the provision of the service, 
including--
          (1) retaining an existing service or commencing a new 
        service;
          (2) assembling rights-of-way; and
          (3) performing capital improvements, including--
                  (A) the construction and rehabilitation of 
                maintenance facilities and intermodal passenger 
                facilities;
                  (B) the purchase of locomotives; and
                  (C) operational improvements, including 
                communications, signals, and other systems.
  (b) Financing.--An interstate compact established by States under 
subsection (a) may provide that, in order to carry out the compact, the 
States may--
          (1) accept contributions from a unit of State or local 
        government or a person;
          (2) use any Federal or State funds made available for 
        intercity passenger rail service (except funds made available 
        for the National Railroad Passenger Corporation);
          (3) on such terms and conditions as the States consider 
        advisable--
                  (A) borrow money on a short-term basis and issue 
                notes for the borrowing; and
                  (B) issue bonds; and
          (4) obtain financing by other means permitted under Federal 
        or State law.

SEC. 616. CONFORMING AMENDMENT.

  Section 10362(b) of title 49, United States Code, is amended by 
striking paragraph (5) and redesignating paragraphs (6) through (8) as 
paragraphs (5) through (7), respectively.

               TITLE VII--AUTHORIZATION OF APPROPRIATIONS

SEC. 701. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--Section 24104(a) of title 49, United States Code, is 
amended to read as follows:
  ``(a) In General.--There are authorized to be appropriated to the 
Secretary of Transportation--
          ``(1) $772,000,000 for fiscal year 1995;
          ``(2) $712,000,000 for fiscal year 1996;
          ``(3) $712,000,000 for fiscal year 1997;
          ``(4) $712,000,000 for fiscal year 1998; and
          ``(5) $403,000,000 for fiscal year 1999,
for the benefit of Amtrak for capital expenditures under chapters 243 
and 247 of this title, operating expenses, and payments described in 
subsection (c)(1)(A) through (C).''.
  (b) Additional Authorizations.--Section 24104(b) of title 49, United 
States Code, is amended to read as follows:
  ``(b) Additional Authorizations.--(1) In addition to amounts 
appropriated under subsection (a), there are authorized to be 
appropriated to the Secretary of Transportation--
          ``(A) $200,000,000 for fiscal year 1995;
          ``(B) $200,000,000 for fiscal year 1996;
          ``(C) $200,000,000 for fiscal year 1997;
          ``(D) $200,000,000 for fiscal year 1998; and
          ``(E) $200,000,000 for fiscal year 1999,
for the benefit of Amtrak to make capital expenditures under chapter 
249 of this title.
  ``(2) In addition to amounts appropriated under subsection (a), there 
are authorized to be appropriated to the Secretary of Transportation--
          ``(A) $21,500,000 for fiscal year 1995;
          ``(B) $10,000,000 for fiscal year 1996;
          ``(C) $10,000,000 for fiscal year 1997;
          ``(D) $10,000,000 for fiscal year 1998; and
          ``(E) $10,000,000 for fiscal year 1999,
for the benefit of Amtrak to be used for engineering, design, and 
construction activities to enable the James A. Farley Post Office in 
New York, New York, to be used as a train station and commercial center 
and for necessary improvements and redevelopment of the existing 
Pennsylvania Station and associated service building in New York, New 
York.''.
  (c) Conforming Amendments.--Section 24909 of title 49, United States 
Code, and the item relating thereto in the table of sections of chapter 
249 of such title, are repealed.
  (d) Guarantee of Obligations.--There are authorized to be 
appropriated to the Secretary of Transportation--
          (1) $50,000,000 for fiscal year 1996;
          (2) $50,000,000 for fiscal year 1997;
          (3) $50,000,000 for fiscal year 1998; and
          (4) $50,000,000 for fiscal year 1999,
for guaranteeing obligations of Amtrak under section 511 of the 
Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
831).
  (e) Conditions for Guarantee of Obligations.--Section 511(i) of the 
Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
831(i)) is amended by adding at the end the following new paragraph:
  ``(4) The Secretary shall not require, as a condition for guarantee 
of an obligation under this section, that all preexisting secured 
obligations of an obligor be subordinated to the rights of the 
Secretary in the event of a default.''.

                          Purpose and Summary

    On June 8, 1995, H.R. 1788, the Amtrak Reauthorization and 
Privatization Act of 1995 was introduced. Amtrak's previous 
authorization expired on September 30, 1994. H.R. 1788 
authorizes appropriations totaling $3.58 billion over the 
fiscal years 1996-1999 for Amtrak and represents a thorough 
overhaul of Amtrak's authorizing statutes, aimed at reducing 
costs and eliminating Federal micromanagement of Amtrak's 
operations.
    H.R. 1788 provides Amtrak with far greater flexibility in 
managing its work force. H.R. 1788 calls for an accelerated 
bargaining process on the issue of contracting out work and on 
the issue of labor protection. At the end of the bargaining 
process (254 days in total), both Amtrak's statutory ban on 
contracting out work other than food and beverage service and 
pre-enactment contract terms that implement that ban, as well 
as all statutory and contract terms relating to labor 
protection, would lapse. At that point, labor and management 
could employ ``self-help'' measures under the Railway Labor 
Act. Any union with a current contract moratorium in force at 
the date of enactment would begin negotiations when the 
moratorium expires.
    Also, H.R. 1788 provides that ICC (``New York Dock'') labor 
protection standards do not apply in the event of an Amtrak 
bankruptcy and revises the Northeast Rail Service Act to 
restrict but not eliminate ``flowback'' labor protection rights 
for employees who joined Amtrak from Conrail or its predecessor 
railroads.
    The bill also provides Amtrak with flexibility in designing 
and managing its route system. H.R. 1788 repeals Amtrak's 
current obligation to operate the ``basic system'' of routes 
(consisting primarily of routes inherited from private 
railroads in 1971), unless excused by financial emergency or 
insufficient funding. Under the legislation, Amtrak would 
decide the merits of various routes according to commercial 
potential, not arbitrary statutory preference. Further, the 
bill eliminates current statutory criteria for evaluating 
routes and services, and the statutory matching formula that 
currently applies to State-requested service. To assist the 
States in contributing to continued rail service in cases where 
Amtrak is no longer able to offer service entirely on its own, 
the bill provides for interstate compact pre-approval, allowing 
the States to enter into long-term agreements with each other 
that ensure stability in the provision of rail service.
    H.R. 1788 establishes a new procedure by which commuter 
authorities on the Northeast Corridor would compensate Amtrak 
for their use of the Corridor. Under the current practice, 
commuter authorities pay Amtrak only for the incremental costs 
of their use of the Corridor, but not for the shared capital 
costs. Outside the Northeast Corridor, commuter authorities 
simply negotiate the terms of their use of right-of-way with 
the owner of the property, whether a State entity or a private 
freight railroad. H.R. 1788 would place Northeast Corridor 
commuter operators on the same footing as their off-Corridor 
counterparts by repealing the statutory formula by which 
commuters reimburse Amtrak. Henceforward, Amtrak and the 
commuter authorities would negotiate the terms for 
reimbursement according to standard business practices. Any 
disputes that could not be resolved by the parties would be 
submitted to binding arbitration, with the Interstate Commerce 
Commission available as an arbitrator if chosen by the parties.
    Further, H.R. 1788 contains dramatic financial reforms that 
will afford Amtrak many more options in obtaining private 
financing. The bill calls for Amtrak to redeem all of its 
common stock (now held with one exception by freight 
railroads), and removes the voting rights and liquidation 
preference of the preferred stock now held exclusively by the 
Department of Transportation. DOT's note and mortgage on the 
Northeast Corridor are extinguished as well. This would have 
the benefit of removing DOT as a preferred creditor who stands 
ahead of other potential commercial lenders in all Amtrak 
financial transactions.
    H.R. 1788 also provides for new leadership at Amtrak to 
deal with Amtrak's financial crisis. Sixty days after 
enactment, the existing board of directors would be removed, to 
be replaced by a 4-year emergency reform board to be appointed 
by the President in consultation with the Congressional 
leadership. All new board members would be required to have 
background and expertise in transportation and business 
management and would be confirmed by the Senate.
    The bill also resolves an issue of longstanding concern to 
Amtrak and to the freight railroads over which Amtrak operates 
and removes a major barrier to the expansion of passenger rail 
service--exposure to tort liability from passenger train 
accidents. This exposure results from the usually involuntary 
participation of the freight railroad as a provider of 
facilities and infrastructure. H.R. 1788 establishes two limits 
on tort liability exposure of freight and passenger carriers 
who operate or provide facilities for rail passenger service: 
(1) a cap of $250,000 or three times noneconomic damages, 
whichever is greater, on punitive or exemplary damages, and (2) 
a cap of $250,000 above economic losses per claimant on 
noneconomic damages. The bill also affirms that indemnity 
contracts between a passenger rail operator and any other party 
are fully enforceable without regard to any other law or public 
policy.
    Finally, to assist Amtrak's efforts to reach financial 
stability and eventual removal from dependence on Federal 
assistance, H.R. 1788 calls for the establishment of a 7-member 
advisory council of business experts who have no affiliation 
with the railroad industry, Amtrak, or the United States 
Government. Called the Temporary Rail Advisory Council (TRAC), 
this expert body is to submit an interim report within 120 days 
of enactment and a final report within 270 days of enactment. 
The reports are to evaluate Amtrak's performance, business 
plan, cost-containment and productivity-improvement strategies, 
and cost and accounting procedures and recommend actions Amtrak 
can take to reduce Federal subsidies to achieve a complete or 
partial privatization.

                  Background and Need for Legislation

    A February 1995 General Accounting Office report, entitled 
``Intercity Passenger Rail: Financial and Operating Conditions 
Threaten Amtrak's Long-Term Viability,'' found that:
          Amtrak's financial and operating conditions have 
        declined steadily since 1990, and Amtrak's ability to 
        provide nationwide service at the present level is now 
        seriously threatened. * * * It is unlikely that Amtrak 
        can overcome its problems in financing, capital 
        investments, and service quality--and continue to 
        operate the present nationwide system--without 
        significant increases in passenger revenues and/or 
        subsidies from Federal, State, and local governments.
The GAO report confirmed what many Amtrak passengers have known 
for a long time--that underinvestment in Amtrak's equipment and 
facilities has begun to manifest itself in the form of 
declining service quality and reduced reliability. For example, 
the GAO found that the average age of Amtrak's cars is 22 
years--about equal to what it was when Amtrak began operations 
with used private railroad equipment in 1971. The advanced age 
of the cars is exacerbated by a slowdown in equipment overhauls 
due to funding shortages in the late 1980s. In 1993, heavy 
overhauls were overdue for nearly 40 percent of Amtrak's feet. 
This capital investment deferral has a cascading effect: 
investments are not made due to a lack of funds, so service 
quality deteriorates and passengers find other means of travel 
leading to a further decline in revenues.
    Unfortunately, given Federal budget pressures, a major 
increase in Amtrak funding is not on the horizon. The House 
1996 Budget Resolution eliminated Federal capital and operating 
subsidies for Amtrak by the year 2002, and the Senate 1996 
Budget Resolution provided for substantially reduced subsidies 
over the 7 years. Further, the FY 1996 Transportation and 
Related Agencies Appropriations Act is likely to provide a 
substantial decrease in FY 1996 Amtrak funding compared to FY 
1995. (A decrease of approximately 25 percent in total funding 
is likely, given the current conference funding level.) 
Dramatic restructuring of Amtrak's operations that questions 
all of the basic assumptions upon which Amtrak was originally 
formed is a vital necessity. H.R. 1788 represents a thorough 
overhaul of Amtrak's corporate structure and labor requirements 
aimed at rescuing Amtrak from potential liquidation and 
preserving intercity passenger rail service in this country.
    Amtrak has already begun to address its financial crisis. 
In December 1994, Amtrak officials announced that without 
immediate economy moves, Amtrak would run short of FY 1995 
funds by June 1995, with a cash shortfall of almost $200 
million. Amtrak has initiated an aggressive 5-year business 
plan aimed at reducing costs and increasing productivity. In FY 
1995 routes have been eliminated and service reduced to lower 
costs to bring Amtrak's budget into balance by the end of the 
fiscal year. These cuts amount to 20 percent of Amtrak's annual 
train-miles and affect 41 States. In addition, 1,500 employees 
have been laid off. Additional plans include retiring Amtrak's 
oldest cars, replacing Amtrak's non-diner, non-specialty cars 
with modern cars, and continued reductions in employment.
    To date, Amtrak has been successful in its cost reduction 
efforts and is currently ahead of schedule in meeting the 
targets set forth in its business plan. Amtrak had assumed that 
it needed to generate $36 million in bottom-line improvements 
by April, yet the most recent GAO reports show that Amtrak had 
already generated $58 million in savings at that time. Even 
more encouraging, Amtrak's revenues are higher than 
anticipated, thus supporting Amtrak's assumption that it could 
reduce frequency without incurring a proportionate reduction in 
ridership. The Committee commends Amtrak for its efforts in 
taking actions required to complete the fiscal year with a 
balanced budget.
    Unfortunately, however, Amtrak's financial woes are not 
limited to a potential operating shortfall in FY 1995. The GAO 
has reported that underinvestment in Amtrak's physical assets 
over the last decade has produced a substantial backlog in 
unmet capital needs, for which a total of between $4 billion 
and $5 billion is required. Major investments are required to 
purchase new equipment, conduct equipment overhauls, modernize 
maintenance facilities, and return the Northeast Corridor to a 
decent state of repair. If these investments are not made, 
Amtrak's service quality will continue to deteriorate, leading 
to a decline in ridership and increased operating costs. In the 
long term, without major reforms and dramatic restructuring, 
this will mean the end of Amtrak.

                             Labor Reforms

    The Committee recognizes that, if Amtrak is to survive, 
sacrifices will have to be made by all present beneficiaries of 
Federal spending on Amtrak, including Amtrak's employees. Gone 
are the days when Amtrak employees could enjoy exceptionally 
generous severance benefits and outsourcing restrictions that 
far surpass the standards for other U.S. passenger carriers. 
The Committee believes that, since Amtrak is a taxpayer-funded 
corporation, it should be operated as efficiently as possible 
to give the taxpayers the greatest return for their investment.
    Labor protection.--Currently, Amtrak is subject to 
statutory labor protection provisions for its own employees, 
commonly referred to as ``C-2,'' after the 1973 appendix to 
Amtrak's operating agreements that specified the benefit 
package. The agreement was entered into under a statutory 
mandate, now recodified as 49 U.S.C. 24706(c), that Amtrak 
provide ``fair and equitable arrangements'' to protect 
employees whose jobs are affected by service discontinuances. 
Under the same statutory mandate, Amtrak was required to make 
labor protection agreements covering former private railroad 
employees who transferred to Amtrak; these arrangements are 
known as the ``C-1'' appendix.
    The C-2 agreement provides for one year of wage 
continuation for each year of prior service (up to a maximum of 
6 years' pay) to each employee whose job is terminated or pay 
and benefits reduced due to a route elimination or frequency 
reduction below three trains weekly. In a departure from all 
previous (and subsequent) mandated labor protection 
arrangements for other railroads, the C-2 agreement applies to 
management employees of Amtrak, in addition to employees 
subject to collective bargaining agreements. Thus, Amtrak is 
unique in having each white-collar management employee eligible 
for up to 6 years of salary continuation if he can establish 
that the abolition of his position (or adverse effect on salary 
and benefits) was due to a service discontinuance or frequency 
reduction below three times weekly.
    A second unique feature of the Amtrak labor protection 
package, without counterpart in freight railroad labor-
protection agreements, is the ``30-mile rule.'' This provision 
stipulates that a covered employee can invoke the full wage-
continuation and severance benefits if Amtrak seeks to move his 
work location 30 miles or more. Actually, if the employee 
already lives 30 or more miles from his work location, any 
transfer (1 mile, 5 miles, etc.) can trigger the option to take 
labor protection benefits in lieu of the transfer. In some 
cases the ``30-mile rule'' has been altered by subsequent 
contract.
    The current labor protection mandates affect Amtrak's 
operations in a wide variety of scenarios, ranging from service 
discon- tinuations (i.e., eliminating routes or reducing 
service below 3 trains per week) to partial or complete 
liquidation of Amtrak. For the extreme situation involving 
complete liquidation, the GAO has estimated that the total 
labor protection obligation of Amtrak would cost between $2.1 
billion and $5.2 billion-- up to more than five times the total 
annual Federal funding for Amtrak.
    Even if liquidation options are not considered, the current 
requirements impose major operational handicaps on Amtrak. The 
30-mile rule seriously reduces, and could virtually eliminate, 
Amtrak's ability to redeploy its work force from the least 
promising routes to those with the most revenue potential. And 
in redesigning its route system to reduce costs, Amtrak has had 
to rely on frequency reductions (as distinguished from closure 
or relocation of routes) in many cases simply to avoid 
triggering C-2 payments.
    The Committee notes that the actual payout of labor 
protection benefits--generally rather small up to now--is not 
the critical problem. Rather, it is the large and potentially 
debilitating opportunity cost that the C-2 requirements impose 
on any attempts by Amtrak to streamline and redeploy its work 
force. In short, the real costs of statutorily mandated labor 
protection lie not in the actual payments to employees, but in 
the other continuing costs imposed on Amtrak by depriving it of 
the ability to make normal business decisions about 
redeployment of its personnel and equipment to match changing 
market conditions.
    Contracting out.--Congress has also imposed restrictions on 
Amtrak's ability to contract out work. Currently, Amtrak is 
subject to a statutory ban on all contracting out work other 
than food and beverage service if the contracting results in 
the layoff of a single employee in a bargaining unit. Thus, by 
the terms of the statute, an adverse effect on a single 
employee forecloses any contracting out, irrespective of cost 
savings or efficiency gains.
    This ban is particularly onerous in light of Amtrak's 
tremendous backlog of unmet capital needs. Although usually 
considered to provide primarily operating savings through 
reduced labor costs, the ability to contract out for Amtrak is 
actually more important as a means to provide desperately 
needed capital savings. For example, Amtrak's maintenance 
facilities were built, in some cases, in the 19th century and 
are in a state of extreme disrepair. GAO's February 1992 report 
noted that at one major facility, Amtrak's newest diesel 
locomotives are too large to fit inside the locomotive shop 
building. Standing derailments are common at these facilities, 
and seats are stored outdoors because there is insufficient 
indoor storage space. The GAO has estimated that $262 million 
is required to repair and modernize Amtrak's principal 
facilities.
    The ability to contract out would permit Amtrak to hire 
elsewhere for this work, saving the taxpayers $262 million that 
could be spent to retain rail service or make improvements to 
service quality. Other railroads and suppliers to the railroad 
industry have the facilities to provide maintenance and other 
services to Amtrak without Amtrak's having to bear the very 
large cost of constructing (or replacing) and maintaining very 
expensive in-house facilities. In other words, even if the 
ability to contract out produced no labor cost savings at all, 
it would still be a vital necessity for Amtrak to obtain the 
use of adequate capital resources needed to provide continued 
rail passenger service.

                             Privatization

    When Congress created Amtrak in 1970, it established Amtrak 
as a corporation--not a Federal agency--under the laws of the 
District of Columbia. However, Amtrak's corporate structure 
contains a number of public features. For example, the 
Department of Transportation is the sole holder of preferred 
stock, which gives the Federal Government a preference over 
common stockholders in claiming any Amtrak assets in the event 
of a liquidation. (Amtrak also has common stock--generally 
considered to have no market value, but carried on Amtrak's 
books at about $93 million--which was issued to certain freight 
railroads at their option instead of a tax credit for the 
private railroads' cash or equipment ``buy-ins'' that helped 
provide Amtrak with its initial capital.) DOT also holds a 999-
year lien on the Northeast Corridor, which means that title to 
the Northeast Corridor would revert to DOT if Amtrak were to 
shut down. Further, Amtrak's board of directors is appointed by 
the President and the Secretary of Transportation, and the 
Secretary of Transportation is an ex officio member of the 
board of directors.
    H.R. 1788 goes a long way toward clarifying Amtrak's status 
as a private entity. First, Amtrak is required to redeem its 
common stock at fair market value. Second, DOT's liquidation 
preference and voting rights that attach to its preferred stock 
are extinguished. Also, DOT's note and mortgage on the 
Northeast Corridor are relinquished. These steps will free 
Amtrak to enter into commercial financing arrangements that 
maximize the utility of Amtrak's assets, including its real 
estate holdings, without first having to obtain a DOT waiver. 
The bill encourages Amtrak to include employee stock ownership 
plans as part of any new stock issuances.
    A key feature of H.R. 1788 is its change in the structure 
of the board of directors. Currently, the 9-member board of 
directors is appointed by the President and the Secretary of 
Transportation. In some cases, members must by law be selected 
from lists provided by certain interest groups pursuant to 
specific statutory recognition of the groups. The Committee is 
aware that some legal analysts consider the existing board to 
be a violation of the Appointments Clause of the Constitution, 
because some of the President's appointments are restricted to 
names from lists provided by outside groups.
    H.R. 1788 would establish a new 4-year temporary emergency 
reform board of directors. This new board would establish the 
bylaws under which future boards of directors would be 
appointed, just as other private companies determine who sits 
on their boards. The only requirement imposed by H.R. 1788 for 
such future boards is that they include employee 
representation.
    The temporary emergency reform board would be a 7-member 
board appointed by the President in consultation with the 
Congressional leadership. All members would be Senate-
confirmed. If the temporary board is not in place 60 days after 
enactment, the special rail court established under the 
Regional Rail Reorganization Act of 1973 would appoint a 
``director general'' to exercise the powers of the board until 
the new board of directors is appointed. The main task of the 
temporary emergency reform board would be to usher Amtrak 
through its current fiscal crisis and to establish procedures 
for future boards to be selected.

                            Liability Reform

    Reforms to Amtrak's liability arrangements with the freight 
railroads are tied directly to Amtrak's budget situation. The 
current liability arrangement leaves the freight railroads, 
over whose tracks Amtrak operates by law, potentially exposed 
to the full cost of a passenger rail accident. This raises 
Amtrak costs, since the fees that Amtrak pays to the freight 
railroads include the cost of that liability, including 
insurance--if available--that freight railroads have to 
purchase to cover their liability exposure.
    The current liability arrangement between Amtrak and the 
freight railroads is tied to Amtrak's compulsory access to the 
freight railroads' rights-of-way. Outside the Northeast 
Corridor, Amtrak operates over the freight railroads' rights-
of-way (except for two segments owned by Amtrak in upstate New 
York and in Michigan). Amtrak's access to freight railroad 
tracks and facilities is guaranteed by Federal law, so the 
freight railroads cannot refuse Amtrak access, but are entitled 
to compensation on an incremental cost basis. If Amtrak and the 
freight railroads cannot reach a voluntary agreement on the 
terms and conditions of access, the Interstate Commerce 
Commission sets the terms, including the level of compensation. 
Payments by Amtrak for use of the freight railroad facilities 
total between $90 million and $100 million annually.
    Amtrak's access and payments to the freight railroads are 
governed by 25-year access agreements signed in 1971 when 
Amtrak began operations. These expire in April 1996. Virtually 
all the existing agreements contain a ``no-fault'' indemnity 
provision stating that, regardless of fault, the freight 
railroad will bear all property and injury losses to its own 
equipment and personnel, and Amtrak will do the same for its 
equipment and personnel, including passengers.
    However, after the 1987 Chase, Maryland, accident involving 
the collision of an Amtrak train and a Conrail freight 
locomotive, the U.S. District Court for the District of 
Columbia ruled that enforcement of the indemnification 
agreement between Amtrak and Conrail would violate public 
policy since gross negligence on the part of the Conrail 
locomotive engineer was alleged as the cause of the accident. 
This avoided a large taxpayer-funded expense in the short term, 
but in the long run convinced the entire freight industry that 
the indemnity agreements offered no real legal protection.
    Since all access agreements expire in 1996, failure by 
Congress to provide any containment of rail passenger liability 
will mean that the incremental costs charged to Amtrak are 
likely to include a substantially increased component to cover 
the liability exposure (whether insured or not). This could 
make the price of access prohibitively expensive for Amtrak and 
thus curtail or prevent rail passenger operations. Amtrak is 
already reserving nearly $200 million on its books to cover 
liability exposure (including employee claims under the Federal 
Employers' Liability Act, which are unaffected by H.R. 1788). 
With the threat of runaway jury verdicts, Amtrak's liability, 
litigation, and insurance costs are likely only to increase, 
thus imposing added costs on the taxpayers.
    It should be noted that there is precedent for limitations 
on liability in domestic transportation due to the taxpayer-
funded nature of the activity. A number of State laws and court 
decisions have served to limit liability in taxpayer-funded 
transportation, including in New York (the Long Island 
Railroad), Pennsylvania (Southeastern Pennsylvania 
Transportation Authority), New Jersey (New Jersey Transit) and 
Illinois (Chicago Transit). In addition, a 1990 Federal law 
limits the liability exposure of the Virginia Railway Express 
commuter authority. In general, the rationale for imposing 
limitations on liability in public transportation is to 
encourage certain activities that yield substantial social 
benefits that otherwise would not be undertaken due to the 
exposure to liability, and to protect the taxpayers who 
ultimately bear the costs of tort liability incurred in 
providing the public transportation.
    The Committee rejects the contention that restrictions on 
liability will adversely impact rail safety. This allegation 
ignores the fact that there are significant incentives in place 
outside of tort liability for railroads to continue sound 
safety practices. Railroad safety is subject to regulation by 
the Federal Railroad Administration. Under current law, any 
single violation of a Federal safety law or regulation can 
subject an individual or a company to a fine from $500 to 
$10,000--with the maximum increase to $20,000 for willful 
violations. (There is a separate schedule for violations of the 
Hours of Service Act.) Total civil penalties collected by the 
Federal Railroad Administration in FY 1994 were $7.94 million.
    In addition, in the wake of the 1987 Chase, Maryland, 
accident, in which the locomotive engineer who caused the 
accident was found to have been drug-impaired, Congress amended 
the Federal Railroad Safety Act to grant direct personal 
jurisdiction over railroad employees in safety-sensitive 
positions. (Previously, only the rail carrier itself had been 
subject to Federal regulation, penalties, and discipline.) 
Also, mandatory random drug testing, alcohol testing, and pre-
employment drug testing became standard features of the Federal 
railroad safety program. In addition, Federal rail safety laws 
were amended to require Federal certification of engineers, 
using mandatory training standards and procedures analogous to 
FAA standards for pilots. It should also be noted that the 
locomotive engineer involved in the Chase, Maryland, accident 
was convicted on criminal manslaughter charges and was sent to 
prison. In short, it is clear that adequate incentives remain 
in place to ensure the continued safe operation of the nation's 
rail system.
    The Committee believes that a crucial feature of the 
liability reform provision is the affirmation of the right of 
owners of rights-of-way and passenger operators to indemnify by 
contract. Because of the court ruling in the wake of the Chase, 
Maryland, accident, existing contractual indemnity arrangements 
do not afford a reliable allocation of risk among the 
contracting parties. Without the confirmation that indemnity 
agreements will be upheld in court, future passenger 
operations, whether commuter, high-speed rail, or intercity 
rail, will be placed in jeopardy as freight railroads resist 
taking on what is increasingly viewed as an unacceptable and 
uncompensated liability exposure.

                          State Participation

    One of the greatest changes at Amtrak during the last year 
is the increased participation on the part of the States in 
funding Amtrak service. The Committee is pleased that the 
States have exhibited such strong support for Amtrak service 
and encourages their continued participation in preserving 
intercity rail service. Several features of H.R. 1788 are 
designed to assist the States in this endeavor.
    From Amtrak's beginning in 1971 until this year, it has 
been unique among passenger transportation services in that its 
public funding came almost entirely from the Federal 
government. Both the highways and mass transit programs require 
a State match for Federal funds, and States and local entities 
contribute substantially to construction of airports. Until 
recently, however, outside of service that Amtrak initiated at 
State request, Amtrak service has been funded solely through 
farebox revenues and Federal subsidies.
    With Amtrak's announcement of substantial route and service 
cutbacks early this year, the States have shown strong support 
for Amtrak service and begun to contribute significantly toward 
continuing Amtrak service that would otherwise have to be 
eliminated due to the funding shortage. Of the 8.8 million 
train-miles that Amtrak originally planned to terminate as part 
of its strategic business plan, the States have ``bought back'' 
1.1 million train-miles at a total cost to them of $14.5 
million on an annualized basis.
    This increased State participation in Amtrak service has 
raised a number of issues that are addressed in H.R. 1788. For 
example, one concern that States have had is what to do when 
service being threatened with elimination crosses State lines, 
and coordination between several States is required to preserve 
the service. H.R. 1788 establishes Congressional advance 
consent to multi-State agreements providing for State 
cooperation to support intercity rail service. This is meant to 
promote stable, long-term relationships among States who wish 
to enter joint ventures to retain or expand rail passenger 
service to supplement Amtrak's own operations. These interstate 
compacts could include agreements to retain existing service, 
commence new service, assemble rights-of-way, and perform 
capital improvements. The compacts could also provide for the 
States to borrow money on a short-term basis and to issue notes 
for borrowing. H.R. 1788 also requires longer advance notice to 
States of service discontinuances, to allow time to make 
alternative arrangements.
    The States have also expressed an interest in having 
authority to contract for the provision of passenger rail 
service. H.R. 1788 would facilitate this in a number of ways. 
First, because Amtrak's prohibition on contracting out is 
repealed 254 days after enactment, States would be eligible to 
hire a contractor under Amtrak auspices to operate intercity 
passenger service. In fact, H.R. 1788 permits Amtrak to 
contract for the operation of trains only with States or State 
authorities. Second, Amtrak's right of first refusal on 
intercity routes is eliminated, which means a State (or 
private) entity would be free to initiate intercity rail 
passenger service without first obtaining Amtrak's consent.
    A number of States have complained that Amtrak has taken an 
autocratic approach in its dealings with the states, and has 
exhibited an unwillingness to consider new marketing approaches 
and to share cost information. The Committee urges Amtrak to 
adopt a more cooperative approach with the States. As partners 
in the financing of intercity rail service they should 
participate in determining the type of service that is to be 
delivered. In addition, the Committee wants to ensure that 
Amtrak's cost information is made available to the States. To 
that end, H.R. 1788 requires that States have access to 
Amtrak's records, accounts and other necessary documents used 
to determine the amount a State is asked to reimburse Amtrak 
for rail service.

                               Conclusion

    H.R. 1788 is designed to set Amtrak on a course to 
financial stability and preserve intercity passenger rail in 
this country. Many factors have contributed to Amtrak's 
problems, some going back to the legislation that created 
Amtrak in 1970. At that time, Amtrak was assigned the virtually 
impossible task of becoming a profit-making entity while being 
shackled by onerous cost and operational burdens that have no 
counterpart in private enterprise.
    H.R. 1788 will go a long way toward freeing Amtrak from 
these impediments and allowing it to follow sound business 
practices, while providing for fair and equitable treatment of 
Amtrak's employees. The negotiated procedures for determining 
Amtrak's new labor protection requirements and terms for 
contracting out should produce standards that make more sense 
for a taxpayer-funded operation, while permitting Amtrak's 
employees to have a role in the determination of new terms. The 
clarification of Amtrak's status as a private enterprise will 
allow for more commercial financing alternatives, permitting 
Amtrak to achieve the maximum benefit from its assets. The new 
temporary reform board, whose members will be required to have 
expertise in intercity common carrier transportation and 
corporate management, will bring fresh ideas and a new start 
for Amtrak. Liability reform will allow for a smooth 
renegotiation of Amtrak's operating agreements with the freight 
railroads and will lower the costs Amtrak is required to pay to 
the freight railroads for the use of their rights-of-way.
    The Committee believes that enactment of H.R. 1788 is 
critical to Amtrak's survival. Without substantial reforms, 
Amtrak's very existence is threatened. Congress has signaled 
its intent to remove Amtrak from dependence on Federal 
operating subsidies over the next seven years. The Clinton 
Administration also has proposed declining subsidies for 
Amtrak. Dramatic changes must be made if Amtrak is to achieve 
the cost savings that will be required to meet these lower 
funding levels while improving service quality and achieving 
financial stability.

                                Hearings

    The Subcommittee on Railroads held three hearings on 
Amtrak. On February 7, 1995, the Subcommittee held a hearing on 
Amtrak's fiscal crisis. Testimony was received from the 
following witnesses: The Honorable Jolene Molitoris, 
Administrator, Federal Railroad Administration, Department of 
Transportation; Mr. Kenneth Mead, Director, Transportation 
Issues, General Accounting Office; Mr. Tom Downs, President and 
Chairman of the Board, National Railroad Passenger Corporation. 
Additional material was submitted for the record by Mr. Downs, 
Mr. Mead, Ms. Molitoris, and the Railroad Retirement Board.
    The Subcommittee held a second hearing on February 10, 
1995, on the concerns of Members of Congress regarding Amtrak 
issues. Testimony was received from the following Members: Mr. 
Thomas M. Barrett of Wisconsin, Mr. Joe Barton of Texas, Mr. 
Charles Bass of New Hampshire, Senator Joseph R. Biden of 
Delaware, Mr. Peter Blute of Massachusetts, Mr. Michael N. 
Castle of Delaware, Ms. Eva Clayton of North Carolina, Mr. 
Vernon Ehlers of Michigan, Mr. Sam Gejdenson of Connecticut, 
Mr. George Gekas of Pennsylvania, Mr. Joel Hefley of Colorado, 
Mr. Earl Hilliard of Alabama, Mr. Peter Hoekstra of Michigan, 
Mr. Andrew Jacobs, Jr. of Indiana, Mr. Joseph Moakley of 
Massachusetts, Mr. Sonny Montgomery of Mississippi (with Mr. 
John Robert Smith, Mayor of Meridian, Mississippi), Mr. Richard 
Neal of Massachusetts, Mr. Earl Pomeroy of North Dakota, and 
Mr. Peter Torkildsen of Massachusetts. Additional material was 
submitted for the record by the following Members: Mr. Spencer 
Bachus of Alabama, Mr. Nathan Deal of Georgia, Mr. Barney Frank 
of Massachusetts, Mr. Charlie Rose of North Carolina, and Mr. 
Frank R. Wolf of Virginia.
    A third hearing was held of February 13, 1995, on Amtrak's 
statutory mandates. Testimony was received from the following 
witnesses: The Honorable James H. Burnley, former Secretary of 
Transportation, Winston & Strawn; Mr. Edwin Harper, President 
and Chief Executive Office, Association of American Railroads; 
Mr. Greg Lawler, General Counsel, Safe Transit and Rail 
Transportation; Mr. Tom Downs, President and Chairman of the 
Board, National Railroad Passenger Corporation; Mr. Ross Capon, 
Executive Director, National Association of Railroad 
Passengers; and Mr. Ted Knappen, Greyhound Corporation. 
Additional material was submitted for the record by: Hon. 
Gilbert H. Carmichael, former Federal Railroad Administrator; 
Mr. A.R. Carpenter, President and CEO, CSX Transportation, 
Inc.; Mr. Barry T. Hill, Associate Director, Transportation 
Issues, General Accounting Office, Mr. David R. Horth, 
Chairman, National Railroad Construction and Maintenance 
Association, Inc.; and Mr. Paul Reistrup, Chairman Emeritus, 
High Speed Rail/Maglev Association.

                        Committee Consideration

    On May 25, 1995, the Subcommittee on Railroads met in open 
session and ordered reported the staff draft of the Amtrak 
Reauthorization and Privatization Act of 1995, as amended, by a 
recorded vote of 11 to 5, a quorum being present. On September 
21, 1995, the Committee met in open session and approved an 
amendment in the nature of a substitute offered by Chairman 
Shuster and ordered reported the bill H.R. 1788 as amended, by 
a voice vote, a quorum being present.
    Clause 2(l)(2)(B) of rule XI requires each committee report 
to include the total number of votes cast for and against on 
each rollcall vote on a motion to report and on any amendment 
offered to the measure or matter, and the names of those 
members voting for and against.

              No. 1. Molinari Amendment: Labor Protection

    This amendment would impose a 6-month cap on any wage 
continuation or severance benefits that accrue to an employee 
whose job is eliminated as a result of a service discontinuance 
(defined as terminating service or reducing frequency below 3 
times weekly) as long as Amtrak is receiving Federal operating 
subsidies.
    Amendment failed 21-36
    Ayes: Shuster, Baker, Bateman, Blute, Coble, Ehlers, Ewing, 
Fowler, Gilchrest, Horn, Hutchinson, Kelly, Kim, LaHood, 
Latham, Molinari, Parker, Seastrand, Wamp, Weller, and Zeliff.
    Nays: Bachus, Barcia, Boehlert, Borski, Brewster, Brown, 
Clement, Clyburn, Collins, Costello, Cramer, Danner, DeFazio, 
Filner, Franks, Hayes, Johnson, LaTourette, Laughlin, Lipinski, 
McCarthy, Martini, Menendez, Mica, Nadler, Norton, Oberstar, 
Petri, Poshard, Quinn, Rahall, Tate, Traficant, Tucker, Wise, 
and Young.

   No. 2. Oberstar 2d degree amendment to Hutchison amendment on ADA 
                               compliance

    This amendment would provide Amtrak with a one year 
deferral on complying with the requirements of the Americans 
with Disabilities Act that apply to rolling stock.
    Amendment failed 21-34
    Ayes: Barcia, Borski, Clement, Clyburn, Collins, Costello, 
Danner, DeFazio, Filner, Johnson, Lipinski, McCarthy, Menendez, 
Nadler, Norton, Oberstar, Poshard, Rahall, Traficant, Tucker, 
and Wise.
    Nays: Shuster, Bachus, Baker, Bateman, Blute, Boehlert, 
Brewster, Brown, Coble, Cramer, Fowler, Franks, Gilchrest, 
Hayes, Horn, Hutchinson, Kelly, Kim, LaHood, Latham, 
LaTourette, Laughlin, Martini, Mica, Molinari, Parker, Petri, 
Quinn, Seastrand, Tate, Wamp, Weller, Young, and Zeliff.

               No. 3 Hutchinson amendment: ADA compliance

    This amendment would provide Amtrak with a 3-year deferral 
on meeting the requirements of the Americans with Disabilities 
Act that apply to rolling stock and stations and facilities.
    Amendment agreed to 35-17
    Ayes: Shuster, Bachus, Barcia, Bateman, Blute, Boehlert, 
Brewster, Clement, Clinger, Coble, Cramer, Duncan, Ewing, 
Fowler, Franks, Gilchrest, Hutchinson, Kelly, Kim, LaHood, 
Latham, LaTourette, Laughlin, Martini, Mica, Molinari, Parker, 
Petri, Quinn, Seastrand , Tate, Wamp, Weller, Young, and 
Zeliff.
    Nays: Baker, Borski, Clyburn, Collins, Costello, Danner, 
DeFazio, Lipinski, McCarthy, Nadler, Norton, Oberstar, Poshard, 
Rahall, Traficant, Tucker, and Wise.

     No. 4 Baker substitute for Quinn amendment on contracting out

    This amendment would prevent Amtrak from agreeing to any 
restrictions to its ability to contract out work as long as 
Amtrak receives appropriated Federal funds.
    Substitute failed 5-55
    Ayes: Baker, Hutchinson, Mica, Parker, and Seastrand.
    Nays: Shuster, Bachus, Barcia, Blute, Boehlert, Borski, 
Brewster, Brown, Clement, Clinger, Clyburn, Coble, Collins, 
Costello, Cramer, Danner, DeFazio, Duncan, Ehlers, Emerson, 
Ewing, Filner, Fowler, Franks, Gilchrest, Hayes, Horn, Johnson, 
Kelly, Kim, LaHood, Latham, LaTourette, Laughlin, Lipinski, 
McCarthy, Martini, Menendez, Mineta, Molinari, Nadler, Norton, 
Oberstar, Petri, Poshard, Quinn, Rahall, Tate, Traficant, 
Tucker, Wamp, Weller, Wise, Young, and Zeliff.

                no. 5 quinn amendment on contracting out

    This amendment would make the existing statutory labor 
protection requirements part of all Amtrak labor contracts and 
establish a 270-day Railway Labor Act bargaining process for 
Amtrak and its unions to negotiate terms on the issue of 
contracting out.
    Amendment agreed to 38-22
    Ayes: Barcia, Blute, Boehlert, Borski, Brewster, Brown, 
Clement, Clyburn, Collins, Costello, Cramer, Danner, DeFazio, 
Filner, Hayes, Horn, Johnson, LaHood, LaTourette, Laughlin, 
Lipinski, McCarthy, Martini, Menendez, Mineta, Nadler, Norton, 
Oberstar, Poshard, Quinn, Rahall, Tate, Traficant, Tucker, 
Wamp, Weller, Wise, and Young.
    Nays: Shuster, Bachus, Baker, Bateman, Clinger, Coble, 
Ehlers, Emerson, Ewing, Fowler, Franks, Gilchrest, Hutchinson, 
Kelly, Kim, Latham, Mica, Molinari, Parker, Petri, Seastrand, 
and Zeliff.

  no. 6 borski amendment: commuter reimbursement on northeast corridor

    This amendment would delete a provision that would have 
required commuter authorities to reimburse Amtrak for the fully 
allocated costs of their use of the Northeast Corridor.
    Amendment agreed to 29-25
    Ayes: Barcia, Blute, Borski, Brewster, Brown, Clinger, 
Clyburn, Collins, Costello, Cramer, DeFazio, Filner, Franks, 
Gilchrest, Johnson, Laughlin, Lipinski, McCarthy, Martini, 
Menendez, Mineta, Nadler, Oberstar, Parker, Poshard, Rahall, 
Traficant, Tucker, and Wise.
    Nays: Shuster, Bachus, Baker, Clement, Coble, Danner, 
Duncan, Emerson, Ewing, Horn, Kelly, Kim, LaHood, Latham, 
LaTourette, Mica, Molinari, Petri, Quinn, Seastrand, Tate, 
Wamp, Weller, Young, and Zeliff.

                      Committee Oversight Findings

    Pursuant to clause 2(l)(3)(A) of rule XI of the Rules of 
the House of Representatives, oversight findings and 
recommendations have been made by the Committee as reflected in 
this report.

                   Committee on Government Operations

    Pursuant to clause 2(l)(3)(D) of rule XI of the Rules of 
the House of Representatives, no oversight findings have been 
submitted to the Committee by the Committee on Government 
Operations.

                        Committee Cost Estimate

    In compliance with clause 7(a) of rule XIII of the Rules of 
the House of Representatives, the Committee believes that the 
cost of administering H.R. 1788 would be no more than the 
amounts described in the estimate provided by the Congressional 
Budget Office that accompanies this report:
                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 29, 1995.
Hon. Bud Shuster,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1788, the Amtrak 
Reform and Privatization Act of 1995.
    Enacting H.R. 1788 would affect direct spending and 
receipts. Therefore, pay-as-you-go procedures would apply to 
the bill.
    If you wish further details on this estimate, we will be 
pleased to provide them.
            Sincerely,
                                              James L. Blum
                                             (For June E. O'Neill).

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

    1. Bill Number: H.R. 1788.
    2. Bill Title: Amtrak Reform and Privatization Act of 1995.
    3. Bill Status: As ordered reported by the House Committee 
on Transportation and Infrastructure on September 21, 1995.
    4. Bill Purpose: In General, H.R. 1788 would restructure 
Amtrak's operations and reauthorize federal subsidies for 
Amtrak. Specifically, the bill would try to decrease Amtrak's 
reliance on federal operating subsidies by decreasing its costs 
and increasing its revenue. This goal would be supported by 
several provisions:
          Allowing Amtrak to contract out for services--a 
        practice that is prohibited under current law--rather 
        than provide them internally;
          Terminating the requirement that Amtrak provide 
        service over a basic system of routes and that Amtrak's 
        route discontinuances and additions comply with 
        established criteria, and requiring Amtrak to give 
        states a 180-day notice before discontinuing routes, 
        rather than a 90-day notice as currently stipulated in 
        law;
          Terminating the requirements that Amtrak provide 
        commuter service in areas specified in law (referred to 
        as section 403(d) service) and subsidize certain 
        passenger rail routes that are requested by states 
        (referred to as section 403(b) service);
          Requiring Amtrak and commuter authorities to 
        renegotiate how much compensation commuter authorities 
        will pay Amtrak for use of the right-of-way on the 
        Northeast corridor;
          Requiring Amtrak and railroad unions to renegotiate 
        labor protection agreements, including severance pay;
          Specifiying in law that labor protection agreements 
        shall not apply to Amtrak in the case of bankruptcy;
          Establishing new procedures for settling punitive or 
        exemplary damages claimed against Amtrak; and
          Establishing a Temporary Rail Advisory Council, which 
        would review Amtrak's business methods and accounting 
        procedures.
    The bill contains other provisions that would affect 
federal outlays. These provisions would:
          Transfer all subsidies to Amtrak upon appropriation 
        so that Amtrak can earn interest on these funds until 
        they are expended;
          Authorize for fiscal years 1996 and through 2000 
        appropriations totaling $2.5 billion for Amtrak 
        operating and capital grants, $800 million for 
        Northeast Corridor grants, $40 million for capital 
        improvements in the vicinity of New York City's 
        Pennsylvania Station, and $200 million to guarantee 
        Amtrak loans; and
          Change the conditions under which the federal 
        government would guarantee loans for railroads.
    In addition, the bill would remove the liquidation 
preference currently granted to the Amtrak preferred stock 
owned by the federal government. The federal government's lien 
on the Northeast Corridor right-of--way would also be 
eliminated.
    Finally, the bill contains tax provisions that would exempt 
certain sources of funds from Amtrak's gross income for federal 
tax purposes.
    5. Estimated cost to the Federal Government: The following 
table summarizes the impact this bill would have on Federal 
spending. The revenue estimates will be provided by the Joint 
Committee on Taxation. H.R. 1788 would shift $121 million of 
federal spending that would have occurred under current law in 
fiscal year 1997 to fiscal year 1996. In addition, the bill 
would authorize appropriations totaling $3.6 billion.

----------------------------------------------------------------------------------------------------------------
                                                              1995     1996     1997     1998     1999     2000 
----------------------------------------------------------------------------------------------------------------
                         REVENUES                                                                               
                                                                                                                
Tax provisions............................................    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)
                                                                                                                
                      DIRECT SPENDING                                                                           
                                                                                                                
Estimated budget authority:                                                                                     
    Northeast Corridor transfer...........................       --       --       --       --       --       --
    Amtrak grant transfer.................................       --       --       --       --       --       --
                                                           -----------------------------------------------------
      Total...............................................       --       --       --       --       --       --
Estimated outlays:                                                                                              
    Northeast Corridor transfer...........................       --       60      -60       --       --       --
    Amtrak grant transfer.................................       --       61      -61       --       --       --
                                                           -----------------------------------------------------
      Total...............................................       --      121     -121       --       --       --
                                                           =====================================================
                                                                                                                
            SPENDING SUBJECT TO APPROPRIATIONS                                                                  
                                                                                                                
Spending under current law:                                                                                     
    Budget authority \2\..................................      994       --       --       --       --       --
    Estimated outlays.....................................      965      370      206       53       30       10
Proposed changes:                                                                                               
    Authorization level...................................       --      972      972      972      663       --
    Estimated outlays.....................................       --      952      965      972      663       --
Spending under this bill:                                                                                       
    Authorization level \2\...............................      994      972      972      972      663       --
    Estimated outlays.....................................      965    1,322    1,171    1,025      693       10
----------------------------------------------------------------------------------------------------------------
\1\ The Joint Committee on Taxation will provide these estimates at a later date.                               
\2\ The 1995 level is the amount appropriated for that year.                                                    

    The costs of this bill fall within budget function 400.
    6. Basis of estimate:
    Revenues.--Tax estimates will be provided by the Joint 
Committee on Taxation.
    Direct spending.--Under current law, CBO estimates the 
unexpended balance at the end of fiscal year 1995 for funds 
appropriated to Amtrak in 1995 will be $307 million; these 
funds will be transferred to Amtrak as bills come due. This 
bill would transfer these balances to Amtrak upon enactment so 
that Amtrak can earn interest on the funds until they are 
expended. The transfer would not increase outlays over time but 
would cause outlays to occur earlier than they would have 
otherwise. CBO estimates that $121 million of the unexpended 
balances would have expended in 1997 under current law but 
would be expended in 1996 if this bill is enacted.
    Authorization of appropriations.--For purposes of this 
estimate, CBO assumes that the full amounts authorized would be 
appropriated at the start of each fiscal year. If this bill is 
enacted, the outlay rates for Amtrak, Northeast Corridor, and 
Pennsylvania Station grants would increase to 100 percent 
because the bill would allow Amtrak to receive all the funds up 
front in order to earn interest on them.
    The bill would authorize appropriations of $50 million each 
year for fiscal years 1996 through 1999 for the cost of 
guaranteeing loans to Amtrak. Based on information provided by 
Amtrak, CBO projects that the loans to Amtrak guaranteed by the 
federal government would be disbursed over three years. The 
amount of loan guarantees that $50 million of subsidy funds 
would support is very uncertain for Amtrak. Because Amtrak is 
in financial trouble and these guaranteed loans would likely be 
subordinated to existing debt, the probability of default would 
be very high. However, the bill would allow Amtrak to use the 
Northeast Corridor as collateral, which would decrease the 
probability of default.
    CBO estimates that the operations of the Temporary Rail 
Advisory Council would cost the federal government less than 
$500,000 in 1996. Finally, the modifications to the conditions 
under which loan guarantees would be given to railroads would 
decrease the federal government's protection against defaults 
and increase the cost to the federal government if loans 
guarantees are provided in the future.
    Preferred stock and lien on Northeast Corridor.--H.R. 1788 
would eliminate the liquidation preference granted to the 
Amtrak preferred stock owned by the federal government and the 
lien on the Northeast Corridor held by the federal government. 
These two provisions do not have a direct impact on the federal 
budget. However, if Amtrak were to enter into bankruptcy, these 
provisions could result in a loss of receipts to the federal 
government that might accrue as a result of selling Amtrak 
assets such as the Northeast Corridor right-of-way.
    7. Pay-as-you-go considerations: Section 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 sets 
up pay-as-you-go procedures for legislation affecting direct 
spending or receipts through 1998. CBO estimates that enacting 
this bill would affect direct spending by transferring 
unexpended funds to Amtrak, resulting in a shift in the timing 
of outlays. The following table summarizes CBO's estimate of 
the bill's pay-as-you-go effect.

------------------------------------------------------------------------
                                        1995     1996     1997     1998 
------------------------------------------------------------------------
Change in outlays...................       --      121     -121       --
Change in receipts..................      (1)      (1)      (1)      (1)
------------------------------------------------------------------------
\1\ Revenue estimates will be provided by the Joint Committee on        
  Taxation.                                                             

    In addition, if this bill is enacted after the 1996 
transportation bill, additional direct spending will occur. If 
the appropriations bill is enacted first, this bill would 
increase the outlay rates for Amtrak, Pennsylvania Station, and 
Northeast Corridor Grants.
    8. Estimated cost to State and local governments: The bill 
would not impose any new enforceable duties on state and local 
governments; however, most sections affecting state and local 
governments (primarily commuter transit authorities) would make 
it more expensive for them to provide rail service within their 
jurisdictions. To the extent that state governments and transit 
authorities choose to maintain current levels of service, these 
provisions would shift costs from Amtrak to local authorities. 
CBO is unable to predict the likelihood or magnitude of any 
resulting costs at this time. The bill would also preempt local 
and state governments from collecting sales taxes on either 
intrastate or interstate services provided by Amtrak. This 
change would preempt existing sales taxes in three states, but 
the revenue loss would be minimal. Finally, the bill would 
place a cap on the liability of states and commuter authorities 
in the event of a passenger train accident and might lower the 
cost of operating passenger trains over freight rail right-of-
ways.
    Section 102 of the bill would prohibit Amtrak from 
submitting below-cost bids to provide certain services for 
local governments and commuter authorities. There is no such 
prohibition in current law. To the extent that Amtrak would 
have made below-cost bids on future contracts, state and local 
transportation authorities would have to pay more for 
contracted services. The type of contracts affected by this 
provision account for a small portion of Amtrak's revenues 
(less than five percent in fiscal year 1994). Because it is 
unclear whether Amtrak actually does bid below cost on 
contracts, CBO cannot estimate the effect this change would 
have on commuter authorities.
    Section 201 of the bill would make it easier for Amtrak to 
discontinue routes, but it would require Amtrak to give earlier 
notice to state and local governments of its decision to do so. 
The section would end the requirement that Amtrak operate a 
specified ``basic system'' of routes, which current law 
requires Amtrak to provide unless it is financially unable to 
do so.
    It would also end the requirement that Amtrak continue to 
provide special commuter transportation provided under section 
403(d) of the Rail Passenger Service Act. Under current law, 
Amtrak must provide this service as long as the short-term 
avoidable loss on a route does not exceed a specific threshold. 
According to Amtrak officials, all 403(d) services currently 
run by Amtrak either cover their short-term avoidable losses or 
are already fully supported by states. Therefore, this change 
would not shift any costs to state or local governments. 
Finally, the section would require Amtrak to notify state and 
local governments at least 180 days before a discontinuance, 
whereas current law requires only 90 days of advance warning.
    Sections 203 and 204 of the bill would end Congressional 
review of changes to Amtrak's route and service criteria and 
end additional route requirements. State and local governments 
would face higher costs if they decided to pay for the 
provision of any services that Amtrak discontinued as a result 
of these changes. We currently have no information on which 
routes, if any, Amtrak would discontinue if these changes were 
to become law. Furthermore, we cannot estimate how states and 
local governments would respond to Amtrak's decisions. 
Therefore, CBO cannot estimate the budgetary impact of these 
changes.
    Section 205 of the bill would end the requirement that 
Amtrak consider applications from state and local governments 
to provide or continue to provide services under section 403(b) 
of the Rail Passenger Service Act. Currently, Amtrak may 
approve such applications if the applicants agree to pay a 
certain share of short-term avoidable losses or capital costs 
that Amtrak incurs by providing the services. This section also 
would allow Amtrak to end agreements reached prior to the 
enactment of this change. In fiscal year 1993, Amtrak absorbed 
approximately $82 million in losses on services of this kind. 
Amtrak officials say that losses have been smaller since then, 
because some state and local governments have agreed to bear a 
larger share of the costs. If Amtrak renegotiated all 
agreements that are currently generating losses, the costs 
shifted to state and local governments would be somewhat less 
than $82 million annually. State and local governments would 
not be compelled to continue these services, however.
    Section 207 of the bill would affect the way Amtrak charges 
other carriers and commuter authorities for services it 
provides on its Northeast Corridor right-of-way. Amtrak 
estimates that, in total, this change would increase commuter 
authority payments from about $60 million to about $90 million 
annually. In discussions with CBO, officials of commuter 
authorities noted that the actual increase in payments could be 
substantially different from this estimate, because it would be 
determined by separate negotiations with each of the commuter 
authorities.
    Section 401 would limit the punitive damages and non-
economic losses that passengers could recover from rail 
carriers in the event of an accident. These limits would place 
a cap on the potential liability of commuter authorities and 
states. With such caps in place, commuter authorities would 
probably pay less to operate on freight lines and might pay 
less for liability insurance.
    This section would also reaffirm the right of rail 
passenger operators and owners of rights-of-way and other 
facilities to indemnify each other contractually for liability 
arising out of rail passenger accidents. A court settlement 
pertaining to a 1987 collision of an Amtrak and a Conrail train 
has increased the concern of freight railroads that they are 
not receiving adequate compensation for their potential 
liability in accidents involving passenger trains. This section 
would clarify the extent to which freight railroads are liable 
for damages. In the absence of enactment of this section, 
freight rail owners would likely press for higher compensation 
from Amtrak and commuter rail authorities when current 
operating agreements come up for renegotiation. CBO is unable 
to estimate how much more commuter authorities would have to 
pay for the use of freight rail tracks in the absence of this 
legislation.
    Section 506 of the bill would exempt passengers and 
customers of Amtrak and its subsidiaries from most state and 
local taxes, fees, or charges, whereas current law exempts only 
Amtrak and its subsidiaries. This section would override 
existing sales taxes on intrastate travel provided by Amtrak in 
Georgia, Wyoming, and Utah. Because there is little intrastate 
travel on Amtrak in these states, however, the loss in existing 
revenues would be minimal. This section would also prohibit new 
state or local taxes of any kind on Amtrak services. An April 
1995 Supreme Court ruling upheld the right of states to place 
unapportioned sales taxes on interstate bus tickets. This 
ruling could be used to justify state taxes on Amtrak's 
interstate passenger tickets and possibly on its interstate 
mail or freight transportation services. Therefore, this change 
would preempt state and local taxing authority and would 
foreclose a potential source of state and local revenues. In 
fiscal year 1994. Amtrak collected about $830 million from 
ticket sales and about $60 million from mail and express 
services.
    Section 615 would allow states to enter into interstate 
compacts to retain existing intercity passenger rail services 
or create new services. These compacts could finance their 
activities by issuing notes or bonds. This change would make it 
easier for states to provide any services discontinued by 
Amtrak.
    9. Estimate comparison: None.
    10. Previous CBO estimate: On September 20, 1995, CBO 
transmitted a cost estimate of the Amtrak and Local Rail 
Revitalization Act of 1995 as ordered reported by the Senate 
Committee on Commerce, Science, and Transportation on July 20, 
1995. This bill and the Senate bill are very similar. However, 
the Senate bill includes several provisions not contained in 
H.R. 1788, including provisions that:
          Grant Amtrak several tax breaks;
          Transfer a portion of the receipts from Federal 
        gasoline taxes to Amtrak; and
          Authorize appropriations for the local rail freight 
        assistance program.
    Finally, H.R. 1788 authorizes appropriations for capital 
improvements in the vicinity of New York City's Pennsylvania 
Station while the Senate bill does not.
    11. Estimate prepared by: Federal Cost Estimate: John 
Patterson. State and Local Cost Estimate: Pepper Santalucia.
    12. Estimate approved by: Paul N. Van de Water, Assistant 
Director for Budget Analysis.

                     Inflationary Impact Statement

    Pursuant to clause 2(l)(4) of rule XI of the Rules of the 
House of Representatives, the Committee believes that the bill 
will not have any inflationary impact on the prices and costs 
in the operation of the national economy. The bill is designed 
to lower Amtrak's costs and allow it to operate more 
efficiently, thus preserving jobs and alternatives to highway 
and air travel. These factors should contribute to lowering the 
costs of travel, and thus have an anti-inflationary impact.

               Section-by-Section Analysis and Discussion

Section 1. Short title

    This section provides that the bill may be cited as the 
``Amtrak Reform and Privatization Act of 1995.''

                      title i--procurement reforms

    This title amends the Rail Passenger Service Act, 
recodified as 49 U.S.C. 24101 et seq. Each section is discussed 
below.

Section 101. Contracting out

    This section repeals the current subsection that prohibits 
Amtrak from contracting out any work (other than food and 
beverage service) that affects one or more employees in a 
bargaining unit. It also overrides existing collective 
bargaining agreements. New terms and conditions for contracting 
out work will be established under a negotiated bargaining 
process contained in Title III.
    Subsection (a) encourages Amtrak to use other rail carriers 
when contracting out and restricts Amtrak to entering into 
contracts for the operation of trains with States or State 
authorities. It also confirms that if Amtrak enters into a 
contract for the operation of trains, Amtrak will not be 
relieved of any contractual obligations it has entered into 
with other entities for the use of their facilities and that 
any contract operation shall be subject to operating and safety 
restrictions required by preexisting contractual arrangements. 
In short, Amtrak will not be able to waive the contractual 
rights of a third party under a prior access agreement in order 
to grant access to a contract operator. The subsection also 
clarifies that it does not restrict Amtrak's authority to enter 
into contracts for access to or use of tracks or facilities for 
the operation of trains.
    Subsection (b) states that subsection (A) shall take effect 
254 days after enactment.

Section 102. Contracting practices

    This section prohibits Amtrak from engaging in below-cost 
bidding for any activity other than providing commuter and 
intercity service. It responds to complaints from private-
sector businesses (including bus companies and providers of 
rail support services) that Amtrak has engaged in below-cost 
bidding to win sources of revenue. The section provides 
judicial remedies in Federal court for contract bidders who 
believe themselves to be the objects of below-cost competition 
by Amtrak. This section also addresses Amtrak's practices in 
arranging for connecting bus service, clarifying that such 
service must be truly supplemental to Amtrak rail service, and 
not an indirect Federal subsidy of competition with private-
sector regular-route bus service.
    Subsection (a) prohibits Amtrak from submitting a bid for 
contract work other than providing intercity rail 
transportation, commuter rail transportation, or mail or 
express transportation, at a price that is below Amtrak's cost 
for performing the service. Generally accepted accounting 
principles are to be used in calculating Amtrak's costs. In 
addition, subsection (a) provides that any aggrieved individual 
may commence a civil action against Amtrak for violation of 
this requirement in the United States district courts. The 
court is authorized to award bid preparation costs, anticipated 
profits, and litigation costs to any prevailing or 
substantially prevailing party. The subsection is only 
effective as long as Amtrak is receiving Federal operating 
subsidies.
    The Committee has received a number of complaints from 
companies that compete with Amtrak for contract work, such has 
track maintenance, on the ground that they are being underbid 
by Amtrak. They contend that Amtrak is taking advantage of its 
Federal subsidy to bid below its costs in order to generate 
short-term revenues. The Committee is concerned about these 
allegations for two reasons. One is fairness. It is not the 
intent of Congress that Amtrak use its Federal grants to 
undercut private companies, who presumably earn a profit and 
pay taxes. The other is that below-cost bidding, while possibly 
generating increased revenues for Amtrak in the short-term, 
will produce losses in the long-term that could only serve to 
increase Amtrak's need for Federal subsidies. The problem is 
exacerbated by what many contend are Amtrak's unorthodox 
accounting procedures, which make it difficult to determine the 
true costs of a particular job. H.R. 1788 calls for Amtrak to 
employ generally accepted accounting principles so that the 
costs of Amtrak's activities can be more accurately measured.
    Subsection (b) prohibits Amtrak from making contractual 
arrangements with charter bus operators to carry both Amtrak 
and non-rail passengers. Future charter bus contracts will be 
for carrying only passengers who have had a prior movement by 
rail, or will have a subsequent movement by rail. The 
subsection specifically disclaims any effect on State or local 
government-funded bus operations connecting with Amtrak service 
or motor carriers receiving Federal assistance under Section 18 
of the Federal Transit Act or to ticket selling agreements. 
Subsection (b) also authorizes consultation between Amtrak and 
other passenger carriers under the ``pooling'' provisions of 
the Interstate Commerce Act.
    The Committee is concerned that some of the charter bus 
operations, which Amtrak enters into to provide connecting 
feeder bus service to its intercity rail network, may be 
diverting non-rail passengers who otherwise would ride the 
regular common carrier bus operating on that route. The 
Committee believes that Amtrak's charter bus service should be 
available for Amtrak passengers only. A recent GAO report found 
that Federal funds are not used to subsidize Amtrak's thruway 
bus operations, and that, in fact, Amtrak's operating subsidy 
would increase in the absence of its thruway bus operations. 
The Committee therefore encourages Amtrak to continue its 
charter bus service. Subsection (b) is designed to ensure that 
regular common carrier bus companies are not subjected to 
unfair competition from Amtrak, while not affecting bus service 
that is funded by State and local governments or from Section 
18 Federal Transit Act funds.

Section 103. Freedom of Information Act

    This section repeals the current provision making Amtrak 
subject to FOIA. As a corporation, not an agency, Amtrak would 
not subject to FOIA absent specific legislation to the 
contrary. This responds to complaints from Amtrak and others 
that public access to Amtrak commercial information allows 
businesses bidding on Amtrak services to obtain access to 
competitor's information that would not be available in the 
normal course of business. This change does not affect 
Congressional access to Amtrak's records, including GAO audits.

                     title ii--operational reforms

Section 201. Basic system

    This section relieves Amtrak of the obligation to operate 
the basic system of routes that was largely inherited from the 
private railroads when Amtrak began operations in 1971.
    Subsection (a) repeals the current provision that requires 
Amtrak to provide intercity rail passenger transportation 
within the basic system unless excused by financial emergency. 
Also repealed is Amtrak's right of first refusal, which 
provides that no person can operate intercity rail passenger 
transportation over an Amtrak route without Amtrak's consent.
    Subsection (b) repeals the current statutory directive to 
prepare a route-structure and to operate the ``basic system'' 
described above. It also repeals a requirement that Amtrak 
evaluate routes connecting various corridors for economic 
promise; this requirement is considered surplusage in light of 
the overall intent to let Amtrak management make operational 
decisions with as little micromanagement by Congress as 
possible.
    Subsection (c) lengthens from 90 days to 180 days the 
current requirement that Amtrak give advance notice of service 
discontinuances, but eliminates the statutory requirement 
concerning discontinuances of service due to a lack of funds. 
The increased advance notice of proposed discontinuances should 
afford affected State and local governments a better 
opportunity to make alternative arrangements, including other 
forms of rail passenger service.
    Subsection (d) eliminates annual reporting requirements 
keyed to the operation of the ``basic system'' of routes.
    Subsection (e) repeals the obligation of Amtrak to operate 
what were formerly known as ``Section 403(d) trains,'' which 
were commuter operations frozen as of 1981.
    Subsection (f) makes a conforming technical amendment.
    The Committee believes that, as part of its efforts to 
reduce costs and wean itself from dependence on Federal 
subsidies, Amtrak should have the flexibility to operate like a 
business. By freeing Amtrak of obligations to operate a system 
that has, for the most part, remained static since 1971, the 
Committee intends for Amtrak to evaluate its route system and 
make alterations according to commercial potential, rather than 
arbitrary statutory criteria.
    Some potential market opportunities have come to the 
attention of the Committee and Amtrak is urged to evaluate 
these options for commercial viability. In southern California, 
the San Bernardino Associated Governments and the Riverside 
County Transportation Commission have proposed to initiate 
passenger rail service between Indio and Palm Springs to 
Riverside, and continuing into Ontario and Los Angeles. The 
Committee believes that this service deserves consideration and 
encourages Amtrak to undertake a cost-benefit analysis of the 
proposed route.
    In addition, the Committee understands that Amtrak's West 
Coast Strategic Business Unit is conducting a prototype 
demonstration on its Seattle-Portland-Eugene route, modifying 
existing coach baggage cars to accommodate bicycles. The 
Committee supports this demonstration, and requests that Amtrak 
report back to the Committee on Transportation and 
Infrastructure in the House, and the Committee on Commerce, 
Science and Transportation in the Senate, on the results of 
this demonstration, by September 30, 1996.
    During the demonstration period, the Committee encourages 
Amtrak to take full advantage of the opportunity to increase 
ridership and revenues on all its routes by better serving the 
bicycling market. The Committee urges Amtrak to collaborate 
with bicycle, rail passenger, and other organizations to test 
different approaches to accommodate bicyclists, including 
improvements in baggage car accommodations, design 
accommodations on new and retrofitted passenger coach railcars, 
and station bicycle parking. The Committee also urges Amtrak to 
use this collaborative process to develop guidelines for when 
and how to better accommodate bicyclists and to reference these 
guidelines when purchasing new passenger coach railcars or 
undertaking heavy interior overhauls of existing passenger 
coach railcars.

Section 202. Mail, express, and auto-ferry transportation

    Subsection (a) repeals Amtrak's special status as a carrier 
of mail and express, and eliminates the presumed monopoly 
rights of Amtrak over auto-ferry service.
    Subsection (b) preserves Amtrak's immunity from State law 
requirements on these subjects.

Section 203. Route and service criteria

    This section repeals the statutory criteria for evaluating 
routes and service, as well as procedures for obtaining 
Congressional approval for changes in such criteria.

Section 204. Additional qualifying routes

    This section repeals provisions governing possible 
additional routes suggested for Amtrak operation by the 
Secretary of Transportation.

Section 205. Transportation requested by States, authorities, and other 
        persons

    Subsection (a) repeals the procedure governing Amtrak 
operation of State-assisted ``Section 403(b)'' trains. The 
current matching formula governing this service, according to 
the General Accounting Office, causes Amtrak to lose more than 
four dollars for every dollar appropriations for these 
operations. In practice, the financial losses inflicted by this 
formula have led Amtrak to announce recently the termination of 
all fund-matching arrangements and to insist upon full-cost-
recovery contracts with States wishing to have Amtrak operate 
State-requested service. Therefore, this provision merely 
conforms the statute to current financial realities and Amtrak 
practice.
    Section (b) frees Amtrak from any obligations under 
``Section 403(b)'' entered into prior to enactment.
    Subsection (c) amends the policy goal pertaining to State 
and local cooperation with Amtrak to emphasize the options of 
collective arrangements involving multiple States and other 
governmental units.
    Subsection (d) makes a conforming technical amendment.
    While the Committee wants to ensure that Amtrak has 
flexibility in designing its route system according to market 
potential, the Committee is also interested in ensuring that 
States that wish to provide for continued rail service that has 
been targeted for elimination are given an adequate opportunity 
to do so. The Committee is aware that, in some cases, a State 
may be unable to produce the funding for continue rail service 
in the short term due to the timing of a State budget cycle or 
other temporary cash flow obstacle. The Committee urges Amtrak 
to accommodate the needs of these States and, where possible, 
preserve service that would otherwise be eliminated until such 
time that the States are able fully to fund the service. The 
changes made by H.R. 1788 to the notification procedures for 
service discontinuances are also intended to afford an 
opportunity for timely State action.

Section 205. Amtrak Commuter

    This section repeals the subchapter of the Rail Passenger 
Service Act that authorized a separate subsidiary known as 
``Amtrak Commuter,'' which was never created. The section 
preserves certain provisions reaffirming Amtrak's commuter 
authorities' existing trackage rights.

Section 207. Commuter cost sharing on the Northeast Corridor

    This section replaces the current method of arriving at 
cost-sharing agreements between Amtrak and commuter operators 
on the Northeast Corridor with a negotiation and arbitration 
process. The current practice is based on statutory provisions 
and a 1983 decision by the Interstate Commerce Commission that 
established that commuter railroads on the Corridor pay 
trackage right fees based on the principle of ``avoidable 
costs.'' Under this approach, the commuter railroads pay a fee 
to Amtrak that represents the costs incurred by Amtrak 
resulting from commuter use of the Corridor which Amtrak would 
not otherwise incur. This allows Amtrak to receive 
reimbursement for the incremental costs of commuter use of the 
Corridor, but not for shared capital costs.
    Under the new approach established in this section, Amtrak 
and the commuters will negotiate the terms and costs of 
commuter use of the Corridor without Federal statutory 
dictates. (During consideration of the bill, the Committee 
rejected replacement of the existing mandate with a fully 
allocated cost mandate.) Any disputes that cannot be resolved 
by the parties are to be submitted to binding arbitration, with 
the Interstate Commerce Commission available as an arbitrator 
at the discretion of the parties.
    Subsection (a) clarifies that Amtrak and commuter 
authorities will set the terms of commuters' reimbursement to 
Amtrak without Federal statutory dictates.
    Subsection (b) establishes the Interstate Commerce 
Commission as a potential arbitrator of unresolved disputes at 
the discretion of the parties.
    Subsection (c) adds privatization to Amtrak's policy goals.
    The Committee is aware that some commuter operators on the 
Northeast Corridor have multi-year operating agreements with 
Amtrak that are still in effect. The Committee intends that 
these agreements should be honored. Any new terms would only go 
into effect after the expiration date of existing agreements. 
In addition, nothing in this section is meant to be interpreted 
as disallowing the current terms of reimbursement to be 
reemployed when agreements are negotiated. The section is 
intended to avoid having the outcome of these negotiations be 
predetermined by Federal statute. To ensure that commuter 
operators have access to all necessary information in the 
negotiation process. The Committee urges Amtrak to make 
available to commuter operators an accounting of all funds 
spent on the facilities that they utilize. The Committee does 
not intend for Amtrak to include in its reimbursement price any 
extraneous costs beyond those imposed by the commuter 
operations. In fact, as noted below, Section 208 of H.R. 1788 
requires that States have access to any Amtrak records used to 
determine the amount of any payment required by Amtrak, in 
order to ensure open and fair accounting of these costs.

Section 208. Access to records and accounts

    This section assures GAO access to Amtrak's financial 
records and accounts, and provides States with access to all 
financial materials relating to charges that Amtrak requires be 
paid by those States.

                TITLE III--COLLECTIVE BARGAINING REFORMS

Section 301. Railway Labor Act procedures

    This section establishes an accelerated 164-day Railway 
Labor Act bargaining process on labor protection and 
contracting out issues.
    Subsection (a) requires that ``section 6 notices'' on labor 
protection and contracting out are deemed to have been served 
and effective 90 days after enactment. (These notices are the 
means for initiating collective-bargaining negotiations, as 
provided in Section 6 of the Railway Labor Act.) Amtrak and the 
labor unions are required to supply specific information and 
proposals regarding each notice. The notices will have no 
effect on provisions defining the scope or classification or 
work performed by Amtrak employees. For any labor contract that 
contains a moratorium on new negotiations in effect 90 days 
after enactment, section 6 notices will be deemed served and 
effective on the expiration date of the moratorium.
    Subsection (b) requires that all National Mediation Board 
mediation efforts be completed 180 days after enactment.
    Subsection (c) allows the parties to request voluntary 
arbitration for unresolved disputes and requires any award to 
be retroactive to 180 days after enactment.
    Subsection (d) establishes a procedure for resolving 
outstanding disputes. For any unresolved dispute 180 days after 
enactment, Amtrak and the labor union are required each to 
select an individual from the National Mediation Board's roster 
of arbitrators. Within 194 days after enactment, these 
individuals will jointly select one individual to make 
recommendations regarding the unresolved dispute. Individuals 
who have a pecuniary or other interest in an organization of 
employees or a railroad are not eligible to be selected. The 
subsection provides for compensation for the individuals to be 
fixed by the National Mediation Board. The neutral selected by 
the parties is required to make recommendations regarding any 
unresolved dispute within 224 days after enactment. There is a 
30-day cooling-off period after the recommendations are made, 
during which no changes can be made by the parties to the 
dispute. If this entire process produces no agreement, both 
labor and management are legally free to employ ``self-help'' 
(including strikes and unilateral management action) under the 
Railway Labor Act.

Section 302. Service discontinuance

    Subsection (a) repeals Amtrak's statutory labor protection 
requirement. In addition, Amtrak contractual obligations 
relating to labor protection, including all provisions of 
Appendix C-2 to the National Railroad Passenger Corporation 
Agreement signed July 5, 1973, and all contract terms relating 
to contracting out are extinguished 254 days after enactment. 
Subsection (a) also provides that ICC (``New York Dock'') labor 
protection standards do not apply in the event of a bankruptcy. 
Finally, subsection (a) revises the Northeast Rail Service Act 
provisions to reflect a Conrail-labor agreement on restricting 
but not eliminating ``flowback'' labor protection rights for 
employees who joined Amtrak from Conrail or its predecessor 
railroads.
    The Committee is aware of considerable attention focused on 
the possible effect of this amendment on labor protection 
provided to employees of private railroads and public transit 
authorities. This issue arises because of the explicit cross-
reference and consequent interdependence of the respective 
Federal statutes governing labor protection for Amtrak, freight 
railroads, and transit.
    The oldest of these Federal mandates is the required 
payment of labor protection (salary continuation and wage-
protection) benefits to employees adversely affected by 
railroad mergers and abandonments regulated by the Interstate 
Commerce Commission. Begun by the ICC as a matter of 
administrative discretion in the late 1930s, labor protection 
in mergers and related inter-carrier transactions was 
statutorily mandated by the Transportation Act of 1940, and has 
been required ever since. Similarly, later amendments to the 
Interstate Commerce Act extended this mandate to railroad 
abandonments. The ICC established the actual level of such 
protections at a maximum of 4 years' pay (one year for each 
year of prior service).
    In 1964, with the enactment of the Urban Mass Transit Act 
(now the Federal Transit Act), employees of transit systems 
affected by the reorganizations and consolidations resulting 
from receipt of Federal transit grants were required to be 
protected at the same level as ICC merger and abandonment 
protection--4 years. (This level was established by the 
regulations of the implementing agency, the Department of 
Labor.) Receipt of Federal transit assistance is conditioned 
upon such protective arrangements being in place. This is 
known, from its original statute, as ``Section 13(c)'' labor 
protection, now recodified as 49 U.S.C. 5333(b). Transit labor 
protection arrangements must ``provide benefits at least equal 
to benefits established under section 11347 [the ICC merger and 
abandonment protection standard].'' 49 U.S.C. 5333(b)(3) 
(emphasis added).
    When Amtrak was established by the Rail Passenger Service 
Act, Congress required in Section 405(a)-(c) that ``fair and 
equitable arrangements'' be made for employees adversely 
affected by service discontinuances. When the implementing 
agreements were negotiated between Amtrak and its labor unions, 
the maximum level of protection was set at 6 years' pay, a 50 
per cent increase over the existing freight rail and transit 
protection.
    In 1976, the Railroad Revitalization and Regulatory Reform 
(``4R'') Act explicitly linked freight (and derivatively 
transit) labor protection to the level required to be paid by 
Amtrak. The amended Interstate Commerce Act provision, now 
recodified as 49 U.S.C. 11347, requires the ICC to provide ``a 
fair arrangement at least as protective * * * as the terms 
imposed under this section [before enactment of the 4R Act] and 
the terms imposed under * * * section 24706(c) [the Amtrak 
labor protection mandate] (emphasis added)''. As a result of 
this 1976 change, the ICC was required to increase maximum 
merger and abandonment labor protection levels from 4 years to 
6 years pay; this was accomplished by the Commission in New 
York Dock Railway--Control--Brooklyn Eastern District, 360 
I.C.C. 60 (1979). Because the ICC standard increased from 4 to 
6 years, the cross-reference in the transit laws also required 
the Department of Labor to mandate a correlative increase in 
``section 13(c)'' transit protection. See 29 C.F.R. Part 215, 
43 Fed. Reg. 13558 (March 31, 1978).
    It is clear from this legislative and regulatory history of 
the related provisions that the Amtrak labor protection mandate 
was used to force both freight railroad and transit labor 
protection maximums up by 50 per cent through the applicable 
statutory cross-references. H.R. 1788 repeals the Amtrak 
mandate at the end of the 254-day bargaining process. 
Therefore, the question presented is: what effect, if any, does 
the repeal of the Amtrak labor protection mandate have upon 
existing freight railroad and transit labor protection 
standards?
    The freight standards are the key component of the 
analysis, because they control (directly) the level of 
protection required in ICC-regulated mergers and abandonments 
and they control (indirectly, by virtue of the cross-reference 
in 49 U.S.C. 5333(b)) the level of required transit protection. 
Looking at the plain language of 49 U.S.C. 11347 as it would be 
amended by H.R. 1788, the ICC statute would then require that 
merger and abandonment protection levels be ``at least as 
protective as * * * the terms imposed under this section before 
February 5, 1976 [the 4R Act] and the terms established under 
section 24706(c) of this title [the Amtrak standard].'' See 
H.R. 1788, Section 302 (a) and (c). Under Section 302(a)(4) of 
the bill, repeal of the Amtrak mandate takes effect 254 days 
after enactment.
    The plain language of a statute is the most basic and 
reliable guide to its interpretation. The post-enactment 
language of 49 U.S.C. 11347 would require that the ICC merger 
and abandonment protection levels be ``at least as protective'' 
as the 4-year pre-4R Act level and the Amtrak mandate level. 
Once the Amtrak mandate has been repealed, what is the status 
of the New York Dock ICC standard? Clearly it is not 
automatically superseded; just as the ICC had to implement the 
1976 amendments administratively in the New York Dock case, so 
too the ICC (or its soon-to-be-selected successor) will have to 
deal with the effects of the Amtrak repeal.
    It is worth noting that because of the ``at least'' nature 
of the cross-reference, the standard selected by the ICC after 
the 1976 amendments could have been greater than 6 years, 
because a 7-year level, for example, would have been ``at 
least'' equal to the 6-year Amtrak standard. This was confirmed 
by the court reviewing the ICC's New York Dock decision in the 
New York Dock Railway v. United States, 609 F.2d 83, 92 (2d 
Cir. 1979), citing Railway Labor Executives Assn. v. United 
States, 339 U.S. 142 (1950).
    Correlatively, after enactment of H.R. 1788, the current 6-
year New York Dock standard will still be ``at least'' as 
protective as the 4-year pre-4R Act level. Any modification of 
the present labor protection standards for freight railroad 
mergers and abandonments will require administrative action by 
the ICC or its successor. This is reaffirmed by the changes 
made to Section 302 of H.R. 1788, which as originally drafted 
would have immediately and automatically reduced the freight 
railroad standard of 49 U.S.C. 11347 to a 4-year maximum by 
operation of law. The version approved by the Committee, 
however, contains the more limited repeal described above.
    In light of the plain language of the existing statute and 
the amendments made by H.R. 1788, as well as the evolution of 
the language of the Committee-reported version of the bill, it 
is clear that administrative action by the ICC is the only 
means by which a lowering of the current New York Dock 6-year 
maximum could be effected. There is however, a contrary school 
of thought, represented by the views of the Federal Railroad 
Administration's chief counsel, solicited by the minority at 
the time of the Committee's markup of H.R. 1788.
    The chief counsel places very heavy reliance upon two 
points. First, H.R. 1788 does not extinguish the freight-
employee (Appendix C-1) agreements of Amtrak as it does with 
the C-2 agreements as part of the accelerated bargaining 
process. The actual language of Section 302 states that the 
terms extinguished at the end of the 254-day accelerated 
bargaining period include ``any provision of a contract, 
entered into before the date of enactment of this Act between 
Amtrak and a labor organization representing Amtrak employees, 
relating to * * * employee protective arrangements and 
severance benefits, including all provisions of Appendix C-2'' 
(emphasis added). Moreover, the FRA analysis does not address 
the core legal issue--the complete repeal of the entire Amtrak 
statutory mandate for labor protection--the section 24706(c) 
explicitly cross-referenced as the applicable benchmark in the 
ICC statute for all labor protection, whether granted pursuant 
to the C-1 appendix or the C-2 appendix. (We also note as to 
the distinction between pre-1976 freight protection and both C-
1 and C-2 Amtrak protection, the key change was from a 4-year 
maximum to a 6-year maximum benefit. Therefore, the ``terms 
established'' by Amtrak pursuant to its statutory mandate are 
essentially the same on this key point.)
    In any event, whether a particular Amtrak agreements 
remains in effect does not determine the regulatory authority 
and discretion of the ICC to revise its New York Dock standards 
in light of an intervening change in the law. After all, there 
were presumably contracts in effect governing both freight-
railroad and transit employees in 1976 when the 4R Act forced 
the ICC and the Department of Labor to amend (and increase the 
level of) their existing labor protection standards and 
regulations.
    The second pillar of the FRA analysis is that H.R. 1788 
does not alter the language in 49 U.S.C. 11347 requiring that 
the protection applicable in rail mergers and abandonments must 
be ``at least as protective * * * as the terms established 
under section 24706(c).'' Since Section 24706(c) will be 
repealed 254 days after enactment, the statute would literally 
require equaling or exceeding a standard with no substantive 
content. FRA attempts to avoid this conclusion by seizing upon 
the fact that H.R. 1788 strikes two other statutory references 
in 49 U.S.C. 11347, but not the reference to section 24706(c). 
This reflects a misapprehension of the purpose of the 
provision, Section 302(c) of the bill, that makes this change.
    Section 302(c) strikes references to sections 24307(c) and 
24312 as technical amendment. This correction is necessary 
because of an oversight in the recodification of the relevant 
parts of title 49 last year. See Pub. L. 103-272, Sec. 
5(l)(31), 108 Stat. 745, 1378 (July 5, 1994). The 
recodification replaced the previous reference in 49 U.S.C. 
11347 to ``Section 405 of the Rail Passenger Service Act'' with 
references to three newly recodified sections of title 49. 
However, two of the three deal with subjects entirely separate 
from labor protection and therefore are irrelevant to the 
subject-matter of 49 U.S.C. 11347. It should have been clear to 
the recodifiers that the prior reference to the labor 
protection ``arrangements'' and ``terms established under 
Section 405 of the Rail Passenger Service Act'' meant that only 
the successor recodified provision relevant to labor protection 
should be cross-referenced. That was not done. Therefore, H.R. 
1788 corrects this mistake. Thus, contrary to FRA's 
interpretation, there is no basis for any inference that 
repealing the two improperly referenced sections while not 
repealing the mention of section 24706(c) has any significance 
for the issue presented here.
    This leaves the FRA analysis based solely on the fact that 
the phrase ``terms established'' uses the past tense. According 
to FRA, that gives the New York Dock standards the status of a 
one-time-only agency action, which cannot be revised or 
superseded to reflect a subsequent change in the law--the 
proposed repeal of section 24706(c)--that is explicitly cross-
referenced. According to FRA, the one-time determinant of the 
level of New York Dock protection is the 1973 Amtrak agreement 
governing freight employees (the C-1 Appendix). This contention 
cannot withstand scrutiny.
    Under the FRA interpretation, Amtrak's 1973 contract 
determines--and permanently freezes--the existing 6-year ICC 
New York Dock standards, regardless of any subsequent changes 
in the Amtrak agreement. This line of reasoning ignores the 
distinction drawn in Section 11347 itself between a time-
limited standard and a changeable or floating standard. The 
first cross-reference in Section 11347--to ``the terms imposed 
under this section prior to February 5, 1976''--is clearly 
time-limited: it cannot change because of subsequent events or 
administrative decisions. (Prior to its 1978 recodification, 
the freight cross-reference said ``terms heretofore imposed.'' 
See New York Dock Railway v. United States,  609 F.2d 83, 90 
n.3 (2d Cir. 1979).)
    There is no such limitation as to time concerning the 
second cross-reference, the one that incorporates the Amtrak 
standard--``terms established under * * * section 24706(c) of 
this title.'' Presumably, if Congress had intended the Amtrak 
standard to be forever frozen by the 1973 agreements, it could 
and would have specified the Amtrak terms applicable as of a 
date certain as it did for the referenced freight protection 
standard; the Congress did not. Instead, it made the reference 
to Amtrak's labor protection arrangements generic, and 
presumably flexible, to allow for subsequent modifications of 
Amtrak's arrangements. Notwithstanding FRA's reliance on the 
past tense of ``established,'' we note that ``established'' is 
not equivalent to ``established only prior to enactment of this 
statute.'' Moreover, this line of reasoning runs squarely in 
the face of the plain language of the statute as amended by 
H.R. 1788--that the freight standard must be ``at least'' equal 
to the 1976 pre-4R-Act standards and the Amtrak standards. 
Surely the ``at least'' phrase, to have any meaning at all, 
must confer on the ICC the authority to exercise discretion to 
alter or modernize its standards (including possibly keeping 
the freight labor protection standards higher than legally 
required) as long as the new standards meet the applicable 
legal minimums, including the cross-referenced statutes, in 
effect at the time of the ICC's revision.
    The Committee also notes that removing the reference to 
section 24706(c) from section 11347 could have been 
misconstrued as contradicting the basic design of the 
accelerated bargaining process provided for in H.R. 1788--to 
delay repeal of the Amtrak labor protection mandate until the 
end of the accelerated bargaining process. Prior to that date, 
the current statutory obligations apply to Amtrak--and 
derivatively to the ICC's standards.
    Based upon the plain language of the existing statute and 
the amendments contained in H.R. 1788, the ICC or its successor 
would have the administrative discretion to revise its existing 
New York Dock standards to reflect the repeal of 49 U.S.C. 
24706(c).
    As noted earlier, however, because of the ``at least'' 
language in the ICC statute, the agency would not be required 
to lower the existing standards solely because of the changes 
contained in H.R. 1788. A necessary corollary of the ICC's 
administrative authority to revisit the New York Dock standards 
is that, if the ICC were to revise those standards, the 
Department of Labor would have a corresponding duty to re-
examine transit labor protection, due to the explicit linkage 
and cross-reference of its labor protection statute (49 U.S.C. 
5333(b)), requiring DOL to maintain standards ``at least 
equal'' to the ICC level of protection required under 49 U.S.C. 
11347.

                  TITLE IV--USE OF RAILROAD FACILITIES

Section 401. Liability limitation

    This section imposes limits on tort liability in the event 
of a rail passenger accident and confirms the right of rail 
passenger operators and owners of rights-of-way to 
contractually indemnify each other for liability arising out of 
rail passenger accidents.
    Subsection (a) places the following caps in claims for 
personal injury, death or damage to property arising from rail 
passenger accidents: punitive damages limited to three times 
economic loss or $250,000, whichever is greater; noneconomic 
loss limited to $250,000 greater than economic loss. Limits 
apply on a per person, per accident basis. The subsection 
provides that, in any place where the law provides only for 
punitive damages for an event result in death, a claimant would 
be eligible to receive both noneconomic and economic damages, 
subject to the limits described above.
    Subsection (a) also reaffirms the powers of passenger rail 
operators and entities providing facilities and infrastructure 
to enter into contractual indemnity arrangements to allocate 
the cost of liability incurred under the limits described 
above. These indemnification agreements are essential to 
facilitating passenger, commuter, and excursion rail service, 
especially in light of the absence of an arm's length economic 
relationship between these carriers and the freight railroads 
whose facilities are required for their operation, since the 
indemnification agreements are part of the contractual 
consideration. The uncertainty of enforcement of such 
agreements has become a major barrier to the expansion of 
commuter and passenger service and an outright obstacle to 
high-speed rail service since the decision in National Railroad 
Passenger Corp. v. Consolidated Rail Corp., 698 F. Supp. 951 
(D.D.C. 1988). The Committee believes that the public interest 
is best served by facilitating rail passenger service through 
legislation providing that once rail passenger transportation 
indemnification agreements are negotiated, they will be 
enforced. Accordingly, the Committee is overruling the National 
Railroad Passenger Corporation case in order to restore 
indemnitees' confidence in the enforceability of their 
indemnification agreements. No inference is to be drawn from 
the inclusion of this provision about the enforceability of any 
rail passenger transportation indemnification agreement for any 
obligation arising before the effective date of this provision.

                       title v--financial reforms

Section 501. Financial powers

    Subsection (a) repeals the statutory requirements relating 
to stock issuances (preferred and common). The subsection is 
replaced with an encouragement that Amtrak use employee stock 
ownership plans (ESOPs) in any future stock issuances.
    Subsection (b) requires Amtrak to redeem all of its common 
stock for fair market value within 2 months of the date of 
enactment. This stock was issued to private railroads in 
exchange for donations of start-up equipment when Amtrak was 
formed. The liability reform provision will not apply to rail 
carriers who do not relinquish their common stock within the 2-
month deadline. In addition, Amtrak is required to utilize its 
condemnation powers to redeem any stock still outstanding after 
the 2-month deadline.
    Subsection (c) eliminates the liquidation preference of 
DOT's preferred stock effective 90 days after enactment. The 
Secretary's voting rights are also extinguished 60 days after 
enactment.
    Subsection (d) eliminates DOT's note and mortgage on the 
Northeast Corridor.
    Subsection (e) removes Amtrak from the Government 
Corporations Act and the Inspector General Act.

Section 502. Disbursement of Federal funds

    This section provides that Amtrak is to receive all 
appropriated funds for a fiscal year upon request, and that 
these funds shall not be includible in Amtrak's gross income 
for Federal tax purposes.

Section 503. Board of directors

    This section calls for the appointment of a new 7-member 
board of directors, called the Emergency Reform Board, who will 
be charged with setting Amtrak on a course to financial 
stability during the board's 4-year tenure. The new board will 
develop bylaws under which future boards of directors are to be 
selected.
    Section (a) repeals the current statutory structure for 
Amtrak's board of directors and requires the Emergency Reform 
Board to assume its responsibilities 60 days after enactment. 
Successor boards are required to include employee 
representation. The Emergency Reform Board is to be appointed 
by the President as follows: 2 members each in consultation 
with the Speaker of the House of Representatives and the 
Majority Leader of the Senate; 1 member each in consultation 
with the Minority Leader of the House of Representatives and 
the Minority Leader of the Senate; 1 member appointed by the 
President. All members are required to have background and 
expertise in transportation and corporate management, and to be 
confirmed by the Senate. Employees of Amtrak, the United States 
Government, and representative of rail labor or rail management 
are eligible.
    The subsection provides that if the Emergency Reform Board 
is not sufficiently constituted to function as a board of 
directors 60 days after enactment, the ``special court''--a 5-
member Federal court created under section 209(b) of the 
Regional Rail Reorganization Act of 1973 to oversee railroad 
bankruptcies in the Northeast--will appoint a temporary 
``director general'' to exercise board powers until the new 
board takes office.
    Subsection (b) requires that if the Emergency Reform Board 
is not in place by March 15, 1996, Amtrak funding 
authorizations beyond Fiscal Year 1996 will lapse.

Section 504. Reports and audits

    This section repeals Amtrak's obligation to submit a route-
by-route annual performance report to Congress and the 
obligation of the Secretary of Transportation to submit a 
report to Congress evaluating Amtrak's report. H.R. 1788 would 
retain Amtrak's obligation to submit an annual report and 
legislative agenda to Congress, as well as the requirement that 
Amtrak have an annual independent audit of its financial 
statements. In addition, the General Accounting Office 
maintains its rights of access to any relevant Amtrak records 
needed to conduct an audit.

Section 505. Officers' pay

    This section provides that the current salary cap for 
Amtrak executives will lapse in the first year after a fiscal 
year when Amtrak does not receive Federal operating subsidies.

Section 506. Exemption from taxes

    This section clarifies that Amtrak's current tax exemption 
from State and local taxes includes sales or other passenger 
taxes on tickets or services. This is in response to a recent 
Supreme Court decision that could be construed to authorize 
such taxes. The section also ends local exceptions to tax 
exemptions that were provided in prior statutes. The provision 
is not intended to confer a tax exemption on individuals or 
companies selling goods or services to Amtrak.

                        title vi--miscellaneous

Section 601. Temporary Rail Advisory Council

    This section establishes a special expert body to review 
Amtrak's business methods and accounting procedures.
    Subsection (a) requires that the Temporary Rail Advisory 
Council (TRAC) be appointed within 30 days after enactment.
    Subsection (b) establishes the duties of TRAC, including an 
analysis of Amtrak's business plan and recommendations for 
further cost containment aimed at an eventual privatization of 
Amtrak.
    Subsection (c) establishes the procedure for appointment of 
TRAC members. The seven members are to be appointed as follows: 
2 members by the Speaker of the House of Representatives; 1 
member by the Minority Leader of the House of Representatives; 
2 members by the Majority Leader of the Senate; one member by 
the Minority Leader of the Senate; one member by the President. 
Members are required to have expertise and professional 
standing in transportation and corporate management. Employees 
of Amtrak, the United States Government, and representatives of 
rail labor or rail management are ineligible.
    Subsection (d) allows TRAC members to receive compensation 
for per diem expenditures.
    Subsection (e) requires the Secretary of Transportation to 
provide administrative support for the TRAC.
    Subsection (f) requires Amtrak to provide the TRAC with 
access to any records that it needs to carry out its duties. 
The TRAC is required to keep confidential any items that could 
place Amtrak at a competitive disadvantage if disclosed.
    Subsection (g) requires that the TRAC submit to the Amtrak 
board of directors and to the Congress an interim report within 
120 days of enactment, and a final report within 270 days of 
enactment.
    Subsection (h) exempts the TRAC from the Federal Advisory 
Committee Act and the Freedom of Information Act.

Section 602. Principal office and place of business

    This section repeals the current requirement that Amtrak be 
headquartered in the District of Columbia. This is in keeping 
with the general thrust of the legislation to allow Amtrak to 
operate like a private business, which includes selecting the 
most appropriate location for its headquarters without Federal 
intervention.

Section 603. Status and applicable laws

    This section amends the current provision concerning 
Interstate Commerce Committee jurisdiction of Amtrak to clarify 
that only limited provisions of the Interstate Commerce Act 
apply to Amtrak: access to terminal facilities, pooling 
agreements, protection against double State income taxation of 
employees, and liability standards for damage to shipments in 
transit. The section explicitly disclaims any effect on 
Amtrak's status as an employer under the Railroad Retirement 
Act and the Railroad Unemployment Insurance Act.

Section 604. Waste disposal

    This section defers Amtrak's statutory deadlines for full 
compliance with retention-toilet retrofit requirements to 2001 
in lieu of 1996, to allow for retirement of older cars and 
avoid costly retrofitting of cars about to be retired.

Section 605. Assistance for upgrading facilities

    This section repeals obsolete and executed provisions about 
safety-related repairs to Amtrak stations.

Section 606. Rail safety system program

    This section repeals a provision specifying the contents of 
Amtrak's internal safety program.

Section 607. Demonstration of new technology

    This section repeals a redundant provision on Amtrak use of 
high-speed rail technology. This matter has been addressed in 
recent high-speed rail legislation conferring authority on the 
Federal Railroad Administration in this field.

Section 608. Program master plan for Boston-New York main line

    Subsection (a) repeals an obsolete provision on planning 
for upgrade of the northern segment of the Northeast Corridor.
    Subsection (b) makes a technical conforming amendment.

Section 609. Boston-New Haven electrification project

    This section requires Amtrak to design and construct its 
electrification project between New Haven, Connecticut, and 
Boston, Massachusetts, to accommodate the installation of a 
third mainline track between Davisville and Central Falls, 
Rhode Island. In addition, if funds are provided, Amtrak is to 
make clearance improvements on the existing main line tracks to 
permit double-stack service on this line.
    The Committee intends this section as a clarification of 
Amtrak's responsibilities vis-a-vis a proposed freight rail 
infrastructure project in Rhode Island. Amtrak's 
electrification project is to be designed so as not to 
prejudice the possibility of the installation of a third track 
between Davisville and Central Falls, Rhode Island. However, 
Amtrak is in no way obligated to provide funds for this 
project, which is being undertaken for the exclusive benefit of 
local freight rail and shipping interests.

Section 610. Americans With Disabilities Act

    Subsection (a) defers Amtrak's statutory deadlines under 
the Americans With Disabilities Act (ADA) for passenger cars, 
station, and facility modifications to 1998. This section has 
no effect on ADA requirements for procurement of new rail cars.
    Subsection (b) makes a technical, conforming amendment.

Section 611. Definitions

    This section adds a new definition of ``rail passenger 
transportation,'' to the recodified Rail Passenger Service Act, 
a term which had been previously undefined. It also clarifies 
that a unit of State or local government, but not necessarily 
such a government's contractor, can be included under the 
definition of rail carrier.

Section 612. Northeast Corridor cost dispute

    This section repeals an executed and obsolete provision 
directing the Interstate Commerce Commission to settle a 
specific dispute.

Section 613. Inspector General Act

    Subsection (a) removes Amtrak from coverage under the 
Inspector General Act on the ground that Amtrak is not a 
government agency.
    Subsection (b) clarifies that Amtrak shall not be 
considered a Federal entity for purposes of the Inspector 
General Act of 1978.

Section 614. Consolidated Rail Corporation

    This section repeals an obsolete provision enacted prior to 
Conrail's privatization specifying the composition of Conrail's 
board of directors.

Section 615. Interstate rail compacts

    Subsection (a) provides for advance consent by Congress to 
multi-state agreements to support and fund intercity rail 
passenger service and related facilities. This avoids the need 
for individual Congressional consent legislation each time such 
a compact is negotiated.
    Subsection (b) establishes the financial arrangements that 
an interstate compact may provide for including borrowing money 
on a short-term basis and issuing bonds.
    While the interstate impact provision is designed to ease 
the way for agreements between States, the Committee is aware 
that it does not provide a remedy for rail lines that cross an 
international border, such as the Pacific Northwest Corridor 
that stretches from Eugene, Oregon, through Seattle, 
Washington, to Vancouver, British Columbia, Canada. In order to 
ease the way for rail routes that cross international borders, 
a treaty is needed similar to the ``Open Skies'' agreement that 
the United States and Canada have signed to enhance air travel. 
Such a treaty would provide opportunities for bilateral 
international cooperation and investment in improved rail 
passenger service. While legislative treatment of this issue is 
beyond the scope of H.R. 1788, the Committee urges the 
Administration to negotiate such agreements as may be necessary 
to enable the United States and Canadian Federal, State or 
provincial, and local government funds to be used in compacts 
between the United States and Canadian provinces comparable to 
the interstate rail compacts authorized in this section.

Section 616. Conforming amendment

    This section repeals an obsolete provision of the 
Interstate Commerce Act directing the ICC to maintain standards 
for compensation of Amtrak for commuter and freight use of 
Amtrak and facilities.

               title vii--authorization of appropriations

Section 701. Authorization of appropriations

    Subsection (a) authorizes funds for Amtrak capital and 
operating expenses, including payments to the Railroad 
Retirement Board, in the amount of:
          (1) $772,000,000 for fiscal year 1995;
          (2) $712,000,000 for fiscal year 1996;
          (3) $712,000,000 for fiscal year 1997;
          (4) $712,000,000 for fiscal year 1998; and
          (5) $403,000,000 for fiscal year 1999.
    Subsection (b) authorizes funds for Amtrak capital 
expenditures for Northeast Corridor improvements in the amount 
of:
          (1) $200,000,000 for fiscal year 1995;
          (2) $200,000,000 for fiscal year 1996;
          (3) $200,000,000 for fiscal year 1997;
          (4) $200,000,000 for fiscal year 1998; and
          (5) $200,000,000 for fiscal year 1999.
In addition, the subsection authorizes funds for Amtrak 
expenditures relating to the redevelopment of the James A. 
Farley Post Office building in New York City to be used as an 
intercity train station and commercial facility in the amount 
of:
          (1) $21,500,000 for fiscal year 1995;
          (2) $10,000,000 for fiscal year 1996;
          (3) $10,000,000 for fiscal year 1997;
          (4) $10,000,000 for fiscal year 1998; and
          (5) $10,000,000 for fiscal year 1999.
    Subsection (c) makes a technical conforming amendment.
    Subsection (d) authorizes funds for guaranteeing 
obligations of Amtrak under Section 511 of the Railroad 
Revitalization and Regulatory Reform Act of 1976 in the amount 
of:
          (1) $50,000,000 for fiscal year 1996;
          (2) $50,000,000 for fiscal year 1997;
          (3) $50,000,000 for fiscal year 1998; and
          (4) $50,000,000 for fiscal year 1999.
These amounts are for the subsidy component only (not face 
value) of guaranteed loans for infrastructure improvements.
    Subsection (e) amends Section 511 program requirements to 
overturn the current DOT policy requiring that the Federal 
guarantor come ahead of even pre-existing creditors as a 
condition of making any guaranteed loan.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italics, existing law in which no change is proposed 
is shown in roman):

                      TITLE 49, UNITED STATES CODE

          * * * * * * *

                    SUBTITLE IV--INTERSTATE COMMERCE

          * * * * * * *

              CHAPTER 103--INTERSTATE COMMERCE COMMISSION

          * * * * * * *

              SUBCHAPTER IV--RAIL SERVICES PLANNING OFFICE

          * * * * * * *

Sec. 10362. Duties

  (a) * * *
  (b) The Rail Services Planning Office shall--  
          (1) * * *
          * * * * * * *
          [(5) prescribe regulations that contain standards for 
        the computation of subsidies for rail passenger 
        transportation (except passenger transportation 
        compensation disputes subject to the jurisdiction of 
        the Commission under sections 24308(a) and 24903(c)(2) 
        of this title) that are consistent with the 
        compensation principles described in the final system 
        plan established under the Regional Rail Reorganization 
        Act of 1973 (45 U.S.C. 701 et seq.) and that avoid 
        cross-subsidization among commuter, intercity, and 
        freight rail transportation;]
          [(6)] (5) maintain, and from time to time revise and 
        republish after a proceeding under section 553 of title 
        5, standards for determining the revenue attributable 
        to the rail properties, the avoidable costs of 
        providing transportation, a reasonable return on the 
        value, and a reasonable management fee;  
          [(7)] (6) maintain regulations that--
                  (A) develop an accounting system permitting 
                the collection and publication by profitable 
                rail carriers providing transportation over 
                lines scheduled for abandonment, of information 
                necessary for an accurate determination of the 
                attributable revenues, avoidable costs, and 
                operations of light density lines as operating 
                and economic units; and
                  (B) determine the avoidable cost of providing 
                rail freight transportation; and  
          [(8)] (7) carry out other duties conferred on the 
        Office by law.
          * * * * * * *

                          CHAPTER 113--FINANCE

          * * * * * * *

                      SUBCHAPTER III--COMBINATIONS

          * * * * * * *

Sec. 11347. Employee protective arrangements in transactions involving 
                    rail carriers

  When a rail carrier is involved in a transaction for which 
approval is sought under sections 11344 and 11345 or section 
11346 of this title, the Interstate Commerce Commission shall 
require the carrier to provide a fair arrangement at least as 
protective of the interests of employees who are affected by 
the transaction as the terms imposed under this section before 
February 5, 1976, and the terms established under [sections 
24307(c), 24312, and] section 24706(c) of this title. 
Notwithstanding this subtitle, the arrangement may be made by 
the rail carrier and the authorized representative of its 
employees. The arrangement and the order approving the 
transaction must require that the employees of the affected 
rail carrier will not be in a worse position related to their 
employment as a result of the transaction during the 4 years 
following the effective date of the final action of the 
Commission (or if an employee was employed for a lesser period 
of time by the carrier before the action became effective, for 
that lesser period).
          * * * * * * *

                       SUBTITLE V--RAIL PROGRAMS

          * * * * * * *

                             PART A--SAFETY

Chapter                                                             Sec.
     * * * * * * *

                    PART C--PASSENGER TRANSPORTATION

241.  GENERAL.................................................     24101
     * * * * * * *
[245.  AMTRAK COMMUTER........................................    24501]
     * * * * * * *

                    PART C--PASSENGER TRANSPORTATION

                          CHAPTER 241--GENERAL

          * * * * * * *

Sec. 24101. Findings, purpose, and goals

  (a) * * *
          * * * * * * *
  (c) Goals.--Amtrak shall--
          (1) * * *
          (2) minimize Government subsidies by encouraging 
        State, regional, and local governments and the private 
        sector, separately or in combination, to share the cost 
        of providing rail passenger transportation, including 
        the cost of operating facilities;
          * * * * * * *
  [(d) Minimizing Government Subsidies.--To carry out 
subsection (c)(11) of this section, Amtrak is encouraged to 
make agreements with the private sector and undertake 
initiatives that are consistent with good business judgment and 
designed to maximize its revenues and minimize Government 
subsidies.]
  (d) Minimizing Government Subsidies.--To carry out this part, 
Amtrak is encouraged to make agreements with the private sector 
and undertake initiatives that are consistent with good 
business judgment, that produce income to minimize Government 
subsidies, and that promote the potential privatization of 
Amtrak's operations.

Sec. 24102. Definitions

  In this part--
          (1) * * *
          [(2) ``avoidable loss'' means the avoidable costs of 
        providing rail passenger transportation, less revenue 
        attributable to the transportation, as determined by 
        the Interstate Commerce Commission under section 553 of 
        title 5.
          [(3) ``basic system'' means the system of intercity 
        rail passenger transportation designated by the 
        Secretary of Transportation under section 4 of the 
        Amtrak Improvement Act of 1978 and approved by 
        Congress, and transportation required to be provided 
        under section 24705(a) of this title and section 4(g) 
        of the Act, including changes in the system or 
        transportation that Amtrak makes using the route and 
        service criteria.]
          [(4)] (2) ``commuter authority'' means a State, 
        local, or regional entity established to provide, or 
        make a contract providing for, commuter rail passenger 
        transportation.
          [(5)] (3) ``commuter rail passenger transportation'' 
        means short-haul rail passenger transportation in 
        metropolitan and suburban areas usually having reduced 
        fare, multiple-ride, and commuter tickets and morning 
        and evening peak period operations.
          [(6)] (4) ``intercity rail passenger transportation'' 
        means rail passenger transportation, except commuter 
        rail passenger transportation.
          [(7)] (5) ``Northeast Corridor'' means Connecticut, 
        Delaware, the District of Columbia, Maryland, 
        Massachusetts, New Jersey, New York, Pennsylvania, and 
        Rhode Island.
          [(8)] (6) ``rail carrier'' means a person, including 
        a unit of State or local government, providing rail 
        transportation for compensation.
          (7) ``rail passenger transportation'' means the 
        interstate, intrastate, or international transportation 
        of passengers by rail;
          [(9)] (8) ``rate'' means a rate, fare, or charge for 
        rail transportation.
          [(10)] (9) ``regional transportation authority'' 
        means an entity established to provide passenger 
        transportation in a region.
          [(11) ``route and service criteria'' means the 
        criteria and procedures for making route and service 
        decisions established under section 404(c)(1)-(3)(A) of 
        the Rail Passenger Service Act.]
          * * * * * * *

Sec. 24104. Authorization of appropriations

  [(a) Capital Acquisition and Corridor Development.--(1) Not 
more than $250,000,000 may be appropriated to the Secretary of 
Transportation for each of the fiscal years ending September 
30, 1993, and September 30, 1994, for the benefit of Amtrak to 
make capital expenditures under chapters 243-247 of this title.
  [(2) In addition to amounts that may be appropriated under 
section 24909 of this title, not more than the following 
amounts may be appropriated to the Secretary for the benefit of 
Amtrak to make capital expenditures under chapter 249 of this 
title:
          [(A) $220,000,000 for the fiscal year ending 
        September 30, 1993.
          [(B) $250,000,000 for the fiscal year ending 
        September 30, 1994.
  [(3)(A) Not more than 15 percent of each of the amounts 
appropriated under paragraphs (1) and (2) of this subsection is 
available for transportation described in subparagraphs (B) and 
(C) of this paragraph.
  [(B) Amounts made available under subparagraph (A) of this 
paragraph shall be used to develop new intercity rail passenger 
transportation on corridors between cities undergoing 
significant population growth and in which the transportation 
reasonably can be expected to provide travel times comparable 
with other surface transportation modes. An amount may be 
expended for the transportation only if a State requests the 
transportation and the State and Amtrak agree that--
          [(i) Amtrak will pay at least 90 percent of the cost 
        of acquiring rolling stock for the transportation; and
          [(ii) the State will pay at least 90 percent of the 
        cost of improving the right of way, including track 
        structure, signal systems, passenger station 
        facilities, highway and pedestrian grade crossings, and 
        other safety equipment and facilities.
  [(C) Amounts made available under subparagraph (A) of this 
paragraph shall be used to begin new long distance intercity 
rail passenger transportation. An amount may be expended for 
the transportation only if a State requests the transportation 
and the State and Amtrak agree that--
          [(i) Amtrak will pay at least 75 percent of the cost 
        of acquiring rolling stock for the transportation; and
          [(ii) the State will pay at least 90 percent of the 
        cost of improving the right of way, including track 
        structure, signal systems, passenger station 
        facilities, highway and pedestrian grade crossings, and 
        other safety equipment and facilities.
  [(D) Section 24704 of this title applies to the operating 
expenses of transportation described in subparagraphs (B) and 
(C) of this paragraph.
  [(b) Operating Expenses.--(1) Not more than $381,000,000 may 
be appropriated to the Secretary for each of the fiscal years 
ending September 30, 1993, and September 30, 1994, for the 
benefit of Amtrak for operating expenses. Not more than 5 
percent of the amounts appropriated for each fiscal year shall 
be used to pay operating expenses under section 24704 of this 
title for transportation in operation on September 30, 1992.
  [(2)(A) Not more than the following amounts may be 
appropriated to the Secretary for the benefit of Amtrak for 
operating losses under section 24704 of this title for 
transportation beginning after September 30, 1992:
          [(i) $7,500,000 for the fiscal year ending September 
        30, 1993.
          [(ii) $9,500,000 for the fiscal year ending September 
        30, 1994.
  [(B) The expenditure by Amtrak of an amount appropriated 
under subparagraph (A) of this paragraph is deemed not to be an 
operating expense when calculating the revenue-to-operating 
expense ratio of Amtrak.]
  (a) In General.--There are authorized to be appropriated to 
the Secretary of Transportation--
          (1) $772,000,000 for fiscal year 1995;
          (2) $712,000,000 for fiscal year 1996;
          (3) $712,000,000 for fiscal year 1997;
          (4) $712,000,000 for fiscal year 1998; and
          (5) $403,000,000 for fiscal year 1999,
for the benefit of Amtrak for capital expenditures under 
chapters 243 and 247 of this title, operating expenses, and 
payments described in subsection (c)(1)(A) through (C).
  (b) Additional Authorizations.--(1) In addition to amounts 
appropriated under subsection (a), there are authorized to be 
appropriated to the Secretary of Transportation--
          (A) $200,000,000 for fiscal year 1995;
          (B) $200,000,000 for fiscal year 1996;
          (C) $200,000,000 for fiscal year 1997;
          (D) $200,000,000 for fiscal year 1998; and
          (E) $200,000,000 for fiscal year 1999,
for the benefit of Amtrak to make capital expenditures under 
chapter 249 of this title.
  (2) In addition to amounts appropriated under subsection (a), 
there are authorized to be appropriated to the Secretary of 
Transportation--
          (A) $21,500,000 for fiscal year 1995;
          (B) $10,000,000 for fiscal year 1996;
          (C) $10,000,000 for fiscal year 1997;
          (D) $10,000,000 for fiscal year 1998; and
          (E) $10,000,000 for fiscal year 1999,
for the benefit of Amtrak to be used for engineering, design, 
and construction activities to enable the James A. Farley Post 
Office in New York, New York, to be used as a train station and 
commercial center and for necessary improvements and 
redevelopment of the existing Pennsylvania Station and 
associated service building in New York, New York.
          * * * * * * *
  [(d) Payment to Amtrak.--Amounts appropriated under this 
section shall be paid to Amtrak under the budget request of the 
Secretary as approved or modified by Congress when the amounts 
are appropriated. A payment may not be made more frequently 
than once every 90 days, unless Amtrak, for good cause, 
requests more frequent payment before a 90-day period ends. In 
each fiscal year in which amounts are authorized to be 
appropriated under this section, amounts appropriated shall be 
paid to Amtrak as follows:
          [(1) 50 percent on October 1.
          [(2) 25 percent on January 1.
          [(3) 25 percent on April 1.]
  (d) Administration of Appropriations.--Federal funds 
appropriated to Amtrak shall be provided to Amtrak upon 
appropriation when requested by Amtrak, and shall not be 
includible in Amtrak's gross income for Federal tax purposes.
          * * * * * * *

                          CHAPTER 243--AMTRAK

Sec.
24301.  Status and applicable laws.
24302.  Board of directors.
     * * * * * * *
[24304.  Capitalization.]
24304.  Employee stock ownership plans.
     * * * * * * *
[24306.  Mail, express, and auto-ferry transportation.]
     * * * * * * *
[24310.  Assistance for upgrading facilities.]
     * * * * * * *
[24313.  Rail safety system program.
[24314.  Demonstration of new technology.]
     * * * * * * *

Sec. 24301. Status and applicable laws

  (a) Status.--Amtrak--
          (1) is a [rail carrier under section 10102] railroad 
        carrier under section 20102(2) and chapters 261 and 281 
        of this title;
          * * * * * * *
          (3) is not a department, agency, or instrumentality 
        of the United States Government, and shall not be 
        subject to title 31, United States Code.
  (b) Principal Office and Place of Business.--[The principal 
office and place of business of Amtrak are in the District of 
Columbia.] Amtrak is qualified to do business in each State in 
which Amtrak carries out an activity authorized under this 
part. Amtrak shall accept service of process by certified mail 
addressed to the secretary of Amtrak at its principal office 
and place of business. Amtrak is a citizen only of the 
[District of Columbia] State in which its principal office and 
place of business is located when deciding original 
jurisdiction of the district courts of the United States in a 
civil action. For purposes of this subsection, the term 
``State'' includes the District of Columbia. Notwithstanding 
section 3 of the District of Columbia Business Corporation Act, 
Amtrak, if its principal office and place of business is 
located in the District of Columbia, shall be considered 
organized under the provisions of such Act.
  [(c) Application of Subtitle IV.--(1) Subtitle IV of this 
title applies to Amtrak, except for provisions related to the--
          [(A) regulation of rates;
          [(B) abandonment or extension of rail lines used only 
        for passenger transportation and the abandonment or 
        extension of operations over those lines;
          [(C) regulation of routes and service;
          [(D) discontinuance or change of rail passenger 
        transportation operations; and
          [(E) issuance of securities or the assumption of an 
        obligation or liability related to the securities of 
        others.
  [(2) Notwithstanding this subsection--
          [(A) sections 10721-10724 of this title apply to 
        Amtrak; and
          [(B) on application of an adversely affected motor 
        carrier, the Interstate Commerce Commission under any 
        provision of subtitle IV of this title applicable to a 
        carrier subject to subchapter I of chapter 105 of this 
        title may hear a complaint about an unfair or predatory 
        rate or marketing practice of Amtrak for a route or 
        service operating at a loss.]
  (c) Application of Subtitle IV.--Subtitle IV of this title 
shall not apply to Amtrak, except for sections 11303, 11342(a), 
11504(a) and (d), and 11707. Notwithstanding the preceding 
sentence, Amtrak shall continue to be considered an employer 
under the Railroad Retirement Act of 1974, the Railroad 
Unemployment Insurance Act, and the Railroad Retirement Tax 
Act.
          * * * * * * *
  (e) Application of Certain Additional Laws.--[Section 552 of 
title 5, this part,] This part and, to the extent consistent 
with this part, the District of Columbia Business Corporation 
Act (D.C. Code Sec. 29-301 et seq.) apply to Amtrak.
  [(f) Laws Governing Leases and Contracts.--The laws of the 
District of Columbia govern leases and contracts of Amtrak, 
regardless of where they are executed.]
  (f) Tax Exemption for Certain Commuter Authorities.--A 
commuter authority that was eligible to make a contract with 
Amtrak Commuter to provide commuter rail passenger 
transportation but which decided to provide its own rail 
passenger transportation beginning January 1, 1983, is exempt, 
effective October 1, 1981, from paying a tax or fee to the same 
extent Amtrak is exempt.
          * * * * * * *
  (l) Exemption From Taxes Levied After September 30, 1981.--
(1) Amtrak or a rail carrier subsidiary of Amtrak, and any 
passenger or other customer of Amtrak or such subsidiary, is 
exempt from a tax [or fee imposed by a State, a political 
subdivision of a State, or a local taxing authority and levied 
on it], fee, head charge, or other charge, imposed or levied by 
a State, political subdivision, or local taxing authority, 
directly or indirectly on Amtrak or on persons traveling in 
intercity rail passenger transportation or on mail or express 
transportation provided by Amtrak or a rail carrier subsidiary 
of Amtrak, or on the carriage of such persons, mail, or 
express, or on the sale of any such transportation, or on the 
gross receipts derived therefrom after September 30, 1981. 
[However, Amtrak is not exempt under this subsection from a tax 
or fee that it was required to pay as of September 10, 1982.] 
In the case of a tax or fee that Amtrak was required to pay as 
of September 10, 1982, Amtrak is not exempt from such tax or 
fee if it was assessed before April 1, 1995.
          * * * * * * *
  (m) Waste Disposal.--(1) An intercity rail passenger car 
manufactured after October 14, 1990, shall be built to provide 
for the discharge of human waste only at a servicing facility. 
Amtrak shall retrofit each of its intercity rail passenger cars 
that was manufactured after May 1, 1971, and before October 15, 
1990, with a human waste disposal system that provides for the 
discharge of human waste only at a servicing facility. Subject 
to appropriations--
          (A) the retrofit program shall be completed not later 
        than October 15, [1996] 2001; and
          * * * * * * *
  (o) Nonapplication of Certain Other Laws.--State and local 
laws and regulations that impair the provision of mail, 
express, and auto-ferry transportation do not apply to Amtrak 
or a rail carrier providing mail, express, or auto-ferry 
transportation.

[Sec. 24302. Board of directors

  [(a) Composition and Terms.--(1) The board of directors of 
Amtrak is composed of the following 9 directors, each of whom 
must be a citizen of the United States:
          [(A) the Secretary of Transportation.
          [(B) the President of Amtrak.
          [(C) 3 individuals appointed by the President of the 
        United States, by and with the advice and consent of 
        the Senate, as follows:
                  [(i) one individual selected from a list of 3 
                qualified individuals submitted by the Railway 
                Labor Executives Association.
                  [(ii) one chief executive officer of a State 
                selected from among the chief executive 
                officers of States with an interest in rail 
                transportation. The chief executive officer may 
                select an individual to act as the officer's 
                representative at board meetings.
                  [(iii) one individual selected as a 
                representative of business with an interest in 
                rail transportation.
          [(D) 2 individuals selected by the President of the 
        United States from a list of names consisting of one 
        individual nominated by each commuter authority for 
        which Amtrak Commuter provides commuter rail passenger 
        transportation under section 24505 of this title and 
        one individual nominated by each commuter authority in 
        the region (as defined in section 102 of the Regional 
        Rail Reorganization Act of 1973 (45 U.S.C. 702)) that 
        provides its own commuter rail passenger transportation 
        or makes a contract with an operator (except Amtrak 
        Commuter), except that--
                  [(i) one of the individuals selected must 
                have been nominated by a commuter authority for 
                which Amtrak Commuter provides commuter rail 
                transportation; or
                  [(ii) if Amtrak Commuter does not provide 
                commuter rail passenger transportation for any 
                authority, the 2 individuals shall be selected 
                from a list of 5 individuals submitted by 
                commuter authorities providing transportation 
                over rail property of Amtrak.
          [(E) 2 individuals selected by the holders of the 
        preferred stock of Amtrak.
  [(2) An individual appointed under paragraph (1)(C) of this 
subsection serves for 4 years or until the individual's 
successor is appointed and qualified. Not more than 2 
individuals appointed under paragraph (1)(C) may be members of 
the same political party.
  [(3) An individual selected under paragraph (1)(D) of this 
subsection serves for 2 years or until the individual's 
successor is selected.
  [(4) An individual selected under paragraph (1)(E) of this 
subsection serves for one year or until the individual's 
successor is selected.
  [(5) The President of Amtrak serves as Chairman of the board.
  [(6) The Secretary may be represented at a meeting of the 
board only by the Deputy Secretary of Transportation, the 
Administrator of the Federal Railroad Administration, or the 
General Counsel of the Department of Transportation.
  [(b) Cumulative Voting.--The articles of incorporation of 
Amtrak shall provide for cumulative voting for all 
stockholders.
  [(c) Conflicts of Interest.--When serving on the board, a 
director appointed by the President of the United States may 
not have--
          [(1) a financial or employment relationship with a 
        rail carrier; and
          [(2) a significant financial relationship or an 
        employment relationship with a person competing with 
        Amtrak in providing passenger transportation.
  [(d) Pay and Expenses.--Each director not employed by the 
United States Government is entitled to $300 a day when 
performing board duties and powers. Each director is entitled 
to reimbursement for necessary travel, reasonable secretarial 
and professional staff support, and subsistence expenses 
incurred in attending board meetings.
  [(e) Vacancies.--A vacancy on the board is filled in the same 
way as the original selection, except that an individual 
appointed by the President of the United States under 
subsection (a)(1)(C) of this section to fill a vacancy 
occurring before the end of the term for which the predecessor 
of that individual was appointed is appointed for the remainder 
of that term. A vacancy required to be filled by appointment 
under subsection (a)(1)(C) must be filled not later than 120 
days after the vacancy occurs.
  [(f) Bylaws.--The board may adopt and amend bylaws governing 
the operation of Amtrak. The bylaws shall be consistent with 
this part and the articles of incorporation.]

Sec. 24302. Board of Directors

  (a) Emergency Reform Board.--
          (1) Establishment and duties.--The Emergency Reform 
        Board described in paragraph (2) shall assume the 
        responsibilities of the Board of Directors of Amtrak 60 
        days after the date of the enactment of the Amtrak 
        Reform and Privatization Act of 1995, or as soon 
        thereafter as such Board is sufficiently constituted to 
        function as a board of directors under applicable 
        corporate law. Such Board shall adopt new bylaws, 
        including procedures for the selection of members of 
        the Board of Directors under subsection (c) which 
        provide for employee representation.
          (2) Membership.--(A) The Emergency Reform Board shall 
        consist of 7 members appointed by the President, by and 
        with the advice and consent of the Senate.
          (B) In selecting individuals for nominations for 
        appointments to the Emergency Reform Board, the 
        President should consult with--
                  (i) the Speaker of the House of 
                Representatives concerning the appointment of 
                two members;
                  (ii) the minority leader of the House of 
                Representatives concerning the appointment of 
                one member;
                  (iii) the majority leader of the Senate 
                concerning the appointment of two members; and
                  (iv) the minority leader of the Senate 
                concerning the appointment of one member.
          (C) Appointments under subparagraph (A) shall be made 
        from among individuals who--
                  (i) have technical qualification, 
                professional standing, and demonstrated 
                expertise in the fields of intercity common 
                carrier transportation and corporate 
                management; and
                  (ii) are not employees of Amtrak, employees 
                of the United States, or representatives of 
                rail labor or rail management.
  (b) Director General.--If the Emergency Reform Board 
described in subsection (a)(2) is not sufficiently constituted 
to function as a board of directors under applicable corporate 
law before the expiration of 60 days after the date of the 
enactment of the Amtrak Reform and Privatization Act of 1995, 
the special court established under section 209(b) of the 
Regional Rail Reorganization Act of 1973 (45 U.S.C. 719(b)) 
shall appoint a Director General, who shall exercise all powers 
of the Board of Directors of Amtrak until the Emergency Reform 
Board assumes such powers.
  (c) Board of Directors.--Four years after the establishment 
of the Emergency Reform Board under subsection (a), a Board of 
Directors shall be selected pursuant to bylaws adopted by the 
Emergency Reform Board, and the Emergency Reform Board shall be 
dissolved.

Sec. 24303. Officers

  (a) * * *
  (b) Pay.--The board may fix the pay of the officers of 
Amtrak. An officer may not be paid more than the general level 
of pay for officers of rail carriers with comparable 
responsibility. The preceding sentence shall cease to be 
effective on the expiration of a fiscal year during which no 
Federal operating assistance is provided to Amtrak.
          * * * * * * *

[Sec. 24304. Capitalization

  [(a) Stock.--Amtrak may have outstanding one issue of common 
stock and one issue of preferred stock. Each type of stock is 
eligible for a dividend. The articles of incorporation of 
Amtrak shall provide that--
          [(1) each type of stock must be fully paid and 
        nonassessable;
          [(2) common stock has a par value of $10 a share; and
          [(3) preferred stock has a par value of $100 a share.
  [(b) Limitations on Ownership and Voting.--(1) A rail carrier 
or person controlling a rail carrier--
          [(A) may not hold preferred stock of Amtrak; and
          [(B) may vote not more than one-third of the total 
        number of shares of outstanding common stock of Amtrak.
  [(2) Additional common stock owned by a rail carrier or 
person controlling a rail carrier is deemed to be not 
outstanding for voting and quorum purposes.
  [(c) Preferred Stock Dividends and Liquidation Preferences.--
The articles of incorporation of Amtrak shall provide that--
          [(1) its preferred stock has a cumulative dividend of 
        at least 6 percent a year;
          [(2) if a dividend on the preferred stock is not 
        declared and paid or set aside for payment, the 
        deficiency shall be declared and paid or set aside for 
        payment before a dividend or other distribution is made 
        on its common stock;
          [(3) the preferred stock has a liquidation preference 
        over the common stock entitling holders of preferred 
        stock to receive a liquidation payment of at least par 
        value plus all accrued unpaid dividends before a 
        liquidation payment is made to holders of common stock; 
        and
          [(4) the preferred stock may be converted to common 
        stock.
  [(d) Issuance of Preferred Stock to Secretary.--(1) Not later 
than 30 days after the close of each fiscal quarter, Amtrak 
shall issue to the Secretary of Transportation preferred stock 
equal, to the nearest whole share, to the amount paid to Amtrak 
under section 24104(d) of this title during the quarter.
  [(2) Preferred stock issued under this subsection or section 
304(c)(1) of the Rail Passenger Service Act is deemed to be 
issued on the date Amtrak receives the amounts for which the 
stock is issued.
  [(3) An amendment to the articles of incorporation of Amtrak 
is not required for issuing preferred stock under this 
subsection.
  [(e) Taxes and Fees on Preferred Stock.--A tax or fee applies 
to preferred stock issued under this section only if 
specifically prescribed by Congress.
  [(f) Nonvoting Certificates of Indebtedness.--Amtrak may 
issue nonvoting certificates of indebtedness, except that an 
obligation with a liquidation interest superior to preferred 
stock issued to the Secretary or secured by a lien on property 
of Amtrak may be incurred when preferred stock issued to the 
Secretary is outstanding only if the Secretary consents.
  [(g) Inspection Rights.--Stockholders of Amtrak have the 
rights of inspecting and copying set forth in section 45(b) of 
the District of Columbia Business Corporation Act (D.C. Code 
Sec. 29-345(b)) regardless of the amount of stock they hold.]

Sec. 24304. Employee stock ownership plans

  In issuing stock pursuant to applicable corporate law, Amtrak 
is encouraged to include employee stock ownership plans.

Sec. 24305. General authority

  (a) Acquisition and Operation of Equipment and Facilities.--
(1) * * *
          * * * * * * *
  (3)(A) Except as provided in subsection (d)(2), Amtrak may 
enter into a contract with a motor carrier of passengers for 
the intercity transportation of passengers by motor carrier 
over regular routes only--
          (i) if the motor carrier is not a public recipient of 
        governmental assistance, as such term is defined in 
        section 10922(d)(1)(F)(i) of this title, other than a 
        recipient of funds under section 18 of the Federal 
        Transit Act;
          (ii) for passengers who have had prior movement by 
        rail or will have subsequent movement by rail; and
          (iii) if the buses, when used in the provision of 
        such transportation, are used exclusively for the 
        transportation of passengers described in clause (ii).
  (B) Subparagraph (A) shall not apply to transportation funded 
predominantly by a State or local government, or to ticket 
selling agreements.
  [(b) Maintenance and Rehabilitation.--Amtrak may maintain and 
rehabilitate rail passenger equipment and shall maintain a 
regional maintenance plan that includes--
          [(1) a review panel at the principal office of Amtrak 
        consisting of members the President of Amtrak 
        designates;
          [(2) a systemwide inventory of spare equipment parts 
        in each operational region;
          [(3) enough maintenance employees for cars and 
        locomotives in each region;
          [(4) a systematic preventive maintenance program;
          [(5) periodic evaluations of maintenance costs, time 
        lags, and parts shortages and corrective actions; and
          [(6) other elements or activities Amtrak considers 
        appropriate.]
  (b) Below-Cost Competition.--(1) Amtrak shall not submit any 
bid for the performance of services under a contract for an 
amount less than the cost to Amtrak of performing such 
services, with respect to any activity other than the provision 
of intercity rail passenger transportation, commuter rail 
passenger transportation, or mail or express transportation. 
For purposes of this subsection, the cost to Amtrak of 
performing services shall be determined using generally 
accepted accounting principles for contracting.
  (2) Any aggrieved individual may commence a civil action for 
violation of paragraph (1). The United States district courts 
shall have jurisdiction, without regard to the amount in 
controversy or the citizenship of the parties, to enforce 
paragraph (1). The court, in issuing any final order in any 
action brought pursuant to this paragraph, may award bid 
preparation costs, anticipated profits, and litigation costs, 
including reasonable attorney and expert witness fees, to any 
prevailing or substantially prevailing party. The court may, if 
a temporary restraining order or preliminary injunction is 
sought, require the filing of a bond or equivalent security in 
accordance with the Federal Rules of Civil Procedure.
  (3) This subsection shall cease to be effective on the 
expiration of a fiscal year during which no Federal operating 
assistance is provided to Amtrak.
          * * * * * * *
  (d) Through Routes and Joint Fares.--(1) * * *
          * * * * * * *
  (3) Congress encourages Amtrak and motor common carriers of 
passengers to use the authority conferred in section 11342(a) 
of this title for the purpose of providing improved service to 
the public and economy of operation.
          * * * * * * *

[Sec. 24306. Mail, express, and auto-ferry transportation

  [(a) Actions To Increase Revenues.--Amtrak shall take 
necessary action to increase its revenues from the 
transportation of mail and express. To increase its revenues, 
Amtrak may provide auto-ferry transportation as part of the 
basic passenger transportation authorized by this part. When 
requested by Amtrak, a department, agency, or instrumentality 
of the United States Government shall assist in carrying out 
this section.
  [(b) Authority of Others To Provide Auto-Ferry 
Transportation.--(1) A person primarily providing auto-ferry 
transportation and any other person not a rail carrier may 
provide auto-ferry transportation over any route under a 
certificate issued by the Interstate Commerce Commission if the 
Commission finds that the auto-ferry transportation--
          [(A) will not impair the ability of Amtrak to reduce 
        its losses or increase its revenues; and
          [(B) is required to meet the public demand.
  [(2) A rail carrier that has not made a contract with Amtrak 
to provide rail passenger transportation may provide auto-ferry 
transportation over its own rail lines.
  [(3) State and local laws and regulations that impair the 
provision of auto-ferry transportation do not apply to Amtrak 
or a rail carrier providing auto-ferry transportation. A rail 
carrier may not refuse to participate with Amtrak in providing 
auto-ferry transportation because a State or local law or 
regulation makes the transportation unlawful.]

Sec. 24307. Special transportation

  (a) * * *
  [(b) Actions To Ensure Access.--Amtrak may act to ensure 
access to intercity transportation for elderly or handicapped 
individuals on passenger trains operated by or for Amtrak. That 
action may include--
          [(1) acquiring special equipment;
          [(2) conducting special training for employees;
          [(3) designing and acquiring new equipment and 
        facilities;
          [(4) eliminating barriers in existing equipment and 
        facilities to comply with the highest standards of 
        design, construction, and alteration of property to 
        accommodate elderly and handicapped individuals; and
          [(5) providing special assistance to elderly and 
        handicapped individuals when getting on and off trains 
        and in terminal areas.]
  [(c)] (b) Employee Transportation.--(1) In this subsection, 
``rail carrier employee'' means--
          (A) * * *
          * * * * * * *

[Sec. 24310. Assistance for upgrading facilities

  [(a) To Correct Dangerous Conditions.--(1) Amtrak or the 
owner of a facility presenting a danger to the employees, 
passengers, or property of Amtrak may petition the Secretary of 
Transportation for assistance to the owner for relocation or 
other measures undertaken after December 31, 1977, to minimize 
or eliminate the danger.
  [(2) The Secretary shall recommend to Congress that Congress 
authorize amounts for the relocation or other measures if the 
Secretary decides that--
          [(A) the facility presents a danger of death or 
        serious injury to an employee or passenger or of 
        serious damage to that property; and
          [(B) the owner should not be expected to bear the 
        cost of that relocation or other measures.
  [(b) To Correct State and Local Violations.--(1) Amtrak, by 
itself or jointly with an owner or operator of a rail station 
Amtrak uses to provide rail passenger transportation, may apply 
to the Secretary for amounts that may be appropriated under 
paragraph (2) of this subsection to pay or reimburse expenses 
incurred after October 1, 1987, related to the station 
complying with an official notice received before October 1, 
1987, from a State or local authority stating that the station 
violates or allegedly violates the building, construction, 
fire, electric, sanitation, mechanical, or plumbing code.
  [(2) Not more than $1,000,000, may be appropriated to the 
Secretary to carry out paragraph (1) of this subsection. 
Amounts appropriated under this paragraph remain available 
until expended.]
          * * * * * * *

Sec. 24312. Labor standards

  (a) Prevailing Wages and Health and Safety Standards.--(1) 
Amtrak shall ensure that laborers and mechanics employed by 
contractors and subcontractors in construction work financed 
under an agreement made under section 24308(a)[, 24701(a), or 
24704(b)(2)] of this title will be paid wages not less than 
those prevailing on similar construction in the locality, as 
determined by the Secretary of Labor under the Act of March 3, 
1931 (known as the Davis-Bacon Act) (40 U.S.C. 276a--276a-5). 
Amtrak may make such an agreement only after being assured that 
required labor standards will be maintained on the construction 
work. Health and safety standards prescribed by the Secretary 
under section 107 of the Contract Work Hours and Safety 
Standards Act (40 U.S.C. 333) apply to all construction work 
performed under such an agreement, except for construction work 
performed by a rail carrier.
  [(b) Contracting Out.--(1) Amtrak may not contract out work 
normally performed by an employee in a bargaining unit covered 
by a contract between a labor organization and Amtrak or a rail 
carrier that provided intercity rail passenger transportation 
on October 30, 1970, if contracting out results in the layoff 
of an employee in the bargaining unit.
  [(2) This subsection does not apply to food and beverage 
services provided on trains of Amtrak.]
  (b) Contracting Out.--(1) When Amtrak contracts out work 
normally performed by an employee in a bargaining unit covered 
by a contract between a labor organization and Amtrak, Amtrak 
is encouraged to use other rail carriers for performing such 
work.
  (2)(A) Amtrak may not enter into a contract for the operation 
of trains with any entity other than a State or State 
authority.
  (B) If Amtrak enters into a contract as described in 
subparagraph (A)--
          (i) such contract shall not relieve Amtrak of any 
        obligation in connection with the use of facilities of 
        another entity for the operation covered by such 
        contract; and
          (ii) such operation shall be subject to any operating 
        or safety restrictions and conditions required by the 
        agreement providing for the use of such facilities.
  (C) This paragraph shall not restrict Amtrak's authority to 
enter into contracts for access to or use of tracks or 
facilities for the operation of trains.

[Sec. 24313. Rail safety system program

  [In consultation with rail labor organizations, Amtrak shall 
maintain a rail safety system program for employees working on 
property owned by Amtrak. The program shall be a model for 
other rail carriers to use in developing safety programs. The 
program shall include--
          [(1) periodic analyses of accident information, 
        including primary and secondary causes;
          [(2) periodic evaluations of the activities of the 
        program, particularly specific steps taken in response 
        to an accident;
          [(3) periodic reports on amounts spent for 
        occupational health and safety activities of the 
        program;
          [(4) periodic reports on reduced costs and personal 
        injuries because of accident prevention activities of 
        the program;
          [(5) periodic reports on direct accident costs, 
        including claims related to accidents; and
          [(6) reports and evaluations of other information 
        Amtrak considers appropriate.

[Sec. 24314. Demonstration of new technology

  [(a) Plan.--Amtrak shall develop a plan for demonstrating new 
technology in rail passenger equipment. The plan shall provide 
that new equipment that Amtrak procures that may increase train 
speed significantly over existing rail facilities shall be 
demonstrated, to the extent practicable, throughout the 
intercity rail passenger system.
  [(b) Report.--Not later than September 30, 1993, Amtrak shall 
submit to the Committee on Energy and Commerce of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report summarizing the plan 
developed under subsection (a) of this section, including its 
goals, locations for technology demonstration, and a schedule 
for carrying out the plan.
  [(c) Cooperation.--To make efforts to increase train speed 
throughout the intercity rail passenger system easier, Amtrak 
shall consult and cooperate, to the extent feasible, on request 
of eligible applicants proposing a technology demonstration 
authorized and financed under a law of the United States, with 
those applicants.]

Sec. 24315. Reports and audits

  [(a) Amtrak Annual Operations Report.--Not later than 
February 15 of each year, Amtrak shall submit to Congress a 
report that--
          [(1) for each route on which Amtrak provided 
        intercity rail passenger transportation during the 
        prior fiscal year, includes information on--
                  [(A) ridership;
                  [(B) passenger-miles;
                  [(C) the short-term avoidable profit or loss 
                for each passenger-mile;
                  [(D) the revenue-to-cost ratio;
                  [(E) revenues;
                  [(F) the United States Government subsidy;
                  [(G) the subsidy not provided by the United 
                States Government; and
                  [(H) on-time performance;
          [(2) provides relevant information about a decision 
        to pay an officer of Amtrak more than the rate for 
        level I of the Executive Schedule under section 5312 of 
        title 5; and
          [(3) specifies--
                  [(A) significant operational problems Amtrak 
                identifies; and
                  [(B) proposals by Amtrak to solve those 
                problems.]
  [(b)] (a) Amtrak General and Legislative Annual Report.--(1) 
Not later than February 15 of each year, Amtrak shall submit to 
the President and Congress a complete report of its operations, 
activities, and accomplishments, including a statement of 
revenues and expenditures for the prior fiscal year. The 
report--
          (A) shall include a discussion and accounting of 
        Amtrak's success in meeting the goal of section 
        24902(b) of this title; and
          (B) may include recommendations for legislation, 
        including the amount of financial assistance needed for 
        operations and capital improvements, the method of 
        computing the assistance, and the sources of the 
        assistance.
  (2) Amtrak may submit reports to the President and Congress 
at other times Amtrak considers desirable.
  [(c) Secretary's Report on Effectiveness of This Part.--The 
Secretary of Transportation shall prepare a report on the 
effectiveness of this part in meeting the requirements for a 
balanced transportation system in the United States. The report 
may include recommendations for legislation. The Secretary 
shall include this report as part of the annual report the 
Secretary submits under section 308(a) of this title.]
  [(d)] (b) Independent Audits.--An independent certified 
public accountant shall audit the financial statements of 
Amtrak each year. The audit shall be carried out at the place 
at which the financial statements normally are kept and under 
generally accepted auditing standards. A report of the audit 
shall be included in the report required by subsection (a) of 
this section.
  [(e)] (c) Comptroller General Audits.--The Comptroller 
General may conduct financial or performance audits of the 
activities and transactions of Amtrak. Each audit shall be 
conducted at the place at which the Comptroller General decides 
and under generally accepted management principles. The 
Comptroller General may prescribe regulations governing the 
audit.
  [(f)] (d) Availability of Records and Property of Amtrak and 
Rail Carriers.--Amtrak and, if required by the Comptroller 
General, a rail carrier with which Amtrak has made a contract 
for intercity rail passenger transportation shall make 
available for an audit under subsection [(d) or (e)] (b) or (c) 
of this section all records and property of, or used by, Amtrak 
or the carrier that are necessary for the audit. Amtrak and the 
carrier shall provide facilities for verifying transactions 
with the balances or securities held by depositories, fiscal 
agents, and custodians. Amtrak and the carrier may keep all 
reports and property.
  [(g)] (e) Comptroller General's Report to Congress.--The 
Comptroller General shall submit to Congress a report on each 
audit, giving comments and information necessary to inform 
Congress on the financial operations and condition of Amtrak 
and recommendations related to those operations and conditions. 
The report also shall specify any financial transaction or 
undertaking the Comptroller General considers is carried out 
without authority of law. When the Comptroller General submits 
a report to Congress, the Comptroller General shall submit a 
copy of it to the President, the Secretary, and Amtrak at the 
same time.
  (f) Access to Records and Accounts.--A State shall have 
access to Amtrak's records, accounts, and other necessary 
documents used to determine the amount of any payment to Amtrak 
required of the State.
          * * * * * * *

                     [CHAPTER 245--AMTRAK COMMUTER

[Sec.
[24501.  Status and applicable laws.
[24502.  Board of directors.
[24503.  Officers.
[24504.  General authority.
[24505.  Commuter rail passenger transportation.
[24506.  Certain duties and powers unaffected.

[Sec. 24501. Status and applicable laws

  [(a) Status.--Amtrak Commuter--
          [(1) is a wholly-owned subsidiary of Amtrak;
          [(2) provides by contract commuter rail passenger 
        transportation for a commuter authority with which 
        Amtrak Commuter makes a contract to provide the 
        transportation under this chapter;
          [(3) has no common carrier obligations to provide 
        rail passenger or rail freight transportation; and
          [(4) is not a department, agency, or instrumentality 
        of the United States Government.
  [(b) Application of Safety and Employee Relations Laws and 
Regulations.--Chapter 105 of this title does not apply to 
Amtrak Commuter. However, 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 subchapter I of 
chapter 105 apply to Amtrak Commuter.
  [(c) Application of Certain Additional Laws.--This part and, 
to the extent consistent with this part, the District of 
Columbia Business Corporation Act (D.C. Code Sec. 29-301 et 
seq.) apply to Amtrak Commuter.
  [(d) Nonapplication of Rate, Route, and Service Laws.--A 
State or other law related to rates, routes, or service in 
connection with rail passenger transportation does not apply to 
Amtrak Commuter.
  [(e) Preemption Related to Employee Work Requirements.--A 
State may not adopt or continue in force a law, rule, 
regulation, order, or standard requiring Amtrak Commuter to 
employ a specified number of individuals to perform a 
particular task, function, or operation.
  [(f) Exemption From Additional Taxes.--(1) In this 
subsection--
          [(A) ``additional tax'' means a tax or fee--
                  [(i) on the acquisition, improvement, 
                ownership, or operation of personal property by 
                Amtrak Commuter; and
                  [(ii) on real property, except a tax or fee 
                on the acquisition of real property or on the 
                value of real property not attributable to 
                improvements made, or the operation of those 
                improvements, by Amtrak Commuter.
          [(B) ``Amtrak Commuter'' includes a rail carrier 
        subsidiary of Amtrak Commuter and a lessor or lessee of 
        Amtrak Commuter or one of its rail carrier 
        subsidiaries.
  [(2) Amtrak Commuter is not required to pay an additional tax 
because of an expenditure to acquire or improve real property, 
equipment, a facility, or right-of-way material or structures 
used to provide rail passenger transportation, even if that use 
is indirect.
  [(g) Tax Exemption for Certain Commuter Authorities.--A 
commuter authority with which Amtrak Commuter could have made a 
contract to provide commuter rail passenger transportation 
under this chapter but which decided to provide its own rail 
passenger transportation beginning on January 1, 1983, is 
exempt, effective October 1, 1981, from paying a tax or fee to 
the same extent Amtrak is exempt.
  [(h) Nonapplication of Agreements for Financial Support and 
Trackage Rights.--An agreement under which financial support 
was provided on January 2, 1974, to a commuter authority to 
continue rail passenger transportation does not apply to Amtrak 
Commuter. However, Amtrak and the Consolidated Rail Corporation 
retain appropriate trackage rights over rail property owned or 
leased by the authority. Compensation for the rights shall be 
reasonable.

[Sec. 24502. Board of directors

  [(a) Composition.--The board of directors of Amtrak Commuter 
is composed of the following directors:
          [(1) the President of Amtrak Commuter.
          [(2) one individual from the board of directors of 
        Amtrak selected as a representative of commuter 
        authorities that make contracts with Amtrak Commuter 
        for the operation of commuter rail passenger 
        transportation.
          [(3) 2 individuals selected by the board of directors 
        of Amtrak.
          [(4) 2 individuals selected by commuter authorities 
        for which Amtrak Commuter provides commuter rail 
        transportation under this chapter. However, only one 
        individual shall be selected under this clause if 
        Amtrak Commuter provides the transportation for only 
        one authority.
  [(b) Terms.--Except as otherwise provided in this section, 
individuals shall serve for 2 years.
  [(c) Chairman.--The board shall select annually one of its 
members to serve as Chairman.
  [(d) Pay and Expenses.--Each director not employed by the 
United States Government is entitled to $300 a day when 
performing board duties and powers. Each director is entitled 
to reimbursement for necessary travel, reasonable secretarial 
and professional staff support, and subsistence expenses 
incurred in attending board meetings.
  [(e) Vacancies.--A vacancy on the board is filled in the same 
way as the original selection.
  [(f) Bylaws.--The board may adopt and amend bylaws governing 
the operation of Amtrak Commuter. The bylaws shall be 
consistent with this part and the articles of incorporation.

[Sec. 24503. Officers

  [(a) Appointment and Terms.--Amtrak Commuter has a President 
and other officers that are named and appointed by the board of 
directors of Amtrak Commuter. An officer of Amtrak Commuter 
must be a citizen of the United States. Officers of Amtrak 
Commuter serve at the pleasure of the board.
  [(b) Pay.--The board may fix the pay of the officers of 
Amtrak Commuter. An officer may be paid not more than the 
general level of pay for officers of rail carriers with 
comparable responsibility.
  [(c) Conflicts of Interest.--When employed by Amtrak 
Commuter, an officer may not have a financial or employment 
relationship with a rail carrier, except that holding 
securities issued by a rail carrier is not deemed to be a 
violation of this subsection if the officer holding the 
securities makes a complete public disclosure of the holdings 
and does not participate in any decision directly affecting the 
rail carrier.

[Sec. 24504. General authority

  [(a) General.--Amtrak Commuter may--
          [(1) acquire, operate, maintain, and make contracts 
        for the operation of equipment and facilities necessary 
        for commuter rail passenger transportation;
          [(2) conduct research and development related to the 
        mission of Amtrak Commuter; and
          [(3) issue common stock to Amtrak.
  [(b) Operation and Control.--To the extent consistent with 
this part and with an agreement with a commuter authority, 
Amtrak Commuter shall operate and control all aspects of the 
commuter rail passenger transportation it provides.
  [(c) Agreement To Avoid Duplicating Employee Functions.--To 
the maximum extent practicable, Amtrak Commuter and Amtrak 
shall make an agreement that avoids duplicating employee 
functions and voluntarily establishes a consolidated work 
force.

[Sec. 24505. Commuter rail passenger transportation

  [(a) General Authority.--Amtrak Commuter--
          [(1) shall provide commuter rail passenger 
        transportation that the Consolidated Rail Corporation 
        was obligated to provide on August 13, 1981, under 
        section 303(b)(2) or 304(e) of the Regional Rail 
        Reorganization Act of 1973 (45 U.S.C. 743(b)(2), 
        744(e)); and
          [(2) may provide other commuter rail passenger 
        transportation if the commuter authority for which the 
        transportation will be provided offers to provide a 
        commuter rail passenger transportation payment equal to 
        the--
                  [(A) avoidable costs of providing the 
                transportation (including the avoidable cost of 
                necessary capital improvements) and a 
                reasonable return on the value; less
                  [(B) revenue attributable to the 
                transportation.
  [(b) Offer Requirements.--(1) A commuter authority making an 
offer under subsection (a)(2) of this section shall--
          [(A) show that it has obtained access to all rail 
        property necessary to provide the additional commuter 
        rail passenger transportation; and
          [(B) make the offer according to regulations the Rail 
        Services Planning Office prescribes under section 
        10362(b)(5)(A) and (6) of this title.
  [(2) The Office may revise and update the regulations when 
necessary to carry out this section.
  [(c) Additional Employee Requirements.--Additional employee 
requirements shall be met through existing seniority 
arrangements agreed to in the implementing agreement negotiated 
under section 508 of the Rail Passenger Service Act.
  [(d) When Obligation Does Not Apply.--Amtrak Commuter is not 
obligated to provide commuter rail passenger transportation if 
a commuter authority provides the transportation or makes a 
contract under which a person, except Amtrak Commuter, will 
provide the transportation. When appropriate, Amtrak Commuter 
shall give the authority or person access to the rail property 
needed to provide the transportation.
  [(e) Discontinuance of Commuter Rail Passenger 
Transportation.--(1) Amtrak Commuter may discontinue commuter 
rail passenger transportation provided under this section on 60 
days' notice if--
          [(A) a commuter authority does not offer a commuter 
        rail passenger transportation payment under subsection 
        (a)(2) of this section; or
          [(B) a payment is not paid when due.
  [(2) The Office shall prescribe regulations on the necessary 
contents of the notice required under this subsection.
  [(f) Compensation for Right-of-Way Related Costs.--
Compensation by a commuter authority to Amtrak or Amtrak 
Commuter for right-of-way related costs for transportation over 
property Amtrak owns shall be determined under a method the 
Interstate Commerce Commission establishes under section 1163 
of the Omnibus Budget Reconciliation Act of 1981 (45 U.S.C. 
1111) or to which the parties agree.
  [(g) Application of Other Laws.--All laws related to commuter 
rail passenger transportation apply to a commuter authority 
providing commuter rail passenger transportation under this 
section.

[Sec. 24506. Certain duties and powers unaffected

  [This chapter does not affect a duty or power of the 
Consolidated Rail Corporation or its successor and any bi-state 
commuter authority under an agreement, lease, or contract under 
which property was conveyed to the Corporation under the 
Regional Rail Reorganization Act of 1973 (45 U.S.C. 701 et 
seq.).]

                    CHAPTER 247--AMTRAK ROUTE SYSTEM

Sec.
[24701.  Operation of basic system.
[24702.  Improving rail passenger transportation.
[24703.  Route and service criteria.
[24704.  Transportation requested by States, authorities, and other 
          persons.
[24705.  Additional qualifying routes.]
     * * * * * * *
[24707.  Cost and performance review.
[24708.  Special commuter transportation.]
          * * * * * * *

[Sec. 24701. Operation of basic system

  [(a) By Amtrak.--Amtrak shall provide intercity rail 
passenger transportation within the basic system unless the 
transportation is provided by--
          [(1) a rail carrier with which Amtrak did not make a 
        contract under section 401(a) of the Rail Passenger 
        Service Act; or
          [(2) a regional transportation authority under 
        contract with Amtrak.
  [(b) By Others With Consent of Amtrak.--Except as provided in 
section 24306 of this title, a person may provide intercity 
rail passenger transportation over a route over which Amtrak 
provides scheduled intercity rail passenger transportation 
under a contract under section 401(a) of the Act only with the 
consent of Amtrak.

[Sec. 24702. Improving rail passenger transportation

  [(a) Plan To Improve Transportation.--Amtrak shall continue 
to carry out its plan, submitted under section 305(f) of the 
Rail Passenger Service Act, to improve intercity rail passenger 
transportation provided in the basic system. The plan shall 
include--
          [(1) a zero-based assessment of all operating 
        practices;
          [(2) changes to achieve the minimum use of employees 
        consistent with safe operations and adequate 
        transportation;
          [(3) a systematic program for achieving the greatest 
        ratio of train size to passenger demand;
          [(4) a systematic program to reduce trip time in the 
        basic system;
          [(5) establishing training programs to achieve on-
        time departures;
          [(6) establishing priorities for passenger trains 
        over freight trains;
          [(7) adjusting the buying and pricing of food and 
        beverages so that food and beverage services ultimately 
        will be profitable;
          [(8) cooperative marketing opportunities between 
        Amtrak and governmental authorities that have intercity 
        rail passenger transportation; and
          [(9) cooperative marketing campaigns sponsored by 
        Amtrak and the Secretary of Energy, the Administrator 
        of the Federal Highway Administration, and the 
        Administrator of the Environmental Protection Agency.
  [(b) State and Local Speed Restrictions.--Amtrak shall--
          [(1) identify any speed restriction a State or local 
        government imposes on a train of Amtrak that Amtrak 
        decides impedes Amtrak from achieving high-speed 
        intercity rail passenger transportation; and
          [(2) consult with that State or local government--
                  [(A) to evaluate alternatives to the speed 
                restriction, considering the local safety 
                hazard that is the basis for the restriction; 
                and
                  [(B) to consider modifying or eliminating the 
                restriction to allow safe operation at higher 
                speeds.
  [(c) High-Speed Rail Transportation Development.--On 
reasonable request by a State, political subdivision of a 
State, regional partnership, private sector representative, or 
other qualified person, Amtrak shall consult and cooperate to 
the extent feasible with that person to assist the efforts of 
that person to achieve high-speed rail transportation through 
equipment upgrades, grade-crossing safety improvements, and 
incremental infrastructure improvements on existing rail 
facilities that Amtrak uses (except the Northeast Corridor 
facilities). Not later than September 30, 1993, Amtrak shall 
submit to the Committee on Energy and Commerce of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on its efforts under this 
subsection.
  [(d) Routes Connecting Corridors.--Amtrak shall begin or 
improve appropriate rail passenger transportation on a route 
between corridors that Amtrak decides is justified because it 
will increase ridership on trains of Amtrak on the route and in 
the connecting corridors.

[Sec. 24703. Route and service criteria

  [(a) Route Discontinuances and Additions.--Except as provided 
in this part, route discontinuances and route additions shall 
comply with the route and service criteria.
  [(b) Congressional Review of Criteria Amendments.--(1) Amtrak 
shall submit to Congress a draft of an amendment to the route 
and service criteria when Amtrak decides an amendment is 
appropriate. The amendment is effective at the end of the first 
period of 120 calendar days of continuous session of Congress 
after it is submitted unless there is enacted into law during 
the period a joint resolution stating Congress does not approve 
the amendment.
  [(2) In this subsection--
          [(A) a continuous session of Congress is broken only 
        by an adjournment sine die; and
          [(B) the 120-day period does not include days on 
        which either House is not in session because of 
        adjournment of more than 3 days to a day certain.
  [(c) Nonapplication.--The route and service criteria do not 
apply to--
          [(1) increasing or, because of construction schedules 
        or other temporary disruptive facts or seasonal 
        fluctuations in ridership, decreasing the number of 
        trains on an existing route or a part of an existing 
        route or on a route on which additional trains are 
        being tested;
          [(2) carrying out the recommendations developed under 
        section 4 of the Amtrak Improvement Act of 1978;
          [(3) rerouting transportation between major 
        population centers on an existing route; or
          [(4)(A) modifying transportation operations under 
        section 24707(a) of this title; and
          [(B) modifying the route system or discontinuing 
        transportation under section 24707(b) of this title.

[Sec. 24704. Transportation requested by States, authorities, and other 
                    persons

  [(a) Applications To Begin or Keep Transportation.--(1) A 
State, a regional or local authority, or another person may 
apply to Amtrak and request Amtrak to provide rail passenger 
transportation or keep any part of a train, route, or service 
that Amtrak intends to discontinue under section 24706(a) or 
(b) or 24707(a) or (b) of this title. An application shall--
          [(A) assure Amtrak that the State, authority, or 
        person has sufficient resources to meet its share of 
        the cost of the transportation for the time the 
        transportation will be provided;
          [(B) contain a market analysis acceptable to Amtrak 
        to ensure that there is adequate demand for the 
        transportation; and
          [(C) commit the State, authority, or person to 
        provide at least 45 percent of the short term avoidable 
        loss of providing the transportation the first year the 
        transportation is provided and at least 65 percent of 
        the short term avoidable loss each of the following 
        years, and, except as provided in section 24104(a) of 
        this title, at least 50 percent of associated capital 
        costs each year the transportation is provided.
  [(2) An application submitted by more than one State shall be 
considered in the same way as an application submitted by one 
State, without it being necessary for each State to comply with 
paragraph (1) of this subsection.
  [(b) Actions on Applications.--(1) Amtrak shall review each 
application submitted under subsection (a) of this section to 
decide whether--
          [(A) the application complies with subsection (a); 
        and
          [(B) there is a reasonable probability that Amtrak 
        can provide the transportation from available 
        resources.
  [(2) Amtrak may make an agreement with an applicant under 
this section to begin or keep the transportation if Amtrak 
decides that the transportation can be provided with resources 
available to Amtrak. An agreement may be renewed for additional 
periods of not more than 2 years each.
  [(c) Selecting Among Competing Applications.--If more than 
one application is made for transportation consistent with the 
requirements of subsection (a) of this section, but all the 
transportation applied for cannot be provided with the 
available resources of Amtrak, the board of directors of Amtrak 
shall select the transportation that best serves the public 
interest and can be provided with the available resources of 
Amtrak.
  [(d) Fare Increases.--(1) Before increasing a fare applicable 
to transportation provided under subsection (b)(2) of this 
section by more than 5 percent during a 6-month period, Amtrak 
shall consult with officials of each State affected by the 
increase and explain why the increase is necessary.
  [(2) Except as provided in paragraph (3) of this subsection, 
a fare increase described in paragraph (1) of this subsection 
takes effect 90 days after Amtrak first consults with the 
affected States. However, not later than 30 days after the 
first consultation, a State may submit proposals to Amtrak for 
reducing costs and increasing revenues of the transportation. 
Amtrak shall consider the proposals in deciding how much of the 
proposed increase shall go into effect.
  [(3)(A) Amtrak may increase a fare without regard to the 
restrictions of this subsection during--
          [(i) the first month of a fiscal year if the 
        authorization of appropriations and the appropriations 
        for Amtrak are not enacted at least 90 days before the 
        beginning of the fiscal year; or
          [(ii) the 30 days following enactment of an 
        appropriation for Amtrak or a rescission of an 
        appropriation.
  [(B) Amtrak shall notify each affected State of an increase 
under subparagraph (A) of this paragraph as soon as possible 
after Amtrak decides to increase a fare.
  [(e) Determining Loss, Costs, and Revenues.--After consulting 
with officials of each State contributing to providing 
transportation under subsection (b)(2) of this section, the 
board shall establish the basis for determining short term 
avoidable loss and associated capital costs of, and revenues 
from, the transportation. Amtrak shall give State officials the 
basis for determining the loss, cost, and revenue for each 
route on which transportation is provided under subsection 
(b)(2).
  [(f) Availability of Amounts.--Amounts provided by Amtrak 
under an agreement with an applicant under subsection (b)(2) of 
this section that are allocated for associated capital costs 
remain available until expended.
  [(g) Advertising and Promotion.--At least 2 percent but not 
more than 5 percent of the revenue generated by transportation 
provided under subsection (b)(2) of this section shall be used 
for advertising and promotion at the local level.

[Sec. 24705. Additional qualifying routes

  [(a) Routes Recommended for Discontinuance.--(1) To maintain 
a national intercity rail passenger system in the United States 
and if a reduction in operating expenses can be achieved, 
Amtrak shall provide rail passenger transportation over each 
route the Secretary of Transportation recommended be 
discontinued under section 4 of the Amtrak Improvement Act of 
1978 and may restructure a route to serve a major population 
center as an ending place or principal intermediate place. 
Transportation over a long distance route shall be maintained 
if the Amtrak estimate for the fiscal year ending September 30, 
1980, was that the short term avoidable loss for each passenger 
mile on the route was not more than 7 cents. Transportation 
over a short distance route shall be maintained if the Amtrak 
estimate for the fiscal year ending September 30, 1980, was 
that the short term avoidable loss for each passenger mile on 
the route was not more than 9 cents.
  [(2) For all routes, Amtrak shall calculate short term 
avoidable loss for each passenger-mile based on consistently 
defined factors. Calculations shall be based on the most recent 
available statistics for a 90-day period, except that Amtrak 
may use historical information adjusted to reflect the most 
recent available statistics.
  [(b) Deferral of Secretary's Recommendations.--(1) To provide 
equivalent or improved transportation consistent with the goals 
of section 4(a) of the Act, Amtrak may defer carrying out a 
recommendation of the Secretary under section 4 of the Act that 
requires providing transportation over a rail line not used in 
intercity rail passenger transportation on May 24, 1979, 
requires using a new facility, or requires making a new labor 
agreement, until any necessary capital improvements are made in 
the line or facility or the agreement is made.
  [(2) Notwithstanding another law and the route and service 
criteria, during the period a decision of the Secretary under 
section 4 of the Act is deferred, Amtrak shall provide 
substitute transportation over existing routes recommended for 
restructuring and over other existing feasible routes. Except 
for transportation concentrating on commuter ridership over a 
short haul route, transportation provided under this paragraph 
may be provided only if the route complies with subsection (a) 
of this section, adjusted to reflect constant 1979 dollars.
  [(c) Short Haul Demonstration Routes.--Notwithstanding this 
part, Amtrak may provide short haul trains on additional routes 
totaling not more than 200 miles that link at least 2 major 
metropolitan areas--
          [(1) on a demonstration basis to establish the 
        feasibility and benefits of the transportation; and
          [(2) to the extent available resources allow.
  [(d) Routes Discontinued by Rail Carriers.--Amtrak may 
undertake to provide rail passenger transportation between 
places served by a rail carrier filing a notice of 
discontinuance under section 10908 or 10909 of this title.]

Sec. 24706. Discontinuance

  (a) Notice of Discontinuance.--(1) Except as provided in 
subsection (b) of this section, at least [90] 180 days before 
[a discontinuance under section 24704 or 24707(a) or (b) of 
this title] discontinuing service over a route, Amtrak shall 
give notice of the discontinuance in the way Amtrak decides 
will give a State, a regional or local authority, or another 
person the opportunity to agree to share or assume the cost of 
any part of the train, route, or service to be discontinued.
  (2) Notice of the discontinuance under [section 24704 or 
24707(a) or (b) of this title] paragraph (1) shall be posted in 
all stations served by the train to be discontinued at least 14 
days before the discontinuance.
  [(b) Discontinuance for Lack of Appropriations.--(1) Amtrak 
may discontinue service under section 24704 or 24707(a) or (b) 
of this title during--
          [(A) the first month of a fiscal year if the 
        authorization of appropriations and the appropriations 
        for Amtrak are not enacted at least 90 days before the 
        beginning of the fiscal year; and
          [(B) the 30 days following enactment of an 
        appropriation for Amtrak or a rescission of an 
        appropriation.
  [(2) Amtrak shall notify each affected State or regional or 
local transportation authority of a discontinuance under this 
subsection as soon as possible after Amtrak decides to 
discontinue the service.
  [(c) Employee Protective Arrangements.--(1) Amtrak or a rail 
carrier (including a terminal company) shall provide fair and 
equitable arrangements to protect the interests of employees of 
Amtrak or a rail carrier, as the case may be, affected by a 
discontinuance of intercity rail passenger service, including a 
discontinuance of service provided by a rail carrier under a 
facility or service agreement under section 24308(a) of this 
title under a modification or ending of the agreement or 
because Amtrak begins providing that service. Arrangements 
shall include provisions that may be necessary for--
          [(A) the preservation of rights, privileges, and 
        benefits (including continuation of pension rights and 
        benefits) under existing collective bargaining 
        agreements or otherwise;
          [(B) the continuation of collective bargaining 
        rights;
          [(C) the protection of individual employees against a 
        worsening of their positions related to employment;
          [(D) assurances of priority of reemployment of 
        employees whose employment is ended or who are laid 
        off; and
          [(E) paid training and retraining programs.
  [(2) With respect to Amtrak's obligations under this 
subsection and in an agreement to carry out this subsection 
involving only Amtrak and its employees, a discontinuance of 
intercity rail passenger service does not include an adjustment 
in frequency, or seasonal suspension of intercity rail 
passenger trains that causes a temporary suspension of service, 
unless the adjustment or suspension reduces passenger train 
operations on a particular route to fewer than 3 round trips a 
week at any time during a calendar year.
  [(3) Arrangements under this subsection shall provide 
benefits at least equal to benefits established under section 
11347 of this title.
  [(4) A contract under this chapter or section 24308(a) of 
this title shall specify the terms of protective arrangements.
  [(5) This subsection does not impose on Amtrak an obligation 
of a rail carrier related to a right, privilege, or benefit 
earned by an employee because of previous service performed for 
the carrier.
  [(6) This subsection does not apply to Amtrak Commuter.

[Sec. 24707. Cost and performance review

  [(a) Route Reviews.--Amtrak shall review annually each route 
in the basic system to decide if the route meets the long 
distance or short distance route criterion, as appropriate, 
under section 24705(a)(1) of this title, adjusted to reflect 
constant 1979 dollars. The review shall include an evaluation 
of the potential market demand for, and the cost of providing 
transportation on, a part of the route and an alternative 
route. Amtrak shall submit the results of the review to the 
House of Representatives, the Senate, and the Secretary of 
Transportation. If Amtrak decides that a route will not meet 
the criterion under section 24705(a)(1), as adjusted, Amtrak 
shall modify or discontinue rail passenger transportation 
operations on the route so that it will meet the criterion.
  [(b) Financial Requirements and Performance Standards.--Not 
later than 30 days after the beginning of each fiscal year, 
Amtrak shall evaluate the financial requirements for operating 
the basic system and the progress in achieving the system-wide 
performance standards prescribed under this part during the 
fiscal year. If Amtrak decides amounts available for the fiscal 
year are not enough to meet estimated operating costs, or if 
Amtrak estimates it cannot meet the performance standards, 
Amtrak shall act to reduce costs and improve performance. 
Action under this subsection shall be designed to continue the 
maximum level of transportation practicable, including--
          [(1) changing the frequency of transportation;
          [(2) increasing fares;
          [(3) reducing the cost of sleeper car and dining car 
        service on certain routes;
          [(4) increasing the passenger capacity of cars used 
        on certain routes; and
          [(5) modifying the route system or discontinuing 
        transportation over routes, considering short term 
        avoidable loss and the number of passengers served on 
        those routes.
  [(c) Cost Limitations and Revenue Goals.--Annual costs of 
Amtrak may not be more than amounts, including grants made 
under section 24104 of this title, contributions of States, 
regional and local authorities, and other persons, and 
revenues, available to Amtrak in the fiscal year. Amtrak 
annually shall set a goal of recovering an amount so that its 
revenues, including contributions, is at least 61 percent of 
its costs, except capital costs.
  [(d) Conductor Reports.--To assess the operational 
performance of trains, the President of Amtrak may direct the 
conductor on any train of Amtrak to report to Amtrak any 
inadequacy of train operation. The report shall be signed by 
the conductor, contain sufficient information to locate 
equipment or personnel failures, and be submitted promptly to 
Amtrak.

[Sec. 24708. Special commuter transportation

  [(a) Transportation To Be Continued if Criterion Met.--Amtrak 
shall continue to provide rail passenger transportation 
provided under section 403(d) of the Rail Passenger Service Act 
before October 1, 1981, if, after considering estimated fare 
increases and State and local contributions to the 
transportation, the transportation meets the short distance 
route criterion under section 24705(a)(1) of this title, as 
adjusted. Transportation continued under this section shall be 
financed consistent with the method of financing in effect on 
September 30, 1981. If the transportation is not estimated to 
meet the criterion, as adjusted, Amtrak may modify or 
discontinue the transportation so that the criterion is met.
  [(b) Transportation With Short-Term Avoidable Loss.--
Notwithstanding subsection (a) of this section, if after 
September 30, 1993, and before October 1, 1995, transportation 
provided under subsection (a) on a route during the prior 6 
months has a short-term avoidable loss (excluding the cost of 
providing passenger equipment needed to provide the 
transportation), Amtrak may choose to consider modifying or 
discontinuing the transportation. If Amtrak does make such a 
choice, Amtrak shall solicit public comment for at least 30 
days on alternatives to the modification or discontinuance. Not 
later than 60 days after the comment period ends, Amtrak may 
modify or discontinue the transportation so that there is no 
short-term avoidable loss under this section for providing the 
transportation on the route.]
          * * * * * * *

          CHAPTER 249--NORTHEAST CORRIDOR IMPROVEMENT PROGRAM

Sec.
24901.  Definitions.
     * * * * * * *
[24903.  Program master plan for Boston-New York main line.]
     * * * * * * *
[24907.  Note and mortgage.]
     * * * * * * *
[24909.  Authorization of appropriations.]
     * * * * * * *

Sec. 24902. Goals and requirements

  (a) Northeast Corridor Improvement Plan.--To the extent of 
amounts appropriated under section 24909 of this title, Amtrak 
shall carry out a Northeast Corridor improvement program to 
achieve the following goals:
          (1) establish not later than September 30, 1985, 
        regularly scheduled and dependable intercity rail 
        passenger transportation between--
                  (A) Boston, Massachusetts, and New York, New 
                York, in not more than 3 hours [and 40 
                minutes], including intermediate stops; and
                  (B) New York, New York, and the District of 
                Columbia, in not more than 2 hours and 40 
                minutes, including intermediate stops;
          * * * * * * *
  (f) Compatibility With Future Improvements and Production of 
Maximum Labor Benefits.--(1) Improvements under this section 
shall be compatible with future improvements in transportation 
and shall produce the maximum labor benefit from hiring 
individuals presently unemployed.
  (2) Amtrak shall design and construct the electrification 
system between Boston, Massachusetts, and New Haven, 
Connecticut, to accommodate the installation of a third 
mainline track between Davisville and Central Falls, Rhode 
Island, to be used for double-stack freight service to and from 
the Port of Davisville. Amtrak shall also make clearance 
improvements on the existing main line tracks to permit double 
stack service on this line, if funds to defray the costs of 
clearance improvements beyond Amtrak's own requirements for 
electrified passenger service are provided by public or private 
entities other than Amtrak. Wherever practicable, Amtrak shall 
use portal structures and realign existing tracks on undergrade 
and overgrade bridges to minimize the width of the right-of-way 
required to add the third track. Amtrak shall take such other 
steps as may be required to coordinate and facilitate design 
and construction work. The Secretary of Transportation may 
provide appropriate support to Amtrak for carrying out this 
paragraph.
          * * * * * * *

[Sec. 24903. Program master plan for Boston-New York main line

  [(a) Contents.--Not later than October 27, 1993, in 
consultation with Amtrak and the commuter and freight rail 
carriers operating over the Northeast Corridor main line 
between Boston, Massachusetts, and New York, New York, the 
Secretary of Transportation shall submit to the Committee on 
Energy and Commerce of the House of Representatives and the 
Committee on Commerce, Science, and Transportation of the 
Senate a program master plan for a coordinated program of 
improvements to that main line that will allow the 
establishment of regularly scheduled, safe, and dependable rail 
passenger transportation between Boston, Massachusetts, and New 
York, New York, in not more than 3 hours, including 
intermediate stops. The plan shall include--
          [(1) a description of the implications of the 
        improvements for the regional transportation system, 
        including the probable effects on general travel trends 
        and on travel volumes in other transportation modes and 
        the implications for State and local governments in 
        achieving compliance with the Clean Air Act (42 U.S.C. 
        7401 et seq.);
          [(2) an identification of the coordinated program of 
        improvements and the specific projects of that program, 
        including the estimated costs, schedules, timing, and 
        relationship of those projects with other projects;
          [(3) an identification of the financial 
        responsibility for the specific projects of that 
        program and the sources of the amounts for the 
        projects;
          [(4) an operating plan for the construction period of 
        the improvements that shows a coordinated approach to 
        scheduling intercity and commuter trains;
          [(5) an operating plan for the coordinated scheduling 
        of intercity and commuter trains for the period after 
        the program is completed, including priority 
        scheduling, dispatching, and occupancy of tracks for 
        appropriately frequent, regularly scheduled intercity 
        rail passenger transportation between Boston, 
        Massachusetts, and New York, New York, in not more than 
        3 hours, including intermediate stops;
          [(6) a comprehensive plan to control future 
        congestion in the Northeast Corridor attributable to 
        increases in intercity and commuter rail passenger 
        transportation;
          [(7) an assessment of long-term operational safety 
        needs and a list of specific projects designed to 
        maximize operational safety; and
          [(8) comments that Amtrak submits to the Secretary on 
        the plan.
  [(b) Submitting Modifications of Plan to Congress.--The 
Secretary shall submit to Congress any modification made to the 
program master plan and comments that Amtrak submits on the 
modification.]

Sec. 24904. General authority

  (a) * * *
  [(b) Compensatory Agreements.--Rail freight and commuter rail 
passenger transportation provided under subsection (a)(3) of 
this section shall be provided under compensatory agreements 
with the responsible carriers.]
  [(c)] (b) Compensation for [Transportation Over Certain 
Rights of Way and Facilities] Freight Transportation.--(1) An 
agreement under subsection (a)(6) of this section relating to 
rail freight transportation shall provide for reasonable 
reimbursement of costs but may not cross-subsidize intercity 
rail passenger, commuter rail passenger, and rail freight 
transportation.
  (2) If the parties to an agreement described in paragraph (1) 
do not agree, the Interstate Commerce Commission shall order 
that the transportation continue over facilities acquired under 
the Regional Rail Reorganization Act of 1973 (45 U.S.C. 701 et 
seq.) and the Railroad Revitalization and Regulatory Reform Act 
of 1976 (45 U.S.C. 801 et seq.) and shall determine 
compensation (without allowing cross-subsidization between 
intercity rail passenger and rail freight transportation) for 
the transportation not later than 120 days after the dispute is 
submitted. The Commission shall assign to a rail freight 
carrier obtaining transportation under this subsection the 
costs Amtrak incurs only for the benefit of the carrier, plus a 
proportionate share of all other costs of providing 
transportation under this paragraph incurred for the common 
benefit of Amtrak and the carrier. The proportionate share 
shall be based on relative measures of volume of car 
operations, tonnage, or other factors that reasonably reflect 
the relative use of rail property covered by this subsection.
  (3) This subsection does not prevent the parties from making 
an agreement under subsection (a)(6) of this section after the 
Commission makes a decision under this subsection.
  (c) Binding Arbitration for Commuter Disputes.--(1) If the 
parties to an agreement described in subsection (a)(6) relating 
to commuter rail passenger transportation cannot agree to the 
terms of such agreement, such parties shall submit the issues 
in dispute to binding arbitration.
  (2) The parties to a dispute described in paragraph (1) may 
agree to use the Interstate Commerce Commission to arbitrate 
such dispute, and if requested the Interstate Commerce 
Commission shall perform such function.
          * * * * * * *

[Sec. 24907. Note and mortgage

  [(a) General Authority.--To secure amounts expended by the 
United States Government to acquire and improve rail property 
designated under section 206(c)(1)(C) and (D) of the Regional 
Rail Reorganization Act of 1973 (45 U.S.C. 716(c)(1)(C) and 
(D)), the Secretary of Transportation may obtain a note of 
indebtedness from, and make a mortgage agreement with, Amtrak 
to establish a mortgage lien on the property for the 
Government. The note and mortgage may not supersede section 
24904 of this title.
  [(b) Exemptions From Laws and Regulations.--The note and 
agreement under subsection (a) of this section, and a 
transaction related to the note or agreement, are exempt from 
any United States, State, or local law or regulation that 
regulates securities or the issuance of securities. The note, 
agreement, or transaction under this section has the same 
immunities from other laws that section 601 of the Act (45 
U.S.C. 791) gives to transactions that comply with or carry out 
the final system plan. The transfer of rail property because of 
the note, agreement, or transaction has the same exemptions, 
privileges, and immunities that the Act (45 U.S.C. 701 et seq.) 
gives to a transfer ordered or approved by the special court 
under section 303(b) of the Act (45 U.S.C. 743(b)).
  [(c) Immunity From Liability and Indemnification.--Amtrak, 
its board of directors, and its individual directors are not 
liable because Amtrak has given or issued the note or agreement 
to the Government under subsection (a) of this section. 
Immunity granted under this subsection also applies to a 
transaction related to the note or agreement. The Government 
shall indemnify Amtrak, its board, and individual directors 
against costs and expenses actually and reasonably incurred in 
defending a civil action testing the validity of the note, 
agreement, or transaction.]
          * * * * * * *

[Sec. 24909. Authorization of appropriations

  [(a) General.--(1) Not more than $2,313,000,000 may be 
appropriated to the Secretary of Transportation to achieve the 
goals of section 24902(a)(1) of this title. From this amount, 
the following amounts shall be expended by Amtrak:
          [(A) at least $27,000,000 for equipment modification 
        and replacement that a State or a local or regional 
        transportation authority must bear because of the 
        electrification conversion system of the Northeast 
        Corridor under this chapter.
          [(B) $30,000,000--
                  [(i) to improve the main line track between 
                the Northeast Corridor main line and Atlantic 
                City, New Jersey, to ensure that the track, 
                consistent with a plan New Jersey developed in 
                consultation with Amtrak to provide rail 
                passenger transportation between the Northeast 
                Corridor main line and Atlantic City, New 
                Jersey, would be of sufficient quality to allow 
                safe rail passenger transportation at a minimum 
                of 79 miles an hour not later than September 
                30, 1985; and
                  [(ii) to promote rail passenger use of the 
                track.
          [(C) necessary amounts to--
                  [(i) develop Union Station in the District of 
                Columbia;
                  [(ii) install 189 track-miles, and renew 133 
                track-miles, of concrete ties with continuously 
                welded rail between the District of Columbia 
                and New York, New York;
                  [(iii) install reverse signaling between 
                Philadelphia, Pennsylvania, and Morrisville, 
                Pennsylvania, on numbers 2 and 3 track;
                  [(iv) restore ditch drainage in concrete tie 
                locations between the District of Columbia and 
                New York, New York;
                  [(v) undercut 83 track-miles between the 
                District of Columbia and New York, New York;
                  [(vi) rehabilitate bridges between the 
                District of Columbia and New York, New York 
                (including Hi line);
                  [(vii) develop a maintenance of way equipment 
                repair facility between the District of 
                Columbia and New York, New York, and build 
                maintenance of way bases at Philadelphia, 
                Pennsylvania, Sunnyside, New York, and Cedar 
                Hill, Connecticut;
                  [(viii) stabilize the roadbed between the 
                District of Columbia and New York, New York;
                  [(ix) automate the Bush River Drawbridge at 
                milepost 72.14;
                  [(x) improve the New York Service Facility to 
                develop rolling stock repair capability;
                  [(xi) install a rail car washer facility at 
                Philadelphia, Pennsylvania;
                  [(xii) restore storage tracks and buildings 
                at the Washington Service Facility;
                  [(xiii) install centralized traffic control 
                from Landlith, Delaware, to Philadelphia, 
                Pennsylvania;
                  [(xiv) improve track, including high speed 
                surfacing, ballast cleaning, and associated 
                equipment repair and material distribution;
                  [(xv) rehabilitate interlockings between the 
                District of Columbia and New York, New York;
                  [(xvi) paint the Connecticut River, Groton, 
                and Pelham Bay bridges;
                  [(xvii) provide additional catenary renewal 
                and power supply upgrading between the District 
                of Columbia and New York, New York;
                  [(xviii) rehabilitate structural, electrical, 
                and mechanical systems at the 30th Street 
                Station in Philadelphia, Pennsylvania;
                  [(xix) install evacuation and fire protection 
                facilities in tunnels in New York, New York;
                  [(xx) improve the communication and signal 
                systems between Wilmington, Delaware, and 
                Boston, Massachusetts, on the Northeast 
                Corridor main line, and between Philadelphia, 
                Pennsylvania, and Harrisburg, Pennsylvania, on 
                the Harrisburg Line;
                  [(xxi) improve the electric traction systems 
                between Wilmington, Delaware, and Newark, New 
                Jersey;
                  [(xxii) install baggage rack restraints, seat 
                back guards, and seat lock devices on 348 
                passenger cars operating in the Northeast 
                Corridor;
                  [(xxiii) install 44 event recorders and 10 
                electronic warning devices on locomotives 
                operating within the Northeast Corridor; and
                  [(xxiv) acquire cab signal test boxes and 
                install 9 wayside loop code transmitters for 
                use within the Northeast Corridor.
  [(2) The following additional amounts may be appropriated to 
the Secretary for expenditure by Amtrak:
          [(A) not more than $150,000,000 to achieve the goal 
        of section 24902(a)(3) of this title.
          [(B) not more than $120,000,000 to acquire interests 
        in property in the Northeast Corridor.
          [(C) not more than $650,000 to develop and use mobile 
        radio frequencies for passenger radio mobile telephone 
        service on high-speed rail passenger transportation.
          [(D) not more than $20,000,000 to acquire and improve 
        interests in rail property designated under section 
        206(c)(1)(D) of the Regional Rail Reorganization Act of 
        1973 (45 U.S.C. 716(c)(1)(D)).
          [(E) not more than $37,000,000 to carry out section 
        24902(a)(7) and (j) of this title.
  [(b) Emergency Maintenance.--Not more than $25,000,000 of the 
amount appropriated under the Act of February 28, 1975 (Public 
Law 94-6, 89 Stat. 11), may be used by Amtrak for emergency 
maintenance on rail property designated under section 
206(c)(1)(C) of the Regional Rail Reorganization Act of 1973 
(45 U.S.C. 716(c)(1)(C)).
  [(c) Priority in Using Certain Amounts.--Amounts appropriated 
under subsection (a)(2)(B) and (D) of this section shall be 
used first to repay, with interest, obligations guaranteed 
under section 602 of the Rail Passenger Service Act, if the 
proceeds of those obligations were used to pay the expenses of 
acquiring interests in property referred to in subsection 
(a)(2)(B) and (D).
  [(d) Prohibition on Subsidizing Commuter and Freight 
Operating Losses.--Amounts appropriated under this section may 
not be used to subsidize operating losses of commuter rail or 
rail freight transportation.
  [(e) Substituting and Deferring Certain Improvements.--(1) A 
project for which amounts are authorized under subsection 
(a)(1)(C) of this section is a part of the Northeast Corridor 
improvement program and is not a substitute for improvements 
specified in the document ``Corridor Master Plan II, NECIP 
Restructured Program'' of January, 1982. However, Amtrak may 
defer the project to carry out the improvement and 
rehabilitation for which amounts are authorized under 
subsection (a)(1)(B) of this section. The total cost of the 
project that Amtrak defers may not be substantially more than 
the amount Amtrak is required to expend or reserve under 
subsection (a)(1)(B).
  [(2) Section 24902 of this title is deemed not to be 
fulfilled until the projects under subsection (a)(1)(C) of this 
section are completed.
  [(f) Availability of Amounts.--Amounts appropriated under 
subsection (a)(1) and (2)(A) and (C)-(E) of this section remain 
available until expended.
  [(g) Authorizations Increased by Prior Year Deficiencies.--An 
amount greater than that authorized for a fiscal year may be 
appropriated to the extent that the amount appropriated for any 
prior fiscal year is less than the amount authorized for that 
year.]
          * * * * * * *

                         PART E--MISCELLANEOUS

                      CHAPTER 281--LAW ENFORCEMENT

Sec.
28101.  Rail police officers.
28102.  Limit on certain accident or incident liability.
28103.  Limitations on rail passenger transportation liability.
     * * * * * * *

Sec. 28103. Limitations on rail passenger transportation liability

  (a) Limitations.--(1) Notwithstanding any other statutory or 
common law or public policy, or the nature of the conduct 
giving rise to damages or liability, in a claim for personal 
injury, death, or damage to property arising from or in 
connection with the provision of rail passenger transportation, 
or from or in connection with any rail passenger transportation 
operations over or rail passenger transportation use of right-
of-way or facilities owned, leased, or maintained by any high-
speed railroad authority or operator, any commuter authority or 
operator, any rail carrier, or any State--
          (A) punitive damages shall not exceed the greater 
        of--
                  (i) $250,000; or
                  (ii) three times the amount of economic loss; 
                and
          (B) noneconomic damages awarded to any claimant for 
        each accident or incident shall not exceed the 
        claimant's economic loss, if any, by more than 
        $250,000.
  (2) If, in any case wherein death was caused, the law of the 
place where the act or omission complained of occurred 
provides, or has been construed to provide, for damages only 
punitive in nature, the claimant may recover in a claim limited 
by this subsection for economic and noneconomic damages and 
punitive damages, subject to paragraph (1)(A) and (B).
  (3) For purposes of this subsection--
          (A) the term ``actual damages'' means damages awarded 
        to pay for economic loss;
          (B) the term ``claim'' means a claim made, directly 
        or indirectly--
                  (i) against Amtrak, any high-speed railroad 
                authority or operator, any commuter authority 
                or operator, any rail carrier, or any State; or
                  (ii) against an officer, employee, affiliate 
                engaged in railroad operations, or agent, of 
                Amtrak, any high-speed railroad authority or 
                operator, any commuter authority or operator, 
                any rail carrier, or any State;
          (C) the term ``economic loss'' means any pecuniary 
        loss resulting from harm, including the loss of 
        earnings, medical expense loss, replacement services 
        loss, loss due to death, burial costs, loss of business 
        or employment opportunities, and any other form of 
        pecuniary loss allowed under applicable State law or 
        under paragraph (2) of this subsection;
          (D) the term ``noneconomic damages'' means damages 
        other than punitive damages or actual damages; and
          (E) the term ``punitive damages'' means damages 
        awarded against any person or entity to punish or deter 
        such person or entity, or others, from engaging in 
        similar behavior in the future.
  (b) Indemnification Obligations.--Obligations of any party, 
however arising, including obligations arising under leases or 
contracts or pursuant to orders of an administrative agency, to 
indemnify against damages or liability for personal injury, 
death, or damage to property described in subsection (a), 
incurred after the date of the enactment of the Amtrak Reform 
and Privatization Act of 1995, shall be enforceable, 
notwithstanding any other statutory or common law or public 
policy, or the nature of the conduct giving rise to the damages 
or liability.
  (c) Effect on Other Laws.--This section shall not affect the 
damages that may be recovered under the Act of April 27, 1908 
(45 U.S.C. 51 et seq.; popularly known as the ``Federal 
Employers' Liability Act'') or under any workers compensation 
act.
  (d) Definition.--For purposes of this section, the term 
``rail carrier'' includes a person providing excursion, scenic, 
or museum train service, and an owner or operator of a 
privately owned rail passenger car.
          * * * * * * *
                              ----------                              


                   NORTHEAST RAIL SERVICE ACT OF 1981

          * * * * * * *

                    PART 6--MISCELLANEOUS PROVISIONS

          * * * * * * *

                    [northeast corridor cost dispute

  [Sec. 1163. (a)(1) Within 120 days after the effective date 
of this subtitle, the Commission shall determine an appropriate 
costing methodology for compensation to Amtrak for the right-
of-way related costs for the operation of commuter rail 
passenger service over the Northeast Corridor and other 
properties owned by Amtrak, unless Conrail, Amtrak, and 
affected commuter authorities have otherwise agreed on such a 
methodology by that date. In making its determination, the 
Commission shall consider all relevant factors, including the 
standards of sections 204(d) and 304(c) of the Regional Rail 
Reorganization Act of 1973, section 701(a)(6) of the Railroad 
Revitalization and Regulatory Reform Act of 1976, and section 
401(a) of the Rail Passenger Service Act.
  [(2) The Commission, in making such a determination, shall 
consider all relevant factors, and shall not permit cross 
subsidization between intercity rail passenger service and 
commuter rail passenger service.
  [(b) Any determination by the Commission under this section 
shall be effective on the date of such determination, and any 
agreement of the parties under this section shall be effective 
on the date specified in such agreement. Any such determination 
or agreement shall not apply to any compensation paid to Amtrak 
prior to the date of such determination or the date so 
specified, as the case may be, for the right-of-way related 
costs described in subsection (a) of this section.
  [(c) Nothing in this section shall preclude parties from 
entering into an agreement, after the determination of the 
Commission or their initial agreement under this section, with 
respect to the right-of-way related costs described in 
subsection (a) of this section.
  [(d) Any determination by the Commission under this section 
shall be final and shall not be reviewable in any court.]
          * * * * * * *

                 intercity passenger service employees

  Sec. 1165. (a)(1) After January 1, 1983, Conrail shall be 
relieved of the responsibility to provide crews for intercity 
passenger service on the Northeast Corridor. [Amtrak, Amtrak 
Commuter, and Conrail] Amtrak and Conrail, and the employees 
with seniority in both freight and passenger service shall 
commence negotiations not later than 120 days after the date of 
the enactment for the right of such employees to move from one 
service to the other once each six-month period. [Such 
agreement shall ensure that Conrail, Amtrak, and Amtrak 
Commuter have the right to furlough one employee in the same 
class or craft for each employee who returns through the 
exercise of seniority rights. If agreement is not reached 
within 360 days, such matter shall be submitted to binding 
arbitration.]
  (2) Notwithstanding any other provision of law, agreement, or 
arrangement, with respect to employees in any class or craft in 
train or engine service, Conrail shall have the right to 
furlough one such employee for each employee in train or engine 
service who moves from Amtrak to Conrail in excess of the 
cumulative number of such employees who move from Conrail to 
Amtrak. Conrail shall not be obligated to fill any position 
governed by an agreement concerning crew consist, attrition 
arrangements, reserve boards, or reserve engine service 
positions, where an increase in positions is the result of the 
return of an Amtrak employee pursuant to an agreement entered 
into under paragraph (1). Conrail's collective bargaining 
agreements with organizations representing its train and engine 
service employees shall be deemed to have been amended to 
conform to this paragraph. Any dispute or controversy with 
respect to the interpretation, application, or enforcement of 
this paragraph which has not been resolved within 90 days after 
the date of the enactment of this paragraph may be submitted by 
either party to an adjustment board for a final and binding 
decision under section 3 of the Railway Labor Act.
          * * * * * * *
                              ----------                              


              SECTION 9101 OF TITLE 31, UNITED STATES CODE

Sec. 9101. Definitions

  In this chapter--
          (1) * * *
          (2) ``mixed-ownership Government corporation'' 
        means--
                  [(A) Amtrak.]
                  [(B)] (A) the Central Bank for Cooperatives.
                  [(C)] (B) the Federal Deposit Insurance 
                Corporation.
                  [(D)] (C) the Federal Home Loan Banks.
                  [(E)] (D) the Federal Intermediate Credit 
                Banks.
                  [(F)] (E) the Federal Land Banks.
                  [(G)] (F) the National Credit Union 
                Administration Central Liquidity Facility.
                  [(H)] (G) the Regional Banks for 
                Cooperatives.
                  [(I)] (H) the Rural Telephone Bank when the 
                ownership, control, and operation of the Bank 
                are converted under section 410(a) of the Rural 
                Electrification Act of 1936 (7 U.S.C. 950(a)).
                  [(J)] (I) the United States Railway 
                Association.
                  [(K)] (J) the Financing Corporation.
                  [(L)] (K) the Resolution Trust Corporation.
                  [(M)] (L) the Resolution Funding Corporation.
          * * * * * * *
                              ----------                              


            SECTION 8G OF THE INSPECTOR GENERAL ACT OF 1978

   requirements for federal entities and designated federal entities

  Sec. 8G. (a) Notwithstanding section 11 of this Act, as used 
in this section--
          (1) * * *
          (2) the term ``designated Federal entity'' means 
        [Amtrak,] the Appalachian Regional Commission, the 
        Board of Governors of the Federal Reserve System, the 
        Board for International Broadcasting, the Commodity 
        Futures Trading Commission, the Consumer Product Safety 
        Commission, the Corporation for Public Broadcasting, 
        the Equal Employment Opportunity Commission, the Farm 
        Credit Administration, the Federal Communications 
        Commission, the Federal Deposit Insurance Corporation, 
        the Federal Election Commission, the Federal Housing 
        Finance Board, the Federal Labor Relations Authority, 
        the Federal Maritime Commission, the Federal Trade 
        Commission, the Interstate Commerce Commission, the 
        Legal Services Corporation, the National Archives and 
        Records Administration, the National Credit Union 
        Administration, the National Endowment for the Arts, 
        the National Endowment for the Humanities, the National 
        Labor Relations Board, the National Science Foundation, 
        the Panama Canal Commission, the Peace Corps, the 
        Pension Benefit Guaranty Corporation, the Securities 
        and Exchange Commission, the Smithsonian Institution, 
        the Tennessee Valley Authority, the United States 
        International Trade Commission, and the United States 
        Postal Service;
          * * * * * * *
                              ----------                              


                       CONRAIL PRIVATIZATION ACT

          * * * * * * *

SEC. 4001. SHORT TITLE; TABLE OF CONTENTS OF SUBTITLE.

  (a) Short Title.--This subtitle may be cited as the ``Conrail 
Privatization Act''.
  (b) Table of Contents of Subtitle.--

                       Part 1--General Provisions

    Sec. 4001. Short title; table of contents of subtitle.
     * * * * * * *

                             Part 2--Conrail

                        subpart a--sale of conrail

     * * * * * * *

               subpart b--other matters relating to the sale

    Sec. 4021. Rail service obligations.
    Sec. 4022. Ownership limitations.
    [Sec. 4023. Board of Directors.]
     * * * * * * *

                    H5  deg.PART 2--CONRAIL

          * * * * * * *

             Subpart B--Other Matters Relating to the Sale

          * * * * * * *

[SEC. 4023. BOARD OF DIRECTORS.

  [The Board of Directors of the Corporation shall be comprised 
as follows:
          [(1) Except as provided in paragraph (3), with 
        respect to the period ending June 30, 1987, the board 
        shall remain as it exists on the date of the enactment 
        of this Act, with any vacancies being filled by 
        directors nominated and elected by the remainder of the 
        members of the board.
          [(2)(A) Except as provided in paragraph (3), with 
        respect to the period beginning July 1, 1987, the board 
        shall consist of--
                  [(i) 3 directors appointed by the Secretary 
                of Transportation;
                  [(ii) the Chief Executive Officer and the 
                Chief Operating Officer of the Corporation; and
                  [(iii) 8 directors appointed from among 
                persons knowledgeable in business affairs by 
                the special court trustees named under 
                subparagraph (C), in consultation with the 
                Secretary of Transportation and the Chairman of 
                the Board of Directors of the Corporation, and 
                recognizing the need for and importance of--
                          [(I) continuity in the direction of 
                        the Corporation's business and affairs;
                          [(II) preserving the value of the 
                        investment of the United States in the 
                        Corporation;
                          [(III) preserving essential rail 
                        service provided by the Corporation; 
                        and
                          [(IV) providing for the sale of the 
                        United States shares.
          [(B) The Secretary of Transportation and the special 
        court trustees may appoint directors under subparagraph 
        (A) from among existing directors of the Corporation.
          [(C)(i) If more than 50 percent of the interest of 
        the United States in the Corporation has not been sold 
        before June 1, 1987, the special court established 
        under section 209 of the Regional Rail Reorganization 
        Act of 1973 (45 U.S.C. 719) shall, on that date, name 3 
        trustees from among persons knowledgeable in business 
        affairs to make the appointments required by 
        subparagraph (A)(iii). The Corporation shall compensate 
        the special court trustees in an amount to be specified 
        by the special court, not to exceed the amount paid by 
        the Corporation to its directors for comparable 
        services.
          [(ii) No person shall be eligible to be appointed as 
        a special court trustee under this subparagraph who, at 
        any time during the 30 months immediately preceding 
        such appointment, was an officer, employee, or director 
        of the United States Railway Association, the 
        Corporation, or the Department of Transportation.
          [(3)(A) After the sale date, one director shall be 
        elected by the public shareholders of the Corporation 
        for each increment of 12.5 percent of the interest of 
        the United States in the Corporation that has been sold 
        through public offering.
          [(B) With respect to the period ending June 30, 
        1987--
                  [(i) the first director elected under this 
                paragraph shall replace the member of the board 
                who became a director most recently from 
                among--
                          [(I) directors appointed by the 
                        United States Railway Association, or 
                        elected under paragraph (1) to replace 
                        such a director, and
                          [(II) directors appointed by the 
                        Secretary of Transportation, or elected 
                        under paragraph (1) to replace such a 
                        director;
                  [(ii) the second director elected under this 
                paragraph shall replace the member of the Board 
                who became a director most recently from among 
                directors described in clause (i) (I) or (II), 
                whichever group the first director replaced 
                under this subparagraph was not a member of; 
                and
                  [(iii) subsequent directors elected under 
                this paragraph shall replace members 
                alternately from the groups described in clause 
                (i) (I) and (II).
          [(C) With respect to the period beginning July 1, 
        1987, directors elected under this paragraph shall 
        replace directors appointed by the special court 
        trustees under paragraph (2)(A)(iii), in the order 
        designated by the special court trustees in a list to 
        be issued at the time of such original appointments.
          [(D) With respect to the period beginning on the 
        first date more than 50 percent of the interest of the 
        United States in the Corporation has been sold through 
        public offering and ending when 100 percent of such 
        interest has been sold--
                  [(i) all remaining members of the board 
                referred to in paragraph (2)(A)(iii), and
                  [(ii) with respect to the period ending June 
                30, 1987, all remaining members of the board, 
                except 3 members appointed by the Secretary of 
                Transportation and the Chief Executive Officer 
                and the Chief Operating Officer of the 
                Corporation,
        shall be replaced by directors elected by the public 
        shareholders of the Corporation.
          [(E) After 100 percent of the interest of the United 
        States in the Corporation has been sold, any remaining 
        directors appointed by the Secretary of Transportation, 
        the United States Railway Association, or the special 
        court trustees referred to under paragraph (2)(A)(iii), 
        shall be replaced by directors elected by the public 
        shareholders of the Corporation.
          [(F) Nothing in this paragraph shall be construed to 
        prohibit any director referred to in this section from 
        being elected as a director by the public shareholders 
        of the Corporation.
          [(4)(A) No director appointed or elected under this 
        section shall be a special court trustee or an employee 
        of the United States, except as elected by the public 
        shareholders of the Corporation.
          [(B) No director appointed or elected under this 
        section shall be an employee of the Corporation, except 
        as provided in paragraph (2)(A)(ii) or as elected by 
        the public shareholders of the Corporation.]
          * * * * * * *
                              ----------                              


SECTION 511 OF THE RAILROAD REVITALIZATION AND REGULATORY REFORM ACT OF 
                                  1976

                        guarantee of obligations

  Sec. 511. (a) * * *
          * * * * * * *
  (i) Conditions of Guarantees.--(1) * * *
          * * * * * * *
  (4) The Secretary shall not require, as a condition for 
guarantee of an obligation under this section, that all 
preexisting secured obligations of an obligor be subordinated 
to the rights of the Secretary in the event of a default.
          * * * * * * *
                             MINORITY VIEWS

    The report includes a lengthy theoretical discussion of 
whether some of the provisions of the reported bill, which deal 
with employee protection for Amtrak employees, might lead to 
changes in employee protection established under other laws for 
employees of freight railroads and mass transit systems. The 
laws governing protection for employees of freight railroads 
and urban mass transit include the Interstate Commerce Act and 
the Federal Transit Act. These laws were not amended by the 
reported bill. We do not believe that discussion of these other 
laws, which were not before the Committee in this bill, should 
be given weight as legislative history affecting these laws.
    It should also be clearly understood that we do not agree 
with any implication in this report that labor protection for 
employees of freight railroad and mass transit systems should 
be reduced. In addition, we disagree with the report's 
criticisms of the Opinion of the Chief Counsel of the Federal 
Railroad Administration on these issues. The chief Counsel 
concluded that ``the labor protection accorded freight railroad 
employees * * * would not be affected by the passage of the 
(reported) bill.''
    A copy of the Chief Counsel's opinion follows:

                       Office of Chief Counsel,    
                     U.S. Department of Transportation,    
                           Federal Railroad Administration,
                                                    Washington, DC.
Date: September 20, 1995.
From S. Mark Lindsey, Chief Counsel.
To: Jolene Molitoris, Administrator.

Subject: Effect of repealing 49 U.S.C. Sec. 24706(c) and extinguishing 
        Appendix C-2 agreement.
                                 Issue
    The House Transportation and Infrastructure Committee's 
draft Amtrak reauthorization bill (``House bill'') authorizes 
Amtrak and its unions to negotiate new labor protection 
terms.\1\ The House bill also eliminates the existing labor 
protection afforded Amtrak employees under 49 U.S.C. 
Sec. 24706(c),\2\ and the Amtrak collective bargaining 
agreement implementing the section (referred to as Appendix C-
2).\3\ We have been asked whether the House bill affects the 
labor protection accorded freight railroad employees under the 
Interstate Commerce Act and the agreement (referred to as 
Appendix C-1) negotiated under Sec. 24706(c) to protect freight 
railroad employees in the event of a discontinuance of 
intercity rail passenger service.
    \1\ Whenever term ``labor protection'' appears, it refers to all 
forms of labor protection, including severance benefits.
    \2\ Unless otherwise indicated all section references will be to 
Title 49 of the United States Code.
    \3\ Section 24706(c) was originally 45 U.S.C. Sec. 565(a)-(c), 
before being recodified in 1994. It requires Amtrak, and any freight 
railroads furnishing services or facilities to Amtrak, to provide fair 
and equitable arrangements to protect the interests of employees whose 
jobs are abolished or adversely affected by a discontinuance of 
intercity rail passenger service, including a modification or 
termination of a facilities or service agreement between a freight 
railroad and Amtrak or by Amtrak's taking over operation of a passenger 
service from a freight railroad. Implementing labor protection 
contracts were required to be approved by the Secretary of Labor, who 
had to certify that the contracts afforded affected employees fair and 
equitable protection. 45 U.S.C. Sec. 565 (b) and (c). Acting pursuant 
to this statutory mandate, the Secretary in 1971 approved a labor 
protection arrangement for the freight railroad employees (Appendix C-1 
to the agreements between Amtrak and the freight railroads) and in 1973 
for Amtrak employees (Appendix C-2 to these agreements), that provide 
one year of salary protection for each year of prior service up to a 
maximum of 6 years' pay for affected employees. The Secretary's 1971 
certification was upheld as proper in Congress of Railway Unions v. 
Hodgson, 325 F.Supp. 68 (1971). Given the establishment of the 
necessary implementing labor protection agreements, Congress dropped as 
surplus, the approval procedure specified in 45 U.S.C. Sec. 565 when 
the section was recodified. In taking this action, Congress made clear 
that it did not intend to make any substantive change in the section 
even through the recodification makes minor changes in the statutory 
language. See Pub. L. No. 103-272, Sec. 6(a), 108 Stat. 1378; H.R. Rep. 
No. 180, 103d Cong., 1st Sess. 1-5 (1993).
---------------------------------------------------------------------------

                               Conclusion

    It is my opinion that the labor protection accorded freight 
railroad employees under the Interstate Commerce Act and 
Appendix C-1 would not be affected by the House bill for two 
reasons. First, while the House Bill would repeal 
Sec. 24706(c), and extinguish the Appendix C-2 agreement 
(pertaining to Amtrak employees), the House bill does not 
similarly extinguish the Appendix C-1 agreement (pertaining to 
freight railroad employees). The Appendix C-1 agreement 
therefore would remain in place unaltered. Second, the labor 
protection afforded freight railroad employees under Sec. 11347 
of the Interstate Commerce Act is required to be at least as 
protective as that established under Sec. 24706(c)--namely the 
Appendix C-1 terms. Significantly, while the House bill amends 
Sec. 11347, it leaves unaltered the language requiring the 
imposition of labor protection terms no less than those 
established under Sec. 24706(c).

                               Discussion

    Section 301 of the House bill provides for an expedited 
collective bargaining process between Amtrak and its unions to 
establish new labor protection arrangements to replace the 
terms contained in Sec. 24706(c) and the Appendix C-2 
agreement; existing labor protections for Amtrak employees 
would stay in place for a period of 254 days to allow the 
parties time to reach an agreement. Effective 254 days after 
date of enactment, Sec. 24706(c) would be repealed, and any 
provision in any pre-Act Amtrak labor contract relating to 
labor protection, including all provisions of the Appendix C-2 
agreement, would be extinguished. Subsection 302(a) of the 
House bill. Section 302 of the House bill does not similarly 
extinguish the Appendix C-1 agreement, which protects freight 
railroad employees in the event of a discontinuance of 
intercity rail passenger service. Appendix C-1 agreement would, 
therefore, not be affected by the House bill.
    The Appendix C-1 agreement establishes the floor on labor 
protection that the Interstate Commerce Commission (ICC) must 
impose in approving various transactions involving the freight 
railroads. Under the Interstate Commerce Act, the ICC is 
required to impose labor protection under Sec. 11347,\4\ in 
approving the following transactions involving freight railroad 
carriers:
    \4\ Originally Sec. 5(2)(f) before being recodified as Sec. 11347 
in 1978 (Pub. L. No. 95-473).
---------------------------------------------------------------------------
          Railroad consolidations--whether by merger, asset 
        acquisition, stock purchase, or other form of control 
        (Sec. 11343);
          line transfers, leases and trackage rights between 
        carriers (Sec. 11343); and
          line abandonments (Sec. 10903).
    Prior to the passage of the Railroad Revitalization and 
Regulatory Reform Act of 1976 (4R Act), the minimum level of 
labor protection that was imposed by the ICC under Sec. 11347 
was 4 years of salary protection.\5\ In the 4R Act, Congress 
modified Sec. 11347 to link the freight carriers' labor 
protection obligations to those established under 45 U.S.C. 
Sec. 565 (now Sec. 24706(c)). Pub. L. No. 94-210; section 
402(a). As amended, Sec. 11347 provides that the ICC--
    \5\ In 1944, the ICC adopted the ``Oklahoma'' conditions (dismissed 
employees receive 100% of prior earnings up to 4 years, with protection 
to commence on the date of ICC approval of the transaction). Later that 
year, the ICC adopted the ``Burlington'' conditions (extended 
protection to abandonments). In 1952, the ICC adopted the ``New 
Orleans'' conditions (protection begins from the date an employee is 
adversely affected rather than from the date of the ICC order). See New 
York Dock Ry. v. United States, 609 F.2d 83 (2d Cir. 1979), for a 
discussion of the types of labor protection by the ICC prior to the 
enactment of the 4R Act.
---------------------------------------------------------------------------
        shall require the carrier to provide a fair arrangement 
        at least as protective of the interest of employees who 
        are affected by the transaction as the terms imposed 
        under this section before February 5, 1976 [up to 4 
        years of salary protection], and the terms established 
        under sections 24307(c), 24312, and 24706(c) [up to 6 
        years of salary protection] of this title. * * * The 
        arrangement and the order approving the transaction 
        must require that the employees of the affected rail 
        carrier will not be in a worse position related to 
        their employment as a result of the transaction during 
        the 4 years following the effective date of the final 
        action of the Commission (or if an employee was 
        employed for a lesser period of time by the carrier 
        before the action became effective, for that lesser 
        period).
    In 1979, the ICC implemented the 4R Act change to 
Sec. 11347 by requiring up to 6 years of salary protection for 
freight railroad employees (commonly referred to as ``New York 
Dock'' benefits). New York Dock Railway--Control--Brooklyn 
Eastern District, 360 I.C.C. 60 (1979). The ICC's decision was 
upheld by the Second Circuit; the court ruled that the 
reference in Sec. 11347 to terms established under 45 U.S.C. 
Sec. 565 (now Sec. 24706(c)) ``means the Appendix C-1 
conditions.'' New York Dock Ry. v. United States, Id. at 94.
    Subsection 302(c) of the House bill amends Sec. 11347 by 
striking the requirement that the labor protection imposed by 
the ICC must be at least as protective as terms established 
under Sec. Sec. 24307(c) and 24312. Significantly, however, 
subsection 302(c) of the House bill does not strike the 
requirement that the labor protection afforded freight railroad 
employees be at least as protective as the terms ``established 
[past tense] under section 24706(c) of this title.'' Appendix 
C-1 contains the terms established under Sec. 24706(c).
    In summation, Congress established a one-time process for 
the development of labor protection terms to protect freight 
railroad employees in the event of a discontinuance of 
intercity rail passenger service. This process provided for 
collective bargaining and review and approval of the resulting 
contract (Appendix C-1) by the Secretary of Labor. This process 
is complete and Appendix C-1 is in place. Nothing in the House 
bill extinguishes Appendix C-1, and it remains in place 
unaltered. The labor protection afforded freight railroad 
employees under Sec. 11347 of the Interstate Commerce Act is 
required to be at least as protective as that established under 
Sec. 24706(c)--namely, the Appendix C-1 terms. The House bill 
amends Sec. 11347, but does not alter the requirement that 
labor protection imposed by the ICC not drop below the levels 
established under Sec. 24706(c). It is clear then that the 
labor protection accorded freight railroad employees under 
Sec. 11347 and Appendix C-1 would not be affected by the 
passage of the House bill.

                                   James L. Oberstar.
                                   Robert A. Borski.
                                   Jerry F. Costello.
                                   Pat Danner.
                                   Jerrold Nadler.
                                   James E. Clyburn.
                                   Frank Mascara.
                                   William O. Lipinski.
                                   Nick Rahall.
                                   Peter A. DeFazio.
                                   Corrine Brown.
                                   Glenn Poshard.
                                   Bob Filner.