To provide for the competitive operation of the Northeast rail corridor and Autotrain using State and private sector initiatives.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Systemic Passenger Infrastructure 
and Network Overhaul through Financial Freedom Act''.

SEC. 2. INTERIM DIRECTED SERVICE.

    (a) Transfer of Ownership.--Effective on the date of the enactment 
of this Act--
            (1) title to all property of the National Railroad 
        Passenger Corporation necessary for the operation of the main 
        line of the Northeast Corridor between the District of Columbia 
        and Boston, Massachusetts, and the Autotrain shall transfer to 
        the Secretary of Transportation; and
            (2) the note and mortgage described in section 24907 of 
        title 49, United States Code, is canceled, in consideration for 
        the transfer described in paragraph (1).
    (b) Interim Operations.--The Secretary of Transportation shall 
ensure the continuation of maintenance and dispatching of service on 
the main line of the Northeast Corridor between the District of 
Columbia and Boston, Massachusetts, and of the Autotrain, until 
directed service is initiated under subsection (c). The Secretary is 
authorized to use personnel of the National Railroad Passenger 
Corporation to carry out this subsection.
    (c) Directed Service.--Not later than 3 months after the date of 
the enactment of this Act, the Secretary of Transportation shall 
complete a competitive selection of an entity or entities to maintain 
and dispatch service on the main line of the Northeast Corridor between 
the District of Columbia and Boston, Massachusetts, and for the 
Autotrain, and shall take such actions as are necessary to initiate and 
maintain such directed service until the disposition of such operations 
pursuant to sections 3 and 4, and for such additional time as is 
necessary to ensure the orderly transition of operations under those 
sections. In carrying out this subsection, the Secretary and any entity 
or entities selected by the Secretary shall have the powers and 
authorities, including access rights, of the National Railroad 
Passenger Corporation with respect to the service involved.

SEC. 3. NORTHEAST CORRIDOR.

    (a) Comptroller General Analysis.--Not later than 1 year after the 
date of the enactment of this Act, the Comptroller General shall 
transmit to the Secretary of Transportation a report analyzing the 
capital requirements needed to ensure that the Northeast Corridor can 
be operated in a financially viable manner.
    (b) Determination of Appropriate Disposition.--Not later than 2 
years after the date of the enactment of this Act, the Secretary, after 
considering the prospects of financial viability, including capital 
requirements as reported under subsection (a) and proposed financing 
options, shall determine which of the following options is most 
appropriate for the disposition of the operations (and all necessary 
supporting property) described in section 2(b) and (c) with respect to 
the Northeast Corridor:
            (1) Transfer of such operations to an interstate compact, 
        entered into under section 410 of the Amtrak Reform and 
        Accountability Act of 1997, consisting of the States of the 
        Northeast Corridor.
            (2) Transfer of such operations to a new quasi-governmental 
        corporation or to a private sector corporation.
            (3) Retention of ownership by the Secretary of 
        Transportation, with competitive franchising, by 1 or more 
        entities, of the management and dispatching of service.
The Secretary shall transmit to the Congress a report on the 
determination made under this subsection.
    (c) Implementation.--Not later than 6 months after a determination 
is made under subsection (b), the Secretary shall implement the 
appropriate disposition as so determined.

SEC. 4. AUTOTRAIN.

    (a) Determination of Appropriate Disposition.--Not later than 1 
year after the date of the enactment of this Act, the Secretary, after 
considering the prospects of financial viability, including capital 
requirements and proposed financing options, shall determine which of 
the following options is most appropriate for the disposition of the 
operations (and all necessary supporting property) described in section 
2(b) with respect to the Autotrain:
            (1) Transfer of such operations to a new quasi-governmental 
        corporation or to a private sector corporation.
            (2) Retention of ownership by the Secretary of 
        Transportation, with competitive franchising, by 1 or more 
        entities, of the management and operations.
The Secretary shall transmit to the Congress a report on the 
determination made under this subsection.
    (b) Implementation.--Not later than 6 months after a determination 
is made under subsection (a), the Secretary shall implement the 
appropriate disposition as so determined.

SEC. 5. FUNDING.

    (a) Retention of Amounts.--The Secretary of Transportation shall 
retain all amounts appropriated by the Federal Government for fiscal 
year 2002 for the National Railroad Passenger Corporation that have not 
been provided to the National Railroad Passenger Corporation, and such 
amounts shall be available to the Secretary for carrying out this Act.
    (b) Transfer of Amounts.--The National Railroad Passenger 
Corporation shall transfer to the Secretary of Transportation all 
amounts appropriated by the Federal Government for fiscal year 2002 and 
provided to the National Railroad Passenger Corporation, and such 
amounts shall be available to the Secretary for carrying out this Act.

SEC. 6. NONAPPLICABILITY OF PROVISION.

    A local governmental authority (as defined in section 5302(a)(6) of 
title 49, United States Code) shall not be subject to any obligation 
under any arrangement pursuant to section 5333(b) of title 49, United 
States Code, with respect to employees of the National Railroad 
Passenger Corporation providing services to such authority pursuant to 
a contract between the authority and the National Railroad Passenger 
Corporation.

Summary: Systemic Passenger Infrastructure and Network Overhaul through Financial Freedom Act - Transfers title to all property of the National Railroad Passenger Corporation (Amtrak) consisting of the main line of the Northeast Corridor between the District of Columbia and Boston, Massachusetts, and the Autotrain to the Secretary of Transportation in consideration of the cancellation of a certain note and mortgage between Amtrak and the US Government for the acquisition and improvement of such property and certain other rail properties. Directs the Secretary to provide for the competitive selection of an entity or entities to maintain and dispatch service operations on the main line of the Northeast Corridor between the District of Columbia and Boston, Massachusetts, and for the Autotrain, until the Secretary makes a determination for the disposition of such operations, including: (1) transfer of such operations to an interstate compact consisting of the States of the Northeast Corridor. (2) transfer of such operations to a new quasi-governmental corporation or to a private sector corporation. Or (3) retention of ownership by the Secretary, with competitive franchising, by one or more entities, of the management and dispatching of service. Requires the Secretary to retain, and Amtrak to transfer to the Secretary, all amounts appropriated by the US Government for FY 2002 for Amtrak that have not been provided to it, as well as those funds that have been.