104TH CONGRESS

1ST SESSION H. R. 1788

AN ACT

To reform the statutes relating to Amtrak, to aupurposes. thorize appropriations for Amtrak, and for other
104TH CONGRESS

1ST SESSION H. R. 1788

AN ACT

To reform the statutes relating to Amtrak, to authorize

appropriations for Amtrak, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Amtrak Reform and

5 Privatization Act of 1995’’.
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1 TITLE I—PROCUREMENT

2 REFORMS

3 SEC. 101. CONTRACTING OUT.

4 (a) AMENDMENT.—Section 24312(b) of title 49,

5 United States Code, is amended to read as follows:

6 ‘‘(b) CONTRACTING OUT.—(1) When Amtrak con7 tracts out work normally performed by an employee in a

8 bargaining unit covered by a contract between a labor or9 ganization and Amtrak, Amtrak is encouraged to use

10 other rail carriers for performing such work.

11 ‘‘(2)(A) Amtrak may not enter into a contract for the

12 operation of trains with any entity other than a State or

13 State authority.

14 ‘‘(B) If Amtrak enters into a contract as described

15 in subparagraph (A)—

16 ‘‘(i) such contract shall not relieve Amtrak of

17 any obligation in connection with the use of facilities

18 of another entity for the operation covered by such

19 contract; and

20 ‘‘(ii) such operation shall be subject to any op21 erating or safety restrictions and conditions required

22 by the agreement providing for the use of such fa23 cilities.
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1 ‘‘(C) This paragraph shall not restrict Amtrak’s au2 thority to enter into contracts for access to or use of

3 tracks or facilities for the operation of trains.’’.

4 (b) EFFECTIVE DATE.—Subsection (a) shall take ef5 fect 254 days after the date of the enactment of this Act.

6 SEC. 102. CONTRACTING PRACTICES.

7 (a) BELOW-COST COMPETITION.—Section 24305(b)

8 of title 49, United States Code, is amended to read as

9 follows:

10 ‘‘(b) BELOW-COST COMPETITION.—(1) Amtrak shall

11 not submit any bid for the performance of services under

12 a contract for an amount less than the cost to Amtrak

13 of performing such services, with respect to any activity

14 other than the provision of intercity rail passenger trans15 portation, commuter rail passenger transportation, or mail

16 or express transportation. For purposes of this subsection,

17 the cost to Amtrak of performing services shall be deter18 mined using generally accepted accounting principles for

19 contracting.

20 ‘‘(2) Any aggrieved individual may commence a civil

21 action for violation of paragraph (1). The United States

22 district courts shall have jurisdiction, without regard to

23 the amount in controversy or the citizenship of the parties,

24 to enforce paragraph (1). The court, in issuing any final

25 order in any action brought pursuant to this paragraph,
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1 may award bid preparation costs, anticipated profits, and

2 litigation costs, including reasonable attorney and expert

3 witness fees, to any prevailing or substantially prevailing

4 party. The court may, if a temporary restraining order

5 or preliminary injunction is sought, require the filing of

6 a bond or equivalent security in accordance with the Fed7 eral Rules of Civil Procedure.

8 ‘‘(3) This subsection shall cease to be effective on the

9 expiration of a fiscal year during which no Federal operat10 ing assistance is provided to Amtrak.’’.

11 (b) THROUGH SERVICE IN CONJUNCTION WITH

12 INTERCITY BUS OPERATIONS.—(1) Section 24305(a) of

13 title 49, United States Code, is amended by adding at the

14 end the following new paragraph:

15 ‘‘(3)(A) Except as provided in subsection (d)(2), Am16 trak may enter into a contract with a motor carrier of

17 passengers for the intercity transportation of passengers

18 by motor carrier over regular routes only—

19 ‘‘(i) if the motor carrier is not a public recipient

20 of governmental assistance, as such term is defined

21 in section 10922(d)(1)(F)(i) of this title, other than

22 a recipient of funds under section 18 of the Federal

23 Transit Act;
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1 ‘‘(ii) for passengers who have had prior move2 ment by rail or will have subsequent movement by

3 rail; and

4 ‘‘(iii) if the buses, when used in the provision

5 of such transportation, are used exclusively for the

6 transportation of passengers described in clause (ii).

7 ‘‘(B) Subparagraph (A) shall not apply to transpor8 tation funded predominantly by a State or local govern9 ment, or to ticket selling agreements.’’.

10 (2) Section 24305(d) of title 49, United States Code,

11 is amended by adding at the end the following new para12 graph:

13 ‘‘(3) Congress encourages Amtrak and motor com14 mon carriers of passengers to use the authority conferred

15 in section 11342(a) of this title for the purpose of provid16 ing improved service to the public and economy of oper17 ation.’’.

18 SEC. 103. FREEDOM OF INFORMATION ACT.

19 Section 24301(e) of title 49, United States Code, is

20 amended by striking ‘‘Section 552 of title 5, this part,’’

21 and inserting in lieu thereof ‘‘This part’’.

22 SEC. 104. TRACK WORK.

23 (a) OUTREACH PROGRAM.—Amtrak shall, within one

24 year after the date of the enactment of this Act, establish

25 an outreach program through which it will work with track
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1 work manufacturers in the United States to increase the

2 likelihood that such manufacturers will be able to meet

3 Amtrak’s specifications for track work. The program shall

4 include engineering assistance for the manufacturers and

5 dialogue between Amtrak and the manufacturers to iden6 tify how Amtrak’s specifications can be met by the capa7 bilities of the manufacturers.

8 (b) ANNUAL REPORT.—Amtrak shall report to the

9 Congress within 2 years after the date of the enactment

10 of this Act on progress made under subsection (a), includ11 ing a statement of the percentage of Amtrak’s track work

12 contracts that are awarded to manufacturers in the United

13 States.

14 TITLE II—OPERATIONAL

15 REFORMS

16 SEC. 201. BASIC SYSTEM.

17 (a) OPERATION OF BASIC SYSTEM.—Section 24701

18 of title 49, United States Code, and the item relating

19 thereto in the table of sections of chapter 247 of such title,

20 are repealed.

21 (b) IMPROVING RAIL PASSENGER TRANSPOR22 TATION.—Section 24702 of title 49, United States Code,

23 and the item relating thereto in the table of sections of

24 chapter 247 of such title, are repealed.
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1 (c) DISCONTINUANCE.—Section 24706 of title 49,

2 United States Code, is amended—

3 (1) in subsection (a)(1)—

4 (A) by striking ‘‘90 days’’ and inserting in

5 lieu thereof ‘‘180 days’’;

6 (B) by striking ‘‘a discontinuance under

7 section 24704 or 24707(a) or (b) of this title’’

8 and inserting in lieu thereof ‘‘discontinuing

9 service over a route’’; and

10 (C) by inserting ‘‘or assume’’ after ‘‘agree

11 to share’’;

12 (2) in subsection (a)(2), by striking ‘‘section

13 24704 or 24707(a) or (b) of this title’’ and inserting

14 in lieu thereof ‘‘paragraph (1)’’; and

15 (3) by striking subsection (b).

16 (d) COST AND PERFORMANCE REVIEW.—Section

17 24707 of title 49, United States Code, and the item relat18 ing thereto in the table of sections of chapter 247 of such

19 title, are repealed.

20 (e) SPECIAL COMMUTER TRANSPORTATION.—Section

21 24708 of title 49, United States Code, and the item relat22 ing thereto in the table of sections of chapter 247 of such

23 title, are repealed.
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1 (f) CONFORMING AMENDMENT.—Section

2 24312(a)(1) of title 49, United States Code, is amended

3 by striking ‘‘, 24701(a),’’.

4 SEC. 202. MAIL, EXPRESS, AND AUTO-FERRY TRANSPOR5 TATION.

6 (a) REPEAL.—Section 24306 of title 49, United

7 States Code, and the item relating thereto in the table of

8 sections of chapter 243 of such title, are repealed.

9 (b) CONFORMING AMENDMENT.—Section 24301 of

10 title 49, United States Code, is amended by adding at the

11 end the following new subsection:

12 ‘‘(o) NONAPPLICATION OF CERTAIN OTHER LAWS.—

13 State and local laws and regulations that impair the provi14 sion of mail, express, and auto-ferry transportation do not

15 apply to Amtrak or a rail carrier providing mail, express,

16 or auto-ferry transportation.’’.

17 SEC. 203. ROUTE AND SERVICE CRITERIA.

18 Section 24703 of title 49, United States Code, and

19 the item relating thereto in the table of sections of chapter

20 247 of such title, are repealed.

21 SEC. 204. ADDITIONAL QUALIFYING ROUTES.

22 Section 24705 of title 49, United States Code, and

23 the item relating thereto in the table of sections of chapter

24 247 of such title, are repealed.
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1 SEC. 205. TRANSPORTATION REQUESTED BY STATES, AU2 THORITIES, AND OTHER PERSONS.

3 (a) REPEAL.—Section 24704 of title 49, United

4 States Code, and the item relating thereto in the table of

5 sections of chapter 247 of such title, are repealed.

6 (b) EXISTING AGREEMENTS.—Amtrak shall not,

7 after the date of the enactment of this Act, be required

8 to provide transportation services pursuant to an agree9 ment entered into before such date of enactment under

10 the section repealed by subsection (a) of this section.

11 (c) STATE, REGIONAL, AND LOCAL COOPERATION.—

12 Section 24101(c)(2) of title 49, United States Code, is

13 amended by inserting ‘‘, separately or in combination,’’

14 after ‘‘and the private sector’’.

15 (d) CONFORMING AMENDMENT.—Section

16 24312(a)(1) of title 49, United States Code, is amended

17 by striking ‘‘or 24704(b)(2)’’.

18 SEC. 206. AMTRAK COMMUTER.

19 (a) REPEAL OF CHAPTER 245.—Chapter 245 of title

20 49, United States Code, and the item relating thereto in

21 the table of chapters of subtitle V of such title, are re22 pealed.

23 (b) CONFORMING AMENDMENTS.—(1) Section

24 24301(f) of title 49, United States Code, is amended to

25 read as follows:
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1 ‘‘(f) TAX EXEMPTION FOR CERTAIN COMMUTER AU2 THORITIES.—A commuter authority that was eligible to

3 make a contract with Amtrak Commuter to provide com4 muter rail passenger transportation but which decided to

5 provide its own rail passenger transportation beginning

6 January 1, 1983, is exempt, effective October 1, 1981,

7 from paying a tax or fee to the same extent Amtrak is

8 exempt.’’.

9 (2) Subsection (a) of this section shall not affect any

10 trackage rights held by Amtrak or the Consolidated Rail

11 Corporation.

12 SEC. 207. COMMUTER COST SHARING ON THE NORTHEAST

13 CORRIDOR.

14 (a) DETERMINATION OF COMPENSATION.—Section

15 24904 of title 49, United States Code, is amended—

16 (1) by striking subsection (b);

17 (2) by redesignating subsection (c) as sub18 section (b);

19 (3) in subsection (b), as so redesignated by

20 paragraph (2) of this subsection—

21 (A) by striking ‘‘TRANSPORTATION OVER

22 CERTAIN RIGHTS OF WAY AND FACILITIES’’ in

23 the subsection head and inserting in lieu thereof

24 ‘‘FREIGHT TRANSPORTATION’’;
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1 (B) by inserting ‘‘relating to rail freight

2 transportation’’ after ‘‘subsection (a)(6) of this

3 section’’ in paragraph (1); and

4 (C) by inserting ‘‘to an agreement de5 scribed in paragraph (1)’’ after ‘‘If the parties’’

6 in paragraph (2); and

7 (4) by inserting after subsection (b), as so re8 designated by paragraph (2) of this subsection, the

9 following new subsection:

10 ‘‘(c) BINDING ARBITRATION FOR COMMUTER DIS11 PUTES.—(1) If the parties to an agreement described in

12 subsection (a)(6) relating to commuter rail passenger

13 transportation cannot agree to the terms of such agree14 ment, such parties shall submit the issues in dispute to

15 binding arbitration.

16 ‘‘(2) The parties to a dispute described in paragraph

17 (1) may agree to use the Interstate Commerce Commis18 sion to arbitrate such dispute, and if requested the Inter19 state Commerce Commission shall perform such func20 tion.’’.

21 (b) PRIVATIZATION.—Section 24101(d) of title 49,

22 United States Code, is amended to read as follows:

23 ‘‘(d) MINIMIZING GOVERNMENT SUBSIDIES.—To

24 carry out this part, Amtrak is encouraged to make agree25 ments with the private sector and undertake initiatives
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1 that are consistent with good business judgment, that

2 produce income to minimize Government subsidies, and

3 that promote the potential privatization of Amtrak’s oper4 ations.’’.

5 SEC. 208. ACCESS TO RECORDS AND ACCOUNTS.

6 Section 24315 of title 49, United States Code, is

7 amended—

8 (1) in subsection (e), by inserting ‘‘financial or’’

9 after ‘‘Comptroller General may conduct’’; and

10 (2) by adding at the end the following new sub11 section:

12 ‘‘(h) ACCESS TO RECORDS AND ACCOUNTS.—A State

13 shall have access to Amtrak’s records, accounts, and other

14 necessary documents used to determine the amount of any

15 payment to Amtrak required of the State.’’.

16 TITLE III—COLLECTIVE

17 BARGAINING REFORMS

18 SEC. 301. RAILWAY LABOR ACT PROCEDURES.

19 (a) NOTICES.—(1) Notwithstanding any arrange20 ment in effect before the date of the enactment of this

21 Act, notices under section 6 of the Railway Labor Act (45

22 U.S.C. 156) with respect to all issues relating to—

23 (A) employee protective arrangements and sev24 erance benefits, including all provisions of Appendix
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1 C–2 to the National Railroad Passenger Corporation

2 Agreement, signed July 5, 1973; and

3 (B) contracting out by Amtrak of work nor4 mally performed by an employee in a bargaining

5 unit covered by a contract between Amtrak and a

6 labor organization representing Amtrak employees,

7 applicable to employees of Amtrak shall be deemed served

8 and effective on the date which is 90 days after the date

9 of the enactment of this Act. Amtrak, and each affected

10 labor organization representing Amtrak employees, shall

11 promptly supply specific information and proposals with

12 respect to each such notice. This subsection shall not apply

13 to issues relating to provisions defining the scope or classi14 fication of work performed by an Amtrak employee.

15 (2) In the case of provisions of a collective bargaining

16 agreement with respect to which a moratorium is in effect

17 90 days after the date of the enactment of this Act, para18 graph (1) shall take effect on the expiration of such mora19 torium. For purposes of the application of paragraph (1)

20 to such provisions, notices shall be deemed served and ef21 fective on the date of such expiration.

22 (b) NATIONAL MEDIATION BOARD EFFORTS.—Ex23 cept as provided in subsection (c), the National Mediation

24 Board shall complete all efforts, with respect to each dis25 pute described in subsection (a), under section 5 of the
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1 Railway Labor Act (45 U.S.C. 155) not later than 180

2 days after the date of the enactment of this Act.

3 (c) RAILWAY LABOR ACT ARBITRATION.—The par4 ties to any dispute described in subsection (a) may agree

5 to submit the dispute to arbitration under section 7 of the

6 Railway Labor Act (45 U.S.C. 157), and any award re7 sulting therefrom shall be retroactive to the date which

8 is 180 days after the date of the enactment of this Act.

9 (d) DISPUTE RESOLUTION.—(1) With respect to any

10 dispute described in subsection (a) which—

11 (A) is unresolved as of the date which is 180

12 days after the date of the enactment of this Act; and

13 (B) is not submitted to arbitration as described

14 in subsection (c),

15 Amtrak and the labor organization parties to such dispute

16 shall, within 187 days after the date of the enactment of

17 this Act, each select an individual from the entire roster

18 of arbitrators maintained by the National Mediation

19 Board. Within 194 days after the date of the enactment

20 of this Act, the individuals selected under the preceding

21 sentence shall jointly select an individual from such roster

22 to make recommendations with respect to such dispute

23 under this subsection.

24 (2) No individual shall be selected under paragraph

25 (1) who is pecuniarily or otherwise interested in any orga-
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1 nization of employees or any railroad. Nothing in this sub2 section shall preclude an individual from being selected for

3 more than 1 dispute described in subsection (a).

4 (3) The compensation of individuals selected under

5 paragraph (1) shall be fixed by the National Mediation

6 Board. The second paragraph of section 10 of the Railway

7 Labor Act shall apply to the expenses of such individuals

8 as if such individuals were members of a board created

9 under such section 10.

10 (4) If the parties to a dispute described in subsection

11 (a) fail to reach agreement within 224 days after the date

12 of the enactment of this Act, the individual selected under

13 paragraph (1) with respect to such dispute shall make rec14 ommendations to the parties proposing contract terms to

15 resolve the dispute.

16 (5) If the parties to a dispute described in subsection

17 (a) fail to reach agreement, no change shall be made by

18 either of the parties in the conditions out of which the

19 dispute arose for 30 days after recommendations are made

20 under paragraph (4).

21 (6) Section 10 of the Railway Labor Act (45 U.S.C.

22 160) shall not apply to a dispute described in subsection

23 (a).
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1 SEC. 302. SERVICE DISCONTINUANCE.

2 (a) REPEAL.—(1) Section 24706(c) of title 49, Unit3 ed States Code, is repealed.

4 (2)(A) Any provision of a contract, entered into be5 fore the date of the enactment of this Act between Amtrak

6 and a labor organization representing Amtrak employees,

7 relating to—

8 (i) employee protective arrangements and sever9 ance benefits, including all provisions of Appendix

10 C–2 to the National Railroad Passenger Corporation

11 Agreement, signed July 5, 1973; or

12 (ii) contracting out by Amtrak of work normally

13 performed by an employee in a bargaining unit cov14 ered by a contract between Amtrak and a labor or15 ganization representing Amtrak employees,

16 applicable to employees of Amtrak is extinguished. This

17 paragraph shall not apply to provisions defining the scope

18 or classification of work performed by an Amtrak em19 ployee.

20 (B) In the case of provisions of a collective bargaining

21 agreement with respect to which a moratorium is in effect

22 90 days after the date of the enactment of this Act, sub23 paragraph (A) shall take effect 164 days after the date

24 of the expiration of such moratorium.

25 (3) Section 1172(c) of title 11, United States Code,

26 shall not apply to Amtrak and its employees.
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1 (4) Paragraphs (1) and (2) of this subsection shall

2 take effect 254 days after the date of the enactment of

3 this Act.

4 (b) INTERCITY PASSENGER SERVICE EMPLOYEES.—

5 Section 1165(a) of the Northeast Rail Service Act of 1981

6 (45 U.S.C. 1113(a)) is amended—

7 (1) by inserting ‘‘(1)’’ before ‘‘After January 1,

8 1983’’;

9 (2) by striking ‘‘Amtrak, Amtrak Commuter,

10 and Conrail’’ and inserting in lieu thereof ‘‘Amtrak

11 and Conrail’’;

12 (3) by striking ‘‘Such agreement shall ensure’’

13 and all that follows through ‘‘submitted to binding

14 arbitration.’’; and

15 (4) by adding at the end the following new

16 paragraph:

17 ‘‘(2) Notwithstanding any other provision of law,

18 agreement, or arrangement, with respect to employees in

19 any class or craft in train or engine service, Conrail shall

20 have the right to furlough one such employee for each em21 ployee in train or engine service who moves from Amtrak

22 to Conrail in excess of the cumulative number of such em23 ployees who move from Conrail to Amtrak. Conrail shall

24 not be obligated to fill any position governed by an agree25 ment concerning crew consist, attrition arrangements, re-
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1 serve boards, or reserve engine service positions, where an

2 increase in positions is the result of the return of an Am3 trak employee pursuant to an agreement entered into

4 under paragraph (1). Conrail’s collective bargaining agree5 ments with organizations representing its train and engine

6 service employees shall be deemed to have been amended

7 to conform to this paragraph. Any dispute or controversy

8 with respect to the interpretation, application, or enforce9 ment of this paragraph which has not been resolved within

10 90 days after the date of the enactment of this paragraph

11 may be submitted by either party to an adjustment board

12 for a final and binding decision under section 3 of the

13 Railway Labor Act.’’.

14 (c) TECHNICAL AMENDMENT.—Section 11347 of

15 title 49, United States Code, is amended by striking ‘‘sec16 tions 24307(c), 24312, and’’ and inserting in lieu thereof

17 ‘‘section’’.

18 TITLE IV—USE OF RAILROAD

19 FACILITIES

20 SEC. 401. LIABILITY LIMITATION.

21 (a) AMENDMENT.—Chapter 281 of title 49, United

22 States Code, is amended by adding at the end the follow23 ing new section:
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1 ‘‘§ 28103. Limitations on rail passenger transpor2 tation liability

3 ‘‘(a) LIMITATIONS.—(1) Notwithstanding any other

4 statutory or common law or public policy, or the nature

5 of the conduct giving rise to damages or liability, in a

6 claim for personal injury, death, or damage to property

7 arising from or in connection with the provision of rail

8 passenger transportation, or from or in connection with

9 any rail passenger transportation operations over or rail

10 passenger transportation use of right-of-way or facilities

11 owned, leased, or maintained by any high-speed railroad

12 authority or operator, any commuter authority or opera13 tor, any rail carrier, or any State—

14 ‘‘(A) punitive damages shall not exceed the

15 greater of—

16 ‘‘(i) $250,000; or

17 ‘‘(ii) three times the amount of economic

18 loss; and

19 ‘‘(B) noneconomic damages awarded to any

20 claimant for each accident or incident shall not ex21 ceed the claimant’s economic loss, if any, by more

22 than $250,000.

23 ‘‘(2) If, in any case wherein death was caused, the

24 law of the place where the act or omission complained of

25 occurred provides, or has been construed to provide, for

26 damages only punitive in nature, the claimant may recover
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1 in a claim limited by this subsection for economic and non2 economic damages and punitive damages, subject to para3 graph (1)(A) and (B).

4 ‘‘(3) For purposes of this subsection—

5 ‘‘(A) the term ‘actual damages’ means damages

6 awarded to pay for economic loss;

7 ‘‘(B) the term ‘claim’ means a claim made, di8 rectly or indirectly—

9 ‘‘(i) against Amtrak, any high-speed rail10 road authority or operator, any commuter au11 thority or operator, any rail carrier, or any

12 State; or

13 ‘‘(ii) against an officer, employee, affiliate

14 engaged in railroad operations, or agent, of

15 Amtrak, any high-speed railroad authority or

16 operator, any commuter authority or operator,

17 any rail carrier, or any State;

18 ‘‘(C) the term ‘economic loss’ means any pecu19 niary loss resulting from harm, including the loss of

20 earnings, medical expense loss, replacement services

21 loss, loss due to death, burial costs, loss of business

22 or employment opportunities, and any other form of

23 pecuniary loss allowed under applicable State law or

24 under paragraph (2) of this subsection;
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1 ‘‘(D) the term ‘noneconomic damages’ means

2 damages other than punitive damages or actual

3 damages; and

4 ‘‘(E) the term ‘punitive damages’ means dam5 ages awarded against any person or entity to punish

6 or deter such person or entity, or others, from en7 gaging in similar behavior in the future.

8 ‘‘(b) INDEMNIFICATION OBLIGATIONS.—Obligations

9 of any party, however arising, including obligations arising

10 under leases or contracts or pursuant to orders of an ad11 ministrative agency, to indemnify against damages or li12 ability for personal injury, death, or damage to property

13 described in subsection (a), incurred after the date of the

14 enactment of the Amtrak Reform and Privatization Act

15 of 1995, shall be enforceable, notwithstanding any other

16 statutory or common law or public policy, or the nature

17 of the conduct giving rise to the damages or liability.

18 ‘‘(c) EFFECT ON OTHER LAWS.—This section shall

19 not affect the damages that may be recovered under the

20 Act of April 27, 1908 (45 U.S.C. 51 et seq.; popularly

21 known as the ‘Federal Employers’ Liability Act’) or under

22 any workers compensation Act.

23 ‘‘(d) DEFINITION.—For purposes of this section, the

24 term ‘rail carrier’ includes a person providing excursion,
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1 scenic, or museum train service, and an owner or operator

2 of a privately owned rail passenger car.’’.

3 (b) CONFORMING AMENDMENT.—The table of sec4 tions of chapter 281 of title 49, United States Code, is

5 amended by adding at the end the following new item:

‘‘28103. Limitations on rail passenger transportation liability.’’.

6 TITLE V—FINANCIAL REFORMS

7 SEC. 501. FINANCIAL POWERS.

8 (a) CAPITALIZATION.—(1) Section 24304 of title 49,

9 United States Code, is amended to read as follows:

10 ‘‘§ 24304. Employee stock ownership plans

11 ‘‘In issuing stock pursuant to applicable corporate

12 law, Amtrak is encouraged to include employee stock own13 ership plans.’’.

14 (2) The item relating to section 24304 of title 49,

15 United States Code, in the table of sections of chapter 243

16 of such title is amended to read as follows:

‘‘24304. Employee stock ownership plans.’’.

17 (b) REDEMPTION OF COMMON STOCK.—(1) Amtrak

18 shall, within 2 months after the date of the enactment of

19 this Act, redeem all common stock previously issued, for

20 the fair market value of such stock.

21 (2) Section 28103 of title 49, United States Code,

22 shall not apply to any rail carrier holding common stock

23 of Amtrak after the expiration of 2 months after the date

24 of the enactment of this Act.
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1 (3) Amtrak shall redeem any such common stock held

2 after the expiration of the 2-month period described in

3 paragraph (1), using procedures set forth in section

4 24311(a) and (b).

5 (c) ELIMINATION OF LIQUIDATION PREFERENCE

6 AND VOTING RIGHTS OF PREFERRED STOCK.—(1)(A)

7 Preferred stock of Amtrak held by the Secretary of Trans8 portation shall confer no liquidation preference.

9 (B) Subparagraph (A) shall take effect 90 days after

10 the date of the enactment of this Act.

11 (2)(A) Preferred stock of Amtrak held by the Sec12 retary of Transportation shall confer no voting rights.

13 (B) Subparagraph (A) shall take effect 60 days after

14 the date of the enactment of this Act.

15 (d) NOTE AND MORTGAGE.—(1) Section 24907 of

16 title 49, United States Code, and the item relating thereto

17 in the table of sections of chapter 249 of such title, are

18 repealed.

19 (2) The United States hereby relinquishes all rights

20 held in connection with any note obtained or mortgage

21 made under such section 24907, or in connection with the

22 note, security agreement, and terms and conditions related

23 thereto entered into with Amtrak dated October 5, 1983.
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1 (3) No amount shall be includible in Amtrak’s gross

2 income for Federal tax purposes as a result of the applica3 tion of this subsection or subsection (c).

4 (e) STATUS AND APPLICABLE LAWS.—(1) Section

5 24301(a)(3) of title 49, United States Code, is amended

6 by inserting ‘‘, and shall not be subject to title 31, United

7 States Code’’ after ‘‘United States Government’’.

8 (2) Section 9101(2) of title 31, United States Code,

9 relating to Government corporations, is amended by strik10 ing subparagraph (A) and redesignating subparagraphs

11 (B) through (M) as subparagraphs (A) through (L), re12 spectively.

13 SEC. 502. DISBURSEMENT OF FEDERAL FUNDS.

14 Section 24104(d) of title 49, United States Code, is

15 amended to read as follows:

16 ‘‘(d) ADMINISTRATION OF APPROPRIATIONS.—Fed17 eral operating assistance funds appropriated to Amtrak

18 shall be provided to Amtrak upon appropriation when re19 quested by Amtrak.’’.

20 SEC. 503. BOARD OF DIRECTORS.

21 (a) AMENDMENT.—Section 24302 of title 49, United

22 States Code, is amended to read as follows:

23 ‘‘§ 24302. Board of Directors

24 ‘‘(a) EMERGENCY REFORM BOARD.—
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1 ‘‘(1) ESTABLISHMENT AND DUTIES.—The

2 Emergency Reform Board described in paragraph

3 (2) shall assume the responsibilities of the Board of

4 Directors of Amtrak 60 days after the date of the

5 enactment of the Amtrak Reform and Privatization

6 Act of 1995, or as soon thereafter as such Board is

7 sufficiently constituted to function as a board of di8 rectors under applicable corporate law. Such Board

9 shall adopt new bylaws, including procedures for the

10 selection of members of the Board of Directors

11 under subsection (c) which provide for employee rep12 resentation.

13 ‘‘(2) MEMBERSHIP.—(A) The Emergency Re14 form Board shall consist of 7 members appointed by

15 the President, by and with the advice and consent

16 of the Senate.

17 ‘‘(B) In selecting individuals for nominations

18 for appointments to the Emergency Reform Board,

19 the President should consult with—

20 ‘‘(i) the Speaker of the House of Rep21 resentatives concerning the appointment of two

22 members;

23 ‘‘(ii) the minority leader of the House of

24 Representatives concerning the appointment of

25 one member;
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1 ‘‘(iii) the majority leader of the Senate

2 concerning the appointment of two members;

3 and

4 ‘‘(iv) the minority leader of the Senate con5 cerning the appointment of one member.

6 ‘‘(C) Appointments under subparagraph (A)

7 shall be made from among individuals who—

8 ‘‘(i) have technical qualification, profes9 sional standing, and demonstrated expertise in

10 the fields of intercity common carrier transpor11 tation and corporate management; and

12 ‘‘(ii) are not employees of Amtrak, employ13 ees of the United States, or representatives of

14 rail labor or rail management.

15 ‘‘(b) DIRECTOR GENERAL.—If the Emergency Re16 form Board described in subsection (a)(2) is not suffi17 ciently constituted to function as a board of directors

18 under applicable corporate law before the expiration of 60

19 days after the date of the enactment of the Amtrak Re20 form and Privatization Act of 1995, the special court es21 tablished under section 209(b) of the Regional Rail Reor22 ganization Act of 1973 (45 U.S.C. 719(b)) shall appoint

23 a Director General, who shall exercise all powers of the

24 Board of Directors of Amtrak until the Emergency Re25 form Board assumes such powers.
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1 ‘‘(c) BOARD OF DIRECTORS.—Four years after the

2 establishment of the Emergency Reform Board under sub3 section (a), a Board of Directors shall be selected pursu4 ant to bylaws adopted by the Emergency Reform Board,

5 and the Emergency Reform Board shall be dissolved.’’.

6 (b) EFFECT ON AUTHORIZATIONS.—If the Emer7 gency Reform Board has not assumed the responsibilities

8 of the Board of Directors of Amtrak before March 15,

9 1996, all provisions authorizing appropriations under the

10 amendments made by section 701 of this Act for a fiscal

11 year after fiscal year 1996 shall cease to be effective.

12 SEC. 504. REPORTS AND AUDITS.

13 Section 24315 of title 49, United States Code, as

14 amended by section 208 of this Act, is further amended—

15 (1) by striking subsections (a) and (c);

16 (2) by redesignating subsections (b), (d), (e),

17 (f), (g), and (h) as subsections (a), (b), (c), (d), (e),

18 and (f), respectively; and

19 (3) in subsection (d), as so redesignated by

20 paragraph (2) of this section, by striking ‘‘(d) or

21 (e)’’ and inserting in lieu thereof ‘‘(b) or (c)’’.

22 SEC. 505. OFFICERS’ PAY.

23 Section 24303(b) of title 49, United States Code, is

24 amended by inserting ‘‘The preceding sentence shall cease

25 to be effective on the expiration of a fiscal year during
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1 which no Federal operating assistance is provided to Am2 trak.’’ after ‘‘with comparable responsibility.’’.

3 SEC. 506. EXEMPTION FROM TAXES.

4 Section 24301(l)(1) of title 49, United States Code,

5 is amended—

6 (1) by inserting ‘‘, and any passenger or other

7 customer of Amtrak or such subsidiary,’’ after ‘‘sub8 sidiary of Amtrak’’;

9 (2) by striking ‘‘or fee imposed’’ and all that

10 follows through ‘‘levied on it’’ and inserting in lieu

11 thereof ‘‘, fee, head charge, or other charge, imposed

12 or levied by a State, political subdivision, or local

13 taxing authority, directly or indirectly on Amtrak or

14 on persons traveling in intercity rail passenger

15 transportation or on mail or express transportation

16 provided by Amtrak or a rail carrier subsidiary of

17 Amtrak, or on the carriage of such persons, mail, or

18 express, or on the sale of any such transportation,

19 or on the gross receipts derived therefrom’’; and

20 (3) by amending the last sentence thereof to

21 read as follows: ‘‘In the case of a tax or fee that

22 Amtrak was required to pay as of September 10,

23 1982, Amtrak is not exempt from such tax or fee if

24 it was assessed before April 1, 1995.’’.
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1 TITLE VI—MISCELLANEOUS

2 SEC. 601. TEMPORARY RAIL ADVISORY COUNCIL.

3 (a) APPOINTMENT.—Within 30 days after the date

4 of the enactment of this Act, a Temporary Rail Advisory

5 Council (in this section referred to as the ‘‘Council’’) shall

6 be appointed under this section.

7 (b) DUTIES.—The Council shall—

8 (1) evaluate Amtrak’s performance;

9 (2) prepare an analysis and critique of Am10 trak’s business plan;

11 (3) suggest strategies for further cost contain12 ment and productivity improvements, including

13 strategies with the potential for further reduction in

14 Federal operating subsidies and the eventual partial

15 or complete privatization of Amtrak’s operations;

16 and

17 (4) recommend appropriate methods for adop18 tion of uniform cost and accounting procedures

19 throughout the Amtrak system, based on generally

20 accepted accounting principles.

21 (c) MEMBERSHIP.—(1) The Council shall consist of

22 7 members appointed as follows:

23 (A) Two individuals to be appointed by the

24 Speaker of the House of Representatives.
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1 (B) One individual to be appointed by the mi2 nority leader of the House of Representatives.

3 (C) Two individuals to be appointed by the ma4 jority leader of the Senate.

5 (D) One individual to be appointed by the mi6 nority leader of the Senate.

7 (E) One individual to be appointed by the

8 President.

9 (2) Appointments under paragraph (1) shall be made

10 from among individuals who—

11 (A) have technical qualification, professional

12 standing, and demonstrated expertise in the fields of

13 transportation and corporate management; and

14 (B) are not employees of Amtrak, employees of

15 the United States, or representatives of rail labor or

16 rail management.

17 (3) Within 40 days after the date of the enactment

18 of this Act, a majority of the members of the Council shall

19 elect a chairman from among such members.

20 (d) TRAVEL EXPENSES.—Each member of the Coun21 cil shall serve without pay, but shall receive travel ex22 penses, including per diem in lieu of subsistence, in ac23 cordance with sections 5702 and 5703 of title 5, United

24 States Code.
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1 (e) ADMINISTRATIVE SUPPORT.—The Secretary of

2 Transportation shall provide to the Council such adminis3 trative support as the Council requires to carry out this

4 section.

5 (f) ACCESS TO INFORMATION.—Amtrak shall make

6 available to the Council all information the Council re7 quires to carry out this section. The Council shall establish

8 appropriate procedures to ensure against the public disclo9 sure of any information obtained under this subsection

10 which is a trade secret or commercial or financial informa11 tion that is privileged or confidential.

12 (g) REPORTS.—(1) Within 120 days after the date

13 of the enactment of this Act, the Council shall transmit

14 to the Amtrak board of directors and the Congress an in15 terim report on its findings and recommendations.

16 (2) Within 270 days after the date of the enactment

17 of this Act, the Council shall transmit to the Amtrak

18 board of directors and the Congress a final report on its

19 findings and recommendations.

20 (h) STATUS.—The Council shall not be subject to the

21 Federal Advisory Committee Act (5 U.S.C. App.) or sec22 tion 552 of title 5, United States Code (commonly referred

23 to as the Freedom of Information Act).
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1 SEC. 602. PRINCIPAL OFFICE AND PLACE OF BUSINESS.

2 Section 24301(b) of title 49, United States Code, is

3 amended—

4 (1) by striking the first sentence;

5 (2) by striking ‘‘of the District of Columbia’’

6 and inserting in lieu thereof ‘‘of the State in which

7 its principal office and place of business is located’’;

8 and

9 (3) by inserting ‘‘For purposes of this sub10 section, the term ‘State’ includes the District of Co11 lumbia. Notwithstanding section 3 of the District of

12 Columbia Business Corporation Act, Amtrak, if its

13 principal office and place of business is located in

14 the District of Columbia, shall be considered orga15 nized under the provisions of such Act.’’ after ‘‘in a

16 civil action.’’.

17 SEC. 603. STATUS AND APPLICABLE LAWS.

18 Section 24301 of title 49, United States Code, is

19 amended—

20 (1) in subsection (a)(1), by striking ‘‘rail car21 rier under section 10102’’ and inserting in lieu

22 thereof ‘‘railroad carrier under section 20102(2) and

23 chapters 261 and 281’’; and

24 (2) by amending subsection (c) to read as fol25 lows:
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1 ‘‘(c) APPLICATION OF SUBTITLE IV.—Subtitle IV of

2 this title shall not apply to Amtrak, except for sections

3 11303, 11342(a), 11504(a) and (d), and 11707. Notwith4 standing the preceding sentence, Amtrak shall continue to

5 be considered an employer under the Railroad Retirement

6 Act of 1974, the Railroad Unemployment Insurance Act,

7 and the Railroad Retirement Tax Act.’’.

8 SEC. 604. WASTE DISPOSAL.

9 Section 24301(m)(1)(A) of title 49, United States

10 Code, is amended by striking ‘‘1996’’ and inserting in lieu

11 thereof ‘‘2001’’.

12 SEC. 605. ASSISTANCE FOR UPGRADING FACILITIES.

13 Section 24310 of title 49, United States Code, and

14 the item relating thereto in the table of sections of chapter

15 243 of such title, are repealed.

16 SEC. 606. RAIL SAFETY SYSTEM PROGRAM.

17 Section 24313 of title 49, United States Code, and

18 the item relating thereto in the table of sections of chapter

19 243 of such title, are repealed.

20 SEC. 607. DEMONSTRATION OF NEW TECHNOLOGY.

21 Section 24314 of title 49, United States Code, and

22 the item relating thereto in the table of sections of chapter

23 243 of such title, are repealed.
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1 SEC. 608. PROGRAM MASTER PLAN FOR BOSTON-NEW YORK

2 MAIN LINE.

3 (a) REPEAL.—Section 24903 of title 49, United

4 States Code, and the item relating thereto in the table of

5 sections of chapter 249 of such title, are repealed.

6 (b) CONFORMING AMENDMENT.—Section

7 24902(a)(1)(A) of title 49, United States Code, is amend8 ed by striking ‘‘and 40 minutes’’.

9 SEC. 609. BOSTON-NEW HAVEN ELECTRIFICATION

10 PROJECT.

11 Section 24902(f) of title 49, United States Code, is

12 amended—

13 (1) by inserting ‘‘(1)’’ before ‘‘Improvements

14 under’’; and

15 (2) by adding at the end the following new

16 paragraph:

17 ‘‘(2) Amtrak shall design and construct the elec18 trification system between Boston, Massachusetts, and

19 New Haven, Connecticut, to accommodate the installation

20 of a third mainline track between Davisville and Central

21 Falls, Rhode Island, to be used for double-stack freight

22 service to and from the Port of Davisville. Amtrak shall

23 also make clearance improvements on the existing main

24 line tracks to permit double stack service on this line, if

25 funds to defray the costs of clearance improvements be26 yond Amtrak’s own requirements for electrified passenger
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1 service are provided by public or private entities other

2 than Amtrak. Wherever practicable, Amtrak shall use por3 tal structures and realign existing tracks on undergrade

4 and overgrade bridges to minimize the width of the right5 of-way required to add the third track. Amtrak shall take

6 such other steps as may be required to coordinate and fa7 cilitate design and construction work. The Secretary of

8 Transportation may provide appropriate support to Am9 trak for carrying out this paragraph.’’.

10 SEC. 610. AMERICANS WITH DISABILITIES ACT OF 1990.

11 (a) APPLICATION TO AMTRAK.—Amtrak, and with

12 respect only to the facilities it jointly uses with Amtrak,

13 a commuter authority, shall not be subject to any require14 ment under section 242(a) (1) and (3) and (e)(2) of the

15 Americans With Disabilities Act of 1990 (42 U.S.C.

16 12162(a) (1) and (3) and (e)(2)) until January 1, 1998.

17 For stations jointly used by Amtrak and a commuter au18 thority, this subsection shall not affect the allocation of

19 costs between Amtrak and the commuter authority relat20 ing to accessibility improvements.

21 (b) CONFORMING AMENDMENT.—Section 24307 of

22 title 49, United States Code, is amended—

23 (1) by striking subsection (b); and

24 (2) by redesignating subsection (c) as sub25 section (b).
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1 SEC. 611. DEFINITIONS.

2 Section 24102 of title 49, United States Code, is

3 amended—

4 (1) by striking paragraphs (2), (3), and (11);

5 (2) by redesignating paragraphs (4) through

6 (8) as paragraphs (2) through (6), respectively;

7 (3) by inserting after paragraph (6), as so re8 designated by paragraph (2) of this section, the fol9 lowing new paragraph:

10 ‘‘(7) ‘rail passenger transportation’ means the

11 interstate, intrastate, or international transportation

12 of passengers by rail;’’;

13 (4) in paragraph (6), as so redesignated by

14 paragraph (2) of this section, by inserting ‘‘, includ15 ing a unit of State or local government,’’ after

16 ‘‘means a person’’; and

17 (5) by redesignating paragraphs (9) and (10)

18 as paragraphs (8) and (9), respectively.

19 SEC. 612. NORTHEAST CORRIDOR COST DISPUTE.

20 Section 1163 of the Northeast Rail Service Act of

21 1981 (45 U.S.C. 1111) is repealed.

22 SEC. 613. INSPECTOR GENERAL ACT OF 1978 AMENDMENT.

23 (a) AMENDMENT.—Section 8G(a)(2) of the Inspector

24 General Act of 1978 (5 U.S.C. App.) is amended by strik25 ing ‘‘Amtrak,’’.
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1 (b) AMTRAK NOT FEDERAL ENTITY.—Amtrak shall

2 not be considered a Federal entity for purposes of the In3 spector General Act of 1978.

4 SEC. 614. CONSOLIDATED RAIL CORPORATION.

5 Section 4023 of the Conrail Privatization Act (45

6 U.S.C. 1323), and the item relating thereto in the table

7 of contents of such Act, are repealed.

8 SEC. 615. INTERSTATE RAIL COMPACTS.

9 (a) CONSENT TO COMPACTS.—Congress grants con10 sent to States with an interest in a specific form, route,

11 or corridor of intercity passenger rail service (including

12 high speed rail service) to enter into interstate compacts

13 to promote the provision of the service, including—

14 (1) retaining an existing service or commencing

15 a new service;

16 (2) assembling rights-of-way; and

17 (3) performing capital improvements, includ18 ing—

19 (A) the construction and rehabilitation of

20 maintenance facilities and intermodal passenger

21 facilities;

22 (B) the purchase of locomotives; and

23 (C) operational improvements, including

24 communications, signals, and other systems.
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1 (b) FINANCING.—An interstate compact established

2 by States under subsection (a) may provide that, in order

3 to carry out the compact, the States may—

4 (1) accept contributions from a unit of State or

5 local government or a person;

6 (2) use any Federal or State funds made avail7 able for intercity passenger rail service (except funds

8 made available for the National Railroad Passenger

9 Corporation);

10 (3) on such terms and conditions as the States

11 consider advisable—

12 (A) borrow money on a short-term basis

13 and issue notes for the borrowing; and

14 (B) issue bonds; and

15 (4) obtain financing by other means permitted

16 under Federal or State law.

17 SEC. 616. CONFORMING AMENDMENT.

18 Section 10362(b) of title 49, United States Code, is

19 amended by striking paragraph (5) and redesignating

20 paragraphs (6) through (8) as paragraphs (5) through

21 (7), respectively.

22 SEC. 617. MAGNETIC LEVITATION TRACK MATERIALS.

23 The Secretary of Transportation shall transfer to

24 the State of Florida, pursuant to a grant or cooperative

25 agreement, title to aluminum reaction rail, power rail
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1 base, and other related materials (originally used in con2 nection with the Prototype Air Cushion Vehicle Program

3 between 1973 and 1976) located at the Transportation

4 Technology Center near Pueblo, Colorado, for use by the

5 State of Florida to construct a magnetic levitation track

6 in connection with a project or projects being undertaken

7 by American Maglev Technology, Inc., to demonstrate

8 magnetic levitation technology in the United States. If

9 the materials are not used for such construction within

10 3 years after the date of the enactment of this Act, title

11 to such materials shall revert to the United States.

12 SEC. 618. RAILROAD LOAN GUARANTEES.

13 (a) DECLARATION OF POLICY.—Section 101(a) of

14 the Railroad Revitalization and Regulatory Reform Act of

15 1976 (45 U.S.C. 801(a)(4)) is amended to read as follows:

16 ‘‘(4) continuation of service on, or preservation

17 of, light density lines that are necessary to continued

18 employment and community well-being throughout

19 the United States;’’.

20 (b) MAXIMUM RATE OF INTEREST.—Section 511(f)

21 of the Railroad Revitalization and Regulatory Reform Act

22 of 1976 (45 U.S.C. 831(f)) is amended by striking ‘‘shall

23 not exceed an annual percentage rate which the Secretary

24 determines to be reasonable, taking into consideration the

25 prevailing interest rates for similar obligations in the pri-
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1 vate market.’’ and inserting in lieu thereof ‘‘shall not ex2 ceed the annual percentage rate charged equivalent to the

3 cost of money to the United States.’’.

4 (c) MINIMUM REPAYMENT PERIOD AND PREPAY5 MENT PENALTIES.—Section 511(g)(2) of the Railroad Re6 vitalization and Regulatory Reform Act of 1976 (45

7 U.S.C. 831(g)(2)) is amended to read as follows:

8 ‘‘(2) payment of the obligation is required by its

9 terms to be made not less than 15 years not more

10 than 25 years from the date of its execution, with

11 no penalty imposed for prepayment after 5 years;’’.

12 (d) DETERMINATION OF REPAYABILITY.—Section

13 511(g)(5) of the Railroad Revitalization and Regulatory

14 Reform Act of 1976 (45 U.S.C. 831(g)(5)) is amended

15 to read as follows:

16 ‘‘(5) either the loan can reasonably be repaid by

17 the applicant or the loan is collaterallized at no more

18 than the current value of assets being financed

19 under this section to provide protection to the Unit20 ed States;’’.

21 TITLE VII—AUTHORIZATION OF

22 APPROPRIATIONS

23 SEC. 701. AUTHORIZATION OF APPROPRIATIONS.

24 (a) IN GENERAL.—Section 24104(a) of title 49,

25 United States Code, is amended to read as follows:
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1 ‘‘(a) IN GENERAL.—There are authorized to be ap2 propriated to the Secretary of Transportation—

3 ‘‘(1) $772,000,000 for fiscal year 1995;

4 ‘‘(2) $712,000,000 for fiscal year 1996;

5 ‘‘(3) $712,000,000 for fiscal year 1997;

6 ‘‘(4) $712,000,000 for fiscal year 1998; and

7 ‘‘(5) $403,000,000 for fiscal year 1999,

8 for the benefit of Amtrak for capital expenditures under

9 chapters 243 and 247 of this title, operating expenses, and

10 payments described in subsection (c)(1)(A) through (C).’’.

11 (b) ADDITIONAL AUTHORIZATIONS.—Section

12 24104(b) of title 49, United States Code, is amended to

13 read as follows:

14 ‘‘(b) ADDITIONAL AUTHORIZATIONS.—(1) In addi15 tion to amounts appropriated under subsection (a), there

16 are authorized to be appropriated to the Secretary of

17 Transportation—

18 ‘‘(A) $200,000,000 for fiscal year 1995;

19 ‘‘(B) $200,000,000 for fiscal year 1996;

20 ‘‘(C) $200,000,000 for fiscal year 1997;

21 ‘‘(D) $200,000,000 for fiscal year 1998; and

22 ‘‘(E) $200,000,000 for fiscal year 1999,

23 for the benefit of Amtrak to make capital expenditures

24 under chapter 249 of this title.
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1 ‘‘(2) In addition to amounts appropriated under sub2 section (a), there are authorized to be appropriated to the

3 Secretary of Transportation—

4 ‘‘(A) $21,500,000 for fiscal year 1995;

5 ‘‘(B) $10,000,000 for fiscal year 1996;

6 ‘‘(C) $10,000,000 for fiscal year 1997;

7 ‘‘(D) $10,000,000 for fiscal year 1998; and

8 ‘‘(E) $2,300,000 for fiscal year 1999,

9 for the benefit of Amtrak to be used for engineering, de10 sign, and construction activities to enable the James A.

11 Farley Post Office in New York, New York, to be used

12 as a train station and commercial center and for necessary

13 improvements and redevelopment of the existing Penn14 sylvania Station and associated service building in New

15 York, New York.’’.

16 (c) CONFORMING AMENDMENTS.—Section 24909 of

17 title 49, United States Code, and the item relating thereto

18 in the table of sections of chapter 249 of such title, are

19 repealed.

20 (d) GUARANTEE OF OBLIGATIONS.—There are au21 thorized to be appropriated to the Secretary of Transpor22 tation—

23 (1) $50,000,000 for fiscal year 1996;

24 (2) $50,000,000 for fiscal year 1997;

25 (3) $50,000,000 for fiscal year 1998; and
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1 (4) $50,000,000 for fiscal year 1999,

2 for guaranteeing obligations of Amtrak under section 511

3 of the Railroad Revitalization and Regulatory Reform Act

4 of 1976 (45 U.S.C. 831).

5 (e) CONDITIONS FOR GUARANTEE OF OBLIGA6 TIONS.—Section 511(i) of the Railroad Revitalization and

7 Regulatory Reform Act of 1976 (45 U.S.C. 831(i)) is

8 amended by adding at the end the following new para9 graph:

10 ‘‘(4) The Secretary shall not require, as a condition

11 for guarantee of an obligation under this section, that all

12 preexisting secured obligations of an obligor be subordi13 nated to the rights of the Secretary in the event of a de14 fault.’’.

Passed the House of Representatives November 30,

1995.

Attest:

Clerk.