A bill to amend the limitation on liability for passenger rail accidents or incidents under section 28103 of title 49, United States Code, and for other purposes.

To amend the limitation on liability for passenger rail accidents or incidents under section 28103 of title 49, United States Code, and for other purposes. 1. Accident liability (a) Amendments Section 28103 of title 49, United States Code, is amended— (1) in subsection (a)— (A) in paragraph (2), by striking $200,000,000 $500,000,000, except as provided in paragraph (3) (B) by adding at the end the following: (3) Subject to paragraph (4), the liability cap under paragraph (2) shall be adjusted annually by the Secretary of Transportation to reflect changes in the Consumer Price Index-All Urban Consumers. (4) Not later than 2 years after the date of enactment of this paragraph, the Secretary— (A) shall consider whether additional adjustments are needed to the liability cap under paragraph (2); (B) shall consider whether to establish or adjust mandatory coverage for an entity described in subsection (e)(1)(A); and (C) may promulgate regulations. ; and (2) in subsection (c), by striking $200,000,000 per accident or incident $500,000,000 per accident or incident, unless the Secretary, by regulation, determines that a different minimum level of financial responsibility is necessary or sufficient to satisfy claims under this section. (b) Effective date The amendments made by subsection (a) shall be effective for any passenger rail accident or incident occurring on or after May 12, 2015. 2. Reimbursement (a) Reimbursement (1) In general The Secretary of Transportation may make a grant to an entity described in section 28103(e)(1)(A) of title 49, United States Code, to provide a reasonable reimbursement to offset any incremental increase in the cost of insurance, if the Secretary determines that the additional cost of insurance is a result of the amendments to that section made by section 1 of this Act. (2) Determinations In determining the amount of a reimbursement under paragraph (1), the Secretary shall consider such factors as the entity's ability to meet the increased costs and impacts on safety and service. (b) Authorization of appropriations There is authorized to be appropriated such sums as are necessary to carry out subsection (a).

Summary: This bill revises the limitation on passenger rail transportation liability to increase from $200 million to $500 million, adjusted annually for inflation, the aggregate allowable awards to all rail passengers, against all defendants, for all claims, including any for punitive damages, arising from a single accident or incident. The Department of Transportation (DOT) must consider, within two years after enactment of this Act, whether to: make any needed additional adjustments to the liability cap; and establish or adjust mandatory coverage for Amtrak, any high-speed railroad authority or operator, any commuter authority or operator, any rail carrier, or any state (listed entities). The total minimum liability coverage Amtrak must maintain for claims through insurance and self-insurance shall increase from $200 million per accident or incident to $500 million, unless DOT, by regulation, determines that a different minimum level of financial responsibility is necessary or sufficient to satisfy claims. DOT may make a grant to Amtrak or another listed entity as a reasonable reimbursement, considering ability to meet increased costs and impacts on safety and service, to offset any incremental increase in the cost of insurance resulting from this Act.