186
(2) A State may pay more than its required percentage share of the costs
of a project under this chapter. When a State, or a person acting for a
State, pays more than the State share of the costs of its projects during
a fiscal year, the excess amount shall be applied to the State share for the
costs of the State projects for later fiscal years.
(b) AGREEMENTS TO COMBINE AMOUNTS.—States may agree to combine
any part of the amounts made available under this chapter to carry out a
project that is eligible for assistance under this chapter when—
(1) the project will benefit each State making the agreement; and
(2) the agreement is not a violation of State law.
§ 22106. Limitations on financial assistance
(a) GRANTS
AND LOANS.—A State shall use financial assistance for
projects under this chapter to make a grant or lend money to the owner
of rail property, or a rail carrier providing rail transportation, related to a
project being assisted. The State shall decide on the financial terms of the
grant or loan, except that the time for making grant advances shall comply
with regulations of the Secretary of the Treasury.
(b) HOLDING AND USE OF GOVERNMENT’S SHARE.—The State shall
place the United States Government’s share of money that is repaid in an
interest-bearing account. However, the Secretary of Transportation may
allow a borrower to place that money, for the benefit of the State, in a bank
designated by the Secretary of the Treasury under section 10 of the Act
of June 11, 1942 (12 U.S.C. 265). The State shall use the money and accu-
mulated interest to make other grants and loans under this chapter.
(c) PAYMENT OF UNUSED MONEY AND ACCUMULATED INTEREST.—The
State may pay the Secretary of Transportation the Government’s share of
unused money and accumulated interest at any time. However, the State
must pay the unused money and accumulated interest to the Secretary when
the State ends its participation under this chapter.
(d) ENCOURAGING PARTICIPATION.—To the maximum extent possible,
the State shall encourage the participation of shippers, rail carriers, and
local communities in paying the State share of assistance costs.
(e) RETENTION OF CONTINGENT INTEREST.—Each State shall retain a
contingent interest (redeemable preference shares) for the Government’s
share of amounts in a rail line receiving assistance under this chapter. The
State may collect its share of the amounts used for the rail line if—
(1) an application for abandonment of the rail line is filed under
chapter 109 of this title; or
(2) the rail line is sold or disposed of after it has received assistance
under this chapter.
187
§ 22107. Records, audits, and information
(a) RECORDS.—Each recipient of financial assistance through an arrange-
ment under this chapter shall keep records required by the Secretary of
Transportation. The records shall be kept for 3 years after a project is com-
pleted and shall disclose—
(1) the amount of, and disposition by the recipient, of the assistance;
(2) the total costs of the project for which the assistance was given
or used;
(3) the amount of that part of the costs of the project paid by other
sources; and
(4) any other records that will make an effective audit easier.
(b) AUDITS.—The Secretary and the Comptroller General shall make reg-
ular financial and performance audits, as provided under chapter 75 of title
31, of activities and transactions assisted under this chapter.
(c) INFORMATION.—The Interstate Commerce Commission shall provide
the Secretary with information the Secretary requests to assist in carrying
out this chapter. The Commission shall provide the information not later
than 30 days after receiving a request from the Secretary.
(d) LIST OF RAIL LINES.—Not later than August 1 of each year, each
rail carrier subject to subchapter I of chapter 105 of this title shall submit
to the Secretary a list of the rail lines of the carrier that carried not more
than 5,000,000 gross ton-miles of freight a mile in the prior year.
§ 22108. Authorization of appropriations
(a) GENERAL.—(1) Not more than the following amounts may be appro-
priated to the Secretary of Transportation to carry out this chapter:
(A) $25,000,000 for the fiscal year ending September 30, 1993.
(B) $30,000,000 for the fiscal year ending September 30, 1994.
(2) Amounts appropriated under paragraph (1) of this subsection remain
available until expended.
(3) No amount may be appropriated to the Secretary for any period after
September 30, 1994, to carry out this chapter.
(b) DISTRIBUTION OF AMOUNTS.—The Secretary shall establish proce-
dures necessary to ensure that amounts available to the Secretary for
projects under this chapter are distributed not later than April 1 of the fis-
cal year for which the amounts are appropriated. If any amounts are not
distributed by April 1, the Secretary shall report to the Committee on En-
ergy and Commerce of the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate on the status of those
amounts and the reasons for the delay in distribution.
(c) AVAILABILITY OF OTHER AMOUNTS.—Amounts appropriated to carry
out section 5(i) of the Department of Transportation Act for fiscal year
188
1990 that are not applied for or that remain unobligated on January 1,
1991, are available to the Secretary for projects under this chapter.
PART C—PASSENGER TRANSPORTATION
CHAPTER 241—GENERAL
Sec.
24101.
Findings, purpose, and goals.
24102.
Definitions.
24103.
Enforcement.
24104.
Authorization of appropriations.
§ 24101. Findings, purpose, and goals
(a) FINDINGS.—(1) Public convenience and necessity require that Am-
trak, to the extent its budget allows, provide modern, cost-efficient, and en-
ergy-efficient intercity rail passenger transportation between crowded urban
areas and in other areas of the United States.
(2) Rail passenger transportation can help alleviate overcrowding of air-
ways and airports and on highways.
(3) A traveler in the United States should have the greatest possible
choice of transportation most convenient to the needs of the traveler.
(4) A greater degree of cooperation is necessary among Amtrak, other rail
carriers, State, regional, and local governments, the private sector, labor or-
ganizations, and suppliers of services and equipment to Amtrak to achieve
a performance level sufficient to justify expending public money.
(5) Modern and efficient commuter rail passenger transportation is im-
portant to the viability and well-being of major urban areas and to the en-
ergy conservation and self-sufficiency goals of the United States.
(6) As a rail passenger transportation entity, Amtrak should be available
to operate commuter rail passenger transportation through its subsidiary,
Amtrak Commuter, under contract with commuter authorities that do not
provide the transportation themselves as part of the governmental function
of the State.
(7) The Northeast Corridor is a valuable resource of the United States
used by intercity and commuter rail passenger transportation and freight
transportation.
(8) Greater coordination between intercity and commuter rail passenger
transportation is required.
(b) PURPOSE.—By using innovative operating and marketing concepts,
Amtrak shall provide intercity and commuter rail passenger transportation
that completely develops the potential of modern rail transportation to meet
the intercity and commuter passenger transportation needs of the United
States.
(c) GOALS.—Amtrak shall—
(1) use its best business judgment in acting to minimize United
States Government subsidies, including—
189
(A) increasing fares;
(B) increasing revenue from the transportation of mail and ex-
press;
(C) reducing losses on food service;
(D) improving its contracts with operating rail carriers;
(E) reducing management costs; and
(F) increasing employee productivity;
(2) minimize Government subsidies by encouraging State, regional,
and local governments and the private sector to share the cost of pro-
viding rail passenger transportation, including the cost of operating fa-
cilities;
(3) carry out strategies to achieve immediately maximum productiv-
ity and efficiency consistent with safe and efficient transportation;
(4) operate Amtrak trains, to the maximum extent feasible, to all
station stops within 15 minutes of the time established in public time-
tables;
(5) develop transportation on rail corridors subsidized by States and
private parties;
(6) implement schedules based on a systemwide average speed of at
least 60 miles an hour that can be achieved with a degree of reliability
and passenger comfort;
(7) encourage rail carriers to assist in improving intercity rail pas-
senger transportation;
(8) improve generally the performance of Amtrak through com-
prehensive and systematic operational programs and employee incen-
tives;
(9) carry out policies that ensure equitable access to the Northeast
Corridor by intercity and commuter rail passenger transportation;
(10) coordinate the uses of the Northeast Corridor, particularly
intercity and commuter rail passenger transportation; and
(11) maximize the use of its resources, including the most cost-effec-
tive use of employees, facilities, and real property.
(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 busi-
ness judgment and designed to maximize its revenues and minimize Govern-
ment subsidies.
§ 24102. Definitions
In this part—
(1) ‘‘auto-ferry transportation’’ means intercity rail passenger trans-
portation—
190
(A) of automobiles or recreational vehicles and their occupants;
and
(B) when space is available, of used unoccupied vehicles.
(2) ‘‘avoidable loss’’ means the avoidable costs of providing rail pas-
senger 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) ‘‘commuter authority’’ means a State, local, or regional entity es-
tablished to provide, or make a contract providing for, commuter rail
passenger transportation.
(5) ‘‘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) ‘‘intercity rail passenger transportation’’ means rail passenger
transportation, except commuter rail passenger transportation.
(7) ‘‘Northeast Corridor’’ means Connecticut, Delaware, the District
of Columbia, Maryland, Massachusetts, New Jersey, New York, Penn-
sylvania, and Rhode Island.
(8) ‘‘rail carrier’’ means a person providing rail transportation for
compensation.
(9) ‘‘rate’’ means a rate, fare, or charge for rail transportation.
(10) ‘‘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.
§ 24103. Enforcement
(a) GENERAL.—(1) Except as provided in paragraph (2) of this sub-
section, only the Attorney General may bring a civil action for equitable re-
lief in a district court of the United States when Amtrak or a rail carrier—
(A) engages in or adheres to an action, practice, or policy inconsist-
ent with this part;
191
(B) obstructs or interferes with an activity authorized under this
part;
(C) refuses, fails, or neglects to discharge its duties and responsibil-
ities under this part; or
(D) threatens—
(i) to engage in or adhere to an action, practice, or policy incon-
sistent with this part;
(ii) to obstruct or interfere with an activity authorized by this
part; or
(iii) to refuse, fail, or neglect to discharge its duties and respon-
sibilities under this part.
(2) An employee affected by any conduct or threat referred to in para-
graph (1) of this subsection, or an authorized employee representative, may
bring the civil action if the conduct or threat involves a labor agreement.
(b) REVIEW OF DISCONTINUANCE OR REDUCTION.—A discontinuance of
a route, a train, or transportation, or a reduction in the frequency of trans-
portation, by Amtrak is reviewable only in a civil action for equitable relief
brought by the Attorney General.
(c) VENUE.—Except as otherwise prohibited by law, a civil action under
this section may be brought in the judicial district in which Amtrak or the
rail carrier resides or is found.
§ 24104. Authorization of appropriations
(a) CAPITAL ACQUISITION
AND CORRIDOR DEVELOPMENT.—(1) Not
more than $250,000,000 may be appropriated to the Secretary of Transpor-
tation for each of the fiscal years ending September 30, 1993, and Septem-
ber 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 transpor-
tation 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 cor-
ridors between cities undergoing significant population growth and in which
the transportation reasonably can be expected to provide travel times com-
parable with other surface transportation modes. An amount may be ex-
192
pended 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 roll-
ing 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 transpor-
tation. 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 roll-
ing 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 trans-
portation 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 sub-
paragraph (A) of this paragraph is deemed not to be an operating expense
when calculating the revenue-to-operating expense ratio of Amtrak.
(c) MANDATORY PAYMENTS.—(1) Not more than $150,000,000 for the
fiscal year ending September 30, 1993, and amounts that may be necessary
for the fiscal year ending September 30, 1994, may be appropriated to the
Secretary to pay—
(A) tax liabilities under section 3221 of the Internal Revenue Code
of 1986 (26 U.S.C. 3221) due in those fiscal years that are more than
193
the amount needed for benefits for individuals who retire from Amtrak
and for their beneficiaries;
(B) obligations of Amtrak under section 8(a) of the Railroad Unem-
ployment Insurance Act (45 U.S.C. 358(a)) due in those fiscal years
that are more than obligations of Amtrak calculated on an experience-
related basis; and
(C) obligations of Amtrak due under section 3321 of the Code (26
U.S.C. 3321).
(2) Amounts appropriated under this subsection are not a United States
Government subsidy of Amtrak.
(d) PAYMENT TO AMTRAK.—Amounts appropriated under this section
shall be paid to Amtrak under the budget request of the Secretary as ap-
proved or modified by Congress when the amounts are appropriated. A pay-
ment 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 ap-
propriated 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.
(e) AVAILABILITY
OF AMOUNTS
AND EARLY APPROPRIATIONS.—(1)
Amounts appropriated under this section remain available until expended.
(2) Amounts for capital acquisitions and improvements may be appro-
priated in a fiscal year before the fiscal year in which the amounts will be
obligated.
(f) LIMITATIONS ON USE.—Amounts appropriated under this section may
not be used to subsidize operating losses of commuter rail passenger or rail
freight transportation.
CHAPTER 243—AMTRAK
Sec.
24301.
Status and applicable laws.
24302.
Board of directors.
24303.
Officers.
24304.
Capitalization.
24305.
General authority.
24306.
Mail, express, and auto-ferry transportation.
24307.
Special transportation.
24308.
Use of facilities and providing services to Amtrak.
24309.
Retaining and maintaining facilities.
24310.
Assistance for upgrading facilities.
24311.
Acquiring interests in property by eminent domain.
24312.
Labor standards.
24313.
Rail safety system program.
24314.
Demonstration of new technology.
24315.
Reports and audits.
194
§ 24301. Status and applicable laws
(a) STATUS.—Amtrak—
(1) is a rail carrier under section 10102 of this title;
(2) shall be operated and managed as a for-profit corporation; and
(3) is not a department, agency, or instrumentality of the United
States Government.
(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
when deciding original jurisdiction of the district courts of the United States
in a civil action.
(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 oper-
ations; and
(E) issuance of securities or the assumption of an obligation or li-
ability 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 Inter-
state 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.
(d) APPLICATION OF SAFETY AND EMPLOYEE RELATIONS LAWS AND
REGULATIONS.—Laws and regulations governing safety, employee represen-
tation 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 common carrier
subject to subchapter I of chapter 105 of this title apply to Amtrak.
(e) APPLICATION OF CERTAIN ADDITIONAL LAWS.—Section 552 of title
5, this part, and, to the extent consistent with this part, the District of Co-
195
lumbia Business Corporation Act (D.C. Code § 29–301 et seq.) apply to
Amtrak.
(f) LAWS GOVERNING LEASES AND CONTRACTS.—The laws of the Dis-
trict of Columbia govern leases and contracts of Amtrak, regardless of
where they are executed.
(g) NONAPPLICATION OF RATE, ROUTE, AND SERVICE LAWS.—A State
or other law related to rates, routes, or service does not apply to Amtrak
in connection with rail passenger transportation.
(h) NONAPPLICATION OF PAY PERIOD LAWS.—A State or local law relat-
ed to pay periods or days for payment of employees does not apply to Am-
trak. Except when otherwise provided under a collective bargaining agree-
ment, an employee of Amtrak shall be paid at least as frequently as the
employee was paid on October 1, 1979.
(i) PREEMPTION RELATED TO EMPLOYEE WORK REQUIREMENTS.—A
State may not adopt or continue in force a law, rule, regulation, order, or
standard requiring Amtrak to employ a specified number of individuals to
perform a particular task, function, or operation.
(j) NONAPPLICATION OF LAWS ON JOINT USE OR OPERATION OF FACILI-
TIES AND EQUIPMENT.—Prohibitions of law applicable to an agreement for
the joint use or operation of facilities and equipment necessary to provide
quick and efficient rail passenger transportation do not apply to a person
making an agreement with Amtrak to the extent necessary to allow the per-
son to make and carry out obligations under the agreement.
(k) 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; 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.
(B) ‘‘Amtrak’’ includes a rail carrier subsidiary of Amtrak and a les-
sor or lessee of Amtrak or one of its rail carrier subsidiaries.
(2) Amtrak is not required to pay an additional tax because of an expend-
iture to acquire or improve real property, equipment, a facility, or right-of-
way material or structures used in providing rail passenger transportation,
even if that use is indirect.
(l ) EXEMPTION FROM TAXES LEVIED AFTER SEPTEMBER 30, 1981.—
(1) Amtrak or a rail carrier subsidiary of Amtrak 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 after September 30, 1981. However, Amtrak is
196
not exempt under this subsection from a tax or fee that it was required to
pay as of September 10, 1982.
(2) The district courts of the United States have original jurisdiction over
a civil action Amtrak brings to enforce this subsection and may grant equi-
table or declaratory relief requested by Amtrak.
(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 appro-
priations—
(A) the retrofit program shall be completed not later than October
15, 1996; and
(B) a car that does not provide for the discharge of human waste
only at a servicing facility shall be removed from service after that
date.
(2) Section 361 of the Public Health Service Act (42 U.S.C. 264) and
other laws of the United States, States, and local governments do not apply
to waste disposal from rail carrier vehicles operated in intercity rail pas-
senger transportation. The district courts of the United States have original
jurisdiction over a civil action Amtrak brings to enforce this paragraph and
may grant equitable or declaratory relief requested by Amtrak.
(n) RAIL TRANSPORTATION TREATED EQUALLY.—When authorizing
transportation in the continental United States for an officer, employee, or
member of the uniformed services of a department, agency, or instrumental-
ity of the Government, the head of that department, agency, or instrumen-
tality shall consider rail transportation (including transportation by extra-
fare trains) the same as transportation by another authorized mode. The
Administrator of General Services shall include Amtrak in the contract air
program of the Administrator in markets in which transportation provided
by Amtrak is competitive with other carriers on fares and total trip times.
§ 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:
197
(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 trans-
portation. 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 com-
muter authority for which Amtrak Commuter provides commuter rail
passenger transportation under section 24505 of this title and one indi-
vidual 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 transpor-
tation or makes a contract with an operator (except Amtrak Com-
muter), except that—
(i) one of the individuals selected must have been nominated by
a commuter authority for which Amtrak Commuter provides com-
muter rail transportation; or
(ii) if Amtrak Commuter does not provide commuter rail pas-
senger transportation for any authority, the 2 individuals shall be
selected from a list of 5 individuals submitted by commuter au-
thorities 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 quali-
fied. 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.
198
(c) CONFLICTS OF INTEREST.—When serving on the board, a director ap-
pointed 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 transpor-
tation.
(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 ex-
penses 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 indi-
vidual 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 op-
eration of Amtrak. The bylaws shall be consistent with this part and the
articles of incorporation.
§ 24303. Officers
(a) APPOINTMENT AND TERMS.—Amtrak has a President and other offi-
cers that are named and appointed by the board of directors of Amtrak.
An officer of Amtrak must be a citizen of the United States. Officers of
Amtrak serve at the pleasure of the board.
(b) PAY.—The board may fix the pay of the officers of Amtrak. An offi-
cer may not be paid more than the general level of pay for officers of rail
carriers with comparable responsibility.
(c) CONFLICTS OF INTEREST.—When employed by Amtrak, an officer
may not have a financial or employment relationship with another rail car-
rier, 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.
§ 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 divi-
dend. 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
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(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 pur-
poses.
(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 per-
cent 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 pay-
ment 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 re-
quired 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 liq-
uidation interest superior to preferred stock issued to the Secretary or se-
cured by a lien on property of Amtrak may be incurred when preferred
stock issued to the Secretary is outstanding only if the Secretary consents.
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(g) INSPECTION RIGHTS.—Stockholders of Amtrak have the rights of in-
specting and copying set forth in section 45(b) of the District of Columbia
Business Corporation Act (D.C. Code § 29–345(b)) regardless of the
amount of stock they hold.
§ 24305. General authority
(a) ACQUISITION AND OPERATION OF EQUIPMENT AND FACILITIES.—(1)
Amtrak may acquire, operate, maintain, and make contracts for the oper-
ation and maintenance of equipment and facilities necessary for intercity
and commuter rail passenger transportation, the transportation of mail and
express, and auto-ferry transportation.
(2) Amtrak shall operate and control directly, to the extent practicable,
all aspects of the rail passenger transportation it provides.
(b) MAINTENANCE AND REHABILITATION.—Amtrak may maintain and
rehabilitate rail passenger equipment and shall maintain a regional mainte-
nance 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 oper-
ational 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.
(c) MISCELLANEOUS AUTHORITY.—Amtrak may—
(1) make and carry out appropriate agreements;
(2) transport mail and express and shall use all feasible methods to
obtain the bulk mail business of the United States Postal Service;
(3) improve its reservation system and advertising;
(4) provide food and beverage services on its trains only if revenues
from the services each year at least equal the cost of providing the
services;
(5) conduct research, development, and demonstration programs re-
lated to the mission of Amtrak; and
(6) buy or lease rail rolling stock and develop and demonstrate im-
proved rolling stock.
(d) THROUGH ROUTES AND JOINT FARES.—(1) Establishing through
routes and joint fares between Amtrak and other intercity rail passenger
carriers and motor carriers of passengers is consistent with the public inter-
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est and the transportation policy of the United States. Congress encourages
establishing those routes and fares.
(2) Amtrak may establish through routes and joint fares with any domes-
tic or international motor carrier, air carrier, or water carrier.
(e) RAIL POLICE.—Amtrak may employ rail police to provide security for
rail passengers and property of Amtrak. Rail police employed by Amtrak
who have complied with a State law establishing requirements applicable to
rail police or individuals employed in a similar position may be employed
without regard to the law of another State containing those requirements.
(f) DOMESTIC BUYING PREFERENCES.—(1) In this subsection, ‘‘United
States’’ means the States, territories, and possessions of the United States
and the District of Columbia.
(2) Amtrak shall buy only—
(A) unmanufactured articles, material, and supplies mined or pro-
duced in the United States; or
(B) manufactured articles, material, and supplies manufactured in
the United States substantially from articles, material, and supplies
mined, produced, or manufactured in the United States.
(3) Paragraph (2) of this subsection applies only when the cost of those
articles, material, or supplies bought is at least $1,000,000.
(4) On application of Amtrak, the Secretary of Transportation may ex-
empt Amtrak from this subsection if the Secretary decides that—
(A) for particular articles, material, or supplies—
(i) the requirements of paragraph (2) of this subsection are in-
consistent with the public interest;
(ii) the cost of imposing those requirements is unreasonable; or
(iii) the articles, material, or supplies, or the articles, material,
or supplies from which they are manufactured, are not mined, pro-
duced, or manufactured in the United States in sufficient and rea-
sonably available commercial quantities and are not of a satisfac-
tory quality; or
(B) rolling stock or power train equipment cannot be bought and de-
livered in the United States within a reasonable time.
§ 24306. Mail, express, and auto-ferry transportation
(a) ACTIONS TO INCREASE REVENUES.—Amtrak shall take necessary ac-
tion 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 Unit-
ed States Government shall assist in carrying out this section.
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(b) AUTHORITY
OF OTHERS TO PROVIDE AUTO-FERRY TRANSPOR-
TATION.—(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 Com-
mission if the Commission finds that the auto-ferry transportation—
(A) will not impair the ability of Amtrak to reduce its losses or in-
crease 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 Am-
trak in providing auto-ferry transportation because a State or local law or
regulation makes the transportation unlawful.
§ 24307. Special transportation
(a) REDUCED FARE PROGRAM.—Amtrak shall maintain a reduced fare
program for the following:
(1) individuals at least 65 years of age.
(2) individuals (except alcoholics and drug abusers) who—
(A) have a physical or mental impairment that substantially
limits a major life activity of the individual;
(B) have a record of an impairment; or
(C) are regarded as having an impairment.
(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 com-
ply 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 individ-
uals when getting on and off trains and in terminal areas.
(c) EMPLOYEE TRANSPORTATION.—(1) In this subsection, ‘‘rail carrier
employee’’ means—
(A) an active full-time employee of a rail carrier or terminal com-
pany and includes an employee on furlough or leave of absence;
(B) a retired employee of a rail carrier or terminal company; and
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(C) a dependent of an employee referred to in clause (A) or (B) of
this paragraph.
(2) Amtrak shall ensure that a rail carrier employee eligible for free or
reduced-rate rail transportation on April 30, 1971, under an agreement in
effect on that date is eligible, to the greatest extent practicable, for free or
reduced-rate intercity rail passenger transportation provided by Amtrak
under this part, if space is available, on terms similar to those available on
that date under the agreement. However, Amtrak may apply to all rail car-
rier employees eligible to receive free or reduced-rate transportation under
any agreement a single systemwide schedule of terms that Amtrak decides
applied to a majority of employees on that date under all those agreements.
Unless Amtrak and a rail carrier make a different agreement, the carrier
shall reimburse Amtrak at the rate of 25 percent of the systemwide average
monthly yield of each revenue passenger-mile. The reimbursement is in
place of costs Amtrak incurs related to free or reduced-rate transportation,
including liability related to travel of a rail carrier employee eligible for free
or reduced-rate transportation.
(3) This subsection does not prohibit the Interstate Commerce Commis-
sion from ordering retroactive relief in a proceeding begun or reopened after
October 1, 1981.
§ 24308. Use of facilities and providing services to Amtrak
(a) GENERAL AUTHORITY.—(1) Amtrak may make an agreement with a
rail carrier or regional transportation authority to use facilities of, and have
services provided by, the carrier or authority under terms on which the par-
ties agree. The terms shall include a penalty for untimely performance.
(2)(A) If the parties cannot agree and if the Interstate Commerce Com-
mission finds it necessary to carry out this part, the Commission shall—
(i) order that the facilities be made available and the services pro-
vided to Amtrak; and
(ii) prescribe reasonable terms and compensation for using the facili-
ties and providing the services.
(B) When prescribing reasonable compensation under subparagraph (A)
of this paragraph, the Commission shall consider quality of service as a
major factor when determining whether, and the extent to which, the
amount of compensation shall be greater than the incremental costs of using
the facilities and providing the services.
(C) The Commission shall decide the dispute not later than 90 days after
Amtrak submits the dispute to the Commission.
(3) Amtrak’s right to use the facilities or have the services provided is
conditioned on payment of the compensation. If the compensation is not
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paid promptly, the rail carrier or authority entitled to it may bring an ac-
tion against Amtrak to recover the amount owed.
(4) Amtrak shall seek immediate and appropriate legal remedies to en-
force its contract rights when track maintenance on a route over which Am-
trak operates falls below the contractual standard.
(b) OPERATING DURING EMERGENCIES.—To facilitate operation by Am-
trak during an emergency, the Commission, on application by Amtrak, shall
require a rail carrier to provide facilities immediately during the emergency.
The Commission then shall promptly prescribe reasonable terms, including
indemnification of the carrier by Amtrak against personal injury risk to
which the carrier may be exposed. The rail carrier shall provide the facilities
for the duration of the emergency.
(c) PREFERENCE OVER FREIGHT TRANSPORTATION.—Except in an
emergency, intercity and commuter rail passenger transportation provided
by or for Amtrak has preference over freight transportation in using a rail
line, junction, or crossing unless the Secretary of Transportation orders oth-
erwise under this subsection. A rail carrier affected by this subsection may
apply to the Secretary for relief. If the Secretary, after an opportunity for
a hearing under section 553 of title 5, decides that preference for intercity
and commuter rail passenger transportation materially will lessen the qual-
ity of freight transportation provided to shippers, the Secretary shall estab-
lish the rights of the carrier and Amtrak on reasonable terms.
(d) ACCELERATED SPEEDS.—If a rail carrier refuses to allow accelerated
speeds on trains operated by or for Amtrak, Amtrak may apply to the Sec-
retary for an order requiring the carrier to allow the accelerated speeds. The
Secretary shall decide whether accelerated speeds are unsafe or impractica-
ble and which improvements would be required to make accelerated speeds
safe and practicable. After an opportunity for a hearing, the Secretary shall
establish the maximum allowable speeds of Amtrak trains on terms the Sec-
retary decides are reasonable.
(e) ADDITIONAL TRAINS.—(1) When a rail carrier does not agree to pro-
vide, or allow Amtrak to provide, for the operation of additional trains over
a rail line of the carrier, Amtrak may apply to the Secretary for an order
requiring the carrier to provide or allow for the operation of the requested
trains. After a hearing on the record, the Secretary may order the carrier,
within 60 days, to provide or allow for the operation of the requested trains
on a schedule based on legally permissible operating times. However, if the
Secretary decides not to hold a hearing, the Secretary, not later than 30
days after receiving the application, shall publish in the Federal Register
the reasons for the decision not to hold the hearing.
(2) The Secretary shall consider—