cessor of that individual was appointed is appointed for 
the remainder of that term. A vacancy required to be filled 
by appointment under subsection (a)(1)(C) must be filled 
not later than 120 days after the vacancy occurs. 
‘‘(d) QUORUM.—A majority of the members serving 
shall constitute a quorum for doing business. 
‘‘(e) BYLAWS.—The Board may adopt and amend by-
laws governing the operation of Amtrak. The bylaws shall 
be consistent with this part and the articles of incorpora-
tion.’’. 
(b) EFFECTIVE
DATE
FOR
DIRECTORS’ PROVI-
SION.—The amendment made by subsection (a) shall take 
effect 6 months after the date of enactment of this Act. 
The members of the Amtrak Board serving on the date 
of enactment of this Act may continue to serve for the 
remainder of the term to which they were appointed. 
SEC. 203. ESTABLISHMENT OF IMPROVED FINANCIAL AC-
COUNTING SYSTEM. 
(a) IN GENERAL.—The Amtrak Board of Directors— 
(1) may employ an independent financial con-
sultant with experience in railroad accounting to as-
sist Amtrak in improving Amtrak’s financial ac-
counting and reporting system and practices;
(2) shall implement a modern financial account-
ing and reporting system not later than 1 year after 
the date of enactment of this Act; and 
(3) shall, not later than 90 days after the end 
of each fiscal year through fiscal year 2013— 
(A) submit to Congress a comprehensive 
report that allocates all of Amtrak’s revenues 
and costs to each of its routes, each of its lines 
of business, and each major activity within each 
route and line of business activity, including— 
(i) train operations; 
(ii) equipment maintenance; 
(iii) food service; 
(iv) sleeping cars; 
(v) ticketing; and 
(vi) reservations; 
(B) include the report described in sub-
paragraph (A) in Amtrak’s annual report; and 
(C) post such report on Amtrak’s website. 
(b) VERIFICATION OF SYSTEM; REPORT.—The In-
spector General of the Department of Transportation shall 
review the accounting system designed and implemented 
under subsection (a) to ensure that it accomplishes the 
purposes for which it is intended. The Inspector General 
shall report his findings and conclusions, together with
any recommendations, to the House of Representatives 
Committee on Transportation and Infrastructure and the 
Senate Committee on Commerce, Science, and Transpor-
tation. 
(c) CATEGORIZATION
OF
REVENUES
AND
EX-
PENSES.— 
(1) IN GENERAL.—In carrying out subsection 
(a), the Amtrak Board of Directors shall separately 
categorize routes, assigned revenues, and attrib-
utable expenses by type of service, including long 
distance routes, State-sponsored routes, commuter 
contract routes, and Northeast Corridor routes. 
(2) NORTHEAST CORRIDOR.—Amtrak revenues 
generated by freight and commuter railroads oper-
ating on the Northeast Corridor shall be separately 
listed to include the charges per car mile assessed by 
Amtrak to other freight and commuter railroad enti-
ties. 
(3) FIXED OVERHEAD EXPENSES.—Fixed over-
head expenses that are not directly assigned or at-
tributed to any route (or group of routes) shall be 
listed separately by line item and expense category. 
SEC. 204. DEVELOPMENT OF 5-YEAR FINANCIAL PLAN. 
(a) DEVELOPMENT OF 5-YEAR FINANCIAL PLAN.— 
The Amtrak Board of Directors shall submit an annual
budget and business plan for Amtrak, and a 5-year finan-
cial plan for the fiscal year to which that budget and busi-
ness plan relate and the subsequent 4 years, prepared in 
accordance with this section, to the Secretary of Transpor-
tation and the Inspector General of the Department of 
Transportation no later than— 
(1) the first day of each fiscal year beginning 
after the date of enactment of this Act; or 
(2) the date that is 60 days after the date of 
enactment of an appropriation Act for the fiscal 
year, if later. 
(b) CONTENTS OF 5-YEAR FINANCIAL PLAN.—The 
5-year financial plan for Amtrak shall include, at a min-
imum— 
(1) all projected revenues and expenditures for 
Amtrak, including governmental funding sources; 
(2) projected ridership levels for all Amtrak 
passenger operations; 
(3) revenue and expenditure forecasts for non- 
passenger operations; 
(4) capital funding requirements and expendi-
tures necessary to maintain passenger service which 
will accommodate predicted ridership levels and pre-
dicted sources of capital funding;
(5) operational funding needs, if any, to main-
tain current and projected levels of passenger serv-
ice, including state-supported routes and predicted 
funding sources; 
(6) projected capital and operating require-
ments, ridership, and revenue for any new passenger 
service operations or service expansions; 
(7) an assessment of the continuing financial 
stability of Amtrak, such as Amtrak’s ability to effi-
ciently manage its workforce, and Amtrak’s ability 
to effectively provide passenger train service; 
(8) estimates of long-term and short-term debt 
and associated principal and interest payments (both 
current and anticipated); 
(9) annual cash flow forecasts; 
(10) a statement describing methods of esti-
mation and significant assumptions; 
(11) specific measures that demonstrate meas-
urable improvement year over year in the financial 
results of Amtrak’s operations; 
(12) prior fiscal year and projected operating 
ratio, cash operating loss, and cash operating loss 
per passenger on a route, business line, and cor-
porate basis;
(13) prior fiscal year and projected specific 
costs and savings estimates resulting from reform 
initiatives; 
(14) prior fiscal year and projected labor pro-
ductivity statistics on a route, business line, and cor-
porate basis; and 
(15) prior fiscal year and projected equipment 
reliability statistics. 
(c) STANDARDS
TO
PROMOTE
FINANCIAL
STA-
BILITY.—In meeting the requirements of subsection (b), 
Amtrak shall— 
(1) apply sound budgetary practices, including 
reducing costs and other expenditures, improving 
productivity, increasing revenues, or combinations of 
such practices; 
(2) use the categories specified in the financial 
accounting and reporting system developed under 
section 203 when preparing its 5-year financial plan; 
and 
(3) ensure that the plan is consistent with the 
authorizations of appropriations under title I of this 
Act. 
SEC. 205. ESTABLISHMENT OF GRANT PROCESS. 
(a) GRANT REQUESTS.—Amtrak shall submit grant 
requests (including a schedule for the disbursement of