I
105TH CONGRESS
1ST SESSION
H. R. 2205
To reform the statutes relating to Amtrak, to authorize appropriations for
Amtrak, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 22, 1997
Mr. OBERSTAR (for himself and Mr. WISE) introduced the following bill; which
was referred to the Committee on Transportation and Infrasturcture
A BILL
To reform the statutes relating to Amtrak, to authorize
appropriations for Amtrak, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Amtrak Reform and
Privatization Act of 1997’’.
TITLE I—PROCUREMENT
REFORMS
SEC. 101. CONTRACTING PRACTICES.
(a) BELOW-COST COMPETITION.—Section 24305(b)
of title 49, United States Code, is amended to read as
follows:
‘‘(b) BELOW-COST COMPETITION.—(1) Amtrak shall
not submit any bid for the performance of services under
a contract for an amount less than the cost to Amtrak
of performing such services, with respect to any activity
other than the provision of intercity rail passenger trans-
portation, commuter rail passenger transportation, or mail
or express transportation. For purposes of this subsection,
the cost to Amtrak of performing services shall be deter-
mined using generally accepted accounting principles for
contracting.
‘‘(2) Any aggrieved individual may commence a civil
action for violation of paragraph (1). The United States
district courts shall have jurisdiction, without regard to
the amount in controversy or the citizenship of the parties,
to enforce paragraph (1). The court, in issuing any final
order in any action brought pursuant to this paragraph,
may award bid preparation costs, anticipated profits, and
litigation costs, including reasonable attorney and expert
witness fees, to any prevailing or substantially prevailing
party. The court may, if a temporary restraining order
or preliminary injunction is sought, require the filing of
a bond or equivalent security in accordance with the Fed-
eral Rules of Civil Procedure.
‘‘(3) This subsection shall cease to be effective on the
expiration of a fiscal year during which no Federal operat-
ing assistance is provided to Amtrak.’’.
(b) THROUGH SERVICE
IN CONJUNCTION WITH
INTERCITY BUS OPERATIONS.—(1) Section 24305(a) of
title 49, United States Code, is amended by adding at the
end the following new paragraph:
‘‘(3)(A) Except as provided in subsection (d)(2), Am-
trak may enter into a contract with a motor carrier of
passengers for the intercity transportation of passengers
by motor carrier over regular routes only—
‘‘(i) if the motor carrier is not a public recipient
of governmental assistance, as such term is defined
in section 13902(b)(8)(A) of this title, other than a
recipient of funds under section 5311 of this title;
‘‘(ii) for passengers who have had prior move-
ment by rail or will have subsequent movement by
rail; and
‘‘(iii) if the buses, when used in the provision
of such transportation, are used exclusively for the
transportation of passengers described in clause (ii).
‘‘(B) Subparagraph (A) shall not apply to transpor-
tation funded predominantly by a State or local govern-
ment, or to ticket selling agreements.’’.
(2) Section 24305(d) of title 49, United States Code,
is amended by adding at the end the following new para-
graph:
‘‘(3) Congress encourages Amtrak and motor com-
mon carriers of passengers to use the authority conferred
in sections 11322 and 14302 of this title for the purpose
of providing improved service to the public and economy
of operation.’’.
SEC. 102. FREEDOM OF INFORMATION ACT.
Section 24301(e) of title 49, United States Code, is
amended by striking ‘‘Section 552 of title 5, this part,’’
and inserting in lieu thereof ‘‘This part’’.
SEC. 103. TRACK WORK.
(a) OUTREACH PROGRAM.—Amtrak shall, within one
year after the date of the enactment of this Act, establish
an outreach program through which it will work with track
work manufacturers in the United States to increase the
likelihood that such manufacturers will be able to meet
Amtrak’s specifications for track work. The program shall
include engineering assistance for the manufacturers and
dialogue between Amtrak and the manufacturers to iden-
tify how Amtrak’s specifications can be met by the capa-
bilities of the manufacturers.
(b) ANNUAL REPORT.—Amtrak shall report to the
Congress within 2 years after the date of the enactment
of this Act on progress made under subsection (a), includ-
ing a statement of the percentage of Amtrak’s track work
contracts that are awarded to manufacturers in the United
States.
TITLE II—OPERATIONAL
REFORMS
SEC. 201. BASIC SYSTEM.
(a) OPERATION OF BASIC SYSTEM.—Section 24701
of title 49, United States Code, and the item relating
thereto in the table of sections of chapter 247 of such title,
are repealed.
(b) 
IMPROVING
RAIL
PASSENGER
TRANSPOR-
TATION.—Section 24702 of title 49, United States Code,
and the item relating thereto in the table of sections of
chapter 247 of such title, are repealed.
(c) DISCONTINUANCE.—Section 24706 of title 49,
United States Code, is amended—
(1) in subsection (a)(1)—
(A) by striking ‘‘90 days’’ and inserting in
lieu thereof ‘‘180 days’’;
(B) by striking ‘‘a discontinuance under
section 24704 or 24707(a) or (b) of this title’’
and inserting in lieu thereof ‘‘discontinuing
service over a route’’; and
(C) by inserting ‘‘or assume’’ after ‘‘agree
to share’’;
(2) in subsection (a)(2), by striking ‘‘section
24704 or 24707(a) or (b) of this title’’ and inserting
in lieu thereof ‘‘paragraph (1)’’; and
(3) by striking subsection (b).
(d) COST
AND PERFORMANCE REVIEW.—Section
24707 of title 49, United States Code, and the item relat-
ing thereto in the table of sections of chapter 247 of such
title, are repealed.
(e) SPECIAL COMMUTER TRANSPORTATION.—Section
24708 of title 49, United States Code, and the item relat-
ing thereto in the table of sections of chapter 247 of such
title, are repealed.
(f) 
CONFORMING
AMENDMENT.—Section
24312(a)(1) of title 49, United States Code, is amended
by striking ‘‘, 24701(a),’’.
SEC. 202. MAIL, EXPRESS, AND AUTO-FERRY TRANSPOR-
TATION.
(a) REPEAL.—Section 24306 of title 49, United
States Code, and the item relating thereto in the table of
sections of chapter 243 of such title, are repealed.
(b) CONFORMING AMENDMENT.—Section 24301 of
title 49, United States Code, is amended by adding at the
end the following new subsection:
‘‘(o) NONAPPLICATION OF CERTAIN OTHER LAWS.—
State and local laws and regulations that impair the provi-
sion of mail, express, and auto-ferry transportation do not
apply to Amtrak or a rail carrier providing mail, express,
or auto-ferry transportation.’’.
SEC. 203. ROUTE AND SERVICE CRITERIA.
Section 24703 of title 49, United States Code, and
the item relating thereto in the table of sections of chapter
247 of such title, are repealed.
SEC. 204. ADDITIONAL QUALIFYING ROUTES.
Section 24705 of title 49, United States Code, and
the item relating thereto in the table of sections of chapter
247 of such title, are repealed.
SEC. 205. TRANSPORTATION REQUESTED BY STATES, AU-
THORITIES, AND OTHER PERSONS.
(a) REPEAL.—Section 24704 of title 49, United
States Code, and the item relating thereto in the table of
sections of chapter 247 of such title, are repealed.
(b) EXISTING AGREEMENTS.—Amtrak shall not,
after the date of the enactment of this Act, be required
to provide transportation services pursuant to an agree-
ment entered into before such date of enactment under
the section repealed by subsection (a) of this section.
(c) STATE, REGIONAL, AND LOCAL COOPERATION.—
Section 24101(c)(2) of title 49, United States Code, is
amended by inserting ‘‘, separately or in combination,’’
after ‘‘and the private sector’’.
(d) 
CONFORMING
AMENDMENT.—Section
24312(a)(1) of title 49, United States Code, is amended
by striking ‘‘or 24704(b)(2)’’.
SEC. 206. AMTRAK COMMUTER.
(a) REPEAL OF CHAPTER 245.—Chapter 245 of title
49, United States Code, and the item relating thereto in
the table of chapters of subtitle V of such title, are re-
pealed.
(b) 
CONFORMING
AMENDMENTS.—(1) 
Section
24301(f) of title 49, United States Code, is amended to
read as follows:
‘‘(f) TAX EXEMPTION FOR CERTAIN COMMUTER AU-
THORITIES.—A commuter authority that was eligible to
make a contract with Amtrak Commuter to provide com-
muter rail passenger transportation but which decided to
provide its own rail passenger transportation beginning
January 1, 1983, is exempt, effective October 1, 1981,
from paying a tax or fee to the same extent Amtrak is
exempt.’’.
(2) Subsection (a) of this section shall not affect any
trackage rights held by Amtrak or the Consolidated Rail
Corporation.
SEC. 207. COMMUTER COST SHARING ON THE NORTHEAST
CORRIDOR.
(a) DETERMINATION
OF COMPENSATION.—Section
24904 of title 49, United States Code, is amended—
(1) by striking subsection (b);
(2) by redesignating subsection (c) as sub-
section (b);
(3) in subsection (b), as so redesignated by
paragraph (2) of this subsection—
(A) by striking ‘‘TRANSPORTATION OVER
CERTAIN RIGHTS OF WAY AND FACILITIES’’ in
the subsection head and inserting in lieu thereof
‘‘FREIGHT TRANSPORTATION’’;
(B) by inserting ‘‘relating to rail freight
transportation’’ after ‘‘subsection (a)(6) of this
section’’ in paragraph (1); and
(C) by inserting ‘‘to an agreement de-
scribed in paragraph (1)’’ after ‘‘If the parties’’
in paragraph (2); and
(4) by inserting after subsection (b), as so re-
designated by paragraph (2) of this subsection, the
following new subsection:
‘‘(c) BINDING ARBITRATION FOR COMMUTER DIS-
PUTES.—(1) If the parties to an agreement described in
subsection (a)(6) relating to commuter rail passenger
transportation cannot agree to the terms of such agree-
ment, such parties shall submit the issues in dispute to
binding arbitration.
‘‘(2) The parties to a dispute described in paragraph
(1) may agree to use the Surface Transportation Board
to arbitrate such dispute, and if requested the Surface
Transportation Board shall perform such function.’’.
(b) PRIVATIZATION.—Section 24101(d) of title 49,
United States Code, is amended to read as follows:
‘‘(d) MINIMIZING
GOVERNMENT
SUBSIDIES.—To
carry out this part, Amtrak is encouraged to make agree-
ments with the private sector and undertake initiatives
that are consistent with good business judgment, that
produce income to minimize Government subsidies, and
that promote the potential privatization of Amtrak’s oper-
ations.’’.
SEC. 208. ACCESS TO RECORDS AND ACCOUNTS.
Section 24315 of title 49, United States Code, is
amended—
(1) in subsection (e), by inserting ‘‘financial or’’
after ‘‘Comptroller General may conduct’’; and
(2) by adding at the end the following new sub-
section:
‘‘(h) ACCESS TO RECORDS AND ACCOUNTS.—A State
shall have access to Amtrak’s records, accounts, and other
necessary documents used to determine the amount of any
payment to Amtrak required of the State.’’.
TITLE III—FINANCIAL REFORMS
SEC. 301. FINANCIAL POWERS.
(a) CAPITALIZATION.—(1) Section 24304 of title 49,
United States Code, is amended to read as follows:
‘‘§ 24304. Employee stock ownership plans
‘‘In issuing stock pursuant to applicable corporate
law, Amtrak is encouraged to include employee stock own-
ership plans.’’.
(2) The item relating to section 24304 of title 49,
United States Code, in the table of sections of chapter 243
of such title is amended to read as follows:
‘‘24304. Employee stock ownership plans.’’.
(b) REDEMPTION OF COMMON STOCK.—(1) Amtrak
shall, within 2 months after the date of the enactment of
this Act, redeem all common stock previously issued, for
the fair market value of such stock.
(2) Amtrak shall redeem any such common stock held
after the expiration of the 2-month period described in
paragraph (1), using procedures set forth in section
24311(a) and (b).
(c) ELIMINATION
OF LIQUIDATION PREFERENCE
AND VOTING RIGHTS OF PREFERRED STOCK.—(1)(A)
Preferred stock of Amtrak held by the Secretary of Trans-
portation shall confer no liquidation preference.
(B) Subparagraph (A) shall take effect 90 days after
the date of the enactment of this Act.
(2)(A) Preferred stock of Amtrak held by the Sec-
retary of Transportation shall confer no voting rights.
(B) Subparagraph (A) shall take effect 60 days after
the date of the enactment of this Act.
(d) NOTE AND MORTGAGE.—(1) Section 24907 of
title 49, United States Code, and the item relating thereto
in the table of sections of chapter 249 of such title, are
repealed.
(2) The United States hereby relinquishes all rights
held in connection with any note obtained or mortgage
made under such section 24907, or in connection with the
note, security agreement, and terms and conditions related
thereto entered into with Amtrak dated October 5, 1983.
(3) No amount shall be includible in Amtrak’s gross
income for Federal tax purposes as a result of the applica-
tion of this subsection or subsection (c).
(e) STATUS AND APPLICABLE LAWS.—(1) Section
24301(a)(3) of title 49, United States Code, is amended
by inserting ‘‘, and shall not be subject to title 31, United
States Code’’ after ‘‘United States Government’’.
(2) Section 9101(2) of title 31, United States Code,
relating to Government corporations, is amended by strik-
ing subparagraph (A) and redesignating subparagraphs
(B) through (L) as subparagraphs (A) through (K), re-
spectively.
SEC. 302. DISBURSEMENT OF FEDERAL FUNDS.
Section 24104(d) of title 49, United States Code, is
amended to read as follows:
‘‘(d) ADMINISTRATION OF APPROPRIATIONS.—Fed-
eral operating assistance funds appropriated to Amtrak
shall be provided to Amtrak upon appropriation when re-
quested by Amtrak.’’.
SEC. 303. BOARD OF DIRECTORS.
(a) AMENDMENT.—Section 24302 of title 49, United
States Code, is amended to read as follows:
‘‘§ 24302. Board of Directors
‘‘(a) EMERGENCY REFORM BOARD.—
‘‘(1) 
ESTABLISHMENT
AND
DUTIES.—The
Emergency Reform Board described in paragraph
(2) shall assume the responsibilities of the Board of
Directors of Amtrak 60 days after the date of the
enactment of the Amtrak Reform and Privatization
Act of 1997, or as soon thereafter as such Board is
sufficiently constituted to function as a board of di-
rectors under applicable corporate law. Such Board
shall adopt new bylaws, including procedures for the
selection of members of the Board of Directors
under subsection (c) which provide for employee rep-
resentation.
‘‘(2) MEMBERSHIP.—(A) The Emergency Re-
form Board shall consist of 7 members appointed by
the President, by and with the advice and consent
of the Senate.
‘‘(B) In selecting individuals for nominations
for appointments to the Emergency Reform Board,
the President should consult with—
‘‘(i) the Speaker of the House of Rep-
resentatives concerning the appointment of two
members;
‘‘(ii) the minority leader of the House of
Representatives concerning the appointment of
one member;
‘‘(iii) the majority leader of the Senate
concerning the appointment of two members;
and
‘‘(iv) the minority leader of the Senate con-
cerning the appointment of one member.
‘‘(C) Appointments under subparagraph (A)
shall be made from among individuals who—
‘‘(i) have technical qualification, profes-
sional standing, and demonstrated expertise in
the fields of intercity common carrier transpor-
tation and corporate management; and
‘‘(ii) are not employees of Amtrak, employ-
ees of the United States, or representatives of
rail labor or rail management.
‘‘(b) DIRECTOR GENERAL.—If the Emergency Re-
form Board described in subsection (a)(2) is not suffi-
ciently constituted to function as a board of directors
under applicable corporate law before the expiration of 60
days after the date of the enactment of the Amtrak Re-
form and Privatization Act of 1997, the special court es-
tablished under section 209(b) of the Regional Rail Reor-
ganization Act of 1973 (45 U.S.C. 719(b)) shall appoint
a Director General, who shall exercise all powers of the
Board of Directors of Amtrak until the Emergency Re-
form Board assumes such powers.
‘‘(c) BOARD OF DIRECTORS.—Four years after the
establishment of the Emergency Reform Board under sub-
section (a), a Board of Directors shall be selected pursu-
ant to bylaws adopted by the Emergency Reform Board,
and the Emergency Reform Board shall be dissolved.’’.
(b) EFFECT
ON AUTHORIZATIONS.—If the Emer-
gency Reform Board has not assumed the responsibilities
of the Board of Directors of Amtrak before March 15,
1998, all provisions authorizing appropriations under the
amendments made by section 501 of this Act for a fiscal
year after fiscal year 1998 shall cease to be effective.
SEC. 304. REPORTS AND AUDITS.
Section 24315 of title 49, United States Code, as
amended by section 208 of this Act, is further amended—
(1) by striking subsections (a) and (c);
(2) by redesignating subsections (b), (d), (e),
(f), (g), and (h) as subsections (a), (b), (c), (d), (e),
and (f), respectively; and
(3) in subsection (d), as so redesignated by
paragraph (2) of this section, by striking ‘‘(d) or
(e)’’ and inserting in lieu thereof ‘‘(b) or (c)’’.
SEC. 305. OFFICERS’ PAY.
Section 24303(b) of title 49, United States Code, is
amended by inserting ‘‘The preceding sentence shall cease
to be effective on the expiration of a fiscal year during
which no Federal operating assistance is provided to Am-
trak.’’ after ‘‘with comparable responsibility.’’.
SEC. 306. EXEMPTION FROM TAXES.
Section 24301(l)(1) of title 49, United States Code,
is amended—
(1) by inserting ‘‘, and any passenger or other
customer of Amtrak or such subsidiary,’’ after ‘‘sub-
sidiary of Amtrak’’;
(2) by striking ‘‘or fee imposed’’ and all that
follows through ‘‘levied on it’’ and inserting in lieu
thereof ‘‘, fee, head charge, or other charge, imposed
or levied by a State, political subdivision, or local
taxing authority, directly or indirectly on Amtrak or
on persons traveling in intercity rail passenger
transportation or on mail or express transportation
provided by Amtrak or a rail carrier subsidiary of
Amtrak, or on the carriage of such persons, mail, or
express, or on the sale of any such transportation,
or on the gross receipts derived therefrom’’; and
(3) by amending the last sentence thereof to
read as follows: ‘‘In the case of a tax or fee that
Amtrak was required to pay as of September 10,
1982, Amtrak is not exempt from such tax or fee if
it was assessed before April 1, 1997.’’.
TITLE IV—MISCELLANEOUS
SEC. 401. TEMPORARY RAIL ADVISORY COUNCIL.
(a) APPOINTMENT.—Within 30 days after the date
of the enactment of this Act, a Temporary Rail Advisory
Council (in this section referred to as the ‘‘Council’’) shall
be appointed under this section.
(b) DUTIES.—The Council shall—
(1) evaluate Amtrak’s performance;
(2) prepare an analysis and critique of Am-
trak’s business plan;
(3) suggest strategies for further cost contain-
ment and productivity improvements, including
strategies with the potential for further reduction in
Federal operating subsidies and the eventual partial
or complete privatization of Amtrak’s operations;
and
(4) recommend appropriate methods for adop-
tion of uniform cost and accounting procedures
throughout the Amtrak system, based on generally
accepted accounting principles.
(c) MEMBERSHIP.—(1) The Council shall consist of
7 members appointed as follows:
(A) Two individuals to be appointed by the
Speaker of the House of Representatives.
(B) One individual to be appointed by the mi-
nority leader of the House of Representatives.
(C) Two individuals to be appointed by the ma-
jority leader of the Senate.
(D) One individual to be appointed by the mi-
nority leader of the Senate.
(E) One individual to be appointed by the
President.
(2) Appointments under paragraph (1) shall be made
from among individuals who—
(A) have technical qualification, professional
standing, and demonstrated expertise in the fields of
transportation and corporate management; and
(B) are not employees of Amtrak, employees of
the United States, or representatives of rail labor or
rail management.
(3) Within 40 days after the date of the enactment
of this Act, a majority of the members of the Council shall
elect a chairman from among such members.
(d) TRAVEL EXPENSES.—Each member of the Coun-
cil shall serve without pay, but shall receive travel ex-
penses, including per diem in lieu of subsistence, in ac-
cordance with sections 5702 and 5703 of title 5, United
States Code.
(e) ADMINISTRATIVE SUPPORT.—The Secretary of
Transportation shall provide to the Council such adminis-
trative support as the Council requires to carry out this
section.