IB
Union Calendar No. 144
105TH CONGRESS
1ST SESSION
H. R. 2247
[Report No. 105–251]
To reform the statutes relating to Amtrak, to authorize appropriations for
Amtrak, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 24, 1997
Ms. MOLINARI (for herself and Mr. SHUSTER) introduced the following bill;
which was referred to the Committee on Transportation and Infrastructure
SEPTEMBER 17, 1997
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on July 24, 1997]
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 Pri-
vatization Act of 1997’’.
TITLE I—PROCUREMENT
REFORMS
SEC. 101. CONTRACTING OUT.
(a) AMENDMENT.—Section 24312(b) of title 49, United
States Code, is amended to read as follows:
‘‘(b) CONTRACTING OUT.—(1) When Amtrak contracts
out work normally performed by an employee in a bargain-
ing unit covered by a contract between a labor organization
and Amtrak, Amtrak is encouraged to use other rail car-
riers for performing such work.
‘‘(2)(A) Amtrak may not enter into a contract for the
operation of trains with any entity other than a State or
State authority.
‘‘(B) If Amtrak enters into a contract as described in
subparagraph (A)—
‘‘(i) such contract shall not relieve Amtrak of
any obligation in connection with the use of facilities
of another entity for the operation covered by such
contract; and
‘‘(ii) such operation shall be subject to any oper-
ating or safety restrictions and conditions required by
the agreement providing for the use of such facilities.
‘‘(C) This paragraph shall not restrict Amtrak’s au-
thority to enter into contracts for access to or use of tracks
or facilities for the operation of trains.’’.
(b) EFFECTIVE DATE.—Subsection (a) shall take effect
254 days after the date of the enactment of this Act.
SEC. 102. 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 transpor-
tation, commuter rail passenger transportation, or mail or
express transportation. For purposes of this subsection, the
cost to Amtrak of performing services shall be determined
using generally accepted accounting principles for contract-
ing.
‘‘(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 liti-
gation costs, including reasonable attorney and expert wit-
ness 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 Federal
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 INTER-
CITY 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 pas-
sengers 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 re-
cipient 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 common
carriers of passengers to use the authority conferred in sec-
tions 11322 and 14302 of this title for the purpose of pro-
viding improved service to the public and economy of oper-
ation.’’.
SEC. 103. 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. 104. 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 Am-
trak’s specifications for track work. The program shall in-
clude engineering assistance for the manufacturers and dia-
logue between Amtrak and the manufacturers to identify
how Amtrak’s specifications can be met by the capabilities
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), including
a statement of the percentage of Amtrak’s track work con-
tracts 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 re-
pealed.
(b) IMPROVING RAIL PASSENGER TRANSPORTATION.—
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) by striking subsection (b);
(2) by striking ‘‘NOTICE OF DISCONTINUANCE.—
(1) Except as provided in subsection (b) of this sec-
tion, at’’ and inserting in lieu thereof ‘‘TIME OF NO-
TICE.—At’’;
(3) by striking ‘‘90 days’’ and inserting in lieu
thereof ‘‘180 days’’;
(4) 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’’;
(5) by inserting ‘‘or assume’’ after ‘‘agree to
share’’;
(6) by striking ‘‘(2) Notice’’ and inserting in lieu
thereof ‘‘(b) PLACE OF NOTICE.—Notice’’; and
(7) by striking ‘‘section 24704 or 24707(a) or (b)
of this title’’ and inserting in lieu thereof ‘‘subsection
(a)’’.
(d) COST
AND
PERFORMANCE
REVIEW.—Section
24707 of title 49, United States Code, and the item relating
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 relating
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 agreement entered
into before such date of enactment under the section re-
pealed 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 repealed.
(b) CONFORMING AMENDMENTS.—(1) Section 24301(f)
of title 49, United States Code, is amended to read as fol-
lows:
‘‘(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 subsection
(b);
(3) in subsection (b), as so redesignated by para-
graph (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 described
in paragraph (1)’’ after ‘‘If the parties’’ in para-
graph (2); and
(4) by inserting after subsection (b), as so redes-
ignated by paragraph (2) of this subsection, the fol-
lowing 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 trans-
portation cannot agree to the terms of such agreement, such
parties shall submit the issues in dispute to binding arbi-
tration.
‘‘(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 Trans-
portation 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 agreements
with the private sector and undertake initiatives that are
consistent with good business judgment, that produce in-
come to minimize Government subsidies, and that promote
the potential privatization of Amtrak’s operations.’’.
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—COLLECTIVE
BARGAINING REFORMS
SEC. 301. RAILWAY LABOR ACT PROCEDURES.
(a) NOTICES.—(1) Notwithstanding any arrangement
in effect before the date of the enactment of this Act, notices
under section 6 of the Railway Labor Act (45 U.S.C. 156)
with respect to all issues relating to—
(A) employee protective arrangements and sever-
ance benefits, including all provisions of Appendix C–
2 to the National Railroad Passenger Corporation
Agreement, signed July 5, 1973; and
(B) contracting out by Amtrak of work normally
performed by an employee in a bargaining unit cov-
ered by a contract between Amtrak and a labor orga-
nization representing Amtrak employees,
applicable to employees of Amtrak shall be deemed served
and effective on the date which is 90 days after the date
of the enactment of this Act. Amtrak, and each affected labor
organization representing Amtrak employees, shall prompt-
ly supply specific information and proposals with respect
to each such notice. This subsection shall not apply to issues
relating to provisions defining the scope or classification
of work performed by an Amtrak employee.
(2) In the case of provisions of a collective bargaining
agreement with respect to which a moratorium is in effect
90 days after the date of the enactment of this Act, para-
graph (1) shall take effect on the expiration of such morato-
rium. For purposes of the application of paragraph (1) to
such provisions, notices shall be deemed served and effective
on the date of such expiration.
(b) NATIONAL MEDIATION BOARD EFFORTS.—Except
as provided in subsection (c), the National Mediation Board
shall complete all efforts, with respect to each dispute de-
scribed in subsection (a), under section 5 of the Railway
Labor Act (45 U.S.C. 155) not later than 180 days after
the date of the enactment of this Act.
(c) RAILWAY LABOR ACT ARBITRATION.—The parties
to any dispute described in subsection (a) may agree to sub-
mit the dispute to arbitration under section 7 of the Rail-
way Labor Act (45 U.S.C. 157), and any award resulting
therefrom shall be retroactive to the date which is 180 days
after the date of the enactment of this Act.
(d) DISPUTE RESOLUTION.—(1) With respect to any
dispute described in subsection (a) which—
(A) is unresolved as of the date which is 180
days after the date of the enactment of this Act; and
(B) is not submitted to arbitration as described
in subsection (c),
Amtrak and the labor organization parties to such dispute
shall, within 187 days after the date of the enactment of
this Act, each select an individual from the entire roster
of arbitrators maintained by the National Mediation
Board. Within 194 days after the date of the enactment of
this Act, the individuals selected under the preceding sen-
tence shall jointly select an individual from such roster to
make recommendations with respect to such dispute under
this subsection.
(2) No individual shall be selected under paragraph
(1) who is pecuniarily or otherwise interested in any orga-
nization of employees or any railroad. Nothing in this sub-
section shall preclude an individual from being selected for
more than 1 dispute described in subsection (a).
(3) The compensation of individuals selected under
paragraph (1) shall be fixed by the National Mediation
Board. The second paragraph of section 10 of the Railway
Labor Act shall apply to the expenses of such individuals
as if such individuals were members of a board created
under such section 10.
(4) If the parties to a dispute described in subsection
(a) fail to reach agreement within 224 days after the date
of the enactment of this Act, the individual selected under
paragraph (1) with respect to such dispute shall make rec-
ommendations to the parties proposing contract terms to
resolve the dispute.
(5) If the parties to a dispute described in subsection
(a) fail to reach agreement, no change shall be made by
either of the parties in the conditions out of which the dis-
pute arose for 30 days after recommendations are made
under paragraph (4).
(6) Section 10 of the Railway Labor Act (45 U.S.C.
160) shall not apply to a dispute described in subsection
(a).
SEC. 302. SERVICE DISCONTINUANCE.
(a) REPEAL.—(1) Section 24706(c) of title 49, United
States Code, is repealed.
(2) Any provision of a contract, entered into before the
date of the enactment of this Act between Amtrak and a
labor organization representing Amtrak employees, relating
to—
(A) employee protective arrangements and sever-
ance benefits, including all provisions of Appendix C–
2 to the National Railroad Passenger Corporation
Agreement, signed July 5, 1973; or
(B) contracting out by Amtrak of work normally
performed by an employee in a bargaining unit cov-
ered by a contract between Amtrak and a labor orga-
nization representing Amtrak employees,
applicable to employees of Amtrak is extinguished. This
paragraph shall not apply to provisions defining the scope
or classification of work performed by an Amtrak employee.
(3) Section 1172(c) of title 11, United States Code,
shall not apply to Amtrak and its employees.
(4) Paragraphs (1) and (2) of this subsection shall take
effect 254 days after the date of the enactment of this Act.
(b) INTERCITY PASSENGER SERVICE EMPLOYEES.—
Section 1165(a) of the Northeast Rail Service Act of 1981
(45 U.S.C. 1113(a)) is amended—
(1) by inserting ‘‘(1)’’ before ‘‘After January 1,
1983’’;
(2) by striking ‘‘Amtrak, Amtrak Commuter,
and Conrail’’ and inserting in lieu thereof ‘‘Amtrak
and Conrail’’;
(3) by striking ‘‘Such agreement shall ensure’’
and all that follows through ‘‘submitted to binding ar-
bitration.’’; and
(4) by adding at the end the following new para-
graph:
‘‘(2) Notwithstanding any other provision of law,
agreement, or arrangement, with respect to employees in
any class or craft in train or engine service, Conrail shall
have the right to furlough one such employee for each em-
ployee in train or engine service who moves from Amtrak
to Conrail in excess of the cumulative number of such em-
ployees who move from Conrail to Amtrak. Conrail shall
not be obligated to fill any position governed by an agree-
ment concerning crew consist, attrition arrangements, re-
serve boards, or reserve engine service positions, where an
increase in positions is the result of the return of an Amtrak
employee pursuant to an agreement entered into under
paragraph (1). Conrail’s collective bargaining agreements
with organizations representing its train and engine service
employees shall be deemed to have been amended to conform
to this paragraph. Any dispute or controversy with respect
to the interpretation, application, or enforcement of this
paragraph which has not been resolved within 90 days after
the date of the enactment of this paragraph may be submit-
ted by either party to an adjustment board for a final and
binding decision under section 3 of the Railway Labor
Act.’’.
TITLE IV—USE OF RAILROAD
FACILITIES
SEC. 401. LIABILITY LIMITATION.
(a) AMENDMENT.—Chapter 281 of title 49, United
States Code, is amended by adding at the end the following
new section:
‘‘§ 28103. Limitations on rail passenger transpor-
tation liability
‘‘(a) LIMITATIONS.—(1) Notwithstanding any other
statutory or common law or public policy, or the nature
of the conduct giving rise to damages or liability, in a claim
for personal injury, death, or damage to property arising
from or in connection with the provision of rail passenger
transportation, or from or in connection with any rail pas-
senger transportation operations over or rail passenger
transportation use of right-of-way or facilities owned,
leased, or maintained by any high-speed railroad authority
or operator, any commuter authority or operator, any rail
carrier, or any State—
‘‘(A) punitive damages shall not exceed the great-
er of—
‘‘(i) $250,000; or
‘‘(ii) three times the amount of economic
loss; and
‘‘(B) noneconomic damages awarded to any
claimant for each accident or incident shall not ex-
ceed the claimant’s economic loss, if any, by more
than $250,000.
‘‘(2) If, in any case wherein death was caused, the law
of the place where the act or omission complained of oc-
curred provides, or has been construed to provide, for dam-
ages only punitive in nature, the claimant may recover in
a claim limited by this subsection for economic and non-
economic damages and punitive damages, subject to para-
graph (1)(A) and (B).
‘‘(3) For purposes of this subsection—
‘‘(A) the term ‘actual damages’ means damages
awarded to pay for economic loss;
‘‘(B) the term ‘claim’ means a claim made, di-
rectly or indirectly—
‘‘(i) against Amtrak, any high-speed rail-
road authority or operator, any commuter au-
thority or operator, any rail carrier, or any
State; or
‘‘(ii) against an officer, employee, affiliate
engaged in railroad operations, or agent, of Am-
trak, any high-speed railroad authority or opera-
tor, any commuter authority or operator, any
rail carrier, or any State;
‘‘(C) the term ‘economic loss’ means any pecu-
niary loss resulting from harm, including the loss of
earnings, medical expense loss, replacement services
loss, loss due to death, burial costs, loss of business or
employment opportunities, and any other form of pe-
cuniary loss allowed under applicable State law or
under paragraph (2) of this subsection;
‘‘(D) the term ‘noneconomic damages’ means
damages other than punitive damages or actual dam-
ages; and
‘‘(E) the term ‘punitive damages’ means dam-
ages awarded against any person or entity to punish
or deter such person or entity, or others, from engag-
ing in similar behavior in the future.
‘‘(b) INDEMNIFICATION OBLIGATIONS.—Obligations of
any party, however arising, including obligations arising
under leases or contracts or pursuant to orders of an ad-
ministrative agency, to indemnify against damages or li-
ability for personal injury, death, or damage to property
described in subsection (a), incurred after the date of the
enactment of the Amtrak Reform and Privatization Act of
1997, shall be enforceable, notwithstanding any other statu-
tory or common law or public policy, or the nature of the
conduct giving rise to the damages or liability.
‘‘(c) EFFECT ON OTHER LAWS.—This section shall not
affect the damages that may be recovered under the Act of
April 27, 1908 (45 U.S.C. 51 et seq.; popularly known as
the ‘Federal Employers’ Liability Act’) or under any work-
ers compensation Act.
‘‘(d) DEFINITION.—For purposes of this section, the
term ‘rail carrier’ includes a person providing excursion,
scenic, or museum train service, and an owner or operator
of a privately owned rail passenger car.’’.
(b) CONFORMING AMENDMENT.—The table of sections
of chapter 281 of title 49, United States Code, is amended
by adding at the end the following new item:
‘‘28103. Limitations on rail passenger transportation liability.’’.
TITLE V—FINANCIAL REFORMS
SEC. 501. 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 owner-
ship plans.’’.
(2) The item relating to section 24304 of title 49, Unit-
ed 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) Section 28103 of title 49, United States Code, shall
not apply to any rail carrier holding common stock of Am-
trak after the expiration of 2 months after the date of the
enactment of this Act.
(3) 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 Transportation
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 Secretary
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.
(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’’ after ‘‘Unit-
ed 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), respec-
tively.
SEC. 502. DISBURSEMENT OF FEDERAL FUNDS.
Section 24104(d) of title 49, United States Code, is
amended to read as follows:
‘‘(d) ADMINISTRATION OF APPROPRIATIONS.—Federal
operating assistance funds appropriated to Amtrak shall be
provided to Amtrak upon appropriation when requested by
Amtrak.’’.
SEC. 503. 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 Emer-
gency 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 con-
stituted to function as a board of directors under ap-
plicable corporate law. Such Board shall adopt new
bylaws, including procedures for the selection of mem-
bers of the Board of Directors under subsection (c)
which provide for employee representation.
‘‘(2) MEMBERSHIP.—(A) The Emergency Reform
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 Representa-
tives concerning the appointment of two mem-
bers;
‘‘(ii) the minority leader of the House of
Representatives concerning the appointment of
one member;
‘‘(iii) the majority leader of the Senate con-
cerning 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 Reform
Board described in subsection (a)(2) is not sufficiently con-
stituted 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 Reform and Privatization
Act of 1997, the Chief Justice of the United States shall
appoint a Director General, who shall exercise all powers
of the Board of Directors of Amtrak until the Emergency
Reform Board assumes such powers.
‘‘(c) BOARD OF DIRECTORS.—Four years after the es-
tablishment of the Emergency Reform Board under sub-
section (a), a Board of Directors shall be selected pursuant