Amtrak Reorganization Act of 1979
PL 96-73 (H.R.3996), enacted 09/29/1979

PUBLIC LAW 96-73—SEPT. 29, 1979 
93 STAT. 537 
Public Law 96-73 
96th Congress 
An Act 
To amend the Rail Passenger Service Act to extend the authorization of appropri- 
Sept. 29, 1979 
ations for Amtrak for 2 additional years, and for other purposes. 
[H.R. 3996] 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled, 
Amtrak 
Reorganization 
TITLE I—AMTRAK REORGANIZATION 
^""^ °^ ^^'^^ 
SHORT TITLE 
SECTION 101. This title may be cited as the "Amtrak Reorganization 45 use 501 note. 
Act of 1979". 
PURPOSES 
SEC. 102. Section 101 of the Rail Passenger Service Act (45 U.S.C. 45 use 501. 
502) is amended— 
(1) by inserting "(a)" immediately before "The Congress"; 
(2) by striking out "and" after "this purpose;"; 
(3) bv striking out the period after "Railroad Passenger Corpo-
ration and inserting in lieu thereof the following: "; and that 
rail passenger service offers significant benefits in public trans-
portation for the safe movement of passengers with minimum 
energy expenditure and represents a significant national trans-
portation asset in time of national emergency or energy short-
age."; and 
(4) by adding at the end thereof the following new subsection: 
"(b) The Congress further finds that— 
"(1) inadequately defined goals for the Corporation have 
denied its board of directors an effective role in guiding the 
Corporation or in promoting and increasing the number of 
intercity rail passengers; 
"(2) uncertain goals and financial commitment have discour-
aged the development of effective corporate management; 
"(3) uncertainty arising from the lack of specific goals has 
made the achievement of high employee morale difficult; 
"(4) State participation in subsidizing interstate rail passenger 
service has, for the most part, been unworkable; 
"(5) lack of full cooperation by the railroad industry has 
impeded effective systemwide operation of passenger trains by 
the Corporation; and 
"(6) a greater degree of cooperation is necessary among rail-
roads, the Corporation, States with subsidized service, labor 
organizations, and suppliers of services and equipment to the 
Corporation in order to achieve a level of performance sufficient 
to justify additional expenditure of public funds.". 
GOALS 
SEC. 103. (a) GOALS FOR AMTRAK.—The Rail Passenger Service Act 
(45 U.S.C. 501 et seq.) is amended by redesignating section 102 as 45 use 502. 
93 STAT. 538 
PUBLIC LAW 96-73—SEPT. 29, 1979 
section 103 and by inserting after section 101 the following new 
section: 
45 u s e 501a. 
"SEC. 102. GOALS. 
"The Congress hereby establishes the following goals for Amtrak: 
"(1) Improvement of on-time performance by at least 50 per-
cent within the three-year period beginning on the date of 
enactment of this section. 
"(2) Implementation of schedules which provide a systemwide 
average speed of at least 55 miles per hour, and which can be 
adhered to with a degree of reliability and passenger comfort. 
"(3) Improvement of the ratio of revenues to operating ex-
penses, with the goal of coverage of at least 44 percent of 
operating expenses, excluding depreciation, from revenues by 
the end of fiscal year 1982 and 50 percent by the end of fiscal year 
1985. 
"(4) Improvement of the feasibility of State-subsidized service 
through the use of technical assistance panels to coordinate, 
plan, and implement such service. 
"(5) Encouragement of rail carriers to assist in improving 
intercity rail passenger service. 
"(6) General improvement of Amtrak's performance through 
comprehensive, systematic operational programs and employee 
incentives.". 
(b) TECHNICAL AMENDMENT.—The heading for title I of the Rail 
Passenger Service Act is amended by inserting "GrOALS," after 
"PURPOSES,". 
DEFINITIONS 
45 use 502. 
SEC. 104. Section 103 of the Rail Passenger Service Act, as redesig-
Ante, p. 537. 
nated by this Act, is amended to read as follows: 
"SEC. 103. DEFINITIONS. 
"For the purposes of this Act— 
"(1) 'Amtrak' means the National Railroad Passenger Corpora-
45 use 741. 
tion created under title III of this Act. 
"(2) 'Auto-ferry service' means intercity rail passenger service 
characterized by transportation of automobiles or recreational 
vehicles and their occupants. 
"(3) 'Avoidable loss' means the avoidable costs of providing 
passenger service, less revenues attributable thereto, as deter-
mined by the Interstate Commerce Commission under the provi-
sions of section 553 of title 5, United States Code. 
"(4) 'Basic system' means (A) prior to October 1, 1979, the 
system of intercity rail passenger service designated by the 
45 use 711, 763. 
Secretary under title II and section 403(a) of this Act, and (B) on 
and after October 1, 1979, the system of intercity rail passenger 
service designated by the Secretary under section 4 of the 
92 Stat. 923. 
Amtrak Improvement Act of 1978 (Public Law 95-421) and 
45 use 521 note. 
approved by the Congress, and service required to be operated 
Post, p. 546. 
under sections 404(d) and 404(e) of this Act and under section 4(g) 
of the Amtrak Improvement Act of 1978, including changes to 
such system or service made by the Corporation using the Route 
and Service Criteria. 
"(5) 'Center' means the Performance Evaluation Center estab-
Post, pp. 
lished under section 305 of this Act. 
539-541. 
"(g) 'Commission' means the Interstate Commerce Commis-
sion. 
PUBLIC LAW 96-73—SEPT. 29, 1979 
93 STAT. 539 
"(7) 'Corporation' means the National Railroad Passenger 
Corporation created under title III of this Act. 
"(8) 'Intercity rail passenger service' means all rail passenger 
service other than commuter and other short-haul service in 
metropolitan and suburban areas, usually characterized by re-
duced fare, multiple-ride and commutation tickets, and by morn-
ing and evening peak period operations. 
"(9) 'Model Program' means a program carried out by the 
Corporation under section 807 or section 809 of this Act and the 
employee assistance program established by the Corporation. 
"(10) 'Panel' means a 'Technical Assistance Panel established 
under section 40303) of this Act. 
"(11) 'Rail carrier' and 'railroad' mean a person providing 
railroad transportation for compensation. 
"(12) 'Regional transportation agency' means an authority, 
corporation, or other entity established for the purpose of provid-
ing passenger service within a region. 
"(13) 'Route and Service Criteria' means the Criteria and 
Procedures for Making Route and Service Decisions established 
pursuant to section 404(c) of this Act. 
"(14) 'Secretary* means the Secretary of Transportation or his 
delegate unless the context indicates otherwise.". 
45 u s e 741. 
45 u s e 646; 
Post, p. 551. 
Post, p. 542. 
REDUCED FARE PROGRAM 
SEC. 105. Section 305(c) of the Rail Passenger Service Act (45 U.S.C. 
545(c)) is amended— 
(1) by inserting "(1)" immediately after "(c)"; and 
(2) by adding at the end thereof the following new paragraph: 
"(2)(A) Within 90 days after the date of enactment of this para-
graph, the Corporation shall establish a reduced fare program for 
elderly and handicapped individuals. 
"(B) For purposes of this paragraph— 
"(i) the term 'elderly individual' means a person who has 
attained the age of 65 years; and 
"(ii) the term 'handicapped individual' means any person who 
has a physical or mental impairment which substantially limits 
one or more of such person's major life activities, has record of 
such an impairment, or is regarded as having such an impair-
ment, but the term handicapped individual does not include any 
person who is an alcoholic or drug abuser.". 
"Elderly 
individual." 
"Handicapped 
individual.' 
OPERATIONAL IMPROVEMENT PROGRAM 
SEC. 106. Section 305 of the Rail Passenger Service Act (45 U.S.C. 
545) is amended by redesignating subsections (f) through (j) as 
subsections (g) through (k), respectively, and by inserting after 
subsection (e) the following new subsection: 
"(f) The Corporation shall, not later than January 1,1981, develop 
and submit to the Congress and to the President a comprehensive 
plan for the improvement of all intercity rail passenger service 
provided in the basic system. The Corporation shall commence 
implementation of such plan as soon as practicable after all or any 
portion thereof is developed. Such plan shall include— 
"(1) a zero-based assessment of all operating practices and 
implementation of changes to achieve the minimum use of 
employees consistent with safe operations and adequate service; 
* (2) a systematic program for optimizing the ratio of train size 
to passenger demand; 
eomprehensive 
plan, submittal 
to President and 
eongress. 
93 STAT. 540 
PUBLIC LAW 96-73—SEPT. 29, 1979 
"(3) a systematic program for trip time reduction on all trains 
in the basic system; 
"(4) establishment of training programs to achieve on-time 
departures and priorities for passenger trains over freight trains 
en route; 
"(5) adjustment of purchasing and pricing of food and bever-
ages to achieve, as soon as practical after the date of enactment 
of this subsection, a continuing reduction in losses associated 
with food and beverage services with a goal of ultimate 
profitability; 
"(6) cooperative marketing opportunities between the Corpora-
tion and governmental entities at all levels having intercity rail 
passenger service; and 
"(7) cooperative marketing campaigns sponsored by the Corpo-
ration and the Department of Energy, the Federal Highwav 
Administration, and the Environmental Protection Agency.'. 
REGIONAL MAINTENANCE PLAN 
Establishment. 
SEC. 107. Section 305^) of the Rail Passenger Service Act, as 
Ante, p. 539. 
redesignated by this Act, is amended to read as follows: 
"(g) The Corporation shall, not later than January 1,1980, establish 
a Regional Maintenance Plan. Such plan shall include— 
"(1) a review panel at corporate headquarters consisting of 
such members as the President of the Corporation shall desig-
nate; 
"(2) a systemwide inventory of spare equipment parts by 
operational regions; 
"(3) establishment of the necessary number of maintenance 
employees per number of cars and locomotives per region; 
"(4) establishment of a systematic preventive maintenance 
program; 
"(5) a method for periodic evaluation of maintenance costs, 
time lags, and parts shortages with appropriate corrective 
actions; and 
"(6) such other elements or activities as the Corporation 
considers appropriate.". 
RAILROAD POUCE 
Ante, p. 539. 
SEC. 108. Section 305(j) of the Rail Passenger Service Act, as 
redesignated by this Act, is amended by striking out "security 
guards" each place it appears and inserting in lieu thereof "railroad 
police" and by striking out "Security guards" and inserting in lieu 
thereof "Railroad police". 
BUY AMERICA PROTECTION 
Ante, p. 539. 
SEC. 109. Section 305(k) of the Rail Passenger Service Act, as 
redesignated by tWs Act, is amended by redesignating para^aphs (3) 
and (4) as paragraphs (4) and (5), respectively, and by inserting after 
paragraph (2) the following new paragraph: 
"(3) In addition to the exemptive authority set forth in paragraph 
(2), the Secretary may, upon application of the Corporation, exempt 
the Corporation from the requirements of paragraph (1) of this 
subsection with respect to the purchase of rolling stock or power train 
equipment if the Secretary determines that such rolling stock or 
power train equipment, as the case may be, cannot be purchased and 
delivered in the Untied States within a reasonable time.". 
PUBLIC LAW 96-73—SEPT. 29, 1979 
93 STAT. 541 
PERFORMANCE EVALUATION CENTER 
SEC. 110. Section 305 of the Rail Passenger Service Act (45 U.S.C. 
545), as amended by this Act, is further amended by adding at the end 
thereof the following new subsection: 
"(1) The Corporation shall establish a Performance Evaluation 
Center within the Corporation which shall have the responsibility of 
providing an ongoing review of operations. The Center should evalu-
ate both short-term and long-term operational problems and make 
recommendations for improvement of operations. Each six months, 
the Corporation shall submit a report of the Center's activities and 
recommendations to the appropriate authorizing committees of both 
Houses of Congress and to the Secretary.". 
Establishment. 
Ante, p. 539. 
ADEQUACY OF SERVICE REPORTS 
SEC. 111. (a) REPORTS.—Section 305 of the Rail Passenger Service 
Act (45 U.S.C. 545), as amended by this Act, is further amended by Supra. 
adding at the end thereof the following new subsection: 
"(m) For purposes of assessing the operational performance of 
trains, the President of the Corporation shall have the authority to 
direct the conductor on any Amtrak train to report to the Center any 
inadequacy of train operation. Adequacy of service reports required 
under this subsection shall be promptly transmitted to the Center. 
Each report shall be signed by the conductor and contain sufficient 
information to locate equipment or personnel failures.". 
(b) REPEAL.—Section 801 of the Rail Passenger Service Act (45 Repeal. 
U.S.C. 641) is hereby repealed. 
APPLICABILITY OF OTHER LAWS 
SEC. 112. (a) EXCEPTIONS TO APPLICABILITY.—Section 306(a) of the 
Rail Passenger Service Act (45 U.S.C. 546(a)) is amended by striking 
out the period at the end of paragraph (3) and inserting in lieu thereof 
"; and" and by adding at the end thereof the following new para-
graph: 
"(4) the issuance of securities or the assumption of any obliga-
tion or liability with respect to the securities of others.". 
(b) THROUGH ROUTES AND JOINT FARES.—Section 306(j)(2) of the Rail 
Passenger Service Act (45 U.S.C. 546(j)(2)) is amended by striking out 
"motor carrier" and inserting in lieu thereof "any domestic or 
international motor, air, or water carrier". 
(c) PAY PERIODS AND QUALIFICATIONS.—Section 306 of the Rail 
Passenger Service Act (45 U.S.C. 546) is further amended by adding at 
the end thereof the following new subsections: 
"(1) The Corporation shall not be subject to any State or local law 
relating to pay periods or days for payment of employees. No 
employee of the Corporation shall be paid less frequently than such 
employee is paid as of the effective date of this subsection, other than 
pursuant to an applicable collective bargaining agreement. 
"(m) The Corporation shall be deemed to be qualified to do business 
in each State in which it performs any activity authorized under this 
Act. In connection with the performance of such activities, the 
Corporation shall accept service of process addressed by certified mail 
to the secretary of the Corporation at its principal office and place of 
business in Washington, District of Columbia. The Corporation shall 
be deemed to be a citizen of the District of Columbia for the purpose of 
determining the original jurisdiction of the district courts of the 
United States in civil actions to which the Corporation is party.". 
93 STAT. 542 
PUBLIC LAW 96-73—SEPT. 29, 1979 
REPORTS TO THE CONGRESS 
45 use 548. 
SEC. 113. Section 308(a)(1) of the Rail Passenger Service Act of 1970 
is amended to read as follows: 
"(a)(1) Not later than the 45th day following the end of each 
calendar month, the Corporation shall transmit to the Congress and 
release to the public the following information applicable to its 
operations for such calendar month:' . 
UNIFORM CONTRACT 
SEC. 114. Section 402 of the Rail Passenger Service Act (45 U.S.C. 
562) is amended by adding at the end thereof the following new 
subsection: 
"(g) The Corporation shall enter into a contract with rail carriers 
on an industrywide basis to establish rights for the operation of 
special or charter trains between specific routes and points anywhere 
in the Nation upon provision of reasonable notice (of not less than 
seven days) to the carriers involved in the operation of any special or 
charter trains, except that with respect to rail lines on which rail 
passenger service has not been operated for the preceding 180 days, 
reasonable notice under this sentence shall be notice of not less than 
21 days. If the Corporation and the rail carriers are unable to reach 
agreement by January 1, 1981, the Commission shall, upon applica-
tion by the Corporation, order rail services to be provided under this 
subsection and shall, consistent with just and reasonable compensa-
tion principles, determine within 180 days after such date the proper 
amount of compensation for the provision of such services and the 
proper method of prior notification of the schedule and routing of a 
special or charter train by the Corporation." 
NEW SERVICE 
SEC. 115. ROUTE ADDITIONS.—Section 403(a) of the Rail Passenger 
Service Act (45 U.S.C. 563(a)) is amended to read as follows: 
"(a) Except as otherwise provided in this Act, after October 1, 1979, 
all route additions shall be in accordance with the Route and Service 
Criteria.". 
(b) SUBSIDIZED SERVICE.—Section 403(b) of the Rail Passenger 
Service Act (45 U.S.C. 563(b)) is amended to read as follows: 
Application for 
"(b)(1)(A) Any State or group of States, or any regional or local 
additional 
agency, may submit an application to the Corporation requesting the 
service. 
institution of rail passenger service in addition to that service 
provided in the basic system. 
"(B) An application for rail passenger service under this subsection 
shall be submitted at least 180 days prior to the beginning of the fiscal 
year in which such service is to be operated, except that an applica-
tion for service to be operated in the fiscal year ending September 30, 
1980, shall be submitted no later than the 60th day following the 
beginning of such fiscal year. 
"(C) Each application by a State or agency for rail passenger service 
under this subsection shall contain— 
"(i) adequate assurances by such State or agency that it has 
sufficient resources to meet its share of the cost of such service 
for the period such service is to be provided; 
"(ii) a market analysis acceptable to the Corporation to ensure 
that there is adequate demand to warrant such service; 
"(iii) a statement by such State or agency that it agrees to 
provide 20 percent of the solely related costs of such service in 
PUBLIC LAW 96-73—SEPT. 29, 1979 
93 STAT. 543 
Technical 
Assistance 
Panel. 
Members of 
panel. 
the first year of operation, 35 percent of such costs in the second 
year of operation, and 50 percent of such costs in each year of 
operation thereafter; and 
"(iv) a statement by such State or agency that it agrees to 
provide, in each year of operation of such service, 50 percent of 
the associated capital costs of operating such service. 
"(2)(A) The Corporation shall review each application submitted by 
a State or agency for the institution of service under this subsection 
and shall convene a Technical Assistance Panel to consider such 
application if the Corporation determines that— 
"(i) the application complies with requirements of paragraph 
(1)(C) of this subsection; and 
"(ii) there is a reasonable probability that the service requested 
can be provided with the resources available to the Corporation. 
"(B) The Corporation shall make its determinations under this 
paragraph, and convene a panel if appropriate, at least 150 days prior 
to the beginning of the fiscal year in which the service requested is to 
be operated, except that with respect to an application for service to 
be operated in the fiscal year ending September 30, 1980, the 
Corporation shall make its determinations, and convene a panel if 
appropriate, no later than 30 days after the date such application is 
submitted. 
"(C) Any application submitted by a group of States shall be 
considered in the same manner as an application submitted by a 
single State, and not on the basis of whether each State that is a party 
to such application meets the requirements of paragraph (1)(C) of this 
subsection. 
"(3)(A) Each panel convened by the Corporation to consider an 
application shall be composed of— 
"(i) a State rail planning official from each State that is a party 
to the application; 
"(ii) a representative of the Corporation; 
"(iii) a representative from a railroad labor organization repre-
senting operating crafts of employees; and 
"(iv) a representative from a railroad labor organization repre-
senting nonoperating crafts of employees. 
"(B) The Corporation shall submit to each panel data projecting the 
solely related costs and associated capital costs of operating the 
service under consideration. Each panel shall, no later than 90 days Recommendations. 
after the date it is convened, consider and make recommendations to 
the Corporation with respect to— 
"(i) appropriate measures for minimizing such costs, including 
measures such as— 
"(I) the assumption by the applicant State or agency of 
certain responsibilities in connection with the operation of 
the service under consideration; and 
"(II) a reduction in the labor costs of operating such 
service; and 
"(ii) if more than one State is a party to the application, the 
appropriate manner for allocating such costs among the appli-
cant States. 
"(4)(A) After taking into account the recommendations of the panel 
with respect to rail passenger service requested by a State or agency 
under this subsection, the Corporation shall enter into an agreement 
with such State or agency for the institution of such service, in 
accordance with the funding formula set forth in paragraph (1)(C) of 
this subsection, if the Corporation determines that such service can 
be provided with resources available to the Corporation. 
Agreements. 
93 STAT. 544 
PUBLIC LAW 96-73—SEPT. 29, 1979 
Fare increases. 
Federal funds, 
limitation. 
Ante, p. 537. 
Additional 
frequencies of 
service. 
Reimbursement. 
Advertising and 
promotion, 
limitation. 
"(B) An agreement entered into pursuant to this section may by 
mutual agreement be renewed for one or more additional terms of not 
more than 2 years. 
"(C) If more than one application is made for service and all 
applications are consistent with the requirements of this subsection, 
but all the services applied for cannot be provided with the available 
resources of the Corporation, the Board of Directors shall decide in its 
discretion which application or applications best serve the public 
interest and can be provided with the available resources of the 
Corporation, except that a proposal for State support of a service 
deleted from the basic system in effect prior to October 1,1979, or the 
basic system in effect after such date, shall be given preference. 
"(5) Prior to instituting any fare increase that applies to service 
provided under this subsection and that represents an increase of 
more than 5 percent over a 6-month period, the Corporation shall 
consult with and obtain the views of the appropriate officials of each 
State to be affected by such fare increase. The Corporation shall 
provide the officials of each such State with an explanation of the 
circumstances warranting the proposed fare increase (such as the 
unique costs of or demand for the services involved). 
"(6)(A) Federal funds available for expenditure under this subsec-
tion shall not be in substitution for the average amount of State and 
local funds expended for the operation of rail services under this 
subsection in the State for the two fiscal years preceding the fiscal 
year for which the funds are made available. 
"(B) If service provided under this subsection on the date of 
enactment of the Amtrak Reorganization Act of 1979 is terminated 
by a State or agency and such State or agency subsequently decides to 
resume such service, the Corporation shall agree to provide funding 
at the level provided under the contract in effect on such date of 
enactment. 
"(C) A State may add additional frequencies of service on an 
existing route. Additional frequencies shall be initiated in accordance 
with the funding formula described in paragraph (1)(C) of this 
subsection, without regard to funding ratios then in effect on other 
frequencies on such existing route. 
"(7)(A) Any funds provided by the Corporation under an agreement 
with an agency pursuant to this subsection which are allocated for 
associated capital costs and which are not expended during the fiscal 
year for which they are provided shall remain available until 
expended. 
(B) An agency entering into an agreement with the Corporation 
for the operation of service under this subsection shall be entitled to 
reimbursement for staff services in an amount equal to 1V2 percent of 
the operating losses and associated capital costs. 
"(C) The Board of Directors shall establish the basis for determining 
the solely related costs and associated capital costs of service operated 
under this subsection, and the total revenue from such service. 
"(8) Not more than five percent of all revenues generated by each 
particular route operated under the authority of this subsection shall 
be dedicated to advertising and promotion of such service on a local 
level". 
(c) REPEAL.—Section 403(c) of the Rail Passenger Service Act (45 
U.S.C. 563(c)) is repealed. 
(d) COMMUTER SERVICE.—Section 403(d) of the Rail Passenger 
Service Act (45 U.S.C. 563(d)) is amended— 
(1) by inserting "(1)" immediately before "The Corporation"; 
(2) by inserting immediately after the first sentence thereof the 
following: "An agreement made pursuant to this section may by 
PUBLIC LAW 96-73—SEPT. 29, 1979 
93 STAT. 545 
mutual agreement be renewed for one or more additional terms 
of not more than two years."; and 
(3) by adding at the end thereof the following new paragraphs: 
"(2) Any rail passenger service which is operated by the Corpora-
tion on January 1, 1979, and which constitutes commuter rail 
passenger service as defined in paragraph (1) of this subsection shall, 
until April 1, 1981, continue to be operated by the Corporation and 
funded in accordance with the method of funding in effect for that 
service on January 1, 1979. In addition, any rail passenger service 
which (A) is operated by the Consolidated Rail Corporation, (B) is the 
subject of an application for discontinuance filed with the Commis-
sion before July 15,1979, and (C) constitutes commuter rail passenger 
service as defined in paragraph (1) of this subsection shall, until April 
1, 1981, be operated by the Corporation and funded by the Corpora-
tion in the same manner as service operated under the preceding 
sentence. 
"(3) The Corporation shall, until April 1, 1981, continue to accept 
commuter based fares for any rail passenger service which it operates 
and for which such fares are accepted on January 1,1979. Nothing in 
this paragraph shall be construed as prohibiting the Corporation or 
any other railroad from increasing the amount of any fare charged 
for rail passenger service." 
Commuter based 
fares. 
SERVICE CHANGES 
SEC. 116. (a) SERVICE CHANGES.—Section 404(b) of the Rail Passen-
ger Service Act (45 U.S.C. 564(b)) is amended to read as follows: 
"(b) After October 1,1979, all route discontinuances by the Corpora-
tion shall be in accordance with the Route and Service Criteria.". 
(b) TECHNICAL AMENDMENT.—Section 404 of the Rail Passenger 
Service Act (45 U.S.C. 564) is amended by striking out 
"SEC. 404. DISCONTINUANCE OF SERVICE." 
and inserting in lieu thereof 
"SEC. 404. SERVICE CHANGES." 
APPLICATION OF ROUTE AND SERVICE CRITERIA 
SEC. 117. Section 404(c) of the Rail Passenger Service Act (45 U.S.C. 
564(c)) is amended by adding at the end thereof the following new 
paragraph: 
"(4)(A) The Corporation shall conduct an annual review of each 
long-distance route in the basic system to determine if such route 
meets the criteria set forth in paragraph (1) of subsection (d) of this 
section, as adjusted to reflect constant 1979 dollars. If the Corporation 
determines, on the basis of such review, that a route fails to meet the 
criteria set forth in such paragraph, the Corporation shall evaluate 
such route under the Route and Service Criteria. If the Corporation 
determines, on the basis of such evaluation, that such route fails to 
meet the Route and Service Criteria, the Corporation shall dis-
continue the operation of rail passenger service over such route. 
"(B) The annual review conducted by the Corporation under 
subparagraph (A) shall include an evaluation of the potential market 
demand for, and the cost of providing service on, portions or segments 
of long-distance routes, and the potential market demand for, and 
cost of providing service on, alternative routings. The Corporation 
shall transmit the results of the annual review to each House of the 
Congress and to the Secretary of Transportation.". 
Review of long-
distance routes. 
Review results, 
transmittal to 
Congress and 
Secretry of 
Transportation. 
59-194 O - 81 
37 : QL3 
93 STAT. 546 
PUBLIC LAW 96-73—SEPT. 29, 1979 
EXCEPTIONS TO APPLICABILITY OF ROUTE AND SERVICE CRITERIA 
SEC. 118. Section 404(c) of the Rail Passenger Service Act (45 U.S.C. 
564(c)), as amended by this Act, is further amended by adding at the 
end thereof the following new paragraph: 
"(5) The Route and Service Criteria shall not apply to— 
"(A) decisions of the Corporation to increase or, where con-
struction schedules, other temporary disruptive factors, or sea-
sonal fluctuations in ridership so warrant, to decrease frequency 
of service on existing routes or portions of existing routes or on 
routes where an additional frequency of service is being tested; 
and 
"(B) rerouting of service between major population centers on 
existing routes.". 
ADDITIONAL QUALIFYING ROUTES 
SEC. 119. Section 404 of the Rail Passenger Service Act (45 U.S.C. 
564) is amended by adding at the end thereof the following new 
subsections: 
"(d)(1) Where reductions in operating expenses can be obtained, the 
Corporation shall operate rail passenger service over any long dis-
tance route which is recommended for discontinuance by the Secre-
92 Stat. 923. 
tary pursuant to section 4 of the Amtrak Improvement Act of 1978, 
45 use 521 note, with or without any restructuring of such route to serve major 
population centers as end points or principal intermediate points, in 
order to maintain a national intercity rail passenger system, if— 
"(A) the short term avoidable loss per passenger mile on such 
route, as calculated by the Corporation and projected for the 
fiscal year ending September 30, 1980, is not more than 7 cents 
per passenger mile; and 
"(B) the passenger mile per train mile on such route, as 
calculated by the Corporation and projected for the fiscal year 
ending September 30,1980, is not less than 150. 
Short term avoidable loss per passenger mile calculated by the 
Corporation for purposes of this subsection shall be based upon 
consistently defined factors for all types of routes, and such short 
term avoidable loss and passenger mile per train mile shall be 
calculated in the same manner for all routes. The Corporation shall 
make its calculations under this subsection on the basis of the most 
recent available statistics for a 90-day period, except that the Corpo-
ration may also utilize historical data (such as seasonal fluctuations 
in ridership) as long as such data is adjusted to reflect the most 
Report to 
recent available statistics. The Corporation shall, no later than 30 
^°!!fZ1f 
fi°=^^ 
^^ys after the effective date of this subsection, submit a report to the 
""""" ""° 
Interstate and Foreign Commerce Committee of the House of Repre-
sentatives and the Committee on Commerce, Science, and Transpor-
tation of the Senate on the methodology, equations, factors used, 
assumptions, and results in connection with the calculation of short 
term avoidable loss per passenger mile and passenger mile per train 
mile under this subsection. 
"(2) Where reductions in operating expenses can be obtained, the 
Corporation shall operate rail passenger service over any short-
distance route which is recommended for discontinuance by the 
Secretary pursuant to section 4 of the Amtrak Improvement Act of 
1978 with or without any restructuring of such route to serve major 
population centers as end-points or principal intermediate points, in 
order to maintain a national intercity rail passenger system, if— 
committees. 
PUBLIC LAW 96-73—SEPT. 29, 1979 
93 STAT. 547 
"(A) the short-term avoidable loss per passenger mile on such 
route, as calculated by the Corporation and projected for the 
fiscal year ending September 30, 1980, is not more than 9 cents 
per passenger mile; and 
"(B) the passenger mile per train mile, as calculated by the 
Corporation and projected for the fiscal year ending September 
30,1980, is not less than 80. 
"(e)(1) In order to preserve regional balance in the national inter-
city rail passenger system and to ensure that long-distance routes 
recommended for discontinuance by the Secretary pursuant to sec-
tion 4 of the Amtrak Improvement Act of 1978 which provide service 92 Stat. 923. 
to regions with few population centers in a large geographic area 45 use 521 note. 
have equal opportunity to qualify for continued operation, the Corpo-
ration shall operate a long-distance route in each section of the 
United States (with sections being determined by dividing the United 
States into four quadrants) if— 
"(A) service is not maintained on any long-distance route in 
that section under the criteria set forth in subsection (d)(1) of this 
section; and 
"(B) the Corporation determines that (i) a long-distance route 
exists in that section which has shown and will show improve-
ments in performance under the criteria, set forth in subsection 
(d)(1) of this section, and (ii) such route shows potential, under such 
criteria, to warrant maintenance in the system. 
"(2) The Corporation shall not continue to operate any route under 
this subsection if service is provided on a significant part of that route 
by any other route. 
"(3) Service operated on a route under this subsection shall con-
tinue to be operated after October 1,1981, only if such route meets the 
criteria set forth in subsection (d)(1) of this section: Provided, That the 
Corporation shall continue to operate the Inter-American train to the 
Mexican border if that train meets the criteria set forth above. 
"(f) For the purpose of this section and section 4 of the Amtrak 
Improvement Act of 1978, the reference to Tampa in table 4-1 at page 
4-7 of the Secretary's Final Report to Congress on the Amtrak Route 
System, dated January 1979, shall be deemed to mean Saint 
Petersburg. 
"(g) Notwithstanding any other provisions of this Act (including 
the requirements of section 403(d)), the Corporation is authorized, to Ante, p. 544. 
the extent available resources permit, to operate short-haul trains, on 
a demonstration basis for the purpose of determining the feasibility 
and benefits of such services, on additional routes of 200 miles or less 
which link two or more major metropolitan areas.". 
FREE OR REDUCED RATE TRANSPORTATION OF RAILROAD EMPLOYEES 
SEC. 120. (a) REIMBURSEMENT RATE.—Section 405(f) of the Rail 
Passenger Service Act (45 U.S.C. 565(f)) is amended by striking out 
"The Corporation shall be reimbursed" and all that follows through 
"in accordance with the agreements." and inserting in lieu thereof 
the following: "Unless the Corporation and a railroad or group of 
railroads agree on a different basis for compensation, the Corporation 
shall, during the 2-year period beginning on the effective date of the 
Amtrak Reorganization Act of 1979, be reimbursed by each railroad 
at the rate of 25 percent of the systemwide average monthly yield per 
revenue passenger mile. Reimbursement at this rate is in lieu of any 
charges for liability incident to travel of railroad employees eligible 
for free or reduced-rate transportation and any other costs incurred 
by the Corporation in connection with free or reduced-rate transpor-
93 STAT. 548 
PUBLIC LAW 96-73—SEPT. 29, 1979 
45 u s e 565 note. 
Ante, p. 547. 
tation and any other costs incurred by the Corporation in connection 
with free or reduced-rate transportation. Nothing in this subsection 
shall preclude the Commission from ordering retroactive relief in any 
proceeding instituted or reopened after October 1,1981.". 
Qo) REPORT.—The Comptroller General shall conduct a study of the 
free or reduced-rate transportation provided to railroad employees by 
the National Railroad Passenger Corporation under section 405(f) of 
the Rail Passenger Service Act. Within 180 days after the effective 
date of this Act, the Comptroller General shall submit a report to the 
Congress and to the Interstate Commerce Commission setting forth 
recommendations regarding the appropriate means for reimbursing 
the Corporation for the cost of providing such transportation services, 
taking into account the value of the services being provided. 
45 u s e 566. 
Downgrading or 
disposal of a 
facility. 
Notification. 
Approval. 
RETENTION AND MAINTENANCE OF FACILITIES 
SEC. 121. Title IV of the Rail Passenger Service Act (45 U.S.C. 561 et 
seq.) is amended by adding at the end thereof the following new 
section: 
"SEC. 
406. RETENTION AND MAINTENANCE OF FACILITIES. 
"(a) No facilities of a railroad (including a regional transportation 
agency) which are used in the operation of rail passenger services by 
the Corporation on February 1,1979, shall be downgraded or disposed 
of without obtaining the prior approval of the Secretary under this 
section. 
"(b) Whenever any railroad intends to downgrade or dispose of a 
facility referred to in subsection (a) of this section which is not 
currently being used in the operation of services by the Corporation, 
such railroad shall first notify the Corporation of its intention to take 
such action. If, within 60 days after receipt by the Corporation of such 
notice, the Corporation and such railroad are not able to enter into an 
agreement for the retention or maintenance of such facility or for the 
conveyance to the Corporation of such facility or an interest therein, 
the railroad may apply to the Secretary for approval of the downgrad-
ing or disposal of the facility. 
"(c)(1) If the Corporation does not object to an application of a 
railroad to downgrade or dispose of a facility within 30 days after the 
date such application is submitted, the Secretary shall promptly 
approve such application. 
"(2) If the Corporation makes a timely objection to such an 
application, the Secretary shall, within 180 days after the date of such 
objection, determine the costs which the railroad could avoid if it 
were not required to maintain or retain the facility in the condition 
requested by the Corporation. If the Corporation does not, within 60 
days after the date of the Secretary's determination, agree to pay 
such avoidable costs to the railroad, the Secretary shall approve such 
application. 
"(d)(1) In electing whether to enter into an agreement pursuant to 
this section to pay a railroad the avoidable costs of maintaining or 
retaining a facility, the Corporation shall consider— 
"(A) the potential importance of restoring rail passenger 
service on the route on which such facility is located; 
"(B) the market potential of such route; 
"(C) the availability, adequacy, and energy efficiency of alter-
nate modes or alternate rail lines for providing passenger trans-
portation to or near the points which would be served by the 
route; 
»-x > 
PUBLIC LAW 96-73—SEPT. 29, 1979 
93 STAT. 549 
"(D) the extent to which major population centers would be 
served by such route; 
"(E) the extent to which the provision of service over such 
route would encourage the expansion of a national intercity rail 
passenger system; and 
"(F) the possibility of increased ridership on lines of railroad 
connecting with such route. 
"(2)(A) In order to prepare for a valid and timely analysis of a 
facility, after a railroad gives notice pursuant to this section that it 
intends to downgrade or dispose of such facility, the Corporation shall 
conduct a survey of population centers with railroad passenger 
service facilities and shall update such survey from time to time as 
may be necessary or appropriate. Within 90 days after the date of Survey plan, 
enactment of this section, the Corporation shall take steps to prepare 
a survey plan which shall provide for— 
"(i) a target completion date for the survey of population 
centers of not later than 360 days after the ninetieth day after 
such date of enactment; and 
"(ii) a system of collection, compilation, and storage of informa-
tion gathered pursuant to the survey according to geographic 
region and according to whether a facility would be part of a 
short- or long-haul route. 
"(B) The survey should facilitate an analysis of— 
"(i) ridership potential by ascertaining existing travel patterns 
or changing travel patterns which would maximize efficiencies of 
railroad passenger service; 
"(ii) the quality of service of competitors or likely competitors; 
"(iii) the likelihood of the Corporation offering service at a 
competitive fare; 
"(iv) opportunities to target advertising and fares to potential 
classes of riders; 
"(v) economic characteristics of railroad passenger service 
associated with a facility and the extent to which such character-
istics are consistent with sound economic principles of short- or 
long-haul railroad operations; and 
"(vi) the feasibility of applying effective internal cost controls 
to a facility and the route which the facility would serve in order 
to improve over time the ratio of transportation expenses, 
excluding maintenance of track, structure, and equipment and 
'' 
depreciation, to passenger revenue. 
"(e) For purposes of this section— 
Definitions. 
"(1) the term 'facilities' means railroad tracks, rights-of-way, 
fixed equipment and facilities, and real property appurtenant 
thereto, and includes signal systems, passenger station and 
repair tracks, station buildings, platforms, and adjunct facilities 
such as water, fuel, steam, electric, and air lines; 
"(2) the downgrading of a facility means a reduction in track 
classification as specified in the Federal Railroad Administration 
track safety standards (49 C.F.R. 213), or any other change in 
such facilities which may increase the time required for a 
passenger train to operate over the route on which such facility is 
located; and 
"(3) approval of downgrading or disposal under this section 
shall not be construed as relieving a railroad from compliance 
with its other common carrier or legal obligations with respect to 
a facility." 
93 STAT. 550 
PUBLIC LAW 96-73—SEPT. 29, 1979 
AUTHOSIZATION OF APPROPRIATIONS 
SEC. 122. (a) AUTHORIZATION.—Section 601 of the Rail Passenger 
Service Act (45 U.S.C. 601) is amended by adding at the end thereof 
the following new subsection: 
"(b)(1) There are authorized to be appropriated to the Secretary for 
the benefit of the Corporation— 
"(A) for the payment of operating expenses, not to exceed 
$630,900,000 for the fiscal year ending September 30, 1980, and 
not to exceed $674,900,000 for the fiscal year ending September 
30, 1981, of which not less than $1,200,000 for the fiscal year 
ending September 30, 1980, and $1,000,000 for the fiscal year 
ending September 30, 1981, shall be available for the cost of 
Model Programs; 
"(B) for the payment of the costs of capital acquisition or 
improvements to the basic system, including the payment of 
expenses for the retention and maintenance of facilities under 
Ante, p. 548. 
section 406 of this Act, not to exceed $203,000,000 for the fiscal 
year ending September 30, 1980, not to exceed $244,000,000 for 
the fiscal year ending September 30, 1981, and not to exceed 
$254,000,000 for the fiscal year ending September 30, 1982; 
"(C) for the payment of operating and capital expenses of rail 
Ante, p. 542. 
passenger service provided pursuant to section 403(b) of this Act, 
not to exceed $23,800,000 for the fiscal year ending September 30, 
1980, not to exceed $29,000,000 for the fiscal year ending Septem-
ber 30, 1981, and not to exceed $30,000,000 for the fiscal year 
ending September 30,1982; 
"(D) for labor protection pa3rments required pursuant to sec-
tion 405 of this Act, not to exceed $30,000,000 for the fiscal year 
ending September 30, 1980, not to exceed $12,000,000 for the 
fiscal year ending September 30, 1981, and not to exceed 
$20,000,000 for the fiscal year ending September 30, 1982; and 
any sums authorized by this subparagraph which remain availa-
ble after such labor protection payments are made shall be made 
available to the Corporation for use in the payment of expenses 
and costs in accordance with subparagraphs (A) and (B) of this 
paragraph; and 
"(E) for the payment of the principal of obligations (other than 
leases) of the Corporation which are guaranteed by the Secretary 
45 use 602. 
pursuant to section 602 of this Act, not to exceed $25,000,000 for 
the fiscal year ending September 30, 1980, not to exceed 
$25,000,000 for the fiscal year ending September 30,1981, and not 
to exceed $25,000,000 for the fiscal year ending September 30, 
1982. 
"(2) Funds appropriated pursuant to this section shall be made 
available to the Secretary during the fiscal year for which appropri-
ated, except that appropriations for capital acquisitions and improve-
ments may be made in an appropriations Act for a fiscal year 
preceding the fiscal year in which the appropriation is to be available 
for obligation. Funds appropriated are authorized to remain available 
until expended. Appropriated sums shall be paid by the Secretary to 
the Corporation for expenditure by it in accordance with (A) the 
Secretary's budget request as approved or modified by Congress at 
the time of appropriation, and (B) guidelines established by the 
Secretary. Payments by the Secretary to the Corporation of appropri-
ated funds shall be made no more frequently than every 90 days, 
unless the Corporation, for good cause, requests more frequent 
payment before the expiration of any 90-day period. 
PUBLIC LAW 96-73—SEPT. 29, 1979 
93 STAT. 551 
"(3) Funds appropriated for capital grants pursuant to this subsec-
tion shall be paid to the Corporation in each fiscal quarter, and such 
grants may be used by the Corporation for temporary reduction of 
outstanding loan balances, including loans guaranteed by the Secre-
tary pursuant to section 602 of this Act.". 
(b) TECHNICAL AMENDMENTS.—(1) Section 601 of the Rail Passenger 
Service Act (45 U.S.C. 601) is amended— 
(A) by striking out "(a)(1)" and inserting in lieu thereof "(a)"; 
and 
(B) by striking out "(2) Funds appropriated for" and all that 
follows through "of this Act". 
(2) Section 602(d) of the Rail Passenger Service Act (45 U.S.C. 
602(d)) is amended by striking out "clause (3) of section 601(a)" and 
inserting in lieu thereof "section 601(a)(3) or section 601(b)(1)(E)". 
EMPLOYEE COMPENSATION AND INCENTIVE COMMISSION 
SEC. 123. Title VIII of the Rail Passenger Service Act (45 U.S.C. 641 
et seq.) is amended by adding at the end thereof the following new 
section: 
"SEC. 808. EMPLOYEE COMPENSATION AND INCENTIVE COMMISSION. 45 USC 647. 
"(a) The Secretary shall, within 30 days after the date of enactment 
of this section, name a five-member Employee Compensation and 
Incentive Commission. The members of the Commission shall be 
selected on the basis of their knowledge of the railroad industry. 
"(b) The Employee Compensation and Incentive Commission Functions. 
shall— 
"(1) evaluate the salary paid officers of Amtrak in relation to 
Amtrak's ability to attract and maintain qualified officers; and 
"(2) after consultation with the Corporation and railroad labor 
organizations, develop a program for improving Amtrak em-
ployee incentive and morale, including measures such as the insti-
tution of recognition and financial awards for outstanding 
employees. 
"(c) The Employee Compensation and Incentive Commission 
shall, no later than March 1, 1980, submit recommendations to 
the Board of Directors of the Corporation with respect to the 
matters referred to in subsection (b) of this section. The Board of 
Directors shall, within 90 days after the date of submission, notify 
the Congress of (1) any action it plans to take to implement the 
Commission's recommendations, and (2) any proposals for addi-
tional legislation which the board considers necessary.". 
MODEL PROGRAMS 
SEC. 124. Title VIII of the Rail Passenger Service Act (45 U.S.C. 641 
et seq.), as amended by this Act, is further amended by adding at the 
end thereof the following new section: 
"SEC. 809. MODEL PROGRAMS. 
45 uSC 648. 
"Not later than October 1,1979, the Corporation shall, in consulta-
tion with railroad labor organizations, develop and implement a Job 
Placement Program for employees who will be affected by the 
reduction in work force caused by the implementation of the Secre-
tary's recommendations for the restructuring of routes. Such pro-
gram shall emphasize the facilitation of reemployment of employees 
dismissed or dislocated as a result of corporate restructuring. In 
93 STAT. 552 
PUBLIC LAW 96-73—SEPT. 29, 1979 
carrying out its responsibilities under this section, the Corporation 
shall attempt to reduce labor protection costs and maximize utiliza-
tion of the employment skills of affected employees. Such program 
may include job counseling, placement advertising, skills improve-
ment courses, and such other activities as the Corporation considers 
appropriate to facilitate reemployment of affected employees within 
or outside the rail industry." 
STATE TAXATION STUDY 
SEC. 125. Title VIII of the Rail Passenger Service Act (45 U.S.C. 641 
et seq.), as amended by this Act, is further amended by adding at the 
end thereof the following new section: 
45 u s e 649. 
"SEC. 810. STATE TAXATION STUDY. 
"The Secretary shall conduct a study of the payment of taxes by the 
Corporation to State and local governments, including the payment 
of property taxes, sales taxes, gross revenue taxes, fuel taxes, licenses, 
and other user fees, and any other taxes paid by the Corporation to 
such governments, and shall make recommendations to the Congress 
no later than January 1,1980, concerning the advisability of relieving 
the Corporation, either in whole or in part, of its obligation to make 
such payments. In conducting such study, the Secretary shall 
consider— 
"(1) the requirement that the Corporation be operated and 
managed as a for-profit corporation; 
"(2) the certainty that the Corporation will need substantial 
Federal subsidies for the foreseeable future; 
"(3) the demand by States and localities for continued and 
increased federally funded rail passenger service; 
"(4) the benefit to States and localities of rail passenger service 
directly funded by the Federal Government; and 
"(5) the importance to the Nation of maintaining an efficient 
and reliable national rail transportation system." 
REPORT ON REVENUES AND EXPENSES 
SEC. 126. Title VIII of the Rail Passenger Service Act (45 U.S.C. 641 
et seq.), as amended by this Act, is further amended by adding at the 
end thereof the following new section: 
"REVENUE REPORT 
45 use 650. 
"SEC. 811. Within 60 days of the end of each fiscal year beginning 
with fiscal year 1981, the Corporation shall report to the Congress on 
the ratio of revenue to operating expenses on all routes in the basic 
system. As part of such report, the Corporation shall specifically 
identify those train routes which did not achieve a 50 percent 
revenue-to-expense ratio, and the Corporation shall include state-
ments explaining the reasons which prevented such ratios from being 
achieved.' 
IMPLEMENTATION OF THE NEW ROUTE PLAN 
SEC. 127. Section 4(g) of the Amtrak Improvement Act of 1978 
92 Stat. 923. 
(Public Law 95-421) is amended by striking out the period at the end 
45 use 521 note, thereof and inserting in lieu thereof the following: ": Provided, 
however. That implementation of the Secretary's recommendations 
which require (1) operation over rail lines not used in intercity 
passenger service upon the date of approval thereof; (2) use of new 
PUBLIC LAW 96-73—SEPT. 29, 1979 
93 STAT. 553 
facilities; or (3) new labor agreements, may be deferred by the 
Corporation until any necessary capital improvements in such lines 
or facilities, or required labor agreements, are made, to permit 
service that is equivalent or improved service and is consistent with 
the goals contained in subsection (a) of this section: And provided 
further, That, notwithstanding any other provision of law, pending 
deferred implementation of such recommendations, the Corporation 
shall provide substitute service over existing routes which are recom-
mended for restructuring in whole or in part and over other feasible 
existing routes, without reference to the Route and Service Criteria. 
Substitute service provided over an existing route under this para-
graph shall continue to be operated after October 1,1981, only if such 
route meets the criteria set forth in section 404(d)(1) of the Rail 
Passenger Service Act, as adjusted to reflect constant 1979 dollars; Ante, p. 546. 
but excepting any short-haul route concentrating on commuter 
ridership.". 
INTERMODAL TERMINAL PROGRAM 
SEC. 128. The first sentence of section 4(i)(5) of the Department of 
Transportation Act (49 U.S.C. 1653(i)(5)) is amended by striking out 
"within two years following the approval of the application for 
Federal financial assistance under this subsection" and inserting in 
lieu thereof "within such time period as the Secretary establishes". 
Report to 
Congress. 
45 u s e 602 note. 
GAO STUDY OF DEBT EUMINATION 
SEC. 129. Within 180 days after the effective date of this Act, the 
Comptroller General shall submit a report to the Congress recom-
mending appropriate means for the National Railroad Passenger 
Corporation to eliminate the obligations of the Corporation that are 
guaranteed under section 602 of the Rail Passenger Service Act. In 45 use 602. 
developing such recommendations, the Comptroller General shall 
consider (1) the feasibility of converting such obligations into stock 
issued by the Corporation, (2) the likelihood of obligation retirement 
from profits of the Corporation, (3) the ability of the Corporation to 
continue to carry its debt service within the context of operating 
subsidies, fairly and accurately reflecting current operating costs, 
and (4) the extent to which debt incurred by the Corporation prior to 
the effective date of this Act should be recognized as unrecoverable. 
SERVICE O N PORTION OR SEGMENT OF DISCONTINUED ROUTES 
SEC. 130. The National Railroad Passenger Corporation shall con- 45 use 564 note, 
duct an evaluation of the possibility of providing rail passenger 
service on a portion or segment of any route over which service is 
discontinued on or after October 1, 1979. Such evaluation shall 
include an examination of the potential market demand for rail 
passenger service over a portion or segment of any such discontinued 
route, and the cost of providing such service. The Corporation shall, 
no later than February 15,1980, submit a report to both Houses of the 
Congress and to the Secretary of Transportation setting forth its 
findings under this section. 
Report to 
eongress and 
Secretary of 
Transportation. 
MAIL AND EXPRESS REVENUES 
SEC. 131. The National Railroad Passenger Corporation shall, in 
conjunction with the United States Postal Service, determine those 
mail transportation requirements which can be met by the Corpora-
tion and shall develop and submit to the Congress, no later than April 
Report to 
eongress. 
45 u s e 545a 
note. 
93 STAT. 554 
PUBLIC LAW 96-73—SEPT. 29, 1979 
30, 1980, a report setting forth recommendations designed to enable 
the Corporation to achieve maximum levels of mail carriage and 
revenues derived from such carriage. Such report shall include the 
following considerations: 
(1) the modification of existing facilities to handle mail and 
express more efficiently; 
(2) the acquisition of modern materials handling equipment 
and rolling stock; 
(3) optimum scheduling; 
(4) trains devoted exclusively to mail carriage; 
(5) staffing and promotional requirements; and 
(6) proposals for such legislative action as may be appropriate. 
AMTRAK ROUTE ALLOCATION STUDY 
Report to 
SEC. 132. (a) CosT ALLOCATION REPORT.—(1) Not later than April 30, 
45 uscf545 
t 
1980, the President of the National Railroad Passenger Corporation 
"° ^" shall submit a report to the Congress on the feasibility of establishing 
a system of uniform cost allocation for the Corporation which would 
include— 
(A) the avoidable cost by route; 
(B) the revenue (including mail and State subsidies, if any) by 
route; 
(C) the fully allocated cost by route; 
(D) the number of passengers carried by route; 
(E) the avoidable profit or loss by route; 
(F) the fully allocated profit or loss by route; 
(G) the profit or loss per passenger by route; and 
(H) the profit or loss by revenue passenger mile. 
Definitions. 
(2) For the purposes of this section, the term— 
(A) "avoidable profit or loss" means the result of all revenue 
attributable to a route minus all reasonable and necessary 
expenses (including use of tracks and other facilities) which 
would be incurred by a carrier in providing a service which the 
carrier can establish that it would not incur if such service were 
not operated, and all other services were continued; such costs 
shall be restricted to costs solely related to the service and 
variable portion of common costs which would not be incurred 
but for the existence of the service; such costs shall exclude fixed 
common costs, allocation of any common costs which do not vary 
as a consequence of providing the service, return on investment, 
rent, and any other costs which the carrier cannot establish that 
it would not have reasonably and necessarily incurred but for the 
existence of the service; 
(B) "fully allocated profit or loss" means the avoidable costs 
plus all other costs, other than unallocated costs, allocated to a 
route according to the Corporation's current accounting prac-
tices; and 
(C) "unallocated costs" means those corporate interest, gen-
eral, and administrative costs not assigned to particular routes. 
(b) PROFIT AND Loss REPORT.—(1) The Corporation shall prepare 
and submit to the Committee on Commerce, Science, and Transporta-
tion and the Committee on Appropriations of the Senate and the 
Committee on Interstate and Foreign Commerce and the Committee 
on Appropriations of the House of Representatives not later than 
April 30,1980, a report containing— 
(A) a profit and loss table by route for the upcoming fiscal year, 
assuming a 50 percent Government reimbursement of the fully 
allocated losses experienced by each such route; and 
PUBLIC LAW 96-73—SEPT. 29, 1979 
93 STAT. 555 
(B) the average ticket subsidy required to show a systemwide 
public service profit (above and beyond such 50 percent Govern-
ment reimbursement) for the upcoming fiscal year. 
(2) Such reports shall be based on the best possible data available to 
the Corporation including, but not limited to, historical ridership 
trends, marketing studies, general economic conditions, ticket pric-
ing policies, levels of services and equipment availability among 
other factors. 
(3) For the purposes of this section, the term "public service profit" 
means the profit or loss experienced on each route after the Govern-
ment subsidies Qooth. operating and ticket) are added to such route's 
revenues. 
TITLE II—AMENDMENTS TO THE REGIONAL RAIL 
REORGANIZATION ACT OF 1973 
"Public service 
profit." 
AUTHORIZATION OF APPROPRIATIONS 
SEC. 201. Section 214(c) of the Regional Rail Reorganization Act of 
1973 (45 U.S.C. 724(c)) is amended to read as follows: 
"(c) ASSOCIATION.—For the fiscal year ending September 30, 1980, 
there are authorized to be appropriated to the Association for 
purposes of carr5dng out its administrative expenses under this Act 
such sums as are necessary, not to exceed $28,500,000. Sums appropri-
ated under this subsection are authorized to remain available until 
expended.". 
REPORT ON SPECIAL COURT PROCEEDINGS 
SEC. 202. Section 202(e) of the Regional Rail Reorganization Act of 
1973 (45 U.S.C. 712(e)) is amended by adding at the end thereof the 
following new paragraphs: 
"(3) The Association shall transmit to the Congress, no later than 
30 days after the end of each fiscal quarter, a report with respect to 
the proceedings before the special court to determine the valuation of 
rail properties conveyed to the Corporation under section 303 of this 
Act. Each such report shall include— 
"(A) a detailed accounting of the Federal funds expended 
during such quarter in connection with such proceedings, and 
the purposes for which such funds were expended; 
"(B) an explanation of the status of such proceedings, including 
the prospects for settlement or conclusion; and 
"(C) an identification of which responsibilities in connection 
with such proceedings are being carried out directly by the 
Association, and which are being carried out by contract with 
private organizations.". 
45 use 743. 
TRANSFER OF FUNCTIONS; MONITORING 
SEC. 203. Section 202 of the Regional Rail Reorganization Act of 
1973 (45 U.S.C. 712) is amended by adding at the end thereof the 
following new subsections: 
"(h) TRANSFER OF LITIGATION.—No later than March 1, 1980, the 
Association and the Attorney General of the United States shall 
develop and submit to the Congress a feasibility study for the 
transfer, to the appropriate department or agency of the Federsd 
Government, of all responsibility for representing the United States 
in the proceedings before the special court to determine the valuation 
Feasibility 
study. 
93 STAT. 556 
PUBLIC LAW 96-73—SEPT. 29, 1979 
of rail properties conveyed to the Corporation under section 303 of 
45 use 743. 
this Act. 
"(i) TRANSFER OF OTHER FUNCTIONS.—NO later than March 1,1980, 
the Association and the Secretary of Transportation shall develop 
and submit to the Congress a feasibility study for the transfer of all 
functions of the Association, other than those referred to in subsec-
tion (h) of this section, to the appropriate department or agency of the 
Federal Government, including the abolition of those functions which 
will no longer be necessary. 
"(j) MONITORING OF CONTRACTORS.—The Board of Directors of the 
Association shall adopt procedures to insure (1) that contractors, 
including law firms, provide reports containing written verification 
of tasks assigned, work performed, time worked, and costs incurred, 
including periodic status reports on work performed, (2) that such 
reports are audited by the Association, (3) that no funds are paid to 
contractors without written reports complying with the requirements 
of this subsection, and (4) that the Association applies such proce-
dures uniformly to all contractors." 
INSURANCE COVERAGE 
SEC. 204. 
(a) 
PAYMENT OF PREMIUMS AND BENEFITS.—Section 
303(b)(6)(B) of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 
743(b)(6)(B)) is amended by striking out the first and second sentences 
and inserting in lieu thereof the following: 
"(B) The Corporation shall, through the purchase of insurance or 
otherwise, maintain in effect any medical insurance coverage or so 
much of any life insurance coverage that does not exceed in death 
benefits an amount equal to twice the employee's annual salary at 
the time of retirement or $60,000, whichever is lower, which coverage 
was maintained by a railroad in reorganization in the region immedi-
ately prior to April 1,1976, and which provides insurance benefits to 
employees who retired, prior to April 1,1976, from service with such a 
railroad. With respect to any such employee whose medical or life 
insurance coverage lapsed after April 1,1976, due to nonpayment of 
premiums, the Corporation shall— 
"(i) through the purchase of insurance or otherwise, provide 
medical insurance benefits or life insurance benefits at the same 
level as were provided by the employer railroad in reorganization 
and in effect with respect to such employees immediately prior to 
April 1, 1976, except that the life insurance benefits so provided 
shall not exceed in death benefits an amount equal to twice the 
employee's annual salary at the time of retirement or $60,000, 
whichever is lower; and 
"(ii) assume and pay any claim for such employee (or his 
personal representative) for any such insurance benefits, if— 
"(I) such claim arose during the period beginning April 1, 
1976, and ending on the date insurance coverage is provided 
pursuant to clause (i) of this subparagraph; 
"(II) such benefits were not paid by an insurer solely 
because of the lapse of the insurance coverage during such 
period, 
except that such death benefits shall not be paid for any such 
employee in excess of an amount equal to twice the employee's 
annual salary at the time of retirement or $60,000, whichever is 
lower.". 
(b) AMENDMENTS TO SECTION 211(h).—(1) Section 211(h)(l)(A)(viii) of 
the 
Regional 
Rail 
Reorganization 
Act of 
1973 (45 U.S.C. 
45 use 721. 
741(h)(l)(A)(viii)) is amended to read as follows: 
PUBLIC LAW 96-73—SEPT. 29, 1979 
93 STAT. 557 
"(viii) amounts required to provide adequate funding for con-
tinuation, by the Corporation, of medical and life insurance 
coverage and benefits for retired employees of railroads in 
reorganization as required and limited by section 303(b)(6)(B) of 
this Act.". 
(2) Section 211(h)(6) of the Regional Rail Reorganization Act of 1973 
(45 U.S.C. 741(h)(6)) is amended- 
45 use 721. 
(A) by inserting "(A)" immediately before "Notwithstanding"; 
(B) by redesignating subparagraphs (A), (B), and (C) as clauses 
(i), (ii), and (iii), respectively, and redesignating clauses (i) and (ii) 
as subclauses (I) and (II), respectively; and 
(C) by adding at the end thereof the following new paragraph: 
"(B) The Association shall have a direct claim, as a current expense 
of administration of the estate of the railroad in reorganization whose 
obligations were paid with the proceeds of loans forgiven under this 
paragraph, equal to the amount by which the loans, plus interest, 
have been forgiven. Such direct claim shall not be subject to any 
reduction by way of setoff, cross-claim, or counterclaim which the 
estate of such railroad in reorganization may be entitled to assert 
against the Corporation, the National Railroad Passenger Corpora-
tion, the Association, or the United States. The direct claim of the 
Association under this paragraph shall be prior to all other adminis-
trative claims of the estate of the railroad in reorganization, except 
claims arising under trustee's certificates or from default on the 
payment of such certificates " 
TITLE III—OFFICE OF RAIL PUBLIC COUNSEL 
AUTHORIZATION OF APPROPRIATIONS 
SEC. 301. Section 10388 of title 49, United States Code, is amended 92 Stat. 1358. 
to read as follows: 
"§ 10388. Authorization of appropriations 
"There is authorized to be appropriated to the Office of Rail Public 
Counsel to carry out this subchapter not to exceed $1,200,000 for the 
fiscal year ending September 30,1980 " 
TITLE IV-AMENDMENTS TO THE RAILROAD REVITALIZA-
TION AND REGULATORY REFORM ACT OF 1976 
EXTENSION OF FINANCIAL ASSISTANCE PROGRAM 
SEC. 401. Sections 505(e), 507(a), 507(d), and 509 of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 825(e), 
827(a), 827(d), and 829) are amended by striking out "September 30, 
1979" each place it appears and inserting in lieu thereof "September 
30,1980" 
93 STAT. 558 
PUBLIC LAW 96-73—SEPT. 29, 1979 
TITLE V-EFFECTIVE DATES 
EFFECTIVE DATES 
45 use 501 note. 
SEC. 501. (a) Except as provided in subsection (b), the provisions of 
this Act shall take effect on October 1,1979. 
45 use 743 note. 
(b) The amendments made by section 204 of this Act shall be 
effective as of the date of 
enactment of Public Law 95-597. 
Approved September 29, 1979. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 96-189 (Comm. on Interstate and Foreign Commerce) and No. 
96-481 (Oomm. of Oonference). 
SENATE REPORT No. 96-183 accompanying S. 712 (Comm. on Commerce, Science, 
and Transportation). 
CONGRESSIONAL RECORD, Vol. 125 (1979): 
July 24, 25, considered and passed House. 
Aug. 1, S. 712 considered and passed Senate. 
Aug. 2, action of Aug. 1 vitiated and H.R. 3996 considered and passed Senate, 
amended, in lieu. 
Sept. 25, Senate agreed to conference report. 
Sept. 27, House agreed to conference report, receded from its disagreement and 
concurred in Senate amendment.