Home > 104th Congressional Bills > S. 1318 (ris) To reform the statutes relating to Amtrak, to authorize appropriations for Amtrak, and for other purposes. [Referral Instructions Senate] ...

S. 1318 (ris) To reform the statutes relating to Amtrak, to authorize appropriations for Amtrak, and for other purposes. [Referral Instructions Senate] ...

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                                                       Calendar No. 206


  1st Session

                                S. 1318

                          [Report No. 104-157]


                                 A BILL

To reform the statutes relating to Amtrak, to authorize appropriations 
                  for Amtrak, and for other purposes.


             October 12 (legislative day, October 10), 1995

                 Read twice and placed on the calendar
                                                       Calendar No. 206
  1st Session
                                S. 1318

                          [Report No. 104-157]

To reform the statutes relating to Amtrak, to authorize appropriations 
                  for Amtrak, and for other purposes.



             October 12 (legislative day, October 10), 1995

      Mr. Pressler, from the Committee on Commerce, Science, and 
 Transportation, reported the following original bill; which was read 
                    twice and placed on the calendar


                                 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 Representatives of the 
United States of America in Congress assembled,


    This Act may be cited as the ``Amtrak and Local Rail Revitalization 
Act of 1995''.


    The Congress finds that--
            (1) intercity rail passenger service is an essential 
        component of a national intermodal passenger transportation 
        system, and the National Railroad Passenger Corporation 
        (Amtrak) must provide a quality transportation product in the 
        form of clean, comfortable, and on-time service to achieve its 
        full potential;
            (2) Amtrak has been forced to significantly cut back its 
        basic system due to cash shortages, and further cutback may be 
        required unless Amtrak is able to reduce its costs and increase 
        its revenues;
            (3) to ensure Amtrak's long-term viability as a provider of 
        intercity rail passenger service, all of Amtrak's stakeholders 
        must participate in efforts to reduce Amtrak's costs and 
        increase its revenues;
            (4) additional management flexibility is needed to allow 
        Amtrak to operate in a businesslike manner in order to adjust 
        quickly to meet demand and changing customer needs;
            (5) Amtrak's management and employees are dedicated to 
        providing the high-quality service that Amtrak's customers 
        deserve but additional capital investment is needed to acquire 
        the modern equipment and efficient facilities that are 
        essential to satisfy the demand for superior intercity rail 
        passenger service;
            (6) adequate levels of capital investment from the Federal 
        Government and State governments and innovative partnerships 
        with the private sector will enable Amtrak to provide the world 
        class service American rail passengers deserve and will help 
        reduce operating costs in the long term;
            (7) Amtrak's management should be held accountable to 
        ensure that all capital investment by the Federal Government 
        and State governments is used effectively to improve the 
        quality of service and the long-term financial health of 
            (8) Amtrak's employees should share equitably in the burden 
        of restoring Amtrak to financial health;
            (9) States, local governments, and private parties can and 
        should play an increasingly significant role in supporting 
        cost-efficient intercity rail passenger transportation and in 
        addressing local transportation needs and air quality control;
            (10) mandatory payments reflecting funds paid into the 
        railroad retirement and railroad unemployment systems on 
        Amtrak's behalf in excess of the funds needed to pay retirement 
        and unemployment benefits for Amtrak's employees and their 
        beneficiaries should not be considered a Federal operating 
        subsidy of Amtrak;
            (11) Federal financial assistance to cover operating losses 
        incurred by Amtrak should be eliminated by the year 2001;
            (12) Amtrak and its employees should proceed quickly with 
        proposals to modify collective bargaining agreements to make 
        more efficient use of manpower and to realize cost savings 
        which are necessary to eliminate Federal financial assistance 
        to cover its operating losses by the fiscal year following the 
        fifth anniversary of the date of enactment of this Act; and
            (13) Amtrak should ensure that new management flexibility 
        produces cost savings without compromising safety.

                      TITLE I--PROCUREMENT REFORMS


    (a) Contracting Out Reform.--Effective 180 days after the date of 
enactment of this Act, section 24312 of title 49, United States Code, 
is amended--
            (1) by striking the paragraph designation for paragraph (1) 
        of subsection (a);
            (2) by striking ``(2)'' in subsection (a)(2) and inserting 
        ``(b)''; and
            (3) by striking subsection (b).
The amendment made by paragraph (3) is without prejudice to the power 
of Amtrak to contract out the provision of food and beverage services 
on board Amtrak trains or to contract out work not resulting in the 
layoff of Amtrak employees.
    (b) Negotiation of Contracting Out Rules.--
            (1) In general.--Within 5 days after the date of enactment 
        of this Act, Amtrak and its labor organizations shall meet to 
        resolve the issue of under what conditions, if any, Amtrak may 
        contract out work normally performed by an employee in a 
        bargaining unit covered by a contract between Amtrak and its 
        labor organizations when the contracting out results in the 
        layoff of employees in the bargaining unit. The issue for 
        negotiation under this paragraph does not include the 
        contracting out of work involving food and beverage services 
        provided on Amtrak trains or the contracting out of work not 
        resulting in the layoff of Amtrak employees.
            (2) Assisted negotiations if issue unresolved within 90 
        days.--If the parties negotiating under paragraph (1) are 
        unable to resolve the issue within 90 days after such date of 
        enactment, they shall each select a neutral person from the 
        list of National Mediation Board arbitrators. The persons 
        selected shall meet and select an arbitrator who will assist 
        the parties in their discussions and arbitrate the dispute if 
        the parties fail to negotiate a resolution of the issue. If the 
        National Mediation Board is not informed of the selection of 
        the arbitrator within 120 days after such date of enactment, 
        the National Mediation Board will immediately select the 
        arbitrator for the issue in dispute. One half of the expenses 
        of the neutral persons and the arbitrator selected under this 
        paragraph will be borne by Amtrak, and the other half by the 
        labor organizations jointly.
            (3) Hearing scheduled.--If the issue remains unresolved 120 
        days after such date of enactment, the arbitrator selected 
        under paragraph (2) shall schedule a hearing to be held 150 
        days after such date of enactment and shall meet with the 
        parties to mediate the issue before the hearing.
            (4) Last best offers.--If the issue has not been resolved 
        before the date of the hearing scheduled under paragraph (3), 
        each party involved in the negotiation shall submit its last 
        best offer to the arbitrator at the time of the hearing.
            (5) Hearing procedure.--At the hearing, the arbitrator 
        shall receive the arguments and supporting evidence for the 
        positions of the parties, as well as any clarifications of last 
        best offers submitted by the parties. All materials to be 
        reviewed by the arbitrator shall be presented at the hearing.
            (6) Award.--
                    (A) In general.--Within 170 days after such date of 
                enactment, the arbitrator will select either of the 
                last best offers and render an award resolving the 
                issue. The authority of the arbitrator is limited to 
                resolving the issue presented by the hearing. The award 
                will take effect on the 180th day after such date of 
                enactment, and, except as provided in subparagraph (B) 
                shall be final and binding on all parties.
                    (B) Contest of award.--The United States District 
                Court for the District of Columbia has exclusive 
                jurisdiction to hear an action contesting an award 
                under subparagraph (A). The court may not set aside or 
                modify such an award except on--
                            (i) the grounds that the proceeding or the 
                        award plainly does not conform to the 
                        substantive requirements of this section; or
                            (ii) grounds set forth in section 9 Third 
                        (c) of the Railway Labor Act (45 U.S.C. 159 
                        Third (c)).
                Except as otherwise provided in this section, the 
                provisions of section 9 of such Act (45 U.S.C. 159) 
                govern any contest of an award under subparagraph (A) 
                of this paragraph.
                    (C) Award supersedes existing collective bargaining 
                arrangements.--An award under subparagraph (A) 
                supersedes any collective bargaining agreement entered 
                into before the award is made, and any practice in 
                effect before the award is made, to the extent that 
                such agreement or practice is inconsistent with the 
                award or limits the right to engage in subcontracting 
                under the award.
            (7) Amendment of award.--The award remains in effect until 
        amended by mutual agreement of the parties. Notices under 
        section 6 of the Railway Labor Act to amend the award may not 
        be served until 30 days before the end of the third year after 
        the effective date of the award.
    (b) No Precedent for Freight.--Nothing in this section shall be a 
precedent for the resolution of any dispute between a freight railroad 
and any labor organization representing that railroad's employees.


    (a) Below-cost Competition.--Section 24305(b) of title 49, United 
States Code, is amended to read as follows:
    ``(b) Below-cost Competition.--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 
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 
contracting. This subsection shall not apply for any fiscal year for 
which Amtrak receives no Federal subsidy.''.
    (b) Through Service in Conjunction With Intercity Bus Operations.--
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), Amtrak may enter 
into a contract with a motor carrier of passengers for the intercity 
transportation of passengers by motor carrier over regular routes 
            ``(i) if the motor carrier is not a public recipient of 
        governmental assistance, as such term is defined in section 
        10922(d)(1)(F)(i) of this title, other than a recipient of 
        funds under section 18 of the Federal Transit Act;
            ``(ii) for passengers who have had prior movement 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 transportation funded 
predominantly by a State or local government, or to ticket selling 
    (2) Section 24305(d) of title 49, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(3) Congress encourages Amtrak and motor common carriers of 
passengers to use the authority conferred in section 11342(a) of this 
title for the purpose of providing improved service to the public and 
economy of operation.''.


    (a) In General.--Notwithstanding any other provision of law (other 
than section 24305(a) of title 49, United States Code), Amtrak and 
motor carriers of passengers are authorized--
            (1) to combine or package their respective services and 
        facilities to the public as a means of increasing revenues; and
            (2) to coordinate schedules, routes, rates, reservations, 
        and ticketing to provide for enhanced intermodal surface 
    (b) Review.--The authority granted by subsection (a) is subject to 
the review of the Interstate Commerce Commission and such authority may 
be modified or revoked by the Interstate Commerce Commission if in the 
public interest.


    Section 24101(c) of title 49, United States Code, is amended by 
redesignating paragraphs (10) and (11) as (12) and (13), respectively, 
and by inserting after paragraph (9) the following:
            ``(10) manage capital investment in such a way as to 
        provide customers with world class service;
            ``(11) treat all passengers with respect, courtesy, and 


    Federal employees shall be permitted to choose travel on Amtrak for 
official business where total travel cost from office to office is 
competitive on a total trip or time basis.


    Section 24301(e) of title 49, United States Code, is amended by 
adding at the end thereof the following: ``Section 552 of title 5, 
United States Code, shall apply to Amtrak in any fiscal year for which 
Amtrak receives a Federal operating subsidy.''.

                     TITLE II--OPERATIONAL REFORMS


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