 |
FRIENDS OF AMTRAK
|
The Amtrak Reauthorization Bill
AMTRAK REAUTHORIZATION BILL
ENACTED-- Updated December 6, 1997. The House and Senate passed the
Amtrak Reauthorization bill of 1997 this fall. The measure was passed
after a number of bipartisan compromises were reached. The President has
signed the bill and it now becomes law.
Here are some of the details of the Amtrak Reauthorization bill as
amended.
While not a funding bill, enactment of this legislation means
that Amtrak now has access to the $2.3 billion in capital funding that
was allocated in the tax bill passed this summer but was made contingent
upon approval of a reauthorization bill.
The bill sets guidelines for how much money Amtrak should receive
for overall future funding. The guidelines suggest that the
appropriating committees of Congress allocate $5.1 billion through 2002.
Despite what the media is reporting one should keep in mind that Amtrak
rarely gets the full amount and that these funds are NOT appropriated by
this bill, only suggested!
The severance pay provision was taken out of law. Amtrak and its
unions will have 180 days upon enactment to negotiate severance pay. If
there is no conclusion, the six-year severance will essentially go away.
This time limit will force both sides to bargain.
On contracting out, the prohibition will be taken out of law and
become part of the current collective bargaining agreements with each
union. This prohibition will become negotiable and will be phased out in
two years, November 1999. Repealed would be the current ban on
contracting out work [other than food and beverage service] if it would
result in the layoff of a single employee. This issue would be sent to
collective bargaining, but would not be negotiable until the next round
of contract negotiations, unless the parties mutually agreed to take it
up before then.
On liability, there would be a global cap of $200 million per
accident. This means total liability awards cannot exceed $200 million
per accident. This includes a requirement that Amtrak maintain insurance
of at least $200 million.
Under the compromise, Clinton would appoint a new seven-member
board by next March, in consultation with congressional leaders from
both parties. All seven members would have to be confirmed by the
Senate. All need Senate confirmation except the Secretary of
Transportation. It allows the President to select the federal Secretary
of Transportation as a Board Member, and designates the President of
Amtrak as an ex-officio, non-voting member of the board. The bill says
the new board members must have technical qualifications, professional
standing, and demonstrated expertise in the field of transportation,
corporate or financial management. If four members are not seated by
July 1st, 1998, the bill's funding authorization would cease to be
effective - giving appropriators another reason to underfund Amtrak.
An eleven member Amtrak Reform Council will be established,
appointed by the President. It will report to Congress after two years
whether Amtrak is still on target to reach operating self-sufficiency.
If the board says Amtrak is not then it must come up with a plan to get
Amtrak back on target. In the meantime, Amtrak would have to prepare a
plan to liquidate itself. Congress would then have the choice of
accepting the Board's proposed recommendations, going ahead with
liquidation, or choosing its own third option.
It repeals the requirement that Amtrak operate the basic system
of routes inherited from private railroads in 1971. This means that
unprofitable routes can be shed and profitable routes can be opened.
RETURN TO FRIENDS OF AMTRAK
Support this website by joining the Silver Rails TrainWeb Club for as little as $1 per month.
Click here for info.
