Rail Service Improvement Act of 1981

(Reported to House from the Committee on Energy and Commerce with amendment, H. Rept. 97-153)

Rail Service Improvement Act of 1981 - Title I: General Provisions - Sets forth the findings of Congress with regard to freight and commuter rail service in the Midwest and Northeast United States.

Title II: Transfer of Rail Service Responsibilities - Subtitle A: Transfer of Conrail Commuter Services - Amends the Regional Rail Reorganization Act of 1973 to direct the Consolidated Rail Corporation (Conrail) to establish a subsidiary for purposes of operating the commuter services that Conrail is obligated to operate under such Act.

Deems the commuter subsidiary to be a contract operator of commuter service on behalf of the commuter authorities for which Conrail operates service. Declares that the commuter subsidiary shall have no common carrier obligation to operate either passenger or freight service.

Exempts transactions between Conrail and the commuter subsidiary from specified provisions of the Clayton Act. Exempts the commuter subsidiary from payment of all taxes imposed by a State or other taxing authority.

Requires the commuter subsidiary to assume and apply the collective bargaining agreements in effect between Conrail and its employees on the effective date of this Act.

Authorizes the commuter subsidiary to issue common stock to Conrail.

Relieves Conrail of all obligations to operate commuter service. Directs Conrail and its subsidiary to transfer to the Amtrak Commuter Services Corporation, or to any commuter authority, such rail properties, rights, or interests as may be necessary for such authority to operate commuter services.

Prohibits any person engaging in concerted economic action over disputes with Conrail, Amtrak Commuter, or any commuter authority from striking against or disrupting freight or passenger services.

Authorizes appropriations to the commuter subsidiary for the purpose of establishing a working capital revolving fund. Transfers such fund to Amtrak Commuter after Conrail is relieved of its obligation to operate commuter service. Authorizes such funds to remain available until expended.

Amends the Rail Passenger Service Act to establish the Amtrak Commuter Services Corporation as a wholly owned subsidiary of Conrail. Declares that Amtrak Commuter shall not be an agency or instrumentality of the Federal Government but a contract operator of commuter service.

States the applicability of specified laws to Amtrak Commuter. Exempts Amtrak Commuter from payment of certain taxes. Sets forth the corporate and financial structure of Amtrak Commuter. Authorizes Amtrak Commuter to issue common stock to Amtrak.

Authorizes Amtrak Commuter to: (1) own, operate, or contract for the operation of commuter service; (2) conduct research and development; and (3) acquire by purchase, gift, or by contracting for the use of physical facilities and equipment necessary to commuter service operations.

Authorizes Amtrak Commuter to operate commuter service under agreements with commuter authorities. Directs Amtrak Commuter to operate commuter service which Conrail was obligated to provide on the effective date of this Act. Requires that any agreement for such service shall be made in accordance with regulations issued by the Rail Service Planning Office.

Allows Amtrak Commuter to discontinue commuter service to such authorities under certain conditions.

Describes the methods by which Conrail or Amtrak Commuter is to be compensated for right-of-way related costs for service over the Northeast corridor and other Conrail properties.

Allocates excess monies from the revolving fund to specified commuter authorities that are operating their own commuter service.

Requires the Board of Directors of Amtrak Commuter to develop and recommend to Conrail: (1) policies that insure equitable access to the Northeast corridor; and (2) equitable policies for the Northeast corridor in regard to dispatching, maintenance, and capital facility investments. Authorizes the Board to recommend to the President and to Conrail such actions as are necessary to resolve differences among railroads, State and local commuter agencies, and commuter authorities.

Prohibits funds appropriated under such Act for the payment of operating and capital expenses of intercity rail passenger service from being used for commuter service by Amtrak Commuter.

Authorizes appropriations for fiscal year 1982 to be allocated to certain commuter authorities.

Subtitle B: Additional Financing of Conrail - Amends the Regional Rail Reorganization Act of 1973 to set forth criteria for purchases of Conrail stock by the United States Railway Association. Authorizes appropriations for fiscal years 1982 and 1983 for such purchases of stock and accounts receivable.

Reorganizes the structure of Conrail, including the Board of Directors.

Directs the Secretary to approve or disapprove, within 90 days, a Conrail application for permission to substitute manual block signal systems for automatic systems on certain lines.

Directs the Secretary, upon notification that Conrail will be a profitable carrier, to sell the interest of the United States in its common stock. Describes procedures for the sale of such stock and for the replacement of Conrail's Board of Directors.

Directs the Secretary to develop a plan for the sale of Conrail properties. Requires that such plan shall: (1) ensure that at least 75 percent of Conrail's rail service, as of December 31, 1983, shall be maintained; (2) promote competitive bidding; and (3) maximize the return to the United States on its investment.

Provides for veto of such proposed sale by disapproval by either House of Congress within 90 days.

Describes the obligations of an assignee to whom such conveyance is made.

Title III: Protection for Conrail Employees - Directs the Secretary of Labor and the representatives of the various classes of Conrail employees to enter into agreements providing protection for such employees. Declares that any eligible Conrail employee who is transferred to the Conrail commuter subsidiary or Amtrak Commuter shall remain eligible for such benefits. Sets forth procedures for employee terminations and the payment of termination allowances.

Describes preferential hiring procedures to be followed by rail carriers.

Directs the Railroad Retirement Board to maintain a register of persons separated from railroad employment in the railroad industry. Directs Conrail to provide the Board names of former employees who elect to appear on such register. Terminates such register and employee placement assistance three years after the effective date of this Act.

Provides for the election and treatment of benefits by protected employees.

Grants Conrail the right to assign, reassign, and consolidate work, formerly performed on the rail properties acquired from a railroad in reorganization, to any location or position on its system if it does not remove such work from a collective bargaining agreement. Limits such authority to the period during which benefits are provided under this Act.

Permits Conrail to subcontract for work that cannot be performed by its employees, with specified exceptions.

Requires that a new collective-bargaining agreement be negotiated between Conrail and representatives of the employees of a railroad in reorganization.

Directs Conrail, Amtrak, or an acquiring carrier to process and pay employee and personal injury claims. Provides for direct reimbursement by the Association for such claims.

Limits Federal and Conrail liability under such collective bargaining agreements.

Prohibits a State from enforcing any law, rule, or standard that requires a specified number of employees to perform a particular task or to pay protective benefits to employees.

Authorizes appropriations for fiscal years 1982 and 1983 for such termination allowances and claims.

Repeals Title V (Employee Protection) of the Regional Rail Reorganization Act of 1973 and specified sections of the Milwaukee Railroad Restructuring Act and the Rock Island Railroad Transition and Employee Assistance Act.

Title IV: Terms of Labor Assumption - Subtitle A: Passenger Employees - Amends the Rail Passenger Service Act to describe criteria by which Conrail employees shall be transferred to Amtrak Commuter. Provides for the appointment of a neutral referee if an agreement in regard to such transfer cannot be reached within 30 days. Makes such referee's decision final and binding.

Protects employees of Conrail or its commuter subsidiary who are not offered employment with Amtrak Commuter to the same extent as if such employees had remained in the employ of Conrail.

Requires that Amtrak Commuter and the employees transferred to it under this Act enter into new collective-bargaining agreements with regard to rates of pay, rules, and working conditions.

Directs Amtrak Commuter and the representatives of such transferred employees to establish a fact-finding panel for purposes of recommending changes in operating practices and procedures.

Subtitle B: Freight Employees - Amends the Regional Rail Reorganization Act of 1973 to set forth procedures by which Conrail employees shall be transferred to other rail carriers.

Title V: United States Railway Association - Revises: (1) the membership of the United States Railway Association's Board of Directors; and (2) the functions of the Association.

Directs the Association to report to Congress concerning: (1) the amount of additional funds made available to Conrail; (2) Conrail's progress in meeting the requirements of this Act; and (3) the funds available for additional purchases of Conrail stock.

Abolishes the Association and transfers its assets and liabilities to the Office of Management and Budget after the Association makes its last purchase of Conrail stock.

Directs Conrail to make necessary information available to the Association so that it may carry out its functions under this Act.

Transfers the responsibility for representing the United States in any civil action brought by the estate of a railroad in reorganization against the United States to the Attorney General who may, in turn, establish an independent office within the Department of Justice with responsibility for defending against such actions.

Authorizes appropriations for fiscal years 1982, 1983, and 1984 for the administrative expenses of the Association.

Title VI: Miscellaneous Provisions - Grants original and exclusive jurisdiction to the special court over specified civil actions concerning this Act, including injunctive and declaratory relief. Declares that the judgments of the special court shall be reviewable only by the Supreme Court.

Amends the Railroad Revitalization and Regulatory Reform Act of 1976 to direct the Secretary of Transportation to guarantee, under certain conditions, obligations of Conrail's commuter subsidiary and Amtrak Commuter. Limits such obligations to a specified sum.

Exempts transfers or conveyances of any interest in rail property under this Act from taxes or other levies imposed by the United States, a State, or a political subdivision thereof.

Directs Conrail, within 60 days of the effective date of this Act, to notify shippers of the provisions and likely impact of this Act.

Prohibits the distribution of any Conrail assets in regard to claims of the United States until all other claims against Conrail have been satisfied.

Amends the Regional Rail Reorganization Act of 1973 to direct the Secretary, within 60 days of the effective date of this Act, to petition the special court for an order to transfer all Conrail properties in Connecticut and Rhode Island to another railroad in the region. Makes any employee deprived of employment as a result of such transfer eligible for specified benefits.

Authorizes Conrail to file with the Interstate Commerce Commission a notice of insufficient revenues or an application for a certificate of abandonment for any Conrail line. Directs the Commission to approve such applications unless other financial assistance is offered to the rail line in question.

Permits Conrail to obtain a loan in an amount required for the cost of employee insurance coverage and benefits. Describes procedures for obtaining such loan and for administering such medical and life insurance.

Amends the Railway Labor Act to establish procedures for handling disputes between a publicly funded and operated carrier providing rail commuter service and its employees.

Amends the Department of Transportation Act to repeal provisions concerning financial assistance to States for rail freight assistance programs. Reduces the Federal share of other rail service assistance programs.

Revises State rail service assistance entitlements and eligibility therefor.

Directs each State to retain a contingent interest for the Federal share of funds in any line receiving rail freight assistance under this Act if an application for abandonment is filed or such line is sold or disposed of in any way after it has received Federal assistance.

Directs the Commission, within 120 days of the date of enactment of this Act, to determine costing methodology for compensation to Amtrak for the right-of-way related costs for the operation of commuter rail passenger service and rail freight service over the Northeast corridor and other properties owned by Amtrak. Prohibits judicial review of such determination by the Commission.

Amends the Regional Rail Reorganization Act of 1973 to terminate the authority of the Association and the Secretary to modify the terms of loans to rail carriers under certain Acts.

Amends such Act and the Railroad Revitalization and Regulatory Reform Act of 1976 to eliminate Association funding for a Conrail program to reduce its work force.

Declares that any cost reductions resulting from the provisions of this Act shall not be used to limit: (1) the maximum level of any rate charged by Conrail; (2) the amount of any increase in such rates; and (3) a surcharge or cancellation that is otherwise lawful.