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ST AT E - SUPPORT E D INT E RCIT Y PASSE NGE R RAIL SE RVICE - CURRE NT PARAME T E RS Allison I. Fultz 2017 APTA Legal Affairs Seminar February 27, 2017 In the be ginning - Sec. 403(b), Rail Passenger Service Act of


  1. ST AT E - SUPPORT E D INT E RCIT Y PASSE NGE R RAIL SE RVICE - CURRE NT PARAME T E RS Allison I. Fultz 2017 APTA Legal Affairs Seminar February 27, 2017

  2. In the be ginning - − Sec. 403(b), Rail Passenger Service Act of 1970 − State to contribute if Amtrak service requested − 1997, Amtrak Reform & Accountability Act repeals 403(b) − Amtrak/States individually negotiate contracts for service 2

  3. PRIIA − Sec. 209, Passenger Rail Investment and Improvement Act of 2008 − State contribution mandatory – cost allocation formula effective Oct 2013 − Routes 750 miles or shorter − Contracting flexibility – menu of services − States as financial sponsors – increase competition 3

  4. RSIA − Sec. 103, Rail Safety Improvement Act of 2008 (49 USC 20156) − Requires “ railroad carrier ” that provides intercity rail passenger or commuter rail passenger transportation to develop and implement a railroad risk reduction safety plan − NCDOT equipment maintenance third-party contract - 2008 4

  5. RSIA – F RA Rule making − NPRM – 77 Fed.Reg. 55,371 (Sept. 7, 2012): − Expands definition of “railroad” – “person or organization that provides railroad transportation, whether directly or by contracting out operation of the railroad to another person. − Identifies only Amtrak and Alaska Railroad as intercity passenger railroads 5

  6. RSIA – F RA Rule making − Final Rule – 81Fed.Reg. 53,849 (Aug. 12, 2016): − Introduces requirement to consult with “directly affected employees,” including those of contractors − Petition for reconsideration – FRA decision pending 6

  7. RSIA – F RA Guidanc e − Aug. 11, 2016 – FRA sent to state sponsors − Treats sponsors differently – Amtrak as sole service provider vs. mix of contractors − Petition for Review, D.C. Circuit No. 16-1352 (consol. 16-1355) – briefing ongoing 7

  8. Cur r e nt Conte xt − Final Rule and Guidance not consistent; further at odds with PRIIA Sec. 209 mandate − FRA position casts states providing funding and planning support in role of operator 8

  9. Cur r e nt Conte xt Amtrak as sole contractor: continuation of pre- existing relationship, business as usual – to some extent − Turnkey operation − FRA looks to Amtrak for safety compliance − Costs allocated under PRIIA Sec 209 9

  10. Cur r e nt Conte xt − Effects of FRA’s current position: − Constrains procurement options by presumptively favoring Amtrak − Extent of role of sponsor to conduct consultation with “directly affected employees” unclear − Extent of required sponsor interaction with FRA unclear under varying Guidance scenarios 10

  11. Pote ntial Solutions − To create level playing field for all sponsors of state-supported intercity passenger rail: − Amend final rule to exclude sponsors with no independent safety obligations from definition of “railroad” − Amend final rule to provide clear delegation of responsibility to prepare system safety plan to operating entities − Limit consultation obligation to entities with direct control over employees 11

  12. − Questions? Allison I. Fultz afultz@kaplankirsch.com (202) 955-5600 12

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