§24704. Transportation requested by States, authorities, and other persons

(a) Applications To Begin or Keep Transportation.-(1) A State, a regional or local authority, or another person may apply to Amtrak and request Amtrak to provide rail passenger transportation or keep any part of a train, route, or service that Amtrak intends to discontinue under section 24706(a) or (b) or 24707(a) or (b) of this title. An application shall-

(A) assure Amtrak that the State, authority, or person has sufficient resources to meet its share of the cost of the transportation for the time the transportation will be provided;

(B) contain a market analysis acceptable to Amtrak to ensure that there is adequate demand for the transportation; and

(C) commit the State, authority, or person to provide at least 45 percent of the short term avoidable loss of providing the transportation the first year the transportation is provided and at least 65 percent of the short term avoidable loss each of the following years, and, except as provided in section 24104(a) of this title, at least 50 percent of associated capital costs each year the transportation is provided.

(2) An application submitted by more than one State shall be considered in the same way as an application submitted by one State, without it being necessary for each State to comply with paragraph (1) of this subsection.

(b) Actions on Applications.-(1) Amtrak shall review each application submitted under subsection (a) of this section to decide whether-

(A) the application complies with subsection (a); and

(B) there is a reasonable probability that Amtrak can provide the transportation from available resources.

(2) Amtrak may make an agreement with an applicant under this section to begin or keep the transportation if Amtrak decides that the transportation can be provided with resources available to Amtrak. An agreement may be renewed for additional periods of not more than 2 years each.

(c) Selecting Among Competing Applications.-If more than one application is made for transportation consistent with the requirements of subsection (a) of this section, but all the transportation applied for cannot be provided with the available resources of Amtrak, the board of directors of Amtrak shall select the transportation that best serves the public interest and can be provided with the available resources of Amtrak.

(d) Fare Increases.-(1) Before increasing a fare applicable to transportation provided under subsection (b)(2) of this section by more than 5 percent during a 6-month period, Amtrak shall consult with officials of each State affected by the increase and explain why the increase is necessary.

(2) Except as provided in paragraph (3) of this subsection, a fare increase described in paragraph (1) of this subsection takes effect 90 days after Amtrak first consults with the affected States. However, not later than 30 days after the first consultation, a State may submit proposals to Amtrak for reducing costs and increasing revenues of the transportation. Amtrak shall consider the proposals in deciding how much of the proposed increase shall go into effect.

(3)(A) Amtrak may increase a fare without regard to the restrictions of this subsection during-

(i) the first month of a fiscal year if the authorization of appropriations and the appropriations for Amtrak are not enacted at least 90 days before the beginning of the fiscal year; or

(ii) the 30 days following enactment of an appropriation for Amtrak or a rescission of an appropriation.

(B) Amtrak shall notify each affected State of an increase under subparagraph (A) of this paragraph as soon as possible after Amtrak decides to increase a fare.

(e) Determining Loss, Costs, and Revenues.-After consulting with officials of each State contributing to providing transportation under subsection (b)(2) of this section, the board shall establish the basis for determining short term avoidable loss and associated capital costs of, and revenues from, the transportation. Amtrak shall give State officials the basis for determining the loss, cost, and revenue for each route on which transportation is provided under subsection (b)(2).

(f) Availability of Amounts.-Amounts provided by Amtrak under an agreement with an applicant under subsection (b)(2) of this section that are allocated for associated capital costs remain available until expended.

(g) Advertising and Promotion.-At least 2 percent but not more than 5 percent of the revenue generated by transportation provided under subsection (b)(2) of this section shall be used for advertising and promotion at the local level.

( Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 925 .)

Historical and Revision Notes

Revised Section	Source (U.S. Code)	Source (Statutes at Large)
24704(a)(1)	45:563(b)(1).	Oct. 30, 1970, Pub. L. 91–518, §403(b), 84 Stat. 1336 ; Oct. 28, 1974, Pub. L. 93–496, §5(a), 88 Stat. 1527 ; May 26, 1975, Pub. L. 94–25, §6, 89 Stat. 90 ; Feb. 5, 1976, Pub. L. 94–210, §706(c), 90 Stat. 124 ; Oct. 19, 1976, Pub. L. 94–555, §107, 90 Stat. 2616 ; Oct. 5, 1978, Pub. L. 95–421, §§16, 17, 92 Stat. 929 ; Sept. 29, 1979, Pub. L. 96–73, §115(b), 93 Stat. 542 ; May 30, 1980, Pub. L. 96–254, §206(a), 94 Stat. 412 ; restated Aug. 13, 1981, Pub. L. 97–35, §1182(a), 95 Stat. 693 ; Oct. 27, 1992, Pub. L. 102–533, §7(b), 106 Stat. 3519 .
24704(a)(2)	45:563(b)(2)(B).
24704(b)(1)	45:563(b)(2)(A).
24704(b)(2)	45:563(b)(3)(A), (B).
24704(c)	45:563(b)(3)(C).
24704(d)	45:563(b)(5).
24704(e)	45:563(b)(4)(B).
24704(f)	45:563(b)(4)(A).
24704(g)	45:563(b)(6).

In subsection (a)(1), before clause (A), the words "or group of States" are omitted because of 1:1. The word "authority" is substituted for "agency" for consistency in the revised title and with other titles of the United States Code. The words "section 24706(a) or (b) or 24707(a) or (b) of this title" are substituted for "section 407 of this Act" to correct a mistake in the source provisions. The text of 45:563(b) is concerned with discontinuing a route, a train, or service under section 407 of the Rail Passenger Service Act (that probably should have been a reference to section 404 of the Act because there is no section 407 and section 404 provides for discontinuances of routes, trains, and service). In clause (C), the word "commit" is substituted for "statement by . . . that it agrees to" to eliminate unnecessary words.

In subsection (a)(2), the words "that is a party to such application" are omitted as surplus.

In subsection (b)(1)(A), the words "the requirements of" are omitted as surplus.

In subsection (b)(2), the words "in accordance with the funding formula set forth in paragraph (1)(B) of this subsection", "by mutual agreement", and "one or more" are omitted as surplus.

In subsection (c), the words "of Amtrak" after "board of directors" are added for clarity. The words "in its discretion" are omitted as surplus.

Subsection (d)(1) is substituted for 45:563(b)(5)(A) to eliminate unnecessary words.

In subsection (d)(2), the words "Except as provided in paragraph (3) of this subsection" are added for clarity. The words "Amtrak shall consider the proposals in deciding how much of the proposed increase shall go into effect" are substituted for 45:563(b)(5)(B) (last sentence) to eliminate unnecessary words.

In subsection (d)(3)(A)(i) and (ii), the words "the benefit of" are omitted as surplus.

In subsection (d)(3)(A)(i), the words "for such fiscal year" are omitted as surplus.

In subsection (e), the words "appropriate", "total", and "In addition" are omitted as surplus.

In subsection (f), the words "and which are not expended during the fiscal year for which they are provided" are omitted as surplus.

In subsection (g), the word "particular" is omitted as surplus. The words "transportation provided" are substituted for "each route operated" for consistency in this part. The words "the authority of" are omitted as surplus.

Initiation of New Service by National Railroad Passenger Corporation

Pub. L. 103–122, title III, §341, Oct. 27, 1993, 107 Stat. 1224 , provided that: "If any State or local interest, within one year following the date of the enactment of this Act [Oct. 27, 1993], can demonstrate to the satisfaction of the National Railroad Passenger Corporation that such State or local interest can cover any potential operating losses including the cost of equipment depreciation, or that the National Railroad Passenger Corporation will not incur or absorb any part of operational losses including the cost of equipment depreciation due to the initiation of new State-supported service, the Corporation shall initiate such new service: Provided, That the corporation determines equipment is available to initiate such service."

Section Referred to in Other Sections

This section is referred to in sections 24104, 24312, 24706 of this title.