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Rail News: High-Speed Rail
7/14/2011
Rail News: High-Speed Rail
Mica/Shuster's Amtrak privatization proposal may violate constitution, report states
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The Competition for Intercity Passenger Rail in America Act of 2011, recently proposed by Reps. John Mica (R-Fla.) and Bill Shuster (R-Penn.), raises constitutional issues regarding Amtrak compensation, according to a report recently prepared by the Congressional Research Service (CRS) for the House Committee on Transportation and Infrastructure (T&I).
Mica, who chairs the committee, and Shuster, who chairs the Subcommittee on Railroads, Pipelines and Hazardous Materials, have proposed to privatize Amtrak’s Northeast Corridor operations. However, Democratic members of the T&I committee have questioned “takings issues” raised in certain provisions of the draft bill, specifically a section that says Amtrak will transfer its NEC assets to the U.S. Department of Transportation.
Although Amtrak relies on federal funding for support, it is viewed as a separate entity, and therefore any plan to transfer the Amtrak-owned NEC to another party “effects a taking of private property, implicating Takings Clause protections,” according to a CRS memo.
“In short, Amtrak may have a constitutional right to compensation in money or something more nearly the equivalent of money than what [the bill] offers,” the memo states. “The federal case law is not clear. It is a separate question altogether, of course, whether it would be in Amtrak’s political best interest to sue its federal funding source on this point.”
Mica, who chairs the committee, and Shuster, who chairs the Subcommittee on Railroads, Pipelines and Hazardous Materials, have proposed to privatize Amtrak’s Northeast Corridor operations. However, Democratic members of the T&I committee have questioned “takings issues” raised in certain provisions of the draft bill, specifically a section that says Amtrak will transfer its NEC assets to the U.S. Department of Transportation.
Although Amtrak relies on federal funding for support, it is viewed as a separate entity, and therefore any plan to transfer the Amtrak-owned NEC to another party “effects a taking of private property, implicating Takings Clause protections,” according to a CRS memo.
“In short, Amtrak may have a constitutional right to compensation in money or something more nearly the equivalent of money than what [the bill] offers,” the memo states. “The federal case law is not clear. It is a separate question altogether, of course, whether it would be in Amtrak’s political best interest to sue its federal funding source on this point.”