Rail Passenger Service Development Act

Rail Passenger Service Development Act - Declares it to be the purpose of this Act to provide for the development of improved rail passenger services in transportation corridors in the United States placing major responsibility for development upon the States, local governments, and private agencies.

Authorizes the Secretary of Transportation to determine the primary rail passenger transportation corridors in the United States and plan for their development. Directs the Secretary to establish organizations for each designated corridor, which will determine the extent of need for and the social costs of improved rail passenger transportation.

Provides that the Secretary, upon finding need for improved rail passenger transportation service within a corridor, shall establish a Federal rail passenger service development corporation for such corridor. Provides for Boards of Directors to carry out the functions of each corporation.

Sets forth the powers of such corporations. Enumerates the functions of such rail passenger service development corporations, including: (1) acquire by purchase or lease railroad property necessary for the development of rail passenger service; (2) contract for and hold title to capital improvements; (3) contract with individual railroad companies for the operation and maintenance of rail passenger facilities; (4) provide adequate facilities for necessary rail freight transportation in conjunction with rail passenger service; (5) upon request of a State or local government agency enter into contracts on a compensatory basis for the provision of local rail passenger services; and (6) contract with the National Railroad Passenger Corporation for the management of intercity rail passenger service in its designated corridor.

Provides that each development corporation shall be deemed a common carrier by railroad and shall be subject to all provisions of the Interstate Commerce Act, with specified exceptions.

Empowers each development corporation to issue obligations, with the approval of the Secretary of the Treasury; but the aggregate amount of obligations of each corporation shall not exceed $800,000,000.

Provides that the Secretary of Transportation, upon his finding of public convenience and necessity in designated rail passenger transportation corridors, may make grants-in-aid to individual development corporations. Authorizes appropriations for the purpose of making such grants-in-aid.

States that any contract for the construction or improvement of rights-of-way or facilities under this Act shall include fair and equitable arrangements, as certified by the Secretary of Labor, to protect the interests of individual employees.

Authorizes appropriations of such additional amounts as may be necessary to carry out the provisions of this Act.