Comments on H.R. 3559

The proposed Conrail Private Sector Ownership Act provides that the Comptroller General serve as a member of the U.S. Railway Association board of directors. As a member of the board, he would participate in a wide range of executive decisions directly affecting Government transportation policies and program expenditures. Under the bill, the Association would monitor Conrail activities and performance and disburse Federal funds to Conrail. It would also make determinations on Conrail's compliance with the bill's requirements. Noncompliance could result in Federal funds being terminated. The Comptroller General's participation in executive decisions as a board member could create a conflict of interest because GAO has the responsibility to review and evaluate both Conrail and Association policies and activities. GAO is also required to audit Association financial statements. GAO has consistently opposed legislation that gives the Comptroller General executive authority over programs he audits. Therefore, GAO strongly urged that the Comptroller General be stricken from the bill as a member of the Association board of directors.