I

107TH CONGRESS

1ST SESSION H. R. 999

To strengthen the standards by which the Surface Transportation Board

reviews railroad mergers, and to apply the Federal antitrust laws to

rail carriers and railroad transportation.

IN THE HOUSE OF REPRESENTATIVES

MARCH 13, 2001

Mr. POMEROY introduced the following bill; which was referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by

the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To strengthen the standards by which the Surface Transportation Board reviews railroad mergers, and to apply the

Federal antitrust laws to rail carriers and railroad transportation.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Rail Merger Reform

5 and Customer Protection Act’’.
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1 SEC. 2. SURFACE TRANSPORTATION BOARD REVIEW.

2 Section 11324(c) of title 49, United States Code, is

3 amended by striking ‘‘public interest. The Board’’ and in4 serting ‘‘public interest, except that no transaction shall

5 be approved and authorized under this section unless the

6 Board finds that the transaction—

7 ‘‘(1) will not reduce competitive rail routes

8 available to current railroad customers;

9 ‘‘(2) will provide additional rail to rail competi10 tion and competitive options for railroad customers;

11 ‘‘(3) will improve service to customers; and

12 ‘‘(4) is in conformity with the antitrust laws.

13 The Board shall consult with the Attorney General, and

14 may not make a finding under paragraph (4) unless the

15 Attorney General agrees with the finding. The Board’’.

16 SEC. 3. SURFACE TRANSPORTATION BOARD JURISDICTION.

17 (a) AMENDMENTS.—Section 10501(b) of title 49,

18 United States Code, is amended—

19 (1) by inserting ‘‘, except that rail carriers and

20 rail transportation subject to the jurisdiction of the

21 Board shall also be subject to the antitrust laws. Ap22 plication of the antitrust laws pursuant to the pre23 vious sentence shall not limit or affect the avail24 ability of remedies under this part’’ after ‘‘is exclu25 sive’’; and
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1 (2) by inserting ‘‘other than the antitrust laws’’

2 after ‘‘Federal or State law’’.

3 (b) EFFECT OF PRIOR ORDERS.—Section 10501 of

4 title 49, United States Code, is further amended by adding

5 at the end the following new subsection:

6 ‘‘(d) All orders, determinations, rules, regulations,

7 permits, contracts, certificates, licenses, and privileges—

8 ‘‘(1) which have been issued, made, granted, or

9 allowed to become effective by any agency or official

10 thereof pursuant to chapter 113, or any predecessor

11 statutory provisions, or by a court of competent ju12 risdiction; and

13 ‘‘(2) which are in effect as of the date of the

14 enactment of the Rail Merger Reform and Customer

15 Protection Act,

16 shall continue in effect according to their terms until

17 modified, terminated, superseded, set aside, or revoked by

18 the agency, official, or court.’’.

19 (c) DEFINITION.—Section 10102 of title 49, United

20 States Code, is amended—

21 (1) by redesignating paragraphs (1) through

22 (10) as paragraphs (2) through (11), respectively;

23 and

24 (2) by inserting before paragraph (2), as so re25 designated, the following new paragraph:
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1 ‘‘(1) ‘antitrust laws’ has the meaning given it in

2 subsection (a) of the first section of the Clayton Act

3 (15 U.S.C. 12(a)), except that such term includes

4 section 5 of the Federal Trade Commission Act (15

5 U.S.C. 45) to the extent such section 5 applies to

6 unfair methods of competition;’’.

7 SEC. 4. RATE AGREEMENTS.

8 (a) AMENDMENTS.—Section 10706 of title 49,

9 United States Code, is amended—

10 (1) in the section heading, by striking ‘‘: ex11 emption from antitrust laws’’;

12 (2) in subsection (a)(2)(A), by striking ‘‘, and

13 the Sherman Act’’ and all that follows through ‘‘car14 rying out the agreement’’;

15 (3) in subsection (a)(3)(B)(ii), by striking ‘‘a

16 Federal law cited in subsection (a)(2)(A) of this sec17 tion’’ and inserting ‘‘the antitrust laws’’;

18 (4) by striking the second sentence of sub19 section (a)(4);

20 (5) in subsection (a)(5)(A), by striking ‘‘, and

21 the antitrust laws’’ and all that follows through

22 ‘‘carrying out the agreement’’;

23 (6) by striking the second sentence of sub24 section (d); and

25 (7) by striking subsection (e).
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1 (b) CONFORMING AMENDMENT.—The table of sec2 tions for chapter 107 of title 49, United States Code, is

3 amended by striking ‘‘: exemption from antitrust laws’’ in

4 the item relating to section 10706.

5 SEC. 5. SCOPE OF AUTHORITY.

6 Section 11321(a) of title 49, United States Code, is

7 amended—

8 (1) by inserting ‘‘, except that rail carriers and

9 rail transportation subject to the jurisdiction of the

10 Board shall also be subject to the antitrust laws’’

11 after ‘‘is exclusive’’;

12 (2) by striking ‘‘the antitrust laws and from’’;

13 and

14 (3) by inserting ‘‘except for the antitrust laws,’’

15 after ‘‘and municipal law,’’.

16 SEC. 6. ELECTION OF REMEDIES.

17 Section 11701 of title 49, United States Code, is

18 amended by adding at the end the following new sub19 section:

20 ‘‘(d) A person proceeding against a rail carrier pursu21 ant to subsection (b) may not proceed against the same

22 rail carrier pursuant to other Federal or State law, and

23 a person proceeding against a rail carrier under other

24 Federal or State law may not proceed against a rail carrier
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1 pursuant to subsection (b), with respect to the same

2 claim.’’.

3 SEC. 7. CLAYTON ACT AMENDMENTS.

4 The Clayton Act is amended—

5 (1) in section 7 (15 U.S.C. 18)—

6 (A) by striking ‘‘Nor shall anything here7 in’’ and all that follows through ‘‘therein is so

8 acquired.’’; and

9 (B) by striking ‘‘Surface Transportation

10 Board,’’;

11 (2) in section 11 (15 U.S.C. 21), by striking

12 ‘‘in the Surface Transportation Board where appli13 cable to common carriers subject to jurisdiction

14 under subtitle IV of title 49, United States Code;’’;

15 and

16 (3) in section 16 (15 U.S.C. 26), by striking

17 ‘‘: Provided, That nothing’’ and all that follows

18 through ‘‘title 49, United States Code’’.

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