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 Com-
mittee on Transportation and Infrastructure, and in addition to the Com-
mittee on the Judiciary, for a period to be subsequently determined by
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned
A BILL
To strengthen the standards by which the Surface Transpor-
tation Board reviews railroad mergers, and to apply the
Federal antitrust laws to rail carriers and railroad trans-
portation.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Rail Merger Reform
and Customer Protection Act’’.
SEC. 2. SURFACE TRANSPORTATION BOARD REVIEW.
Section 11324(c) of title 49, United States Code, is
amended by striking ‘‘public interest. The Board’’ and in-
serting ‘‘public interest, except that no transaction shall
be approved and authorized under this section unless the
Board finds that the transaction—
‘‘(1) will not reduce competitive rail routes
available to current railroad customers;
‘‘(2) will provide additional rail to rail competi-
tion and competitive options for railroad customers;
‘‘(3) will improve service to customers; and
‘‘(4) is in conformity with the antitrust laws.
The Board shall consult with the Attorney General, and
may not make a finding under paragraph (4) unless the
Attorney General agrees with the finding. The Board’’.
SEC. 3. SURFACE TRANSPORTATION BOARD JURISDICTION.
(a) AMENDMENTS.—Section 10501(b) of title 49,
United States Code, is amended—
(1) by inserting ‘‘, except that rail carriers and
rail transportation subject to the jurisdiction of the
Board shall also be subject to the antitrust laws. Ap-
plication of the antitrust laws pursuant to the pre-
vious sentence shall not limit or affect the avail-
ability of remedies under this part’’ after ‘‘is exclu-
sive’’; and
(2) by inserting ‘‘other than the antitrust laws’’
after ‘‘Federal or State law’’.
(b) EFFECT OF PRIOR ORDERS.—Section 10501 of
title 49, United States Code, is further amended by adding
at the end the following new subsection:
‘‘(d) All orders, determinations, rules, regulations,
permits, contracts, certificates, licenses, and privileges—
‘‘(1) which have been issued, made, granted, or
allowed to become effective by any agency or official
thereof pursuant to chapter 113, or any predecessor
statutory provisions, or by a court of competent ju-
risdiction; and
‘‘(2) which are in effect as of the date of the
enactment of the Rail Merger Reform and Customer
Protection Act,
shall continue in effect according to their terms until
modified, terminated, superseded, set aside, or revoked by
the agency, official, or court.’’.
(c) DEFINITION.—Section 10102 of title 49, United
States Code, is amended—
(1) by redesignating paragraphs (1) through
(10) as paragraphs (2) through (11), respectively;
and
(2) by inserting before paragraph (2), as so re-
designated, the following new paragraph:
‘‘(1) ‘antitrust laws’ has the meaning given it in
subsection (a) of the first section of the Clayton Act
(15 U.S.C. 12(a)), except that such term includes
section 5 of the Federal Trade Commission Act (15
U.S.C. 45) to the extent such section 5 applies to
unfair methods of competition;’’.
SEC. 4. RATE AGREEMENTS.
(a) AMENDMENTS.—Section 10706 of title 49,
United States Code, is amended—
(1) in the section heading, by striking ‘‘: ex-
emption from antitrust laws’’;
(2) in subsection (a)(2)(A), by striking ‘‘, and
the Sherman Act’’ and all that follows through ‘‘car-
rying out the agreement’’;
(3) in subsection (a)(3)(B)(ii), by striking ‘‘a
Federal law cited in subsection (a)(2)(A) of this sec-
tion’’ and inserting ‘‘the antitrust laws’’;
(4) by striking the second sentence of sub-
section (a)(4);
(5) in subsection (a)(5)(A), by striking ‘‘, and
the antitrust laws’’ and all that follows through
‘‘carrying out the agreement’’;
(6) by striking the second sentence of sub-
section (d); and
(7) by striking subsection (e).
(b) CONFORMING AMENDMENT.—The table of sec-
tions for chapter 107 of title 49, United States Code, is
amended by striking ‘‘: exemption from antitrust laws’’ in
the item relating to section 10706.
SEC. 5. SCOPE OF AUTHORITY.
Section 11321(a) of title 49, United States Code, is
amended—
(1) by inserting ‘‘, except that rail carriers and
rail transportation subject to the jurisdiction of the
Board shall also be subject to the antitrust laws’’
after ‘‘is exclusive’’;
(2) by striking ‘‘the antitrust laws and from’’;
and
(3) by inserting ‘‘except for the antitrust laws,’’
after ‘‘and municipal law,’’.
SEC. 6. ELECTION OF REMEDIES.
Section 11701 of title 49, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(d) A person proceeding against a rail carrier pursu-
ant to subsection (b) may not proceed against the same
rail carrier pursuant to other Federal or State law, and
a person proceeding against a rail carrier under other
Federal or State law may not proceed against a rail carrier
pursuant to subsection (b), with respect to the same
claim.’’.
SEC. 7. CLAYTON ACT AMENDMENTS.
The Clayton Act is amended—
(1) in section 7 (15 U.S.C. 18)—
(A) by striking ‘‘Nor shall anything here-
in’’ and all that follows through ‘‘therein is so
acquired.’’; and
(B) by striking ‘‘Surface Transportation
Board,’’;
(2) in section 11 (15 U.S.C. 21), by striking
‘‘in the Surface Transportation Board where appli-
cable to common carriers subject to jurisdiction
under subtitle IV of title 49, United States Code;’’;
and
(3) in section 16 (15 U.S.C. 26), by striking
‘‘: Provided, That nothing’’ and all that follows
through ‘‘title 49, United States Code’’.
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