Surface Transportation Board Reauthorization and Improvement Act of 1999

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    Within 180 days after the date of enactment of this Act, the 
Surface Transportation Board shall promulgate regulations adopting a 
simplified dispute resolution mechanism with the following features:
            (1) In general.--The simplified dispute resolution 
        mechanism will utilize expedited arbitration with a minimum of 
        discovery and may be used to decide disputes between parties 
        involving any matter subject to the jurisdiction of the Board, 
        other than rate reasonableness cases that would be decided 
        under constrained market pricing principles.
            (2) Applicable standards.--Arbitrators will apply existing 
        legal standards.
            (3) Mandatory if requested.--Use of the simplified dispute 
        resolution mechanism is required whenever at least one party to 
        the dispute requests.
            (4) 90-day turnaround.--Arbitrators will issue their 
        decisions within 90 days after being appointed.
            (5) Payment of costs.--Each party will pay its own costs, 
        and the costs of the arbitration and other administrative costs 
        of arbitration will be shared equally between and among the 
        parties.
            (6) Decisions private; not precedential.--Except as 
        otherwise provided by the Board, decisions will remain private 
        and will not constitute binding precedent.
            (7) Decisions binding and enforceable.--Except as otherwise 
        provided in paragraph (8), decisions will be binding and 
        enforceable by the Board.
            (8) Right to appeal.--Any party will have an unqualified 
        right to appeal any decision to the Board, in which case the 
        Board will decide the matter de novo. In making its decision, 
        the Board may consider the decision of the arbitrator and any 
        evidence and other material developed during the arbitration.
            (9) Mutual modification.--Any procedure or regulation 
        adopted by the Board with respect to the simplified dispute 
        resolution may be modified or eliminated by mutual agreement of 
        all parties to the dispute.

SEC. 9. PROMOTION OF COMPETITIVE RAIL SERVICE OPTIONS.

    Section 11324 of title 49, United States Code, is amended--
            (1) by striking ``and'' in paragraph (4) of subsection (b);
            (2) by striking ``system.'' in paragraph (5) of subsection 
        (b) and inserting ``system; and'';
            (3) by adding at the end of subsection (b) the following:
            ``(6) means and methods to encourage and expand competition 
        between and among rail carriers in the affected region or the 
        national rail system.''; and
            (4) by inserting after the second sentence in subsection 
        (c) the following: ``The Board may impose conditions to 
        encourage and expand competition between and among rail 
        carriers in the affected region or the national rail system, if 
        such conditions do not cause substantial harm to the benefits 
        of the transaction to the affected carriers or the public.''.

SEC. 10. CLARIFICATION OF STB AUTHORITY TO GRANT TEMPORARY ACCESS 
              RELIEF.

    (a) Section 10705 of title 49, United States Code, is amended by 
adding at the end thereof the following:
    ``(d) The Board may grant temporary relief under this section when 
the Board finds it necessary and appropriate to do so to remedy 
inadequate service. The authority provided in this section is in 
addition to the authority of the Board to provide temporary relief 
under sections 11102 and 11123 of this title.''.
    (b) Section 11102 of title 49, United States Code, is amended by 
adding at the end thereof the following:
    ``(e) The Board may grant temporary relief under subsections (a) 
and (c) when the Board finds it necessary and appropriate to do so to 
remedy inadequate service. The authority provided in this section is in 
addition to the authority of the Board to provide temporary relief 
under sections 10705 and 11123 of this title.''.
    (c) Section 11123 of title 49, United States Code, is amended by 
adding at the end thereof the following:
    ``(e) The authority provided in this section is in addition to the 
authority of the Board to provide temporary relief under sections 10705 
and 11102 of this title.''.

SEC. 11. HOUSEHOLD GOODS COLLECTIVE ACTIVITIES.

    Section 13703(d) of title 49, United States Code,

is amended by inserting ``(other than an agreement affecting only the 
transportation of household goods, as defined on December 31, 1995)'' 
after ``agreement'' in the first sentence.

SEC. 12. AUTHORIZATION LEVELS.

    There are authorized to be appropriated to the Surface 
Transportation Board $16,000,000 for fiscal year 1999, $17,000,000 for 
fiscal year 2000, $17,555,000 for fiscal year 2001, and $18,129,000 for 
fiscal year 2002.

SEC. 13. CHAIRMAN DESIGNATED WITH SENATE CONFIRMATION.

    Section 701(c)(1) of title 49, United States Code, is amended by 
striking ``President'' and inserting ``President, by and with the 
advice and consent of the Senate,''.

Summary: Surface Transportation Board Reauthorization and Improvement Act of 1999 - Amends Federal transportation law to declare that it is U.S. rail transportation policy to: (1) encourage and promote effective competition within the rail industry; and (2) discourage artificial barriers to interchange and car supply which can impede competition between shortline, regional, and Class I carriers and block effective rail service to shippers. 
(Sec. 3) Extends from 30 days to 60 days (including an additional 60 day extension, but no longer than 18 months unless the Board requests an extension from Congress) the period of time that the Surface Transportation Board may direct the handling, routing, and movement of rail carrier traffic during emergency situations involving congestion of traffic, unauthorized cessation of operations, or other failure of traffic movement. 
(Sec. 4) Directs the Board to: (1) review rules and procedures applicable to rate complaints and other complaints filed with it by small shippers; and (2) identify, and reduce or eliminate, any such rules or procedures that are unduly burdensome to them; and (3) notify specified congressional committees that such changes in the rules and procedures are appropriate. 
(Sec. 5) Prohibits the Board from considering evidence of product or geographic competition when making market dominance determinations in rail rate proceedings. 
(Sec. 6) Amends U.S. rail transportation policy to eliminate a requirement that the Board make a determination with respect to what are adequate revenues for rail carriers in the promotion of a safe and efficient rail transportation system.  Requires the Board, in order to facilitate the process by which it gives due consideration to the policy that rail carriers shall earn adequate revenues, to convene a three-member panel of outside experts to make recommendations as to an appropriate methodology by which the adequacy of a carrier's revenues should be considered. 
(Sec. 7) Provides for situations in which a shipper and rail carrier enter into a contract for transportation that requires a through route with the connecting carrier and there is no reasonable alternative route that can be constructed without the connecting carrier' participation. Requires a connecting carrier in such a situation, upon request, to establish a through route and a contract rate (bottleneck rate) for such transportation unless the connecting carrier shows that: (1) the interchange requested is not operationally feasible; or (2) the through route would significantly impair the connecting carrier's ability to serve its other traffic.  Requires contract rate complaints to be limited to the rate that applies to the portion of the through route not governed by the contract. 
(Sec. 8) Directs the Board to promulgate regulations adopting a simplified dispute resolution mechanism that will expedite (with a minimum of discovery) the arbitration of disputes before the Board (other than rate reasonableness cases that would be decided under constrained market pricing principles). 
(Sec. 9) Requires the Board, in proceedings which involve the merger or control of at least two Class I railroads, to consider, among other things, means and methods to encourage and expand competition between and among rail carriers in the affected region or the national rail system. Authorizes the Board to impose conditions to encourage and expand such competition, provided that they do not cause substantial harm to the benefits of the transaction to the affected carriers or the public. 
(Sec. 10) Authorizes the Board to grant temporary access relief to a rail carrier to through routes or terminal facilities in order to remedy inadequate rail service. 
(Sec. 11) Excludes agreements affecting only the transportation of household goods from the requirement that Board approval of route and rate agreements between motor carriers expire within three years of such approval unless renewed. 
(Sec. 12) Authorizes appropriations. 
(Sec. 13) Requires Senate confirmation with respect to the appointment of the Board Chairman.