Statement of Administration Policy: S. 1396 - Interstate Commerce Commission Sunset Act of 1995

(Senate)
(Pressler (R) South Dakota and 6 cosponsors)

The Administration strongly supports the termination of the Interstate Commerce Commission (ICC), and has proposed legislation (H.R. 1436) for this purpose. Eliminating those elements of economic regulation that no longer enhance productivity and competitiveness is a primary Administration priority.

S. 1396, however, would accomplish no genuine deregulation. It would simply merge the ICC's most burdensome regulatory elements with the Federal Maritime Commission (FMC) in a new Federal entity. The Administration therefore strongly opposes S. 1396 unless it is amended to:

• Delete unilateral changes in rail labor protection provisions. The Administration believes that the existing standards enable carriers to improve efficiency while protecting the interests of affected employees, and therefore should not be changed by Congress. If a legislative solution is deemed necessary, however, the Administration believes that it should afford no less protection than comparable provisions in H.R. 2539, the "ICC Termination Act of 1995," as passed by the House. In addition, rail employee protection provisions should be administered by the Department of Labor, which already administers several similar provisions, rather than by a new agency.
  
  
• Conform rail merger review standards to those which apply to other industries. Mergers in the railroad industry should be reviewed by the Department of Justice under the same antitrust standards that apply to other industries, rather than under a separate standard interpreted by a successor to the ICC. Given the unique nature of the railroad industry, it is especially necessary that competition be preserved for shippers.
  
  
• Eliminate the proposed Intermodal Surface Transportation Board. Rather than abolish all non-productive economic regulatory functions currently performed by the ICC, S. 1396 transfers them to a new independent agency and then merges the FMC with that agency. Although the new agency would technically be located in the Department of Transportation, it would not be responsible to the Secretary and would function very much like the ICC does today. Any regulations which continue to serve a useful purpose (such as protection of captive shippers under the Staggers Act) should be enforced by the Department of Transportation, not a renamed ICC. Nonproductive economic regulations affecting the trucking, intercity bus, household goods height forwarder, broker, pipeline, domestic offshore water carrier, interstate rail passenger, and ferry industries should be terminated as proposed by the Administration.
  
  
• Delete the extension of antitrust immunity for the railroad and motor-carrier industries. Consumers and rail and motor carriers should be permitted to benefit from the removal of unproductive economic regulatory burdens. This will not occur if rail and motor carriers are permitted to impose artificially high rates on consumers. Price-fixing is not tolerated in the economy as a. whole, and should not be permitted in the rail and motor carrier industries.