[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1137 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1137

   To amend the Clayton Act to enhance the authority of the Attorney 
      General of the United States to prevent certain mergers and 
        acquisitions that would unreasonably limit competition.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 26, 1999

  Mrs. Boxer introduced the following bill; which was read twice and 
               referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
   To amend the Clayton Act to enhance the authority of the Attorney 
      General of the United States to prevent certain mergers and 
        acquisitions that would unreasonably limit competition.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Integrated Oil Company Antitrust 
Act''.

SEC. 2. PURPOSE.

    The purpose of this Act is to enhance the authority of the Attorney 
General of the United States to promote competition in the oil industry 
by ensuring access to crude oil and petroleum product for refiners that 
are not part of an integrated oil company and for independent 
marketers.

SEC. 3. RESTRAINT OF TRADE.

    The Clayton Act (15 U.S.C. 12 et seq.) is amended by adding at the 
end the following new section:

``SEC. 28. RESTRAINT OF TRADE REGARDING INTEGRATED OIL COMPANIES.

    ``(a) Definitions.--In this section:
            ``(1) Integrated oil company.--The term `integrated oil 
        company' has the meaning given that term in section 291(b)(4) 
        of the Internal Revenue Code of 1986.
            ``(2) Oil industry.--The term `oil industry'--
                    ``(A) means the oil industry of the United States; 
                and
                    ``(B) includes integrated oil companies, refiners 
                that are not part of an integrated oil company, and 
                independent marketers.
    ``(b) Restraint of Trade Regarding Integrated Oil Companies.--
Notwithstanding any other provision of law, an integrated oil company, 
including any affiliate of such a company, shall not merge with or 
acquire a controlling interest in another integrated oil company, 
unless--
            ``(1) the Attorney General of the United States finds that 
        the proposed merger or acquisition will promote competition in 
        the oil industry; and
            ``(2)(A) the integrated oil company acquiring or merging 
        with another integrated oil company agrees to make available 
        for sale to refiners that are not part of an integrated oil 
        company and to independent marketers sufficient quantities of 
        crude oil and petroleum product to ensure adequate competition 
        between--
                    ``(i) integrated oil companies; and
                    ``(ii)(I) refiners that are not a part of an 
                integrated oil company; and
                    ``(II) independent marketers; and
            ``(B) the Federal Trade Commission approves that agreement.
    ``(c) Report of the Attorney General of the United States.--Not 
later than 10 days after the Attorney General of the United States 
makes a finding described in subsection (b)(1), the Attorney General 
shall submit to the Committee on the Judiciary of the Senate and the 
Committee on the Judiciary of the House of Representatives a report on 
the finding, including an analysis of the effect of the merger or 
acquisition on competition in the oil industry.
    ``(d) Application Process.--
            ``(1) In general.--Each integrated oil company or affiliate 
        of an integrated oil company proposing to merge with or acquire 
        a controlling interest in another integrated oil company shall 
        file an application with both the Attorney General of the 
        United States and the Federal Trade Commission, on the same 
        day.
            ``(2) Decisions.--The Attorney General and the Federal 
        Trade Commission shall issue a decision regarding the 
        application within the time period applicable for review of 
        mergers under section 7A of this Act.
    ``(e) Jurisdiction of the United States Courts.--
            ``(1) In general.--The district courts of the United States 
        are vested with jurisdiction to prevent and restrain any 
        mergers or acquisitions described in subsection (d) that are 
        inconsistent with the requirements under subsection (b).
            ``(2) Actions.--The Attorney General of the United States 
        may institute proceedings in any district court of the United 
        States in the district in which the defendant resides or is 
        found, or has an agent, and that court shall order such 
        injunctive, and other relief, as may be appropriate if--
                    ``(A) the Attorney General makes a finding that a 
                proposed merger or acquisition described in subsection 
                (d) does not meet the applicable condition under 
                subsection (b)(1); or
                    ``(B) the Federal Trade Commission makes a finding 
                that 1 or more of the parties to the merger or 
                acquisition referred to in subsection (b)(2) do not 
                meet the requirements specified in that subsection.''.

SEC. 4. APPLICABILITY.

    This Act and the amendments made by this Act shall apply to a 
merger or acquisition of a controlling interest of an integrated oil 
company (as that term is defined in section 28(a) of the Clayton Act, 
as added by section 3 of this Act), occurring on or after the date of 
enactment of this Act.
                                 <all>