[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 477 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 477

  To enhance competition among airlines and reduce airfares, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 25, 1999

  Mr. Schumer introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
  To enhance competition among airlines and reduce airfares, and for 
                            other purposes.

    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 ``Airline Competition Act of 1999''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Air carrier.--The term ``air carrier'' has the meaning 
        given that term in section 40102(2) of title 49, United States 
        Code.
            (2) Aircraft.--The term ``aircraft'' has the meaning given 
        that term in section 40102(6) of title 49, United States Code.
            (3) Airport.--The term ``airport'' has the meaning given 
        that term in section 40102(9) of title 49, United States Code.
            (4) Attorney general.--The term ``Attorney General'' means 
        the Attorney General of the United States.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.

SEC. 3. PREFERENCE FOR LOW-COMPETITION AIRPORTS.

    (a) Definitions.--Section 41714(h) of title 49, United States Code, 
is amended--
            (1) by redesignating paragraphs (3) and (4) as paragraphs 
        (5) and (6), respectively; and
            (2) by inserting after paragraph (2) the following:
            ``(3) Large hub airport.--The term `large hub airport' 
        means an airport described in section 47134(d)(2).
            ``(4) Low-competition airport.--The term `low-competition 
        airport' means an airport that--
                    ``(A) is not a large hub airport; and
                    ``(B) the Secretary determines has substantially--
                            ``(i) less service than the average service 
                        at airports in the United States; or
                            ``(ii) higher airfares than average 
                        airfares for airports in the United States.''.
    (b) Preference.--Section 41714(c)(1) of title 49, United States 
Code, is amended by adding at the end the following: ``In granting 
exemptions under this paragraph, the Secretary shall give preference to 
air transportation provided to low-competition airports that are 
located within a 500-mile radius of a high density airport.''.

SEC. 4. UNFAIR COMPETITION.

    (a) Guidelines.--Not later than 30 days after the date of enactment 
of this Act, the Secretary, in consultation with the Attorney General, 
shall issue regulations that define predatory practices and unfair 
methods of competition of air carriers for the purposes of applying 
this Act to complaints of predatory practices or unfair methods of 
competition filed under section 41712 of title 49, United States Code, 
or any other applicable provision of law.
    (b) Determinations Regarding Actions Filed.--
            (1) Actions filed before the date of enactment of this 
        act.--Not later than 9 months after the date of enactment of 
        this Act, the Secretary shall complete action on any complaint 
        alleging a predatory practice or unfair method of competition 
        by an air carrier that was filed with the Secretary under 
        section 41712 of title 49, United States Code, or any other 
        applicable provision of law before the date of enactment of 
        this Act.
            (2) Actions filed on or after the date of enactment of this 
        act.--
                    (A) In general.--Not later than 90 days after a 
                complaint alleging a predatory practice or unfair 
                method of competition by an air carrier is filed with 
                the Secretary under section 41712 of title 49, United 
                States Code, or any other applicable provision of law, 
                the Secretary shall make an initial finding concerning 
                whether the practice that is the subject of the 
                complaint constitutes a predatory practice or unfair 
                method of competition.
                    (B) Applicability.--Subparagraph (A) shall apply to 
                a complaint filed with the Secretary on or after the 
                date of enactment of this Act.
    (c) Restraining Orders.--
            (1) In general.--In a manner consistent with section 41712 
        or any other applicable provision of law, the Secretary shall 
        enjoin, pending final determination, any action of an air 
        carrier that the Secretary finds to be a predatory practice or 
        unfair method of competition under subsection (b).
            (2) Period for taking action.--The Secretary shall carry 
        out the requirements of paragraph (1) not later than 15 days 
        after an initial finding is made with respect to a complaint 
        under subsection (b) (or if the initial finding is made before 
        the date of enactment of this Act, not later than 15 days after 
        the date of enactment of this Act).

SEC. 5. LIMITS ON COMPETITION IN AVIATION INDUSTRY.

    Not later than 1 year after the date of enactment of this Act, and 
annually thereafter, the Secretary shall transmit to Congress a report 
concerning barriers to entry, predatory practices (including pricing), 
and other limits on competition in the aviation industry.

SEC. 6. PROVISIONS TO PREVENT INCREASED AIRCRAFT NOISE.

    (a) Secretarial Authority Under This Act.--Nothing in this Act or 
the amendments made by this Act shall authorize the Secretary to take 
any action that would increase aircraft noise in any community in the 
vicinity of an airport.
    (b) Stage 4 Noise Levels.--
            (1) Proposed regulations.--Section 47523 of title 49, 
        United States Code, is amended by adding at the end the 
        following:
    ``(c) Stage 4 Noise Levels.--
            ``(1) Proposed regulations.--Not later than 1 year after 
        the date of enactment of the Airline Competition Act of 1999, 
        the Secretary shall issue proposed regulations that--
                    ``(A) establish, in a manner consistent with this 
                chapter, stage 4 noise levels applicable to aircraft 
                designated by the Secretary as stage 4 aircraft; and
                    ``(B) provide for the implementation of the stage 4 
                noise level requirements by the date that is 36 months 
                after the date of issuance of the proposed regulations.
            ``(2) Criteria for noise levels.--The stage 4 noise levels 
        established under this subsection shall--
                    ``(A) provide for a significant reduction in the 
                level of noise generated by aircraft; and
                    ``(B) be consistent with the noise levels 
                attainable through the use of the most effective noise 
                control technology available for stage 3 aircraft (as 
                that term is used under section 47524(c)), as of 
                January 1, 1999.''.
            (2) Legislative proposals.--At the same time as the 
        Secretary issues proposed regulations under section 47523(c) of 
        title 49, United States Code, as added by paragraph (1) of this 
        subsection, the Secretary shall submit to Congress such 
        proposed legislation (including amendments to chapter 475 of 
        title 49, United States Code) as is necessary to ensure the 
        implementation of stage 4 noise levels (as that term is used in 
        such section 47523(c)).

SEC. 7. CLARIFICATION OF LEGAL STANDING.

    Section 41713(b) of title 49, United States Code, is amended by 
adding at the end the following:
    ``(5) This subsection shall not bar any cause of action brought 
against an air carrier by 1 or more private parties seeking to enforce 
any right under the common law of any State or under any State statute, 
other than a statute purporting to directly prescribe fares, routes, or 
levels of air transportation service.''.
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