Judiciary Bill III
4. S 1137 IS
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.