HF 3778

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

1.1     A resolution
1.2     memorializing Congress to support H.R. 3318, the Railroad Antitrust and 
1.3     Competition Enhancement Act.
1.4     WHEREAS, freight rail service in Minnesota is vital to the health of our state's economy, 
1.5     with major impacts on agriculture, forest products, utilities, and manufacturing, affecting 
1.6     consumer pocketbooks, as well as economic development and jobs; and  
1.7     WHEREAS, in 1980, when Congress deregulated most railroad activities, the United States 
1.8     had 40 major railroads, but today there are only seven Class I railroads, and four of those control 
1.9     90 percent of the nation's freight rail traffic; and 
1.10    WHEREAS, the concentration of rail service among fewer carriers has led to more "captive 
1.11    shippers," customers with one railroad as their only transportation option, and has recently led to 
1.12    dramatically increasing transportation costs for rail service to bulk commodity industries; and
1.13    WHEREAS, the freight rail industry enjoys both freedom from extensive federal regulation 
1.14    and an exemption from the federal antitrust laws, creating an uncompetitive environment that 
1.15    hampers the development of competitive forces that might restrain transportation price increases; 
1.16    and
1.17    WHEREAS, electric power suppliers to Minnesota consumers are a key component of a 
1.18    healthy Minnesota economy, and heavily rely upon rail service for fuel delivery, and they are 
1.19    incurring dramatically increased rail service costs and a declining quality of rail service with 
1.20    utilities reporting near doubling of rail rates for moving coal to electric generators; and
2.1     WHEREAS, higher rail rates and deteriorating service have greatly affected agriculture, the 
2.2     state's number one industry, by restraining the ability of our state's farmers to remain competitive 
2.3     in the global marketplace; NOW, THEREFORE,  
2.4     BE IT RESOLVED by the Legislature of the State of Minnesota that Congress repeal the 
2.5     current antitrust exemption of the railroad industry from the nation's antitrust laws in order 
2.6     to increase competition and ultimately lower prices to benefit our Minnesota economy and 
2.7     consumers. 
2.8     BE IT FURTHER RESOLVED that the Secretary of State of the State of Minnesota is 
2.9     directed to prepare copies of this memorial and transmit them to the President of the United 
2.10    States, the President and the Secretary of the Senate, the Speaker and the Clerk of the House 
2.11    of Representatives, the Chairs of the House and Senate committees on transportation, and 
2.12    Minnesota's Senators and Representatives in Congress.