A bill to reform the economic regulation of railroads, to improve the quality of rail service in the United States through financial assistance which encourages railroad restructuring, and for other purposes.

Title I: Railroad Deregulation - Railroad Deregulation Act of 1979 - Directs the Interstate Commerce Commission to consider certain factors including the following to be in the public interest with respect to rail transportation: (1) maximum reliance on competitive market forces; (2) avoidance of undue concentrations of market power; (3) reduction of regulatory barriers to entry into the industry; and (4) maintenance of fair wages and working conditions.

Stipulates that five years after the enactment of this Act any railroad subject to the jurisdiction of the Commission may establish any rate and condition for transportation or other service.

Sets forth the allowable level for rate increases during the five year transitionary period following the effective date of this Act.

Stipulates that investigations of rate increases during such interim period may only be made upon complaint by the purchaser of the rail services involved or by an organization representing such a purchaser. Stipulates that in order to initiate such an investigation the complaining purchaser must show that he will be or has been competitively damaged by the imposition of the rate involved and that he is likely to prevail on the merits in any investigation which is undertaken. Stipulates that in any such investigation the complainant must prove, by clear and convincing evidence, that there is no reasonable alternative to the transportation by the carrier that has proposed the increase. Sets forth considerations which the Commission is to consider in determining whether such a reasonable alternative exists. Stipulates that if the complainant shows that there is no such alternative then the burden of proving the reasonableness of the increase shall rest on the rail carriers involved. Sets forth limitations on the Commission's power to lower any disputed rate should the rail carrier fail to meet such burden of proof.

Prohibits any rail carrier, with the intent to eliminate a competitor, to set a rate below a level that contributes to its going concern value.

Authorizes rail carriers to file tariffs which establish a zone of fares under which rates may be lowered or raised in response to either expected or actual fluctuations in the demand for rail service.

Reduces the time period during which the Commission must complete investigatory proceedings with respect to new rail carrier rates.

Authorizes the Commission to assess attorney's fees against a rail carrier for rate violations which are found to be willful and to assess such fees against a complaining purchaser if it finds that the action was initiated or continued in bad faith.

Authorizes rail carriers to establish joint-line rates for through service on any route, and to agree on any division of such revenues either among themselves or with carriers of other modes. Sets forth a division of revenues for joint fares if the carriers involved fail to reach an agreement regarding such a division.

Requires that railroad rate bureau meetings be open to the public and recorded. Stipulates that transcripts of such meetings shall be available to the public and that all votes and agreements shall be open and recorded.

Exempts from the antitrust laws, agreements between rail carriers which provide solely for the compilation, publication, and distribution of rates in effect or which are to become effective.

Prohibits a rail carrier from discriminating with respect to rates between similarly situated purchasers unless: (1) the cost of the services differ as between the purchasers and the charges reflect only such difference; or (2) the degree of competition to provide the purchasers with transportation services differs as between the purchasers. Stipulates that the Commission may only investigate such discrimination upon petition by a complainant. Places the burden of showing such discrimination on the petitioner. Establishes remedies where such rate discrimination is found to exist.

Requires a rail carrier which has entered into a contract to provide a purchaser of rail services with specific services at specific rates to publish and file with the Commission the essential terms of such a contract, as required by the Commission.

Prohibits the Commission from prescribing the format for the tariffs filed by a rail carrier.

Sets forth the time period after which new or changed rail carrier rates may become effective. Stipulates that after the five year interim period provided in this Act rates may become effective upon publication.

Authorizes a rail carrier to provide transportation services for the United States Government at a rate to be retroactively determined where the Government represents to the carrier that the retroactive setting of such a rate is necessary to meet the needs of the national defense.

Repeals the Commission's authority to maintain standards and procedures for demand sensitive rates.

Authorizes a rail carrier to establish freight rates under which the liability of the carrier is limited to the value of the property as established by a written declaration of the shipper, by a written agreement, or by a declaration in a tariff which limits liability for losses.

Removes the requirement that the Commission investigate and report the value of all property owned or used by each rail carrier.

Directs the Secretary of Transportation, within two years after the effective date of this title, to prepare and submit to the Congress a preliminary study of competition in the provision of rail transportation services.

Directs the Secretary, within four years of the effective date, to submit to the Congress a final study summarizing the effects of maximum rate regulation under this title.

Authorizes other entities in addition to rail carriers (except other common carriers) to: (1) construct and operate a new railroad line or an extension of an existing line; (2) construct and operate a railroad line which crosses another line so long as such action does not unreasonably interfere with the operation of the line crossed and the owner of the crossing line pays the owner of the crossed line a fair market rental or for the easement provided; and (3) acquire an existing rail carrier or portion thereof and operate its railroad line.

Requires rail carriers providing service within a given Standard Metropolitan Statistical Area to provide switching service in a nondiscriminatory manner.

Directs the Commission to find that the public convenience and necessity requires and permits the abandonment or discontinuance of a rail line if: (1) no objection to the abandonment or discontinuance application is timely filed; (2) the applicant demonstrates that the revenues attributable to the line or service do not meet or exceed the full cost of operating the line or service; or (3) the Commission finds that the benefit to the applicant carrier from abandonment or discontinuance exceeds the detriment to the objecting party and others similarly situated from loss of service.

Stipulates that certificates approving such a discontinuance or abandonment shall take effect on the 31st day after its issuance.

Requires an applicant for such an action to include in the application a statement that the line is available for subsidy or sale and an estimate of the subsidy and minimum purchase price required to keep the line in operation.

Sets forth burden of proof requirements as to applications for abandonment or discontinuance.

Sets forth deadlines during which the Commission must act regarding objections to such applications.

Stipulates that if, within ten days after the Commission publishes its approval of such an application, the carrier has received an offer of a subsidy or offer to buy from an individual or governmental entity, any certificate issued authorizing such discontinuance or abandonment shall have no effect. Stipulates that if a subsidy or sale agreement is not consummated within 100 days after publication the Commission shall issue a new certificate authorizing the abandonment or discontinuance.

Stipulates that if the carrier and offeror cannot agree on the full cost or other terms of the subsidy or sale, one or the other may submit the dispute to the Commission for binding arbitration. Entitles an offeror to withdraw the subsidy offer at the conclusion of such arbitration.

Limits such a buyer's right to transfer or discontinue service for a specified period.

Stipulates that any subsidy provided to a rail carrier may be discontinued on 60 days notice to the operating carrier and the Commission.

Makes the procedures governing abandonments and discontinuances exclusive and not subject to modification by a State except where the service provided is wholly intrastate.

Directs the Commission, after a hearing, to authorize any transaction involving two or more rail carriers that provides for the coordination of services, exchange of markets, joint use of facilities, granting of trackage rights, or transfer of less than substantially all of the rail assets of any such carrier unless it finds that: (1) the transaction is likely to result in a substantial lessening of competition, creation of a monopoly, or restraint of trade; and (2) the anticompetitive effects of the transaction outweigh the public interest in meeting significant transportation needs.

Sets forth time limits during which the Commission must act on applications regarding such transactions.

Removes the Commission's jurisdiction with respect to railroad mergers, acquisitions of control, or consolidations. Stipulates that no such transaction may take place unless the Commission certifies that the transaction is in compliance with the employee protection arrangements contained in this Act. Makes such transactions subject to the antitrust laws.

Sets forth employee protection arrangements with respect to such transactions.

Removes the Commission's authority with respect to the issuance of rail carrier securities.

Requires rail carriers to establish and publish an agreement that sets forth an enforcement mechanism for uniform, industry-wide rules covering safe and adequate car service and related practices, demurrage rates, and charges for a rail carrier's use of rolling stock owned by another rail carrier and other equipment used in rail transportation.

Requires such an agreement to be approved by the Commission. Exempts such an approved agreement from the antitrust laws.

Stipulates that if rail carriers cannot, within 18 months after the enactment of this Act, reach such an agreement, any rail carrier may submit a dispute regarding car service, car hire, demurrage charges, or related practices to the Commission for binding arbitration.

Authorizes the Secretary of Transportation, upon a finding by the President that a shortage of equipment, congestion of traffic or other railroad emergency exists, to take specified actions to alleviate such an emergency.

Transfers the implementation of a Presidential order setting rail traffic priorities during time of war or threatened war from the Commission to the Secretary of Transportation.

Requires the Commission, within four years of the effective date of this title, to revise all the reporting requirements affecting rail carriers to require the minimum amount of information necessary for the Commission to properly perform its duties.

Directs the Commission, within one year of the effective date, to prescribe a Uniform Cost Accounting and Reporting System for rail carriers.

Provides for the establishment of arbitration panels within the Commission to arbitrate disputes arising under this Act. Establishes administrative procedures regarding such arbitration and provides for judicial review of arbitration decisions.

Prohibits any State or political subdivision thereof from enacting or enforcing any law which relates to rates, classifications, services, or the financial structure of a rail carrier or which constitutes an unreasonable discrimination against or imposes an unreasonable burden on interstate commerce.

Title II: Rail Restructuring Assistance - Rail Restructuring Assistance Act of 1979 - Amends the Railroad Revitalization and Regulatory Reform Act of 1976 to authorize the Secretary of Transportation to provide financing assistance, through repayable credits constituting a debt or equity financial, to any class I railroad (except Con Rail) to pay any share of the cost of restructuring its facilities, including related labor protection costs and the acquisition of securities pursuant to such a restructuring. Sets forth the conditions of eligibility to receive such assistance.

Stipulates that the Secretary shall provide such assistance by purchasing a fixed debt obligation issued by a railroad, or where the Secretary determines that an equity financing is essential to a restructuring, the Secretary may provide financial assistance by purchasing Senior Preferred Stock of the rail carrier.

Authorizes the Secretary to provide financial assistance to class I railroads (other than Con Rail) to cover up to 100 percent of the railroad's payments to any eligible employee or former employee to whom the railroad is obligated to make payments under a labor-management agreement which results in a significant change in railroad operating practices or work rules and which the Secretary determines will significantly improve manpower effectiveness.

Stipulates that the Secretary shall provide such assistance by purchasing a fixed debt obligation, including a trustee certificate, of the railroad.

Authorizes appropriations for fiscal years 1980 through 1984 to provide financial assistance under this title.