Union Calendar No. 163

104TH CONGRESS

1ST SESSION H. R. 2539

[Report No. 104–311]

A BILL

To abolish the Interstate Commerce Commission, to

tation, and for other purposes.Code, to reform economic regulation of transporamend subtitle IV of title 49, United States

NOVEMBER 6, 1995

Reported with an amendment, committed to the Commitordered to be printed tee of the Whole House on the State of the Union, and
IB

Union Calendar No. 163

104TH CONGRESS

1ST SESSION H. R. 2539

[Report No. 104–311]

To abolish the Interstate Commerce Commission, to amend subtitle IV of

title 49, United States Code, to reform economic regulation of transportation, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 26, 1995

Mr. SHUSTER (for himself, Mr. PETRI, Mr. RAHALL, and Ms. MOLINARI) introduced the following bill; which was referred to the Committee on

Transportation and Infrastructure

NOVEMBER 6, 1995

Reported with an amendment, committed to the Committee of the Whole

House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on October 26, 1995]

A BILL

To abolish the Interstate Commerce Commission, to amend

subtitle IV of title 49, United States Code, to reform

economic regulation of transportation, and for other

purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
2

•HR 2539 RH

1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘ICC Termination Act

3 of 1995’’.

4 TITLE I—ABOLITION OF INTER5 STATE COMMERCE COMMIS6 SION

7 SEC. 101. ABOLITION.

8 The Interstate Commerce Commission is abolished.

9 SEC. 102. RAIL PROVISIONS.

10 (a) AMENDMENT.—Subtitle IV of title 49, United

11 States Code, is amended to read as follows:

12 ‘‘SUBTITLE IV—INTERSTATE TRANSPORTATION

‘‘PART A—RAIL

‘‘CHAPTER Sec.

‘‘101. GENERAL PROVISIONS .............................................................. 10101

‘‘103. JURISDICTION .............................................................................. 10301

‘‘105. RATES .............................................................................................. 10501

‘‘107. LICENSING ..................................................................................... 10701

‘‘109. OPERATIONS ................................................................................. 10901

‘‘111. FINANCE ......................................................................................... 11101

‘‘113. FEDERAL-STATE RELATIONS ................................................. 11301

‘‘115. ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND REMEDIES.11501

‘‘117. CIVIL AND CRIMINAL PENALTIES ......................................... 11701

‘‘PART B—MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND

FREIGHT FORWARDERS

‘‘CHAPTER Sec.

‘‘131. GENERAL PROVISIONS .............................................................. 13101

‘‘133. ADMINISTRATIVE PROVISIONS .............................................. 13301

‘‘135. JURISDICTION .............................................................................. 13501

‘‘137. RATES AND THROUGH ROUTES ............................................ 13701

‘‘139. REGISTRATION ............................................................................. 13901

‘‘141. OPERATIONS OF CARRIERS .................................................... 14101

‘‘143. FINANCE ......................................................................................... 14301

‘‘145. FEDERAL-STATE RELATIONS ................................................. 14501

‘‘147. ENFORCEMENT; INVESTIGATIONS; RIGHTS; REMEDIES.14701

‘‘149. CIVIL AND CRIMINAL PENALTIES ......................................... 14901
3

•HR 2539 RH

1 ‘‘PART A—RAIL

2 ‘‘CHAPTER 101—GENERAL PROVISIONS

‘‘Sec.

‘‘10101. Rail transportation policy.

‘‘10102. Definitions.

‘‘10103. Remedies are exclusive.

3 ‘‘§ 10101. Rail transportation policy

4 ‘‘In regulating the railroad industry, it is the policy

5 of the United States Government—

6 ‘‘(1) to allow, to the maximum extent possible,

7 competition and the demand for services to establish

8 reasonable rates for transportation by rail;

9 ‘‘(2) to minimize the need for Federal regulatory

10 control over the rail transportation system and to re11 quire fair and expeditious regulatory decisions when

12 regulation is required;

13 ‘‘(3) to promote a safe and efficient rail trans14 portation system by allowing rail carriers to earn

15 adequate revenues, as determined by the Panel;

16 ‘‘(4) to ensure the development and continuation

17 of a sound rail transportation system with effective

18 competition among rail carriers and with other

19 modes, to meet the needs of the public and the na20 tional defense;

21 ‘‘(5) to foster sound economic conditions in

22 transportation and to ensure effective competition
4

•HR 2539 RH

1 and coordination between rail carriers and other

2 modes;

3 ‘‘(6) to maintain reasonable rates where there is

4 an absence of effective competition and where rail

5 rates provide revenues which exceed the amount nec6 essary to maintain the rail system and to attract cap7 ital;

8 ‘‘(7) to reduce regulatory barriers to entry into

9 and exit from the industry;

10 ‘‘(8) to operate transportation facilities and

11 equipment without detriment to the public health and

12 safety;

13 ‘‘(9) to encourage honest and efficient manage14 ment of railroads;

15 ‘‘(10) to require rail carriers, to the maximum

16 extent practicable, to rely on individual rate in17 creases, and to limit the use of increases of general

18 applicability;

19 ‘‘(11) to encourage fair wages and safe and suit20 able working conditions in the railroad industry;

21 ‘‘(12) to avoid undue concentrations of market

22 power and to prohibit unlawful discrimination;

23 ‘‘(13) to ensure the availability of accurate cost

24 information in regulatory proceedings, while mini25 mizing the burden on rail carriers of developing and
5

•HR 2539 RH

1 maintaining the capability of providing such infor2 mation; and

3 ‘‘(14) to encourage and promote energy conserva4 tion.

5 ‘‘§ 10102. Definitions

6 ‘‘In this part—

7 ‘‘(1) ‘car service’ includes (A) the use, control,

8 supply, movement, distribution, exchange, inter9 change, and return of locomotives, cars, other vehicles,

10 and special types of equipment used in the transpor11 tation of property by a rail carrier, and (B) the sup12 ply of trains by a rail carrier;

13 ‘‘(2) ‘control’, when referring to a relationship

14 between persons, includes actual control, legal control,

15 and the power to exercise control, through or by (A)

16 common directors, officers, stockholders, a voting

17 trust, or a holding or investment company, or (B)

18 any other means;

19 ‘‘(3) ‘Panel’ means the Transportation Adjudica20 tion Panel;

21 ‘‘(4) ‘person’, in addition to its meaning under

22 section 1 of title 1, includes a trustee, receiver, as23 signee, or personal representative of a person;

24 ‘‘(5) ‘rail carrier’ means a person providing

25 railroad transportation for compensation, but does
6

•HR 2539 RH

1 not include street, suburban, or interurban electric

2 railways not operated as part of the general system

3 of rail transportation;

4 ‘‘(6) ‘railroad’ includes—

5 ‘‘(A) a bridge, car float, lighter, ferry, and

6 intermodal equipment used by or in connection

7 with a railroad;

8 ‘‘(B) the road used by a rail carrier and

9 owned by it or operated under an agreement;

10 and

11 ‘‘(C) a switch, spur, track, terminal, termi12 nal facility, and a freight depot, yard, and

13 ground, used or necessary for transportation;

14 ‘‘(7) ‘rate’ means a rate, fare, or charge for

15 transportation;

16 ‘‘(8) ‘State’ means a State of the United States

17 and the District of Columbia;

18 ‘‘(9) ‘transportation’ includes—

19 ‘‘(A) a locomotive, car, vehicle, yard, prop20 erty, facility, instrumentality, or equipment of

21 any kind related to the movement of passengers

22 or property, or both, by rail, regardless of owner23 ship or an agreement concerning use; and

24 ‘‘(B) services related to that movement, in25 cluding receipt, delivery, elevation, transfer in
7

•HR 2539 RH

1 transit, refrigeration, icing, ventilation, storage,

2 handling, and interchange of passengers and

3 property; and

4 ‘‘(10) ‘United States’ means the States of the

5 United States and the District of Columbia.

6 ‘‘§10103. Remedies are exclusive

7 ‘‘Except as otherwise provided in this part, the rem8 edies provided under this part are exclusive and preempt

9 the remedies provided under Federal or State law.

10 ‘‘CHAPTER 103—JURISDICTION

‘‘Sec.

‘‘10301. General jurisdiction.

‘‘10302. Authority to exempt rail carrier transportation.

11 ‘‘§ 10301. General jurisdiction

12 ‘‘(a)(1) Subject to this chapter and other law, the

13 Panel has jurisdiction over transportation by rail carrier

14 that is—

15 ‘‘(A) only by railroad; or

16 ‘‘(B) by railroad and water, when the transpor17 tation is under common control, management, or ar18 rangement for a continuous carriage or shipment.

19 ‘‘(2) Jurisdiction under paragraph (1) applies only to

20 transportation in the United States between a place in—

21 ‘‘(A) a State and a place in the same or another

22 State;

23 ‘‘(B) a State and a place in a territory or pos24 session of the United States;
8

•HR 2539 RH

1 ‘‘(C) a territory or possession of the United

2 States and a place in another such territory or pos3 session;

4 ‘‘(D) a territory or possession of the United

5 States and another place in the same territory or pos6 session;

7 ‘‘(E) the United States and another place in the

8 United States through a foreign country; or

9 ‘‘(F) the United States and a place in a foreign

10 country.

11 ‘‘(b) The jurisdiction of the Panel over—

12 ‘‘(1) transportation by rail carriers, and the

13 remedies provided in this part with respect to rates,

14 classifications, rules (including car service, inter15 change, and other operating rules), practices, routes,

16 services, and facilities of such carriers; and

17 ‘‘(2) the construction, acquisition, operation,

18 abandonment, or discontinuance of spur, industrial,

19 team, switching, or side tracks, or facilities, even if

20 the tracks are located, or intended to be located, en21 tirely in one State,

22 is exclusive.

23 ‘‘(c)(1) In this subsection—

24 ‘‘(A) the term ‘local governmental authority’—
9

•HR 2539 RH

1 ‘‘(i) has the same meaning given that term

2 by section 5302(a) of this title; and

3 ‘‘(ii) includes a person or entity that con4 tracts with the local governmental authority to

5 provide transportation services; and

6 ‘‘(B) the term ‘mass transportation’ means

7 transportation services described in section 5302(a) of

8 this title that are provided by rail.

9 ‘‘(2) Except as provided in paragraph (3), the Panel

10 does not have jurisdiction under this part over mass trans11 portation provided by a local governmental authority.

12 ‘‘(3)(A) Notwithstanding paragraph (2) of this sub13 section, a local governmental authority, described in para14 graph (2), is subject to applicable laws of the United States

15 related to—

16 ‘‘(i) safety;

17 ‘‘(ii) the representation of employees for collective

18 bargaining; and

19 ‘‘(iii) employment retirement, annuity, and un20 employment systems or other provisions related to

21 dealings between employees and employers.

22 ‘‘(B) The Panel has jurisdiction under sections 10902

23 and 10903 of this title over mass transportation provided

24 by a local governmental authority.
10

•HR 2539 RH

1 ‘‘§ 10302. Authority to exempt rail carrier transpor2 tation

3 ‘‘(a) In a matter related to a rail carrier providing

4 transportation subject to the jurisdiction of the Panel under

5 this part, the Panel, to the maximum extent consistent with

6 this part, shall exempt a person, class of persons, or a trans7 action or service whenever the Panel finds that the applica8 tion of a provision of this part—

9 ‘‘(1) is not necessary to carry out the transpor10 tation policy of section 10101 of this title; and

11 ‘‘(2) either—

12 ‘‘(A) the transaction or service is of limited

13 scope; or

14 ‘‘(B) the application of the provision is not

15 needed to protect shippers from the abuse of mar16 ket power.

17 ‘‘(b) The Panel may, where appropriate, begin a pro18 ceeding under this section on its own initiative or on appli19 cation by the Secretary of Transportation or an interested

20 party. The Panel shall, within 90 days after receipt of any

21 such application, determine whether to begin an appro22 priate proceeding. If the Panel decides not to begin a pro23 ceeding, the reasons for the decision shall be published in

24 the Federal Register. Any proceeding begun as a result of

25 an application under this subsection shall be completed

26 within one year after it is begun.
11

•HR 2539 RH

1 ‘‘(c) The Panel may specify the period of time during

2 which an exemption granted under this section is effective.

3 ‘‘(d) The Panel may revoke an exemption, to the extent

4 it specifies, when it finds that application of a provision

5 of this part to the person, class, or transportation is nec6 essary to carry out the transportation policy of section

7 10101 of this title. The Panel shall, within 90 days after

8 receipt of a request for revocation under this subsection, de9 termine whether to begin an appropriate proceeding. If the

10 Panel decides not to begin a proceeding, the reasons for the

11 decision shall be published in the Federal Register. Any pro12 ceeding begun as a result of a request under this subsection

13 shall be completed within one year after it is begun.

14 ‘‘(e) No exemption order issued pursuant to this section

15 shall operate to relieve any rail carrier from an obligation

16 to provide contractual terms for liability and claims which

17 are consistent with the provisions of section 11506 of this

18 title. Nothing in this subsection or section 11506 of this title

19 shall prevent rail carriers from offering alternative terms

20 nor give the Panel the authority to require any specific level

21 of rates or services based upon the provisions of section

22 11506 of this title.

23 ‘‘(f) The Panel may exercise its authority under this

24 section to exempt transportation that is provided by a rail

25 carrier.
12

•HR 2539 RH

1 ‘‘(g) The Panel may not exercise its authority under

2 this section to relieve a rail carrier of its obligation to pro3 tect the interests of employees as required by this part.

4 ‘‘CHAPTER 105—RATES

‘‘SUBCHAPTER I—GENERAL AUTHORITY

‘‘Sec.

‘‘10501. Standards for rates, classifications, through routes, rules, and practices.

‘‘10502. Authority for rail carriers to establish rates, classifications, rules, and

practices.

‘‘10503. Authority for rail carriers to establish through routes.

‘‘10504. Authority and criteria: rates, classifications, rules, and practices prescribed by Panel.

‘‘10505. Authority: through routes, joint classifications, rates, and divisions prescribed by Panel.

‘‘10506. Rate agreements: exemption from antitrust laws.

‘‘10507. Determination of market dominance in rail rate proceedings.

‘‘10508. Inflation-based rate increases.

‘‘10509. Contracts.

‘‘SUBCHAPTER II—SPECIAL CIRCUMSTANCES

‘‘10521. Government traffic.

‘‘10522. Emergency rates.

‘‘10523. Car utilization.

‘‘SUBCHAPTER III—LIMITATIONS

‘‘10541. Prohibitions against discrimination by rail carriers.

‘‘10542. Facilities for interchange of traffic.

‘‘10543. Continuous carriage of freight.

‘‘10544. Transportation services or facilities furnished by shipper.

‘‘10545. Demurrage charges.

‘‘10546. Designation of certain routes by shippers.

5 ‘‘SUBCHAPTER I—GENERAL AUTHORITY

6 ‘‘§ 10501. Standards for rates, classifications, through

7 routes, rules, and practices

8 ‘‘(a) A through route established by a rail carrier must

9 be reasonable. Divisions of joint rates by rail carriers must

10 be made without unreasonable discrimination against a

11 participating carrier and must be reasonable.
13

•HR 2539 RH

1 ‘‘(b) A rail carrier providing transportation subject to

2 the jurisdiction of the Panel under this part may not dis3 criminate in its rates against a connecting line of another

4 rail carrier providing transportation subject to the jurisdic5 tion of the Panel under this part or unreasonably discrimi6 nate against that line in the distribution of traffic that is

7 not routed specifically by the shipper.

8 ‘‘(c) Except as provided in subsection (d) of this sec9 tion and unless a rate is prohibited by a provision of this

10 part, a rail carrier providing transporation subject to the

11 jurisdiction of the Panel under this part may establish any

12 rate for transportation or other service provided by the rail

13 carrier.

14 ‘‘(d)(1) If the Panel determines, under section 10507

15 of this title, that a rail carrier has market dominance over

16 the transportation to which a particular rate applies, the

17 rate established by such carrier for such transportation

18 must be reasonable.

19 ‘‘(2) In determining whether a rate established by a

20 rail carrier is reasonable for purposes of this section, the

21 Panel shall recognize the policy of this part that rail car22 riers shall earn adequate revenues, as established by the

23 Panel under section 10504(a)(2) of this title.

24 ‘‘(3) The Panel shall, within one year after the date

25 of the enactment of this paragraph, complete the pending
14

•HR 2539 RH

1 Interstate Commerce Commission non-coal rate guidelines

2 proceeding to establish simplified and expedited procedures

3 for the determination of rate reasonableness cases in which

4 a presentation of constrained market pricing evidence is

5 impractical.

6 ‘‘§ 10502. Authority for rail carriers to establish rates,

7 classifications, rules, and practices

8 ‘‘A rail carrier providing transportation or service

9 subject to the jurisdiction of the Panel under this part shall

10 establish reasonable—

11 ‘‘(1) rates, including divisions of joint rates, and

12 classifications for transportation and service it may

13 provide under this part; and

14 ‘‘(2) rules and practices on matters related to

15 that transportation or service.

16 ‘‘§ 10503. Authority for rail carriers to establish

17 through routes

18 ‘‘Rail carriers providing transportation subject to the

19 jurisdiction of the Panel under this part shall establish

20 through routes with each other, shall establish rates and

21 classifications applicable to those routes, and shall establish

22 rules for their operation and provide—

23 ‘‘(1) reasonable facilities for operating the

24 through route; and
15

•HR 2539 RH

1 ‘‘(2) reasonable compensation to persons entitled

2 to compensation for services related to the through

3 route.

4 ‘‘§ 10504. Authority and criteria: rates, classifications,

5 rules, and practices prescribed by Panel

6 ‘‘(a)(1) When the Panel, after a full hearing, decides

7 that a rate charged or collected by a rail carrier for trans8 portation subject to the jurisdiction of the Panel under this

9 part, or that a classification, rule, or practice of that car10 rier does or will violate this part, the Panel may prescribe

11 the maximum rate, classification, rule, or practice to be fol12 lowed. The Panel may order the carrier to stop the viola13 tion. When a rate, classification, rule, or practice is pre14 scribed under this subsection, the affected carrier may not

15 publish, charge, or collect a different rate and shall adopt

16 the classification and observe the rule or practice prescribed

17 by the Panel.

18 ‘‘(2) The Panel shall maintain and revise as necessary

19 standards and procedures for establishing revenue levels for

20 rail carriers providing transportation subject to its juris21 diction under this part that are adequate, under honest, eco22 nomical, and efficient management, to cover total operating

23 expenses, including depreciation and obsolescence, plus a

24 reasonable and economic profit or return (or both) on cap25 ital employed in the business. The Panel shall make an ade-
16

•HR 2539 RH

1 quate and continuing effort to assist those carriers in at2 taining revenue levels prescribed under this paragraph.

3 Revenue levels established under this paragraph should—

4 ‘‘(A) provide a flow of net income plus deprecia5 tion adequate to support prudent capital outlays, as6 sure the repayment of a reasonable level of debt, per7 mit the raising of needed equity capital, and cover the

8 effects of inflation; and

9 ‘‘(B) attract and retain capital in amounts ade10 quate to provide a sound transportation system in the

11 United States.

12 ‘‘(3) On the basis of the standards and procedures de13 scribed in paragraph (2), the Panel shall annually deter14 mine which rail carriers are earning adequate revenues.

15 ‘‘(b) The Panel may begin a proceeding under this sec16 tion on its own initiative or on complaint. A complaint

17 under subsection (a) of this section must be made under

18 section 11501 of this title, but the proceeding may also be

19 in extension of a complaint pending before the Panel.

20 ‘‘§ 10505. Authority: through routes, joint classifica21 tions, rates, and divisions prescribed by

22 Panel

23 ‘‘(a)(1) The Panel may, and shall when it considers

24 it desirable in the public interest, prescribe through routes,

25 joint classifications, joint rates, the division of joint rates,
17

•HR 2539 RH

1 and the conditions under which those routes must be oper2 ated, for a rail carrier providing transportation subject to

3 the jurisdiction of the Panel under this part.

4 ‘‘(2) The Panel may require a rail carrier to include

5 in a through route substantially less than the entire length

6 of its railroad and any intermediate railroad operated with

7 it under common management or control if that intermedi8 ate railroad lies between the terminals of the through route

9 only when—

10 ‘‘(A) required under sections 10541, 10542, or

11 11101 of this title;

12 ‘‘(B) inclusion of those lines would make the

13 through route unreasonably long when compared with

14 a practicable alternative through route that could be

15 established; or

16 ‘‘(C) the Panel decides that the proposed through

17 route is needed to provide adequate, and more effi18 cient or economic, transportation.

19 The Panel shall give reasonable preference, subject to this

20 subsection, to the rail carrier originating the traffic when

21 prescribing through routes.

22 ‘‘(b) The Panel shall prescribe the division of joint

23 rates to be received by a rail carrier providing transpor24 tation subject to its jurisdiction under this part when it

25 decides that a division of joint rates established by the par-
18

•HR 2539 RH

1 ticipating carriers under section 10503 of this title, or

2 under a decision of the Panel under subsection (a) of this

3 section, does or will violate section 10501 of this title.

4 ‘‘(c) If a division of a joint rate prescribed under a

5 decision of the Panel is later found to violate section 10501

6 of this title, the Panel may decide what division would have

7 been reasonable and order adjustment to be made retro8 active to the date the complaint was filed, the date the order

9 for an investigation was made, or a later date that the

10 Panel decides is justified. The Panel may make a decision

11 under this subsection effective as part of its original deci12 sion.

13 ‘‘§ 10506. Rate agreements: exemption from antitrust

14 laws

15 ‘‘(a)(1) In this subsection—

16 ‘‘(A) the term ‘affiliate’ means a person control17 ling, controlled by, or under common control or own18 ership with another person and ‘ownership’ refers to

19 equity holdings in a business entity of at least 5 per20 cent;

21 ‘‘(B) the term ‘single-line rate’ refers to a rate or

22 allowance proposed by a single rail carrier that is ap23 plicable only over its line and for which the transpor24 tation (exclusive of terminal services by switching,
19

•HR 2539 RH

1 drayage or other terminal carriers or agencies) can be

2 provided by that carrier; and

3 ‘‘(C) the term ‘practicably participates in the

4 movement’ shall have such meaning as the Panel shall

5 by regulation prescribe.

6 ‘‘(2)(A) A rail carrier providing transportation subject

7 to the jurisdiction of the Panel under this part that is a

8 party to an agreement of at least 2 rail carriers that relates

9 to rates (including charges between rail carriers and com10 pensation paid or received for the use of facilities and

11 equipment), classifications, divisions, or rules related to

12 them, or procedures for joint consideration, initiation, pub13 lication, or establishment of them, shall apply to the Panel

14 for approval of that agreement under this subsection. The

15 Panel shall approve the agreement only when it finds that

16 the making and carrying out of the agreement will further

17 the transportation policy of section 10101 of this title and

18 may require compliance with conditions necessary to make

19 the agreement further that policy as a condition of its ap20 proval. If the Panel approves the agreement, it may be made

21 and carried out under its terms and under the conditions

22 required by the Panel, and the Sherman Act (15 U.S.C.

23 1, et seq.), the Clayton Act (15 U.S.C. 12, et seq.), the Fed24 eral Trade Commission Act (15 U.S.C. 41, et seq.), sections

25 73 and 74 of the Wilson Tariff Act (15 U.S.C. 8 and 9),
20

•HR 2539 RH

1 and the Act of June 19, 1936 (15 U.S.C. 13, 13a, 13b, 21a)

2 do not apply to parties and other persons with respect to

3 making or carrying out the agreement. However, the Panel

4 may not approve or continue approval of an agreement

5 when the conditions required by it are not met or if it does

6 not receive a verified statement under subparagraph (B) of

7 this paragraph.

8 ‘‘(B) The Panel may approve an agreement under sub9 paragraph (A) of this paragraph only when the rail car10 riers applying for approval file a verified statement with

11 the Panel. Each statement must specify for each rail carrier

12 that is a party to the agreement—

13 ‘‘(i) the name of the carrier;

14 ‘‘(ii) the mailing address and telephone number

15 of its headquarter’s office; and

16 ‘‘(iii) the names of each of its affiliates and the

17 names, addresses, and affiliates of each of its officers

18 and directors and of each person, together with an af19 filiate, owning or controlling any debt, equity, or se20 curity interest in it having a value of at least

21 $1,000,000.

22 ‘‘(3)(A) An organization established or continued

23 under an agreement approved under this subsection shall

24 make a final disposition of a rule or rate docketed with
21

•HR 2539 RH

1 it by the 120th day after the proposal is docketed. Such

2 an organization may not—

3 ‘‘(i) permit a rail carrier to discuss, to partici4 pate in agreements related to, or to vote on single-line

5 rates proposed by another rail carrier, except that for

6 purposes of general rate increases and broad changes

7 in rates, classifications, rules, and practices only, if

8 the Panel finds at any time that the implementation

9 of this clause is not feasible, it may delay or suspend

10 such implementation in whole or in part;

11 ‘‘(ii) permit a rail carrier to discuss, to partici12 pate in agreements related to, or to vote on rates re13 lated to a particular interline movement unless that

14 rail carrier practicably participates in the movement;

15 or

16 ‘‘(iii) if there are interline movements over two

17 or more routes between the same end points, permit

18 a carrier to discuss, to participate in agreements re19 lated to, or to vote on rates except with a carrier

20 which forms part of a particular single route. If the

21 Panel finds at any time that the implementation of

22 this clause is not feasible, it may delay or suspend

23 such implementation in whole or in part.

24 ‘‘(B)(i) In any proceeding in which a party alleges

25 that a rail carrier voted or agreed on a rate or allowance
22

•HR 2539 RH

1 in violation of this subsection, that party has the burden

2 of showing that the vote or agreement occurred. A showing

3 of parallel behavior does not satisfy that burden by itself.

4 ‘‘(ii) In any proceeding in which it is alleged that a

5 carrier was a party to an agreement, conspiracy, or com6 bination in violation of a Federal law cited in subsection

7 (a)(2)(A) of this section or of any similar State law, proof

8 of an agreement, conspiracy, or combination may not be

9 inferred from evidence that two or more rail carriers acted

10 together with respect to an interline rate or related matter

11 and that a party to such action took similar action with

12 respect to a rate or related matter on another route or traf13 fic. In any proceeding in which such a violation is alleged,

14 evidence of a discussion or agreement between or among

15 such rail carrier and one or more other rail carriers, or

16 of any rate or other action resulting from such discussion

17 or agreement, shall not be admissible if the discussion or

18 agreement—

19 ‘‘(I) was in accordance with an agreement ap20 proved under paragraph (2) of this subsection; or

21 ‘‘(II) concerned an interline movement of the rail

22 carrier, and the discussion or agreement would not,

23 considered by itself, violate the laws referred to in the

24 first sentence of this clause.
23

•HR 2539 RH

1 In any proceeding before a jury, the court shall determine

2 whether the requirements of subclause (I) or (II) are satis3 fied before allowing the introduction of any such evidence.

4 ‘‘(C) An organization described in subparagraph (A)

5 of this paragraph shall provide that transcripts or sound

6 recordings be made of all meetings, that records of votes be

7 made, and that such transcripts or recordings and voting

8 records be submitted to the Panel and made available to

9 other Federal agencies in connection with their statutory

10 responsibilities over rate bureaus, except that such material

11 shall be kept confidential and shall not be subject to disclo12 sure under section 552 of title 5, United States Code.

13 ‘‘(4) Notwithstanding any other provision of this sub14 section, one or more rail carriers may enter into an agree15 ment, without obtaining prior Panel approval, that pro16 vides solely for compilation, publication, and other dis17 tribution of rates in effect or to become effective. The Sher18 man Act (15 U.S.C. 1 et seq.), the Clayton Act (15 U.S.C.

19 12 et seq.), the Federal Trade Commission Act (15 U.S.C.

20 41 et seq.), sections 73 and 74 of the Wilson Tariff Act (15

21 U.S.C. 8 and 9), and the Act of June 19, 1936 (15 U.S.C.

22 13, 13a, 13b, 21a) shall not apply to parties and other per23 sons with respect to making or carrying out such agreement.

24 However, the Panel may, upon application or on its own

25 initiative, investigate whether the parties to such an agree-
24

•HR 2539 RH

1 ment have exceeded its scope, and upon a finding that they

2 have, the Panel may issue such orders as are necessary, in3 cluding an order dissolving the agreement, to ensure that

4 actions taken pursuant to the agreement are limited as pro5 vided in this paragraph.

6 ‘‘(5)(A) Whenever two or more shippers enter into an

7 agreement to discuss among themselves that relates to the

8 amount of compensation such shippers propose to be paid

9 by rail carriers providing transportation subject to the ju10 risdiction of the Panel under this part, for use by such rail

11 carriers of rolling stock owned or leased by such shippers,

12 the shippers shall apply to the Panel for approval of that

13 agreement under this paragraph. The Panel shall approve

14 the agreement only when it finds that the making and car15 rying out of the agreement will further the transportation

16 policy set forth in section 10101 of this title and may re17 quire compliance with conditions necessary to make the

18 agreement further that policy as a condition of approval.

19 If the Panel approves the agreement, it may be made and

20 carried out under its terms and under the terms required

21 by the Panel, and the antitrust laws set forth in paragraph

22 (2) of this subsection do not apply to parties and other per23 sons with respect to making or carrying out the agreement.

24 The Panel shall approve or disapprove an agreement under
25

•HR 2539 RH

1 this paragraph within one year after the date application

2 for approval of such agreement is made.

3 ‘‘(B) If the Panel approves an agreement described in

4 subparagraph (A) of this paragraph and the shippers enter5 ing into such agreement and the rail carriers proposing to

6 use rolling stock owned or leased by such shippers, under

7 payment by such carriers or under a published allowance,

8 are unable to agree upon the amount of compensation to

9 be paid for the use of such rolling stock, any party directly

10 involved in the negotiations may require that the matter

11 be settled by submitting the issues in dispute to the Panel.

12 The Panel shall render a binding decision, based upon a

13 standard of reasonableness and after taking into consider14 ation any past precedents on the subject matter of the nego15 tiations, no later than 90 days after the date of the submis16 sion of the dispute to the Panel.

17 ‘‘(C) Nothing in this paragraph shall be construed to

18 change the law in effect prior to the effective date of the

19 Staggers Rail Act of 1980 with respect to the obligation of

20 rail carriers to utilize rolling stock owned or leased by ship21 pers.

22 ‘‘(b) The Panel may require an organization estab23 lished or continued under an agreement approved under

24 this section to maintain records and submit reports. The

25 Panel may inspect a record maintained under this section.
26

•HR 2539 RH

1 ‘‘(c) The Panel may review an agreement approved

2 under subsection (a) of this section and shall change the

3 conditions of approval or terminate it when necessary to

4 comply with the public interest and subsection (a). The

5 Panel shall postpone the effective date of a change of an

6 agreement under this subsection for whatever period it de7 termines to be reasonably necessary to avoid unreasonable

8 hardship.

9 ‘‘(d) The Panel may begin a proceeding under this sec10 tion on its own initiative or on application. Action of the

11 Panel under this section—

12 ‘‘(1) approving an agreement;

13 ‘‘(2) denying, ending, or changing approval;

14 ‘‘(3) prescribing the conditions on which ap15 proval is granted; or

16 ‘‘(4) changing those conditions,

17 has effect only as related to application of the antitrust laws

18 referred to in subsection (a) of this section.

19 ‘‘(e) The Panel shall review each agreement approved

20 under subsection (a) of this section periodically, but at least

21 once every 3 years—

22 ‘‘(1) to determine whether the agreement or an

23 organization established or continued under one of

24 those agreements still complies with the requirements

25 of that subsection and the public interest; and
27

•HR 2539 RH

1 ‘‘(2) to evaluate the success and effect of that

2 agreement or organization on the consuming public

3 and the national rail freight transportation system.

4 If the Panel finds that an agreement or organization does

5 not conform to the requirements of that subsection, it shall

6 end or suspend its approval.

7 ‘‘(f)(1) The Federal Trade Commission, in consulta8 tion with the Antitrust Division of the Department of Jus9 tice, shall prepare periodically an assessment of, and shall

10 report to the Panel on—

11 ‘‘(A) possible anticompetitive features of—

12 ‘‘(i) agreements approved or submitted for

13 approval under subsection (a) of this section;

14 and

15 ‘‘(ii) an organization operating under those

16 agreements; and

17 ‘‘(B) possible ways to alleviate or end an anti18 competitive feature, effect, or aspect in a manner that

19 will further the goals of this part and of the transpor20 tation policy of section 10101 of this title.

21 ‘‘(2) Reports received by the Panel under this sub22 section shall be published and made available to the public

23 under section 552(a) of title 5.
28

•HR 2539 RH

1 ‘‘§ 10507. Determination of market dominance in rail

2 rate proceedings

3 ‘‘(a) In this section, ‘market dominance’ means an ab4 sence of effective competition from other rail carriers or

5 modes of transportation for the transportation to which a

6 rate applies.

7 ‘‘(b) When a rate for transportation by a rail carrier

8 providing transportation subject to the jurisdiction of the

9 Panel under this part is challenged as being unreasonably

10 high, the Panel shall determine, within 90 days after the

11 start of a proceeding, whether the rail carrier proposing the

12 rate has market dominance over the transportation to which

13 the rate applies. The Panel may make that determination

14 on its own initiative or on complaint. A finding by the

15 Panel that the rail carrier does not have market dominance

16 is determinative in a proceeding under this part related

17 to that rate or transportation unless changed or set aside

18 by the Panel or set aside by a court of competent jurisdic19 tion.

20 ‘‘(c) When the Panel finds in any proceeding that a

21 rail carrier proposing or defending a rate for transpor22 tation has market dominance over the transportation to

23 which the rate applies, it may then determine that rate to

24 be unreasonable if it exceeds a reasonable maximum for that

25 transportation. However, a finding of market dominance
29

•HR 2539 RH

1 does not establish a presumption that the proposed rate ex2 ceeds a reasonable maximum.

3 ‘‘(d)(1)(A) In making a determination under this sec4 tion, the Panel shall find that the rail carrier establishing

5 the challenged rate does not have market dominance over

6 the transportation to which the rate applies if such rail car7 rier proves that the rate charged results in a revenue-vari8 able cost percentage for such transportation that is less than

9 180 percent.

10 ‘‘(B) For purposes of this section, variable costs for a

11 Class I rail carrier shall be determined only by using such

12 carrier’s unadjusted costs, calculated using the Panel’s Rail

13 Form A cost finding methodology (or an alternative meth14 odology adopted by the Panel in lieu thereof) and indexed

15 quarterly to account for current wage and price levels in

16 the region in which the carrier operates, with adjustments

17 specified by the Panel. A rail carrier may meet its burden

18 of proof under this subsection by establishing its variable

19 costs in accordance with this paragraph, but a shipper may

20 rebut that showing by evidence of such type, and in accord21 ance with such burden of proof, as the Panel shall prescribe.

22 ‘‘(2) A finding by the Panel that a rate charged by

23 a rail carrier results in a revenue-variable cost percentage

24 for the transportation to which the rate applies that is equal
30

•HR 2539 RH

1 to or greater than 180 percent does not establish a presump2 tion that—

3 ‘‘(A) such rail carrier has or does not have mar4 ket dominance over such transportation; or

5 ‘‘(B) the proposed rate exceeds or does not exceed

6 a reasonable maximum.

7 ‘‘§ 10508. Inflation-based rate increases

8 ‘‘(a) The Panel may, on a quarterly basis and consist9 ent with the rail transportation policy set forth in section

10 10101 of this title, prescribe a percentage rate index for rail

11 carriers in order to compensate for inflationary cost in12 creases. Such percentage rate index may be applicable on

13 an industry-wide, territory-wide, or carrier-by-carrier

14 basis.

15 ‘‘(b) For purposes of this section, a percentage rate

16 index may permit rate increases within a specified range

17 to allow carriers to recover a total revenue increase specified

18 by the Panel as necessary to compensate for inflationary

19 cost increases.

20 ‘‘(c) The Panel shall, as often as practicable, but in

21 no event less often than quarterly, publish a rail cost adjust22 ment factor which shall be a fraction, the numerator of

23 which is the latest published Index of Railroad Costs (which

24 index shall be compiled or verified by the Panel, with ap25 propriate adjustments to reflect the changing composition
31

•HR 2539 RH

1 of railroad costs, including the quality and mix of material

2 and labor) and the denominator of which is the same index

3 for the fourth quarter of every fifth year.

4 ‘‘§ 10509. Contracts

5 ‘‘(a) One or more rail carriers providing transpor6 tation subject to the jurisdiction of the Panel under this

7 part may enter into a contract with one or more purchasers

8 of rail services to provide specified services under specified

9 rates and conditions.

10 ‘‘(b) A party to a contract entered into under this sec11 tion shall have no duty in connection with services provided

12 under such contract other than those duties specified by the

13 terms of the contract.

14 ‘‘(c)(1) A contract that is authorized by this section,

15 and transportation under such contract, shall not be subject

16 to this part, and may not be subsequently challenged before

17 the Panel or in any court on the grounds that such contract

18 violates a provision of this part.

19 ‘‘(2) The exclusive remedy for any alleged breach of

20 a contract entered into under this section shall be an action

21 in an appropriate State court or United States district

22 court, unless the parties otherwise agree.

23 ‘‘(d) Documents, papers, and records (and any copies

24 thereof) relating to a contract described in subsection (a)
32

•HR 2539 RH

1 shall not be subject to the mandatory disclosure require2 ments of section 552 of title 5.

3 ‘‘(e) Any lawful contract between a rail carrier and

4 one or more purchasers of rail service that was in effect

5 on the effective date of the Staggers Rail Act of 1980 shall

6 be considered a contract authorized by this section.

7 ‘‘SUBCHAPTER II—SPECIAL CIRCUMSTANCES

8 ‘‘§ 10521. Government traffic

9 ‘‘A rail carrier providing transportation or service for

10 the United States Government may transport property for

11 the United States Government without charge or at a rate

12 reduced from the applicable commercial rate. Section 3709

13 of the Revised Statutes (41 U.S.C. 5) does not apply when

14 transportation for the United States Government can be ob15 tained from a rail carrier lawfully operating in the area

16 where the transportation would be provided.

17 ‘‘§ 10522. Emergency rates

18 ‘‘(a) The Panel may authorize a rail carrier providing

19 transportation or service subject to its jurisdiction under

20 this part to give reduced rates for service and transpor21 tation of property to or from an area in the United States

22 to provide relief during emergencies. When the Panel takes

23 action under this subsection, it must—

24 ‘‘(1) define the area of the United States in

25 which the reduced rates will apply;
33

•HR 2539 RH

1 ‘‘(2) specify the period during which the reduced

2 rates are to be in effect; and

3 ‘‘(3) define the class of persons entitled to the re4 duced rates.

5 ‘‘(b) The Panel may specify those persons entitled to

6 reduced rates by reference to those persons designated as

7 being in need of relief by the United States Government

8 or by a State government authorized to assist in providing

9 relief during the emergency. The Panel may act under this

10 section without regard to subchapter II of chapter 5 of title

11 5.

12 ‘‘§ 10523. Car utilization

13 ‘‘In order to encourage more efficient use of freight

14 cars, notwithstanding any other provision of this part, rail

15 carriers shall be permitted to establish premium charges for

16 special services or special levels of services not otherwise ap17 plicable to the movement. The Panel shall facilitate develop18 ment of such charges so as to increase the utilization of

19 equipment.

20 ‘‘SUBCHAPTER III—LIMITATIONS

21 ‘‘§ 10541. Prohibitions against discrimination by rail

22 carriers

23 ‘‘(a)(1) A rail carrier providing transportation or

24 service subject to the jurisdiction of the Panel under this
34

•HR 2539 RH

1 part may not subject a person, place, port, or type of traffic

2 to unreasonable discrimination.

3 ‘‘(2) For purposes of this section, a rail carrier engages

4 in unreasonable discrimination when it charges or receives

5 from a person a different compensation for a service ren6 dered, or to be rendered, in transportation the rail carrier

7 may perform under this part than it charges or receives

8 from another person for performing a like and contempora9 neous service in the transportation of a like kind of traffic

10 under substantially similar circumstances.

11 ‘‘(b) This section shall not apply to—

12 ‘‘(1) contracts described in section 10509 of this

13 title;

14 ‘‘(2) rail rates applicable to different routes; or

15 ‘‘(3) discrimination against the traffic of another

16 carrier providing transportation by any mode.

17 ‘‘(c) Differences between rates, classifications, rules,

18 and practices of rail carriers do not constitute a violation

19 of this section if such differences result from different serv20 ices provided by rail carriers.

21 ‘‘§ 10542. Facilities for interchange of traffic

22 ‘‘A rail carrier providing transportation subject to the

23 jurisdiction of the Panel under this part shall provide rea24 sonable, proper, and equal facilities that are within its

25 power to provide for the interchange of traffic between, and
35

•HR 2539 RH

1 for the receiving, forwarding, and delivering of passengers

2 and property to and from, its respective line and a connect3 ing line of another rail carrier.

4 ‘‘§ 10543. Continuous carriage of freight

5 ‘‘A rail carrier providing transportation or service

6 subject to the jurisdiction of the Panel under this part may

7 not enter a combination or arrangement to prevent the car8 riage of freight from being continuous from the place of

9 shipment to the place of destination whether by change of

10 time schedule, carriage in different cars, or by other means.

11 The carriage of freight by those rail carriers is considered

12 to be a continuous carriage from the place of shipment to

13 the place of destination when a break of bulk, stoppage, or

14 interruption is not made in good faith for a necessary pur15 pose, and with the intent of avoiding or unnecessarily inter16 rupting the continuous carriage or of evading this part.

17 ‘‘§ 10544. Transportation services or facilities fur18 nished by shipper

19 ‘‘A rail carrier providing transportation or service

20 subject to the jurisdiction of the Panel under this part may

21 publish a charge or allowance for transportation or service

22 for property when the owner of the property, directly or

23 indirectly, furnishes a service related to or an instrumental24 ity used in the transportation or service. The Panel may

25 prescribe the maximum reasonable charge or allowance a
36

•HR 2539 RH

1 rail carrier subject to its jurisdiction may pay for a service

2 or instrumentality furnished under this section. The Panel

3 may begin a proceeding under this section on its own ini4 tiative or on application.

5 ‘‘§ 10545. Demurrage charges

6 ‘‘A rail carrier providing transportation subject to the

7 jurisdiction of the Panel under this part shall compute de8 murrage charges, and establish rules related to those

9 charges, in a way that fulfills the national needs related

10 to—

11 ‘‘(1) freight car use and distribution; and

12 ‘‘(2) maintenance of an adequate supply of

13 freight cars to be available for transportation of prop14 erty.

15 ‘‘§ 10546. Designation of certain routes by shippers

16 ‘‘(a)(1) When a person delivers property to a rail car17 rier for transportation subject to the jurisdiction of the

18 Panel under this part, the person may direct the rail car19 rier to transport the property over an established through

20 route. When competing rail lines constitute a part of the

21 route, the person shipping the property may designate the

22 lines over which the property will be transported. The des23 ignation must be in writing. A rail carrier may be directed

24 to transport property over a particular through route

25 when—
37

•HR 2539 RH

1 ‘‘(A) there are at least 2 through routes over

2 which the property could be transported;

3 ‘‘(B) a through rate has been established for

4 transportation over each of those through routes; and

5 ‘‘(C) the rail carrier is a party to those routes

6 and rates.

7 ‘‘(2) A rail carrier directed to route property trans8 ported under paragraph (1) of this subsection must issue

9 a through bill of lading containing the routing instructions

10 and transport the property according to the instructions.

11 When the property is delivered to a connecting rail carrier,

12 that rail carrier must also receive and transport it accord13 ing to the routing instructions and deliver it to the next

14 succeeding rail carrier or consignee according to the in15 structions.

16 ‘‘(b) The Panel may prescribe exceptions to the author17 ity of a person to direct the movement of traffic under sub18 section (a) of this section.

19 ‘‘CHAPTER 107—LICENSING

‘‘Sec.

‘‘10701. Authorizing construction and operation of railroad lines.

‘‘10702. Finance and construction transactions by Class II and Class III rail carriers and noncarriers.

‘‘10703. Filing and procedure for notice of intent to abandon or discontinue.

‘‘10704. Offers to purchase to avoid abandonment and discontinuance.

‘‘10705. Offering abandoned rail properties for sale for public purposes.

‘‘10706. Exception.
38

•HR 2539 RH

1 ‘‘§ 10701. Authorizing construction and operation of

2 railroad lines

3 ‘‘(a) A rail carrier providing transportation subject to

4 the jurisdiction of the Panel under this part may—

5 ‘‘(1) construct an extension to any of its railroad

6 lines;

7 ‘‘(2) construct an additional railroad line;

8 ‘‘(3) acquire or operate an extended or addi9 tional railroad line; or

10 ‘‘(4) provide transportation over, or by means of,

11 an extended or additional railroad line;

12 only if the Panel issues a certificate authorizing such activ13 ity under subsection (c).

14 ‘‘(b) A proceeding to grant authority under subsection

15 (a) of this section begins when an application is filed. On

16 receiving the application, the Panel shall give reasonable

17 public notice of the beginning of such proceeding.

18 ‘‘(c) The Panel shall issue a certificate authorizing ac19 tivities for which such authority is requested in an applica20 tion filed under subsection (b) unless the Panel finds that

21 such activities are inconsistent with the public convenience

22 and necessity. Such certificate may approve the application

23 as filed, or with modifications, and may require compliance

24 with conditions the Panel finds necessary in the public in25 terest.
39

•HR 2539 RH

1 ‘‘(d)(1) When a certificate has been issued by the Panel

2 under this section or section 10702 authorizing the con3 struction or extension of a railroad line, no other rail car4 rier may block any construction or extension authorized by

5 such certificate by refusing to permit the carrier to cross

6 its property if—

7 ‘‘(A) the construction does not unreasonably

8 interfere with the operation of the crossed line;

9 ‘‘(B) the operation does not materially interfere

10 with the operation of the crossed line; and

11 ‘‘(C) the owner of the crossing line compensates

12 the owner of the crossed line.

13 ‘‘(2) If the parties are unable to agree on the terms

14 of operation or the amount of payment for purposes of

15 paragraph (1) of this subsection, either party may submit

16 the matters in dispute to the Panel for determination. The

17 Panel shall make a determination under this paragraph

18 within 90 days after the dispute is submitted for determina19 tion.

20 ‘‘(e) The Panel may require any rail carrier proposing

21 both to construct and operate a new railroad line pursuant

22 to this section to provide a fair and equitable arrangement

23 for the protection of the interests of railroad employees who

24 may be affected thereby no less protective of and beneficial
40

•HR 2539 RH

1 to the interests of such employees than those established pur2 suant to section 11126 of this title.

3 ‘‘(f) Subsections (a), (b), (c), and (e) of this section

4 shall only apply to Class I rail carriers.

5 ‘‘§ 10702. Finance and construction transactions by

6 Class II and Class III rail carriers and

7 noncarriers

8 ‘‘(a)(1) A Class II or Class III (as defined by the

9 Panel) rail carrier providing transportation subject to the

10 jurisdiction of the Panel under this part, or a noncarrier,

11 may—

12 ‘‘(A) construct an extension of any of its rail13 road lines;

14 ‘‘(B) construct an additional railroad line; or

15 ‘‘(C) acquire or operate a railroad line,

16 only if the Panel issues a certificate authorizing such activ17 ity under subsection (c).

18 ‘‘(2) A certificate issued by the Panel under subsection

19 (c) shall also be required for—

20 ‘‘(A) a Class II or Class III rail carrier provid21 ing transportation subject to the jurisdiction of the

22 Panel under this part, or a noncarrier to provide

23 transportation over, or by means of, a railroad line

24 by trackage rights, lease, or joint ownership or joint
41

•HR 2539 RH

1 use of the railroad line (and terminals incidental

2 thereto);

3 ‘‘(B) a consolidation or merger of the properties

4 or franchises of at least 2 Class II or Class III rail

5 carriers into one corporation for the ownership, man6 agement, and operation of the previously separately

7 owned properties;

8 ‘‘(C) the acquisition of control of a Class II or

9 Class III rail carrier by one or more Class II or Class

10 III rail carriers;

11 ‘‘(D) the acquisition of control of at least 2 Class

12 II or Class III rail carriers by a person that is not

13 a rail carrier; and

14 ‘‘(E) the acquisition of control of a Class II or

15 Class III rail carrier by a person that is not a rail

16 carrier but that controls at least one Class II or Class

17 III rail carrier.

18 ‘‘(b) A proceeding to grant authority under subsection

19 (a) begins when an application is filed. On receiving the

20 application, the Panel shall give reasonable public notice

21 of the beginning of such proceeding.

22 ‘‘(c) The Panel shall issue a certificate authorizing ac23 tivities for which such authority is requested in an applica24 tion filed under subsection (b) unless the Panel finds that
42

•HR 2539 RH

1 such activities are inconsistent with the public convenience

2 and necessity because—

3 ‘‘(1) as a result of the transaction, there is likely

4 to be substantial lessening of competition, creation of

5 a monopoly, or restraint of trade in freight surface

6 transportation in any region of the United States;

7 and

8 ‘‘(2) the anticompetitive effects of the transaction

9 outweigh the public interest in meeting significant

10 transportation needs.

11 Such certificate may approve the application as filed, or

12 with modifications, and may require compliance with con13 ditions the Panel finds necessary in the public interest.

14 ‘‘(d) When a person is involved in a transaction for

15 which approval is sought under this section, the Panel shall

16 require such person to protect the interest of affected em17 ployees to an extent equal to the protection required under

18 sections 2 through 5 of the Worker Adjustment and Retrain19 ing Notification Act (29 U.S.C. 2101–2104).

20 ‘‘(e) The authority of the Panel over transactions de21 scribed in subsection (a)(2) is exclusive. A rail carrier or

22 corporation participating in or resulting from such a trans23 action may carry out the transaction, own and operate

24 property, and exercise control or franchises acquired

25 through the transaction without the approval of a State au-
43

•HR 2539 RH

1 thority. A rail carrier, corporation, or person participating

2 in that transaction is exempt from the antitrust laws and

3 from all other law, including State and municipal law, as

4 necessary to let that rail carrier, corporation, or person

5 carry out the transaction, hold, maintain, and operate

6 property and exercise control or franchises acquired through

7 the transaction.

8 ‘‘§ 10703. Filing and procedure for notice of intent to

9 abandon or discontinue

10 ‘‘(a)(1) A rail carrier providing transportation subject

11 to the jurisdiction of the Panel under this part who intends

12 to—

13 ‘‘(A) abandon any part of its railroad lines; or

14 ‘‘(B) discontinue the operation of all rail trans15 portation over any part of its railroad lines,

16 must file a notice of intent relating thereto with the Panel.

17 An abandonment or discontinuance may be carried out

18 only as authorized under this chapter.

19 ‘‘(2) When a rail carrier providing transportation sub20 ject to the jurisdiction of the Panel under this part files

21 a notice of intent, the notice shall include—

22 ‘‘(A) an accurate and understandable summary

23 of the rail carrier’s reasons for the proposed abandon24 ment or discontinuance;
44

•HR 2539 RH

1 ‘‘(B) a statement indicating that each interested

2 person is entitled to make recommendations to the

3 Panel on the future of the rail line; and

4 ‘‘(C)(i) a statement that the line is available for

5 sale in accordance with section 10704 of this title, (ii)

6 a statement that the rail carrier will promptly pro7 vide to each interested party an estimate of the mini8 mum purchase price, calculated in accordance with

9 section 10704 of this title and (iii) the name and

10 business address of the person who is authorized to

11 discuss sale terms for the rail carrier.

12 ‘‘(3) The rail carrier shall—

13 ‘‘(A) send by certified mail a copy of the notice

14 of intent to the chief executive officer of each State

15 that would be directly affected by the proposed aban16 donment or discontinuance;

17 ‘‘(B) post a copy of the notice in each terminal

18 and station on each portion of a railroad line pro19 posed to be abandoned or over which all transpor20 tation is to be discontinued;

21 ‘‘(C) publish a copy of the notice for 3 consecu22 tive weeks in a newspaper of general circulation in

23 each county in which each such portion is located;

24 ‘‘(D) mail a copy of the notice, to the extent

25 practicable, to all shippers that have made significant
45

•HR 2539 RH

1 use (as designated by the Panel) of the railroad line

2 during the 12 months preceding the filing of the no3 tice of intent; and

4 ‘‘(E) attach to the notice filed with the Panel an

5 affidavit certifying the manner in which subpara6 graphs (A) through (D) of this paragraph have been

7 satisfied, and certifying that subparagraphs (A)

8 through (D) have been satisfied within the most recent

9 30 days prior to the date the notice of intent is filed.

10 ‘‘(b)(1) Except as provided in paragraph (2) or sub11 section (d), abandonment and discontinuance may occur as

12 provided in section 10704.

13 ‘‘(2) If, after considering the scope of an abandonment

14 or discontinuance proposed in a notice of intent filed under

15 this section, the Panel considers it necessary, to improve

16 the viability of the lines included within the proposed aban17 donment or discontinuance for possible sale or transfer and

18 continued operation, and to enhance competitive alter19 natives in the event of such sale or transfer, the Panel may

20 require the filing of a new notice of intent which enlarges

21 the scope of the proposed abandonment or discontinuance

22 or provides for appropriate trackage rights.

23 ‘‘(3) The Panel shall require as a condition of any

24 abandonment or discontinuance under this section provi25 sions to protect the interests of employees. The provisions
46

•HR 2539 RH

1 shall be at least as beneficial to those interests as the provi2 sions established under sections 11126 and 24706(c) of this

3 title.

4 ‘‘(c)(1) In this subsection, the term ‘potentially subject

5 to abandonment’ has the meaning given the term in regula6 tions of the Panel. The regulations may include standards

7 that vary by region of the United States and by railroad

8 or group of railroads.

9 ‘‘(2) Each rail carrier shall maintain a complete dia10 gram of the transportation system operated, directly or in11 directly, by the rail carrier. The rail carrier shall submit

12 to the Panel and publish amendments to its diagram that

13 are necessary to maintain the accuracy of the diagram. The

14 diagram shall—

15 ‘‘(A) include a detailed description of each of its

16 railroad lines potentially subject to abandonment;

17 and

18 ‘‘(B) identify each railroad line for which the

19 rail carrier plans to file a notice of intent to abandon

20 or discontinue under subsection (a) of this section.

21 ‘‘(d) The Panel may disapprove a proposed abandon22 ment or discontinuance if the Panel finds it inconsistent

23 with the public convenience and necessity.
47

•HR 2539 RH

1 ‘‘§ 10704. Offers to purchase to avoid abandonment

2 and discontinuance

3 ‘‘(a) Any rail carrier which has filed a notice of intent

4 to abandon or discontinue shall provide promptly to a

5 party considering an offer to purchase and shall provide

6 concurrently to the Panel—

7 ‘‘(1) a statement of the minimum purchase price

8 required;

9 ‘‘(2) its most recent reports on the physical con10 dition of that part of the railroad line involved in the

11 proposed abandonment or discontinuance;

12 ‘‘(3) traffic, revenue, and other data necessary to

13 determine the commercial potential of the railroad

14 line; and

15 ‘‘(4) any other information that the Panel con16 siders necessary to allow a potential offeror to cal17 culate an adequate purchase offer.

18 ‘‘(b) Within 6 months after a notice of intent is filed

19 under section 10703, any person may offer to purchase the

20 railroad line that is the subject of such notice of intent.

21 Such offer shall be filed concurrently with the Panel. If the

22 offer to purchase is less than the minimum purchase price

23 stated pursuant to subsection (a)(1), the offer shall explain

24 the basis of the disparity, and the manner in which the

25 offer is calculated.
48

•HR 2539 RH

1 ‘‘(c)(1) Unless the Panel, within 15 days after the expi2 ration of the 6-month period described in subsection (b),

3 finds that one or more financially responsible persons (in4 cluding a governmental authority) have offered to purchase

5 that part of the railroad line to be abandoned or over which

6 all rail transportation is to be discontinued, abandonment

7 or discontinuance may be carried out in accordance with

8 section 10703.

9 ‘‘(2) If the Panel finds that such an offer or offers to

10 purchase have been made within such period, abandonment

11 or discontinuance shall be postponed until—

12 ‘‘(A) the carrier and a financially responsible

13 person have reached agreement on a transaction for

14 sale of the line; or

15 ‘‘(B) the conditions and amount of compensation

16 are established under subsection (e).

17 ‘‘(d) Except as provided in subsection (e)(3), if the rail

18 carrier and a financially responsible person (including a

19 governmental authority) fail to agree on the amount or

20 terms of the purchase, either party may, within 30 days

21 after the offer is made, request that the Panel establish the

22 conditions and amount of compensation.

23 ‘‘(e)(1) Whenever the Panel is requested to establish the

24 conditions and amount of compensation under this sec25 tion—
49

•HR 2539 RH

1 ‘‘(A) the Panel shall render its decision within

2 30 days;

3 ‘‘(B) the Panel shall determine the price and

4 other terms of sale, except that in no case shall the

5 Panel set a price which is below the fair market value

6 of the line (including, unless otherwise mutually

7 agreed, all facilities on the line or portion necessary

8 to provide effective transportation services).

9 ‘‘(2) The decision of the Panel shall be binding on both

10 parties, except that the person who has offered to purchase

11 the line may withdraw his offer within 10 days of the Pan12 el’s decision. In such a case, the abandonment or dis13 continuance may be carried out immediately, unless other

14 offers are being considered pursuant to paragraph (3) of

15 this subsection.

16 ‘‘(3) If a rail carrier receives more than one offer to

17 purchase, it shall select the offeror with whom it wishes to

18 transact business, and complete the sale agreement, or re19 quest that the Panel establish the conditions and amount

20 of compensation before the 40th day after the expiration of

21 the 6-month period described in subsection (b). If no agree22 ment on sale is reached within such 40-day period and the

23 Panel has not been requested to establish the conditions and

24 amount of compensation, any other offeror whose offer was

25 made within the 6-month period described in subsection (b)
50

•HR 2539 RH

1 may request that the Panel establish the conditions and

2 amount of compensation. If the Panel has established the

3 conditions and amount of compensation, and the original

4 offer has been withdrawn, any other offeror whose offer was

5 made within the 6-month period described in subsection (b)

6 may accept the Panel’s decision within 20 days after such

7 decision, and the Panel shall require the carrier to enter

8 into a sale agreement with such offeror, if such sale agree9 ment incorporates the Panel’s decision.

10 ‘‘(4) No purchaser of a line or portion of line sold

11 under this section may transfer or discontinue service on

12 such line prior to the end of the second year after con13 summation of the sale, nor may such purchaser transfer

14 such line, except to the rail carrier from whom it was pur15 chased, prior to the end of the fifth year after consummation

16 of the sale.

17 ‘‘(f) Upon abandonment of a railroad line under this

18 section, the obligation of the rail carrier abandoning the

19 line to provide transportation on that line, as required by

20 section 10901(a), is extinguished.

21 ‘‘§ 10705. Offering abandoned rail properties for sale

22 for public purposes

23 ‘‘When a rail carrier files a notice of intent to abandon

24 or discontinue under section 10703, the Panel shall find

25 whether the rail properties that are involved in the proposed
51

•HR 2539 RH

1 abandonment or discontinuance are appropriate for use for

2 public purposes, including highways, other forms of mass

3 transportation, conservation, energy production or trans4 mission, or recreation. If the Panel finds that the rail prop5 erties proposed to be abandoned are appropriate for public

6 purposes and not required for continued rail operations, the

7 properties may be sold, leased, exchanged, or otherwise dis8 posed of only under conditions provided in the order of the

9 Panel. The conditions may include a prohibition on any

10 such disposal for a period of not more than 180 days after

11 the effective date of the order, unless the properties have first

12 been offered, on reasonable terms, for sale for public pur13 poses.

14 ‘‘§ 10706. Exception

15 ‘‘Notwithstanding section 10701 and subchapter II of

16 chapter 111 of this title, and without the approval of the

17 Panel, a rail carrier providing transportation subject to the

18 jurisdiction of the Panel under this part may enter into

19 arrangements for the joint ownership or joint use of spur,

20 industrial, team, switching, or side tracks.

21 ‘‘CHAPTER 109—OPERATIONS

‘‘SUBCHAPTER I—GENERAL REQUIREMENTS

‘‘Sec.

‘‘10901. Providing transportation, service, and rates.

‘‘10902. Use of terminal facilities.

‘‘10903. Switch connections and tracks.

‘‘SUBCHAPTER II—CAR SERVICE

‘‘10921. Criteria.
52

•HR 2539 RH

‘‘10922. Compensation and practice.

‘‘10923. Rerouting traffic on failure of rail carrier to serve the public.

‘‘10924. War emergencies; embargoes imposed by carriers.

‘‘SUBCHAPTER III—REPORTS AND RECORDS

‘‘10941. Definitions.

‘‘10942. Uniform accounting system.

‘‘10943. Depreciation charges.

‘‘10944. Records: form; inspection; preservation.

‘‘10945. Reports by rail carriers, lessors, and associations.

‘‘SUBCHAPTER IV—RAILROAD COST ACCOUNTING

‘‘10961. Implementation of cost accounting principles.

‘‘10962. Rail carrier cost accounting system.

‘‘10963. Cost availability.

‘‘10964. Accounting and cost reporting.

1 ‘‘SUBCHAPTER I—GENERAL REQUIREMENTS

2 ‘‘§ 10901. Providing transportation, service, and rates

3 ‘‘(a) A rail carrier providing transportation or service

4 subject to the jurisdiction of the Panel under this part shall

5 provide the transportation or service on reasonable request.

6 A rail carrier shall not be found to have violated this section

7 because it fulfills its reasonable commitments under con8 tracts authorized under section 10509 of this title before re9 sponding to reasonable requests for service.

10 ‘‘(b) A rail carrier shall also provide to any person,

11 on request, rates and other service terms. The response by

12 a rail carrier to a request for rates and other service terms

13 shall be—

14 ‘‘(1) in writing and forwarded to the requesting

15 person promptly after receipt of the request; or

16 ‘‘(2) promptly made available in electronic form.
53

•HR 2539 RH

1 ‘‘(c) A rail carrier may not increase any common car2 rier rates or change any common carrier service terms un3 less written notice is provided in accordance with subsection

4 (d) to—

5 ‘‘(1) any person who has requested such rates or

6 terms under subsection (b); and

7 ‘‘(2) any person who has made arrangements

8 with the carrier for a shipment that would be subject

9 to such increased rates or changed terms.

10 ‘‘(d) The Panel shall, by regulation, establish rules to

11 implement this section, including appropriate periods of

12 notice.

13 ‘‘§ 10902. Use of terminal facilities

14 ‘‘(a) The Panel may require terminal facilities, includ15 ing main-line tracks for a reasonable distance outside of

16 a terminal, owned by a rail carrier providing transpor17 tation subject to the jurisdiction of the Panel under this

18 part, to be used by another rail carrier if the Panel finds

19 that use to be practicable and in the public interest without

20 substantially impairing the ability of the rail carrier own21 ing the facilities or entitled to use the facilities to handle

22 its own business. The rail carriers are responsible for estab23 lishing the conditions and compensation for use of the fa24 cilities. However, if the rail carriers cannot agree, the Panel

25 may establish conditions and compensation for use of the
54

•HR 2539 RH

1 facilities under the principle controlling compensation in

2 condemnation proceedings. The compensation shall be paid

3 or adequately secured before a rail carrier may begin to

4 use the facilities of another rail carrier under this section.

5 ‘‘(b) A rail carrier whose terminal facilities are re6 quired to be used by another rail carrier under this section

7 is entitled to recover damages from the other rail carrier

8 for injuries sustained as the result of compliance with the

9 requirement or for compensation for the use, or both as ap10 propriate, in a civil action, if it is not satisfied with the

11 conditions for use of the facilities or if the amount of the

12 compensation is not paid promptly.

13 ‘‘(c)(1) The Panel may require rail carriers to enter

14 into reciprocal switching agreements, where it finds such

15 agreements to be practicable and in the public interest, or

16 where such agreements are necessary to provide competitive

17 rail service. The rail carriers entering into such an agree18 ment shall establish the conditions and compensation appli19 cable to such agreement, but, if the rail carriers cannot

20 agree upon such conditions and compensation within a rea21 sonable period of time, the Panel may establish such condi22 tions and compensation.

23 ‘‘(2) The Panel may require reciprocal switching

24 agreements entered into by rail carriers pursuant to this
55

•HR 2539 RH

1 subsection to contain provisions for the protection of the in2 terests of employees affected thereby.

3 ‘‘(d) The Panel shall complete any proceeding under

4 subsection (a) or (b) within 180 days after the filing of the

5 request for relief.

6 ‘‘§ 10903. Switch connections and tracks

7 ‘‘(a) On application of the owner of a lateral branch

8 line of railroad, or of a shipper tendering interstate traffic

9 for transportation, a rail carrier providing transportation

10 subject to the jurisdiction of the Panel under this part shall

11 construct, maintain, and operate, on reasonable conditions,

12 a switch connection to connect that branch line or private

13 side track with its railroad and shall furnish cars to move

14 that traffic to the best of its ability without discrimination

15 in favor of or against the shipper when the connection—

16 ‘‘(1) is reasonably practicable;

17 ‘‘(2) can be made safely; and

18 ‘‘(3) will furnish sufficient business to justify its

19 construction and maintenance.

20 ‘‘(b) If a rail carrier fails to install and operate a

21 switch connection after application is made under sub22 section (a) of this section, the owner of the lateral branch

23 line of railroad or the shipper may file a complaint with

24 the Panel under section 11501 of this title. The Panel shall

25 investigate the complaint and decide the safety, practicabil-
56

•HR 2539 RH

1 ity, justification, and compensation to be paid for the con2 nection. The Panel may direct the rail carrier to comply

3 with subsection (a) of this section only after a full hearing.

4 ‘‘SUBCHAPTER II—CAR SERVICE

5 ‘‘§ 10921. Criteria

6 ‘‘(a)(1) A rail carrier providing transportation subject

7 to the jurisdiction of the Panel under this part shall furnish

8 safe and adequate car service and establish, observe, and

9 enforce reasonable rules and practices on car service. The

10 Panel may require a rail carrier to provide facilities and

11 equipment that are reasonably necessary to furnish safe and

12 adequate car service if the Panel decides that the rail car13 rier has materially failed to furnish that service. The Panel

14 may begin a proceeding under this paragraph when an in15 terested person files an application with it. The Panel may

16 act only after a hearing on the record and an affirmative

17 finding, based on the evidence presented, that—

18 ‘‘(A) providing the facilities or equipment will

19 not materially and adversely affect the ability of the

20 rail carrier to provide safe and adequate transpor21 tation;

22 ‘‘(B) the amount spent for the facilities or equip23 ment, including a return equal to the rail carrier’s

24 current cost of capital, will be recovered; and
57

•HR 2539 RH

1 ‘‘(C) providing the facilities or equipment will

2 not impair the ability of the rail carrier to attract

3 adequate capital.

4 ‘‘(2) The Panel may require a rail carrier to file its

5 car service rules with the Panel.

6 ‘‘(b) The Panel may designate and appoint agents and

7 agencies to make and carry out its directions related to car

8 service and matters under sections 10923 and 10924(a)(1)

9 of this title.

10 ‘‘§ 10922. Compensation and practice

11 ‘‘(a) The regulations of the Panel on car service shall

12 encourage the purchase, acquisition, and efficient use of

13 freight cars. The regulations may include—

14 ‘‘(1) the compensation to be paid for the use of

15 a locomotive, freight car, or other vehicle;

16 ‘‘(2) the other terms of any arrangement for the

17 use by a rail carrier of a locomotive, freight car, or

18 other vehicle not owned by the rail carrier using the

19 locomotive, freight car, or other vehicle, whether or

20 not owned by another carrier, shipper, or third per21 son; and

22 ‘‘(3) sanctions for nonobservance.

23 ‘‘(b) The rate of compensation to be paid for each type

24 of freight car shall be determined by the expense of owning

25 and maintaining that type of freight car, including a fair
58

•HR 2539 RH

1 return on its cost giving consideration to current costs of

2 capital, repairs, materials, parts, and labor. In determin3 ing the rate of compensation, the Panel shall consider the

4 transportation use of each type of freight car, the national

5 level of ownership of each type of freight car, and other fac6 tors that affect the adequacy of the national freight car sup7 ply.

8 ‘‘§ 10923. Rerouting traffic on failure of rail carrier to

9 serve the public

10 ‘‘(a) When the Panel considers that a rail carrier pro11 viding transportation subject to the jurisdiction of the Panel

12 under this part cannot transport the traffic offered to it

13 in a manner that properly serves the public, the Panel may

14 direct the handling, routing, and movement of the traffic

15 of that rail carrier and its distribution over other railroad

16 lines to promote commerce and service to the public. Subject

17 to subsection (b)(2) of this section, the rail carriers may

18 establish the terms of compensation between themselves.

19 ‘‘(b)(1) Except as provided in paragraph (2) of this

20 subsection, the Panel may act under this section on its own

21 initiative or on application without regard to subchapter

22 II of chapter 5 of title 5.

23 ‘‘(2) When the rail carriers do not agree on the terms

24 of compensation under this section, the Panel may establish

25 the terms for them in a later proceeding.
59

•HR 2539 RH

1 ‘‘(c) When there is a shortage of equipment, congestion

2 of traffic, or other emergency declared by the Panel, it may

3 prescribe temporary through routes that are desirable in the

4 public interest on its own initiative or on application with5 out regard to subchapter II of chapter 7 of this title, and

6 subchapter II of chapter 5 of title 5.

7 ‘‘§ 10924. War emergencies; embargoes imposed by car8 riers

9 ‘‘(a)(1) When the President, during time of war or

10 threatened war, notifies the Panel that it is essential to the

11 defense and security of the United States to give preference

12 or priority to the movement of certain traffic, the Panel

13 shall direct that preference or priority be given to that traf14 fic.

15 ‘‘(2) When the President, during time of war or threat16 ened war, demands that preference and precedence be given

17 to the transportation of troops and material of war over

18 all other traffic, all rail carriers providing transportation

19 subject to the jurisdiction of the Panel under this part shall

20 adopt every means within their control to facilitate and ex21 pedite the military traffic.

22 ‘‘(b) An embargo imposed by any such rail carrier does

23 not apply to shipments consigned to agents of the United

24 States Government for its use. The rail carrier shall deliver

25 those shipments as promptly as possible.
60

•HR 2539 RH

1 ‘‘SUBCHAPTER III—REPORTS AND RECORDS

2 ‘‘§ 10941. Definitions

3 ‘‘In this subchapter—

4 ‘‘(1) the terms ‘rail carrier’ and ‘lessor’ include

5 a receiver or trustee of a rail carrier and lessor, re6 spectively;

7 ‘‘(2) the term ‘lessor’ means a person owning a

8 railroad that is leased to and operated by a carrier

9 providing transportation subject to the jurisdiction of

10 the Panel under this part; and

11 ‘‘(3) the term ‘association’ means an organiza12 tion maintained by or in the interest of a group of

13 rail carriers providing transportation or service sub14 ject to the jurisdiction of the Panel under this part

15 that performs a service, or engages in activities, relat16 ed to transportation under this part.

17 ‘‘§ 10942. Uniform accounting system

18 ‘‘The Panel may prescribe a uniform accounting sys19 tem for classes of rail carriers providing transportation

20 subject to the jurisdiction of the Panel under this part. To

21 the maximum extent practicable, the Panel shall conform

22 such system to generally accepted accounting principles,

23 and shall administer this subchapter in accordance with

24 such principles.
61

•HR 2539 RH

1 ‘‘§ 10943. Depreciation charges

2 ‘‘The Panel shall, for a class of rail carriers providing

3 transportation subject to its jurisdiction under this part,

4 prescribe, and change when necessary, those classes of prop5 erty for which depreciation charges may be included under

6 operating expenses and a rate of depreciation that may be

7 charged to a class of property. The Panel may classify those

8 rail carriers for purposes of this section. A rail carrier for

9 whom depreciation charges and rates of depreciation are

10 in effect under this section for any class of property may

11 not—

12 ‘‘(1) charge to operating expenses a depreciation

13 charge on a class of property other than that pre14 scribed by the Panel;

15 ‘‘(2) charge another rate of depreciation; or

16 ‘‘(3) include other depreciation charges in oper17 ating expenses.

18 ‘‘§ 10944. Records: form; inspection; preservation

19 ‘‘(a) The Panel may prescribe the form of records re20 quired to be prepared or compiled under this subchapter—

21 ‘‘(1) by rail carriers and lessors, including

22 records related to movement of traffic and receipts

23 and expenditures of money; and

24 ‘‘(2) by persons furnishing cars to or for a rail

25 carrier providing transportation subject to the juris-
62

•HR 2539 RH

1 diction of the Panel under this part to the extent re2 lated to those cars or that service.

3 ‘‘(b) The Panel, or an employee designated by the

4 Panel, may on demand and display of proper credentials—

5 ‘‘(1) inspect and examine the lands, buildings,

6 and equipment of a rail carrier or lessor; and

7 ‘‘(2) inspect and copy any record of—

8 ‘‘(A) a rail carrier, lessor, or association;

9 and

10 ‘‘(B) a person controlling, controlled by, or

11 under common control with a rail carrier if the

12 Panel considers inspection relevant to that per13 son’s relation to, or transaction with, that rail

14 carrier.

15 ‘‘(c) The Panel may prescribe the time period during

16 which operating, accounting, and financial records must be

17 preserved by rail carriers, lessors, and persons furnishing

18 cars.

19 ‘‘§ 10945. Reports by rail carriers, lessors, and asso20 ciations

21 ‘‘(a) The Panel may require rail carriers, lessors, and

22 associations, or classes of them as the Panel may prescribe,

23 to file annual, periodic, and special reports with the Panel

24 containing answers to questions asked by it.
63

•HR 2539 RH

1 ‘‘(b)(1) An annual report shall contain an account, in

2 as much detail as the Panel may require, of the affairs of

3 the rail carrier, lessor, or association for the 12-month pe4 riod ending on December 31 of each year.

5 ‘‘(2) An annual report shall be filed with the Panel

6 by the end of the third month after the end of the year for

7 which the report is made unless the Panel extends the filing

8 date or changes the period covered by the report. The annual

9 report and, if the Panel requires, any other report made

10 under this section, shall be made under oath.

11 ‘‘SUBCHAPTER IV—RAILROAD COST ACCOUNTING

12 ‘‘§ 10961. Implementation of cost accounting prin13 ciples

14 ‘‘Not less than once every five years after the promul15 gation of original rules implementing the cost accounting

16 principles established by the Railroad Accounting Prin17 ciples Board, the Panel shall review such principles and

18 shall, by rule, make such changes in such principles as are

19 required to achieve the regulatory purposes of this part. The

20 Panel shall insure that the rules promulgated under this

21 section are the most efficient and least burdensome means

22 by which the required information may be developed for reg23 ulatory purposes. To the maximum extent practicable, the

24 Panel shall conform such rules to generally accepted ac25 counting principles.
64

•HR 2539 RH

1 ‘‘§ 10962. Rail carrier cost accounting system

2 ‘‘(a) Each rail carrier shall have and maintain a cost

3 accounting system that is in compliance with the rules pro4 mulgated by the Panel under section 10961 of this title. A

5 rail carrier may, after notifying the Panel, make modifica6 tions in such system unless, within 60 days after the date

7 of notification, the Panel finds such modifications to be in8 consistent with the rules promulgated by the Panel under

9 section 10961 of this title.

10 ‘‘(b) For purposes of determining whether the cost ac11 counting system of a rail carrier is in compliance with the

12 rules promulgated by the Panel, the Panel shall have the

13 right to examine and make copies of any documents, papers,

14 or records of such rail carrier relating to compliance with

15 such rules. Such documents, papers, and records (and any

16 copies thereof) shall not be subject to the mandatory disclo17 sure requirements of section 552 of title 5.

18 ‘‘§ 10963. Cost availability

19 ‘‘As required by the rules of the Panel governing dis20 covery in Panel proceedings, rail carriers shall make rel21 evant cost data available to shippers, States, ports, commu22 nities, and other interested parties that are a party to a

23 Panel proceeding in which such data are required.

24 ‘‘§ 10964. Accounting and cost reporting

25 ‘‘(a) To obtain expense and revenue information for

26 regulatory purposes, the Panel may promulgate reasonable
65

•HR 2539 RH

1 rules for rail carriers providing transportation subject to

2 the jurisdiction of the Panel under this part, prescribing

3 expense and revenue accounting and reporting requirements

4 consistent with generally accepted accounting principles

5 uniformly applied to such carriers. Such requirements shall

6 be cost effective and compatible with and not duplicative

7 of the managerial and responsibility accounting require8 ments of those carriers. To the extent such rules are required

9 solely to provide expense and revenue information necessary

10 for determining railroad costs in regulatory proceedings

11 under this part, such rules shall be promulgated in accord12 ance with the cost accounting principles established by the

13 Railroad Accounting Principles Board.

14 ‘‘(b) Any reports required by the rules established by

15 the Panel under this section shall include only information

16 considered necessary for disclosure under the cost account17 ing principles established by the Board or under generally

18 accepted accounting principles or the requirements of the

19 Securities and Exchange Commission.

20 ‘‘CHAPTER 111—FINANCE

‘‘SUBCHAPTER I—EQUIPMENT TRUSTS AND SECURITY INTERESTS

‘‘Sec.

‘‘11101. Equipment trusts: recordation; evidence of indebtedness.

‘‘SUBCHAPTER II—COMBINATIONS

‘‘11121. Scope of authority.

‘‘11122. Limitation on pooling and division of transportation or earnings.

‘‘11123. Consolidation, merger, and acquisition of control.

‘‘11124. Consolidation, merger, and acquisition of control: conditions of approval.

‘‘11125. Consolidation, merger, and acquisition of control: procedure.
66

•HR 2539 RH

‘‘11126. Employee protective arrangements in transactions involving rail carriers.

‘‘11127. Supplemental orders.

1 ‘‘SUBCHAPTER I—EQUIPMENT TRUSTS AND

2 SECURITY INTERESTS

3 ‘‘§ 11101. Equipment trusts: recordation; evidence of

4 indebtedness

5 ‘‘(a) A mortgage, lease equipment trust agreement,

6 conditional sales agreement, or other instrument evidencing

7 the mortgage, lease, conditional sale, or bailment of or secu8 rity interest in railroad cars, locomotives, or other rolling

9 stock, or accessories used on such railroad cars, locomotives,

10 or other rolling stock (including superstructures and racks),

11 intended for a use related to interstate commerce shall be

12 filed with the Panel. An assignment of a right or interest

13 under one of those instruments and an amendment to that

14 instrument or assignment including a release, discharge, or

15 satisfaction of any part of it shall also be filed with the

16 Panel. The instrument, assignment, or amendment must be

17 in writing, executed by the parties to it, and acknowledged

18 or verified under Panel regulations. When filed under this

19 section, that document is notice to, and enforceable against,

20 all persons. A document filed under this section does not

21 have to be filed, deposited, registered, or recorded under an22 other law of the United States, a State (or its political sub23 divisions), or territory or possession of the United States,
67

•HR 2539 RH

1 related to filing, deposit, registration, or recordation of

2 those documents.

3 ‘‘(b) The Panel shall maintain a system for recording

4 each document filed under subsection (a) of this section and

5 mark each of them with a consecutive number and the date

6 and hour of their recordation. The Panel shall maintain

7 and keep open for public inspection an index of documents

8 filed under that subsection. That index shall include the

9 name and address of the principal debtors, trustees, guaran10 tors, and other parties to those documents and may include

11 other facts that will assist in determining the rights of the

12 parties to those transactions.

13 ‘‘(c) The Panel shall to the greatest extent practicable

14 perform its functions under this section through contracts

15 with private sector entities.

16 ‘‘(d) The Panel shall assess user fees for services per17 formed by the Panel or a contractor thereof under this sec18 tion. Such fees may be used by the Panel to offset its costs,

19 to the extent provided in advance in appropriations Acts.

20 ‘‘(e) A mortgage, lease, equipment trust agreement,

21 conditional sales agreement, or other instrument evidencing

22 the mortgage, lease, conditional sale, or bailment of or secu23 rity interest in railroad cars, locomotives, or other rolling

24 stock, or accessories used on such railroad cars, locomotives,
68

•HR 2539 RH

1 or other rolling stock (including superstructures and racks),

2 or any assignment thereof, which—

3 ‘‘(1) is duly constituted under the laws of a

4 country other than the United States; and

5 ‘‘(2) relates to property that bears the reporting

6 marks and identification numbers of any person dom7 iciled in or corporation organized under the laws of

8 such country,

9 shall be recognized with the same effect as having been filed

10 under this section.

11 ‘‘(f) Interests with respect to which documents are filed

12 or recognized under this section are deemed perfected in all

13 jurisdictions, and shall be governed by applicable State or

14 foreign law in all matters not specifically governed by this

15 section.

16 ‘‘SUBCHAPTER II—COMBINATIONS

17 ‘‘§ 11121. Scope of authority

18 ‘‘(a) The authority of the Panel under this subchapter

19 is exclusive. A rail carrier or corporation participating in

20 or resulting from a transaction approved by or exempted

21 by the Panel under this subchapter may carry out the trans22 action, own and operate property, and exercise control or

23 franchises acquired through the transaction without the ap24 proval of a State authority. A rail carrier, corporation, or

25 person participating in that approved or exempted trans-
69

•HR 2539 RH

1 action is exempt from the antitrust laws and from all other

2 law, including State and municipal law, as necessary to

3 let that rail carrier, corporation, or person carry out the

4 transaction, hold, maintain, and operate property, and ex5 ercise control or franchises acquired through the trans6 action.

7 ‘‘(b) The requirement to obtain the approval or author8 ization of the Panel under this subchapter shall only apply

9 to transactions involving at least one Class I rail carrier,

10 and shall not apply to transactions described in section

11 10702.

12 ‘‘§ 11122. Limitation on pooling and division of trans13 portation or earnings

14 ‘‘(a) A rail carrier providing transportation subject to

15 the jurisdiction of the Panel under this part may not agree

16 or combine with another of those rail carriers to pool or

17 divide traffic or services or any part of their earnings with18 out the approval of the Panel under this section or section

19 10923 of this title. The Panel may approve and authorize

20 the agreement or combination if the rail carriers involved

21 assent to the pooling or division and the Panel finds that

22 a pooling or division of traffic, services, or earnings—

23 ‘‘(1) will be in the interest of better service to the

24 public or of economy of operation; and

25 ‘‘(2) will not unreasonably restrain competition.
70

•HR 2539 RH

1 ‘‘(b) The Panel may impose conditions governing the

2 pooling or division and may approve and authorize pay3 ment of a reasonable consideration between the rail carriers.

4 ‘‘(c) The Panel may begin a proceeding under this sec5 tion on its own initiative or on application.

6 ‘‘§ 11123. Consolidation, merger, and acquisition of

7 control

8 ‘‘(a) The following transactions involving rail carriers

9 providing transportation subject to the jurisdiction of the

10 Panel under this part may be carried out only with the

11 approval and authorization of the Panel:

12 ‘‘(1) Consolidation or merger of the properties or

13 franchises of at least 2 rail carriers into one corpora14 tion for the ownership, management, and operation of

15 the previously separately owned properties.

16 ‘‘(2) A purchase, lease, or contract to operate

17 property of another rail carrier by any number of

18 rail carriers.

19 ‘‘(3) Acquisition of control of a rail carrier by

20 any number of rail carriers.

21 ‘‘(4) Acquisition of control of at least 2 rail car22 riers by a person that is not a rail carrier.

23 ‘‘(5) Acquisition of control of a rail carrier by

24 a person that is not a rail carrier but that controls

25 any number of rail carriers.
71

•HR 2539 RH

1 ‘‘(6) Acquisition by a rail carrier of trackage

2 rights over, or joint ownership in or joint use of, a

3 railroad line (and terminals incidental to it) owned

4 or operated by another rail carrier.

5 ‘‘(b) A person may carry out a transaction referred

6 to in subsection (a) of this section or participate in achiev7 ing the control or management, including the power to exer8 cise control or management, in a common interest of more

9 than one of those rail carriers, regardless of how that result

10 is reached, only with the approval and authorization of the

11 Panel under this subchapter. In addition to other trans12 actions, each of the following transactions are considered

13 achievements of control or management:

14 ‘‘(1) A transaction by a rail carrier that has the

15 effect of putting that rail carrier and person affiliated

16 with it, taken together, in control of another rail car17 rier.

18 ‘‘(2) A transaction by a person affiliated with a

19 rail carrier that has the effect of putting that rail

20 carrier and persons affiliated with it, taken together,

21 in control of another rail carrier.

22 ‘‘(3) A transaction by at least 2 persons acting

23 together (one of whom is a rail carrier or is affiliated

24 with a rail carrier) that has the effect of putting those

25 persons and rail carriers and persons affiliated with
72

•HR 2539 RH

1 any of them, or with any of those affiliated rail car2 riers, taken together, in control of another rail car3 rier.

4 ‘‘(c) A person is affiliated with a rail carrier under

5 this subchapter if, because of the relationship between that

6 person and a rail carrier, it is reasonable to believe that

7 the affairs of another rail carrier, control of which may be

8 acquired by that person, will be managed in the interest

9 of the other rail carrier.

10 ‘‘§ 11124. Consolidation, merger, and acquisition of

11 control: conditions of approval

12 ‘‘(a) The Panel may begin a proceeding to approve and

13 authorize a transaction referred to in section 11123 of this

14 title on application of the person seeking that authority.

15 When an application is filed with the Panel, the Panel shall

16 notify the chief executive officer of each State in which

17 property of the rail carriers involved in the proposed trans18 action is located and shall notify those rail carriers. The

19 Panel shall hold a public hearing unless the Panel deter20 mines that a public hearing is not necessary in the public

21 interest.

22 ‘‘(b) In a proceeding under this section which involves

23 the merger or control of at least two Class I railroads, as

24 defined by the Panel, the Panel shall consider at least—
73

•HR 2539 RH

1 ‘‘(1) the effect of the proposed transaction on the

2 adequacy of transportation to the public;

3 ‘‘(2) the effect on the public interest of including,

4 or failing to include, other rail carriers in the area

5 involved in the proposed transaction;

6 ‘‘(3) the total fixed charges that result from the

7 proposed transaction;

8 ‘‘(4) the interest of rail carrier employees affected

9 by the proposed transaction; and

10 ‘‘(5) whether the proposed transaction would

11 have an adverse effect on competition among rail car12 riers in the affected region or in the national rail sys13 tem.

14 ‘‘(c) The Panel shall approve and authorize a trans15 action under this section when it finds the transaction is

16 consistent with the public interest. The Panel may impose

17 conditions governing the transaction, including the divesti18 ture of parallel tracks or requiring the granting of trackage

19 rights. Any trackage rights conditions imposed to alleviate

20 anticompetitive effects of the transaction shall provide for

21 compensation levels to ensure that such effects are allevi22 ated. When the transaction contemplates a guaranty or as23 sumption of payment of dividends or of fixed charges or

24 will result in an increase of total fixed charges, the Panel

25 may approve and authorize the transaction only if it finds
74

•HR 2539 RH

1 that the guaranty, assumption, or increase is consistent

2 with the public interest. The Panel may require inclusion

3 of other rail carriers located in the area involved in the

4 transaction if they apply for inclusion and the Panel finds

5 their inclusion to be consistent with the public interest.

6 ‘‘(d) In a proceeding under this section which does not

7 involve the merger or control of at least two Class I rail8 roads, as defined by the Panel, the Panel shall approve such

9 an application unless it finds that—

10 ‘‘(1) as a result of the transaction, there is likely

11 to be substantial lessening of competition, creation of

12 a monopoly, or restraint of trade in freight surface

13 transportation in any region of the United States;

14 and

15 ‘‘(2) the anticompetitive effects of the transaction

16 outweigh the public interest in meeting significant

17 transportation needs.

18 In making such findings, the Panel shall, with respect to

19 any application that is part of a plan or proposal developed

20 under section 333(a)–(d) of this title, accord substantial

21 weight to any recommendations of the Secretary of Trans22 portation.

23 ‘‘(e)(1) To the extent provided in this subsection, a pro24 ceeding under this subchapter relating to a transaction in25 volving at least one Class I rail carrier shall not be consid-
75

•HR 2539 RH

1 ered an adjudication required by statute to be determined

2 on the record after opportunity for an agency hearing, for

3 the purposes of subchapter II of chapter 5 of title 5, United

4 States Code.

5 ‘‘(2) Ex parte communications, as defined in section

6 551(14) of title 5, United States Code, shall be permitted

7 in proceedings described in paragraph (1) of this subsection,

8 subject to the requirements of paragraph (3) of this sub9 section.

10 ‘‘(3)(A) Any member or employee of the Panel who

11 makes or receives a written ex parte communication con12 cerning the merits of a proceeding described in paragraph

13 (1) shall promptly place the communication in the public

14 docket of the proceeding.

15 ‘‘(B) Any member or employee of the Panel who makes

16 or receives an oral ex parte communication concerning the

17 merits of a proceeding described in paragraph (1) shall

18 promptly place a written summary of the oral communica19 tion in the public docket of the proceeding.

20 ‘‘(4) Nothing in this subsection shall be construed to

21 require the Panel or any of its members or employees to

22 engage in any ex parte communication with any person.

23 Nothing in this subsection or any other law shall be con24 strued to limit the authority of the members or employees

25 of the Panel, in their discretion, to note in the docket or
76

•HR 2539 RH

1 otherwise publicly the occurrence and substance of an ex

2 parte communication.

3 ‘‘§ 11125. Consolidation, merger, and acquisition of

4 control: procedure

5 ‘‘(a) The Panel shall publish notice of the application

6 under section 11124 in the Federal Register by the end of

7 the 30th day after the application is filed with the Panel.

8 However, if the application is incomplete, the Panel shall

9 reject it by the end of that period. The order of rejection

10 is a final action of the Panel. The published notice shall

11 indicate whether the application involves—

12 ‘‘(1) the merger or control of at least two Class

13 I railroads, as defined by the Panel, to be decided

14 within the time limits specified in subsection (b) of

15 this section;

16 ‘‘(2) transactions of regional or national trans17 portation significance, to be decided within the time

18 limits specified in subsection (c) of this section; or

19 ‘‘(3) any other transaction covered by this sec20 tion, to be decided within the time limits specified in

21 subsection (d) of this section.

22 ‘‘(b) If the application involves the merger or control

23 of two or more Class I railroads, as defined by the Panel,

24 the following conditions apply:
77

•HR 2539 RH

1 ‘‘(1) Written comments about an application

2 may be filed with the Panel within 45 days after no3 tice of the application is published under subsection

4 (a) of this section. Copies of such comments shall be

5 served on the Attorney General, who may decide to

6 intervene as a party to the proceeding. That decision

7 must be made by the 15th day after the date of receipt

8 of the written comments, and if the decision is to in9 tervene, preliminary comments about the application

10 must be sent to the Panel by the end of the 15th day

11 after the date of receipt of the written comments.

12 ‘‘(2) The Panel shall require that applications

13 inconsistent with an application, notice of which was

14 published under subsection (a) of this section, and ap15 plications for inclusion in the transaction, be filed

16 with it by the 90th day after publication of notice

17 under that subsection.

18 ‘‘(3) The Panel must conclude evidentiary pro19 ceedings by the end of the 6th month after the date

20 of publication of notice under subsection (a) of this

21 section. The Panel must issue a final decision by the

22 90th day after the date on which it concludes the evi23 dentiary proceedings.

24 ‘‘(c) If the application involves a transaction other

25 than the merger or control of at least two Class I railroads,
78

•HR 2539 RH

1 as defined by the Panel, which the Panel has determined

2 to be of regional or national transportation significance,

3 the following conditions apply:

4 ‘‘(1) Written comments about an application, in5 cluding comments of the Attorney General, may be

6 filed with the Panel within 30 days after notice of the

7 application is published under subsection (a) of this

8 section.

9 ‘‘(2) The Panel shall require that applications

10 inconsistent with an application, notice of which was

11 published under subsection (a) of this section, and ap12 plications for inclusion in the transaction, be filed

13 with it by the 60th day after publication of notice

14 under that subsection.

15 ‘‘(3) The Panel must conclude any evidentiary

16 proceedings by the 125th day after the date of publi17 cation of notice under subsection (a) of this section.

18 The Panel must issue a final decision by the 40th day

19 after the date on which it concludes the evidentiary

20 proceedings.

21 ‘‘(d) For all applications under this section other than

22 those specified in subsections (b) and (c) of this section, the

23 following conditions apply:

24 ‘‘(1) Written comments about an application, in25 cluding comments of the Attorney General, may be
79

•HR 2539 RH

1 filed with the Panel within 30 days after notice of the

2 application is published under subsection (a) of this

3 section.

4 ‘‘(2) The Panel must conclude any evidentiary

5 proceedings by the 105th day after the date of publi6 cation of notice under subsection (a) of this section.

7 The Panel must issue a final decision by the 40th day

8 after the date on which it concludes the evidentiary

9 proceedings.

10 ‘‘§ 11126. Employee protective arrangements in trans11 actions involving rail carriers

12 ‘‘When approval is sought for a transaction under sec13 tions 11124 and 11125 of this title, the Panel shall require

14 the rail carrier to provide a fair arrangement at least as

15 protective of the interests of employees who are affected by

16 the transaction as the terms imposed under section 5(2)(f)

17 of the Interstate Commerce Act before February 5, 1976,

18 and the terms established under section 24706(c) of this

19 title. Notwithstanding this part, the arrangement may be

20 made by the rail carrier and the authorized representative

21 of its employees. The arrangement and the order approving

22 the transaction must require that the employees of the af23 fected rail carrier will not be in a worse position related

24 to their employment as a result of the transaction during

25 the 4 years following the effective date of the final action
80

•HR 2539 RH

1 of the Panel (or if an employee was employed for a lesser

2 period of time by the rail carrier before the action became

3 effective, for that lesser period).

4 ‘‘§ 11127. Supplemental orders

5 ‘‘When cause exists, the Panel may make appropriate

6 orders supplemental to an order made in a proceeding

7 under sections 11122 through 11126 of this title.

8 ‘‘CHAPTER 113—FEDERAL-STATE

9 RELATIONS

‘‘Sec.

‘‘11301. Tax discrimination against rail transportation property.

‘‘11302. Withholding State and local income tax by rail carriers.

10 ‘‘§ 11301. Tax discrimination against rail transpor11 tation property

12 ‘‘(a) In this section—

13 ‘‘(1) the term ‘assessment’ means valuation for a

14 property tax levied by a taxing district;

15 ‘‘(2) the term ‘assessment jurisdiction’ means a

16 geographical area in a State used in determining the

17 assessed value of property for ad valorem taxation;

18 ‘‘(3) the term ‘rail transportation property’

19 means property, as defined by the Panel, owned or

20 used by a rail carrier providing transportation sub21 ject to the jurisdiction of the Panel under this part;

22 and

23 ‘‘(4) the term ‘commercial and industrial prop24 erty’ means property, other than transportation prop-
81

•HR 2539 RH

1 erty and land used primarily for agricultural pur2 poses or timber growing, devoted to a commercial or

3 industrial use and subject to a property tax levy.

4 ‘‘(b) The following acts unreasonably burden and dis5 criminate against interstate commerce, and a State, sub6 division of a State, or authority acting for a State or sub7 division of a State may not do any of them:

8 ‘‘(1) Assess rail transportation property at a

9 value that has a higher ratio to the true market value

10 of the rail transportation property than the ratio that

11 the assessed value of other commercial and industrial

12 property in the same assessment jurisdiction has to

13 the true market value of the other commercial and in14 dustrial property.

15 ‘‘(2) Levy or collect a tax on an assessment that

16 may not be made under paragraph (1) of this sub17 section.

18 ‘‘(3) Levy or collect an ad valorem property tax

19 on rail transportation property at a tax rate that ex20 ceeds the tax rate applicable to commercial and in21 dustrial property in the same assessment jurisdiction.

22 ‘‘(4) Impose another tax that discriminates

23 against a rail carrier providing transportation sub24 ject to the jurisdiction of the Panel under this part.
82

•HR 2539 RH

1 ‘‘(c) Notwithstanding section 1341 of title 28 and with2 out regard to the amount in controversy or citizenship of

3 the parties, a district court of the United States has juris4 diction, concurrent with other jurisdiction of courts of the

5 United States and the States, to prevent a violation of sub6 section (b) of this section. Relief may be granted under this

7 subsection only if the ratio of assessed value to true market

8 value of rail transportation property exceeds by at least 5

9 percent the ratio of assessed value to true market value of

10 other commercial and industrial property in the same as11 sessment jurisdiction. The burden of proof in determining

12 assessed value and true market value is governed by State

13 law. If the ratio of the assessed value of other commercial

14 and industrial property in the assessment jurisdiction to

15 the true market value of all other commercial and indus16 trial property cannot be determined to the satisfaction of

17 the district court through the random-sampling method

18 known as a sales assessment ratio study (to be carried out

19 under statistical principles applicable to such a study), the

20 court shall find, as a violation of this section—

21 ‘‘(1) an assessment of the rail transportation

22 property at a value that has a higher ratio to the true

23 market value of the rail transportation property than

24 the assessed value of all other property subject to a

25 property tax levy in the assessment jurisdiction has
83

•HR 2539 RH

1 to the true market value of all other commercial and

2 industrial property; and

3 ‘‘(2) the collection of an ad valorem property tax

4 on the rail transportation property at a tax rate that

5 exceeds the tax ratio rate applicable to taxable prop6 erty in the taxing district.

7 ‘‘§ 11302. Withholding State and local income tax by

8 rail carriers

9 ‘‘(a) No part of the compensation paid by a rail car10 rier providing transportation subject to the jurisdiction of

11 the Panel under this part to an employee who performs reg12 ularly assigned duties as such an employee on a railroad

13 in more than one State shall be subject to the income tax

14 laws of any State or subdivision of that State, other than

15 the State or subdivision thereof of the employee’s residence.

16 ‘‘(b) A rail carrier withholding pay from an employee

17 under subsection (a) of this section shall file income tax

18 information returns and other reports only with the State

19 and subdivision of residence of the employee.

20 ‘‘CHAPTER 115—ENFORCEMENT:

21 INVESTIGATIONS, RIGHTS, AND REMEDIES

‘‘Sec.

‘‘11501. General authority.

‘‘11502. Enforcement by the Panel.

‘‘11503. Enforcement by the Attorney General.

‘‘11504. Rights and remedies of persons injured by rail carriers.

‘‘11505. Limitation on actions by and against rail carriers.

‘‘11506. Liability of rail carriers under receipts and bills of lading.
84

•HR 2539 RH

1 ‘‘§ 11501. General authority

2 ‘‘(a) The Panel may begin an investigation under this

3 part on its own initiative or on complaint. If the Panel

4 finds that a rail carrier is violating this part, the Panel

5 shall take appropriate action to compel compliance with

6 this part.

7 ‘‘(b) A person, including a governmental authority,

8 may file with the Panel a complaint about a violation of

9 this part by a rail carrier providing transportation or serv10 ice subject to the jurisdiction of the Panel under this part.

11 The complaint must state the facts that are the subject of

12 the violation. The Panel may dismiss a complaint it deter13 mines does not state reasonable grounds for investigation

14 and action. However, the Panel may not dismiss a com15 plaint made against a rail carrier providing transportation

16 subject to the jurisdiction of the Panel under this part be17 cause of the absence of direct damage to the complainant.

18 ‘‘(c) A formal investigative proceeding begun by the

19 Panel under subsection (a) of this section is dismissed auto20 matically unless it is concluded by the Panel with adminis21 trative finality by the end of the third year after the date

22 on which it was begun.

23 ‘‘§ 11502. Enforcement by the Panel

24 ‘‘The Panel may bring a civil action—

25 ‘‘(1) to enjoin a rail carrier from violating sec26 tions 10701 through 10706 of this title, or a regula-
85

•HR 2539 RH

1 tion prescribed or order or certificate issued under

2 any of those sections;

3 ‘‘(2) to enforce subchapter II of chapter 111 of

4 this title and to compel compliance with the order of

5 the Panel under that subchapter; and

6 ‘‘(3) to enforce an order of the Panel, except a

7 civil action to enforce an order for the payment of

8 money, when it is violated by a rail carrier providing

9 transportation subject to the jurisdiction of the Panel

10 under this part.

11 ‘‘§ 11503. Enforcement by the Attorney General

12 ‘‘The Attorney General may, and on request of the

13 Panel shall, bring court proceedings to enforce this part,

14 or a regulation or order of the Panel or certificate or permit

15 issued under this part, and to prosecute a person violating

16 this part or a regulation or order of the Panel or certificate

17 or permit issued under this part.

18 ‘‘§ 11504. Rights and remedies of persons injured by

19 rail carriers

20 ‘‘(a) A person injured because a rail carrier providing

21 transportation or service subject to the jurisdiction of the

22 Panel under this part does not obey an order of the Panel,

23 except an order for the payment of money, may bring a

24 civil action to enforce that order under this subsection.
86

•HR 2539 RH

1 ‘‘(b) A rail carrier providing transportation subject to

2 the jurisdiction of the Panel under this part is liable for

3 damages sustained by a person as a result of an act or omis4 sion of that carrier in violation of this part.

5 ‘‘(c)(1) A person may file a complaint with the Panel

6 under section 11501(b) of this title or bring a civil action

7 under subsection (b) of this section to enforce liability

8 against a rail carrier providing transportation subject to

9 the jurisdiction of the Panel under this part.

10 ‘‘(2) When the Panel makes an award under subsection

11 (b) of this section, the Panel shall order the rail carrier

12 to pay the amount awarded by a specific date. The Panel

13 may order a rail carrier providing transportation subject

14 to the jurisdiction of the Panel under this part to pay dam15 ages only when the proceeding is on complaint. The person

16 for whose benefit an order of the Panel requiring the pay17 ment of money is made may bring a civil action to enforce

18 that order under this paragraph if the rail carrier does not

19 pay the amount awarded by the date payment was ordered

20 to be made.

21 ‘‘(d)(1) When a person begins a civil action under sub22 section (b) of this section to enforce an order of the Panel

23 requiring the payment of damages by a rail carrier provid24 ing transportation subject to the jurisdiction of the Panel

25 under this part, the text of the order of the Panel must be
87

•HR 2539 RH

1 included in the complaint. In addition to the district courts

2 of the United States, a State court of general jurisdiction

3 having jurisdiction of the parties has jurisdiction to enforce

4 an order under this paragraph. The findings and order of

5 the Panel are competent evidence of the facts stated in them.

6 Trial in a civil action brought in a district court of the

7 United States under this paragraph is in the judicial dis8 trict—

9 ‘‘(A) in which the plaintiff resides;

10 ‘‘(B) in which the principal operating office of

11 the rail carrier is located; or

12 ‘‘(C) through which the railroad line of that car13 rier runs.

14 In a civil action under this paragraph, the plaintiff is lia15 ble for only those costs that accrue on an appeal taken by

16 the plaintiff.

17 ‘‘(2) All parties in whose favor the award was made

18 may be joined as plaintiffs in a civil action brought in a

19 district court of the United States under this subsection and

20 all the rail carriers that are parties to the order awarding

21 damages may be joined as defendants. Trial in the action

22 is in the judicial district in which any one of the plaintiffs

23 could bring the action against any one of the defendants.

24 Process may be served on a defendant at its principal oper25 ating office when that defendant is not in the district in
88

•HR 2539 RH

1 which the action is brought. A judgment ordering recovery

2 may be made in favor of any of those plaintiffs against

3 the defendant found to be liable to that plaintiff.

4 ‘‘(3) The district court shall award a reasonable attor5 ney’s fee as a part of the damages for which a rail carrier

6 is found liable under this subsection. The district court shall

7 tax and collect that fee as a part of the costs of the action.

8 ‘‘§ 11505. Limitation on actions by and against rail

9 carriers

10 ‘‘(a) A rail carrier providing transportation or service

11 subject to the jurisdiction of the Panel under this part must

12 begin a civil action to recover charges for transportation

13 or service provided by the carrier within 3 years after the

14 claim accrues.

15 ‘‘(b) A person must file a complaint with the Panel

16 to recover damages under section 11504(b) of this title with17 in 2 years after the claim accrues.

18 ‘‘(c) The limitation period under subsection (b) of this

19 section is extended for 6 months from the time written no20 tice is given to the claimant by the rail carrier of disallow21 ance of any part of the claim specified in the notice if a

22 written claim is given to the rail carrier within that limita23 tion period. The limitation period under subsection (b) of

24 this section is extended for 90 days from the time the rail

25 carrier begins a civil action under subsection (a) of this
89

•HR 2539 RH

1 section to recover charges related to the same transportation

2 or service, or collects (without beginning a civil action

3 under that subsection) the charge for that transportation

4 or service if that action is begun or collection is made with5 in the appropriate period.

6 ‘‘(d) A person must begin a civil action to enforce an

7 order of the Panel against a rail carrier for the payment

8 of money within one year after the date the order required

9 the money to be paid.

10 ‘‘(e) This section applies to transportation for the

11 United States Government. The time limitations under this

12 section are extended, as related to transportation for or on

13 behalf of the United States Government, for 3 years from

14 the date of—

15 ‘‘(1) payment of the rate for the transportation

16 or service involved;

17 ‘‘(2) subsequent refund for overpayment of that

18 rate; or

19 ‘‘(3) deduction made under section 3726 of title

20 31, whichever is later.

21 ‘‘(f) A claim related to a shipment of property accrues

22 under this section on delivery or tender of delivery by the

23 rail carrier.
90

•HR 2539 RH

1 ‘‘§ 11506. Liability of rail carriers under receipts and

2 bills of lading

3 ‘‘(a) A rail carrier providing transportation or service

4 subject to the jurisdiction of the Panel under this part shall

5 issue a receipt or bill of lading for property it receives for

6 transportation under this part. That rail carrier and any

7 other rail carrier that delivers the property and is provid8 ing transportation or service subject to the jurisdiction of

9 the Panel under this part are liable to the person entitled

10 to recover under the receipt or bill of lading. The liability

11 imposed under this subsection is for the actual loss or injury

12 to the property caused by—

13 ‘‘(1) the receiving rail carrier;

14 ‘‘(2) the delivering rail carrier; or

15 ‘‘(3) another rail carrier over whose line or route

16 the property is transported in the United States or

17 from a place in the United States to a place in an

18 adjacent foreign country when transported under a

19 through bill of lading.

20 Failure to issue a receipt or bill of lading does not affect

21 the liability of a rail carrier. A delivering rail carrier is

22 deemed to be the rail carrier performing the line-haul trans23 portation nearest the destination but does not include a rail

24 carrier providing only a switching service at the destina25 tion.
91

•HR 2539 RH

1 ‘‘(b) The rail carrier issuing the receipt or bill of lad2 ing under subsection (a) of this section or delivering the

3 property for which the receipt or bill of lading was issued

4 is entitled to recover from the rail carrier over whose line

5 or route the loss or injury occurred the amount required

6 to be paid to the owners of the property, as evidenced by

7 a receipt, judgment, or transcript, and the amount of its

8 expenses reasonably incurred in defending a civil action

9 brought by that person.

10 ‘‘(c)(1) A rail carrier may not limit or be exempt from

11 liability imposed under subsection (a) of this section except

12 as provided in this subsection. A limitation of liability or

13 of the amount of recovery or representation or agreement

14 in a receipt, bill of lading, contract, or rule in violation

15 of this section is void.

16 ‘‘(2) A rail carrier of passengers may limit its liability

17 under its passenger rate for loss or injury of baggage carried

18 on trains carrying passengers.

19 ‘‘(3) A rail carrier providing transportation or service

20 subject to the jurisdiction of the Panel under this part may

21 establish rates for transportation of property under

22 which—

23 ‘‘(A) the liability of the rail carrier for such

24 property is limited to a value established by written
92

•HR 2539 RH

1 declaration of the shipper or by a written agreement

2 between the shipper and the carrier; or

3 ‘‘(B) specified amounts are deducted, pursuant

4 to a written agreement between the shipper and the

5 carrier, from any claim against the carrier with re6 spect to the transportation of such property.

7 ‘‘(d)(1) A civil action under this section may be

8 brought in a district court of the United States or in a

9 State court.

10 ‘‘(2)(A) A civil action under this section may only be

11 brought—

12 ‘‘(i) against the originating rail carrier, in the

13 judicial district in which the point of origin is lo14 cated;

15 ‘‘(ii) against the delivering rail carrier, in the

16 judicial district in which the principal place of busi17 ness of the person bringing the action is located if the

18 delivering carrier operates a railroad or a route

19 through such judicial district, or in the judicial dis20 trict in which the point of destination is located; and

21 ‘‘(iii) against the carrier alleged to have caused

22 the loss or damage, in the judicial district in which

23 such loss or damage is alleged to have occurred.

24 ‘‘(B) In this section, ‘judicial district’ means (i) in

25 the case of a United States district court, a judicial district
93

•HR 2539 RH

1 of the United States, and (ii) in the case of a State court,

2 the applicable geographic area over which such court exer3 cises jurisdiction.

4 ‘‘(e) A rail carrier may not provide by rule, contract,

5 or otherwise, a period of less than 9 months for filing a

6 claim against it under this section and a period of less than

7 2 years for bringing a civil action against it under this

8 section. The period for bringing a civil action is computed

9 from the date the carrier gives a person written notice that

10 the carrier has disallowed any part of the claim specified

11 in the notice. For the purposes of this subsection—

12 ‘‘(1) an offer of compromise shall not constitute

13 a disallowance of any part of the claim unless the

14 carrier, in writing, informs the claimant that such

15 part of the claim is disallowed and provides reasons

16 for such disallowance; and

17 ‘‘(2) communications received from a carrier’s

18 insurer shall not constitute a disallowance of any

19 part of the claim unless the insurer, in writing, in20 forms the claimant that such part of the claim is dis21 allowed, provides reasons for such disallowance, and

22 informs the claimant that the insurer is acting on be23 half of the carrier.
94

•HR 2539 RH

1 ‘‘CHAPTER 117—CIVIL AND CRIMINAL

2 PENALTIES

‘‘Sec.

‘‘11701. General civil penalties.

‘‘11702. Interference with railroad car supply.

‘‘11703. Record keeping and reporting violations.

‘‘11704. Unlawful disclosure of information.

‘‘11705. Disobedience to subpoenas.

‘‘11706. General criminal penalty when specific penalty not provided.

‘‘11707. Punishment of corporation for violations committed by certain

individuals.

3 ‘‘§ 11701. General civil penalties

4 ‘‘(a) Except as otherwise provided in this section, a

5 rail carrier providing transportation subject to the jurisdic6 tion of the Panel under this part, an officer or agent of

7 that rail carrier, or a receiver, trustee, lessee, or agent of

8 one of them, knowingly violating an order of the Panel

9 under this part is liable to the United States Government

10 for a civil penalty of $5,000 for each violation. Liability

11 under this subsection is incurred for each distinct violation.

12 A separate violation occurs for each day the violation con13 tinues.

14 ‘‘(b) A rail carrier providing transportation subject to

15 the jurisdiction of the Panel under this part, or a receiver

16 or trustee of that rail carrier, violating a regulation or

17 order of the Panel under section 10924 (a)(2) or (b) of this

18 title is liable to the United States Government for a civil

19 penalty of $500 for each violation and for $25 for each day

20 the violation continues.
95

•HR 2539 RH

1 ‘‘(c) A person knowingly authorizing, consenting to, or

2 permitting a violation of sections 10701 through 10706 of

3 this title or of a requirement or a regulation under any

4 of those sections, is liable to the United States Government

5 for a civil penalty of not more than $5,000.

6 ‘‘(d) A rail carrier, receiver, or operating trustee vio7 lating an order or direction of the Panel under section

8 10923 or 10924(a)(1) of this title is liable to the United

9 States Government for a civil penalty of at least $100 but

10 not more than $500 for each violation and for $50 for each

11 day the violation continues.

12 ‘‘(e)(1) A person required under subchapter III of

13 chapter 109 of this title to make, prepare, preserve, or sub14 mit to the Panel a record concerning transportation subject

15 to the jurisdiction of the Panel under this part that does

16 not make, prepare, preserve, or submit that record as re17 quired under that subchapter, is liable to the United States

18 Government for a civil penalty of $500 for each violation.

19 ‘‘(2) A rail carrier providing transportation subject to

20 the jurisdiction of the Panel under this part, and a lessor,

21 receiver, or trustee of that rail carrier, violating section

22 10944(b)(1) of this title, is liable to the United States Gov23 ernment for a civil penalty of $100 for each violation.

24 ‘‘(3) A rail carrier providing transportation subject to

25 the jurisdiction of the Panel under this part, a lessor, re-
96

•HR 2539 RH

1 ceiver, or trustee of that rail carrier, a person furnishing

2 cars, and an officer, agent, or employee of one of them, re3 quired to make a report to the Panel or answer a question

4 that does not make the report or does not specifically, com5 pletely, and truthfully answer the question, is liable to the

6 United States Government for a civil penalty of $100 for

7 each violation.

8 ‘‘(4) A separate violation occurs for each day a viola9 tion under this subsection continues.

10 ‘‘(f) Trial in a civil action under subsections (a)

11 through (e) of this section is in the judicial district in which

12 the rail carrier has its principal operating office or in a

13 district through which the railroad of the rail carrier runs.

14 ‘‘§ 11702. Interference with railroad car supply

15 ‘‘(a) A person that offers or gives anything of value

16 to another person acting for or employed by a rail carrier

17 providing transportation subject to the jurisdiction of the

18 Panel under this part intending to influence an action of

19 that other person related to supply, distribution, or move20 ment of cars or vehicles used in the transportation of prop21 erty, or because of the action of that other person shall be

22 fined not more than $1,000, imprisoned for not more than

23 2 years, or both.

24 ‘‘(b) A person acting for or employed by a rail carrier

25 providing transportation subject to the jurisdiction of the
97

•HR 2539 RH

1 Panel under this part that solicits, accepts, or receives any2 thing of value—

3 ‘‘(1) intending to be influenced by it in an ac4 tion of that person related to supply, distribution, or

5 movement of cars, vehicles, or vessels used in the

6 transportation of property; or

7 ‘‘(2) because of the action of that person,

8 shall be fined not more than $1,000, imprisoned for not

9 more than 2 years, or both.

10 ‘‘§ 11703. Record keeping and reporting violations

11 ‘‘A person required to make a report to the Panel, or

12 make, prepare, or preserve a record, under subchapter III

13 of chapter 109 of this title about transportation subject to

14 the jurisdiction of the Panel under this part that knowingly

15 and willfully—

16 ‘‘(1) makes a false entry in the report or record;

17 ‘‘(2) destroys, mutilates, changes, or by another

18 means falsifies the record;

19 ‘‘(3) does not enter business related facts and

20 transactions in the record;

21 ‘‘(4) makes, prepares, or preserves the record in

22 violation of a regulation or order of the Panel; or

23 ‘‘(5) files a false report or record with the Panel,

24 shall be fined not more than $5,000, imprisoned for not

25 more than 2 years, or both.
98

•HR 2539 RH

1 ‘‘§ 11704. Unlawful disclosure of information

2 ‘‘(a) A—

3 ‘‘(1) rail carrier providing transportation subject

4 to the jurisdiction of the Panel under this part, or an

5 officer, agent, or employee of that rail carrier, or an6 other person authorized to receive information from

7 that rail carrier, that knowingly discloses to another

8 person, except the shipper or consignee; or

9 ‘‘(2) a person who solicits or knowingly receives,

10 information described in subsection (b) without the consent

11 of the shipper or consignee shall be fined not more than

12 $1,000.

13 ‘‘(b) The information referred to in subsection (a) is

14 information about the nature, kind, quantity, destination,

15 consignee, or routing of property tendered or delivered to

16 that rail carrier for transportation provided under this

17 part, or information about the contents of a contract au18 thorized under section 10509 of this title, that may be used

19 to the detriment of the shipper or consignee or may disclose

20 improperly, to a competitor, the business transactions of the

21 shipper or consignee.

22 ‘‘(c) This part does not prevent a rail carrier or broker

23 providing transportation subject to the jurisdiction of the

24 Panel under this part from giving information—

25 ‘‘(1) in response to legal process issued under au26 thority of a court of the United States or a State;
99

•HR 2539 RH

1 ‘‘(2) to an officer, employee, or agent of the

2 United States Government, a State, or a territory or

3 possession of the United States; or

4 ‘‘(3) to another rail carrier or its agent to adjust

5 mutual traffic accounts in the ordinary course of

6 business.

7 ‘‘(d) An employee of the Panel delegated to make an

8 inspection or examination under section 10944 of this title

9 who knowingly discloses information acquired during that

10 inspection or examination, except as directed by the Panel,

11 a court, or a judge of that court, shall be fined not more

12 than $500, imprisoned for not more than 6 months, or both.

13 ‘‘(e) A person that knowingly discloses confidential

14 data made available to such person under section 10963 of

15 this title by a rail carrier providing transportation subject

16 to the jurisdiction of the Panel under this part shall be fined

17 not more than $50,000.

18 ‘‘§ 11705. Disobedience to subpoenas

19 ‘‘A person not obeying a subpoena or requirement of

20 the Panel to appear and testify or produce records shall

21 be fined at least $100 but not more than $5,000, imprisoned

22 for not more than one year, or both.
100

•HR 2539 RH

1 ‘‘§ 11706. General criminal penalty when specific pen2 alty not provided

3 ‘‘When another criminal penalty is not provided under

4 this chapter, a rail carrier providing transportation subject

5 to the jurisdiction of the Panel under this part, and when

6 that rail carrier is a corporation, a director or officer of

7 the corporation, or a receiver, trustee, lessee, or person act8 ing for or employed by the corporation that, alone or with

9 another person, willfully violates this part or an order pre10 scribed under this part, shall be fined not more than $5,000.

11 However, if the violation is for discrimination in rates

12 charged for transportation, the person may be imprisoned

13 for not more than 2 years in addition to being fined under

14 this section. A separate violation occurs each day a viola15 tion of section 11122 of this title continues.

16 ‘‘§ 11707. Punishment of corporation for violations

17 committed by certain individuals

18 ‘‘An act or omission that would be a violation of this

19 part if committed by a director, officer, receiver, trustee,

20 lessee, agent, or employee of a rail carrier providing trans21 portation or service subject to the jurisdiction of the Panel

22 under this part that is a corporation is also a violation

23 of this part by that corporation. The penalties of this chap24 ter apply to that violation. When acting in the scope of their

25 employment, the actions and omissions of individuals act26 ing for or employed by that rail carrier are considered to
101

•HR 2539 RH

1 be the actions and omissions of that rail carrier as well

2 as that individual.’’.

3 (b) CONFORMING AMENDMENT.—The item relating to

4 subtitle IV in the table of subtitles of title 49, United States

5 Code, is amended by striking ‘‘Commerce’’ and inserting

6 in lieu thereof ‘‘Transportation’’.

7 SEC. 103. MOTOR CARRIER, WATER CARRIER, AND FREIGHT

8 FORWARDER PROVISIONS.

9 Subtitle IV of title 49, United States Code, is further

10 amended by adding at the end the following:

11 ‘‘PART B—MOTOR CARRIERS, WATER CARRIERS,

12 BROKERS, AND FREIGHT FORWARDERS

13 ‘‘CHAPTER 131—GENERAL PROVISIONS

‘‘Sec.

‘‘13101. Transportation policy.

‘‘13102. Definitions.

‘‘13103. Remedies as cumulative.

14 ‘‘§ 13101. Transportation policy

15 ‘‘(a) IN GENERAL.—To ensure the development, coordi16 nation, and preservation of a transportation system that

17 meets the transportation needs of the United States, includ18 ing the United States Postal Service and national defense,

19 it is the policy of the United States Government to oversee

20 the modes of transportation and—

21 ‘‘(1) in overseeing those modes—

22 ‘‘(A) to recognize and preserve the inherent

23 advantage of each mode of transportation;
102

•HR 2539 RH

1 ‘‘(B) to promote safe, adequate, economical,

2 and efficient transportation;

3 ‘‘(C) to encourage sound economic condi4 tions in transportation, including sound eco5 nomic conditions among carriers;

6 ‘‘(D) to encourage the establishment and

7 maintenance of reasonable rates for transpor8 tation, without unreasonable discrimination or

9 unfair or destructive competitive practices;

10 ‘‘(E) to cooperate with each State and the

11 officials of each State on transportation matters;

12 and

13 ‘‘(F) to encourage fair wages and working

14 conditions in the transportation industry;

15 ‘‘(2) in overseeing transportation by motor car16 rier, to promote competitive and efficient transpor17 tation services in order to—

18 ‘‘(A) encourage fair competition, and rea19 sonable rates for transportation by motor car20 riers of property;

21 ‘‘(B) promote efficiency in the motor carrier

22 transportation system and to require fair and

23 expeditious decisions when required;

24 ‘‘(C) meet the needs of shippers, receivers,

25 passengers, and consumers;
103

•HR 2539 RH

1 ‘‘(D) allow a variety of quality and price

2 options to meet changing market demands and

3 the diverse requirements of the shipping and

4 traveling public;

5 ‘‘(E) allow the most productive use of equip6 ment and energy resources;

7 ‘‘(F) enable efficient and well-managed car8 riers to earn adequate profits, attract capital,

9 and maintain fair wages and working condi10 tions;

11 ‘‘(G) provide and maintain service to small

12 communities and small shippers and intrastate

13 bus services;

14 ‘‘(H) provide and maintain commuter bus

15 operations;

16 ‘‘(I) improve and maintain a sound, safe,

17 and competitive privately owned motor carrier

18 system;

19 ‘‘(J) promote greater participation by mi20 norities in the motor carrier system; and

21 ‘‘(K) promote intermodal transportation;

22 and

23 ‘‘(3) in overseeing transportation by motor car24 rier of passengers—
104

•HR 2539 RH

1 ‘‘(A) to cooperate with the States on trans2 portation matters for the purpose of encouraging

3 the States to exercise intrastate regulatory juris4 diction in accordance with the objectives of this

5 part;

6 ‘‘(B) to provide Federal procedures which

7 ensure that intrastate regulation is exercised in

8 accordance with this part; and

9 ‘‘(C) to ensure that Federal reform initia10 tives enacted by section 31138 and the Bus Reg11 ulatory Reform Act of 1982 are not nullified by

12 State regulatory actions.

13 ‘‘(b) ADMINISTRATION TO CARRY OUT POLICY.—This

14 part shall be administered and enforced to carry out the

15 policy of this section.

16 ‘‘§ 13102. Definitions

17 ‘‘In this part, the following definitions shall apply:

18 ‘‘(1) BROKER.—The term ‘broker’ means a per19 son, other than a motor carrier or an employee or

20 agent of a motor carrier, that as a principal or agent

21 sells, offers for sale, negotiates for, or holds itself out

22 by solicitation, advertisement, or otherwise as selling,

23 providing, or arranging for, transportation by motor

24 carrier for compensation.
105

•HR 2539 RH

1 ‘‘(2) CARRIER.—The term ‘carrier’ means a

2 motor carrier, a water carrier, and a freight for3 warder, and, for purposes of sections 13902, 13905,

4 and 13906, the term includes foreign motor carriers

5 and foreign motor private carriers.

6 ‘‘(3) CONTRACT CARRIAGE.—The term ‘contract

7 carriage’ means—

8 ‘‘(A) for transportation provided before the

9 effective date of this section, service provided

10 pursuant to a permit issued under section

11 10923, as in effect on the day before the effective

12 date of this section; and

13 ‘‘(B) for transportation provided on or after

14 such date, service provided under an agreement

15 entered into under section 14101(b).

16 ‘‘(4) CONTROL.—The term ‘control’, when refer17 ring to a relationship between persons, includes ac18 tual control, legal control, and the power to exercise

19 control, through or by—

20 ‘‘(A) common directors, officers, stockhold21 ers, a voting trust, or a holding or investment

22 company, or

23 ‘‘(B) any other means.

24 ‘‘(5) FOREIGN MOTOR CARRIER.—The term ‘for25 eign motor carrier’ means a person (including a
106

•HR 2539 RH

1 motor carrier of property but excluding a motor pri2 vate carrier)—

3 ‘‘(A)(i) that is domiciled in a contiguous

4 foreign country; or

5 ‘‘(ii) that is owned or controlled by persons

6 of a contiguous foreign country; and

7 ‘‘(B) in the case of a person that is not a

8 motor carrier of property, that provides inter9 state transportation of property by motor vehicle

10 under an agreement or contract entered into

11 with a motor carrier of property (other than a

12 motor private carrier or a motor carrier of prop13 erty described in subparagraph (A)).

14 ‘‘(6) FOREIGN MOTOR PRIVATE CARRIER.—The

15 term ‘foreign motor private carrier’ means a person

16 (including a motor private carrier but excluding a

17 motor carrier of property)—

18 ‘‘(A)(i) that is domiciled in a contiguous

19 foreign country; or

20 ‘‘(ii) that is owned or controlled by persons

21 of a contiguous foreign country; and

22 ‘‘(B) in the case of a person that is not a

23 motor private carrier, that provides interstate

24 transportation of property by motor vehicle

25 under an agreement or contract entered into
107

•HR 2539 RH

1 with a person (other than a motor carrier of

2 property or a motor private carrier described in

3 subparagraph (A)).

4 ‘‘(7) FREIGHT FORWARDER.—The term ‘freight

5 forwarder’ means a person holding itself out to the

6 general public (other than as a pipeline, rail, motor,

7 or water carrier) to provide transportation of prop8 erty for compensation and in the ordinary course of

9 its business—

10 ‘‘(A) assembles and consolidates, or provides

11 for assembling and consolidating, shipments and

12 performs or provides for break-bulk and distribu13 tion operations of the shipments;

14 ‘‘(B) assumes responsibility for the trans15 portation from the place of receipt to the place

16 of destination; and

17 ‘‘(C) uses for any part of the transportation

18 a carrier subject to jurisdiction under this part.

19 The term does not include a person using transpor20 tation of an air carrier subject to part A of subtitle

21 VII.

22 ‘‘(8) HIGHWAY.—The term ‘highway’ means a

23 road, highway, street, and way in a State.

24 ‘‘(9) HOUSEHOLD GOODS.—The term ‘household

25 goods’, as used in connection with transportation,
108

•HR 2539 RH

1 means personal effects and property used or to be

2 used in a dwelling, when a part of the equipment or

3 supply of such dwelling, and similar property if the

4 transportation of such effects or property is—

5 ‘‘(A) arranged and paid for by the house6 holder, including transportation of property

7 from a factory or store when the property is pur8 chased by the householder with intent to use in

9 his or her dwelling, or

10 ‘‘(B) arranged and paid for by another

11 party.

12 ‘‘(10) HOUSEHOLD GOODS FREIGHT FOR13 WARDER.—The term ‘household goods freight for14 warder’ means a freight forwarder of one or more of

15 the following items: household goods, unaccompanied

16 baggage, or used automobiles.

17 ‘‘(11) MOTOR CARRIER.—The term ‘motor car18 rier’ means a person providing motor vehicle trans19 portation for compensation.

20 ‘‘(12) MOTOR PRIVATE CARRIER.—The term

21 ‘motor private carrier’ means a person, other than a

22 motor carrier, transporting property by motor vehicle

23 when—

24 ‘‘(A) the transportation is as provided in

25 section 13501 of this title;
109

•HR 2539 RH

1 ‘‘(B) the person is the owner, lessee, or bail2 ee of the property being transported; and

3 ‘‘(C) the property is being transported for

4 sale, lease, rent, or bailment or to further a com5 mercial enterprise.

6 ‘‘(13) MOTOR VEHICLE.—The term ‘motor vehi7 cle’ means a vehicle, machine, tractor, trailer, or

8 semitrailer propelled or drawn by mechanical power

9 and used on a highway in transportation, or a com10 bination determined by the Secretary, but does not

11 include a vehicle, locomotive, or car operated only on

12 a rail, or a trolley bus operated by electric power

13 from a fixed overhead wire, and providing local pas14 senger transportation similar to street-railway serv15 ice.

16 ‘‘(14) NONCONTIGUOUS DOMESTIC TRADE.—The

17 term ‘noncontiguous domestic trade’ means transpor18 tation subject to jurisdiction under chapter 135 in19 volving traffic originating in or destined to Alaska,

20 Hawaii, or a territory or possession of the United

21 States.

22 ‘‘(15) PANEL.—The term ‘Panel’ means the

23 Transportation Adjudication Panel.

24 ‘‘(16) PERSON.—The term ‘person’, in addition

25 to its meaning under section 1 of title 1, includes a
110

•HR 2539 RH

1 trustee, receiver, assignee, or personal representative

2 of a person.

3 ‘‘(17) SECRETARY.—The term ‘Secretary’ means

4 the Secretary of Transportation.

5 ‘‘(18) STATE.—The term ‘State’ means the 50

6 States of the United States and the District of Colum7 bia.

8 ‘‘(19) TRANSPORTATION.—The term ‘transpor9 tation’ includes—

10 ‘‘(A) a motor vehicle, vessel, warehouse,

11 wharf, pier, dock, yard, property, facility, in12 strumentality, or equipment of any kind related

13 to the movement of passengers or property, or

14 both, regardless of ownership or an agreement

15 concerning use; and

16 ‘‘(B) services related to that movement, in17 cluding receipt, delivery, elevation, transfer in

18 transit, refrigeration, icing, ventilation, storage,

19 handling, and interchange of passengers and

20 property.

21 ‘‘(20) UNITED STATES.—The term ‘United

22 States’ means the States of the United States and the

23 District of Columbia.

24 ‘‘(21) VESSEL.—The term ‘vessel’ means a

25 watercraft or other artificial contrivance that is used,
111

•HR 2539 RH

1 is capable of being used, or is intended to be used, as

2 a means of transportation by water.

3 ‘‘(22) WATER CARRIER.—The term ‘water car4 rier’ means a person providing water transportation

5 for compensation.

6 ‘‘§ 13103. Remedies as cumulative

7 ‘‘Except as otherwise provided in this part, the rem8 edies provided under this part are in addition to remedies

9 existing under another law or common law.

10 ‘‘CHAPTER 133—ADMINISTRATIVE PROVISIONS

‘‘Sec.

‘‘13301. Powers.

‘‘13302. Intervention.

‘‘13303. Service of notice in proceedings.

‘‘13304. Service of process in court proceedings.

11 ‘‘§ 13301. Powers

12 ‘‘(a) GENERAL POWERS OF SECRETARY.—Except as

13 otherwise specified, the Secretary shall carry out this part.

14 Enumeration of a power of the Secretary in this part does

15 not exclude another power the Secretary may have in carry16 ing out this part. The Secretary may prescribe regulations

17 in carrying out this part.

18 ‘‘(b) OBTAINING INFORMATION.—The Secretary may

19 obtain from carriers providing, and brokers for, transpor20 tation and service subject to this part, and from persons

21 controlling, controlled by, or under common control with

22 those carriers or brokers to the extent that the business of

23 that person is related to the management of the business
112

•HR 2539 RH

1 of that carrier or broker, information the Secretary decides

2 is necessary to carry out this part.

3 ‘‘(c) SUBPOENA POWER.—

4 ‘‘(1) BY SECRETARY.—The Secretary may sub5 poena witnesses and records related to a proceeding

6 under this part from any place in the United States,

7 to the designated place of the proceeding. If a witness

8 disobeys a subpoena, the Secretary, or a party to a

9 proceeding under this part, may petition a court of

10 the United States to enforce that subpoena.

11 ‘‘(2) ENFORCEMENT.—The district courts of the

12 United States have jurisdiction to enforce a subpoena

13 issued under this section. Trial is in the district in

14 which the proceeding is conducted. The court may

15 punish a refusal to obey a subpoena as a contempt of

16 court.

17 ‘‘(d) TESTIMONY OF WITNESSES.—

18 ‘‘(1) PROCEDURE FOR TAKING TESTIMONY.—In a

19 proceeding under this part, the Secretary may take

20 the testimony of a witness by deposition and may

21 order the witness to produce records. A party to a

22 proceeding pending under this part may take the tes23 timony of a witness by deposition and may require

24 the witness to produce records at any time after a

25 proceeding is at issue on petition and answer.
113

•HR 2539 RH

1 ‘‘(2) SUBPOENA.—If a witness fails to be deposed

2 or to produce records under paragraph (1) of this

3 subsection, the Secretary may subpoena the witness to

4 take a deposition, produce the records, or both.

5 ‘‘(3) DEPOSITIONS.—A deposition may be taken

6 before a judge of a court of the United States, a

7 United States magistrate judge, a clerk of a district

8 court, or a chancellor, justice, or judge of a supreme

9 or superior court, mayor or chief magistrate of a city,

10 judge of a county court, or court of common pleas of

11 any State, or a notary public who is not counsel or

12 attorney of a party or interested in the proceeding.

13 ‘‘(4) NOTICE OF DEPOSITION.—Before taking a

14 deposition, reasonable notice must be given in writing

15 by the party or the attorney of that party proposing

16 to take a deposition to the opposing party or the at17 torney of record of that party, whoever is nearest. The

18 notice shall state the name of the witness and the time

19 and place of taking the deposition.

20 ‘‘(5) TRANSCRIPT.—The testimony of a person

21 deposed under this subsection shall be taken under

22 oath. The person taking the deposition shall prepare,

23 or cause to be prepared, a transcript of the testimony

24 taken. The transcript shall be subscribed by the depo25 nent.
114

•HR 2539 RH

1 ‘‘(6) FOREIGN COUNTRY.—The testimony of a

2 witness who is in a foreign country may be taken by

3 deposition before an officer or person designated by

4 the Secretary or agreed on by the parties by written

5 stipulation filed with the Secretary. A deposition

6 shall be filed with the Secretary promptly.

7 ‘‘(e) WITNESS FEES.—Each witness summoned before

8 the Secretary or whose deposition is taken under this section

9 and the individual taking the deposition are entitled to the

10 same fees and mileage paid for those services in the courts

11 of the United States.

12 ‘‘(f) POWERS OF PANEL.—For those provisions of this

13 part that are specified to be carried out by the Panel, the

14 Panel shall have the same powers as the Secretary has

15 under this section.

16 ‘‘§ 13302. Intervention

17 ‘‘Under regulations of the Secretary, reasonable notice

18 of, and an opportunity to intervene and participate in, a

19 proceeding under this part related to transportation subject

20 to jurisdiction under subchapter I of chapter 135 shall be

21 given to interested persons.

22 ‘‘§ 13303. Service of notice in proceedings

23 ‘‘(a) AGENTS FOR SERVICE OF PROCESS.—A carrier,

24 a broker, or a freight forwarder providing transportation

25 or service subject to jurisdiction under chapter 135 shall
115

•HR 2539 RH

1 designate, in writing, an agent by name and post office ad2 dress on whom service of notices in a proceeding before, and

3 of actions of, the Secretary may be made.

4 ‘‘(b) FILING WITH STATE.—A motor carrier providing

5 transportation under this part shall also file the designa6 tion with the authority of each State in which it operates

7 having jurisdiction to regulate transportation by motor ve8 hicle in intrastate commerce on the highways of that State.

9 The designation may be changed at any time in the same

10 manner as originally made.

11 ‘‘(c) NOTICE.—A notice to a motor carrier, freight for12 warder, or broker shall be served personally or by mail on

13 the motor carrier, freight forwarder, or broker or on its des14 ignated agent. Service by mail on the designated agent shall

15 be made at the address filed for the agent. When notice is

16 given by mail, the date of mailing is considered to be the

17 time when the notice is served. If a motor carrier, freight

18 forwarder, or broker does not have a designated agent, serv19 ice may be made by posting a copy of the notice at the

20 headquarters of the Department of Transportation.

21 ‘‘§ 13304. Service of process in court proceedings

22 ‘‘(a) DESIGNATION OF AGENT.—A motor carrier or

23 broker providing transportation subject to jurisdiction

24 under chapter 135 of this title, including a motor carrier

25 or broker operating within the United States while provid-
116

•HR 2539 RH

1 ing transportation between places in a foreign country or

2 between a place in one foreign country and a place in an3 other foreign country, shall designate an agent in each State

4 in which it operates by name and post office address on

5 whom process issued by a court with subject matter jurisdic6 tion may be served in an action brought against that car7 rier or broker. The designation shall be in writing and filed

8 with the Department of Transportation. If a designation

9 under this subsection is not made, service may be made on

10 any agent of the carrier or broker within that State.

11 ‘‘(b) CHANGE.—A designation under this section may

12 be changed at any time in the same manner as originally

13 made.

14 ‘‘CHAPTER 135—JURISDICTION

‘‘SUBCHAPTER I—MOTOR CARRIER TRANSPORTATION

‘‘Sec.

‘‘13501. General jurisdiction.

‘‘13502. Exempt transportation between Alaska and other States.

‘‘13503. Exempt motor vehicle transportation in terminal areas.

‘‘13504. Exempt motor carrier transportation entirely in one State.

‘‘13505. Transportation furthering a primary business.

‘‘13506. Miscellaneous motor carrier transportation exemptions.

‘‘13507. Mixed loads of regulated and unregulated property.

‘‘13508. Limited authority over cooperative associations.

‘‘SUBCHAPTER II—WATER CARRIER TRANSPORTATION

‘‘13521. General jurisdiction.

‘‘SUBCHAPTER III—FREIGHT FORWARDER SERVICE

‘‘13531. General jurisdiction.

‘‘SUBCHAPTER IV—AUTHORITY TO EXEMPT

‘‘13541. Authority to exempt transportation or services.
117

•HR 2539 RH

1 ‘‘SUBCHAPTER I—MOTOR CARRIER

2 TRANSPORTATION

3 ‘‘§ 13501. General jurisdiction

4 ‘‘The Secretary and the Panel shall have jurisdiction,

5 as specified in this part, over transportation by motor car6 rier and the procurement of that transportation, to the ex7 tent that passengers, property, or both, are transported by

8 motor carrier—

9 ‘‘(1) between a place in—

10 ‘‘(A) a State and a place in another State;

11 ‘‘(B) a State and another place in the same

12 State through another State;

13 ‘‘(C) the United States and a place in a ter14 ritory or possession of the United States to the

15 extent the transportation is in the United States;

16 ‘‘(D) the United States and another place

17 in the United States through a foreign country

18 to the extent the transportation is in the United

19 States; or

20 ‘‘(E) the United States and a place in a

21 foreign country to the extent the transportation

22 is in the United States; and

23 ‘‘(2) in a reservation under the exclusive juris24 diction of the United States or on a public highway.
118

•HR 2539 RH

1 ‘‘§ 13502. Exempt transportation between Alaska and

2 other States

3 ‘‘To the extent that transportation by a motor carrier

4 between a place in Alaska and a place in another State

5 under section 13501 is provided in a foreign country—

6 ‘‘(1) neither the Secretary nor the Panel has ju7 risdiction to impose a requirement over conduct of the

8 motor carrier in the foreign country conflicting with

9 a requirement of that country; but

10 ‘‘(2) the motor carrier, as a condition of provid11 ing transportation in the United States, shall comply,

12 with respect to all transportation provided between

13 Alaska and the other State, with the requirements of

14 this part related to rates and practices applicable to

15 the transportation.

16 ‘‘§ 13503. Exempt motor vehicle transportation in ter17 minal areas

18 ‘‘(a) TRANSPORTATION BY CARRIERS.—

19 ‘‘(1) IN GENERAL.—Neither the Secretary nor the

20 Panel has jurisdiction under this subchapter over

21 transportation by motor vehicle provided in a termi22 nal area when the transportation—

23 ‘‘(A) is a transfer, collection, or delivery;

24 ‘‘(B) is provided by—

25 ‘‘(i) a rail carrier subject to jurisdic26 tion under chapter 105;
119

•HR 2539 RH

1 ‘‘(ii) a water carrier subject to juris2 diction under subchapter II of this chapter;

3 or

4 ‘‘(iii) a freight forwarder subject to ju5 risdiction under subchapter III of this

6 chapter; and

7 ‘‘(C) is incidental to transportation or serv8 ice provided by the carrier or freight forwarder

9 that is subject to jurisdiction under chapter 105

10 of this title or under subchapter II or III of this

11 chapter.

12 ‘‘(2) APPLICABILITY OF OTHER PROVISIONS.—

13 Transportation exempt from jurisdiction under para14 graph (1) of this subsection is subject to jurisdiction

15 under chapter 105 when provided by such a rail car16 rier, under subchapter II of this chapter when pro17 vided by such a water carrier, and under subchapter

18 III of this chapter when provided by such a freight

19 forwarder.

20 ‘‘(b) TRANSPORTATION BY AGENT.—

21 ‘‘(1) IN GENERAL.—Except to the extent provided

22 by paragraph (2) of this subsection, neither the Sec23 retary nor the Panel has jurisdiction under this sub24 chapter over transportation by motor vehicle provided

25 in a terminal area when the transportation—
120

•HR 2539 RH

1 ‘‘(A) is a transfer, collection, or delivery;

2 and

3 ‘‘(B) is provided by a person as an agent

4 or under other arrangement for—

5 ‘‘(i) a rail carrier subject to jurisdic6 tion under chapter 105 of this title;

7 ‘‘(ii) a motor carrier subject to juris8 diction under this subchapter;

9 ‘‘(iii) a water carrier subject to juris10 diction under subchapter II of this chapter;

11 or

12 ‘‘(iv) a freight forwarder subject to ju13 risdiction under subchapter III of this

14 chapter.

15 ‘‘(2) TREATMENT OF TRANSPORTATION BY PRIN16 CIPAL.—Transportation exempt from jurisdiction

17 under paragraph (1) of this subsection is considered

18 transportation provided by the carrier or service pro19 vided by the freight forwarder for whom the transpor20 tation was provided and is subject to jurisdiction

21 under chapter 105 of this title when provided for such

22 a rail carrier, under this subchapter when provided

23 for such a motor carrier, under subchapter II of this

24 chapter when provided for such a water carrier, and
121

•HR 2539 RH

1 under subchapter III of this chapter when provided

2 for such a freight forwarder.

3 ‘‘§ 13504. Exempt motor carrier transportation en4 tirely in one State

5 ‘‘Neither the Secretary nor the Panel has jurisdiction

6 under this subchapter over transportation, except transpor7 tation of household goods, by a motor carrier operating sole8 ly within the State of Hawaii. The State of Hawaii may

9 regulate transportation exempt from jurisdiction under this

10 section and, to the extent provided by a motor carrier oper11 ating solely within the State of Hawaii, transportation ex12 empt under section 13503 of this title.

13 ‘‘§ 13505. Transportation furthering a primary busi14 ness

15 ‘‘(a) IN GENERAL.—Neither the Secretary nor the

16 Panel has jurisdiction under this part over the transpor17 tation of property by motor vehicle when—

18 ‘‘(1) the property is transported by a person en19 gaged in a business other than transportation; and

20 ‘‘(2) the transportation is within the scope of,

21 and furthers a primary business (other than trans22 portation) of the person.

23 ‘‘(b) CORPORATE FAMILIES.—

24 ‘‘(1) IN GENERAL.—Neither the Secretary nor the

25 Panel has jurisdiction under this part over transpor-
122

•HR 2539 RH

1 tation of property by motor vehicle for compensation

2 provided by a person who is a member of a corporate

3 family for other members of such corporate family.

4 ‘‘(2) DEFINITION.—In this section, ‘corporate

5 family’ means a group of corporations consisting of

6 a parent corporation and all subsidiaries in which

7 the parent corporation owns directly or indirectly a

8 100 percent interest.

9 ‘‘§ 13506. Miscellaneous motor carrier transportation

10 exemptions

11 ‘‘(a) IN GENERAL.—Neither the Secretary nor the

12 Panel has jurisdiction under this part over—

13 ‘‘(1) a motor vehicle transporting only school

14 children and teachers to or from school;

15 ‘‘(2) a motor vehicle providing taxicab service

16 and having a capacity of not more than 6 passengers

17 and not operated on a regular route or between speci18 fied places;

19 ‘‘(3) a motor vehicle owned or operated by or for

20 a hotel and only transporting hotel patrons between

21 the hotel and the local station of a common carrier;

22 ‘‘(4) a motor vehicle controlled and operated by

23 a farmer and transporting—

24 ‘‘(A) the farmer’s agricultural or horti25 cultural commodities and products; or
123

•HR 2539 RH

1 ‘‘(B) supplies to the farm of the farmer;

2 ‘‘(5) a motor vehicle controlled and operated by

3 a cooperative association (as defined by section 15(a)

4 of the Agricultural Marketing Act (12 U.S.C.

5 1141j(a)) or by a federation of cooperative associa6 tions if the federation has no greater power or pur7 poses than a cooperative association, except that if the

8 cooperative association or federation provides trans9 portation for compensation between a place in a State

10 and a place in another State, or between a place in

11 a State and another place in the same State through

12 another State—

13 ‘‘(A) for a nonmember that is not a farmer,

14 cooperative association, federation, or the United

15 States Government, the transportation (except

16 for transportation otherwise exempt under this

17 subchapter)—

18 ‘‘(i) shall be limited to transportation

19 incidental to the primary transportation

20 operation of the cooperative association or

21 federation and necessary for its effective

22 performance; and

23 ‘‘(ii) may not exceed in each fiscal

24 year 25 percent of the total transportation

25 of the cooperative association or federation
124

•HR 2539 RH

1 between those places, measured by tonnage;

2 and

3 ‘‘(B) the transportation for all nonmembers

4 may not exceed in each fiscal year, measured by

5 tonnage, the total transportation between those

6 places for the cooperative association or federa7 tion and its members during that fiscal year;

8 ‘‘(6) transportation by motor vehicle of—

9 ‘‘(A) ordinary livestock;

10 ‘‘(B) agricultural or horticultural commod11 ities (other than manufactured products thereof);

12 ‘‘(C) commodities listed as exempt in the

13 Commodity List incorporated in ruling num14 bered 107, March 19, 1958, Bureau of Motor

15 Carriers, Interstate Commerce Commission, other

16 than frozen fruits, frozen berries, frozen vegeta17 bles, cocoa beans, coffee beans, tea, bananas, or

18 hemp, or wool imported from a foreign country,

19 wool tops and noils, or wool waste (carded, spun,

20 woven, or knitted);

21 ‘‘(D) cooked or uncooked fish, whether

22 breaded or not, or frozen or fresh shellfish, or by23 products thereof not intended for human con24 sumption, other than fish or shellfish that have

25 been treated for preserving, such as canned,
125

•HR 2539 RH

1 smoked, pickled, spiced, corned, or kippered

2 products; and

3 ‘‘(E) livestock and poultry feed and agricul4 tural seeds and plants, if such products (exclud5 ing products otherwise exempt under this para6 graph) are transported to a site of agricultural

7 production or to a business enterprise engaged in

8 the sale to agricultural producers of goods used

9 in agricultural production;

10 ‘‘(7) a motor vehicle used only to distribute

11 newspapers;

12 ‘‘(8)(A) transportation of passengers by motor

13 vehicle incidental to transportation by aircraft;

14 ‘‘(B) transportation of property (including bag15 gage) by motor vehicle as part of a continuous move16 ment which, prior or subsequent to such part of the

17 continuous movement, has been or will be transported

18 by an air carrier or (to the extent so agreed by the

19 United States and approved by the Secretary) by a

20 foreign air carrier; or

21 ‘‘(C) transportation of property by motor vehicle

22 in lieu of transportation by aircraft because of ad23 verse weather conditions or mechanical failure of the

24 aircraft or other causes due to circumstances beyond

25 the control of the carrier or shipper;
126

•HR 2539 RH

1 ‘‘(9) the operation of a motor vehicle in a na2 tional park or national monument;

3 ‘‘(10) a motor vehicle carrying not more than 15

4 individuals in a single, daily roundtrip to commute

5 to and from work;

6 ‘‘(11) transportation of used pallets and used

7 empty shipping containers (including intermodal

8 cargo containers), and other used shipping devices

9 (other than containers or devices used in the trans10 portation of motor vehicles or parts of motor vehicles);

11 ‘‘(12) transportation of natural, crushed, vesicu12 lar rock to be used for decorative purposes;

13 ‘‘(13) transportation of wood chips;

14 ‘‘(14) brokers for motor carriers of passengers,

15 except as provided in section 13904(d)); or

16 ‘‘(15) transportation of broken, crushed, or pow17 dered glass.

18 ‘‘(b) EXEMPT UNLESS OTHERWISE NECESSARY.—Ex19 cept to the extent the Secretary or Panel, as applicable,

20 finds it necessary to exercise jurisdiction to carry out the

21 transportation policy of section 13101, neither the Sec22 retary nor the Panel has jurisdiction under this part over—

23 ‘‘(1) transportation provided entirely in a mu24 nicipality, in contiguous municipalities, or in a zone
127

•HR 2539 RH

1 that is adjacent to, and commercially a part of, the

2 municipality or municipalities, except—

3 ‘‘(A) when the transportation is under com4 mon control, management, or arrangement for a

5 continuous carriage or shipment to or from a

6 place outside the municipality, municipalities,

7 or zone; or

8 ‘‘(B) that in transporting passengers over a

9 route between a place in a State and a place in

10 another State, or between a place in a State and

11 another place in the same State through another

12 State, the transportation is exempt from juris13 diction under this part only if the motor carrier

14 operating the motor vehicle also is lawfully pro15 viding intrastate transportation of passengers

16 over the entire route under the laws of each State

17 through which the route runs;

18 ‘‘(2) transportation by motor vehicle provided

19 casually, occasionally, or reciprocally but not as a

20 regular occupation or business, except when a broker

21 or other person sells or offers for sale passenger trans22 portation provided by a person authorized to trans23 port passengers by motor vehicle under an applica24 tion pending, or registration issued, under this part;

25 or
128

•HR 2539 RH

1 ‘‘(3) the emergency towing of an accidentally

2 wrecked or disabled motor vehicle.

3 ‘‘§ 13507. Mixed loads of regulated and unregulated

4 property

5 ‘‘A motor carrier of property providing transportation

6 exempt from jurisdiction under paragraph (6), (8), (11),

7 (12), or (13) of section 13506(a) may transport property

8 under such paragraph in the same vehicle and at the same

9 time as property which the carrier is authorized to trans10 port under a registration issued under section 13902(a).

11 Such transportation shall not affect the unregulated status

12 of such exempt property or the regulated status of the prop13 erty which the carrier is authorized to transport under such

14 registration.

15 ‘‘§ 13508. Limited authority over cooperative associa16 tions

17 ‘‘(a) IN GENERAL.—Notwithstanding section

18 13506(a)(5), any cooperative association (as defined by sec19 tion 15(a) of the Agricultural Marketing Act (12 U.S.C.

20 1141j(a))) or a federation of cooperative associations shall

21 prepare and maintain such records relating to transpor22 tation provided by such association or federation, in such

23 form as the Secretary or the Panel may require by regula24 tion to carry out the provisions of such section 13506(a)(5).

25 The Secretary or the Panel, or an employee designated by
129

•HR 2539 RH

1 the Secretary or the Panel, may on demand and display

2 of proper credentials—

3 ‘‘(1) inspect and examine the lands, buildings,

4 and equipment of such association or federation; and

5 ‘‘(2) inspect and copy any record of such asso6 ciation or federation.

7 ‘‘(b) REPORTS.—Notwithstanding section 13506(a)(5),

8 the Secretary or the Panel may require a cooperative asso9 ciation or federation of cooperative associations described

10 in subsection (a) of this section to file reports with the Sec11 retary or the Panel containing answers to questions about

12 transportation provided by such association or federation.

13 ‘‘(c) ENFORCEMENT.—The Secretary or the Panel may

14 bring a civil action to enforce subsections (a) and (b) of

15 this section or a regulation or order of the Secretary or the

16 Panel issued under this section, when violated by a coopera17 tive association or federation of cooperative associations de18 scribed in subsection (a).

19 ‘‘(d) REPORTING PENALTIES.—

20 ‘‘(1) IN GENERAL.—A person required to make a

21 report to the Secretary or the Panel, answer a ques22 tion, or maintain a record under this section, or an

23 officer, agent, or employee of that person, that—

24 ‘‘(A) does not make the report;
130

•HR 2539 RH

1 ‘‘(B) does not specifically, completely, and

2 truthfully answer the question; or

3 ‘‘(C) does not maintain the record in the

4 form and manner prescribed under this section;

5 is liable to the United States Government for a civil

6 penalty of not more than $500 for each violation and

7 for not more than $250 for each additional day the

8 violation continues.

9 ‘‘(2) VENUE.—Trial in a civil action under

10 paragraph (1) shall be in the judicial district in

11 which—

12 ‘‘(A) the cooperative association or federa13 tion of cooperative associations has its principal

14 office;

15 ‘‘(B) the violation occurred; or

16 ‘‘(C) the offender is found.

17 Process in the action may be served in the judicial

18 district of which the offender is an inhabitant or in

19 which the offender may be found.

20 ‘‘(e) EVASION PENALTIES.—A person, or an officer,

21 employee, or agent of that person, that by any means know22 ingly and willfully tries to evade compliance with the provi23 sions of this section shall be fined at least $200 but not

24 more than $500 for the first violation and at least $250

25 but not more than $2,000 for a subsequent violation.
131

•HR 2539 RH

1 ‘‘(f) RECORDKEEPING PENALTIES.—A person required

2 to make a report, answer a question, or maintain a record

3 under this section, or an officer, agent, or employee of that

4 person, that—

5 ‘‘(1) willfully does not make that report;

6 ‘‘(2) willfully does not specifically, completely,

7 and truthfully answer that question in 30 days from

8 the date that the question is required to be answered;

9 ‘‘(3) willfully does not maintain that record in

10 the form and manner prescribed;

11 ‘‘(4) knowingly and willfully falsifies, destroys,

12 mutilates, or changes that report or record;

13 ‘‘(5) knowingly and willfully files a false report

14 or record under this section;

15 ‘‘(6) knowingly and willfully makes a false or

16 incomplete entry in that record about a business-re17 lated fact or transaction; or

18 ‘‘(7) knowingly and willfully maintains a record

19 in violation of a regulation or order issued under this

20 section;

21 shall be fined not more than $5,000.
132

•HR 2539 RH

1 ‘‘SUBCHAPTER II—WATER CARRIER

2 TRANSPORTATION

3 ‘‘§ 13521. General jurisdiction

4 ‘‘(a) GENERAL RULES.—The Secretary has jurisdic5 tion over transportation insofar as water carriers are con6 cerned—

7 ‘‘(1) by water carrier between a place in a State

8 and a place in another State, even if part of the

9 transportation is outside the United States;

10 ‘‘(2) by water carrier and motor carrier from a

11 place in a State to a place in another State; except

12 that if part of the transportation is outside the

13 United States, the Secretary only has jurisdiction

14 over that part of the transportation provided—

15 ‘‘(A) by motor carrier that is in the United

16 States; and

17 ‘‘(B) by water carrier that is from a place

18 in the United States to another place in the

19 United States; and

20 ‘‘(3) by water carrier or by water carrier and

21 motor carrier between a place in the United States

22 and a place outside the United States, to the extent

23 that—
133

•HR 2539 RH

1 ‘‘(A) when the transportation is by motor

2 carrier, the transportation is provided in the

3 United States;

4 ‘‘(B) when the transportation is by water

5 carrier to a place outside the United States, the

6 transportation is provided by water carrier from

7 a place in the United States to another place in

8 the United States before transshipment from a

9 place in the United States to a place outside the

10 United States; and

11 ‘‘(C) when the transportation is by water

12 carrier from a place outside the United States,

13 the transportation is provided by water carrier

14 from a place in the United States to another

15 place in the United States after transshipment to

16 a place in the United States from a place outside

17 the United States.

18 ‘‘(b) DEFINITIONS.—In this section, the terms ‘State’

19 and ‘United States’ include the territories and possessions

20 of the United States.

21 ‘‘SUBCHAPTER III—FREIGHT FORWARDER

22 SERVICE

23 ‘‘§ 13531. General jurisdiction

24 ‘‘(a) IN GENERAL.—The Secretary and the Panel have

25 jurisdiction, as specified in this part, over service that a
134

•HR 2539 RH

1 freight forwarder undertakes to provide, or is authorized or

2 required under this part to provide, to the extent transpor3 tation is provided in the United States and is between—

4 ‘‘(1) a place in a State and a place in another

5 State, even if part of the transportation is outside the

6 United States;

7 ‘‘(2) a place in a State and another place in the

8 same State through a place outside the State; or

9 ‘‘(3) a place in the United States and a place

10 outside the United States.

11 ‘‘(b) EXEMPTION OF CERTAIN AIR CARRIER SERV12 ICE.—Neither the Secretary nor the Panel has jurisdiction

13 under subsection (a) of this section over service undertaken

14 by a freight forwarder using transportation of an air car15 rier subject to part A of subtitle VII of this title.

16 ‘‘SUBCHAPTER IV—AUTHORITY TO EXEMPT

17 ‘‘§ 13541. Authority to exempt transportation or serv18 ices

19 ‘‘(a) IN GENERAL.—In any matter subject to jurisdic20 tion under this part, the Secretary or the Panel, as applica21 ble, shall exempt a person, class of persons, or a transaction

22 or service from the application of a provision of this part,

23 or use this exemption authority to modify the application

24 of a provision of this part as it applies to such person, class,
135

•HR 2539 RH

1 transaction, or service, when the Secretary or Panel finds

2 that the application of that provision in whole or in part—

3 ‘‘(1) is not necessary to carry out the transpor4 tation policy of section 13101;

5 ‘‘(2) is not needed to protect shippers from the

6 abuse of market power or that the transaction or serv7 ice is of limited scope; and

8 ‘‘(3) is in the public interest.

9 ‘‘(b) INITIATION OF PROCEEDING.—The Secretary or

10 Panel, as applicable, may, where appropriate, begin a pro11 ceeding under this section on the Secretary’s or Panel’s own

12 initiative or on application by an interested party.

13 ‘‘(c) PERIOD OF EXEMPTION.—The Secretary or Panel,

14 as applicable, may specify the period of time during which

15 an exemption granted under this section is effective.

16 ‘‘(d) REVOCATION.—The Secretary or Panel, as appli17 cable, may revoke an exemption, to the extent specified, on

18 finding that application of a provision of this part to the

19 person, class, or transportation is necessary to carry out

20 the transportation policy of section 13101.

21 ‘‘(e) LIMITATIONS.—The exemption authority under

22 this section may not be used to relieve a person from the

23 application of, and compliance with, any law, rule, regula24 tion, standard, or order pertaining to cargo loss and dam-
136

•HR 2539 RH

1 age, insurance, safety fitness, or activities approved under

2 section 13703 or not terminated under section 13907(d)(2).

3 ‘‘CHAPTER 137—RATES AND THROUGH ROUTES

‘‘Sec.

‘‘13701. Requirements for reasonable rates, classifications, through routes, rules,

and practices for certain transportation.

‘‘13702. Tariff requirement for certain transportation.

‘‘13703. Certain collective activities; exemption from antitrust laws.

‘‘13704. Household goods rates—estimates; guarantees of service.

‘‘13705. Requirements for through routes among motor carriers of passengers.

‘‘13706. Liability for payment of rates.

‘‘13707. Billing and collecting practices.

‘‘13708. Procedures for resolving claims involving unfiled, negotiated transportation rates.

‘‘13709. Additional motor carrier undercharge provisions.

‘‘13710. Alternative procedure for resolving undercharge disputes.

‘‘13711. Government traffic.

‘‘13712. Food and grocery transportation.

4 ‘‘§ 13701. Requirements for reasonable rates, classi5 fications, through routes, rules, and prac6 tices for certain transportation

7 ‘‘(a) REASONABLENESS.—

8 ‘‘(1) CERTAIN HOUSEHOLD GOODS TRANSPOR9 TATION; JOINT RATES INVOLVING WATER TRANSPOR10 TATION.—A rate, classification, rule, or practice re11 lated to transportation or service provided by a car12 rier subject to jurisdiction under chapter 135 for

13 transportation or service involving—

14 ‘‘(A) a movement of household goods de15 scribed in section 13102(9)(A), or

16 ‘‘(B) a rate for a movement by or with a

17 water carrier in noncontiguous domestic trade,

18 must be reasonable.
137

•HR 2539 RH

1 ‘‘(2) THROUGH ROUTES AND DIVISIONS OF JOINT

2 RATES.—Through routes and divisions of joint rates

3 for such transportation or service must be reasonable.

4 ‘‘(b) PRESCRIPTION BY PANEL FOR VIOLATIONS.—

5 When the Panel finds it necessary to stop or prevent a viola6 tion of subsection (a), the Panel shall prescribe the rate,

7 classification, rule, practice, through route, or division of

8 joint rates to be applied for such transportation or service.

9 ‘‘(c) ZONE OF REASONABLENESS.—

10 ‘‘(1) IN GENERAL.—For purposes of this section,

11 a rate or division of a carrier for service in non12 contiguous domestic trade is reasonable if the aggre13 gate of increases and decreases in any such rate or di14 vision is not more than 10 percent above, or more

15 than 10 percent below, the rate or division in effect

16 1 year before the effective date of the proposed rate or

17 division.

18 ‘‘(2) ADJUSTMENTS TO THE ZONE.—The percent19 age specified in paragraph (1) shall be increased or

20 decreased, as the case may be, by the percentage

21 change in the Producers Price Index, as published by

22 the Department of Labor, that has occurred during

23 the most recent 1-year period before the date the rate

24 or division in question first took effect.
138

•HR 2539 RH

1 ‘‘§ 13702. Tariff requirement for certain transpor2 tation

3 ‘‘(a) IN GENERAL.—A carrier subject to jurisdiction

4 under chapter 135 may provide transportation or service

5 that is—

6 ‘‘(1) in noncontiguous domestic trade, except

7 with regard to bulk cargo, forest products, recycled

8 metal scrap, waste paper, and paper waste; or

9 ‘‘(2) for movement of household goods described

10 in section 13102(9)(A);

11 only if the rate for such transportation or service is con12 tained in a tariff that is in effect under this section. The

13 carrier may not charge or receive a different compensation

14 for the transportation or service than the rate specified in

15 the tariff, whether by returning a part of that rate to a

16 person, giving a person a privilege, allowing the use of a

17 facility that affects the value of that transportation or serv18 ice, or another device. A rate contained in a tariff shall

19 be stated in money of the United States.

20 ‘‘(b) TARIFF REQUIREMENTS FOR NONCONTIGUOUS

21 DOMESTIC TRADE.—

22 ‘‘(1) FILING.—A carrier providing transpor23 tation or service described in subsection (a)(1) shall

24 publish and file with the Panel tariffs containing the

25 rates established for such transportation or service.

26 The carriers shall keep such tariffs available for pub-
139

•HR 2539 RH

1 lic inspection. The Panel shall prescribe the form and

2 manner of publishing, filing, and keeping tariffs

3 available for public inspection under this subsection.

4 ‘‘(2) CONTENTS.—The Panel may prescribe any

5 specific information and charges to be identified in a

6 tariff, but at a minimum tariffs must identify plain7 ly—

8 ‘‘(A) the carriers that are parties to it;

9 ‘‘(B) the places between which property will

10 be transported;

11 ‘‘(C) terminal charges if a carrier provides

12 transportation or service subject to jurisdiction

13 under subchapter III of chapter 135;

14 ‘‘(D) privileges given and facilities allowed;

15 and

16 ‘‘(E) any rules that change, affect, or deter17 mine any part of the published rate.

18 ‘‘(3) INLAND DIVISIONS.—A carrier providing

19 transportation or service described in subsection

20 (a)(1) under a joint rate for a through movement

21 shall not be required to state separately or otherwise

22 reveal in tariff filings the inland divisions of that

23 through rate.
140

•HR 2539 RH

1 ‘‘(4) TIME-VOLUME RATES.—Rates in tariffs

2 filed under this subsection may vary with the volume

3 of cargo offered over a specified period of time.

4 ‘‘(5) CHANGES.—The Panel may permit carriers

5 to change rates, classifications, rules, and practices

6 without filing complete tariffs under this subsection

7 that cover matter that is not being changed when the

8 Panel finds that action to be consistent with the pub9 lic interest. Those carriers may either—

10 ‘‘(A) publish new tariffs that incorporate

11 changes, or

12 ‘‘(B) plainly indicate the proposed changes

13 in the tariffs then in effect and kept open for

14 public inspection.

15 ‘‘(c) TARIFF REQUIREMENTS FOR HOUSEHOLD GOODS

16 CARRIERS.—

17 ‘‘(1) IN GENERAL.—A carrier providing trans18 portation described in subsection (a)(2) shall main19 tain rates and related rules and practices in a tariff.

20 The tariff must be submitted to the Panel for inspec21 tion and be made available for inspection by shippers

22 upon reasonable request.

23 ‘‘(2) NOTICE OF AVAILABILITY.—A carrier that

24 maintains a tariff under this subsection may not en25 force the provisions of the tariff unless the carrier has
141

•HR 2539 RH

1 given notice that the tariff is available for inspection

2 in its bill of lading or by other actual notice to indi3 viduals whose shipments are subject to the tariff.

4 ‘‘(3) REQUIREMENTS.—A carrier that maintains

5 a tariff under this subsection is bound by the tariff

6 except as otherwise provided in this part. A tariff

7 that does not comply with this subsection may not be

8 enforced against any individual shipper.

9 ‘‘(4) INCORPORATION BY REFERENCE.—A carrier

10 may incorporate by reference the rates, terms, and

11 other conditions in a tariff in agreements covering the

12 transportation of households described in section

13 13102(9)(B).

14 ‘‘(5) COMPLAINTS.—A complaint that a rate or

15 related rule or practice maintained in a tariff under

16 this subsection violates section 13701(a) may be sub17 mitted to the Panel for resolution.

18 ‘‘(d) INVALIDATION.—The Panel may invalidate a tar19 iff prepared by a carrier or carriers under this section if

20 that tariff violates this section or a regulation of the Panel

21 carrying out this section.

22 ‘‘§ 13703. Certain collective activities; exemption from

23 antitrust laws

24 ‘‘(a) AGREEMENTS.—
142

•HR 2539 RH

1 ‘‘(1) AUTHORITY TO ENTER.—A motor carrier

2 providing transportation or service subject to jurisdic3 tion under chapter 135 may enter into an agreement

4 with one or more such carriers to establish—

5 ‘‘(A) through routes and joint rates;

6 ‘‘(B) rates for the transportation of house7 hold goods described in section 13102(9)(A);

8 ‘‘(C) classifications;

9 ‘‘(D) mileage guides;

10 ‘‘(E) rules;

11 ‘‘(F) divisions;

12 ‘‘(G) rate adjustments of general applica13 tion based on industry average carrier costs (so

14 long as there is no discussion of individual mar15 kets or particular single-line rates); or

16 ‘‘(H) procedures for joint consideration, ini17 tiation, or establishment of matters described in

18 subparagraphs (A) through (G).

19 ‘‘(2) SUBMISSION OF AGREEMENT TO PANEL; AP20 PROVAL.—An agreement entered into under subsection

21 (a) may be submitted by any carrier or carriers that

22 are parties to such agreement to the Panel for ap23 proval and may be approved by the Panel only if it

24 finds that such agreement is in the public interest.
143

•HR 2539 RH

1 ‘‘(3) CONDITIONS.—The Panel may require com2 pliance with reasonable conditions consistent with

3 this part to assure that the agreement furthers the

4 transportation policy set forth in section 13101.

5 ‘‘(4) INVESTIGATIONS.—The Panel may suspend

6 and investigate the reasonableness of any classifica7 tion or rate adjustment of general application made

8 pursuant to an agreement under this section.

9 ‘‘(5) EFFECT OF APPROVAL.—If the Panel ap10 proves the agreement or renews approval of the agree11 ment, it may be made and carried out under its

12 terms and under the conditions required by the Panel,

13 and the antitrust laws, as defined in the first section

14 of the Clayton Act (15 U.S.C. 12), do not apply to

15 parties and other persons with respect to making or

16 carrying out the agreement.

17 ‘‘(b) RECORDS.—The Panel may require an organiza18 tion established or continued under an agreement approved

19 under this section to maintain records and submit reports.

20 The Panel, or its delegate, may inspect a record maintained

21 under this section, or monitor any organization’s compli22 ance with this section.

23 ‘‘(c) REVIEW.—The Panel may review an agreement

24 approved under this section, on its own initiative or on re25 quest, and shall change the conditions of approval or termi-
144

•HR 2539 RH

1 nate it when necessary to protect the public interest. Action

2 of the Panel under this section—

3 ‘‘(1) approving an agreement,

4 ‘‘(2) denying, ending, or changing approval,

5 ‘‘(3) prescribing the conditions on which ap6 proval is granted, or

7 ‘‘(4) changing those conditions,

8 has effect only as related to application of the antitrust laws

9 referred to in subsection (a).

10 ‘‘(d) EXPIRATION OF APPROVALS; RENEWALS.—Sub11 ject to subsection (c), approval of an agreement under sub12 section (a) shall expire 3 years after the date of approval

13 unless renewed under this subsection. The approval may be

14 renewed upon request of the parties to the agreement if such

15 parties resubmit the agreement to the Panel, the agreement

16 is unchanged, and the Panel approves such renewal. The

17 Panel shall approve the renewal unless it finds that the re18 newal is not in the public interest.

19 ‘‘(e) EXISTING AGREEMENTS.—Agreements approved

20 under former section 10706(b) and in effect on the day be21 fore the effective date of this section shall be treated for pur22 poses of this section as approved by the Panel under this

23 section beginning on such effective date.

24 ‘‘(f) LIMITATIONS ON STATUTORY CONSTRUCTION.—
145

•HR 2539 RH

1 ‘‘(1) UNDERCHARGE CLAIMS.—Nothing in this

2 section shall serve as a basis for any undercharge

3 claim.

4 ‘‘(2) OBLIGATION OF SHIPPER.—Nothing in this

5 title, the ICC Termination Act of 1995, or any

6 amendments or repeals made by such Act shall be

7 construed as creating any obligation for a shipper

8 based solely on a classification that was on file with

9 the Interstate Commerce Commission or elsewhere on

10 the day before the effective date of this section.

11 ‘‘(g) MILEAGE RATE LIMITATION.—No carrier subject

12 to jurisdiction under subchapter I or III of chapter 135

13 may enforce collection of its mileage rates unless such car14 rier—

15 ‘‘(1) uses an independent publication of mileage

16 (other than a publication referred to in paragraph

17 (2)) which can be examined by any interested person

18 upon reasonable request; or

19 ‘‘(2) is a participant in a publication of mile20 ages formulated under an agreement approved under

21 this section.

22 ‘‘(h) SINGLE LINE RATE DEFINED.—In this section,

23 the term ‘single line rate’ means a rate, charge, or allowance

24 proposed by a single motor carrier that is applicable only
146

•HR 2539 RH

1 over its line and for which the transportation can be pro2 vided by that carrier.

3 ‘‘§ 13704. Household goods rates—estimates; guaran4 tees of service

5 ‘‘(a) IN GENERAL.—

6 ‘‘(1) AUTHORITY.—Subject to the provisions of

7 paragraph (2) of this subsection, a motor carrier pro8 viding transportation of household goods subject to ju9 risdiction under subchapter I of chapter 135 may es10 tablish a rate for the transportation of household

11 goods which is based on the carrier’s written, binding

12 estimate of charges for providing such transportation.

13 ‘‘(2) NONPREFERENTIAL; NONPREDATORY.—Any

14 rate established under this subsection must be avail15 able on a nonpreferential basis to shippers and must

16 not result in charges to shippers which are predatory.

17 ‘‘(b) RATES FOR GUARANTEED SERVICE.—

18 ‘‘(1) AUTHORITY.—Subject to the provisions of

19 paragraph (2) of this subsection, a motor carrier pro20 viding transportation of household goods subject to ju21 risdiction under subchapter I of chapter 135 may es22 tablish rates for the transportation of household goods

23 which guarantee that the carrier will pick up and de24 liver such household goods at the times specified in

25 the contract for such services and provide a penalty
147

•HR 2539 RH

1 or per diem payment in the event the carrier fails to

2 pick up or deliver such household goods at the speci3 fied time. The charges, if any, for such guarantee and

4 penalty provision may vary to reflect one or more op5 tions available to meet a particular shipper’s needs.

6 ‘‘(2) AUTHORITY OF SECRETARY TO REQUIRE

7 NONGUARANTEED SERVICE RATES.—Before a carrier

8 may establish a rate for any service under paragraph

9 (1) of this subsection, the Secretary may require such

10 carrier to have in effect and keep in effect, during

11 any period such rate is in effect under paragraph (1),

12 a rate for such service which does not guarantee the

13 pick up and delivery of household goods at the times

14 specified in the contract for such services and which

15 does not provide a penalty or per diem payment in

16 the event the carrier fails to pick up or deliver house17 hold goods at the specified time.

18 ‘‘§ 13705. Requirements for through routes among

19 motor carriers of passengers

20 ‘‘(a) ESTABLISHMENT; REASONABLENESS.—A motor

21 carrier providing transportation of passengers subject to ju22 risdiction under subchapter I of chapter 135 shall establish

23 through routes with other carriers of the same type and

24 shall establish individual and joint rates applicable to

25 them. Such through route must be reasonable.
148

•HR 2539 RH

1 ‘‘(b) PRESCRIBED BY PANEL.—When the Panel finds

2 it necessary to enforce the requirements of this section, the

3 Panel may prescribe through routes and the conditions

4 under which those routes must be operated for motor car5 riers providing transportation of passengers subject to juris6 diction under subchapter I of chapter 135.

7 ‘‘§ 13706. Liability for payment of rates

8 ‘‘(a) LIABILITY OF CONSIGNEE.—Liability for pay9 ment of rates for transportation for a shipment of property

10 by a shipper or consignor to a consignee other than the ship11 per or consignor, is determined under this section when the

12 transportation is provided by motor carrier under this

13 part. When the shipper or consignor instructs the carrier

14 transporting the property to deliver it to a consignee that

15 is an agent only, not having beneficial title to the property,

16 the consignee is liable for rates billed at the time of delivery

17 for which the consignee is otherwise liable, but not for addi18 tional rates that may be found to be due after delivery if

19 the consignee gives written notice to the delivering carrier

20 before delivery of the property—

21 ‘‘(1) of the agency and absence of beneficial title;

22 and

23 ‘‘(2) of the name and address of the beneficial

24 owner of the property if it is reconsigned or diverted
149

•HR 2539 RH

1 to a place other than the place specified in the origi2 nal bill of lading.

3 ‘‘(b) LIABILITY OF BENEFICIAL OWNER.—When the

4 consignee is liable only for rates billed at the time of deliv5 ery under subsection (a), the shipper or consignor, or, if

6 the property is reconsigned or diverted, the beneficial owner

7 is liable for those additional rates regardless of the bill of

8 the lading or contract under which the property was trans9 ported. The beneficial owner is liable for all rates when the

10 property is reconsigned or diverted by an agent but is re11 fused or abandoned at its ultimate destination if the agent

12 gave the carrier in the reconsignment or diversion order a

13 notice of agency and the name and address of the beneficial

14 owner. A consignee giving the carrier erroneous information

15 about the identity of the beneficial owner of the property

16 is liable for the additional rates.

17 ‘‘§ 13707. Billing and collecting practices

18 ‘‘(a) TIMING.—A motor carrier subject to jurisdiction

19 under subchapter I of chapter 135 shall disclose, when a

20 document is presented or electronically transmitted for pay21 ment to the person responsible directly to the motor carrier

22 for payment or agent of such responsible person, the actual

23 rates, charges, or allowances for any transportation service.

24 ‘‘(b) FALSE OR MISLEADING INFORMATION.—No per25 son may cause a motor carrier to present false or mislead-
150

•HR 2539 RH

1 ing information on a document about the actual rate,

2 charge, or allowance to any party to the transaction.

3 ‘‘(c) ALLOWANCES FOR SERVICES.—When the actual

4 rate, charge, or allowance is dependent upon the perform5 ance of a service by a party to the transportation arrange6 ment, such as tendering a volume of freight over a stated

7 period of time, the motor carrier shall indicate in any docu8 ment presented for payment to the person responsible di9 rectly to the motor carrier that a reduction, allowance, or

10 other adjustment may apply.

11 ‘‘§ 13708. Procedures for resolving claims involving

12 unfiled, negotiated transportation rates

13 ‘‘(a) TRANSPORTATION PROVIDED BEFORE EFFECTIVE

14 DATE.—

15 ‘‘(1) IN GENERAL.—When a claim is made by a

16 motor carrier of property (other than a household

17 goods carrier) providing transportation subject to ju18 risdiction under subchapter II of chapter 105, as in

19 effect on the day before the effective date of this sec20 tion, by a freight forwarder (other than a household

21 goods freight forwarder), or by a party representing

22 such a carrier or freight forwarder regarding the col23 lection of rates or charges for such transportation in

24 addition to those originally billed and collected by the

25 carrier or freight forwarder for such transportation,
151

•HR 2539 RH

1 the person against whom the claim is made may elect

2 to satisfy the claim under the provisions of subsection

3 (b), (c), or (d), upon showing that—

4 ‘‘(A) the carrier or freight forwarder is no

5 longer transporting property or is transporting

6 property for the purpose of avoiding the applica7 tion of this section; and

8 ‘‘(B) with respect to the claim—

9 ‘‘(i) the person was offered a transpor10 tation rate by the carrier or freight for11 warder other than that legally on file with

12 the Interstate Commerce Commission for the

13 transportation service;

14 ‘‘(ii) the person tendered freight to the

15 carrier or freight forwarder in reasonable

16 reliance upon the offered transportation

17 rate;

18 ‘‘(iii) the carrier or freight forwarder

19 did not properly or timely file with the

20 Interstate Commerce Commission a tariff

21 providing for such transportation rate or

22 failed to enter into an agreement for con23 tract carriage;
152

•HR 2539 RH

1 ‘‘(iv) such transportation rate was

2 billed and collected by the carrier or freight

3 forwarder; and

4 ‘‘(v) the carrier or freight forwarder

5 demands additional payment of a higher

6 rate filed in a tariff.

7 ‘‘(2) FORUM FOR RESOLUTION OF SHOWINGS.—

8 If there is a dispute as to the showing under para9 graph (1)(A), such dispute shall be resolved by the

10 court in which the claim is brought. If there is a dis11 pute as to the showing under paragraph (1)(B), such

12 dispute shall be resolved by the Panel. Pending the

13 resolution of any such dispute, the person shall not

14 have to pay any additional compensation to the car15 rier or freight forwarder.

16 ‘‘(3) EFFECT OF SATISFACTION OF CLAIMS

17 UNDER DISPUTE RESOLUTION PROCEDURE.—Satisfac18 tion of a claim under subsection (b), (c), or (d) shall

19 be binding on the parties, and the parties shall not

20 be subject to chapter 119, as in effect on the day be21 fore the effective date of this section.

22 ‘‘(b) CLAIMS INVOLVING SHIPMENTS WEIGHING 10,000

23 POUNDS OR LESS.—A person from whom the additional le24 gally applicable and effective tariff rate or charges are

25 sought may elect to satisfy the claim, if the shipments each
153

•HR 2539 RH

1 weighed 10,000 pounds or less, by payment of 20 percent

2 of the difference between the carrier’s applicable and effec3 tive tariff rate and the rate originally billed and paid. In

4 the event that a dispute arises as to the rate that was legally

5 applicable to the shipment, such dispute shall be resolved

6 by the Panel .

7 ‘‘(c) CLAIMS INVOLVING SHIPMENTS WEIGHING MORE

8 THAN 10,000 POUNDS.—A person from whom the addi9 tional legally applicable and effective tariff rate or charges

10 are sought may elect to satisfy the claim, if the shipments

11 each weighed more than 10,000 pounds, by payment of 15

12 percent of the difference between the carrier’s applicable and

13 effective tariff rate and the rate originally billed and paid.

14 In the event that a dispute arises as to the rate that was

15 legally applicable to the shipment, such dispute shall be re16 solved by the Panel.

17 ‘‘(d) CLAIMS INVOLVING PUBLIC WAREHOUSEMEN.—

18 Notwithstanding subsections (b) and (c), a person from

19 whom the additional legally applicable and effective tariff

20 rate or charges are sought may elect to satisfy the claim

21 by payment of 5 percent of the difference between the car22 rier’s applicable and effective tariff rate and the rate origi23 nally billed and paid if such person is a public warehouse24 man. In the event that a dispute arises as to the rate that
154

•HR 2539 RH

1 was legally applicable to the shipment, such dispute shall

2 be resolved by the Panel.

3 ‘‘(e) EFFECTS OF ELECTION.—When a person from

4 whom additional legally applicable freight rates or charges

5 are sought does not elect to use the provisions of subsections

6 (b), (c) or (d), the person may pursue all rights and rem7 edies existing under this title on the day before the effective

8 date of this section.

9 ‘‘(f) STAY OF ADDITIONAL COMPENSATION.—When a

10 person proceeds under this section to challenge the reason11 ableness of the legally applicable freight rate or charges

12 being claimed by a carrier or freight forwarder in addition

13 to those already billed and collected, the person shall not

14 have to pay any additional compensation to the carrier or

15 freight forwarder until the Panel has made a determination

16 as to the reasonableness of the challenged rate as applied

17 to the freight of the person against whom the claim is made.

18 ‘‘(g) NOTIFICATION OF ELECTION.—

19 ‘‘(1) GENERAL RULE.—A person must notify the

20 carrier or freight forwarder as to its election to pro21 ceed under subsection (b), (c), or (d). Except as pro22 vided in paragraphs (2), (3), and (4), such election

23 may be made at any time.

24 ‘‘(2) DEMANDS FOR PAYMENT INITIALLY MADE

25 AFTER DECEMBER 3, 1993.—If the carrier or freight
155

•HR 2539 RH

1 forwarder or party representing such carrier or

2 freight forwarder initially demands the payment of

3 additional freight charges after December 3, 1993,

4 and notifies the person from whom additional freight

5 charges are sought of the provisions of subsections (a)

6 through (f) at the time of the making of such initial

7 demand, the election must be made not later than the

8 later of—

9 ‘‘(A) the 60th day following the filing of an

10 answer to a suit for the collection of such addi11 tional legally applicable freight rate or charges,

12 or

13 ‘‘(B) March 5, 1994.

14 ‘‘(3) PENDING SUITS FOR COLLECTION MADE BE15 FORE DECEMBER 4, 1993.—If the carrier or freight for16 warder or party representing such carrier or freight

17 forwarder has filed, before December 4, 1993, a suit

18 for the collection of additional freight charges and no19 tifies the person from whom additional freight charges

20 are sought of the provisions of subsections (a) through

21 (f), the election must be made not later than the 90th

22 day following the date on which such notification is

23 received.

24 ‘‘(4) DEMANDS FOR PAYMENT MADE BEFORE DE25 CEMBER 4, 1993.—If the carrier or freight forwarder
156

•HR 2539 RH

1 or party representing such carrier or freight for2 warder has demanded the payment of additional

3 freight charges, and has not filed a suit for the collec4 tion of such additional freight charges, before Decem5 ber 4, 1993, and notifies the person from whom addi6 tional freight charges are sought of the provisions of

7 subsections (a) through (f), the election must be made

8 not later than the later of—

9 ‘‘(A) the 60th day following the filing of an

10 answer to a suit for the collection of such addi11 tional legally applicable freight rate or charges,

12 or

13 ‘‘(B) March 5, 1994.

14 ‘‘(h) CLAIMS INVOLVING SMALL-BUSINESS CONCERNS,

15 CHARITABLE ORGANIZATIONS, AND RECYCLABLE MATE16 RIALS.—

17 ‘‘(1) IN GENERAL.—Notwithstanding subsections

18 (b), (c), and (d), a person from whom the additional

19 legally applicable and effective tariff rate or charges

20 are sought shall not be liable for the difference be21 tween the carrier’s applicable and effective tariff rate

22 and the rate originally billed and paid—

23 ‘‘(A) if such person qualifies as a small24 business concern under the Small Business Act

25 (15 U.S.C. 631 et seq.),
157

•HR 2539 RH

1 ‘‘(B) if such person is an organization

2 which is described in section 501(c)(3) of the In3 ternal Revenue Code of 1986 and exempt from

4 tax under section 501(a) of such Code, or

5 ‘‘(C) if the cargo involved in the claim is re6 cyclable materials.

7 ‘‘(2) RECYCLABLE MATERIALS DEFINED.—In this

8 subsection, the term ‘recyclable materials’ means

9 waste products for recycling or reuse in the further10 ance of recognized pollution control programs.

11 ‘‘§ 13709. Additional motor carrier undercharge provi12 sions

13 ‘‘(a) MISCELLANEOUS PROVISIONS.—

14 ‘‘(1) INFORMATION RELATING TO BASIS OF

15 RATE.—A motor carrier of property (other than a

16 motor carrier providing transportation in noncontig17 uous domestic trade) shall provide to the shipper, on

18 request of the shipper, a written or electronic copy of

19 the rate, classification, rules, and practices, upon

20 which any rate agreed to between the shipper and

21 carrier may have been based.

22 ‘‘(2) REASONABLENESS OF RATES; COLLECTING

23 ADDITIONAL CHARGES.—With respect to transpor24 tation provided before the effective date of this section,

25 when the applicability or reasonableness of the rates
158

•HR 2539 RH

1 and related provisions billed by a motor carrier is

2 challenged by the person paying the freight charges,

3 the Panel shall determine whether such rates and pro4 visions are reasonable or applicable based on the

5 record before it. In those cases where a motor carrier

6 (other than a motor carrier providing transportation

7 of household goods or in noncontiguous domestic

8 trade) seeks to collect charges in addition to those

9 billed and collected which are contested by the payor,

10 the carrier may request that the Panel determine

11 whether any additional charges over those billed and

12 collected must be paid. A carrier must issue any bill

13 for charges in addition to those originally billed with14 in 180 days of the receipt of the original bill in order

15 to have the right to collect such charges.

16 ‘‘(3) CHARGES BEFORE EFFECTIVE DATE.—With

17 respect to transportation provided before the effective

18 date of this section, if a shipper seeks to contest the

19 charges originally billed or additional charges subse20 quently billed, the shipper may request that the Panel

21 determine whether the charges billed must be paid. A

22 shipper must contest the original bill or subsequent

23 bill within 180 days of receipt of the bill in order to

24 have the right to contest such charges.
159

•HR 2539 RH

1 ‘‘(4) VOIDING OF CERTAIN TARIFFS.—Any tariff

2 on file with the Interstate Commerce Commission on

3 August 26, 1994, and not required to be filed after

4 that date is null and void beginning on that date.

5 Any tariff on file with the Interstate Commerce Com6 mission on the effective date of this section and not

7 required to be filed after that date is null and void

8 beginning on that date.

9 ‘‘(b) RESOLUTION OF DISPUTES OVER STATUS OF

10 COMMON CARRIER OR CONTRACT CARRIER.—If a motor

11 carrier (other than a motor carrier providing transpor12 tation of household goods) that was subject to jurisdiction

13 under subchapter II of chapter 105, as in effect on the day

14 before the effective date of this section, and that had author15 ity to provide transportation as both a motor common car16 rier and a motor contract carrier and a dispute arises as

17 to whether certain transportation that was provided prior

18 to the effective date of this section was provided in its com19 mon carrier or contract carrier capacity and the parties

20 are not able to resolve the dispute consensually, the Panel

21 shall resolve the dispute.

22 ‘‘§ 13710. Alternative procedure for resolving under23 charge disputes

24 ‘‘(a) GENERAL RULE.—It shall be an unreasonable

25 practice for a motor carrier of property (other than a house-
160

•HR 2539 RH

1 hold goods carrier) providing transportation that was sub2 ject to jurisdiction under subchapter II of chapter 105 before

3 the effective date of this section, a freight forwarder (other

4 than a household goods freight forwarder), or a party rep5 resenting such a carrier or freight forwarder to attempt to

6 charge or to charge for a transportation service the dif7 ference between the applicable rate that was lawfully in ef8 fect pursuant to a tariff that was filed in accordance with

9 chapter 107 of this title by the carrier or freight forwarder

10 applicable to such transportation service and the negotiated

11 rate for such transportation service if the carrier or freight

12 forwarder is no longer transporting property between places

13 described in section 13501(1) of this title or is transporting

14 property between places described in section 13501(1) of

15 this title for the purpose of avoiding application of this sec16 tion.

17 ‘‘(b) JURISDICTION OF PANEL.—

18 ‘‘(1) DETERMINATION.—The Panel shall have ju19 risdiction to make a determination of whether or not

20 attempting to charge or the charging of a rate by a

21 motor carrier or freight forwarder or party represent22 ing a motor carrier or freight forwarder is an unrea23 sonable practice under subsection (a). If the Panel de24 termines that attempting to charge or the charging of

25 the rate is an unreasonable practice under subsection
161

•HR 2539 RH

1 (a), the carrier, freight forwarder, or party may not

2 collect the difference described in subsection (a) be3 tween the applicable rate and the negotiated rate for

4 the transportation service.

5 ‘‘(2) FACTORS TO CONSIDER.—In making a de6 termination under paragraph (1), the Panel shall

7 consider—

8 ‘‘(A) whether the person was offered a trans9 portation rate by the carrier or freight forwarder

10 or party other than that legally on file with the

11 Interstate Commerce Commission at the time of

12 the movement for the transportation service;

13 ‘‘(B) whether the person tendered freight to

14 the carrier or freight forwarder in reasonable re15 liance upon the offered transportation rate;

16 ‘‘(C) whether the carrier or freight for17 warder did not properly or timely file with the

18 Interstate Commerce Commission a tariff provid19 ing for such transportation rate or failed to enter

20 into an agreement for contract carriage;

21 ‘‘(D) whether the transportation rate was

22 billed and collected by the carrier or freight for23 warder; and
162

•HR 2539 RH

1 ‘‘(E) whether the carrier or freight for2 warder or party demands additional payment of

3 a higher rate filed in a tariff.

4 ‘‘(c) STAY OF ADDITIONAL COMPENSATION.—When a

5 person proceeds under this section to challenge the reason6 ableness of the practice of a motor carrier, freight forwarder,

7 or party described in subsection (a) to attempt to charge

8 or to charge the difference described in subsection (a) be9 tween the applicable rate and the negotiated rate for the

10 transportation service in addition to those charges already

11 billed and collected for the transportation service, the person

12 shall not have to pay any additional compensation to the

13 carrier, freight forwarder, or party until the Panel has

14 made a determination as to the reasonableness of the prac15 tice as applied to the freight of the person against whom

16 the claim is made.

17 ‘‘(d) TREATMENT.—Subsection (a) is an exception to

18 the requirements of section 13702 and, for transportation

19 provided before the effective date of this section, to the re20 quirements of sections 10761(a) and 10762, relating to a

21 filed tariff rate and other general tariff requirements, as

22 in effect on the day before such effective date.

23 ‘‘(e) NONAPPLICABILITY OF NEGOTIATED RATE DIS24 PUTE RESOLUTION PROCEDURE.—If a person elects to seek

25 enforcement of subsection (a) with respect to a rate for a
163

•HR 2539 RH

1 transportation or service, section 13708 shall not apply to

2 such rate.

3 ‘‘(f) DEFINITIONS.—In this section, the term ‘‘nego4 tiated rate’’ means a rate, charge, classification, or rule

5 agreed upon by a motor carrier or freight forwarder and

6 a shipper through negotiations pursuant to which no tariff

7 was lawfully and timely filed and for which there is written

8 evidence of such agreement.

9 ‘‘§ 13711. Government traffic

10 ‘‘A carrier providing transportation or service for the

11 United States Government may transport property or indi12 viduals for the United States Government without charge

13 or at a rate reduced from the applicable commercial rate.

14 Section 3709 of the Revised Statutes (41 U.S.C. 5) does not

15 apply when transportation for the United States Govern16 ment can be obtained from a carrier lawfully operating in

17 the area where the transportation would be provided.

18 ‘‘§ 13712. Food and grocery transportation

19 ‘‘(a) CERTAIN COMPENSATION PROHIBITED.—Not20 withstanding any other provision of law, it shall not be un21 lawful for a seller of food and grocery products using a uni22 form zone delivered pricing system to compensate a cus23 tomer who picks up purchased food and grocery products

24 at the shipping point of the seller if such compensation is

25 available to all customers of the seller on a nondiscrim-
164

•HR 2539 RH

1 inatory basis and does not exceed the actual cost to the seller

2 of delivery to such customer.

3 ‘‘(b) SENSE OF CONGRESS.—It is the sense of the Con4 gress that any savings accruing to a customer by reason

5 of compensation permitted by subsection (a) of this section

6 should be passed on to the ultimate consumer.

7 ‘‘CHAPTER 139—REGISTRATION

‘‘Sec.

‘‘13901. Requirement for registration.

‘‘13902. Registration of motor carriers.

‘‘13903. Registration of freight forwarders.

‘‘13904. Registration of motor carrier brokers.

‘‘13905. Effective periods of registration.

‘‘13906. Security of motor carriers, brokers, and freight forwarders.

‘‘13907. Household goods agents.

‘‘13908. Registration and other reforms.

8 ‘‘§ 13901. Requirement for registration

9 ‘‘A person may provide transportation or service sub10 ject to jurisdiction under subchapter I or III of chapter 135

11 or be a broker for transportation subject to jurisdiction

12 under subchapter I of that chapter, only if the person is

13 registered under this chapter to provide the transportation

14 or service.

15 ‘‘§ 13902. Registration of motor carriers

16 ‘‘(a) MOTOR CARRIER GENERALLY.—

17 ‘‘(1) IN GENERAL.—Except as provided in this

18 section, the Secretary shall register a person to pro19 vide transportation subject to jurisdiction under sub20 chapter I of chapter 135 of this title as a motor car-
165

•HR 2539 RH

1 rier if the Secretary finds that the person is willing

2 and able to comply with—

3 ‘‘(A) this part and the applicable regula4 tions of the Secretary and the Panel;

5 ‘‘(B) any safety regulations imposed by the

6 Secretary and the safety fitness requirements es7 tablished by the Secretary under section 31144;

8 and

9 ‘‘(C) the minimum financial responsibility

10 requirements established by the Secretary pursu11 ant to sections 13906 and 31138.

12 ‘‘(2) CONSIDERATION OF EVIDENCE; FINDINGS.—

13 The Secretary shall consider and, to the extent appli14 cable, make findings on, any evidence demonstrating

15 that the registrant is unable to comply with the re16 quirements of subparagraph (A), (B), or (C) of para17 graph (1).

18 ‘‘(3) WITHHOLDING.—If the Secretary deter19 mines that any registrant under this section does not

20 meet the requirements of paragraph (1), the Secretary

21 shall withhold registration.

22 ‘‘(4) LIMITATION ON COMPLAINTS.—The Sec23 retary may hear a complaint from any person con24 cerning a registration under this subsection only on

25 the ground that the registrant fails or will fail to
166

•HR 2539 RH

1 comply with this part, the applicable regulations of

2 the Secretary and the Panel, the safety regulations of

3 the Secretary, or the safety fitness or minimum finan4 cial responsibility requirements of paragraph (1) of

5 this subsection.

6 ‘‘(b) MOTOR CARRIERS OF PASSENGERS.—

7 ‘‘(1) REGISTRATION OF PRIVATE RECIPIENTS OF

8 GOVERNMENTAL ASSISTANCE.—The Secretary shall

9 register under subsection (a)(1) a private recipient of

10 governmental assistance to provide special or charter

11 transportation subject to jurisdiction under sub12 chapter I of chapter 135 as a motor carrier of pas13 sengers if the Secretary finds that the recipient meets

14 the requirements of subsection (a)(1), unless the Sec15 retary finds, on the basis of evidence presented by any

16 person objecting to the registration, that the transpor17 tation to be provided pursuant to the registration is

18 not in the public interest.

19 ‘‘(2) REGISTRATION OF PUBLIC RECIPIENTS OF

20 GOVERNMENTAL ASSISTANCE.—

21 ‘‘(A) CHARTER TRANSPORTATION.—The

22 Secretary shall register under subsection (a)(1) a

23 public recipient of governmental assistance to

24 provide special or charter transportation subject

25 to jurisdiction under subchapter I of chapter 135
167

•HR 2539 RH

1 as a motor carrier of passengers if the Secretary

2 finds that—

3 ‘‘(i) the recipient meets the require4 ments of subsection (a)(1); and

5 ‘‘(ii)(I) no motor carrier of passengers

6 (other than a motor carrier of passengers

7 which is a public recipient of governmental

8 assistance) is providing, or is willing to

9 provide, the transportation; or

10 ‘‘(II) the transportation is to be pro11 vided entirely in the area in which the pub12 lic recipient provides regularly scheduled

13 mass transportation services.

14 ‘‘(B) REGULAR-ROUTE TRANSPORTATION.—

15 The Secretary shall register under subsection

16 (a)(1) a public recipient of governmental assist17 ance to provide regular-route transportation sub18 ject to jurisdiction under subchapter I of chapter

19 135 as a motor carrier of passengers if the Sec20 retary finds that the recipient meets the require21 ments of subsection (a)(1), unless the Secretary

22 finds, on the basis of evidence presented by any

23 person objecting to the registration, that the

24 transportation to be provided pursuant to the

25 registration is not in the public interest.
168

•HR 2539 RH

1 ‘‘(C) TREATMENT OF CERTAIN PUBLIC RE2 CIPIENTS.—Any public recipient of governmental

3 assistance which is providing or seeking to pro4 vide transportation of passengers subject to juris5 diction under subchapter I of chapter 135 shall,

6 for purposes of this part, be treated as a person

7 which is providing or seeking to provide trans8 portation of passengers subject to such jurisdic9 tion.

10 ‘‘(3) INTRASTATE TRANSPORTATION.—A motor

11 carrier of passengers that is registered by the Sec12 retary under subsection (a) is authorized to provide

13 regular-route transportation entirely in one State as

14 a motor carrier of passengers if such intrastate trans15 portation is to be provided on a route over which the

16 carrier provides interstate transportation of pas17 sengers.

18 ‘‘(4) PREEMPTION REGARDING CERTAIN EXPRESS

19 SERVICE.—No State or political subdivision thereof

20 and no interstate agency or other political agency of

21 2 or more States shall enact or enforce any law, rule,

22 regulation, standard or other provision having the

23 force and effect of law relating to the provision of

24 pickup and delivery of express packages, newspapers,

25 or mail in a commercial zone if the shipment has had
169

•HR 2539 RH

1 or will have a prior or subsequent movement by bus

2 in intrastate commerce and, if a city within the com3 mercial zone, is served by a motor carrier of pas4 sengers providing regular-route transportation of pas5 sengers subject to jurisdiction under subchapter I of

6 chapter 135.

7 ‘‘(5) TREATMENT.—Except as provided in sec8 tion 14501(a), any intrastate transportation author9 ized by this subsection shall be treated as transpor10 tation subject to jurisdiction under subchapter I of

11 chapter 135 until the 30th day following the date on

12 which the motor carrier of passengers first begins pro13 viding transportation entirely in one State under this

14 paragraph and the carrier takes such action as is nec15 essary to establish under the laws of such State rates,

16 rules, and practices applicable to such transportation.

17 ‘‘(6) SPECIAL OPERATIONS.—This subsection

18 shall not apply to any regular-route transportation of

19 passengers provided entirely in one State which is in

20 the nature of a special operation.

21 ‘‘(7) SUSPENSION OR REVOCATION.—Intrastate

22 transportation authorized under this subsection may

23 be suspended or revoked by the Secretary under sec24 tion 13905 of this title at any time.
170

•HR 2539 RH

1 ‘‘(8) DEFINITIONS.—In this subsection, the fol2 lowing definitions apply:

3 ‘‘(A) PUBLIC RECIPIENT OF GOVERNMENTAL

4 ASSISTANCE.—The term ‘public recipient of gov5 ernmental assistance’ means—

6 ‘‘(i) any State,

7 ‘‘(ii) any municipality or other politi8 cal subdivision of a State,

9 ‘‘(iii) any public agency or instrumen10 tality of one or more States and munici11 palities and political subdivisions of a

12 State,

13 ‘‘(iv) any Indian tribe,

14 ‘‘(v) any corporation, board, or other

15 person owned or controlled by any entity

16 described in clause (i), (ii), (iii), or (iv),

17 and

18 which before, on, or after the effective date of this

19 subsection received governmental assistance for

20 the purchase or operation of any bus.

21 ‘‘(B) PRIVATE RECIPIENT OF GOVERNMENT

22 ASSISTANCE.—The term ‘private recipient of gov23 ernment assistance’ means any person (other

24 than a person described in subparagraph (A))

25 who before, on, or after the effective date of this
171

•HR 2539 RH

1 paragraph received governmental financial as2 sistance in the form of a subsidy for the pur3 chase, lease, or operation of any bus.

4 ‘‘(c) RESTRICTIONS ON MOTOR CARRIERS DOMICILED

5 IN OR OWNED OR CONTROLLED BY NATIONALS OF A CON6 TIGUOUS FOREIGN COUNTRY.—

7 ‘‘(1) PREVENTION OF DISCRIMINATORY PRAC8 TICES.—If the President, or the delegate thereof, deter9 mines that an act, policy, or practice of a foreign

10 country contiguous to the United States, or any polit11 ical subdivision or any instrumentality of any such

12 country is unreasonable or discriminatory and bur13 dens or restricts United States transportation compa14 nies providing, or seeking to provide, motor carrier

15 transportation to, from, or within such foreign coun16 try, the President or such delegate may—

17 ‘‘(A) seek elimination of such practices

18 through consultations; or

19 ‘‘(B) notwithstanding any other provision

20 of law, suspend, modify, amend, condition, or re21 strict operations, including geographical restric22 tion of operations, in the United States by motor

23 carriers of property or passengers domiciled in

24 such foreign country or owned or controlled by

25 persons of such foreign country.
172

•HR 2539 RH

1 ‘‘(2) EQUALIZATION OF TREATMENT.—Any ac2 tion taken under paragraph (1)(A) to eliminate an

3 act, policy, or practice shall be so devised so as to

4 equal to the extent possible the burdens or restrictions

5 imposed by such foreign country on United States

6 transportation companies.

7 ‘‘(3) REMOVAL OR MODIFICATION.—The Presi8 dent, or the delegate thereof, may remove or modify

9 in whole or in part any action taken under para10 graph (1)(A) if the President or such delegate deter11 mines that such removal or modification is consistent

12 with the obligations of the United States under a

13 trade agreement or with United States transportation

14 policy.

15 ‘‘(4) PROTECTION OF EXISTING OPERATIONS.—

16 Unless and until the President, or the delegate thereof,

17 makes a determination under paragraph (1) or (3),

18 nothing in this subsection shall affect—

19 ‘‘(A) operations of motor carriers of prop20 erty or passengers domiciled in any contiguous

21 foreign country or owned or controlled by per22 sons of any contiguous foreign country permitted

23 in the commercial zones along the United States24 Mexico border as such zones were defined on the

25 day before the effective date of this section; or
173

•HR 2539 RH

1 ‘‘(B) any existing restrictions on operations

2 of motor carriers of property or passengers domi3 ciled in any contiguous foreign country or owned

4 or controlled by persons of any contiguous for5 eign country or any modifications thereof pursu6 ant to section 6 of the Bus Regulatory Reform

7 Act of 1982.

8 ‘‘(5) PUBLICATION; COMMENT.—Unless the Presi9 dent, or the delegate thereof, determines that expedi10 tious action is required, the President shall publish in

11 the Federal Register any determination under para12 graph (1) or (3), together with a description of the

13 facts on which such a determination is based and any

14 proposed action to be taken pursuant to paragraph

15 (1)(B) or (3) and provide an opportunity for public

16 comment.

17 ‘‘(6) DELEGATION TO SECRETARY.—The Presi18 dent may delegate any or all authority under this

19 subsection to the Secretary, who shall consult with

20 other agencies as appropriate. In accordance with the

21 directions of the President, the Secretary may issue

22 regulations to enforce this subsection.

23 ‘‘(7) CIVIL ACTIONS.—Either the Secretary or the

24 Attorney General may bring a civil action in an ap25 propriate district court of the United States to enforce
174

•HR 2539 RH

1 this subsection or a regulation prescribed or order is2 sued under this subsection. The court may award ap3 propriate relief, including injunctive relief.

4 ‘‘(8) LIMITATION ON STATUTORY CONSTRUC5 TION.—This subsection shall not be construed as af6 fecting the requirement for all foreign motor carriers

7 operating in the United States to comply with all ap8 plicable laws and regulations pertaining to fitness,

9 safety of operations, financial responsibility, and

10 taxes imposed by section 4481 of the Internal Revenue

11 Code of 1986.

12 ‘‘§ 13903. Registration of freight forwarders

13 ‘‘(a) IN GENERAL.—The Secretary shall register a per14 son to provide service subject to jurisdiction under sub15 chapter III of chapter 135 as a freight forwarder if the Sec16 retary finds that the person is willing and able to provide

17 the service and to comply with this part and applicable

18 regulations of the Secretary and the Panel.

19 ‘‘(b) REGISTRATION AS CARRIER REQUIRED.—The

20 freight forwarder may provide transportation as the carrier

21 itself only if the freight forwarder also has registered to pro22 vide transportation as a carrier under this chapter.

23 ‘‘§ 13904. Registration of motor carrier brokers

24 ‘‘(a) IN GENERAL.—The Secretary shall register, sub25 ject to section 13906(b), a person to be a broker for trans-
175

•HR 2539 RH

1 portation of property subject to jurisdiction under sub2 chapter I of chapter 135, if the Secretary finds that the per3 son is willing and able to be a broker for transportation

4 and to comply with this part and applicable regulations

5 of the Secretary .

6 ‘‘(b) LIMITATION.—

7 ‘‘(1) REGISTRATION AS CARRIER REQUIRED.—

8 The broker may provide transportation itself only if

9 the broker also has registered to provide transpor10 tation as a carrier under this chapter.

11 ‘‘(2) EXCEPTION.—This subsection does not

12 apply to a motor carrier registered under this chapter

13 or to an employee or agent of the motor carrier to the

14 extent the transportation is to be provided entirely by

15 the motor carrier, with other registered motor car16 riers, or with rail or water carriers.

17 ‘‘(c) REGULATIONS TO PROTECT SHIPPERS.—Regula18 tions of the Secretary applicable to brokers registered under

19 this section shall provide for the protection of shippers by

20 motor vehicle.

21 ‘‘(d) BOND AND INSURANCE.—The Secretary may im22 pose on brokers for motor carriers of passengers such re23 quirements for bonds or insurance or both as the Secretary

24 determines are needed to protect passengers and carriers

25 dealing with such brokers.
176

•HR 2539 RH

1 ‘‘§ 13905. Effective periods of registration

2 ‘‘(a) IN GENERAL.—Each registration issued under

3 section 13902, 13903, or 13904 shall be effective from the

4 date specified by the Secretary and shall remain in effect,

5 except as otherwise provided in this part.

6 ‘‘(b) SUSPENSION, AMENDMENTS, AND REVOCA7 TIONS.—On application of the registrant, the Secretary

8 may amend or revoke a registration. On complaint or on

9 the Secretary’s own initiative and after notice and an op10 portunity for a proceeding, the Secretary may suspend,

11 amend, or revoke any part of the registration of a motor

12 carrier, broker, or freight forwarder for willful failure to

13 comply with this part, an applicable regulation or order

14 of the Secretary or of the Panel, or a condition of its reg15 istration.

16 ‘‘(c) PROCEDURE.—Except on application of the reg17 istrant, the Secretary may revoke a registration of a motor

18 carrier, freight forwarder, or broker, only after—

19 ‘‘(1) the Secretary has issued an order to the reg20 istrant under section 14701 requiring compliance

21 with this part, a regulation of the Secretary, or a

22 condition of the registration of the registrant; and

23 ‘‘(2) the registrant willfully does not comply

24 with the order for a period of 30 days.

25 ‘‘(d) EXPEDITED PROCEDURE.—
177

•HR 2539 RH

1 ‘‘(1) PROTECTION OF SAFETY.—Without regard

2 to subchapter II of chapter 5 of title 5, the Secretary

3 may suspend the registration of a motor carrier, a

4 freight forwarder, or a broker for failure to comply

5 with safety requirements of the Secretary or the safety

6 fitness requirements pursuant to section 13904(c),

7 13906, or 31144, of this title, or an order or regula8 tion of the Secretary prescribed under those sections.

9 ‘‘(2) IMMINENT HAZARD TO PUBLIC HEALTH.—

10 Without regard to subchapter II of chapter 5 of title

11 5, the Secretary may suspend a registration of a

12 motor carrier of passengers if the Secretary finds that

13 such carrier has been conducting unsafe operations

14 which are an imminent hazard to public health or

15 property.

16 ‘‘(3) NOTICE; PERIOD OF SUSPENSION.—The Sec17 retary may suspend under this subsection the reg18 istration only after giving notice of the suspension to

19 the registrant. The suspension remains in effect until

20 the registrant complies with those applicable sections

21 or, in the case of a suspension under paragraph (2),

22 until the Secretary revokes such suspension.

23 ‘‘§ 13906. Security of motor carriers, brokers, and

24 freight forwarders

25 ‘‘(a) MOTOR CARRIER REQUIREMENTS.—
178

•HR 2539 RH

1 ‘‘(1) LIABILITY INSURANCE REQUIREMENT.—The

2 Secretary may register a motor carrier under section

3 13902 only if the registrant files with the Secretary

4 a bond, insurance policy, or other type of security ap5 proved by the Secretary, in an amount not less than

6 such amount as the Secretary prescribes pursuant to,

7 or as is required by, sections 31138 and 31139, and

8 the laws of the State or States in which the registrant

9 is operating, to the extent applicable. The security

10 must be sufficient to pay, not more than the amount

11 of the security, for each final judgment against the

12 registrant for bodily injury to, or death of, an indi13 vidual resulting from the negligent operation, mainte14 nance, or use of motor vehicles, or for loss or damage

15 to property (except property referred to in paragraph

16 (3) of this subsection), or both. A registration remains

17 in effect only as long as the registrant continues to

18 satisfy the security requirements of this paragraph.

19 ‘‘(2) AGENCY REQUIREMENT.—A motor carrier

20 shall comply with the requirements of sections 13303

21 and 13304. To protect the public, the Secretary may

22 require any such motor carrier to file the type of secu23 rity that a motor carrier is required to file under

24 paragraph (1) of this subsection. This paragraph only

25 applies to a foreign motor private carrier and foreign
179

•HR 2539 RH

1 motor carrier operating in the United States to the

2 extent that such carrier is providing transportation

3 between places in a foreign country or between a

4 place in one foreign country and a place in another

5 foreign country.

6 ‘‘(3) TRANSPORTATION INSURANCE.—The Sec7 retary may require a registered motor carrier to file

8 with the Secretary a type of security sufficient to pay

9 a shipper or consignee for damage to property of the

10 shipper or consignee placed in the possession of the

11 motor carrier as the result of transportation provided

12 under this part. A carrier required by law to pay a

13 shipper or consignee for loss, damage, or default for

14 which a connecting motor carrier is responsible is

15 subrogated, to the extent of the amount paid, to the

16 rights of the shipper or consignee under any such se17 curity.

18 ‘‘(b) BROKER REQUIREMENTS.—The Secretary may

19 register a person as a broker under section 13904 only if

20 the person files with the Secretary a bond, insurance policy,

21 or other type of security approved by the Secretary to en22 sure that the transportation for which a broker arranges

23 is provided. The registration remains in effect only as long

24 as the broker continues to satisfy the security requirements

25 of this subsection.
180

•HR 2539 RH

1 ‘‘(c) FREIGHT FORWARDER REQUIREMENTS.—

2 ‘‘(1) LIABILITY INSURANCE.—The Secretary may

3 register a person as a freight forwarder under section

4 13903 of this title only if the person files with the

5 Secretary a bond, insurance policy, or other type of

6 security approved by the Secretary. The security must

7 be sufficient to pay, not more than the amount of the

8 security, for each final judgment against the freight

9 forwarder for bodily injury to, or death of, an indi10 vidual, or loss of, or damage to, property (other than

11 property referred to in paragraph (2) of this sub12 section), resulting from the negligent operation, main13 tenance, or use of motor vehicles by or under the di14 rection and control of the freight forwarder when pro15 viding transfer, collection, or delivery service under

16 this part.

17 ‘‘(2) FREIGHT FORWARDER INSURANCE.—The

18 Secretary may require a registered freight forwarder

19 to file with the Secretary a bond, insurance policy, or

20 other type of security approved by the Secretary suffi21 cient to pay, not more than the amount of the secu22 rity, for loss of, or damage to, property for which the

23 freight forwarder provides service.

24 ‘‘(3) EFFECTIVE PERIOD.—The freight for25 warder’s registration remains in effect only as long as
181

•HR 2539 RH

1 the freight forwarder continues to satisfy the security

2 requirements of this subsection.

3 ‘‘(d) TYPE OF INSURANCE.—The Secretary may deter4 mine the type and amount of security filed under this sec5 tion. A motor carrier may submit proof of qualifications

6 as a self-insurer to satisfy the security requirements of this

7 section. The Secretary shall adopt regulations governing the

8 standards for approval as a self-insurer. Motor carriers

9 which have been granted authority to self-insure as of the

10 effective date of this section shall retain that authority un11 less, for good cause shown and after notice and an oppor12 tunity for a hearing, the Secretary finds that the authority

13 must be revoked.

14 ‘‘(e) NOTICE OF CANCELLATION OF INSURANCE.—The

15 Secretary shall issue regulations requiring the submission

16 to the Secretary of notices of insurance cancellation suffi17 ciently in advance of actual cancellation so as to enable

18 the Secretary to promptly revoke the registration of any

19 carrier or broker after the effective date of the cancellation.

20 ‘‘(f) FORM OF ENDORSEMENT.—The Secretary shall

21 also prescribe the appropriate form of endorsement to be

22 appended to policies of insurance and surety bonds which

23 will subject the insurance policy or surety bond to the full

24 security limits of the coverage required under this section.
182

•HR 2539 RH

1 ‘‘§ 13907. Household goods agents

2 ‘‘(a) CARRIERS RESPONSIBLE FOR AGENTS.—Each

3 motor carrier providing transportation of household goods

4 shall be responsible for all acts or omissions of any of its

5 agents which relate to the performance of household goods

6 transportation services (including accessorial or terminal

7 services) and which are within the actual or apparent au8 thority of the agent from the carrier or which are ratified

9 by the carrier.

10 ‘‘(b) STANDARD FOR SELECTING AGENTS.—Each

11 motor carrier providing transportation of household goods

12 shall use due diligence and reasonable care in selecting and

13 maintaining agents who are sufficiently knowledgeable, fit,

14 willing, and able to provide adequate household goods trans15 portation services (including accessorial and terminal serv16 ices) and to fulfill the obligations imposed upon them by

17 this part and by such carrier.

18 ‘‘(c) ENFORCEMENT.—

19 ‘‘(1) COMPLAINT.—Whenever the Secretary has

20 reason to believe from a complaint or investigation

21 that an agent providing household goods transpor22 tation services (including accessorial and terminal

23 services) under the authority of a motor carrier pro24 viding transportation of household goods has violated

25 section 14901(e) or 14912 or is consistently not fit,

26 willing, and able to provide adequate household goods
183

•HR 2539 RH

1 transportation services (including accessorial and ter2 minal services), the Secretary may issue to such agent

3 a complaint stating the charges and containing notice

4 of the time and place of a hearing which shall be held

5 no later than 60 days after service of the complaint

6 to such agent.

7 ‘‘(2) RIGHT TO DEFEND.—The agent shall have

8 the right to appear at such hearing and rebut the

9 charges contained in the complaint.

10 ‘‘(3) ORDER.—If the agent does not appear at

11 the hearing or if the Secretary finds that the agent

12 has violated section 14901(e) or 14912 or is consist13 ently not fit, willing, and able to provide adequate

14 household goods transportation services (including ac15 cessorial and terminal services), the Secretary may

16 issue an order to compel compliance with the require17 ment that the agent be fit, willing, and able. There18 after, the Secretary may issue an order to limit, con19 dition, or prohibit such agent from any involvement

20 in the transportation or provision of services inciden21 tal to the transportation of household goods if, after

22 notice and an opportunity for a hearing, the Sec23 retary finds that such agent, within a reasonable time

24 after the date of issuance of a compliance order under

25 this section, but in no event less than 30 days after
184

•HR 2539 RH

1 such date of issuance, has willfully failed to comply

2 with such order.

3 ‘‘(4) HEARING.—Upon filing of a petition with

4 the Secretary by an agent who is the subject of an

5 order issued pursuant to the second sentence of para6 graph (3) of this subsection and after notice, a hear7 ing shall be held with an opportunity to be heard. At

8 such hearing, a determination shall be made whether

9 the order issued pursuant to paragraph (3) of this

10 subsection should be rescinded.

11 ‘‘(5) COURT REVIEW.—Any agent adversely af12 fected or aggrieved by an order of the Secretary issued

13 under this subsection may seek relief in the appro14 priate United States court of appeals as provided by

15 and in the manner prescribed in chapter 158 of title

16 28, United States Code.

17 ‘‘(d) LIMITATION ON APPLICABILITY OF ANTITRUST

18 LAWS.—

19 ‘‘(1) IN GENERAL.—The antitrust laws, as de20 fined in the first section of the Clayton Act (15 U.S.C.

21 12), do not apply to discussions or agreements be22 tween a motor carrier providing transportation of

23 household goods and its agents (whether or not an

24 agent is also a carrier) related solely to—
185

•HR 2539 RH

1 ‘‘(A) rates for the transportation of house2 hold goods under the authority of the principal

3 carrier;

4 ‘‘(B) accessorial, terminal, storage, or other

5 charges for services incidental to the transpor6 tation of household goods transported under the

7 authority of the principal carrier;

8 ‘‘(C) allowances relating to transportation

9 of household goods under the authority of the

10 principal carrier; and

11 ‘‘(D) ownership of a motor carrier provid12 ing transportation of household goods by an

13 agent or membership on the board of directors of

14 any such motor carrier by an agent.

15 ‘‘(2) PANEL REVIEW.—The Panel, upon its own

16 initiative or request, shall review any activities un17 dertaken under paragraph (1) and shall modify or

18 terminate the activity if necessary to protect the pub19 lic interest.

20 ‘‘(e) DEFINITIONS.—In this section, the following defi21 nitions apply:

22 ‘‘(1) HOUSEHOLD GOODS.—The term ‘household

23 goods’ has the meaning such term had under section

24 10102(11) of this title, as in effect on the day before

25 the effective date of this section.
186

•HR 2539 RH

1 ‘‘(2) TRANSPORTATION.—The term ‘transpor2 tation’ means transportation that would be subject to

3 the jurisdiction of the Interstate Commerce Commis4 sion under subchapter II of chapter 105 of this title,

5 as in effect on the day before such effective date, if

6 such subchapter were still in effect.

7 ‘‘§ 13908. Registration and other reforms

8 ‘‘(a) REGULATIONS REPLACING CERTAIN PRO9 GRAMS.—The Secretary, in cooperation with the States,

10 and after notice and opportunity for public comment, shall

11 issue regulations to replace the current Department of

12 Transportation identification number system, the single

13 State registration system under section 14504, the registra14 tion system contained in this chapter, and the financial re15 sponsibility information system under section 13906 with

16 a single, on-line, Federal system. The new system shall serve

17 as a clearinghouse and depository of information on and

18 identification of all foreign and domestic motor carriers,

19 brokers, and freight forwarders, and others required to reg20 ister with the Department as well as information on safety

21 fitness and compliance with required levels of financial re22 sponsibility.

23 ‘‘(b) FACTORS TO BE CONSIDERED.—In conducting

24 the rulemaking under subsection (a), the Secretary shall,

25 at a minimum, consider the following factors:
187

•HR 2539 RH

1 ‘‘(1) Funding for State enforcement of motor car2 rier safety regulations.

3 ‘‘(2) Whether the existing single State registra4 tion system is duplicative and burdensome.

5 ‘‘(3) The justification and need for collecting the

6 statutory fee for such system under section

7 14504(c)(2)(B)(iv).

8 ‘‘(4) The public safety.

9 ‘‘(5) The efficient delivery of transportation serv10 ices.

11 ‘‘(6) How, and under what conditions, to extend

12 the registration system to motor private carriers and

13 to carriers exempt under sections 13502, 13503, and

14 13506.

15 ‘‘(c) FEE SYSTEM.—The Secretary may establish,

16 under section 9701 of title 31, a fee system for registration

17 and filing evidence of financial responsibility under the

18 new system under subsection (a). Fees collected under the

19 fee system shall cover the costs of operating and upgrading

20 the registration system, including all personnel costs associ21 ated with the system. Fees collected under this subsection

22 may be credited to the Department of Transportation ap23 propriations account for purposes for which such fees are

24 collected, and shall be available for expenditure until ex25 pended.
188

•HR 2539 RH

1 ‘‘(d) STATE REGISTRATION PROGRAMS.—If the Sec2 retary determines that no State should require insurance

3 filings or collect fees for such filings under section 14504,

4 the Secretary may prevent any State or political subdivi5 sion thereof, or any political authority of 2 or more States,

6 from imposing any insurance filing requirements or fees

7 that are for the same purposes as filings or fees the Sec8 retary requires under the new system under subsection (a).

9 ‘‘(e) DEADLINE FOR CONCLUSION; MODIFICATIONS.—

10 Not later than 24 months after the effective date of this sec11 tion, the Secretary—

12 ‘‘(1) shall conclude the rulemaking under this

13 section;

14 ‘‘(2) may implement such changes under this sec15 tion as the Secretary considers appropriate and in

16 the public interest; and

17 ‘‘(3) shall transmit to Congress a report on any

18 findings of the rulemaking and the changes being im19 plemented under this section, together with such rec20 ommendations for legislative language necessary to

21 conform this part to such changes.

22 ‘‘CHAPTER 141—OPERATIONS OF

23 CARRIERS

‘‘SUBCHAPTER I—GENERAL REQUIREMENTS

‘‘Sec.

‘‘14101. Providing transportation and service.

‘‘14102. Leased motor vehicles.
189

•HR 2539 RH

‘‘14103. Loading and unloading motor vehicles.

‘‘14104. Household goods carrier operations.

‘‘SUBCHAPTER II—REPORTS AND RECORDS

‘‘14121. Definitions.

‘‘14122. Records: form; inspection; preservation.

‘‘14123. Financial reporting.

1 ‘‘SUBCHAPTER I—GENERAL REQUIREMENTS

2 ‘‘§ 14101. Providing transportation and service

3 ‘‘(a) ON REASONABLE REQUEST.—A carrier providing

4 transportation or service subject to jurisdiction under chap5 ter 135 shall provide the transportation or service on rea6 sonable request. In addition, a motor carrier shall provide

7 safe and adequate service, equipment, and facilities.

8 ‘‘(b) CONTRACTS WITH SHIPPERS.—

9 ‘‘(1) IN GENERAL.—A carrier providing trans10 portation or service subject to jurisdiction under

11 chapter 135 may enter into a contract with a shipper,

12 other than for the movement of household goods de13 scribed in section 13102(9)(A), to provide specified

14 services under specified rates and conditions. If the

15 shipper, in writing, expressly waives all rights and

16 remedies under this part for the transportation cov17 ered by the contract, the transportation provided

18 under the contract shall not be subject to this part

19 and may not be subsequently challenged on the

20 ground that it violates a provision of this part.

21 ‘‘(2) REMEDY FOR BREACH OF CONTRACT.—The

22 exclusive remedy for any alleged breach of a contract
190

•HR 2539 RH

1 entered into under this subsection shall be an action

2 in an appropriate State court or United States dis3 trict court, unless the parties otherwise agree.

4 ‘‘§ 14102. Leased motor vehicles

5 ‘‘(a) GENERAL AUTHORITY OF SECRETARY.—The Sec6 retary may require a motor carrier providing transpor7 tation subject to jurisdiction under subchapter I of chapter

8 135 that uses motor vehicles not owned by it to transport

9 property under an arrangement with another party to—

10 ‘‘(1) make the arrangement in writing signed by

11 the parties specifying its duration and the compensa12 tion to be paid by the motor carrier;

13 ‘‘(2) carry a copy of the arrangement in each

14 motor vehicle to which it applies during the period

15 the arrangement is in effect;

16 ‘‘(3) inspect the motor vehicles and obtain liabil17 ity and cargo insurance on them; and

18 ‘‘(4) have control of and be responsible for oper19 ating those motor vehicles in compliance with require20 ments prescribed by the Secretary on safety of oper21 ations and equipment, and with other applicable law

22 as if the motor vehicles were owned by the motor car23 rier.

24 ‘‘(b) RESPONSIBLE PARTY FOR LOADING AND UNLOAD25 ING.—The Secretary shall require, by regulation, that any
191

•HR 2539 RH

1 arrangement, between a motor carrier of property providing

2 transportation subject to jurisdiction under subchapter I of

3 chapter 135 and any other person, under which such other

4 person is to provide any portion of such transportation by

5 a motor vehicle not owned by the carrier shall specify, in

6 writing, who is responsible for loading and unloading the

7 property onto and from the motor vehicle.

8 ‘‘§ 14103. Loading and unloading motor vehicles

9 ‘‘(a) SHIPPER RESPONSIBLE FOR ASSISTING.—When10 ever a shipper or receiver of property requires that any per11 son who owns or operates a motor vehicle transporting

12 property in interstate commerce (whether or not such trans13 portation is subject to jurisdiction under subchapter I of

14 chapter 135) be assisted in the loading or unloading of such

15 vehicle, the shipper or receiver shall be responsible for pro16 viding such assistance or shall compensate the owner or op17 erator for all costs associated with securing and compensat18 ing the person or persons providing such assistance.

19 ‘‘(b) COERCION PROHIBITED.—It shall be unlawful to

20 coerce or attempt to coerce any person providing transpor21 tation of property by motor vehicle for compensation in

22 interstate commerce (whether or not such transportation is

23 subject to jurisdiction under subchapter I of chapter 135)

24 to load or unload any part of such property onto or from

25 such vehicle or to employ or pay one or more persons to
192

•HR 2539 RH

1 load or unload any part of such property onto or from such

2 vehicle; except that this subsection shall not be construed

3 as making unlawful any activity which is not unlawful

4 under the National Labor Relations Act or the Act of March

5 23, 1932 (47 Stat. 70; 29 U.S.C. 101 et seq.), commonly

6 known as the Norris-LaGuardia Act.

7 ‘‘§ 14104. Household goods carrier operations

8 ‘‘(a) GENERAL REGULATORY AUTHORITY.—

9 ‘‘(1) PAPERWORK MINIMIZATION.—The Secretary

10 may issue regulations, including regulations protect11 ing individual shippers, in order to carry out this

12 part with respect to the transportation of household

13 goods by motor carriers subject to jurisdiction under

14 subchapter I of chapter 135. The regulations and pa15 perwork required of motor carriers providing trans16 portation of household goods shall be minimized to the

17 maximum extent feasible consistent with the protec18 tion of individual shippers.

19 ‘‘(2) PERFORMANCE STANDARDS.—

20 ‘‘(A) IN GENERAL.—Regulations of the Sec21 retary protecting individual shippers shall in22 clude, where appropriate, reasonable performance

23 standards for the transportation of household

24 goods subject to jurisdiction under subchapter I

25 of chapter 135.
193

•HR 2539 RH

1 ‘‘(B) FACTORS TO CONSIDER.—In establish2 ing performance standards under this para3 graph, the Secretary shall take into account at

4 least the following—

5 ‘‘(i) the level of performance that can

6 be achieved by a well-managed motor car7 rier transporting household goods;

8 ‘‘(ii) the degree of harm to individual

9 shippers which could result from a violation

10 of the regulation;

11 ‘‘(iii) the need to set the level of per12 formance at a level sufficient to deter abuses

13 which result in harm to consumers and vio14 lations of regulations;

15 ‘‘(iv) service requirements of the car16 riers;

17 ‘‘(v) the cost of compliance in relation

18 to the consumer benefits to be achieved from

19 such compliance; and

20 ‘‘(vi) the need to set the level of per21 formance at a level designed to encourage

22 carriers to offer service responsive to ship23 per needs.

24 ‘‘(3) LIMITATIONS ON STATUTORY CONSTRUC25 TION.—Nothing in this section shall be construed to
194

•HR 2539 RH

1 limit the Secretary’s authority to require reports from

2 motor carriers providing transportation of household

3 goods or to require such carriers to provide specified

4 information to consumers concerning their past per5 formance.

6 ‘‘(b) ESTIMATES.—

7 ‘‘(1) AUTHORITY TO PROVIDE WITHOUT COM8 PENSATION.—Every motor carrier providing trans9 portation of household goods subject to jurisdiction

10 under subchapter I of chapter 135, upon request of a

11 prospective shipper, may provide the shipper with an

12 estimate of charges for transportation of household

13 goods and for the proposed services. The Secretary

14 shall not prohibit any such carrier from charging a

15 prospective shipper for providing a written, binding

16 estimate for the transportation and proposed services.

17 ‘‘(2) APPLICABILITY OF ANTITRUST LAWS.—Any

18 charge for an estimate of charges provided by a motor

19 carrier to a shipper for transportation of household

20 goods subject to jurisdiction under subchapter I of

21 chapter 135 shall be subject to the antitrust laws, as

22 defined in the first section of the Clayton Act (15

23 U.S.C. 12).

24 ‘‘(c) FLEXIBILITY IN WEIGHING SHIPMENTS.—The

25 Secretary shall issue regulations that provide motor carriers
195

•HR 2539 RH

1 providing transportation of household goods subject to juris2 diction under subchapter I of chapter 135 with the maxi3 mum possible flexibility in weighing shipments, consistent

4 with assurance to the shipper of accurate weighing prac5 tices. The Secretary shall not prohibit such carriers from

6 backweighing shipments or from basing their charges on the

7 reweigh weights if the shipper observes both the tare and

8 gross weighings (or, prior to such weighings, waives in

9 writing the opportunity to observe such weighings) and such

10 weighings are performed on the same scale.

11 ‘‘SUBCHAPTER II—REPORTS AND RECORDS

12 ‘‘§ 14121. Definitions

13 ‘‘In this subchapter, the following definitions apply:

14 ‘‘(1) CARRIER AND BROKER.—The terms ‘carrier’

15 and ‘broker’ include a receiver or trustee of a carrier

16 and broker, respectively.

17 ‘‘(2) ASSOCIATION.—The term ‘association’

18 means an organization maintained by or in the inter19 est of a group of carriers or brokers providing trans20 portation or service subject to jurisdiction under

21 chapter 135 that performs a service, or engages in ac22 tivities, related to transportation under this part.

23 ‘‘§ 14122. Records: form; inspection; preservation

24 ‘‘(a) FORM OF RECORDS.—The Secretary or the Panel,

25 as applicable, may prescribe the form of records required
196

•HR 2539 RH

1 to be prepared or compiled under this subchapter by car2 riers and brokers, including records related to movement of

3 traffic and receipts and expenditures of money.

4 ‘‘(b) RIGHT OF INSPECTION.—The Secretary or Panel,

5 or an employee designated by the Secretary or Panel, may

6 on demand and display of proper credentials—

7 ‘‘(1) inspect and examine the lands, buildings,

8 and equipment of a carrier or broker; and

9 ‘‘(2) inspect and copy any record of—

10 ‘‘(A) a carrier, broker, or association; and

11 ‘‘(B) a person controlling, controlled by, or

12 under common control with a carrier if the Sec13 retary or Panel, as applicable, considers inspec14 tion relevant to that person’s relation to, or

15 transaction with, that carrier.

16 ‘‘(c) PERIOD FOR PRESERVATION OF RECORDS.—The

17 Secretary or Panel, as applicable, may prescribe the time

18 period during which operating, accounting, and financial

19 records must be preserved by carriers.

20 ‘‘§ 14123. Financial reporting

21 ‘‘(a) IN GENERAL.—The Secretary shall require Class

22 I motor carriers, and may require Class II motor carriers,

23 to file with the Secretary annual financial and safety re24 ports, the form and substance of which shall be prescribed
197

•HR 2539 RH

1 by the Secretary; except that, at a minimum, such reports

2 shall include balance sheets and income statements.

3 ‘‘(b) MATTERS TO BE COVERED.—In determining the

4 matters to be covered by any reports to be filed under sub5 section (a), the Secretary shall consider—

6 ‘‘(1) safety needs;

7 ‘‘(2) the need to preserve confidential business

8 information and trade secrets and prevent competitive

9 harm;

10 ‘‘(3) private sector, academic, and public use of

11 information in the reports; and

12 ‘‘(4) the public interest.

13 ‘‘(c) EXEMPTION FROM PUBLIC RELEASE.—

14 ‘‘(1) IN GENERAL.—The Secretary shall allow,

15 upon request, a filer of a report under subsection (a)

16 that is not a publicly held corporation or that is not

17 subject to financial reporting requirements of the Se18 curities and Exchange Commission, an exemption

19 from the public release of such report.

20 ‘‘(2) PROCEDURE.—After a request under para21 graph (1) and notice and opportunity for comment

22 but no event later than 90 days after the date of such

23 request, the Secretary shall approve such request if the

24 Secretary finds that the exemption requested is nec25 essary to avoid competitive harm and to avoid the
198

•HR 2539 RH

1 disclosure of information that qualifies as a trade se2 cret or privileged or confidential information under

3 section 552(b)(4) of title 5.

4 ‘‘(3) USE OF DATA FOR INTERNAL DOT PUR5 POSES.—If an exemption is granted under this sub6 section, nothing shall prevent the Secretary from

7 using data from reports filed under this subsection for

8 internal purposes of the Department of Transpor9 tation or including such data in aggregate industry

10 statistics released for publication if such inclusion

11 would not render the filer’s data readily identifiable.

12 ‘‘(4) PERIOD OF EXEMPTIONS.—Exemptions

13 granted under this subsection shall be for 3-year peri14 ods.

15 ‘‘(5) PENDING REQUESTS.—The Secretary shall

16 not release publicly the report of a carrier making a

17 request under paragraph (1) while such request is

18 pending.

19 ‘‘(d) STREAMLINING AND SIMPLIFICATION.—The Sec20 retary shall streamline and simplify, to the maximum ex21 tent practicable, any reporting requirements the Secretary

22 imposes under this section.

23 ‘‘CHAPTER 143—FINANCE

‘‘Sec.

‘‘14301. Security interests in certain motor vehicles.

‘‘14302. Pooling and division of transportation or earnings.
199

•HR 2539 RH

1 ‘‘§ 14301. Security interests in certain motor vehicles

2 ‘‘(a) DEFINITIONS.—In this section, the following defi3 nitions apply:

4 ‘‘(1) MOTOR VEHICLE.—The term ‘motor vehicle’

5 means a truck of rated capacity (gross vehicle weight)

6 of at least 10,000 pounds, a highway tractor of rated

7 capacity (gross combination weight) of at least 10,000

8 pounds, a property-carrying trailer or semitrailer

9 with at least one load-carrying axle of at least 10,000

10 pounds, or a motor bus with a seating capacity of at

11 least 10 individuals.

12 ‘‘(2) LIEN CREDITOR.—The term ‘lien creditor’

13 means a creditor having a lien on a motor vehicle

14 and includes an assignee for benefit of creditors from

15 the date of assignment, a trustee in a case under title

16 11 from the date of filing of the petition in that case,

17 and a receiver in equity from the date of appointment

18 of the receiver.

19 ‘‘(3) SECURITY INTEREST.—The term ‘security

20 interest’ means an interest (including an interest es21 tablished by a conditional sales contract, mortgage,

22 equipment trust, or other lien or title retention con23 tract, or lease) in a motor vehicle when the interest

24 secures payment or performance of an obligation.

25 ‘‘(4) PERFECTION.—The term ‘perfection’, as re26 lated to a security interest, means taking action (in-
200

•HR 2539 RH

1 cluding public filing, recording, notation on a certifi2 cate of title, and possession of collateral by the secured

3 party), or the existence of facts, required under law

4 to make a security interest enforceable against general

5 creditors and subsequent lien creditors of a debtor, but

6 does not include compliance with requirements related

7 only to the establishment of a valid security interest

8 between the debtor and the secured party.

9 ‘‘(b) REQUIREMENTS FOR PERFECTION OF SECURITY

10 INTEREST.—A security interest in a motor vehicle owned

11 by, or in the possession and use of, a carrier registered

12 under section 13902 of this title and owing payment or per13 formance of an obligation secured by that security interest

14 is perfected in all jurisdictions against all general, and sub15 sequent lien, creditors of, and all persons taking a motor

16 vehicle by sale (or taking or retaining a security interest

17 in a motor vehicle) from, that carrier when—

18 ‘‘(1) a certificate of title is issued for a motor ve19 hicle under a law of a jurisdiction that requires or

20 permits indication, on a certificate or title, of a secu21 rity interest in the motor vehicle if the security inter22 est is indicated on the certificate;

23 ‘‘(2) a certificate of title has not been issued and

24 the law of the State where the principal place of busi25 ness of that carrier is located requires or permits pub-
201

•HR 2539 RH

1 lic filing or recording of, or in relation to, that secu2 rity interest if there has been such a public filing or

3 recording; and

4 ‘‘(3) a certificate of title has not been issued and

5 the security interest cannot be perfected under para6 graph (2) of this subsection, if the security interest

7 has been perfected under the law (including the con8 flict of laws rules) of the State where the principal

9 place of business of that carrier is located.

10 ‘‘§ 14302. Pooling and division of transportation or

11 earnings

12 ‘‘(a) APPROVAL REQUIRED.—A carrier providing

13 transportation subject to jurisdiction under subchapter I of

14 chapter 135 of this title may not agree or combine with

15 another such carrier to pool or divide traffic or services or

16 any part of their earnings without the approval of the

17 Panel under this section.

18 ‘‘(b) STANDARDS FOR APPROVAL.—The Panel may ap19 prove and authorize an agreement or combination between

20 or among motor carriers of passengers, or between a motor

21 carrier of passengers and a rail carrier of passengers if the

22 carriers involved assent to the pooling or division and the

23 Panel finds that a pooling or division of traffic, services,

24 or earnings—
202

•HR 2539 RH

1 ‘‘(1) will be in the interest of better service to the

2 public or of economy of operation; and

3 ‘‘(2) will not unreasonably restrain competition.

4 ‘‘(c) PROCEDURE.—

5 ‘‘(1) APPLICATION.—Any motor carrier of prop6 erty may apply to the Panel for approval of an agree7 ment or combination with another such carrier to

8 pool or divide traffic or any services or any part of

9 their earnings by filing such agreement or combina10 tion with the Panel not less than 50 days before its

11 effective date.

12 ‘‘(2) DETERMINATION OF IMPORTANCE AND RE13 STRAINT ON COMPETITION.—Prior to the effective date

14 of the agreement or combination, the Panel shall de15 termine whether the agreement or combination is of

16 major transportation importance and whether there is

17 substantial likelihood that the agreement or combina18 tion will unduly restrain competition. If the Panel

19 determines that neither of these 2 factors exists, it

20 shall, prior to such effective date and without a hear21 ing, approve and authorize the agreement or combina22 tion, under such rules and regulations as the Panel

23 may issue, and for such consideration between such

24 carriers and upon such terms and conditions as shall

25 be found by the Panel to be just and reasonable.
203

•HR 2539 RH

1 ‘‘(3) HEARING.—If the Panel determines either

2 that the agreement or combination is of major trans3 portation importance or that there is substantial like4 lihood that the agreement or combination will unduly

5 restrain competition, the Panel shall hold a hearing

6 concerning whether the agreement or combination will

7 be in the interest of better service to the public or of

8 economy in operation and whether it will unduly re9 strain competition and shall suspend operation of

10 such agreement or combination pending such hearing

11 and final decision thereon. After such hearing, the

12 Panel shall indicate to what extent it finds that the

13 agreement or combination will be in the interest of

14 better service to the public or of economy in operation

15 and will not unduly restrain competition and if as16 sented to by all the carriers involved, shall to that ex17 tent, approve and authorize the agreement or com18 bination, under such rules and regulations as the

19 Panel may issue, and for such consideration between

20 such carriers and upon such terms and conditions as

21 shall be found by the Panel to be just and reasonable.

22 ‘‘(4) SPECIAL RULES FOR HOUSEHOLD GOODS

23 CARRIERS.—In the case of an application for Panel

24 approval of an agreement or combination between a

25 motor carrier providing transportation of household
204

•HR 2539 RH

1 goods and its agents to pool or divide traffic or serv2 ices or any part of their earnings, such agreement or

3 combination shall be presumed to be in the interest of

4 better service to the public and of economy in oper5 ation and not to restrain competition unduly if the

6 practices proposed to be carried out under such agree7 ment or combination are the same as or similar to

8 practices carried out under agreements and combina9 tions between motor carriers providing transportation

10 of household goods to pool or divide traffic or service

11 of any part of their earnings approved by the Inter12 state Commerce Commission before the effective date

13 of this section.

14 ‘‘(5) STREAMLINING AND SIMPLIFYING.—The

15 Panel shall streamline, simplify, and expedite, to the

16 maximum extent practicable, the process (including

17 any paperwork) for submission and approval of ap18 plications under this section for agreements and com19 binations between motor carriers providing transpor20 tation of household goods and their agents.

21 ‘‘(d) CONDITIONS.—The Panel may impose conditions

22 governing the pooling or division and may approve and

23 authorize payment of a reasonable consideration between

24 the carriers.
205

•HR 2539 RH

1 ‘‘(e) INITIATION OF PROCEEDING.—The Panel may

2 begin a proceeding under this section on its own initiative

3 or on application.

4 ‘‘(f) EFFECT OF APPROVAL.—A carrier may partici5 pate in an arrangement approved by or exempted by the

6 Panel under this section without the approval of any other

7 Federal, State, or municipal body. A carrier participating

8 in an approved or exempted arrangement is exempt from

9 the antitrust laws and from all other law, including State

10 and municipal law, as necessary to let that person carry

11 out the arrangement.

12 ‘‘CHAPTER 145—FEDERAL-STATE RELATIONS

‘‘Sec.

‘‘14501. Federal authority over intrastate transportation.

‘‘14502. Tax discrimination against motor carrier transportation property.

‘‘14503. Withholding State and local income tax by certain carriers.

‘‘14504. Registration of motor carriers by a State.

‘‘14505. State tax.

13 ‘‘§ 14501. Federal authority over intrastate transpor14 tation

15 ‘‘(a) MOTOR CARRIERS OF PASSENGERS.—No State or

16 political subdivision thereof and no interstate agency or

17 other political agency of two or more States shall enact or

18 enforce any law, rule, regulation, standard, or other provi19 sion having the force and effect of law relating to scheduling

20 of interstate or intrastate transportation (including dis21 continuance or reduction in the level of service) provided

22 by motor carrier of passengers subject to jurisdiction under
206

•HR 2539 RH

1 subchapter I of chapter 135 of this title on an interstate

2 route or relating to the implementation of any change in

3 the rates for such transportation or for any charter trans4 portation except to the extent that notice, not in excess of

5 30 days, of changes in schedules may be required. This sub6 section shall not apply to intrastate commuter bus oper7 ations.

8 ‘‘(b) FREIGHT FORWARDERS AND BROKERS.—

9 ‘‘(1) GENERAL RULE.—Subject to paragraph (2)

10 of this subsection, no State or political subdivision

11 thereof and no intrastate agency or other political

12 agency of two or more States shall enact or enforce

13 any law, rule, regulation, standard, or other provi14 sion having the force and effect of law relating to

15 intrastate rates, intrastate routes, or intrastate serv16 ices of any freight forwarder or broker.

17 ‘‘(2) CONTINUATION OF HAWAII’S AUTHORITY.—

18 Nothing in this subsection and the amendments made

19 by the Surface Freight Forwarder Deregulation Act of

20 1986 shall be construed to affect the authority of the

21 State of Hawaii to continue to regulate a motor car22 rier operating within the State of Hawaii.

23 ‘‘(c) MOTOR CARRIERS OF PROPERTY.—

24 ‘‘(1) GENERAL RULE.—Except as provided in

25 paragraphs (2) and (3), a State, political subdivision
207

•HR 2539 RH

1 of a State, or political authority of 2 or more States

2 may not enact or enforce a law, regulation, or other

3 provision having the force and effect of law related

4 to a price, route, or service of any motor carrier

5 (other than a carrier affiliated with a direct air car6 rier covered by section 41713(b)(4)) or any motor pri7 vate carrier, broker, or freight forwarder with respect

8 to the transportation of property.

9 ‘‘(2) MATTERS NOT COVERED.—Paragraph (1)—

10 ‘‘(A) shall not restrict the safety regulatory

11 authority of a State with respect to motor vehi12 cles, the authority of a State to impose highway

13 route controls or limitations based on the size or

14 weight of the motor vehicle or the hazardous na15 ture of the cargo, or the authority of a State to

16 regulate motor carriers with regard to minimum

17 amounts of financial responsibility relating to

18 insurance requirements and self-insurance au19 thorization;

20 ‘‘(B) does not apply to the transportation of

21 household goods; and

22 ‘‘(C) does not apply to the authority of a

23 State or a political subdivision of a State to

24 enact or enforce a law, regulation, or other pro25 vision relating to the price of for-hire motor ve-
208

•HR 2539 RH

1 hicle transportation by a tow truck, if such

2 transportation is performed—

3 ‘‘(i) at the request of a law enforcement

4 officer; or

5 ‘‘(ii) without the prior consent or au6 thorization of the owner or operator of the

7 motor vehicle.

8 ‘‘(3) STATE STANDARD TRANSPORTATION PRAC9 TICES.—

10 ‘‘(A) CONTINUATION.—Paragraph (1) shall

11 not affect any authority of a State, political sub12 division of a State, or political authority of 2 or

13 more States to enact or enforce a law, regulation,

14 or other provision, with respect to the intrastate

15 transportation of property by motor carriers, re16 lated to—

17 ‘‘(i) uniform cargo liability rules,

18 ‘‘(ii) uniform bills of lading or receipts

19 for property being transported,

20 ‘‘(iii) uniform cargo credit rules, or

21 ‘‘(iv) antitrust immunity for joint line

22 rates or routes, classifications, and mileage

23 guides,

24 if such law, regulation, or provision meets the re25 quirements of subparagraph (B).
209

•HR 2539 RH

1 ‘‘(B) REQUIREMENTS.—A law, regulation,

2 or provision of a State, political subdivision, or

3 political authority meets the requirements of this

4 subparagraph if—

5 ‘‘(i) the law, regulation, or provision

6 covers the same subject matter as, and com7 pliance with such law, regulation, or provi8 sion is no more burdensome than compli9 ance with, a provision of this part or a reg10 ulation issued by the Secretary or the Panel

11 under this part; and

12 ‘‘(ii) the law, regulation, or provision

13 only applies to a carrier upon request of

14 such carrier.

15 ‘‘(C) ELECTION.—Notwithstanding any

16 other provision of law, a carrier affiliated with

17 a direct air carrier through common controlling

18 ownership may elect to be subject to a law, regu19 lation, or provision of a State, political subdivi20 sion, or political authority under this para21 graph.

22 ‘‘(4) This subsection shall not apply with respect

23 to the State of Hawaii until August 22, 1997.
210

•HR 2539 RH

1 ‘‘§ 14502. Tax discrimination against motor carrier

2 transportation property

3 ‘‘(a) DEFINITIONS.—In this section, the following defi4 nitions apply:

5 ‘‘(1) ASSESSMENT.—The term ‘assessment’

6 means valuation for a property tax levied by a taxing

7 district.

8 ‘‘(2) ASSESSMENT JURISDICTION.—The term ‘as9 sessment jurisdiction’ means a geographical area in a

10 State used in determining the assessed value of prop11 erty for ad valorem taxation.

12 ‘‘(3) MOTOR CARRIER TRANSPORTATION PROP13 ERTY.—The term ‘motor carrier transportation prop14 erty’ means property, as defined by the Secretary,

15 owned or used by a motor carrier providing transpor16 tation in interstate commerce whether or not such

17 transportation is subject to jurisdiction under sub18 chapter I of chapter 135.

19 ‘‘(4) COMMERCIAL AND INDUSTRIAL PROP20 ERTY.—The term ‘commercial and industrial prop21 erty’ means property, other than transportation prop22 erty and land used primarily for agricultural pur23 poses or timber growing, devoted to a commercial or

24 industrial use, and subject to a property tax levy.

25 ‘‘(b) ACTS BURDENING INTERSTATE COMMERCE.—The

26 following acts unreasonably burden and discriminate
211

•HR 2539 RH

1 against interstate commerce and a State, subdivision of a

2 State, or authority acting for a State or subdivision of a

3 State may not do any of them:

4 ‘‘(1) EXCESSIVE VALUATION OF PROPERTY.—As5 sess motor carrier transportation property at a value

6 that has a higher ratio to the true market value of the

7 motor carrier transportation property than the ratio

8 that the assessed value of other commercial and indus9 trial property in the same assessment jurisdiction has

10 to the true market value of the other commercial and

11 industrial property.

12 ‘‘(2) TAX ON ASSESSMENT.—Levy or collect a tax

13 on an assessment that may not be made under para14 graph (1).

15 ‘‘(3) AD VALOREM TAX.—Levy or collect an ad

16 valorem property tax on motor carrier transportation

17 property at a tax rate that exceeds the tax rate appli18 cable to commercial and industrial property in the

19 same assessment jurisdiction.

20 ‘‘(c) JURISDICTION.—

21 ‘‘(1) IN GENERAL.—Notwithstanding section

22 1341 of title 28 and without regard to the amount in

23 controversy or citizenship of the parties, a district

24 court of the United States has jurisdiction, concurrent

25 with other jurisdiction of courts of the United States
212

•HR 2539 RH

1 and the States, to prevent a violation of subsection

2 (b) of this section.

3 ‘‘(2) LIMITATION IN RELIEF.—Relief may be

4 granted under this subsection only if the ratio of as5 sessed value to true market value of motor carrier

6 transportation property exceeds by at least 5 percent,

7 the ratio of assessed value to true market value of

8 other commercial and industrial property in the same

9 assessment jurisdiction.

10 ‘‘(3) BURDEN OF PROOF.—The burden of proof

11 in determining assessed value and true market value

12 is governed by State law.

13 ‘‘(4) VIOLATION.—If the ratio of the assessed

14 value of other commercial and industrial property in

15 the assessment jurisdiction to the true market value of

16 all other commercial and industrial property cannot

17 be determined to the satisfaction of the district court

18 through the random-sampling method known as a

19 sales assessment ratio study (to be carried out under

20 statistical principles applicable to such a study), the

21 court shall find, as a violation of this section—

22 ‘‘(A) an assessment of the motor carrier

23 transportation property at a value that has a

24 higher ratio to the true market value of the

25 motor carrier transportation property than the
213

•HR 2539 RH

1 assessment value of all other property subject to

2 a property tax levy in the assessment jurisdic3 tion has to the true market value of all such

4 other property; and

5 ‘‘(B) the collection of ad valorem property

6 tax on the motor carrier transportation property

7 at a tax rate that exceeds the tax ratio rate ap8 plicable to taxable property in the taxing dis9 trict.

10 ‘‘§ 14503. Withholding State and local income tax by

11 certain carriers

12 ‘‘(a) SINGLE STATE TAX WITHHOLDING.—

13 ‘‘(1) IN GENERAL.—No part of the compensation

14 paid by a motor carrier providing transportation

15 subject to jurisdiction under subchapter I of chapter

16 135 or by a motor private carrier to an employee who

17 performs regularly assigned duties in 2 or more

18 States as such an employee with respect to a motor

19 vehicle shall be subject to the income tax laws of any

20 State or subdivision of that State, other than the

21 State or subdivision thereof of the employee’s resi22 dence.

23 ‘‘(2) EMPLOYEE DEFINED.—In this subsection,

24 the term ‘employee’ has the meaning given such term

25 in section 31132.
214

•HR 2539 RH

1 ‘‘(b) SPECIAL RULES.—

2 ‘‘(1) CALCULATION OF EARNINGS.—In this sub3 section, an employee is deemed to have earned more

4 than 50 percent of pay in a State or subdivision of

5 that State in which the time worked by the employee

6 in the State or subdivision is more than 50 percent

7 of the total time worked by the employee while em8 ployed during the calendar year.

9 ‘‘(2) WATER CARRIERS.—A water carrier provid10 ing transportation subject to jurisdiction under sub11 chapter II of chapter 135 shall file income tax infor12 mation returns and other reports only with—

13 ‘‘(A) the State and subdivision of residence

14 of the employee (as shown on the employment

15 records of the carrier); and

16 ‘‘(B) the State and subdivision in which the

17 employee earned more than 50 percent of the pay

18 received by the employee from the carrier during

19 the preceding calendar year.

20 ‘‘(3) APPLICABILITY TO SAILORS.—This sub21 section applies to pay of a master, officer, or sailor

22 who is a member of the crew on a vessel engaged in

23 foreign, coastwise, intercoastal, or noncontiguous

24 trade or in the fisheries of the United States.
215

•HR 2539 RH

1 ‘‘(c) FILING OF INFORMATION.—A motor and motor

2 private carrier withholding pay from an employee under

3 subsection (a) of this section shall file income tax informa4 tion returns and other reports only with the State and sub5 division of residence of the employee.

6 ‘‘§ 14504. Registration of motor carriers by a State

7 ‘‘(a) DEFINITIONS.—In this section, the terms ‘stand8 ards’ and ‘amendments to standards’ mean the specification

9 of forms and procedures required by regulations of the Sec10 retary to prove the lawfulness of transportation by motor

11 carrier referred to in section 13501.

12 ‘‘(b) GENERAL RULE.—The requirement of a State

13 that a motor carrier, providing transportation subject to

14 jurisdiction under subchapter I of chapter 135 and provid15 ing transportation in that State, must register with the

16 State is not an unreasonable burden on transportation re17 ferred to in section 13501 when the State registration is

18 completed under standards of the Secretary under sub19 section (c). When a State registration requirement imposes

20 obligations in excess of the standards of the Secretary, the

21 part in excess is an unreasonable burden.

22 ‘‘(c) SINGLE STATE REGISTRATION SYSTEM.—

23 ‘‘(1) IN GENERAL.—The Secretary shall main24 tain standards for implementing a system under

25 which—
216

•HR 2539 RH

1 ‘‘(A) a motor carrier is required to register

2 annually with only one State by providing evi3 dence of its Federal registration under chapter

4 139;

5 ‘‘(B) the State of registration shall fully

6 comply with standards prescribed under this sec7 tion; and

8 ‘‘(C) such single State registration shall be

9 deemed to satisfy the registration requirements of

10 all other States.

11 ‘‘(2) SPECIFIC REQUIREMENTS.—

12 ‘‘(A) EVIDENCE OF FEDERAL REGISTRA13 TION; PROOF OF INSURANCE; PAYMENT OF

14 FEES.—Under the standards of the Secretary im15 plementing the single State registration system

16 described in paragraph (1) of this subsection,

17 only a State acting in its capacity as registra18 tion State under such single State system may

19 require a motor carrier registered by the Sec20 retary under this part—

21 ‘‘(i) to file and maintain evidence of

22 such Federal registration;

23 ‘‘(ii) to file satisfactory proof of re24 quired insurance or qualification as a self25 insurer;
217

•HR 2539 RH

1 ‘‘(iii) to pay directly to such State fee

2 amounts in accordance with the fee system

3 established under subparagraph (B)(iv) of

4 this paragraph, subject to allocation of fee

5 revenues among all States in which the car6 rier operates and which participate in the

7 single State registration system; and

8 ‘‘(iv) to file the name of a local agent

9 for service of process.

10 ‘‘(B) RECEIPTS; FEE SYSTEM.—The stand11 ards of the Secretary—

12 ‘‘(i) shall require that the registration

13 State issue a receipt, in a form prescribed

14 under the standards, reflecting that the car15 rier has filed proof of insurance as provided

16 under subparagraph (A)(ii) of this para17 graph and has paid fee amounts in accord18 ance with the fee system established under

19 clause (iv) of this subparagraph;

20 ‘‘(ii) shall require that copies of the re21 ceipt issued under clause (i) of this sub22 paragraph be kept in each of the carrier’s

23 commercial motor vehicles;

24 ‘‘(iii) shall not require decals, stamps,

25 cab cards, or any other means of registering
218

•HR 2539 RH

1 or identifying specific vehicles operated by

2 the carrier;

3 ‘‘(iv) shall establish a fee system for the

4 filing of proof of insurance as provided

5 under subparagraph (A)(ii) of this para6 graph that—

7 ‘‘(I) will be based on the number

8 of commercial motor vehicles the car9 rier operates in a State and on the

10 number of States in which the carrier

11 operates;

12 ‘‘(II) will minimize the costs of

13 complying with the registration sys14 tem; and

15 ‘‘(III) will result in a fee for each

16 participating State that is equal to the

17 fee, not to exceed $10 per vehicle, that

18 such State collected or charged as of

19 November 15, 1991; and

20 ‘‘(v) shall not authorize the charging or

21 collection of any fee for filing and main22 taining a certificate or permit under sub23 paragraph (A)(i) of this paragraph.

24 ‘‘(C) PROHIBITED FEES.—The charging or

25 collection of any fee under this section that is not
219

•HR 2539 RH

1 in accordance with the fee system established

2 under subparagraph (B)(iv) of this paragraph

3 shall be deemed to be a burden on interstate com4 merce.

5 ‘‘(D) LIMITATION ON PARTICIPATION BY

6 STATES.—Only a State which, as of January 1,

7 1991, charged or collected a fee for a vehicle

8 identification stamp or number under part 1023

9 of title 49, Code of Federal Regulations, shall be

10 eligible to participate as a registration State

11 under this subsection or to receive any fee reve12 nue under this subsection.

13 ‘‘§ 14505. State tax

14 ‘‘A State or political subdivision thereof may not col15 lect or levy a tax, fee, head charge, or other charge on—

16 ‘‘(1) a passenger traveling in interstate com17 merce by motor carrier;

18 ‘‘(2) the transportation of a passenger traveling

19 in interstate commerce by motor carrier;

20 ‘‘(3) the sale of passenger transportation in

21 interstate commerce by motor carrier; or

22 ‘‘(4) the gross receipts derived from such trans23 portation.
220

•HR 2539 RH

1 ‘‘CHAPTER 147—ENFORCEMENT;

2 INVESTIGATIONS; RIGHTS; REMEDIES

‘‘Sec.

‘‘14701. General authority.

‘‘14702. Enforcement by the regulatory authority.

‘‘14703. Enforcement by the Attorney General.

‘‘14704. Rights and remedies of persons injured by carriers or brokers.

‘‘14705. Limitation on actions by and against carriers.

‘‘14706. Liability of carriers under receipts and bills of lading.

‘‘14707. Private enforcement of registration requirement.

‘‘14708. Dispute settlement program for household goods carriers.

‘‘14709. Tariff reconciliation rules for motor carriers of property.

3 ‘‘§ 14701. General authority

4 ‘‘(a) INVESTIGATIONS.—The Secretary or the Panel, as

5 applicable, may begin an investigation under this part on

6 the Secretary’s or the Panel’s own initiative or on com7 plaint. If the Secretary or Panel, as applicable, finds that

8 a carrier or broker is violating this part, the Secretary or

9 Panel, as applicable, shall take appropriate action to com10 pel compliance with this part. If the Secretary finds that

11 a foreign motor carrier or foreign motor private carrier is

12 violating chapter 139, the Secretary shall take appropriate

13 action to compel compliance with that chapter. The Sec14 retary or Panel, as applicable, may take action under this

15 subsection only after giving the carrier or broker notice of

16 the investigation and an opportunity for a proceeding.

17 ‘‘(b) COMPLAINTS.—A person, including a govern18 mental authority, may file with the Secretary or Panel, as

19 applicable, a complaint about a violation of this part by

20 a carrier providing, or broker for, transportation or service
221

•HR 2539 RH

1 subject to jurisdiction under this part or a foreign motor

2 carrier or foreign motor private carrier providing transpor3 tation registered under section 13902 of this title. The com4 plaint must state the facts that are the subject of the viola5 tion. The Secretary or Panel, as applicable, may dismiss

6 a complaint that it determines does not state reasonable

7 grounds for investigation and action.

8 ‘‘(c) DEADLINE.—A formal investigative proceeding

9 begun by the Secretary or Panel under subsection (a) of

10 this section is dismissed automatically unless it is con11 cluded with administrative finality by the end of the 3d

12 year after the date on which it was begun.

13 ‘‘§ 14702. Enforcement by the regulatory authority

14 ‘‘(a) IN GENERAL.—The Secretary or the Panel, as ap15 plicable, may bring a civil action—

16 ‘‘(1) to enforce section 14103 of this title; or

17 ‘‘(2) to enforce this part, or a regulation or order

18 of the Secretary or Panel, as applicable, when vio19 lated by a carrier or broker providing transportation

20 or service subject to jurisdiction under subchapter I or

21 III of chapter 135 of this title or by a foreign motor

22 carrier or foreign motor private carrier providing

23 transportation registered under section 13902 of this

24 title.
222

•HR 2539 RH

1 ‘‘(b) VENUE.—In a civil action under subsection (a)(2)

2 of this section—

3 ‘‘(1) trial is in the judicial district in which the

4 carrier, foreign motor carrier, foreign motor private

5 carrier, or broker operates;

6 ‘‘(2) process may be served without regard to the

7 territorial limits of the district or of the State in

8 which the action is instituted; and

9 ‘‘(3) a person participating with a carrier or

10 broker in a violation may be joined in the civil action

11 without regard to the residence of the person.

12 ‘‘(c) STANDING.—The Panel, through its own attor13 neys, may bring or participate in any civil action involv14 ing motor carrier undercharges.

15 ‘‘§ 14703. Enforcement by the Attorney General

16 ‘‘The Attorney General may, and on request of either

17 the Secretary of Transportation or Intermodal Surface

18 Transportation Panel shall, bring court proceedings—

19 ‘‘(1) to enforce this part or a regulation or order

20 of the Secretary or Panel or terms of registration

21 under this part; and

22 ‘‘(2) to prosecute a person violating this part or

23 a regulation or order of the Secretary or Panel or

24 term of registration under this part.
223

•HR 2539 RH

1 ‘‘§ 14704. Rights and remedies of persons injured by

2 carriers or brokers

3 ‘‘(a) ENFORCEMENT OF ORDER.—A person injured be4 cause a carrier or broker providing transportation or serv5 ice subject to jurisdiction under chapter 135 does not obey

6 an order of the Secretary or the Panel, as applicable, under

7 this part, except an order for the payment of money, may

8 bring a civil action to enforce that order under this sub9 section.

10 ‘‘(b) LIABILITY AND DAMAGES.—

11 ‘‘(1) LIABILITY FOR EXCEEDING TARIFF RATE.—

12 A carrier providing transportation or service subject

13 to jurisdiction under chapter 135 is liable to a person

14 for amounts charged that exceed the applicable rate

15 for transportation or service contained in a tariff in

16 effect under section 13702 of this title.

17 ‘‘(2) DAMAGES FOR VIOLATIONS.—A carrier or

18 broker providing transportation or service subject to

19 jurisdiction under chapter 135 is liable for damages

20 sustained by a person as a result of an act or omis21 sion of that carrier or broker in violation of this part.

22 ‘‘(c) ELECTION.—

23 ‘‘(1) COMPLAINT TO DOT OR PANEL; CIVIL AC24 TION.—A person may file a complaint with the Panel

25 or the Secretary, as applicable, under section

26 14701(b) of this title or bring a civil action under
224

•HR 2539 RH

1 subsection (b)(1) or (2) of this section to enforce li2 ability against a carrier or broker providing trans3 portation or service subject to jurisdiction under

4 chapter 135. A person may bring a civil action for

5 injunctive relief for violations of sections 14102 and

6 14103.

7 ‘‘(2) ORDER OF DOT OR PANEL.—

8 ‘‘(A) IN GENERAL.—When the Panel or Sec9 retary, as applicable, makes an award under

10 subsection (b) of this section, the Panel or Sec11 retary, as applicable, shall order the carrier to

12 pay the amount awarded by a specific date. The

13 Panel or Secretary, as applicable, may order a

14 carrier or broker providing transportation or

15 service subject to jurisdiction under chapter 135

16 to pay damages only when the proceeding is on

17 complaint.

18 ‘‘(B) ENFORCEMENT BY CIVIL ACTION.—The

19 person for whose benefit an order of the Panel or

20 Secretary requiring the payment of money is

21 made may bring a civil action to enforce that

22 order under this paragraph if the carrier or

23 broker does not pay the amount awarded by the

24 date payment was ordered to be made.

25 ‘‘(d) PROCEDURE.—
225

•HR 2539 RH

1 ‘‘(1) IN GENERAL.—When a person begins a civil

2 action under subsection (b) of this section to enforce

3 an order of the Panel or Secretary requiring the pay4 ment of damages by a carrier or broker providing

5 transportation or service subject to jurisdiction under

6 chapter 135 of this title, the text of the order of the

7 Panel or Secretary must be included in the com8 plaint. In addition to the district courts of the United

9 States, a State court of general jurisdiction having

10 jurisdiction of the parties has jurisdiction to enforce

11 an order under this paragraph. The findings and

12 order of the Panel or Secretary are competent evi13 dence of the facts stated in them. Trial in a civil ac14 tion brought in a district court of the United States

15 under this paragraph is in the judicial district in

16 which the plaintiff resides or in which the principal

17 operating office of the carrier or broker is located. In

18 a civil action under this paragraph, the plaintiff is

19 liable for only those costs that accrue on an appeal

20 taken by the plaintiff.

21 ‘‘(2) PARTIES.—All parties in whose favor the

22 award was made may be joined as plaintiffs in a

23 civil action brought in a district court of the United

24 States under this subsection and all the carriers that

25 are parties to the order awarding damages may be
226

•HR 2539 RH

1 joined as defendants. Trial in the action is in the ju2 dicial district in which any one of the plaintiffs could

3 bring the action against any one of the defendants.

4 Process may be served on a defendant at its principal

5 operating office when that defendant is not in the dis6 trict in which the action is brought. A judgment or7 dering recovery may be made in favor of any of those

8 plaintiffs against the defendant found to be liable to

9 that plaintiff.

10 ‘‘(3) ATTORNEY’S FEES.—The district court shall

11 award a reasonable attorney’s fee as a part of the

12 damages for which a carrier or broker is found liable

13 under this subsection. The district court shall tax and

14 collect that fee as a part of the costs of the action.

15 ‘‘§ 14705. Limitation on actions by and against car16 riers

17 ‘‘(a) IN GENERAL.—A carrier providing transpor18 tation or service subject to jurisdiction under chapter 135

19 must begin a civil action to recover charges for transpor20 tation or service provided by the carrier within 18 months

21 after the claim accrues.

22 ‘‘(b) OVERCHARGES.—A person must begin a civil ac23 tion to recover overcharges within 18 months after the claim

24 accrues. If the claim is against a carrier providing trans25 portation subject to jurisdiction under chapter 135 and an
227

•HR 2539 RH

1 election to file a complaint with the Panel or Secretary,

2 as applicable, is made under section 14704(c)(1), the com3 plaint must be filed within 3 years after the claim accrues.

4 ‘‘(c) DAMAGES.—A person must file a complaint with

5 the Panel or Secretary, as applicable, to recover damages

6 under section 14704(b)(2) of this title within 2 years after

7 the claim accrues.

8 ‘‘(d) EXTENSIONS.—The limitation periods under sub9 section (b) of this section are extended for 6 months from

10 the time written notice is given to the claimant by the car11 rier of disallowance of any part of the claim specified in

12 the notice if a written claim is given to the carrier within

13 those limitation periods. The limitation periods under sub14 section (b) of this section and the 2-year period under sub15 section (c) of this section are extended for 90 days from

16 the time the carrier begins a civil action under subsection

17 (a) of this section to recover charges related to the same

18 transportation or service, or collects (without beginning a

19 civil action under that subsection) the charge for that trans20 portation or service if that action is begun or collection is

21 made within the appropriate period.

22 ‘‘(e) PAYMENT.—A person must begin a civil action

23 to enforce an order of the Panel or Secretary against a car24 rier for the payment of money within 1 year after the date

25 the order required the money to be paid.
228

•HR 2539 RH

1 ‘‘(f) GOVERNMENT TRANSPORTATION.—This section

2 applies to transportation for the United States Government.

3 The time limitations under this section are extended, as re4 lated to transportation for or on behalf of the United States

5 Government, for 3 years from the later of the date of—

6 ‘‘(1) payment of the rate for the transportation

7 or service involved;

8 ‘‘(2) subsequent refund for overpayment of that

9 rate; or

10 ‘‘(3) deduction made under section 3726 of title

11 31.

12 ‘‘(g) ACCRUAL DATE.—A claim related to a shipment

13 of property accrues under this section on delivery or tender

14 of delivery by the carrier.

15 ‘‘§ 14706. Liability of carriers under receipts and bills

16 of lading

17 ‘‘(a) GENERAL LIABILITY.—

18 ‘‘(1) MOTOR CARRIERS AND FREIGHT FOR19 WARDERS.—A carrier providing transportation or

20 service subject to jurisdiction under subchapter I or

21 III of chapter 135 shall issue a receipt or bill of lad22 ing for property it receives for transportation under

23 this part. That carrier and any other carrier that de24 livers the property and is providing transportation or

25 service subject to jurisdiction under subchapter I or
229

•HR 2539 RH

1 III of chapter 135 or chapter 105 are liable to the

2 person entitled to recover under the receipt or bill of

3 lading. The liability imposed under this paragraph is

4 for the actual loss or injury to the property caused by

5 (A) the receiving carrier, (B) the delivering carrier,

6 or (C) another carrier over whose line or route the

7 property is transported in the United States or from

8 a place in the United States to a place in an adjacent

9 foreign country when transported under a through

10 bill of lading and, except in the case of a freight for11 warder, applies to property reconsigned or diverted

12 under a tariff filed under section 13702 of this title.

13 Failure to issue a receipt or bill of lading does not

14 affect the liability of a carrier. A delivering carrier

15 is deemed to be the carrier performing the line-haul

16 transportation nearest the destination but does not

17 include a carrier providing only a switching service

18 at the destination.

19 ‘‘(2) FREIGHT FORWARDER.—A freight for20 warder is both the receiving and delivering carrier.

21 When a freight forwarder provides service and uses a

22 motor carrier providing transportation subject to ju23 risdiction under subchapter I of chapter 135 to re24 ceive property from a consignor, the motor carrier

25 may execute the bill of lading or shipping receipt for
230

•HR 2539 RH

1 the freight forwarder with its consent. With the con2 sent of the freight forwarder, a motor carrier may de3 liver property for a freight forwarder on the freight

4 forwarder’s bill of lading, freight bill, or shipping re5 ceipt to the consignee named in it, and receipt for the

6 property may be made on the freight forwarder’s de7 livery receipt.

8 ‘‘(b) APPORTIONMENT.—The carrier issuing the receipt

9 or bill of lading under subsection (a) of this section or deliv10 ering the property for which the receipt or bill of lading

11 was issued is entitled to recover from the carrier over whose

12 line or route the loss or injury occurred the amount required

13 to be paid to the owners of the property, as evidenced by

14 a receipt, judgment, or transcript, and the amount of its

15 expenses reasonably incurred in defending a civil action

16 brought by that person.

17 ‘‘(c) SPECIAL RULES.—

18 ‘‘(1) LIMITATION OF LIABILITY BY CONTRACT.—

19 A carrier may limit or be exempt from liability im20 posed under subsection (a) of this section by a mutual

21 written agreement, that is referred to in the receipt,

22 bill of lading, or contract for the transportation in23 volved entered into with the shipper, to limit liability

24 to a specified amount.
231

•HR 2539 RH

1 ‘‘(2) WATER CARRIERS.—If loss or injury to

2 property occurs while it is in the custody of a water

3 carrier, the liability of that carrier is determined by

4 its bill of lading and the law applicable to water

5 transportation. The liability of the initial or deliver6 ing carrier is the same as the liability of the water

7 carrier.

8 ‘‘(d) CIVIL ACTIONS.—

9 ‘‘(1) AGAINST DELIVERING CARRIER.—A civil ac10 tion under this section may be brought against a de11 livering carrier (other than a rail carrier) in a dis12 trict court of the United States or in a State court.

13 Trial, if the action is brought in a district court of

14 the United States is in a judicial district, and if in

15 a State court, is in a State through which the defend16 ant carrier operates.

17 ‘‘(2) AGAINST CARRIER RESPONSIBLE FOR

18 LOSS.—A civil action under this section may be

19 brought against the carrier alleged to have caused the

20 loss or damage, in the judicial district in which such

21 loss or damage is alleged to have occurred.

22 ‘‘(3) JURISDICTION OF COURTS.—A civil action

23 under this section may be brought in a United States

24 district court or in a State court.
232

•HR 2539 RH

1 ‘‘(4) JUDICIAL DISTRICT DEFINED.—In this sec2 tion, ‘judicial district’ means—

3 ‘‘(A) in the case of a United States district

4 court, a judicial district of the United States;

5 and

6 ‘‘(B) in the case of a State court, the appli7 cable geographic area over which such court exer8 cises jurisdiction.

9 ‘‘(e) MINIMUM PERIOD FOR FILING CLAIMS.—

10 ‘‘(1) IN GENERAL.—A carrier may not provide

11 by rule, contract, or otherwise, a period of less than

12 9 months for filing a claim against it under this sec13 tion and a period of less than 2 years for bringing

14 a civil action against it under this section. The pe15 riod for bringing a civil action is computed from the

16 date the carrier gives a person written notice that the

17 carrier has disallowed any part of the claim specified

18 in the notice.

19 ‘‘(2) SPECIAL RULES.—For the purposes of this

20 subsection—

21 ‘‘(A) an offer of compromise shall not con22 stitute a disallowance of any part of the claim

23 unless the carrier, in writing, informs the claim24 ant that such part of the claim is disallowed and

25 provides reasons for such disallowance; and
233

•HR 2539 RH

1 ‘‘(B) communications received from a car2 rier’s insurer shall not constitute a disallowance

3 of any part of the claim unless the insurer, in

4 writing, informs the claimant that such part of

5 the claim is disallowed, provides reason for such

6 disallowance, and informs the claimant that the

7 insurer is acting on behalf of the carrier.

8 ‘‘(f) LIMITING LIABILITY OF HOUSEHOLD GOODS CAR9 RIERS TO DECLARED VALUE.—A carrier or group of car10 riers subject to jurisdiction under subchapter I or III of

11 chapter 135 may petition the Panel to modify, eliminate,

12 or establish rates for the transportation of household goods

13 under which the liability of the carrier for that property

14 is limited to a value established by written declaration of

15 the shipper or by a written agreement.

16 ‘‘(g) MODIFICATIONS AND REFORMS.—

17 ‘‘(1) STUDY.—The Secretary shall conduct a

18 study to determine whether any modifications or re19 forms should be made to the loss and damage provi20 sions of this section.

21 ‘‘(2) FACTORS TO CONSIDER.—In conducting the

22 study, the Secretary, at a minimum, shall consider—

23 ‘‘(A) the efficient delivery of transportation

24 services;
234

•HR 2539 RH

1 ‘‘(B) international and intermodal har2 mony;

3 ‘‘(C) the public interest; and

4 ‘‘(D) the interest of carriers and shippers.

5 ‘‘(3) REPORT.—Not later than 18 months after

6 the effective date of this section, the Secretary shall

7 submit to Congress a report on the results of the

8 study, together with any recommendations of the Sec9 retary (including legislative recommendations) for

10 implementing modifications or reforms identified by

11 the Secretary as being appropriate.

12 ‘‘§ 14707. Private enforcement of registration require13 ment

14 ‘‘(a) IN GENERAL.—If a person provides transpor15 tation by motor vehicle or service in clear violation of sec16 tion 13901–13904 or 13906, a person injured by the trans17 portation or service may bring a civil action to enforce any

18 such section. In a civil action under this subsection, trial

19 is in the judicial district in which the person who violated

20 that section operates.

21 ‘‘(b) PROCEDURE.—A copy of the complaint in a civil

22 action under subsection (a) shall be served on the Secretary

23 and a certificate of service must appear in the complaint

24 filed with the court. The Secretary may intervene in a civil

25 action under subsection (a). The Secretary may notify the
235

•HR 2539 RH

1 district court in which the action is pending that the Sec2 retary intends to consider the matter that is the subject of

3 the complaint in a proceeding before the Secretary. When

4 that notice is filed, the court shall stay further action pend5 ing disposition of the proceeding before the Secretary.

6 ‘‘(c) ATTORNEY’S FEES.—In a civil action under sub7 section (a), the court may determine the amount of and

8 award a reasonable attorney’s fee to the prevailing party.

9 That fee is in addition to costs allowable under the Federal

10 Rules of Civil Procedure.

11 ‘‘§ 14708. Dispute settlement program for household

12 goods carriers

13 ‘‘(a) OFFERING SHIPPERS ARBITRATION.—As a condi14 tion of registration under section 13902 or 13903, a carrier

15 providing transportation of household goods subject to juris16 diction under subchapter I or III of chapter 135 must agree

17 to offer in accordance with this section to shippers of house18 hold goods arbitration as a means of settling disputes be19 tween such carriers and shippers of household goods con20 cerning damage or loss to the household goods transported.

21 ‘‘(b) ARBITRATION REQUIREMENTS.—

22 ‘‘(1) PREVENTION OF SPECIAL ADVANTAGE.—The

23 arbitration that is offered must be designed to prevent

24 a carrier from having any special advantage in any

25 case in which the claimant resides or does business at
236

•HR 2539 RH

1 a place distant from the carrier’s principal or other

2 place of business.

3 ‘‘(2) NOTICE OF ARBITRATION PROCEDURE.—The

4 carrier must provide the shipper an adequate notice

5 of the availability of neutral arbitration, including a

6 concise easy-to-read, accurate summary of the arbi7 tration procedure, any applicable fees, and disclosure

8 of the legal effects of election to utilize arbitration.

9 Such notice must be given to persons for whom house10 hold goods are to be transported by the carrier before

11 such goods are tendered to the carrier for transpor12 tation.

13 ‘‘(3) PROVISION OF FORMS.—Upon request of a

14 shipper, the carrier must promptly provide such

15 forms and other information as are necessary for ini16 tiating an action to resolve a dispute under arbitra17 tion.

18 ‘‘(4) INDEPENDENCE OF ARBITRATOR.—Each

19 person authorized to arbitrate or otherwise settle dis20 putes must be independent of the parties to the dis21 pute and must be capable, as determined under such

22 regulations as the Secretary may issue, to resolve such

23 disputes fairly and expeditiously. The carrier must

24 ensure that each person chosen to settle the disputes

25 is authorized and able to obtain from the shipper or
237

•HR 2539 RH

1 carrier any material and relevant information to the

2 extent necessary to carry out a fair and expeditious

3 decision making process.

4 ‘‘(5) LIMITATION ON FEES.—No fee of more than

5 $25 may be charged a shipper for instituting an arbi6 tration proceeding under this subsection. In any case

7 in which a shipper is charged a fee under this para8 graph for instituting an arbitration proceeding and

9 such dispute is settled in favor of the shipper, the per10 son settling the dispute must refund such fee to the

11 shipper unless the person settling the dispute deter12 mines that such refund is inappropriate.

13 ‘‘(6) REQUESTS.—The carrier must not require

14 the shipper to agree to utilize arbitration prior to the

15 time that a dispute arises. If the dispute involves a

16 claim for $1,000 or less and the shipper requests arbi17 tration, such arbitration shall be binding on the par18 ties. If the dispute involves a claim for more than

19 $1,000 and the shipper requests arbitration, such ar20 bitration shall be binding on the parties only if the

21 carrier agrees to arbitration.

22 ‘‘(7) ORAL PRESENTATION OF EVIDENCE.—The

23 arbitrator may provide for an oral presentation of a

24 dispute concerning transportation of household goods

25 by a party to the dispute (or a party’s representa-
238

•HR 2539 RH

1 tive), but such oral presentation may be made only if

2 all parties to the dispute expressly agree to such pres3 entation and the date, time, and location of such

4 presentation.

5 ‘‘(8) DEADLINE FOR DECISION.—The arbitrator

6 must, as expeditiously as possible but at least within

7 60 days of receipt of written notification of the dis8 pute, render a decision based on the information

9 gathered; except that, in any case in which a party

10 to the dispute fails to provide in a timely manner

11 any information concerning such dispute which the

12 person settling the dispute may reasonably require to

13 resolve the dispute, the arbitrator may extend such

14 60-day period for a reasonable period of time. A deci15 sion resolving a dispute may include any remedies

16 appropriate under the circumstances, including re17 pair, replacement, refund, reimbursement for ex18 penses, and compensation for damages.

19 ‘‘(c) LIMITATION ON USE OF MATERIALS.—Materials

20 and information obtained in the course of a decision mak21 ing process to settle a dispute by arbitration under this sec22 tion may not be used to bring an action under section

23 14905.

24 ‘‘(d) ATTORNEY’S FEES TO SHIPPERS.—In any court

25 action to resolve a dispute between a shipper of household
239

•HR 2539 RH

1 goods and a motor carrier providing transportation or serv2 ice subject to jurisdiction under subchapter I or III of chap3 ter 135 concerning the transportation of household goods by

4 such carrier, the shipper shall be awarded reasonable attor5 ney’s fees if—

6 ‘‘(1) the shipper submits a claim to the carrier

7 within 120 days after the date the shipment is deliv8 ered or the date the delivery is scheduled, whichever

9 is later;

10 ‘‘(2) the shipper prevails in such court action;

11 and

12 ‘‘(3)(A) a decision resolving the dispute was not

13 rendered through arbitration under this section with14 in the period provided under subsection (b)(8) of this

15 section or an extension of such period under such sub16 section; or

17 ‘‘(B) the court proceeding is to enforce a decision

18 rendered through arbitration under this section and is

19 instituted after the period for performance under such

20 decision has elapsed.

21 ‘‘(e) ATTORNEY’S FEES TO CARRIERS.—In any court

22 action to resolve a dispute between a shipper of household

23 goods and a carrier providing transportation, or service

24 subject to jurisdiction under subchapter I or III of chapter

25 135 concerning the transportation of household goods by
240

•HR 2539 RH

1 such carrier, such carrier may be awarded reasonable attor2 ney’s fees by the court only if the shipper brought such ac3 tion in bad faith—

4 ‘‘(1) after resolution of such dispute through ar5 bitration under this section; or

6 ‘‘(2) after institution of an arbitration proceed7 ing by the shipper to resolve such dispute under this

8 section but before—

9 ‘‘(A) the period provided under subsection

10 (b)(8) for resolution of such dispute (including,

11 if applicable, an extension of such period under

12 such subsection) ends; and

13 ‘‘(B) a decision resolving such dispute is

14 rendered.

15 ‘‘(f) LIMITATION OF APPLICABILITY TO COLLECT-ON16 DELIVERY TRANSPORTATION.—The provisions of this sec17 tion shall apply only in the case of collect-on-delivery trans18 portation of those types of household goods.

19 ‘‘§ 14709. Tariff reconciliation rules for motor carriers

20 of property

21 ‘‘Subject to review and approval by the Panel, motor

22 carriers subject to jurisdiction under subchapter I of chap23 ter 135 (other than motor carriers providing transportation

24 of household goods) and shippers may resolve, by mutual

25 consent, overcharge and under-charge claims resulting from
241

•HR 2539 RH

1 incorrect tariff provisions or billing errors arising from the

2 inadvertent failure to properly and timely file and main3 tain agreed upon rates, rules, or classifications in compli4 ance with sections 10761 and 10762 of this title as in effect

5 on the day before the effective date of this section. Resolution

6 of such claims among the parties shall not subject any party

7 to the penalties for departing from a filed tariff.

8 ‘‘CHAPTER 149—CIVIL AND CRIMINAL PENALTIES

Sec.

‘‘14901. General civil penalties.

‘‘14902. Civil penalty for accepting rebates from carrier.

‘‘14903. Tariff violations.

‘‘14904. Additional rate violations.

‘‘14905. Penalties for violations of rules relating to loading and unloading motor

vehicles.

‘‘14906. Evasion of regulation of carriers and brokers.

‘‘14907. Record keeping and reporting violations.

‘‘14908. Unlawful disclosure of information.

‘‘14909. Disobedience to subpoenas.

‘‘14910. General criminal penalty when specific penalty not provided.

‘‘14911. Punishment of corporation for violations committed by certain individuals.

‘‘14912. Weight-bumping in household goods transportation.

‘‘14913. Conclusiveness of rates in certain prosecutions.

9 ‘‘§ 14901. General civil penalties

10 ‘‘(a) REPORTING AND RECORDKEEPING.—A person re11 quired to make a report to the Secretary or the Panel, an12 swer a question, or make, prepare, or preserve a record

13 under this part concerning transportation subject to juris14 diction under subchapter I or III of chapter 135 or trans15 portation by a foreign carrier registered under section

16 13902, or an officer, agent, or employee of that person

17 that—

18 ‘‘(1) does not make the report;
242

•HR 2539 RH

1 ‘‘(2) does not specifically, completely, and truth2 fully answer the question;

3 ‘‘(3) does not make, prepare, or preserve the

4 record in the form and manner prescribed;

5 ‘‘(4) does not comply with section 13901; or

6 ‘‘(5) does not comply with section 13902(c);

7 is liable to the United States Government for a civil penalty

8 of not less than $500 for each violation and for each addi9 tional day the violation continues; except that, in the case

10 of a person who is not registered under this part to provide

11 transportation of passengers, or an officer, agent, or em12 ployee of such person, that does not comply with section

13 13901 with respect to providing transportation of pas14 sengers, the amount of the civil penalty shall not be less

15 than $2,000 for each violation and for each additional day

16 the violation continues.

17 ‘‘(b) TRANSPORTATION OF HAZARDOUS WASTES.—A

18 person subject to jurisdiction under subchapter I of chapter

19 135, or an officer, agent, or employee of that person, and

20 who is required to comply with section 13901 of this title

21 but does not so comply with respect to the transportation

22 of hazardous wastes as defined by the Environmental Pro23 tection Agency pursuant to section 3001 of the Solid Waste

24 Disposal Act (but not including any waste the regulation

25 of which under the Solid Waste Disposal Act has been sus-
243

•HR 2539 RH

1 pended by Congress) shall be liable to the United States for

2 a civil penalty not to exceed $20,000 for each violation.

3 ‘‘(c) FACTORS TO CONSIDER IN DETERMINING

4 AMOUNT.—In determining and negotiating the amount of

5 a civil penalty under subsection (a) or (d) concerning trans6 portation of household goods, the degree of culpability, any

7 history of prior such conduct, the degree of harm to shipper

8 or shippers, ability to pay, the effect on ability to do busi9 ness, whether the shipper has been adequately compensated

10 before institution of the proceeding, and such other matters

11 as fairness may require shall be taken into account.

12 ‘‘(d) PROTECTION OF HOUSEHOLD GOODS SHIP13 PERS.—If a carrier providing transportation of household

14 goods subject to jurisdiction under subchapter I or III of

15 chapter 135 or a receiver or trustee of such carrier fails

16 or refuses to comply with any regulation issued by the Sec17 retary or the Panel relating to protection of individual

18 shippers, such carrier, receiver, or trustee is liable to the

19 United States for a civil penalty of not less than $1,000

20 for each violation and for each additional day during which

21 the violation continues.

22 ‘‘(e) VIOLATION RELATING TO TRANSPORTATION OF

23 HOUSEHOLD GOODS.—Any person that knowingly engages

24 in or knowingly authorizes an agent or other person—
244

•HR 2539 RH

1 ‘‘(1) to falsify documents used in the transpor2 tation of household goods subject to jurisdiction under

3 subchapter I or III of chapter 135 which evidence the

4 weight of a shipment; or

5 ‘‘(2) to charge for accessorial services which are

6 not performed or for which the carrier is not entitled

7 to be compensated in any case in which such services

8 are not reasonably necessary in the safe and adequate

9 movement of the shipment;

10 is liable to the United States for a civil penalty of not less

11 than $2,000 for each violation and of not less than $5,000

12 for each subsequent violation. Any State may bring a civil

13 action in the United States district courts to compel a per14 son to pay a civil penalty assessed under this subsection.

15 ‘‘(f) VENUE.—Trial in a civil action under subsections

16 (a) through (e) of this section is in the judicial district in

17 which—

18 ‘‘(1) the carrier or broker has its principal office;

19 ‘‘(2) the carrier or broker was authorized to pro20 vide transportation or service under this part when

21 the violation occurred;

22 ‘‘(3) the violation occurred; or

23 ‘‘(4) the offender is found.
245

•HR 2539 RH

1 Process in the action may be served in the judicial district

2 of which the offender is an inhabitant or in which the of3 fender may be found.

4 ‘‘§ 14902. Civil penalty for accepting rebates from car5 rier

6 ‘‘A person—

7 ‘‘(1) delivering property to a carrier providing

8 transportation or service subject to jurisdiction under

9 chapter 135 for transportation under this part or for

10 whom that carrier will transport the property as con11 signor or consignee for that person from a State or

12 territory or possession of the United States to another

13 State or possession, territory, or to a foreign country;

14 and

15 ‘‘(2) knowingly accepting or receiving by any

16 means a rebate or offset against the rate for transpor17 tation for, or service of, that property contained in a

18 tariff required under section 13702;

19 is liable to the United States Government for a civil penalty

20 in an amount equal to 3 times the amount of money that

21 person accepted or received as a rebate or offset and 3 times

22 the value of other consideration accepted or received as a

23 rebate or offset. In a civil action under this section, all

24 money or other consideration received by the person during

25 a period of 6 years before an action is brought under this
246

•HR 2539 RH

1 section may be included in determining the amount of the

2 penalty, and if that total amount is included, the penalty

3 shall be 3 times that total amount.

4 ‘‘§ 14903. Tariff violations

5 ‘‘(a) CRIMINAL PENALTY FOR UNDERCHARGING.—A

6 person that knowingly offers, grants, gives, solicits, accepts,

7 or receives by any means transportation or service provided

8 for property by a carrier subject to jurisdiction under chap9 ter 135 at less than the rate in effect under section 13702

10 shall be fined at least $1,000 but not more than $20,000,

11 imprisoned for not more than 2 years, or both.

12 ‘‘(b) GENERAL CRIMINAL PENALTY.—A carrier pro13 viding transportation or service subject to jurisdiction

14 under chapter 135 or an officer, director, receiver, trustee,

15 lessee, agent, or employee of a corporation that is subject

16 to jurisdiction under that chapter, that willfully does not

17 observe its tariffs as required under section 13702, shall be

18 fined at least $1,000 but not more than $20,000, imprisoned

19 for not more than 2 years, or both.

20 ‘‘(c) ACTIONS OF AGENTS AND EMPLOYEES.—When

21 acting in the scope of their employment, the actions and

22 omissions of persons acting for or employed by a carrier

23 or shipper that is subject to subsection (a) or (b) of this

24 section are considered to be the actions and omissions of

25 that carrier or shipper as well as that person.
247

•HR 2539 RH

1 ‘‘(d) VENUE.—Trial in a criminal action under this

2 section is in the judicial district in which any part of the

3 violation is committed or through which the transportation

4 is conducted.

5 ‘‘§ 14904. Additional rate violations

6 ‘‘(a) REBATES BY AGENTS.—A person, or an officer,

7 employee, or agent of that person, that—

8 ‘‘(1) knowingly offers, grants, gives, solicits, ac9 cepts, or receives a rebate for concession, in violation

10 of a provision of this part related to motor carrier

11 transportation subject to jurisdiction under sub12 chapter I of chapter 135; or

13 (2) by any means knowingly and willfully as14 sists or permits another person to get transportation

15 that is subject to jurisdiction under that subchapter

16 at less than the rate in effect for that transportation

17 under section 13702,

18 shall be fined at least $200 for the first violation and at

19 least $250 for a subsequent violation.

20 ‘‘(b) UNDERCHARGING.—

21 ‘‘(1) FREIGHT FORWARDER.—A freight for22 warder providing service subject to jurisdiction under

23 subchapter III of chapter 135, or an officer, agent, or

24 employee of that freight forwarder, that knowingly

25 and willfully assists a person in getting, or willingly
248

•HR 2539 RH

1 permits a person to get, service provided under that

2 subchapter at less than the rate in effect for that serv3 ice under section 13702, shall be fined not more than

4 $500 for the first violation and not more than $2,000

5 for a subsequent violation.

6 ‘‘(2) AGENTS AND OTHERS.—A person that

7 knowingly and willfully by any means gets, or at8 tempts to get, service provided under subchapter III

9 of chapter 135 at less than the rate in effect for that

10 service under section 13702, shall be fined not more

11 than $500 for the first violation and not more than

12 $2,000 for a subsequent violation.

13 ‘‘§ 14905. Penalties for violations of rules relating to

14 loading and unloading motor vehicles

15 ‘‘(a) CIVIL PENALTIES.—Any person who knowingly

16 authorizes, consents to, or permits a violation of subsection

17 (a) or (b) of section 14103 or who knowingly violates sub18 section (a) of such section is liable to the United States Gov19 ernment for a civil penalty of not more than $10,000 for

20 each violation.

21 ‘‘(b) CRIMINAL PENALTIES.—Any person who know22 ingly violates section 14103(b) of this title shall be fined

23 not more than $10,000, imprisoned for not more than 2

24 years, or both.
249

•HR 2539 RH

1 ‘‘§ 14906. Evasion of regulation of carriers and bro2 kers

3 ‘‘A person, or an officer, employee, or agent of that

4 person that by any means knowingly and willfully tries to

5 evade regulation provided under this part for carriers or

6 brokers shall be fined at least $200 for the first violation

7 and at least $250 for a subsequent violation.

8 ‘‘§ 14907. Record keeping and reporting violations

9 ‘‘A person required to make a report to the Secretary

10 or the Panel, as applicable, answer a question, or make,

11 prepare, or preserve a record under this part about trans12 portation subject to jurisdiction under subchapter I or III

13 of chapter 135, or an officer, agent, or employee of that per14 son, that—

15 ‘‘(1) willfully does not make that report;

16 ‘‘(2) willfully does not specifically, completely,

17 and truthfully answer that question in 30 days from

18 the date the Secretary or Panel, as applicable, re19 quires the question to be answered;

20 ‘‘(3) willfully does not make, prepare, or preserve

21 that record in the form and manner prescribed;

22 ‘‘(4) knowingly and willfully falsifies, destroys,

23 mutilates, or changes that report or record;

24 ‘‘(5) knowingly and willfully files a false report

25 or record;
250

•HR 2539 RH

1 ‘‘(6) knowingly and willfully makes a false or

2 incomplete entry in that record about a business re3 lated fact or transaction; or

4 ‘‘(7) knowingly and willfully makes, prepares, or

5 preserves a record in violation of an applicable regu6 lation or order of the Secretary or Panel;

7 shall be fined not more than $5,000.

8 ‘‘§ 14908. Unlawful disclosure of information

9 ‘‘(a) DISCLOSURE OF SHIPMENT AND ROUTING INFOR10 MATION.—

11 ‘‘(1) VIOLATIONS.—A carrier or broker providing

12 transportation subject to jurisdiction under sub13 chapter I, II, or III of chapter 135 or an officer, re14 ceiver, trustee, lessee, or employee of that carrier or

15 broker, or another person authorized by that carrier

16 or broker to receive information from that carrier or

17 broker may not knowingly disclose to another person,

18 except the shipper or consignee, and another person

19 may not solicit, or knowingly receive, information

20 about the nature, kind, quantity, destination, con21 signee, or routing of property tendered or delivered to

22 that carrier or broker for transportation provided

23 under this part without the consent of the shipper or

24 consignee if that information may be used to the det25 riment of the shipper or consignee or may disclose
251

•HR 2539 RH

1 improperly to a competitor the business transactions

2 of the shipper or consignee.

3 ‘‘(2) FINE; VENUE.—A person violating para4 graph (1) of this subsection shall be fined not less

5 than $2,000. Trial in a criminal action under this

6 paragraph is in the judicial district in which any

7 part of the violation is committed.

8 ‘‘(b) LIMITATION ON STATUTORY CONSTRUCTION.—

9 This part does not prevent a carrier or broker providing

10 transportation subject to jurisdiction under chapter 135

11 from giving information—

12 ‘‘(1) in response to legal process issued under au13 thority of a court of the United States or a State;

14 ‘‘(2) to an officer, employee, or agent of the

15 United States Government, a State, or a territory or

16 possession of the United States; or

17 ‘‘(3) to another carrier or its agent to adjust mu18 tual traffic accounts in the ordinary course of busi19 ness.

20 ‘‘§ 14909. Disobedience to subpoenas

21 ‘‘A person not obeying a subpoena or requirement of

22 the Secretary or the Panel to appear and testify or produce

23 records shall be fined not less than $5,000, imprisoned for

24 not more than 1 year, or both.
252

•HR 2539 RH

1 ‘‘§ 14910. General criminal penalty when specific pen2 alty not provided

3 ‘‘When another criminal penalty is not provided under

4 this chapter, a person that knowingly and willfully violates

5 a provision of this part or a regulation or order prescribed

6 under this part, or a condition of a registration under this

7 part related to transportation that is subject to jurisdiction

8 under subchapter I or III of chapter 135 or a condition

9 of a registration under section 13902, shall be fined at least

10 $500 for the first violation and at least $500 for a subse11 quent violation. A separate violation occurs each day the

12 violation continues.

13 ‘‘§ 14911. Punishment of corporation for violations

14 committed by certain individuals

15 ‘‘An act or omission that would be a violation of this

16 part if committed by a director, officer, receiver, trustee,

17 lessee, agent, or employee of a carrier providing transpor18 tation or service subject to jurisdiction under chapter 135

19 that is a corporation is also a violation of this part by that

20 corporation. The penalties of this chapter apply to that vio21 lation. When acting in the scope of their employment, the

22 actions and omissions of individuals acting for or employed

23 by that carrier are considered to be the actions and omis24 sions of that carrier as well as that individual.
253

•HR 2539 RH

1 ‘‘§ 14912. Weight-bumping in household goods trans2 portation

3 ‘‘(a) WEIGHT-BUMPING DEFINED.—For the purposes

4 of this section, ‘weight-bumping’ means the knowing and

5 willful making or securing of a fraudulent weight on a ship6 ment of household goods which is subject to jurisdiction

7 under subchapter I or III of chapter 135.

8 ‘‘(b) PENALTY.—Any individual who has been found

9 to have committed weight-bumping shall, for each offense,

10 be fined at least $1,000 but not more than $10,000, impris11 oned for not more than 2 years, or both.

12 ‘‘§ 14913. Conclusiveness of rates in certain prosecu13 tions

14 ‘‘When a carrier publishes or files a particular rate

15 under section 13702 or participates in such a rate, the pub16 lished or filed rate is conclusive proof against that carrier,

17 its officers, and agents that it is the legal rate for that trans18 portation or service in a proceeding begun under section

19 14902 or 14903. A departure, or offer to depart, from that

20 published or filed rate is a violation of those sections.’’.

21 SEC. 104. MISCELLANEOUS MOTOR CARRIER PROVISIONS.

22 (a) MULTIPLE INSURERS.—Section 31138(c) of title

23 49, United States Code, is amended by adding at the end

24 thereof the following new paragraph:

25 ‘‘(3) A motor carrier may obtain the required amount

26 of financial responsibility from more than one source pro-
254

•HR 2539 RH

1 vided the cumulative amount is equal to the minimum re2 quirements of this section.’’.

3 (b) MINIMUM FINANCIAL RESPONSIBILITY REQUIRE4 MENTS WITH RESPECT TO CERTAIN MASS TRANSPOR5 TATION SERVICE.—Section 31138(e) is amended—

6 (1) by striking ‘‘or’’ at the end of paragraph (2);

7 (2) by striking the period at the end of para8 graph (3) and inserting ‘‘; or’’; and

9 (3) by adding at the end the following:

10 ‘‘(4) providing mass transportation service with11 in a transit service area in other than urbanized

12 areas under an agreement with a State or local gov13 ernment funded, in whole or in part, with a grant

14 under section 5310 or 5311, including transportation

15 designed and carried out to meet the special needs of

16 elderly individuals and individuals with disabilities;

17 provided that, in any case in which the transit serv18 ice area is located in more than 1 State, the mini19 mum level of financial responsibility for such motor

20 vehicle will be at least the highest level required for

21 any of such States.’’.

22 (c) TRANSPORTERS OF PROPERTY.—Section 31139(e)

23 of such title is amended by adding at the end thereof the

24 following:
255

•HR 2539 RH

1 ‘‘(3) A motor carrier may obtain the required amount

2 of financial responsibility from more than one source pro3 vided the cumulative amount is equal to the minimum re4 quirements of this section.’’.

5 (d) COMMERCIAL MOTOR VEHICLE DEFINED.—Sec6 tion 31132(1) of such title is amended—

7 (1) by redesignating subparagraph (C) as sub8 paragraph (D); and

9 (2) by striking subparagraph (B) and inserting

10 the following:

11 ‘‘(B) is designed or used to transport pas12 sengers for compensation, but excluding vehicles

13 providing taxicab service and having a capacity

14 of not more than 6 passengers and not operated

15 on a regular route or between specified places;

16 ‘‘(C) is designed or used to transport more

17 than 15 passengers, including the driver, and is

18 not used to transport passengers for compensa19 tion; or’’.

20 (e) SELF-INSURANCE RULES.—The Secretary of

21 Transportation shall continue to enforce the rules and regu22 lations of the Interstate Commerce Commission, as in effect

23 on July 1, 1995, governing the qualifications for approval

24 of a motor carrier as a self-insurer, until such time as the
256

•HR 2539 RH

1 Secretary finds it in the public interest to revise such rules.

2 The revised rules must provide for—

3 (1) continued ability of motor carriers to qualify

4 as self-insurers; and

5 (2) the continued qualification of all carriers

6 then so qualified under the terms and conditions set

7 by the Interstate Commerce Commission or Secretary

8 at the time of qualification.

9 (f) AUTOMOBILE TRANSPORTERS DEFINED.—The Sec10 retary of Transportation shall issue a regulation amending

11 the definition of automobile transporters under part 658 of

12 title 23, Code of Federal Regulations, to mean any vehicle

13 combination designed and used specifically for the trans14 port of assembled (capable of being driven) highway vehi15 cles, race car transporters, or specialty trailers designed for

16 the racing industry with a 10-foot 1-inch spread axle set17 ting.

18 TITLE II—TRANSPORTATION

19 ADJUDICATION PANEL

20 SEC. 201. TITLE 49 AMENDMENT.

21 (a) AMENDMENT.—Subtitle I of title 49, United States

22 Code, is amended by adding at the end the following new

23 chapter:
257

•HR 2539 RH

1 ‘‘CHAPTER 7—TRANSPORTATION

2 ADJUDICATION PANEL

‘‘SUBCHAPTER I—ESTABLISHMENT

Sec.

‘‘701. Establishment of Panel.

‘‘702. Functions.

‘‘703. Administrative provisions.

‘‘704. Annual report.

‘‘705. Authorization of appropriations.

‘‘706. Reporting official action.

‘‘SUBCHAPTER II—ADMINISTRATIVE

‘‘721. Powers.

‘‘722. Panel action.

‘‘723. Service of notice in Panel proceedings.

‘‘724. Service of process in court proceedings.

‘‘725. National organization of State commissions.

‘‘726. Administrative support.

‘‘727. Definitions.

3 ‘‘SUBCHAPTER I—ESTABLISHMENT

4 ‘‘§ 701. Establishment of Panel

5 ‘‘(a) ESTABLISHMENT.—There is hereby established

6 within the Department of Transportation the Transpor7 tation Adjudication Panel.

8 ‘‘(b) MEMBERSHIP.—(1) The Panel shall consist of 3

9 members, to be appointed by the President, by and with

10 the advice and consent of the Senate. Not more than 2 mem11 bers may be appointed from the same political party.

12 ‘‘(2) At any given time, at least 2 members of the Panel

13 shall be individuals with professional standing and dem14 onstrated knowledge in the fields of transportation or trans15 portation regulation, and at least one member shall be an

16 individual with professional or business experience in the

17 private sector.
258

•HR 2539 RH

1 ‘‘(3) The term of each member of the Panel shall be

2 5 years and shall begin when the term of the predecessor

3 of that member ends. An individual appointed to fill a va4 cancy occurring before the expiration of the term for which

5 the predecessor of that individual was appointed, shall be

6 appointed for the remainder of that term. When the term

7 of office of a member ends, the member may continue to

8 serve until a successor is appointed and qualified, but for

9 a period not to exceed one year. The President may remove

10 a member for inefficiency, neglect of duty, or malfeasance

11 in office.

12 ‘‘(4) On the effective date of this section, the members

13 of the Interstate Commerce Commission then serving

14 unexpired terms shall become members of the Panel, to serve

15 for a period of time equal to the remainder of the term for

16 which they were originally appointed to the Interstate Com17 merce Commission.

18 ‘‘(5) No individual may serve as a member of the

19 Panel for more than 2 terms. In the case of an individual

20 who becomes a member of the Panel pursuant to paragraph

21 (4), or an individual appointed to fill a vacancy occurring

22 before the expiration of the term for which the predecessor

23 of that individual was appointed, such individual may not

24 be appointed for more than one additional term.
259

•HR 2539 RH

1 ‘‘(6) A member of the Panel may not have a pecuniary

2 interest in, hold an official relation to, or own stock in or

3 bonds of, a carrier providing transportation by any mode

4 and may not engage in another business, vocation, or em5 ployment.

6 ‘‘(7) A vacancy in the membership of the Panel does

7 not impair the right of the remaining members to exercise

8 all of the powers of the Panel. The Panel may designate

9 a member to act as Director during any period in which

10 there is no Director designated by the President.

11 ‘‘(c) DIRECTOR.—(1) There shall be at the head of the

12 Panel a Director, who shall be designated by the President

13 from among the members of the Panel. The Director shall

14 receive compensation at the rate prescribed for level III of

15 the Executive Schedule under section 5314 of title 5.

16 ‘‘(2) Subject to the general policies, decisions, findings,

17 and determinations of the Panel the Director shall be re18 sponsible for administering the Panel. The Director may

19 delegate the powers granted under this paragraph to an offi20 cer, employee, or office of the Panel. The Director shall—

21 ‘‘(A) appoint and supervise, other than regular

22 and full time employees in the immediate offices of

23 another member, the officers and employees of the

24 Panel, including attorneys to provide legal aid and
260

•HR 2539 RH

1 service to the Panel and its members, and to represent

2 the Panel in any case in court;

3 ‘‘(B) appoint the heads of offices with the ap4 proval of the Panel;

5 ‘‘(C) distribute Panel responsibilities among offi6 cers and employees and offices of the Panel;

7 ‘‘(D) prepare requests for appropriations for the

8 Panel and submit those requests to the President and

9 Congress with the prior approval of the Panel; and

10 ‘‘(E) supervise the expenditure of funds allocated

11 by the Panel for major programs and purposes.

12 ‘‘§ 702. Functions

13 ‘‘Except as otherwise provided in the ICC Termination

14 Act of 1995, or the amendments made thereby, the Panel

15 shall perform all functions that, immediately before the ef16 fective date of such Act, were functions of the Interstate

17 Commerce Commission or were performed by any officer or

18 employee of the Interstate Commerce Commission in the ca19 pacity as such officer or employee.

20 ‘‘§ 703. Administrative provisions

21 ‘‘(a) EXECUTIVE REORGANIZATION.—Chapter 9 of title

22 5, United States Code, shall apply to the Panel in the same

23 manner as it does to an independent regulatory agency.
261

•HR 2539 RH

1 ‘‘(b) OPEN MEETINGS.—For purposes of section 552b

2 of title 5, United States Code, the Panel shall be deemed

3 to be an agency.

4 ‘‘(c) INDEPENDENCE.—In the performance of their

5 functions, the members, employees, and other personnel of

6 the Panel shall not be responsible to or subject to the super7 vision or direction of any officer, employee, or agent of any

8 other part of the Department of Transportation.

9 ‘‘(d) REPRESENTATION BY ATTORNEYS.—Attorneys

10 designated by the Director of the Panel may appear for,

11 and represent the Panel in, any civil action brought in con12 nection with any function carried out by the Panel pursu13 ant to this chapter or subtitle IV or as otherwise authorized

14 by law.

15 ‘‘(e) ADMISSION TO PRACTICE.—Subject to section 500

16 of title 5, the Panel may regulate the admission of individ17 uals to practice before it and may impose a reasonable ad18 mission fee.

19 ‘‘(f) BUDGET REQUESTS.—In each annual request for

20 appropriations by the President, the Secretary of Transpor21 tation shall identify the portion thereof intended for the

22 support of the Panel and include a statement by the

23 Panel—
262

•HR 2539 RH

1 ‘‘(1) showing the amount requested by the Panel

2 in its budgetary presentation to the Secretary and the

3 Office of Management and Budget; and

4 ‘‘(2) an assessment of the budgetary needs of the

5 Panel.

6 ‘‘(g) DIRECT TRANSMITTAL TO CONGRESS.—The Panel

7 shall transmit to Congress copies of budget estimates, re8 quests, and information (including personnel needs), legis9 lative recommendations, prepared testimony for congres10 sional hearings, and comments on legislation at the same

11 time they are sent to the Secretary of Transportation. An

12 officer of an agency may not impose conditions on or im13 pair communications by the Panel with Congress, or a com14 mittee or member of Congress, about the information.

15 ‘‘§ 704. Annual report

16 ‘‘The Panel shall annually transmit to the Congress

17 a report on its activities.

18 ‘‘§ 705. Authorization of appropriations

19 ‘‘There are authorized to be appropriated to the Sec20 retary of Transportation for the activities of the Panel—

21 ‘‘(1) $8,421,000 for fiscal year 1996;

22 ‘‘(2) $12,000,000 for fiscal year 1997; and

23 ‘‘(3) $12,000,000 for fiscal year 1998.
263

•HR 2539 RH

1 ‘‘§ 706. Reporting official action

2 ‘‘(a) The Panel shall make a written report of each

3 proceeding conducted on complaint or on its own initiative

4 and furnish a copy to each party to that proceeding. The

5 report shall include the findings, conclusions, and the order

6 of the Panel and, if damages are awarded, the findings of

7 fact supporting the award. The Panel may have its reports

8 published for public use. A published report of the Panel

9 is competent evidence of its contents.

10 ‘‘(b)(1) When action of the Panel in a matter related

11 to a rail carrier is taken by the Panel, an individual mem12 ber of the Panel, or another individual or group of individ13 uals designated to take official action for the Panel, the

14 written statement of that action (including a report, order,

15 decision and order, vote, notice, letter, policy statements,

16 or regulation) shall indicate—

17 ‘‘(A) the official designation of the individual or

18 group taking the action;

19 ‘‘(B) the name of each individual taking, or par20 ticipating in taking, the action; and

21 ‘‘(C) the vote or position of each participating

22 individual.

23 ‘‘(2) If an individual member of a group taking an

24 official action referred to in paragraph (1) of this subsection

25 does not participate in it, the written statement of the ac26 tion shall indicate that the member did not participate. An
264

•HR 2539 RH

1 individual participating in taking an official action is en2 titled to express the views of that individual as part of the

3 written statement of the action. In addition to any publica4 tion of the written statement, it shall be made available to

5 the public under section 552(a) of title 5.

6 ‘‘SUBCHAPTER II—ADMINISTRATIVE

7 ‘‘§ 721. Powers

8 ‘‘(a) The Panel shall carry out this chapter and sub9 title IV. Enumeration of a power of the Panel in this chap10 ter or subtitle IV does not exclude another power the Panel

11 may have in carrying out this chapter or subtitle IV. The

12 Panel may prescribe regulations in carrying out this chap13 ter and subtitle IV.

14 ‘‘(b) The Panel may—

15 ‘‘(1) inquire into and report on the management

16 of the business of carriers providing, and brokers for,

17 transportation and services subject to subtitle IV;

18 ‘‘(2) inquire into and report on the management

19 of the business of a person controlling, controlled by,

20 or under common control with those carriers or bro21 kers to the extent that the business of that person is

22 related to the management of the business of that car23 rier or broker;
265

•HR 2539 RH

1 ‘‘(3) obtain from those carriers, brokers, and per2 sons information the Panel decides is necessary to

3 carry out subtitle IV; and

4 ‘‘(4) when necessary to prevent irreparable harm,

5 issue an appropriate order without regard to sub6 chapter II of chapter 5 of title 5.

7 ‘‘(c)(1) The Panel may subpoena witnesses and records

8 related to a proceeding of the Panel from any place in the

9 United States, to the designated place of the proceeding. If

10 a witness disobeys a subpoena, the Panel, or a party to a

11 proceeding before the Panel, may petition a court of the

12 United States to enforce that subpoena.

13 ‘‘(2) The district courts of the United States have juris14 diction to enforce a subpoena issued under this section.

15 Trial is in the district in which the proceeding is conducted.

16 The court may punish a refusal to obey a subpoena as a

17 contempt of court.

18 ‘‘(d)(1) In a proceeding, the Panel may take the testi19 mony of a witness by deposition and may order the witness

20 to produce records. A party to a proceeding pending before

21 the Panel may take the testimony of a witness by deposition

22 and may require the witness to produce records at any time

23 after a proceeding is at issue on petition and answer.

24 ‘‘(2) If a witness fails to be deposed or to produce

25 records under paragraph (1) of this subsection, the Panel
266

•HR 2539 RH

1 may subpoena the witness to take a deposition, produce the

2 records, or both.

3 ‘‘(3) A deposition may be taken before a judge of a

4 court of the United States, a United States magistrate

5 judge, a clerk of a district court, or a chancellor, justice,

6 or judge of a supreme or superior court, mayor or chief

7 magistrate of a city, judge of a county court, or court of

8 common pleas of any State, or a notary public who is not

9 counsel or attorney of a party or interested in the proceed10 ing.

11 ‘‘(4) Before taking a deposition, reasonable notice must

12 be given in writing by the party or the attorney of that

13 party proposing to take a deposition to the opposing party

14 or the attorney of record of that party, whoever is nearest.

15 The notice shall state the name of the witness and the time

16 and place of taking the deposition.

17 ‘‘(5) The testimony of a person deposed under this sub18 section shall be taken under oath. The person taking the

19 deposition shall prepare, or cause to be prepared, a tran20 script of the testimony taken. The transcript shall be sub21 scribed by the deponent.

22 ‘‘(6) The testimony of a witness who is in a foreign

23 country may be taken by deposition before an officer or per24 son designated by the Panel or agreed on by the parties
267

•HR 2539 RH

1 by written stipulation filed with the Panel. A deposition

2 shall be filed with the Panel promptly.

3 ‘‘(e) Each witness summoned before the Panel or whose

4 deposition is taken under this section and the individual

5 taking the deposition are entitled to the same fees and mile6 age paid for those services in the courts of the United States.

7 ‘‘§ 722. Panel action

8 ‘‘(a) Unless otherwise provided in subtitle IV, the

9 Panel may determine, within a reasonable time, when its

10 actions, other than an action ordering the payment of

11 money, take effect.

12 ‘‘(b) An action of the Panel remains in effect under

13 its own terms or until superseded. The Panel may change,

14 suspend, or set aside any such action on notice. Notice may

15 be given in a manner determined by the Panel. A court

16 of competent jurisdiction may suspend or set aside any such

17 action.

18 ‘‘(c) The Panel may, at any time on its own initiative

19 because of material error, new evidence, or substantially

20 changed circumstances—

21 ‘‘(1) reopen a proceeding;

22 ‘‘(2) grant rehearing, reargument, or reconsider23 ation of an action of the Panel; or

24 ‘‘(3) change an action of the Panel.
268

•HR 2539 RH

1 An interested party may petition to reopen and reconsider

2 an action of the Panel under this subsection under regula3 tions of the Panel.

4 ‘‘(d) Notwithstanding subtitle IV, an action of the

5 Panel under this section is final on the date on which it

6 is served, and a civil action to enforce, enjoin, suspend, or

7 set aside the action may be filed after that date.

8 ‘‘§ 723. Service of notice in Panel proceedings

9 ‘‘(a) A carrier providing transportation subject to the

10 jurisdiction of the Panel under subtitle IV shall designate

11 an agent in the District of Columbia, on whom service of

12 notices in a proceeding before, and of actions of, the Panel

13 may be made.

14 ‘‘(b) A designation under subsection (a) of this section

15 shall be in writing and filed with the Panel.

16 ‘‘(c) Except as otherwise provided, notices of the Panel

17 shall be served on its designated agent at the office or usual

18 place of residence in the District of Columbia of that agent.

19 A notice of action of the Panel shall be served immediately

20 on the agent or in another manner provided by law. If that

21 carrier does not have a designated agent, service may be

22 made by posting the notice in the office of the Panel.

23 ‘‘(d) In a proceeding involving the lawfulness of classi24 fications, rates, or practices of a rail carrier that has not

25 designated an agent under this section, service of notice of
269

•HR 2539 RH

1 the Panel on an attorney in fact for the carrier constitutes

2 service of notice on the carrier.

3 ‘‘§ 724. Service of process in court proceedings

4 ‘‘(a) A carrier providing transportation subject to the

5 jurisdiction of the Panel under subtitle IV shall designate

6 an agent in the District of Columbia on whom service of

7 process in an action before a district court may be made.

8 Except as otherwise provided, process in an action before

9 a district court shall be served on the designated agent of

10 that carrier at the office or usual place of residence in the

11 District of Columbia of that agent. If the carrier does not

12 have a designated agent, service may be made by posting

13 the notice in the office of the Panel.

14 ‘‘(b) A designation under this section may be changed

15 at any time in the same manner as originally made.

16 ‘‘§ 725. National organization of State commissions

17 ‘‘The Administrator of General Services shall assign

18 space and facilities for the use of the national organization

19 of the State commissions and their representatives. The

20 space and facilities shall be available for the use of the State

21 commissions and their representatives cooperating with the

22 Panel or with another department, agency, or instrumental23 ity of the United States Government. The rental for such

24 space shall be paid by the national organization’s Federal

25 agency members other than the Panel.
270

•HR 2539 RH

1 ‘‘§ 726. Administrative support

2 ‘‘The Secretary of Transportation shall provide appro3 priate administrative support for the Panel.

4 ‘‘§ 727. Definitions

5 ‘‘All terms used in this chapter that are defined in sub6 title IV shall have the meaning given those terms in that

7 subtitle.’’.

8 (b) TABLE OF CHAPTERS AMENDMENT.—The table of

9 chapters of subtitle I of title 49, United States Code, is

10 amended by adding at the end the following new item:

‘‘7. TRANSPORTATION ADJUDICATION PANEL ........................ 701’’.

11 SEC. 202. REORGANIZATION.

12 The Director of the Transportation Adjudication Panel

13 (in this Act referred to as the ‘‘Panel’’) may allocate or re14 allocate any function of the Panel, consistent with this title

15 and subchapter I of chapter 7, as amended by section 201

16 of this title, among the members or employees of the Panel,

17 and may establish, consolidate, alter, or discontinue in the

18 Panel any organizational entities that were entities of the

19 Interstate Commerce Commission, as the Director considers

20 necessary or appropriate.

21 SEC. 203. TRANSFER OF ASSETS.

22 Except as otherwise provided in this Act and the

23 amendments made by this Act, so much of the personnel,

24 property, records, and unexpended balances of appropria25 tions, allocations, and other funds employed, used, held,
271

•HR 2539 RH

1 available, or to be made available in connection with a

2 function transferred to the Panel by this Act shall be avail3 able to the Panel at such time or times as the President

4 directs for use in connection with the functions transferred.

5 SEC. 204. SAVING PROVISIONS.

6 (a) LEGAL DOCUMENTS.—All orders, determinations,

7 rules, regulations, permits, grants, loans, contracts, agree8 ments, certificates, licenses, and privileges—

9 (1) that have been issued, made, granted, or al10 lowed to become effective by the President, the Inter11 state Commerce Commission, any officer or employee

12 of the Interstate Commerce Commission, or any other

13 Government official, or by a court of competent juris14 diction, in the performance of any function that is

15 transferred by this Act or the amendments made by

16 this Act; and

17 (2) that are in effect on the effective date of such

18 transfer (or become effective after such date pursuant

19 to their terms as in effect on such effective date),

20 shall continue in effect according to their terms until modi21 fied, terminated, superseded, set aside, or revoked in accord22 ance with law by the President, the Panel, any other au23 thorized official, a court of competent jurisdiction, or oper24 ation of law.
272

•HR 2539 RH

1 (b) PROCEEDINGS.—(1) Except as provided in para2 graph (2), the Panel shall assume responsibility for the con3 tinuation of all proceedings pending before the Interstate

4 Commerce Commission, and shall complete such proceed5 ings in accordance with law and regulations as in effect

6 before the date of the enactment of this Act.

7 (2) In the case of a proceeding under a provision of

8 law repealed, and not reenacted, by this Act, such proceed9 ing shall be terminated.

10 (c) SUITS.—(1) This Act shall not affect suits com11 menced before the date of the enactment of this Act, except

12 that the Panel shall assume the position of the Interstate

13 Commerce Commission, and, except as provided in para14 graph (2), in all such suits, proceeding shall be had, appeals

15 taken, and judgments rendered in the same manner and

16 with the same effect as if this Act had not been enacted.

17 (2) If the court in a suit described in paragraph (1)

18 remands a case to the Panel, subsequent proceedings related

19 to such case shall proceed in accordance with applicable law

20 and regulations as in effect at the time of such subsequent

21 proceedings.

22 (d) EXERCISE OF AUTHORITIES.—Except as otherwise

23 provided by law, an officer or employee of the Panel may,

24 for purposes of performing a function transferred by this

25 Act or the amendments made by this Act, exercise all au-
273

•HR 2539 RH

1 thorities under any other provision of law that were avail2 able with respect to the performance of that function to the

3 official responsible for the performance of the function im4 mediately before the effective date of the transfer of the func5 tion under this Act or the amendments made by this Act.

6 SEC. 205. REFERENCES.

7 Any reference to the Interstate Commerce Commission

8 in any other Federal law, Executive order, rule, regulation,

9 or delegation of authority, or any document of or pertain10 ing to the Interstate Commerce Commission or an officer

11 or employee of the Interstate Commerce Commission, is

12 deemed to refer to the Panel or a member or employee of

13 the Panel, as appropriate.

14 TITLE III—CONFORMING

15 AMENDMENTS

16 Subtitle A—Amendments to United

17 States Code

18 SEC. 301. TITLE 5 AMENDMENTS.

19 (a) COMPENSATION FOR POSITIONS AT LEVEL III.—

20 Section 5314 of title 5, United States Code, is amended by

21 striking ‘‘Chairman, Interstate Commerce Commission.’’

22 and inserting in lieu thereof ‘‘Director, Transportation Ad23 judication Panel.’’.

24 (b) COMPENSATION FOR POSITIONS AT LEVEL IV.—

25 Section 5315 of title 5, United States Code, is amended by
274

•HR 2539 RH

1 striking ‘‘Members, Interstate Commerce Commission.’’ and

2 inserting in lieu thereof ‘‘Members, Transportation Adju3 dication Panel.’’.

4 SEC. 302. TITLE 11 AMENDMENTS.

5 Subchapter IV of chapter 11 of title 11, United States

6 Code, is amended—

7 (1) by amending section 1162 to read as follows:

8 ‘‘§ 1162. Definition

9 ‘‘In this subchapter, ‘Panel’ means the ‘Transportation

10 Adjudication Panel’.’’; and

11 (2) by striking ‘‘Commission’’ each place it ap12 pears and inserting in lieu thereof ‘‘Panel’’.

13 SEC. 303. TITLE 18 AMENDMENT.

14 Section 6001(1) of title 18, United States Code, is

15 amended by striking ‘‘Interstate Commerce Commission’’

16 and inserting in lieu thereof ‘‘Transportation Adjudication

17 Panel’’.

18 SEC. 304. INTERNAL REVENUE CODE OF 1986 AMENDMENTS.

19 (a) SECTION 3231.—Section 3231 of the Internal Reve20 nue Code of 1986 is amended—

21 (1) by striking ‘‘Interstate Commerce Commis22 sion’’ in subsection (a) and inserting in lieu thereof

23 ‘‘Transportation Adjudication Panel’’; and
275

•HR 2539 RH

1 (2) by striking ‘‘an express carrier, sleeping car

2 carrier, or’’ in subsection (g) and inserting in lieu

3 thereof ‘‘a’’.

4 (b) SECTION 7701.—Section 7701 of the Internal Reve5 nue Code of 1986 is amended—

6 (1) in paragraph (33)(B), by striking ‘‘Federal

7 Power Commission’’ and inserting in lieu thereof

8 ‘‘Federal Energy Regulatory Commission’’;

9 (2) in paragraph (33)(C)(i), by striking ‘‘Inter10 state Commerce Commission’’ and inserting in lieu

11 thereof ‘‘Transportation Adjudication Panel’’;

12 (3) in paragraph (33)(C)(ii), by striking ‘‘Inter13 state Commerce Commission’’ and inserting in lieu

14 thereof ‘‘Federal Energy Regulatory Commission’’;

15 (4) in paragraph (33)(F), by striking ‘‘Interstate

16 Commerce Commission under subchapter III of chap17 ter 105’’ and inserting in lieu thereof ‘‘Transpor18 tation Adjudication Panel under subchapter II of

19 chapter 135’’;

20 (5) in paragraph (33)(G), by striking ‘‘sub21 chapter I of chapter 105’’ and inserting in lieu there22 of ‘‘part A of subtitle IV’’; and

23 (6) in paragraph (33)(H), by striking ‘‘sub24 chapter I of chapter 105’’ and inserting in lieu there25 of ‘‘part A of subtitle IV’’.
276

•HR 2539 RH

1 SEC. 305. TITLE 28 AMENDMENTS.

2 (a) CHAPTER 157 AMENDMENTS.—(1) Chapter 157 of

3 title 28, United States Code, is amended—

4 (A) by striking ‘‘INTERSTATE COM5 MERCE COMMISSION’’ in the chapter heading

6 and inserting in lieu thereof ‘‘TRANSPOR7 TATION ADJUDICATION PANEL’’;

8 (B) by striking ‘‘Commission’s’’ in the sec9 tion heading of section 2321 and inserting in lieu

10 thereof ‘‘Panel’s’’;

11 (C) by striking ‘‘Interstate Commerce Commis12 sion’’ each place it appears and inserting in lieu

13 thereof ‘‘Transportation Adjudication Panel’’; and

14 (D) by striking ‘‘Commission’’ each place it ap15 pears and inserting in lieu thereof ‘‘Panel’’.

16 (2)(A) The item relating to chapter 157 in the table

17 of chapters of title 28, United States Code, is amended by

18 striking ‘‘Interstate Commerce Commission’’ and inserting

19 in lieu thereof ‘‘Transportation Adjudication Panel’’.

20 (B) The item relating to section 2321 in the table of

21 sections of chapter 157 of title 28, United States Code, is

22 amended by striking ‘‘Commission’s’’ and inserting in lieu

23 thereof ‘‘Panel’s’’.

24 (b) CHAPTER 158 AMENDMENTS.—Chapter 158 of title

25 28, United States Code, is amended—
277

•HR 2539 RH

1 (1) by striking ‘‘the Interstate Commerce Com2 mission,’’ in section 2341(3)(A);

3 (2) by striking ‘‘and’’ at the end of section

4 2341(3)(C);

5 (3) by striking the period at the end of section

6 2341(3)(D) and inserting in lieu thereof ‘‘; and’’;

7 (4) by inserting at the end of section 2341(3) the

8 following new subparagraph:

9 ‘‘(E) the Panel, when the order was entered

10 by the Transportation Adjudication Panel.’’; and

11 (5) in section 2342, by—

12 (A) inserting ‘‘or pursuant to part B of

13 subtitle IV of title 49, United States Code’’ before

14 the semicolon at the end of paragraph (3)(A);

15 and

16 (B) striking paragraph (5) and inserting

17 the following:

18 ‘‘(5) all rules, regulations, or final orders of the

19 Transportation Adjudication Panel made reviewable

20 by section 2321 of this title; and’’.

21 SEC. 306. TITLE 39 AMENDMENTS.

22 Title 39, United States Code, is amended—

23 (1) in section 5005(b)(3), by striking ‘‘Interstate

24 Commerce Commission’’ and inserting in lieu thereof

25 ‘‘Transportation Adjudication Panel’’; and
278

•HR 2539 RH

1 (2) in chapter 52—

2 (A) by amending paragraph (1) of section

3 5201 to read as follows:

4 ‘‘(1) ‘Panel’ means the Transportation Adjudica5 tion Panel;’’;

6 (B) by striking subsection (f) of section

7 5203, and redesignating subsection (g) of such

8 section as subsection (f);

9 (C) in subsection (f) of section 5203, as so

10 redesignated by subparagraph (B) of this para11 graph, by striking ‘‘Commission’’ and inserting

12 in lieu thereof ‘‘Panel’’;

13 (D) by striking ‘‘Interstate Commerce

14 Commission’’ in the section heading of section

15 5207 and inserting in lieu thereof ‘‘Transpor16 tation Adjudication Panel’’;

17 (E) by striking ‘‘Commission’s’’ in sections

18 5208(a) and 5215(a) and inserting in lieu there19 of ‘‘Panel’s’’;

20 (F) by striking ‘‘Commission’’ each place it

21 appears and inserting in lieu thereof ‘‘Panel’’;

22 and

23 (G) in the item relating to section 5207 in

24 the table of sections, by striking ‘‘Interstate Com-
279

•HR 2539 RH

1 merce Commission’’ and inserting in lieu thereof

2 ‘‘Transportation Adjudication Panel’’.

3 SEC. 307. TITLE 49 AMENDMENTS.

4 Title 49, United States Code, is amended—

5 (1) in section 22106(e)(1) by striking ‘‘an appli6 cation for abandonment of’’ and inserting in lieu

7 thereof ‘‘a notice of intent to abandon’’; and

8 (2) by repealing subsection (d) of section 24705.

9 Subtitle B—Other Amendments

10 SEC. 311. AGRICULTURAL ADJUSTMENT ACT OF 1938

11 AMENDMENT.

12 Section 201 of the Agricultural Adjustment Act of 1938

13 (7 U.S.C. 1291) is amended—

14 (1) by striking ‘‘Interstate Commerce Commis15 sion’’ each place it appears and inserting in lieu

16 thereof ‘‘Transportation Adjudication Panel’’;

17 (2) by striking ‘‘Commission’’ each place it ap18 pears and inserting in lieu thereof ‘‘Panel’’; and

19 (3) by striking ‘‘Commission’s’’ in subsection (b)

20 and inserting in lieu thereof ‘‘Panel’s’’.

21 SEC. 312. ANIMAL WELFARE ACT AMENDMENT.

22 Section 15(a) of the Animal Welfare Act (7 U.S.C.

23 2145(a)) is amended by striking ‘‘Interstate Commerce

24 Commission’’ and inserting in lieu thereof ‘‘Transportation

25 Adjudication Panel’’.
280

•HR 2539 RH

1 SEC. 313. FEDERAL ELECTION CAMPAIGN ACT OF 1971

2 AMENDMENTS.

3 Section 401 of the Federal Election Campaign Act of

4 1971 is amended—

5 (1) by striking ‘‘Interstate Commerce Commis6 sion shall each promulgate, within ninety days after

7 the date of enactment of this Act’’ and inserting in

8 lieu thereof ‘‘Transportation Adjudication Panel shall

9 each maintain’’; and

10 (2) by inserting ‘‘or Board’’ after ‘‘or such Com11 mission’’.

12 SEC. 314. FAIR CREDIT REPORTING ACT AMENDMENT.

13 Section 621(b)(4) of the Fair Credit Reporting Act (15

14 U.S.C. 1681s(b)(4)) is amended by striking ‘‘Interstate

15 Commerce Commission with respect to any common carrier

16 subject to those Acts’’ and inserting in lieu thereof ‘‘Sec17 retary of Transportation, with respect to all carriers subject

18 to the jurisdiction of the Transportation Adjudication

19 Panel’’.

20 SEC. 315. EQUAL CREDIT OPPORTUNITY ACT AMENDMENT.

21 Section 704(a)(4) of the Equal Credit Opportunity Act

22 (15 U.S.C. 1691c(a)(4)) is amended by striking ‘‘Interstate

23 Commerce Commission with respect to any common carrier

24 subject to those Acts’’ and inserting in lieu thereof ‘‘Sec25 retary of Transportation, with respect to all carriers subject
281

•HR 2539 RH

1 to the jurisdiction of the Transportation Adjudication

2 Panel’’.

3 SEC. 316. FAIR DEBT COLLECTION PRACTICES ACT AMEND4 MENT.

5 Section 814(b)(4) of the Fair Debt Collection Practices

6 Act (15 U.S.C. 1692l(b)(4)) is amended by striking ‘‘Inter7 state Commerce Commission with respect to any common

8 carrier subject to those Acts’’ and inserting in lieu thereof

9 ‘‘Secretary of Transportation, with respect to all carriers

10 subject to the jurisdiction of the Transportation Adjudica11 tion Panel’’.

12 SEC. 317. NATIONAL TRAILS SYSTEM ACT AMENDMENTS.

13 The National Trails System Act is amended—

14 (1) in section 8(d)—

15 (A) by striking ‘‘Chairman of the Interstate

16 Commerce Commission’’ and inserting in lieu

17 thereof ‘‘Director of the Transportation Adju18 dication Panel’’; and

19 (B) by striking ‘‘Commission’’ and insert20 ing in lieu thereof ‘‘Panel’’; and

21 (2) in section 9(b), by striking ‘‘Interstate Com22 merce Commission’’ and inserting in lieu thereof

23 ‘‘Transportation Adjudication Panel’’.

24 SEC. 318. CLAYTON ACT AMENDMENTS.

25 The Clayton Act is amended—
282

•HR 2539 RH

1 (1) in section 7 (15 U.S.C. 18)—

2 (A) by striking ‘‘Interstate Commerce Com3 mission’’ and inserting in lieu thereof ‘‘Trans4 portation Adjudication Panel’’; and

5 (B) by inserting ‘‘, Board,’’ after ‘‘vesting

6 such power in such Commission’’;

7 (2) in section 11(a) (15 U.S.C. 21(a)), by strik8 ing ‘‘Interstate Commerce Commission where applica9 ble to common carriers subject to the Interstate Com10 merce Act, as amended’’ and inserting in lieu thereof

11 ‘‘Transportation Adjudication Panel where applicable

12 to common carriers subject to subtitle IV of title 49,

13 United States Code’’; and

14 (3) in section 16 (15 U.S.C. 22), by striking ‘‘in

15 equity for injunctive relief’’ and all that follows

16 through ‘‘Interstate Commerce Commission’’ and in17 serting in lieu thereof ‘‘for injunctive relief against

18 any common carrier subject to the jurisdiction of the

19 Transportation Adjudication Panel under subtitle IV

20 of title 49, United States Code’’.

21 SEC. 319. INSPECTOR GENERAL ACT OF 1978 AMENDMENT.

22 Section 8G(a)(2) of the Inspector General Act of 1978

23 (5 U.S.C. App.) is amended by striking ‘‘the Interstate

24 Commerce Commission,’’.
283

•HR 2539 RH

1 SEC. 320. ENERGY POLICY ACT OF 1992 AMENDMENTS.

2 Subsections (a) and (d) of section 1340 of the Energy

3 Policy Act of 1992 (42 U.S.C. 13369(a) and (d)) are

4 amended by striking ‘‘Interstate Commerce Commission’’

5 and inserting in lieu thereof ‘‘Transportation Adjudication

6 Panel’’.

7 SEC. 321. MERCHANT MARINE ACT, 1920, AMENDMENTS

8 The Merchant Marine Act, 1920, is amended—

9 (1) in section 8 (46 U.S.C. App. 867)—

10 (A) by striking ‘‘Interstate Commerce Com11 mission’’ both places it appears and inserting in

12 lieu thereof ‘‘Transportation Adjudication

13 Panel’’; and

14 (B) by striking ‘‘commission’’ and inserting

15 in lieu thereof ‘‘board’’; and

16 (2) in section 28 (46 U.S.C. App. 884)—

17 (A) by striking ‘‘Interstate Commerce Com18 mission’’ and inserting in lieu thereof ‘‘Trans19 portation Adjudication Panel’’; and

20 (B) by striking ‘‘commission’’ each place it

21 appears and inserting in lieu thereof ‘‘Panel’’.

22 SEC. 322. RAILWAY LABOR ACT AMENDMENTS.

23 Section 1 of the Railway Labor Act (45 U.S.C. 151)

24 is amended—

25 (1) by striking ‘‘express company, sleeping-car

26 company, carrier by railroad, subject to the Interstate
284

•HR 2539 RH

1 Commerce Act’’ in the first paragraph and inserting

2 in lieu thereof ‘‘railroad subject to the jurisdiction of

3 the Transportation Adjudication Panel’’;

4 (2) by striking ‘‘Interstate Commerce Commis5 sion’’ each place it appears in the first and fifth

6 paragraphs and inserting in lieu thereof ‘‘Transpor7 tation Adjudication Panel’’; and

8 (3) by striking ‘‘Commission’’ each place it ap9 pears in the fifth paragraph and inserting in lieu

10 thereof ‘‘Panel’’.

11 SEC. 323. RAILROAD RETIREMENT ACT OF 1974 AMEND12 MENTS.

13 Section 1 of the Railroad Retirement Act of 1974 (45

14 U.S.C. 231) is amended—

15 (1) by amending subsection (a)(1)(i) to read as

16 follows:

17 ‘‘(i) any carrier by railroad subject to the juris18 diction of the Transportation Adjudication Panel

19 under part A of subtitle IV of title 49, United States

20 Code;’’;

21 (2) by striking ‘‘Interstate Commerce Commis22 sion is hereby authorized and directed upon request of

23 the Board’’ in subsection (a)(2)(ii) and inserting in

24 lieu thereof ‘‘Transportation Adjudication Panel is
285

•HR 2539 RH

1 hereby authorized and directed upon request of the

2 Railroad Retirement Board’’; and

3 (3) by inserting ‘‘the Transportation Adjudica4 tion Panel,’’ after ‘‘the Interstate Commerce Commis5 sion,’’ in subsection (o).

6 SEC. 324. RAILROAD UNEMPLOYMENT INSURANCE ACT

7 AMENDMENTS.

8 The Railroad Unemployment Insurance Act is amend9 ed—

10 (1) by striking ‘‘Interstate Commerce Commis11 sion is hereby authorized and directed upon request of

12 the Board’’ in section 1(a) (45 U.S.C. 351(a)) and in13 serting in lieu thereof ‘‘Transportation Adjudication

14 Panel is hereby authorized and directed upon request

15 of the Railroad Retirement Board’’;

16 (2) by amending paragraph (b) of such section

17 1 to read as follows:

18 ‘‘(b) The term ‘carrier’ means a railroad subject to the

19 jurisdiction of the Transportation Adjudication Panel

20 under part A of subtitle IV of title 49, United States Code.’’;

21 and

22 (3) by striking ‘‘Interstate Commerce Commis23 sion, adjusted, as determined by the Board’’ in section

24 2(h)(3) (45 U.S.C. 352(h)(3)) and inserting in lieu
286

•HR 2539 RH

1 thereof ‘‘Transportation Adjudication Panel, adjusted,

2 as determined by the Railroad Retirement Board’’.

3 SEC. 325. EMERGENCY RAIL SERVICES ACT OF 1970 AMEND4 MENTS.

5 The Emergency Rail Services Act of 1970 is amend6 ed—

7 (1) by amending paragraph (2) of section 2 (45

8 U.S.C. 661(2)) to read as follows:

9 ‘‘(2) ‘Panel’ means the Transportation Adjudication

10 Panel.’’;

11 (2) by striking ‘‘Interstate Commerce Commis12 sion’’ in section 6(a) (45 U.S.C. 665(a)) and insert13 ing in lieu thereof ‘‘Panel’’; and

14 (3) by striking ‘‘Commission’’ each place it ap15 pears and inserting in lieu thereof ‘‘Panel’’.

16 SEC. 326. ALASKA RAILROAD TRANSFER ACT OF 1982

17 AMENDMENTS.

18 Section 608 of the Alaska Railroad Transfer Act of

19 1982 (45 U.S.C. 1207) is amended—

20 (1) by striking ‘‘Interstate Commerce Commis21 sion’’ each place it appears and inserting in lieu

22 thereof ‘‘Transportation Adjudication Panel’’; and

23 (2) by striking ‘‘Commission’’ in subsection (b)

24 and inserting in lieu thereof ‘‘Panel’’.
287

•HR 2539 RH

1 SEC. 327. REGIONAL RAIL REORGANIZATION ACT OF 1973

2 AMENDMENTS.

3 The Regional Rail Reorganization Act of 1973 is

4 amended—

5 (1) in section 304(d)(3) (45 U.S.C. 744(d)(3))—

6 (A) by striking ‘‘this title,’’ and all that fol7 lows through ‘‘(A) shall take’’ and inserting in

8 lieu thereof ‘‘this title, the Commission shall

9 take’’; and

10 (B) by striking ‘‘this subsection; and’’ and

11 all that follows through ‘‘205(d)(6) of this Act’’

12 and inserting in lieu thereof ‘‘this subsection’’;

13 and

14 (2) in section 707 (45 U.S.C. 797f)—

15 (A) by inserting ‘‘(a)’’ at the beginning of

16 the text; and

17 (B) by adding at the end the following new

18 subsections:

19 ‘‘(b) Notwithstanding any other provision of this Act

20 or any agreement or arrangement in effect as of the date

21 of the enactment of this subsection, the Corporation may

22 not sell or transfer ownership or management, in whole or

23 in part, of any facility acquired by the Corporation under

24 this Act that is used for the repair, rehabilitation, or main25 tenance of cars or locomotives, without first obtaining the

26 expess consent of the authorized representatives of the em-
288

•HR 2539 RH

1 ployees at such facility covered by collective bargaining

2 agreements. Any transaction undertaken in violation of this

3 subsection or subsection (c) shall be considered in violation

4 of section 6 of the Railway Labor Act, and shall be action5 able as such.

6 ‘‘(c) Notwithstanding any other provision of this Act

7 or any agreement or arrangement in effect as of the date

8 of the enactment of this subsection, any transfer by the Cor9 poration of ownership, in whole or in part, other than for

10 scrappage, of a car or locomotive that was repaired, reha11 bilitated, or maintained, before the date of the enactment

12 of this subsection, at a facility acquired by the Corporation

13 under this Act, without first obtaining the express consent

14 of the authorized representatives of the employees at the

15 Corporation’s principal maintenance facility covered by

16 collective bargaining agreements, is prohibited.’’.

17 SEC. 328. MILWAUKEE RAILROAD RESTRUCTURING ACT

18 AMENDMENT.

19 Section 18 of the Milwaukee Railroad Restructuring

20 Act (45 U.S.C. 916) is repealed.

21 SEC. 329. ROCK ISLAND RAILROAD TRANSITION AND EM22 PLOYEE ASSISTANCE ACT AMENDMENTS.

23 The Rock Island Railroad Transition and Employee

24 Assistance Act is amended—
289

•HR 2539 RH

1 (1) in section 104(a) (45 U.S.C. 1003(a)) by

2 striking ‘‘section 11125 of title 49, United States

3 Code, or’’; and

4 (2) by repealing section 120 (45 U.S.C. 1015).

5 SEC. 330. RAILROAD REVITALIZATION AND REGULATORY

6 REFORM ACT OF 1976 AMENDMENTS.

7 The Railroad Revitalization and Regulatory Reform

8 Act of 1976 is amended—

9 (1) in section 505(a)(3) (45 U.S.C. 825(a)(3))—

10 (A) by striking ‘‘A financially responsible

11 person (as defined in section 10910(a)(1) of title

12 49, United States Code)’’ and inserting in lieu

13 thereof ‘‘(A) A financially responsible person’’;

14 and

15 (B) by inserting at the end the following

16 new subparagraph:

17 ‘‘(B) For purposes of this paragraph, the term ‘finan18 cially responsible person’ means a person who (i) is capable

19 of paying the constitutional minimum value of the railroad

20 line proposed to be acquired, and (ii) is able to assure that

21 adequate transportation will be provided over such line for

22 a period of not less than 3 years. Such term includes a

23 governmental authority but does not include a class I or

24 class II rail carrier.’’;
290

•HR 2539 RH

1 (2) in section 509(b) (45 U.S.C. 829(b)) by strik2 ing paragraph (2); and

3 (3) in section 510 (45 U.S.C. 830) by striking

4 ‘‘the provisions of section 20a of the Interstate Com5 merce Act (49 U.S.C. 20a), nor’’.

6 SEC. 331. SERVICE CONTRACT ACT OF 1965 AMENDMENT.

7 Section 7(3) of the Service Contract Act of 1965 (41

8 U.S.C. 356(3)) is amended by striking ‘‘where published

9 tariff rates are in effect’’.

10 SEC. 332. FISCAL YEAR 1982 CONTINUING RESOLUTION

11 AMENDMENT.

12 Section 115 of the Joint Resolution entitled ‘‘Joint

13 Resolution making further continuing appropriations for

14 the fiscal year 1982, and for other purposes’’ (Public Law

15 97–92; 95 Stat. 1196) is repealed.

16 SEC. 333. MIGRANT AND SEASONAL AGRICULTURAL WORK17 ER PROTECTION ACT.

18 Section 401(b) of the Migrant and Seasonal Agricul19 tural Worker Protection Act (29 U.S.C. 1841(b)) is amend20 ed by—

21 (1) striking ‘‘part II of the Interstate Commerce

22 Act (49 U.S.C. 301 et seq.), or any successor provi23 sion of’’ in paragraph (2)(C) and inserting ‘‘part B

24 of’’; and
291

•HR 2539 RH

1 (2) striking ‘‘part II of the Interstate Commerce

2 Act (49 U.S.C. 301 et seq.), and any successor provi3 sion of’’ in paragraph (3) and inserting ‘‘part B of’’.

4 SEC. 334. FEDERAL AVIATION ADMINISTRATION AUTHOR5 IZATION ACT OF 1994.

6 Section 601(d) of the Federal Aviation Administration

7 Authorization Act of 1994 (Public Law 103–305) is amend8 ed by striking all after ‘‘subsection (c)’’ and inserting ‘‘shall

9 not take effect as long as section 11501(g)(2) of title 49,

10 United States Code, applies to that State.’’.

11 SEC. 335. TERMINATION OF CERTAIN MARITIME AUTHOR12 ITY.

13 (a) REPEAL OF INTERCOASTAL SHIPPING ACT,

14 1933.—The Act of March 3, 1933 (Chapter 199; 46 App.

15 U.S.C. 843 et seq.), commonly referred to as the Intercoastal

16 Shipping Act, 1933, is repealed effective September 30,

17 1996.

18 (b) REPEAL OF PROVISIONS OF SHIPPING ACT,

19 1916.—The following provisions of the Shipping Act, 1916,

20 are repealed effective September 30, 1996:

21 (1) Section 3 (46 U.S.C. App. 804).

22 (2) Section 14 (46 U.S.C. App. 812).

23 (3) Section 15 (46 U.S.C. App. 814).

24 (4) Section 16 (46 U.S.C. App. 815).

25 (5) Section 17 (46 U.S.C. App. 816).
292

•HR 2539 RH

1 (6) Section 18 (46 U.S.C. App. 817).

2 (7) Section 19 (46 U.S.C. App. 818).

3 (8) Section 20 (46 U.S.C. App. 819).

4 (9) Section 21 (46 U.S.C. App. 820).

5 (10) Section 22 (46 U.S.C. App. 821).

6 (11) Section 23 (46 U.S.C. App. 822).

7 (12) Section 24 (46 U.S.C. App. 823).

8 (13) Section 25 (46 U.S.C. App. 824).

9 (14) Section 27 (46 U.S.C. App. 826).

10 (15) Section 29 (46 U.S.C. App. 828).

11 (16) Section 30 (46 U.S.C. App. 829).

12 (17) Section 31 (46 U.S.C. App. 830).

13 (18) Section 32 (46 U.S.C. App. 831).

14 (19) Section 33 (46 U.S.C. App. 832).

15 (20) Section 35 (46 U.S.C. App. 833a).

16 (21) Section 43 (46 U.S.C. App. 841a).

17 (22) Section 45 (46 U.S.C. App. 841c).

18 SEC. 336. DEPARTMENT OF TRANSPORTATION AND RELAT19 ED AGENCIES APPROPRIATION ACT, 1982

20 AMENDMENT.

21 Section 402 of the Department of Transportation and

22 Related Agencies Appropriation Act, 1982 (Public Law 97–

23 102; 95 Stat. 1465) is repealed.

HR 2539 RH——2

HR 2539 RH——3
293

•HR 2539 RH

HR 2539 RH——4

HR 2539 RH——5

HR 2539 RH——6

HR 2539 RH——7

HR 2539 RH——8

HR 2539 RH——9

HR 2539 RH——10

HR 2539 RH——11

HR 2539 RH——12

HR 2539 RH——13

HR 2539 RH——14

HR 2539 RH——15

HR 2539 RH——16

HR 2539 RH——17

HR 2539 RH——18

HR 2539 RH——19

HR 2539 RH——20