I

104TH CONGRESS

1ST SESSION H. R. 2539

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

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,

3 SECTION 1. SHORT TITLE.

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

5 of 1995’’.
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1 TITLE I—ABOLITION OF INTER2 STATE COMMERCE COMMIS3 SION

4 SEC. 101. ABOLITION.

5 The Interstate Commerce Commission is abolished.

6 SEC. 102. RAIL PROVISIONS.

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

8 States Code, is amended to read as follows:

9 ‘‘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

10 ‘‘PART A—RAIL

11 ‘‘CHAPTER 101—GENERAL PROVISIONS

‘‘Sec.
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‘‘10101. Rail transportation policy.

‘‘10102. Definitions.

‘‘10103. Remedies are exclusive.

1 ‘‘§ 10101. Rail transportation policy

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

3 of the United States Government—

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

5 competition and the demand for services to establish

6 reasonable rates for transportation by rail;

7 ‘‘(2) to minimize the need for Federal regu8 latory control over the rail transportation system

9 and to require fair and expeditious regulatory deci10 sions when regulation is required;

11 ‘‘(3) to promote a safe and efficient rail trans12 portation system by allowing rail carriers to earn

13 adequate revenues, as determined by the Panel;

14 ‘‘(4) to ensure the development and continu15 ation of a sound rail transportation system with ef16 fective competition among rail carriers and with

17 other modes, to meet the needs of the public and the

18 national defense;

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

20 transportation and to ensure effective competition

21 and coordination between rail carriers and other

22 modes;

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

24 an absence of effective competition and where rail
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1 rates provide revenues which exceed the amount nec2 essary to maintain the rail system and to attract

3 capital;

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

5 and exit from the industry;

6 ‘‘(8) to operate transportation facilities and

7 equipment without detriment to the public health

8 and safety;

9 ‘‘(9) to encourage honest and efficient manage10 ment of railroads;

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

12 extent practicable, to rely on individual rate in13 creases, and to limit the use of increases of general

14 applicability;

15 ‘‘(11) to encourage fair wages and safe and

16 suitable working conditions in the railroad industry;

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

18 power and to prohibit unlawful discrimination;

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

20 information in regulatory proceedings, while mini21 mizing the burden on rail carriers of developing and

22 maintaining the capability of providing such infor23 mation; and

24 ‘‘(14) to encourage and promote energy con25 servation.
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1 ‘‘§ 10102. Definitions

2 ‘‘In this part—

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

4 supply, movement, distribution, exchange, inter5 change, and return of locomotives, cars, other vehi6 cles, and special types of equipment used in the

7 transportation of property by a rail carrier, and (B)

8 the supply of trains by a rail carrier;

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

10 between persons, includes actual control, legal con11 trol, and the power to exercise control, through or

12 by (A) common directors, officers, stockholders, a

13 voting trust, or a holding or investment company, or

14 (B) any other means;

15 ‘‘(3) ‘Panel’ means the Transportation Adju16 dication Panel;

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

18 section 1 of title 1, includes a trustee, receiver, as19 signee, or personal representative of a person;

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

21 railroad transportation for compensation, but does

22 not include street, suburban, or interurban electric

23 railways not operated as part of the general system

24 of rail transportation;

25 ‘‘(6) ‘railroad’ includes—
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1 ‘‘(A) a bridge, car float, lighter, and ferry

2 used by or in connection with a railroad;

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

4 owned by it or operated under an agreement;

5 and

6 ‘‘(C) a switch, spur, track, terminal, termi7 nal facility, and a freight depot, yard, and

8 ground, used or necessary for transportation;

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

10 transportation;

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

12 and the District of Columbia;

13 ‘‘(9) ‘transportation’ includes—

14 ‘‘(A) a locomotive, car, vehicle, yard, prop15 erty, facility, instrumentality, or equipment of

16 any kind related to the movement of passengers

17 or property, or both, by rail, regardless of own18 ership or an agreement concerning use; and

19 ‘‘(B) services related to that movement, in20 cluding receipt, delivery, elevation, transfer in

21 transit, refrigeration, icing, ventilation, storage,

22 handling, and interchange of passengers and

23 property; and

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

25 United States and the District of Columbia.
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1 ‘‘§10103. Remedies are exclusive

2 ‘‘Except as otherwise provided in this part, the rem3 edies provided under this part are exclusive and preempt

4 the remedies provided under any Federal or State statute.

5 ‘‘CHAPTER 103—JURISDICTION

‘‘Sec.

‘‘10301. General jurisdiction.

‘‘10302. Authority to exempt rail carrier transportation.

6 ‘‘§ 10301. General jurisdiction

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

8 Panel has jurisdiction over transportation by rail carrier

9 that is—

10 ‘‘(A) only by railroad; or

11 ‘‘(B) by railroad and water, when the transpor12 tation is under common control, management, or ar13 rangement for a continuous carriage or shipment.

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

15 transportation in the United States between a place in—

16 ‘‘(A) a State and a place in the same or an17 other State;

18 ‘‘(B) a State and a place in a territory or pos19 session of the United States;

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

21 States and a place in another such territory or pos22 session;
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1 ‘‘(D) a territory or possession of the United

2 States and another place in the same territory or

3 possession;

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

5 the United States through a foreign country; or

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

7 country.

8 ‘‘(b) This part does not affect the power of a State

9 to exercise its police power, unless the State requirement

10 is inconsistent with an order of the Panel issued under

11 this part or is prohibited under this part.

12 ‘‘(c) The jurisdiction of the Panel over—

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

14 remedies provided in this part with respect to rates,

15 classifications, rules, practices, and facilities of such

16 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.
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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

5 under this part, the Panel, to the maximum extent consist6 ent with this part, shall exempt a person, class of persons,

7 or a transaction or service whenever the Panel finds that

8 the application 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

16 market 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, approve or disapprove such application.

22 If the application is approved, the Panel shall begin an

23 appropriate proceeding as soon as practicable. If the appli24 cation is disapproved, the reasons for the disapproval shall

25 be published in the Federal Register. Any proceeding
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1 begun as a result of an application under this subsection

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

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

4 which an exemption granted under this section is effective.

5 ‘‘(d) The Panel may revoke an exemption, to the ex6 tent it specifies, when it finds that application of a provi7 sion of this part to the person, class, or transportation

8 is necessary to carry out the transportation policy of sec9 tion 10101 of this title.

10 ‘‘(e) No exemption order issued pursuant to this sec11 tion shall operate to relieve any rail carrier from an obliga12 tion to provide contractual terms for liability and claims

13 which are consistent with the provisions of section 11506

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

15 of this title shall prevent rail carriers from offering alter16 native terms nor give the Panel the authority to require

17 any specific level of rates or services based upon the provi18 sions of section 11506 of this title.

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

20 section to exempt transportation that is provided by a rail

21 carrier.

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

23 this section to relieve a rail carrier of its obligation to pro24 tect the interests of employees as required by this part.
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1 ‘‘CHAPTER 105—RATES

‘‘SUBCHAPTER I—GENERAL AUTHORITY

‘‘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.

2 ‘‘SUBCHAPTER I—GENERAL AUTHORITY

3 ‘‘§ 10501. Standards for rates, classifications, through

4 routes, rules, and practices

5 ‘‘(a) A through route established by a rail carrier

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

7 must be made without unreasonable discrimination

8 against a participating carrier and must be reasonable.

9 ‘‘(b) A rail carrier providing transportation subject

10 to the jurisdiction of the Panel under this part may not

11 discriminate in its rates against a connecting line of an12 other rail carrier providing transportation subject to the
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1 jurisdiction of the Panel under this part or unreasonably

2 discriminate against that line in the distribution of traffic

3 that is not routed specifically by the shipper.

4 ‘‘(c) Except as provided in subsection (d) of this sec5 tion and unless a rate is prohibited by a provision of this

6 part, a rail carrier providing transporation subject to the

7 jurisdiction of the Panel under this part may establish any

8 rate for transportation or other service provided by the

9 rail carrier.

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

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

12 the transportation to which a particular rate applies, the

13 rate established by such carrier for such transportation

14 must be reasonable.

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

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

17 Panel shall recognize the policy of this part that rail car18 riers shall earn adequate revenues, as established by the

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

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

21 of the enactment of this paragraph, complete the pending

22 Interstate Commerce Commission non-coal rate guidelines

23 proceeding to establish simplified and expedited proce24 dures for the determination of rate reasonableness cases
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1 in which a full presentation of constrained market pricing

2 evidence is impractical.

3 ‘‘§ 10502. Authority for rail carriers to establish rates,

4 classifications, rules, and practices

5 ‘‘A rail carrier providing transportation or service

6 subject to the jurisdiction of the Panel under this part

7 shall establish—

8 ‘‘(1) rates, including divisions of joint rates,

9 and classifications for transportation and service it

10 may provide under this part; and

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

12 that transportation or service.

13 ‘‘§ 10503. Authority for rail carriers to establish

14 through routes

15 ‘‘Rail carriers providing transportation subject to the

16 jurisdiction of the Panel under this part shall establish

17 through routes with each other, shall establish rates and

18 classifications applicable to those routes, and shall estab19 lish rules for their operation and provide—

20 ‘‘(1) reasonable facilities for operating the

21 through route; and

22 ‘‘(2) reasonable compensation to persons enti23 tled to compensation for services related to the

24 through route.
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1 ‘‘§ 10504. Authority and criteria: rates, classifications,

2 rules, and practices prescribed by Panel

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

4 that a rate charged or collected by a rail carrier for trans5 portation subject to the jurisdiction of the Panel under

6 this part, or that a classification, rule, or practice of that

7 carrier does or will violate this part, the Panel may pre8 scribe the maximum rate, classification, rule, or practice

9 to be followed. The Panel may order the carrier to stop

10 the violation. When a rate, classification, rule, or practice

11 is prescribed under this subsection, the affected carrier

12 may not publish, charge, or collect a different rate and

13 shall adopt the classification and observe the rule or prac14 tice prescribed by the Panel.

15 ‘‘(2) The Panel shall maintain and revise as nec16 essary standards and procedures for establishing revenue

17 levels for rail carriers providing transportation subject to

18 its jurisdiction under this part that are adequate, under

19 honest, economical, and efficient management, to cover

20 total operating expenses, including depreciation and obso21 lescence, plus a reasonable and economic profit or return

22 (or both) on capital employed in the business. The Panel

23 shall make an adequate and continuing effort to assist

24 those carriers in attaining revenue levels prescribed under

25 this paragraph. Revenue levels established under this

26 paragraph should—
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1 ‘‘(A) provide a flow of net income plus deprecia2 tion adequate to support prudent capital outlays, as3 sure the repayment of a reasonable level of debt,

4 permit the raising of needed equity capital, and

5 cover the effects of inflation; and

6 ‘‘(B) attract and retain capital in amounts ade7 quate to provide a sound transportation system in

8 the United States.

9 ‘‘(3) On the basis of the standards and procedures

10 described in paragraph (2), the Panel shall annually deter11 mine which rail carriers are earning adequate revenues.

12 ‘‘(b) The Panel may begin a proceeding under this

13 section on its own initiative or on complaint. A complaint

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

15 section 11501 of this title, but the proceeding may also

16 be in extension of a complaint pending before the Panel.

17 ‘‘§ 10505. Authority: through routes, joint classifica18 tions, rates, and divisions prescribed by

19 Panel

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

21 it desirable in the public interest, prescribe through

22 routes, joint classifications, joint rates, the division of

23 joint rates, and the conditions under which those routes

24 must be operated, for a rail carrier providing transpor-
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1 tation subject to the jurisdiction of the Panel under this

2 part.

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

4 in a through route substantially less than the entire length

5 of its railroad and any intermediate railroad operated with

6 it under common management or control if that intermedi7 ate railroad lies between the terminals of the through

8 route only when—

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

10 11101 of this title;

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

12 through route unreasonably long when compared

13 with a practicable alternative through route that

14 could be established; or

15 ‘‘(C) the Panel decides that the proposed

16 through route is needed to provide adequate, and

17 more efficient or economic, transportation.

18 The Panel shall give reasonable preference, subject to this

19 subsection, to the rail carrier originating the traffic when

20 prescribing through routes.

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

22 rates to be received by a rail carrier providing transpor23 tation subject to its jurisdiction under this part when it

24 decides that a division of joint rates established by the

25 participating carriers under section 10503 of this title, or
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1 under a decision of the Panel under subsection (a) of this

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

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

4 decision of the Panel is later found to violate section

5 10501 of this title, the Panel may decide what division

6 would have been reasonable and order adjustment to be

7 made retroactive to the date the complaint was filed, the

8 date the order for an investigation was made, or a later

9 date that the Panel decides is justified. The Panel may

10 make a decision under this subsection effective as part of

11 its original decision.

12 ‘‘§ 10506. Rate agreements: exemption from antitrust

13 laws

14 ‘‘(a)(1) In this subsection—

15 ‘‘(A) the term ‘affiliate’ means a person control16 ling, controlled by, or under common control or own17 ership with another person and ‘ownership’ refers to

18 equity holdings in a business entity of at least 5 per19 cent;

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

21 or allowance proposed by a single rail carrier that is

22 applicable only over its line and for which the trans23 portation (exclusive of terminal services by switch24 ing, drayage or other terminal carriers or agencies)

25 can be provided by that carrier; and
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1 ‘‘(C) the term ‘practicably participates in the

2 movement’ shall have such meaning as the Panel

3 shall by regulation prescribe.

4 ‘‘(2)(A) A rail carrier providing transportation sub5 ject to the jurisdiction of the Panel under this part that

6 is a party to an agreement of at least 2 rail carriers that

7 relates to rates (including charges between rail carriers

8 and compensation paid or received for the use of facilities

9 and equipment), classifications, divisions, or rules related

10 to them, or procedures for joint consideration, initiation,

11 publication, or establishment of them, shall apply to the

12 Panel for approval of that agreement under this sub13 section. The Panel shall approve the agreement only when

14 it finds that the making and carrying out of the agreement

15 will further the transportation policy of section 10101 of

16 this title and may require compliance with conditions nec17 essary to make the agreement further that policy as a con18 dition of its approval. If the Panel approves the agree19 ment, it may be made and carried out under its terms

20 and under the conditions required by the Panel, and the

21 Sherman Act (15 U.S.C. 1, et seq.), the Clayton Act (15

22 U.S.C. 12, et seq.), the Federal Trade Commission Act

23 (15 U.S.C. 41, et seq.), sections 73 and 74 of the Wilson

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

25 1936 (15 U.S.C. 13, 13a, 13b, 21a) do not apply to par-
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1 ties and other persons with respect to making or carrying

2 out the agreement. However, the Panel may not approve

3 or continue approval of an agreement when the conditions

4 required by it are not met or if it does not receive a veri5 fied statement under subparagraph (B) of this paragraph.

6 ‘‘(B) The Panel may approve an agreement under

7 subparagraph (A) of this paragraph only when the rail

8 carriers applying for approval file a verified statement

9 with the Panel. Each statement must specify for each rail

10 carrier that is a party to the agreement—

11 ‘‘(i) the name of the carrier;

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

13 of its headquarter’s office; and

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

15 names, addresses, and affiliates of each of its offi16 cers and directors and of each person, together with

17 an affiliate, owning or controlling any debt, equity,

18 or security interest in it having a value of at least

19 $1,000,000.

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

21 under an agreement approved under this subsection shall

22 make a final disposition of a rule or rate docketed with

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

24 an organization may not—
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1 ‘‘(i) permit a rail carrier to discuss, to partici2 pate in agreements related to, or to vote on single3 line rates proposed by another rail carrier, except

4 that for purposes of general rate increases and

5 broad changes in rates, classifications, rules, and

6 practices only, if the Panel finds at any time that

7 the implementation of this clause is not feasible, it

8 may delay or suspend such implementation in whole

9 or in part;

10 ‘‘(ii) permit a rail carrier to discuss, to partici11 pate in agreements related to, or to vote on rates re12 lated to a particular interline movement unless that

13 rail carrier practicably participates in the movement;

14 or

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

16 or more routes between the same end points, permit

17 a carrier to discuss, to participate in agreements re18 lated to, or to vote on rates except with a carrier

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

20 Panel finds at any time that the implementation of

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

22 such implementation in whole or in part.

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

24 that a rail carrier voted or agreed on a rate or allowance

25 in violation of this subsection, that party has the burden
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1 of showing that the vote or agreement occurred. A showing

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

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

4 carrier was a party to an agreement, conspiracy, or com5 bination in violation of a Federal law cited in subsection

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

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

8 inferred from evidence that two or more rail carriers acted

9 together with respect to an interline rate or related matter

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

11 respect to a rate or related matter on another route or

12 traffic. In any proceeding in which such a violation is al13 leged, evidence of a discussion or agreement between or

14 among such rail carrier and one or more other rail car15 riers, or of any rate or other action resulting from such

16 discussion or agreement, shall not be admissible if the dis17 cussion or agreement—

18 ‘‘(I) was in accordance with an agreement ap19 proved under paragraph (2) of this subsection; or

20 ‘‘(II) concerned an interline movement of the

21 rail carrier, and the discussion or agreement would

22 not, considered by itself, violate the laws referred to

23 in the first sentence of this clause.
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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

7 be made, and that such transcripts or recordings and vot8 ing records be submitted to the Panel and made available

9 to other Federal agencies in connection with their statu10 tory responsibilities over rate bureaus, except that such

11 material shall be kept confidential and shall not be subject

12 to disclosure under section 552 of title 5, United States

13 Code.

14 ‘‘(4) Notwithstanding any other provision of this sub15 section, one or more rail carriers may enter into an agree16 ment, without obtaining prior Panel approval, that pro17 vides solely for compilation, publication, and other dis18 tribution of rates in effect or to become effective. The

19 Sherman Act (15 U.S.C. 1 et seq.), the Clayton Act (15

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

21 U.S.C. 41 et seq.), sections 73 and 74 of the Wilson Tariff

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

23 (15 U.S.C. 13, 13a, 13b, 21a) shall not apply to parties

24 and other persons with respect to making or carrying out

25 such agreement. However, the Panel may, upon applica-
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1 tion or on its own initiative, investigate whether the par2 ties to such an agreement have exceeded its scope, and

3 upon a finding that they have, the Panel may issue such

4 orders as are necessary, including an order dissolving the

5 agreement, to ensure that actions taken pursuant to the

6 agreement are limited as provided in this paragraph.

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

8 an agreement to discuss among themselves that relates to

9 the amount of compensation such shippers propose to be

10 paid by rail carriers providing transportation subject to

11 the jurisdiction of the Panel under this part, for use by

12 such rail carriers of rolling stock owned or leased by such

13 shippers, the shippers shall apply to the Panel for approval

14 of that agreement under this paragraph. The Panel shall

15 approve the agreement only when it finds that the making

16 and carrying out of the agreement will further the trans17 portation policy set forth in 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 ap20 proval. If the Panel approves the agreement, it may be

21 made and carried out under its terms and under the terms

22 required by the Panel, and the antitrust laws set forth

23 in paragraph (2) of this subsection do not apply to parties

24 and other persons with respect to making or carrying out

25 the agreement. The Panel shall approve or disapprove an
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1 agreement under this paragraph within one year after the

2 date application for approval of such agreement is made.

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

4 in subparagraph (A) of this paragraph and the shippers

5 entering into such agreement and the rail carriers propos6 ing to use rolling stock owned or leased by such shippers,

7 under payment by such carriers or under a published al8 lowance, are unable to agree upon the amount of com9 pensation to be paid for the use of such rolling stock, any

10 party directly involved in the negotiations may require

11 that the matter be settled by submitting the issues in dis12 pute to the Panel. The Panel shall render a binding deci13 sion, based upon a standard of reasonableness and after

14 taking into consideration any past precedents on the sub15 ject matter of the negotiations, no later than 90 days after

16 the date of the submission 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

20 of rail carriers to utilize rolling stock owned or leased by

21 shippers.

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.
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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

10 section on its own initiative or on application. Action of

11 the 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

18 laws 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

21 least 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 require25 ments of that subsection and the public interest; and
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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

6 shall 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

19 that will further the goals of this part and of the

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

2 rate proceedings

3 ‘‘(a) In this section, ‘market dominance’ means an

4 absence of effective competition from other rail carriers

5 or modes of transportation for the transportation to which

6 a 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 whether the rail carrier

11 proposing the rate has market dominance over the trans12 portation to which the rate applies. The Panel may make

13 that determination on its own initiative or on complaint.

14 A finding by the Panel that the rail carrier does not have

15 market dominance is determinative in a proceeding under

16 this part related to that rate or transportation unless

17 changed or set aside by the Panel or set aside by a court

18 of competent jurisdiction.

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

20 rail carrier proposing or defending a rate for transpor21 tation has market dominance over the transportation to

22 which the rate applies, it may then determine that rate

23 to be unreasonable if it exceeds a reasonable maximum

24 for that transportation. However, a finding of market

25 dominance does not establish a presumption that the pro26 posed rate exceeds a reasonable maximum.
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1 ‘‘(d)(1) In this subsection—

2 ‘‘(A) the term ‘fixed and variable cost’ means

3 all cost incurred by rail carriers in the transpor4 tation of freight, but limiting the return on equity

5 capital to a rate equal to the embedded cost of debt;

6 ‘‘(B) the term ‘cost recovery percentage’ means

7 the lowest revenue-variable cost percentage which, if

8 all movements that produced revenues resulting in

9 revenue-variable cost percentages in excess of the

10 cost recovery percentage are deemed to have pro11 duced only revenues resulting in the cost recovery

12 percentage, would produce revenues which would be

13 equal, when combined with total revenues produced

14 by all other traffic transported by rail carrier, to the

15 total fixed and variable cost of the transportation of

16 all traffic by rail carrier; and

17 ‘‘(C) for purposes of determining the cost recov18 ery percentage only, the term ‘revenue-variable cost

19 percentage’ means the quotient, expressed as a per20 centage figure, obtained by dividing the total reve21 nues produced by the transportation of all traffic re22 ceived by rail carriers for rail transportation by the

23 total variable cost of such transportation.

24 ‘‘(2) In making a determination under this section,

25 the Panel shall find that the rail carrier establishing the
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1 challenged rate does not have market dominance over the

2 transportation to which the rate applies if such rail carrier

3 proves that the rate charged results in a revenue-variable

4 cost percentage for such transportation that is less than

5 180 percent.

6 ‘‘(3) A finding by the Panel that a rate charged by

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

8 for the transportation to which the rate applies that is

9 equal to or greater than 180 percent does not establish

10 a presumption that—

11 ‘‘(A) such rail carrier has or does not have mar12 ket dominance over such transportation; or

13 ‘‘(B) the proposed rate exceeds or does not ex14 ceed a reasonable maximum.

15 ‘‘§ 10508. Inflation-based rate increases

16 ‘‘(a) The Panel may, on a quarterly basis and consist17 ent with the rail transportation policy set forth in section

18 10101 of this title, prescribe a percentage rate index for

19 rail carriers in order to compensate for inflationary cost

20 increases. Such percentage rate index may be applicable

21 on an industry-wide, territory-wide, or carrier-by-carrier

22 basis.

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

24 index may permit rate increases within a specified range

25 to allow carriers to recover a total revenue increase speci-
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1 fied by the Panel as necessary to compensate for inflation2 ary cost increases.

3 ‘‘§ 10509. Contracts

4 ‘‘(a) One or more rail carriers providing transpor5 tation subject to the jurisdiction of the Panel under this

6 part may enter into a contract with one or more pur7 chasers of rail services to provide specified services under

8 specified rates and conditions.

9 ‘‘(b) A party to a contract entered into under this

10 section shall have no duty in connection with services pro11 vided under such contract other than those duties specified

12 by the terms of the contract.

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

14 and transportation under such contract, shall not be sub15 ject to this part, and may not be subsequently challenged

16 before the Panel or in any court on the grounds that such

17 contract violates a provision of this part.

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

19 a contract entered into under this section shall be an ac20 tion in an appropriate State court or United States dis21 trict court, unless the parties otherwise agree.

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

23 thereof) relating to a contract described in subsection (a)

24 shall not be subject to the mandatory disclosure require25 ments of section 552 of title 5.
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1 ‘‘SUBCHAPTER II—SPECIAL CIRCUMSTANCES

2 ‘‘§ 10521. Government traffic

3 ‘‘A rail carrier providing transportation or service for

4 the United States Government may transport property for

5 the United States Government without charge or at a rate

6 reduced from the applicable commercial rate. Section 3709

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

8 transportation for the United States Government can be

9 obtained from a rail carrier lawfully operating in the area

10 where the transportation would be provided.

11 ‘‘§ 10522. Emergency rates

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

13 transportation or service subject to its jurisdiction under

14 this part to give reduced rates for service and transpor15 tation of property to or from an area in the United States

16 to provide relief during emergencies. When the Panel

17 takes action under this subsection, it must—

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

19 which the reduced rates will apply;

20 ‘‘(2) specify the period during which the re21 duced rates are to be in effect; and

22 ‘‘(3) define the class of persons entitled to the

23 reduced rates.

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

25 reduced rates by reference to those persons designated as
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1 being in need of relief by the United States Government

2 or by a State government authorized to assist in providing

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

4 section without regard to subchapter II of chapter 5 of

5 title 5.

6 ‘‘§ 10523. Car utilization

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

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

9 carriers shall be permitted to establish premium charges

10 for special services or special levels of services not other11 wise applicable to the movement. The Panel shall facilitate

12 development of such charges so as to increase the utiliza13 tion of equipment.

14 ‘‘SUBCHAPTER III—LIMITATIONS

15 ‘‘§ 10541. Prohibitions against discrimination by rail

16 carriers

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

18 subject to the jurisdiction of the Panel under this part

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

20 to unreasonable discrimination.

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

22 ‘‘(1) contracts described in section 10509 of

23 this title; or

24 ‘‘(2) rail rates applicable to different routes.
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1 ‘‘§ 10542. Facilities for interchange of traffic

2 ‘‘A rail carrier providing transportation subject to the

3 jurisdiction of the Panel under this part shall provide rea4 sonable, proper, and equal facilities that are within its

5 power to provide for the interchange of traffic between,

6 and for the receiving, forwarding, and delivering of pas7 sengers and property to and from, its respective line and

8 a connecting line of another rail carrier.

9 ‘‘§ 10543. Continuous carriage of freight

10 ‘‘A rail carrier providing transportation or service

11 subject to the jurisdiction of the Panel under this part

12 may not enter a combination or arrangement to prevent

13 the carriage of freight from being continuous from the

14 place of shipment to the place of destination whether by

15 change of time schedule, carriage in different cars, or by

16 other means. The carriage of freight by those rail carriers

17 is considered to be a continuous carriage from the place

18 of shipment to the place of destination when a break of

19 bulk, stoppage, or interruption is not made in good faith

20 for a necessary purpose, and with the intent of avoiding

21 or unnecessarily interrupting the continuous carriage or

22 of evading this part.

23 ‘‘§ 10544. Transportation services or facilities fur24 nished by shipper

25 ‘‘A rail carrier providing transportation or service

26 subject to the jurisdiction of the Panel under this part
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1 may publish a charge or allowance for transportation or

2 service for property when the owner of the property, di3 rectly or indirectly, furnishes a service related to or an

4 instrumentality used in the transportation or service. The

5 Panel may prescribe the maximum reasonable charge or

6 allowance a rail carrier subject to its jurisdiction may pay

7 for a service or instrumentality furnished under this sec8 tion. The Panel may begin a proceeding under this section

9 on its own initiative or on application.

10 ‘‘§ 10545. Demurrage charges

11 ‘‘A rail carrier providing transportation subject to the

12 jurisdiction of the Panel under this part shall compute de13 murrage charges, and establish rules related to those

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

15 to—

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

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

18 freight cars to be available for transportation of

19 property.

20 ‘‘CHAPTER 107—LICENSING

‘‘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.
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1 ‘‘§ 10701. Authorizing construction and operation of

2 railroad lines

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

4 to the jurisdiction of the Panel under this part may—

5 ‘‘(1) construct an extension to any of its rail6 road 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

11 of, an extended or additional railroad line;

12 only if the Panel issues a certificate authorizing such ac13 tivity under subsection (c).

14 ‘‘(b) A proceeding to grant authority under sub15 section (a) of this section begins when an application is

16 filed. On receiving the application, the Panel shall give

17 reasonable public notice of the beginning of such proceed18 ing.

19 ‘‘(c) The Panel shall issue a certificate authorizing

20 activities for which such authority is requested in an appli21 cation filed under subsection (b) unless the Panel finds

22 that such activities are inconsistent with the public con23 venience and necessity. Such certificate may approve the

24 application as filed, or with modifications, and may re25 quire compliance with conditions the Panel finds necessary

26 in the public interest.
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1 ‘‘(d)(1) When a certificate has been issued by the

2 Panel under this section or section 10702 authorizing the

3 construction or extension of a railroad line, no other rail

4 carrier may block any construction or extension authorized

5 by such certificate by refusing to permit the carrier to

6 cross 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 deter19 mination.

20 ‘‘(e) Subsections (a), (b), and (c) of this section shall

21 only apply to Class I rail carriers.
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1 ‘‘§ 10702. Finance and construction transactions by

2 Class II and Class III rail carriers and

3 noncarriers

4 ‘‘(a)(1) A Class II or Class III rail carrier providing

5 transportation subject to the jurisdiction of the Panel

6 under this part, or a noncarrier, may—

7 ‘‘(A) construct an extension of any of its rail8 road lines;

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

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

11 only if the Panel issues a certificate authorizing such ac12 tivity under subsection (c).

13 ‘‘(2) A certificate issued by the Panel under sub14 section (c) shall also be required for—

15 ‘‘(A) a Class II or Class III rail carrier provid16 ing transportation subject to the jurisdiction of the

17 Panel under this part, or a noncarrier to provide

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

19 by trackage rights, lease, or joint ownership or joint

20 use of the railroad line (and terminals incidental

21 thereto);

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

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

24 carriers into one corporation for the ownership,

25 management, and operation of the previously sepa26 rately owned properties;
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1 ‘‘(C) the acquisition of control of a Class II or

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

3 Class III rail carriers;

4 ‘‘(D) the acquisition of control of at least 2

5 Class II or Class III rail carriers by a person that

6 is not a rail carrier; and

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

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

9 carrier but that controls at least one Class II or

10 Class III rail carrier.

11 ‘‘(b) A proceeding to grant authority under sub12 section (a) begins when an application is filed. On receiv13 ing the application, the Panel shall give reasonable public

14 notice of the beginning of such proceeding.

15 ‘‘(c) The Panel shall issue a certificate authorizing

16 activities for which such authority is requested in an appli17 cation filed under subsection (b) unless the Panel finds

18 that such activities are inconsistent with the public con19 venience and necessity because—

20 ‘‘(1) as a result of the transaction, there is like21 ly to be substantial lessening of competition, cre22 ation of a monopoly, or restraint of trade in freight

23 surface transportation in any region of the United

24 States; and
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1 ‘‘(2) the anticompetitive effects of the trans2 action outweigh the public interest in meeting sig3 nificant transportation needs.

4 Such certificate may approve the application as filed, or

5 with modifications, and may require compliance with con6 ditions the Panel finds necessary in the public interest.

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

8 which approval is sought under this section, the Panel

9 shall require such person to protect the interest of affected

10 employees to an extent equal to the protection required

11 under sections 2 through 5 of the Worker Adjustment and

12 Retraining Notification Act (29 U.S.C. 2101–2104).

13 ‘‘(e) The authority of the Panel over transactions de14 scribed in subsection (a)(2) is exclusive. A rail carrier or

15 corporation participating in or resulting from such a

16 transaction may carry out the transaction, own and oper17 ate property, and exercise control or franchises acquired

18 through the transaction without the approval of a State

19 authority. A rail carrier, corporation, or person participat20 ing in that transaction is exempt from the antitrust laws

21 and from all other law, including State and municipal law,

22 as necessary to let that rail carrier, corporation, or person

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

24 property and exercise control or franchises acquired

25 through the transaction.
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1 ‘‘§ 10703. Filing and procedure for notice of intent to

2 abandon or discontinue

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

4 to the jurisdiction of the Panel under this part who in5 tends to—

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

7 ‘‘(B) discontinue the operation of all rail trans8 portation over any part of its railroad lines,

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

10 ‘‘(2) When a rail carrier providing transportation

11 subject to the jurisdiction of the Panel under this part

12 files a notice of intent, the notice shall include—

13 ‘‘(A) an accurate and understandable summary

14 of the rail carrier’s reasons for the proposed aban15 donment or discontinuance;

16 ‘‘(B) a statement indicating that each inter17 ested person is entitled to make recommendations to

18 the Panel on the future of the rail line; and

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

20 sale in accordance with section 10704 of this title,

21 (ii) a statement that the rail carrier will promptly

22 provide to each interested party an estimate of the

23 minimum purchase price, calculated in accordance

24 with section 10704 of this title and (iii) the name

25 and business address of the person who is author26 ized to discuss sale terms for the rail carrier.
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1 ‘‘(3) The rail carrier shall—

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

3 of intent to the chief executive officer of each State

4 that would be directly affected by the proposed

5 abandonment or discontinuance;

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

7 and station on each portion of a railroad line pro8 posed to be abandoned or over which all transpor9 tation is to be discontinued;

10 ‘‘(C) publish a copy of the notice for 3 consecu11 tive weeks in a newspaper of general circulation in

12 each county in which each such portion is located;

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

14 practicable, to all shippers that have made signifi15 cant use (as designated by the Panel) of the railroad

16 line during the 12 months preceding the filing of the

17 notice of intent; and

18 ‘‘(E) attach to the notice filed with the Panel

19 an affidavit certifying the manner in which subpara20 graphs (A) through (D) of this paragraph have been

21 satisfied, and certifying that subparagraphs (A)

22 through (D) have been satisfied within the most re23 cent 30 days prior to the date the notice of intent

24 is filed.
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1 ‘‘(b)(1) Except as provided in paragraph (2), aban2 donment and discontinuance may occur as provided in sec3 tion 10704.

4 ‘‘(2) If, after considering the scope of an abandon5 ment or discontinuance proposed in a notice of intent filed

6 under this section, the Panel considers it necessary, to im7 prove the viability of the lines included within the proposed

8 abandonment or discontinuance for possible sale or trans9 fer and continued operation, and to enhance competitive

10 alternatives in the event of such sale or transfer, the Panel

11 may require the filing of a new notice of intent which en12 larges the scope of the proposed abandonment or dis13 continuance.

14 ‘‘(c)(1) In this subsection, the term ‘potentially sub15 ject to abandonment’ has the meaning given the term in

16 regulations of the Panel. The regulations may include

17 standards that vary by region of the United States and

18 by railroad or group of railroads.

19 ‘‘(2) Each rail carrier shall maintain a complete dia20 gram of the transportation system operated, directly or

21 indirectly, by the rail carrier. The rail carrier shall submit

22 to the Panel and publish amendments to its diagram that

23 are necessary to maintain the accuracy of the diagram.

24 The diagram shall—
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1 ‘‘(A) include a detailed description of each of its

2 railroad lines potentially subject to abandonment;

3 and

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

5 rail carrier plans to file a notice of intent to aban6 don or discontinue under subsection (a) of this sec7 tion.

8 ‘‘§ 10704. Offers to purchase to avoid abandonment

9 and discontinuance

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

11 to abandon or discontinue shall provide promptly to a

12 party considering an offer to purchase and shall provide

13 concurrently to the Panel—

14 ‘‘(1) a statement of the minimum purchase

15 price required;

16 ‘‘(2) its most recent reports on the physical

17 condition of that part of the railroad line involved in

18 the proposed abandonment or discontinuance;

19 ‘‘(3) traffic, revenue, and other data necessary

20 to determine the commercial potential of the railroad

21 line; and

22 ‘‘(4) any other information that the Panel con23 siders necessary to allow a potential offeror to cal24 culate an adequate purchase offer.
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1 ‘‘(b) Within 6 months after a notice of intent is filed

2 under section 10703, any person may offer to purchase

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

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

5 the offer to purchase is less than the minimum purchase

6 price stated pursuant to subsection (a)(1), the offer shall

7 explain the basis of the disparity, and the manner in which

8 the offer is calculated.

9 ‘‘(c)(1) Unless the Panel, within 15 days after the

10 expiration of the 6-month period described in subsection

11 (b), finds that one or more financially responsible persons

12 (including a governmental authority) have offered to pur13 chase that part of the railroad line to be abandoned or

14 over which all rail transportation is to be discontinued,

15 abandonment or discontinuance may be carried out.

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

17 to purchase have been made within such period, abandon18 ment or discontinuance shall be postponed until—

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

20 person have reached agreement on a transaction for

21 sale of the line; or

22 ‘‘(B) the conditions and amount of compensa23 tion are established under subsection (e).

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

25 rail carrier and a financially responsible person (including
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1 a governmental authority) fail to agree on the amount or

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

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

4 the conditions and amount of compensation.

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

6 the conditions and amount of compensation under this sec7 tion—

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

9 30 days;

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

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

12 Panel set a price which is below the fair market

13 value of the line (including, unless otherwise mutu14 ally agreed, all facilities on the line or portion nec15 essary to provide effective transportation services).

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

17 both parties, except that the person who has offered to

18 purchase the line may withdraw his offer within 10 days

19 of the Panel’s decision. In such a case, the abandonment

20 or discontinuance may be carried out immediately, unless

21 other offers are being considered pursuant to paragraph

22 (3) of this subsection.

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

24 purchase, it shall select the offeror with whom it wishes

25 to transact business, and complete the sale agreement, or
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1 request that the Panel establish the conditions and

2 amount of compensation before the 40th day after the ex3 piration of the 6-month period described in subsection (b).

4 If no agreement on sale is reached within such 40-day pe5 riod and the Panel has not been requested to establish

6 the conditions and amount of compensation, any other

7 offeror whose offer was made within the 6-month period

8 described in subsection (b) may request that the Panel es9 tablish the conditions and amount of compensation. If the

10 Panel has established the conditions and amount of com11 pensation, and the original offer has been withdrawn, any

12 other offeror whose offer was made within the 6-month

13 period described in subsection (b) may accept the Panel’s

14 decision within 20 days after such decision, and the Panel

15 shall require the carrier to enter into a sale agreement

16 with such offeror, if such sale agreement incorporates the

17 Panel’s decision.

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

19 under this section may transfer or discontinue service on

20 such line prior to the end of the second year after con21 summation of the sale, nor may such purchaser transfer

22 such line, except to the rail carrier from whom it was pur23 chased, prior to the end of the fifth year after consumma24 tion of the sale.
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1 ‘‘(f) Upon abandonment of a railroad line under this

2 section, the obligation of the rail carrier abandoning the

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

4 section 10901(a), is extinguished.

5 ‘‘§ 10705. Offering abandoned rail properties for sale

6 for public purposes

7 ‘‘When a rail carrier files a notice of intent to aban8 don or discontinue under section 10703, the Panel shall

9 find whether the rail properties that are involved in the

10 proposed abandonment or discontinuance are appropriate

11 for use for public purposes, including highways, other

12 forms of mass transportation, conservation, energy pro13 duction or transmission, or recreation. If the Panel finds

14 that the rail properties proposed to be abandoned are ap15 propriate for public purposes and not required for contin16 ued rail operations, the properties may be sold, leased, ex17 changed, or otherwise disposed of only under conditions

18 provided in the order of the Panel. The conditions may

19 include a prohibition on any such disposal for a period

20 of not more than 180 days after the effective date of the

21 order, unless the properties have first been offered, on rea22 sonable terms, for sale for public purposes.

23 ‘‘§ 10706. Exception

24 ‘‘Notwithstanding section 10701 and subchapter II

25 of chapter 111 of this title, and without the approval of
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1 the Panel, a rail carrier providing transportation subject

2 to the jurisdiction of the Panel under this part may enter

3 into arrangements for the joint ownership or joint use of

4 spur, industrial, team, switching, or side tracks.

5 ‘‘CHAPTER 109—OPERATIONS

‘‘SUBCHAPTER I—GENERAL REQUIREMENTS

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

‘‘10902. Use of terminal facilities.

‘‘10903. Switch connections and tracks.

‘‘SUBCHAPTER II—CAR SERVICE

‘‘10921. Criteria.

‘‘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.

6 ‘‘SUBCHAPTER I—GENERAL REQUIREMENTS

7 ‘‘§ 10901. Providing transportation, service, and rates

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

9 subject to the jurisdiction of the Panel under this part

10 shall provide the transportation or service on reasonable

11 request. A rail carrier shall not be found to have violated

12 this section because it fulfills its commitments under con-
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1 tracts authorized under section 10509 of this title before

2 responding to reasonable requests for service.

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

4 on reasonable request, rates and other service terms. The

5 response by a rail carrier to a request for rates and other

6 service terms shall be in writing and forwarded to the re7 questing person promptly after receipt of the request.

8 ‘‘§ 10902. Use of terminal facilities

9 ‘‘(a) The Panel may require terminal facilities, in10 cluding main-line tracks for a reasonable distance outside

11 of a terminal, owned by a rail carrier providing transpor12 tation subject to the jurisdiction of the Panel under this

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

14 that use to be practicable and in the public interest with15 out substantially impairing the ability of the rail carrier

16 owning the facilities or entitled to use the facilities to han17 dle its own business. The rail carriers are responsible for

18 establishing the conditions and compensation for use of

19 the facilities. However, if the rail carriers cannot agree,

20 the Panel may establish conditions and compensation for

21 use of the facilities under the principle controlling com22 pensation in condemnation proceedings. The compensation

23 shall be paid or adequately secured before a rail carrier

24 may begin to use the facilities of another rail carrier under

25 this section.
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1 ‘‘(b) A rail carrier whose terminal facilities are re2 quired to be used by another rail carrier under this section

3 is entitled to recover damages from the other rail carrier

4 for injuries sustained as the result of compliance with the

5 requirement or for compensation for the use, or both as

6 appropriate, in a civil action, if it is not satisfied with the

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

8 compensation is not paid promptly.

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

10 into reciprocal switching agreements, where it finds such

11 agreements to be practicable and in the public interest,

12 or where such agreements are necessary to provide com13 petitive rail service. The rail carriers entering into such

14 an agreement shall establish the conditions and compensa15 tion applicable to such agreement, but, if the rail carriers

16 cannot agree upon such conditions and compensation

17 within a reasonable period of time, the Panel may estab18 lish such conditions and compensation.

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

20 agreements entered into by rail carriers pursuant to this

21 subsection to contain provisions for the protection of the

22 interests of employees affected thereby.

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

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

25 the request for relief.
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1 ‘‘§ 10903. Switch connections and tracks

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

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

4 for transportation, a rail carrier providing transportation

5 subject to the jurisdiction of the Panel under this part

6 shall construct, maintain, and operate, on reasonable con7 ditions, a switch connection to connect that branch line

8 or private side track with its railroad and shall furnish

9 cars to move that traffic to the best of its ability without

10 discrimination in favor of or against the shipper when the

11 connection—

12 ‘‘(1) is reasonably practicable;

13 ‘‘(2) can be made safely; and

14 ‘‘(3) will furnish sufficient business to justify

15 its construction and maintenance.

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

17 switch connection after application is made under sub18 section (a) of this section, the owner of the lateral branch

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

20 the Panel under section 11501 of this title. The Panel

21 shall investigate the complaint and decide the safety, prac22 ticability, justification, and compensation to be paid for

23 the connection. The Panel may direct the rail carrier to

24 comply with subsection (a) of this section only after a full

25 hearing.
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1 ‘‘SUBCHAPTER II—CAR SERVICE

2 ‘‘§ 10921. Criteria

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

4 to the jurisdiction of the Panel under this part shall fur5 nish safe and adequate car service and establish, observe,

6 and enforce reasonable rules and practices on car service.

7 The Panel may require a rail carrier to provide facilities

8 and equipment that are reasonably necessary to furnish

9 safe and adequate car service if the Panel decides that

10 the rail carrier has materially failed to furnish that serv11 ice. The Panel may begin a proceeding under this para12 graph when an interested person files an application with

13 it. The Panel may act only after a hearing on the record

14 and an affirmative finding, based on the evidence pre15 sented, that—

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

17 not materially and adversely affect the ability of the

18 rail carrier to provide safe and adequate transpor19 tation;

20 ‘‘(B) the amount spent for the facilities or

21 equipment, including a return equal to the rail car22 rier’s current cost of capital, will be recovered; and

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

24 not impair the ability of the rail carrier to attract

25 adequate capital.
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1 ‘‘(2) The Panel may require a rail carrier to file its

2 car service rules with the Panel.

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

4 and agencies to make and carry out its directions related

5 to car service and matters under sections 10923 and

6 10924(a)(1) of this title.

7 ‘‘§ 10922. Compensation and practice

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

9 encourage the purchase, acquisition, and efficient use of

10 freight cars. The regulations may include—

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

12 a locomotive, freight car, or other vehicle;

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

14 the use by a rail carrier of a locomotive, freight car,

15 or other vehicle not owned by the rail carrier using

16 the locomotive, freight car, or other vehicle, whether

17 or not owned by another carrier, shipper, or third

18 person; and

19 ‘‘(3) sanctions for nonobservance.

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

21 type of freight car shall be determined by the expense of

22 owning and maintaining that type of freight car, including

23 a fair return on its cost giving consideration to current

24 costs of capital, repairs, materials, parts, and labor. In

25 determining the rate of compensation, the Panel shall con-
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1 sider the transportation use of each type of freight car,

2 the national level of ownership of each type of freight car,

3 and other factors that affect the adequacy of the national

4 freight car supply.

5 ‘‘§ 10923. Rerouting traffic on failure of rail carrier to

6 serve the public

7 ‘‘(a) When the Panel considers that a rail carrier pro8 viding transportation subject to the jurisdiction of the

9 Panel under this part cannot transport the traffic offered

10 to it in a manner that properly serves the public, the Panel

11 may direct the handling, routing, and movement of the

12 traffic of that rail carrier and its distribution over other

13 railroad lines to promote commerce and service to the pub14 lic. Subject to subsection (b)(2) of this section, the rail

15 carriers may establish the terms of compensation between

16 themselves.

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

18 subsection, the Panel may act under this section on its

19 own initiative or on application without regard to sub20 chapter II of chapter 5 of title 5.

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

22 of compensation under this section, the Panel may estab23 lish the terms for them in a later proceeding.
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1 ‘‘§ 10924. War emergencies; embargoes imposed by

2 carriers

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

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

5 the defense and security of the United States to give pref6 erence or priority to the movement of certain traffic, the

7 Panel shall direct that preference or priority be given to

8 that traffic.

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

10 threatened war, demands that preference and precedence

11 be given to the transportation of troops and material of

12 war over all other traffic, all rail carriers providing trans13 portation subject to the jurisdiction of the Panel under

14 this part shall adopt every means within their control to

15 facilitate and expedite the military traffic.

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

17 does not apply to shipments consigned to agents of the

18 United States Government for its use. The rail carrier

19 shall deliver those shipments as promptly as possible.

20 ‘‘SUBCHAPTER III—REPORTS AND RECORDS

21 ‘‘§ 10941. Definitions

22 ‘‘In this subchapter—

23 ‘‘(1) the terms ‘carrier’, ‘broker’, and ‘lessor’

24 include a receiver or trustee of a carrier, broker, and

25 lessor, respectively;
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1 ‘‘(2) the term ‘lessor’ means a person owning a

2 railroad that is leased to and operated by a carrier

3 providing transportation subject to the jurisdiction

4 of the Interstate Commerce Commission under this

5 part; and

6 ‘‘(3) the term ‘association’ means an organiza7 tion maintained by or in the interest of a group of

8 rail carriers or brokers providing transportation or

9 service subject to the jurisdiction of the Commission

10 under this part that performs a service, or engages

11 in activities, related to transportation under this

12 part.

13 ‘‘§ 10942. Uniform accounting system

14 ‘‘The Panel may prescribe a uniform accounting sys15 tem for classes of rail carriers providing, and brokers for,

16 transportation subject to the jurisdiction of the Panel

17 under this part. To the maximum extent practicable, the

18 Panel shall conform such system to generally accepted ac19 counting principles, and shall administer this subchapter

20 in accordance with such principles.

21 ‘‘§ 10943. Depreciation charges

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

23 transportation subject to its jurisdiction under this part,

24 prescribe, and change when necessary, those classes of

25 property for which depreciation charges may be included
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1 under operating expenses and a rate of depreciation that

2 may be charged to a class of property. The Panel may

3 classify those rail carriers for purposes of this section. A

4 rail carrier for whom depreciation charges and rates of

5 depreciation are in effect under this section for any class

6 of property may not—

7 ‘‘(1) charge to operating expenses a deprecia8 tion charge on a class of property other than that

9 prescribed by the Panel;

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

11 ‘‘(3) include other depreciation charges in oper12 ating expenses.

13 ‘‘§ 10944. Records: form; inspection; preservation

14 ‘‘(a) The Panel may prescribe the form of records re15 quired to be prepared or compiled under this subchapter—

16 ‘‘(1) by rail carriers, brokers, and lessors, in17 cluding records related to movement of traffic and

18 receipts and expenditures of money; and

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

20 carrier providing transportation subject to the juris21 diction of the Panel under this part to the extent re22 lated to those cars or that service.

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

24 Panel, may on demand and display of proper credentials—
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1 ‘‘(1) inspect and examine the lands, buildings,

2 and equipment of a rail carrier, broker, or lessor;

3 and

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

5 ‘‘(A) a rail carrier, broker, lessor, or asso6 ciation; and

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

8 under common control with a rail carrier if the

9 Panel considers inspection relevant to that per10 son’s relation to, or transaction with, that rail

11 carrier.

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

13 which operating, accounting, and financial records must

14 be preserved by rail carriers, brokers, lessors, and persons

15 furnishing cars.

16 ‘‘§ 10945. Reports by rail carriers, lessors, and asso17 ciations

18 ‘‘(a) The Panel may require rail carriers, brokers, les19 sors, and associations, or classes of them as the Panel may

20 prescribe, to file annual, periodic, and special reports with

21 the Panel containing answers to questions asked by it.

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

23 in as much detail as the Panel may require, of the affairs

24 of the rail carrier, broker, lessor, or association for the

25 12-month period ending on December 31 of each year.
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1 ‘‘(2) An annual report shall be filed with the Panel

2 by the end of the third month after the end of the year

3 for which the report is made unless the Panel extends the

4 filing date or changes the period covered by the report.

5 The annual report and, if the Panel requires, any other

6 report made under this section, shall be made under oath.

7 ‘‘SUBCHAPTER IV—RAILROAD COST

8 ACCOUNTING

9 ‘‘§ 10961. Implementation of cost accounting prin10 ciples

11 ‘‘Not less than once every five years after the promul12 gation of original rules implementing the cost accounting

13 principles established by the Railroad Accounting Prin14 ciples Board, the Panel shall review such principles and

15 shall, by rule, make such changes in such principles as

16 are required to achieve the regulatory purposes of this

17 part. The Panel shall insure that the rules promulgated

18 under this section are the most efficient and least burden19 some means by which the required information may be de20 veloped for regulatory purposes. To the maximum extent

21 practicable, the Panel shall conform such rules to gen22 erally accepted accounting principles.

23 ‘‘§ 10962. Rail carrier cost accounting system

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

25 accounting system that is in compliance with the rules pro-
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1 mulgated by the Panel under section 10961 of this title.

2 A rail carrier may, after notifying the Panel, make modi3 fications in such system unless, within 60 days after the

4 date of notification, the Panel finds such modifications to

5 be inconsistent with the rules promulgated by the Panel

6 under section 10961 of this title.

7 ‘‘(b) For purposes of determining whether the cost

8 accounting system of a rail carrier is in compliance with

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

10 the right to examine and make copies of any documents,

11 papers, or records of such rail carrier relating to compli12 ance with such rules. Such documents, papers, and records

13 (and any copies thereof) shall not be subject to the manda14 tory disclosure requirements of section 552 of title 5.

15 ‘‘§ 10963. Cost availability

16 ‘‘As required by the rules of the Panel governing dis17 covery in Panel proceedings, rail carriers shall make rel18 evant cost data available to shippers, States, ports, com19 munities, and other interested parties that are a party to

20 a Panel proceeding in which such data are required.

21 ‘‘§ 10964. Accounting and cost reporting

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

23 regulatory purposes, the Panel may promulgate reasonable

24 rules for rail carriers providing transportation subject to

25 the jurisdiction of the Panel under this part, prescribing
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1 expense and revenue accounting and reporting require2 ments consistent with generally accepted accounting prin3 ciples uniformly applied to such carriers. Such require4 ments shall be cost effective and compatible with and not

5 duplicative of the managerial and responsibility account6 ing requirements of those carriers. To the extent such

7 rules are required solely to provide expense and revenue

8 information necessary for determining railroad costs in

9 regulatory proceedings under this part, such rules shall

10 be promulgated in accordance with the cost accounting

11 principles established by the Railroad Accounting Prin12 ciples Board.

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

14 the Panel under this section shall include only information

15 considered necessary for disclosure under the cost ac16 counting principles established by the Board or under gen17 erally accepted accounting principles or the requirements

18 of the Securities and Exchange Commission.

19 ‘‘CHAPTER 111—FINANCE

‘‘SUBCHAPTER I—EQUIPMENT TRUSTS AND SECURITY

INTERESTS

‘‘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.
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‘‘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 evidenc7 ing the mortgage, lease, conditional sale, or bailment of

8 railroad cars, locomotives, or other rolling stock, intended

9 for a use related to interstate commerce shall be filed with

10 the Panel. An assignment of a right or interest under one

11 of those instruments and an amendment to that instru12 ment or assignment including a release, discharge, or sat13 isfaction of any part of it shall also be filed with the Panel.

14 The instrument, assignment, or amendment must be in

15 writing, executed by the parties to it, and acknowledged

16 or verified under Panel regulations. When filed under this

17 section, that document is notice to, and enforceable

18 against, all persons. A document filed under this section

19 does not have to be filed, deposited, registered, or recorded

20 under another law of the United States, a State (or its

21 political subdivisions), or territory or possession of the

22 United States, related to filing, deposit, registration, or

23 recordation of those documents.
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1 ‘‘(b) The Panel shall maintain a system for recording

2 each document filed under subsection (a) of this section

3 and mark each of them with a consecutive number and

4 the date and hour of their recordation. The Panel shall

5 maintain and keep open for public inspection an index of

6 documents filed under that subsection. That index shall

7 include the name and address of the principal debtors,

8 trustees, guarantors, and other parties to those documents

9 and may include other facts that will assist in determining

10 the rights of the parties to those transactions.

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

12 perform its functions under this section through contracts

13 with private sector entities.

14 ‘‘(d) The Panel shall assess user fees for services per15 formed by the Panel or a contractor thereof under this

16 section. Such fees may be used by the Panel to offset its

17 costs, to the extent provided in advance in appropriations

18 Acts.

19 ‘‘SUBCHAPTER II—COMBINATIONS

20 ‘‘§ 11121. Scope of authority

21 ‘‘(a) The authority of the Panel under this sub22 chapter is exclusive. A rail carrier or corporation partici23 pating in or resulting from a transaction approved by or

24 exempted by the Panel under this subchapter may carry

25 out the transaction, own and operate property, and exer-
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1 cise control or franchises acquired through the transaction

2 without the approval of a State authority. A rail carrier,

3 corporation, or person participating in that approved or

4 exempted transaction is exempt from the antitrust laws

5 and from all other law, including State and municipal law,

6 as necessary to let that rail carrier, corporation, or person

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

8 property, and exercise control or franchises acquired

9 through the transaction.

10 ‘‘(b) The requirement to obtain the approval or au11 thorization of the Panel under this subchapter shall only

12 apply to transactions involving at least one Class I rail

13 carrier, and shall not apply to transactions described in

14 section 10702.

15 ‘‘§ 11122. Limitation on pooling and division of trans16 portation or earnings

17 ‘‘(a) A rail carrier providing transportation subject

18 to the jurisdiction of the Panel under this part may not

19 agree or combine with another of those rail carriers to pool

20 or divide traffic or services or any part of their earnings

21 without the approval of the Panel under this section or

22 section 10923 of this title. The Panel may approve and

23 authorize the agreement or combination if the rail carriers

24 involved assent to the pooling or division and the Panel
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1 finds that a pooling or division of traffic, services, or earn2 ings—

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

4 the public or of economy of operation; and

5 ‘‘(2) will not unreasonably restrain competition.

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

7 pooling or division and may approve and authorize pay8 ment of a reasonable consideration between the rail car9 riers.

10 ‘‘(c) The Panel may begin a proceeding under this

11 section on its own initiative or on application.

12 ‘‘§ 11123. Consolidation, merger, and acquisition of

13 control

14 ‘‘(a) The following transactions involving rail carriers

15 providing transportation subject to the jurisdiction of the

16 Panel under this part may be carried out only with the

17 approval and authorization of the Panel:

18 ‘‘(1) Consolidation or merger of the properties

19 or franchises of at least 2 rail carriers into one cor20 poration for the ownership, management, and oper21 ation of the previously separately owned properties.

22 ‘‘(2) A purchase, lease, or contract to operate

23 property of another rail carrier by any number of

24 rail carriers.
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1 ‘‘(3) Acquisition of control of a rail carrier by

2 any number of rail carriers.

3 ‘‘(4) Acquisition of control of at least 2 rail car4 riers by a person that is not a rail carrier.

5 ‘‘(5) Acquisition of control of a rail carrier by

6 a person that is not a rail carrier but that controls

7 any number of rail carriers.

8 ‘‘(6) Acquisition by a rail carrier of trackage

9 rights over, or joint ownership in or joint use of, a

10 railroad line (and terminals incidental to it) owned

11 or operated by another rail carrier.

12 ‘‘(b) A person may carry out a transaction referred

13 to in subsection (a) of this section or participate in achiev14 ing the control or management, including the power to ex15 ercise control or management, in a common interest of

16 more than one of those rail carriers, regardless of how that

17 result is reached, only with the approval and authorization

18 of the Panel under this subchapter. In addition to other

19 transactions, each of the following transactions are consid20 ered achievements of control or management:

21 ‘‘(1) A transaction by a rail carrier that has the

22 effect of putting that rail carrier and person affili23 ated with it, taken together, in control of another

24 rail carrier.
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1 ‘‘(2) A transaction by a person affiliated with

2 a rail carrier that has the effect of putting that rail

3 carrier and persons affiliated with it, taken together,

4 in control of another rail carrier.

5 ‘‘(3) A transaction by at least 2 persons acting

6 together (one of whom is a rail carrier or is affili7 ated with a rail carrier) that has the effect of put8 ting those persons and rail carriers and persons af9 filiated with any of them, or with any of those affili10 ated rail carriers, taken together, in control of an11 other rail carrier.

12 ‘‘(c) A person is affiliated with a rail carrier under

13 this subchapter if, because of the relationship between

14 that person and a rail carrier, it is reasonable to believe

15 that the affairs of another rail carrier, control of which

16 may be acquired by that person, will be managed in the

17 interest of the other rail carrier.

18 ‘‘§ 11124. Consolidation, merger, and acquisition of

19 control: conditions of approval

20 ‘‘(a) The Panel may begin a proceeding to approve

21 and authorize a transaction referred to in section 11123

22 of this title on application of the person seeking that au23 thority. When an application is filed with the Panel, the

24 Panel shall notify the chief executive officer of each State

25 in which property of the rail carriers involved in the pro-
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1 posed transaction is located and shall notify those rail car2 riers. The Panel shall hold a public hearing unless the

3 Panel determines that a public hearing is not necessary

4 in the public interest.

5 ‘‘(b) In a proceeding under this section which involves

6 the merger or control of at least two Class I railroads,

7 as defined by the Panel, the Panel shall consider at least—

8 ‘‘(1) the effect of the proposed transaction on

9 the adequacy of transportation to the public;

10 ‘‘(2) the effect on the public interest of includ11 ing, or failing to include, other rail carriers in the

12 area involved in the proposed transaction;

13 ‘‘(3) the total fixed charges that result from the

14 proposed transaction;

15 ‘‘(4) the interest of rail carrier employees af16 fected by the proposed transaction; and

17 ‘‘(5) whether the proposed transaction would

18 have an adverse effect on competition among rail

19 carriers in the affected region or in the national rail

20 system.

21 ‘‘(c) The Panel shall approve and authorize a trans22 action under this section when it finds the transaction is

23 consistent with the public interest. The Panel may impose

24 conditions governing the transaction, including the divesti25 ture of parallel tracks or requiring the granting of track-
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1 age rights. Any trackage rights conditions imposed to alle2 viate anticompetitive effects of the transaction shall pro3 vide for compensation levels to ensure that such effects

4 are alleviated. When the transaction contemplates a guar5 anty or assumption of payment of dividends or of fixed

6 charges or will result in an increase of total fixed charges,

7 the Panel may approve and authorize the transaction only

8 if it finds that the guaranty, assumption, or increase is

9 consistent with the public interest. The Panel may require

10 inclusion of other rail carriers located in the area involved

11 in the transaction if they apply for inclusion and the Panel

12 finds their inclusion to be consistent with the public inter13 est.

14 ‘‘(d) In a proceeding under this section which does

15 not involve the merger or control of at least two Class I

16 railroads, as defined by the Panel, the Panel shall approve

17 such an application unless it finds that—

18 ‘‘(1) as a result of the transaction, there is like19 ly to be substantial lessening of competition, cre20 ation of a monopoly, or restraint of trade in freight

21 surface transportation in any region of the United

22 States; and

23 ‘‘(2) the anticompetitive effects of the trans24 action outweigh the public interest in meeting sig25 nificant transportation needs.
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1 In making such findings, the Panel shall, with respect to

2 any application that is part of a plan or proposal developed

3 under section 333(a)–(d) of this title, accord substantial

4 weight to any recommendations of the Secretary of Trans5 portation.

6 ‘‘(e)(1) To the extent provided in this subsection, a

7 proceeding under this subchapter relating to a transaction

8 involving at least one Class I rail carrier shall not be con9 sidered an adjudication required by statute to be deter10 mined on the record after opportunity for an agency hear11 ing, for the purposes of subchapter II of chapter 5 of title

12 5, United States Code.

13 ‘‘(2) Ex parte communications, as defined in section

14 551(14) of title 5, United States Code, shall be permitted

15 in proceedings described in paragraph (1) of this sub16 section, subject to the requirements of paragraph (3) of

17 this subsection.

18 ‘‘(3)(A) Any member or employee of the Panel who

19 makes or receives a written ex parte communication con20 cerning the merits of a proceeding described in paragraph

21 (1) shall promptly place the communication in the public

22 docket of the proceeding.

23 ‘‘(B) Any member or employee of the Panel who

24 makes or receives an oral ex parte communication con25 cerning the merits of a proceeding described in paragraph
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1 (1) shall promptly place a written summary of the oral

2 communication in the public docket of the proceeding.

3 ‘‘(4) Nothing in this subsection shall be construed to

4 require the Panel or any of its members or employees to

5 engage in any ex parte communication with any person.

6 Nothing in this subsection or any other law shall be con7 strued to limit the authority of the members or employees

8 of the Panel, in their discretion, to note in the docket or

9 otherwise publicly the occurrence and substance of an ex

10 parte communication.

11 ‘‘§ 11125. Consolidation, merger, and acquisition of

12 control: procedure

13 ‘‘(a) The Panel shall publish notice of the application

14 under section 11124 in the Federal Register by the end

15 of the 30th day after the application is filed with the

16 Panel. However, if the application is incomplete, the Panel

17 shall reject it by the end of that period. The order of rejec18 tion is a final action of the Panel. The published notice

19 shall indicate whether the application involves—

20 ‘‘(1) the merger or control of at least two Class

21 I railroads, as defined by the Panel, to be decided

22 within the time limits specified in subsection (b) of

23 this section;
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1 ‘‘(2) transactions of regional or national trans2 portation significance, to be decided within the time

3 limits specified in subsection (c) of this section; or

4 ‘‘(3) any other transaction covered by this sec5 tion, to be decided within the time limits specified in

6 subsection (d) of this section.

7 ‘‘(b) If the application involves the merger or control

8 of two or more Class I railroads, as defined by the Panel,

9 the following conditions apply:

10 ‘‘(1) Written comments about an application

11 may be filed with the Panel within 45 days after no12 tice of the application is published under subsection

13 (a) of this section. Copies of such comments shall be

14 served on the Attorney General, who may decide to

15 intervene as a party to the proceeding. That decision

16 must be made by the 15th day after the date of re17 ceipt of the written comments, and if the decision is

18 to intervene, preliminary comments about the appli19 cation must be sent to the Panel by the end of the

20 15th day after the date of receipt of the written

21 comments.

22 ‘‘(2) The Panel shall require that applications

23 inconsistent with an application, notice of which was

24 published under subsection (a) of this section, and

25 applications for inclusion in the transaction, be filed
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1 with it by the 90th day after publication of notice

2 under that subsection.

3 ‘‘(3) The Panel must conclude evidentiary pro4 ceedings by the end of the 6th month after the date

5 of publication of notice under subsection (a) of this

6 section. The Panel must issue a final decision by the

7 90th day after the date on which it concludes the

8 evidentiary proceedings.

9 ‘‘(c) If the application involves a transaction other

10 than the merger or control of at least two Class I rail11 roads, as defined by the Panel, which the Panel has deter12 mined to be of regional or national transportation signifi13 cance, the following conditions apply:

14 ‘‘(1) Written comments about an application,

15 including comments of the Attorney General, may be

16 filed with the Panel within 30 days after notice of

17 the application is published under subsection (a) of

18 this section.

19 ‘‘(2) The Panel shall require that applications

20 inconsistent with an application, notice of which was

21 published under subsection (a) of this section, and

22 applications for inclusion in the transaction, be filed

23 with it by the 60th day after publication of notice

24 under that subsection.
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1 ‘‘(3) The Panel must conclude any evidentiary

2 proceedings by the 125th day after the date of publi3 cation of notice under subsection (a) of this section.

4 The Panel must issue a final decision by the 40th

5 day after the date on which it concludes the evi6 dentiary proceedings.

7 ‘‘(d) For all applications under this section other

8 than those specified in subsections (b) and (c) of this sec9 tion, the following conditions apply:

10 ‘‘(1) Written comments about an application,

11 including comments of the Attorney General, may be

12 filed with the Panel within 30 days after notice of

13 the application is published under subsection (a) of

14 this section.

15 ‘‘(2) The Panel must conclude any evidentiary

16 proceedings by the 105th 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

19 day after the date on which it concludes the evi20 dentiary proceedings.

21 ‘‘§ 11126. Employee protective arrangements in trans22 actions involving rail carriers

23 ‘‘When approval is sought for a transaction under

24 sections 11124 and 11125 of this title, the Panel shall

25 require the rail carrier to provide a fair arrangement at
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1 least as protective of the interests of employees who are

2 affected by the transaction as the terms imposed under

3 this section before February 5, 1976, and the terms estab4 lished under section 24706(c) of this title. Notwithstand5 ing this part, the arrangement may be made by the rail

6 carrier and the authorized representative of its employees.

7 The arrangement and the order approving the transaction

8 must require that the employees of the affected rail carrier

9 will not be in a worse position related to their employment

10 as a result of the transaction during the 4 years following

11 the effective date of the final action of the Panel (or if

12 an employee was employed for a lesser period of time by

13 the rail carrier before the action became effective, for that

14 lesser period).

15 ‘‘§ 11127. Supplemental orders

16 ‘‘When cause exists, the Panel may make appropriate

17 orders supplemental to an order made in a proceeding

18 under sections 11122 through 11126 of this title.

19 ‘‘CHAPTER 113—FEDERAL-STATE

20 RELATIONS

‘‘Sec.

‘‘11301. Tax discrimination against rail transportation property.

‘‘11302. Withholding State and local income tax by rail carriers.

21 ‘‘§ 11301. Tax discrimination against rail transpor22 tation property

23 ‘‘(a) In this section—
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1 ‘‘(1) the term ‘assessment’ means valuation for

2 a property tax levied by a taxing district;

3 ‘‘(2) the term ‘assessment jurisdiction’ means a

4 geographical area in a State used in determining the

5 assessed value of property for ad valorem taxation;

6 ‘‘(3) the term ‘rail transportation property’

7 means property, as defined by the Panel, owned or

8 used by a rail carrier providing transportation sub9 ject to the jurisdiction of the Panel under this part;

10 and

11 ‘‘(4) the term ‘commercial and industrial prop12 erty’ means property, other than transportation

13 property and land used primarily for agricultural

14 purposes or timber growing, devoted to a commercial

15 or industrial use and subject to a property tax levy.

16 ‘‘(b) The following acts unreasonably burden and dis17 criminate against interstate commerce, and a State, sub18 division of a State, or authority acting for a State or sub19 division of a State may not do any of them:

20 ‘‘(1) Assess rail transportation property at a

21 value that has a higher ratio to the true market

22 value of the rail transportation property than the

23 ratio that the assessed value of other commercial

24 and industrial property in the same assessment ju-
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1 risdiction has to the true market value of the other

2 commercial and industrial property.

3 ‘‘(2) Levy or collect a tax on an assessment

4 that may not be made under paragraph (1) of this

5 subsection.

6 ‘‘(3) Levy or collect an ad valorem property tax

7 on rail transportation property at a tax rate that ex8 ceeds the tax rate applicable to commercial and in9 dustrial property in the same assessment jurisdic10 tion.

11 ‘‘(4) Impose another tax that discriminates

12 against a rail carrier providing transportation sub13 ject to the jurisdiction of the Panel under this part.

14 ‘‘(c) Notwithstanding section 1341 of title 28 and

15 without regard to the amount in controversy or citizenship

16 of the parties, a district court of the United States has

17 jurisdiction, concurrent with other jurisdiction of courts

18 of the United States and the States, to prevent a violation

19 of subsection (b) of this section. Relief may be granted

20 under this subsection only if the ratio of assessed value

21 to true market value of rail transportation property ex22 ceeds by at least 5 percent the ratio of assessed value to

23 true market value of other commercial and industrial

24 property in the same assessment jurisdiction. The burden

25 of proof in determining assessed value and true market
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1 value is governed by State law. If the ratio of the assessed

2 value of other commercial and industrial property in the

3 assessment jurisdiction to the true market value of all

4 other commercial and industrial property cannot be deter5 mined to the satisfaction of the district court through the

6 random-sampling method known as a sales assessment

7 ratio study (to be carried out under statistical principles

8 applicable to such a study), the court shall find, as a viola9 tion of this section—

10 ‘‘(1) an assessment of the rail transportation

11 property at a value that has a higher ratio to the

12 true market value of the rail transportation property

13 than the assessed value of all other property subject

14 to a property tax levy in the assessment jurisdiction

15 has to the true market value of all other commercial

16 and industrial property; and

17 ‘‘(2) the collection of an ad valorem property

18 tax on the rail transportation property at a tax rate

19 that exceeds the tax ratio rate applicable to taxable

20 property in the taxing district.

21 ‘‘§ 11302. Withholding State and local income tax by

22 rail carriers

23 ‘‘(a) No part of the compensation paid by a rail car24 rier providing transportation subject to the jurisdiction of

25 the Panel under this part to an employee who performs
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1 regularly assigned duties as such an employee on a rail2 road in more than one State shall be subject to the income

3 tax laws of any State or subdivision of that State, other

4 than the State or subdivision thereof of the employee’s res5 idence.

6 ‘‘(b) A rail carrier withholding pay from an employee

7 under subsection (a) of this section shall file income tax

8 information returns and other reports only with the State

9 and subdivision of residence of the employee.

10 ‘‘CHAPTER 115—ENFORCEMENT: INVES11 TIGATIONS, 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.

12 ‘‘§ 11501. General authority

13 ‘‘(a) The Panel may begin an investigation under this

14 part on its own initiative or on complaint. If the Panel

15 finds that a rail carrier is violating this part, the Panel

16 shall take appropriate action to compel compliance with

17 this part.

18 ‘‘(b) A person, including a governmental authority,

19 may file with the Panel a complaint about a violation of

20 this part by a rail carrier providing transportation or serv21 ice subject to the jurisdiction of the Panel under this part.

22 The complaint must state the facts that are the subject
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1 of the violation. The Panel may dismiss a complaint it de2 termines does not state reasonable grounds for investiga3 tion and action. However, the Panel may not dismiss a

4 complaint made against a rail carrier providing transpor5 tation subject to the jurisdiction of the Panel under this

6 part because of the absence of direct damage to the com7 plainant.

8 ‘‘(c) A formal investigative proceeding begun by the

9 Panel under subsection (a) of this section is dismissed

10 automatically unless it is concluded by the Panel with ad11 ministrative finality by the end of the third year after the

12 date on which it was begun.

13 ‘‘§ 11502. Enforcement by the Panel

14 ‘‘The Panel may bring a civil action—

15 ‘‘(1) to enjoin a rail carrier from violating sec16 tions 10701 through 10706 of this title, or a regula17 tion prescribed or order or certificate issued under

18 any of those sections;

19 ‘‘(2) to enforce subchapter II of chapter 111 of

20 this title and to compel compliance with the order of

21 the Panel under that subchapter; and

22 ‘‘(3) to enforce an order of the Panel, except a

23 civil action to enforce an order for the payment of

24 money, when it is violated by a rail carrier providing
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1 transportation subject to the jurisdiction of the

2 Panel under this part.

3 ‘‘§ 11503. Enforcement by the Attorney General

4 ‘‘The Attorney General may, and on request of the

5 Panel shall, bring court proceedings to enforce this part,

6 or a regulation or order of the Panel or certificate or per7 mit issued under this part, and to prosecute a person vio8 lating this part or a regulation or order of the Panel or

9 certificate or permit issued under this part.

10 ‘‘§ 11504. Rights and remedies of persons injured by

11 rail carriers

12 ‘‘(a) A person injured because a rail carrier providing

13 transportation or service subject to the jurisdiction of the

14 Panel under this part does not obey an order of the Panel,

15 except an order for the payment of money, may bring a

16 civil action to enforce that order under this subsection.

17 ‘‘(b) A rail carrier providing transportation subject

18 to the jurisdiction of the Panel under this part is liable

19 for damages sustained by a person as a result of an act

20 or omission of that carrier in violation of this part.

21 ‘‘(c)(1) A person may file a complaint with the Panel

22 under section 11501(b) of this title or bring a civil action

23 under subsection (b) of this section to enforce liability

24 against a rail carrier providing transportation subject to

25 the jurisdiction of the Panel under this part.
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1 ‘‘(2) When the Panel makes an award under sub2 section (b) of this section, the Panel shall order the rail

3 carrier to pay the amount awarded by a specific date. The

4 Panel may order a rail carrier providing transportation

5 subject to the jurisdiction of the Panel under this part

6 to pay damages only when the proceeding is on complaint.

7 The person for whose benefit an order of the Panel requir8 ing the payment of money is made may bring a civil action

9 to enforce that order under this paragraph if the rail car10 rier does not pay the amount awarded by the date pay11 ment was ordered to be made.

12 ‘‘(d)(1) When a person begins a civil action under

13 subsection (b) this section to enforce an order of the Panel

14 requiring the payment of damages by a rail carrier provid15 ing transportation subject to the jurisdiction of the Panel

16 under this part, the text of the order of the Panel must

17 be included in the complaint. In addition to the district

18 courts of the United States, a State court of general juris19 diction having jurisdiction of the parties has jurisdiction

20 to enforce an order under this paragraph. The findings

21 and order of the Panel are competent evidence of the facts

22 stated in them. Trial in a civil action brought in a district

23 court of the United States under this paragraph is in the

24 judicial district—

25 ‘‘(A) in which the plaintiff resides;
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1 ‘‘(B) in which the principal operating office of

2 the rail carrier is located; or

3 ‘‘(C) if a rail carrier, through which the rail4 road line of that carrier runs.

5 In a civil action under this paragraph, the plaintiff is liable

6 for only those costs that accrue on an appeal taken by

7 the plaintiff.

8 ‘‘(2) All parties in whose favor the award was made

9 may be joined as plaintiffs in a civil action brought in a

10 district court of the United States under this subsection

11 and all the rail carriers that are parties to the order

12 awarding damages may be joined as defendants. Trial in

13 the action is in the judicial district in which any one of

14 the plaintiffs could bring the action against any one of

15 the defendants. Process may be served on a defendant at

16 its principal operating office when that defendant is not

17 in the district in which the action is brought. A judgment

18 ordering recovery may be made in favor of any of those

19 plaintiffs against the defendant found to be liable to that

20 plaintiff.

21 ‘‘(3) The district court shall award a reasonable at22 torney’s fee as a part of the damages for which a rail car23 rier is found liable under this subsection. The district

24 court shall tax and collect that fee as a part of the costs

25 of the action.
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1 ‘‘§ 11505. Limitation on actions by and against rail

2 carriers

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

4 subject to the jurisdiction of the Panel under this part

5 must begin a civil action to recover charges for transpor6 tation or service provided by the carrier within 3 years

7 after the claim accrues.

8 ‘‘(b) A person must file a complaint with the Panel

9 to recover damages under section 11504(b) of this title

10 within 2 years after the claim accrues.

11 ‘‘(c) The limitation period under subsection (b) of

12 this section is extended for 6 months from the time written

13 notice is given to the claimant by the rail carrier of dis14 allowance of any part of the claim specified in the notice

15 if a written claim is given to the rail carrier within that

16 limitation period. The limitation period under subsection

17 (b) of this section is extended for 90 days from the time

18 the rail carrier begins a civil action under subsection (a)

19 of this section to recover charges related to the same

20 transportation or service, or collects (without beginning a

21 civil action under that subsection) the charge for that

22 transportation or service if that action is begun or collec23 tion is made within the appropriate period.

24 ‘‘(d) A person must begin a civil action to enforce

25 an order of the Panel against a rail carrier for the pay-
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1 ment of money within one year after the date the order

2 required the money to be paid.

3 ‘‘(e) This section applies to transportation for the

4 United States Government. The time limitations under

5 this section are extended, as related to transportation for

6 or on behalf of the United States Government, for 3 years

7 from the date of—

8 ‘‘(1) payment of the rate for the transportation

9 or service involved;

10 ‘‘(2) subsequent refund for overpayment of that

11 rate; or

12 ‘‘(3) deduction made under section 3726 of title

13 31, whichever is later.

14 ‘‘(f) A claim related to a shipment of property accrues

15 under this section on delivery or tender of delivery by the

16 rail carrier.

17 ‘‘§ 11506. Liability of rail carriers under receipts and

18 bills of lading

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

20 subject to the jurisdiction of the Panel under this part

21 shall issue a receipt or bill of lading for property it receives

22 for transportation under this part. That rail carrier and

23 any other rail carrier that delivers the property and is pro24 viding transportation or service subject to the jurisdiction

25 of the Panel under this part are liable to the person enti-
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1 tled to recover under the receipt or bill of lading. The li2 ability imposed under this subsection is for the actual loss

3 or injury to the property caused by—

4 ‘‘(1) the receiving rail carrier;

5 ‘‘(2) the delivering rail carrier; or

6 ‘‘(3) another rail carrier over whose line or

7 route the property is transported in the United

8 States or from a place in the United States to a

9 place in an adjacent foreign country when trans10 ported under a through bill of lading.

11 Failure to issue a receipt or bill of lading does not affect

12 the liability of a rail carrier. A delivering rail carrier is

13 deemed to be the rail carrier performing the line-haul

14 transportation nearest the destination but does not include

15 a rail carrier providing only a switching service at the des16 tination.

17 ‘‘(b) The rail carrier issuing the receipt or bill of lad18 ing under subsection (a) of this section or delivering the

19 property for which the receipt or bill of lading was issued

20 is entitled to recover from the rail carrier over whose line

21 or route the loss or injury occurred the amount required

22 to be paid to the owners of the property, as evidenced by

23 a receipt, judgment, or transcript, and the amount of its

24 expenses reasonably incurred in defending a civil action

25 brought by that person.
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1 ‘‘(c)(1) A rail carrier may not limit or be exempt from

2 liability imposed under subsection (a) of this section ex3 cept as provided in this subsection. A limitation of liability

4 or of the amount of recovery or representation or agree5 ment in a receipt, bill of lading, contract, or rule in viola6 tion of this section is void.

7 ‘‘(2) A rail carrier of passengers may limit its liability

8 under its passenger rate for loss or injury of baggage car9 ried on trains carrying passengers.

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

11 subject to the jurisdiction of the Panel under this part

12 may establish rates for transportation of property under

13 which—

14 ‘‘(A) the liability of the rail carrier for such

15 property is limited to a value established by written

16 declaration of the shipper or by a written agreement

17 between the shipper and the carrier; or

18 ‘‘(B) specified amounts are deducted, pursuant

19 to a written agreement between the shipper and the

20 carrier, from any claim against the carrier with re21 spect to the transportation of such property.

22 ‘‘(d)(1) A civil action under this section may be

23 brought in a district court of the United States or in a

24 State court.
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1 ‘‘(2)(A) A civil action under this section may only be

2 brought—

3 ‘‘(i) against the originating rail carrier, in the

4 judicial district in which the point of origin is lo5 cated;

6 ‘‘(ii) against the delivering rail carrier, in the

7 judicial district in which the principal place of busi8 ness of the person bringing the action is located if

9 the delivering carrier operates a railroad or a route

10 through such judicial district, or in the judicial dis11 trict in which the point of destination is located; and

12 ‘‘(iii) against the carrier alleged to have caused

13 the loss or damage, in the judicial district in which

14 such loss or damage is alleged to have occurred.

15 ‘‘(B) In this section, ‘judicial district’ means (i) in

16 the case of a United States district court, a judicial dis17 trict of the United States, and (ii) in the case of a State

18 court, the applicable geographic area over which such

19 court exercises jurisdiction.

20 ‘‘(e) A carrier may not provide by rule, contract, or

21 otherwise, a period of less than 9 months for filing a claim

22 against it under this section and a period of less than 2

23 years for bringing a civil action against it under this sec24 tion. The period for bringing a civil action is computed

25 from the date the carrier gives a person written notice that
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1 the carrier has disallowed any part of the claim specified

2 in the notice. For the purposes of this subsection—

3 ‘‘(1) an offer of compromise shall not constitute

4 a disallowance of any part of the claim unless the

5 carrier, in writing, informs the claimant that such

6 part of the claim is disallowed and provides reasons

7 for such disallowance; and

8 ‘‘(2) communications received from a carrier’s

9 insurer shall not constitute a disallowance of any

10 part of the claim unless the insurer, in writing, in11 forms the claimant that such part of the claim is

12 disallowed, provides reasons for such disallowance,

13 and informs the claimant that the insurer is acting

14 on behalf of the carrier.

15 ‘‘CHAPTER 117—CIVIL AND CRIMINAL

16 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.

17 ‘‘§ 11701. General civil penalties

18 ‘‘(a) Except as otherwise provided in this section, a

19 rail carrier providing transportation subject to the juris20 diction of the Panel under this part, an officer or agent

21 of that rail carrier, or a receiver, trustee, lessee, or agent
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1 of one of them, knowingly violating an order of the Panel

2 under this part is liable to the United States Government

3 for a civil penalty of $5,000 for each violation. Liability

4 under this subsection is incurred for each distinct viola5 tion. A separate violation occurs for each day the violation

6 continues.

7 ‘‘(b) A rail carrier providing transportation subject

8 to the jurisdiction of the Panel under this part, or a re9 ceiver or trustee of that rail carrier, violating a regulation

10 or order of the Panel under section 10924(a)(2) or (b)

11 of this title is liable to the United States Government for

12 a civil penalty of $500 for each violation and for $25 for

13 each day the violation continues.

14 ‘‘(c) A person knowingly authorizing, consenting to,

15 or permitting a violation of sections 10701 through 10706

16 of this title or of a requirement or a regulation under any

17 of those sections, is liable to the United States Govern18 ment for a civil penalty of not more than $5,000.

19 ‘‘(d) A rail carrier, receiver, or operating trustee vio20 lating an order or direction of the Panel under section

21 10923 or 10924(a)(1) of this title is liable to the United

22 States Government for a civil penalty of at least $100 but

23 not more than $500 for each violation and for $50 for

24 each day the violation continues.
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1 ‘‘(e)(1) A person required under subchapter III of

2 chapter 109 of this title to make, prepare, preserve, or

3 submit to the Panel a record concerning transportation

4 subject to the jurisdiction of the Panel under this part

5 that does not make, prepare, preserve, or submit that

6 record as required under that subchapter, is liable to the

7 United States Government for a civil penalty of $500 for

8 each violation.

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

10 to the jurisdiction of the Panel under this part, and a les11 sor, receiver, or trustee of that rail carrier, violating sec12 tion 10944(b)(1) of this title, is liable to the United States

13 Government for a civil penalty of $100 for each violation.

14 ‘‘(3) A rail carrier providing transportation subject

15 to the jurisdiction of the Panel under this part, a lessor,

16 receiver, or trustee of that rail carrier, a person furnishing

17 cars or protective services against heat or cold, and an

18 officer, agent, or employee of one of them, required to

19 make a report to the Panel or answer a question that does

20 not make the report or does not specifically, completely,

21 and truthfully answer the question, is liable to the United

22 States Government for a civil penalty of $100 for each

23 violation.

24 ‘‘(4) A separate violation occurs for each day viola25 tion under this subsection continues.
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1 ‘‘(f) Trial in a civil action under subsections (a)

2 through (e) of this section is in the judicial district in

3 which the rail carrier has its principal operating office or

4 in a district through which the railroad of the rail carrier

5 runs.

6 ‘‘§ 11702. Interference with railroad car supply

7 ‘‘(a) A person that offers or gives anything of value

8 to another person acting for or employed by a rail carrier

9 providing transportation subject to the jurisdiction of the

10 Panel under this part intending to influence an action of

11 that other person related to supply, distribution, or move12 ment of cars, vehicles, or vessels used in the transpor13 tation of property, or because of the action of that other

14 person shall be fined not more than $1,000, imprisoned

15 for not more than 2 years, or both.

16 ‘‘(b) A person acting for or employed by a rail carrier

17 providing transportation subject to the jurisdiction of the

18 Panel under this part that solicits, accepts, or receives

19 anything of value—

20 ‘‘(1) intending to be influenced by it in an ac21 tion of that person related to supply, distribution, or

22 movement of cars, vehicles, or vessels used in the

23 transportation of property; or

24 ‘‘(2) because of the action of that person,
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1 shall be fined not more than $1,000, imprisoned for not

2 more than 2 years, or both.

3 ‘‘§ 11703. Record keeping and reporting violations

4 ‘‘A person required to make a report to the Panel,

5 or make, prepare, or preserve a record, under subchapter

6 III of chapter 109 of this title about transportation sub7 ject to the jurisdiction of the Panel under this part that

8 knowingly and willfully—

9 ‘‘(1) makes a false entry in the report or

10 record;

11 ‘‘(2) destroys, mutilates, changes, or by another

12 means falsifies the record;

13 ‘‘(3) does not enter business related facts and

14 transactions in the record;

15 ‘‘(4) makes, prepares, or preserves the record in

16 violation of a regulation or order of the Panel; or

17 ‘‘(5) files a false report or record with the

18 Panel,

19 shall be fined not more than $5,000, imprisoned for not

20 more than 2 years, or both.

21 ‘‘§ 11704. Unlawful disclosure of information

22 ‘‘(a) A—

23 ‘‘(1) rail carrier providing transportation sub24 ject to the jurisdiction of the Panel under this part,

25 or an officer, agent, or employee of that rail carrier,
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1 or another person authorized to receive information

2 from that rail carrier, that knowingly discloses to

3 another person, except the shipper or consignee; or

4 ‘‘(2) a person who solicits or knowingly re5 ceives,

6 information described in subsection (b) without the con7 sent of the shipper or consignee shall be fined not more

8 than $1,000.

9 ‘‘(b) The information referred to in subsection (a) is

10 information about the nature, kind, quantity, destination,

11 consignee, or routing of property tendered or delivered to

12 that rail carrier for transportation provided under this

13 part, or information about the contents of a contract au14 thorized under section 10509 of this title, that may be

15 used to the detriment of the shipper or consignee or may

16 disclose improperly, to a competitor, the business trans17 actions of the shipper or consignee.

18 ‘‘(c) This part does not prevent a rail carrier or

19 broker providing transportation subject to the jurisdiction

20 of the Panel under this part from giving information—

21 ‘‘(1) in response to legal process issued under

22 authority of a court of the United States or a State;

23 ‘‘(2) to an officer, employee, or agent of the

24 United States Government, a State, or a territory or

25 possession of the United States; or
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1 ‘‘(3) to another rail carrier or its agent to ad2 just mutual traffic accounts in the ordinary course

3 of business.

4 ‘‘(d) An employee of the Panel delegated to make an

5 inspection or examination under section 10944 of this title

6 who knowingly discloses information acquired during that

7 inspection or examination, except as directed by the Panel,

8 a court, or a judge of that court, shall be fined not more

9 than $500, imprisoned for not more than 6 months, or

10 both.

11 ‘‘(e) A person that knowingly discloses confidential

12 data made available to such person under section 10963

13 of this title by a rail carrier providing transportation sub14 ject to the jurisdiction of the Panel under this part shall

15 be fined not more than $50,000.

16 ‘‘§ 11705. Disobedience to subpoenas

17 ‘‘A person not obeying a subpoena or requirement of

18 the Panel to appear and testify or produce records shall

19 be fined at least $100 but not more than $5,000, impris20 oned for not more than one year, or both.

21 ‘‘§ 11706. General criminal penalty when specific

22 penalty not provided

23 ‘‘When another criminal penalty is not provided

24 under this chapter, a rail carrier providing transportation

25 subject to the jurisdiction of the Panel under this part,
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1 and when that rail carrier is a corporation, a director or

2 officer of the corporation, or a receiver, trustee, lessee, or

3 person acting for or employed by the corporation that,

4 alone or with another person, willfully violates this part

5 or an order prescribed under this part, shall be fined not

6 more than $5,000. However, if the violation is for dis7 crimination in rates charged for transportation, the person

8 may be imprisoned for not more than 2 years in addition

9 to being fined under this section. A separate violation oc10 curs each day a violation of section 11122 of this title con11 tinues.

12 ‘‘§ 11707. Punishment of corporation for violations

13 committed by certain individuals

14 ‘‘An act or omission that would be a violation of this

15 part if committed by a director, officer, receiver, trustee,

16 lessee, agent, or employee of a rail carrier providing trans17 portation or service subject to the jurisdiction of the Panel

18 under this part that is a corporation is also a violation

19 of this part by that corporation. The penalties of this

20 chapter apply to that violation. When acting in the scope

21 of their employment, the actions and omissions of individ22 uals acting for or employed by that rail carrier are consid23 ered to be the actions and omissions of that rail carrier

24 as well as that individual.’’.
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1 (b) CONFORMING AMENDMENT.—The item relating

2 to subtitle IV in the table of subtitles of title 49, United

3 States Code, is amended by striking ‘‘Commerce’’ and

4 inserting in lieu thereof ‘‘Transportation’’.

5 SEC. 103. MOTOR CARRIER, WATER CARRIER, AND FREIGHT

6 FORWARDER PROVISIONS.

7 Subtitle IV of title 49, United States Code, is further

8 amended by adding at the end the following:

9 ‘‘PART B—MOTOR CARRIERS, WATER CARRIERS,

10 BROKERS, AND FREIGHT FORWARDERS

11 ‘‘CHAPTER 131—GENERAL PROVISIONS

‘‘Sec.

‘‘13101. Transportation policy.

‘‘13102. Definitions.

‘‘13103. Remedies as cumulative.

12 ‘‘§ 13101. Transportation policy

13 ‘‘(a) IN GENERAL.—To ensure the development, co14 ordination, and preservation of a transportation system

15 that meets the transportation needs of the United States,

16 including the United States Postal Service and national

17 defense, it is the policy of the United States Government

18 to oversee the modes of transportation and—

19 ‘‘(1) in overseeing those modes—

20 ‘‘(A) to recognize and preserve the inher21 ent advantage of each mode of transportation;

22 ‘‘(B) to promote safe, adequate, economi23 cal, and efficient transportation;
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1 ‘‘(C) to encourage sound economic condi2 tions in transportation, including sound eco3 nomic conditions among carriers;

4 ‘‘(D) to encourage the establishment and

5 maintenance of reasonable rates for transpor6 tation, without unreasonable discrimination or

7 unfair or destructive competitive practices;

8 ‘‘(E) to cooperate with each State and the

9 officials of each State on transportation mat10 ters; and

11 ‘‘(F) to encourage fair wages and working

12 conditions in the transportation industry;

13 ‘‘(2) in overseeing transportation by motor car14 rier, to promote competitive and efficient transpor15 tation services in order to—

16 ‘‘(A) encourage fair competition, and rea17 sonable rates for transportation by motor car18 riers of property;

19 ‘‘(B) promote efficiency in the motor car20 rier transportation system and to require fair

21 and expeditious decisions when required;

22 ‘‘(C) meet the needs of shippers, receivers,

23 passengers, and consumers;

24 ‘‘(D) allow a variety of quality and price

25 options to meet changing market demands and
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1 the diverse requirements of the shipping and

2 traveling public;

3 ‘‘(E) allow the most productive use of

4 equipment and energy resources;

5 ‘‘(F) enable efficient and well-managed

6 carriers to earn adequate profits, attract cap7 ital, and maintain fair wages and working con8 ditions;

9 ‘‘(G) provide and maintain service to small

10 communities and small shippers and intrastate

11 bus services;

12 ‘‘(H) provide and maintain commuter bus

13 operations;

14 ‘‘(I) improve and maintain a sound, safe,

15 and competitive privately owned motor carrier

16 system;

17 ‘‘(J) promote greater participation by mi18 norities in the motor carrier system; and

19 ‘‘(K) promote intermodal transportation;

20 and

21 ‘‘(3) in overseeing transportation by motor car22 rier of passengers—

23 ‘‘(A) to cooperate with the States on trans24 portation matters for the purpose of encourag25 ing the States to exercise intrastate regulatory
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1 jurisdiction in accordance with the objectives of

2 this part;

3 ‘‘(B) to provide Federal procedures which

4 ensure that intrastate regulation is exercised in

5 accordance with this part; and

6 ‘‘(C) to ensure that Federal reform initia7 tives enacted by section 31138 and the Bus

8 Regulatory Reform Act of 1982 are not nul9 lified by State regulatory actions.

10 ‘‘(b) ADMINISTRATION TO CARRY OUT POLICY.—

11 This part shall be administered and enforced to carry out

12 the policy of this section.

13 ‘‘§ 13102. Definitions

14 ‘‘In this part, the following definitions shall apply:

15 ‘‘(1) BROKER.—The term ‘broker’ means a per16 son, other than a motor carrier or an employee or

17 agent of a motor carrier, that as a principal or agent

18 sells, offers for sale, negotiates for, or holds itself

19 out by solicitation, advertisement, or otherwise as

20 selling, providing, or arranging for, transportation

21 by motor carrier for compensation.

22 ‘‘(2) CARRIER.—The term ‘carrier’ means a

23 motor carrier, a water carrier, and a freight for24 warder, and, for purposes of sections 13902, 13905,
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1 and 13906, the term includes foreign motor carriers

2 and foreign motor private carriers.

3 ‘‘(3) CONTRACT CARRIAGE.—The term ‘contract

4 carriage’ means—

5 ‘‘(A) for transportation provided before the

6 effective date of this section, service provided

7 pursuant to a permit issued under section

8 10923, as in effect on the day before the effec9 tive date of this section; and

10 ‘‘(B) for transportation provided on or

11 after such date, service provided under an

12 agreement entered into under section 14101(b).

13 ‘‘(4) CONTROL.—The term ‘control’, when re14 ferring to a relationship between persons, includes

15 actual control, legal control, and the power to exer16 cise control, through or by—

17 ‘‘(A) common directors, officers, stockhold18 ers, a voting trust, or a holding or investment

19 company, or

20 ‘‘(B) any other means.

21 ‘‘(5) FOREIGN MOTOR CARRIER.—The term

22 ‘foreign motor carrier’ means a person (including a

23 motor carrier of property but excluding a motor pri24 vate carrier)—
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1 ‘‘(A)(i) that is domiciled in a contiguous

2 foreign country; or

3 ‘‘(ii) that is owned or controlled by persons

4 of a contiguous foreign country; and

5 ‘‘(B) in the case of a person that is not a

6 motor carrier of property, that provides inter7 state transportation of property by motor vehi8 cle under an agreement or contract entered into

9 with a motor carrier of property (other than a

10 motor private carrier or a motor carrier of

11 property described in subparagraph (A)).

12 ‘‘(6) FOREIGN MOTOR PRIVATE CARRIER.—The

13 term ‘foreign motor private carrier’ means a person

14 (including a motor private carrier but excluding a

15 motor carrier of property)—

16 ‘‘(A)(i) that is domiciled in a contiguous

17 foreign country; or

18 ‘‘(ii) that is owned or controlled by persons

19 of a contiguous foreign country; and

20 ‘‘(B) in the case of a person that is not a

21 motor private carrier, that provides interstate

22 transportation of property by motor vehicle

23 under an agreement or contract entered into

24 with a person (other than a motor carrier of
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1 property or a motor private carrier described in

2 subparagraph (A)).

3 ‘‘(7) FREIGHT FORWARDER.—The term ‘freight

4 forwarder’ means a person holding itself out to the

5 general public (other than as a pipeline, rail, motor,

6 or water carrier) to provide transportation of prop7 erty for compensation and in the ordinary course of

8 its business—

9 ‘‘(A) assembles and consolidates, or pro10 vides for assembling and consolidating, ship11 ments and performs or provides for break-bulk

12 and distribution operations of the shipments;

13 ‘‘(B) assumes responsibility for the trans14 portation from the place of receipt to the place

15 of destination; and

16 ‘‘(C) uses for any part of the transpor17 tation a carrier subject to jurisdiction under

18 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 ‘house25 hold goods’, as used in connection with transpor-
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1 tation, means personal effects and property used or

2 to be used in a dwelling, when a part of the equip3 ment or supply of such dwelling, and similar prop4 erty if the transportation of such effects or property

5 is—

6 ‘‘(A) arranged and paid for by the house7 holder, including transportation of property

8 from a factory or store when the property is

9 purchased by the householder with intent to use

10 in his or her dwelling, or

11 ‘‘(B) arranged and paid for by another

12 party.

13 ‘‘(10) HOUSEHOLD GOODS FREIGHT FOR14 WARDER.—The term ‘household goods freight for15 warder’ means a freight forwarder of one or more of

16 the following items: household goods, unaccompanied

17 baggage, or used automobiles.

18 ‘‘(11) MOTOR CARRIER.—The term ‘motor car19 rier’ means a person providing motor vehicle trans20 portation for compensation.

21 ‘‘(12) MOTOR PRIVATE CARRIER.—The term

22 ‘motor private carrier’ means a person, other than a

23 motor carrier, transporting property by motor vehi24 cle when—
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1 ‘‘(A) the transportation is as provided in

2 section 13501 of this title;

3 ‘‘(B) the person is the owner, lessee, or

4 bailee of the property being transported; and

5 ‘‘(C) the property is being transported for

6 sale, lease, rent, or bailment or to further a

7 commercial enterprise.

8 ‘‘(13) MOTOR VEHICLE.—The term ‘motor vehi9 cle’ means a vehicle, machine, tractor, trailer, or

10 semitrailer propelled or drawn by mechanical power

11 and used on a highway in transportation, or a com12 bination determined by the Secretary, but does not

13 include a vehicle, locomotive, or car operated only on

14 a rail, or a trolley bus operated by electric power

15 from a fixed overhead wire, and providing local pas16 senger transportation similar to street-railway serv17 ice.

18 ‘‘(14) NONCONTIGUOUS DOMESTIC TRADE.—

19 The term ‘noncontiguous domestic trade’ means

20 motor-water transportation subject to jurisdiction

21 under chapter 135 of this title involving traffic origi22 nating in or destined to Alaska, Hawaii, or a terri23 tory or possession of the United States.

24 ‘‘(15) PANEL.—The term ‘Panel’ means the

25 Transportation Adjudication Panel.
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1 ‘‘(16) PERSON.—The term ‘person’, in addition

2 to its meaning under section 1 of title 1, includes a

3 trustee, receiver, assignee, or personal representative

4 of a person.

5 ‘‘(17) SECRETARY.—The term ‘Secretary’

6 means the Secretary of Transportation.

7 ‘‘(18) STATE.—The term ‘State’ means the 50

8 States of the United States and the District of Co9 lumbia.

10 ‘‘(19) TRANSPORTATION.—The term ‘transpor11 tation’ includes—

12 ‘‘(A) a motor vehicle, vessel, warehouse,

13 wharf, pier, dock, yard, property, facility, in14 strumentality, or equipment of any kind related

15 to the movement of passengers or property, or

16 both, regardless of ownership or an agreement

17 concerning use; and

18 ‘‘(B) services related to that movement, in19 cluding receipt, delivery, elevation, transfer in

20 transit, refrigeration, icing, ventilation, storage,

21 handling, and interchange of passengers and

22 property.

23 ‘‘(20) UNITED STATES.—The term ‘United

24 States’ means the States of the United States and

25 the District of Columbia.
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1 ‘‘(21) VESSEL.—The term ‘vessel’ means a

2 watercraft or other artificial contrivance that is

3 used, is capable of being used, or is intended to be

4 used, as a means of transportation by water.

5 ‘‘(22) WATER CARRIER.—The term ‘water car6 rier’ means a person providing water transportation

7 for compensation.

8 ‘‘§ 13103. Remedies as cumulative

9 ‘‘Except as otherwise provided in this part, the rem10 edies provided under this part are in addition to remedies

11 existing under another law or common law.

12 ‘‘CHAPTER 133—ADMINISTRATIVE PROVISIONS

‘‘Sec.

‘‘13301. Powers.

‘‘13302. Intervention.

‘‘13303. Service of notice in proceedings.

‘‘13304. Service of process in court proceedings.

13 ‘‘§ 13301. Powers

14 ‘‘(a) GENERAL POWERS OF SECRETARY.—Except as

15 otherwise specified, the Secretary shall carry out this part.

16 Enumeration of a power of the Secretary in this part does

17 not exclude another power the Secretary may have in car18 rying out this part. The Secretary may prescribe regula19 tions in carrying out this part.

20 ‘‘(b) OBTAINING INFORMATION.—The Secretary may

21 obtain from carriers providing, and brokers for, transpor22 tation and service subject to this part, and from persons

23 controlling, controlled by, or under common control with
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1 those carriers or brokers to the extent that the business

2 of that person is related to the management of the busi3 ness of that carrier or broker, information the Secretary

4 decides is necessary to carry out this part.

5 ‘‘(c) SUBPOENA POWER.—

6 ‘‘(1) BY SECRETARY.—The Secretary may sub7 poena witnesses and records related to a proceeding

8 under this part from any place in the United States,

9 to the designated place of the proceeding. If a wit10 ness disobeys a subpoena, the Secretary, or a party

11 to a proceeding under this part, may petition a court

12 of the United States to enforce that subpoena.

13 ‘‘(2) ENFORCEMENT.—The district courts of the

14 United States have jurisdiction to enforce a sub15 poena issued under this section. Trial is in the dis16 trict in which the proceeding is conducted. The court

17 may punish a refusal to obey a subpoena as a con18 tempt of court.

19 ‘‘(d) TESTIMONY OF WITNESSES.—

20 ‘‘(1) PROCEDURE FOR TAKING TESTIMONY.—In

21 a proceeding under this part, the Secretary may

22 take the testimony of a witness by deposition and

23 may order the witness to produce records. A party

24 to a proceeding pending under this part may take

25 the testimony of a witness by deposition and may re-
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1 quire the witness to produce records at any time

2 after a proceeding is at issue on petition and an3 swer.

4 ‘‘(2) SUBPOENA.—If a witness fails to be de5 posed or to produce records under paragraph (1) of

6 this subsection, the Secretary may subpoena the wit7 ness to take a deposition, produce the records, or

8 both.

9 ‘‘(3) DEPOSITIONS.—A deposition may be taken

10 before a judge of a court of the United States, a

11 United States magistrate judge, a clerk of a district

12 court, or a chancellor, justice, or judge of a supreme

13 or superior court, mayor or chief magistrate of a

14 city, judge of a county court, or court of common

15 pleas of any State, or a notary public who is not

16 counsel or attorney of a party or interested in the

17 proceeding.

18 ‘‘(4) NOTICE OF DEPOSITION.—Before taking a

19 deposition, reasonable notice must be given in writ20 ing by the party or the attorney of that party pro21 posing to take a deposition to the opposing party or

22 the attorney of record of that party, whoever is near23 est. The notice shall state the name of the witness

24 and the time and place of taking the deposition.
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1 ‘‘(5) TRANSCRIPT.—The testimony of a person

2 deposed under this subsection shall be taken under

3 oath. The person taking the deposition shall prepare,

4 or cause to be prepared, a transcript of the testi5 mony taken. The transcript shall be subscribed by

6 the deponent.

7 ‘‘(6) FOREIGN COUNTRY.—The testimony of a

8 witness who is in a foreign country may be taken by

9 deposition before an officer or person designated by

10 the Secretary or agreed on by the parties by written

11 stipulation filed with the Secretary. A deposition

12 shall be filed with the Secretary promptly.

13 ‘‘(e) WITNESS FEES.—Each witness summoned be14 fore the Secretary or whose deposition is taken under this

15 section and the individual taking the deposition are enti16 tled to the same fees and mileage paid for those services

17 in the courts of the United States.

18 ‘‘(f) POWERS OF PANEL.—For those provisions of

19 this part that are specified to be carried out by the Panel,

20 the Panel shall have the same powers as the Secretary

21 has under this section.

22 ‘‘§ 13302. Intervention

23 ‘‘Under regulations of the Secretary, reasonable no24 tice of, and an opportunity to intervene and participate

25 in, a proceeding under this part related to transportation
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1 subject to jurisdiction under subchapter I of chapter 135

2 shall be given to interested persons.

3 ‘‘§ 13303. Service of notice in proceedings

4 ‘‘(a) AGENTS FOR SERVICE OF PROCESS.—A motor

5 carrier, a broker, or a freight forwarder providing trans6 portation or service subject to jurisdiction under chapter

7 135 of this title shall designate, in writing, an agent by

8 name and post office address on whom service of notices

9 in a proceeding before, and of actions of, the Secretary

10 may be made.

11 ‘‘(b) FILING WITH STATE.—A motor carrier provid12 ing transportation under this part shall also file the des13 ignation with the authority of each State in which it oper14 ates having jurisdiction to regulate transportation by

15 motor vehicle in intrastate commerce on the highways of

16 that State. The designation may be changed at any time

17 in the same manner as originally made.

18 ‘‘(c) NOTICE.—A notice to a motor carrier, freight

19 forwarder, or broker shall be served personally or by mail

20 on the motor carrier, freight forwarder, or broker or on

21 its designated agent. Service by mail on the designated

22 agent shall be made at the address filed for the agent.

23 When notice is given by mail, the date of mailing is consid24 ered to be the time when the notice is served. If a motor

25 carrier, freight forwarder, or broker does not have a des-
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1 ignated agent, service may be made by posting a copy of

2 the notice at the headquarters of the Department of

3 Transportation.

4 ‘‘§ 13304. Service of process in court proceedings

5 ‘‘(a) DESIGNATION OF AGENT.—A motor carrier or

6 broker providing transportation subject to jurisdiction

7 under chapter 135 of this title, including a motor carrier

8 or broker operating within the United States while provid9 ing transportation between places in a foreign country or

10 between a place in one foreign country and a place in an11 other foreign country, shall designate an agent in each

12 State in which it operates by name and post office address

13 on whom process issued by a court with subject matter

14 jurisdiction may be served in an action brought against

15 that carrier or broker. The designation shall be in writing

16 and filed with the Department of Transportation. If a des17 ignation under this subsection is not made, service may

18 be made on any agent of the carrier or broker within that

19 State.

20 ‘‘(b) CHANGE.—A designation under this section may

21 be changed at any time in the same manner as originally

22 made.

23 ‘‘CHAPTER 135—JURISDICTION

‘‘SUBCHAPTER I—MOTOR CARRIER TRANSPORTATION

‘‘Sec.

‘‘13501. General jurisdiction.

‘‘13502. Exempt transportation between Alaska and other States.
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‘‘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.

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

7 extent that passengers, property, or both, are transported

8 by 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

12 same State through another State;

13 ‘‘(C) the United States and a place in a

14 territory or possession of the United States to

15 the extent the transportation is in the United

16 States;
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1 ‘‘(D) the United States and another place

2 in the United States through a foreign country

3 to the extent the transportation is in the United

4 States; or

5 ‘‘(E) the United States and a place in a

6 foreign country to the extent the transportation

7 is in the United States; and

8 ‘‘(2) in a reservation under the exclusive juris9 diction of the United States or on a public highway.

10 ‘‘§ 13502. Exempt transportation between Alaska and

11 other States

12 ‘‘To the extent that transportation by a motor carrier

13 between a place in Alaska and a place in another State

14 under section 13501 is provided in a foreign country—

15 ‘‘(1) neither the Secretary nor the Panel has ju16 risdiction to impose a requirement over conduct of

17 the motor carrier in the foreign country conflicting

18 with a requirement of that country; but

19 ‘‘(2) the motor carrier, as a condition of provid20 ing transportation in the United States, shall com21 ply, with respect to all transportation provided be22 tween Alaska and the other State, with the require23 ments of this part related to rates and practices ap24 plicable to the transportation.
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1 ‘‘§ 13503. Exempt motor vehicle transportation in ter2 minal areas

3 ‘‘(a) TRANSPORTATION BY CARRIERS.—

4 ‘‘(1) IN GENERAL.—Neither the Secretary nor

5 the Panel has jurisdiction under this subchapter

6 over transportation by motor vehicle provided in a

7 terminal area when the transportation—

8 ‘‘(A) is a transfer, collection, or delivery;

9 ‘‘(B) is provided by—

10 ‘‘(i) a rail carrier subject to jurisdic11 tion under chapter 105;

12 ‘‘(ii) a water carrier subject to juris13 diction under subchapter II of this chapter;

14 or

15 ‘‘(iii) a freight forwarder subject to

16 jurisdiction under subchapter III of this

17 chapter; and

18 ‘‘(C) is incidental to transportation or

19 service provided by the carrier or freight for20 warder that is subject to jurisdiction under

21 chapter 105 of this title or under subchapter II

22 or III of this chapter.

23 ‘‘(2) APPLICABILITY OF OTHER PROVISIONS.—

24 Transportation exempt from jurisdiction under para25 graph (1) of this subsection is subject to jurisdiction

26 under chapter 105 when provided by such a rail car-
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1 rier, under subchapter II of this chapter when pro2 vided by such a water carrier, and under subchapter

3 III of this chapter when provided by such a freight

4 forwarder.

5 ‘‘(b) TRANSPORTATION BY AGENT.—

6 ‘‘(1) IN GENERAL.—Except to the extent pro7 vided by paragraph (2) of this subsection, neither

8 the Secretary nor the Panel has jurisdiction under

9 this subchapter over transportation by motor vehicle

10 provided in a terminal area when the transpor11 tation—

12 ‘‘(A) is a transfer, collection, or delivery;

13 and

14 ‘‘(B) is provided by a person as an agent

15 or under other arrangement for—

16 ‘‘(i) a rail carrier subject to jurisdic17 tion under chapter 105 of this title;

18 ‘‘(ii) a motor carrier subject to juris19 diction under this subchapter;

20 ‘‘(iii) a water carrier subject to juris21 diction under subchapter II of this chapter;

22 or

23 ‘‘(iv) a freight forwarder subject to ju24 risdiction under subchapter III of this

25 chapter.
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1 ‘‘(2) TREATMENT OF TRANSPORTATION BY

2 PRINCIPAL.—Transportation exempt from jurisdic3 tion under paragraph (1) of this subsection is con4 sidered transportation provided by the carrier or

5 service provided by the freight forwarder for whom

6 the transportation was provided and is subject to ju7 risdiction under chapter 105 of this title when pro8 vided for such a rail carrier, under this subchapter

9 when provided for such a motor carrier, under sub10 chapter II of this chapter when provided for such a

11 water carrier, and under subchapter III of this chap12 ter when provided for such a freight forwarder.

13 ‘‘§ 13504. Exempt motor carrier transportation en14 tirely in one State

15 ‘‘Neither the Secretary nor the Panel has jurisdiction

16 under this subchapter over transportation, except trans17 portation of household goods, by a motor carrier operating

18 solely within the State of Hawaii. The State of Hawaii

19 may regulate transportation exempt from jurisdiction

20 under this section and, to the extent provided by a motor

21 carrier operating solely within the State of Hawaii, trans22 portation exempt under section 13503 of this title.
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1 ‘‘§ 13505. Transportation furthering a primary busi2 ness

3 ‘‘(a) IN GENERAL.—Neither the Secretary nor the

4 Panel has jurisdiction under this part over the transpor5 tation of property by motor vehicle when—

6 ‘‘(1) the property is transported by a person en7 gaged in a business other than transportation; and

8 ‘‘(2) the transportation is within the scope of,

9 and furthers a primary business (other than trans10 portation) of the person.

11 ‘‘(b) CORPORATE FAMILIES.—

12 ‘‘(1) IN GENERAL.—Neither the Secretary nor

13 the Panel has jurisdiction under this part over

14 transportation of property by motor vehicle for com15 pensation provided by a person who is a member of

16 a corporate family for other members of such cor17 porate family.

18 ‘‘(2) DEFINITION.—In this section, ‘corporate

19 family’ means a group of corporations consisting of

20 a parent corporation and all subsidiaries in which

21 the parent corporation owns directly or indirectly a

22 100 percent interest.

23 ‘‘§ 13506. Miscellaneous motor carrier transportation

24 exemptions

25 ‘‘(a) IN GENERAL.—Neither the Secretary nor the

26 Panel has jurisdiction under this part over—
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1 ‘‘(1) a motor vehicle transporting only school

2 children and teachers to or from school;

3 ‘‘(2) a motor vehicle providing taxicab service

4 and having a capacity of not more than 6 passengers

5 and not operated on a regular route or between

6 specified places;

7 ‘‘(3) a motor vehicle owned or operated by or

8 for a hotel and only transporting hotel patrons be9 tween the hotel and the local station of a common

10 carrier;

11 ‘‘(4) a motor vehicle controlled and operated by

12 a farmer and transporting—

13 ‘‘(A) the farmer’s agricultural or horti14 cultural commodities and products; or

15 ‘‘(B) supplies to the farm of the farmer;

16 ‘‘(5) a motor vehicle controlled and operated by

17 a cooperative association (as defined by section

18 15(a) of the Agricultural Marketing Act (12 U.S.C.

19 1141j(a)) or by a federation of cooperative associa20 tions if the federation has no greater power or pur21 poses than a cooperative association, except that if

22 the cooperative association or federation provides

23 transportation for compensation between a place in

24 a State and a place in another State, or between a
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1 place in a State and another place in the same State

2 through another State—

3 ‘‘(A) for a nonmember that is not a farm4 er, cooperative association, federation, or the

5 United States Government, the transportation

6 (except for transportation otherwise exempt

7 under this subchapter)—

8 ‘‘(i) shall be limited to transportation

9 incidental to the primary transportation

10 operation of the cooperative association or

11 federation and necessary for its effective

12 performance; and

13 ‘‘(ii) may not exceed in each fiscal

14 year 25 percent of the total transportation

15 of the cooperative association or federation

16 between those places, measured by ton17 nage; and

18 ‘‘(B) the transportation for all

19 nonmembers may not exceed in each fiscal year,

20 measured by tonnage, the total transportation

21 between those places for the cooperative asso22 ciation or federation and its members during

23 that fiscal year;

24 ‘‘(6) transportation by motor vehicle of—

25 ‘‘(A) ordinary livestock;
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1 ‘‘(B) agricultural or horticultural commod2 ities (other than manufactured products there3 of);

4 ‘‘(C) commodities listed as exempt in the

5 Commodity List incorporated in ruling num6 bered 107, March 19, 1958, Bureau of Motor

7 Carriers, Interstate Commerce Commission,

8 other than frozen fruits, frozen berries, frozen

9 vegetables, cocoa beans, coffee beans, tea, ba10 nanas, or hemp, or wool imported from a for11 eign country, wool tops and noils, or wool waste

12 (carded, spun, woven, or knitted);

13 ‘‘(D) cooked or uncooked fish, whether

14 breaded or not, or frozen or fresh shellfish, or

15 byproducts thereof not intended for human con16 sumption, other than fish or shellfish that have

17 been treated for preserving, such as canned,

18 smoked, pickled, spiced, corned, or kippered

19 products; and

20 ‘‘(E) livestock and poultry feed and agri21 cultural seeds and plants, if such products (ex22 cluding products otherwise exempt under this

23 paragraph) are transported to a site of agricul24 tural production or to a business enterprise en-
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1 gaged in the sale to agricultural producers of

2 goods used in agricultural production;

3 ‘‘(7) a motor vehicle used only to distribute

4 newspapers;

5 ‘‘(8)(A) transportation of passengers by motor

6 vehicle incidental to transportation by aircraft;

7 ‘‘(B) transportation of property (including bag8 gage) by motor vehicle as part of a continuous move9 ment which, prior or subsequent to such part of the

10 continuous movement, has been or will be trans11 ported by an air carrier or (to the extent so agreed

12 by the United States and approved by the Secretary)

13 by a foreign air carrier; or

14 ‘‘(C) transportation of property by motor vehi15 cle in lieu of transportation by aircraft because of

16 adverse weather conditions or mechanical failure of

17 the aircraft or other causes due to circumstances be18 yond the control of the carrier or shipper;

19 ‘‘(9) the operation of a motor vehicle in a na20 tional park or national monument;

21 ‘‘(10) a motor vehicle carrying not more than

22 15 individuals in a single, daily roundtrip to com23 mute to and from work;

24 ‘‘(11) transportation of used pallets and used

25 empty shipping containers (including intermodal
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1 cargo containers), and other used shipping devices

2 (other than containers or devices used in the trans3 portation of motor vehicles or parts of motor vehi4 cles);

5 ‘‘(12) transportation of natural, crushed, vesic6 ular rock to be used for decorative purposes;

7 ‘‘(13) transportation of wood chips;

8 ‘‘(14) brokers for motor carriers of passengers,

9 except as provided in section 13904(d)); or

10 ‘‘(15) transportation of broken, crushed, or

11 powdered glass.

12 ‘‘(b) EXEMPT UNLESS OTHERWISE NECESSARY.—

13 Except to the extent the Secretary or Panel, as applicable,

14 finds it necessary to exercise jurisdiction to carry out the

15 transportation policy of section 13101, neither the Sec16 retary nor the Panel has jurisdiction under this part

17 over—

18 ‘‘(1) transportation provided entirely in a mu19 nicipality, in contiguous municipalities, or in a zone

20 that is adjacent to, and commercially a part of, the

21 municipality or municipalities, except—

22 ‘‘(A) when the transportation is under

23 common control, management, or arrangement

24 for a continuous carriage or shipment to or
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1 from a place outside the municipality, munici2 palities, or zone; or

3 ‘‘(B) that in transporting passengers over

4 a route between a place in a State and a place

5 in another State, or between a place in a State

6 and another place in the same State through

7 another State, the transportation is exempt

8 from jurisdiction under this part only if the

9 motor carrier operating the motor vehicle also

10 is lawfully providing intrastate transportation of

11 passengers over the entire route under the laws

12 of each State through which the route runs;

13 ‘‘(2) transportation by motor vehicle provided

14 casually, occasionally, or reciprocally but not as a

15 regular occupation or business, except when a broker

16 or other person sells or offers for sale passenger

17 transportation provided by a person authorized to

18 transport passengers by motor vehicle under an ap19 plication pending, or registration issued, under this

20 part; or

21 ‘‘(3) the emergency towing of an accidentally

22 wrecked or disabled motor vehicle.
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1 ‘‘§ 13507. Mixed loads of regulated and unregulated

2 property

3 ‘‘A motor carrier of property providing transportation

4 exempt from jurisdiction under paragraph (6), (8), (11),

5 (12), or (13) of section 13506(a) may transport property

6 under such paragraph in the same vehicle and at the same

7 time as property which the carrier is authorized to trans8 port under a registration issued under section 13902(a).

9 Such transportation shall not affect the unregulated sta10 tus of such exempt property or the regulated status of the

11 property which the carrier is authorized to transport

12 under such registration.

13 ‘‘§ 13508. Limited authority over cooperative associa14 tions

15 ‘‘(a) IN GENERAL.—Notwithstanding section

16 13506(a)(5), any cooperative association (as defined by

17 section 15(a) of the Agricultural Marketing Act (12

18 U.S.C. 1141j(a))) or a federation of cooperative associa19 tions shall prepare and maintain such records relating to

20 transportation provided by such association or federation,

21 in such form as the Secretary or the Panel may require

22 by regulation to carry out the provisions of such section

23 13506(a)(5). The Secretary or the Panel, or an employee

24 designated by the Secretary or the Panel, may on demand

25 and display of proper credentials—
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1 ‘‘(1) inspect and examine the lands, buildings,

2 and equipment of such association or federation; and

3 ‘‘(2) inspect and copy any record of such asso4 ciation or federation.

5 ‘‘(b) REPORTS.—Notwithstanding section

6 13506(a)(5), the Secretary or the Panel may require a co7 operative association or federation of cooperative associa8 tions described in subsection (a) of this section to file re9 ports with the Secretary or the Panel containing answers

10 to questions about transportation provided by such asso11 ciation or federation.

12 ‘‘(c) ENFORCEMENT.—The Secretary or the Panel

13 may bring a civil action to enforce subsections (a) and (b)

14 of this section or a regulation or order of the Secretary

15 or the Panel issued under this section, when violated by

16 a cooperative association or federation of cooperative asso17 ciations described in subsection (a).

18 ‘‘(d) REPORTING PENALTIES.—

19 ‘‘(1) IN GENERAL.—A person required to make

20 a report to the Secretary or the Panel, answer a

21 question, or maintain a record under this section, or

22 an officer, agent, or employee of that person, that—

23 ‘‘(A) does not make the report;

24 ‘‘(B) does not specifically, completely, and

25 truthfully answer the question; or
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1 ‘‘(C) does not maintain the record in the

2 form and manner prescribed under this section;

3 is liable to the United States Government for a civil

4 penalty of not more than $500 for each violation

5 and for not more than $250 for each additional day

6 the violation continues.

7 ‘‘(2) VENUE.—Trial in a civil action under

8 paragraph (1) shall be in the judicial district in

9 which—

10 ‘‘(A) the cooperative association or federa11 tion of cooperative associations has its principal

12 office;

13 ‘‘(B) the violation occurred; or

14 ‘‘(C) the offender is found.

15 Process in the action may be served in the judicial

16 district of which the offender is an inhabitant or in

17 which the offender may be found.

18 ‘‘(e) EVASION PENALTIES.—A person, or an officer,

19 employee, or agent of that person, that by any means

20 knowingly and willfully tries to evade compliance with the

21 provisions of this section shall be fined at least $200 but

22 not more than $500 for the first violation and at least

23 $250 but not more than $2,000 for a subsequent violation.

24 ‘‘(f) RECORDKEEPING PENALTIES.—A person re25 quired to make a report, answer a question, or maintain
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1 a record under this section, or an officer, agent, or em2 ployee of that person, that—

3 ‘‘(1) willfully does not make that report;

4 ‘‘(2) willfully does not specifically, completely,

5 and truthfully answer that question in 30 days from

6 the date that the question is required to be an7 swered;

8 ‘‘(3) willfully does not maintain that record in

9 the form and manner prescribed;

10 ‘‘(4) knowingly and willfully falsifies, destroys,

11 mutilates, or changes that report or record;

12 ‘‘(5) knowingly and willfully files a false report

13 or record under this section;

14 ‘‘(6) knowingly and willfully makes a false or

15 incomplete entry in that record about a business-re16 lated fact or transaction; or

17 ‘‘(7) knowingly and willfully maintains a record

18 in violation of a regulation or order issued under

19 this section;

20 shall be fined not more than $5,000.
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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 Unit13 ed States, the Secretary only has jurisdiction over

14 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—
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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

10 the 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

16 to a place in the United States from a place

17 outside the United States.

18 ‘‘(b) DEFINITIONS.—In this section, the terms ‘State’

19 and ‘United States’ include the territories of the United

20 States.

21 ‘‘SUBCHAPTER III—FREIGHT FORWARDER

22 SERVICE

23 ‘‘§ 13531. General jurisdiction

24 ‘‘(a) IN GENERAL.—The Secretary and the Panel

25 have jurisdiction, as specified in this part, over service
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1 that a freight forwarder undertakes to provide, or is au2 thorized or required under this part to provide, to the ex3 tent transportation is provided in the United States and

4 is between—

5 ‘‘(1) a place in a State and a place in another

6 State, even if part of the transportation is outside

7 the United States;

8 ‘‘(2) a place in a State and another place in the

9 same State through a place outside the State; or

10 ‘‘(3) a place in the United States and a place

11 outside the United States.

12 ‘‘(b) EXEMPTION OF CERTAIN AIR CARRIER SERV13 ICE.—Neither the Secretary nor the Panel has jurisdiction

14 under subsection (a) of this section over service under15 taken by a freight forwarder using transportation of an

16 air carrier subject to part A of subtitle VII of this title.

17 ‘‘SUBCHAPTER IV—AUTHORITY TO EXEMPT

18 ‘‘§ 13541. Authority to exempt transportation or serv19 ices

20 ‘‘(a) IN GENERAL.—In any matter subject to juris21 diction under this part, the Secretary or the Panel, as ap22 plicable, shall exempt a person, class of persons, or a

23 transaction or service from the application of a provision

24 of this part, or use this exemption authority to modify the

25 application of a provision of this part as it applies to such
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1 person, class, transaction, or service, when the Secretary

2 or Panel finds that the application of that provision in

3 whole or in part—

4 ‘‘(1) is not necessary to carry out the transpor5 tation policy of section 13101;

6 ‘‘(2) is not needed to protect shippers from the

7 abuse of market power or that the transaction or

8 service is of limited scope; and

9 ‘‘(3) is in the public interest.

10 ‘‘(b) INITIATION OF PROCEEDING.—The Secretary or

11 Panel, as applicable, may, where appropriate, begin a pro12 ceeding under this section on the Secretary’s or Panel’s

13 own initiative or on application by an interested party.

14 ‘‘(c) PERIOD OF EXEMPTION.—The Secretary or

15 Panel, as applicable, may specify the period of time during

16 which an exemption granted under this section is effective.

17 ‘‘(d) REVOCATION.—The Secretary or Panel, as ap18 plicable, may revoke an exemption, to the extent specified,

19 on finding that application of a provision of this part to

20 the person, class, or transportation is necessary to carry

21 out the transportation policy of section 13101.

22 ‘‘(e) LIMITATIONS.—The exemption authority under

23 this section may not be used to relieve a person from the

24 application of, and compliance with, any law, rule, regula25 tion, standard, or order pertaining to cargo loss and dam-
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1 age, insurance, safety fitness, or activities approved under

2 section 13703 or not terminated under section

3 13907(d)(2).

4 ‘‘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.

5 ‘‘§ 13701. Requirements for reasonable rates, classi6 fications, through routes, rules, and prac7 tices for certain transportation

8 ‘‘(a) REASONABLENESS.—

9 ‘‘(1) CERTAIN HOUSEHOLD GOODS TRANSPOR10 TATION; JOINT RATES INVOLVING WATER TRANSPOR11 TATION.—A rate, classification, rule, or practice re12 lated to transportation or service provided by a car13 rier subject to jurisdiction under subchapters I or

14 III of chapter 135 of this title for transportation or

15 service involving—

16 ‘‘(A) a movement of household goods de17 scribed in section 13102(9)(A), or
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1 ‘‘(B) a joint rate for a through movement

2 with a water carrier in noncontiguous domestic

3 trade,

4 must be reasonable.

5 ‘‘(2) THROUGH ROUTES AND DIVISIONS OF

6 JOINT RATES.—Through routes and divisions of

7 joint rates for such transportation or service must

8 be reasonable.

9 ‘‘(b) PRESCRIPTION BY PANEL FOR VIOLATIONS.—

10 When the Panel finds it necessary to stop or prevent a

11 violation of subsection (a), the Panel shall prescribe the

12 rate, classification, rule, practice, through route, or divi13 sion of joint rates to be applied for such transportation

14 or service.

15 ‘‘§ 13702. Tariff requirement for certain transpor16 tation

17 ‘‘(a) SURFACE TRANSPORTATION COVERED.—A car18 rier subject to jurisdiction under subchapters I or III of

19 chapter 135 of this title may provide transportation or

20 service that is—

21 ‘‘(1) under a joint rate for a through movement

22 in noncontiguous domestic trade, or

23 ‘‘(2) for movement of household goods described

24 in section 13102(9)(A),
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1 only if the rate for such transportation or service is con2 tained in a tariff that is in effect under this section. The

3 carrier may not charge or receive a different compensation

4 for the transportation or service than the rate specified

5 in the tariff, whether by returning a part of that rate to

6 a person, giving a person a privilege, allowing the use of

7 a facility that affects the value of that transportation or

8 service, or another device. A rate contained in a tariff shall

9 be stated in money of the United States.

10 ‘‘(b) TARIFF REQUIREMENTS FOR NONCONTIGUOUS

11 DOMESTIC TRADE.—

12 ‘‘(1) FILING.—A carrier providing transpor13 tation or service described in subsection (a)(1) shall

14 publish and file with the Panel tariffs containing the

15 rates established for such transportation or service.

16 The carriers shall keep such tariffs available for

17 public inspection. The Panel shall prescribe the form

18 and manner of publishing, filing, and keeping tariffs

19 available for public inspection under this subsection.

20 ‘‘(2) CONTENTS.—The Panel may prescribe any

21 specific information and charges to be identified in

22 a tariff, but at a minimum tariffs must identify

23 plainly—

24 ‘‘(A) the carriers that are parties to it;
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1 ‘‘(B) the places between which property

2 will be transported;

3 ‘‘(C) terminal charges if a carrier provides

4 transportation or service subject to jurisdiction

5 under subchapter III of chapter 135;

6 ‘‘(D) privileges given and facilities allowed;

7 and

8 ‘‘(E) any rules that change, affect, or de9 termine any part of the published rate.

10 ‘‘(3) CHANGES.—The Panel may permit car11 riers to change rates, classifications, rules, and prac12 tices without filing complete tariffs under this sub13 section that cover matter that is not being changed

14 when the Panel finds that action to be consistent

15 with the public interest. Those carriers may either—

16 ‘‘(A) publish new tariffs that incorporate

17 changes, or

18 ‘‘(B) plainly indicate the proposed changes

19 in the tariffs then in effect and kept open for

20 public inspection.

21 ‘‘(c) TARIFF REQUIREMENTS FOR HOUSEHOLD

22 GOODS CARRIERS.—

23 ‘‘(1) IN GENERAL.—A carrier providing trans24 portation described in subsection (a)(2) shall main25 tain rates and related rules and practices in a tariff.
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1 The tariff must be submitted to the Panel for in2 spection and be made available for inspection by

3 shippers upon reasonable request.

4 ‘‘(2) NOTICE OF AVAILABILITY.—A carrier that

5 maintains a tariff under this subsection may not en6 force the provisions of the tariff unless the carrier

7 has given notice that the tariff is available for in8 spection in its bill of lading or by other actual notice

9 to individuals whose shipments are subject to the

10 tariff.

11 ‘‘(3) REQUIREMENTS.—A carrier that main12 tains a tariff under this subsection is bound by the

13 tariff except as otherwise provided in this part. A

14 tariff that does not comply with this subsection may

15 not be enforced against any individual shipper.

16 ‘‘(4) INCORPORATION BY REFERENCE.—A car17 rier may incorporate by reference the rates, terms,

18 and other conditions in a tariff in agreements cover19 ing the transportation of households described in

20 section 13102(9)(B).

21 ‘‘(5) COMPLAINTS.—A complaint that a rate or

22 related rule or practice maintained in a tariff under

23 this subsection violates section 13701(a) may be

24 submitted to the Panel for resolution.
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1 ‘‘(d) INVALIDATION.—The Panel may invalidate a

2 tariff prepared by a carrier or carriers under this section

3 (other than subsection (e)) if that tariff violates this sec4 tion or a regulation of the Panel carrying out this section.

5 ‘‘(e) PORT-TO-PORT TRANSPORTATION.—

6 ‘‘(1) IN GENERAL.—

7 ‘‘(A) FILING REQUIREMENT.—Except with

8 regard to bulk cargo, forest products, recycled

9 metal scrap, waste paper, and paper waste,

10 each water common carrier subject to jurisdic11 tion under subchapter II of chapter 135 per12 forming transportation in domestic offshore

13 commerce shall file with the Panel, and keep

14 open to public inspection, tariffs showing all its

15 rates, charges, classifications, rules, and prac16 tices between all points or ports on its own

17 route and on any through transportation route

18 that has been established. Such carriers shall

19 not be required to state separately or otherwise

20 reveal in tariff filings the inland divisions of a

21 through rate. Such tariffs shall—

22 ‘‘(i) state the places between which

23 cargo will be carried;

24 ‘‘(ii) list each classification of cargo in

25 use;
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1 ‘‘(iii) state separately each terminal or

2 other charge, privilege, or facility under

3 the control of the carrier and any rules or

4 regulations that in any way change, affect,

5 or determine any part of the aggregate of

6 the rates or charges; and

7 ‘‘(iv) include sample copies of any loy8 alty contract, bill of lading, contract of af9 freightment, or other document evidencing

10 the transportation agreement.

11 ‘‘(B) AVAILABILITY.—Copies of tariffs

12 shall be made available to any person, and a

13 reasonable charge may be assessed for them.

14 ‘‘(2) TIME-VOLUME RATES.—Rates shown in

15 tariffs filed under paragraph (1) may vary with the

16 volume of cargo offered over a specified period of

17 time.

18 ‘‘(3) RATES.—No new or initial rate required to

19 be filed under this subsection, or change in an exist20 ing rate required to be filed under this subsection,

21 that results in an increased cost to a shipper may

22 become effective earlier than 30 days after filing of

23 the rate with the Panel; except that the Panel, for

24 good cause, may allow such a new or initial rate or

25 change to become effective in less than 30 days. A
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1 change in such an existing rate that results in a de2 creased cost to the shipper may become effective

3 upon publication and filing of the rate with the

4 Panel.

5 ‘‘§ 13703. Certain collective activities; exemption from

6 antitrust laws

7 ‘‘(a) AGREEMENTS.—

8 ‘‘(1) AUTHORITY TO ENTER.—A motor carrier

9 providing transportation or service subject to juris10 diction under chapter 135 may enter into an agree11 ment with one or more such carriers to establish—

12 ‘‘(A) through routes and joint rates;

13 ‘‘(B) rates for the transportation of house14 hold goods described in section 13102(9)(A);

15 ‘‘(C) classifications;

16 ‘‘(D) mileage guides;

17 ‘‘(E) rules;

18 ‘‘(F) divisions;

19 ‘‘(G) rate adjustments of general applica20 tion based on industry average carrier costs (so

21 long as there is no discussion of individual mar22 kets or particular single-line rates); or

23 ‘‘(H) procedures for joint consideration,

24 initiation, or establishment of matters described

25 in subparagraphs (A) through (G).
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1 ‘‘(2) SUBMISSION OF AGREEMENT TO PANEL;

2 APPROVAL.—An agreement entered into under sub3 section (a) may be submitted by any carrier or car4 riers that are parties to such agreement to the Panel

5 for approval and may be approved by the Panel only

6 if it finds that such agreement is in the public inter7 est.

8 ‘‘(3) CONDITIONS.—The Panel may require

9 compliance with reasonable conditions consistent

10 with this part to assure that the agreement furthers

11 the transportation policy set forth in section 13101.

12 ‘‘(4) INVESTIGATIONS.—The Panel may sus13 pend and investigate the reasonableness of any clas14 sification or rate adjustment of general application

15 made pursuant to an agreement under this section.

16 ‘‘(5) EFFECT OF APPROVAL.—If the Panel ap17 proves the agreement or renews approval of the

18 agreement, it may be made and carried out under its

19 terms and under the conditions required by the

20 Panel, and the antitrust laws, as defined in the first

21 section of the Clayton Act (15 U.S.C. 12), do not

22 apply to parties and other persons with respect to

23 making or carrying out the agreement.

24 ‘‘(b) RECORDS.—The Panel may require an organiza25 tion established or continued under an agreement ap-
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1 proved under this section to maintain records and submit

2 reports. The Panel, or its delegate, may inspect a record

3 maintained under this section, or monitor any organiza4 tion’s compliance with this section.

5 ‘‘(c) REVIEW.—The Panel may review an agreement

6 approved under this section, on its own initiative or on

7 request, and shall change the conditions of approval or

8 terminate it when necessary to protect the public interest.

9 Action of the Panel under this section—

10 ‘‘(1) approving an agreement,

11 ‘‘(2) denying, ending, or changing approval,

12 ‘‘(3) prescribing the conditions on which ap13 proval is granted, or

14 ‘‘(4) changing those conditions,

15 has effect only as related to application of the antitrust

16 laws referred to in subsection (a).

17 ‘‘(d) EXPIRATION OF APPROVALS; RENEWALS.—Sub18 ject to subsection (c), approval of an agreement under sub19 section (a) shall expire 3 years after the date of approval

20 unless renewed under this subsection. The approval may

21 be renewed upon request of the parties to the agreement

22 if such parties resubmit the agreement to the Panel, the

23 agreement is unchanged, and the Panel approves such re24 newal. The Panel shall approve the renewal unless it finds

25 that the renewal is not in the public interest.
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1 ‘‘(e) EXISTING AGREEMENTS.—Agreements approved

2 under former section 10706(b) and in effect on the day

3 before the effective date of this section shall be treated

4 for purposes of this section as approved by the Panel

5 under this section beginning on such effective date.

6 ‘‘(f) LIMITATIONS ON STATUTORY CONSTRUCTION.—

7 ‘‘(1) UNDERCHARGE CLAIMS.—Nothing in this

8 section shall serve as a basis for any undercharge

9 claim.

10 ‘‘(2) OBLIGATION OF SHIPPER.—Nothing in

11 this title, the ICC Termination Act of 1995, or any

12 amendments or repeals made by such Act shall be

13 construed as creating any obligation for a shipper

14 based solely on a classification that was on file with

15 the Interstate Commerce Commission or elsewhere

16 on the day before the effective date of this section.

17 ‘‘(g) MILEAGE RATE LIMITATION.—No carrier sub18 ject to jurisdiction under subchapter I or III of chapter

19 135 may enforce collection of its mileage rates unless such

20 carrier—

21 ‘‘(1) uses an independent publication of mileage

22 (other than a publication referred to in paragraph

23 (2)) which can be examined by any interested person

24 upon reasonable request; or
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1 ‘‘(2) is a participant in a publication of mile2 ages formulated under an agreement approved under

3 this section.

4 ‘‘(h) SINGLE LINE RATE DEFINED.—In this section,

5 the term ‘single line rate’ means a rate, charge, or allow6 ance proposed by a single motor carrier that is applicable

7 only over its line and for which the transportation can be

8 provided by that carrier.

9 ‘‘§ 13704. Household goods rates—estimates; guaran10 tees of service

11 ‘‘(a) IN GENERAL.—

12 ‘‘(1) AUTHORITY.—Subject to the provisions of

13 paragraph (2) of this subsection, a motor carrier

14 providing transportation of household goods subject

15 to jurisdiction under subchapter I of chapter 135

16 may establish a rate for the transportation of house17 hold goods which is based on the carrier’s written,

18 binding estimate of charges for providing such trans19 portation.

20 ‘‘(2) NONPREFERENTIAL; NONPREDATORY.—

21 Any rate established under this subsection must be

22 available on a nonpreferential basis to shippers and

23 must not result in charges to shippers which are

24 predatory.

25 ‘‘(b) RATES FOR GUARANTEED SERVICE.—
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1 ‘‘(1) AUTHORITY.—Subject to the provisions of

2 paragraph (2) of this subsection, a motor carrier

3 providing transportation of household goods subject

4 to jurisdiction under subchapter I of chapter 135

5 may establish rates for the transportation of house6 hold goods which guarantee that the carrier will pick

7 up and deliver such household goods at the times

8 specified in the contract for such services and pro9 vide a penalty or per diem payment in the event the

10 carrier fails to pick up or deliver such household

11 goods at the specified time. The charges, if any, for

12 such guarantee and penalty provision may vary to

13 reflect one or more options available to meet a par14 ticular shipper’s needs.

15 ‘‘(2) AUTHORITY OF SECRETARY TO REQUIRE

16 NONGUARANTEED SERVICE RATES.—Before a carrier

17 may establish a rate for any service under paragraph

18 (1) of this subsection, the Secretary may require

19 such carrier to have in effect and keep in effect, dur20 ing any period such rate is in effect under para21 graph (1), a rate for such service which does not

22 guarantee the pick up and delivery of household

23 goods at the times specified in the contract for such

24 services and which does not provide a penalty or per
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1 diem payment in the event the carrier fails to pick

2 up or deliver household goods at the specified time.

3 ‘‘§ 13705. Requirements for through routes among

4 motor carriers of passengers

5 ‘‘(a) ESTABLISHMENT; REASONABLENESS.—A motor

6 carrier providing transportation of passengers subject to

7 jurisdiction under subchapter I of chapter 135 shall estab8 lish through routes with other carriers of the same type

9 and shall establish individual and joint rates applicable to

10 them. Such through route must be reasonable.

11 ‘‘(b) PRESCRIBED BY PANEL.—When the Panel finds

12 it necessary to enforce the requirements of this section,

13 the Panel may prescribe through routes and the conditions

14 under which those routes must be operated for motor car15 riers providing transportation of passengers subject to ju16 risdiction under subchapter I of chapter 135.

17 ‘‘§ 13706. Liability for payment of rates

18 ‘‘(a) LIABILITY OF CONSIGNEE.—Liability for pay19 ment of rates for transportation for a shipment of prop20 erty by a shipper or consignor to a consignee other than

21 the shipper or consignor, is determined under this section

22 when the transportation is provided by motor carrier

23 under this part. When the shipper or consignor instructs

24 the carrier transporting the property to deliver it to a con25 signee that is an agent only, not having beneficial title
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1 to the property, the consignee is liable for rates billed at

2 the time of delivery for which the consignee is otherwise

3 liable, but not for additional rates that may be found to

4 be due after delivery if the consignee gives written notice

5 to the delivering carrier before delivery of the property—

6 ‘‘(1) of the agency and absence of beneficial

7 title; and

8 ‘‘(2) of the name and address of the beneficial

9 owner of the property if it is reconsigned or diverted

10 to a place other than the place specified in the origi11 nal bill of lading.

12 ‘‘(b) LIABILITY OF BENEFICIAL OWNER.—When the

13 consignee is liable only for rates billed at the time of deliv14 ery under subsection (a), the shipper or consignor, or, if

15 the property is reconsigned or diverted, the beneficial

16 owner is liable for those additional rates regardless of the

17 bill of the lading or contract under which the property was

18 transported. The beneficial owner is liable for all rates

19 when the property is reconsigned or diverted by an agent

20 but is refused or abandoned at its ultimate destination if

21 the agent gave the carrier in the reconsignment or diver22 sion order a notice of agency and the name and address

23 of the beneficial owner. A consignee giving the carrier er24 roneous information about the identity of the beneficial

25 owner of the property is liable for the additional rates.
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1 ‘‘§ 13707. Billing and collecting practices

2 ‘‘(a) TIMING.—A motor carrier subject to jurisdiction

3 under subchapter I of chapter 135 shall disclose, when a

4 document is presented or electronically transmitted for

5 payment to the person responsible directly to the motor

6 carrier for payment or agent of such responsible person,

7 the actual rates, charges, or allowances for any transpor8 tation service.

9 ‘‘(b) FALSE OR MISLEADING INFORMATION.—No

10 person may cause a motor carrier to present false or mis11 leading information on a document about the actual rate,

12 charge, or allowance to any party to the transaction.

13 ‘‘(c) ALLOWANCES FOR SERVICES.—When the actual

14 rate, charge, or allowance is dependent upon the perform15 ance of a service by a party to the transportation arrange16 ment, such as tendering a volume of freight over a stated

17 period of time, the motor carrier shall indicate in any doc18 ument presented for payment to the person responsible di19 rectly to the motor carrier that a reduction, allowance, or

20 other adjustment may apply.

21 ‘‘§ 13708. Procedures for resolving claims involving

22 unfiled, negotiated transportation rates

23 ‘‘(a) TRANSPORTATION PROVIDED BEFORE EFFEC24 TIVE DATE.—

25 ‘‘(1) IN GENERAL.—When a claim is made by

26 a motor carrier of property (other than a household
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1 goods carrier) providing transportation subject to ju2 risdiction under subchapter II of chapter 105, as in

3 effect on the day before the effective date of this sec4 tion, by a freight forwarder (other than a household

5 goods freight forwarder), or by a party representing

6 such a carrier or freight forwarder regarding the col7 lection of rates or charges for such transportation in

8 addition to those originally billed and collected by

9 the carrier or freight forwarder for such transpor10 tation, the person against whom the claim is made

11 may elect to satisfy the claim under the provisions

12 of subsection (b), (c), or (d), upon showing that—

13 ‘‘(A) the carrier or freight forwarder is no

14 longer transporting property or is transporting

15 property for the purpose of avoiding the appli16 cation of this section; and

17 ‘‘(B) with respect to the claim—

18 ‘‘(i) the person was offered a trans19 portation rate by the carrier or freight for20 warder other than that legally on file with

21 the Interstate Commerce Commission for

22 the transportation service;

23 ‘‘(ii) the person tendered freight to

24 the carrier or freight forwarder in reason-
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1 able reliance upon the offered transpor2 tation rate;

3 ‘‘(iii) the carrier or freight forwarder

4 did not properly or timely file with the

5 Interstate Commerce Commission a tariff

6 providing for such transportation rate or

7 failed to enter into an agreement for con8 tract carriage;

9 ‘‘(iv) such transportation rate was

10 billed and collected by the carrier or

11 freight forwarder; and

12 ‘‘(v) the carrier or freight forwarder

13 demands additional payment of a higher

14 rate filed in a tariff.

15 ‘‘(2) FORUM FOR RESOLUTION OF SHOWINGS.—

16 If there is a dispute as to the showing under para17 graph (1)(A), such dispute shall be resolved by the

18 court in which the claim is brought. If there is a dis19 pute as to the showing under paragraph (1)(B),

20 such dispute shall be resolved by the Panel. Pending

21 the resolution of any such dispute, the person shall

22 not have to pay any additional compensation to the

23 carrier or freight forwarder.

24 ‘‘(3) EFFECT OF SATISFACTION OF CLAIMS

25 UNDER DISPUTE RESOLUTION PROCEDURE.—Satis-
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1 faction of a claim under subsection (b), (c), or (d)

2 shall be binding on the parties, and the parties shall

3 not be subject to chapter 119, as in effect on the

4 day before the effective date of this section.

5 ‘‘(b) CLAIMS INVOLVING SHIPMENTS WEIGHING

6 10,000 POUNDS OR LESS.—A person from whom the ad7 ditional legally applicable and effective tariff rate or

8 charges are sought may elect to satisfy the claim, if the

9 shipments each weighed 10,000 pounds or less, by pay10 ment of 20 percent of the difference between the carrier’s

11 applicable and effective tariff rate and the rate originally

12 billed and paid. In the event that a dispute arises as to

13 the rate that was legally applicable to the shipment, such

14 dispute shall be resolved by the Panel .

15 ‘‘(c) CLAIMS INVOLVING SHIPMENTS WEIGHING

16 MORE THAN 10,000 POUNDS.—A person from whom the

17 additional legally applicable and effective tariff rate or

18 charges are sought may elect to satisfy the claim, if the

19 shipments each weighed more than 10,000 pounds, by

20 payment of 15 percent of the difference between the car21 rier’s applicable and effective tariff rate and the rate origi22 nally billed and paid. In the event that a dispute arises

23 as to the rate that was legally applicable to the shipment,

24 such dispute shall be resolved by the Panel.
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1 ‘‘(d) CLAIMS INVOLVING PUBLIC WAREHOUSE2 MEN.—Notwithstanding subsections (b) and (c), a person

3 from whom the additional legally applicable and effective

4 tariff rate or charges are sought may elect to satisfy the

5 claim by payment of 5 percent of the difference between

6 the carrier’s applicable and effective tariff rate and the

7 rate originally billed and paid if such person is a public

8 warehouseman. In the event that a dispute arises as to

9 the rate that was legally applicable to the shipment, such

10 dispute shall be resolved by the Panel.

11 ‘‘(e) EFFECTS OF ELECTION.—When a person from

12 whom additional legally applicable freight rates or charges

13 are sought does not elect to use the provisions of sub14 sections (b), (c) or (d), the person may pursue all rights

15 and remedies existing under this title on the day before

16 the effective date of this section.

17 ‘‘(f) STAY OF ADDITIONAL COMPENSATION.—When

18 a person proceeds under this section to challenge the rea19 sonableness of the legally applicable freight rate or

20 charges being claimed by a carrier or freight forwarder

21 in addition to those already billed and collected, the person

22 shall not have to pay any additional compensation to the

23 carrier or freight forwarder until the Panel has made a

24 determination as to the reasonableness of the challenged
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1 rate as applied to the freight of the person against whom

2 the claim is made.

3 ‘‘(g) NOTIFICATION OF ELECTION.—

4 ‘‘(1) GENERAL RULE.—A person must notify

5 the carrier or freight forwarder as to its election to

6 proceed under subsection (b), (c), or (d). Except as

7 provided in paragraphs (2), (3), and (4), such elec8 tion may be made at any time.

9 ‘‘(2) DEMANDS FOR PAYMENT INITIALLY MADE

10 AFTER DECEMBER 3, 1993.—If the carrier or freight

11 forwarder or party representing such carrier or

12 freight forwarder initially demands the payment of

13 additional freight charges after December 3, 1993,

14 and notifies the person from whom additional freight

15 charges are sought of the provisions of subsections

16 (a) through (f) at the time of the making of such

17 initial demand, the election must be made not later

18 than the later of—

19 ‘‘(A) the 60th day following the filing of an

20 answer to a suit for the collection of such addi21 tional legally applicable freight rate or charges,

22 or

23 ‘‘(B) March 5, 1994.

24 ‘‘(3) PENDING SUITS FOR COLLECTION MADE

25 BEFORE DECEMBER 4, 1993.—If the carrier or
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1 freight forwarder or party representing such carrier

2 or freight forwarder has filed, before December 4,

3 1993, a suit for the collection of additional freight

4 charges and notifies the person from whom addi5 tional freight charges are sought of the provisions of

6 subsections (a) through (f), the election must be

7 made not later than the 90th day following the date

8 on which such notification is received.

9 ‘‘(4) DEMANDS FOR PAYMENT MADE BEFORE

10 DECEMBER 4, 1993.—If the carrier or freight for11 warder or party representing such carrier or freight

12 forwarder has demanded the payment of additional

13 freight charges, and has not filed a suit for the col14 lection of such additional freight charges, before De15 cember 4, 1993, and notifies the person from whom

16 additional freight charges are sought of the provi17 sions of subsections (a) through (f), the election

18 must be made not later than the later of—

19 ‘‘(A) the 60th day following the filing of an

20 answer to a suit for the collection of such addi21 tional legally applicable freight rate or charges,

22 or

23 ‘‘(B) March 5, 1994.
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1 ‘‘(h) CLAIMS INVOLVING SMALL-BUSINESS CON2 CERNS, CHARITABLE ORGANIZATIONS, AND RECYCLABLE

3 MATERIALS.—

4 ‘‘(1) IN GENERAL.—Notwithstanding sub5 sections (b), (c), and (d), a person from whom the

6 additional legally applicable and effective tariff rate

7 or charges are sought shall not be liable for the dif8 ference between the carrier’s applicable and effective

9 tariff rate and the rate originally billed and paid—

10 ‘‘(A) if such person qualifies as a small11 business concern under the Small Business Act

12 (15 U.S.C. 631 et seq.),

13 ‘‘(B) if such person is an organization

14 which is described in section 501(c)(3) of the

15 Internal Revenue Code of 1986 and exempt

16 from tax under section 501(a) of such Code, or

17 ‘‘(C) if the cargo involved in the claim is

18 recyclable materials.

19 ‘‘(2) RECYCLABLE MATERIALS DEFINED.—In

20 this subsection, the term ‘recyclable materials’

21 means waste products for recycling or reuse in the

22 furtherance of recognized pollution control pro23 grams.
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1 ‘‘§ 13709. Additional motor carrier undercharge pro2 visions

3 ‘‘(a) MISCELLANEOUS PROVISIONS.—

4 ‘‘(1) INFORMATION RELATING TO BASIS OF

5 RATE.—A motor carrier of property (other than a

6 motor carrier providing transportation in noncontig7 uous domestic trade) shall provide to the shipper, on

8 request of the shipper, a written or electronic copy

9 of the rate, classification, rules, and practices, upon

10 which any rate agreed to between the shipper and

11 carrier may have been based.

12 ‘‘(2) REASONABLENESS OF RATES; COLLECTING

13 ADDITIONAL CHARGES.—With respect to transpor14 tation provided before the effective date of this sec15 tion, when the applicability or reasonableness of the

16 rates and related provisions billed by a motor carrier

17 is challenged by the person paying the freight

18 charges, the Panel shall determine whether such

19 rates and provisions are reasonable or applicable

20 based on the record before it. In those cases where

21 a motor carrier (other than a motor carrier provid22 ing transportation of household goods or in non23 contiguous domestic trade) seeks to collect charges

24 in addition to those billed and collected which are

25 contested by the payor, the carrier may request that

26 the Panel determine whether any additional charges
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1 over those billed and collected must be paid. A car2 rier must issue any bill for charges in addition to

3 those originally billed within 180 days of the receipt

4 of the original bill in order to have the right to col5 lect such charges.

6 ‘‘(3) CHARGES BEFORE EFFECTIVE DATE.—

7 With respect to transportation provided before the

8 effective date of this section, if a shipper seeks to

9 contest the charges originally billed or additional

10 charges subsequently billed, the shipper may request

11 that the Panel determine whether the charges billed

12 must be paid. A shipper must contest the original

13 bill or subsequent bill within 180 days of receipt of

14 the bill in order to have the right to contest such

15 charges.

16 ‘‘(4) VOIDING OF CERTAIN TARIFFS.—Any tar17 iff on file with the Interstate Commerce Commission

18 on August 26, 1994, and not required to be filed

19 after that date is null and void beginning on that

20 date. Any tariff on file with the Interstate Com21 merce Commission on the effective date of this sec22 tion and not required to be filed after that date is

23 null and void beginning on that date.

24 ‘‘(b) RESOLUTION OF DISPUTES OVER STATUS OF

25 COMMON CARRIER OR CONTRACT CARRIER.—If a motor
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1 carrier (other than a motor carrier providing transpor2 tation of household goods) that was subject to jurisdiction

3 under subchapter II of chapter 105, as in effect on the

4 day before the effective date of this section, and that had

5 authority to provide transportation as both a motor com6 mon carrier and a motor contract carrier and a dispute

7 arises as to whether certain transportation that was pro8 vided prior to the effective date of this section was pro9 vided in its common carrier or contract carrier capacity

10 and the parties are not able to resolve the dispute consen11 sually, the Panel shall resolve the dispute.

12 ‘‘§ 13710. Alternative procedure for resolving under13 charge disputes

14 ‘‘(a) GENERAL RULE.—It shall be an unreasonable

15 practice for a motor carrier of property (other than a

16 household goods carrier) providing transportation that

17 was subject to jurisdiction under subchapter II of chapter

18 105 before the effective date of this section, a freight for19 warder (other than a household goods freight forwarder),

20 or a party representing such a carrier or freight forwarder

21 to attempt to charge or to charge for a transportation

22 service the difference between the applicable rate that was

23 lawfully in effect pursuant to a tariff that was filed in

24 accordance with chapter 107 of this title by the carrier

25 or freight forwarder applicable to such transportation
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1 service and the negotiated rate for such transportation

2 service if the carrier or freight forwarder is no longer

3 transporting property between places described in section

4 13501(1) of this title or is transporting property between

5 places described in section 13501(1) of this title for the

6 purpose of avoiding application of this section.

7 ‘‘(b) JURISDICTION OF PANEL.—

8 ‘‘(1) DETERMINATION.—The Panel shall have

9 jurisdiction to make a determination of whether or

10 not attempting to charge or the charging of a rate

11 by a motor carrier or freight forwarder or party rep12 resenting a motor carrier or freight forwarder is an

13 unreasonable practice under subsection (a). If the

14 Panel determines that attempting to charge or the

15 charging of the rate is an unreasonable practice

16 under subsection (a), the carrier, freight forwarder,

17 or party may not collect the difference described in

18 subsection (a) between the applicable rate and the

19 negotiated rate for the transportation service.

20 ‘‘(2) FACTORS TO CONSIDER.—In making a de21 termination under paragraph (1), the Panel shall

22 consider—

23 ‘‘(A) whether the person was offered a

24 transportation rate by the carrier or freight for25 warder or party other than that legally on file
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1 with the Interstate Commerce Commission at

2 the time of the movement for the transportation

3 service;

4 ‘‘(B) whether the person tendered freight

5 to the carrier or freight forwarder in reasonable

6 reliance upon the offered transportation rate;

7 ‘‘(C) whether the carrier or freight for8 warder did not properly or timely file with the

9 Interstate Commerce Commission a tariff pro10 viding for such transportation rate or failed to

11 enter into an agreement for contract carriage;

12 ‘‘(D) whether the transportation rate was

13 billed and collected by the carrier or freight for14 warder; and

15 ‘‘(E) whether the carrier or freight for16 warder or party demands additional payment of

17 a higher rate filed in a tariff.

18 ‘‘(c) STAY OF ADDITIONAL COMPENSATION.—When

19 a person proceeds under this section to challenge the rea20 sonableness of the practice of a motor carrier, freight for21 warder, or party described in subsection (a) to attempt

22 to charge or to charge the difference described in sub23 section (a) between the applicable rate and the negotiated

24 rate for the transportation service in addition to those

25 charges already billed and collected for the transportation
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1 service, the person shall not have to pay any additional

2 compensation to the carrier, freight forwarder, or party

3 until the Panel has made a determination as to the reason4 ableness of the practice as applied to the freight of the

5 person against whom the claim is made.

6 ‘‘(d) TREATMENT.—Subsection (a) is an exception to

7 the requirements of section 13702 and, for transportation

8 provided before the effective date of this section, to the

9 requirements of sections 10761(a) and 10762, relating to

10 a filed tariff rate and other general tariff requirements,

11 as in effect on the day before such effective date.

12 ‘‘(e) NONAPPLICABILITY OF NEGOTIATED RATE DIS13 PUTE RESOLUTION PROCEDURE.—If a person elects to

14 seek enforcement of subsection (a) with respect to a rate

15 for a transportation or service, section 13708 shall not

16 apply to such rate.

17 ‘‘(f) DEFINITIONS.—In this section, the term ‘‘nego18 tiated rate’’ means a rate, charge, classification, or rule

19 agreed upon by a motor carrier or freight forwarder and

20 a shipper through negotiations pursuant to which no tariff

21 was lawfully and timely filed and for which there is written

22 evidence of such agreement.

23 ‘‘§ 13711. Government traffic

24 ‘‘A carrier providing transportation or service for the

25 United States Government may transport property or indi-
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1 viduals for the United States Government without charge

2 or at a rate reduced from the applicable commercial rate.

3 Section 3709 of the Revised Statutes (41 U.S.C. 5) does

4 not apply when transportation for the United States Gov5 ernment can be obtained from a carrier lawfully operating

6 in the area where the transportation would be provided.

7 ‘‘§ 13712. Food and grocery transportation

8 ‘‘(a) CERTAIN COMPENSATION PROHIBITED.—Not9 withstanding any other provision of law, it shall not be

10 unlawful for a seller of food and grocery products using

11 a uniform zone delivered pricing system to compensate a

12 customer who picks up purchased food and grocery prod13 ucts at the shipping point of the seller if such compensa14 tion is available to all customers of the seller on a non15 discriminatory basis and does not exceed the actual cost

16 to the seller of delivery to such customer.

17 ‘‘(b) SENSE OF CONGRESS.—It is the sense of the

18 Congress that any savings accruing to a customer by rea19 son of compensation permitted by subsection (a) of this

20 section should be passed on to the ultimate consumer.

21 ‘‘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.
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1 ‘‘§ 13901. Requirement for registration

2 ‘‘A person may provide transportation or service sub3 ject to jurisdiction under subchapter I or III of chapter

4 135 or be a broker for transportation subject to jurisdic5 tion under subchapter I of that chapter, only if the person

6 is registered under this chapter to provide the transpor7 tation or service.

8 ‘‘§ 13902. Registration of motor carriers

9 ‘‘(a) MOTOR CARRIER GENERALLY.—

10 ‘‘(1) IN GENERAL.—Except as provided in this

11 section, the Secretary shall register a person to pro12 vide transportation subject to jurisdiction under sub13 chapter I of chapter 135 of this title as a motor car14 rier if the Secretary finds that the person is willing

15 and able to comply with—

16 ‘‘(A) this part and the applicable regula17 tions of the Secretary and the Panel;

18 ‘‘(B) any safety regulations imposed by the

19 Secretary and the safety fitness requirements

20 established by the Secretary under section

21 31144; and

22 ‘‘(C) the minimum financial responsibility

23 requirements established by the Secretary pur24 suant to sections 13906 and 31138.

25 ‘‘(2) CONSIDERATION OF EVIDENCE; FIND26 INGS.—The Secretary shall consider and, to the ex-
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1 tent applicable, make findings on, any evidence dem2 onstrating that the registrant is unable to comply

3 with the requirements of subparagraph (A), (B), or

4 (C) of paragraph (1).

5 ‘‘(3) WITHHOLDING.—If the Secretary deter6 mines that any registrant under this section does

7 not meet the requirements of paragraph (1), the

8 Secretary shall withhold registration.

9 ‘‘(4) LIMITATION ON COMPLAINTS.—The Sec10 retary may hear a complaint from any person con11 cerning a registration under this subsection only on

12 the ground that the registrant fails or will fail to

13 comply with this part, the applicable regulations of

14 the Secretary and the Panel, the safety regulations

15 of the Secretary, or the safety fitness or minimum

16 financial responsibility requirements of paragraph

17 (1) of this subsection.

18 ‘‘(b) MOTOR CARRIERS OF PASSENGERS.—

19 ‘‘(1) INTRASTATE TRANSPORTATION.—A motor

20 carrier of passengers that is registered by the Sec21 retary under subsection (a) is authorized to provide

22 regular-route transportation entirely in one State as

23 a motor carrier of passengers if such intrastate

24 transportation is to be provided on a route over
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1 which the carrier provides interstate transportation

2 of passengers.

3 ‘‘(2) PREEMPTION REGARDING CERTAIN EX4 PRESS SERVICE.—No State or political subdivision

5 thereof and no interstate agency or other political

6 agency of 2 or more States shall enact or enforce

7 any law, rule, regulation, standard or other provision

8 having the force and effect of law relating to the

9 provision of pickup and delivery of express packages,

10 newspapers, or mail in a commercial zone if the

11 shipment has had or will have a prior or subsequent

12 movement by bus in intrastate commerce and, if a

13 city within the commercial zone, is served by a

14 motor carrier of passengers providing regular-route

15 transportation of passengers subject to jurisdiction

16 under subchapter I of chapter 135.

17 ‘‘(3) TREATMENT.—Except as provided in sec18 tion 14501(a), any intrastate transportation author19 ized by this subsection shall be treated as transpor20 tation subject to jurisdiction under subchapter I of

21 chapter 135 until the 30th day following the date on

22 which the motor carrier of passengers first begins

23 providing transportation entirely in one State under

24 this paragraph and the carrier takes such action as

25 is necessary to establish under the laws of such
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1 State rates, rules, and practices applicable to such

2 transportation.

3 ‘‘(4) SPECIAL OPERATIONS.—This subsection

4 shall not apply to any regular-route transportation

5 of passengers provided entirely in one State which is

6 in the nature of a special operation.

7 ‘‘(5) SUSPENSION OR REVOCATION.—Intrastate

8 transportation authorized under this subsection may

9 be suspended or revoked by the Secretary under sec10 tion 13905 of this title at any time.

11 ‘‘(c) RESTRICTIONS ON MOTOR CARRIERS DOMI12 CILED IN OR OWNED OR CONTROLLED BY NATIONALS OF

13 A CONTIGUOUS FOREIGN COUNTRY.—

14 ‘‘(1) PREVENTION OF DISCRIMINATORY PRAC15 TICES.—If the President, or the delegate thereof, de16 termines that an act, policy, or practice of a foreign

17 country contiguous to the United States, or any po18 litical subdivision or any instrumentality of any such

19 country is unreasonable or discriminatory and bur20 dens or restricts United States transportation com21 panies providing, or seeking to provide, motor car22 rier transportation to, from, or within such foreign

23 country, the President or such delegate may—

24 ‘‘(A) seek elimination of such practices

25 through consultations; or
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1 ‘‘(B) notwithstanding any other provision

2 of law, suspend, modify, amend, condition, or

3 restrict operations, including geographical re4 striction of operations, in the United States by

5 motor carriers of property or passengers domi6 ciled in such foreign country or owned or con7 trolled by persons of such foreign country.

8 ‘‘(2) EQUALIZATION OF TREATMENT.—Any ac9 tion taken under paragraph (1)(A) to eliminate an

10 act, policy, or practice shall be so devised so as to

11 equal to the extent possible the burdens or restric12 tions imposed by such foreign country on United

13 States transportation companies.

14 ‘‘(3) REMOVAL OR MODIFICATION.—The Presi15 dent, or the delegate thereof, may remove or modify

16 in whole or in part any action taken under para17 graph (1)(A) if the President or such delegate deter18 mines that such removal or modification is consist19 ent with the obligations of the United States under

20 a trade agreement or with United States transpor21 tation policy.

22 ‘‘(4) PROTECTION OF EXISTING OPERATIONS.—

23 Unless and until the President, or the delegate

24 thereof, makes a determination under paragraph (1)

25 or (3), nothing in this subsection shall affect—
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1 ‘‘(A) operations of motor carriers of prop2 erty or passengers domiciled in any contiguous

3 foreign country or owned or controlled by per4 sons of any contiguous foreign country per5 mitted in the commercial zones along the Unit6 ed States-Mexico border as such zones were de7 fined on the day before the effective date of this

8 section; or

9 ‘‘(B) any existing restrictions on oper10 ations of motor carriers of property or pas11 sengers domiciled in any contiguous foreign

12 country or owned or controlled by persons of

13 any contiguous foreign country or any modifica14 tions thereof pursuant to section 6 of the Bus

15 Regulatory Reform Act of 1982.

16 ‘‘(5) PUBLICATION; COMMENT.—Unless the

17 President, or the delegate thereof, determines that

18 expeditious action is required, the President shall

19 publish in the Federal Register any determination

20 under paragraph (1) or (3), together with a descrip21 tion of the facts on which such a determination is

22 based and any proposed action to be taken pursuant

23 to paragraph (1)(B) or (3) and provide an oppor24 tunity for public comment.
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1 ‘‘(6) DELEGATION TO SECRETARY.—The Presi2 dent may delegate any or all authority under this

3 subsection to the Secretary, who shall consult with

4 other agencies as appropriate. In accordance with

5 the directions of the President, the Secretary may

6 issue regulations to enforce this subsection.

7 ‘‘(7) CIVIL ACTIONS.—Either the Secretary or

8 the Attorney General may bring a civil action in an

9 appropriate district court of the United States to en10 force this subsection or a regulation prescribed or

11 order issued under this subsection. The court may

12 award appropriate relief, including injunctive relief.

13 ‘‘(8) LIMITATION ON STATUTORY CONSTRUC14 TION.—This subsection shall not be construed as af15 fecting the requirement for all foreign motor carriers

16 operating in the United States to comply with all ap17 plicable laws and regulations pertaining to fitness,

18 safety of operations, financial responsibility, and

19 taxes imposed by section 4481 of the Internal Reve20 nue Code of 1986.

21 ‘‘§ 13903. Registration of freight forwarders

22 ‘‘(a) IN GENERAL.—The Secretary shall register a

23 person to provide service subject to jurisdiction under sub24 chapter III of chapter 135 as a freight forwarder if the

25 Secretary finds that the person is willing and able to pro-
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1 vide the service and to comply with this part and applica2 ble regulations of the Secretary and the Panel.

3 ‘‘(b) REGISTRATION AS CARRIER REQUIRED.—The

4 freight forwarder may provide transportation as the car5 rier itself only if the freight forwarder also has registered

6 to provide transportation as a carrier under this chapter.

7 ‘‘§ 13904. Registration of motor carrier brokers

8 ‘‘(a) IN GENERAL.—The Secretary shall register,

9 subject to section 13906(b), a person to be a broker for

10 transportation of property subject to jurisdiction under

11 subchapter I of chapter 135, if the Secretary finds that

12 the person is willing and able to be a broker for transpor13 tation and to comply with this part and applicable regula14 tions of the Secretary .

15 ‘‘(b) LIMITATION.—

16 ‘‘(1) REGISTRATION AS CARRIER REQUIRED.—

17 The broker may provide transportation itself only if

18 the broker also has registered to provide transpor19 tation as a carrier under this chapter.

20 ‘‘(2) EXCEPTION.—This subsection does not

21 apply to a motor carrier registered under this chap22 ter or to an employee or agent of the motor carrier

23 to the extent the transportation is to be provided en24 tirely by the motor carrier, with other registered

25 motor carriers, or with rail or water carriers.
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1 ‘‘(c) REGULATIONS TO PROTECT SHIPPERS.—Regu2 lations of the Secretary applicable to brokers registered

3 under this section shall provide for the protection of ship4 pers by motor vehicle.

5 ‘‘(d) BOND AND INSURANCE.—The Secretary may

6 impose on brokers for motor carriers of passengers such

7 requirements for bonds or insurance or both as the Sec8 retary determines are needed to protect passengers and

9 carriers dealing with such brokers.

10 ‘‘§ 13905. Effective periods of registration

11 ‘‘(a) IN GENERAL.—Each registration issued under

12 section 13902, 13903, or 13904 shall be effective from

13 the date specified by the Secretary and shall remain in

14 effect, except as otherwise provided in this part.

15 ‘‘(b) SUSPENSION, AMENDMENTS, AND REVOCA16 TIONS.—On application of the registrant, the Secretary

17 may amend or revoke a registration. On complaint or on

18 the Secretary’s own initiative and after notice and an op19 portunity for a proceeding, the Secretary may suspend,

20 amend, or revoke any part of the registration of a motor

21 carrier, broker, or freight forwarder for willful failure to

22 comply with this part, an applicable regulation or order

23 of the Secretary or of the Panel, or a condition of its reg24 istration.
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1 ‘‘(c) PROCEDURE.—Except on application of the reg2 istrant, the Secretary may revoke a registration of a motor

3 carrier, freight forwarder, or broker, only after—

4 ‘‘(1) the Secretary has issued an order to the

5 registrant under section 14701 requiring compliance

6 with this part, a regulation of the Secretary, or a

7 condition of the registration of the registrant; and

8 ‘‘(2) the registrant willfully does not comply

9 with the order for a period of 30 days.

10 ‘‘(d) EXPEDITED PROCEDURE.—

11 ‘‘(1) PROTECTION OF SAFETY.—Without regard

12 to subchapter II of chapter 5 of title 5, the Sec13 retary may suspend the registration of a motor car14 rier, a freight forwarder, or a broker for failure to

15 comply with safety requirements of the Secretary or

16 the safety fitness requirements pursuant to section

17 13904(c), 13906, or 31144, of this title, or an order

18 or regulation of the Secretary prescribed under those

19 sections.

20 ‘‘(2) IMMINENT HAZARD TO PUBLIC HEALTH.—

21 Without regard to subchapter II of chapter 5 of title

22 5, the Secretary may suspend a registration of a

23 motor carrier of passengers if the Secretary finds

24 that such carrier has been conducting unsafe oper-
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1 ations which are an imminent hazard to public

2 health or property.

3 ‘‘(3) NOTICE; PERIOD OF SUSPENSION.—The

4 Secretary may suspend under this subsection the

5 registration only after giving notice of the suspen6 sion to the registrant. The suspension remains in ef7 fect until the registrant complies with those applica8 ble sections or, in the case of a suspension under

9 paragraph (2), until the Secretary revokes such sus10 pension.

11 ‘‘§ 13906. Security of motor carriers, brokers, and

12 freight forwarders

13 ‘‘(a) MOTOR CARRIER REQUIREMENTS.—

14 ‘‘(1) LIABILITY INSURANCE REQUIREMENT.—

15 The Secretary may register a motor carrier under

16 section 13902 only if the registrant files with the

17 Secretary a bond, insurance policy, or other type of

18 security approved by the Secretary, in an amount

19 not less than such amount as the Secretary pre20 scribes pursuant to, or as is required by, sections

21 31138 and 31139, and the laws of the State or

22 States in which the registrant is operating, to the

23 extent applicable. The security must be sufficient to

24 pay, not more than the amount of the security, for

25 each final judgment against the registrant for bodily
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1 injury to, or death of, an individual resulting from

2 the negligent operation, maintenance, or use of

3 motor vehicles, or for loss or damage to property

4 (except property referred to in paragraph (3) of this

5 subsection), or both. A registration remains in effect

6 only as long as the registrant continues to satisfy

7 the security requirements of this paragraph.

8 ‘‘(2) AGENCY REQUIREMENT.—A motor carrier

9 shall comply with the requirements of sections

10 13303 and 13304. To protect the public, the Sec11 retary may require any such motor carrier to file the

12 type of security that a motor carrier is required to

13 file under paragraph (1) of this subsection. This

14 paragraph only applies to a foreign motor private

15 carrier and foreign motor carrier operating in the

16 United States to the extent that such carrier is pro17 viding transportation between places in a foreign

18 country or between a place in one foreign country

19 and a place in another foreign country.

20 ‘‘(3) TRANSPORTATION INSURANCE.—The Sec21 retary may require a registered motor carrier to file

22 with the Secretary a type of security sufficient to

23 pay a shipper or consignee for damage to property

24 of the shipper or consignee placed in the possession

25 of the motor carrier as the result of transportation
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1 provided under this part. A carrier required by law

2 to pay a shipper or consignee for loss, damage, or

3 default for which a connecting motor carrier is re4 sponsible is subrogated, to the extent of the amount

5 paid, to the rights of the shipper or consignee under

6 any such security.

7 ‘‘(b) BROKER REQUIREMENTS.—The Secretary may

8 register a person as a broker under section 13904 only

9 if the person files with the Secretary a bond, insurance

10 policy, or other type of security approved by the Secretary

11 to ensure that the transportation for which a broker ar12 ranges is provided. The registration remains in effect only

13 as long as the broker continues to satisfy the security re14 quirements of this subsection.

15 ‘‘(c) FREIGHT FORWARDER REQUIREMENTS.—

16 ‘‘(1) LIABILITY INSURANCE.—The Secretary

17 may register a person as a freight forwarder under

18 section 13903 of this title only if the person files

19 with the Secretary a bond, insurance policy, or other

20 type of security approved by the Secretary. The se21 curity must be sufficient to pay, not more than the

22 amount of the security, for each final judgment

23 against the freight forwarder for bodily injury to, or

24 death of, an individual, or loss of, or damage to,

25 property (other than property referred to in para-
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1 graph (2) of this subsection), resulting from the neg2 ligent operation, maintenance, or use of motor vehi3 cles by or under the direction and control of the

4 freight forwarder when providing transfer, collection,

5 or delivery service under this part.

6 ‘‘(2) FREIGHT FORWARDER INSURANCE.—The

7 Secretary may require a registered freight forwarder

8 to file with the Secretary a bond, insurance policy,

9 or other type of security approved by the Secretary

10 sufficient to pay, not more than the amount of the

11 security, for loss of, or damage to, property for

12 which the freight forwarder provides service.

13 ‘‘(3) EFFECTIVE PERIOD.—The freight for14 warder’s registration remains in effect only as long

15 as the freight forwarder continues to satisfy the se16 curity requirements of this subsection.

17 ‘‘(d) TYPE OF INSURANCE.—The Secretary may de18 termine the type and amount of security filed under this

19 section. A motor carrier may submit proof of qualifications

20 as a self-insurer to satisfy the security requirements of

21 this section. The Secretary shall adopt regulations govern22 ing the standards for approval as a self-insurer. Motor

23 carriers which have been granted authority to self-insure

24 as of the effective date of this section shall retain that

25 authority unless, for good cause shown and after notice
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1 and an opportunity for a hearing, the Secretary finds that

2 the authority must be revoked.

3 ‘‘(e) NOTICE OF CANCELLATION OF INSURANCE.—

4 The Secretary shall issue regulations requiring the sub5 mission to the Secretary of notices of insurance cancella6 tion sufficiently in advance of actual cancellation so as to

7 enable the Secretary to promptly revoke the registration

8 of any carrier or broker after the effective date of the can9 cellation.

10 ‘‘(f) FORM OF ENDORSEMENT.—The Secretary shall

11 also prescribe the appropriate form of endorsement to be

12 appended to policies of insurance and surety bonds which

13 will subject the insurance policy or surety bond to the full

14 security limits of the coverage required under this section.

15 ‘‘§ 13907. Household goods agents

16 ‘‘(a) CARRIERS RESPONSIBLE FOR AGENTS.—Each

17 motor carrier providing transportation of household goods

18 subject to jurisdiction under subchapter I of chapter 135

19 shall be responsible for all acts or omissions of any of its

20 agents which relate to the performance of household goods

21 transportation services (including accessorial or terminal

22 services) subject to jurisdiction under subchapter I of

23 chapter 135 and which are within the actual or apparent

24 authority of the agent from the carrier or which are rati25 fied by the carrier.
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1 ‘‘(b) STANDARD FOR SELECTING AGENTS.—Each

2 motor carrier providing transportation of household goods

3 subject to jurisdiction under subchapter I of chapter 135

4 shall use due diligence and reasonable care in selecting

5 and maintaining agents who are sufficiently knowledge6 able, fit, willing, and able to provide adequate household

7 goods transportation services (including accessorial and

8 terminal services) and to fulfill the obligations imposed

9 upon them by this part and by such carrier.

10 ‘‘(c) ENFORCEMENT.—

11 ‘‘(1) COMPLAINT.—Whenever the Secretary has

12 reason to believe from a complaint or investigation

13 that an agent providing household goods transpor14 tation services (including accessorial and terminal

15 services) under the authority of a motor carrier pro16 viding transportation of household goods subject to

17 jurisdiction under subchapter I of chapter 135 has

18 violated section 14901(e) or 14912 or is consistently

19 not fit, willing, and able to provide adequate house20 hold goods transportation services (including acces21 sorial and terminal services), the Secretary may

22 issue to such agent a complaint stating the charges

23 and containing notice of the time and place of a

24 hearing which shall be held no later than 60 days

25 after service of the complaint to such agent.
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1 ‘‘(2) RIGHT TO DEFEND.—The agent shall have

2 the right to appear at such hearing and rebut the

3 charges contained in the complaint.

4 ‘‘(3) ORDER.—If the agent does not appear at

5 the hearing or if the Secretary finds that the agent

6 has violated section 14901(e) or 14912 or is consist7 ently not fit, willing, and able to provide adequate

8 household goods transportation services (including

9 accessorial and terminal services), the Secretary may

10 issue an order to compel compliance with the re11 quirement that the agent be fit, willing, and able.

12 Thereafter, the Secretary may issue an order to

13 limit, condition, or prohibit such agent from any in14 volvement in the transportation or provision of serv15 ices incidental to the transportation of household

16 goods subject to jurisdiction under subchapter I of

17 chapter 135 if, after notice and an opportunity for

18 a hearing, the Secretary finds that such agent, with19 in a reasonable time after the date of issuance of a

20 compliance order under this section, but in no event

21 less than 30 days after such date of issuance, has

22 willfully failed to comply with such order.

23 ‘‘(4) HEARING.—Upon filing of a petition with

24 the Secretary by an agent who is the subject of an

25 order issued pursuant to the second sentence of
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1 paragraph (3) of this subsection and after notice, a

2 hearing shall be held with an opportunity to be

3 heard. At such hearing, a determination shall be

4 made whether the order issued pursuant to para5 graph (3) of this subsection should be rescinded.

6 ‘‘(5) COURT REVIEW.—Any agent adversely af7 fected or aggrieved by an order of the Secretary is8 sued under this subsection may seek relief in the ap9 propriate United States court of appeals as provided

10 by and in the manner prescribed in chapter 158 of

11 title 28, United States Code.

12 ‘‘(d) LIMITATION ON APPLICABILITY OF ANTITRUST

13 LAWS.—

14 ‘‘(1) IN GENERAL.—The antitrust laws, as de15 fined in the first section of the Clayton Act (15

16 U.S.C. 12), do not apply to discussions or agree17 ments between a motor carrier providing transpor18 tation of household goods subject to jurisdiction

19 under subchapter I of chapter 135 and its agents

20 (whether or not an agent is also a carrier) related

21 solely to—

22 ‘‘(A) rates for the transportation of house23 hold goods under the authority of the principal

24 carrier;
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1 ‘‘(B) accessorial, terminal, storage, or

2 other charges for services incidental to the

3 transportation of household goods transported

4 under the authority of the principal carrier;

5 ‘‘(C) allowances relating to transportation

6 of household goods under the authority of the

7 principal carrier; and

8 ‘‘(D) ownership of a motor carrier provid9 ing transportation of household goods subject to

10 jurisdiction under subchapter I of chapter 135

11 by an agent or membership on the board of di12 rectors of any such motor carrier by an agent.

13 ‘‘(2) PANEL REVIEW.—The Panel, upon its own

14 initiative or request, shall review any activities un15 dertaken under paragraph (1) and shall modify or

16 terminate the activity if necessary to protect the

17 public interest.

18 ‘‘§ 13908. Registration and other reforms

19 ‘‘(a) REGULATIONS REPLACING CERTAIN PRO20 GRAMS.—The Secretary, in cooperation with the States,

21 shall issue regulations to replace the current Department

22 of Transportation identification number system, the single

23 State registration system under section 14504, the reg24 istration system contained in chapter 139, and the finan25 cial responsibility information system under section 13906
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1 with a single system. The new system shall serve as a

2 clearinghouse and depository of information on and identi3 fication of all foreign and domestic motor carriers, bro4 kers, freight forwarders, and others required to register

5 with the Department as well as information on safety fit6 ness and compliance with required levels of financial re7 sponsibility.

8 ‘‘(b) FACTORS TO BE CONSIDERED.—In conducting

9 the rulemaking under subsection (a) with respect to the

10 single State registration system under section 14504, the

11 Secretary shall, at a minimum, consider the following fac12 tors:

13 ‘‘(1) Funding for State enforcement of motor

14 carrier safety regulations.

15 ‘‘(2) Whether the existing single State registra16 tion system is duplicative and burdensome.

17 ‘‘(3) The justification and need for collecting

18 the statutory fee for such system under section

19 14504(c)(2)(B)(iv).

20 ‘‘(4) The public safety.

21 ‘‘(5) The efficient delivery of transportation

22 services.

23 ‘‘(c) FEE SYSTEM.—The Secretary may establish fees

24 as part of any system implemented under subsection (a).

25 The system operation and upgrade, including all personnel
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1 costs associated with the system, shall be fully supported

2 by user fees collected.

3 ‘‘(d) DEADLINE FOR CONCLUSION; MODIFICA4 TIONS.—Not later than 18 months after the effective date

5 of this section, the Secretary—

6 ‘‘(1) shall conclude the rulemaking under this

7 section;

8 ‘‘(2) may implement such changes under this

9 section as the Secretary considers appropriate and in

10 the public interest; and

11 ‘‘(3) shall transmit to Congress a report on any

12 findings of the rulemaking and the changes being

13 implemented under this section, together with such

14 recommendations for legislative language necessary

15 to conform this part to such changes.

16 ‘‘CHAPTER 141—OPERATIONS OF

17 CARRIERS

‘‘SUBCHAPTER I—GENERAL REQUIREMENTS

‘‘Sec.

‘‘14101. Providing transportation and service.

‘‘14102. Leased motor vehicles.

‘‘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.
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1 ‘‘SUBCHAPTER I—GENERAL REQUIREMENTS

2 ‘‘§ 14101. Providing transportation and service

3 ‘‘(a) ON REASONABLE REQUEST.—A carrier provid4 ing transportation or service subject to jurisdiction under

5 chapter 135 shall provide the transportation or service on

6 reasonable request. In addition, a motor carrier shall pro7 vide 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 ship12 per, other than for the movement of household goods

13 described in section 13102(9)(A), to provide speci14 fied services under specified rates and conditions. If

15 the shipper, in writing, expressly waives all rights

16 and remedies under this part for the transportation

17 covered 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.—

22 The exclusive remedy for any alleged breach of a

23 contract entered into under this subsection shall be

24 an action in an appropriate State court or United
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1 States district court, unless the parties otherwise

2 agree.

3 ‘‘§ 14102. Leased motor vehicles

4 ‘‘(a) GENERAL AUTHORITY OF SECRETARY.—The

5 Secretary may require a motor carrier providing transpor6 tation subject to jurisdiction under subchapter I of chapter

7 135 that uses motor vehicles not owned by it to transport

8 property under an arrangement with another party to—

9 ‘‘(1) make the arrangement in writing signed

10 by the parties specifying its duration and the com11 pensation to be paid by the motor carrier;

12 ‘‘(2) carry a copy of the arrangement in each

13 motor vehicle to which it applies during the period

14 the arrangement is in effect;

15 ‘‘(3) inspect the motor vehicles and obtain li16 ability and cargo insurance on them; and

17 ‘‘(4) have control of and be responsible for op18 erating those motor vehicles in compliance with re19 quirements prescribed by the Secretary on safety of

20 operations and equipment, and with other applicable

21 law as if the motor vehicles were owned by the

22 motor carrier.

23 ‘‘(b) RESPONSIBLE PARTY FOR LOADING AND UN24 LOADING.—The Secretary shall require, by regulation,

25 that any arrangement, between a motor carrier of property
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1 providing transportation subject to jurisdiction under sub2 chapter I of chapter 135 and any other person, under

3 which such other person is to provide any portion of such

4 transportation by a motor vehicle not owned by the carrier

5 shall specify, in writing, who is responsible for loading and

6 unloading the property onto and from the motor vehicle.

7 ‘‘§ 14103. Loading and unloading motor vehicles

8 ‘‘(a) SHIPPER RESPONSIBLE FOR ASSISTING.—

9 Whenever a shipper or receiver of property requires that

10 any person who owns or operates a motor vehicle trans11 porting property in interstate commerce (whether or not

12 such transportation is subject to jurisdiction under sub13 chapter I of chapter 135) be assisted in the loading or

14 unloading of such vehicle, the shipper or receiver shall be

15 responsible for providing such assistance or shall com16 pensate the owner or operator for all costs associated with

17 securing and compensating the person or persons provid18 ing such assistance.

19 ‘‘(b) COERCION PROHIBITED.—It shall be unlawful

20 to coerce or attempt to coerce any person providing trans21 portation of property by motor vehicle for compensation

22 in interstate commerce (whether or not such transpor23 tation is subject to jurisdiction under subchapter I of

24 chapter 135) to load or unload any part of such property

25 onto or from such vehicle or to employ or pay one or more
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1 persons to load or unload any part of such property onto

2 or from such vehicle; except that this subsection shall not

3 be construed as making unlawful any activity which is not

4 unlawful under the National Labor Relations Act or the

5 Act of March 23, 1932 (47 Stat. 70; 29 U.S.C. 101 et

6 seq.), commonly known as the Norris-LaGuardia Act.

7 ‘‘§ 14104. Household goods carrier operations

8 ‘‘(a) GENERAL REGULATORY AUTHORITY.—

9 ‘‘(1) PAPERWORK MINIMIZATION.—The Sec10 retary may issue regulations, including regulations

11 protecting individual shippers, in order to carry out

12 this part with respect to the transportation of house13 hold goods by motor carriers subject to jurisdiction

14 under subchapter I of chapter 135. The regulations

15 and paperwork required of motor carriers providing

16 transportation of household goods shall be mini17 mized to the maximum extent feasible consistent

18 with the protection of individual shippers.

19 ‘‘(2) PERFORMANCE STANDARDS.—

20 ‘‘(A) IN GENERAL.—Regulations of the

21 Secretary protecting individual shippers shall

22 include, where appropriate, reasonable perform23 ance standards for the transportation of house24 hold goods subject to jurisdiction under sub25 chapter I of chapter 135.
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1 ‘‘(B) FACTORS TO CONSIDER.—In estab2 lishing 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 viola10 tion of the regulation;

11 ‘‘(iii) the need to set the level of per12 formance at a level sufficient to deter

13 abuses which result in harm to consumers

14 and violations 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

19 from 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
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1 limit the Secretary’s authority to require reports

2 from motor carriers providing transportation of

3 household goods or to require such carriers to pro4 vide specified information to consumers concerning

5 their past performance.

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

11 a prospective shipper, may provide the shipper with

12 an estimate of charges for transportation of house13 hold goods and for the proposed services. The Sec14 retary shall not prohibit any such carrier from

15 charging a prospective shipper for providing a writ16 ten, binding estimate for the transportation and pro17 posed services.

18 ‘‘(2) APPLICABILITY OF ANTITRUST LAWS.—

19 Any charge for an estimate of charges provided by

20 a motor carrier to a shipper for transportation of

21 household goods subject to jurisdiction under sub22 chapter I of chapter 135 shall be subject to the anti23 trust laws, as defined in the first section of the Clay24 ton Act (15 U.S.C. 12).
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1 ‘‘(c) FLEXIBILITY IN WEIGHING SHIPMENTS.—The

2 Secretary shall issue regulations that provide motor car3 riers providing transportation of household goods subject

4 to jurisdiction under subchapter I of chapter 135 with the

5 maximum possible flexibility in weighing shipments, con6 sistent with assurance to the shipper of accurate weighing

7 practices. The Secretary shall not prohibit such carriers

8 from backweighing shipments or from basing their charges

9 on the reweigh weights if the shipper observes both the

10 tare and gross weighings (or, prior to such weighings,

11 waives in writing the opportunity to observe such

12 weighings) and such weighings are performed on the same

13 scale.

14 ‘‘SUBCHAPTER II—REPORTS AND RECORDS

15 ‘‘§ 14121. Definitions

16 ‘‘In this subchapter, the following definitions apply:

17 ‘‘(1) CARRIER AND BROKER.—The terms ‘car18 rier’ and ‘broker’ include a receiver or trustee of a

19 carrier and broker, respectively.

20 ‘‘(2) ASSOCIATION.—The term ‘association’

21 means an organization maintained by or in the in22 terest of a group of carriers or brokers providing

23 transportation or service subject to jurisdiction

24 under chapter 135 that performs a service, or en-
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1 gages in activities, related to transportation under

2 this part.

3 ‘‘§ 14122. Records: form; inspection; preservation

4 ‘‘(a) FORM OF RECORDS.—The Secretary or the

5 Panel, as applicable, may prescribe the form of records

6 required to be prepared or compiled under this subchapter

7 by carriers and brokers, including records related to move8 ment of traffic and receipts and expenditures of money.

9 ‘‘(b) RIGHT OF INSPECTION.—The Secretary or

10 Panel, or an employee designated by the Secretary or

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

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

13 and equipment of a carrier or broker; and

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

15 ‘‘(A) a carrier, broker, or association; and

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

17 under common control with a carrier if the Sec18 retary or Panel, as applicable, considers inspec19 tion relevant to that person’s relation to, or

20 transaction with, that carrier.

21 ‘‘(c) PERIOD FOR PRESERVATION OF RECORDS.—

22 The Secretary or Panel, as applicable, may prescribe the

23 time period during which operating, accounting, and fi24 nancial records must be preserved by carriers.
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1 ‘‘§ 14123. Financial reporting

2 øTo be supplied¿

3 ‘‘CHAPTER 143—FINANCE

‘‘Sec.

‘‘14301. Security interests in certain motor vehicles.

‘‘14302. Pooling and division of transportation or earnings.

4 ‘‘§ 14301. Security interests in certain motor vehicles

5 ‘‘(a) DEFINITIONS.—In this section, the following

6 definitions apply:

7 ‘‘(1) MOTOR VEHICLE.—The term ‘motor vehi8 cle’ means a truck of rated capacity (gross vehicle

9 weight) of at least 10,000 pounds, a highway tractor

10 of rated capacity (gross combination weight) of at

11 least 10,000 pounds, a property-carrying trailer or

12 semitrailer with at least one load-carrying axle of at

13 least 10,000 pounds, or a motor bus with a seating

14 capacity of at least 10 individuals.

15 ‘‘(2) LIEN CREDITOR.—The term ‘lien creditor’

16 means a creditor having a lien on a motor vehicle

17 and includes an assignee for benefit of creditors

18 from the date of assignment, a trustee in a case

19 under title 11 from the date of filing of the petition

20 in that case, and a receiver in equity from the date

21 of appointment of the receiver.

22 ‘‘(3) SECURITY INTEREST.—The term ‘security

23 interest’ means an interest (including an interest es24 tablished by a conditional sales contract, mortgage,
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1 equipment trust, or other lien or title retention con2 tract, or lease) in a motor vehicle when the interest

3 secures payment or performance of an obligation.

4 ‘‘(4) PERFECTION.—The term ‘perfection’, as

5 related to a security interest, means taking action

6 (including public filing, recording, notation on a cer7 tificate of title, and possession of collateral by the

8 secured party), or the existence of facts, required

9 under law to make a security interest enforceable

10 against general creditors and subsequent lien credi11 tors of a debtor, but does not include compliance

12 with requirements related only to the establishment

13 of a valid security interest between the debtor and

14 the secured party.

15 ‘‘(b) REQUIREMENTS FOR PERFECTION OF SECURITY

16 INTEREST.—A security interest in a motor vehicle owned

17 by, or in the possession and use of, a carrier registered

18 under section 13902 of this title and owing payment or

19 performance of an obligation secured by that security in20 terest is perfected in all jurisdictions against all general,

21 and subsequent lien, creditors of, and all persons taking

22 a motor vehicle by sale (or taking or retaining a security

23 interest in a motor vehicle) from, that carrier when—

24 ‘‘(1) a certificate of title is issued for a motor

25 vehicle under a law of a jurisdiction that requires or
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1 permits indication, on a certificate or title, of a secu2 rity interest in the motor vehicle if the security in3 terest is indicated on the certificate;

4 ‘‘(2) a certificate of title has not been issued

5 and the law of the State where the principal place

6 of business of that carrier is located requires or per7 mits public filing or recording of, or in relation to,

8 that security interest if there has been such a public

9 filing or recording; and

10 ‘‘(3) a certificate of title has not been issued

11 and the security interest cannot be perfected under

12 paragraph (2) of this subsection, if the security in13 terest has been perfected under the law (including

14 the conflict of laws rules) of the State where the

15 principal place of business of that carrier is located.

16 ‘‘§ 14302. Pooling and division of transportation or

17 earnings

18 ‘‘(a) APPROVAL REQUIRED.—A carrier providing

19 transportation subject to jurisdiction under subchapter I

20 of chapter 135 of this title may not agree or combine with

21 another such carrier to pool or divide traffic or services

22 or any part of their earnings without the approval of the

23 Panel under this section.

24 ‘‘(b) STANDARDS FOR APPROVAL.—The Panel may

25 approve and authorize an agreement or combination be-
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1 tween or among motor carriers of passengers, or between

2 a motor carrier of passengers and a rail carrier of pas3 sengers if the carriers involved assent to the pooling or

4 division and the Panel finds that a pooling or division of

5 traffic, services, or earnings—

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

7 the public or of economy of operation; and

8 ‘‘(2) will not unreasonably restrain competition.

9 ‘‘(c) PROCEDURE.—

10 ‘‘(1) APPLICATION.—Any motor carrier of prop11 erty may apply to the Panel for approval of an

12 agreement or combination with another such carrier

13 to pool or divide traffic or any services or any part

14 of their earnings by filing such agreement or com15 bination with the Panel not less than 50 days before

16 its effective date.

17 ‘‘(2) DETERMINATION OF IMPORTANCE AND RE18 STRAINT ON COMPETITION.—Prior to the effective

19 date of the agreement or combination, the Panel

20 shall determine whether the agreement or combina21 tion is of major transportation importance and

22 whether there is substantial likelihood that the

23 agreement or combination will unduly restrain com24 petition. If the Panel determines that neither of

25 these 2 factors exists, it shall, prior to such effective
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1 date and without a hearing, approve and authorize

2 the agreement or combination, under such rules and

3 regulations as the Panel may issue, and for such

4 consideration between such carriers and upon such

5 terms and conditions as shall be found by the Panel

6 to be just and reasonable.

7 ‘‘(3) HEARING.—If the Panel determines either

8 that the agreement or combination is of major trans9 portation importance or that there is substantial

10 likelihood that the agreement or combination will

11 unduly restrain competition, the Panel shall hold a

12 hearing concerning whether the agreement or com13 bination will be in the interest of better service to

14 the public or of economy in operation and whether

15 it will unduly restrain competition and shall suspend

16 operation of such agreement or combination pending

17 such hearing and final decision thereon. After such

18 hearing, the Panel shall indicate to what extent it

19 finds that the agreement or combination will be in

20 the interest of better service to the public or of econ21 omy in operation and will not unduly restrain com22 petition and if assented to by all the carriers in23 volved, shall to that extent, approve and authorize

24 the agreement or combination, under such rules and

25 regulations as the Panel may issue, and for such
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1 consideration between such carriers and upon such

2 terms and conditions as shall be found by the Panel

3 to be just and reasonable.

4 ‘‘(4) SPECIAL RULES FOR HOUSEHOLD GOODS

5 CARRIERS.—In the case of an application for Panel

6 approval of an agreement or combination between a

7 motor carrier providing transportation of household

8 goods and its agents to pool or divide traffic or serv9 ices or any part of their earnings, such agreement

10 or combination shall be presumed to be in the inter11 est of better service to the public and of economy in

12 operation and not to restrain competition unduly if

13 the practices proposed to be carried out under such

14 agreement or combination are the same as or similar

15 to practices carried out under agreements and com16 binations between motor carriers providing transpor17 tation of household goods to pool or divide traffic or

18 service of any part of their earnings approved by the

19 Interstate Commerce Commission before the effec20 tive date of this section.

21 ‘‘(5) STREAMLINING AND SIMPLIFYING.—The

22 Panel shall streamline, simplify, and expedite, to the

23 maximum extent practicable, the process (including

24 any paperwork) for submission and approval of ap25 plications under this section for agreements and
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1 combinations between motor carriers providing

2 transportation of household goods and their agents.

3 ‘‘(d) CONDITIONS.—The Panel may impose condi4 tions governing the pooling or division and may approve

5 and authorize payment of a reasonable consideration be6 tween the carriers.

7 ‘‘(e) INITIATION OF PROCEEDING.—The Panel may

8 begin a proceeding under this section on its own initiative

9 or on application.

10 ‘‘(f) EFFECT OF APPROVAL.—A carrier may partici11 pate in an arrangement approved by or exempted by the

12 Panel under this section without the approval of any other

13 Federal, State, or municipal body. A carrier participating

14 in an approved or exempted arrangement is exempt from

15 the antitrust laws and from all other law, including State

16 and municipal law, as necessary to let that person carry

17 out the arrangement.

18 ‘‘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.

19 ‘‘§ 14501. Federal authority over intrastate transpor20 tation

21 ‘‘(a) MOTOR CARRIERS OF PASSENGERS.—No State

22 or political subdivision thereof and no interstate agency
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1 or other political agency of two or more States shall enact

2 or enforce any law, rule, regulation, standard, or other

3 provision having the force and effect of law relating to

4 scheduling of interstate or intrastate transportation (in5 cluding discontinuance or reduction in the level of service)

6 provided by motor carrier of passengers subject to juris7 diction under subchapter I of chapter 135 of this title on

8 an interstate route or relating to the implementation of

9 any change in the rates for such transportation or for any

10 charter transportation except to the extent that notice, not

11 in excess of 30 days, of changes in schedules may be re12 quired. This subsection shall not apply to intrastate com13 muter bus operations.

14 ‘‘(b) FREIGHT FORWARDERS AND BROKERS.—

15 ‘‘(1) GENERAL RULE.—Subject to paragraph

16 (2) of this subsection, no State or political subdivi17 sion thereof and no intrastate agency or other politi18 cal agency of two or more States shall enact or en19 force any law, rule, regulation, standard, or other

20 provision having the force and effect of law relating

21 to intrastate rates, intrastate routes, or intrastate

22 services of any freight forwarder or broker.

23 ‘‘(2) CONTINUATION OF HAWAII’S AUTHOR24 ITY.—Nothing in this subsection and the amend25 ments made by the Surface Freight Forwarder De-
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1 regulation Act of 1986 shall be construed to affect

2 the authority of the State of Hawaii to continue to

3 regulate a motor carrier operating within the State

4 of Hawaii.

5 ‘‘(c) MOTOR CARRIERS OF PROPERTY.—

6 ‘‘(1) GENERAL RULE.—Except as provided in

7 paragraphs (2) and (3), a State, political subdivision

8 of a State, or political authority of 2 or more States

9 may not enact or enforce a law, regulation, or other

10 provision having the force and effect of law related

11 to a price, route, or service of any motor carrier

12 (other than a carrier affiliated with a direct air car13 rier covered by section 41713(b)(4)) or any motor

14 private carrier, broker, or freight forwarder with re15 spect to the transportation of property.

16 ‘‘(2) MATTERS NOT COVERED.—Paragraph

17 (1)—

18 ‘‘(A) shall not restrict the safety regulatory

19 authority of a State with respect to motor vehi20 cles, the authority of a State to impose highway

21 route controls or limitations based on the size

22 or weight of the motor vehicle or the hazardous

23 nature of the cargo, or the authority of a State

24 to regulate motor carriers with regard to mini25 mum amounts of financial responsibility relat-
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1 ing to insurance requirements and self-insur2 ance authorization;

3 ‘‘(B) does not apply to the transportation

4 of household goods; and

5 ‘‘(C) does not apply to the authority of a

6 State or a political subdivision of a State to

7 enact or enforce a law, regulation, or other pro8 vision relating to the price of for-hire motor ve9 hicle transportation by a tow truck, if such

10 transportation is performed—

11 ‘‘(i) at the request of a law enforce12 ment officer; or

13 ‘‘(ii) without the prior consent or au14 thorization of the owner or operator of the

15 motor vehicle.

16 ‘‘(3) STATE STANDARD TRANSPORTATION PRAC17 TICES.—

18 ‘‘(A) CONTINUATION.—Paragraph (1) shall

19 not affect any authority of a State, political

20 subdivision of a State, or political authority of

21 2 or more States to enact or enforce a law, reg22 ulation, or other provision, with respect to the

23 intrastate transportation of property by motor

24 carriers, related to—

25 ‘‘(i) uniform cargo liability rules,
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1 ‘‘(ii) uniform bills of lading or receipts

2 for property being transported,

3 ‘‘(iii) uniform cargo credit rules, or

4 ‘‘(iv) antitrust immunity for joint line

5 rates or routes, classifications, and mileage

6 guides,

7 if such law, regulation, or provision meets the

8 requirements of subparagraph (B).

9 ‘‘(B) REQUIREMENTS.—A law, regulation,

10 or provision of a State, political subdivision, or

11 political authority meets the requirements of

12 this subparagraph if—

13 ‘‘(i) the law, regulation, or provision

14 covers the same subject matter as, and

15 compliance with such law, regulation, or

16 provision is no more burdensome than

17 compliance with, a provision of this part or

18 a regulation issued by the Secretary or the

19 Panel under this part; and

20 ‘‘(ii) the law, regulation, or provision

21 only applies to a carrier upon request of

22 such carrier.

23 ‘‘(C) ELECTION.—Notwithstanding any

24 other provision of law, a carrier affiliated with

25 a direct air carrier through common controlling
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1 ownership may elect to be subject to a law, reg2 ulation, or provision of a State, political sub3 division, or political authority under this para4 graph.

5 ‘‘(4) This subsection shall not apply with re6 spect to the State of Hawaii until August 22, 1997.

7 ‘‘§ 14502. Tax discrimination against motor carrier

8 transportation property

9 ‘‘(a) DEFINITIONS.—In this section, the following

10 definitions apply:

11 ‘‘(1) ASSESSMENT.—The term ‘assessment’

12 means valuation for a property tax levied by a taxing

13 district.

14 ‘‘(2) ASSESSMENT JURISDICTION.—The term

15 ‘assessment jurisdiction’ means a geographical area

16 in a State used in determining the assessed value of

17 property for ad valorem taxation.

18 ‘‘(3) MOTOR CARRIER TRANSPORTATION PROP19 ERTY.—The term ‘motor carrier transportation

20 property’ means property, as defined by the Sec21 retary, owned or used by a motor carrier providing

22 transportation in interstate commerce whether or

23 not such transportation is subject to jurisdiction

24 under subchapter I of chapter 135.
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1 ‘‘(4) COMMERCIAL AND INDUSTRIAL PROP2 ERTY.—The term ‘commercial and industrial prop3 erty’ means property, other than transportation

4 property and land used primarily for agricultural

5 purposes or timber growing, devoted to a commercial

6 or industrial use, and subject to a property tax levy.

7 ‘‘(b) ACTS BURDENING INTERSTATE COMMERCE.—

8 The following acts unreasonably burden and discriminate

9 against interstate commerce and a State, subdivision of

10 a State, or authority acting for a State or subdivision of

11 a State may not do any of them:

12 ‘‘(1) EXCESSIVE VALUATION OF PROPERTY.—

13 Assess motor carrier transportation property at a

14 value that has a higher ratio to the true market

15 value of the motor carrier transportation property

16 than the ratio that the assessed value of other com17 mercial and industrial property in the same assess18 ment jurisdiction has to the true market value of the

19 other commercial and industrial property.

20 ‘‘(2) TAX ON ASSESSMENT.—Levy or collect a

21 tax on an assessment that may not be made under

22 paragraph (1).

23 ‘‘(3) AD VALOREM TAX.—Levy or collect an ad

24 valorem property tax on motor carrier transportation

25 property at a tax rate that exceeds the tax rate ap-
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1 plicable to commercial and industrial property in the

2 same assessment jurisdiction.

3 ‘‘(c) JURISDICTION.—

4 ‘‘(1) IN GENERAL.—Notwithstanding section

5 1341 of title 28 and without regard to the amount

6 in controversy or citizenship of the parties, a district

7 court of the United States has jurisdiction, concur8 rent with other jurisdiction of courts of the United

9 States and the States, to prevent a violation of sub10 section (b) of this section.

11 ‘‘(2) LIMITATION IN RELIEF.—Relief may be

12 granted under this subsection only if the ratio of as13 sessed value to true market value of motor carrier

14 transportation property exceeds by at least 5 per15 cent, the ratio of assessed value to true market value

16 of other commercial and industrial property in the

17 same assessment jurisdiction.

18 ‘‘(3) BURDEN OF PROOF.—The burden of proof

19 in determining assessed value and true market value

20 is governed by State law.

21 ‘‘(4) VIOLATION.—If the ratio of the assessed

22 value of other commercial and industrial property in

23 the assessment jurisdiction to the true market value

24 of all other commercial and industrial property can25 not be determined to the satisfaction of the district
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1 court through the random-sampling method known

2 as a sales assessment ratio study (to be carried out

3 under statistical principles applicable to such a

4 study), the court shall find, as a violation of this sec5 tion—

6 ‘‘(A) an assessment of the motor carrier

7 transportation property at a value that has a

8 higher ratio to the true market value of the

9 motor carrier transportation property than the

10 assessment value of all other property subject

11 to a property tax levy in the assessment juris12 diction has to the true market value of all such

13 other property; and

14 ‘‘(B) the collection of ad valorem property

15 tax on the motor carrier transportation prop16 erty at a tax rate that exceeds the tax ratio rate

17 applicable to taxable property in the taxing dis18 trict.

19 ‘‘§ 14503. Withholding State and local income tax by

20 certain carriers

21 ‘‘(a) SINGLE STATE TAX WITHHOLDING.—

22 ‘‘(1) IN GENERAL.—No part of the compensa23 tion paid by a motor carrier providing transportation

24 subject to jurisdiction under subchapter I of chapter

25 135 or by a motor private carrier to an employee
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1 who performs regularly assigned duties in 2 or more

2 States as such an employee with respect to a motor

3 vehicle shall be subject to the income tax laws of any

4 State or subdivision of that State, other than the

5 State or subdivision thereof of the employee’s resi6 dence.

7 ‘‘(2) EMPLOYEE DEFINED.—In this subsection,

8 the term ‘employee’ has the meaning given such

9 term in section 31132.

10 ‘‘(b) SPECIAL RULES.—

11 ‘‘(1) CALCULATION OF EARNINGS.—In this sub12 section, an employee is deemed to have earned more

13 than 50 percent of pay in a State or subdivision of

14 that State in which the time worked by the employee

15 in the State or subdivision is more than 50 percent

16 of the total time worked by the employee while em17 ployed during the calendar year.

18 ‘‘(2) WATER CARRIERS.—A water carrier pro19 viding transportation subject to jurisdiction under

20 subchapter II of chapter 135 shall file income tax

21 information returns and other reports only with—

22 ‘‘(A) the State and subdivision of residence

23 of the employee (as shown on the employment

24 records of the carrier); and
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1 ‘‘(B) the State and subdivision in which

2 the employee earned more than 50 percent of

3 the pay received by the employee from the car4 rier during the preceding calendar year.

5 ‘‘(3) APPLICABILITY TO SAILORS.—This sub6 section applies to pay of a master, officer, or sailor

7 who is a member of the crew on a vessel engaged in

8 foreign, coastwise, intercoastal, or noncontiguous

9 trade or in the fisheries of the United States.

10 ‘‘(c) FILING OF INFORMATION.—A motor and motor

11 private carrier withholding pay from an employee under

12 subsection (a) of this section shall file income tax informa13 tion returns and other reports only with the State and

14 subdivision of residence of the employee.

15 ‘‘§ 14504. Registration of motor carriers by a State

16 ‘‘(a) DEFINITIONS.—In this section, the terms

17 ‘standards’ and ‘amendments to standards’ mean the

18 specification of forms and procedures required by regula19 tions of the Secretary to prove the lawfulness of transpor20 tation by motor carrier referred to in section 13501.

21 ‘‘(b) GENERAL RULE.—The requirement of a State

22 that a motor carrier, providing transportation subject to

23 jurisdiction under subchapter I of chapter 135 and provid24 ing transportation in that State, must register with the

25 State is not an unreasonable burden on transportation re-
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1 ferred to in section 13501 when the State registration is

2 completed under standards of the Secretary under sub3 section (c). When a State registration requirement im4 poses obligations in excess of the standards of the Sec5 retary, the part in excess is an unreasonable burden.

6 ‘‘(c) SINGLE STATE REGISTRATION SYSTEM.—

7 ‘‘(1) IN GENERAL.—The Secretary shall main8 tain standards for implementing a system under

9 which—

10 ‘‘(A) a motor carrier is required to register

11 annually with only one State by providing evi12 dence of its Federal registration under chapter

13 139;

14 ‘‘(B) the State of registration shall fully

15 comply with standards prescribed under this

16 section; and

17 ‘‘(C) such single State registration shall be

18 deemed to satisfy the registration requirements

19 of all other States.

20 ‘‘(2) SPECIFIC REQUIREMENTS.—

21 ‘‘(A) EVIDENCE OF FEDERAL REGISTRA22 TION; PROOF OF INSURANCE; PAYMENT OF

23 FEES.—Under the standards of the Secretary

24 implementing the single State registration sys25 tem described in paragraph (1) of this sub-
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1 section, only a State acting in its capacity as

2 registration State under such single State sys3 tem may require a motor carrier registered by

4 the Secretary under this part—

5 ‘‘(i) to file and maintain evidence of

6 such Federal registration;

7 ‘‘(ii) to file satisfactory proof of re8 quired insurance or qualification as a self9 insurer;

10 ‘‘(iii) to pay directly to such State fee

11 amounts in accordance with the fee system

12 established under subparagraph (B)(iv) of

13 this paragraph, subject to allocation of fee

14 revenues among all States in which the

15 carrier operates and which participate in

16 the single State registration system; and

17 ‘‘(iv) to file the name of a local agent

18 for service of process.

19 ‘‘(B) RECEIPTS; FEE SYSTEM.—The stand20 ards of the Secretary—

21 ‘‘(i) shall require that the registration

22 State issue a receipt, in a form prescribed

23 under the standards, reflecting that the

24 carrier has filed proof of insurance as pro25 vided under subparagraph (A)(ii) of this
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1 paragraph and has paid fee amounts in ac2 cordance with the fee system established

3 under clause (iv) of this subparagraph;

4 ‘‘(ii) shall require that copies of the

5 receipt issued under clause (i) of this sub6 paragraph be kept in each of the carrier’s

7 commercial motor vehicles;

8 ‘‘(iii) shall not require decals, stamps,

9 cab cards, or any other means of register10 ing or identifying specific vehicles operated

11 by the carrier;

12 ‘‘(iv) shall establish a fee system for

13 the filing of proof of insurance as provided

14 under subparagraph (A)(ii) of this para15 graph that—

16 ‘‘(I) will be based on the number

17 of commercial motor vehicles the car18 rier operates in a State and on the

19 number of States in which the carrier

20 operates;

21 ‘‘(II) will minimize the costs of

22 complying with the registration sys23 tem; and

24 ‘‘(III) will result in a fee for each

25 participating State that is equal to
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1 the fee, not to exceed $10 per vehicle,

2 that such State collected or charged

3 as of November 15, 1991; and

4 ‘‘(v) shall not authorize the charging

5 or collection of any fee for filing and main6 taining a certificate or permit under sub7 paragraph (A)(i) of this paragraph.

8 ‘‘(C) PROHIBITED FEES.—The charging or

9 collection of any fee under this section that is

10 not in accordance with the fee system estab11 lished under subparagraph (B)(iv) of this para12 graph shall be deemed to be a burden on inter13 state commerce.

14 ‘‘(D) LIMITATION ON PARTICIPATION BY

15 STATES.—Only a State which, as of January 1,

16 1991, charged or collected a fee for a vehicle

17 identification stamp or number under part 1023

18 of title 49, Code of Federal Regulations, shall

19 be eligible to participate as a registration State

20 under this subsection or to receive any fee reve21 nue under this subsection.

22 ‘‘§ 14505. State tax

23 ‘‘A State or political subdivision thereof may not col24 lect or levy a tax, fee, head charge, or other charge on—
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1 ‘‘(1) a passenger traveling in interstate com2 merce by motor carrier;

3 ‘‘(2) the transportation of a passenger traveling

4 in interstate commerce by motor carrier;

5 ‘‘(3) the sale of passenger transportation in

6 interstate commerce by motor carrier; or

7 ‘‘(4) the gross receipts derived from such trans8 portation.

9 ‘‘CHAPTER 147—ENFORCEMENT;

10 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.

11 ‘‘§ 14701. General authority

12 ‘‘(a) INVESTIGATIONS.—The Secretary or the Panel,

13 as applicable, may begin an investigation under this part

14 on the Secretary’s or the Panel’s own initiative or on com15 plaint. If the Secretary or Panel, as applicable finds that

16 a carrier or broker is violating this part, the Secretary

17 or Panel, as applicable, shall take appropriate action to

18 compel compliance with this part. If the Secretary finds

19 that a foreign motor carrier or foreign motor private car20 rier is violating chapter 139, the Secretary shall take ap-
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1 propriate action to compel compliance with that chapter.

2 The Secretary or Panel, as applicable, may take action

3 under this subsection only after giving the carrier or

4 broker notice of the investigation and an opportunity for

5 a proceeding.

6 ‘‘(b) COMPLAINTS.—A person, including a govern7 mental authority, may file with the Secretary or Panel,

8 as applicable, a complaint about a violation of this part

9 by a carrier providing, or broker for, transportation or

10 service subject to jurisdiction under this part or a foreign

11 motor carrier or foreign motor private carrier providing

12 transportation registered under section 13902 of this title.

13 The complaint must state the facts that are the subject

14 of the violation. The Secretary or Panel, as applicable,

15 may dismiss a complaint that it determines does not state

16 reasonable grounds for investigation and action.

17 ‘‘(c) DEADLINE.—A formal investigative proceeding

18 begun by the Secretary or Panel under subsection (a) of

19 this section is dismissed automatically unless it is con20 cluded with administrative finality by the end of the 3d

21 year after the date on which it was begun.

22 ‘‘§ 14702. Enforcement by the regulatory authority

23 ‘‘(a) IN GENERAL.—The Secretary or the Panel, as

24 applicable, may bring a civil action—

25 ‘‘(1) to enforce section 14103 of this title; or
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1 ‘‘(2) to enforce this part, or a regulation or

2 order of the Secretary or Panel, as applicable, when

3 violated by a carrier or broker providing transpor4 tation or service subject to jurisdiction under sub5 chapter I or III of chapter 135 of this title or by

6 a foreign motor carrier or foreign motor private car7 rier providing transportation registered under sec8 tion 13902 of this title.

9 ‘‘(b) VENUE.—In a civil action under subsection

10 (a)(2) of this section—

11 ‘‘(1) trial is in the judicial district in which the

12 carrier, foreign motor carrier, foreign motor private

13 carrier, or broker operates;

14 ‘‘(2) process may be served without regard to

15 the territorial limits of the district or of the State

16 in which the action is instituted; and

17 ‘‘(3) a person participating with a carrier or

18 broker in a violation may be joined in the civil action

19 without regard to the residence of the person.

20 ‘‘(c) STANDING.—The Panel, through its own attor21 neys, may bring or participate in any civil action involving

22 motor carrier undercharges.
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1 ‘‘§ 14703. Enforcement by the Attorney General

2 ‘‘The Attorney General may, and on request of either

3 the Secretary of Transportation or Intermodal Surface

4 Transportation Panel shall, bring court proceedings—

5 ‘‘(1) to enforce this part or a regulation or

6 order of the Secretary or Panel or terms of registra7 tion under this part; and

8 ‘‘(2) to prosecute a person violating this part or

9 a regulation or order of the Secretary or Panel or

10 term of registration under this part.

11 ‘‘§ 14704. Rights and remedies of persons injured by

12 carriers or brokers

13 ‘‘(a) ENFORCEMENT OF ORDER.—A person injured

14 because a carrier or broker providing transportation or

15 service subject to jurisdiction under chapter 135 does not

16 obey an order of the Secretary or the Panel, as applicable,

17 under this part, except an order for the payment of money,

18 may bring a civil action to enforce that order under this

19 subsection.

20 ‘‘(b) LIABILITY AND DAMAGES.—

21 ‘‘(1) LIABILITY FOR EXCEEDING TARIFF

22 RATE.—A carrier providing transportation or service

23 subject to jurisdiction under chapter 135 is liable to

24 a person for amounts charged that exceed the appli25 cable rate for transportation or service contained in

26 a tariff in effect under section 13702 of this title.
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1 ‘‘(2) DAMAGES FOR VIOLATIONS.—A carrier or

2 broker providing transportation or service subject to

3 jurisdiction under chapter 135 is liable for damages

4 sustained by a person as a result of an act or omis5 sion of that carrier or broker in violation of this

6 part.

7 ‘‘(c) ELECTION.—

8 ‘‘(1) COMPLAINT TO DOT OR PANEL; CIVIL AC9 TION.—A person may file a complaint with the

10 Panel or the Secretary, as applicable, under section

11 14701(b) of this title or bring a civil action under

12 subsection (b)(1) or (2) of this section to enforce li13 ability against a carrier or broker providing trans14 portation or service subject to jurisdiction under

15 chapter 135. A person may bring a civil action for

16 injunctive relief for violations of sections 14102 and

17 14103.

18 ‘‘(2) ORDER OF DOT OR PANEL.—

19 ‘‘(A) IN GENERAL.—When the Panel or

20 Secretary, as applicable, makes an award under

21 subsection (b) of this section, the Panel or Sec22 retary, as applicable, shall order the carrier to

23 pay the amount awarded by a specific date. The

24 Panel or Secretary, as applicable, may order a

25 carrier or broker providing transportation or
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1 service subject to jurisdiction under chapter

2 135 to pay damages only when the proceeding

3 is on complaint.

4 ‘‘(B) ENFORCEMENT BY CIVIL ACTION.—

5 The person for whose benefit an order of the

6 Panel or Secretary requiring the payment of

7 money is made may bring a civil action to en8 force that order under this paragraph if the

9 carrier or broker does not pay the amount

10 awarded by the date payment was ordered to be

11 made.

12 ‘‘(d) PROCEDURE.—

13 ‘‘(1) IN GENERAL.—When a person begins a

14 civil action under subsection (b) of this section to

15 enforce an order of the Panel or Secretary requiring

16 the payment of damages by a carrier or broker pro17 viding transportation or service subject to jurisdic18 tion under chapter 135 of this title, the text of the

19 order of the Panel or Secretary must be included in

20 the complaint. In addition to the district courts of

21 the United States, a State court of general jurisdic22 tion having jurisdiction of the parties has jurisdic23 tion to enforce an order under this paragraph. The

24 findings and order of the Panel or Secretary are

25 competent evidence of the facts stated in them. Trial
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1 in a civil action brought in a district court of the

2 United States under this paragraph is in the judicial

3 district in which the plaintiff resides or in which the

4 principal operating office of the carrier or broker is

5 located. In a civil action under this paragraph, the

6 plaintiff is liable for only those costs that accrue on

7 an appeal taken by the plaintiff.

8 ‘‘(2) PARTIES.—All parties in whose favor the

9 award was made may be joined as plaintiffs in a civil

10 action brought in a district court of the United

11 States under this subsection and all the carriers that

12 are parties to the order awarding damages may be

13 joined as defendants. Trial in the action is in the ju14 dicial district in which any one of the plaintiffs could

15 bring the action against any one of the defendants.

16 Process may be served on a defendant at its prin17 cipal operating office when that defendant is not in

18 the district in which the action is brought. A judg19 ment ordering recovery may be made in favor of any

20 of those plaintiffs against the defendant found to be

21 liable to that plaintiff.

22 ‘‘(3) ATTORNEY’S FEES.—The district court

23 shall award a reasonable attorney’s fee as a part of

24 the damages for which a carrier or broker is found

25 liable under this subsection. The district court shall
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1 tax and collect that fee as a part of the costs of the

2 action.

3 ‘‘§ 14705. Limitation on actions by and against car4 riers

5 ‘‘(a) IN GENERAL.—A carrier providing transpor6 tation or service subject to jurisdiction under chapter 135

7 must begin a civil action to recover charges for transpor8 tation or service provided by the carrier within 18 months

9 after the claim accrues.

10 ‘‘(b) OVERCHARGES.—A person must begin a civil ac11 tion to recover overcharges within 18 months after the

12 claim accrues. If the claim is against a carrier providing

13 transportation subject to jurisdiction under chapter 135

14 and an election to file a complaint with the Panel or Sec15 retary, as applicable, is made under section 14704(c)(1),

16 the complaint must be filed within 3 years after the claim

17 accrues.

18 ‘‘(c) DAMAGES.—A person must file a complaint with

19 the Panel or Secretary, as applicable, to recover damages

20 under section 14704(b)(2) of this title within 2 years after

21 the claim accrues.

22 ‘‘(d) EXTENSIONS.—The limitation periods under

23 subsection (b) of this section are extended for 6 months

24 from the time written notice is given to the claimant by

25 the carrier of disallowance of any part of the claim speci-
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1 fied in the notice if a written claim is given to the carrier

2 within those limitation periods. The limitation periods

3 under subsection (b) of this section and the 2-year period

4 under subsection (c) of this section are extended for 90

5 days from the time the carrier begins a civil action under

6 subsection (a) of this section to recover charges related

7 to the same transportation or service, or collects (without

8 beginning a civil action under that subsection) the charge

9 for that transportation or service if that action is begun

10 or collection is made within the appropriate period.

11 ‘‘(e) PAYMENT.—A person must begin a civil action

12 to enforce an order of the Panel or Secretary against a

13 carrier for the payment of money within 1 year after the

14 date the order required the money to be paid.

15 ‘‘(f) GOVERNMENT TRANSPORTATION.—This section

16 applies to transportation for the United States Govern17 ment. The time limitations under this section are ex18 tended, as related to transportation for or on behalf of

19 the United States Government, for 3 years from the later

20 of the date of—

21 ‘‘(1) payment of the rate for the transportation

22 or service involved;

23 ‘‘(2) subsequent refund for overpayment of that

24 rate; or
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1 ‘‘(3) deduction made under section 3726 of title

2 31.

3 ‘‘(g) ACCRUAL DATE.—A claim related to a shipment

4 of property accrues under this section on delivery or ten5 der of delivery by the carrier.

6 ‘‘§ 14706. Liability of carriers under receipts and bills

7 of lading

8 ‘‘(a) GENERAL LIABILITY.—

9 ‘‘(1) MOTOR CARRIERS AND FREIGHT FOR10 WARDERS.—A carrier providing transportation or

11 service subject to jurisdiction under subchapter I or

12 III of chapter 135 shall issue a receipt or bill of lad13 ing for property it receives for transportation under

14 this part. That carrier and any other carrier that de15 livers the property and is providing transportation or

16 service subject to jurisdiction under subchapter I or

17 III of chapter 135 or chapter 105 are liable to the

18 person entitled to recover under the receipt or bill of

19 lading. The liability imposed under this paragraph is

20 for the actual loss or injury to the property caused

21 by (A) the receiving carrier, (B) the delivering car22 rier, or (C) another carrier over whose line or route

23 the property is transported in the United States or

24 from a place in the United States to a place in an

25 adjacent foreign country when transported under a
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1 through bill of lading and, except in the case of a

2 freight forwarder, applies to property reconsigned or

3 diverted under a tariff filed under section 13702 of

4 this title. Failure to issue a receipt or bill of lading

5 does not affect the liability of a carrier. A delivering

6 carrier is deemed to be the carrier performing the

7 line-haul transportation nearest the destination but

8 does not include a carrier providing only a switching

9 service at the destination.

10 ‘‘(2) FREIGHT FORWARDER.—A freight for11 warder is both the receiving and delivering carrier.

12 When a freight forwarder provides service and uses

13 a motor carrier providing transportation subject to

14 jurisdiction under subchapter I of chapter 135 to re15 ceive property from a consignor, the motor carrier

16 may execute the bill of lading or shipping receipt for

17 the freight forwarder with its consent. With the con18 sent of the freight forwarder, a motor carrier may

19 deliver property for a freight forwarder on the

20 freight forwarder’s bill of lading, freight bill, or ship21 ping receipt to the consignee named in it, and re22 ceipt for the property may be made on the freight

23 forwarder’s delivery receipt.

24 ‘‘(b) APPORTIONMENT.—The carrier issuing the re25 ceipt or bill of lading under subsection (a) of this section
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1 or delivering the property for which the receipt or bill of

2 lading was issued is entitled to recover from the carrier

3 over whose line or route the loss or injury occurred the

4 amount required to be paid to the owners of the property,

5 as evidenced by a receipt, judgment, or transcript, and the

6 amount of its expenses reasonably incurred in defending

7 a civil action brought by that person.

8 ‘‘(c) SPECIAL RULES.—

9 ‘‘(1) LIMITATION OF LIABILITY BY CON10 TRACT.—A carrier may limit or be exempt from li11 ability imposed under subsection (a) of this section

12 by a mutual written agreement, that is referred to

13 in the receipt, bill of lading, or contract for the

14 transportation involved entered into with the ship15 per, to limit liability to a specified amount.

16 ‘‘(2) WATER CARRIERS.—If loss or injury to

17 property occurs while it is in the custody of a water

18 carrier, the liability of that carrier is determined by

19 its bill of lading and the law applicable to water

20 transportation. The liability of the initial or deliver21 ing carrier is the same as the liability of the water

22 carrier.

23 ‘‘(d) CIVIL ACTIONS.—

24 ‘‘(1) AGAINST DELIVERING CARRIER.—A civil

25 action under this section may be brought against a
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1 delivering carrier (other than a rail carrier) in a dis2 trict court of the United States or in a State court.

3 Trial, if the action is brought in a district court of

4 the United States is in a judicial district, and if in

5 a State court, is in a State through which the de6 fendant carrier operates.

7 ‘‘(2) AGAINST CARRIER RESPONSIBLE FOR

8 LOSS.—A civil action under this section may be

9 brought against the carrier alleged to have caused

10 the loss or damage, in the judicial district in which

11 such loss or damage is alleged to have occurred.

12 ‘‘(3) JURISDICTION OF COURTS.—A civil action

13 under this section may be brought in a United

14 States district court or in a State court.

15 ‘‘(4) JUDICIAL DISTRICT DEFINED.—In this

16 section, ‘judicial district’ means—

17 ‘‘(A) in the case of a United States district

18 court, a judicial district of the United States;

19 and

20 ‘‘(B) in the case of a State court, the ap21 plicable geographic area over which such court

22 exercises jurisdiction.

23 ‘‘(e) MINIMUM PERIOD FOR FILING CLAIMS.—

24 ‘‘(1) IN GENERAL.—A carrier may not provide

25 by rule, contract, or otherwise, a period of less than
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1 9 months for filing a claim against it under this sec2 tion and a period of less than 2 years for bringing

3 a civil action against it under this section. The pe4 riod for bringing a civil action is computed from the

5 date the carrier gives a person written notice that

6 the carrier has disallowed any part of the claim

7 specified in the notice.

8 ‘‘(2) SPECIAL RULES.—For the purposes of this

9 subsection—

10 ‘‘(A) an offer of compromise shall not con11 stitute a disallowance of any part of the claim

12 unless the carrier, in writing, informs the claim13 ant that such part of the claim is disallowed

14 and provides reasons for such disallowance; and

15 ‘‘(B) communications received from a car16 rier’s insurer shall not constitute a disallowance

17 of any part of the claim unless the insurer, in

18 writing, informs the claimant that such part of

19 the claim is disallowed, provides reason for such

20 disallowance, and informs the claimant that the

21 insurer is acting on behalf of the carrier.

22 ‘‘(f) LIMITING LIABILITY OF HOUSEHOLD GOODS

23 CARRIERS TO DECLARED VALUE.—A carrier or group of

24 carriers subject to jurisdiction under subchapter I or III

25 of chapter 135 may petition the Panel to modify, elimi-
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1 nate, or establish rates for the transportation of household

2 goods under which the liability of the carrier for that prop3 erty is limited to a value established by written declaration

4 of the shipper or by a written agreement.

5 ‘‘(g) MODIFICATIONS AND REFORMS.—

6 ‘‘(1) STUDY.—The Secretary shall conduct a

7 study to determine whether any modifications or re8 forms should be made to the loss and damage provi9 sions of this section.

10 ‘‘(2) FACTORS TO CONSIDER.—In conducting

11 the study, the Secretary, at a minimum, shall con12 sider—

13 ‘‘(A) the efficient delivery of transportation

14 services;

15 ‘‘(B) international and intermodal har16 mony;

17 ‘‘(C) the public interest; and

18 ‘‘(D) the interest of carriers and shippers.

19 ‘‘(3) REPORT.—Not later than 18 months after

20 the effective date of this section, the Secretary shall

21 submit to Congress a report on the results of the

22 study, together with any recommendations of the

23 Secretary (including legislative recommendations)

24 for implementing modifications or reforms identified

25 by the Secretary as being appropriate.
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1 ‘‘§ 14707. Private enforcement of registration require2 ment

3 ‘‘(a) IN GENERAL.—If a person provides transpor4 tation by motor vehicle or service in clear violation of sec5 tion 13901–13904 or 13906, a person injured by the

6 transportation or service may bring a civil action to en7 force any such section. In a civil action under this sub8 section, trial is in the judicial district in which the person

9 who violated that section operates.

10 ‘‘(b) PROCEDURE.—A copy of the complaint in a civil

11 action under subsection (a) shall be served on the Sec12 retary and a certificate of service must appear in the com13 plaint filed with the court. The Secretary may intervene

14 in a civil action under subsection (a). The Secretary may

15 notify the district court in which the action is pending that

16 the Secretary intends to consider the matter that is the

17 subject of the complaint in a proceeding before the Sec18 retary. When that notice is filed, the court shall stay fur19 ther action pending disposition of the proceeding before

20 the Secretary.

21 ‘‘(c) ATTORNEY’S FEES.—In a civil action under sub22 section (a), the court may determine the amount of and

23 award a reasonable attorney’s fee to the prevailing party.

24 That fee is in addition to costs allowable under the Fed25 eral Rules of Civil Procedure.
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1 ‘‘§ 14708. Dispute settlement program for household

2 goods carriers

3 ‘‘(a) OFFERING SHIPPERS ARBITRATION.—As a con4 dition of registration under section 13902 or 13903, a car5 rier providing transportation of household goods subject

6 to jurisdiction under subchapter I or III of chapter 135

7 must agree to offer to shippers neutral arbitration as a

8 means of settling disputes between such carriers and ship9 pers of household goods concerning the transportation of

10 household goods.

11 ‘‘(b) ARBITRATION REQUIREMENTS.—

12 ‘‘(1) PREVENTION OF SPECIAL ADVANTAGE.—

13 The arbitration that is offered must be designed to

14 prevent a carrier from having any special advantage

15 in any case in which the claimant resides or does

16 business at a place distant from the carrier’s prin17 cipal or other place of business.

18 ‘‘(2) NOTICE OF ARBITRATION PROCEDURE.—

19 The carrier must provide the shipper an adequate

20 notice of the availability of neutral arbitration, in21 cluding a concise easy-to-read, accurate summary of

22 the arbitration procedure, any applicable fees, and

23 disclosure of the legal effects of election to utilize ar24 bitration. Such notice must be given to persons for

25 whom household goods are to be transported by the
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1 carrier before such goods are tendered to the carrier

2 for transportation.

3 ‘‘(3) PROVISION OF FORMS.—Upon request of a

4 shipper, the carrier must promptly provide such

5 forms and other information as are necessary for

6 initiating an action to resolve a dispute under arbi7 tration.

8 ‘‘(4) INDEPENDENCE OF ARBITRATOR.—Each

9 person authorized to arbitrate or otherwise settle

10 disputes must be independent of the parties to the

11 dispute and must be capable, as determined under

12 such regulations as the Secretary may issue, to re13 solve such disputes fairly and expeditiously. The car14 rier must ensure that each person chosen to settle

15 the disputes is authorized and able to obtain from

16 the shipper or carrier any material and relevant in17 formation to the extent necessary to carry out a fair

18 and expeditious decision making process.

19 ‘‘(5) LIMITATION ON FEES.—No fee of more

20 than $25 may be charged a shipper for instituting

21 an arbitration proceeding under this subsection. In

22 any case in which a shipper is charged a fee under

23 this paragraph for instituting an arbitration pro24 ceeding and such dispute is settled in favor of the

25 shipper, the person settling the dispute must refund
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1 such fee to the shipper unless the person settling the

2 dispute determines that such refund is inappropri3 ate.

4 ‘‘(6) REQUESTS.—The carrier must not require

5 the shipper to agree to utilize arbitration prior to

6 the time that a dispute arises. If the shipper re7 quests arbitration, such shall be binding on the par8 ties.

9 ‘‘(7) ORAL PRESENTATION OF EVIDENCE.—The

10 arbitrator may provide for an oral presentation of a

11 dispute concerning transportation of household

12 goods by a party to the dispute (or a party’s rep13 resentative), but such oral presentation may be

14 made only if all parties to the dispute expressly

15 agree to such presentation and the date, time, and

16 location of such presentation.

17 ‘‘(8) DEADLINE FOR DECISION.—The arbitrator

18 must, as expeditiously as possible but at least within

19 60 days of receipt of written notification of the dis20 pute, render a decision based on the information

21 gathered; except that, in any case in which a party

22 to the dispute fails to provide in a timely manner

23 any information concerning such dispute which the

24 person settling the dispute may reasonably require

25 to resolve the dispute, the arbitrator may extend
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1 such 60-day period for a reasonable period of time.

2 A decision resolving a dispute may include any rem3 edies appropriate under the circumstances, including

4 repair, replacement, refund, reimbursement for ex5 penses, and compensation for damages.

6 ‘‘(c) LIMITATION ON USE OF MATERIALS.—Materials

7 and information obtained in the course of a decision mak8 ing process to settle a dispute by arbitration under this

9 section may not be used to bring an action under section

10 14905.

11 ‘‘(d) ATTORNEY’S FEES TO SHIPPERS.—In any court

12 action to resolve a dispute between a shipper of household

13 goods and a motor carrier providing transportation or

14 service subject to jurisdiction under subchapter I or III

15 of chapter 135 concerning the transportation of household

16 goods by such carrier, the shipper shall be awarded rea17 sonable attorney’s fees if—

18 ‘‘(1) the shipper submits a claim to the carrier

19 within 120 days after the date the shipment is deliv20 ered or the date the delivery is scheduled, whichever

21 is later;

22 ‘‘(2) the shipper prevails in such court action;

23 and

24 ‘‘(3)(A) a decision resolving the dispute was not

25 rendered through arbitration under this section with-
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1 in the period provided under subsection (b)(8) of

2 this section or an extension of such period under

3 such subsection; or

4 ‘‘(B) the court proceeding is to enforce a deci5 sion rendered through arbitration under this section

6 and is instituted after the period for performance

7 under such decision has elapsed.

8 ‘‘(e) ATTORNEY’S FEES TO CARRIERS.—In any court

9 action to resolve a dispute between a shipper of household

10 goods and a carrier providing transportation, or service

11 subject to jurisdiction under subchapter I or III of chapter

12 135 concerning the transportation of household goods by

13 such carrier, such carrier may be awarded reasonable at14 torney’s fees by the court only if the shipper brought such

15 action in bad faith—

16 ‘‘(1) after resolution of such dispute through

17 arbitration under this section; or

18 ‘‘(2) after institution of an arbitration proceed19 ing by the shipper to resolve such dispute under this

20 section but before—

21 ‘‘(A) the period provided under subsection

22 (b)(8) for resolution of such dispute (including,

23 if applicable, an extension of such period under

24 such subsection) ends; and
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1 ‘‘(B) a decision resolving such dispute is

2 rendered.

3 ‘‘(f) LIMITATION OF APPLICABILITY TO COLLECT4 ON-DELIVERY TRANSPORTATION.—The provisions of this

5 section shall apply only in the case of collect-on-delivery

6 transportation of those types of household goods.

7 ‘‘§ 14709. Tariff reconciliation rules for motor car8 riers of property

9 ‘‘Subject to review and approval by the Panel, motor

10 carriers subject to jurisdiction under subchapter I of chap11 ter 135 (other than motor carriers providing transpor12 tation of household goods) and shippers may resolve, by

13 mutual consent, overcharge and under-charge claims re14 sulting from incorrect tariff provisions or billing errors

15 arising from the inadvertent failure to properly and timely

16 file and maintain agreed upon rates, rules, or classifica17 tions in compliance with sections 10761 and 10762 of this

18 title as in effect on the day before the effective date of

19 this section. Resolution of such claims among the parties

20 shall not subject any party to the penalties for departing

21 from a filed tariff.

22 ‘‘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.
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‘‘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.

1 ‘‘§ 14901. General civil penalties

2 ‘‘(a) REPORTING AND RECORDKEEPING.—A person

3 required to make a report to the Secretary or the Panel,

4 answer a question, or make, prepare, or preserve a record

5 under this part concerning transportation subject to juris6 diction under subchapter I or III of chapter 135 or trans7 portation by a foreign carrier registered under section

8 13902, or an officer, agent, or employee of that person

9 that—

10 ‘‘(1) does not make the report;

11 ‘‘(2) does not specifically, completely, and

12 truthfully answer the question;

13 ‘‘(3) does not make, prepare, or preserve the

14 record in the form and manner prescribed;

15 ‘‘(4) does not comply with section 13901; or

16 ‘‘(5) does not comply with section 13902(c);

17 is liable to the United States Government for a civil pen18 alty of not less than $500 for each violation and for each

19 additional day the violation continues; except that, in the

20 case of a person who is not registered under this part to

21 provide transportation of passengers, or an officer, agent,
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1 or employee of such person, that does not comply with sec2 tion 13901 with respect to providing transportation of

3 passengers, the amount of the civil penalty shall not be

4 less than $2,000 for each violation and for each additional

5 day the violation continues.

6 ‘‘(b) TRANSPORTATION OF HAZARDOUS WASTES.—

7 A person subject to jurisdiction under subchapter I of

8 chapter 135, or an officer, agent, or employee of that per9 son, and who is required to comply with section 13901

10 of this title but does not so comply with respect to the

11 transportation of hazardous wastes as defined by the En12 vironmental Protection Agency pursuant to section 3001

13 of the Solid Waste Disposal Act (but not including any

14 waste the regulation of which under the Solid Waste Dis15 posal Act has been suspended by Congress) shall be liable

16 to the United States for a civil penalty not to exceed

17 $20,000 for each violation.

18 ‘‘(c) FACTORS TO CONSIDER IN DETERMINING

19 AMOUNT.—In determining and negotiating the amount of

20 a civil penalty under subsection (a) or (d) concerning

21 transportation of household goods, the degree of culpabil22 ity, any history of prior such conduct, the degree of harm

23 to shipper or shippers, ability to pay, the effect on ability

24 to do business, whether the shipper has been adequately

25 compensated before institution of the proceeding, and such
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1 other matters as fairness may require shall be taken into

2 account.

3 ‘‘(d) PROTECTION OF HOUSEHOLD GOODS SHIP4 PERS.—If a carrier providing transportation of household

5 goods subject to jurisdiction under subchapter I or III of

6 chapter 135 or a receiver or trustee of such carrier fails

7 or refuses to comply with any regulation issued by the Sec8 retary or the Panel relating to protection of individual

9 shippers, such carrier, receiver, or trustee is liable to the

10 United States for a civil penalty of not less than $1,000

11 for each violation and for each additional day during which

12 the violation continues.

13 ‘‘(e) VIOLATION RELATING TO TRANSPORTATION OF

14 HOUSEHOLD GOODS.—Any person that knowingly en15 gages in or knowingly authorizes an agent or other per16 son—

17 ‘‘(1) to falsify documents used in the transpor18 tation of household goods subject to jurisdiction

19 under subchapter I or III of chapter 135 which evi20 dence the weight of a shipment; or

21 ‘‘(2) to charge for accessorial services which are

22 not performed or for which the carrier is not entitled

23 to be compensated in any case in which such services

24 are not reasonably necessary in the safe and ade25 quate movement of the shipment;
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1 is liable to the United States for a civil penalty of not

2 less than $2,000 for each violation and of not less than

3 $5,000 for each subsequent violation. Any State may bring

4 a civil action in the United States district courts to compel

5 a person to pay a civil penalty assessed under this sub6 section.

7 ‘‘(f) VENUE.—Trial in a civil action under sub8 sections (a) through (e) of this section is in the judicial

9 district in which—

10 ‘‘(1) the carrier or broker has its principal of11 fice;

12 ‘‘(2) the carrier or broker was authorized to

13 provide transportation or service under this part

14 when the violation occurred;

15 ‘‘(3) the violation occurred; or

16 ‘‘(4) the offender is found.

17 Process in the action may be served in the judicial district

18 of which the offender is an inhabitant or in which the of19 fender may be found.

20 ‘‘§ 14902. Civil penalty for accepting rebates from car21 rier

22 ‘‘A person—

23 ‘‘(1) delivering property to a carrier providing

24 transportation or service subject to jurisdiction

25 under chapter 135 for transportation under this part
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1 or for whom that carrier will transport the property

2 as consignor or consignee for that person from a

3 State or territory or possession of the United States

4 to another State or possession, territory, or to a for5 eign country; and

6 ‘‘(2) knowingly accepting or receiving by any

7 means a rebate or offset against the rate for trans8 portation for, or service of, that property contained

9 in a tariff required under section 13702;

10 is liable to the United States Government for a civil pen11 alty in an amount equal to 3 times the amount of money

12 that person accepted or received as a rebate or offset and

13 3 times the value of other consideration accepted or re14 ceived as a rebate or offset. In a civil action under this

15 section, all money or other consideration received by the

16 person during a period of 6 years before an action is

17 brought under this section may be included in determining

18 the amount of the penalty, and if that total amount is

19 included, the penalty shall be 3 times that total amount.

20 ‘‘§ 14903. Tariff violations

21 ‘‘(a) CRIMINAL PENALTY FOR UNDERCHARGING.—A

22 person that knowingly offers, grants, gives, solicits, ac23 cepts, or receives by any means transportation or service

24 provided for property by a carrier subject to jurisdiction

25 under chapter 135 at less than the rate in effect under
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1 section 13702 shall be fined at least $1,000 but not more

2 than $20,000, imprisoned for not more than 2 years, or

3 both.

4 ‘‘(b) GENERAL CRIMINAL PENALTY.—A carrier pro5 viding transportation or service subject to jurisdiction

6 under chapter 135 or an officer, director, receiver, trustee,

7 lessee, agent, or employee of a corporation that is subject

8 to jurisdiction under that chapter, that willfully does not

9 observe its tariffs as required under section 13702, shall

10 be fined at least $1,000 but not more than $20,000, im11 prisoned for not more than 2 years, or both.

12 ‘‘(c) ACTIONS OF AGENTS AND EMPLOYEES.—When

13 acting in the scope of their employment, the actions and

14 omissions of persons acting for or employed by a carrier

15 or shipper that is subject to subsection (a) or (b) of this

16 section are considered to be the actions and omissions of

17 that carrier or shipper as well as that person.

18 ‘‘(d) VENUE.—Trial in a criminal action under this

19 section is in the judicial district in which any part of the

20 violation is committed or through which the transportation

21 is conducted.

22 ‘‘§ 14904. Additional rate violations

23 ‘‘(a) REBATES BY AGENTS.—A person, or an officer,

24 employee, or agent of that person, that—
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1 ‘‘(1) knowingly offers, grants, gives, solicits, ac2 cepts, or receives a rebate for concession, in violation

3 of a provision of this part related to motor carrier

4 transportation subject to jurisdiction under sub5 chapter I of chapter 135; or

6 (2) by any means knowingly and willfully as7 sists or permits another person to get transportation

8 that is subject to jurisdiction under that subchapter

9 at less than the rate in effect for that transportation

10 under section 13702,

11 shall be fined at least $200 for the first violation and at

12 least $250 for a subsequent violation.

13 ‘‘(b) UNDERCHARGING.—

14 ‘‘(1) FREIGHT FORWARDER.—A freight for15 warder providing service subject to jurisdiction

16 under subchapter III of chapter 135, or an officer,

17 agent, or employee of that freight forwarder, that

18 knowingly and willfully assists a person in getting,

19 or willingly permits a person to get, service provided

20 under that subchapter at less than the rate in effect

21 for that service under section 13702, shall be fined

22 not more than $500 for the first violation and not

23 more than $2,000 for a subsequent violation.

24 ‘‘(2) AGENTS AND OTHERS.—A person that

25 knowingly and willfully by any means gets, or at-
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1 tempts to get, service provided under subchapter III

2 of chapter 135 at less than the rate in effect for that

3 service under section 13702, shall be fined not more

4 than $500 for the first violation and not more than

5 $2,000 for a subsequent violation.

6 ‘‘§ 14905. Penalties for violations of rules relating to

7 loading and unloading motor vehicles

8 ‘‘(a) CIVIL PENALTIES.—Any person who knowingly

9 authorizes, consents to, or permits a violation of sub10 section (a) or (b) of section 14103 or who knowingly vio11 lates subsection (a) of such section is liable to the United

12 States Government for a civil penalty of not more than

13 $10,000 for each violation.

14 ‘‘(b) CRIMINAL PENALTIES.—Any person who know15 ingly violates section 14103(b) of this title shall be fined

16 not more than $10,000, imprisoned for not more than 2

17 years, or both.

18 ‘‘§ 14906. Evasion of regulation of carriers and bro19 kers

20 ‘‘A person, or an officer, employee, or agent of that

21 person that by any means knowingly and willfully tries to

22 evade regulation provided under this part for carriers or

23 brokers shall be fined at least $200 for the first violation

24 and at least $250 for a subsequent violation.
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1 ‘‘§ 14907. Record keeping and reporting violations

2 ‘‘A person required to make a report to the Secretary

3 or the Panel, as applicable, answer a question, or make,

4 prepare, or preserve a record under this part about trans5 portation subject to jurisdiction under subchapter I or III

6 of chapter 135, or an officer, agent, or employee of that

7 person, that—

8 ‘‘(1) willfully does not make that report;

9 ‘‘(2) willfully does not specifically, completely,

10 and truthfully answer that question in 30 days from

11 the date the Secretary or Panel, as applicable, re12 quires the question to be answered;

13 ‘‘(3) willfully does not make, prepare, or pre14 serve that record in the form and manner pre15 scribed;

16 ‘‘(4) knowingly and willfully falsifies, destroys,

17 mutilates, or changes that report or record;

18 ‘‘(5) knowingly and willfully files a false report

19 or record;

20 ‘‘(6) knowingly and willfully makes a false or

21 incomplete entry in that record about a business re22 lated fact or transaction; or

23 ‘‘(7) knowingly and willfully makes, prepares,

24 or preserves a record in violation of an applicable

25 regulation or order of the Secretary or Panel;

26 shall be fined not more than $5,000.
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1 ‘‘§ 14908. Unlawful disclosure of information

2 ‘‘(a) DISCLOSURE OF SHIPMENT AND ROUTING IN3 FORMATION.—

4 ‘‘(1) VIOLATIONS.—A carrier or broker provid5 ing transportation subject to jurisdiction under sub6 chapter I, II, or III of chapter 135 or an officer, re7 ceiver, trustee, lessee, or employee of that carrier or

8 broker, or another person authorized by that carrier

9 or broker to receive information from that carrier or

10 broker may not knowingly disclose to another per11 son, except the shipper or consignee, and another

12 person may not solicit, or knowingly receive, infor13 mation about the nature, kind, quantity, destination,

14 consignee, or routing of property tendered or deliv15 ered to that carrier or broker for transportation pro16 vided under this part without the consent of the

17 shipper or consignee if that information may be used

18 to the detriment of the shipper or consignee or may

19 disclose improperly to a competitor the business

20 transactions of the shipper or consignee.

21 ‘‘(2) FINE; VENUE.—A person violating para22 graph (1) of this subsection shall be fined not less

23 than $2,000. Trial in a criminal action under this

24 paragraph is in the judicial district in which any

25 part of the violation is committed.
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1 ‘‘(b) LIMITATION ON STATUTORY CONSTRUCTION.—

2 This part does not prevent a carrier or broker providing

3 transportation subject to jurisdiction under chapter 135

4 from giving information—

5 ‘‘(1) in response to legal process issued under

6 authority of a court of the United States or a State;

7 ‘‘(2) to an officer, employee, or agent of the

8 United States Government, a State, or a territory or

9 possession of the United States; or

10 ‘‘(3) to another carrier or its agent to adjust

11 mutual traffic accounts in the ordinary course of

12 business.

13 ‘‘§ 14909. Disobedience to subpoenas

14 ‘‘A person not obeying a subpoena or requirement of

15 the Secretary or the Panel to appear and testify or

16 produce records shall be fined not less than $5,000, im17 prisoned for not more than 1 year, or both.

18 ‘‘§ 14910. General criminal penalty when specific pen19 alty not provided

20 ‘‘When another criminal penalty is not provided

21 under this chapter, a person that knowingly and willfully

22 violates a provision of this part or a regulation or order

23 prescribed under this part, or a condition of a registration

24 under this part related to transportation that is subject

25 to jurisdiction under subchapter I or III of chapter 135
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1 or a condition of a registration under section 13902, shall

2 be fined at least $500 for the first violation and at least

3 $500 for a subsequent violation. A separate violation oc4 curs each day the violation continues.

5 ‘‘§ 14911. Punishment of corporation for violations

6 committed by certain individuals

7 ‘‘An act or omission that would be a violation of this

8 part if committed by a director, officer, receiver, trustee,

9 lessee, agent, or employee of a carrier providing transpor10 tation or service subject to jurisdiction under chapter 135

11 that is a corporation is also a violation of this part by

12 that corporation. The penalties of this chapter apply to

13 that violation. When acting in the scope of their employ14 ment, the actions and omissions of individuals acting for

15 or employed by that carrier are considered to be the ac16 tions and omissions of that carrier as well as that individ17 ual.

18 ‘‘§ 14912. Weight-bumping in household goods trans19 portation

20 ‘‘(a) WEIGHT-BUMPING DEFINED.—For the pur21 poses of this section, ‘weight-bumping’ means the knowing

22 and willful making or securing of a fraudulent weight on

23 a shipment of household goods which is subject to jurisdic24 tion under subchapter I or III of chapter 135.
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1 ‘‘(b) PENALTY.—Any individual who has been found

2 to have committed weight-bumping shall, for each offense,

3 be fined at least $1,000 but not more than $10,000, im4 prisoned for not more than 2 years, or both.

5 ‘‘§ 14913. Conclusiveness of rates in certain prosecu6 tions

7 ‘‘When a carrier publishes or files a particular rate

8 under section 13702 or participates in such a rate, the

9 published or filed rate is conclusive proof against that car10 rier, its officers, and agents that it is the legal rate for

11 that transportation or service in a proceeding begun under

12 section 14902 or 14903. A departure, or offer to depart,

13 from that published or filed rate is a violation of those

14 sections.’’.

15 SEC. 104. MISCELLANEOUS MOTOR CARRIER PROVISIONS.

16 (a) MULTIPLE INSURERS.—Section 31138(c) of title

17 49, United States Code, is amended by adding at the end

18 thereof the following new paragraph:

19 ‘‘(3) A motor carrier may obtain the required

20 amount of financial responsibility from more than

21 one source provided the cumulative amount is equal

22 to the minimum requirements of this section.’’.

23 (b) LOWER COVERAGE PERMITTED FOR CERTAIN

24 OPERATIONS.—Section 31138 of such title is amended by

25 adding at the end thereof the following:
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1 ‘‘(f) LOWER COVERAGE PERMITTED FOR CERTAIN

2 OPERATIONS.—Under regulations promulgated by the

3 Secretary, the minimum amount set forth in subsection

4 (b)(1) shall not apply to motor vehicles used, under a pro5 gram funded in whole or in part with a Federal transit

6 grant, to provide supplemental para-transit services for

7 the elderly and disabled.’’.

8 (c) TRANSPORTERS OF PROPERTY.—Section

9 31139(e) of such title is amended by adding at the end

10 thereof the following:

11 ‘‘(3) A motor carrier may obtain the required

12 amount of financial responsibility from more than

13 one source provided the cumulative amount is equal

14 to the minimum requirements of this section.’’.

15 (d) COMMERCIAL MOTOR VEHICLE DEFINED.—Sec16 tion 31132(1) of such title is amended—

17 (1) by redesignating subparagraph (C) as sub18 paragraph (D); and

19 (2) by striking subparagraph (B) and inserting

20 the following:

21 ‘‘(B) is designed or used to transport pas22 sengers for compensation, but excluding vehicles

23 providing taxicab service and having a capacity

24 of not more than 6 passengers and not operated

25 on a regular route or between specified places;
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1 ‘‘(C) is designed or used to transport more

2 than 15 passengers, including the driver, and is

3 not used to transport passengers for compensa4 tion; or’’.

5 (e) SELF-INSURANCE RULES.—The Secretary of

6 Transportation shall continue to enforce the rules and reg7 ulations of the Interstate Commerce Commission, as in ef8 fect on July 1, 1995, governing the qualifications for ap9 proval of a motor carrier as a self-insurer, until such time

10 as the Secretary finds it in the public interest to revise

11 such rules. The revised rules must provide for—

12 (1) continued ability of motor carriers to qualify

13 as self-insurers; and

14 (2) the continued qualification of all carriers

15 then so qualified under the terms and conditions set

16 by the Interstate Commerce Commission or Sec17 retary at the time of qualification.

18 TITLE II—TRANSPORTATION

19 ADJUDICATION PANEL

20 SEC. 201. TITLE 49 AMENDMENT.

21 (a) AMENDMENT.—Subtitle I of title 49, United

22 States Code, is amended by adding at the end the follow23 ing new chapter:
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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

9 3 members, to be appointed by the President, by and with

10 the advice and consent of the Senate. Not more than 2

11 members may be appointed from the same political party.

12 ‘‘(2) At any given time, at least 2 members of the

13 Panel shall be individuals with professional standing and

14 demonstrated knowledge in the fields of transportation or

15 transportation regulation, and at least one member shall

16 be an individual with professional or business experience

17 in the private sector.
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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 re10 move a member for inefficiency, neglect of duty, or malfea11 sance in office.

12 ‘‘(4) On the effective date of this section, the mem13 bers of the Interstate Commerce Commission then serving

14 unexpired terms shall become members of the Panel, to

15 serve for a period of time equal to the remainder of the

16 term for which they were originally appointed to the Inter17 state Commerce Commission.

18 ‘‘(5) No individual may serve as a member of the

19 Panel for more than 2 terms, including service as a mem20 ber of the Interstate Commerce Commission. In the case

21 of an individual appointed to fill a vacancy occurring be22 fore 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.
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1 ‘‘(6) A member of the Panel may not have a pecu2 niary interest in, hold an official relation to, or own stock

3 in or bonds of, a carrier providing transportation by any

4 mode and may not engage in another business, vocation,

5 or employment.

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

12 the Panel a Director, who shall be designated by the Presi13 dent from among the members of the Panel. The Panel

14 shall be administered under the supervision and direction

15 of the Director. The Director shall receive compensation

16 at the rate prescribed for level III of the Executive Sched17 ule under section 5314 of title 5.

18 ‘‘(2) Subject to the general policies, decisions, find19 ings, and determinations of the Panel the Director shall

20 be responsible for administering the Panel. The Director

21 may delegate the powers granted under this paragraph to

22 an officer, employee, or office of the Panel. The Director

23 shall—

24 ‘‘(A) appoint and supervise, other than regular

25 and full time employees in the immediate offices of
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1 another member, the officers and employees of the

2 Panel, including attorneys to provide legal aid and

3 service to the Panel and its members, and to rep4 resent the Panel in any case in court;

5 ‘‘(B) appoint the heads of offices with the ap6 proval of the Panel;

7 ‘‘(C) distribute Panel responsibilities among of8 ficers and employees and offices of the Panel;

9 ‘‘(D) prepare requests for appropriations for

10 the Panel and submit those requests to the Presi11 dent and Congress with the prior approval of the

12 Panel; and

13 ‘‘(E) supervise the expenditure of funds allo14 cated by the Panel for major programs and pur15 poses.

16 ‘‘§ 702. Functions

17 ‘‘Except as otherwise provided in the ICC Termi18 nation Act of 1995, or the amendments made thereby, the

19 Panel shall perform all functions that, immediately before

20 the effective date of such Act, were functions of the Inter21 state Commerce Commission or were performed by any of22 ficer or employee of the Interstate Commerce Commission

23 in the capacity as such officer or employee.
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1 ‘‘§ 703. Administrative provisions

2 ‘‘(a) EXECUTIVE REORGANIZATION.—Chapter 9 of

3 title 5, United States Code, shall apply to the Panel in

4 the same manner as it does to an independent regulatory

5 agency.

6 ‘‘(b) OPEN MEETINGS.—For purposes of section

7 552b of title 5, United States Code, the Panel shall be

8 deemed to be an agency.

9 ‘‘(c) INDEPENDENCE.—In the performance of their

10 functions, the members, employees, and other personnel

11 of the Panel shall not be responsible to or subject to the

12 supervision or direction of any officer, employee, or agent

13 of any other part of the Department of Transportation.

14 ‘‘(d) REPRESENTATION BY ATTORNEYS.—Attorneys

15 designated by the Director of the Panel may appear for,

16 and represent the Panel in, any civil action brought in con17 nection with any function carried out by the Panel pursu18 ant to this chapter or subtitle IV or as otherwise author19 ized by law.

20 ‘‘(e) ADMISSION TO PRACTICE.—Subject to section

21 500 of title 5, the Panel may regulate the admission of

22 individuals to practice before it and may impose a reason23 able admission fee.

24 ‘‘(f) BUDGET REQUESTS.—In each annual request

25 for appropriations by the President, the Secretary of

26 Transportation shall identify the portion thereof intended
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1 for the support of the Panel and include a statement by

2 the Panel—

3 ‘‘(1) showing the amount requested by the

4 Panel in its budgetary presentation to the Secretary

5 and the Office of Management and Budget; and

6 ‘‘(2) an assessment of the budgetary needs of

7 the Panel.

8 ‘‘(g) DIRECT TRANSMITTAL TO CONGRESS.—The

9 Panel shall transmit to Congress copies of budget esti10 mates, requests, and information (including personnel

11 needs), legislative recommendations, prepared testimony

12 for congressional hearings, and comments on legislation

13 at the same time they are sent to the Secretary of Trans14 portation. An officer of an agency may not impose condi15 tions on or impair communications by the Panel with Con16 gress, or a committee or member of Congress, about the

17 information.

18 ‘‘§ 704. Annual report

19 ‘‘The Panel shall annually transmit to the Congress

20 a report on its activities.

21 ‘‘§ 705. Authorization of appropriations

22 ‘‘There are authorized to be appropriated to the Sec23 retary of Transportation for the activities of the Panel—

24 ‘‘(1) $8,421,000 for fiscal year 1996;

25 ‘‘(2) $12,000,000 for fiscal year 1997; and
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1 ‘‘(3) $12,000,000 for fiscal year 1998.

2 ‘‘§ 706. Reporting official action

3 ‘‘(a) The Panel shall make a written report of each

4 proceeding conducted on complaint or on its own initiative

5 and furnish a copy to each party to that proceeding. The

6 report shall include the findings, conclusions, and the

7 order of the Panel and, if damages are awarded, the find8 ings of fact supporting the award. The Panel may have

9 its reports published for public use. A published report

10 of the Panel is competent evidence of its contents.

11 ‘‘(b)(1) When action of the Panel in a matter related

12 to a rail carrier is taken by the Panel, an individual mem13 ber of the Panel, or another individual or group of individ14 uals designated to take official action for the Panel, the

15 written statement of that action (including a report, order,

16 decision and order, vote, notice, letter, policy statements,

17 or regulation) shall indicate—

18 ‘‘(A) the official designation of the individual or

19 group taking the action;

20 ‘‘(B) the name of each individual taking, or

21 participating in taking, the action; and

22 ‘‘(C) the vote or position of each participating

23 individual.

24 ‘‘(2) If an individual member of a group taking an

25 official action referred to in paragraph (1) of this sub-
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1 section does not participate in it, the written statement

2 of the action shall indicate that the member did not par3 ticipate. An individual participating in taking an official

4 action is entitled to express the views of that individual

5 as part of the written statement of the action. In addition

6 to any publication of the written statement, it shall be

7 made available to the public under section 552(a) of title

8 5.

9 ‘‘SUBCHAPTER II—ADMINISTRATIVE

10 ‘‘§ 721. Powers

11 ‘‘(a) The Panel shall carry out this chapter and sub12 title IV. Enumeration of a power of the Panel in this chap13 ter or subtitle IV does not exclude another power the

14 Panel may have in carrying out this chapter or subtitle

15 IV. The Panel may prescribe regulations in carrying out

16 this chapter and subtitle IV.

17 ‘‘(b) The Panel may—

18 ‘‘(1) inquire into and report on the manage19 ment of the business of carriers providing, and bro20 kers for, transportation and services subject to sub21 title IV;

22 ‘‘(2) inquire into and report on the manage23 ment of the business of a person controlling, con24 trolled by, or under common control with those car25 riers or brokers to the extent that the business of
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1 that person is related to the management of the

2 business of that carrier or broker; and

3 ‘‘(3) obtain from those carriers, brokers, and

4 persons information the Panel decides is necessary

5 to carry out subtitle IV.

6 ‘‘(c)(1) The Panel may subpoena witnesses and

7 records related to a proceeding of the Panel from any

8 place in the United States, to the designated place of the

9 proceeding. If a witness disobeys a subpoena, the Panel,

10 or a party to a proceeding before the Panel, may petition

11 a court of the United States to enforce that subpoena.

12 ‘‘(2) The district courts of the United States have

13 jurisdiction to enforce a subpoena issued under this sec14 tion. Trial is in the district in which the proceeding is con15 ducted. The court may punish a refusal to obey a sub16 poena as a contempt of court.

17 ‘‘(d)(1) In a proceeding, the Panel may take the testi18 mony of a witness by deposition and may order the witness

19 to produce records. A party to a proceeding pending before

20 the Panel may take the testimony of a witness by deposi21 tion and may require the witness to produce records at

22 any time after a proceeding is at issue on petition and

23 answer.

24 ‘‘(2) If a witness fails to be deposed or to produce

25 records under paragraph (1) of this subsection, the Panel
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1 may subpoena the witness to take a deposition, produce

2 the 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

12 must be given in writing by the party or the attorney of

13 that party proposing to take a deposition to the opposing

14 party or the attorney of record of that party, whoever is

15 nearest. The notice shall state the name of the witness

16 and the time and place of taking the deposition.

17 ‘‘(5) The testimony of a person deposed under this

18 subsection shall be taken under oath. The person taking

19 the deposition shall prepare, or cause to be prepared, a

20 transcript of the testimony taken. The transcript shall be

21 subscribed 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

24 person designated by the Panel or agreed on by the parties
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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

4 whose deposition is taken under this section and the indi5 vidual taking the deposition are entitled to the same fees

6 and mileage paid for those services in the courts of the

7 United States.

8 ‘‘§ 722. Panel action

9 ‘‘(a) Unless otherwise provided in subtitle IV, the

10 Panel may determine, within a reasonable time, when its

11 actions, other than an action ordering the payment of

12 money, take effect.

13 ‘‘(b) An action of the Panel remains in effect under

14 its own terms or until superseded. The Panel may change,

15 suspend, or set aside any such action on notice. Notice

16 may be given in a manner determined by the Panel. A

17 court of competent jurisdiction may suspend or set aside

18 any such action.

19 ‘‘(c) The Panel may, at any time on its own initiative

20 because of material error, new evidence, or substantially

21 changed circumstances—

22 ‘‘(1) reopen a proceeding;

23 ‘‘(2) grant rehearing, reargument, or reconsid24 eration of an action of the Panel; or

25 ‘‘(3) change an action of the Panel.
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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,

7 or 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 sec15 tion shall be in writing and filed with the Panel.

16 ‘‘(c) Except as otherwise provided, notices of the

17 Panel shall be served on its designated agent at the office

18 or usual place of residence in the District of Columbia of

19 that agent. A notice of action of the Panel shall be served

20 immediately on the agent or in another manner provided

21 by law. If that carrier does not have a designated agent,

22 service may be made by posting the notice in the office

23 of the Panel.

24 ‘‘(d) In a proceeding involving the lawfulness of clas25 sifications, rates, or practices of a rail carrier that has
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1 not designated an agent under this section, service of no2 tice of the Panel on an attorney in fact for the carrier

3 constitutes service of notice on the carrier.

4 ‘‘§ 724. Service of process in court proceedings

5 ‘‘(a) A carrier providing transportation subject to the

6 jurisdiction of the Panel under subtitle IV shall designate

7 an agent in the District of Columbia on whom service of

8 process in an action before a district court may be made.

9 Except as otherwise provided, process in an action before

10 a district court shall be served on the designated agent

11 of that carrier at the office or usual place of residence

12 in the District of Columbia of that agent. If the carrier

13 does not have a designated agent, service may be made

14 by posting the notice in the office of the Panel.

15 ‘‘(b) A designation under this section may be changed

16 at any time in the same manner as originally made.

17 ‘‘§ 725. National organization of State commissions

18 ‘‘The Administrator of General Services shall assign

19 space and facilities for the use of the national organization

20 of the State commissions and their representatives. The

21 space and facilities shall be available for the use of the

22 State commissions and their representatives cooperating

23 with the Panel or with another department, agency, or in24 strumentality of the United States Government. The rent-
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1 al for such space shall be paid by the national organiza2 tion’s Federal agency members other than the Panel.

3 ‘‘§ 726. Administrative support

4 ‘‘The Secretary of Transportation shall provide ap5 propriate administrative support for the Panel.

6 ‘‘§ 727. Definitions

7 ‘‘All terms used in this chapter that are defined in

8 subtitle IV shall have the meaning given those terms in

9 that subtitle.’’.

10 (b) TABLE OF CHAPTERS AMENDMENT.—The table

11 of chapters of subtitle I of title 49, United States Code,

12 is amended by adding at the end the following new item:

‘‘7. TRANSPORTATION ADJUDICATION PANEL ................... 701’’.

13 SEC. 202. REORGANIZATION.

14 The Director of the Transportation Adjudication

15 Panel (in this Act referred to as the ‘‘Panel’’) may allocate

16 or reallocate any function of the Panel, consistent with

17 this title and subchapter I of chapter 7, as amended by

18 section 201 of this title, among the members or employees

19 of the Panel, and may establish, consolidate, alter, or dis20 continue in the Panel any organizational entities that were

21 entities of the Interstate Commerce Commission, as the

22 Director considers necessary or appropriate.

23 SEC. 203. TRANSFER OF ASSETS.

24 Except as otherwise provided in this Act and the

25 amendments made by this Act, so much of the personnel,
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1 property, records, and unexpended balances of appropria2 tions, allocations, and other funds employed, used, held,

3 available, or to be made available in connection with a

4 function transferred to the Panel by this Act shall be

5 available to the Panel at such time or times as the Presi6 dent directs for use in connection with the functions trans7 ferred.

8 SEC. 204. SAVING PROVISIONS.

9 (a) LEGAL DOCUMENTS.—All orders, determinations,

10 rules, regulations, permits, grants, loans, contracts, agree11 ments, certificates, licenses, and privileges—

12 (1) that have been issued, made, granted, or al13 lowed to become effective by the President, the

14 Interstate Commerce Commission, any officer or em15 ployee of the Interstate Commerce Commission, or

16 any other Government official, or by a court of com17 petent jurisdiction, in the performance of any func18 tion that is transferred by this Act or the amend19 ments made by this Act; and

20 (2) that are in effect on the effective date of

21 such transfer (or become effective after such date

22 pursuant to their terms as in effect on such effective

23 date),

24 shall continue in effect according to their terms until

25 modified, terminated, superseded, set aside, or revoked in
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1 accordance with law by the President, the Panel, any other

2 authorized official, a court of competent jurisdiction, or

3 operation of law.

4 (b) PROCEEDINGS.—(1) Except as provided in para5 graph (2), the Panel shall assume responsibility for the

6 continuation of all proceedings pending before the Inter7 state Commerce Commission, and shall complete such pro8 ceedings in accordance with law and regulations as in ef9 fect before the date of the enactment of this Act.

10 (2) In the case of a proceeding under a provision of

11 law repealed, and not reenacted, by this Act, such proceed12 ing shall be terminated.

13 (c) SUITS.—(1) This Act shall not affect suits com14 menced before the date of the enactment of this Act, ex15 cept that the Panel shall assume the position of the Inter16 state Commerce Commission, and, except as provided in

17 paragraph (2), in all such suits, proceeding shall be had,

18 appeals taken, and judgments rendered in the same man19 ner and with the same effect as if this Act had not been

20 enacted.

21 (2) If the court in a suit described in paragraph (1)

22 remands a case to the Panel, subsequent proceedings re23 lated to such case shall proceed in accordance with appli24 cable law and regulations as in effect at the time of such

25 subsequent proceedings.
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1 (d) EXERCISE OF AUTHORITIES.—Except as other2 wise provided by law, an officer or employee of the Panel

3 may, for purposes of performing a function transferred by

4 this Act or the amendments made by this Act, exercise

5 all authorities under any other provision of law that were

6 available with respect to the performance of that function

7 to the official responsible for the performance of the func8 tion immediately before the effective date of the transfer

9 of the function under this Act or the amendments made

10 by this Act.

11 SEC. 205. REFERENCES.

12 Any reference to the Interstate Commerce Commis13 sion in any other Federal law, Executive order, rule, regu14 lation, or delegation of authority, or any document of or

15 pertaining to the Interstate Commerce Commission or an

16 officer or employee of the Interstate Commerce Commis17 sion, is deemed to refer to the Panel or a member or em18 ployee of the Panel, as appropriate.

19 TITLE III—CONFORMING

20 AMENDMENTS

21 Subtitle A—Amendments to United

22 States Code

23 SEC. 301. TITLE 5 AMENDMENTS.

24 (a) COMPENSATION FOR POSITIONS AT LEVEL III.—

25 Section 5314 of title 5, United States Code, is amended
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1 by striking ‘‘Chairman, Interstate Commerce Commis2 sion.’’ and inserting in lieu thereof ‘‘Director, Transpor3 tation Adjudication Panel.’’.

4 (b) COMPENSATION FOR POSITIONS AT LEVEL IV.—

5 Section 5315 of title 5, United States Code, is amended

6 by striking ‘‘Members, Interstate Commerce Commis7 sion.’’ and inserting in lieu thereof ‘‘Members, Transpor8 tation Adjudication Panel.’’.

9 SEC. 302. TITLE 11 AMENDMENTS.

10 Subchapter IV of chapter 11 of title 11, United

11 States Code, is amended—

12 (1) by amending section 1162 to read as fol13 lows:

14 ‘‘§ 1162. Definition

15 ‘‘In this subchapter, ‘Panel’ means the ‘‘Transpor16 tation Adjudication Panel.’’; and

17 (2) by striking ‘‘Commission’’ each place it ap18 pears and inserting in lieu thereof ‘‘Panel’’.

19 SEC. 303. TITLE 18 AMENDMENT.

20 Section 6001(1) of title 18, United States Code, is

21 amended by striking ‘‘Interstate Commerce Commission’’

22 and inserting in lieu thereof ‘‘Transportation Adjudication

23 Panel’’.
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1 SEC. 304. INTERNAL REVENUE CODE OF 1986 AMEND2 MENTS.

3 (a) SECTION 3231.—Section 3231 of the Internal

4 Revenue Code of 1986 is amended—

5 (1) by striking ‘‘Interstate Commerce Commis6 sion’’ in subsection (a) and inserting in lieu thereof

7 ‘‘Transportation Adjudication Panel’’; and

8 (2) by striking ‘‘an express carrier, sleeping car

9 carrier, or’’ in subsection (g) and inserting in lieu

10 thereof ‘‘a’’.

11 (b) SECTION 7701.—Section 7701 of the Internal

12 Revenue Code of 1986 is amended—

13 (1) in paragraph (33)(B), by striking ‘‘Federal

14 Power Commission’’ and inserting in lieu thereof

15 ‘‘Federal Energy Regulatory Commission’’;

16 (2) in paragraph (33)(C)(i), by striking ‘‘Inter17 state Commerce Commission’’ and inserting in lieu

18 thereof ‘‘Transportation Adjudication Panel’’;

19 (3) in paragraph (33)(C)(ii), by striking ‘‘Inter20 state Commerce Commission’’ and inserting in lieu

21 thereof ‘‘Federal Energy Regulatory Commission’’;

22 (4) in paragraph (33)(F), by striking ‘‘Inter23 state Commerce Commission under subchapter III of

24 chapter 105’’ and inserting in lieu thereof ‘‘Trans25 portation Adjudication Panel under subchapter II of

26 chapter 135’’;
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1 (5) in paragraph (33)(G), by striking ‘‘sub2 chapter I of chapter 105’’ and inserting in lieu

3 thereof ‘‘part A of subtitle IV’’; and

4 (6) in paragraph (33)(H), by striking ‘‘sub5 chapter I of chapter 105’’ and inserting in lieu

6 thereof ‘‘part A of subtitle IV’’.

7 SEC. 305. TITLE 28 AMENDMENTS.

8 (a) CHAPTER 157 AMENDMENTS.—(1) Chapter 157

9 of title 28, United States Code, is amended—

10 (A) by striking ‘‘INTERSTATE COM11 MERCE COMMISSION’’ in the chapter head12 ing and inserting in lieu thereof ‘‘TRANSPOR13 TATION ADJUDICATION PANEL’’;

14 (B) by striking ‘‘Commission’s’’ in the sec15 tion heading of section 2321 and inserting in lieu

16 thereof ‘‘Panel’s’’;

17 (C) by striking ‘‘Interstate Commerce Commis18 sion’’ each place it appears and inserting in lieu

19 thereof ‘‘Transportation Adjudication Panel’’;

20 (D) by striking ‘‘Commission’s’’ each place it

21 appears and inserting in lieu thereof ‘‘Panel’s’’; and

22 (E) by striking ‘‘Commission’’ each place it ap23 pears and inserting in lieu thereof ‘‘Panel’’.

24 (2)(A) The item relating to chapter 157 in the table

25 of chapters of title 28, United States Code, is amended
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1 by striking ‘‘Interstate Commerce Commission’’ and in2 serting in lieu thereof ‘‘Transportation Adjudication

3 Panel’’.

4 (B) The item relating to section 2321 in the table

5 of sections of chapter 157 of title 28, United States Code,

6 is amended by striking ‘‘Commission’s’’ and inserting in

7 lieu thereof ‘‘Panel’s’’.

8 (b) CHAPTER 158 AMENDMENTS.—Chapter 158 of

9 title 28, United States Code, is amended—

10 (1) by striking ‘‘the Interstate Commerce Com11 mission,’’ in section 2341(3)(A);

12 (2) by striking ‘‘and’’ at the end of section

13 2341(3)(C);

14 (3) by striking the period at the end of section

15 2341(3)(D) and inserting in lieu thereof ‘‘; and’’;

16 (4) by inserting at the end of section 2341(3)

17 the following new subparagraph:

18 ‘‘(E) the Panel, when the order was en19 tered by the Transportation Adjudication

20 Panel.’’; and

21 (5) in section 2342, by—

22 (A) inserting ‘‘or pursuant to part B of

23 subtitle IV of title 49, United States Code’’ at

24 the end of paragraph (3)(A); and
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1 (B) striking paragraph (5) and inserting

2 the following:

3 ‘‘(5) all rules, regulations, or final orders of the

4 Transportation Adjudication Panel made reviewable

5 by section 2321 of this title; and’’.

6 SEC. 306. TITLE 39 AMENDMENTS.

7 Title 39, United States Code, is amended—

8 (1) in section 5005(b)(3), by striking ‘‘Inter9 state Commerce Commission’’ and inserting in lieu

10 thereof ‘‘Transportation Adjudication Panel’’; and

11 (2) in chapter 52—

12 (A) by amending paragraph (1) of section

13 5201 to read as follows:

14 ‘‘(1) ‘Panel’ means the Transportation Adju15 dication Panel;’’;

16 (B) by striking subsection (f) of section

17 5203, and redesignating subsection (g) of such

18 section as subsection (f);

19 (C) in subsection (f) of section 5203, as so

20 redesignated by subparagraph (B) of this para21 graph, by striking ‘‘Commission’’ and inserting

22 in lieu thereof ‘‘Panel’’;

23 (D) by striking ‘‘Interstate Com24 merce Commission’’ in the section heading
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1 of section 5207 and inserting in lieu thereof

2 ‘‘Transportation Adjudication Panel’’;

3 (E) by striking ‘‘Commission’s’’ in section

4 5208(a) and inserting in lieu thereof ‘‘Panel’s’’;

5 (F) by striking ‘‘Commission’’ each place it

6 appears and inserting in lieu thereof ‘‘Panel’’;

7 and

8 (G) in the item relating to section 5207 in

9 the table of sections, by striking ‘‘Interstate

10 Commerce Commission’’ and inserting in lieu

11 thereof ‘‘Transportation Adjudication Panel’’.

12 SEC. 307. TITLE 49 AMENDMENTS.

13 Title 49, United States Code, is amended—

14 (1) in section 22106(e)(1) by striking ‘‘applica15 tion for abandonment of’’ and inserting in lieu there16 of ‘‘notice of intent to abandon’’; and

17 (2) by repealing subsection (d) of section

18 24705.

19 Subtitle B—Other Amendments

20 SEC. 311. AGRICULTURAL ADJUSTMENT ACT OF 1938

21 AMENDMENT.

22 Section 201 of the Agricultural Adjustment Act of

23 1938 (7 U.S.C. 1291) is amended—
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1 (1) by striking ‘‘Interstate Commerce Commis2 sion’’ each place it appears and inserting in lieu

3 thereof ‘‘Transportation Adjudication Panel’’;

4 (2) by striking ‘‘Commission’’ each place it ap5 pears and inserting in lieu thereof ‘‘Panel’’; and

6 (3) by striking ‘‘Commission’s’’ in subsection

7 (b) and inserting in lieu thereof ‘‘Panel’s’’.

8 SEC. 312. ANIMAL WELFARE ACT AMENDMENT.

9 Section 15(a) of the Animal Welfare Act (7 U.S.C.

10 2145(a)) is amended by striking ‘‘Interstate Commerce

11 Commission’’ and inserting in lieu thereof ‘‘Transpor12 tation Adjudication Panel’’.

13 SEC. 313. FEDERAL ELECTION CAMPAIGN ACT OF 1971

14 AMENDMENTS.

15 Section 401 of the Federal Election Campaign Act

16 of 1971 is amended—

17 (1) by striking ‘‘Interstate Commerce Commis18 sion shall each promulgate, within ninety days after

19 the date of enactment of this Act’’ and inserting in

20 lieu thereof ‘‘Transportation Adjudication Panel

21 shall each maintain’’; and

22 (2) by inserting ‘‘or Board’’ after ‘‘or such

23 Commission’’.
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1 SEC. 314. FAIR CREDIT REPORTING ACT AMENDMENT.

2 Section 621(b)(4) of the Fair Credit Reporting Act

3 (15 U.S.C. 1681s(b)(4)) is amended by striking ‘‘Inter4 state Commerce Commission with respect to any common

5 carrier subject to those Acts’’ and inserting in lieu thereof

6 ‘‘Secretary of Transportation, with respect to all carriers

7 subject to the jurisdiction of the Transportation Adjudica8 tion Panel’’.

9 SEC. 315. EQUAL CREDIT OPPORTUNITY ACT AMENDMENT.

10 Section 704(a)(4) of the Equal Credit Opportunity

11 Act (15 U.S.C. 1691c(a)(4)) is amended by striking

12 ‘‘Interstate Commerce Commission with respect to any

13 common carrier subject to those Acts’’ and inserting in

14 lieu thereof ‘‘Secretary of Transportation, with respect to

15 all carriers subject to the jurisdiction of the Transpor16 tation Adjudication Panel’’.

17 SEC. 316. FAIR DEBT COLLECTION PRACTICES ACT AMEND18 MENT.

19 Section 814(b)(4) of the Fair Debt Collection Prac20 tices Act (15 U.S.C. 1692l(b)(4)) is amended by striking

21 ‘‘Interstate Commerce Commission with respect to any

22 common carrier subject to those Acts’’ and inserting in

23 lieu thereof ‘‘Secretary of Transportation, with respect to

24 all carriers subject to the jurisdiction of the Transpor25 tation Adjudication Panel’’.
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1 SEC. 317. NATIONAL TRAILS SYSTEM ACT AMENDMENTS.

2 The National Trails System Act is amended—

3 (1) in section 8(d)—

4 (A) by striking ‘‘Chairman of the Inter5 state Commerce Commission’’ and inserting in

6 lieu thereof ‘‘Director of the Transportation

7 Adjudication Panel’’; and

8 (B) by striking ‘‘Commission’’ and insert9 ing in lieu thereof ‘‘Panel’’; and

10 (2) in section 9(b), by striking ‘‘Interstate

11 Commerce Commission’’ and inserting in lieu thereof

12 ‘‘Transportation Adjudication Panel’’.

13 SEC. 318. CLAYTON ACT AMENDMENTS.

14 The Clayton Act is amended—

15 (1) in section 7 (15 U.S.C. 18)—

16 (A) by striking ‘‘Interstate Commerce

17 Commission’’ and inserting in lieu thereof

18 ‘‘Transportation Adjudication Panel’’; and

19 (B) by inserting ‘‘, Board,’’ after ‘‘vesting

20 such power in such Commission’’;

21 (2) in section 11(a) (15 U.S.C. 21(a)), by strik22 ing ‘‘Interstate Commerce Commission where appli23 cable to common carriers subject to the Interstate

24 Commerce Act, as amended’’ and inserting in lieu

25 thereof ‘‘Transportation Adjudication Panel where
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1 applicable to common carriers subject to subtitle IV

2 of title 49, United States Code’’; and

3 (3) in section 16 (15 U.S.C. 22), by striking

4 ‘‘in equity for injunctive relief’’ and all that follows

5 through ‘‘Interstate Commerce Commission’’ and in6 serting in lieu thereof ‘‘for injunctive relief against

7 any common carrier subject to the jurisdiction of the

8 Transportation Adjudication Panel under subtitle IV

9 of title 49, United States Code’’.

10 SEC. 319. INSPECTOR GENERAL ACT OF 1978 AMENDMENT.

11 Section 8G(a)(2) of the Inspector General Act of

12 1978 (5 U.S.C. App.) is amended by striking ‘‘the Inter13 state Commerce Commission,’’.

14 SEC. 320. ENERGY POLICY ACT OF 1992 AMENDMENTS.

15 Subsections (a) and (d) of section 1340 of the Energy

16 Policy Act of 1992 (42 U.S.C. 13369(a) and (d)) are

17 amended by striking ‘‘Interstate Commerce Commission’’

18 and inserting in lieu thereof ‘‘Transportation Adjudication

19 Panel’’.

20 SEC. 321. MERCHANT MARINE ACT, 1920, AMENDMENTS

21 The Merchant Marine Act, 1920, is amended—

22 (1) in section 8 (46 U.S.C. App. 867)—

23 (A) by striking ‘‘Interstate Commerce

24 Commission’’ both places it appears and insert-
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1 ing in lieu thereof ‘‘Transportation Adjudica2 tion Panel’’; and

3 (B) by striking ‘‘commission’’ and insert4 ing in lieu thereof ‘‘board’’; and

5 (2) in section 28 (46 U.S.C. App. 884)—

6 (A) by striking ‘‘Interstate Commerce

7 Commission’’ and inserting in lieu thereof

8 ‘‘Transportation Adjudication Panel’’; and

9 (B) by striking ‘‘commission’’ each place it

10 appears and inserting in lieu thereof ‘‘Panel’’.

11 SEC. 322. RAILWAY LABOR ACT AMENDMENTS.

12 Section 1 of the Railway Labor Act (45 U.S.C. 151)

13 is amended—

14 (1) by striking ‘‘express company, sleeping-car

15 company, carrier by railroad, subject to the Inter16 state Commerce Act’’ in the first paragraph and in17 serting in lieu thereof ‘‘railroad subject to the juris18 diction of the Transportation Adjudication Panel’’;

19 (2) by striking ‘‘Interstate Commerce Commis20 sion’’ each place it appears in the first and fifth

21 paragraphs and inserting in lieu thereof ‘‘Transpor22 tation Adjudication Panel’’; and

23 (3) by striking ‘‘Commission’’ each place it ap24 pears in the fifth paragraph and inserting in lieu

25 thereof ‘‘Panel’’.
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1 SEC. 323. RAILROAD RETIREMENT ACT OF 1974 AMEND2 MENTS.

3 Section 1 of the Railroad Retirement Act of 1974 (45

4 U.S.C. 231) is amended—

5 (1) by amending subsection (a)(1)(i) to read as

6 follows:

7 ‘‘(i) any carrier by railroad subject to the juris8 diction of the Transportation Adjudication Panel

9 under part A of subtitle IV of title 49, United States

10 Code;’’;

11 (2) by striking ‘‘Interstate Commerce Commis12 sion is hereby authorized and directed upon request

13 of the Board’’ in subsection (a)(2)(ii) and inserting

14 in lieu thereof ‘‘Transportation Adjudication Panel

15 is hereby authorized and directed upon request of

16 the Railroad Retirement Board’’; and

17 (3) by striking ‘‘Interstate Commerce Commis18 sion’’ in subsection (o) and inserting in lieu thereof

19 ‘‘Transportation Adjudication Panel’’.

20 SEC. 324. RAILROAD UNEMPLOYMENT INSURANCE ACT

21 AMENDMENTS.

22 The Railroad Unemployment Insurance Act is

23 amended—

24 (1) by striking ‘‘Interstate Commerce Commis25 sion is hereby authorized and directed upon request

26 of the Board’’ in section 1(a) (45 U.S.C. 351(a))
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1 and inserting in lieu thereof ‘‘Transportation Adju2 dication Panel is hereby authorized and directed

3 upon request of the Railroad Retirement Board’’;

4 (2) by amending paragraph (b) of such section

5 1 to read as follows:

6 ‘‘(b) The term ‘carrier’ means a railroad subject to

7 the jurisdiction of the Transportation Adjudication Panel

8 under part A of subtitle IV of title 49, United States

9 Code.’’;

10 and

11 (3) by striking ‘‘Interstate Commerce Commis12 sion, adjusted, as determined by the Board’’ in sec13 tion 2(h)(3) (45 U.S.C. 352(h)(3)) and inserting in

14 lieu thereof ‘‘Transportation Adjudication Panel, ad15 justed, as determined by the Railroad Retirement

16 Board’’.

17 SEC. 325. EMERGENCY RAIL SERVICES ACT OF 1970 AMEND18 MENTS.

19 The Emergency Rail Services Act of 1970 is amend20 ed—

21 (1) by amending paragraph (2) of section 2 (45

22 U.S.C. 661(2)) to read as follows:

23 ‘‘(2) ‘Panel’ means the Transportation Adju24 dication Panel.’’;
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1 (2) by striking ‘‘Interstate Commerce Commis2 sion’’ in section 6(a) (45 U.S.C. 665(a)) and insert3 ing in lieu thereof ‘‘Panel’’; and

4 (3) by striking ‘‘Commission’’ each place it ap5 pears and inserting in lieu thereof ‘‘Panel’’.

6 SEC. 326. ALASKA RAILROAD TRANSFER ACT OF 1982

7 AMENDMENTS.

8 Section 608 of the Alaska Railroad Transfer Act of

9 1982 (45 U.S.C. 1207) is amended by striking ‘‘Interstate

10 Commerce Commission’’ each place it appears and insert11 ing in lieu thereof ‘‘Transportation Adjudication Panel’’.

12 SEC. 327. REGIONAL RAIL REORGANIZATION ACT OF 1973

13 AMENDMENTS.

14 The Regional Rail Reorganization Act of 1973 is

15 amended—

16 (1) in section 304(d)(3) (45 U.S.C.

17 744(d)(3))—

18 (A) by striking ‘‘this title,’’ and all that

19 follows through ‘‘(A) shall take’’ and inserting

20 in lieu thereof ‘‘this title, the Commission shall

21 take’’; and

22 (B) by striking ‘‘this subsection; and’’ and

23 all that follows through ‘‘205(d)(6) of this Act’’

24 and inserting in lieu thereof ‘‘this subsection’’;

25 (2) in section 308 (45 U.S.C. 748)—
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1 (A) by repealing subsection (d); and

2 (B) by striking the first sentence of sub3 section (f); and

4 (3) in section 707 (45 U.S.C. 797f)—

5 (A) by inserting ‘‘(a)’’ at the beginning of

6 the text; and

7 (B) by adding at the end the following new

8 subsections:

9 ‘‘(b) Notwithstanding any agreement or arrangement

10 in effect as of the date of the enactment of this subsection,

11 the Corporation may not sell or transfer ownership or

12 management, in whole or in part, of any facility acquired

13 by the Corporation under this Act that is used for the

14 repair, rehabilitation, or maintenance of cars or loco15 motives, without first obtaining the expess consent of the

16 authorized representatives of the employees at such facil17 ity covered by collective bargaining agreements. Any

18 transaction undertaken in violation of this subsection shall

19 be considered a change in the status quo in violation of

20 the Railway Labor Act.

21 ‘‘(c) Notwithstanding any agreement or arrangement

22 in effect as of the date of the enactment of this subsection,

23 any transfer by the Corporation of ownership, in whole

24 or in part, of a car or locomotive that was repaired, reha25 bilitated, or maintained, before the date of the enactment
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1 of this subsection, at a facility acquired by the Corporation

2 under this Act, without first obtaining the express consent

3 of the authorized representatives of the employees at such

4 facility covered by collective bargaining agreements, is pro5 hibited. Any transaction undertaken in violation of this

6 subsection shall be considered a change in the status quo

7 in violation of the Railway Labor Act.’’.

8 SEC. 328. MILWAUKEE RAILROAD RESTRUCTURING ACT

9 AMENDMENT.

10 Section 18 of the Milwaukee Railroad Restructuring

11 Act (45 U.S.C. 916) is repealed.

12 SEC. 329. ROCK ISLAND RAILROAD TRANSITION AND EM13 PLOYEE ASSISTANCE ACT AMENDMENTS.

14 The Rock Island Railroad Transition and Employee

15 Assistance Act is amended—

16 (1) in section 104(a) (45 U.S.C. 1003(a)) by

17 striking ‘‘section 11125 of title 49, United States

18 Code, or’’; and

19 (2) by repealing section 120 (45 U.S.C. 1015).

20 SEC. 330. RAILROAD REVITALIZATION AND REGULATORY

21 REFORM ACT OF 1976 AMENDMENTS.

22 The Railroad Revitalization and Regulatory Reform

23 Act of 1976 is amended—

24 (1) in section 505(a)(3) (45 U.S.C.

25 825(a)(3))—
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1 (A) by striking ‘‘A financially responsible

2 person (as defined in section 10910(a)(1) of

3 title 49, United States Code)’’ and inserting in

4 lieu thereof ‘‘(A) A financially responsible per5 son’’; and

6 (B) by inserting at the end the following

7 new subparagraph:

8 ‘‘(B) For purposes of this paragraph, the term ‘finan9 cially responsible person’ means a person who (i) is capa10 ble of paying the constitutional minimum value of the rail11 road line proposed to be acquired, and (ii) is able to assure

12 that adequate transportation will be provided over such

13 line for a period of not less than 3 years. Such term in14 cludes a governmental authority but does not include a

15 class I or class II rail carrier.’’;

16 (2) in section 509(b) (45 U.S.C. 829(b)) by

17 striking paragraph (2); and

18 (3) in section 510 (45 U.S.C. 830) by striking

19 ‘‘the provisions of section 20a of the Interstate Com20 merce Act (49 U.S.C. 20a), nor’’.

21 SEC. 331. SERVICE CONTRACT ACT OF 1965 AMENDMENT.

22 Section 7(3) of the Service Contract Act of 1965 (41

23 U.S.C. 356(3)) is amended by striking ‘‘where published

24 tariff rates are in effect’’.
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1 SEC. 332. FISCAL YEAR 1982 CONTINUING RESOLUTION

2 AMENDMENT.

3 Section 115 of the Joint Resolution entitled ‘‘Joint

4 Resolution making further continuing appropriations for

5 the fiscal year 1982, and for other purposes’’ (95 Stat.

6 1196) is repealed.

7 SEC. 333. MIGRANT AND SEASONAL AGRICULTURAL WORK8 ER PROTECTION ACT.

9 Section 401(b) of the Migrant and Seasonal Agricul10 tural Worker Protection Act (29 U.S.C. 1841(b)) is

11 amended by—

12 (1) striking ‘‘part II of the Interstate Com13 merce Act (49 U.S.C. 301 et seq.) , or any successor

14 provision of’’ in paragraph (2)(C) and inserting

15 ‘‘part B of’’; and

16 (2) striking ‘‘part II of the Interstate Com17 merce Act (49 U.S.C. 301 et seq.), and any succes18 sor provision of’’ in paragraph (3) and inserting

19 ‘‘part B of’’.

20 SEC. 334. FEDERAL AVIATION ADMINISTRATION AUTHOR21 IZATION ACT OF 1994.

22 Section 601(d) of the Federal Aviation Administra23 tion Authorization Act of 1994 (Public Law 103–305) is

24 amended by striking all after ‘‘subsection (c)’’ and insert25 ing ‘‘shall not take effect as long as section 11501(g)(2)

26 of title 49, United States Code, applies to that State.’’.
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1 SEC. 335. TERMINATION OF CERTAIN MARITIME AUTHOR2 ITY.

3 (a) REPEAL OF INTERCOASTAL SHIPPING ACT,

4 1933.—The Act of March 3, 1933 (Chapter 199; 46 App.

5 U.S.C. 843 et seq.), commonly referred to as the

6 Intercoastal Shipping Act, 1933, is repealed effective Sep7 tember 30, 1996.

8 (b) REPEAL OF PROVISIONS OF SHIPPING ACT,

9 1916.—The following provisions of the Shipping Act,

10 1916, are repealed effective September 30, 1996:

11 (1) Section 3 (46 U.S.C. App. 804).

12 (2) Section 14 (46 U.S.C. App. 812).

13 (3) Section 15 (46 U.S.C. App. 814).

14 (4) Section 16 (46 U.S.C. App. 815).

15 (5) Section 17 (46 U.S.C. App. 816).

16 (6) Section 18 (46 U.S.C. App. 817).

17 (7) Section 19 (46 U.S.C. App. 818).

18 (8) Section 20 (46 U.S.C. App. 819).

19 (9) Section 21 (46 U.S.C. App. 820).

20 (10) Section 22 (46 U.S.C. App. 821).

21 (11) Section 23 (46 U.S.C. App. 822).

22 (12) Section 24 (46 U.S.C. App. 823).

23 (13) Section 25 (46 U.S.C. App. 824).

24 (14) Section 27 (46 U.S.C. App. 826).

25 (15) Section 29 (46 U.S.C. App. 828).

26 (16) Section 30 (46 U.S.C. App. 829).
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1 (17) Section 31 (46 U.S.C. App. 830).

2 (18) Section 32 (46 U.S.C. App. 831).

3 (19) Section 33 (46 U.S.C. App. 832).

4 (20) Section 35 (46 U.S.C. App. 833a).

5 (21) Section 43 (46 U.S.C. App. 841a).

6 (22) Section 45 (46 U.S.C. App. 841c).

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