IIA

104TH CONGRESS

1ST SESSION H. R. 2539

IN THE SENATE OF THE UNITED STATES

NOVEMBER 15, 1995

Received; read twice and referred to the Committee on Commerce, Science,

and Transportation

AN ACT

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,
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1 SECTION 1. SHORT TITLE.

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

3 of 1995’’.

4 TITLE I—ABOLITION OF INTER5 STATE COMMERCE COMMIS6 SION

7 SEC. 101. ABOLITION.

8 The Interstate Commerce Commission is abolished.

9 SEC. 102. RAIL PROVISIONS.

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

11 States Code, is amended to read as follows:

12 ‘‘SUBTITLE IV—INTERSTATE TRANSPORTATION

‘‘PART A—RAIL

‘‘CHAPTER Sec.

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

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

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

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

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

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

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

‘‘115. ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND

REMEDIES.

11501

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

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

FREIGHT FORWARDERS

‘‘CHAPTER Sec.

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

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

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

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

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

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

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

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

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

‘‘149. CIVIL AND CRIMINAL PENALTIES ................................... 14901
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1 ‘‘PART A—RAIL

2 ‘‘CHAPTER 101—GENERAL PROVISIONS

‘‘Sec.

‘‘10101. Rail transportation policy.

‘‘10102. Definitions.

‘‘10103. Remedies are exclusive.

3 ‘‘§ 10101. Rail transportation policy

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

5 of the United States Government—

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

7 competition and the demand for services to establish

8 reasonable rates for transportation by rail;

9 ‘‘(2) to minimize the need for Federal regu10 latory control over the rail transportation system

11 and to require fair and expeditious regulatory deci12 sions when regulation is required;

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

15 adequate revenues, as determined by the Panel;

16 ‘‘(4) to ensure the development and continu17 ation of a sound rail transportation system with ef18 fective competition among rail carriers and with

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

20 national defense;

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

22 transportation and to ensure effective competition
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1 and coordination between rail carriers and other

2 modes;

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

4 an absence of effective competition and where rail

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

7 capital;

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

9 and exit from the industry;

10 ‘‘(8) to operate transportation facilities and

11 equipment without detriment to the public health

12 and safety;

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

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

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

18 applicability;

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

20 suitable working conditions in the railroad industry;

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

22 power and to prohibit unlawful discrimination;

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

24 information in regulatory proceedings, while mini25 mizing the burden on rail carriers of developing and
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1 maintaining the capability of providing such infor2 mation; and

3 ‘‘(14) to encourage and promote energy con4 servation.

5 ‘‘§ 10102. Definitions

6 ‘‘In this part—

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

8 supply, movement, distribution, exchange, inter9 change, and return of locomotives, cars, other vehi10 cles, and special types of equipment used in the

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

12 the supply of trains by a rail carrier;

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

14 between persons, includes actual control, legal con15 trol, and the power to exercise control, through or

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

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

18 (B) any other means;

19 ‘‘(3) ‘Panel’ means the Transportation Adju20 dication Panel;

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

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

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

25 common carrier railroad transportation for com-
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1 pensation, but does not include street, suburban, or

2 interurban electric railways not operated as part of

3 the general system of rail transportation;

4 ‘‘(6) ‘railroad’ includes—

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

6 intermodal equipment used by or in connection

7 with a railroad;

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

9 owned by it or operated under an agreement;

10 and

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

13 ground, used or necessary for transportation;

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

15 transportation;

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

17 and the District of Columbia;

18 ‘‘(9) ‘transportation’ includes—

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

21 any kind related to the movement of passengers

22 or property, or both, by rail, regardless of own23 ership or an agreement concerning use; and

24 ‘‘(B) services related to that movement, in25 cluding receipt, delivery, elevation, transfer in
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1 transit, refrigeration, icing, ventilation, storage,

2 handling, and interchange of passengers and

3 property; and

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

5 United States and the District of Columbia.

6 ‘‘§10103. Remedies are exclusive

7 ‘‘Except as otherwise provided in this part, the rem8 edies provided under this part with respect to regulation

9 of rail transportation are exclusive and preempt the rem10 edies provided under Federal or State law.

11 ‘‘CHAPTER 103—JURISDICTION

‘‘Sec.

‘‘10301. General jurisdiction.

‘‘10302. Authority to exempt rail carrier transportation.

12 ‘‘§ 10301. General jurisdiction

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

14 Panel has jurisdiction over transportation by rail carrier

15 that is—

16 ‘‘(A) only by railroad; or

17 ‘‘(B) by railroad and water, when the transpor18 tation is under common control, management, or ar19 rangement for a continuous carriage or shipment.

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

21 transportation in the United States between a place in—

22 ‘‘(A) a State and a place in the same or an23 other State;
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1 ‘‘(B) a State and a place in a territory or pos2 session of the United States;

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

4 States and a place in another such territory or pos5 session;

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

7 States and another place in the same territory or

8 possession;

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

10 the United States through a foreign country; or

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

12 country.

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

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

15 remedies provided in this part with respect to rates,

16 classifications, rules (including car service, inter17 change, and other operating rules), practices, routes,

18 services, and facilities of such carriers; and

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

20 abandonment, or discontinuance of spur, industrial,

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

22 the tracks are located, or intended to be located, en23 tirely in one State,

24 is exclusive.

25 ‘‘(c)(1) In this subsection—
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1 ‘‘(A) the term ‘local governmental authority’—

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

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

4 ‘‘(ii) includes a person or entity that con5 tracts with the local governmental authority to

6 provide transportation services; and

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

8 transportation services described in section 5302(a)

9 of this title that are provided by rail.

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

11 does not have jurisdiction under this part over mass trans12 portation provided by a local governmental authority.

13 ‘‘(3)(A) Notwithstanding paragraph (2) of this sub14 section, a local governmental authority, described in para15 graph (2), is subject to applicable laws of the United

16 States related to—

17 ‘‘(i) safety;

18 ‘‘(ii) the representation of employees for collec19 tive bargaining; and

20 ‘‘(iii) employment retirement, annuity, and un21 employment systems or other provisions related to

22 dealings between employees and employers.

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

24 and 10903 of this title over mass transportation provided

25 by a local governmental authority. The enactment of the
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1 ICC Termination Act of 1995 shall have no effect on

2 which employees and employers are covered by the Rail3 way Labor Act, the Railroad Retirement Act of 1974, the

4 Railroad Retirement Tax Act, and the Railroad Unem5 ployment Insurance Act.

6 ‘‘§ 10302. Authority to exempt rail carrier transpor7 tation

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

9 transportation subject to the jurisdiction of the Panel

10 under this part, the Panel, to the maximum extent consist11 ent with this part, shall exempt a person, class of persons,

12 or a transaction or service whenever the Panel finds that

13 the application of a provision of this part—

14 ‘‘(1) is not necessary to carry out the transpor15 tation policy of section 10101 of this title; and

16 ‘‘(2) either—

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

18 scope; or

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

20 needed to protect shippers from the abuse of

21 market power.

22 ‘‘(b) The Panel may, where appropriate, begin a pro23 ceeding under this section on its own initiative or on appli24 cation by the Secretary of Transportation or an interested
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1 party. The Panel shall, within 90 days after receipt of any

2 such application, determine whether to begin an appro3 priate proceeding. If the Panel decides not to begin a pro4 ceeding, the reasons for the decision shall be published in

5 the Federal Register. Any proceeding begun as a result

6 of an application under this subsection shall be completed

7 within one year after it is begun.

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

9 which an exemption granted under this section is effective.

10 ‘‘(d) The Panel may revoke an exemption, to the ex11 tent it specifies, when it finds that application of a provi12 sion of this part to the person, class, or transportation

13 is necessary to carry out the transportation policy of sec14 tion 10101 of this title. The Panel shall, within 90 days

15 after receipt of a request for revocation under this sub16 section, determine whether to begin an appropriate pro17 ceeding. If the Panel decides not to begin a proceeding,

18 the reasons for the decision shall be published in the Fed19 eral Register. Any proceeding begun as a result of a re20 quest under this subsection shall be completed within one

21 year after it is begun.

22 ‘‘(e) No exemption order issued pursuant to this sec23 tion shall operate to relieve any rail carrier from an obliga24 tion to provide contractual terms for liability and claims

25 which are consistent with the provisions of section 11506
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1 of this title. Nothing in this subsection or section 11506

2 of this title shall prevent rail carriers from offering alter3 native terms nor give the Panel the authority to require

4 any specific level of rates or services based upon the provi5 sions of section 11506 of this title.

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

7 section to exempt transportation that is provided by a rail

8 carrier.

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

10 this section to relieve a rail carrier of its obligation to pro11 tect the interests of employees as required by this part.

12 ‘‘CHAPTER 105—RATES

‘‘SUBCHAPTER I—GENERAL AUTHORITY

‘‘Sec.

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

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

practices.

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

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

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

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

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

‘‘10508. Rail cost adjustment factor.

‘‘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.
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‘‘10545. Demurrage charges.

‘‘10546. Designation of certain routes by shippers.

1 ‘‘SUBCHAPTER I—GENERAL AUTHORITY

2 ‘‘§ 10501. Standards for rates, classifications, through

3 routes, rules, and practices

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

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

6 must be made without unreasonable discrimination

7 against a participating carrier and must be reasonable.

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

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

10 discriminate in its rates against a connecting line of an11 other rail carrier providing transportation subject to the

12 jurisdiction of the Panel under this part or unreasonably

13 discriminate against that line in the distribution of traffic

14 that is not routed specifically by the shipper.

15 ‘‘(c) Except as provided in subsection (d) of this sec16 tion and unless a rate is prohibited by a provision of this

17 part, a rail carrier providing transporation subject to the

18 jurisdiction of the Panel under this part may establish any

19 rate for transportation or other service provided by the

20 rail carrier.

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

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

23 the transportation to which a particular rate applies, the
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1 rate established by such carrier for such transportation

2 must be reasonable.

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

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

5 Panel shall give due consideration to—

6 ‘‘(A) the amount of traffic which is transported

7 at revenues which do not contribute to going concern

8 value and the efforts made to minimize such traffic;

9 ‘‘(B) the amount of traffic which contributes

10 only marginally to fixed costs and the extent to

11 which, if any, rates on such traffic can be changed

12 to maximize the revenues from such traffic; and

13 ‘‘(C) the carrier’s mix of rail traffic to deter14 mine whether one commodity is paying an unreason15 able share of the carrier’s overall revenues,

16 recognizing the policy of this part that rail carriers shall

17 earn adequate revenues, as established by the Panel under

18 section 10504(a)(2) of this title.

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

20 of the enactment of this paragraph, complete the pending

21 Interstate Commerce Commission non-coal rate guidelines

22 proceeding.
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1 ‘‘§ 10502. Authority for rail carriers to establish rates,

2 classifications, rules, and practices

3 ‘‘A rail carrier providing transportation or service

4 subject to the jurisdiction of the Panel under this part

5 shall establish reasonable—

6 ‘‘(1) rates, to the extent required by section

7 10507, divisions of joint rates, and classifications for

8 transportation and service it may provide under this

9 part; and

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

11 that transportation or service.

12 ‘‘§ 10503. Authority for rail carriers to establish

13 through routes

14 ‘‘Rail carriers providing transportation subject to the

15 jurisdiction of the Panel under this part shall establish

16 through routes with each other, shall establish rates and

17 classifications applicable to those routes, and shall estab18 lish rules for their operation and provide—

19 ‘‘(1) reasonable facilities for operating the

20 through route; and

21 ‘‘(2) reasonable compensation to persons enti22 tled to compensation for services related to the

23 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 10902 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, within 90 days after the

11 start of a proceeding, whether the rail carrier proposing

12 the rate has market dominance over the transportation to

13 which the rate applies. The Panel may make that deter14 mination on its own initiative or on complaint. A finding

15 by the Panel that the rail carrier does not have market

16 dominance is determinative in a proceeding under this

17 part related to that rate or transportation unless changed

18 or set aside by the Panel or set aside by a court of com19 petent jurisdiction.

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

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

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

24 to be unreasonable if it exceeds a reasonable maximum

25 for that transportation. However, a finding of market
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1 dominance does not establish a presumption that the pro2 posed rate exceeds a reasonable maximum.

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

5 the challenged rate does not have market dominance over

6 the transportation to which the rate applies if such rail

7 carrier proves that the rate charged results in a revenue8 variable cost percentage for such transportation that is

9 less than 180 percent.

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

11 a rail carrier shall be determined only by using such car12 rier’s unadjusted costs, calculated using the Uniform Rail

13 Costing System cost finding methodology (or an alter14 native methodology adopted by the Panel in lieu thereof)

15 and indexed quarterly to account for current wage and

16 price levels in the region in which the carrier operates,

17 with adjustments specified by the Panel. A rail carrier

18 may meet its burden of proof under this subsection by es19 tablishing its variable costs in accordance with this para20 graph, but a shipper may rebut that showing by evidence

21 of such type, and in accordance with such burden of proof,

22 as the Panel shall prescribe.

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

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

25 for the transportation to which the rate applies that is
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1 equal to or greater than 180 percent does not establish

2 a presumption that—

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

5 ‘‘(B) the proposed rate exceeds or does not ex6 ceed a reasonable maximum.

7 ‘‘§ 10508. Rail cost adjustment factor

8 ‘‘(a) The Panel shall, as often as practicable, but in

9 no event less often than quarterly, publish a rail cost ad10 justment factor which shall be a fraction, the numerator

11 of which is the latest published Index of Railroad Costs

12 (which index shall be compiled or verified by the Panel,

13 with appropriate adjustments to reflect the change in com14 position of railroad costs, including the quality and mix

15 of material and labor) and the denominator of which is

16 the same index for the fourth quarter of every fifth year,

17 beginning with the fourth quarter of 1992.

18 ‘‘(b) The rail cost adjustment factor published by the

19 Panel under subsection (a) of this section shall take into

20 account changes in railroad productivity. The Panel shall

21 also publish a similar index that does not take into ac22 count changes in railroad productivity.

23 ‘‘§ 10509. Contracts

24 ‘‘(a) One or more rail carriers providing transpor25 tation subject to the jurisdiction of the Panel under this
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1 part may enter into a contract with one or more pur2 chasers of rail services to provide specified services under

3 specified rates and conditions.

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

5 section shall have no duty in connection with services pro6 vided under such contract other than those duties specified

7 by the terms of the contract.

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

9 and transportation under such contract, shall not be sub10 ject to this part, and may not be subsequently challenged

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

12 contract violates a provision of this part.

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

14 a contract entered into under this section shall be an ac15 tion in an appropriate State court or United States dis16 trict court, unless the parties otherwise agree. The district

17 courts of the United States shall not have jurisdiction pur18 suant to this section based on section 1331 or 1337 of

19 title 28, United States Code.

20 ‘‘(d)(1) A summary of each contract for the transpor21 tation of agricultural commodities entered into under this

22 section shall be filed with the Panel, containing such

23 nonconfidential information as the Panel prescribes. The

24 Panel shall publish special rules for such contracts in
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1 order to ensure that the essential terms of the contract

2 are available to the general public.

3 ‘‘(2) Documents, papers, and records (and any copies

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

5 shall not be subject to the mandatory disclosure require6 ments of section 552 of title 5.

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

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

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

10 be considered a contract authorized by this section.

11 ‘‘(f) A rail carrier that enters into a contract as au12 thorized by this section remains subject to the common

13 carrier obligation set forth in section 10901, with respect

14 to rail transportation not provided under such a contract.

15 ‘‘(g) The Panel shall implement by regulation admin16 istrative complaint remedies substantively equivalent to

17 the provisions of section 10713 of this title, as in effect

18 before the date of the enactment of the ICC Termination

19 Act of 1995, with regard to contracts for the transpor20 tation of agricultural commodities. Such regulations shall

21 be adopted no later than 90 days after the date of the

22 enactment of the ICC Termination Act of 1995.
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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)(1) A rail carrier providing transportation or

18 service subject to the jurisdiction of the Panel under this

19 part may not subject a person, place, port, or type of traf20 fic to unreasonable discrimination.

21 ‘‘(2) For purposes of this section, a rail carrier en22 gages in unreasonable discrimination when it charges or

23 receives from a person a different compensation for a serv24 ice rendered, or to be rendered, in transportation the rail

25 carrier may perform under this part than it charges or
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1 receives from another person for performing a like and

2 contemporaneous service in the transportation of a like

3 kind of traffic under substantially similar circumstances.

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

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

6 this title;

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

8 ‘‘(3) discrimination against the traffic of an9 other carrier providing transportation by any mode.

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

11 and practices of rail carriers do not constitute a violation

12 of this section if such differences result from different

13 services provided by rail carriers.

14 ‘‘§ 10542. Facilities for interchange of traffic

15 ‘‘A rail carrier providing transportation subject to the

16 jurisdiction of the Panel under this part shall provide rea17 sonable, proper, and equal facilities that are within its

18 power to provide for the interchange of traffic between,

19 and for the receiving, forwarding, and delivering of pas20 sengers and property to and from, its respective line and

21 a connecting line of another rail carrier.

22 ‘‘§ 10543. Continuous carriage of freight

23 ‘‘A rail carrier providing transportation or service

24 subject to the jurisdiction of the Panel under this part

25 may not enter a combination or arrangement to prevent
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1 the carriage of freight from being continuous from the

2 place of shipment to the place of destination whether by

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

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

5 is considered to be a continuous carriage from the place

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

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

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

9 or unnecessarily interrupting the continuous carriage or

10 of evading this part.

11 ‘‘§ 10544. Transportation services or facilities fur12 nished by shipper

13 ‘‘A rail carrier providing transportation or service

14 subject to the jurisdiction of the Panel under this part

15 may publish a charge or allowance for transportation or

16 service for property when the owner of the property, di17 rectly or indirectly, furnishes a service related to or an

18 instrumentality used in the transportation or service. The

19 Panel may prescribe the maximum reasonable charge or

20 allowance a rail carrier subject to its jurisdiction may pay

21 for a service or instrumentality furnished under this sec22 tion. The Panel may begin a proceeding under this section

23 on its own initiative or on application.
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1 ‘‘§ 10545. Demurrage charges

2 ‘‘A rail carrier providing transportation subject to the

3 jurisdiction of the Panel under this part shall compute de4 murrage charges, and establish rules related to those

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

6 to—

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

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

9 freight cars to be available for transportation of

10 property.

11 ‘‘§ 10546. Designation of certain routes by shippers

12 ‘‘(a)(1) When a person delivers property to a rail car13 rier for transportation subject to the jurisdiction of the

14 Panel under this part, the person may direct the rail car15 rier to transport the property over an established through

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

17 route, the person shipping the property may designate the

18 lines over which the property will be transported. The des19 ignation must be in writing. A rail carrier may be directed

20 to transport property over a particular through route

21 when—

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

23 which the property could be transported;

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

25 transportation over each of those through routes;

26 and
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1 ‘‘(C) the rail carrier is a party to those routes

2 and rates.

3 ‘‘(2) A rail carrier directed to route property trans4 ported under paragraph (1) of this subsection must issue

5 a through bill of lading containing the routing instructions

6 and transport the property according to the instructions.

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

8 that rail carrier must also receive and transport it accord9 ing to the routing instructions and deliver it to the next

10 succeeding rail carrier or consignee according to the in11 structions.

12 ‘‘(b) The Panel may prescribe exceptions to the au13 thority of a person to direct the movement of traffic under

14 subsection (a) of this section.

15 ‘‘CHAPTER 107—LICENSING

‘‘Sec.

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

‘‘10702. Short line purchases by Class II and Class III rail carriers.

‘‘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.

‘‘10707. Railroad development.

16 ‘‘§ 10701. Authorizing construction and operation of

17 railroad lines

18 ‘‘(a) A person may—

19 ‘‘(1) construct an extension to any of its rail20 road lines;

21 ‘‘(2) construct an additional railroad line;
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1 ‘‘(3) provide transportation over, or by means

2 of, an extended or additional railroad line; or

3 ‘‘(4) in the case of a person other than a rail

4 carrier, acquire a railroad line or acquire or operate

5 an extended or additional railroad line,

6 only if the Panel issues a certificate authorizing such ac7 tivity under subsection (c).

8 ‘‘(b) A proceeding to grant authority under sub9 section (a) of this section begins when an application is

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

11 reasonable public notice of the beginning of such proceed12 ing.

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

14 activities for which such authority is requested in an appli15 cation filed under subsection (b) unless the Panel finds

16 that such activities are inconsistent with the public con17 venience and necessity. Such certificate may approve the

18 application as filed, or with modifications, and may re19 quire compliance with conditions the Panel finds necessary

20 in the public interest.

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

22 Panel under this section authorizing the construction or

23 extension of a railroad line, no other rail carrier may block

24 any construction or extension authorized by such certifi-
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1 cate by refusing to permit the carrier to cross its property

2 if—

3 ‘‘(A) the construction does not unreasonably

4 interfere with the operation of the crossed line;

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

6 with the operation of the crossed line; and

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

8 the owner of the crossed line.

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

10 of operation or the amount of payment for purposes of

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

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

13 Panel shall make a determination under this paragraph

14 within 90 days after the dispute is submitted for deter15 mination.

16 ‘‘§ 10702. Short line purchases by Class II and Class

17 III rail carriers

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

19 transportation subject to the jurisdiction of the Panel

20 under this part may acquire or operate an extended or

21 additional rail line under this section only if the Panel is22 sues a certificate authorizing such activity under sub23 section (c).

24 ‘‘(b) A proceeding to grant authority under sub25 section (a) of this section begins when an application is
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1 filed. On receiving the application, the Panel shall give

2 reasonable public notice of the beginning of such proceed3 ing.

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

5 activities for which such authority is requested in an appli6 cation filed under subsection (b) unless the Panel finds

7 that such activities are inconsistent with the public con8 venience and necessity. Such certificate may approve the

9 application as filed, or with modifications, and may re10 quire compliance with conditions the Panel finds necessary

11 in the public interest.

12 ‘‘(d) The Panel shall require any Class II rail carrier

13 which receives a certificate under subsection (c) of this

14 section to provide a fair and equitable arrangement for

15 the protection of the interests of employees who may be

16 affected thereby to the same extent as an arrangement

17 established pursuant to section 11126(b) of this title. The

18 Panel shall not require such an arrangement from a Class

19 III rail carrier which receives a certificate under sub20 section (c) of this section.

21 ‘‘(e) For purposes of this section, the terms ‘Class

22 II rail carrier’ and ‘Class III rail carrier’ have the meaning

23 given those terms by the Panel.
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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 An abandonment or discontinuance may be carried out

11 only as authorized under this chapter.

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

13 subject to the jurisdiction of the Panel under this part

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

15 ‘‘(A) an accurate and understandable summary

16 of the rail carrier’s reasons for the proposed aban17 donment or discontinuance;

18 ‘‘(B) a statement indicating that each inter19 ested person is entitled to make recommendations to

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

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

22 sale in accordance with section 10704 of this title,

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

24 provide to each interested party an estimate of the

25 minimum purchase price, calculated in accordance

26 with section 10704 of this title and (iii) the name
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1 and business address of the person who is author2 ized to discuss sale terms for the rail carrier.

3 ‘‘(3) The rail carrier shall—

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

5 of intent to the chief executive officer of each State

6 that would be directly affected by the proposed

7 abandonment or discontinuance;

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

9 and station on each portion of a railroad line pro10 posed to be abandoned or over which all transpor11 tation is to be discontinued;

12 ‘‘(C) publish a copy of the notice for 3 consecu13 tive weeks in a newspaper of general circulation in

14 each county in which each such portion is located;

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

16 practicable, to all shippers that have made signifi17 cant use (as designated by the Panel) of the railroad

18 line during the 12 months preceding the filing of the

19 notice of intent; and

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

21 an affidavit certifying the manner in which subpara22 graphs (A) through (D) of this paragraph have been

23 satisfied, and certifying that subparagraphs (A)

24 through (D) have been satisfied within the most re-
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1 cent 30 days prior to the date the notice of intent

2 is filed.

3 ‘‘(b)(1) Except as provided in subsection (d), aban4 donment and discontinuance may occur as provided in sec5 tion 10704.

6 ‘‘(2) The Panel shall require as a condition of any

7 abandonment or discontinuance under this section provi8 sions to protect the interests of employees. The provisions

9 shall be at least as beneficial to those interests as the pro10 visions established under sections 11126(a) and 24706(c)

11 of this title.

12 ‘‘(c)(1) In this subsection, the term ‘potentially sub13 ject to abandonment’ has the meaning given the term in

14 regulations of the Panel. The regulations may include

15 standards that vary by region of the United States and

16 by railroad or group of railroads.

17 ‘‘(2) Each rail carrier shall maintain a complete dia18 gram of the transportation system operated, directly or

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

20 to the Panel and publish amendments to its diagram that

21 are necessary to maintain the accuracy of the diagram.

22 The diagram shall—

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

24 railroad lines potentially subject to abandonment;

25 and
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1 ‘‘(B) identify each railroad line for which the

2 rail carrier plans to file a notice of intent to aban3 don or discontinue under subsection (a) of this sec4 tion.

5 ‘‘(d) The Panel may disapprove a proposed abandon6 ment or discontinuance if the Panel finds it inconsistent

7 with the public convenience and necessity.

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 4 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 4-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 in ac16 cordance with section 10703.

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

18 to purchase have been made within such period, abandon19 ment or discontinuance shall be postponed until—

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

21 person have reached agreement on a transaction for

22 sale of the line; or

23 ‘‘(B) the conditions and amount of compensa24 tion are established under subsection (e).
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1 ‘‘(d) Except as provided in subsection (e)(3), if the

2 rail carrier and a financially responsible person (including

3 a governmental authority) fail to agree on the amount or

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

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

6 the conditions and amount of compensation.

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

8 the conditions and amount of compensation under this sec9 tion—

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

11 30 days;

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

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

14 Panel set a price which is below the fair market

15 value of the line (including, unless otherwise mutu16 ally agreed, all facilities on the line or portion nec17 essary to provide effective transportation services).

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

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

20 purchase the line may withdraw his offer within 10 days

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

22 or discontinuance may be carried out immediately, unless

23 other offers are being considered pursuant to paragraph

24 (3) of this subsection.
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1 ‘‘(3) If a rail carrier receives more than one offer to

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

3 to transact business, and complete the sale agreement, or

4 request that the Panel establish the conditions and

5 amount of compensation before the 40th day after the ex6 piration of the 4-month period described in subsection (b).

7 If no agreement on sale is reached within such 40-day pe8 riod and the Panel has not been requested to establish

9 the conditions and amount of compensation, any other

10 offeror whose offer was made within the 4-month period

11 described in subsection (b) may request that the Panel es12 tablish the conditions and amount of compensation. If the

13 Panel has established the conditions and amount of com14 pensation, and the original offer has been withdrawn, any

15 other offeror whose offer was made within the 4-month

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

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

18 shall require the carrier to enter into a sale agreement

19 with such offeror, if such sale agreement incorporates the

20 Panel’s decision.

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

22 under this section may transfer or discontinue service on

23 such line prior to the end of the second year after con24 summation of the sale, nor may such purchaser transfer

25 such line, except to the rail carrier from whom it was pur-
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1 chased, prior to the end of the fifth year after consumma2 tion of the sale.

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

4 section, the obligation of the rail carrier abandoning the

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

6 section 10901(a), is extinguished.

7 ‘‘§ 10705. Offering abandoned rail properties for sale

8 for public purposes

9 ‘‘When a rail carrier files a notice of intent to aban10 don or discontinue under section 10703, the Panel shall

11 find whether the rail properties that are involved in the

12 proposed abandonment or discontinuance are appropriate

13 for use for public purposes, including highways, other

14 forms of mass transportation, conservation, energy pro15 duction or transmission, or recreation. If the Panel finds

16 that the rail properties proposed to be abandoned are ap17 propriate for public purposes and not required for contin18 ued rail operations, the properties may be sold, leased, ex19 changed, or otherwise disposed of only under conditions

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

21 include a prohibition on any such disposal for a period

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

23 order, unless the properties have first been offered, on rea24 sonable terms, for sale for public purposes.
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1 ‘‘§ 10706. Exception

2 ‘‘Notwithstanding section 10701 and subchapter II

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

4 the Panel, a rail carrier providing transportation subject

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

6 into arrangements for the joint ownership or joint use of

7 spur, industrial, team, switching, or side tracks.The Panel

8 does not have authority under this chapter over construc9 tion, acquisition, operation, abandonment, or discontinu10 ance of spur, industrial, team, switching, or side tracks.

11 ‘‘§ 10707. Railroad development

12 ‘‘(a) In this section, the term ‘financially responsible

13 person’ means a person who—

14 ‘‘(1) is capable of paying the constitutional min15 imum value of the railroad line proposed to be ac16 quired; and

17 ‘‘(2) is able to assure that adequate transpor18 tation will be provided over such line for a period of

19 not less than 3 years.

20 Such term includes a governmental authority but does not

21 include a Class I or Class II rail carrier.

22 ‘‘(b)(1) When the Panel finds that—

23 ‘‘(A)(i) the public convenience and necessity re24 quire or permit the sale of a particular railroad line

25 under this section; or
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1 ‘‘(ii) a railroad line is on a system diagram map

2 as required under section 10703 of this title, but the

3 rail carrier owning such line has not filed a notice

4 of intent to abandon such line under section 10703

5 of this title before an application to purchase such

6 line, or any required preliminary filing with respect

7 to such application, is filed under this section; and

8 ‘‘(B) an application to purchase such line has

9 been filed by a financially responsible person,

10 the Panel shall require the rail carrier owning the railroad

11 line to sell such line to such financially responsible person

12 at a price not less than the constitutional minimum value.

13 ‘‘(2) For purposes of this subsection, the constitu14 tional minimum value of a particular railroad line shall

15 be presumed to be not less than the net liquidation value

16 of such line or the going concern value of such line, which17 ever is greater.

18 ‘‘(c)(1) For purposes of this section, the Panel may

19 determine that the public convenience and necessity re20 quire or permit the sale of a railroad line if the Panel

21 determines, after a hearing on the record, that—

22 ‘‘(A) the rail carrier operating such line refuses

23 within a reasonable time to make the necessary ef24 forts to provide adequate service to shippers who

25 transport traffic over such line;
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1 ‘‘(B) the transportation over such line is inad2 equate for the majority of shippers who transport

3 traffic over such line;

4 ‘‘(C) the sale of such line will not have a signifi5 cantly adverse financial effect on the rail carrier op6 erating such line;

7 ‘‘(D) the sale of such line will not have an ad8 verse effect on the overall operational performance

9 of the rail carrier operating such line; and

10 ‘‘(E) the sale of such line will be likely to result

11 in improved railroad transportation for shippers that

12 transport traffic over such line.

13 ‘‘(2) In a proceeding under this subsection, the bur14 den of proving that the public convenience and necessity

15 require or permit the sale of a particular railroad line is

16 on the person filing the application to acquire such line.

17 If the Panel finds under this subsection that the public

18 convenience and necessity require or permit the sale of a

19 particular railroad line, the Panel shall concurrently notify

20 the parties of such finding and publish such finding in

21 the Federal Register.

22 ‘‘(d) In the case of any railroad line subject to sale

23 under subsection (a) of this section, the Panel shall, upon

24 the request of the acquiring carrier, require the selling

25 carrier to provide to the acquiring carrier trackage rights
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1 to allow a reasonable interchange with the selling carrier

2 or to move power equipment or empty rolling stock be3 tween noncontiguous feeder lines operated by the acquir4 ing carrier. The Panel shall require the acquiring carrier

5 to provide the selling carrier reasonable compensation for

6 any such trackage rights.

7 ‘‘(e) The Panel shall require, to the maximum extent

8 practicable, the use of the employees who would normally

9 have performed work in connection with a railroad line

10 subject to a sale under this section.

11 ‘‘(f) In the case of a railroad line which carried less

12 than 3,000,000 gross ton miles of traffic per mile in the

13 preceding calendar year, whenever a purchasing carrier

14 under this section petitions the Panel for joint rates appli15 cable to traffic moving over through routes in which the

16 purchasing carrier may practicably participate, the Panel

17 shall, within 30 days after the date such petition is filed

18 and pursuant to section 10505(a) of this title, require the

19 establishment of reasonable joint rates and divisions over

20 such route.

21 ‘‘(g)(1) Any person operating a railroad line acquired

22 under this section may elect to be exempt from any of

23 the provisions of this part, except that such a person may

24 not be exempt from the provisions of chapter 105 of this

25 title with respect to transportation under a joint rate.
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1 ‘‘(2) The provisions of paragraph (1) of this sub2 section shall apply to any line of railroad which was aban3 doned during the 18-month period immediately prior to

4 the effective date of the Staggers Rail Act of 1980 and

5 was subsequently purchased by a financially responsible

6 person.

7 ‘‘(h) If a purchasing carrier under this section pro8 poses to sell or abandon all or any portion of a purchased

9 railroad line, such purchasing carrier shall offer the right

10 of first refusal with respect to such line or portion thereof

11 to the carrier which sold such line under this section. Such

12 offer shall be made at a price equal to the sum of the

13 price paid by such purchasing carrier to such selling car14 rier for such line or portion thereof and the fair market

15 value (less deterioration) of any improvements made, as

16 adjusted to reflect inflation.

17 ‘‘(i) Any person operating a railroad line acquired

18 under this section may determine preconditions, such as

19 payment of a subsidy, which must be met by shippers in

20 order to obtain service over such lines, but such operator

21 must notify the shippers on the line of its intention to

22 impose such preconditions.

23 ‘‘CHAPTER 109—OPERATIONS

‘‘SUBCHAPTER I—GENERAL REQUIREMENTS

‘‘Sec.

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

‘‘10902. Use of terminal facilities.
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‘‘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.

1 ‘‘SUBCHAPTER I—GENERAL REQUIREMENTS

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

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

4 subject to the jurisdiction of the Panel under this part

5 shall provide the transportation or service on reasonable

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

7 this section because it fulfills its reasonable commitments

8 under contracts authorized under section 10509 of this

9 title before responding to reasonable requests for service.

10 Commitments which deprive a carrier of its ability to re11 spond to reasonable requests for common carrier service

12 are not reasonable.

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

14 on request, rates and other service terms. The response
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1 by a rail carrier to a request for rates and other service

2 terms shall be—

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

4 person promptly after receipt of the request; or

5 ‘‘(2) promptly made available in electronic

6 form.

7 ‘‘(c) A rail carrier may not increase any common car8 rier rates or change any common carrier service terms un9 less 20 days have expired after written notice is provided

10 in accordance with subsection (d) to—

11 ‘‘(1) any person who has requested such rates

12 or terms under subsection (b); and

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

14 with the carrier for a shipment that would be sub15 ject to such increased rates or changed terms.

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

17 to implement this section. Final regulations shall be

18 adopted by the Panel not later than 180 days after the

19 date of the enactment of the ICC Termination Act of

20 1995.

21 ‘‘§ 10902. Use of terminal facilities

22 ‘‘(a) The Panel may require terminal facilities, in23 cluding main-line tracks for a reasonable distance outside

24 of a terminal, owned by a rail carrier providing transpor25 tation subject to the jurisdiction of the Panel under this
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1 part, to be used by another rail carrier if the Panel finds

2 that use to be practicable and in the public interest with3 out substantially impairing the ability of the rail carrier

4 owning the facilities or entitled to use the facilities to han5 dle its own business. The rail carriers are responsible for

6 establishing the conditions and compensation for use of

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

8 the Panel may establish conditions and compensation for

9 use of the facilities under the principle controlling com10 pensation in condemnation proceedings. The compensation

11 shall be paid or adequately secured before a rail carrier

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

13 this section.

14 ‘‘(b) A rail carrier whose terminal facilities are re15 quired to be used by another rail carrier under this section

16 is entitled to recover damages from the other rail carrier

17 for injuries sustained as the result of compliance with the

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

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

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

21 compensation is not paid promptly.

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

23 into reciprocal switching agreements, where it finds such

24 agreements to be practicable and in the public interest,

25 or where such agreements are necessary to provide com-
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1 petitive rail service. The rail carriers entering into such

2 an agreement shall establish the conditions and compensa3 tion applicable to such agreement, but, if the rail carriers

4 cannot agree upon such conditions and compensation

5 within a reasonable period of time, the Panel may estab6 lish such conditions and compensation.

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

8 agreements entered into by rail carriers pursuant to this

9 subsection to contain provisions for the protection of the

10 interests of employees affected thereby.

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

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

13 the request for relief.

14 ‘‘§ 10903. Switch connections and tracks

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

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

17 for transportation, a rail carrier providing transportation

18 subject to the jurisdiction of the Panel under this part

19 shall construct, maintain, and operate, on reasonable con20 ditions, a switch connection to connect that branch line

21 or private side track with its railroad and shall furnish

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

23 discrimination in favor of or against the shipper when the

24 connection—

25 ‘‘(1) is reasonably practicable;
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1 ‘‘(2) can be made safely; and

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

3 its construction and maintenance.

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

5 switch connection after application is made under sub6 section (a) of this section, the owner of the lateral branch

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

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

9 shall investigate the complaint and decide the safety, prac10 ticability, justification, and compensation to be paid for

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

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

13 hearing.

14 ‘‘SUBCHAPTER II—CAR SERVICE

15 ‘‘§ 10921. Criteria

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

17 to the jurisdiction of the Panel under this part shall fur18 nish safe and adequate car service and establish, observe,

19 and enforce reasonable rules and practices on car service.

20 The Panel may require a rail carrier to provide facilities

21 and equipment that are reasonably necessary to furnish

22 safe and adequate car service if the Panel decides that

23 the rail carrier has materially failed to furnish that serv24 ice. The Panel may begin a proceeding under this para25 graph when an interested person files an application with
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1 it. The Panel may act only after a hearing on the record

2 and an affirmative finding, based on the evidence pre3 sented, that—

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

5 not materially and adversely affect the ability of the

6 rail carrier to provide safe and adequate transpor7 tation;

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

9 equipment, including a return equal to the rail car10 rier’s current cost of capital, will be recovered; and

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

12 not impair the ability of the rail carrier to attract

13 adequate capital.

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

15 car service rules with the Panel.

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

17 and agencies to make and carry out its directions related

18 to car service and matters under sections 10923 and

19 10924(a)(1) of this title.

20 ‘‘§ 10922. Compensation and practice

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

22 encourage the purchase, acquisition, and efficient use of

23 freight cars. The regulations may include—

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

25 a locomotive, freight car, or other vehicle;
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1 ‘‘(2) the other terms of any arrangement for

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

3 or other vehicle not owned by the rail carrier using

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

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

6 person; and

7 ‘‘(3) sanctions for nonobservance.

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

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

10 owning and maintaining that type of freight car, including

11 a fair return on its cost giving consideration to current

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

13 determining the rate of compensation, the Panel shall con14 sider the transportation use of each type of freight car,

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

16 and other factors that affect the adequacy of the national

17 freight car supply.

18 ‘‘§ 10923. Rerouting traffic on failure of rail carrier to

19 serve the public

20 ‘‘(a) When the Panel considers that a rail carrier pro21 viding transportation subject to the jurisdiction of the

22 Panel under this part cannot transport the traffic offered

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

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

25 traffic of that rail carrier and its distribution over other
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1 railroad lines to promote commerce and service to the pub2 lic. Subject to subsection (b)(2) of this section, the rail

3 carriers may establish the terms of compensation between

4 themselves.

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

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

7 own initiative or on application without regard to sub8 chapter II of chapter 5 of title 5.

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

10 of compensation under this section, the Panel may estab11 lish the terms for them in a later proceeding.

12 ‘‘(c) When there is a shortage of equipment, conges13 tion of traffic, or other emergency declared by the Panel,

14 it may prescribe temporary through routes that are desir15 able in the public interest on its own initiative or on appli16 cation without regard to subchapter II of chapter 7 of this

17 title, and subchapter II of chapter 5 of title 5.

18 ‘‘§ 10924. War emergencies; embargoes imposed by

19 carriers

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

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

22 the defense and security of the United States to give pref23 erence or priority to the movement of certain traffic, the

24 Panel shall direct that preference or priority be given to

25 that traffic.
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1 ‘‘(2) When the President, during time of war or

2 threatened war, demands that preference and precedence

3 be given to the transportation of troops and material of

4 war over all other traffic, all rail carriers providing trans5 portation subject to the jurisdiction of the Panel under

6 this part shall adopt every means within their control to

7 facilitate and expedite the military traffic.

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

9 does not apply to shipments consigned to agents of the

10 United States Government for its use. The rail carrier

11 shall deliver those shipments as promptly as possible.

12 ‘‘SUBCHAPTER III—REPORTS AND RECORDS

13 ‘‘§ 10941. Definitions

14 ‘‘In this subchapter—

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

16 a receiver or trustee of a rail carrier and lessor, re17 spectively;

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

19 railroad that is leased to and operated by a carrier

20 providing transportation subject to the jurisdiction

21 of the Panel under this part; and

22 ‘‘(3) the term ‘association’ means an organiza23 tion maintained by or in the interest of a group of

24 rail carriers providing transportation or service sub25 ject to the jurisdiction of the Panel under this part
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1 that performs a service, or engages in activities, re2 lated to transportation under this part.

3 ‘‘§ 10942. Uniform accounting system

4 ‘‘The Panel may prescribe a uniform accounting sys5 tem for classes of rail carriers providing transportation

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

7 To the maximum extent practicable, the Panel shall con8 form such system to generally accepted accounting prin9 ciples, and shall administer this subchapter in accordance

10 with such principles.

11 ‘‘§ 10943. Depreciation charges

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

13 transportation subject to its jurisdiction under this part,

14 prescribe, and change when necessary, those classes of

15 property for which depreciation charges may be included

16 under operating expenses and a rate of depreciation that

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

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

19 rail carrier for whom depreciation charges and rates of

20 depreciation are in effect under this section for any class

21 of property may not—

22 ‘‘(1) charge to operating expenses a deprecia23 tion charge on a class of property other than that

24 prescribed by the Panel;

25 ‘‘(2) charge another rate of depreciation; or
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1 ‘‘(3) include other depreciation charges in oper2 ating expenses.

3 ‘‘§ 10944. Records: form; inspection; preservation

4 ‘‘(a) The Panel may prescribe the form of records re5 quired to be prepared or compiled under this subchapter—

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

7 records related to movement of traffic and receipts

8 and expenditures of money; and

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

10 carrier providing transportation subject to the juris11 diction of the Panel under this part to the extent re12 lated to those cars or that service.

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

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

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

16 and equipment of a rail carrier or lessor; and

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

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

19 and

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

21 under common control with a rail carrier if the

22 Panel considers inspection relevant to that per23 son’s relation to, or transaction with, that rail

24 carrier.
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1 ‘‘(c) The Panel may prescribe the time period during

2 which operating, accounting, and financial records must

3 be preserved by rail carriers, lessors, and persons furnish4 ing cars.

5 ‘‘§ 10945. Reports by rail carriers, lessors, and asso6 ciations

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

8 associations, or classes of them as the Panel may pre9 scribe, to file annual, periodic, and special reports with

10 the Panel containing answers to questions asked by it.

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

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

13 of the rail carrier, lessor, or association for the 12-month

14 period ending on December 31 of each year.

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

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

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

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

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

20 report made under this section, shall be made under oath.
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1 ‘‘SUBCHAPTER IV—RAILROAD COST

2 ACCOUNTING

3 ‘‘§ 10961. Implementation of cost accounting prin4 ciples

5 ‘‘Not less than once every five years after the promul6 gation of original rules implementing the cost accounting

7 principles established by the Railroad Accounting Prin8 ciples Board, the Panel shall review such principles and

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

10 are required to achieve the regulatory purposes of this

11 part. The Panel shall insure that the rules promulgated

12 under this section are the most efficient and least burden13 some means by which the required information may be de14 veloped for regulatory purposes. To the maximum extent

15 practicable, the Panel shall conform such rules to gen16 erally accepted accounting principles.

17 ‘‘§ 10962. Rail carrier cost accounting system

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

19 accounting system that is in compliance with the rules pro20 mulgated by the Panel under section 10961 of this title.

21 A rail carrier may, after notifying the Panel, make modi22 fications in such system unless, within 60 days after the

23 date of notification, the Panel finds such modifications to

24 be inconsistent with the rules promulgated by the Panel

25 under section 10961 of this title.
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1 ‘‘(b) For purposes of determining whether the cost

2 accounting system of a rail carrier is in compliance with

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

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

5 papers, or records of such rail carrier relating to compli6 ance with such rules. Such documents, papers, and records

7 (and any copies thereof) shall not be subject to the manda8 tory disclosure requirements of section 552 of title 5.

9 ‘‘§ 10963. Cost availability

10 ‘‘As required by the rules of the Panel governing dis11 covery in Panel proceedings, rail carriers shall make rel12 evant cost data available to shippers, States, ports, com13 munities, and other interested parties that are a party to

14 a Panel proceeding in which such data are required.

15 ‘‘§ 10964. Accounting and cost reporting

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

17 regulatory purposes, the Panel may promulgate reasonable

18 rules for rail carriers providing transportation subject to

19 the jurisdiction of the Panel under this part, prescribing

20 expense and revenue accounting and reporting require21 ments consistent with generally accepted accounting prin22 ciples uniformly applied to such carriers. Such require23 ments shall be cost effective and compatible with and not

24 duplicative of the managerial and responsibility account25 ing requirements of those carriers. To the extent such
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1 rules are required solely to provide expense and revenue

2 information necessary for determining railroad costs in

3 regulatory proceedings under this part, such rules shall

4 be promulgated in accordance with the cost accounting

5 principles established by the Railroad Accounting Prin6 ciples Board.

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

8 the Panel under this section shall include only information

9 considered necessary for disclosure under the cost ac10 counting principles established by the Board or under gen11 erally accepted accounting principles or the requirements

12 of the Securities and Exchange Commission.

13 ‘‘CHAPTER 111—FINANCE

‘‘SUBCHAPTER I—EQUIPMENT TRUSTS AND SECURITY

INTERESTS

‘‘Sec.

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

‘‘SUBCHAPTER II—COMBINATIONS

‘‘11121. Scope of authority.

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

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

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

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

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

‘‘11127. Supplemental orders.
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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 or security interest in railroad cars, locomotives, or other

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

10 locomotives, or other rolling stock (including super11 structures and racks), intended for a use related to inter12 state commerce shall be filed with the Panel in order to

13 perfect the security interest that is the subject of such

14 instrument. An assignment of a right or interest under

15 one of those instruments and an amendment to that in16 strument or assignment including a release, discharge, or

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

18 Panel. The instrument, assignment, or amendment must

19 be in writing, executed by the parties to it, and acknowl20 edged or verified under Panel regulations. When filed

21 under this section, that document is notice to, and enforce22 able against, all persons. A document filed under this sec23 tion does not have to be filed, deposited, registered, or re24 corded under another law of the United States, a State

25 (or its political subdivisions), or territory or possession of
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1 the United States, related to filing, deposit, registration,

2 or recordation of those documents.

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

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

5 and mark each of them with a consecutive number and

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

7 maintain and keep open for public inspection an index of

8 documents filed under that subsection. That index shall

9 include the name and address of the principal debtors,

10 trustees, guarantors, and other parties to those documents

11 and may include other facts that will assist in determining

12 the rights of the parties to those transactions.

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

14 perform its functions under this section through contracts

15 with private sector entities.

16 ‘‘(d) The Panel shall assess user fees for services per17 formed by the Panel or a contractor thereof under this

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

19 costs, to the extent provided in advance in appropriations

20 Acts.

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

22 conditional sales agreement, or other instrument evidenc23 ing the mortgage, lease, conditional sale, or bailment of

24 or security interest in railroad cars, locomotives, or other

25 rolling stock, or accessories used on such railroad cars,
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1 locomotives, or other rolling stock (including super2 structures and racks), or any assignment thereof, which—

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

4 country other than the United States; and

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

6 marks and identification numbers of any person

7 domiciled in or corporation organized under the laws

8 of such country,

9 shall be recognized with the same effect as having been

10 filed under this section.

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

12 filed or recognized under this section are deemed perfected

13 in all jurisdictions, and shall be governed by applicable

14 State or foreign law in all matters not specifically gov15 erned by this section.

16 ‘‘(g) The Panel shall collect, maintain, and keep open

17 for public inspection a railway equipment register consist18 ent with the manner and format maintained by the Inter19 state Commerce Commission as of the date of the enact20 ment of the ICC Termination Act of 1995.

21 ‘‘SUBCHAPTER II—COMBINATIONS

22 ‘‘§ 11121. Scope of authority

23 ‘‘The authority of the Panel under this subchapter

24 is exclusive. A rail carrier or corporation participating in

25 or resulting from a transaction approved by or exempted
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1 by the Panel under this subchapter may carry out the

2 transaction, own and operate property, and exercise con3 trol or franchises acquired through the transaction with4 out the approval of a State authority. A rail carrier, cor5 poration, or person participating in that approved or ex6 empted transaction is exempt from the antitrust laws and

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

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

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

10 property, and exercise control or franchises acquired

11 through the transaction.

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

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

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

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

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

18 without the approval of the Panel under this section or

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

20 authorize the agreement or combination if the rail carriers

21 involved assent to the pooling or division and the Panel

22 finds that a pooling or division of traffic, services, or earn23 ings—

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

25 the public or of economy of operation; and
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1 ‘‘(2) will not unreasonably restrain competition.

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

3 pooling or division and may approve and authorize pay4 ment of a reasonable consideration between the rail car5 riers.

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

7 section on its own initiative or on application.

8 ‘‘§ 11123. Consolidation, merger, and acquisition of

9 control

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

11 providing transportation subject to the jurisdiction of the

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

13 approval and authorization of the Panel:

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

15 or franchises of at least 2 rail carriers into one cor16 poration for the ownership, management, and oper17 ation of the previously separately owned properties.

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

19 property of another rail carrier by any number of

20 rail carriers.

21 ‘‘(3) Acquisition of control of a rail carrier by

22 any number of rail carriers.

23 ‘‘(4) Acquisition of control of at least 2 rail car24 riers by a person that is not a rail carrier.
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1 ‘‘(5) Acquisition of control of a rail carrier by

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

3 any number of rail carriers.

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

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

6 railroad line (and terminals incidental to it) owned

7 or operated by another rail carrier.

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

9 to in subsection (a) of this section or participate in achiev10 ing the control or management, including the power to ex11 ercise control or management, in a common interest of

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

13 result is reached, only with the approval and authorization

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

15 transactions, each of the following transactions are consid16 ered achievements of control or management:

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

18 effect of putting that rail carrier and person affili19 ated with it, taken together, in control of another

20 rail carrier.

21 ‘‘(2) A transaction by a person affiliated with

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

23 carrier and persons affiliated with it, taken together,

24 in control of another rail carrier.
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1 ‘‘(3) A transaction by at least 2 persons acting

2 together (one of whom is a rail carrier or is affili3 ated with a rail carrier) that has the effect of put4 ting those persons and rail carriers and persons af5 filiated with any of them, or with any of those affili6 ated rail carriers, taken together, in control of an7 other rail carrier.

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

9 this subchapter if, because of the relationship between

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

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

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

13 interest of the other rail carrier.

14 ‘‘§ 11124. Consolidation, merger, and acquisition of

15 control: conditions of approval

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

17 and authorize a transaction referred to in section 11123

18 of this title on application of the person seeking that au19 thority. When an application is filed with the Panel, the

20 Panel shall notify the chief executive officer of each State

21 in which property of the rail carriers involved in the pro22 posed transaction is located and shall notify those rail car23 riers. The Panel shall hold a public hearing unless the

24 Panel determines that a public hearing is not necessary

25 in the public interest.
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1 ‘‘(b) In a proceeding under this section which involves

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

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

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

5 the adequacy of transportation to the public;

6 ‘‘(2) the effect on the public interest of includ7 ing, or failing to include, other rail carriers in the

8 area involved in the proposed transaction;

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

10 proposed transaction;

11 ‘‘(4) the interest of rail carrier employees af12 fected by the proposed transaction; and

13 ‘‘(5) whether the proposed transaction would

14 have an adverse effect on competition among rail

15 carriers in the affected region or in the national rail

16 system.

17 ‘‘(c) The Panel shall approve and authorize a trans18 action under this section when it finds the transaction is

19 consistent with the public interest. The Panel may impose

20 conditions governing the transaction, including the divesti21 ture of parallel tracks or requiring the granting of track22 age rights and access to other facilities. Any trackage

23 rights and related conditions imposed to alleviate anti24 competitive effects of the transaction shall provide for op25 erating terms and compensation levels to ensure that such
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1 effects are alleviated. When the transaction contemplates

2 a guaranty or assumption of payment of dividends or of

3 fixed charges or will result in an increase of total fixed

4 charges, the Panel may approve and authorize the trans5 action only if it finds that the guaranty, assumption, or

6 increase is consistent with the public interest. The Panel

7 may require inclusion of other rail carriers located in the

8 area involved in the transaction if they apply for inclusion

9 and the Panel finds their inclusion to be consistent with

10 the public interest.

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

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

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

14 such an application unless it finds that—

15 ‘‘(1) as a result of the transaction, there is like16 ly to be substantial lessening of competition, cre17 ation of a monopoly, or restraint of trade in freight

18 surface transportation in any region of the United

19 States; and

20 ‘‘(2) the anticompetitive effects of the trans21 action outweigh the public interest in meeting sig22 nificant transportation needs.

23 In making such findings, the Panel shall, with respect to

24 any application that is part of a plan or proposal developed
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1 under section 333(a)–(d) of this title, accord substantial

2 weight to any recommendations of the Attorney General.

3 ‘‘(e) No transaction described in section 11126(b)

4 may have the effect of avoiding a collective bargaining

5 agreement or shifting work from a rail carrier with a col6 lective bargaining agreement to a rail carrier without a

7 collective bargaining agreement.

8 ‘‘(f)(1) To the extent provided in this subsection, a

9 proceeding under this subchapter relating to a transaction

10 involving at least one Class I rail carrier shall not be con11 sidered an adjudication required by statute to be deter12 mined on the record after opportunity for an agency hear13 ing, for the purposes of subchapter II of chapter 5 of title

14 5, United States Code.

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

16 551(14) of title 5, United States Code, shall be permitted

17 in proceedings described in paragraph (1) of this sub18 section, subject to the requirements of paragraph (3) of

19 this subsection.

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

21 makes or receives a written ex parte communication con22 cerning the merits of a proceeding described in paragraph

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

24 docket of the proceeding.
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1 ‘‘(B) Any member or employee of the Panel who

2 makes or receives an oral ex parte communication con3 cerning the merits of a proceeding described in paragraph

4 (1) shall promptly place a written summary of the oral

5 communication in the public docket of the proceeding.

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

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

8 engage in any ex parte communication with any person.

9 Nothing in this subsection or any other law shall be con10 strued to limit the authority of the members or employees

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

12 otherwise publicly the occurrence and substance of an ex

13 parte communication.

14 ‘‘§ 11125. Consolidation, merger, and acquisition of

15 control: procedure

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

17 under section 11124 in the Federal Register by the end

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

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

20 shall reject it by the end of that period. The order of rejec21 tion is a final action of the Panel. The published notice

22 shall indicate whether the application involves—

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

24 I railroads, as defined by the Panel, to be decided
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1 within the time limits specified in subsection (b) of

2 this section;

3 ‘‘(2) transactions of regional or national trans4 portation significance, to be decided within the time

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

6 ‘‘(3) any other transaction covered by this sec7 tion, to be decided within the time limits specified in

8 subsection (d) of this section.

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

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

11 the following conditions apply:

12 ‘‘(1) Written comments about an application

13 may be filed with the Panel within 45 days after no14 tice of the application is published under subsection

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

16 served on the Attorney General, who may decide to

17 intervene as a party to the proceeding. That decision

18 must be made by the 15th day after the date of re19 ceipt of the written comments, and if the decision is

20 to intervene, preliminary comments about the appli21 cation must be sent to the Panel by the end of the

22 15th day after the date of receipt of the written

23 comments.

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

25 inconsistent with an application, notice of which was
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1 published under subsection (a) of this section, and

2 applications for inclusion in the transaction, be filed

3 with it by the 90th day after publication of notice

4 under that subsection.

5 ‘‘(3) The Panel must conclude evidentiary pro6 ceedings by the end of the 6th month after the date

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

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

9 90th day after the date on which it concludes the

10 evidentiary proceedings.

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

12 than the merger or control of at least two Class I rail13 roads, as defined by the Panel, which the Panel has deter14 mined to be of regional or national transportation signifi15 cance, the following conditions apply:

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

17 including comments of the Attorney General, may be

18 filed with the Panel within 30 days after notice of

19 the application is published under subsection (a) of

20 this section.

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

22 inconsistent with an application, notice of which was

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

24 applications for inclusion in the transaction, be filed
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1 with it by the 60th day after publication of notice

2 under that subsection.

3 ‘‘(3) The Panel must conclude any evidentiary

4 proceedings by the 125th day after the date of publi5 cation of notice under subsection (a) of this section.

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

7 day after the date on which it concludes the evi8 dentiary proceedings.

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

10 than those specified in subsections (b) and (c) of this sec11 tion, the following conditions apply:

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

13 including comments of the Attorney General, may be

14 filed with the Panel within 30 days after notice of

15 the application is published under subsection (a) of

16 this section.

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

18 proceedings by the 105th day after the date of publi19 cation of notice under subsection (a) of this section.

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

21 day after the date on which it concludes the evi22 dentiary proceedings.
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1 ‘‘§ 11126. Employee protective arrangements in trans2 actions involving rail carriers

3 ‘‘(a) Except as otherwise provided in this section,

4 when approval is sought for a transaction under sections

5 11124 and 11125 of this title, the Panel shall require the

6 rail carrier to provide a fair arrangement at least as pro7 tective of the interests of employees who are affected by

8 the transaction as the terms imposed under section 5(2)(f)

9 of the Interstate Commerce Act before February 5, 1976,

10 and the terms established under section 24706(c) of this

11 title. Notwithstanding this part, the arrangement may be

12 made by the rail carrier and the authorized representative

13 of its employees. The arrangement and the order approv14 ing the transaction must require that the employees of the

15 affected rail carrier will not be in a worse position related

16 to their employment as a result of the transaction during

17 the 4 years following the effective date of the final action

18 of the Panel (or if an employee was employed for a lesser

19 period of time by the rail carrier before the action became

20 effective, for that lesser period).

21 ‘‘(b) When approval is sought under sections 11124

22 and 11125 for a transaction involving one Class II and

23 one or more Class III rail carriers, there shall be an ar24 rangement as required under subsection (a) of this sec25 tion, except that the arrangement shall be limited to one

26 year of severance pay, which shall not exceed the amount
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1 of earnings from the railroad employment of that employee

2 during the 12-month period immediately preceding the

3 date on which the application for approval of such trans4 action is filed with the Panel. The amount of such sever5 ance pay shall be reduced by the amount of earnings from

6 railroad employment of that employee with the acquiring

7 carrier during the 12-month period immediately following

8 the effective date of the transaction. The parties may

9 agree to terms other than as provided in this subsection.

10 ‘‘(c) When approval is sought under sections 11124

11 and 11125 for a transaction involving only Class III rail

12 carriers, this section shall not apply.

13 ‘‘(d) For purposes of this section, the terms ‘Class

14 II rail carrier’ and ‘Class III rail carrier’ have the meaning

15 given those terms by the Panel.

16 ‘‘§ 11127. Supplemental orders

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

18 orders supplemental to an order made in a proceeding

19 under sections 11122 through 11126 of this title.

20 ‘‘CHAPTER 113—FEDERAL-STATE

21 RELATIONS

‘‘Sec.

‘‘11301. Tax discrimination against rail transportation property.

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

22 ‘‘§ 11301. Tax discrimination against rail transpor23 tation property

24 ‘‘(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) Except as otherwise provided in this part, the

14 Panel may begin an investigation under this part only on

15 complaint. If the Panel finds that a rail carrier is violating

16 this part, the Panel shall take appropriate action to com17 pel compliance with 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 in a United States District Court to enforce

17 that order under this subsection.

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

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

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

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

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

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

24 under subsection (b) of this section to enforce liability
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1 against a rail carrier providing transportation subject to

2 the jurisdiction of the Panel under this part.

3 ‘‘(2) When the Panel makes an award under sub4 section (b) of this section, the Panel shall order the rail

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

6 Panel may order a rail carrier providing transportation

7 subject to the jurisdiction of the Panel under this part

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

9 The person for whose benefit an order of the Panel requir10 ing the payment of money is made may bring a civil action

11 to enforce that order under this paragraph if the rail car12 rier does not pay the amount awarded by the date pay13 ment was ordered to be made.

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

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

16 Panel requiring the payment of damages by a rail carrier

17 providing transportation subject to the jurisdiction of the

18 Panel under this part, the text of the order of the Panel

19 must be included in the complaint. In addition to the dis20 trict courts of the United States, a State court of general

21 jurisdiction having jurisdiction of the parties has jurisdic22 tion to enforce an order under this paragraph. The find23 ings and order of the Panel are competent evidence of the

24 facts stated in them. Trial in a civil action brought in a
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1 district court of the United States under this paragraph

2 is in the judicial district—

3 ‘‘(A) in which the plaintiff resides;

4 ‘‘(B) in which the principal operating office of

5 the rail carrier is located; or

6 ‘‘(C) through which the railroad line of that

7 carrier runs.

8 In a civil action under this paragraph, the plaintiff is liable

9 for only those costs that accrue on an appeal taken by

10 the plaintiff.

11 ‘‘(2) All parties in whose favor the award was made

12 may be joined as plaintiffs in a civil action brought in a

13 district court of the United States under this subsection

14 and all the rail carriers that are parties to the order

15 awarding damages may be joined as defendants. Trial in

16 the action is in the judicial district in which any one of

17 the plaintiffs could bring the action against any one of

18 the defendants. Process may be served on a defendant at

19 its principal operating office when that defendant is not

20 in the district in which the action is brought. A judgment

21 ordering recovery may be made in favor of any of those

22 plaintiffs against the defendant found to be liable to that

23 plaintiff.

24 ‘‘(3) The district court shall award a reasonable at25 torney’s fee as a part of the damages for which a rail car-
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1 rier is found liable under this subsection. The district

2 court shall tax and collect that fee as a part of the costs

3 of the action.

4 ‘‘§ 11505. Limitation on actions by and against rail

5 carriers

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

7 subject to the jurisdiction of the Panel under this part

8 must begin a civil action to recover charges for transpor9 tation or service provided by the carrier within 3 years

10 after the claim accrues.

11 ‘‘(b) A person must file a complaint with the Panel

12 to recover damages under section 11504(b) of this title

13 within 2 years after the claim accrues.

14 ‘‘(c) The limitation period under subsection (b) of

15 this section is extended for 6 months from the time written

16 notice is given to the claimant by the rail carrier of dis17 allowance of any part of the claim specified in the notice

18 if a written claim is given to the rail carrier within that

19 limitation period. The limitation period under subsection

20 (b) of this section is extended for 90 days from the time

21 the rail carrier begins a civil action under subsection (a)

22 of this section to recover charges related to the same

23 transportation or service, or collects (without beginning a

24 civil action under that subsection) the charge for that
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1 transportation or service if that action is begun or collec2 tion is made within the appropriate period.

3 ‘‘(d) A person must begin a civil action to enforce

4 an order of the Panel against a rail carrier for the pay5 ment of money within one year after the date the order

6 required the money to be paid.

7 ‘‘(e) This section applies to transportation for the

8 United States Government. The time limitations under

9 this section are extended, as related to transportation for

10 or on behalf of the United States Government, for 3 years

11 from the date of—

12 ‘‘(1) payment of the rate for the transportation

13 or service involved;

14 ‘‘(2) subsequent refund for overpayment of that

15 rate; or

16 ‘‘(3) deduction made under section 3726 of title

17 31, whichever is later.

18 ‘‘(f) A claim related to a shipment of property accrues

19 under this section on delivery or tender of delivery by the

20 rail carrier.

21 ‘‘§ 11506. Liability of rail carriers under receipts and

22 bills of lading

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

24 subject to the jurisdiction of the Panel under this part

25 shall issue a receipt or bill of lading for property it receives
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1 for transportation under this part. That rail carrier and

2 any other rail carrier that delivers the property and is pro3 viding transportation or service subject to the jurisdiction

4 of the Panel under this part are liable to the person enti5 tled to recover under the receipt or bill of lading. The li6 ability imposed under this subsection is for the actual loss

7 or injury to the property caused by—

8 ‘‘(1) the receiving rail carrier;

9 ‘‘(2) the delivering rail carrier; or

10 ‘‘(3) another rail carrier over whose line or

11 route the property is transported in the United

12 States or from a place in the United States to a

13 place in an adjacent foreign country when trans14 ported under a through bill of lading.

15 Failure to issue a receipt or bill of lading does not affect

16 the liability of a rail carrier. A delivering rail carrier is

17 deemed to be the rail carrier performing the line-haul

18 transportation nearest the destination but does not include

19 a rail carrier providing only a switching service at the des20 tination.

21 ‘‘(b) The rail carrier issuing the receipt or bill of lad22 ing under subsection (a) of this section or delivering the

23 property for which the receipt or bill of lading was issued

24 is entitled to recover from the rail carrier over whose line

25 or route the loss or injury occurred the amount required
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1 to be paid to the owners of the property, as evidenced by

2 a receipt, judgment, or transcript, and the amount of its

3 expenses reasonably incurred in defending a civil action

4 brought by that person.

5 ‘‘(c)(1) A rail carrier may not limit or be exempt from

6 liability imposed under subsection (a) of this section ex7 cept as provided in this subsection. A limitation of liability

8 or of the amount of recovery or representation or agree9 ment in a receipt, bill of lading, contract, or rule in viola10 tion of this section is void.

11 ‘‘(2) A rail carrier of passengers may limit its liability

12 under its passenger rate for loss or injury of baggage car13 ried on trains carrying passengers.

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

15 subject to the jurisdiction of the Panel under this part

16 may establish rates for transportation of property under

17 which—

18 ‘‘(A) the liability of the rail carrier for such

19 property is limited to a value established by written

20 declaration of the shipper or by a written agreement

21 between the shipper and the carrier; or

22 ‘‘(B) specified amounts are deducted, pursuant

23 to a written agreement between the shipper and the

24 carrier, from any claim against the carrier with re25 spect to the transportation of such property.
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1 ‘‘(d)(1) A civil action under this section may be

2 brought in a district court of the United States or in a

3 State court.

4 ‘‘(2)(A) A civil action under this section may only be

5 brought—

6 ‘‘(i) against the originating rail carrier, in the

7 judicial district in which the point of origin is lo8 cated;

9 ‘‘(ii) against the delivering rail carrier, in the

10 judicial district in which the principal place of busi11 ness of the person bringing the action is located if

12 the delivering carrier operates a railroad or a route

13 through such judicial district, or in the judicial dis14 trict in which the point of destination is located; and

15 ‘‘(iii) against the carrier alleged to have caused

16 the loss or damage, in the judicial district in which

17 such loss or damage is alleged to have occurred.

18 ‘‘(B) In this section, ‘judicial district’ means (i) in

19 the case of a United States district court, a judicial dis20 trict of the United States, and (ii) in the case of a State

21 court, the applicable geographic area over which such

22 court exercises jurisdiction.

23 ‘‘(e) A rail carrier may not provide by rule, contract,

24 or otherwise, a period of less than 9 months for filing a

25 claim against it under this section and a period of less
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1 than 2 years for bringing a civil action against it under

2 this section. The period for bringing a civil action is com3 puted from the date the carrier gives a person written no4 tice that the carrier has disallowed any part of the claim

5 specified in the notice. For the purposes of this sub6 section—

7 ‘‘(1) an offer of compromise shall not constitute

8 a disallowance of any part of the claim unless the

9 carrier, in writing, informs the claimant that such

10 part of the claim is disallowed and provides reasons

11 for such disallowance; and

12 ‘‘(2) communications received from a carrier’s

13 insurer shall not constitute a disallowance of any

14 part of the claim unless the insurer, in writing, in15 forms the claimant that such part of the claim is

16 disallowed, provides reasons for such disallowance,

17 and informs the claimant that the insurer is acting

18 on behalf of the carrier.

19 ‘‘CHAPTER 117—CIVIL AND CRIMINAL

20 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.
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1 ‘‘§ 11701. General civil penalties

2 ‘‘(a) Except as otherwise provided in this section, a

3 rail carrier providing transportation subject to the juris4 diction of the Panel under this part, an officer or agent

5 of that rail carrier, or a receiver, trustee, lessee, or agent

6 of one of them, knowingly violating an order of the Panel

7 under this part is liable to the United States Government

8 for a civil penalty of $5,000 for each violation. Liability

9 under this subsection is incurred for each distinct viola10 tion. A separate violation occurs for each day the violation

11 continues.

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

13 to the jurisdiction of the Panel under this part, or a re14 ceiver or trustee of that rail carrier, violating a regulation

15 or order of the Panel under section 10924 (a)(2) or (b)

16 of this title is liable to the United States Government for

17 a civil penalty of $500 for each violation and for $25 for

18 each day the violation continues.

19 ‘‘(c) A person knowingly authorizing, consenting to,

20 or permitting a violation of sections 10701 through 10706

21 of this title or of a requirement or a regulation under any

22 of those sections, is liable to the United States Govern23 ment for a civil penalty of not more than $5,000.

24 ‘‘(d) A rail carrier, receiver, or operating trustee vio25 lating an order or direction of the Panel under section

26 10923 or 10924(a)(1) of this title is liable to the United
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1 States Government for a civil penalty of at least $100 but

2 not more than $500 for each violation and for $50 for

3 each day the violation continues.

4 ‘‘(e)(1) A person required under subchapter III of

5 chapter 109 of this title to make, prepare, preserve, or

6 submit to the Panel a record concerning transportation

7 subject to the jurisdiction of the Panel under this part

8 that does not make, prepare, preserve, or submit that

9 record as required under that subchapter, is liable to the

10 United States Government for a civil penalty of $500 for

11 each violation.

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

13 to the jurisdiction of the Panel under this part, and a les14 sor, receiver, or trustee of that rail carrier, violating sec15 tion 10944(b)(1) of this title, is liable to the United States

16 Government for a civil penalty of $100 for each violation.

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

18 to the jurisdiction of the Panel under this part, a lessor,

19 receiver, or trustee of that rail carrier, a person furnishing

20 cars, and an officer, agent, or employee of one of them,

21 required to make a report to the Panel or answer a ques22 tion that does not make the report or does not specifically,

23 completely, and truthfully answer the question, is liable

24 to the United States Government for a civil penalty of

25 $100 for each violation.
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1 ‘‘(4) A separate violation occurs for each day a viola2 tion under this subsection continues.

3 ‘‘(f) Trial in a civil action under subsections (a)

4 through (e) of this section is in the judicial district in

5 which the rail carrier has its principal operating office or

6 in a district through which the railroad of the rail carrier

7 runs.

8 ‘‘§ 11702. Interference with railroad car supply

9 ‘‘(a) A person that offers or gives anything of value

10 to another person acting for or employed by a rail carrier

11 providing transportation subject to the jurisdiction of the

12 Panel under this part intending to influence an action of

13 that other person related to supply, distribution, or move14 ment of cars or vehicles used in the transportation of prop15 erty, or because of the action of that other person shall

16 be fined not more than $1,000, imprisoned for not more

17 than 2 years, or both.

18 ‘‘(b) A person acting for or employed by a rail carrier

19 providing transportation subject to the jurisdiction of the

20 Panel under this part that solicits, accepts, or receives

21 anything of value—

22 ‘‘(1) intending to be influenced by it in an ac23 tion of that person related to supply, distribution, or

24 movement of cars, vehicles, or vessels used in the

25 transportation of property; or
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1 ‘‘(2) because of the action of that person,

2 shall be fined not more than $1,000, imprisoned for not

3 more than 2 years, or both.

4 ‘‘§ 11703. Record keeping and reporting violations

5 ‘‘A person required to make a report to the Panel,

6 or make, prepare, or preserve a record, under subchapter

7 III of chapter 109 of this title about transportation sub8 ject to the jurisdiction of the Panel under this part that

9 knowingly and willfully—

10 ‘‘(1) makes a false entry in the report or

11 record;

12 ‘‘(2) destroys, mutilates, changes, or by another

13 means falsifies the record;

14 ‘‘(3) does not enter business related facts and

15 transactions in the record;

16 ‘‘(4) makes, prepares, or preserves the record in

17 violation of a regulation or order of the Panel; or

18 ‘‘(5) files a false report or record with the

19 Panel,

20 shall be fined not more than $5,000, imprisoned for not

21 more than 2 years, or both.

22 ‘‘§ 11704. Unlawful disclosure of information

23 ‘‘(a) A—

24 ‘‘(1) rail carrier providing transportation sub25 ject to the jurisdiction of the Panel under this part,
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1 or an officer, agent, or employee of that rail carrier,

2 or another person authorized to receive information

3 from that rail carrier, that knowingly discloses to

4 another person, except the shipper or consignee; or

5 ‘‘(2) a person who solicits or knowingly re6 ceives,

7 information described in subsection (b) without the con8 sent of the shipper or consignee shall be fined not more

9 than $1,000.

10 ‘‘(b) The information referred to in subsection (a) is

11 information about the nature, kind, quantity, destination,

12 consignee, or routing of property tendered or delivered to

13 that rail carrier for transportation provided under this

14 part, or information about the contents of a contract au15 thorized under section 10509 of this title, that may be

16 used to the detriment of the shipper or consignee or may

17 disclose improperly, to a competitor, the business trans18 actions of the shipper or consignee.

19 ‘‘(c) This part does not prevent a rail carrier or

20 broker providing transportation subject to the jurisdiction

21 of the Panel under this part from giving information—

22 ‘‘(1) in response to legal process issued under

23 authority of a court of the United States or a State;
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1 ‘‘(2) to an officer, employee, or agent of the

2 United States Government, a State, or a territory or

3 possession of the United States; or

4 ‘‘(3) to another rail carrier or its agent to ad5 just mutual traffic accounts in the ordinary course

6 of business.

7 ‘‘(d) An employee of the Panel delegated to make an

8 inspection or examination under section 10944 of this title

9 who knowingly discloses information acquired during that

10 inspection or examination, except as directed by the Panel,

11 a court, or a judge of that court, shall be fined not more

12 than $500, imprisoned for not more than 6 months, or

13 both.

14 ‘‘(e) A person that knowingly discloses confidential

15 data made available to such person under section 10963

16 of this title by a rail carrier providing transportation sub17 ject to the jurisdiction of the Panel under this part shall

18 be fined not more than $50,000.

19 ‘‘§ 11705. Disobedience to subpoenas

20 ‘‘A person not obeying a subpoena or requirement of

21 the Panel to appear and testify or produce records shall

22 be fined at least $100 but not more than $5,000, impris23 oned for not more than one year, or both.
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1 ‘‘§ 11706. General criminal penalty when specific

2 penalty not provided

3 ‘‘When another criminal penalty is not provided

4 under this chapter, a rail carrier providing transportation

5 subject to the jurisdiction of the Panel under this part,

6 and when that rail carrier is a corporation, a director or

7 officer of the corporation, or a receiver, trustee, lessee, or

8 person acting for or employed by the corporation that,

9 alone or with another person, willfully violates this part

10 or an order prescribed under this part, shall be fined not

11 more than $5,000. However, if the violation is for dis12 crimination in rates charged for transportation, the person

13 may be imprisoned for not more than 2 years in addition

14 to being fined under this section. A separate violation oc15 curs each day a violation of section 11122 of this title con16 tinues.

17 ‘‘§ 11707. Punishment of corporation for violations

18 committed by certain individuals

19 ‘‘An act or omission that would be a violation of this

20 part if committed by a director, officer, receiver, trustee,

21 lessee, agent, or employee of a rail carrier providing trans22 portation or service subject to the jurisdiction of the Panel

23 under this part that is a corporation is also a violation

24 of this part by that corporation. The penalties of this

25 chapter apply to that violation. When acting in the scope

26 of their employment, the actions and omissions of individ-
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1 uals acting for or employed by that rail carrier are consid2 ered to be the actions and omissions of that rail carrier

3 as well as that individual.’’.

4 (b) CONFORMING AMENDMENT.—The item relating

5 to subtitle IV in the table of subtitles of title 49, United

6 States Code, is amended by striking ‘‘Commerce’’ and

7 inserting in lieu thereof ‘‘Transportation’’.

8 SEC. 103. MOTOR CARRIER, WATER CARRIER, AND FREIGHT

9 FORWARDER PROVISIONS.

10 Subtitle IV of title 49, United States Code, is further

11 amended by adding at the end the following:

12 ‘‘PART B—MOTOR CARRIERS, WATER CARRIERS,

13 BROKERS, AND FREIGHT FORWARDERS

14 ‘‘CHAPTER 131—GENERAL PROVISIONS

‘‘Sec.

‘‘13101. Transportation policy.

‘‘13102. Definitions.

‘‘13103. Remedies as cumulative.

15 ‘‘§ 13101. Transportation policy

16 ‘‘(a) IN GENERAL.—To ensure the development, co17 ordination, and preservation of a transportation system

18 that meets the transportation needs of the United States,

19 including the United States Postal Service and national

20 defense, it is the policy of the United States Government

21 to oversee the modes of transportation and—

22 ‘‘(1) in overseeing those modes—
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1 ‘‘(A) to recognize and preserve the inher2 ent advantage of each mode of transportation;

3 ‘‘(B) to promote safe, adequate, economi4 cal, and efficient transportation;

5 ‘‘(C) to encourage sound economic condi6 tions in transportation, including sound eco7 nomic conditions among carriers;

8 ‘‘(D) to encourage the establishment and

9 maintenance of reasonable rates for transpor10 tation, without unreasonable discrimination or

11 unfair or destructive competitive practices;

12 ‘‘(E) to cooperate with each State and the

13 officials of each State on transportation mat14 ters; and

15 ‘‘(F) to encourage fair wages and working

16 conditions in the transportation industry;

17 ‘‘(2) in overseeing transportation by motor car18 rier, to promote competitive and efficient transpor19 tation services in order to—

20 ‘‘(A) encourage fair competition, and rea21 sonable rates for transportation by motor car22 riers of property;

23 ‘‘(B) promote efficiency in the motor car24 rier transportation system and to require fair

25 and expeditious decisions when required;
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1 ‘‘(C) meet the needs of shippers, receivers,

2 passengers, and consumers;

3 ‘‘(D) allow a variety of quality and price

4 options to meet changing market demands and

5 the diverse requirements of the shipping and

6 traveling public;

7 ‘‘(E) allow the most productive use of

8 equipment and energy resources;

9 ‘‘(F) enable efficient and well-managed

10 carriers to earn adequate profits, attract cap11 ital, and maintain fair wages and working con12 ditions;

13 ‘‘(G) provide and maintain service to small

14 communities and small shippers and intrastate

15 bus services;

16 ‘‘(H) provide and maintain commuter bus

17 operations;

18 ‘‘(I) improve and maintain a sound, safe,

19 and competitive privately owned motor carrier

20 system;

21 ‘‘(J) promote greater participation by mi22 norities in the motor carrier system; and

23 ‘‘(K) promote intermodal transportation;

24 and
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1 ‘‘(3) in overseeing transportation by motor car2 rier of passengers—

3 ‘‘(A) to cooperate with the States on trans4 portation matters for the purpose of encourag5 ing the States to exercise intrastate regulatory

6 jurisdiction in accordance with the objectives of

7 this part;

8 ‘‘(B) to provide Federal procedures which

9 ensure that intrastate regulation is exercised in

10 accordance with this part; and

11 ‘‘(C) to ensure that Federal reform initia12 tives enacted by section 31138 and the Bus

13 Regulatory Reform Act of 1982 are not nul14 lified by State regulatory actions.

15 ‘‘(b) ADMINISTRATION TO CARRY OUT POLICY.—

16 This part shall be administered and enforced to carry out

17 the policy of this section.

18 ‘‘§ 13102. Definitions

19 ‘‘In this part, the following definitions shall apply:

20 ‘‘(1) BROKER.—The term ‘broker’ means a per21 son, other than a motor carrier or an employee or

22 agent of a motor carrier, that as a principal or agent

23 sells, offers for sale, negotiates for, or holds itself

24 out by solicitation, advertisement, or otherwise as
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1 selling, providing, or arranging for, transportation

2 by motor carrier for compensation.

3 ‘‘(2) CARRIER.—The term ‘carrier’ means a

4 motor carrier, a water carrier, and a freight for5 warder.

6 ‘‘(3) CONTRACT CARRIAGE.—The term ‘contract

7 carriage’ means—

8 ‘‘(A) for transportation provided before the

9 effective date of this section, service provided

10 pursuant to a permit issued under section

11 10923, as in effect on the day before the effec12 tive date of this section; and

13 ‘‘(B) for transportation provided on or

14 after such date, service provided under an

15 agreement entered into under section 14101(b).

16 ‘‘(4) CONTROL.—The term ‘control’, when re17 ferring to a relationship between persons, includes

18 actual control, legal control, and the power to exer19 cise control, through or by—

20 ‘‘(A) common directors, officers, stockhold21 ers, a voting trust, or a holding or investment

22 company, or

23 ‘‘(B) any other means.

24 ‘‘(5) FOREIGN MOTOR CARRIER.—The term

25 ‘foreign motor carrier’ means a person (including a
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1 motor carrier of property but excluding a motor pri2 vate carrier)—

3 ‘‘(A)(i) that is domiciled in a contiguous

4 foreign country; or

5 ‘‘(ii) that is owned or controlled by persons

6 of a contiguous foreign country; and

7 ‘‘(B) in the case of a person that is not a

8 motor carrier of property, that provides inter9 state transportation of property by motor vehi10 cle under an agreement or contract entered into

11 with a motor carrier of property (other than a

12 motor private carrier or a motor carrier of

13 property described in subparagraph (A)).

14 ‘‘(6) FOREIGN MOTOR PRIVATE CARRIER.—The

15 term ‘foreign motor private carrier’ means a person

16 (including a motor private carrier but excluding a

17 motor carrier of property)—

18 ‘‘(A)(i) that is domiciled in a contiguous

19 foreign country; or

20 ‘‘(ii) that is owned or controlled by persons

21 of a contiguous foreign country; and

22 ‘‘(B) in the case of a person that is not a

23 motor private carrier, that provides interstate

24 transportation of property by motor vehicle

25 under an agreement or contract entered into
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1 with a person (other than a motor carrier of

2 property or a motor private carrier described in

3 subparagraph (A)).

4 ‘‘(7) FREIGHT FORWARDER.—The term ‘freight

5 forwarder’ means a person holding itself out to the

6 general public (other than as a pipeline, rail, motor,

7 or water carrier) to provide transportation of prop8 erty for compensation and in the ordinary course of

9 its business—

10 ‘‘(A) assembles and consolidates, or pro11 vides for assembling and consolidating, ship12 ments and performs or provides for break-bulk

13 and distribution operations of the shipments;

14 ‘‘(B) assumes responsibility for the trans15 portation from the place of receipt to the place

16 of destination; and

17 ‘‘(C) uses for any part of the transpor18 tation a carrier subject to jurisdiction under

19 this part.

20 The term does not include a person using transpor21 tation of an air carrier subject to part A of subtitle

22 VII.

23 ‘‘(8) HIGHWAY.—The term ‘highway’ means a

24 road, highway, street, and way in a State.
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1 ‘‘(9) HOUSEHOLD GOODS.—The term ‘house2 hold goods’, as used in connection with transpor3 tation, means personal effects and property used or

4 to be used in a dwelling, when a part of the equip5 ment or supply of such dwelling, and similar prop6 erty if the transportation of such effects or property

7 is—

8 ‘‘(A) arranged and paid for by the house9 holder, including transportation of property

10 from a factory or store when the property is

11 purchased by the householder with intent to use

12 in his or her dwelling, or

13 ‘‘(B) arranged and paid for by another

14 party.

15 ‘‘(10) HOUSEHOLD GOODS FREIGHT FOR16 WARDER.—The term ‘household goods freight for17 warder’ means a freight forwarder of one or more of

18 the following items: household goods, unaccompanied

19 baggage, or used automobiles.

20 ‘‘(11) MOTOR CARRIER.—The term ‘motor car21 rier’ means a person providing motor vehicle trans22 portation for compensation.

23 ‘‘(12) MOTOR PRIVATE CARRIER.—The term

24 ‘motor private carrier’ means a person, other than a
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1 motor carrier, transporting property by motor vehi2 cle when—

3 ‘‘(A) the transportation is as provided in

4 section 13501 of this title;

5 ‘‘(B) the person is the owner, lessee, or

6 bailee of the property being transported; and

7 ‘‘(C) the property is being transported for

8 sale, lease, rent, or bailment or to further a

9 commercial enterprise.

10 ‘‘(13) MOTOR VEHICLE.—The term ‘motor vehi11 cle’ means a vehicle, machine, tractor, trailer, or

12 semitrailer propelled or drawn by mechanical power

13 and used on a highway in transportation, or a com14 bination determined by the Secretary, but does not

15 include a vehicle, locomotive, or car operated only on

16 a rail, or a trolley bus operated by electric power

17 from a fixed overhead wire, and providing local pas18 senger transportation similar to street-railway serv19 ice.

20 ‘‘(14) NONCONTIGUOUS DOMESTIC TRADE.—

21 The term ‘noncontiguous domestic trade’ means

22 transportation subject to jurisdiction under chapter

23 135 involving traffic originating in or destined to

24 Alaska, Hawaii, or a territory or possession of the

25 United States.
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1 ‘‘(15) PANEL.—The term ‘Panel’ means the

2 Transportation Adjudication Panel.

3 ‘‘(16) PERSON.—The term ‘person’, in addition

4 to its meaning under section 1 of title 1, includes a

5 trustee, receiver, assignee, or personal representative

6 of a person.

7 ‘‘(17) SECRETARY.—The term ‘Secretary’

8 means the Secretary of Transportation.

9 ‘‘(18) STATE.—The term ‘State’ means the 50

10 States of the United States and the District of Co11 lumbia.

12 ‘‘(19) TRANSPORTATION.—The term ‘transpor13 tation’ includes—

14 ‘‘(A) a motor vehicle, vessel, warehouse,

15 wharf, pier, dock, yard, property, facility, in16 strumentality, or equipment of any kind related

17 to the movement of passengers or property, or

18 both, regardless of ownership or an agreement

19 concerning use; and

20 ‘‘(B) services related to that movement, in21 cluding receipt, delivery, elevation, transfer in

22 transit, refrigeration, icing, ventilation, storage,

23 handling, and interchange of passengers and

24 property.
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1 ‘‘(20) UNITED STATES.—The term ‘United

2 States’ means the States of the United States and

3 the District of Columbia.

4 ‘‘(21) VESSEL.—The term ‘vessel’ means a

5 watercraft or other artificial contrivance that is

6 used, is capable of being used, or is intended to be

7 used, as a means of transportation by water.

8 ‘‘(22) WATER CARRIER.—The term ‘water car9 rier’ means a person providing water transportation

10 for compensation.

11 ‘‘§ 13103. Remedies as cumulative

12 ‘‘Except as otherwise provided in this part, the rem13 edies provided under this part are in addition to remedies

14 existing under another law or common law.

15 ‘‘CHAPTER 133—ADMINISTRATIVE PROVISIONS

‘‘Sec.

‘‘13301. Powers.

‘‘13302. Intervention.

‘‘13303. Service of notice in proceedings.

‘‘13304. Service of process in court proceedings.

16 ‘‘§ 13301. Powers

17 ‘‘(a) GENERAL POWERS OF SECRETARY.—Except as

18 otherwise specified, the Secretary shall carry out this part.

19 Enumeration of a power of the Secretary in this part does

20 not exclude another power the Secretary may have in car21 rying out this part. The Secretary may prescribe regula22 tions in carrying out this part.
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1 ‘‘(b) OBTAINING INFORMATION.—The Secretary may

2 obtain from carriers providing, and brokers for, transpor3 tation and service subject to this part, and from persons

4 controlling, controlled by, or under common control with

5 those carriers or brokers to the extent that the business

6 of that person is related to the management of the busi7 ness of that carrier or broker, information the Secretary

8 decides is necessary to carry out this part.

9 ‘‘(c) SUBPOENA POWER.—

10 ‘‘(1) BY SECRETARY.—The Secretary may sub11 poena witnesses and records related to a proceeding

12 under this part from any place in the United States,

13 to the designated place of the proceeding. If a wit14 ness disobeys a subpoena, the Secretary, or a party

15 to a proceeding under this part, may petition a court

16 of the United States to enforce that subpoena.

17 ‘‘(2) ENFORCEMENT.—The district courts of the

18 United States have jurisdiction to enforce a sub19 poena issued under this section. Trial is in the dis20 trict in which the proceeding is conducted. The court

21 may punish a refusal to obey a subpoena as a con22 tempt of court.

23 ‘‘(d) TESTIMONY OF WITNESSES.—

24 ‘‘(1) PROCEDURE FOR TAKING TESTIMONY.—In

25 a proceeding under this part, the Secretary may
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1 take the testimony of a witness by deposition and

2 may order the witness to produce records. A party

3 to a proceeding pending under this part may take

4 the testimony of a witness by deposition and may re5 quire the witness to produce records at any time

6 after a proceeding is at issue on petition and an7 swer.

8 ‘‘(2) SUBPOENA.—If a witness fails to be de9 posed or to produce records under paragraph (1) of

10 this subsection, the Secretary may subpoena the wit11 ness to take a deposition, produce the records, or

12 both.

13 ‘‘(3) DEPOSITIONS.—A deposition may be taken

14 before a judge of a court of the United States, a

15 United States magistrate judge, a clerk of a district

16 court, or a chancellor, justice, or judge of a supreme

17 or superior court, mayor or chief magistrate of a

18 city, judge of a county court, or court of common

19 pleas of any State, or a notary public who is not

20 counsel or attorney of a party or interested in the

21 proceeding.

22 ‘‘(4) NOTICE OF DEPOSITION.—Before taking a

23 deposition, reasonable notice must be given in writ24 ing by the party or the attorney of that party pro25 posing to take a deposition to the opposing party or
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1 the attorney of record of that party, whoever is near2 est. The notice shall state the name of the witness

3 and the time and place of taking the deposition.

4 ‘‘(5) TRANSCRIPT.—The testimony of a person

5 deposed under this subsection shall be taken under

6 oath. The person taking the deposition shall prepare,

7 or cause to be prepared, a transcript of the testi8 mony taken. The transcript shall be subscribed by

9 the deponent.

10 ‘‘(6) FOREIGN COUNTRY.—The testimony of a

11 witness who is in a foreign country may be taken by

12 deposition before an officer or person designated by

13 the Secretary or agreed on by the parties by written

14 stipulation filed with the Secretary. A deposition

15 shall be filed with the Secretary promptly.

16 ‘‘(e) WITNESS FEES.—Each witness summoned be17 fore the Secretary or whose deposition is taken under this

18 section and the individual taking the deposition are enti19 tled to the same fees and mileage paid for those services

20 in the courts of the United States.

21 ‘‘(f) POWERS OF PANEL.—For those provisions of

22 this part that are specified to be carried out by the Panel,

23 the Panel shall have the same powers as the Secretary

24 has under this section.
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1 ‘‘§ 13302. Intervention

2 ‘‘Under regulations of the Secretary, reasonable no3 tice of, and an opportunity to intervene and participate

4 in, a proceeding under this part related to transportation

5 subject to jurisdiction under subchapter I of chapter 135

6 shall be given to interested persons.

7 ‘‘§ 13303. Service of notice in proceedings

8 ‘‘(a) AGENTS FOR SERVICE OF PROCESS.—A carrier,

9 a broker, or a freight forwarder providing transportation

10 or service subject to jurisdiction under chapter 135 shall

11 designate, in writing, an agent by name and post office

12 address on whom service of notices in a proceeding before,

13 and of actions of, the Secretary may be made.

14 ‘‘(b) FILING WITH STATE.—A motor carrier provid15 ing transportation under this part shall also file the des16 ignation with the appropriate authority of each State in

17 which it operates. The designation may be changed at any

18 time in the same manner as originally made.

19 ‘‘(c) NOTICE.—A notice to a motor carrier, freight

20 forwarder, or broker shall be served personally or by mail

21 on the motor carrier, freight forwarder, or broker or on

22 its designated agent. Service by mail on the designated

23 agent shall be made at the address filed for the agent.

24 When notice is given by mail, the date of mailing is consid25 ered to be the time when the notice is served. If a motor

26 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 have jurisdiction, as

5 specified in this part, over transportation by motor carrier

6 and the procurement of that transportation, to the extent

7 that passengers, property, or both, are transported by

8 motor carrier—

9 ‘‘(1) between a place in—

10 ‘‘(A) a State and a place in another State;

11 ‘‘(B) a State and another place in the

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 and the

5 Panel have jurisdiction over transportation insofar as

6 water carriers are concerned—

7 ‘‘(1) by water carrier between a place in a State

8 and a place in another State, even if part of the

9 transportation is outside the United States;

10 ‘‘(2) by water carrier and motor carrier from a

11 place in a State to a place in another State; except

12 that if part of the transportation is outside the

13 United States, the Secretary only has jurisdiction

14 over that part of the transportation provided—

15 ‘‘(A) by motor carrier that is in the United

16 States; and

17 ‘‘(B) by water carrier that is from a place

18 in the United States to another place in the

19 United States; and

20 ‘‘(3) by water carrier or by water carrier and

21 motor carrier between a place in the United States

22 and a place outside the United States, to the extent

23 that—
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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) LIMITATION.—The Panel may not exempt a

19 water carrier from the application of, or compliance with,

20 sections 13701 and 13702 for transportation in noncontig21 uous domestic trade.

22 ‘‘(c) DEFINITIONS.—In this section, the terms ‘State’

23 and ‘United States’ include the territories and possessions

24 of the United States.
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1 ‘‘SUBCHAPTER III—FREIGHT FORWARDER

2 SERVICE

3 ‘‘§ 13531. General jurisdiction

4 ‘‘(a) IN GENERAL.—The Secretary and the Panel

5 have jurisdiction, as specified in this part, over service

6 that a freight forwarder undertakes to provide, or is au7 thorized or required under this part to provide, to the ex8 tent transportation is provided in the United States and

9 is between—

10 ‘‘(1) a place in a State and a place in another

11 State, even if part of the transportation is outside

12 the United States;

13 ‘‘(2) a place in a State and another place in the

14 same State through a place outside the State; or

15 ‘‘(3) a place in the United States and a place

16 outside the United States.

17 ‘‘(b) EXEMPTION OF CERTAIN AIR CARRIER SERV18 ICE.—Neither the Secretary nor the Panel has jurisdiction

19 under subsection (a) of this section over service under20 taken by a freight forwarder using transportation of an

21 air carrier subject to part A of subtitle VII of this title.
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1 ‘‘SUBCHAPTER IV—AUTHORITY TO EXEMPT

2 ‘‘§ 13541. Authority to exempt transportation or serv3 ices

4 ‘‘(a) IN GENERAL.—In any matter subject to juris5 diction under this part, the Secretary or the Panel, as ap6 plicable, shall exempt a person, class of persons, or a

7 transaction or service from the application of a provision

8 of this part, or use this exemption authority to modify the

9 application of a provision of this part as it applies to such

10 person, class, transaction, or service, when the Secretary

11 or Panel finds that the application of that provision in

12 whole or in part—

13 ‘‘(1) is not necessary to carry out the transpor14 tation policy of section 13101;

15 ‘‘(2) is not needed to protect shippers from the

16 abuse of market power or that the transaction or

17 service is of limited scope; and

18 ‘‘(3) is in the public interest.

19 ‘‘(b) INITIATION OF PROCEEDING.—The Secretary or

20 Panel, as applicable, may, where appropriate, begin a pro21 ceeding under this section on the Secretary’s or Panel’s

22 own initiative or on application by an interested party.

23 ‘‘(c) PERIOD OF EXEMPTION.—The Secretary or

24 Panel, as applicable, may specify the period of time during

25 which an exemption granted under this section is effective.
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1 ‘‘(d) REVOCATION.—The Secretary or Panel, as ap2 plicable, may revoke an exemption, to the extent specified,

3 on finding that application of a provision of this part to

4 the person, class, or transportation is necessary to carry

5 out the transportation policy of section 13101.

6 ‘‘(e) LIMITATIONS.—The exemption authority under

7 this section may not be used to relieve a person from the

8 application of, and compliance with, any law, rule, regula9 tion, standard, or order pertaining to cargo loss and dam10 age, insurance, safety fitness, or activities approved under

11 section 13703 or 14302 or not terminated under section

12 13907(d)(2).

13 ‘‘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. Payment of rates.

‘‘13708. Billing and collecting practices.

‘‘13709. Procedures for resolving claims involving unfiled, negotiated transportation rates.

‘‘13710. Additional billing and collecting practices.

‘‘13711. Alternative procedure for resolving undercharge disputes.

‘‘13712. Government traffic.

‘‘13713. Food and grocery transportation.

14 ‘‘§ 13701. Requirements for reasonable rates, classi15 fications, through routes, rules, and prac16 tices for certain transportation

17 ‘‘(a) REASONABLENESS.—
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1 ‘‘(1) CERTAIN HOUSEHOLD GOODS TRANSPOR2 TATION; JOINT RATES INVOLVING WATER TRANSPOR3 TATION.—A rate, classification, rule, or practice re4 lated to transportation or service provided by a car5 rier subject to jurisdiction under chapter 135 for

6 transportation or service involving—

7 ‘‘(A) a movement of household goods,

8 ‘‘(B) a rate for a movement by or with a

9 water carrier in noncontiguous domestic trade,

10 or

11 ‘‘(C) rates, rules, and classifications made

12 collectively by motor carriers under agreement

13 pursuant to section 13703,

14 must be reasonable.

15 ‘‘(2) THROUGH ROUTES AND DIVISIONS OF

16 JOINT RATES.—Through routes and divisions of

17 joint rates for such transportation or service must

18 be reasonable.

19 ‘‘(b) PRESCRIPTION BY PANEL FOR VIOLATIONS.—

20 When the Panel finds it necessary to stop or prevent a

21 violation of subsection (a), the Panel shall prescribe the

22 rate, classification, rule, practice, through route, or divi23 sion of joint rates to be applied for such transportation

24 or service.

25 ‘‘(c) ZONE OF REASONABLENESS.—
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1 ‘‘(1) IN GENERAL.—For purposes of this sec2 tion, a rate or division of a carrier for service in

3 noncontiguous domestic trade is reasonable if the

4 aggregate of increases and decreases in any such

5 rate or division is not more than 10 percent above,

6 or more than 10 percent below, the rate or division

7 in effect 1 year before the effective date of the pro8 posed rate or division.

9 ‘‘(2) ADJUSTMENTS TO THE ZONE.—The per10 centage specified in paragraph (1) shall be increased

11 or decreased, as the case may be, by the percentage

12 change in the Producers Price Index, as published

13 by the Department of Labor, that has occurred dur14 ing the most recent 1-year period before the date the

15 rate or division in question first took effect.

16 ‘‘§ 13702. Tariff requirement for certain transpor17 tation

18 ‘‘(a) IN GENERAL.—A carrier subject to jurisdiction

19 under chapter 135 may provide transportation or service

20 that is—

21 ‘‘(1) in noncontiguous domestic trade, except

22 with regard to bulk cargo, forest products, recycled

23 metal scrap, waste paper, and paper waste; or

24 ‘‘(2) for movement of household goods;
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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) INLAND DIVISIONS.—A carrier providing

11 transportation or service described in subsection

12 (a)(1) under a joint rate for a through movement

13 shall not be required to state separately or otherwise

14 reveal in tariff filings the inland divisions of that

15 through rate.

16 ‘‘(4) TIME-VOLUME RATES.—Rates in tariffs

17 filed under this subsection may vary with the volume

18 of cargo offered over a specified period of time.

19 ‘‘(5) CHANGES.—The Panel may permit car20 riers to change rates, classifications, rules, and prac21 tices without filing complete tariffs under this sub22 section that cover matter that is not being changed

23 when the Panel finds that action to be consistent

24 with the public interest. Those carriers may either—
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1 ‘‘(A) publish new tariffs that incorporate

2 changes, or

3 ‘‘(B) plainly indicate the proposed changes

4 in the tariffs then in effect and make the tariffs

5 as changed available for public inspection.

6 ‘‘(c) TARIFF REQUIREMENTS FOR HOUSEHOLD

7 GOODS CARRIERS.—

8 ‘‘(1) IN GENERAL.—A carrier providing trans9 portation described in subsection (a)(2) shall main10 tain rates and related rules and practices in a tariff.

11 The tariff must be submitted to the Panel for in12 spection and be made available for inspection by

13 shippers upon reasonable request.

14 ‘‘(2) NOTICE OF AVAILABILITY.—A carrier that

15 maintains a tariff under this subsection may not en16 force the provisions of the tariff unless the carrier

17 has given notice that the tariff is available for in18 spection in its bill of lading or by other actual notice

19 to individuals whose shipments are subject to the

20 tariff.

21 ‘‘(3) REQUIREMENTS.—A carrier that main22 tains a tariff under this subsection is bound by the

23 tariff except as otherwise provided in this part. A

24 tariff that does not comply with this subsection may

25 not be enforced against any individual shipper.
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1 ‘‘(4) INCORPORATION BY REFERENCE.—A car2 rier may incorporate by reference the rates, terms,

3 and other conditions of a tariff in agreements cover4 ing the transportation of household goods.

5 ‘‘(5) COMPLAINTS.—A complaint that a rate or

6 related rule or practice maintained in a tariff under

7 this subsection violates section 13701(a) may be

8 submitted to the Panel for resolution.

9 ‘‘(d) INVALIDATION.—The Panel may invalidate a

10 tariff prepared by a carrier or carriers under this section

11 if that tariff violates this section or a regulation of the

12 Panel carrying out this section.

13 ‘‘§ 13703. Certain collective activities; exemption from

14 antitrust laws

15 ‘‘(a) AGREEMENTS.—

16 ‘‘(1) AUTHORITY TO ENTER.—A motor carrier

17 providing transportation or service subject to juris18 diction under chapter 135 may enter into an agree19 ment with one or more such carriers to establish—

20 ‘‘(A) through routes and joint rates;

21 ‘‘(B) rates for the transportation of house22 hold goods;

23 ‘‘(C) classifications;

24 ‘‘(D) mileage guides;

25 ‘‘(E) rules;
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1 ‘‘(F) divisions;

2 ‘‘(G) rate adjustments of general applica3 tion based on industry average carrier costs (so

4 long as there is no discussion of individual mar5 kets or particular single-line rates); or

6 ‘‘(H) procedures for joint consideration,

7 initiation, or establishment of matters described

8 in subparagraphs (A) through (G).

9 ‘‘(2) SUBMISSION OF AGREEMENT TO PANEL;

10 APPROVAL.—An agreement entered into under sub11 section (a) may be submitted by any carrier or car12 riers that are parties to such agreement to the Panel

13 for approval and may be approved by the Panel only

14 if it finds that such agreement is in the public inter15 est.

16 ‘‘(3) CONDITIONS.—The Panel may require

17 compliance with reasonable conditions consistent

18 with this part to assure that the agreement furthers

19 the transportation policy set forth in section 13101.

20 ‘‘(4) INDEPENDENTLY ESTABLISHED RATES.—

21 Any carrier which is a party to an agreement under

22 paragraph (1) is not, and may not be precluded,

23 from independently establishing its own rates, classi24 fication, and mileages or from adopting and using a

25 noncollectively made classification or mileage guide.
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1 ‘‘(5) INVESTIGATIONS.—

2 ‘‘(A) REASONABLENESS.—The Panel may

3 suspend and investigate the reasonableness of

4 any rate, rule, classification, or rate adjustment

5 of general application made pursuant to an

6 agreement under this section.

7 ‘‘(B) ACTIONS NOT IN THE PUBLIC INTER8 EST.—The Panel may investigate any action

9 taken pursuant to an agreement approved

10 under this section. If the Panel finds that the

11 action is not in the public interest, the Panel

12 may take such measures as may be necessary to

13 protect the public interest with regard to the

14 action, including issuing an order directing the

15 parties to cease and desist or modify the action.

16 ‘‘(6) 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. Parties to
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1 the agreement may continue to undertake activities pursu2 ant to the previously approved agreement while the re3 newal request is pending.

4 ‘‘(e) EXISTING AGREEMENTS.—Agreements approved

5 under former section 10706(b) and in effect on the day

6 before the effective date of this section shall be treated

7 for purposes of this section as approved by the Panel

8 under this section beginning on such effective date.

9 ‘‘(f) LIMITATIONS ON STATUTORY CONSTRUCTION.—

10 ‘‘(1) UNDERCHARGE CLAIMS.—Nothing in this

11 section shall serve as a basis for any undercharge

12 claim.

13 ‘‘(2) OBLIGATION OF SHIPPER.—Nothing in

14 this title, the ICC Termination Act of 1995, or any

15 amendments or repeals made by such Act shall be

16 construed as creating any obligation for a shipper

17 based solely on a classification that was on file with

18 the Interstate Commerce Commission or elsewhere

19 on the day before the effective date of this section.

20 ‘‘(g) INDUSTRY STANDARD GUIDES.—

21 ‘‘(1) IN GENERAL.—

22 ‘‘(A) PUBLIC AVAILABILITY.—Routes,

23 rates, classifications, mileage guides, and rules

24 established under agreements approved under
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1 this section shall be published and made avail2 able for public inspection upon request.

3 ‘‘(B) PARTICIPATION OF CARRIERS.—

4 ‘‘(i) IN GENERAL.—A motor carrier of

5 property whose routes, rates, classifica6 tions, mileage guides, rules, or packaging

7 are determined or governed by publications

8 established under agreements approved

9 under this section must participate in the

10 determining or governing publication for

11 such provisions to apply.

12 ‘‘(ii) POWER OF ATTORNEY.—The

13 motor carrier of property shall issue a

14 power of attorney to the publishing agent

15 and, upon its acceptance, the agent shall

16 issue a written certification to the motor

17 carrier affirming its participation in the

18 governing publication, and the certification

19 shall be made available for public inspec20 tion.

21 ‘‘(2) MILEAGE LIMITATION.—No carrier subject

22 to jurisdiction under subchapter I or III of chapter

23 135 may enforce collection of its mileage rates un24 less such carrier—
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1 ‘‘(A) uses an independent publication of

2 mileage that is developed independently of any

3 other publication of mileage developed by any

4 other carrier and that can be examined by any

5 interested person upon reasonable request; or

6 ‘‘(B) is a participant in a publication of

7 mileages formulated under an agreement ap8 proved under this section.

9 ‘‘(h) SINGLE LINE RATE DEFINED.—In this section,

10 the term ‘single line rate’ means a rate, charge, or allow11 ance proposed by a single motor carrier that is applicable

12 only over its line and for which the transportation can be

13 provided by that carrier.

14 ‘‘§ 13704. Household goods rates—estimates; guaran15 tees of service

16 ‘‘(a) IN GENERAL.—

17 ‘‘(1) AUTHORITY.—Subject to the provisions of

18 paragraph (2) of this subsection, a motor carrier

19 providing transportation of household goods subject

20 to jurisdiction under subchapter I of chapter 135

21 may establish a rate for the transportation of house22 hold goods which is based on the carrier’s written,

23 binding estimate of charges for providing such trans24 portation.
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1 ‘‘(2) NONPREFERENTIAL; NONPREDATORY.—

2 Any rate established under this subsection must be

3 available on a nonpreferential basis to shippers and

4 must not result in charges to shippers which are

5 predatory.

6 ‘‘(b) RATES FOR GUARANTEED SERVICE.—

7 ‘‘(1) AUTHORITY.—Subject to the provisions of

8 paragraph (2) of this subsection, a motor carrier

9 providing transportation of household goods subject

10 to jurisdiction under subchapter I of chapter 135

11 may establish rates for the transportation of house12 hold goods which guarantee that the carrier will pick

13 up and deliver such household goods at the times

14 specified in the contract for such services and pro15 vide a penalty or per diem payment in the event the

16 carrier fails to pick up or deliver such household

17 goods at the specified time. The charges, if any, for

18 such guarantee and penalty provision may vary to

19 reflect one or more options available to meet a par20 ticular shipper’s needs.

21 ‘‘(2) AUTHORITY OF SECRETARY TO REQUIRE

22 NONGUARANTEED SERVICE RATES.—Before a carrier

23 may establish a rate for any service under paragraph

24 (1) of this subsection, the Secretary may require

25 such carrier to have in effect and keep in effect, dur-
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1 ing any period such rate is in effect under para2 graph (1), a rate for such service which does not

3 guarantee the pick up and delivery of household

4 goods at the times specified in the contract for such

5 services and which does not provide a penalty or per

6 diem payment in the event the carrier fails to pick

7 up or deliver household goods at the specified time.

8 ‘‘§ 13705. Requirements for through routes among

9 motor carriers of passengers

10 ‘‘(a) ESTABLISHMENT; REASONABLENESS.—A motor

11 carrier providing transportation of passengers subject to

12 jurisdiction under subchapter I of chapter 135 shall estab13 lish through routes with other carriers of the same type

14 and shall establish individual and joint rates applicable to

15 them. Such through route must be reasonable.

16 ‘‘(b) PRESCRIBED BY PANEL.—When the Panel finds

17 it necessary to enforce the requirements of this section,

18 the Panel may prescribe through routes and the conditions

19 under which those routes must be operated for motor car20 riers providing transportation of passengers subject to ju21 risdiction under subchapter I of chapter 135.

22 ‘‘§ 13706. Liability for payment of rates

23 ‘‘(a) LIABILITY OF CONSIGNEE.—Liability for pay24 ment of rates for transportation for a shipment of prop25 erty by a shipper or consignor to a consignee other than
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1 the shipper or consignor, is determined under this section

2 when the transportation is provided by motor carrier

3 under this part. When the shipper or consignor instructs

4 the carrier transporting the property to deliver it to a con5 signee that is an agent only, not having beneficial title

6 to the property, the consignee is liable for rates billed at

7 the time of delivery for which the consignee is otherwise

8 liable, but not for additional rates that may be found to

9 be due after delivery if the consignee gives written notice

10 to the delivering carrier before delivery of the property—

11 ‘‘(1) of the agency and absence of beneficial

12 title; and

13 ‘‘(2) of the name and address of the beneficial

14 owner of the property if it is reconsigned or diverted

15 to a place other than the place specified in the origi16 nal bill of lading.

17 ‘‘(b) LIABILITY OF BENEFICIAL OWNER.—When the

18 consignee is liable only for rates billed at the time of deliv19 ery under subsection (a), the shipper or consignor, or, if

20 the property is reconsigned or diverted, the beneficial

21 owner is liable for those additional rates regardless of the

22 bill of the lading or contract under which the property was

23 transported. The beneficial owner is liable for all rates

24 when the property is reconsigned or diverted by an agent

25 but is refused or abandoned at its ultimate destination if
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1 the agent gave the carrier in the reconsignment or diver2 sion order a notice of agency and the name and address

3 of the beneficial owner. A consignee giving the carrier er4 roneous information about the identity of the beneficial

5 owner of the property is liable for the additional rates.

6 ‘‘§ 13707. Payment of rates

7 ‘‘(a) TRANSFER OF POSSESSION UPON PAYMENT.—

8 Except as provided in subsection (b), a carrier providing

9 transportation or service subject to jurisdiction under this

10 part shall give up possession at the destination of the

11 property transported by it only when payment for the

12 transportation or service is made.

13 ‘‘(b) EXCEPTIONS.—

14 ‘‘(1) REGULATIONS.—Under regulations of the

15 Secretary governing the payment for transportation

16 and service and preventing discrimination, those car17 riers may give up possession at destination of prop18 erty transported by them before payment for the

19 transportation or service. The regulations of the Sec20 retary may provide for weekly or monthly payment

21 for transportation provided by motor carriers and

22 for periodic payment for transportation provided by

23 water carriers.

24 ‘‘(2) EXTENSIONS OF CREDIT TO GOVERN25 MENTAL ENTITIES.—Such a carrier (including a
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1 motor carrier being used by a household goods

2 freight forwarder) may extend credit for transport3 ing property for the United States Government, a

4 State, a territory or possession of the United States,

5 or a political subdivision of any of them.

6 ‘‘§ 13708. Billing and collecting practices

7 ‘‘(a) DISCLOSURE.—A motor carrier subject to juris8 diction under subchapter I of chapter 135 shall disclose,

9 when a document is presented or electronically transmit10 ted for payment to the person responsible directly to the

11 motor carrier for payment or agent of such responsible

12 person, the actual rates, charges, or allowances for any

13 transportation service and shall also disclose, at such time,

14 whether and to whom any allowance or reduction in

15 charges is made.

16 ‘‘(b) FALSE OR MISLEADING INFORMATION.—No

17 person may cause a motor carrier to present false or mis18 leading information on a document about the actual rate,

19 charge, or allowance to any party to the transaction.

20 ‘‘(c) ALLOWANCES FOR SERVICES.—When the actual

21 rate, charge, or allowance is dependent upon the perform22 ance of a service by a party to the transportation arrange23 ment, such as tendering a volume of freight over a stated

24 period of time, the motor carrier shall indicate in any doc25 ument presented for payment to the person responsible di-
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1 rectly to the motor carrier that a reduction, allowance, or

2 other adjustment may apply.

3 ‘‘§ 13709. Procedures for resolving claims involving

4 unfiled, negotiated transportation rates

5 ‘‘(a) TRANSPORTATION PROVIDED AT RATES OTHER

6 THAN LEGAL TARIFF RATES.—

7 ‘‘(1) IN GENERAL.—When a claim is made by

8 a motor carrier of property (other than a household

9 goods carrier) providing transportation subject to ju10 risdiction under subchapter II of chapter 105, as in

11 effect on the day before the effective date of this sec12 tion, by a freight forwarder (other than a household

13 goods freight forwarder), or under subchapter I of

14 chapter 135, or by a party representing such a car15 rier or freight forwarder regarding the collection of

16 rates or charges for such transportation in addition

17 to those originally billed and collected by the carrier

18 or freight forwarder for such transportation, the per19 son against whom the claim is made may elect to

20 satisfy the claim under the provisions of subsection

21 (b), (c), or (d), upon showing that—

22 ‘‘(A) the carrier or freight forwarder is no

23 longer transporting property or is transporting

24 property for the purpose of avoiding the appli25 cation of this section; and
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1 ‘‘(B) with respect to the claim—

2 ‘‘(i) the person was offered a trans3 portation rate by the carrier or freight for4 warder other than that legally on file with

5 the Interstate Commerce Commission or

6 the Panel, as required, for the transpor7 tation service;

8 ‘‘(ii) the person tendered freight to

9 the carrier or freight forwarder in reason10 able reliance upon the offered transpor11 tation rate;

12 ‘‘(iii) the carrier or freight forwarder

13 did not properly or timely file with the

14 Interstate Commerce Commission or the

15 Panel, as required, a tariff providing for

16 such transportation rate or failed to enter

17 into an agreement for contract carriage;

18 ‘‘(iv) such transportation rate was

19 billed and collected by the carrier or

20 freight forwarder; and

21 ‘‘(v) the carrier or freight forwarder

22 demands additional payment of a higher

23 rate filed in a tariff.

24 ‘‘(2) FORUM FOR RESOLUTION OF SHOWINGS.—

25 If there is a dispute as to the showing under para-
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1 graph (1)(A), such dispute shall be resolved by the

2 court in which the claim is brought. If there is a dis3 pute as to the showing under paragraph (1)(B),

4 such dispute shall be resolved by the Panel. Pending

5 the resolution of any such dispute, the person shall

6 not have to pay any additional compensation to the

7 carrier or freight forwarder.

8 ‘‘(3) EFFECT OF SATISFACTION OF CLAIMS

9 UNDER DISPUTE RESOLUTION PROCEDURE.—Satis10 faction of a claim under subsection (b), (c), or (d)

11 shall be binding on the parties, and the parties shall

12 not be subject to chapter 119, as in effect on the

13 day before the effective date of this section, or chap14 ter 149.

15 ‘‘(b) CLAIMS INVOLVING SHIPMENTS WEIGHING

16 10,000 POUNDS OR LESS.—A person from whom the ad17 ditional legally applicable and effective tariff rate or

18 charges are sought may elect to satisfy the claim, if the

19 shipments each weighed 10,000 pounds or less, by pay20 ment of 20 percent of the difference between the carrier’s

21 applicable and effective tariff rate and the rate originally

22 billed and paid. In the event that a dispute arises as to

23 the rate that was legally applicable to the shipment, such

24 dispute shall be resolved by the Panel.
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1 ‘‘(c) CLAIMS INVOLVING SHIPMENTS WEIGHING

2 MORE THAN 10,000 POUNDS.—A person from whom the

3 additional legally applicable and effective tariff rate or

4 charges are sought may elect to satisfy the claim, if the

5 shipments each weighed more than 10,000 pounds, by

6 payment of 15 percent of the difference between the car7 rier’s applicable and effective tariff rate and the rate origi8 nally billed and paid. In the event that a dispute arises

9 as to the rate that was legally applicable to the shipment,

10 such dispute shall be resolved by the Panel.

11 ‘‘(d) CLAIMS INVOLVING PUBLIC WAREHOUSE12 MEN.—Notwithstanding subsections (b) and (c), a person

13 from whom the additional legally applicable and effective

14 tariff rate or charges are sought may elect to satisfy the

15 claim by payment of 5 percent of the difference between

16 the carrier’s applicable and effective tariff rate and the

17 rate originally billed and paid if such person is a public

18 warehouseman. In the event that a dispute arises as to

19 the rate that was legally applicable to the shipment, such

20 dispute shall be resolved by the Panel.

21 ‘‘(e) EFFECTS OF ELECTION.—When a person from

22 whom additional legally applicable freight rates or charges

23 are sought does not elect to use the provisions of sub24 sections (b), (c) or (d), the person may pursue all rights

25 and remedies existing under this part or, for transpor-
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1 tation provided before the effective date of this section,

2 all rights and remedies that existed under this title on the

3 day before the effective date of this section.

4 ‘‘(f) STAY OF ADDITIONAL COMPENSATION.—When

5 a person proceeds under this section to challenge the rea6 sonableness of the legally applicable freight rate or

7 charges being claimed by a carrier or freight forwarder

8 in addition to those already billed and collected, the person

9 shall not have to pay any additional compensation to the

10 carrier or freight forwarder until the Panel has made a

11 determination as to the reasonableness of the challenged

12 rate as applied to the freight of the person against whom

13 the claim is made.

14 ‘‘(g) NOTIFICATION OF ELECTION.—

15 ‘‘(1) GENERAL RULE.—A person must notify

16 the carrier or freight forwarder as to its election to

17 proceed under subsection (b), (c), or (d). Except as

18 provided in paragraphs (2), (3), and (4), such elec19 tion may be made at any time.

20 ‘‘(2) DEMANDS FOR PAYMENT INITIALLY MADE

21 AFTER DECEMBER 3, 1993.—If the carrier or freight

22 forwarder or party representing such carrier or

23 freight forwarder initially demands the payment of

24 additional freight charges after December 3, 1993,

25 and notifies the person from whom additional freight
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1 charges are sought of the provisions of subsections

2 (a) through (f) at the time of the making of such

3 initial demand, the election must be made not later

4 than the later of—

5 ‘‘(A) the 60th day following the filing of an

6 answer to a suit for the collection of such addi7 tional legally applicable freight rate or charges,

8 or

9 ‘‘(B) March 5, 1994.

10 ‘‘(3) PENDING SUITS FOR COLLECTION MADE

11 BEFORE DECEMBER 4, 1993.—If the carrier or

12 freight forwarder or party representing such carrier

13 or freight forwarder has filed, before December 4,

14 1993, a suit for the collection of additional freight

15 charges and notifies the person from whom addi16 tional freight charges are sought of the provisions of

17 subsections (a) through (f), the election must be

18 made not later than the 90th day following the date

19 on which such notification is received.

20 ‘‘(4) DEMANDS FOR PAYMENT MADE BEFORE

21 DECEMBER 4, 1993.—If the carrier or freight for22 warder or party representing such carrier or freight

23 forwarder has demanded the payment of additional

24 freight charges, and has not filed a suit for the col25 lection of such additional freight charges, before De-
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1 cember 4, 1993, and notifies the person from whom

2 additional freight charges are sought of the provi3 sions of subsections (a) through (f), the election

4 must be made not later than the later of—

5 ‘‘(A) the 60th day following the filing of an

6 answer to a suit for the collection of such addi7 tional legally applicable freight rate or charges,

8 or

9 ‘‘(B) March 5, 1994.

10 ‘‘(h) CLAIMS INVOLVING SMALL-BUSINESS CON11 CERNS, CHARITABLE ORGANIZATIONS, AND RECYCLABLE

12 MATERIALS.—

13 ‘‘(1) IN GENERAL.—Notwithstanding sub14 sections (b), (c), and (d), a person from whom the

15 additional legally applicable and effective tariff rate

16 or charges are sought shall not be liable for the dif17 ference between the carrier’s applicable and effective

18 tariff rate and the rate originally billed and paid—

19 ‘‘(A) if such person qualifies as a small20 business concern under the Small Business Act

21 (15 U.S.C. 631 et seq.),

22 ‘‘(B) if such person is an organization

23 which is described in section 501(c)(3) of the

24 Internal Revenue Code of 1986 and exempt

25 from tax under section 501(a) of such Code, or
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1 ‘‘(C) if the cargo involved in the claim is

2 recyclable materials.

3 ‘‘(2) RECYCLABLE MATERIALS DEFINED.—In

4 this subsection, the term ‘recyclable materials’

5 means waste products for recycling or reuse in the

6 furtherance of recognized pollution control pro7 grams.

8 ‘‘§ 13710. Additional billing and collecting practices

9 ‘‘(a) MISCELLANEOUS PROVISIONS.—

10 ‘‘(1) INFORMATION RELATING TO BASIS OF

11 RATE.—A motor carrier of property (other than a

12 motor carrier providing transportation in noncontig13 uous domestic trade) shall provide to the shipper, on

14 request of the shipper, a written or electronic copy

15 of the rate, classification, rules, and practices, upon

16 which any rate applicable to its shipment or agreed

17 to between the shipper and carrier may have been

18 based.

19 ‘‘(2) REASONABLENESS OF RATES; COLLECTING

20 ADDITIONAL CHARGES.—When the applicability or

21 reasonableness of the rates and related provisions

22 billed by a motor carrier is challenged by the person

23 paying the freight charges, the Panel shall determine

24 whether such rates and provisions are reasonable or

25 applicable based on the record before it.
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1 ‘‘(3) BILLING DISPUTES.—

2 ‘‘(A) INITIATED BY MOTOR CARRIERS.—In

3 those cases where a motor carrier (other than

4 a motor carrier providing transportation of

5 household goods or in noncontiguous domestic

6 trade) seeks to collect charges in addition to

7 those billed and collected which are contested

8 by the payor, the carrier may request that the

9 Panel determine whether any additional charges

10 over those billed and collected must be paid. A

11 carrier must issue any bill for charges in addi12 tion to those originally billed within 180 days of

13 the receipt of the original bill in order to have

14 the right to collect such charges.

15 ‘‘(B) INITIATED BY SHIPPERS.—If a ship16 per seeks to contest the charges originally billed

17 or additional charges subsequently billed, the

18 shipper may request that the Panel determine

19 whether the charges billed must be paid. A

20 shipper must contest the original bill or subse21 quent bill within 180 days of receipt of the bill

22 in order to have the right to contest such

23 charges.

24 ‘‘(4) VOIDING OF CERTAIN TARIFFS.—Any tar25 iff on file with the Interstate Commerce Commission
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1 on August 26, 1994, and not required to be filed

2 after that date is null and void beginning on that

3 date. Any tariff on file with the Interstate Com4 merce Commission on the effective date of this sec5 tion and not required to be filed after that date is

6 null and void beginning on that date.

7 ‘‘(b) RESOLUTION OF DISPUTES OVER STATUS OF

8 COMMON CARRIER OR CONTRACT CARRIER.—If a motor

9 carrier (other than a motor carrier providing transpor10 tation of household goods) that was subject to jurisdiction

11 under subchapter II of chapter 105, as in effect on the

12 day before the effective date of this section, and that had

13 authority to provide transportation as both a motor com14 mon carrier and a motor contract carrier and a dispute

15 arises as to whether certain transportation that was pro16 vided prior to the effective date of this section was pro17 vided in its common carrier or contract carrier capacity

18 and the parties are not able to resolve the dispute consen19 sually, the Panel shall resolve the dispute.

20 ‘‘§ 13711. Alternative procedure for resolving under21 charge disputes

22 ‘‘(a) GENERAL RULE.—It shall be an unreasonable

23 practice for a motor carrier of property (other than a

24 household goods carrier) providing transportation subject

25 to jurisdiction under subchapter I of chapter 135 or, be-
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1 fore the effective date of this section, to have provided

2 transportation that was subject to jurisdiction under sub3 chapter II of chapter 105, as in effect on the day before

4 the effective date of this section, a freight forwarder (other

5 than a household goods freight forwarder), or a party rep6 resenting such a carrier or freight forwarder to attempt

7 to charge or to charge for a transportation service the dif8 ference between (1) the applicable rate that was lawfully

9 in effect pursuant to a tariff that was filed in accordance

10 with this chapter or, with respect to transportation pro11 vided before the effective date of this section, in accord12 ance with chapter 107, as in effect on the date the trans13 portation was provided, by the carrier or freight forwarder

14 applicable to such transportation service, and (2) the ne15 gotiated rate for such transportation service if the carrier

16 or freight forwarder is no longer transporting property be17 tween places described in section 13501(1) or is transport18 ing property between places described in section 13501(1)

19 for the purpose of avoiding application of this section.

20 ‘‘(b) JURISDICTION OF PANEL.—

21 ‘‘(1) DETERMINATION.—The Panel shall have

22 jurisdiction to make a determination of whether or

23 not attempting to charge or the charging of a rate

24 by a motor carrier or freight forwarder or party rep25 resenting a motor carrier or freight forwarder is an
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1 unreasonable practice under subsection (a). If the

2 Panel determines that attempting to charge or the

3 charging of the rate is an unreasonable practice

4 under subsection (a), the carrier, freight forwarder,

5 or party may not collect the difference described in

6 subsection (a) between the applicable rate and the

7 negotiated rate for the transportation service.

8 ‘‘(2) FACTORS TO CONSIDER.—In making a de9 termination under paragraph (1), the Panel shall

10 consider—

11 ‘‘(A) whether the person was offered a

12 transportation rate by the carrier or freight for13 warder or party other than that legally on file

14 with the Interstate Commerce Commission or

15 the Panel, as required, at the time of the move16 ment for the transportation service;

17 ‘‘(B) whether the person tendered freight

18 to the carrier or freight forwarder in reasonable

19 reliance upon the offered transportation rate;

20 ‘‘(C) whether the carrier or freight for21 warder did not properly or timely file with the

22 Interstate Commerce Commission or the Panel,

23 as required, a tariff providing for such trans24 portation rate or failed to enter into an agree25 ment for contract carriage;
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1 ‘‘(D) whether the transportation rate was

2 billed and collected by the carrier or freight for3 warder; and

4 ‘‘(E) whether the carrier or freight for5 warder or party demands additional payment of

6 a higher rate filed in a tariff.

7 ‘‘(c) STAY OF ADDITIONAL COMPENSATION.—When

8 a person proceeds under this section to challenge the rea9 sonableness of the practice of a motor carrier, freight for10 warder, or party described in subsection (a) to attempt

11 to charge or to charge the difference described in sub12 section (a) between the applicable rate and the negotiated

13 rate for the transportation service in addition to those

14 charges already billed and collected for the transportation

15 service, the person shall not have to pay any additional

16 compensation to the carrier, freight forwarder, or party

17 until the Panel has made a determination as to the reason18 ableness of the practice as applied to the freight of the

19 person against whom the claim is made.

20 ‘‘(d) TREATMENT.—Subsection (a) is an exception to

21 the requirements of section 13702 and, for transportation

22 provided before the effective date of this section, to the

23 requirements of sections 10761(a) and 10762, as in effect

24 on the day before such effective date, as such sections re-
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1 late to a filed tariff rate and other general tariff require2 ments.

3 ‘‘(e) NONAPPLICABILITY OF NEGOTIATED RATE DIS4 PUTE RESOLUTION PROCEDURE.—If a person elects to

5 seek enforcement of subsection (a) with respect to a rate

6 for a transportation or service, section 13709 shall not

7 apply to such rate.

8 ‘‘(f) DEFINITIONS.—In this section, the term ‘‘nego9 tiated rate’’ means a rate, charge, classification, or rule

10 agreed upon by a motor carrier or freight forwarder and

11 a shipper through negotiations pursuant to which no tariff

12 was lawfully and timely filed and for which there is written

13 evidence of such agreement.

14 ‘‘(g) APPLICABILITY TO PENDING CASES.—This sec15 tion shall apply to all cases and proceedings pending on

16 the effective date of this section.

17 ‘‘§ 13712. Government traffic

18 ‘‘A carrier providing transportation or service for the

19 United States Government may transport property or indi20 viduals for the United States Government without charge

21 or at a rate reduced from the applicable commercial rate.

22 Section 3709 of the Revised Statutes (41 U.S.C. 5) does

23 not apply when transportation for the United States Gov24 ernment can be obtained from a carrier lawfully operating

25 in the area where the transportation would be provided.
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1 ‘‘§ 13713. Food and grocery transportation

2 ‘‘(a) CERTAIN COMPENSATION PROHIBITED.—Not3 withstanding any other provision of law, it shall not be

4 unlawful for a seller of food and grocery products using

5 a uniform zone delivered pricing system to compensate a

6 customer who picks up purchased food and grocery prod7 ucts at the shipping point of the seller if such compensa8 tion is available to all customers of the seller on a non9 discriminatory basis and does not exceed the actual cost

10 to the seller of delivery to such customer.

11 ‘‘(b) SENSE OF CONGRESS.—It is the sense of the

12 Congress that any savings accruing to a customer by rea13 son of compensation permitted by subsection (a) of this

14 section should be passed on to the ultimate consumer.

15 ‘‘CHAPTER 139—REGISTRATION

‘‘Sec.

‘‘13901. Requirement for registration.

‘‘13902. Registration of motor carriers.

‘‘13903. Registration of freight forwarders.

‘‘13904. Registration of brokers.

‘‘13905. Effective periods of registration.

‘‘13906. Security of motor carriers, brokers, and freight forwarders.

‘‘13907. Household goods agents.

‘‘13908. Registration and other reforms.

16 ‘‘§ 13901. Requirement for registration

17 ‘‘A person may provide transportation or service sub18 ject to jurisdiction under subchapter I or III of chapter

19 135 or be a broker for transportation subject to jurisdic20 tion under subchapter I of that chapter, only if the person
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1 is registered under this chapter to provide the transpor2 tation or service.

3 ‘‘§ 13902. Registration of motor carriers

4 ‘‘(a) MOTOR CARRIER GENERALLY.—

5 ‘‘(1) IN GENERAL.—Except as provided in this

6 section, the Secretary shall register a person to pro7 vide transportation subject to jurisdiction under sub8 chapter I of chapter 135 of this title as a motor car9 rier if the Secretary finds that the person is willing

10 and able to comply with—

11 ‘‘(A) this part and the applicable regula12 tions of the Secretary and the Panel;

13 ‘‘(B) any safety regulations imposed by the

14 Secretary and the safety fitness requirements

15 established by the Secretary under section

16 31144; and

17 ‘‘(C) the minimum financial responsibility

18 requirements established by the Secretary pur19 suant to sections 13906 and 31138.

20 ‘‘(2) CONSIDERATION OF EVIDENCE; FIND21 INGS.—The Secretary shall consider and, to the ex22 tent applicable, make findings on, any evidence dem23 onstrating that the registrant is unable to comply

24 with the requirements of subparagraph (A), (B), or

25 (C) of paragraph (1).
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1 ‘‘(3) WITHHOLDING.—If the Secretary deter2 mines that any registrant under this section does

3 not meet the requirements of paragraph (1), the

4 Secretary shall withhold registration.

5 ‘‘(4) LIMITATION ON COMPLAINTS.—The Sec6 retary may hear a complaint from any person con7 cerning a registration under this subsection only on

8 the ground that the registrant fails or will fail to

9 comply with this part, the applicable regulations of

10 the Secretary and the Panel, the safety regulations

11 of the Secretary, or the safety fitness or minimum

12 financial responsibility requirements of paragraph

13 (1) of this subsection.

14 ‘‘(b) MOTOR CARRIERS OF PASSENGERS.—

15 ‘‘(1) REGISTRATION OF PRIVATE RECIPIENTS

16 OF GOVERNMENTAL ASSISTANCE.—The Secretary

17 shall register under subsection (a)(1) a private recip18 ient of governmental assistance to provide special or

19 charter transportation subject to jurisdiction under

20 subchapter I of chapter 135 as a motor carrier of

21 passengers if the Secretary finds that the recipient

22 meets the requirements of subsection (a)(1), unless

23 the Secretary finds, on the basis of evidence pre24 sented by any person objecting to the registration,
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1 that the transportation to be provided pursuant to

2 the registration is not in the public interest.

3 ‘‘(2) REGISTRATION OF PUBLIC RECIPIENTS OF

4 GOVERNMENTAL ASSISTANCE.—

5 ‘‘(A) CHARTER TRANSPORTATION.—The

6 Secretary shall register under subsection (a)(1)

7 a public recipient of governmental assistance to

8 provide special or charter transportation subject

9 to jurisdiction under subchapter I of chapter

10 135 as a motor carrier of passengers if the Sec11 retary finds that—

12 ‘‘(i) the recipient meets the require13 ments of subsection (a)(1); and

14 ‘‘(ii)(I) no motor carrier of passengers

15 (other than a motor carrier of passengers

16 which is a public recipient of governmental

17 assistance) is providing, or is willing to

18 provide, the transportation; or

19 ‘‘(II) the transportation is to be pro20 vided entirely in the area in which the pub21 lic recipient provides regularly scheduled

22 mass transportation services.

23 ‘‘(B) REGULAR-ROUTE TRANSPOR24 TATION.—The Secretary shall register under

25 subsection (a)(1) a public recipient of govern-
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1 mental assistance to provide regular-route

2 transportation subject to jurisdiction under sub3 chapter I of chapter 135 as a motor carrier of

4 passengers if the Secretary finds that the recip5 ient meets the requirements of subsection

6 (a)(1), unless the Secretary finds, on the basis

7 of evidence presented by any person objecting

8 to the registration, that the transportation to be

9 provided pursuant to the registration is not in

10 the public interest.

11 ‘‘(C) TREATMENT OF CERTAIN PUBLIC RE12 CIPIENTS.—Any public recipient of govern13 mental assistance which is providing or seeking

14 to provide transportation of passengers subject

15 to jurisdiction under subchapter I of chapter

16 135 shall, for purposes of this part, be treated

17 as a person which is providing or seeking to

18 provide transportation of passengers subject to

19 such jurisdiction.

20 ‘‘(3) INTRASTATE TRANSPORTATION.—A motor

21 carrier of passengers that is registered by the Sec22 retary under subsection (a) is authorized to provide

23 regular-route transportation entirely in one State as

24 a motor carrier of passengers if such intrastate

25 transportation is to be provided on a route over
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1 which the carrier provides interstate transportation

2 of passengers.

3 ‘‘(4) PREEMPTION REGARDING CERTAIN SERV4 ICE.—No State or political subdivision thereof and

5 no interstate agency or other political agency of 2 or

6 more States shall enact or enforce any law, rule, reg7 ulation, standard or other provision having the force

8 and effect of law relating to the provision of pickup

9 and delivery of express packages, newspapers, or

10 mail in a commercial zone if the shipment has had

11 or will have a prior or subsequent movement by bus

12 in intrastate commerce and, if a city within the com13 mercial zone, is served by a motor carrier of pas14 sengers providing regular-route transportation of

15 passengers subject to jurisdiction under subchapter

16 I of chapter 135.

17 ‘‘(5) TREATMENT.—Any intrastate transpor18 tation authorized by this subsection shall be treated

19 as transportation subject to jurisdiction under sub20 chapter I of chapter 135 until such time as the car21 rier takes such action as is necessary to establish

22 under the laws of such State rates, rules, and prac23 tices applicable to such transportation, but in no

24 case later than the 30th day following the date on

25 which the motor carrier of passengers first begins
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1 providing transportation entirely in one State under

2 this paragraph.

3 ‘‘(6) 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 ‘‘(7) 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 ‘‘(8) DEFINITIONS.—In this subsection, the fol12 lowing definitions apply:

13 ‘‘(A) PUBLIC RECIPIENT OF GOVERN14 MENTAL ASSISTANCE.—The term ‘public recipi15 ent of governmental assistance’ means—

16 ‘‘(i) any State,

17 ‘‘(ii) any municipality or other politi18 cal subdivision of a State,

19 ‘‘(iii) any public agency or instrumen20 tality of one or more States and munici21 palities and political subdivisions of a

22 State,

23 ‘‘(iv) any Indian tribe,

24 ‘‘(v) any corporation, board, or other

25 person owned or controlled by any entity
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1 described in clause (i), (ii), (iii), or (iv),

2 and

3 which before, on, or after the effective date of

4 this subsection received governmental assistance

5 for the purchase or operation of any bus.

6 ‘‘(B) PRIVATE RECIPIENT OF GOVERN7 MENT ASSISTANCE.—The term ‘private recipi8 ent of government assistance’ means any person

9 (other than a person described in subparagraph

10 (A)) who before, on, or after the effective date

11 of this paragraph received governmental finan12 cial assistance in the form of a subsidy for the

13 purchase, lease, or operation of any bus.

14 ‘‘(c) RESTRICTIONS ON MOTOR CARRIERS DOMI15 CILED IN OR OWNED OR CONTROLLED BY NATIONALS OF

16 A CONTIGUOUS FOREIGN COUNTRY.—

17 ‘‘(1) PREVENTION OF DISCRIMINATORY PRAC18 TICES.—If the President, or the delegate thereof, de19 termines that an act, policy, or practice of a foreign

20 country contiguous to the United States, or any po21 litical subdivision or any instrumentality of any such

22 country is unreasonable or discriminatory and bur23 dens or restricts United States transportation com24 panies providing, or seeking to provide, motor car-
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1 rier transportation to, from, or within such foreign

2 country, the President or such delegate may—

3 ‘‘(A) seek elimination of such practices

4 through consultations; or

5 ‘‘(B) notwithstanding any other provision

6 of law, suspend, modify, amend, condition, or

7 restrict operations, including geographical re8 striction of operations, in the United States by

9 motor carriers of property or passengers domi10 ciled in such foreign country or owned or con11 trolled by persons of such foreign country.

12 ‘‘(2) EQUALIZATION OF TREATMENT.—Any ac13 tion taken under paragraph (1)(A) to eliminate an

14 act, policy, or practice shall be so devised so as to

15 equal to the extent possible the burdens or restric16 tions imposed by such foreign country on United

17 States transportation companies.

18 ‘‘(3) REMOVAL OR MODIFICATION.—The Presi19 dent, or the delegate thereof, may remove or modify

20 in whole or in part any action taken under para21 graph (1)(A) if the President or such delegate deter22 mines that such removal or modification is consist23 ent with the obligations of the United States under

24 a trade agreement or with United States transpor25 tation policy.
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1 ‘‘(4) PROTECTION OF EXISTING OPERATIONS.—

2 Unless and until the President, or the delegate

3 thereof, makes a determination under paragraph (1)

4 or (3), nothing in this subsection shall affect—

5 ‘‘(A) operations of motor carriers of prop6 erty or passengers domiciled in any contiguous

7 foreign country or owned or controlled by per8 sons of any contiguous foreign country per9 mitted in the commercial zones along the Unit10 ed States-Mexico border as such zones were de11 fined on the day before the effective date of this

12 section; or

13 ‘‘(B) any existing restrictions on oper14 ations of motor carriers of property or pas15 sengers domiciled in any contiguous foreign

16 country or owned or controlled by persons of

17 any contiguous foreign country or any modifica18 tions thereof pursuant to section 6 of the Bus

19 Regulatory Reform Act of 1982.

20 ‘‘(5) PUBLICATION; COMMENT.—Unless the

21 President, or the delegate thereof, determines that

22 expeditious action is required, the President shall

23 publish in the Federal Register any determination

24 under paragraph (1) or (3), together with a descrip25 tion of the facts on which such a determination is
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1 based and any proposed action to be taken pursuant

2 to paragraph (1)(B) or (3), and provide an oppor3 tunity for public comment.

4 ‘‘(6) DELEGATION TO SECRETARY.—The Presi5 dent may delegate any or all authority under this

6 subsection to the Secretary, who shall consult with

7 other agencies as appropriate. In accordance with

8 the directions of the President, the Secretary may

9 issue regulations to enforce this subsection.

10 ‘‘(7) CIVIL ACTIONS.—Either the Secretary or

11 the Attorney General may bring a civil action in an

12 appropriate district court of the United States to en13 force this subsection or a regulation prescribed or

14 order issued under this subsection. The court may

15 award appropriate relief, including injunctive relief.

16 ‘‘(8) LIMITATION ON STATUTORY CONSTRUC17 TION.—This subsection shall not be construed as af18 fecting the requirement for all foreign motor carriers

19 operating in the United States to comply with all ap20 plicable laws and regulations pertaining to fitness,

21 safety of operations, financial responsibility, and

22 taxes imposed by section 4481 of the Internal Reve23 nue Code of 1986.

24 ‘‘(d) MOTOR CARRIER DEFINED.—In this section

25 and sections 13905 and 13906, the term ‘motor carrier’
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1 includes foreign motor carriers and foreign motor private

2 carriers.

3 ‘‘§ 13903. Registration of freight forwarders

4 ‘‘(a) IN GENERAL.—The Secretary shall register a

5 person to provide service subject to jurisdiction under sub6 chapter III of chapter 135 as a freight forwarder if the

7 Secretary finds that the person is willing and able to pro8 vide the service and to comply with this part and applica9 ble regulations of the Secretary and the Panel.

10 ‘‘(b) REGISTRATION AS CARRIER REQUIRED.—The

11 freight forwarder may provide transportation as the car12 rier itself only if the freight forwarder also has registered

13 to provide transportation as a carrier under this chapter.

14 ‘‘§ 13904. Registration of brokers

15 ‘‘(a) IN GENERAL.—The Secretary shall register,

16 subject to section 13906(b), a person to be a broker for

17 transportation of property subject to jurisdiction under

18 subchapter I of chapter 135, if the Secretary finds that

19 the person is willing and able to be a broker for transpor20 tation and to comply with this part and applicable regula21 tions of the Secretary .

22 ‘‘(b) LIMITATION.—The broker may provide trans23 portation itself only if the broker also has registered to

24 provide transportation as a carrier under this chapter.
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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) PERSON HOLDING ICC AUTHORITY.—Any per12 son having authority to provide transportation or service

13 as a motor carrier, freight forwarder, or broker under this

14 title, as in effect on the day before the effective date of

15 this section, shall be deemed, for purposes of this part,

16 to be registered to provide such transportation or service

17 under this part.

18 ‘‘(b) IN GENERAL.—Each registration issued under

19 section 13902, 13903, or 13904 shall be effective from

20 the date specified by the Secretary and shall remain in

21 effect, except as otherwise provided in this part.

22 ‘‘(c) SUSPENSION, AMENDMENTS, AND REVOCA23 TIONS.—On application of the registrant, the Secretary

24 may amend or revoke a registration. On complaint or on

25 the Secretary’s own initiative and after notice and an op-
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1 portunity for a proceeding, the Secretary may suspend,

2 amend, or revoke any part of the registration of a motor

3 carrier, broker, or freight forwarder for willful failure to

4 comply with this part, an applicable regulation or order

5 of the Secretary or of the Panel, or a condition of its reg6 istration.

7 ‘‘(d) PROCEDURE.—Except on application of the reg8 istrant, the Secretary may revoke a registration of a motor

9 carrier, freight forwarder, or broker, only after—

10 ‘‘(1) the Secretary has issued an order to the

11 registrant under section 14701 requiring compliance

12 with this part, a regulation of the Secretary, or a

13 condition of the registration; and

14 ‘‘(2) the registrant willfully does not comply

15 with the order for a period of 30 days.

16 ‘‘(e) EXPEDITED PROCEDURE.—

17 ‘‘(1) PROTECTION OF SAFETY.—Without regard

18 to subchapter II of chapter 5 of title 5, the Sec19 retary may suspend the registration of a motor car20 rier, a freight forwarder, or a broker for failure to

21 comply with safety requirements of the Secretary or

22 the safety fitness requirements pursuant to section

23 13904(c), 13906, or 31144, of this title, or an order

24 or regulation of the Secretary prescribed under those

25 sections.
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1 ‘‘(2) IMMINENT HAZARD TO PUBLIC HEALTH.—

2 Without regard to subchapter II of chapter 5 of title

3 5, the Secretary may suspend a registration of a

4 motor carrier of passengers if the Secretary finds

5 that such carrier has been conducting unsafe oper6 ations which are an imminent hazard to public

7 health or property.

8 ‘‘(3) NOTICE; PERIOD OF SUSPENSION.—The

9 Secretary may suspend under this subsection the

10 registration only after giving notice of the suspen11 sion to the registrant. The suspension remains in ef12 fect until the registrant complies with those applica13 ble sections or, in the case of a suspension under

14 paragraph (2), until the Secretary revokes such sus15 pension.

16 ‘‘§ 13906. Security of motor carriers, brokers, and

17 freight forwarders

18 ‘‘(a) MOTOR CARRIER REQUIREMENTS.—

19 ‘‘(1) LIABILITY INSURANCE REQUIREMENT.—

20 The Secretary may register a motor carrier under

21 section 13902 only if the registrant files with the

22 Secretary a bond, insurance policy, or other type of

23 security approved by the Secretary, in an amount

24 not less than such amount as the Secretary pre25 scribes pursuant to, or as is required by, sections
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1 31138 and 31139, and the laws of the State or

2 States in which the registrant is operating, to the

3 extent applicable. The security must be sufficient to

4 pay, not more than the amount of the security, for

5 each final judgment against the registrant for bodily

6 injury to, or death of, an individual resulting from

7 the negligent operation, maintenance, or use of

8 motor vehicles, or for loss or damage to property

9 (except property referred to in paragraph (3) of this

10 subsection), or both. A registration remains in effect

11 only as long as the registrant continues to satisfy

12 the security requirements of this paragraph.

13 ‘‘(2) AGENCY REQUIREMENT.—A motor carrier

14 shall comply with the requirements of sections

15 13303 and 13304. To protect the public, the Sec16 retary may require any such motor carrier to file the

17 type of security that a motor carrier is required to

18 file under paragraph (1) of this subsection. This

19 paragraph only applies to a foreign motor private

20 carrier and foreign motor carrier operating in the

21 United States to the extent that such carrier is pro22 viding transportation between places in a foreign

23 country or between a place in one foreign country

24 and a place in another foreign country.
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1 ‘‘(3) TRANSPORTATION INSURANCE.—The Sec2 retary may require a registered motor carrier to file

3 with the Secretary a type of security sufficient to

4 pay a shipper or consignee for damage to property

5 of the shipper or consignee placed in the possession

6 of the motor carrier as the result of transportation

7 provided under this part. A carrier required by law

8 to pay a shipper or consignee for loss, damage, or

9 default for which a connecting motor carrier is re10 sponsible is subrogated, to the extent of the amount

11 paid, to the rights of the shipper or consignee under

12 any such security.

13 ‘‘(b) BROKER REQUIREMENTS.—The Secretary may

14 register a person as a broker under section 13904 only

15 if the person files with the Secretary a bond, insurance

16 policy, or other type of security approved by the Secretary

17 to ensure that the transportation for which a broker ar18 ranges is provided. The registration remains in effect only

19 as long as the broker continues to satisfy the security re20 quirements of this subsection.

21 ‘‘(c) FREIGHT FORWARDER REQUIREMENTS.—

22 ‘‘(1) LIABILITY INSURANCE.—The Secretary

23 may register a person as a freight forwarder under

24 section 13903 of this title only if the person files

25 with the Secretary a bond, insurance policy, or other
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1 type of security approved by the Secretary. The se2 curity must be sufficient to pay, not more than the

3 amount of the security, for each final judgment

4 against the freight forwarder for bodily injury to, or

5 death of, an individual, or loss of, or damage to,

6 property (other than property referred to in para7 graph (2) of this subsection), resulting from the neg8 ligent operation, maintenance, or use of motor vehi9 cles by or under the direction and control of the

10 freight forwarder when providing transfer, collection,

11 or delivery service under this part.

12 ‘‘(2) FREIGHT FORWARDER INSURANCE.—The

13 Secretary may require a registered freight forwarder

14 to file with the Secretary a bond, insurance policy,

15 or other type of security approved by the Secretary

16 sufficient to pay, not more than the amount of the

17 security, for loss of, or damage to, property for

18 which the freight forwarder provides service.

19 ‘‘(3) EFFECTIVE PERIOD.—The freight for20 warder’s registration remains in effect only as long

21 as the freight forwarder continues to satisfy the se22 curity requirements of this subsection.

23 ‘‘(d) TYPE OF INSURANCE.—The Secretary may de24 termine the type and amount of security filed under this

25 section. A motor carrier may submit proof of qualifications
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1 as a self-insurer to satisfy the security requirements of

2 this section. The Secretary shall adopt regulations govern3 ing the standards for approval as a self-insurer. Motor

4 carriers which have been granted authority to self-insure

5 as of the effective date of this section shall retain that

6 authority unless, for good cause shown and after notice

7 and an opportunity for a hearing, the Secretary finds that

8 the authority must be revoked.

9 ‘‘(e) NOTICE OF CANCELLATION OF INSURANCE.—

10 The Secretary shall issue regulations requiring the sub11 mission to the Secretary of notices of insurance cancella12 tion sufficiently in advance of actual cancellation so as to

13 enable the Secretary to promptly revoke the registration

14 of any carrier or broker after the effective date of the can15 cellation.

16 ‘‘(f) FORM OF ENDORSEMENT.—The Secretary shall

17 also prescribe the appropriate form of endorsement to be

18 appended to policies of insurance and surety bonds which

19 will subject the insurance policy or surety bond to the full

20 security limits of the coverage required under this section.

21 ‘‘§ 13907. Household goods agents

22 ‘‘(a) CARRIERS RESPONSIBLE FOR AGENTS.—Each

23 motor carrier providing transportation of household goods

24 shall be responsible for all acts or omissions of any of its

25 agents which relate to the performance of household goods
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1 transportation services (including accessorial or terminal

2 services) and which are within the actual or apparent au3 thority of the agent from the carrier or which are ratified

4 by the carrier.

5 ‘‘(b) STANDARD FOR SELECTING AGENTS.—Each

6 motor carrier providing transportation of household goods

7 shall use due diligence and reasonable care in selecting

8 and maintaining agents who are sufficiently knowledge9 able, fit, willing, and able to provide adequate household

10 goods transportation services (including accessorial and

11 terminal services) and to fulfill the obligations imposed

12 upon them by this part and by such carrier.

13 ‘‘(c) ENFORCEMENT.—

14 ‘‘(1) COMPLAINT.—Whenever the Secretary has

15 reason to believe from a complaint or investigation

16 that an agent providing household goods transpor17 tation services (including accessorial and terminal

18 services) under the authority of a motor carrier pro19 viding transportation of household goods has vio20 lated section 14901(e) or 14912 or is consistently

21 not fit, willing, and able to provide adequate house22 hold goods transportation services (including acces23 sorial and terminal services), the Secretary may

24 issue to such agent a complaint stating the charges

25 and containing notice of the time and place of a
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1 hearing which shall be held no later than 60 days

2 after service of the complaint to such agent.

3 ‘‘(2) RIGHT TO DEFEND.—The agent shall have

4 the right to appear at such hearing and rebut the

5 charges contained in the complaint.

6 ‘‘(3) ORDER.—If the agent does not appear at

7 the hearing or if the Secretary finds that the agent

8 has violated section 14901(e) or 14912 or is consist9 ently not fit, willing, and able to provide adequate

10 household goods transportation services (including

11 accessorial and terminal services), the Secretary may

12 issue an order to compel compliance with the re13 quirement that the agent be fit, willing, and able.

14 Thereafter, the Secretary may issue an order to

15 limit, condition, or prohibit such agent from any in16 volvement in the transportation or provision of serv17 ices incidental to the transportation of household

18 goods if, after notice and an opportunity for a hear19 ing, the Secretary finds that such agent, within a

20 reasonable time after the date of issuance of a com21 pliance order under this section, but in no event less

22 than 30 days after such date of issuance, has will23 fully failed to comply with such order.

24 ‘‘(4) HEARING.—Upon filing of a petition with

25 the Secretary by an agent who is the subject of an
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1 order issued pursuant to the second sentence of

2 paragraph (3) of this subsection and after notice, a

3 hearing shall be held with an opportunity to be

4 heard. At such hearing, a determination shall be

5 made whether the order issued pursuant to para6 graph (3) of this subsection should be rescinded.

7 ‘‘(5) COURT REVIEW.—Any agent adversely af8 fected or aggrieved by an order of the Secretary is9 sued under this subsection may seek relief in the ap10 propriate United States court of appeals as provided

11 by and in the manner prescribed in chapter 158 of

12 title 28, United States Code.

13 ‘‘(d) LIMITATION ON APPLICABILITY OF ANTITRUST

14 LAWS.—

15 ‘‘(1) IN GENERAL.—The antitrust laws, as de16 fined in the first section of the Clayton Act (15

17 U.S.C. 12), do not apply to discussions or agree18 ments between a motor carrier providing transpor19 tation of household goods and its agents (whether or

20 not an agent is also a carrier) related solely to—

21 ‘‘(A) rates for the transportation of house22 hold goods under the authority of the principal

23 carrier;

24 ‘‘(B) accessorial, terminal, storage, or

25 other charges for services incidental to the
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1 transportation of household goods transported

2 under the authority of the principal carrier;

3 ‘‘(C) allowances relating to transportation

4 of household goods under the authority of the

5 principal carrier; and

6 ‘‘(D) ownership of a motor carrier provid7 ing transportation of household goods by an

8 agent or membership on the board of directors

9 of any such motor carrier by an agent.

10 ‘‘(2) PANEL REVIEW.—The Panel, upon its own

11 initiative or request, shall review any activities un12 dertaken under paragraph (1) and shall modify or

13 terminate the activity if necessary to protect the

14 public interest.

15 ‘‘(e) DEFINITIONS.—In this section, the following

16 definitions apply:

17 ‘‘(1) HOUSEHOLD GOODS.—The term ‘house18 hold goods’ has the meaning such term had under

19 section 10102(11) of this title, as in effect on the

20 day before the effective date of this section.

21 ‘‘(2) TRANSPORTATION.—The term ‘transpor22 tation’ means transportation that would be subject

23 to the jurisdiction of the Interstate Commerce Com24 mission under subchapter II of chapter 105 of this
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1 title, as in effect on the day before such effective

2 date, if such subchapter were still in effect.

3 ‘‘§ 13908. Registration and other reforms

4 ‘‘(a) REGULATIONS REPLACING CERTAIN PRO5 GRAMS.—The Secretary, in cooperation with the States,

6 and after notice and opportunity for public comment, shall

7 issue regulations to replace the current Department of

8 Transportation identification number system, the single

9 State registration system under section 14504, the reg10 istration system contained in this chapter, and the finan11 cial responsibility information system under section 13906

12 with a single, on-line, Federal system. The new system

13 shall serve as a clearinghouse and depository of informa14 tion on and identification of all foreign and domestic

15 motor carriers, brokers, and freight forwarders, and others

16 required to register with the Department as well as infor17 mation on safety fitness and compliance with required lev18 els of financial responsibility. In issuing the regulations,

19 the Secretary shall consider whether or not to integrate

20 the requirements of section 13304 into the new system

21 and may integrate such requirements into the new system.

22 ‘‘(b) FACTORS TO BE CONSIDERED.—In conducting

23 the rulemaking under subsection (a), the Secretary shall,

24 at a minimum, consider the following factors:
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1 ‘‘(1) Funding for State enforcement of motor

2 carrier safety regulations.

3 ‘‘(2) Whether the existing single State registra4 tion system is duplicative and burdensome.

5 ‘‘(3) The justification and need for collecting

6 the statutory fee for such system under section

7 14504(c)(2)(B)(iv).

8 ‘‘(4) The public safety.

9 ‘‘(5) The efficient delivery of transportation

10 services.

11 ‘‘(6) How, and under what conditions, to extend

12 the registration system to motor private carriers and

13 to carriers exempt under sections 13502, 13503, and

14 13506.

15 ‘‘(c) FEE SYSTEM.—The Secretary may establish,

16 under section 9701 of title 31, a fee system for registra17 tion and filing evidence of financial responsibility under

18 the new system under subsection (a). Fees collected under

19 the fee system shall cover the costs of operating and up20 grading the registration system, including all personnel

21 costs associated with the system. Fees collected under this

22 subsection may be credited to the Department of Trans23 portation appropriations account for purposes for which

24 such fees are collected, and shall be available for expendi25 ture until expended.
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1 ‘‘(d) STATE REGISTRATION PROGRAMS.—If the Sec2 retary determines that no State should require insurance

3 filings or collect fees for such filings (including filings and

4 fees authorized under section 14504), the Secretary may

5 prevent any State or political subdivision thereof, or any

6 political authority of 2 or more States, from imposing any

7 insurance filing requirements or fees that are for the same

8 purposes as filings or fees the Secretary requires under

9 the new system under subsection (a).

10 ‘‘(e) DEADLINE FOR CONCLUSION; MODIFICA11 TIONS.—Not later than 24 months after the effective date

12 of this section, the Secretary—

13 ‘‘(1) shall conclude the rulemaking under this

14 section;

15 ‘‘(2) may implement such changes under this

16 section as the Secretary considers appropriate and in

17 the public interest; and

18 ‘‘(3) shall transmit to Congress a report on any

19 findings of the rulemaking and the changes being

20 implemented under this section, together with such

21 recommendations for legislative language necessary

22 to conform this part to such changes.

23 ‘‘CHAPTER 141—OPERATIONS OF

24 CARRIERS

‘‘SUBCHAPTER I—GENERAL REQUIREMENTS

‘‘Sec.
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‘‘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.

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.
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1 ‘‘(2) REMEDY FOR BREACH OF CONTRACT.—

2 The exclusive remedy for any alleged breach of a

3 contract entered into under this subsection shall be

4 an action in an appropriate State court or United

5 States district court, unless the parties otherwise

6 agree.

7 ‘‘§ 14102. Leased motor vehicles

8 ‘‘(a) GENERAL AUTHORITY OF SECRETARY.—The

9 Secretary may require a motor carrier providing transpor10 tation subject to jurisdiction under subchapter I of chapter

11 135 that uses motor vehicles not owned by it to transport

12 property under an arrangement with another party to—

13 ‘‘(1) make the arrangement in writing signed

14 by the parties specifying its duration and the com15 pensation to be paid by the motor carrier;

16 ‘‘(2) carry a copy of the arrangement in each

17 motor vehicle to which it applies during the period

18 the arrangement is in effect;

19 ‘‘(3) inspect the motor vehicles and obtain li20 ability and cargo insurance on them; and

21 ‘‘(4) have control of and be responsible for op22 erating those motor vehicles in compliance with re23 quirements prescribed by the Secretary on safety of

24 operations and equipment, and with other applicable
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1 law as if the motor vehicles were owned by the

2 motor carrier.

3 ‘‘(b) RESPONSIBLE PARTY FOR LOADING AND UN4 LOADING.—The Secretary shall require, by regulation,

5 that any arrangement, between a motor carrier of property

6 providing transportation subject to jurisdiction under sub7 chapter I of chapter 135 and any other person, under

8 which such other person is to provide any portion of such

9 transportation by a motor vehicle not owned by the carrier

10 shall specify, in writing, who is responsible for loading and

11 unloading the property onto and from the motor vehicle.

12 ‘‘§ 14103. Loading and unloading motor vehicles

13 ‘‘(a) SHIPPER RESPONSIBLE FOR ASSISTING.—

14 Whenever a shipper or receiver of property requires that

15 any person who owns or operates a motor vehicle trans16 porting property in interstate commerce (whether or not

17 such transportation is subject to jurisdiction under sub18 chapter I of chapter 135) be assisted in the loading or

19 unloading of such vehicle, the shipper or receiver shall be

20 responsible for providing such assistance or shall com21 pensate the owner or operator for all costs associated with

22 securing and compensating the person or persons provid23 ing such assistance.

24 ‘‘(b) COERCION PROHIBITED.—It shall be unlawful

25 to coerce or attempt to coerce any person providing trans-
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1 portation of property by motor vehicle for compensation

2 in interstate commerce (whether or not such transpor3 tation is subject to jurisdiction under subchapter I of

4 chapter 135) to load or unload any part of such property

5 onto or from such vehicle or to employ or pay one or more

6 persons to load or unload any part of such property onto

7 or from such vehicle; except that this subsection shall not

8 be construed as making unlawful any activity which is not

9 unlawful under the National Labor Relations Act or the

10 Act of March 23, 1932 (47 Stat. 70; 29 U.S.C. 101 et

11 seq.), commonly known as the Norris-LaGuardia Act.

12 ‘‘§ 14104. Household goods carrier operations

13 ‘‘(a) GENERAL REGULATORY AUTHORITY.—

14 ‘‘(1) PAPERWORK MINIMIZATION.—The Sec15 retary may issue regulations, including regulations

16 protecting individual shippers, in order to carry out

17 this part with respect to the transportation of house18 hold goods by motor carriers subject to jurisdiction

19 under subchapter I of chapter 135. The regulations

20 and paperwork required of motor carriers providing

21 transportation of household goods shall be mini22 mized to the maximum extent feasible consistent

23 with the protection of individual shippers.

24 ‘‘(2) PERFORMANCE STANDARDS.—
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1 ‘‘(A) IN GENERAL.—Regulations of the

2 Secretary protecting individual shippers shall

3 include, where appropriate, reasonable perform4 ance standards for the transportation of house5 hold goods subject to jurisdiction under sub6 chapter I of chapter 135.

7 ‘‘(B) FACTORS TO CONSIDER.—In estab8 lishing performance standards under this para9 graph, the Secretary shall take into account at

10 least the following—

11 ‘‘(i) the level of performance that can

12 be achieved by a well-managed motor car13 rier transporting household goods;

14 ‘‘(ii) the degree of harm to individual

15 shippers which could result from a viola16 tion of the regulation;

17 ‘‘(iii) the need to set the level of per18 formance at a level sufficient to deter

19 abuses which result in harm to consumers

20 and violations of regulations;

21 ‘‘(iv) service requirements of the car22 riers;

23 ‘‘(v) the cost of compliance in relation

24 to the consumer benefits to be achieved

25 from such compliance; and
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1 ‘‘(vi) the need to set the level of per2 formance at a level designed to encourage

3 carriers to offer service responsive to ship4 per needs.

5 ‘‘(3) LIMITATIONS ON STATUTORY CONSTRUC6 TION.—Nothing in this section shall be construed to

7 limit the Secretary’s authority to require reports

8 from motor carriers providing transportation of

9 household goods or to require such carriers to pro10 vide specified information to consumers concerning

11 their past performance.

12 ‘‘(b) ESTIMATES.—

13 ‘‘(1) AUTHORITY TO PROVIDE WITHOUT COM14 PENSATION.—Every motor carrier providing trans15 portation of household goods subject to jurisdiction

16 under subchapter I of chapter 135, upon request of

17 a prospective shipper, may provide the shipper with

18 an estimate of charges for transportation of house19 hold goods and for the proposed services. The Sec20 retary shall not prohibit any such carrier from

21 charging a prospective shipper for providing a writ22 ten, binding estimate for the transportation and pro23 posed services.

24 ‘‘(2) APPLICABILITY OF ANTITRUST LAWS.—

25 Any charge for an estimate of charges provided by
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1 a motor carrier to a shipper for transportation of

2 household goods subject to jurisdiction under sub3 chapter I of chapter 135 shall be subject to the anti4 trust laws, as defined in the first section of the Clay5 ton Act (15 U.S.C. 12).

6 ‘‘(c) FLEXIBILITY IN WEIGHING SHIPMENTS.—The

7 Secretary shall issue regulations that provide motor car8 riers providing transportation of household goods subject

9 to jurisdiction under subchapter I of chapter 135 with the

10 maximum possible flexibility in weighing shipments, con11 sistent with assurance to the shipper of accurate weighing

12 practices. The Secretary shall not prohibit such carriers

13 from backweighing shipments or from basing their charges

14 on the reweigh weights if the shipper observes both the

15 tare and gross weighings (or, prior to such weighings,

16 waives in writing the opportunity to observe such

17 weighings) and such weighings are performed on the same

18 scale.

19 ‘‘SUBCHAPTER II—REPORTS AND RECORDS

20 ‘‘§ 14121. Definitions

21 ‘‘In this subchapter, the following definitions apply:

22 ‘‘(1) CARRIER AND BROKER.—The terms ‘car23 rier’ and ‘broker’ include a receiver or trustee of a

24 carrier and broker, respectively.
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1 ‘‘(2) ASSOCIATION.—The term ‘association’

2 means an organization maintained by or in the in3 terest of a group of carriers or brokers providing

4 transportation or service subject to jurisdiction

5 under chapter 135 that performs a service, or en6 gages in activities, related to transportation under

7 this part.

8 ‘‘§ 14122. Records: form; inspection; preservation

9 ‘‘(a) FORM OF RECORDS.—The Secretary or the

10 Panel, as applicable, may prescribe the form of records

11 required to be prepared or compiled under this subchapter

12 by carriers and brokers, including records related to move13 ment of traffic and receipts and expenditures of money.

14 ‘‘(b) RIGHT OF INSPECTION.—The Secretary or

15 Panel, or an employee designated by the Secretary or

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

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

18 and equipment of a carrier or broker; and

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

20 ‘‘(A) a carrier, broker, or association; and

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

22 under common control with a carrier if the Sec23 retary or Panel, as applicable, considers inspec24 tion relevant to that person’s relation to, or

25 transaction with, that carrier.
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1 ‘‘(c) PERIOD FOR PRESERVATION OF RECORDS.—

2 The Secretary or Panel, as applicable, may prescribe the

3 time period during which operating, accounting, and fi4 nancial records must be preserved by carriers and brokers.

5 ‘‘§ 14123. Financial reporting

6 ‘‘(a) IN GENERAL.—The Secretary shall require

7 Class I motor carriers, and may require Class II motor

8 carriers, to file with the Secretary annual financial and

9 safety reports, the form and substance of which shall be

10 prescribed by the Secretary; except that, at a minimum,

11 such reports shall include balance sheets and income state12 ments.

13 ‘‘(b) MATTERS TO BE COVERED.—In determining

14 the matters to be covered by any reports to be filed under

15 subsection (a), the Secretary shall consider—

16 ‘‘(1) safety needs;

17 ‘‘(2) the need to preserve confidential business

18 information and trade secrets and prevent competi19 tive harm;

20 ‘‘(3) private sector, academic, and public use of

21 information in the reports; and

22 ‘‘(4) the public interest.

23 ‘‘(c) EXEMPTION FROM PUBLIC RELEASE.—

24 ‘‘(1) IN GENERAL.—The Secretary shall allow,

25 upon request, a filer of a report under subsection (a)
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1 that is not a publicly held corporation or that is not

2 subject to financial reporting requirements of the

3 Securities and Exchange Commission, an exemption

4 from the public release of such report.

5 ‘‘(2) PROCEDURE.—After a request under para6 graph (1) and notice and opportunity for comment

7 but no event later than 90 days after the date of

8 such request, the Secretary shall approve such re9 quest if the Secretary finds that the exemption re10 quested is necessary to avoid competitive harm and

11 to avoid the disclosure of information that qualifies

12 as a trade secret or privileged or confidential infor13 mation under section 552(b)(4) of title 5.

14 ‘‘(3) USE OF DATA FOR INTERNAL DOT PUR15 POSES.—If an exemption is granted under this sub16 section, nothing shall prevent the Secretary from

17 using data from reports filed under this subsection

18 for internal purposes of the Department of Trans19 portation or including such data in aggregate indus20 try statistics released for publication if such inclu21 sion would not render the filer’s data readily identi22 fiable.

23 ‘‘(4) PERIOD OF EXEMPTIONS.—Exemptions

24 granted under this subsection shall be for 3-year pe25 riods.
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1 ‘‘(5) PENDING REQUESTS.—The Secretary shall

2 not release publicly the report of a carrier making

3 a request under paragraph (1) while such request is

4 pending.

5 ‘‘(d) STREAMLINING AND SIMPLIFICATION.—The

6 Secretary shall streamline and simplify, to the maximum

7 extent practicable, any reporting requirements the Sec8 retary imposes under this section.

9 ‘‘CHAPTER 143—FINANCE

‘‘Sec.

‘‘14301. Security interests in certain motor vehicles.

‘‘14302. Pooling and division of transportation or earnings.

‘‘14303. Consolidation, merger, and acquisition of control of motor carriers of

passengers.

10 ‘‘§ 14301. Security interests in certain motor vehicles

11 ‘‘(a) DEFINITIONS.—In this section, the following

12 definitions apply:

13 ‘‘(1) MOTOR VEHICLE.—The term ‘motor vehi14 cle’ means a truck of rated capacity (gross vehicle

15 weight) of at least 10,000 pounds, a highway tractor

16 of rated capacity (gross combination weight) of at

17 least 10,000 pounds, a property-carrying trailer or

18 semitrailer with at least one load-carrying axle of at

19 least 10,000 pounds, or a motor bus with a seating

20 capacity of at least 10 individuals.

21 ‘‘(2) LIEN CREDITOR.—The term ‘lien creditor’

22 means a creditor having a lien on a motor vehicle

23 and includes an assignee for benefit of creditors
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1 from the date of assignment, a trustee in a case

2 under title 11 from the date of filing of the petition

3 in that case, and a receiver in equity from the date

4 of appointment of the receiver.

5 ‘‘(3) SECURITY INTEREST.—The term ‘security

6 interest’ means an interest (including an interest es7 tablished by a conditional sales contract, mortgage,

8 equipment trust, or other lien or title retention con9 tract, or lease) in a motor vehicle when the interest

10 secures payment or performance of an obligation.

11 ‘‘(4) PERFECTION.—The term ‘perfection’, as

12 related to a security interest, means taking action

13 (including public filing, recording, notation on a cer14 tificate of title, and possession of collateral by the

15 secured party), or the existence of facts, required

16 under law to make a security interest enforceable

17 against general creditors and subsequent lien credi18 tors of a debtor, but does not include compliance

19 with requirements related only to the establishment

20 of a valid security interest between the debtor and

21 the secured party.

22 ‘‘(b) REQUIREMENTS FOR PERFECTION OF SECURITY

23 INTEREST.—A security interest in a motor vehicle owned

24 by, or in the possession and use of, a carrier registered

25 under section 13902 of this title and owing payment or
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1 performance of an obligation secured by that security in2 terest is perfected in all jurisdictions against all general,

3 and subsequent lien, creditors of, and all persons taking

4 a motor vehicle by sale (or taking or retaining a security

5 interest in a motor vehicle) from, that carrier when—

6 ‘‘(1) a certificate of title is issued for a motor

7 vehicle under a law of a jurisdiction that requires or

8 permits indication, on a certificate or title, of a secu9 rity interest in the motor vehicle if the security in10 terest is indicated on the certificate;

11 ‘‘(2) a certificate of title has not been issued

12 and the law of the State where the principal place

13 of business of that carrier is located requires or per14 mits public filing or recording of, or in relation to,

15 that security interest if there has been such a public

16 filing or recording; and

17 ‘‘(3) a certificate of title has not been issued

18 and the security interest cannot be perfected under

19 paragraph (2) of this subsection, if the security in20 terest has been perfected under the law (including

21 the conflict of laws rules) of the State where the

22 principal place of business of that carrier is located.
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1 ‘‘§ 14302. Pooling and division of transportation or

2 earnings

3 ‘‘(a) APPROVAL REQUIRED.—A carrier providing

4 transportation subject to jurisdiction under subchapter I

5 of chapter 135 may not agree or combine with another

6 such carrier to pool or divide traffic or services or any

7 part of their earnings without the approval of the Panel

8 under this section.

9 ‘‘(b) STANDARDS FOR APPROVAL.—The Panel may

10 approve and authorize an agreement or combination be11 tween or among motor carriers of passengers, or between

12 a motor carrier of passengers and a rail carrier of pas13 sengers if the carriers involved assent to the pooling or

14 division and the Panel finds that a pooling or division of

15 traffic, services, or earnings—

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

17 the public or of economy of operation; and

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

19 ‘‘(c) PROCEDURE.—

20 ‘‘(1) APPLICATION.—Any motor carrier of prop21 erty may apply to the Panel for approval of an

22 agreement or combination with another such carrier

23 to pool or divide traffic or any services or any part

24 of their earnings by filing such agreement or com25 bination with the Panel not less than 50 days before

26 its effective date.
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1 ‘‘(2) DETERMINATION OF IMPORTANCE AND RE2 STRAINT ON COMPETITION.—Prior to the effective

3 date of the agreement or combination, the Panel

4 shall determine whether the agreement or combina5 tion is of major transportation importance and

6 whether there is substantial likelihood that the

7 agreement or combination will unduly restrain com8 petition. If the Panel determines that neither of

9 these 2 factors exists, it shall, prior to such effective

10 date and without a hearing, approve and authorize

11 the agreement or combination, under such rules and

12 regulations as the Panel may issue, and for such

13 consideration between such carriers and upon such

14 terms and conditions as shall be found by the Panel

15 to be just and reasonable.

16 ‘‘(3) HEARING.—If the Panel determines either

17 that the agreement or combination is of major trans18 portation importance or that there is substantial

19 likelihood that the agreement or combination will

20 unduly restrain competition, the Panel shall hold a

21 hearing concerning whether the agreement or com22 bination will be in the interest of better service to

23 the public or of economy in operation and whether

24 it will unduly restrain competition and shall suspend

25 operation of such agreement or combination pending
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1 such hearing and final decision thereon. After such

2 hearing, the Panel shall indicate to what extent it

3 finds that the agreement or combination will be in

4 the interest of better service to the public or of econ5 omy in operation and will not unduly restrain com6 petition and if assented to by all the carriers in7 volved, shall to that extent, approve and authorize

8 the agreement or combination, under such rules and

9 regulations as the Panel may issue, and for such

10 consideration between such carriers and upon such

11 terms and conditions as shall be found by the Panel

12 to be just and reasonable.

13 ‘‘(4) SPECIAL RULES FOR HOUSEHOLD GOODS

14 CARRIERS.—In the case of an application for Panel

15 approval of an agreement or combination between a

16 motor carrier providing transportation of household

17 goods and its agents to pool or divide traffic or serv18 ices or any part of their earnings, such agreement

19 or combination shall be presumed to be in the inter20 est of better service to the public and of economy in

21 operation and not to restrain competition unduly if

22 the practices proposed to be carried out under such

23 agreement or combination are the same as or similar

24 to practices carried out under agreements and com25 binations between motor carriers providing transpor-
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1 tation of household goods to pool or divide traffic or

2 service of any part of their earnings approved by the

3 Interstate Commerce Commission before the effec4 tive date of this section.

5 ‘‘(5) STREAMLINING AND SIMPLIFYING.—The

6 Panel shall streamline, simplify, and expedite, to the

7 maximum extent practicable, the process (including

8 any paperwork) for submission and approval of ap9 plications under this section for agreements and

10 combinations between motor carriers providing

11 transportation of household goods and their agents.

12 ‘‘(d) CONDITIONS.—The Panel may impose condi13 tions governing the pooling or division and may approve

14 and authorize payment of a reasonable consideration be15 tween the carriers.

16 ‘‘(e) INITIATION OF PROCEEDING.—The Panel may

17 begin a proceeding under this section on its own initiative

18 or on application.

19 ‘‘(f) EFFECT OF APPROVAL.—A carrier may partici20 pate in an arrangement approved by or exempted by the

21 Panel under this section without the approval of any other

22 Federal, State, or municipal body. A carrier participating

23 in an approved or exempted arrangement is exempt from

24 the antitrust laws and from all other law, including State
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1 and municipal law, as necessary to let that person carry

2 out the arrangement.

3 ‘‘(g) DEFINITIONS.—In this section, the following

4 definitions apply:

5 ‘‘(1) HOUSEHOLD GOODS.—The term ‘house6 hold goods’ has the meaning such term had under

7 section 10102(11) of this title, as in effect on the

8 day before the effective date of this section.

9 ‘‘(2) TRANSPORTATION.—The term ‘transpor10 tation’ means transportation that would be subject

11 to the jurisdiction of the Interstate Commerce Com12 mission under subchapter II of chapter 105 of this

13 title, as in effect on the day before such effective

14 date, if such subchapter were still in effect.

15 ‘‘§ 14303. Consolidation, merger, and acquisition of

16 control of motor carriers of passengers

17 ‘‘(a) APPROVAL REQUIRED.—The following trans18 actions involving motor carriers of passengers subject to

19 jurisdiction under subchapter I of chapter 135 may be car20 ried out only with the approval of the Panel:

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

22 or franchises of at least 2 carriers into one operation

23 for the ownership, management, and operation of

24 the previously separately owned properties.
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1 ‘‘(2) A purchase, lease, or contract to operate

2 property of another carrier by any number of car3 riers.

4 ‘‘(3) Acquisition of control of a carrier by any

5 number of carriers.

6 ‘‘(4) Acquisition of control of at least 2 carriers

7 by a person that is not a carrier.

8 ‘‘(5) Acquisition of control of a carrier by a per9 son that is not a carrier but that controls any num10 ber of carriers.

11 ‘‘(b) STANDARD FOR APPROVAL.—The Panel shall

12 approve and authorize a transaction under this section

13 when it finds the transaction is consistent with the public

14 interest. The Panel shall consider at least the following:

15 ‘‘(1) The effect of the proposed transaction on

16 the adequacy of transportation to the public.

17 ‘‘(2) The total fixed charges that result from

18 the proposed transaction.

19 ‘‘(3) The interest of carrier employees affected

20 by the proposed transaction.

21 The Panel may impose conditions governing the trans22 action.

23 ‘‘(c) DETERMINATION OF COMPLETENESS OF APPLI24 CATION.—Within 30 days after the date on which an ap25 plication is filed under this section, the Panel shall either
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1 publish a notice of the application in the Federal Register

2 or reject the application if it is incomplete.

3 ‘‘(d) COMMENTS.—Written comments about an appli4 cation may be filed with the Panel within 45 days after

5 the date on which notice of the application is published

6 under subsection (c).

7 ‘‘(e) DEADLINES.—The Panel shall conclude evi8 dentiary proceedings by the 240th day after the date on

9 which notice of the application is published under sub10 section (c). The Panel shall issue a final decision by the

11 180th day after the conclusion of the evidentiary proceed12 ings. The Panel may extend a time period under this sub13 section; except that the total of all such extensions with

14 respect to any application shall not exceed 90 days.

15 ‘‘(f) EFFECT OF APPROVAL.—A carrier or corpora16 tion participating in or resulting from a transaction ap17 proved by the Panel under this section, or exempted by

18 the Panel from the application of this section pursuant

19 to section 13541, may carry out the transaction, own and

20 operate property, and exercise control or franchises ac21 quired through the transaction without the approval of a

22 State authority. A carrier, corporation, or person partici23 pating in the approved or exempted transaction is exempt

24 from the antitrust laws and from all other law, including

25 State and municipal law, as necessary to let that person
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1 carry out the transaction, hold, maintain, and operate

2 property, and exercise control or franchises acquired

3 through the transaction.

4 ‘‘(g) LIMITATION ON APPLICABILITY.—This section

5 shall not apply to transactions involving carriers whose ag6 gregate gross operating revenues were not more than

7 $2,000,000 during a period of 12 consecutive months end8 ing not more than 6 months before the date of the agree9 ment of the parties.

10 ‘‘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.

11 ‘‘§ 14501. Federal authority over intrastate transpor12 tation

13 ‘‘(a) MOTOR CARRIERS OF PASSENGERS.—No State

14 or political subdivision thereof and no interstate agency

15 or other political agency of 2 or more States shall enact

16 or enforce any law, rule, regulation, standard, or other

17 provision having the force and effect of law relating to

18 scheduling of interstate or intrastate transportation (in19 cluding discontinuance or reduction in the level of service)

20 provided by motor carrier of passengers subject to juris21 diction under subchapter I of chapter 135 of this title on

22 an interstate route or relating to the implementation of
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1 any change in the rates for such transportation or for any

2 charter transportation except to the extent that notice, not

3 in excess of 30 days, of changes in schedules may be re4 quired. This subsection shall not apply to intrastate com5 muter bus operations.

6 ‘‘(b) FREIGHT FORWARDERS AND BROKERS.—

7 ‘‘(1) GENERAL RULE.—Subject to paragraph

8 (2) of this subsection, no State or political subdivi9 sion thereof and no intrastate agency or other politi10 cal agency of 2 or more States shall enact or enforce

11 any law, rule, regulation, standard, or other provi12 sion having the force and effect of law relating to

13 intrastate rates, intrastate routes, or intrastate serv14 ices of any freight forwarder or broker.

15 ‘‘(2) CONTINUATION OF HAWAII’S AUTHOR16 ITY.—Nothing in this subsection and the amend17 ments made by the Surface Freight Forwarder De18 regulation Act of 1986 shall be construed to affect

19 the authority of the State of Hawaii to continue to

20 regulate a motor carrier operating within the State

21 of Hawaii.

22 ‘‘(c) MOTOR CARRIERS OF PROPERTY.—

23 ‘‘(1) GENERAL RULE.—Except as provided in

24 paragraphs (2) and (3), a State, political subdivision

25 of a State, or political authority of 2 or more States
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1 may not enact or enforce a law, regulation, or other

2 provision having the force and effect of law related

3 to a price, route, or service of any motor carrier

4 (other than a carrier affiliated with a direct air car5 rier covered by section 41713(b)(4)) or any motor

6 private carrier, broker, or freight forwarder with re7 spect to the transportation of property.

8 ‘‘(2) MATTERS NOT COVERED.—Paragraph

9 (1)—

10 ‘‘(A) shall not restrict the safety regulatory

11 authority of a State with respect to motor vehi12 cles, the authority of a State to impose highway

13 route controls or limitations based on the size

14 or weight of the motor vehicle or the hazardous

15 nature of the cargo, or the authority of a State

16 to regulate motor carriers with regard to mini17 mum amounts of financial responsibility relat18 ing to insurance requirements and self-insur19 ance authorization;

20 ‘‘(B) does not apply to the transportation

21 of household goods; and

22 ‘‘(C) does not apply to the authority of a

23 State or a political subdivision of a State to

24 enact or enforce a law, regulation, or other pro25 vision relating to the price of for-hire motor ve-
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1 hicle transportation by a tow truck, if such

2 transportation is performed without the prior

3 consent or authorization of the owner or opera4 tor of the motor vehicle.

5 ‘‘(3) STATE STANDARD TRANSPORTATION PRAC6 TICES.—

7 ‘‘(A) CONTINUATION.—Paragraph (1) shall

8 not affect any authority of a State, political

9 subdivision of a State, or political authority of

10 2 or more States to enact or enforce a law, reg11 ulation, or other provision, with respect to the

12 intrastate transportation of property by motor

13 carriers, related to—

14 ‘‘(i) uniform cargo liability rules,

15 ‘‘(ii) uniform bills of lading or receipts

16 for property being transported,

17 ‘‘(iii) uniform cargo credit rules, or

18 ‘‘(iv) antitrust immunity for joint line

19 rates or routes, classifications, and mileage

20 guides,

21 if such law, regulation, or provision meets the

22 requirements of subparagraph (B).

23 ‘‘(B) REQUIREMENTS.—A law, regulation,

24 or provision of a State, political subdivision, or
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1 political authority meets the requirements of

2 this subparagraph if—

3 ‘‘(i) the law, regulation, or provision

4 covers the same subject matter as, and

5 compliance with such law, regulation, or

6 provision is no more burdensome than

7 compliance with, a provision of this part or

8 a regulation issued by the Secretary or the

9 Panel under this part; and

10 ‘‘(ii) the law, regulation, or provision

11 only applies to a carrier upon request of

12 such carrier.

13 ‘‘(C) ELECTION.—Notwithstanding any

14 other provision of law, a carrier affiliated with

15 a direct air carrier through common controlling

16 ownership may elect to be subject to a law, reg17 ulation, or provision of a State, political sub18 division, or political authority under this para19 graph.

20 ‘‘(4) This subsection shall not apply with re21 spect to the State of Hawaii until August 22, 1997.

22 ‘‘§ 14502. Tax discrimination against motor carrier

23 transportation property

24 ‘‘(a) DEFINITIONS.—In this section, the following

25 definitions apply:
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1 ‘‘(1) ASSESSMENT.—The term ‘assessment’

2 means valuation for a property tax levied by a taxing

3 district.

4 ‘‘(2) ASSESSMENT JURISDICTION.—The term

5 ‘assessment jurisdiction’ means a geographical area

6 in a State used in determining the assessed value of

7 property for ad valorem taxation.

8 ‘‘(3) MOTOR CARRIER TRANSPORTATION PROP9 ERTY.—The term ‘motor carrier transportation

10 property’ means property, as defined by the Sec11 retary, owned or used by a motor carrier providing

12 transportation in interstate commerce whether or

13 not such transportation is subject to jurisdiction

14 under subchapter I of chapter 135.

15 ‘‘(4) COMMERCIAL AND INDUSTRIAL PROP16 ERTY.—The term ‘commercial and industrial prop17 erty’ means property, other than transportation

18 property and land used primarily for agricultural

19 purposes or timber growing, devoted to a commercial

20 or industrial use, and subject to a property tax levy.

21 ‘‘(b) ACTS BURDENING INTERSTATE COMMERCE.—

22 The following acts unreasonably burden and discriminate

23 against interstate commerce and a State, subdivision of

24 a State, or authority acting for a State or subdivision of

25 a State may not do any of them:
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1 ‘‘(1) EXCESSIVE VALUATION OF PROPERTY.—

2 Assess motor carrier transportation property at a

3 value that has a higher ratio to the true market

4 value of the motor carrier transportation property

5 than the ratio that the assessed value of other com6 mercial and industrial property in the same assess7 ment jurisdiction has to the true market value of the

8 other commercial and industrial property.

9 ‘‘(2) TAX ON ASSESSMENT.—Levy or collect a

10 tax on an assessment that may not be made under

11 paragraph (1).

12 ‘‘(3) AD VALOREM TAX.—Levy or collect an ad

13 valorem property tax on motor carrier transportation

14 property at a tax rate that exceeds the tax rate ap15 plicable to commercial and industrial property in the

16 same assessment jurisdiction.

17 ‘‘(c) JURISDICTION.—

18 ‘‘(1) IN GENERAL.—Notwithstanding section

19 1341 of title 28 and without regard to the amount

20 in controversy or citizenship of the parties, a district

21 court of the United States has jurisdiction, concur22 rent with other jurisdiction of courts of the United

23 States and the States, to prevent a violation of sub24 section (b) of this section.
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1 ‘‘(2) LIMITATION IN RELIEF.—Relief may be

2 granted under this subsection only if the ratio of as3 sessed value to true market value of motor carrier

4 transportation property exceeds, by at least 5 per5 cent, the ratio of assessed value to true market value

6 of other commercial and industrial property in the

7 same assessment jurisdiction.

8 ‘‘(3) BURDEN OF PROOF.—The burden of proof

9 in determining assessed value and true market value

10 is governed by State law.

11 ‘‘(4) VIOLATION.—If the ratio of the assessed

12 value of other commercial and industrial property in

13 the assessment jurisdiction to the true market value

14 of all other commercial and industrial property can15 not be determined to the satisfaction of the district

16 court through the random-sampling method known

17 as a sales assessment ratio study (to be carried out

18 under statistical principles applicable to such a

19 study), the court shall find, as a violation of this sec20 tion—

21 ‘‘(A) an assessment of the motor carrier

22 transportation property at a value that has a

23 higher ratio to the true market value of the

24 motor carrier transportation property than the

25 assessment value of all other property subject
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1 to a property tax levy in the assessment juris2 diction has to the true market value of all such

3 other property; and

4 ‘‘(B) the collection of ad valorem property

5 tax on the motor carrier transportation prop6 erty at a tax rate that exceeds the tax ratio rate

7 applicable to taxable property in the taxing dis8 trict.

9 ‘‘§ 14503. Withholding State and local income tax by

10 certain carriers

11 ‘‘(a) SINGLE STATE TAX WITHHOLDING.—

12 ‘‘(1) IN GENERAL.—No part of the compensa13 tion paid by a motor carrier providing transportation

14 subject to jurisdiction under subchapter I of chapter

15 135 or by a motor private carrier to an employee

16 who performs regularly assigned duties in 2 or more

17 States as such an employee with respect to a motor

18 vehicle shall be subject to the income tax laws of any

19 State or subdivision of that State, other than the

20 State or subdivision thereof of the employee’s resi21 dence.

22 ‘‘(2) EMPLOYEE DEFINED.—In this subsection,

23 the term ‘employee’ has the meaning given such

24 term in section 31132.

25 ‘‘(b) SPECIAL RULES.—
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1 ‘‘(1) CALCULATION OF EARNINGS.—In this sub2 section, an employee is deemed to have earned more

3 than 50 percent of pay in a State or subdivision of

4 that State in which the time worked by the employee

5 in the State or subdivision is more than 50 percent

6 of the total time worked by the employee while em7 ployed during the calendar year.

8 ‘‘(2) WATER CARRIERS.—A water carrier pro9 viding transportation subject to jurisdiction under

10 subchapter II of chapter 135 shall file income tax

11 information returns and other reports only with—

12 ‘‘(A) the State and subdivision of residence

13 of the employee (as shown on the employment

14 records of the carrier); and

15 ‘‘(B) the State and subdivision in which

16 the employee earned more than 50 percent of

17 the pay received by the employee from the car18 rier during the preceding calendar year.

19 ‘‘(3) APPLICABILITY TO SAILORS.—This sub20 section applies to pay of a master, officer, or sailor

21 who is a member of the crew on a vessel engaged in

22 foreign, coastwise, intercoastal, or noncontiguous

23 trade or in the fisheries of the United States.

24 ‘‘(c) FILING OF INFORMATION.—A motor and motor

25 private carrier withholding pay from an employee under
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1 subsection (a) of this section shall file income tax informa2 tion returns and other reports only with the State and

3 subdivision of residence of the employee.

4 ‘‘§ 14504. Registration of motor carriers by a State

5 ‘‘(a) DEFINITIONS.—In this section, the terms

6 ‘standards’ and ‘amendments to standards’ mean the

7 specification of forms and procedures required by regula8 tions of the Secretary to prove the lawfulness of transpor9 tation by motor carrier referred to in section 13501.

10 ‘‘(b) GENERAL RULE.—The requirement of a State

11 that a motor carrier, providing transportation subject to

12 jurisdiction under subchapter I of chapter 135 and provid13 ing transportation in that State, must register with the

14 State is not an unreasonable burden on transportation re15 ferred to in section 13501 when the State registration is

16 completed under standards of the Secretary under sub17 section (c). When a State registration requirement im18 poses obligations in excess of the standards of the Sec19 retary, the part in excess is an unreasonable burden.

20 ‘‘(c) SINGLE STATE REGISTRATION SYSTEM.—

21 ‘‘(1) IN GENERAL.—The Secretary shall main22 tain standards for implementing a system under

23 which—

24 ‘‘(A) a motor carrier is required to register

25 annually with only one State by providing evi-
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1 dence of its Federal registration under chapter

2 139;

3 ‘‘(B) the State of registration shall fully

4 comply with standards prescribed under this

5 section; and

6 ‘‘(C) such single State registration shall be

7 deemed to satisfy the registration requirements

8 of all other States.

9 ‘‘(2) SPECIFIC REQUIREMENTS.—

10 ‘‘(A) EVIDENCE OF FEDERAL REGISTRA11 TION; PROOF OF INSURANCE; PAYMENT OF

12 FEES.—Under the standards of the Secretary

13 implementing the single State registration sys14 tem described in paragraph (1) of this sub15 section, only a State acting in its capacity as

16 registration State under such single State sys17 tem may require a motor carrier registered by

18 the Secretary under this part—

19 ‘‘(i) to file and maintain evidence of

20 such Federal registration;

21 ‘‘(ii) to file satisfactory proof of re22 quired insurance or qualification as a self23 insurer;

24 ‘‘(iii) to pay directly to such State fee

25 amounts in accordance with the fee system
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1 established under subparagraph (B)(iv) of

2 this paragraph, subject to allocation of fee

3 revenues among all States in which the

4 carrier operates and which participate in

5 the single State registration system; and

6 ‘‘(iv) to file the name of a local agent

7 for service of process.

8 ‘‘(B) RECEIPTS; FEE SYSTEM.—The stand9 ards of the Secretary—

10 ‘‘(i) shall require that the registration

11 State issue a receipt, in a form prescribed

12 under the standards, reflecting that the

13 carrier has filed proof of insurance as pro14 vided under subparagraph (A)(ii) of this

15 paragraph and has paid fee amounts in ac16 cordance with the fee system established

17 under clause (iv) of this subparagraph;

18 ‘‘(ii) shall require that copies of the

19 receipt issued under clause (i) of this sub20 paragraph be kept in each of the carrier’s

21 commercial motor vehicles;

22 ‘‘(iii) shall not require decals, stamps,

23 cab cards, or any other means of register24 ing or identifying specific vehicles operated

25 by the carrier;
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1 ‘‘(iv) shall establish a fee system for

2 the filing of proof of insurance as provided

3 under subparagraph (A)(ii) of this para4 graph that—

5 ‘‘(I) is based on the number of

6 commercial motor vehicles the carrier

7 operates in a State and on the num8 ber of States in which the carrier op9 erates;

10 ‘‘(II) minimizes the costs of com11 plying with the registration system;

12 and

13 ‘‘(III) results in a fee for each

14 participating State that is equal to

15 the fee, not to exceed $10 per vehicle,

16 that such State collected or charged

17 as of November 15, 1991; and

18 ‘‘(v) shall not authorize the charging

19 or collection of any fee for filing and main20 taining a certificate or permit under sub21 paragraph (A)(i) of this paragraph.

22 ‘‘(C) PROHIBITED FEES.—The charging or

23 collection of any fee under this section that is

24 not in accordance with the fee system estab25 lished under subparagraph (B)(iv) of this para-
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1 graph shall be deemed to be a burden on inter2 state commerce.

3 ‘‘(D) LIMITATION ON PARTICIPATION BY

4 STATES.—Only a State which, as of January 1,

5 1991, charged or collected a fee for a vehicle

6 identification stamp or number under part 1023

7 of title 49, Code of Federal Regulations, shall

8 be eligible to participate as a registration State

9 under this subsection or to receive any fee reve10 nue under this subsection.

11 ‘‘§ 14505. State tax

12 ‘‘A State or political subdivision thereof may not col13 lect or levy a tax, fee, head charge, or other charge on—

14 ‘‘(1) a passenger traveling in interstate com15 merce by motor carrier;

16 ‘‘(2) the transportation of a passenger traveling

17 in interstate commerce by motor carrier;

18 ‘‘(3) the sale of passenger transportation in

19 interstate commerce by motor carrier; or

20 ‘‘(4) the gross receipts derived from such trans21 portation.

22 ‘‘CHAPTER 147—ENFORCEMENT;

23 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.
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‘‘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.

1 ‘‘§ 14701. General authority

2 ‘‘(a) INVESTIGATIONS.—The Secretary or the Panel,

3 as applicable, may begin an investigation under this part

4 on the Secretary’s or the Panel’s own initiative or on com5 plaint. If the Secretary or Panel, as applicable, finds that

6 a carrier or broker is violating this part, the Secretary

7 or Panel, as applicable, shall take appropriate action to

8 compel compliance with this part. If the Secretary finds

9 that a foreign motor carrier or foreign motor private car10 rier is violating chapter 139, the Secretary shall take ap11 propriate action to compel compliance with that chapter.

12 The Secretary or Panel, as applicable, may take action

13 under this subsection only after giving the carrier or

14 broker notice of the investigation and an opportunity for

15 a proceeding.

16 ‘‘(b) COMPLAINTS.—A person, including a govern17 mental authority, may file with the Secretary or Panel,

18 as applicable, a complaint about a violation of this part

19 by a carrier providing, or broker for, transportation or

20 service subject to jurisdiction under this part or a foreign

21 motor carrier or foreign motor private carrier providing

22 transportation registered under section 13902 of this title.

23 The complaint must state the facts that are the subject
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1 of the violation. The Secretary or Panel, as applicable,

2 may dismiss a complaint that it determines does not state

3 reasonable grounds for investigation and action.

4 ‘‘(c) DEADLINE.—A formal investigative proceeding

5 begun by the Secretary or Panel under subsection (a) of

6 this section is dismissed automatically unless it is con7 cluded with administrative finality by the end of the 3d

8 year after the date on which it was begun.

9 ‘‘(d) LIMITATION.—The Secretary and the Panel only

10 have authority under this section with respect to matters

11 within their respective jurisdictions under this part.

12 ‘‘§ 14702. Enforcement by the regulatory authority

13 ‘‘(a) IN GENERAL.—The Secretary or the Panel, as

14 applicable, may bring a civil action—

15 ‘‘(1) to enforce section 14103 of this title; or

16 ‘‘(2) to enforce this part, or a regulation or

17 order of the Secretary or Panel, as applicable, when

18 violated by a carrier or broker providing transpor19 tation or service subject to jurisdiction under sub20 chapter I or III of chapter 135 of this title or by

21 a foreign motor carrier or foreign motor private car22 rier providing transportation registered under sec23 tion 13902 of this title.

24 ‘‘(b) VENUE.—In a civil action under subsection

25 (a)(2) of this section—
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1 ‘‘(1) trial is in the judicial district in which the

2 carrier, foreign motor carrier, foreign motor private

3 carrier, or broker operates;

4 ‘‘(2) process may be served without regard to

5 the territorial limits of the district or of the State

6 in which the action is instituted; and

7 ‘‘(3) a person participating with a carrier or

8 broker in a violation may be joined in the civil action

9 without regard to the residence of the person.

10 ‘‘(c) STANDING.—The Panel may bring or participate

11 in any civil action involving motor carrier undercharges.

12 ‘‘§ 14703. Enforcement by the Attorney General

13 ‘‘The Attorney General may, and on request of either

14 the Secretary or the Panel shall, bring court proceed15 ings—

16 ‘‘(1) to enforce this part or a regulation or

17 order of the Secretary or Panel or terms of registra18 tion under this part; and

19 ‘‘(2) to prosecute a person violating this part or

20 a regulation or order of the Secretary or Panel or

21 term of registration under this part.

22 ‘‘§ 14704. Rights and remedies of persons injured by

23 carriers or brokers

24 ‘‘(a) IN GENERAL.—
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1 ‘‘(1) ENFORCEMENT OF ORDER.—A person in2 jured because a carrier or broker providing transpor3 tation or service subject to jurisdiction under chap4 ter 135 does not obey an order of the Secretary or

5 the Panel, as applicable, under this part, except an

6 order for the payment of money, may bring a civil

7 action to enforce that order under this subsection. A

8 person may bring a civil action for injunctive relief

9 for violations of sections 14102 and 14103.

10 ‘‘(2) DAMAGES FOR VIOLATIONS.—A carrier or

11 broker providing transportation or service subject to

12 jurisdiction under chapter 135 is liable for damages

13 sustained by a person as a result of an act or omis14 sion of that carrier or broker in violation of this

15 part.

16 ‘‘(b) LIABILITY AND DAMAGES FOR EXCEEDING

17 TARIFF RATE.—A carrier providing transportation or

18 service subject to jurisdiction under chapter 135 is liable

19 to a person for amounts charged that exceed the applicable

20 rate for transportation or service contained in a tariff in

21 effect under section 13702.

22 ‘‘(c) ELECTION.—

23 ‘‘(1) COMPLAINT TO DOT OR PANEL; CIVIL AC24 TION.—A person may file a complaint with the

25 Panel or the Secretary, as applicable, under section
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1 14701(b) or bring a civil action under subsection (b)

2 to enforce liability against a carrier or broker pro3 viding transportation or service subject to jurisdic4 tion under chapter 135.

5 ‘‘(2) ORDER OF DOT OR PANEL.—

6 ‘‘(A) IN GENERAL.—When the Panel or

7 Secretary, as applicable, makes an award under

8 subsection (b) of this section, the Panel or Sec9 retary, as applicable, shall order the carrier to

10 pay the amount awarded by a specific date. The

11 Panel or Secretary, as applicable, may order a

12 carrier or broker providing transportation or

13 service subject to jurisdiction under chapter

14 135 to pay damages only when the proceeding

15 is on complaint.

16 ‘‘(B) ENFORCEMENT BY CIVIL ACTION.—

17 The person for whose benefit an order of the

18 Panel or Secretary requiring the payment of

19 money is made may bring a civil action to en20 force that order under this paragraph if the

21 carrier or broker does not pay the amount

22 awarded by the date payment was ordered to be

23 made.

24 ‘‘(d) PROCEDURE.—
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1 ‘‘(1) IN GENERAL.—When a person begins a

2 civil action under subsection (b) of this section to

3 enforce an order of the Panel or Secretary requiring

4 the payment of damages by a carrier or broker pro5 viding transportation or service subject to jurisdic6 tion under chapter 135 of this title, the text of the

7 order of the Panel or Secretary must be included in

8 the complaint. In addition to the district courts of

9 the United States, a State court of general jurisdic10 tion having jurisdiction of the parties has jurisdic11 tion to enforce an order under this paragraph. The

12 findings and order of the Panel or Secretary are

13 competent evidence of the facts stated in them. Trial

14 in a civil action brought in a district court of the

15 United States under this paragraph is in the judicial

16 district in which the plaintiff resides or in which the

17 principal operating office of the carrier or broker is

18 located. In a civil action under this paragraph, the

19 plaintiff is liable for only those costs that accrue on

20 an appeal taken by the plaintiff.

21 ‘‘(2) PARTIES.—All parties in whose favor the

22 award was made may be joined as plaintiffs in a civil

23 action brought in a district court of the United

24 States under this subsection and all the carriers that

25 are parties to the order awarding damages may be
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1 joined as defendants. Trial in the action is in the ju2 dicial district in which any one of the plaintiffs could

3 bring the action against any one of the defendants.

4 Process may be served on a defendant at its prin5 cipal operating office when that defendant is not in

6 the district in which the action is brought. A judg7 ment ordering recovery may be made in favor of any

8 of those plaintiffs against the defendant found to be

9 liable to that plaintiff.

10 ‘‘(e) ATTORNEY’S FEES.—The district court shall

11 award a reasonable attorney’s fee under this section. The

12 district court shall tax and collect that fee as part of the

13 costs of the action.

14 ‘‘§ 14705. Limitation on actions by and against car15 riers

16 ‘‘(a) IN GENERAL.—A carrier providing transpor17 tation or service subject to jurisdiction under chapter 135

18 must begin a civil action to recover charges for transpor19 tation or service provided by the carrier within 18 months

20 after the claim accrues.

21 ‘‘(b) OVERCHARGES.—A person must begin a civil ac22 tion to recover overcharges within 18 months after the

23 claim accrues. If the claim is against a carrier providing

24 transportation subject to jurisdiction under chapter 135

25 and an election to file a complaint with the Panel or Sec-
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1 retary, as applicable, is made under section 14704(c)(1),

2 the complaint must be filed within 3 years after the claim

3 accrues.

4 ‘‘(c) DAMAGES.—A person must file a complaint with

5 the Panel or Secretary, as applicable, to recover damages

6 under section 14704(b)(2) within 2 years after the claim

7 accrues.

8 ‘‘(d) EXTENSIONS.—The limitation periods under

9 subsection (b) of this section are extended for 6 months

10 from the time written notice is given to the claimant by

11 the carrier of disallowance of any part of the claim speci12 fied in the notice if a written claim is given to the carrier

13 within those limitation periods. The limitation periods

14 under subsections (b) and (c) of this section are extended

15 for 90 days from the time the carrier begins a civil action

16 under subsection (a) to recover charges related to the

17 same transportation or service, or collects (without begin18 ning a civil action under that subsection) the charge for

19 that transportation or service if that action is begun or

20 collection is made within the appropriate period.

21 ‘‘(e) PAYMENT.—A person must begin a civil action

22 to enforce an order of the Panel or Secretary against a

23 carrier for the payment of money within 1 year after the

24 date the order required the money to be paid.
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1 ‘‘(f) GOVERNMENT TRANSPORTATION.—This section

2 applies to transportation for the United States Govern3 ment. The time limitations under this section are ex4 tended, as related to transportation for or on behalf of

5 the United States Government, for 3 years from the later

6 of the date of—

7 ‘‘(1) payment of the rate for the transportation

8 or service involved;

9 ‘‘(2) subsequent refund for overpayment of that

10 rate; or

11 ‘‘(3) deduction made under section 3726 of title

12 31.

13 ‘‘(g) ACCRUAL DATE.—A claim related to a shipment

14 of property accrues under this section on delivery or ten15 der of delivery by the carrier.

16 ‘‘§ 14706. Liability of carriers under receipts and bills

17 of lading

18 ‘‘(a) GENERAL LIABILITY.—

19 ‘‘(1) MOTOR CARRIERS AND FREIGHT FOR20 WARDERS.—A carrier providing transportation or

21 service subject to jurisdiction under subchapter I or

22 III of chapter 135 shall issue a receipt or bill of lad23 ing for property it receives for transportation under

24 this part. That carrier and any other carrier that de25 livers the property and is providing transportation or
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1 service subject to jurisdiction under subchapter I or

2 III of chapter 135 or chapter 105 are liable to the

3 person entitled to recover under the receipt or bill of

4 lading. The liability imposed under this paragraph is

5 for the actual loss or injury to the property caused

6 by (A) the receiving carrier, (B) the delivering car7 rier, or (C) another carrier over whose line or route

8 the property is transported in the United States or

9 from a place in the United States to a place in an

10 adjacent foreign country when transported under a

11 through bill of lading and, except in the case of a

12 freight forwarder, applies to property reconsigned or

13 diverted under a tariff under section 13702. Failure

14 to issue a receipt or bill of lading does not affect the

15 liability of a carrier. A delivering carrier is deemed

16 to be the carrier performing the line-haul transpor17 tation nearest the destination but does not include

18 a carrier providing only a switching service at the

19 destination.

20 ‘‘(2) FREIGHT FORWARDER.—A freight for21 warder is both the receiving and delivering carrier.

22 When a freight forwarder provides service and uses

23 a motor carrier providing transportation subject to

24 jurisdiction under subchapter I of chapter 135 to re25 ceive property from a consignor, the motor carrier
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1 may execute the bill of lading or shipping receipt for

2 the freight forwarder with its consent. With the con3 sent of the freight forwarder, a motor carrier may

4 deliver property for a freight forwarder on the

5 freight forwarder’s bill of lading, freight bill, or ship6 ping receipt to the consignee named in it, and re7 ceipt for the property may be made on the freight

8 forwarder’s delivery receipt.

9 ‘‘(b) APPORTIONMENT.—The carrier issuing the re10 ceipt or bill of lading under subsection (a) of this section

11 or delivering the property for which the receipt or bill of

12 lading was issued is entitled to recover from the carrier

13 over whose line or route the loss or injury occurred the

14 amount required to be paid to the owners of the property,

15 as evidenced by a receipt, judgment, or transcript, and the

16 amount of its expenses reasonably incurred in defending

17 a civil action brought by that person.

18 ‘‘(c) SPECIAL RULES.—

19 ‘‘(1) LIMITATION OF LIABILITY.—A carrier may

20 limit liability imposed under subsection (a) by estab21 lishing rates for the transportation of property

22 (other than household goods) under which the liabil23 ity of the carrier for such property (A) is limited to

24 a value established by written or electronic declara25 tion of the shipper or by a mutual written agreement
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1 between the carrier and shipper, or (B) is contained

2 in a schedule of rules and rates maintained by the

3 carrier and provided to the shipper upon request.

4 The schedule shall clearly state its dates of applica5 bility.

6 ‘‘(2) WATER CARRIERS.—If loss or injury to

7 property occurs while it is in the custody of a water

8 carrier, the liability of that carrier is determined by

9 its bill of lading and the law applicable to water

10 transportation. The liability of the initial or deliver11 ing carrier is the same as the liability of the water

12 carrier.

13 ‘‘(d) CIVIL ACTIONS.—

14 ‘‘(1) AGAINST DELIVERING CARRIER.—A civil

15 action under this section may be brought against a

16 delivering carrier in a district court of the United

17 States or in a State court. Trial, if the action is

18 brought in a district court of the United States is

19 in a judicial district, and if in a State court, is in

20 a State through which the defendant carrier oper21 ates.

22 ‘‘(2) AGAINST CARRIER RESPONSIBLE FOR

23 LOSS.—A civil action under this section may be

24 brought against the carrier alleged to have caused
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1 the loss or damage, in the judicial district in which

2 such loss or damage is alleged to have occurred.

3 ‘‘(3) JURISDICTION OF COURTS.—A civil action

4 under this section may be brought in a United

5 States district court or in a State court.

6 ‘‘(4) JUDICIAL DISTRICT DEFINED.—In this

7 section, ‘judicial district’ means—

8 ‘‘(A) in the case of a United States district

9 court, a judicial district of the United States;

10 and

11 ‘‘(B) in the case of a State court, the ap12 plicable geographic area over which such court

13 exercises jurisdiction.

14 ‘‘(e) MINIMUM PERIOD FOR FILING CLAIMS.—

15 ‘‘(1) IN GENERAL.—A carrier may not provide

16 by rule, contract, or otherwise, a period of less than

17 9 months for filing a claim against it under this sec18 tion and a period of less than 2 years for bringing

19 a civil action against it under this section. The pe20 riod for bringing a civil action is computed from the

21 date the carrier gives a person written notice that

22 the carrier has disallowed any part of the claim

23 specified in the notice.

24 ‘‘(2) SPECIAL RULES.—For the purposes of this

25 subsection—
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1 ‘‘(A) an offer of compromise shall not con2 stitute a disallowance of any part of the claim

3 unless the carrier, in writing, informs the claim4 ant that such part of the claim is disallowed

5 and provides reasons for such disallowance; and

6 ‘‘(B) communications received from a car7 rier’s insurer shall not constitute a disallowance

8 of any part of the claim unless the insurer, in

9 writing, informs the claimant that such part of

10 the claim is disallowed, provides reason for such

11 disallowance, and informs the claimant that the

12 insurer is acting on behalf of the carrier.

13 ‘‘(f) LIMITING LIABILITY OF HOUSEHOLD GOODS

14 CARRIERS TO DECLARED VALUE.—A carrier or group of

15 carriers subject to jurisdiction under subchapter I or III

16 of chapter 135 may petition the Panel to modify, elimi17 nate, or establish rates for the transportation of household

18 goods under which the liability of the carrier for that prop19 erty is limited to a value established by written declaration

20 of the shipper or by a written agreement.

21 ‘‘(g) MODIFICATIONS AND REFORMS.—

22 ‘‘(1) STUDY.—The Secretary shall conduct a

23 study to determine whether any modifications or re24 forms should be made to the loss and damage provi25 sions of this section.
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1 ‘‘(2) FACTORS TO CONSIDER.—In conducting

2 the study, the Secretary, at a minimum, shall con3 sider—

4 ‘‘(A) the efficient delivery of transportation

5 services;

6 ‘‘(B) international and intermodal har7 mony;

8 ‘‘(C) the public interest; and

9 ‘‘(D) the interest of carriers and shippers.

10 ‘‘(3) REPORT.—Not later than 18 months after

11 the effective date of this section, the Secretary shall

12 submit to Congress a report on the results of the

13 study, together with any recommendations of the

14 Secretary (including legislative recommendations)

15 for implementing modifications or reforms identified

16 by the Secretary as being appropriate.

17 ‘‘§ 14707. Private enforcement of registration require18 ment

19 ‘‘(a) IN GENERAL.—If a person provides transpor20 tation by motor vehicle or service in clear violation of sec21 tion 13901–13904 or 13906, a person injured by the

22 transportation or service may bring a civil action to en23 force any such section. In a civil action under this sub24 section, trial is in the judicial district in which the person

25 who violated that section operates.
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1 ‘‘(b) PROCEDURE.—A copy of the complaint in a civil

2 action under subsection (a) shall be served on the Sec3 retary and a certificate of service must appear in the com4 plaint filed with the court. The Secretary may intervene

5 in a civil action under subsection (a). The Secretary may

6 notify the district court in which the action is pending that

7 the Secretary intends to consider the matter that is the

8 subject of the complaint in a proceeding before the Sec9 retary. When that notice is filed, the court shall stay fur10 ther action pending disposition of the proceeding before

11 the Secretary.

12 ‘‘(c) ATTORNEY’S FEES.—In a civil action under sub13 section (a), the court may determine the amount of and

14 award a reasonable attorney’s fee to the prevailing party.

15 That fee is in addition to costs allowable under the Fed16 eral Rules of Civil Procedure.

17 ‘‘§ 14708. Dispute settlement program for household

18 goods carriers

19 ‘‘(a) OFFERING SHIPPERS ARBITRATION.—As a con20 dition of registration under section 13902 or 13903, a car21 rier providing transportation of household goods subject

22 to jurisdiction under subchapter I or III of chapter 135

23 must agree to offer in accordance with this section to ship24 pers of household goods arbitration as a means of settling

25 disputes between such carriers and shippers of household
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1 goods concerning damage or loss to the household goods

2 transported.

3 ‘‘(b) ARBITRATION REQUIREMENTS.—

4 ‘‘(1) PREVENTION OF SPECIAL ADVANTAGE.—

5 The arbitration that is offered must be designed to

6 prevent a carrier from having any special advantage

7 in any case in which the claimant resides or does

8 business at a place distant from the carrier’s prin9 cipal or other place of business.

10 ‘‘(2) NOTICE OF ARBITRATION PROCEDURE.—

11 The carrier must provide the shipper an adequate

12 notice of the availability of neutral arbitration, in13 cluding a concise easy-to-read, accurate summary of

14 the arbitration procedure, any applicable fees, and

15 disclosure of the legal effects of election to utilize ar16 bitration. Such notice must be given to persons for

17 whom household goods are to be transported by the

18 carrier before such goods are tendered to the carrier

19 for transportation.

20 ‘‘(3) PROVISION OF FORMS.—Upon request of a

21 shipper, the carrier must promptly provide such

22 forms and other information as are necessary for

23 initiating an action to resolve a dispute under arbi24 tration.
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1 ‘‘(4) INDEPENDENCE OF ARBITRATOR.—Each

2 person authorized to arbitrate or otherwise settle

3 disputes must be independent of the parties to the

4 dispute and must be capable, as determined under

5 such regulations as the Secretary may issue, to re6 solve such disputes fairly and expeditiously. The car7 rier must ensure that each person chosen to settle

8 the disputes is authorized and able to obtain from

9 the shipper or carrier any material and relevant in10 formation to the extent necessary to carry out a fair

11 and expeditious decision making process.

12 ‘‘(5) LIMITATION ON FEES.—No fee of more

13 than $25 may be charged a shipper for instituting

14 an arbitration proceeding under this subsection. The

15 arbitrator may determine which party shall pay the

16 cost or a portion of the cost of the arbitration pro17 ceeding.

18 ‘‘(6) REQUESTS.—The carrier must not require

19 the shipper to agree to utilize arbitration prior to

20 the time that a dispute arises. If the dispute involves

21 a claim for $1,000 or less and the shipper requests

22 arbitration, such arbitration shall be binding on the

23 parties. If the dispute involves a claim for more than

24 $1,000 and the shipper requests arbitration, such
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1 arbitration shall be binding on the parties only if the

2 carrier agrees to arbitration.

3 ‘‘(7) ORAL PRESENTATION OF EVIDENCE.—The

4 arbitrator may provide for an oral presentation of a

5 dispute concerning transportation of household

6 goods by a party to the dispute (or a party’s rep7 resentative), but such oral presentation may be

8 made only if all parties to the dispute expressly

9 agree to such presentation and the date, time, and

10 location of such presentation.

11 ‘‘(8) DEADLINE FOR DECISION.—The arbitrator

12 must, as expeditiously as possible but at least within

13 60 days of receipt of written notification of the dis14 pute, render a decision based on the information

15 gathered; except that, in any case in which a party

16 to the dispute fails to provide in a timely manner

17 any information concerning such dispute which the

18 person settling the dispute may reasonably require

19 to resolve the dispute, the arbitrator may extend

20 such 60-day period for a reasonable period of time.

21 A decision resolving a dispute may include any rem22 edies appropriate under the circumstances, including

23 repair, replacement, refund, reimbursement for ex24 penses, and compensation for damages.
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1 ‘‘(c) LIMITATION ON USE OF MATERIALS.—Materials

2 and information obtained in the course of a decision mak3 ing process to settle a dispute by arbitration under this

4 section may not be used to bring an action under section

5 14905.

6 ‘‘(d) ATTORNEY’S FEES TO SHIPPERS.—In any court

7 action to resolve a dispute between a shipper of household

8 goods and a carrier providing transportation or service

9 subject to jurisdiction under subchapter I or III of chapter

10 135 concerning the transportation of household goods by

11 such carrier, the shipper shall be awarded reasonable at12 torney’s fees if—

13 ‘‘(1) the shipper submits a claim to the carrier

14 within 120 days after the date the shipment is deliv15 ered or the date the delivery is scheduled, whichever

16 is later;

17 ‘‘(2) the shipper prevails in such court action;

18 and

19 ‘‘(3)(A) a decision resolving the dispute was not

20 rendered through arbitration under this section with21 in the period provided under subsection (b)(8) of

22 this section or an extension of such period under

23 such subsection; or

24 ‘‘(B) the court proceeding is to enforce a deci25 sion rendered through arbitration under this section
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1 and is instituted after the period for performance

2 under such decision has elapsed.

3 ‘‘(e) ATTORNEY’S FEES TO CARRIERS.—In any court

4 action to resolve a dispute between a shipper of household

5 goods and a carrier providing transportation, or service

6 subject to jurisdiction under subchapter I or III of chapter

7 135 concerning the transportation of household goods by

8 such carrier, such carrier may be awarded reasonable at9 torney’s fees by the court only if the shipper brought such

10 action in bad faith—

11 ‘‘(1) after resolution of such dispute through

12 arbitration under this section; or

13 ‘‘(2) after institution of an arbitration proceed14 ing by the shipper to resolve such dispute under this

15 section but before—

16 ‘‘(A) the period provided under subsection

17 (b)(8) for resolution of such dispute (including,

18 if applicable, an extension of such period under

19 such subsection) ends; and

20 ‘‘(B) a decision resolving such dispute is

21 rendered.

22 ‘‘(f) LIMITATION OF APPLICABILITY TO COLLECT23 ON-DELIVERY TRANSPORTATION.—The provisions of this

24 section shall apply only in the case of collect-on-delivery

25 transportation of household goods.
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1 ‘‘(g) REVIEW BY SECRETARY.—Not later than 36

2 months after the effective date of this section, the Sec3 retary shall complete a review of the dispute settlement

4 program established under this section. If, after notice and

5 opportunity for comment, the Secretary determines that

6 changes are necessary to such program to ensure the fair

7 and equitable resolution of disputes under this section, the

8 Secretary shall implement such changes and transmit a

9 report to Congress on such changes.

10 ‘‘§ 14709. Tariff reconciliation rules for motor car11 riers of property

12 ‘‘Subject to review and approval by the Panel, motor

13 carriers subject to jurisdiction under subchapter I of chap14 ter 135 (other than motor carriers providing transpor15 tation of household goods) and shippers may resolve, by

16 mutual consent, overcharge and under-charge claims re17 sulting from incorrect tariff provisions or billing errors

18 arising from the inadvertent failure to properly and timely

19 file and maintain agreed upon rates, rules, or classifica20 tions in compliance with section 13702 or, with respect

21 to transportation provided before the effective date of this

22 section, sections 10761 and 10762, as in effect on the day

23 before the effective date of this section. Resolution of such

24 claims among the parties shall not subject any party to

25 the penalties for departing from a tariff.
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1 ‘‘CHAPTER 149—CIVIL AND CRIMINAL PENALTIES

Sec.

‘‘14901. General civil penalties.

‘‘14902. Civil penalty for accepting rebates from carrier.

‘‘14903. Tariff violations.

‘‘14904. Additional rate violations.

‘‘14905. Penalties for violations of rules relating to loading and unloading

motor vehicles.

‘‘14906. Evasion of regulation of carriers and brokers.

‘‘14907. Record keeping and reporting violations.

‘‘14908. Unlawful disclosure of information.

‘‘14909. Disobedience to subpoenas.

‘‘14910. General criminal penalty when specific penalty not provided.

‘‘14911. Punishment of corporation for violations committed by certain individuals.

‘‘14912. Weight-bumping in household goods transportation.

‘‘14913. Conclusiveness of rates in certain prosecutions.

2 ‘‘§ 14901. General civil penalties

3 ‘‘(a) REPORTING AND RECORDKEEPING.—A person

4 required to make a report to the Secretary or the Panel,

5 answer a question, or make, prepare, or preserve a record

6 under this part concerning transportation subject to juris7 diction under subchapter I or III of chapter 135 or trans8 portation by a foreign carrier registered under section

9 13902, or an officer, agent, or employee of that person

10 that—

11 ‘‘(1) does not make the report;

12 ‘‘(2) does not specifically, completely, and

13 truthfully answer the question;

14 ‘‘(3) does not make, prepare, or preserve the

15 record in the form and manner prescribed;

16 ‘‘(4) does not comply with section 13901; or

17 ‘‘(5) does not comply with section 13902(c);
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1 is liable to the United States Government for a civil pen2 alty of not less than $500 for each violation and for each

3 additional day the violation continues; except that, in the

4 case of a person who is not registered under this part to

5 provide transportation of passengers, or an officer, agent,

6 or employee of such person, that does not comply with sec7 tion 13901 with respect to providing transportation of

8 passengers, the amount of the civil penalty shall not be

9 less than $2,000 for each violation and for each additional

10 day the violation continues.

11 ‘‘(b) TRANSPORTATION OF HAZARDOUS WASTES.—

12 A person subject to jurisdiction under subchapter I of

13 chapter 135, or an officer, agent, or employee of that per14 son, and who is required to comply with section 13901

15 of this title but does not so comply with respect to the

16 transportation of hazardous wastes as defined by the En17 vironmental Protection Agency pursuant to section 3001

18 of the Solid Waste Disposal Act (but not including any

19 waste the regulation of which under the Solid Waste Dis20 posal Act has been suspended by Congress) shall be liable

21 to the United States for a civil penalty not to exceed

22 $20,000 for each violation.

23 ‘‘(c) FACTORS TO CONSIDER IN DETERMINING

24 AMOUNT.—In determining and negotiating the amount of

25 a civil penalty under subsection (a) or (d) concerning
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1 transportation of household goods, the degree of culpabil2 ity, any history of prior such conduct, the degree of harm

3 to shipper or shippers, ability to pay, the effect on ability

4 to do business, whether the shipper has been adequately

5 compensated before institution of the proceeding, and such

6 other matters as fairness may require shall be taken into

7 account.

8 ‘‘(d) PROTECTION OF HOUSEHOLD GOODS SHIP9 PERS.—If a carrier providing transportation of household

10 goods subject to jurisdiction under subchapter I or III of

11 chapter 135 or a receiver or trustee of such carrier fails

12 or refuses to comply with any regulation issued by the Sec13 retary or the Panel relating to protection of individual

14 shippers, such carrier, receiver, or trustee is liable to the

15 United States for a civil penalty of not less than $1,000

16 for each violation and for each additional day during which

17 the violation continues.

18 ‘‘(e) VIOLATION RELATING TO TRANSPORTATION OF

19 HOUSEHOLD GOODS.—Any person that knowingly en20 gages in or knowingly authorizes an agent or other per21 son—

22 ‘‘(1) to falsify documents used in the transpor23 tation of household goods subject to jurisdiction

24 under subchapter I or III of chapter 135 which evi25 dence the weight of a shipment; or
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1 ‘‘(2) to charge for accessorial services which are

2 not performed or for which the carrier is not entitled

3 to be compensated in any case in which such services

4 are not reasonably necessary in the safe and ade5 quate movement of the shipment;

6 is liable to the United States for a civil penalty of not

7 less than $2,000 for each violation and of not less than

8 $5,000 for each subsequent violation. Any State may bring

9 a civil action in the United States district courts to compel

10 a person to pay a civil penalty assessed under this sub11 section.

12 ‘‘(f) VENUE.—Trial in a civil action under sub13 sections (a) through (e) of this section is in the judicial

14 district in which—

15 ‘‘(1) the carrier or broker has its principal of16 fice;

17 ‘‘(2) the carrier or broker was authorized to

18 provide transportation or service under this part

19 when the violation occurred;

20 ‘‘(3) the violation occurred; or

21 ‘‘(4) the offender is found.

22 Process in the action may be served in the judicial district

23 of which the offender is an inhabitant or in which the of24 fender may be found.
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1 ‘‘§ 14902. Civil penalty for accepting rebates from car2 rier

3 ‘‘A person—

4 ‘‘(1) delivering property to a carrier providing

5 transportation or service subject to jurisdiction

6 under chapter 135 for transportation under this part

7 or for whom that carrier will transport the property

8 as consignor or consignee for that person from a

9 State or territory or possession of the United States

10 to another State or possession, territory, or to a for11 eign country; and

12 ‘‘(2) knowingly accepting or receiving by any

13 means a rebate or offset against the rate for trans14 portation for, or service of, that property contained

15 in a tariff required under section 13702;

16 is liable to the United States Government for a civil pen17 alty in an amount equal to 3 times the amount of money

18 that person accepted or received as a rebate or offset and

19 3 times the value of other consideration accepted or re20 ceived as a rebate or offset. In a civil action under this

21 section, all money or other consideration received by the

22 person during a period of 6 years before an action is

23 brought under this section may be included in determining

24 the amount of the penalty, and if that total amount is

25 included, the penalty shall be 3 times that total amount.
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1 ‘‘§ 14903. Tariff violations

2 ‘‘(a) CRIMINAL PENALTY FOR UNDERCHARGING.—A

3 person that knowingly offers, grants, gives, solicits, ac4 cepts, or receives by any means transportation or service

5 provided for property by a carrier subject to jurisdiction

6 under chapter 135 at less than the rate in effect under

7 section 13702 shall be fined at least $1,000 but not more

8 than $20,000, imprisoned for not more than 2 years, or

9 both.

10 ‘‘(b) GENERAL CRIMINAL PENALTY.—A carrier pro11 viding transportation or service subject to jurisdiction

12 under chapter 135 or an officer, director, receiver, trustee,

13 lessee, agent, or employee of a corporation that is subject

14 to jurisdiction under that chapter, that willfully does not

15 observe its tariffs as required under section 13702, shall

16 be fined at least $1,000 but not more than $20,000, im17 prisoned for not more than 2 years, or both.

18 ‘‘(c) ACTIONS OF AGENTS AND EMPLOYEES.—When

19 acting in the scope of their employment, the actions and

20 omissions of persons acting for or employed by a carrier

21 or shipper that is subject to this section are considered

22 to be the actions and omissions of that carrier or shipper

23 as well as that person.

24 ‘‘(d) VENUE.—Trial in a criminal action under this

25 section is in the judicial district in which any part of the
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1 violation is committed or through which the transportation

2 is conducted.

3 ‘‘§ 14904. Additional rate violations

4 ‘‘(a) REBATES BY AGENTS.—A person, or an officer,

5 employee, or agent of that person, that—

6 ‘‘(1) knowingly offers, grants, gives, solicits, ac7 cepts, or receives a rebate for concession, in violation

8 of a provision of this part related to motor carrier

9 transportation subject to jurisdiction under sub10 chapter I of chapter 135; or

11 (2) by any means knowingly and willfully as12 sists or permits another person to get transportation

13 that is subject to jurisdiction under that subchapter

14 at less than the rate in effect for that transportation

15 under section 13702,

16 shall be fined at least $200 for the first violation and at

17 least $250 for a subsequent violation.

18 ‘‘(b) UNDERCHARGING.—

19 ‘‘(1) FREIGHT FORWARDER.—A freight for20 warder providing service subject to jurisdiction

21 under subchapter III of chapter 135, or an officer,

22 agent, or employee of that freight forwarder, that

23 knowingly and willfully assists a person in getting,

24 or willingly permits a person to get, service provided

25 under that subchapter at less than the rate in effect
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1 for that service under section 13702, shall be fined

2 not more than $500 for the first violation and not

3 more than $2,000 for a subsequent violation.

4 ‘‘(2) OTHERS.—A person that knowingly and

5 willfully by any means gets, or attempts to get, serv6 ice provided under subchapter III of chapter 135 at

7 less than the rate in effect for that service under

8 section 13702, shall be fined not more than $500 for

9 the first violation and not more than $2,000 for a

10 subsequent violation.

11 ‘‘§ 14905. Penalties for violations of rules relating to

12 loading and unloading motor vehicles

13 ‘‘(a) CIVIL PENALTIES.—Any person who knowingly

14 authorizes, consents to, or permits a violation of sub15 section (a) or (b) of section 14103 or who knowingly vio16 lates subsection (a) of such section is liable to the United

17 States Government for a civil penalty of not more than

18 $10,000 for each violation.

19 ‘‘(b) CRIMINAL PENALTIES.—Any person who know20 ingly violates section 14103(b) of this title shall be fined

21 not more than $10,000, imprisoned for not more than 2

22 years, or both.
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1 ‘‘§ 14906. Evasion of regulation of carriers and bro2 kers

3 ‘‘A person, or an officer, employee, or agent of that

4 person, that by any means knowingly and willfully tries

5 to evade regulation provided under this part for carriers

6 or brokers shall be fined at least $200 for the first viola7 tion and at least $250 for a subsequent violation.

8 ‘‘§ 14907. Record keeping and reporting violations

9 ‘‘A person required to make a report to the Secretary

10 or the Panel, as applicable, answer a question, or make,

11 prepare, or preserve a record under this part about trans12 portation subject to jurisdiction under subchapter I or III

13 of chapter 135, or an officer, agent, or employee of that

14 person, that—

15 ‘‘(1) willfully does not make that report;

16 ‘‘(2) willfully does not specifically, completely,

17 and truthfully answer that question in 30 days from

18 the date the Secretary or Panel, as applicable, re19 quires the question to be answered;

20 ‘‘(3) willfully does not make, prepare, or pre21 serve that record in the form and manner pre22 scribed;

23 ‘‘(4) knowingly and willfully falsifies, destroys,

24 mutilates, or changes that report or record;

25 ‘‘(5) knowingly and willfully files a false report

26 or record;
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1 ‘‘(6) knowingly and willfully makes a false or

2 incomplete entry in that record about a business re3 lated fact or transaction; or

4 ‘‘(7) knowingly and willfully makes, prepares,

5 or preserves a record in violation of an applicable

6 regulation or order of the Secretary or Panel;

7 shall be fined not more than $5,000.

8 ‘‘§ 14908. Unlawful disclosure of information

9 ‘‘(a) DISCLOSURE OF SHIPMENT AND ROUTING IN10 FORMATION.—

11 ‘‘(1) VIOLATIONS.—A carrier or broker provid12 ing transportation subject to jurisdiction under sub13 chapter I, II, or III of chapter 135 or an officer, re14 ceiver, trustee, lessee, or employee of that carrier or

15 broker, or another person authorized by that carrier

16 or broker to receive information from that carrier or

17 broker may not knowingly disclose to another per18 son, except the shipper or consignee, and another

19 person may not solicit, or knowingly receive, infor20 mation about the nature, kind, quantity, destination,

21 consignee, or routing of property tendered or deliv22 ered to that carrier or broker for transportation pro23 vided under this part without the consent of the

24 shipper or consignee if that information may be used

25 to the detriment of the shipper or consignee or may
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1 disclose improperly to a competitor the business

2 transactions of the shipper or consignee.

3 ‘‘(2) FINE; VENUE.—A person violating para4 graph (1) of this subsection shall be fined not less

5 than $2,000. Trial in a criminal action under this

6 paragraph is in the judicial district in which any

7 part of the violation is committed.

8 ‘‘(b) LIMITATION ON STATUTORY CONSTRUCTION.—

9 This part does not prevent a carrier or broker providing

10 transportation subject to jurisdiction under chapter 135

11 from giving information—

12 ‘‘(1) in response to legal process issued under

13 authority of a court of the United States or a State;

14 ‘‘(2) to an officer, employee, or agent of the

15 United States Government, a State, or a territory or

16 possession of the United States; or

17 ‘‘(3) to another carrier or its agent to adjust

18 mutual traffic accounts in the ordinary course of

19 business.

20 ‘‘§ 14909. Disobedience to subpoenas

21 ‘‘A person not obeying a subpoena or requirement of

22 the Secretary or the Panel to appear and testify or

23 produce records shall be fined not less than $5,000, im24 prisoned for not more than 1 year, or both.
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1 ‘‘§ 14910. General criminal penalty when specific pen2 alty not provided

3 ‘‘When another criminal penalty is not provided

4 under this chapter, a person that knowingly and willfully

5 violates a provision of this part or a regulation or order

6 prescribed under this part, or a condition of a registration

7 under this part related to transportation that is subject

8 to jurisdiction under subchapter I or III of chapter 135

9 or a condition of a registration of a foreign motor carrier

10 or foreign motor private carrier under section 13902, shall

11 be fined at least $500 for the first violation and at least

12 $500 for a subsequent violation. A separate violation oc13 curs each day the violation continues.

14 ‘‘§ 14911. Punishment of corporation for violations

15 committed by certain individuals

16 ‘‘An act or omission that would be a violation of this

17 part if committed by a director, officer, receiver, trustee,

18 lessee, agent, or employee of a carrier providing transpor19 tation or service subject to jurisdiction under chapter 135

20 that is a corporation is also a violation of this part by

21 that corporation. The penalties of this chapter apply to

22 that violation. When acting in the scope of their employ23 ment, the actions and omissions of individuals acting for

24 or employed by that carrier are considered to be the ac25 tions and omissions of that carrier as well as that individ26 ual.
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1 ‘‘§ 14912. Weight-bumping in household goods trans2 portation

3 ‘‘(a) WEIGHT-BUMPING DEFINED.—For the pur4 poses of this section, ‘weight-bumping’ means the knowing

5 and willful making or securing of a fraudulent weight on

6 a shipment of household goods which is subject to jurisdic7 tion under subchapter I or III of chapter 135.

8 ‘‘(b) PENALTY.—Any individual who has been found

9 to have committed weight-bumping shall, for each offense,

10 be fined at least $1,000 but not more than $10,000, im11 prisoned for not more than 2 years, or both.

12 ‘‘§ 14913. Conclusiveness of rates in certain prosecu13 tions

14 ‘‘When a carrier publishes or files a particular rate

15 under section 13702 or participates in such a rate, the

16 published or filed rate is conclusive proof against that car17 rier, its officers, and agents that it is the legal rate for

18 that transportation or service in a proceeding begun under

19 section 14902 or 14903. A departure, or offer to depart,

20 from that published or filed rate is a violation of those

21 sections.’’.

22 SEC. 104. MISCELLANEOUS MOTOR CARRIER PROVISIONS.

23 (a) MULTIPLE INSURERS.—Section 31138(c) of title

24 49, United States Code, is amended by adding at the end

25 thereof the following new paragraph:
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1 ‘‘(3) A motor carrier may obtain the required amount

2 of financial responsibility from more than one source pro3 vided the cumulative amount is equal to the minimum re4 quirements of this section.’’.

5 (b) MINIMUM FINANCIAL RESPONSIBILITY REQUIRE6 MENTS WITH RESPECT TO CERTAIN MASS TRANSPOR7 TATION SERVICE.—Section 31138(e) is amended—

8 (1) by striking ‘‘or’’ at the end of paragraph

9 (2);

10 (2) by striking the period at the end of para11 graph (3) and inserting ‘‘; or’’; and

12 (3) by adding at the end the following:

13 ‘‘(4) providing mass transportation service with14 in a transit service area in other than urbanized

15 areas under an agreement with a State or local gov16 ernment funded, in whole or in part, with a grant

17 under section 5310 or 5311, including transpor18 tation designed and carried out to meet the special

19 needs of elderly individuals and individuals with dis20 abilities; provided that, in any case in which the

21 transit service area is located in more than 1 State,

22 the minimum level of financial responsibility for such

23 motor vehicle will be at least the highest level re24 quired for any of such States.’’.
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1 (c) TRANSPORTERS OF PROPERTY.—Section

2 31139(e) of such title is amended by adding at the end

3 thereof the following:

4 ‘‘(3) A motor carrier may obtain the required amount

5 of financial responsibility from more than one source pro6 vided the cumulative amount is equal to the minimum re7 quirements of this section.’’.

8 (d) COMMERCIAL MOTOR VEHICLE DEFINED.—Sec9 tion 31132(1) of such title is amended—

10 (1) by redesignating subparagraph (C) as sub11 paragraph (D); and

12 (2) by striking subparagraph (B) and inserting

13 the following:

14 ‘‘(B) is designed or used to transport pas15 sengers for compensation, but excluding vehicles

16 providing taxicab service and having a capacity

17 of not more than 6 passengers and not operated

18 on a regular route or between specified places;

19 ‘‘(C) is designed or used to transport more

20 than 15 passengers, including the driver, and is

21 not used to transport passengers for compensa22 tion; or’’.

23 (e) SELF-INSURANCE RULES.—The Secretary of

24 Transportation shall continue to enforce the rules and reg25 ulations of the Interstate Commerce Commission, as in ef-
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1 fect on July 1, 1995, governing the qualifications for ap2 proval of a motor carrier as a self-insurer, until such time

3 as the Secretary finds it in the public interest to revise

4 such rules. The revised rules must provide for—

5 (1) continued ability of motor carriers to qualify

6 as self-insurers; and

7 (2) the continued qualification of all carriers

8 then so qualified under the terms and conditions set

9 by the Interstate Commerce Commission or Sec10 retary at the time of qualification.

11 (f) AUTOMOBILE TRANSPORTERS DEFINED.—The

12 Secretary of Transportation shall issue a regulation

13 amending the definition of automobile transporters under

14 part 658 of title 23, Code of Federal Regulations, to mean

15 any vehicle combination designed and used specifically for

16 the transport of assembled (capable of being driven) high17 way vehicles, race car transporters, or specialty trailers

18 designed for the racing industry with a 10-foot 1-inch

19 spread axle setting.

20 SEC. 105. CREDITABILITY OF ANNUAL LEAVE FOR PUR21 POSES OF MEETING MINIMUM ELIGIBILITY

22 REQUIREMENTS FOR AN IMMEDIATE ANNU23 ITY.

24 (a) IN GENERAL.—An employee of the Interstate

25 Commerce Commission who is separated from Govern-
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1 ment service pursuant to the abolition of that agency

2 under section 101 shall, upon appropriate written applica3 tion, be given credit, for purposes of determining eligibility

4 for and computing the amount of any annuity under sub5 chapter III of chapter 83 or chapter 84 of title 5, United

6 States Code, for accrued annual leave standing to such

7 employee’s credit at the time of separation.

8 (b) LIMITATION AND OTHER CONDITIONS.—Any reg9 ulations necessary to carry out this section shall be pre10 scribed by the Office of Personnel Management. Such reg11 ulations shall include provisions—

12 (1) defining the types of leave for which credit

13 may be given under this section (such definition to

14 be similar to the corresponding provisions of the reg15 ulations under section 351.608(c)(2) of title 5 of the

16 Code of Federal Regulations, as in effect on the date

17 of the enactment of this Act);

18 (2) limiting the amount of accrued annual leave

19 which may be used for the purposes specified in sub20 section (a) to the minimum period of time necessary

21 in order to permit such employee to attain first eligi22 bility for an immediate annuity under section 8336,

23 8412, or 8414 of title 5, United States Code (in a

24 manner similar to the corresponding provisions of

25 the regulations referred to in paragraph (1));
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1 (3) under which contributions (or arrangements

2 for the making of contributions) shall be made so

3 that—

4 (A) employee contributions for any period

5 of leave for which retirement credit may be ob6 tained under this section shall be made by the

7 employee; and

8 (B) Government contributions with respect

9 to such period shall similarly be made by the

10 Interstate Commerce Commission or other ap11 propriate officer or entity (out of appropriations

12 otherwise available for such contributions); and

13 (4) under which subsection (a) shall not apply

14 with respect to an employee who declines a reason15 able offer of employment in another position in the

16 Department of Transportation made under this Act

17 or any amendment made by this Act.

18 (c) EXTINGUISHMENT OF ELIGIBILITY FOR LUMP19 SUM PAYMENT.—A lump-sum payment under section

20 5551 of title 5, United States Code, shall not be payable

21 with respect to any leave for which retirement credit is

22 obtained under this section.
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1 TITLE II—TRANSPORTATION

2 ADJUDICATION PANEL

3 SEC. 201. TITLE 49 AMENDMENT.

4 (a) AMENDMENT.—Subtitle I of title 49, United

5 States Code, is amended by adding at the end the follow6 ing new chapter:

7 ‘‘CHAPTER 7—TRANSPORTATION

8 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. Administrative support.

‘‘726. Definitions.

9 ‘‘SUBCHAPTER I—ESTABLISHMENT

10 ‘‘§ 701. Establishment of Panel

11 ‘‘(a) ESTABLISHMENT.—There is hereby established

12 within the Department of Transportation the Transpor13 tation Adjudication Panel.

14 ‘‘(b) MEMBERSHIP.—(1) The Panel shall consist of

15 3 members, to be appointed by the President, by and with

16 the advice and consent of the Senate. Not more than 2

17 members may be appointed from the same political party.
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1 ‘‘(2) At any given time, at least 2 members of the

2 Panel shall be individuals with professional standing and

3 demonstrated knowledge in the fields of transportation or

4 transportation regulation, and at least one member shall

5 be an individual with professional or business experience

6 in the private sector.

7 ‘‘(3) The term of each member of the Panel shall be

8 5 years and shall begin when the term of the predecessor

9 of that member ends. An individual appointed to fill a va10 cancy occurring before the expiration of the term for which

11 the predecessor of that individual was appointed, shall be

12 appointed for the remainder of that term. When the term

13 of office of a member ends, the member may continue to

14 serve until a successor is appointed and qualified, but for

15 a period not to exceed one year. The President may re16 move a member for inefficiency, neglect of duty, or malfea17 sance in office.

18 ‘‘(4) On the effective date of this section, the mem19 bers of the Interstate Commerce Commission then serving

20 unexpired terms shall become members of the Panel, to

21 serve for a period of time equal to the remainder of the

22 term for which they were originally appointed to the Inter23 state Commerce Commission.

24 ‘‘(5) No individual may serve as a member of the

25 Panel for more than 2 terms. In the case of an individual
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1 who becomes a member of the Panel pursuant to para2 graph (4), or an individual appointed to fill a vacancy oc3 curring before the expiration of the term for which the

4 predecessor of that individual was appointed, such individ5 ual may not be appointed for more than one additional

6 term.

7 ‘‘(6) A member of the Panel may not have a pecu8 niary interest in, hold an official relation to, or own stock

9 in or bonds of, a carrier providing transportation by any

10 mode and may not engage in another business, vocation,

11 or employment.

12 ‘‘(7) A vacancy in the membership of the Panel does

13 not impair the right of the remaining members to exercise

14 all of the powers of the Panel. The Panel may designate

15 a member to act as Director during any period in which

16 there is no Director designated by the President.

17 ‘‘(c) DIRECTOR.—(1) There shall be at the head of

18 the Panel a Director, who shall be designated by the Presi19 dent from among the members of the Panel. The Director

20 shall receive compensation at the rate prescribed for level

21 III of the Executive Schedule under section 5314 of title

22 5.

23 ‘‘(2) Subject to the general policies, decisions, find24 ings, and determinations of the Panel the Director shall

25 be responsible for administering the Panel. The Director
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1 may delegate the powers granted under this paragraph to

2 an officer, employee, or office of the Panel. The Director

3 shall—

4 ‘‘(A) appoint and supervise, other than regular

5 and full time employees in the immediate offices of

6 another member, the officers and employees of the

7 Panel, including attorneys to provide legal aid and

8 service to the Panel and its members, and to rep9 resent the Panel in any case in court;

10 ‘‘(B) appoint the heads of offices with the ap11 proval of the Panel;

12 ‘‘(C) distribute Panel responsibilities among of13 ficers and employees and offices of the Panel;

14 ‘‘(D) prepare requests for appropriations for

15 the Panel and submit those requests to the Presi16 dent and Congress with the prior approval of the

17 Panel; and

18 ‘‘(E) supervise the expenditure of funds allo19 cated by the Panel for major programs and pur20 poses.

21 ‘‘§ 702. Functions

22 ‘‘Except as otherwise provided in the ICC Termi23 nation Act of 1995, or the amendments made thereby, the

24 Panel shall perform all functions that, immediately before

25 the effective date of such Act, were functions of the Inter-
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1 state Commerce Commission or were performed by any of2 ficer or employee of the Interstate Commerce Commission

3 in the capacity as such officer or employee.

4 ‘‘§ 703. Administrative provisions

5 ‘‘(a) EXECUTIVE REORGANIZATION.—Chapter 9 of

6 title 5, United States Code, shall apply to the Panel in

7 the same manner as it does to an independent regulatory

8 agency.

9 ‘‘(b) OPEN MEETINGS.—For purposes of section

10 552b of title 5, United States Code, the Panel shall be

11 deemed to be an agency.

12 ‘‘(c) INDEPENDENCE.—In the performance of their

13 functions, the members, employees, and other personnel

14 of the Panel shall not be responsible to or subject to the

15 supervision or direction of any officer, employee, or agent

16 of any other part of the Department of Transportation.

17 ‘‘(d) REPRESENTATION BY ATTORNEYS.—Attorneys

18 designated by the Director of the Panel may appear for,

19 and represent the Panel in, any civil action brought in con20 nection with any function carried out by the Panel pursu21 ant to this chapter or subtitle IV or as otherwise author22 ized by law.

23 ‘‘(e) ADMISSION TO PRACTICE.—Subject to section

24 500 of title 5, the Panel may regulate the admission of
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1 individuals to practice before it and may impose a reason2 able admission fee.

3 ‘‘(f) BUDGET REQUESTS.—In each annual request

4 for appropriations by the President, the Secretary of

5 Transportation shall identify the portion thereof intended

6 for the support of the Panel and include a statement by

7 the Panel—

8 ‘‘(1) showing the amount requested by the

9 Panel in its budgetary presentation to the Secretary

10 and the Office of Management and Budget; and

11 ‘‘(2) an assessment of the budgetary needs of

12 the Panel.

13 ‘‘(g) DIRECT TRANSMITTAL TO CONGRESS.—The

14 Panel shall transmit to Congress copies of budget esti15 mates, requests, and information (including personnel

16 needs), legislative recommendations, prepared testimony

17 for congressional hearings, and comments on legislation

18 at the same time they are sent to the Secretary of Trans19 portation. An officer of an agency may not impose condi20 tions on or impair communications by the Panel with Con21 gress, or a committee or member of Congress, about the

22 information.

23 ‘‘§ 704. Annual report

24 ‘‘The Panel shall annually transmit to the Congress

25 a report on its activities.
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1 ‘‘§ 705. Authorization of appropriations

2 ‘‘There are authorized to be appropriated to the Sec3 retary of Transportation for the activities of the Panel—

4 ‘‘(1) $8,421,000 for fiscal year 1996;

5 ‘‘(2) $12,000,000 for fiscal year 1997; and

6 ‘‘(3) $12,000,000 for fiscal year 1998.

7 ‘‘§ 706. Reporting official action

8 ‘‘(a) The Panel shall make a written report of each

9 proceeding conducted on complaint or on its own initiative

10 and furnish a copy to each party to that proceeding. The

11 report shall include the findings, conclusions, and the

12 order of the Panel and, if damages are awarded, the find13 ings of fact supporting the award. The Panel may have

14 its reports published for public use. A published report

15 of the Panel is competent evidence of its contents.

16 ‘‘(b)(1) When action of the Panel in a matter related

17 to a rail carrier is taken by the Panel, an individual mem18 ber of the Panel, or another individual or group of individ19 uals designated to take official action for the Panel, the

20 written statement of that action (including a report, order,

21 decision and order, vote, notice, letter, policy statements,

22 or regulation) shall indicate—

23 ‘‘(A) the official designation of the individual or

24 group taking the action;

25 ‘‘(B) the name of each individual taking, or

26 participating in taking, the action; and
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1 ‘‘(C) the vote or position of each participating

2 individual.

3 ‘‘(2) If an individual member of a group taking an

4 official action referred to in paragraph (1) of this sub5 section does not participate in it, the written statement

6 of the action shall indicate that the member did not par7 ticipate. An individual participating in taking an official

8 action is entitled to express the views of that individual

9 as part of the written statement of the action. In addition

10 to any publication of the written statement, it shall be

11 made available to the public under section 552(a) of title

12 5.

13 ‘‘SUBCHAPTER II—ADMINISTRATIVE

14 ‘‘§ 721. Powers

15 ‘‘(a) The Panel shall carry out this chapter and sub16 title IV. Enumeration of a power of the Panel in this chap17 ter or subtitle IV does not exclude another power the

18 Panel may have in carrying out this chapter or subtitle

19 IV. The Panel may prescribe regulations in carrying out

20 this chapter and subtitle IV.

21 ‘‘(b) The Panel may—

22 ‘‘(1) inquire into and report on the manage23 ment of the business of carriers providing, and bro24 kers for, transportation and services subject to sub25 title IV;
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1 ‘‘(2) inquire into and report on the manage2 ment of the business of a person controlling, con3 trolled by, or under common control with those car4 riers or brokers to the extent that the business of

5 that person is related to the management of the

6 business of that carrier or broker;

7 ‘‘(3) obtain from those carriers, brokers, and

8 persons information the Panel decides is necessary

9 to carry out subtitle IV; and

10 ‘‘(4) when necessary to prevent irreparable

11 harm, issue an appropriate order without regard to

12 subchapter II of chapter 5 of title 5.

13 ‘‘(c)(1) The Panel may subpoena witnesses and

14 records related to a proceeding of the Panel from any

15 place in the United States, to the designated place of the

16 proceeding. If a witness disobeys a subpoena, the Panel,

17 or a party to a proceeding before the Panel, may petition

18 a court of the United States to enforce that subpoena.

19 ‘‘(2) The district courts of the United States have

20 jurisdiction to enforce a subpoena issued under this sec21 tion. Trial is in the district in which the proceeding is con22 ducted. The court may punish a refusal to obey a sub23 poena as a contempt of court.

24 ‘‘(d)(1) In a proceeding, the Panel may take the testi25 mony of a witness by deposition and may order the witness
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1 to produce records. A party to a proceeding pending before

2 the Panel may take the testimony of a witness by deposi3 tion and may require the witness to produce records at

4 any time after a proceeding is at issue on petition and

5 answer.

6 ‘‘(2) If a witness fails to be deposed or to produce

7 records under paragraph (1) of this subsection, the Panel

8 may subpoena the witness to take a deposition, produce

9 the records, or both.

10 ‘‘(3) A deposition may be taken before a judge of a

11 court of the United States, a United States magistrate

12 judge, a clerk of a district court, or a chancellor, justice,

13 or judge of a supreme or superior court, mayor or chief

14 magistrate of a city, judge of a county court, or court of

15 common pleas of any State, or a notary public who is not

16 counsel or attorney of a party or interested in the proceed17 ing.

18 ‘‘(4) Before taking a deposition, reasonable notice

19 must be given in writing by the party or the attorney of

20 that party proposing to take a deposition to the opposing

21 party or the attorney of record of that party, whoever is

22 nearest. The notice shall state the name of the witness

23 and the time and place of taking the deposition.

24 ‘‘(5) The testimony of a person deposed under this

25 subsection shall be taken under oath. The person taking
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1 the deposition shall prepare, or cause to be prepared, a

2 transcript of the testimony taken. The transcript shall be

3 subscribed by the deponent.

4 ‘‘(6) The testimony of a witness who is in a foreign

5 country may be taken by deposition before an officer or

6 person designated by the Panel or agreed on by the parties

7 by written stipulation filed with the Panel. A deposition

8 shall be filed with the Panel promptly.

9 ‘‘(e) Each witness summoned before the Panel or

10 whose deposition is taken under this section and the indi11 vidual taking the deposition are entitled to the same fees

12 and mileage paid for those services in the courts of the

13 United States.

14 ‘‘§ 722. Panel action

15 ‘‘(a) Unless otherwise provided in subtitle IV, the

16 Panel may determine, within a reasonable time, when its

17 actions, other than an action ordering the payment of

18 money, take effect.

19 ‘‘(b) An action of the Panel remains in effect under

20 its own terms or until superseded. The Panel may change,

21 suspend, or set aside any such action on notice. Notice

22 may be given in a manner determined by the Panel. A

23 court of competent jurisdiction may suspend or set aside

24 any such action.
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1 ‘‘(c) The Panel may, at any time on its own initiative

2 because of material error, new evidence, or substantially

3 changed circumstances—

4 ‘‘(1) reopen a proceeding;

5 ‘‘(2) grant rehearing, reargument, or reconsid6 eration of an action of the Panel; or

7 ‘‘(3) change an action of the Panel.

8 An interested party may petition to reopen and reconsider

9 an action of the Panel under this subsection under regula10 tions of the Panel.

11 ‘‘(d) Notwithstanding subtitle IV, an action of the

12 Panel under this section is final on the date on which it

13 is served, and a civil action to enforce, enjoin, suspend,

14 or set aside the action may be filed after that date.

15 ‘‘§ 723. Service of notice in Panel proceedings

16 ‘‘(a) A carrier providing transportation subject to the

17 jurisdiction of the Panel under subtitle IV shall designate

18 an agent in the District of Columbia, on whom service of

19 notices in a proceeding before, and of actions of, the Panel

20 may be made.

21 ‘‘(b) A designation under subsection (a) of this sec22 tion shall be in writing and filed with the Panel.

23 ‘‘(c) Except as otherwise provided, notices of the

24 Panel shall be served on its designated agent at the office

25 or usual place of residence in the District of Columbia of
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1 that agent. A notice of action of the Panel shall be served

2 immediately on the agent or in another manner provided

3 by law. If that carrier does not have a designated agent,

4 service may be made by posting the notice in the office

5 of the Panel.

6 ‘‘(d) In a proceeding involving the lawfulness of clas7 sifications, rates, or practices of a rail carrier that has

8 not designated an agent under this section, service of no9 tice of the Panel on an attorney in fact for the carrier

10 constitutes service of notice on the carrier.

11 ‘‘§ 724. Service of process in court proceedings

12 ‘‘(a) A carrier providing transportation subject to the

13 jurisdiction of the Panel under subtitle IV shall designate

14 an agent in the District of Columbia on whom service of

15 process in an action before a district court may be made.

16 Except as otherwise provided, process in an action before

17 a district court shall be served on the designated agent

18 of that carrier at the office or usual place of residence

19 in the District of Columbia of that agent. If the carrier

20 does not have a designated agent, service may be made

21 by posting the notice in the office of the Panel.

22 ‘‘(b) A designation under this section may be changed

23 at any time in the same manner as originally made.
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1 ‘‘§ 725. Administrative support

2 ‘‘The Secretary of Transportation shall provide ap3 propriate administrative support for the Panel.

4 ‘‘§ 726. Definitions

5 ‘‘All terms used in this chapter that are defined in

6 subtitle IV shall have the meaning given those terms in

7 that subtitle.’’.

8 (b) TABLE OF CHAPTERS AMENDMENT.—The table

9 of chapters of subtitle I of title 49, United States Code,

10 is amended by adding at the end the following new item:

‘‘7. TRANSPORTATION ADJUDICATION PANEL ................... 701’’.

11 SEC. 202. REORGANIZATION.

12 The Director of the Transportation Adjudication

13 Panel (in this Act referred to as the ‘‘Panel’’) may allocate

14 or reallocate any function of the Panel, consistent with

15 this title and subchapter I of chapter 7, as amended by

16 section 201 of this title, among the members or employees

17 of the Panel, and may establish, consolidate, alter, or dis18 continue in the Panel any organizational entities that were

19 entities of the Interstate Commerce Commission, as the

20 Director considers necessary or appropriate.

21 SEC. 203. TRANSFER OF ASSETS.

22 Except as otherwise provided in this Act and the

23 amendments made by this Act, so much of the personnel,

24 property, records, and unexpended balances of appropria25 tions, allocations, and other funds employed, used, held,
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1 available, or to be made available in connection with a

2 function transferred to the Panel or the Secretary by this

3 Act shall be available to the Panel or the Secretary at such

4 time and to such extent as the President directs for use

5 in connection with the functions transferred.

6 SEC. 204. SAVING PROVISIONS.

7 (a) LEGAL DOCUMENTS.—All orders, determinations,

8 rules, regulations, permits, grants, loans, contracts, agree9 ments, certificates, licenses, and privileges—

10 (1) that have been issued, made, granted, or al11 lowed to become effective by the President, the

12 Interstate Commerce Commission, any officer or em13 ployee of the Interstate Commerce Commission, or

14 any other Government official, or by a court of com15 petent jurisdiction, in the performance of any func16 tion that is transferred by this Act or the amend17 ments made by this Act; and

18 (2) that are in effect on the effective date of

19 such transfer (or become effective after such date

20 pursuant to their terms as in effect on such effective

21 date),

22 shall continue in effect according to their terms until

23 modified, terminated, superseded, set aside, or revoked in

24 accordance with law by the President, the Panel, any other

25 authorized official, a court of competent jurisdiction, or
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1 operation of law. The Panel shall promptly rescind all reg2 ulations established by the Interstate Commerce Commis3 sion that are based on provisions of law repealed and not

4 substantively reenacted by this Act.

5 (b) PROCEEDINGS.—(1) Except as provided in para6 graph (2), the Panel shall assume responsibility for the

7 continuation of all proceedings pending before the Inter8 state Commerce Commission, and shall complete such pro9 ceedings in accordance with law and regulations as in ef10 fect before the date of the enactment of this Act.

11 (2) In the case of a proceeding under a provision of

12 law repealed, and not reenacted, by this Act, such proceed13 ing shall be terminated.

14 (c) SUITS.—(1) This Act shall not affect suits com15 menced before the date of the enactment of this Act, ex16 cept that the Panel shall assume the position of the Inter17 state Commerce Commission, and, except as provided in

18 paragraph (2), in all such suits, proceeding shall be had,

19 appeals taken, and judgments rendered in the same man20 ner and with the same effect as if this Act had not been

21 enacted.

22 (2) If the court in a suit described in paragraph (1)

23 remands a case to the Panel, subsequent proceedings re24 lated to such case shall proceed in accordance with appli-
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1 cable law and regulations as in effect at the time of such

2 subsequent proceedings.

3 (d) EXERCISE OF AUTHORITIES.—Except as other4 wise provided by law, an officer or employee of the Panel

5 may, for purposes of performing a function transferred by

6 this Act or the amendments made by this Act, exercise

7 all authorities under any other provision of law that were

8 available with respect to the performance of that function

9 to the official responsible for the performance of the func10 tion immediately before the effective date of the transfer

11 of the function under this Act or the amendments made

12 by this Act.

13 SEC. 205. REFERENCES.

14 Any reference to the Interstate Commerce Commis15 sion in any other Federal law, Executive order, rule, regu16 lation, or delegation of authority, or any document of or

17 pertaining to the Interstate Commerce Commission or an

18 officer or employee of the Interstate Commerce Commis19 sion, is deemed to refer to the Panel or a member or em20 ployee of the Panel, as appropriate.
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1 TITLE III—CONFORMING

2 AMENDMENTS

3 Subtitle A—Amendments to United

4 States Code

5 SEC. 301. TITLE 5 AMENDMENTS.

6 (a) COMPENSATION FOR POSITIONS AT LEVEL III.—

7 Section 5314 of title 5, United States Code, is amended

8 by striking ‘‘Chairman, Interstate Commerce Commis9 sion.’’ and inserting in lieu thereof ‘‘Director, Transpor10 tation Adjudication Panel.’’.

11 (b) COMPENSATION FOR POSITIONS AT LEVEL IV.—

12 Section 5315 of title 5, United States Code, is amended

13 by striking ‘‘Members, Interstate Commerce Commis14 sion.’’ and inserting in lieu thereof ‘‘Members, Transpor15 tation Adjudication Panel.’’.

16 SEC. 302. TITLE 11 AMENDMENTS.

17 Subchapter IV of chapter 11 of title 11, United

18 States Code, is amended—

19 (1) by amending section 1162 to read as fol20 lows:

21 ‘‘§ 1162. Definition

22 ‘‘In this subchapter, ‘Panel’ means the ‘Transpor23 tation Adjudication Panel’.’’; and

24 (2) by striking ‘‘Commission’’ each place it ap25 pears and inserting in lieu thereof ‘‘Panel’’.
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1 SEC. 303. TITLE 18 AMENDMENT.

2 Section 6001(1) of title 18, United States Code, is

3 amended by striking ‘‘Interstate Commerce Commission’’

4 and inserting in lieu thereof ‘‘Transportation Adjudication

5 Panel’’.

6 SEC. 304. INTERNAL REVENUE CODE OF 1986 AMEND7 MENTS.

8 (a) SECTION 3231.—Section 3231 of the Internal

9 Revenue Code of 1986 is amended—

10 (1) by striking ‘‘Interstate Commerce Commis11 sion’’ in subsection (a) and inserting in lieu thereof

12 ‘‘Transportation Adjudication Panel’’; and

13 (2) by striking ‘‘an express carrier, sleeping car

14 carrier, or’’ in subsection (g) and inserting in lieu

15 thereof ‘‘a’’.

16 (b) SECTION 7701.—Section 7701 of the Internal

17 Revenue Code of 1986 is amended—

18 (1) in paragraph (33)(B), by striking ‘‘Federal

19 Power Commission’’ and inserting in lieu thereof

20 ‘‘Federal Energy Regulatory Commission’’;

21 (2) in paragraph (33)(C)(i), by striking ‘‘Inter22 state Commerce Commission’’ and inserting in lieu

23 thereof ‘‘Transportation Adjudication Panel’’;

24 (3) in paragraph (33)(C)(ii), by striking ‘‘Inter25 state Commerce Commission’’ and inserting in lieu

26 thereof ‘‘Federal Energy Regulatory Commission’’;
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1 (4) in paragraph (33)(F), by striking ‘‘Inter2 state Commerce Commission under subchapter III of

3 chapter 105’’ and inserting in lieu thereof ‘‘Trans4 portation Adjudication Panel under subchapter II of

5 chapter 135’’;

6 (5) in paragraph (33)(G), by striking ‘‘sub7 chapter I of chapter 105’’ and inserting in lieu

8 thereof ‘‘part A of subtitle IV’’; and

9 (6) in paragraph (33)(H), by striking ‘‘sub10 chapter I of chapter 105’’ and inserting in lieu

11 thereof ‘‘part A of subtitle IV’’.

12 SEC. 305. TITLE 28 AMENDMENTS.

13 (a) CHAPTER 157 AMENDMENTS.—(1) Chapter 157

14 of title 28, United States Code, is amended—

15 (A) by striking ‘‘INTERSTATE COM16 MERCE COMMISSION’’ in the chapter head17 ing and inserting in lieu thereof ‘‘TRANSPOR18 TATION ADJUDICATION PANEL’’;

19 (B) by striking ‘‘Commission’s’’ in the sec20 tion heading of section 2321 and inserting in lieu

21 thereof ‘‘Panel’s’’;

22 (C) by striking ‘‘Interstate Commerce Commis23 sion’’ each place it appears and inserting in lieu

24 thereof ‘‘Transportation Adjudication Panel’’; and
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1 (D) by striking ‘‘Commission’’ each place it ap2 pears and inserting in lieu thereof ‘‘Panel’’.

3 (2)(A) The item relating to chapter 157 in the table

4 of chapters of title 28, United States Code, is amended

5 by striking ‘‘Interstate Commerce Commission’’ and in6 serting in lieu thereof ‘‘Transportation Adjudication

7 Panel’’.

8 (B) The item relating to section 2321 in the table

9 of sections of chapter 157 of title 28, United States Code,

10 is amended by striking ‘‘Commission’s’’ and inserting in

11 lieu thereof ‘‘Panel’s’’.

12 (b) CHAPTER 158 AMENDMENTS.—Chapter 158 of

13 title 28, United States Code, is amended—

14 (1) by striking ‘‘the Interstate Commerce Com15 mission,’’ in section 2341(3)(A);

16 (2) by striking ‘‘and’’ at the end of section

17 2341(3)(C);

18 (3) by striking the period at the end of section

19 2341(3)(D) and inserting in lieu thereof ‘‘; and’’;

20 (4) by inserting at the end of section 2341(3)

21 the following new subparagraph:

22 ‘‘(E) the Panel, when the order was en23 tered by the Transportation Adjudication

24 Panel.’’; and

25 (5) in section 2342, by—
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1 (A) inserting ‘‘or pursuant to part B of

2 subtitle IV of title 49, United States Code’’ be3 fore the semicolon at the end of paragraph

4 (3)(A); and

5 (B) striking paragraph (5) and inserting

6 the following:

7 ‘‘(5) all rules, regulations, or final orders of the

8 Transportation Adjudication Panel made reviewable

9 by section 2321 of this title; and’’.

10 SEC. 306. TITLE 39 AMENDMENTS.

11 Title 39, United States Code, is amended—

12 (1) in section 5005(a)(4) by striking ‘‘5201(7)’’

13 and inserting ‘‘5201(6)’’;

14 (2) in section 5005(b)(3), by striking ‘‘Inter15 state Commerce Commission’’ and inserting in lieu

16 thereof ‘‘Transportation Adjudication Panel’’; and

17 (3) in chapter 52—

18 (A) by amending paragraph (1) of section

19 5201 to read as follows:

20 ‘‘(1) ‘Panel’ means the Transportation Adju21 dication Panel;’’;

22 (B) in section 5201(2) by striking ‘‘a

23 motor common carrier, or express carrier’’ and

24 inserting ‘‘or a motor carrier’’;

25 (C) in section 5201(4)—
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1 (i) by striking ‘‘common’’; and

2 (ii) by striking ‘‘permit’’ and inserting

3 ‘‘registration’’;

4 (D) in section 5201(5)—

5 (i) by striking ‘‘common’’ each place

6 it appears;

7 (ii) by striking ‘‘10102(14)’’ and in8 serting ‘‘13102(11)’’; and

9 (iii) by striking ‘‘certificate of public

10 convenience and necessity’’ and inserting

11 ‘‘registration’’;

12 (E) by striking paragraph (6);

13 (F) by redesignating paragraphs (7) and

14 (8) as paragraphs (6) and (7), respectively;

15 (G) in section 5201(6), as so redesignated,

16 by striking ‘‘certificate of public convenience

17 and necessity’’ and inserting ‘‘certificate or reg18 istration;

19 (H) by striking subsection (f) of section

20 5203, and redesignating subsection (g) of such

21 section as subsection (f);

22 (I) in subsection (f) of section 5203, as so

23 redesignated by subparagraph (H) of this para24 graph—
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1 (i) by striking ‘‘Commission’’ and in2 serting ‘‘Panel’’; and

3 (ii) by striking ‘‘motor common car4 rier’’ each place it appears and inserting

5 ‘‘motor carrier;

6 (J) by striking ‘‘Interstate Commerce

7 Commission’’ in the section heading of sec8 tion 5207 and inserting in lieu thereof

9 ‘‘Transportation Adjudication Panel’’;

10 (K) by striking ‘‘Commission’s’’ in sections

11 5208(a) and 5215(a) and inserting in lieu

12 thereof ‘‘Panel’s’’;

13 (L) by striking ‘‘Commission’’ each place it

14 appears and inserting in lieu thereof ‘‘Panel’’;

15 (M) in the item relating to section 5207 in

16 the table of sections, by striking ‘‘Interstate

17 Commerce Commission’’ and inserting in lieu

18 thereof ‘‘Transportation Adjudication Panel’’;

19 and

20 (N) in section 5215(a) by striking ‘‘motor

21 common carrier’’ and inserting ‘‘motor carrier’’.

22 SEC. 307. TITLE 49 AMENDMENTS.

23 Title 49, United States Code, is amended—
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1 (1) in section 22106(e)(1) by striking ‘‘an ap2 plication for abandonment of’’ and inserting in lieu

3 thereof ‘‘a notice of intent to abandon’’; and

4 (2) by repealing subsection (d) of section

5 24705.

6 Subtitle B—Other Amendments

7 SEC. 311. AGRICULTURAL ADJUSTMENT ACT OF 1938

8 AMENDMENT.

9 Section 201 of the Agricultural Adjustment Act of

10 1938 (7 U.S.C. 1291) is amended—

11 (1) by striking ‘‘Interstate Commerce Commis12 sion’’ each place it appears and inserting in lieu

13 thereof ‘‘Transportation Adjudication Panel’’;

14 (2) by striking ‘‘Commission’’ each place it ap15 pears and inserting in lieu thereof ‘‘Panel’’; and

16 (3) by striking ‘‘Commission’s’’ in subsection

17 (b) and inserting in lieu thereof ‘‘Panel’s’’.

18 SEC. 312. ANIMAL WELFARE ACT AMENDMENT.

19 Section 15(a) of the Animal Welfare Act (7 U.S.C.

20 2145(a)) is amended by striking ‘‘Interstate Commerce

21 Commission’’ and inserting in lieu thereof ‘‘Transpor22 tation Adjudication Panel’’.
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1 SEC. 313. FEDERAL ELECTION CAMPAIGN ACT OF 1971

2 AMENDMENTS.

3 Section 401 of the Federal Election Campaign Act

4 of 1971 is amended—

5 (1) by striking ‘‘Interstate Commerce Commis6 sion shall each promulgate, within ninety days after

7 the date of enactment of this Act’’ and inserting in

8 lieu thereof ‘‘Transportation Adjudication Panel

9 shall each maintain’’; and

10 (2) by inserting ‘‘or Panel’’ after ‘‘or such Com11 mission’’.

12 SEC. 314. FAIR CREDIT REPORTING ACT AMENDMENT.

13 Section 621(b)(4) of the Fair Credit Reporting Act

14 (15 U.S.C. 1681s(b)(4)) is amended by striking ‘‘Inter15 state Commerce Commission with respect to any common

16 carrier subject to those Acts’’ and inserting in lieu thereof

17 ‘‘Secretary of Transportation, with respect to all carriers

18 subject to the jurisdiction of the Transportation Adjudica19 tion Panel’’.

20 SEC. 315. EQUAL CREDIT OPPORTUNITY ACT AMENDMENT.

21 Section 704(a)(4) of the Equal Credit Opportunity

22 Act (15 U.S.C. 1691c(a)(4)) is amended by striking

23 ‘‘Interstate Commerce Commission with respect to any

24 common carrier subject to those Acts’’ and inserting in

25 lieu thereof ‘‘Secretary of Transportation, with respect to
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1 all carriers subject to the jurisdiction of the Transpor2 tation Adjudication Panel’’.

3 SEC. 316. FAIR DEBT COLLECTION PRACTICES ACT AMEND4 MENT.

5 Section 814(b)(4) of the Fair Debt Collection Prac6 tices Act (15 U.S.C. 1692l(b)(4)) is amended by striking

7 ‘‘Interstate Commerce Commission with respect to any

8 common carrier subject to those Acts’’ and inserting in

9 lieu thereof ‘‘Secretary of Transportation, with respect to

10 all carriers subject to the jurisdiction of the Transpor11 tation Adjudication Panel’’.

12 SEC. 317. NATIONAL TRAILS SYSTEM ACT AMENDMENTS.

13 The National Trails System Act is amended—

14 (1) in section 8(d)—

15 (A) by striking ‘‘Chairman of the Inter16 state Commerce Commission’’ and inserting in

17 lieu thereof ‘‘Director of the Transportation

18 Adjudication Panel’’; and

19 (B) by striking ‘‘Commission’’ and insert20 ing in lieu thereof ‘‘Panel’’; and

21 (2) in section 9(b), by striking ‘‘Interstate

22 Commerce Commission’’ and inserting in lieu thereof

23 ‘‘Transportation Adjudication Panel’’.

24 SEC. 318. CLAYTON ACT AMENDMENTS.

25 The Clayton Act is amended—
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1 (1) in section 7 (15 U.S.C. 18)—

2 (A) by striking ‘‘Interstate Commerce

3 Commission’’ and inserting in lieu thereof

4 ‘‘Transportation Adjudication Panel’’; and

5 (B) by inserting ‘‘, Panel,’’ after ‘‘vesting

6 such power in such Commission’’;

7 (2) in section 11(a) (15 U.S.C. 21(a)), by strik8 ing ‘‘Interstate Commerce Commission where appli9 cable to common carriers subject to the Interstate

10 Commerce Act, as amended’’ and inserting in lieu

11 thereof ‘‘Transportation Adjudication Panel where

12 applicable to common carriers subject to subtitle IV

13 of title 49, United States Code’’; and

14 (3) in section 16 (15 U.S.C. 22), by striking

15 ‘‘in equity for injunctive relief’’ and all that follows

16 through ‘‘Interstate Commerce Commission’’ and in17 serting in lieu thereof ‘‘for injunctive relief against

18 any common carrier subject to the jurisdiction of the

19 Transportation Adjudication Panel under subtitle IV

20 of title 49, United States Code’’.

21 SEC. 319. INSPECTOR GENERAL ACT OF 1978 AMENDMENT.

22 Section 8G(a)(2) of the Inspector General Act of

23 1978 (5 U.S.C. App.) is amended by striking ‘‘the Inter24 state Commerce Commission,’’.
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1 SEC. 320. ENERGY POLICY ACT OF 1992 AMENDMENTS.

2 Subsections (a) and (d) of section 1340 of the Energy

3 Policy Act of 1992 (42 U.S.C. 13369(a) and (d)) are

4 amended by striking ‘‘Interstate Commerce Commission’’

5 and inserting in lieu thereof ‘‘Transportation Adjudication

6 Panel’’.

7 SEC. 321. MERCHANT MARINE ACT, 1920, AMENDMENTS

8 The Merchant Marine Act, 1920, is amended—

9 (1) in section 8 (46 U.S.C. App. 867)—

10 (A) by striking ‘‘Interstate Commerce

11 Commission’’ both places it appears and insert12 ing in lieu thereof ‘‘Transportation Adjudica13 tion Panel’’; and

14 (B) by striking ‘‘commission’’ and insert15 ing in lieu thereof ‘‘Panel’’; and

16 (2) in section 28 (46 U.S.C. App. 884)—

17 (A) by striking ‘‘Interstate Commerce

18 Commission’’ and inserting in lieu thereof

19 ‘‘Transportation Adjudication Panel’’; and

20 (B) by striking ‘‘commission’’ each place it

21 appears and inserting in lieu thereof ‘‘Panel’’.

22 SEC. 322. RAILWAY LABOR ACT AMENDMENTS.

23 Section 1 of the Railway Labor Act (45 U.S.C. 151)

24 is amended—

25 (1) by striking ‘‘express company, sleeping-car

26 company, carrier by railroad, subject to the Inter-
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1 state Commerce Act’’ in the first paragraph and in2 serting in lieu thereof ‘‘railroad subject to the juris3 diction of the Transportation Adjudication Panel’’;

4 (2) by striking ‘‘Interstate Commerce Commis5 sion’’ each place it appears in the first and fifth

6 paragraphs and inserting in lieu thereof ‘‘Transpor7 tation Adjudication Panel’’; and

8 (3) by striking ‘‘Commission’’ each place it ap9 pears in the fifth paragraph and inserting in lieu

10 thereof ‘‘Panel’’.

11 SEC. 323. RAILROAD RETIREMENT ACT OF 1974 AMEND12 MENTS.

13 Section 1 of the Railroad Retirement Act of 1974 (45

14 U.S.C. 231) is amended—

15 (1) by amending subsection (a)(1)(i) to read as

16 follows:

17 ‘‘(i) any carrier by railroad subject to the juris18 diction of the Transportation Adjudication Panel

19 under part A of subtitle IV of title 49, United States

20 Code;’’;

21 (2) by striking ‘‘Interstate Commerce Commis22 sion is hereby authorized and directed upon request

23 of the Board’’ in subsection (a)(2)(ii) and inserting

24 in lieu thereof ‘‘Transportation Adjudication Panel
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1 is hereby authorized and directed upon request of

2 the Railroad Retirement Board’’; and

3 (3) by inserting ‘‘the Transportation Adjudica4 tion Panel,’’ after ‘‘the Interstate Commerce Com5 mission,’’ in subsection (o).

6 SEC. 324. RAILROAD UNEMPLOYMENT INSURANCE ACT

7 AMENDMENTS.

8 The Railroad Unemployment Insurance Act is

9 amended—

10 (1) by striking ‘‘Interstate Commerce Commis11 sion is hereby authorized and directed upon request

12 of the Board’’ in section 1(a) (45 U.S.C. 351(a))

13 and inserting in lieu thereof ‘‘Transportation Adju14 dication Panel is hereby authorized and directed

15 upon request of the Railroad Retirement Board’’;

16 (2) by amending paragraph (b) of such section

17 1 to read as follows:

18 ‘‘(b) The term ‘carrier’ means a railroad subject to

19 the jurisdiction of the Transportation Adjudication Panel

20 under part A of subtitle IV of title 49, United States

21 Code.’’;

22 and

23 (3) by striking ‘‘Interstate Commerce Commis24 sion, adjusted, as determined by the Board’’ in sec25 tion 2(h)(3) (45 U.S.C. 352(h)(3)) and inserting in
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1 lieu thereof ‘‘Transportation Adjudication Panel, ad2 justed, as determined by the Railroad Retirement

3 Board’’.

4 SEC. 325. EMERGENCY RAIL SERVICES ACT OF 1970 AMEND5 MENTS.

6 The Emergency Rail Services Act of 1970 is amend7 ed—

8 (1) by amending paragraph (2) of section 2 (45

9 U.S.C. 661(2)) to read as follows:

10 ‘‘(2) ‘Panel’ means the Transportation Adjudication

11 Panel.’’;

12 (2) by striking ‘‘Interstate Commerce Commis13 sion’’ in section 6(a) (45 U.S.C. 665(a)) and insert14 ing in lieu thereof ‘‘Panel’’; and

15 (3) by striking ‘‘Commission’’ each place it ap16 pears and inserting in lieu thereof ‘‘Panel’’.

17 SEC. 326. ALASKA RAILROAD TRANSFER ACT OF 1982

18 AMENDMENTS.

19 Section 608 of the Alaska Railroad Transfer Act of

20 1982 (45 U.S.C. 1207) is amended—

21 (1) by striking ‘‘Interstate Commerce Commis22 sion’’ each place it appears and inserting in lieu

23 thereof ‘‘Transportation Adjudication Panel’’; and

24 (2) by striking ‘‘Commission’’ in subsection (b)

25 and inserting in lieu thereof ‘‘Panel’’.
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1 SEC. 327. REGIONAL RAIL REORGANIZATION ACT OF 1973

2 AMENDMENTS.

3 The Regional Rail Reorganization Act of 1973 is

4 amended—

5 (1) in section 304(d)(3) (45 U.S.C.

6 744(d)(3))—

7 (A) by striking ‘‘this title,’’ and all that

8 follows through ‘‘(A) shall take’’ and inserting

9 in lieu thereof ‘‘this title, the Commission shall

10 take’’; and

11 (B) by striking ‘‘this subsection; and’’ and

12 all that follows through ‘‘205(d)(6) of this Act’’

13 and inserting in lieu thereof ‘‘this subsection’’;

14 and

15 (2) in section 707 (45 U.S.C. 797f)—

16 (A) by inserting ‘‘(a)’’ at the beginning of

17 the text; and

18 (B) by adding at the end the following new

19 subsections:

20 ‘‘(b) Notwithstanding any other provision of this Act

21 or any agreement or arrangement in effect as of the date

22 of the enactment of this subsection, the Corporation may

23 not sell or transfer ownership or management, in whole

24 or in part, of any facility acquired by the Corporation

25 under this Act that is used for the repair, rehabilitation,

26 or maintenance of cars or locomotives, without first ob-
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1 taining the expess consent of the authorized representa2 tives of the employees at such facility covered by collective

3 bargaining agreements. Any transaction undertaken in

4 violation of this subsection or subsection (c) shall be con5 sidered in violation of section 6 of the Railway Labor Act,

6 and shall be actionable as such.

7 ‘‘(c) Notwithstanding any other provision of this Act

8 or any agreement or arrangement in effect as of the date

9 of the enactment of this subsection, any transfer by the

10 Corporation of ownership, in whole or in part, other than

11 for scrappage, of a car or locomotive that was repaired,

12 rehabilitated, or maintained, before the date of the enact13 ment of this subsection, at a facility acquired by the Cor14 poration under this Act, without first obtaining the ex15 press consent of the authorized representatives of the em16 ployees at the Corporation’s principal maintenance facility

17 covered by collective bargaining agreements, is prohib18 ited.’’.

19 SEC. 328. MILWAUKEE RAILROAD RESTRUCTURING ACT

20 AMENDMENT.

21 Section 18 of the Milwaukee Railroad Restructuring

22 Act (45 U.S.C. 916) is repealed.
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1 SEC. 329. ROCK ISLAND RAILROAD TRANSITION AND EM2 PLOYEE ASSISTANCE ACT AMENDMENTS.

3 The Rock Island Railroad Transition and Employee

4 Assistance Act is amended—

5 (1) in section 104(a) (45 U.S.C. 1003(a)) by

6 striking ‘‘section 11125 of title 49, United States

7 Code, or’’; and

8 (2) by repealing section 120 (45 U.S.C. 1015).

9 SEC. 330. RAILROAD REVITALIZATION AND REGULATORY

10 REFORM ACT OF 1976 AMENDMENTS.

11 The Railroad Revitalization and Regulatory Reform

12 Act of 1976 is amended—

13 (1) in section 505(a)(3) (45 U.S.C.

14 825(a)(3))—

15 (A) by striking ‘‘A financially responsible

16 person (as defined in section 10910(a)(1) of

17 title 49, United States Code)’’ and inserting in

18 lieu thereof ‘‘(A) A financially responsible per19 son’’; and

20 (B) by inserting at the end the following

21 new subparagraph:

22 ‘‘(B) For purposes of this paragraph, the term ‘finan23 cially responsible person’ means a person who (i) is capa24 ble of paying the constitutional minimum value of the rail25 road line proposed to be acquired, and (ii) is able to assure

26 that adequate transportation will be provided over such
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1 line for a period of not less than 3 years. Such term in2 cludes a governmental authority but does not include a

3 class I or class II rail carrier.’’;

4 (2) in section 509(b) (45 U.S.C. 829(b)) by

5 striking paragraph (2); and

6 (3) in section 510 (45 U.S.C. 830) by striking

7 ‘‘the provisions of section 20a of the Interstate Com8 merce Act (49 U.S.C. 20a), nor’’.

9 SEC. 331. SERVICE CONTRACT ACT OF 1965 AMENDMENT.

10 Section 7(3) of the Service Contract Act of 1965 (41

11 U.S.C. 356(3)) is amended by striking ‘‘where published

12 tariff rates are in effect’’.

13 SEC. 332. FISCAL YEAR 1982 CONTINUING RESOLUTION

14 AMENDMENT.

15 Section 115 of the Joint Resolution entitled ‘‘Joint

16 Resolution making further continuing appropriations for

17 the fiscal year 1982, and for other purposes’’ (Public Law

18 97–92; 95 Stat. 1196) is repealed.

19 SEC. 333. MIGRANT AND SEASONAL AGRICULTURAL WORK20 ER PROTECTION ACT.

21 Section 401(b) of the Migrant and Seasonal Agricul22 tural Worker Protection Act (29 U.S.C. 1841(b)) is

23 amended by—

24 (1) striking ‘‘part II of the Interstate Com25 merce Act (49 U.S.C. 301 et seq.), or any successor
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1 provision of’’ in paragraph (2)(C) and inserting

2 ‘‘part B of’’; and

3 (2) striking ‘‘common carriers of passengers

4 under part II of the Interstate Commerce Act (49

5 U.S.C. 301 et seq.), and any successor provision of’’

6 in paragraph (3) and inserting ‘‘carriers of pas7 sengers under part B of’’.

8 SEC. 334. FEDERAL AVIATION ADMINISTRATION AUTHOR9 IZATION ACT OF 1994.

10 Section 601(d) of the Federal Aviation Administra11 tion Authorization Act of 1994 (Public Law 103–305) is

12 amended by striking all after ‘‘subsection (c)’’ and insert13 ing ‘‘shall not take effect as long as section 14501(b)(2)

14 of title 49, United States Code, applies to that State.’’.

15 SEC. 335. TERMINATION OF CERTAIN MARITIME AUTHOR16 ITY.

17 (a) REPEAL OF INTERCOASTAL SHIPPING ACT,

18 1933.—The Act of March 3, 1933 (Chapter 199; 46 App.

19 U.S.C. 843 et seq.), commonly referred to as the

20 Intercoastal Shipping Act, 1933, is repealed effective Sep21 tember 30, 1996.

22 (b) REPEAL OF PROVISIONS OF SHIPPING ACT,

23 1916.—The following provisions of the Shipping Act,

24 1916, are repealed effective September 30, 1996:

25 (1) Section 3 (46 U.S.C. App. 804).
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1 (2) Section 14 (46 U.S.C. App. 812).

2 (3) Section 15 (46 U.S.C. App. 814).

3 (4) Section 16 (46 U.S.C. App. 815).

4 (5) Section 17 (46 U.S.C. App. 816).

5 (6) Section 18 (46 U.S.C. App. 817).

6 (7) Section 19 (46 U.S.C. App. 818).

7 (8) Section 20 (46 U.S.C. App. 819).

8 (9) Section 21 (46 U.S.C. App. 820).

9 (10) Section 22 (46 U.S.C. App. 821).

10 (11) Section 23 (46 U.S.C. App. 822).

11 (12) Section 24 (46 U.S.C. App. 823).

12 (13) Section 25 (46 U.S.C. App. 824).

13 (14) Section 27 (46 U.S.C. App. 826).

14 (15) Section 29 (46 U.S.C. App. 828).

15 (16) Section 30 (46 U.S.C. App. 829).

16 (17) Section 31 (46 U.S.C. App. 830).

17 (18) Section 32 (46 U.S.C. App. 831).

18 (19) Section 33 (46 U.S.C. App. 832).

19 (20) Section 35 (46 U.S.C. App. 833a).

20 (21) Section 43 (46 U.S.C. App. 841a).

21 (22) Section 45 (46 U.S.C. App. 841c).
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1 SEC. 336. DEPARTMENT OF TRANSPORTATION AND RELAT2 ED AGENCIES APPROPRIATION ACT, 1982

3 AMENDMENT.

4 Section 402 of the Department of Transportation and

5 Related Agencies Appropriation Act, 1982 (Public Law

6 97–102; 95 Stat. 1465) is repealed.

Passed the House of Representatives November 14,

1995.

Attest: ROBIN H. CARLE,

Clerk.

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