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[104th Congress Public Law 88]
[From the U.S. Government Printing Office]

<DOC>
[DOCID: f:publ88.104]

[[Page 109 STAT. 803]]

Public Law 104-88
104th Congress

                                 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. <<NOTE: Dec. 29, 1995 -  [H.R. 
                                2539]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: ICC Termination 
Act of 1995. Government organization.>> 

SECTION 1. <<NOTE: 49 USC 101 note.>> SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``ICC Termination Act 
of 1995''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Effective date.

          TITLE I--ABOLITION OF INTERSTATE COMMERCE COMMISSION

Sec. 101. Abolition.
Sec. 102. Rail provisions.
Sec. 103. Motor carrier, water carrier, and freight forwarder 
                    provisions.
Sec. 104. Miscellaneous motor carrier provisions.
Sec. 105. Creditability of annual leave for purposes of meeting minimum 
                    eligibility requirements for an immediate annuity.
Sec. 106. Pipeline carrier provisions.

                 TITLE II--SURFACE TRANSPORTATION BOARD

Sec. 201. Title 49 amendment.
Sec. 202. Reorganization.
Sec. 203. Transfer of assets and personnel.
Sec. 204. Saving provisions.
Sec. 205. References.

                    TITLE III--CONFORMING AMENDMENTS

              Subtitle A--Amendments to United States Code

Sec. 301. Title 5 amendments.
Sec. 302. Title 11 amendments.
Sec. 303. Title 18 amendments.
Sec. 304. Internal Revenue Code of 1986 amendments.
Sec. 305. Title 28 amendments.
Sec. 306. Title 31 amendments.
Sec. 307. Title 39 amendments.
Sec. 308. Title 49 amendments.

                      Subtitle B--Other Amendments

Sec. 311. Agricultural Adjustment Act of 1938 amendments.
Sec. 312. Animal Welfare Act amendment.
Sec. 313. Federal Election Campaign Act of 1971 amendments.
Sec. 314. Fair Credit Reporting Act amendment.
Sec. 315. Equal Credit Opportunity Act amendment.
Sec. 316. Fair Debt Collection Practices Act amendment.
Sec. 317. National Trails System Act amendments.
Sec. 318. Clayton Act amendments.
Sec. 319. Inspector General Act of 1978 amendment.
Sec. 320. Energy Policy Act of 1992 amendments.

[[Page 109 STAT. 804]]

Sec. 321. Merchant Marine Act, 1920, amendments.
Sec. 322. Railway Labor Act amendments.
Sec. 323. Railroad Retirement Act of 1974 amendments.
Sec. 324. Railroad Unemployment Insurance Act amendments.
Sec. 325. Emergency Rail Services Act of 1970 amendments.
Sec. 326. Alaska Railroad Transfer Act of 1982 amendments.
Sec. 327. Regional Rail Reorganization Act of 1973 amendments.
Sec. 328. Milwaukee Railroad Restructuring Act amendment.
Sec. 329. Rock Island Railroad Transition and Employee Assistance Act 
                    amendments.
Sec. 330. Railroad Revitalization and Regulatory Reform Act of 1976 
                    amendments.
Sec. 331. Northeast Rail Service Act of 1981 amendments.
Sec. 332. Conrail Privatization Act amendment.
Sec. 333. Migrant and Seasonal Agricultural Worker Protection Act 
                    amendments.
Sec. 334. Federal Aviation Administration Authorization Act of 1994.
Sec. 335. Termination of certain maritime authority.
Sec. 336. Armored Car Industry Reciprocity Act of 1993 amendments.
Sec. 337. Labor Management Relations Act, 1947 amendment.
Sec. 338. Inlands Waterway Revenue Act of 1978 amendment.
Sec. 339. Noise Control Act of 1972 amendment.
Sec. 340. Fair Labor Standards Act of 1938 amendment.

                   TITLE IV--MISCELLANEOUS PROVISIONS

Sec. 401. Certain commercial space launch activities.
Sec. 402. Destruction of motor vehicles or motor vehicle facilities; 
                    wrecking trains.
Sec. 403. Violation of grade-crossing laws and regulations.
Sec. 404. Miscellaneous title 23 amendments.
Sec. 405. Technical amendments.
Sec. 406. Fiber drum packaging.
Sec. 407. Noncontiguous domestic trade study.
Sec. 408. Federal Highway Administration rulemaking.

SEC. 2. <<NOTE: 49 USC 701 note.>> EFFECTIVE DATE.

    Except as otherwise provided in this Act, this Act shall take effect 
on January 1, 1996.

          TITLE I--ABOLITION OF INTERSTATE COMMERCE COMMISSION

SEC. 101. <<NOTE: 49 USC 701 note.>> ABOLITION.

    The Interstate Commerce Commission is abolished.

SEC. 102. RAIL PROVISIONS.

    (a) Amendment.--Subtitle IV of title 49, United States Code, is 
amended to read as follows:

                ``SUBTITLE IV--INTERSTATE TRANSPORTATION

                             ``PART A--RAIL

``Chapter                     Sec.......................................
            GENERAL PROVISIONS                                     10101
            JURISDICTION                                           10501
            RATES.                                                 10701
            LICENSING                                              10901
            OPERATIONS                                             11101
            FINANCE                                                11301
            FEDERAL-STATE RELATIONS                                11501
            ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND REMEDIES      11701
            CIVIL AND CRIMINAL PENALTIES                           11901

     ``PART B--MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT 
                               FORWARDERS

``Chapter                     Sec.......................................
            GENERAL PROVISIONS                                     13101

[[Page 109 STAT. 805]]

            ADMINISTRATIVE PROVISIONS                              13301
            JURISDICTION                                           13501
            RATES AND THROUGH ROUTES                               13701
            REGISTRATION                                           13901
            OPERATIONS OF CARRIERS                                 14101
            FINANCE                                                14301
            FEDERAL-STATE RELATIONS                                14501
            ENFORCEMENT; INVESTIGATIONS; RIGHTS; REMEDIES          14701
            CIVIL AND CRIMINAL PENALTIES                           14901

                       ``PART C--PIPELINE CARRIERS

``Chapter                     Sec.......................................
            GENERAL PROVISIONS                                     15101
            JURISDICTION                                           15301
            RATES AND TARIFFS                                      15501
            OPERATIONS OF CARRIERS                                 15701
            ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND REMEDIES      15901
            CIVIL AND CRIMINAL PENALTIES                           16101

                             ``PART A--RAIL

                    ``CHAPTER 101--GENERAL PROVISIONS

``Sec.
``10101. Rail transportation policy.
``10102. Definitions.

``Sec. 10101. Rail transportation policy

    ``In regulating the railroad industry, it is the policy of the 
United States Government--
            ``(1) to allow, to the maximum extent possible, competition 
        and the demand for services to establish reasonable rates for 
        transportation by rail;
            ``(2) to minimize the need for Federal regulatory control 
        over the rail transportation system and to require fair and 
        expeditious regulatory decisions when regulation is required;
            ``(3) to promote a safe and efficient rail transportation 
        system by allowing rail carriers to earn adequate revenues, as 
        determined by the Board;
            ``(4) to ensure the development and continuation of a sound 
        rail transportation system with effective competition among rail 
        carriers and with other modes, to meet the needs of the public 
        and the national defense;
            ``(5) to foster sound economic conditions in transportation 
        and to ensure effective competition and coordination between 
        rail carriers and other modes;
            ``(6) to maintain reasonable rates where there is an absence 
        of effective competition and where rail rates provide revenues 
        which exceed the amount necessary to maintain the rail system 
        and to attract capital;
            ``(7) to reduce regulatory barriers to entry into and exit 
        from the industry;
            ``(8) to operate transportation facilities and equipment 
        without detriment to the public health and safety;
            ``(9) to encourage honest and efficient management of 
        railroads;
            ``(10) to require rail carriers, to the maximum extent 
        practicable, to rely on individual rate increases, and to limit 
        the use of increases of general applicability;
            ``(11) to encourage fair wages and safe and suitable working 
        conditions in the railroad industry;

[[Page 109 STAT. 806]]

            ``(12) to prohibit predatory pricing and practices, to avoid 
        undue concentrations of market power, and to prohibit unlawful 
        discrimination;
            ``(13) to ensure the availability of accurate cost 
        information in regulatory proceedings, while minimizing the 
        burden on rail carriers of developing and maintaining the 
        capability of providing such information;
            ``(14) to encourage and promote energy conservation; and
            ``(15) to provide for the expeditious handling and 
        resolution of all proceedings required or permitted to be 
        brought under this part.

``Sec. 10102. Definitions

    ``In this part--
            ``(1) `Board' means the Surface Transportation Board;
            ``(2) `car service' includes (A) the use, control, supply, 
        movement, distribution, exchange, interchange, and return of 
        locomotives, cars, other vehicles, and special types of 
        equipment used in the transportation of property by a rail 
        carrier, and (B) the supply of trains by a rail carrier;
            ``(3) `control', when referring to a relationship between 
        persons, includes actual control, legal control, and the power 
        to exercise control, through or by (A) common directors, 
        officers, stockholders, a voting trust, or a holding or 
        investment company, or (B) any other means;
            ``(4) `person', in addition to its meaning under section 1 
        of title 1, includes a trustee, receiver, assignee, or personal 
        representative of a person;
            ``(5) `rail carrier' means a person providing common carrier 
        railroad transportation for compensation, but does not include 
        street, suburban, or interurban electric railways not operated 
        as part of the general system of rail transportation;
            ``(6) `railroad' includes--
                    ``(A) a bridge, car float, lighter, ferry, and 
                intermodal equipment used by or in connection with a 
                railroad;
                    ``(B) the road used by a rail carrier and owned by 
                it or operated under an agreement; and
                    ``(C) a switch, spur, track, terminal, terminal 
                facility, and a freight depot, yard, and ground, used or 
                necessary for transportation;
            ``(7) `rate' means a rate or charge for transportation;
            ``(8) `State' means a State of the United States and the 
        District of Columbia;
            ``(9) `transportation' includes--
                    ``(A) a locomotive, car, vehicle, vessel, warehouse, 
                wharf, pier, dock, yard, property, facility, 
                instrumentality, or equipment of any kind related to the 
                movement of passengers or property, or both, by rail, 
                regardless of ownership or an agreement concerning use; 
                and
                    ``(B) services related to that movement, including 
                receipt, delivery, elevation, transfer in transit, 
                refrigeration, icing, ventilation, storage, handling, 
                and interchange of passengers and property; and
            ``(10) `United States' means the States of the United States 
        and the District of Columbia.

[[Page 109 STAT. 807]]

                       ``CHAPTER 105--JURISDICTION

``Sec.
``10501. General jurisdiction.
``10502. Authority to exempt rail carrier transportation.

``Sec. 10501. General jurisdiction

    ``(a)(1) Subject to this chapter, the Board has jurisdiction over 
transportation by rail carrier that is--
            ``(A) only by railroad; or
            ``(B) by railroad and water, when the transportation is 
        under common control, management, or arrangement for a 
        continuous carriage or shipment.

    ``(2) Jurisdiction under paragraph (1) applies only to 
transportation in the United States between a place in--
            ``(A) a State and a place in the same or another State as 
        part of the interstate rail network;
            ``(B) a State and a place in a territory or possession of 
        the United States;
            ``(C) a territory or possession of the United States and a 
        place in another such territory or possession;
            ``(D) a territory or possession of the United States and 
        another place in the same territory or possession;
            ``(E) the United States and another place in the United 
        States through a foreign country; or
            ``(F) the United States and a place in a foreign country.

    ``(b) The jurisdiction of the Board over--
            ``(1) transportation by rail carriers, and the remedies 
        provided in this part with respect to rates, classifications, 
        rules (including car service, interchange, and other operating 
        rules), practices, routes, services, and facilities of such 
        carriers; and
            ``(2) the construction, acquisition, operation, abandonment, 
        or discontinuance of spur, industrial, team, switching, or side 
        tracks, or facilities, even if the tracks are located, or 
        intended to be located, entirely in one State,

is exclusive. Except as otherwise provided in this part, the remedies 
provided under this part with respect to regulation of rail 
transportation are exclusive and preempt the remedies provided under 
Federal or State law.

    ``(c)(1) In this subsection--
            ``(A) the term `local governmental authority'--
                    ``(i) has the same meaning given that term by 
                section 5302(a) of this title; and
                    ``(ii) includes a person or entity that contracts 
                with the local governmental authority to provide 
                transportation services; and
            ``(B) the term `mass transportation' means transportation 
        services described in section 5302(a) of this title that are 
        provided by rail.

    ``(2) Except as provided in paragraph (3), the Board does not have 
jurisdiction under this part over mass transportation provided by a 
local governmental authority.
    ``(3)(A) Notwithstanding paragraph (2) of this subsection, a local 
governmental authority, described in paragraph (2), is subject to 
applicable laws of the United States related to--
            ``(i) safety;
            ``(ii) the representation of employees for collective 
        bargaining; and

[[Page 109 STAT. 808]]

            ``(iii) employment, retirement, annuity, and unemployment 
        systems or other provisions related to dealings between 
        employees and employers.

    ``(B) The Board has jurisdiction under sections 11102 and 11103 of 
this title over transportation provided by a local governmental 
authority only if the Board finds that such governmental authority meets 
all of the standards and requirements for being a rail carrier providing 
transportation subject to the jurisdiction of the Interstate Commerce 
Commission that were in effect immediately before the effective date of 
the ICC Termination Act of 1995. The enactment of the ICC Termination 
Act of 1995 shall neither expand nor contract coverage of employees and 
employers by the Railway Labor Act, the Railroad Retirement Act of 1974, 
the Railroad Retirement Tax Act, and the Railroad Unemployment Insurance 
Act.

``Sec. 10502. Authority to exempt rail carrier transportation

    ``(a) In a matter related to a rail carrier providing transportation 
subject to the jurisdiction of the Board under this part, the Board, to 
the maximum extent consistent with this part, shall exempt a person, 
class of persons, or a transaction or service whenever the Board finds 
that the application in whole or in part of a provision of this part--
            ``(1) is not necessary to carry out the transportation 
        policy of section 10101 of this title; and
            ``(2) either--
                    ``(A) the transaction or service is of limited 
                scope; or
                    ``(B) the application in whole or in part of the 
                provision is not needed to protect shippers from the 
                abuse of market power.

    ``(b) The Board may, where appropriate, begin a proceeding under 
this section on its own initiative or on application by the Secretary of 
Transportation or an interested party. The Board shall, within 90 days 
after receipt of any such application, determine whether to begin an 
appropriate proceeding. <<NOTE: Federal Register, publication.>> If the 
Board decides not to begin a class exemption proceeding, the reasons for 
the decision shall be published in the Federal Register. Any proceeding 
begun as a result of an application under this subsection shall be 
completed within 9 months after it is begun.

    ``(c) The Board may specify the period of time during which an 
exemption granted under this section is effective.
    ``(d) The Board may revoke an exemption, to the extent it specifies, 
when it finds that application in whole or in part of a provision of 
this part to the person, class, or transportation is necessary to carry 
out the transportation policy of section 10101 of this title. The Board 
shall, within 90 days after receipt of a request for revocation under 
this subsection, determine whether to begin an appropriate 
proceeding. <<NOTE: Federal Register, publication.>> If the Board 
decides not to begin a proceeding to revoke a class exemption, the 
reasons for the decision shall be published in the Federal Register. Any 
proceeding begun as a result of a request under this subsection shall be 
completed within 9 months after it is begun.

    ``(e) No exemption order issued pursuant to this section shall 
operate to relieve any rail carrier from an obligation to provide 
contractual terms for liability and claims which are consistent with the 
provisions of section 11706 of this title. Nothing in this subsection or 
section 11706 of this title shall prevent rail carriers from offering 
alternative terms nor give the Board the authority

[[Page 109 STAT. 809]]

to require any specific level of rates or services based upon the 
provisions of section 11706 of this title.
    ``(f) The Board may exercise its authority under this section to 
exempt transportation that is provided by a rail carrier as part of a 
continuous intermodal movement.
    ``(g) The Board may not exercise its authority under this section to 
relieve a rail carrier of its obligation to protect the interests of 
employees as required by this part.

                          ``CHAPTER 107--RATES

                    ``SUBCHAPTER I--GENERAL AUTHORITY

``Sec.

``10701. Standards for rates, classifications, through routes, rules, 
              and practices.
``10702. Authority for rail carriers to establish rates, 
              classifications, rules, and practices.
``10703. Authority for rail carriers to establish through routes.
``10704. Authority and criteria: rates, classifications, rules, and 
              practices prescribed by Board.
``10705. Authority: through routes, joint classifications, rates, and 
              divisions prescribed by Board.
``10706. Rate agreements: exemption from antitrust laws.
``10707. Determination of market dominance in rail rate proceedings.
``10708. Rail cost adjustment factor.
``10709. Contracts.

                 ``SUBCHAPTER II--SPECIAL CIRCUMSTANCES

``10721. Government traffic.
``10722. Car utilization.

                      ``SUBCHAPTER III--LIMITATIONS

``10741. Prohibitions against discrimination by rail carriers.
``10742. Facilities for interchange of traffic.
``10743. Liability for payment of rates.
``10744. Continuous carriage of freight.
``10745. Transportation services or facilities furnished by shipper.
``10746. Demurrage charges.
``10747. Designation of certain routes by shippers.

                    ``SUBCHAPTER I--GENERAL AUTHORITY

``Sec. 10701. Standards for rates, classifications, through 
                      routes, rules, and practices

    ``(a) A through route established by a rail carrier must be 
reasonable. Divisions of joint rates by rail carriers must be made 
without unreasonable discrimination against a participating carrier and 
must be reasonable.
    ``(b) A rail carrier providing transportation subject to the 
jurisdiction of the Board under this part may not discriminate in its 
rates against a connecting line of another rail carrier providing 
transportation subject to the jurisdiction of the Board under this part 
or unreasonably discriminate against that line in the distribution of 
traffic that is not routed specifically by the shipper.
    ``(c) Except as provided in subsection (d) of this section and 
unless a rate is prohibited by a provision of this part, a rail carrier 
providing transportation subject to the jurisdiction of the Board under 
this part may establish any rate for transportation or other service 
provided by the rail carrier.
    ``(d)(1) If the Board determines, under section 10707 of this title, 
that a rail carrier has market dominance over the transportation to 
which a particular rate applies, the rate established by such carrier 
for such transportation must be reasonable.

[[Page 109 STAT. 810]]

    ``(2) In determining whether a rate established by a rail carrier is 
reasonable for purposes of this section, the Board shall give due 
consideration to--
            ``(A) the amount of traffic which is transported at revenues 
        which do not contribute to going concern value and the efforts 
        made to minimize such traffic;
            ``(B) the amount of traffic which contributes only 
        marginally to fixed costs and the extent to which, if any, rates 
        on such traffic can be changed to maximize the revenues from 
        such traffic; and
            ``(C) the carrier's mix of rail traffic to determine whether 
        one commodity is paying an unreasonable share of the carrier's 
        overall revenues,

recognizing the policy of this part that rail carriers shall earn 
adequate revenues, as established by the Board under section 10704(a)(2) 
of this title.
    ``(3) The Board shall, within one year after the effective date of 
this paragraph, complete the pending Interstate Commerce Commission non-
coal rate guidelines proceeding to establish a simplified and expedited 
method for determining the reasonableness of challenged rail rates in 
those cases in which a full stand-alone cost presentation is too costly, 
given the value of the case.
``Sec. 10702. Authority for rail carriers to establish rates, 
                      classifications, rules, and practices

    ``A rail carrier providing transportation or service subject to the 
jurisdiction of the Board under this part shall establish reasonable--
            ``(1) rates, to the extent required by section 10707, 
        divisions of joint rates, and classifications for transportation 
        and service it may provide under this part; and
            ``(2) rules and practices on matters related to that 
        transportation or service.
``Sec. 10703. Authority for rail carriers to establish through 
                      routes

    ``Rail carriers providing transportation subject to the jurisdiction 
of the Board under this part shall establish through routes (including 
physical connections) with each other and with water carriers providing 
transportation subject to chapter 137, shall establish rates and 
classifications applicable to those routes, and shall establish rules 
for their operation and provide--
            ``(1) reasonable facilities for operating the through route; 
        and
            ``(2) reasonable compensation to persons entitled to 
        compensation for services related to the through route.
``Sec. 10704. Authority and criteria: rates, classifications, 
                      rules, and practices prescribed by Board

    ``(a)(1) When the Board, after a full hearing, decides that a rate 
charged or collected by a rail carrier for transportation subject to the 
jurisdiction of the Board under this part, or that a classification, 
rule, or practice of that carrier, does or will violate this part, the 
Board may prescribe the maximum rate, classification, rule, or practice 
to be followed. The Board may order the carrier to stop the violation. 
When a rate, classification, rule, or practice is prescribed under this 
subsection, the affected carrier may not

[[Page 109 STAT. 811]]

publish, charge, or collect a different rate and shall adopt the 
classification and observe the rule or practice prescribed by the Board.
    ``(2) The Board shall maintain and revise as necessary standards and 
procedures for establishing revenue levels for rail carriers providing 
transportation subject to its jurisdiction under this part that are 
adequate, under honest, economical, and efficient management, to cover 
total operating expenses, including depreciation and obsolescence, plus 
a reasonable and economic profit or return (or both) on capital employed 
in the business. The Board shall make an adequate and continuing effort 
to assist those carriers in attaining revenue levels prescribed under 
this paragraph. Revenue levels established under this paragraph should--
            ``(A) provide a flow of net income plus depreciation 
        adequate to support prudent capital outlays, assure the 
        repayment of a reasonable level of debt, permit the raising of 
        needed equity capital, and cover the effects of inflation; and
            ``(B) attract and retain capital in amounts adequate to 
        provide a sound transportation system in the United States.

    ``(3) On the basis of the standards and procedures described in 
paragraph (2), the Board shall annually determine which rail carriers 
are earning adequate revenues.
    ``(b) The Board may begin a proceeding under this section only on 
complaint. A complaint under subsection (a) of this section must be made 
under section 11701 of this title, but the proceeding may also be in 
extension of a complaint pending before the Board.
    ``(c) In a proceeding to challenge the reasonableness of a rate, the 
Board shall make its determination as to the reasonableness of the 
challenged rate--
            ``(1) within 9 months after the close of the administrative 
        record if the determination is based upon a stand-alone cost 
        presentation; or
            ``(2) within 6 months after the close of the administrative 
        record if the determination is based upon the methodology 
        adopted by the Board pursuant to section 10701(d)(3).

    ``(d) Within 9 months after the effective date of the ICC 
Termination Act of 1995, the Board shall establish procedures to ensure 
expeditious handling of challenges to the reasonableness of railroad 
rates. The procedures shall include appropriate measures for avoiding 
delay in the discovery and evidentiary phases of such proceedings and 
exemption or revocation proceedings, including appropriate sanctions for 
such delay, and for ensuring prompt disposition of motions and 
interlocutory administrative appeals.
``Sec. 10705. Authority: through routes, joint classifications, 
                      rates, and divisions prescribed by Board

    ``(a)(1) The Board may, and shall when it considers it desirable in 
the public interest, prescribe through routes, joint classifications, 
joint rates, the division of joint rates, and the conditions under which 
those routes must be operated, for a rail carrier providing 
transportation subject to the jurisdiction of the Board under this part.
    ``(2) The Board may require a rail carrier to include in a through 
route substantially less than the entire length of its railroad and any 
intermediate railroad operated with it under common management or 
control if that intermediate railroad lies between the terminals of the 
through route only when--

[[Page 109 STAT. 812]]

            ``(A) required under section 10741, 10742, or 11102 of this 
        title;
            ``(B) inclusion of those lines would make the through route 
        unreasonably long when compared with a practicable alternative 
        through route that could be established; or
            ``(C) the Board decides that the proposed through route is 
        needed to provide adequate, and more efficient or economic, 
        transportation.

The Board shall give reasonable preference, subject to this subsection, 
to the rail carrier originating the traffic when prescribing through 
routes.
    ``(b) The Board shall prescribe the division of joint rates to be 
received by a rail carrier providing transportation subject to its 
jurisdiction under this part when it decides that a division of joint 
rates established by the participating carriers under section 10703 of 
this title, or under a decision of the Board under subsection (a) of 
this section, does or will violate section 10701 of this title.
    ``(c) If a division of a joint rate prescribed under a decision of 
the Board is later found to violate section 10701 of this title, the 
Board may decide what division would have been reasonable and order 
adjustment to be made retroactive to the date the complaint was filed, 
the date the order for an investigation was made, or a later date that 
the Board decides is justified. The Board may make a decision under this 
subsection effective as part of its original decision.
``Sec. 10706. Rate agreements: exemption from antitrust laws

    ``(a)(1) In this subsection--
            ``(A) the term `affiliate' means a person controlling, 
        controlled by, or under common control or ownership with another 
        person and `ownership' refers to equity holdings in a business 
        entity of at least 5 percent;
            ``(B) the term `single-line rate' refers to a rate or 
        allowance proposed by a single rail carrier that is applicable 
        only over its line and for which the transportation (exclusive 
        of terminal services by switching, drayage or other terminal 
        carriers or agencies) can be provided by that carrier; and
            ``(C) the term `practicably participates in the movement' 
        shall have such meaning as the Board shall by regulation 
        prescribe.

    ``(2)(A) A rail carrier providing transportation subject to the 
jurisdiction of the Board under this part that is a party to an 
agreement of at least 2 rail carriers that relates to rates (including 
charges between rail carriers and compensation paid or received for the 
use of facilities and equipment), classifications, divisions, or rules 
related to them, or procedures for joint consideration, initiation, 
publication, or establishment of them, shall apply to the Board for 
approval of that agreement under this subsection. The Board shall 
approve the agreement only when it finds that the making and carrying 
out of the agreement will further the transportation policy of section 
10101 of this title and may require compliance with conditions necessary 
to make the agreement further that policy as a condition of its 
approval. If the Board approves the agreement, it may be made and 
carried out under its terms and under the conditions required by the 
Board, and the Sherman Act (15 U.S.C. 1, et seq.), the Clayton Act (15 
U.S.C. 12, et seq.), the Federal Trade Commission Act (15 U.S.C. 41, et 
seq.), sections

[[Page 109 STAT. 813]]

73 and 74 of the Wilson Tariff Act (15 U.S.C. 8 and 9), and the Act of 
June 19, 1936 (15 U.S.C. 13, 13a, 13b, 21a) do not apply to parties and 
other persons with respect to making or carrying out the agreement. 
However, the Board may not approve or continue approval of an agreement 
when the conditions required by it are not met or if it does not receive 
a verified statement under subparagraph (B) of this paragraph.
    ``(B) The Board may approve an agreement under subparagraph (A) of 
this paragraph only when the rail carriers applying for approval file a 
verified statement with the Board. Each statement must specify for each 
rail carrier that is a party to the agreement--
            ``(i) the name of the carrier;
            ``(ii) the mailing address and telephone number of its 
        headquarter's office; and
            ``(iii) the names of each of its affiliates and the names, 
        addresses, and affiliates of each of its officers and directors 
        and of each person, together with an affiliate, owning or 
        controlling any debt, equity, or security interest in it having 
        a value of at least $1,000,000.

    ``(3)(A) An organization established or continued under an agreement 
approved under this subsection shall make a final disposition of a rule 
or rate docketed with it by the 120th day after the proposal is 
docketed. Such an organization may not--
            ``(i) permit a rail carrier to discuss, to participate in 
        agreements related to, or to vote on single-line rates proposed 
        by another rail carrier, except that for purposes of general 
        rate increases and broad changes in rates, classifications, 
        rules, and practices only, if the Board finds at any time that 
        the implementation of this clause is not feasible, it may delay 
        or suspend such implementation in whole or in part;
            ``(ii) permit a rail carrier to discuss, to participate in 
        agreements related to, or to vote on rates related to a 
        particular interline movement unless that rail carrier 
        practicably participates in the movement; or
            ``(iii) if there are interline movements over two or more 
        routes between the same end points, permit a carrier to discuss, 
        to participate in agreements related to, or to vote on rates 
        except with a carrier which forms part of a particular single 
        route. If the Board finds at any time that the implementation of 
        this clause is not feasible, it may delay or suspend such 
        implementation in whole or in part.

    ``(B)(i) In any proceeding in which a party alleges that a rail 
carrier voted or agreed on a rate or allowance in violation of this 
subsection, that party has the burden of showing that the vote or 
agreement occurred. A showing of parallel behavior does not satisfy that 
burden by itself.
    ``(ii) In any proceeding in which it is alleged that a carrier was a 
party to an agreement, conspiracy, or combination in violation of a 
Federal law cited in subsection (a)(2)(A) of this section or of any 
similar State law, proof of an agreement, conspiracy, or combination may 
not be inferred from evidence that two or more rail carriers acted 
together with respect to an interline rate or related matter and that a 
party to such action took similar action with respect to a rate or 
related matter on another route or traffic. In any proceeding in which 
such a violation is alleged, evidence of a discussion or agreement 
between or among such rail carrier and one or more other rail carriers, 
or of any rate or other action

[[Page 109 STAT. 814]]

resulting from such discussion or agreement, shall not be admissible if 
the discussion or agreement--
            ``(I) was in accordance with an agreement approved under 
        paragraph (2) of this subsection; or
            ``(II) concerned an interline movement of the rail carrier, 
        and the discussion or agreement would not, considered by itself, 
        violate the laws referred to in the first sentence of this 
        clause.

In any proceeding before a jury, the court shall determine whether the 
requirements of subclause (I) or (II) are satisfied before allowing the 
introduction of any such evidence.
    ``(C) <<NOTE: Records. Confidentiality.>> An organization described 
in subparagraph (A) of this paragraph shall provide that transcripts or 
sound recordings be made of all meetings, that records of votes be made, 
and that such transcripts or recordings and voting records be submitted 
to the Board and made available to other Federal agencies in connection 
with their statutory responsibilities over rate bureaus, except that 
such material shall be kept confidential and shall not be subject to 
disclosure under section 552 of title 5, United States Code.

    ``(4) Notwithstanding any other provision of this subsection, one or 
more rail carriers may enter into an agreement, without obtaining prior 
Board approval, that provides solely for compilation, publication, and 
other distribution of rates in effect or to become effective. The 
Sherman Act (15 U.S.C. 1 et seq.), the Clayton Act (15 U.S.C. 12 et 
seq.), the Federal Trade Commission Act (15 U.S.C. 41 et seq.), sections 
73 and 74 of the Wilson Tariff Act (15 U.S.C. 8 and 9), and the Act of 
June 19, 1936 (15 U.S.C. 13, 13a, 13b, 21a) shall not apply to parties 
and other persons with respect to making or carrying out such agreement. 
However, the Board may, upon application or on its own initiative, 
investigate whether the parties to such an agreement have exceeded its 
scope, and upon a finding that they have, the Board may issue such 
orders as are necessary, including an order dissolving the agreement, to 
ensure that actions taken pursuant to the agreement are limited as 
provided in this paragraph.
    ``(5)(A) Whenever two or more shippers enter into an agreement to 
discuss among themselves that relates to the amount of compensation such 
shippers propose to be paid by rail carriers providing transportation 
subject to the jurisdiction of the Board under this part, for use by 
such rail carriers of rolling stock owned or leased by such shippers, 
the shippers shall apply to the Board for approval of that agreement 
under this paragraph. The Board shall approve the agreement only when it 
finds that the making and carrying out of the agreement will further the 
transportation policy set forth in section 10101 of this title and may 
require compliance with conditions necessary to make the agreement 
further that policy as a condition of approval. If the Board approves 
the agreement, it may be made and carried out under its terms and under 
the terms required by the Board, and the antitrust laws set forth in 
paragraph (2) of this subsection do not apply to parties and other 
persons with respect to making or carrying out the agreement. The Board 
shall approve or disapprove an agreement under this paragraph within one 
year after the date application for approval of such agreement is made.
    ``(B) If the Board approves an agreement described in subparagraph 
(A) of this paragraph and the shippers entering into such agreement and 
the rail carriers proposing to use rolling stock owned

[[Page 109 STAT. 815]]

or leased by such shippers, under payment by such carriers or under a 
published allowance, are unable to agree upon the amount of compensation 
to be paid for the use of such rolling stock, any party directly 
involved in the negotiations may require that the matter be settled by 
submitting the issues in dispute to the Board. The Board shall render a 
binding decision, based upon a standard of reasonableness and after 
taking into consideration any past precedents on the subject matter of 
the negotiations, no later than 90 days after the date of the submission 
of the dispute to the Board.
    ``(C) Nothing in this paragraph shall be construed to change the law 
in effect prior to the effective date of the Staggers Rail Act of 1980 
with respect to the obligation of rail carriers to utilize rolling stock 
owned or leased by shippers.
    ``(b) The Board may require an organization established or continued 
under an agreement approved under this section to maintain records and 
submit reports. The Board may inspect a record maintained under this 
section.
    ``(c) The Board may review an agreement approved under subsection 
(a) of this section and shall change the conditions of approval or 
terminate it when necessary to comply with the public interest and 
subsection (a). The Board shall postpone the effective date of a change 
of an agreement under this subsection for whatever period it determines 
to be reasonably necessary to avoid unreasonable hardship.
    ``(d) The Board may begin a proceeding under this section on its own 
initiative or on application. Action of the Board under this section--
            ``(1) approving an agreement;
            ``(2) denying, ending, or changing approval;
            ``(3) prescribing the conditions on which approval is 
        granted; or
            ``(4) changing those conditions,

has effect only as related to application of the antitrust laws referred 
to in subsection (a) of this section.
    ``(e)(1) <<NOTE: Reports.>> The Federal Trade Commission, in 
consultation with the Antitrust Division of the Department of Justice, 
shall prepare periodically an assessment of, and shall report to the 
Board on--
            ``(A) possible anticompetitive features of--
                    ``(i) agreements approved or submitted for approval 
                under subsection (a) of this section; and
                    ``(ii) an organization operating under those 
                agreements; and
            ``(B) possible ways to alleviate or end an anticompetitive 
        feature, effect, or aspect in a manner that will further the 
        goals of this part and of the transportation policy of section 
        10101 of this title.

    ``(2) Reports received by the Board under this subsection shall be 
published and made available to the public under section 552(a) of title 
5.
``Sec. 10707. Determination of market dominance in rail rate 
                      proceedings

    ``(a) In this section, `market dominance' means an absence of 
effective competition from other rail carriers or modes of 
transportation for the transportation to which a rate applies.

[[Page 109 STAT. 816]]

    ``(b) When a rate for transportation by a rail carrier providing 
transportation subject to the jurisdiction of the Board under this part 
is challenged as being unreasonably high, the Board shall determine 
whether the rail carrier proposing the rate has market dominance over 
the transportation to which the rate applies. The Board may make that 
determination on its own initiative or on complaint. A finding by the 
Board that the rail carrier does not have market dominance is 
determinative in a proceeding under this part related to that rate or 
transportation unless changed or set aside by the Board or set aside by 
a court of competent jurisdiction.
    ``(c) When the Board finds in any proceeding that a rail carrier 
proposing or defending a rate for transportation has market dominance 
over the transportation to which the rate applies, it may then determine 
that rate to be unreasonable if it exceeds a reasonable maximum for that 
transportation. However, a finding of market dominance does not 
establish a presumption that the proposed rate exceeds a reasonable 
maximum.
    ``(d)(1)(A) In making a determination under this section, the Board 
shall find that the rail carrier establishing the challenged rate does 
not have market dominance over the transportation to which the rate 
applies if such rail carrier proves that the rate charged results in a 
revenue-variable cost percentage for such transportation that is less 
than 180 percent.

    ``(B) For purposes of this section, variable costs for a rail 
carrier shall be determined only by using such carrier's unadjusted 
costs, calculated using the Uniform Rail Costing System cost finding 
methodology (or an alternative methodology adopted by the Board in lieu 
thereof) and indexed quarterly to account for current wage and price 
levels in the region in which the carrier operates, with adjustments 
specified by the Board. A rail carrier may meet its burden of proof 
under this subsection by establishing its variable costs in accordance 
with this paragraph, but a shipper may rebut that showing by evidence of 
such type, and in accordance with such burden of proof, as the Board 
shall prescribe.
    ``(2) A finding by the Board that a rate charged by a rail carrier 
results in a revenue-variable cost percentage for the transportation to 
which the rate applies that is equal to or greater than 180 percent does 
not establish a presumption that--
            ``(A) such rail carrier has or does not have market 
        dominance over such transportation; or
            ``(B) the proposed rate exceeds or does not exceed a 
        reasonable maximum.

``Sec. 10708. <<NOTE: Publication.>> Rail cost adjustment factor

    ``(a) The Board shall, as often as practicable, but in no event less 
often than quarterly, publish a rail cost adjustment factor which shall 
be a fraction, the numerator of which is the latest published Index of 
Railroad Costs (which index shall be compiled or verified by the Board, 
with appropriate adjustments to reflect the change in composition of 
railroad costs, including the quality and mix of material and labor) and 
the denominator of which is the same index for the fourth quarter of 
every fifth year, beginning with the fourth quarter of 1992.
    ``(b) The rail cost adjustment factor published by the Board under 
subsection (a) of this section shall take into account changes in 
railroad productivity. The Board shall also publish a similar

[[Page 109 STAT. 817]]

index that does not take into account changes in railroad productivity.

``Sec. 10709. Contracts

    ``(a) One or more rail carriers providing transportation subject to 
the jurisdiction of the Board under this part may enter into a contract 
with one or more purchasers of rail services to provide specified 
services under specified rates and conditions.
    ``(b) A party to a contract entered into under this section shall 
have no duty in connection with services provided under such contract 
other than those duties specified by the terms of the contract.
    ``(c)(1) A contract that is authorized by this section, and 
transportation under such contract, shall not be subject to this part, 
and may not be subsequently challenged before the Board or in any court 
on the grounds that such contract violates a provision of this part.
    ``(2) The exclusive remedy for any alleged breach of a contract 
entered into under this section shall be an action in an appropriate 
State court or United States district court, unless the parties 
otherwise agree. This section does not confer original jurisdiction on 
the district courts of the United States based on section 1331 or 1337 
of title 28, United States Code.
    ``(d)(1) A summary of each contract for the transportation of 
agricultural products (including grain, as defined in section 3 of the 
United States Grain Standards Act (7 U.S.C. 75) and products thereof) 
entered into under this section shall be filed with the Board, 
containing such nonconfidential information as the Board 
prescribes. <<NOTE: Publication. Public information. Rules.>> The Board 
shall publish special rules for such contracts in order to ensure that 
the essential terms of the contract are available to the general public.

    ``(2) Documents, papers, and records (and any copies thereof) 
relating to a contract described in subsection (a) shall not be subject 
to the mandatory disclosure requirements of section 552 of title 5.

    ``(e) Any lawful contract between a rail carrier and one or more 
purchasers of rail service that was in effect on the effective date of 
the Staggers Rail Act of 1980 shall be considered a contract authorized 
by this section.
    ``(f) A rail carrier that enters into a contract as authorized by 
this section remains subject to the common
carrier obligation set forth in section 11101, with respect to rail 
transportation not provided under such a contract.

    ``(g)(1) No later than 30 days after the date of filing of a summary 
of a contract under this section, the Board may, on complaint, begin a 
proceeding to review such contract on the grounds described in this 
subsection.
    ``(2)(A) A complaint may be filed under this subsection--
            ``(i) by a shipper on the grounds that such shipper 
        individually will be harmed because the proposed contract unduly 
        impairs the ability of the contracting rail carrier or carriers 
        to meet their common carrier obligations to the complainant 
        under section 11101 of this title; or
            ``(ii) by a port only on the grounds that such port 
        individually will be harmed because the proposed contract will 
        result in unreasonable discrimination against such port.

[[Page 109 STAT. 818]]

    ``(B) In addition to the grounds for a complaint described in 
subparagraph (A) of this paragraph, a complaint may be filed by a 
shipper of agricultural commodities on the grounds that such shipper 
individually will be harmed because--
            ``(i) the rail carrier has unreasonably discriminated by 
        refusing to enter into a contract with such shipper for rates 
        and services for the transportation of the same type of 
        commodity under similar conditions to the contract at issue, and 
        that shipper was ready, willing, and able to enter into such a 
        contract at a time essentially contemporaneous with the period 
        during which the contract at issue was offered; or
            ``(ii) the proposed contract constitutes a destructive 
        competitive practice under this part.

In making a determination under clause (ii) of this subparagraph, the 
Board shall consider the difference between contract rates and published 
single car rates.
    ``(C) For purposes of this paragraph, the term `unreasonable 
discrimination' has the same meaning as such term has under section 
10741 of this title.
    ``(3)(A) Within 30 days after the date a proceeding is commenced 
under paragraph (1) of this subsection, or within such shorter time 
period after such date as the Board may establish, the Board shall 
determine whether the contract that is the subject of such proceeding is 
in violation of this section.
    ``(B) If the Board determines, on the basis of a complaint filed 
under paragraph (2)(B)(i) of this subsection, that the grounds for a 
complaint described in such paragraph have been established with respect 
to a rail carrier, the Board shall, subject to the provisions of this 
section, order such rail carrier to provide rates and service 
substantially similar to the contract at issue with such differentials 
in terms and conditions as are justified by the evidence.
    ``(h)(1) Any rail carrier may, in accordance with the terms of this 
section, enter into contracts for the transportation of agricultural 
commodities (including forest products, but not including wood pulp, 
wood chips, pulpwood or paper) involving the utilization of carrier 
owned or leased equipment not in excess of 40 percent of the capacity of 
such carrier's owned or leased equipment by major car type (plain 
boxcars, covered hopper cars, gondolas and open top hoppers, coal cars, 
bulkhead flatcars, pulpwood rackcars, and flatbed equipment, including 
TOFC/COFC).
    ``(2) The Board may, on request of a rail carrier or other party or 
on its own initiative, grant such relief from the limitations of 
paragraph (1) of this subsection as the Board considers appropriate, if 
it appears that additional equipment may be made available without 
impairing the rail carrier's ability to meet its common carrier 
obligations under section 11101 of this title.
    ``(3)(A) <<NOTE: Termination date.>> This subsection shall cease to 
be effective after September 30, 1998.

    ``(B) Before October 1, 1997, the National Grain Car Council and the 
Railroad-Shipper Transportation Advisory Council shall make 
recommendations to Congress on whether to extend the effectiveness of or 
otherwise modify this subsection.

[[Page 109 STAT. 819]]

                 ``SUBCHAPTER II--SPECIAL CIRCUMSTANCES

``Sec. 10721. Government traffic

    ``A rail carrier providing transportation or service for the United 
States Government may transport property or individuals for the United 
States Government without charge or at a rate reduced from the 
applicable commercial rate. Section 3709 of the Revised Statutes (41 
U.S.C. 5) does not apply when transportation for the United States 
Government can be obtained from a rail carrier lawfully operating in the 
area where the transportation would be provided.

``Sec. 10722. Car utilization

    ``In order to encourage more efficient use of freight cars, 
notwithstanding any other provision of this part, rail carriers shall be 
permitted to establish premium charges for special services or special 
levels of services not otherwise applicable to the movement. The Board 
shall facilitate development of such charges so as to increase the 
utilization of equipment.

                      ``SUBCHAPTER III--LIMITATIONS

``Sec. 10741. Prohibitions against discrimination by rail carriers

    ``(a)(1) A rail carrier providing transportation or service subject 
to the jurisdiction of the Board under this part may not subject a 
person, place, port, or type of traffic to unreasonable discrimination.

    ``(2) For purposes of this section, a rail carrier engages in 
unreasonable discrimination when it charges or receives from a person a 
different compensation for a service rendered, or to be rendered, in 
transportation the rail carrier may perform under this part than it 
charges or receives from another person for performing a like and 
contemporaneous service in the transportation of a like kind of traffic 
under substantially similar circumstances.
    ``(b) This section shall not apply to--
            ``(1) contracts described in section 10709 of this title;
            ``(2) rail rates applicable to different routes; or
            ``(3) discrimination against the traffic of another carrier 
        providing transportation by any mode.

    ``(c) Differences between rates, classifications, rules, and 
practices of rail carriers do not constitute a violation of this section 
if such differences result from different services provided by rail 
carriers.

``Sec. 10742. Facilities for interchange of traffic

    ``A rail carrier providing transportation subject to the 
jurisdiction of the Board under this part shall provide reasonable, 
proper, and equal facilities that are within its power to provide for 
the interchange of traffic between, and for the receiving, forwarding, 
and delivering of passengers and property to and from, its respective 
line and a connecting line of another rail carrier or of a water carrier 
providing transportation subject to chapter 137.

``Sec. 10743. Liability for payment of rates

    ``(a)(1) Liability for payment of rates for transportation for a 
shipment of property by a shipper or consignor to a consignee

[[Page 109 STAT. 820]]

other than the shipper or consignor, is determined under this subsection 
when the transportation is provided by a rail carrier under this part. 
When the shipper or consignor instructs the rail carrier transporting 
the property to deliver it to a consignee that is an agent only, not 
having beneficial title to the property, the consignee is liable for 
rates billed at the time of delivery for which the consignee is 
otherwise liable, but not for additional rates that may be found to be 
due after delivery if the consignee gives written notice to the 
delivering carrier before delivery of the property--
            ``(A) of the agency and absence of beneficial title; and
            ``(B) of the name and address of the beneficial owner of the 
        property if it is reconsigned or diverted to a place other than 
        the place specified in the original bill of lading.

    ``(2) When the consignee is liable only for rates billed at the time 
of delivery under paragraph (1) of this subsection, the shipper or 
consignor, or, if the property is reconsigned or diverted, the 
beneficial owner, is liable for those additional rates regardless of the 
bill of lading or contract under which the property was transported. The 
beneficial owner is liable for all rates when the property is 
reconsigned or diverted by an agent but is refused or abandoned at its 
ultimate destination if the agent gave the rail carrier in the 
reconsignment or diversion order a notice of agency and the name and 
address of the beneficial owner. A consignee giving the rail carrier, 
and a reconsignor or diverter giving a rail carrier, erroneous 
information about the identity of the beneficial owner of the property 
is liable for the additional rates.
    ``(b) Liability for payment of rates for transportation for a 
shipment of property by a shipper or consignor, named in the bill of 
lading as consignee, is determined under this subsection when the 
transportation is provided by a rail carrier under this part. When the 
shipper or consignor gives written notice, before delivery of the 
property, to the line-haul rail carrier that is to make ultimate 
delivery--
            ``(1) to deliver the property to another party identified by 
        the shipper or consignor as the beneficial owner of the 
        property; and
            ``(2) that delivery is to be made to that party on payment 
        of all applicable transportation rates;

that party is liable for the rates billed at the time of delivery and 
for additional rates that may be found to be due after delivery if that 
party does not pay the rates required to be paid under paragraph (2) of 
this subsection on delivery. However, if the party gives written notice 
to the delivering rail carrier before delivery that the party is not the 
beneficial owner of the property and gives the rail carrier the name and 
address of the beneficial owner, then the party is not liable for those 
additional rates. A shipper, consignor, or party to whom delivery is 
made that gives the delivering rail carrier erroneous information about 
the identity of the beneficial owner, is liable for the additional rates 
regardless of the bill of lading or contract under which the property 
was transported. This subsection does not apply to a prepaid shipment of 
property.
    ``(c)(1) A rail carrier may bring an action to enforce liability 
under subsection (a) of this section. That rail carrier must bring the 
action during the period provided in section 11705(a) of this title or 
by the end of the 6th month after final judgment against

[[Page 109 STAT. 821]]

it in an action against the consignee, or the beneficial owner named by 
the consignee or agent, under that section.
    ``(2) A rail carrier may bring an action to enforce liability under 
subsection (b) of this section. That carrier must bring the action 
during the period provided in section 11705(a) of this title or by the 
end of the 6th month after final judgment against it in an action 
against the shipper, consignor, or other party under that section.

``Sec. 10744. Continuous carriage of freight

    ``A rail carrier providing transportation or service subject to the 
jurisdiction of the Board under this part may not enter a combination or 
arrangement to prevent the carriage of freight from being continuous 
from the place of shipment to the place of destination whether by change 
of time schedule, carriage in different cars, or by other means. The 
carriage of freight by those rail carriers is considered to be a 
continuous carriage from the place of shipment to the place of 
destination when a break of bulk, stoppage, or interruption is not made 
in good faith for a necessary purpose, and with the intent of avoiding 
or unnecessarily interrupting the continuous carriage or of evading this 
part.

``Sec. 10745. Transportation services or facilities furnished by shipper

    ``A rail carrier providing transportation or service subject to the 
jurisdiction of the Board under this part may establish a charge or 
allowance for transportation or service for property when the owner of 
the property, directly or indirectly, furnishes a service related to or 
an instrumentality used in the transportation or service. The Board may 
prescribe the maximum reasonable charge or allowance a rail carrier 
subject to its jurisdiction may pay for a service or instrumentality 
furnished under this section. The Board may begin a proceeding under 
this section on its own initiative or on application.

``Sec. 10746. Demurrage charges

    ``A rail carrier providing transportation subject to the 
jurisdiction of the Board under this part shall compute demurrage 
charges, and establish rules related to those charges, in a way that 
fulfills the national needs related to--
            ``(1) freight car use and distribution; and
            ``(2) maintenance of an adequate supply of freight cars to 
        be available for transportation of property.

``Sec. 10747. Designation of certain routes by shippers

    ``(a)(1) When a person delivers property to a rail carrier for 
transportation subject to the jurisdiction of the Board under this part, 
the person may direct the rail carrier to transport the property over an 
established through route. When competing rail lines constitute a part 
of the route, the person shipping the property may designate the lines 
over which the property will be transported. The designation must be in 
writing. A rail carrier may be directed to transport property over a 
particular through route when--
            ``(A) there are at least 2 through routes over which the 
        property could be transported;
            ``(B) a through rate has been established for transportation 
        over each of those through routes; and

[[Page 109 STAT. 822]]

            ``(C) the rail carrier is a party to those routes and rates.

    ``(2) A rail carrier directed to route property transported under 
paragraph (1) of this subsection must issue a through bill of lading 
containing the routing instructions and transport the property according 
to the instructions. When the property is delivered to a connecting rail 
carrier, that rail carrier must also receive and transport it according 
to the routing instructions and deliver it to the next succeeding rail 
carrier or consignee according to the instructions.
    ``(b) The Board may prescribe exceptions to the authority of a 
person to direct the movement of traffic under subsection (a) of this 
section.

                        ``CHAPTER 109--LICENSING

``Sec.
``10901. Authorizing construction and operation of railroad lines.
``10902. Short line purchases by Class II and Class III rail carriers.
``10903. Filing and procedure for application to abandon or discontinue.
``10904. Offers of financial assistance to avoid abandonment and 
           discontinuance.
``10905. Offering abandoned rail properties for sale for public 
           purposes.
``10906. Exception.
``10907. Railroad development.

``Sec. 10901. Authorizing construction and operation of railroad 
                      lines

    ``(a) A person may--
            ``(1) construct an extension to any of its railroad lines;
            ``(2) construct an additional railroad line;
            ``(3) provide transportation over, or by means of, an 
        extended or additional railroad line; or
            ``(4) in the case of a person other than a rail carrier, 
        acquire a railroad line or acquire or operate an extended or 
        additional railroad line,

only if the Board issues a certificate authorizing such activity under 
subsection (c).
    ``(b) A proceeding to grant authority under subsection (a) of this 
section begins when an application is filed. <<NOTE: Notice.>> On 
receiving the application, the Board shall give reasonable public 
notice, including notice to the Governor of any affected State, of the 
beginning of such proceeding.

    ``(c) <<NOTE: Certificate.>> The Board shall issue a certificate 
authorizing activities for which such authority is requested in an 
application filed under subsection (b) unless the Board finds that such 
activities are inconsistent with the public convenience and necessity. 
Such certificate may approve the application as filed, or with 
modifications, and may require compliance with conditions (other than 
labor protection conditions) the Board finds necessary in the public 
interest.

    ``(d)(1) When a certificate has been issued by the Board under this 
section authorizing the construction or extension of a railroad line, no 
other rail carrier may block any construction or extension authorized by 
such certificate by refusing to permit the carrier to cross its property 
if--
            ``(A) the construction does not unreasonably interfere with 
        the operation of the crossed line;
            ``(B) the operation does not materially interfere with the 
        operation of the crossed line; and

[[Page 109 STAT. 823]]

            ``(C) the owner of the crossing line compensates the owner 
        of the crossed line.

    ``(2) If the parties are unable to agree on the terms of operation 
or the amount of payment for purposes of
paragraph (1) of this subsection, either party may submit the matters in 
dispute to the Board for determination. The Board shall make a 
determination under this paragraph within 120 days after the dispute is 
submitted for determination.
``Sec. 10902. Short line purchases by Class II and Class III rail 
                      carriers

    ``(a) A Class II or Class III rail carrier providing transportation 
subject to the jurisdiction of the Board under this part may acquire or 
operate an extended or additional rail line under this section only if 
the Board issues a certificate authorizing such activity under 
subsection (c).
    ``(b) A proceeding to grant authority under subsection (a) of this 
section begins when an application is filed. <<NOTE: Notice.>> On 
receiving the application, the Board shall give reasonable public notice 
of the beginning of such proceeding.

    ``(c) <<NOTE: Certificate.>> The Board shall issue a certificate 
authorizing activities for which such authority is requested in an 
application filed under subsection (b) unless the Board finds that such 
activities are inconsistent with the public convenience and necessity. 
Such certificate may approve the application as filed, or with 
modifications, and may require compliance with conditions (other than 
labor protection conditions) the Board finds necessary in the public 
interest.

    ``(d) The Board shall require any Class II rail carrier which 
receives a certificate under subsection (c) of this section to provide a 
fair and equitable arrangement for the protection of the interests of 
employees who may be affected thereby. The arrangement shall consist 
exclusively of one year of severance pay, which shall not exceed the 
amount of earnings from railroad employment of the employee during the 
12-month period immediately preceding the date on which the application 
for such certificate is filed with the Board. The amount of such 
severance pay shall be reduced by the amount of earnings from railroad 
employment of the employee with the acquiring carrier during the 12-
month period immediately following the effective date of the transaction 
to which the certificate applies. The parties may agree to terms other 
than as provided in this subsection. The Board shall not require such an 
arrangement from a Class III rail carrier which receives a certificate 
under subsection (c) of this section.
``Sec. 10903. Filing and procedure for application to abandon or 
                      discontinue

    ``(a)(1) A rail carrier providing transportation subject to the 
jurisdiction of the Board under this part who intends to--
            ``(A) abandon any part of its railroad lines; or
            ``(B) discontinue the operation of all rail transportation 
        over any part of its railroad lines,

must file an application relating thereto with the Board. An abandonment 
or discontinuance may be carried out only as authorized under this 
chapter.

[[Page 109 STAT. 824]]

    ``(2) When a rail carrier providing transportation subject to the 
jurisdiction of the Board under this part files an application, the 
application shall include--
            ``(A) an accurate and understandable summary of the rail 
        carrier's reasons for the proposed abandonment or 
        discontinuance;
            ``(B) a statement indicating that each interested person is 
        entitled to make recommendations to the Board on the future of 
        the rail line; and
            ``(C)(i) a statement that the line is available for subsidy 
        or sale in accordance with section 10904 of this title, (ii) a 
        statement that the rail carrier will promptly provide to each 
        interested party an estimate of the annual subsidy and minimum 
        purchase price, calculated in accordance with section 10904 of 
        this title, and (iii) the name and business address of the 
        person who is authorized to discuss the subsidy or sale terms 
        for the rail carrier.

    ``(3) <<NOTE: Notice.>> The rail carrier shall--
            ``(A) send by certified mail notice of the application to 
        the chief executive officer of each State that would be directly 
        affected by the proposed abandonment or discontinuance;
            ``(B) post a copy of the notice in each terminal and station 
        on each portion of a railroad line proposed to be abandoned or 
        over which all transportation is to be discontinued;
            ``(C) <<NOTE: Publication. Newspapers.>> publish a copy of 
        the notice for 3 consecutive weeks in a newspaper of general 
        circulation in each county in which each such portion is 
        located;
            ``(D) mail a copy of the notice, to the extent practicable, 
        to all shippers that have made significant use (as designated by 
        the Board) of the railroad line during the 12 months preceding 
        the filing of the application; and
            ``(E) <<NOTE: Certification.>> attach to the application 
        filed with the Board an affidavit certifying the manner in which 
        subparagraphs (A) through (D) of this paragraph have been 
        satisfied, and certifying that subparagraphs (A) through (D) 
        have been satisfied within the most recent 30 days prior to the 
        date the application is filed.

    ``(b)(1) Except as provided in subsection (d), abandonment and 
discontinuance may occur as provided in section 10904.

    ``(2) The Board shall require as a condition of any abandonment or 
discontinuance under this section provisions to protect the interests of 
employees. The provisions shall be at least as beneficial to those 
interests as the provisions established under sections 11326(a) and 
24706(c) of this title.
    ``(c)(1) In this subsection, the term `potentially subject to 
abandonment' has the meaning given the term in regulations of the Board. 
The regulations may include standards that vary by region of the United 
States and by railroad or group of railroads.
    ``(2) Each rail carrier shall maintain a complete diagram of the 
transportation system operated, directly or indirectly, by the rail 
carrier. <<NOTE: Publication.>>  The rail carrier shall submit to the 
Board and publish amendments to its diagram that are necessary to 
maintain the accuracy of the diagram. The diagram shall--
            ``(A) include a detailed description of each of its railroad 
        lines potentially subject to abandonment; and

[[Page 109 STAT. 825]]

            ``(B) identify each railroad line for which the rail carrier 
        plans to file an application to abandon or discontinue under 
        subsection (a) of this section.

    ``(d) A rail carrier providing transportation subject to the 
jurisdiction of the Board under this part may--
            ``(1) abandon any part of its railroad lines; or
            ``(2) discontinue the operation of all rail transportation 
        over any part of its railroad lines;

only if the Board finds that the present or future public convenience 
and necessity require or permit the abandonment or discontinuance. In 
making the finding, the Board shall consider whether the abandonment or 
discontinuance will have a serious, adverse impact on rural and 
community development.
    ``(e) Subject to this section and sections 10904 and 10905 of this 
title, if the Board--
            ``(1) finds public convenience and necessity, it shall--
                    ``(A) approve the application as filed; or
                    ``(B) approve the application with modifications and 
                require compliance with conditions that the Board finds 
                are required by public convenience and necessity; or
            ``(2) fails to find public convenience and necessity, it 
        shall deny the application.
``Sec. 10904. Offers of financial assistance to avoid abandonment 
                      and discontinuance

    ``(a) In this section--
            ``(1) the term `avoidable cost' means all expenses that 
        would be incurred by a rail carrier in providing transportation 
        that would not be incurred if the railroad line over which the 
        transportation was provided were abandoned or if the 
        transportation were discontinued. Expenses include cash inflows 
        foregone and cash outflows incurred by the rail carrier as a 
        result of not abandoning or discontinuing the transportation. 
        Cash inflows foregone and cash outflows incurred include--
                    ``(A) working capital and required capital 
                expenditure;
                    ``(B) expenditures to eliminate deferred 
                maintenance;
                    ``(C) the current cost of freight cars, locomotives, 
                and other equipment; and
                    ``(D) the foregone tax benefits from not retiring 
                properties from rail service and other effects of 
                applicable Federal and State income taxes; and
            ``(2) the term `reasonable return' means--
                    ``(A) if a rail carrier is not in reorganization, 
                the cost of capital to the rail carrier, as determined 
                by the Board; and
                    ``(B) if a rail carrier is in reorganization, the 
                mean cost of capital of rail carriers not in 
                reorganization, as determined by the Board.

    ``(b) Any rail carrier which has filed an application for 
abandonment or discontinuance shall provide promptly to a party 
considering an offer of financial assistance and shall provide 
concurrently to the Board--
            ``(1) an estimate of the annual subsidy and minimum purchase 
        price required to keep the line or a portion of the line in 
        operation;

[[Page 109 STAT. 826]]

            ``(2) its most recent reports on the physical condition of 
        that part of the railroad line involved in the proposed 
        abandonment or discontinuance;
            ``(3) traffic, revenue, and other data necessary to 
        determine the amount of annual financial assistance which would 
        be required to continue rail transportation over that part of 
        the railroad line; and
            ``(4) any other information that the Board considers 
        necessary to allow a potential offeror to calculate an adequate 
        subsidy or purchase offer.

    ``(c) Within 4 months after an application is filed under section 
10903, any person may offer to subsidize or purchase the railroad line 
that is the subject of such application. Such offer shall be filed 
concurrently with the Board. If the offer to subsidize or purchase is 
less than the carrier's estimate stated pursuant to subsection (b)(1), 
the offer shall explain the basis of the disparity, and the manner in 
which the offer is calculated.
    ``(d)(1) Unless the Board, within 15 days after the expiration of 
the 4-month period described in subsection (c), finds that one or more 
financially responsible persons (including a governmental authority) 
have offered financial assistance regarding that part of the railroad 
line to be abandoned or over which all rail transportation is to be 
discontinued, abandonment or discontinuance may be carried out in 
accordance with section 10903.
    ``(2) If the Board finds that such an offer or offers of financial 
assistance has been made within such period, abandonment or 
discontinuance shall be postponed until--
            ``(A) the carrier and a financially responsible person have 
        reached agreement on a transaction for subsidy or sale of the 
        line; or
            ``(B) the conditions and amount of compensation are 
        established under subsection (f).

    ``(e) Except as provided in subsection (f)(3), if the rail carrier 
and a financially responsible person (including a governmental 
authority) fail to agree on the amount or terms of the subsidy or 
purchase, either party may, within 30 days after the offer is made, 
request that the Board establish the conditions and amount of 
compensation.
    ``(f)(1) Whenever the Board is requested to establish the conditions 
and amount of compensation under this section--
            ``(A) the Board shall render its decision within 30 days;
            ``(B) for proposed sales, the Board shall determine the 
        price and other terms of sale, except that in no case shall the 
        Board set a price which is below the fair market value of the 
        line (including, unless otherwise mutually agreed, all 
        facilities on the line or portion necessary to provide effective 
        transportation services); and
            ``(C) for proposed subsidies, the Board shall establish the 
        compensation as the difference between the revenues attributable 
        to that part of the railroad line and the avoidable cost of 
        providing rail freight transportation on the line, plus a 
        reasonable return on the value of the line.

    ``(2) The decision of the Board shall be binding on both parties, 
except that the person who has offered to subsidize or purchase the line 
may withdraw his offer within 10 days of the Board's decision. In such a 
case, the abandonment or discontinuance may

[[Page 109 STAT. 827]]

be carried out immediately, unless other offers are being considered 
pursuant to paragraph (3) of this subsection.
    ``(3) If a rail carrier receives more than one offer to subsidize or 
purchase, it shall select the offeror with whom it wishes to transact 
business, and complete the subsidy or sale agreement, or request that 
the Board establish the conditions and amount of compensation before the 
40th day after the expiration of the 4-month period described in 
subsection (c). If no agreement on subsidy or sale is reached within 
such 40-day period and the Board has not been requested to establish the 
conditions and amount of compensation, any other offeror whose offer was 
made within the 4-month period described in subsection (c) may request 
that the Board establish the conditions and amount of compensation. If 
the Board has established the conditions and amount of compensation, and 
the original offer has been withdrawn, any other offeror whose offer was 
made within the 4-month period described in subsection (c) may accept 
the Board's decision within 20 days after such decision, and the Board 
shall require the carrier to enter into a subsidy or sale agreement with 
such offeror, if such subsidy or sale agreement incorporates the Board's 
decision.

    ``(4)(A) No purchaser of a line or portion of line sold under this 
section may transfer or discontinue service on such line prior to the 
end of the second year after consummation of the sale, nor may such 
purchaser transfer such line, except to the rail carrier from whom it 
was purchased, prior to the end of the fifth year after consummation of 
the sale.
    ``(B) No subsidy arrangement approved under this section shall 
remain in effect for more than one year, unless otherwise mutually 
agreed by the parties.
    ``(g) Upon abandonment of a railroad line under this chapter, the 
obligation of the rail carrier abandoning the line to provide 
transportation on that line, as required by section 11101(a), is 
extinguished.
``Sec. 10905. Offering abandoned rail properties for sale for 
                      public purposes

    ``When the Board approves an application to abandon or discontinue 
under section 10903, the Board shall find whether the rail properties 
that are involved in the proposed abandonment or discontinuance are 
appropriate for use for public purposes, including highways, other forms 
of mass transportation, conservation, energy production or transmission, 
or recreation. If the Board finds that the rail properties proposed to 
be abandoned are appropriate for public purposes and not required for 
continued rail operations, the properties may be sold, leased, 
exchanged, or otherwise disposed of only under conditions provided in 
the order of the Board. The conditions may include a prohibition on any 
such disposal for a period of not more than 180 days after the effective 
date of the order, unless the properties have first been offered, on 
reasonable terms, for sale for public purposes.

``Sec. 10906. Exception

    ``Notwithstanding section 10901 and subchapter II of chapter 113 of 
this title, and without the approval of the Board, a rail carrier 
providing transportation subject to the jurisdiction of the Board under 
this part may enter into arrangements for the joint ownership or joint 
use of spur, industrial, team, switching, or side

[[Page 109 STAT. 828]]

tracks. The Board does not have authority under this chapter over 
construction, acquisition, operation, abandonment, or discontinuance of 
spur, industrial, team, switching, or side tracks.

``Sec. 10907. Railroad development

    ``(a) In this section, the term `financially responsible person' 
means a person who--
            ``(1) is capable of paying the constitutional minimum value 
        of the railroad line proposed to be acquired; and
            ``(2) is able to assure that adequate transportation will be 
        provided over such line for a period of not less than 3 years.

Such term includes a governmental authority but does not include a Class 
I or Class II rail carrier.
    ``(b)(1) When the Board finds that--
            ``(A)(i) the public convenience and necessity require or 
        permit the sale of a particular railroad line under this 
        section; or
            ``(ii) a railroad line is on a system diagram map as 
        required under section 10903 of this title, but the rail carrier 
        owning such line has not filed an application to abandon such 
        line under section 10903 of this title before an application to 
        purchase such line, or any required preliminary filing with 
        respect to such application, is filed under this section; and
            ``(B) an application to purchase such line has been filed by 
        a financially responsible person,

the Board shall require the rail carrier owning the railroad line to 
sell such line to such financially responsible person at a price not 
less than the constitutional minimum value.
    ``(2) For purposes of this subsection, the constitutional minimum 
value of a particular railroad line shall be presumed to be not less 
than the net liquidation value of such line or the going concern value 
of such line, whichever is greater.
    ``(c)(1) For purposes of this section, the Board may determine that 
the public convenience and necessity require or permit the sale of a 
railroad line if the Board determines, after a hearing on the record, 
that--
            ``(A) the rail carrier operating such line refuses within a 
        reasonable time to make the necessary efforts to provide 
        adequate service to shippers who transport traffic over such 
        line;
            ``(B) the transportation over such line is inadequate for 
        the majority of shippers who transport traffic over such line;
            ``(C) the sale of such line will not have a significantly 
        adverse financial effect on the rail carrier operating such 
        line;
            ``(D) the sale of such line will not have an adverse effect 
        on the overall operational performance of the rail carrier 
        operating such line; and
            ``(E) the sale of such line will be likely to result in 
        improved railroad transportation for shippers that transport 
        traffic over such line.

    ``(2) In a proceeding under this subsection, the burden of proving 
that the public convenience and necessity require or permit the sale of 
a particular railroad line is on the person filing the application to 
acquire such line. <<NOTE: Notification. Federal Register, 
publication.>> If the Board finds under this subsection that the public 
convenience and necessity require or permit the sale of a particular 
railroad line, the Board shall concurrently

[[Page 109 STAT. 829]]

notify the parties of such finding and publish such finding in the 
Federal Register.

    ``(d) In the case of any railroad line subject to sale under 
subsection (a) of this section, the Board shall, upon the request of the 
acquiring carrier, require the selling carrier to provide to the 
acquiring carrier trackage rights to allow a reasonable interchange with 
the selling carrier or to move power equipment or empty rolling stock 
between noncontiguous feeder lines operated by the acquiring carrier. 
The Board shall require the acquiring carrier to provide the selling 
carrier reasonable compensation for any such trackage rights.
    ``(e) The Board shall require, to the maximum extent practicable, 
the use of the employees who would normally have performed work in 
connection with a railroad line subject to a sale under this section.
    ``(f) In the case of a railroad line which carried less than 
3,000,000 gross ton miles of traffic per mile in the preceding calendar 
year, whenever a purchasing carrier under this section petitions the 
Board for joint rates applicable to traffic moving over through routes 
in which the purchasing carrier may practicably participate, the Board 
shall, within 30 days after the date such petition is filed and pursuant 
to section 10705(a) of this title, require the establishment of 
reasonable joint rates and divisions over such route.
    ``(g)(1) Any person operating a railroad line acquired under this 
section may elect to be exempt from any of the provisions of this part, 
except that such a person may not be exempt from the provisions of 
chapter 107 of this title with respect to transportation under a joint 
rate.
    ``(2) <<NOTE: Applicability.>> The provisions of paragraph (1) of 
this subsection shall apply to any line of railroad which was abandoned 
during the 18-month period immediately prior to October 1, 1980, and was 
subsequently purchased by a financially responsible person.

    ``(h) If a purchasing carrier under this section proposes to sell or 
abandon all or any portion of a purchased railroad line, such purchasing 
carrier shall offer the right of first refusal with respect to such line 
or portion thereof to the carrier which sold such line under this 
section. Such offer shall be made at a price equal to the sum of the 
price paid by such purchasing carrier to such selling carrier for such 
line or portion thereof and the fair market value (less deterioration) 
of any improvements made, as adjusted to reflect inflation.
    ``(i) Any person operating a railroad line acquired under this 
section may determine preconditions, such as payment of a subsidy, which 
must be met by shippers in order to obtain service over such lines, but 
such operator must notify the shippers on the line of its intention to 
impose such preconditions.

                        ``CHAPTER 111--OPERATIONS

                  ``SUBCHAPTER I--GENERAL REQUIREMENTS

``Sec.
``11101. Common carrier transportation, service, and rates.
``11102. Use of terminal facilities.
``11103. Switch connections and tracks.

                      ``SUBCHAPTER II--CAR SERVICE

``11121. Criteria.

[[Page 109 STAT. 830]]

``11122. Compensation and practice.
``11123. Situations requiring immediate action to serve the public.
``11124. War emergencies; embargoes imposed by carriers.

                  ``SUBCHAPTER III--REPORTS AND RECORDS

``11141. Definitions.
``11142. Uniform accounting system.
``11143. Depreciation charges.
``11144. Records: form; inspection; preservation.
``11145. Reports by rail carriers, lessors, and associations.

                ``SUBCHAPTER IV--RAILROAD COST ACCOUNTING

``11161. Implementation of cost accounting principles.
``11162. Rail carrier cost accounting system.
``11163. Cost availability.
``11164. Accounting and cost reporting.

                  ``SUBCHAPTER I--GENERAL REQUIREMENTS

``Sec. 11101. Common carrier transportation, service, and rates

    ``(a) A rail carrier providing transportation or service subject to 
the jurisdiction of the Board under this part shall provide the 
transportation or service on reasonable request. A rail carrier shall 
not be found to have violated this section because it fulfills its 
reasonable commitments under contracts authorized under section 10709 of 
this title before responding to reasonable requests for service. 
Commitments which deprive a carrier of its ability to respond to 
reasonable requests for common carrier service are not reasonable.
    ``(b) A rail carrier shall also provide to any person, on request, 
the carrier's rates and other service terms. The response by a rail 
carrier to a request for the carrier's rates and other service terms 
shall be--
            ``(1) in writing and forwarded to the requesting person 
        promptly after receipt of the request; or
            ``(2) promptly made available in electronic form.

    ``(c) A rail carrier may not increase any common carrier rates or 
change any common carrier service terms unless 20 days have expired 
after written or electronic notice is provided to any person who, within 
the previous 12 months--
            ``(1) has requested such rates or terms under subsection 
        (b); or
            ``(2) has made arrangements with the carrier for a shipment 
        that would be subject to such increased rates or changed terms.

    ``(d) <<NOTE: Publication. Public information.>> With respect to 
transportation of agricultural products, in addition to the requirements 
of subsections (a), (b), and (c), a rail carrier shall publish, make 
available, and retain for public inspection its common carrier rates, 
schedules of rates, and other service terms, and any proposed and actual 
changes to such rates and service terms. For purposes of this 
subsection, agricultural products shall include grain as defined in 
section 3 of the United States Grain Standards Act (7 U.S.C. 75) and all 
products thereof, and fertilizer.

    ``(e) A rail carrier shall provide transportation or service in 
accordance with the rates and service terms, and any changes thereto, as 
published or otherwise made available under subsection (b), (c), or (d).
    ``(f) <<NOTE: Regulations.>> The Board shall, by regulation, 
establish rules to implement this section. The regulations shall provide 
for immediate disclosure and dissemination of rates and service terms, 
including classifica

[[Page 109 STAT. 831]]

tions, rules, and practices, and their effective dates. Final 
regulations shall be adopted by the Board not later than 180 days after 
the effective date of the ICC Termination Act of 1995.

``Sec. 11102. Use of terminal facilities

    ``(a) The Board may require terminal facilities, including main-line 
tracks for a reasonable distance outside of a terminal, owned by a rail 
carrier providing transportation subject to the jurisdiction of the 
Board under this part, to be used by another rail carrier if the Board 
finds that use to be practicable and in the public interest without 
substantially impairing the ability of the rail carrier owning the 
facilities or entitled to use the facilities to handle its own business. 
The rail carriers are responsible for establishing the conditions and 
compensation for use of the facilities. However, if the rail carriers 
cannot agree, the Board may establish conditions and compensation for 
use of the facilities under the principle controlling compensation in 
condemnation proceedings. The compensation shall be paid or adequately 
secured before a rail carrier may begin to use the facilities of another 
rail carrier under this section.
    ``(b) A rail carrier whose terminal facilities are required to be 
used by another rail carrier under this section is entitled to recover 
damages from the other rail carrier for injuries sustained as the result 
of compliance with the requirement or for compensation for the use, or 
both as appropriate, in a civil action, if it is not satisfied with the 
conditions for use of the facilities or if the amount of the 
compensation is not paid promptly.
    ``(c)(1) The Board may require rail carriers to enter into 
reciprocal switching agreements, where it finds such agreements to be 
practicable and in the public interest, or where such agreements are 
necessary to provide competitive rail service. The rail carriers 
entering into such an agreement shall establish the conditions and 
compensation applicable to such agreement, but, if the rail carriers 
cannot agree upon such conditions and compensation within a reasonable 
period of time, the Board may establish such conditions and 
compensation.
    ``(2) The Board may require reciprocal switching agreements entered 
into by rail carriers pursuant to this subsection to contain provisions 
for the protection of the interests of employees affected thereby.
    ``(d) The Board shall complete any proceeding under subsection (a) 
or (b) within 180 days after the filing of the request for relief.

``Sec. 11103. Switch connections and tracks

    ``(a) On application of the owner of a lateral branch line of 
railroad, or of a shipper tendering interstate traffic for 
transportation, a rail carrier providing transportation subject to the 
jurisdiction of the Board under this part shall construct, maintain, and 
operate, on reasonable conditions, a switch connection to connect that 
branch line or private side track with its railroad and shall furnish 
cars to move that traffic to the best of its ability without 
discrimination in favor of or against the shipper when the connection--
            ``(1) is reasonably practicable;
            ``(2) can be made safely; and
            ``(3) will furnish sufficient business to justify its 
        construction and maintenance.

[[Page 109 STAT. 832]]

    ``(b) If a rail carrier fails to install and operate a switch 
connection after application is made under subsection (a) of this 
section, the owner of the lateral branch line of railroad or the shipper 
may file a complaint with the Board under section 11701 of this title. 
The Board shall investigate the complaint and decide the safety, 
practicability, justification, and compensation to be paid for the 
connection. The Board may direct the rail carrier to comply with 
subsection (a) of this section only after a full hearing.

                      ``SUBCHAPTER II--CAR SERVICE

``Sec. 11121. Criteria

    ``(a)(1) <<NOTE: Safety.>> A rail carrier providing transportation 
subject to the jurisdiction of the Board under this part shall furnish 
safe and adequate car service and establish, observe, and enforce 
reasonable rules and practices on car service. The Board may require a 
rail carrier to provide facilities and equipment that are reasonably 
necessary to furnish safe and adequate car service if the Board decides 
that the rail carrier has materially failed to furnish that service. The 
Board may begin a proceeding under this paragraph when an interested 
person files an application with it. The Board may act only after a 
hearing on the record and an affirmative finding, based on the evidence 
presented, that--
            ``(A) providing the facilities or equipment will not 
        materially and adversely affect the ability of the rail carrier 
        to provide safe and adequate transportation;
            ``(B) the amount spent for the facilities or equipment, 
        including a return equal to the rail carrier's current cost of 
        capital, will be recovered; and
            ``(C) providing the facilities or equipment will not impair 
        the ability of the rail carrier to attract adequate capital.

    ``(2) The Board may require a rail carrier to file its car service 
rules with the Board.
    ``(b) The Board may designate and appoint agents and agencies to 
make and carry out its directions related to car service and matters 
under sections 11123 and 11124(a)(1) of this title.
    ``(c) The Board shall consult, as it considers necessary, with the 
National Grain Car Council on matters within the charter of that body.

``Sec. 11122. Compensation and practice

    ``(a) The regulations of the Board on car service shall encourage 
the purchase, acquisition, and efficient use of freight cars. The 
regulations may include--
            ``(1) the compensation to be paid for the use of a 
        locomotive, freight car, or other vehicle;
            ``(2) the other terms of any arrangement for the use by a 
        rail carrier of a locomotive, freight car, or other vehicle not 
        owned by the rail carrier using the locomotive, freight car, or 
        other vehicle, whether or not owned by another carrier, shipper, 
        or third person; and
            ``(3) sanctions for nonobservance.

    ``(b) The rate of compensation to be paid for each type of freight 
car shall be determined by the expense of owning and maintaining that 
type of freight car, including a fair return on its cost giving 
consideration to current costs of capital, repairs, materials, parts, 
and labor. In determining the rate of compensa

[[Page 109 STAT. 833]]

tion, the Board shall consider the transportation use of each type of 
freight car, the national level of ownership of each type of freight 
car, and other factors that affect the adequacy of the national freight 
car supply.
``Sec. 11123. Situations requiring immediate action to serve the 
                      public

    ``(a) When the Board determines that shortage of equipment, 
congestion of traffic, unauthorized cessation of operations, or other 
failure of traffic movement exists which creates an emergency situation 
of such magnitude as to have substantial adverse effects on shippers, or 
on rail service in a region of the United States, or that a rail carrier 
providing transportation subject to the jurisdiction of the Board under 
this part cannot transport the traffic offered to it in a manner that 
properly serves the public, the Board may, to promote commerce and 
service to the public, for a period not to exceed 30 days--
            ``(1) direct the handling, routing, and movement of the 
        traffic of a rail carrier and its distribution over its own or 
        other railroad lines;
            ``(2) require joint or common use of railroad facilities;
            ``(3) prescribe temporary through routes; or
            ``(4) give directions for--
                    ``(A) preference or priority in transportation;
                    ``(B) embargoes; or
                    ``(C) movement of traffic under permits.

    ``(b)(1) Except with respect to proceedings under paragraph (2) of 
this subsection, the Board may act under this section on its own 
initiative or on application without regard to subchapter II of chapter 
5 of title 5.
    ``(2) Rail carriers may establish between themselves the terms of 
compensation for operations, and use of facilities and equipment, 
required under this section. When rail carriers do not agree on the 
terms of compensation under this section, the Board may establish the 
terms for them. The Board may act under subsection (a) before conducting 
a proceeding under this paragraph.
    ``(3) When a rail carrier is directed under this section to operate 
the lines of another rail carrier due to that carrier's cessation of 
operations, compensation for the directed operations shall derive only 
from revenues generated by the directed operations.
    ``(c)(1) The Board may extend any action taken under subsection (a) 
of this section beyond 30 days if the Board finds that a transportation 
emergency described in subsection (a) continues to exist. Action by the 
Board under subsection (a) of this section may not remain in effect for 
more than 240 days beyond the initial 30-day period.
    ``(2) The Board may not take action under this section that would--
            ``(A) cause a rail carrier to operate in violation of this 
        part; or
            ``(B) impair substantially the ability of a rail carrier to 
        serve its own customers adequately, or to fulfill its common 
        carrier obligations.

    ``(3) A rail carrier directed by the Board to take action under this 
section is not responsible, as a result of that action, for debts of any 
other rail carrier.

[[Page 109 STAT. 834]]

    ``(d) In carrying out this section, the Board shall require, to the 
maximum extent practicable, the use of employees who would normally have 
performed work in connection with the traffic subject to the action of 
the Board.

``Sec. 11124. War emergencies; embargoes imposed by carriers

    ``(a)(1) When the President, during time of war or threatened war, 
notifies the Board that it is essential to the defense and security of 
the United States to give preference or priority to the movement of 
certain traffic, the Board shall direct that preference or priority be 
given to that traffic.
    ``(2) When the President, during time of war or threatened war, 
demands that preference and precedence be given to the transportation of 
troops and material of war over all other traffic, all rail carriers 
providing transportation subject to the jurisdiction of the Board under 
this part shall adopt every means within their control to facilitate and 
expedite the military traffic.

    ``(b) An embargo imposed by any such rail carrier does not apply to 
shipments consigned to agents of the United States Government for its 
use. The rail carrier shall deliver those shipments as promptly as 
possible.

                  ``SUBCHAPTER III--REPORTS AND RECORDS

``Sec. 11141. Definitions

    ``In this subchapter--
            ``(1) the terms `rail carrier' and `lessor' include a 
        receiver or trustee of a rail carrier and lessor, respectively;
            ``(2) the term `lessor' means a person owning a railroad 
        that is leased to and operated by a carrier providing 
        transportation subject to the jurisdiction of the Board under 
        this part; and
            ``(3) the term `association' means an organization 
        maintained by or in the interest of a group of rail carriers 
        providing transportation or service subject to the jurisdiction 
        of the Board under this part that performs a service, or engages 
        in activities, related to transportation under this part.

``Sec. 11142. Uniform accounting system

    ``The Board may prescribe a uniform accounting system for classes of 
rail carriers providing transportation subject to the jurisdiction of 
the Board under this part. To the maximum extent practicable, the Board 
shall conform such system to generally accepted accounting principles, 
and shall administer this subchapter in accordance with such principles.

``Sec. 11143. Depreciation charges

    ``The Board shall, for a class of rail carriers providing 
transportation subject to its jurisdiction under this part, prescribe, 
and change when necessary, those classes of property for which 
depreciation charges may be included under operating expenses and a rate 
of depreciation that may be charged to a class of property. The Board 
may classify those rail carriers for purposes of this section. A rail 
carrier for whom depreciation charges and rates of depreciation are in 
effect under this section for any class of property may not--

[[Page 109 STAT. 835]]

            ``(1) charge to operating expenses a depreciation charge on 
        a class of property other than that prescribed by the Board;
            ``(2) charge another rate of depreciation; or
            ``(3) include other depreciation charges in operating 
        expenses.

``Sec. 11144. Records: form; inspection; preservation

    ``(a) The Board may prescribe the form of records required to be 
prepared or compiled under this subchapter--
            ``(1) by rail carriers and lessors, including records 
        related to movement of traffic and receipts and expenditures of 
        money; and
            ``(2) by persons furnishing cars to or for a rail carrier 
        providing transportation subject to the jurisdiction of the 
        Board under this part to the extent related to those cars or 
        that service.

    ``(b) The Board, or an employee designated by the Board, may on 
demand and display of proper credentials--
            ``(1) inspect and examine the lands, buildings, and 
        equipment of a rail carrier or lessor; and
            ``(2) inspect and copy any record of--
                    ``(A) a rail carrier, lessor, or association;
                    ``(B) a person controlling, controlled by, or under 
                common control with a rail carrier if the Board 
                considers inspection relevant to that person's relation 
                to, or transaction with, that rail carrier; and
                    ``(C) a person furnishing cars to or for a rail 
                carrier if the Board prescribed the form of that record.

    ``(c) The Board may prescribe the time period during which 
operating, accounting, and financial records must be preserved by rail 
carriers, lessors, and persons furnishing cars.

``Sec. 11145. Reports by rail carriers, lessors, and associations

    ``(a) The Board may require--
            ``(1) rail carriers, lessors, and associations, or classes 
        of them as the Board may prescribe, to file annual, periodic, 
        and special reports with the Board containing answers to 
        questions asked by it; and
            ``(2) a person furnishing cars to a rail carrier to file 
        reports with the Board containing answers to questions about 
        those cars.

    ``(b)(1) An annual report shall contain an account, in as much 
detail as the Board may require, of the affairs of the rail carrier, 
lessor, or association for the 12-month period ending on December 31 of 
each year.
    ``(2) An annual report shall be filed with the Board by the end of 
the third month after the end of the year for which the report is made 
unless the Board extends the filing date or changes the period covered 
by the report. The annual report and, if the Board requires, any other 
report made under this section, shall be made under oath.

                ``SUBCHAPTER IV--RAILROAD COST ACCOUNTING

``Sec. 11161. Implementation of cost accounting principles

    ``The Board shall periodically review its cost accounting rules and 
shall make such changes in those rules as are required to

[[Page 109 STAT. 836]]

achieve the regulatory purposes of this part. The Board shall insure 
that the rules promulgated under this section are the most efficient and 
least burdensome means by which the required information may be 
developed for regulatory purposes. To the maximum extent practicable, 
the Board shall conform such rules to generally accepted accounting 
principles.

``Sec. 11162. Rail carrier cost accounting system

    ``(a) Each rail carrier shall have and maintain a cost accounting 
system that is in compliance with the rules promulgated by the Board 
under section 11161 of this title. A rail carrier may, after notifying 
the Board, make modifications in such system unless, within 60 days 
after the date of notification, the Board finds such modifications to be 
inconsistent with the rules promulgated by the Board under section 11161 
of this title.
    ``(b) For purposes of determining whether the cost accounting system 
of a rail carrier is in compliance with the rules promulgated by the 
Board, the Board shall have the right to examine and make copies of any 
documents, papers, or records of such rail carrier relating to 
compliance with such rules. Such documents, papers, and records (and any 
copies thereof) shall not be subject to the mandatory disclosure 
requirements of section 552 of title 5.

``Sec. 11163. Cost availability

    ``As required by the rules of the Board governing discovery in Board 
proceedings, rail carriers shall make relevant cost data available to 
shippers, States, ports, communities, and other interested parties that 
are a party to a Board proceeding in which such data are required.

``Sec. 11164. Accounting and cost reporting

    ``To obtain expense and revenue information for regulatory purposes, 
the Board may promulgate reasonable rules for rail carriers providing 
transportation subject to the jurisdiction of the Board under this part, 
prescribing expense and revenue accounting and reporting requirements 
consistent with generally accepted accounting principles uniformly 
applied to such carriers. Such requirements shall be cost effective and 
compatible with and not duplicative of the managerial and responsibility 
accounting requirements of those carriers.

                         ``CHAPTER 113--FINANCE

         ``SUBCHAPTER I--EQUIPMENT TRUSTS AND SECURITY INTERESTS

``Sec.
``11301. Equipment trusts: recordation; evidence of indebtedness.

                      ``SUBCHAPTER II--COMBINATIONS

``11321. Scope of authority.
``11322. Limitation on pooling and division of transportation or 
           earnings.
``11323. Consolidation, merger, and acquisition of control.
``11324. Consolidation, merger, and acquisition of control: conditions 
           of approval.
``11325. Consolidation, merger, and acquisition of control: procedure.
``11326. Employee protective arrangements in transactions involving rail 
           carriers.
``11327. Supplemental orders.
``11328. Restrictions on officers and directors.

[[Page 109 STAT. 837]]

         ``SUBCHAPTER I--EQUIPMENT TRUSTS AND SECURITY INTERESTS

``Sec. 11301. Equipment trusts: recordation; evidence of 
                      indebtedness

    ``(a) A mortgage (other than a mortgage under chapter 313 of title 
46), lease, equipment trust agreement, conditional sales agreement, or 
other instrument evidencing the mortgage, lease, conditional sale, or 
bailment of or security interest in vessels, railroad cars, locomotives, 
or other rolling stock, or accessories used on such railroad cars, 
locomotives, or other rolling stock (including superstructures and 
racks), intended for a use related to interstate commerce shall be filed 
with the Board in order to perfect the security interest that is the 
subject of such instrument. An assignment of a right or interest under 
one of those instruments and an amendment to that instrument or 
assignment including a release, discharge, or satisfaction of any part 
of it shall also be filed with the Board. The instrument, assignment, or 
amendment must be in writing, executed by the parties to it, and 
acknowledged or verified under Board regulations. When filed under this 
section, that document is notice to, and enforceable against, all 
persons. A document filed under this section does not have to be filed, 
deposited, registered, or recorded under another law of the United 
States, a State (or its political subdivisions), or territory or 
possession of the United States, related to filing, deposit, 
registration, or recordation of those documents. This section does not 
change chapter 313 of title 46.

    ``(b) The Board shall maintain a system for recording each document 
filed under subsection (a) of this section and mark each of them with a 
consecutive number and the date and hour of their 
recordation. <<NOTE: Public information.>> The Board shall maintain and 
keep open for public inspection an index of documents filed under that 
subsection. That index shall include the name and address of the 
principal debtors, trustees, guarantors, and other parties to those 
documents and may include other facts that will assist in determining 
the rights of the parties to those transactions.

    ``(c) The Board may to the greatest extent practicable perform its 
functions under this section through contracts with private sector 
entities.

    ``(d) A mortgage, lease, equipment trust agreement, conditional 
sales agreement, or other instrument evidencing the mortgage, lease, 
conditional sale, or bailment of or security interest in vessels, 
railroad cars, locomotives, or other rolling stock, or accessories used 
on such railroad cars, locomotives, or other rolling stock (including 
superstructures and racks), or any assignment thereof, which--
            ``(1) is duly constituted under the laws of a country other 
        than the United States; and
            ``(2) relates to property that bears the reporting marks and 
        identification numbers of any person domiciled in or corporation 
        organized under the laws of such country,

shall be recognized with the same effect as having been filed under this 
section.
    ``(e) Interests with respect to which documents are filed or 
recognized under this section are deemed perfected in all jurisdictions, 
and shall be governed by applicable State or foreign law in all matters 
not specifically governed by this section.

[[Page 109 STAT. 838]]

    ``(f) <<NOTE: Public information.>> The Board shall collect, 
maintain, and keep open for public inspection a railway equipment 
register consistent with the manner and format maintained by the 
Interstate Commerce Commission as of the effective date of the ICC 
Termination Act of 1995.

                      ``SUBCHAPTER II--COMBINATIONS

``Sec. 11321. Scope of authority

    ``(a) The authority of the Board under this subchapter is exclusive. 
A rail carrier or corporation participating in or resulting from a 
transaction approved by or exempted by the Board under this subchapter 
may carry out the transaction, own and operate property, and exercise 
control or franchises acquired through the transaction without the 
approval of a State authority. A rail carrier, corporation, or person 
participating in that approved or exempted transaction is exempt from 
the antitrust laws and from all other law, including State and municipal 
law, as necessary to let that rail carrier, corporation, or person carry 
out the transaction, hold, maintain, and operate property, and exercise 
control or franchises acquired through the transaction. However, if a 
purchase and sale, a lease, or a corporate consolidation or merger is 
involved in the transaction, the carrier or corporation may carry out 
the transaction only with the assent of a majority, or the number 
required under applicable State law, of the votes of the holders of the 
capital stock of that corporation entitled to vote. The vote must occur 
at a regular meeting, or special meeting called for that purpose, of 
those stockholders and the notice of the meeting must indicate its 
purpose.
    ``(b) A power granted under this subchapter to a carrier or 
corporation is in addition to and changes its powers under its corporate 
charter and under State law. Action under this subchapter does not 
establish or provide for establishing a corporation under the laws of 
the United States.
``Sec. 11322. Limitation on pooling and division of transportation 
                      or earnings

    ``(a) A rail carrier providing transportation subject to the 
jurisdiction of the Board under this part may not agree or combine with 
another of those rail carriers to pool or divide traffic or services or 
any part of their earnings without the approval of the Board under this 
section or section 11123 of this title. The Board may approve and 
authorize the agreement or combination if the rail carriers involved 
assent to the pooling or division and the Board finds that a pooling or 
division of traffic, services, or earnings--
            ``(1) will be in the interest of better service to the 
        public or of economy of operation; and
            ``(2) will not unreasonably restrain competition.

    ``(b) The Board may impose conditions governing the pooling or 
division and may approve and authorize payment of a reasonable 
consideration between the rail carriers.
    ``(c) The Board may begin a proceeding under this section on its own 
initiative or on application.

``Sec. 11323. Consolidation, merger, and acquisition of control

    ``(a) The following transactions involving rail carriers providing 
transportation subject to the jurisdiction of the Board under this

[[Page 109 STAT. 839]]

part may be carried out only with the approval and authorization of the 
Board:
            ``(1) Consolidation or merger of the properties or 
        franchises of at least 2 rail carriers into one corporation for 
        the ownership, management, and operation of the previously 
        separately owned properties.
            ``(2) A purchase, lease, or contract to operate property of 
        another rail carrier by any number of rail carriers.
            ``(3) Acquisition of control of a rail carrier by any number 
        of rail carriers.
            ``(4) Acquisition of control of at least 2 rail carriers by 
        a person that is not a rail carrier.
            ``(5) Acquisition of control of a rail carrier by a person 
        that is not a rail carrier but that controls any number of rail 
        carriers.
            ``(6) Acquisition by a rail carrier of trackage rights over, 
        or joint ownership in or joint use of, a railroad line (and 
        terminals incidental to it) owned or operated by another rail 
        carrier.

    ``(b) A person may carry out a transaction referred to in subsection 
(a) of this section or participate in achieving the control or 
management, including the power to exercise control or management, in a 
common interest of more than one of those rail carriers, regardless of 
how that result is reached, only with the approval and authorization of 
the Board under this subchapter. In addition to other transactions, each 
of the following transactions are considered achievements of control or 
management:
            ``(1) A transaction by a rail carrier that has the effect of 
        putting that rail carrier and person affiliated with it, taken 
        together, in control of another rail carrier.
            ``(2) A transaction by a person affiliated with a rail 
        carrier that has the effect of putting that rail carrier and 
        persons affiliated with it, taken together, in control of 
        another rail carrier.
            ``(3) A transaction by at least 2 persons acting together 
        (one of whom is a rail carrier or is affiliated with a rail 
        carrier) that has the effect of putting those persons and rail 
        carriers and persons affiliated with any of them, or with any of 
        those affiliated rail carriers, taken together, in control of 
        another rail carrier.

    ``(c) A person is affiliated with a rail carrier under this 
subchapter if, because of the relationship between that person and a 
rail carrier, it is reasonable to believe that the affairs of another 
rail carrier, control of which may be acquired by that person, will be 
managed in the interest of the other rail carrier.
``Sec. 11324. Consolidation, merger, and acquisition of control: 
                      conditions of approval

    ``(a) The Board may begin a proceeding to approve and authorize a 
transaction referred to in section 11323 of this title on application of 
the person seeking that authority. <<NOTE: Notification.>> When an 
application is filed with the Board, the Board shall notify the chief 
executive officer of each State in which property of the rail carriers 
involved in the proposed transaction is located and shall notify those 
rail carriers. The Board shall hold a public hearing unless the Board 
determines that a public hearing is not necessary in the public 
interest.

[[Page 109 STAT. 840]]

    ``(b) In a proceeding under this section which involves the merger 
or control of at least two Class I railroads, as defined by the Board, 
the Board shall consider at least--
            ``(1) the effect of the proposed transaction on the adequacy 
        of transportation to the public;
            ``(2) the effect on the public interest of including, or 
        failing to include, other rail carriers in the area involved in 
        the proposed transaction;
            ``(3) the total fixed charges that result from the proposed 
        transaction;
            ``(4) the interest of rail carrier employees affected by the 
        proposed transaction; and
            ``(5) whether the proposed transaction would have an adverse 
        effect on competition among rail carriers in the affected region 
        or in the national rail system.

    ``(c) The Board shall approve and authorize a transaction under this 
section when it finds the transaction is consistent with the public 
interest. The Board may impose conditions governing the transaction, 
including the divestiture of parallel tracks or requiring the granting 
of trackage rights and access to other facilities. Any trackage rights 
and related conditions imposed to alleviate anticompetitive effects of 
the transaction shall provide for operating terms and compensation 
levels to ensure that such effects are alleviated. When the transaction 
contemplates a guaranty or assumption of payment of dividends or of 
fixed charges or will result in an increase of total fixed charges, the 
Board may approve and authorize the transaction only if it finds that 
the guaranty, assumption, or increase is consistent with the public 
interest. The Board may require inclusion of other rail carriers located 
in the area involved in the transaction if they apply for inclusion and 
the Board finds their inclusion to be consistent with the public 
interest.
    ``(d) In a proceeding under this section which does not involve the 
merger or control of at least two Class I railroads, as defined by the 
Board, the Board shall approve such an application unless it finds 
that--
            ``(1) as a result of the transaction, there is likely to be 
        substantial lessening of competition, creation of a monopoly, or 
        restraint of trade in freight surface transportation in any 
        region of the United States; and
            ``(2) the anticompetitive effects of the transaction 
        outweigh the public interest in meeting significant 
        transportation needs.

In making such findings, the Board shall, with respect to any 
application that is part of a plan or proposal developed under section 
333(a)-(d) of this title, accord substantial weight to any 
recommendations of the Attorney General.
    ``(e) No transaction described in section 11326(b) may have the 
effect of avoiding a collective bargaining agreement or shifting work 
from a rail carrier with a collective bargaining agreement to a rail 
carrier without a collective bargaining agreement.
    ``(f)(1) To the extent provided in this subsection, a proceeding 
under this subchapter relating to a transaction involving at least one 
Class I rail carrier shall not be considered an adjudication required by 
statute to be determined on the record after opportunity for an agency 
hearing, for the purposes of subchapter II of chapter 5 of title 5, 
United States Code.

[[Page 109 STAT. 841]]

    ``(2) Ex parte communications, as defined in section 551(14) of 
title 5, United States Code, shall be permitted in proceedings described 
in paragraph (1) of this subsection, subject to the requirements of 
paragraph (3) of this subsection.
    ``(3)(A) Any member or employee of the Board who makes or receives a 
written ex parte communication concerning the merits of a proceeding 
described in paragraph (1) shall promptly place the communication in the 
public docket of the proceeding.
    ``(B) Any member or employee of the Board who makes or receives an 
oral ex parte communication concerning the merits of a proceeding 
described in paragraph (1) shall promptly place a written summary of the 
oral communication in the public docket of the proceeding.
    ``(4) Nothing in this subsection shall be construed to require the 
Board or any of its members or employees to engage in any ex parte 
communication with any person. Nothing in this subsection or any other 
law shall be construed to limit the authority of the members or 
employees of the Board, in their discretion, to note in the docket or 
otherwise publicly the occurrence and substance of an ex parte 
communication.
``Sec. 11325. Consolidation, merger, and acquisition of control: 
                      procedure

    ``(a) <<NOTE: Federal Register, publication.>> The Board shall 
publish notice of the application under section 11324 in the Federal 
Register by the end of the 30th day after the application is filed with 
the Board. However, if the application is incomplete, the Board shall 
reject it by the end of that period. The order of rejection is a final 
action of the Board. The published notice shall indicate whether the 
application involves--
            ``(1) the merger or control of at least two Class I 
        railroads, as defined by the Board, to be decided within the 
        time limits specified in subsection (b) of this section;
            ``(2) transactions of regional or national transportation 
        significance, to be decided within the time limits specified in 
        subsection (c) of this section; or
            ``(3) any other transaction covered by this section, to be 
        decided within the time limits specified in subsection (d) of 
        this section.

    ``(b) If the application involves the merger or control of two or 
more Class I railroads, as defined by the Board, the following 
conditions apply:
            ``(1) Written comments about an application may be filed 
        with the Board within 45 days after notice of the application is 
        published under subsection (a) of this section. Copies of such 
        comments shall be served on the Attorney General and the 
        Secretary of Transportation, who may decide to intervene as a 
        party to the proceeding. That decision must be made by the 15th 
        day after the date of receipt of the written comments, and if 
        the decision is to intervene, preliminary comments about the 
        application must be sent to the Board by the end of the 15th day 
        after the date of receipt of the written comments.
            ``(2) The Board shall require that applications inconsistent 
        with an application, notice of which was published under 
        subsection (a) of this section, and applications for inclusion 
        in

[[Page 109 STAT. 842]]

        the transaction, be filed with it by the 90th day after 
        publication of notice under that subsection.
            ``(3) The Board must conclude evidentiary proceedings by the 
        end of 1 year after the date of publication of notice under 
        subsection (a) of this section. The Board must issue a final 
        decision by the 90th day after the date on which it concludes 
        the evidentiary proceedings.

    ``(c) If the application involves a transaction other than the 
merger or control of at least two Class I railroads, as defined by the 
Board, which the Board has determined to be of regional or national 
transportation significance, the following conditions apply:
            ``(1) Written comments about an application, including 
        comments of the Attorney General and the Secretary of 
        Transportation, may be filed with the Board within 30 days after 
        notice of the application is published under subsection (a) of 
        this section.
            ``(2) The Board shall require that applications inconsistent 
        with an application, notice of which was published under 
        subsection (a) of this section, and applications for inclusion 
        in the transaction, be filed with it by the 60th day after 
        publication of notice under that subsection.
            ``(3) The Board must conclude any evidentiary proceedings by 
        the 180th day after the date of publication of notice under 
        subsection (a) of this section. The Board must issue a final 
        decision by the 90th day after the date on which it concludes 
        the evidentiary proceedings.

    ``(d) For all applications under this section other than those 
specified in subsections (b) and (c) of this section, the following 
conditions apply:
            ``(1) Written comments about an application, including 
        comments of the Attorney General and the Secretary of 
        Transportation, may be filed with the Board within 30 days after 
        notice of the application is published under subsection (a) of 
        this section.
            ``(2) The Board must conclude any evidentiary proceedings by 
        the 105th day after the date of publication of notice under 
        subsection (a) of this section. The Board must issue a final 
        decision by the 45th day after the date on which it concludes 
        the evidentiary proceedings.
``Sec. 11326. Employee protective arrangements in transactions 
                      involving rail carriers

    ``(a) Except as otherwise provided in this section, when approval is 
sought for a transaction under sections 11324 and 11325 of this title, 
the Board shall require the rail carrier to provide a fair arrangement 
at least as protective of the interests of employees who are affected by 
the transaction as the terms imposed under section 5(2)(f)
of the Interstate Commerce Act before February 5, 1976, and the terms 
established under section 24706(c) of this title. Notwithstanding this 
part, the arrangement may be made by the rail carrier and the authorized 
representative of its employees. The arrangement and the order approving 
the transaction must require that the employees of the affected rail 
carrier will not be in a worse position related to their employment as a 
result of the transaction during the 4 years following the effective 
date of the final action of the Board (or if an employee was employed

[[Page 109 STAT. 843]]

for a lesser period of time by the rail carrier before the action became 
effective, for that lesser period).

    ``(b) <<NOTE: Severance pay.>> When approval is sought under 
sections 11324 and 11325 for a transaction involving one Class II and 
one or more Class III rail carriers, there shall be an arrangement as 
required under subsection (a) of this section, except that such 
arrangement shall be limited to one year of severance pay, which shall 
not exceed the amount of earnings from the railroad employment of that 
employee during the 12-month period immediately preceding the date on 
which the application for approval of such transaction is filed with the 
Board. The amount of such severance pay shall be reduced by the amount 
of earnings from railroad employment of that employee with the acquiring 
carrier during the 12-month period immediately following the effective 
date of the transaction. The parties may agree to terms other than as 
provided in this subsection.

    ``(c) When approval is sought under sections 11324 and 11325 for a 
transaction involving only Class III rail carriers, this section shall 
not apply.

``Sec. 11327. Supplemental orders

    ``When cause exists, the Board may make appropriate orders 
supplemental to an order made in a proceeding under sections 11322 
through 11326 of this title.

``Sec. 11328. Restrictions on officers and directors

    ``(a) A person may hold the position of officer or director of more 
than one rail carrier only when authorized by the Board. The Board may 
authorize a person to hold the position of officer or director of more 
than one of those carriers when public or private interests will not be 
adversely affected.
    ``(b) This section shall not apply to an individual holding the 
position of officer or director only of Class III rail carriers.

                 ``CHAPTER 115--FEDERAL-STATE RELATIONS

``Sec.
``11501. Tax discrimination against rail transportation property.
``11502. Withholding State and local income tax by rail carriers.

``Sec. 11501. Tax discrimination against rail transportation 
                      property

    ``(a) In this section--
            ``(1) the term `assessment' means valuation for a property 
        tax levied by a taxing district;
            ``(2) the term `assessment jurisdiction' means a 
        geographical area in a State used in determining the assessed 
        value of property for ad valorem taxation;
            ``(3) the term `rail transportation property' means 
        property, as defined by the Board, owned or used by a rail 
        carrier providing transportation subject to the jurisdiction of 
        the Board under this part; and
            ``(4) the term `commercial and industrial property' means 
        property, other than transportation property and land used 
        primarily for agricultural purposes or timber growing, devoted 
        to a commercial or industrial use and subject to a property tax 
        levy.

[[Page 109 STAT. 844]]

    ``(b) The following acts unreasonably burden and discriminate 
against interstate commerce, and a State, subdivision of a State, or 
authority acting for a State or subdivision of a State may not do any of 
them:
            ``(1) Assess rail transportation property at a value that 
        has a higher ratio to the true market value of the rail 
        transportation property than the ratio that the assessed value 
        of other commercial and industrial property in the same 
        assessment jurisdiction has to the true market value of the 
        other commercial and industrial property.
            ``(2) Levy or collect a tax on an assessment that may not be 
        made under paragraph (1) of this subsection.
            ``(3) Levy or collect an ad valorem property tax on rail 
        transportation property at a tax rate that exceeds the tax rate 
        applicable to commercial and industrial property in the same 
        assessment jurisdiction.
            ``(4) Impose another tax that discriminates against a rail 
        carrier providing transportation subject to the jurisdiction of 
        the Board under this part.

    ``(c) Notwithstanding section 1341 of title 28 and without regard to 
the amount in controversy or citizenship of the parties, a district 
court of the United States has jurisdiction, concurrent with other 
jurisdiction of courts of the United States and the States, to prevent a 
violation of subsection (b) of this section. Relief may be granted under 
this subsection only if the ratio of assessed value to true market value 
of rail transportation property exceeds by at least 5 percent the ratio 
of assessed value to true market value of other commercial and 
industrial property in the same assessment jurisdiction. The burden
of proof in determining assessed value and true market value is governed 
by State law. If the ratio of the assessed value of other commercial and 
industrial property in the assessment jurisdiction to the true market 
value of all other commercial and industrial property cannot be 
determined to the satisfaction of the district court through the random-
sampling method known as a sales assessment ratio study (to be carried 
out under statistical principles applicable to such a study), the court 
shall find, as a violation of this section--
            ``(1) an assessment of the rail transportation property at a 
        value that has a higher ratio to the true market value of the 
        rail transportation property than the assessed value of all 
        other property subject to a property tax levy in the assessment 
        jurisdiction has to the true market value of all other 
        commercial and industrial property; and
            ``(2) the collection of an ad valorem property tax on the 
        rail transportation property at a tax rate that exceeds the tax 
        ratio rate applicable to taxable property in the taxing 
        district.
``Sec. 11502. Withholding State and local income tax by rail 
                      carriers

    ``(a) No part of the compensation paid by a rail carrier providing 
transportation subject to the jurisdiction of the Board under this part 
to an employee who performs regularly assigned duties as such an 
employee on a railroad in more than one State shall be subject to the 
income tax laws of any State or subdivision of that State, other than 
the State or subdivision thereof of the employee's residence.

[[Page 109 STAT. 845]]

    ``(b) <<NOTE: Reports.>> A rail carrier withholding pay from an 
employee under subsection (a) of this section shall file income tax 
information returns and other reports only with the State and 
subdivision of residence of the employee.

    ``CHAPTER 117--ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND REMEDIES

``Sec.
``11701. General authority.
``11702. Enforcement by the Board.
``11703. Enforcement by the Attorney General.
``11704. Rights and remedies of persons injured by rail carriers.
``11705. Limitation on actions by and against rail carriers.
``11706. Liability of rail carriers under receipts and bills of lading.
``11707. Liability when property is delivered in violation of routing 
           instructions.

``Sec. 11701. General authority

    ``(a) Except as otherwise provided in this part, the Board may begin 
an investigation under this part only on complaint. If the Board finds 
that a rail carrier is violating this part, the Board shall take 
appropriate action to compel compliance with this part.
    ``(b) A person, including a governmental authority, may file with 
the Board a complaint about a violation of this part by a rail carrier 
providing transportation or service subject to the jurisdiction of the 
Board under this part. The complaint must state the facts that are the 
subject of the violation. The Board may dismiss a complaint it 
determines does not state reasonable grounds for investigation and 
action. However, the Board may not dismiss a complaint made against a 
rail carrier providing transportation subject to the jurisdiction of the 
Board under this part because of the absence of direct damage to the 
complainant.
    ``(c) A formal investigative proceeding begun by the Board under 
subsection (a) of this section is dismissed automatically unless it is 
concluded by the Board with administrative finality by the end of the 
third year after the date on which it was begun.

``Sec. 11702. Enforcement by the Board

    ``The Board may bring a civil action--
            ``(1) to enjoin a rail carrier from violating sections 10901 
        through 10906 of this title, or a regulation prescribed or order 
        or certificate issued under any of those sections;
            ``(2) to enforce subchapter II of chapter 113 of this title 
        and to compel compliance with an order of the Board under that 
        subchapter; and
            ``(3) to enforce an order of the Board, except a civil 
        action to enforce an order for the payment of money, when it is 
        violated by a rail carrier providing transportation subject to 
        the jurisdiction of the Board under this part.

``Sec. 11703. Enforcement by the Attorney General

    ``(a) The Attorney General may, and on request of the Board shall, 
bring court proceedings to enforce this part, or a regulation or order 
of the Board or certificate issued under this part, and to prosecute a 
person violating this part or a regulation or order of the Board or 
certificate issued under this part.
    ``(b) The United States Government may bring a civil action on 
behalf of a person to compel a rail carrier providing transportation 
subject to the jurisdiction of the Board under this part

[[Page 109 STAT. 846]]

to provide that transportation to that person in compliance with this 
part at the same rate charged, or on conditions as favorable as those 
given by the rail carrier, for like traffic under similar conditions to 
another person.
``Sec. 11704. Rights and remedies of persons injured by rail 
                      carriers

    ``(a) A person injured because a rail carrier providing 
transportation or service subject to the jurisdiction of the Board under 
this part does not obey an order of the Board, except an order for the 
payment of money, may
bring a civil action in a United States District Court to enforce that 
order under this subsection.

    ``(b) A rail carrier providing transportation subject to the 
jurisdiction of the Board under this part is liable for damages 
sustained by a person as a result of an act or omission of that carrier 
in violation of this part. A rail carrier providing transportation 
subject to the jurisdiction of the Board under this part is liable to a 
person for amounts charged that exceed the applicable rate for the 
transportation.
    ``(c)(1) A person may file a complaint with the Board under section 
11701(b) of this title or bring a civil action under subsection (b) of 
this section to enforce liability against a rail carrier providing 
transportation subject to the jurisdiction of the Board under this part.
    ``(2) When the Board makes an award under subsection (b) of this 
section, the Board shall order the rail carrier to pay the amount 
awarded by a specific date. The Board may order a rail carrier providing 
transportation subject to the jurisdiction of the Board under this part 
to pay damages only when the proceeding is on complaint. The person for 
whose benefit an order of the Board requiring the payment of money is 
made may bring a civil action to enforce that order under this paragraph 
if the rail carrier does not pay the amount awarded by the date payment 
was ordered to be made.
    ``(d)(1) When a person begins a civil action under subsection (b) of 
this section to enforce an order of the Board requiring the payment of 
damages by a rail carrier providing transportation subject to the 
jurisdiction of the Board under this part, the text of the order of the 
Board must be included in the complaint. In addition to the district 
courts of the United States, a State court of general jurisdiction 
having jurisdiction of the parties has jurisdiction to enforce an order 
under this paragraph. The findings and order of the Board are competent 
evidence of the facts stated in them. Trial in a civil action brought in 
a district court of the United States under this paragraph is in the 
judicial district--
            ``(A) in which the plaintiff resides;
            ``(B) in which the principal operating office of the rail 
        carrier is located; or
            ``(C) through which the railroad line of that carrier runs.

In a civil action under this paragraph, the plaintiff is liable for only 
those costs that accrue on an appeal taken by the plaintiff.
    ``(2) All parties in whose favor the award was made may be joined as 
plaintiffs in a civil action brought in a district court of the United 
States under this subsection and all the rail carriers that are parties 
to the order awarding damages may be joined as defendants. Trial in the 
action is in the judicial district in which any one of the plaintiffs 
could bring the action against

[[Page 109 STAT. 847]]

any one of the defendants. Process may be served on a defendant at its 
principal operating office when that defendant is not in the district in 
which the action is brought. A judgment ordering recovery may be made in 
favor of any of those plaintiffs against the defendant found to be 
liable to that plaintiff.
    ``(3) <<NOTE: Courts.>> The district court shall award a reasonable 
attorney's fee as a part of the damages for which a rail carrier is 
found liable under this subsection. The district court shall tax and 
collect that fee as a part of the costs of the action.

``Sec. 11705. Limitation on actions by and against rail carriers

    ``(a) A rail carrier providing transportation or service subject to 
the jurisdiction of the Board under this part must begin a civil action 
to recover charges for transportation or service provided by the carrier 
within 3 years after the claim accrues.
    ``(b) A person must begin a civil action to recover overcharges 
under section 11704(b) of this title within 3 years after the claim 
accrues, whether or not a complaint is filed under section 11704(c)(1).
    ``(c) A person must file a complaint with the Board to recover 
damages under section 11704(b) of this title within 2 years after the 
claim accrues.
    ``(d) The limitation period under subsection (b) of this section is 
extended for 6 months from the time written notice is given to the 
claimant by the rail carrier of disallowance of any part of the claim 
specified in the notice if a written claim is given to the rail carrier 
within that limitation period. The limitation periods under subsections 
(b) and (c) of this section are extended for 90 days from the time the 
rail carrier begins a civil action under subsection (a) of this section 
to recover charges related to the same transportation or service, or 
collects (without beginning a civil action under that subsection) the 
charge for that transportation or service if that action is begun or 
collection is made within the appropriate period.
    ``(e) A person must begin a civil action to enforce an order of the 
Board against a rail carrier for the payment of money within one year 
after the date the order required the money to be paid.
    ``(f) This section applies to transportation for the United States 
Government. The time limitations under this section are extended, as 
related to transportation for or on behalf of the United States 
Government, for 3 years from the date of--
            ``(1) payment of the rate for the transportation or service 
        involved;
            ``(2) subsequent refund for overpayment of that rate; or
            ``(3) deduction made under section 3726 of title 31, 
        whichever is later.

    ``(g) A claim related to a shipment of property accrues under this 
section on delivery or tender of delivery by the rail carrier.
``Sec. 11706. Liability of rail carriers under receipts and bills 
                      of lading

    ``(a) A rail carrier providing transportation or service subject to 
the jurisdiction of the Board under this part shall issue a receipt or 
bill of lading for property it receives for transportation under this 
part. That rail carrier and any other carrier that delivers the property 
and is providing transportation or service subject

[[Page 109 STAT. 848]]

to the jurisdiction of the Board under this part are liable to the 
person entitled to recover under the receipt or bill of lading. The 
liability imposed under this subsection is for the actual loss or injury 
to the property caused by--
            ``(1) the receiving rail carrier;
            ``(2) the delivering rail carrier; or
            ``(3) another rail carrier over whose line or route the 
        property is transported in the United States or from a place in 
        the United States to a place in an adjacent foreign country when 
        transported under a through bill of lading.

Failure to issue a receipt or bill of lading does not affect the 
liability of a rail carrier. A delivering rail carrier is deemed to be 
the rail carrier performing the line-haul transportation nearest the 
destination but does not include a rail carrier providing only a 
switching service at the destination.
    ``(b) The rail carrier issuing the receipt or bill of lading under 
subsection (a) of this section or delivering the property for which the 
receipt or bill of lading was issued is entitled to recover from the 
rail carrier over whose line or route the loss or injury occurred the 
amount required to be paid to the owners of the property, as evidenced 
by a receipt, judgment, or transcript, and the amount of its expenses 
reasonably incurred in defending a civil action brought by that person.
    ``(c)(1) A rail carrier may not limit or be exempt from liability 
imposed under subsection (a) of this section except as provided in this 
subsection. A limitation of liability or of the amount of recovery or 
representation or agreement in a receipt, bill of lading, contract, or 
rule in violation of this section is void.
    ``(2) A rail carrier of passengers may limit its liability under its 
passenger rate for loss or injury of baggage carried on trains carrying 
passengers.
    ``(3) A rail carrier providing transportation or service subject to 
the jurisdiction of the Board under this part may establish rates for 
transportation of property under which--
            ``(A) the liability of the rail carrier for such property is 
        limited to a value established by written declaration of the 
        shipper or by a written agreement between the shipper and the 
        carrier; or
            ``(B) specified amounts are deducted, pursuant to a written 
        agreement between the shipper and the carrier, from any claim 
        against the carrier with respect to the transportation of such 
        property.

    ``(d)(1) A civil action under this section may be brought in a 
district court of the United States or in a State court.

    ``(2)(A) A civil action under this section may only be brought--
            ``(i) against the originating rail carrier, in the judicial 
        district in which the point of origin is located;
            ``(ii) against the delivering rail carrier, in the judicial 
        district in which the principal place of business of the person 
        bringing the action is located if the delivering carrier 
        operates a railroad or a route through such judicial district, 
        or in the judicial district in which the point of destination is 
        located; and
            ``(iii) against the carrier alleged to have caused the loss 
        or damage, in the judicial district in which such loss or damage 
        is alleged to have occurred.

[[Page 109 STAT. 849]]

    ``(B) In this section, `judicial district' means (i) in the case of 
a United States district court, a judicial district of the United 
States, and (ii) in the case of a State court, the applicable geographic 
area over which such court exercises jurisdiction.
    ``(e) A rail carrier may not provide by rule, contract, or 
otherwise, a period of less than 9 months for filing a claim against it 
under this section and a period of less than 2 years for bringing a 
civil action against it under this section. The period for bringing a 
civil action is computed from the date the carrier gives a person 
written notice that the carrier has disallowed any part of the claim 
specified in the notice. For the purposes of this subsection--
            ``(1) an offer of compromise shall not constitute a 
        disallowance of any part of the claim unless the carrier, in 
        writing, informs the claimant that such part of the claim is 
        disallowed and provides reasons for such disallowance; and
            ``(2) communications received from a carrier's insurer shall 
        not constitute a disallowance of any part of the claim unless 
        the insurer, in writing, informs the claimant that such part of 
        the claim is disallowed, provides reasons for such disallowance, 
        and informs the claimant that the insurer is acting on behalf of 
        the carrier.
Sec. ``11707. Liability when property is delivered in violation of 
                      routing instructions

    ``(a)(1) When a rail carrier providing transportation subject to the 
jurisdiction of the Board under this part diverts or delivers property 
to another rail carrier in violation of routing instructions in the bill 
of lading, both of those rail carriers are jointly and severally liable 
to the rail carrier that was deprived of its right to participate in 
hauling that property for the total amount of the rate it would have 
received if it participated in hauling the property.
    ``(2) A rail carrier is not liable under paragraph (1) of this 
subsection when it diverts or delivers property in compliance with an 
order or regulation of the Board.

    ``(3) A rail carrier to whom property is transported is not liable 
under this subsection if it shows that it had no notice of the routing 
instructions before transporting the property. The burden of proving 
lack of notice is on that rail carrier.
    ``(b) <<NOTE: Courts.>> The court shall award a reasonable 
attorney's fee to the plaintiff in a judgment against the defendant rail 
carrier under subsection (a) of this section. The court shall tax and 
collect that fee as a part of the costs of the action.

               ``CHAPTER 119--CIVIL AND CRIMINAL PENALTIES

``Sec.
``11901. General civil penalties.
``11902. Interference with railroad car supply.
``11903. Record keeping and reporting violations.
``11904. Unlawful disclosure of information.
``11905. Disobedience to subpoenas.
``11906. General criminal penalty when specific penalty not provided.
``11907. Punishment of corporation for violations committed by certain 
           individuals.
``11908. Relation to other Federal criminal penalties.

``Sec. 11901. General civil penalties

    ``(a) Except as otherwise provided in this section, a rail carrier 
providing transportation subject to the jurisdiction of the Board

[[Page 109 STAT. 850]]

under this part, an officer or agent of that rail carrier, or a 
receiver, trustee, lessee, or agent of one of them, knowingly violating 
this part or an order of the Board under this part is liable to the 
United States Government for a civil penalty of not more than $5,000 for 
each violation. Liability under this subsection is incurred for each 
distinct violation. A separate violation occurs for each day the 
violation continues.
    ``(b) A rail carrier providing transportation subject to the 
jurisdiction of the Board under this part, or a receiver or trustee of 
that rail carrier, violating a regulation or order of the Board under 
section 11124(a)(2) or (b) of this title is liable to the United States 
Government for a civil penalty of $500 for each violation and for $25 
for each day the violation continues.
    ``(c) A person knowingly authorizing, consenting to, or permitting a 
violation of sections 10901 through 10906 of this title or of a 
requirement or a regulation under any of those sections, is liable to 
the United States Government for a civil penalty of not more than 
$5,000.
    ``(d) A rail carrier, receiver, or operating trustee violating an 
order or direction of the Board under section 11123 or 11124(a)(1) of 
this title is liable to the United States Government for a civil penalty 
of at least $100 but not more than $500 for each violation and for $50 
for each day the violation continues.
    ``(e)(1) <<NOTE: Records.>> A person required under subchapter III 
of chapter 111 of this title to make, prepare, preserve, or submit to 
the Board a record concerning transportation subject to the jurisdiction 
of the Board under this part that does not make, prepare, preserve, or 
submit that record as required under that subchapter, is liable to the 
United States Government for a civil penalty of $500 for each violation.

    ``(2) A rail carrier providing transportation subject to the 
jurisdiction of the Board under this part, and a lessor, receiver, or 
trustee of that rail carrier, violating section 11144(b)(1) of this 
title, is liable to the United States Government for a civil penalty of 
$100 for each violation.
    ``(3) A rail carrier providing transportation subject to the 
jurisdiction of the Board under this part, a lessor, receiver, or 
trustee of that rail carrier, a person furnishing cars, and an officer, 
agent, or employee of one of them, required to make a report to the 
Board or answer a question that does not make the report or does not 
specifically, completely, and truthfully answer the question, is liable 
to the United States Government for a civil penalty of $100 for each 
violation.
    ``(4) A separate violation occurs for each day a violation under 
this subsection continues.

    ``(f) Trial in a civil action under subsections (a) through (e) of 
this section is in the judicial district in which the rail carrier has 
its principal operating office or in a district through which the 
railroad of the rail carrier runs.

``Sec. 11902. Interference with railroad car supply

    ``(a) A person that offers or gives anything of value to another 
person acting for or employed by a rail carrier providing transportation 
subject to the jurisdiction of the Board under this part intending to 
influence an action of that other person related to supply, 
distribution, or movement of cars, vehicles, or vessels used in the 
transportation of property, or because of the action of that

[[Page 109 STAT. 851]]

other person, shall be fined not more than $1,000, imprisoned for not 
more than 2 years, or both.
    ``(b) A person acting for or employed by a rail carrier providing 
transportation subject to the jurisdiction of the Board under this part 
that solicits, accepts, or receives anything of value--
            ``(1) intending to be influenced by it in an action of that 
        person related to supply, distribution, or movement of cars, 
        vehicles, or vessels used in the transportation of property; or
            ``(2) because of the action of that person,

shall be fined not more than $1,000, imprisoned for not more than 2 
years, or both.

``Sec. 11903. Record keeping and reporting violations

    ``A person required to make a report to the Board, or make, prepare, 
or preserve a record, under subchapter III of chapter 111 of this title 
about transportation subject to the jurisdiction of the Board under this 
part that knowingly and willfully--
            ``(1) makes a false entry in the report or record;
            ``(2) destroys, mutilates, changes, or by another means 
        falsifies the record;
            ``(3) does not enter business related facts and transactions 
        in the record;
            ``(4) makes, prepares, or preserves the record in violation 
        of a regulation or order of the Board; or
            ``(5) files a false report or record with the Board,

shall be fined not more than $5,000, imprisoned for not more than 2 
years, or both.

``Sec. 11904. Unlawful disclosure of information

    ``(a) A--
            ``(1) rail carrier providing transportation subject to the 
        jurisdiction of the Board under this part, or an officer, agent, 
        or employee of that rail carrier, or another person authorized 
        to receive information from that rail carrier, that knowingly 
        discloses to another person, except the shipper or consignee; or
            ``(2) a person who solicits or knowingly receives,

information described in subsection (b) without the consent of the 
shipper or consignee shall be fined not more than $1,000.
    ``(b) The information referred to in subsection (a) is information 
about the nature, kind, quantity, destination, consignee, or routing of 
property tendered or delivered to that rail carrier for transportation 
provided under this part, or information about the contents of a 
contract authorized under section 10709 of this title, that may be used 
to the detriment of the shipper or consignee or may disclose improperly, 
to a competitor, the business transactions of the shipper or consignee.
    ``(c) This part does not prevent a rail carrier providing 
transportation subject to the jurisdiction of the Board under this part 
from giving information--
            ``(1) in response to legal process issued under authority of 
        a court of the United States or a State;
            ``(2) to an officer, employee, or agent of the United States 
        Government, a State, or a territory or possession of the United 
        States; or

[[Page 109 STAT. 852]]

            ``(3) to another rail carrier or its agent to adjust mutual 
        traffic accounts in the ordinary course of business.

    ``(d) An employee of the Board delegated to make an inspection or 
examination under section 11144 of this title who knowingly discloses 
information acquired during that inspection or examination, except as 
directed by the Board, a court, or a judge of that court, shall be fined 
not more than $500, imprisoned for not more than 6 months, or both.
    ``(e) A person that knowingly discloses confidential data made 
available to such person under section 11163 of this title by a rail 
carrier providing transportation subject to the jurisdiction of the 
Board under this part shall be fined not more than $50,000.

``Sec. 11905. Disobedience to subpoenas

    ``A person not obeying a subpoena or requirement of the Board to 
appear and testify or produce records shall be fined at least $100 but 
not more than $5,000, imprisoned for not more than one year, or both.
``Sec. 11906. General criminal penalty when specific penalty not 
                      provided

    ``When another criminal penalty is not provided under this chapter, 
a rail carrier providing transportation subject to the jurisdiction of 
the Board under this part, and when that rail carrier is a corporation, 
a director or officer of the corporation, or a receiver, trustee, 
lessee, or person acting for or employed by the corporation that, alone 
or with another person, willfully violates this part or an order 
prescribed under this part, shall be fined not more than $5,000. The 
person may be imprisoned for not more than 2 years in addition to being 
fined under this section. A separate violation occurs each day a 
violation of this title continues.
``Sec. 11907. Punishment of corporation for violations committed 
                      by certain individuals

    ``An act or omission that would be a violation of this part if 
committed by a director, officer, receiver, trustee, lessee, agent, or 
employee of a rail carrier providing transportation or service subject 
to the jurisdiction of the Board under this part that is a corporation 
is also a violation of this part by that corporation. The penalties of 
this chapter apply to that violation. When acting in the scope of their 
employment, the actions and omissions of individuals acting for or 
employed by that rail carrier are considered to be the actions and 
omissions of that rail carrier as well as that individual.

``Sec. 11908. Relation to other Federal criminal penalties

    ``Notwithstanding section 3571 of title 18, United States Code, the 
criminal penalties provided for in this chapter are the exclusive 
criminal penalties for violations of this part.''.

    (b) Conforming Amendment.--The item relating to subtitle IV in the 
table of subtitles of title 49, United States Code, is amended by 
striking ``Commerce'' and inserting in lieu thereof ``Transportation''.

SEC. 103. MOTOR CARRIER, WATER CARRIER, AND FREIGHT FORWARDER 
            PROVISIONS.

    Subtitle IV of title 49, United States Code, is further amended by 
adding at the end the following:

[[Page 109 STAT. 853]]

     ``PART B--MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT 
                               FORWARDERS

                    ``CHAPTER 131--GENERAL PROVISIONS

``Sec.
``13101. Transportation policy.
``13102. Definitions.
``13103. Remedies as cumulative.

``Sec. 13101. Transportation policy

    ``(a) In General.--To ensure the development, coordination, and 
preservation of a transportation system that meets the transportation 
needs of the United States, including the United States Postal Service 
and national defense, it is the policy of the United States Government 
to oversee the modes of transportation and--
            ``(1) in overseeing those modes--
                    ``(A) to recognize and preserve the inherent 
                advantage of each mode of transportation;
                    ``(B) to promote safe, adequate, economical, and 
                efficient transportation;
                    ``(C) to encourage sound economic conditions in 
                transportation, including sound economic conditions 
                among carriers;
                    ``(D) to encourage the establishment and maintenance 
                of reasonable rates for transportation, without 
                unreasonable discrimination or unfair or destructive 
                competitive practices;
                    ``(E) to cooperate with each State and the officials 
                of each State on transportation matters; and
                    ``(F) to encourage fair wages and working conditions 
                in the transportation industry;
            ``(2) in overseeing transportation by motor carrier, to 
        promote competitive and efficient transportation services in 
        order to--
                    ``(A) encourage fair competition, and reasonable 
                rates for transportation by motor carriers of property;
                    ``(B) promote efficiency in the motor carrier 
                transportation system and to require fair and 
                expeditious decisions when required;
                    ``(C) meet the needs of shippers, receivers, 
                passengers, and consumers;
                    ``(D) allow a variety of quality and price options 
                to meet changing market demands and the diverse 
                requirements of the shipping and traveling public;
                    ``(E) allow the most productive use of equipment and 
                energy resources;
                    ``(F) enable efficient and well-managed carriers to 
                earn adequate profits, attract capital, and maintain 
                fair wages and working conditions;
                    ``(G) provide and maintain service to small 
                communities and small shippers and intrastate bus 
                services;
                    ``(H) provide and maintain commuter bus operations;
                    ``(I) improve and maintain a sound, safe, and 
                competitive privately owned motor carrier system;
                    ``(J) promote greater participation by minorities in 
                the motor carrier system;

[[Page 109 STAT. 854]]

                    ``(K) promote intermodal transportation;
            ``(3) in overseeing transportation by motor carrier of 
        passengers--
                    ``(A) to cooperate with the States on transportation 
                matters for the purpose of encouraging the States to 
                exercise intrastate regulatory jurisdiction in 
                accordance with the objectives of this part;
                    ``(B) to provide Federal procedures which ensure 
                that intrastate regulation is exercised in accordance 
                with this part; and
                    ``(C) to ensure that Federal reform initiatives 
                enacted by section 31138 and the Bus Regulatory Reform 
                Act of 1982 are not nullified by State regulatory 
                actions; and
            ``(4) in overseeing transportation by water carrier, to 
        encourage and promote service and price competition in the 
        noncontiguous domestic trade.

    ``(b) Administration To Carry Out Policy.--This part shall be 
administered and enforced to carry out the policy of this section and to 
promote the public interest.

``Sec. 13102. Definitions

    ``In this part, the following definitions shall apply:
            ``(1) Board.--The term `Board' means the Surface 
        Transportation Board.
            ``(2) Broker.--The term `broker' means a person, other than 
        a motor carrier or an employee or agent of a motor carrier, that 
        as a principal or agent sells, offers for sale, negotiates for, 
        or holds itself out by solicitation, advertisement, or otherwise 
        as
selling, providing, or arranging for, transportation by motor carrier 
for compensation.
            ``(3) Carrier.--The term `carrier' means a motor carrier, a 
        water carrier, and a freight forwarder.
            ``(4) Contract carriage.--The term `contract carriage' 
        means--
                    ``(A) for transportation provided before the 
                effective date of this section, service provided 
                pursuant to a permit issued under section 10923, as in 
                effect on the day before the effective date of this 
                section; and
                    ``(B) for transportation provided on or after such 
                date, service provided under an agreement entered into 
                under section 14101(b).
            ``(5) Control.--The term `control', when referring to a 
        relationship between persons, includes actual control, legal 
        control, and the power to exercise control, through or by--
                    ``(A) common directors, officers, stockholders, a 
                voting trust, or a holding or investment company, or
                    ``(B) any other means.
            ``(6) Foreign motor carrier.--The term `foreign motor 
        carrier' means a person (including a motor carrier of property 
        but excluding a motor private carrier)--
                    ``(A)(i) that is domiciled in a contiguous foreign 
                country; or
                    ``(ii) that is owned or controlled by persons of a 
                contiguous foreign country; and
                    ``(B) in the case of a person that is not a motor 
                carrier of property, that provides interstate 
                transportation of property by motor vehicle under an 
                agreement or contract

[[Page 109 STAT. 855]]

                entered into with a motor carrier of property (other 
                than a motor private carrier or a motor carrier of 
                property described in subparagraph (A)).
            ``(7) Foreign motor private carrier.--The term `foreign 
        motor private carrier' means a person (including a motor private 
        carrier but excluding a motor carrier of property)--
                    ``(A)(i) that is domiciled in a contiguous foreign 
                country; or
                    ``(ii) that is owned or controlled by persons of a 
                contiguous foreign country; and
                    ``(B) in the case of a person that is not a motor 
                private carrier, that provides interstate transportation 
                of property by motor vehicle under an agreement or 
                contract entered into with a person (other than a motor 
                carrier of property or a motor private carrier described 
                in subparagraph (A)).
            ``(8) Freight forwarder.--The term `freight forwarder' means 
        a person holding itself out to the general public (other than as 
        a pipeline, rail, motor, or water carrier) to provide 
        transportation of property for compensation and in the ordinary 
        course of its business--
                    ``(A) assembles and consolidates, or provides for 
                assembling and consolidating, shipments and performs or 
                provides for break-bulk and distribution operations of 
                the shipments;
                    ``(B) assumes responsibility for the transportation 
                from the place of receipt to the place of destination; 
                and
                    ``(C) uses for any part of the transportation a 
                carrier subject to jurisdiction under this subtitle.
        The term does not include a person using transportation of an 
        air carrier subject to part A of subtitle VII.
            ``(9) Highway.--The term `highway' means a road, highway, 
        street, and way in a State.
            ``(10) Household goods.--The term `household goods', as used 
        in connection with transportation, means personal effects and 
        property used or to be used in a dwelling, when a part of the 
        equipment or supply of such dwelling, and similar property if 
        the transportation of such effects or property is--
                    ``(A) arranged and paid for by the householder, 
                including transportation of property from a factory or 
                store when the property is purchased by the householder 
                with intent to use in his or her dwelling, or
                    ``(B) arranged and paid for by another party.
            ``(11) Household goods freight forwarder.--The term 
        `household goods freight forwarder' means a freight forwarder of 
        one or more of the following items: household goods, 
        unaccompanied baggage, or used automobiles.
            ``(12) Motor carrier.--The term `motor carrier' means a 
        person providing motor vehicle transportation for compensation.
            ``(13) Motor private carrier.--The term `motor private 
        carrier' means a person, other than a motor carrier, 
        transporting property by motor vehicle when--
                    ``(A) the transportation is as provided in section 
                13501 of this title;
                    ``(B) the person is the owner, lessee, or bailee of 
                the property being transported; and

[[Page 109 STAT. 856]]

                    ``(C) the property is being transported for sale, 
                lease, rent, or bailment or to further a commercial 
                enterprise.
            ``(14) Motor vehicle.--The term `motor vehicle' means a 
        vehicle, machine, tractor, trailer, or semitrailer propelled or 
        drawn by mechanical power and used on a highway in 
        transportation, or a combination determined by the Secretary, 
        but does not include a vehicle, locomotive, or car operated only 
        on a rail, or a trolley bus operated by electric power from a 
        fixed overhead wire, and providing local passenger 
        transportation similar to street-railway service.
            ``(15) Noncontiguous domestic trade.--The term 
        `noncontiguous domestic trade' means transportation subject to 
        jurisdiction under chapter 135 involving traffic originating in 
        or destined to Alaska, Hawaii, or a territory or possession of 
        the United States.
            ``(16) Person.--The term `person', in addition to its 
        meaning under section 1 of title 1, includes a trustee, 
        receiver, assignee, or personal representative of a person.
            ``(17) Secretary.--The term `Secretary' means the Secretary 
        of Transportation.
            ``(18) State.--The term `State' means the 50 States of the 
        United States and the District of Columbia.
            ``(19) Transportation.--The term `transportation' includes--
                    ``(A) a motor vehicle, vessel, warehouse, wharf, 
                pier, dock, yard, property, facility, instrumentality, 
                or equipment of any kind related to the movement of 
                passengers or property, or both, regardless of ownership 
                or an agreement concerning use; and
                    ``(B) services related to that movement, including 
                arranging for, receipt, delivery, elevation, transfer in 
                transit, refrigeration, icing, ventilation, storage, 
                handling, packing, unpacking, and interchange of 
                passengers and property.
            ``(20) United states.--The term `United States' means the 
        States of the United States and the District of Columbia.
            ``(21) Vessel.--The term `vessel' means a watercraft or 
        other artificial contrivance that is used, is capable of being 
        used, or is intended to be used, as a means of transportation by 
        water.
            ``(22) Water carrier.--The term `water carrier' means a 
        person providing water transportation for compensation.

``Sec. 13103. Remedies as cumulative

    ``Except as otherwise provided in this part, the remedies provided 
under this part are in addition to remedies existing under another law 
or common law.

                ``CHAPTER 133--ADMINISTRATIVE PROVISIONS

``Sec.
``13301. Powers.
``13302. Intervention.
``13303. Service of notice in proceedings.
``13304. Service of process in court proceedings.

``Sec. 13301. Powers

    ``(a) General Powers of Secretary.--Except as otherwise specified, 
the Secretary shall carry out this part. Enumeration

[[Page 109 STAT. 857]]

of a power of the Secretary in this part does not exclude another power 
the Secretary may have in carrying out this part. The Secretary may 
prescribe regulations in carrying out this part.

    ``(b) Obtaining Information.--The Secretary may obtain from carriers 
providing, and brokers for, transportation and service subject to this 
part, and from persons controlling, controlled by, or under common 
control with those carriers or brokers to the extent that the business 
of that person is related to the management of the business of that 
carrier or broker, information the Secretary decides is necessary to 
carry out this part.
    ``(c) Subpoena Power.--
            ``(1) By secretary.--The Secretary may subpoena witnesses 
        and records related to a proceeding under this part from any 
        place in the United States, to the designated place of the 
        proceeding. If a witness disobeys a subpoena, the Secretary, or 
        a party to a proceeding under this part, may petition a court of 
        the United States to enforce that subpoena.
          ``(2) Enforcement.--The district courts of the United States 
        have jurisdiction to enforce a subpoena issued under this 
        section. Trial is in the district in which the proceeding is 
        conducted. The court may punish a refusal to obey a subpoena as 
        a contempt of court.

    ``(d) Testimony of Witnesses.--
            ``(1) Procedure for taking testimony.--In a proceeding under 
        this part, the Secretary may take the testimony of a witness by 
        deposition and may order the witness to produce records. A party 
        to a proceeding pending under this part may take the testimony 
        of a witness by deposition and may require the witness to 
        produce records at any time after a proceeding is at issue on 
        petition and answer.
            ``(2) Subpoena.--If a witness fails to be deposed or to 
        produce records under paragraph (1) of this subsection, the 
        Secretary may subpoena the witness to take a deposition, produce 
        the records, or both.
            ``(3) Depositions.--A deposition may be taken before a judge 
        of a court of the United States, a United States magistrate 
        judge, a clerk of a district court, or a chancellor, justice, or 
        judge of a supreme or superior court, mayor or chief magistrate 
        of a city, judge of a county court, or court of common pleas of 
        any State, or a notary public who is not counsel or attorney of 
        a party or interested in the proceeding.
            ``(4) Notice of deposition.--Before taking a deposition, 
        reasonable notice must be given in writing by the party or the 
        attorney of that party proposing to take a deposition to the 
        opposing party or the attorney of record of that party, whoever 
        is nearest. The notice shall state the name of the witness and 
        the time and place of taking the deposition.
            ``(5) Transcript.--The testimony of a person deposed under 
        this subsection shall be taken under oath. The person taking the 
        deposition shall prepare, or cause to be prepared, a transcript 
        of the testimony taken. The transcript shall be subscribed by 
        the deponent.
            ``(6) Foreign country.--The testimony of a witness who is in 
        a foreign country may be taken by deposition before an officer 
        or person designated by the Secretary or agreed on by the 
        parties by written stipulation filed with the Secretary. A 
        deposition shall be filed with the Secretary promptly.

[[Page 109 STAT. 858]]

    ``(e) Witness Fees.--Each witness summoned before the Secretary or 
whose deposition is taken under this section and the individual taking 
the deposition are entitled to the same fees and mileage paid for those 
services in the courts of the United States.
    ``(f) Powers of Board.--For those provisions of this part that are 
specified to be carried out by the Board, the Board shall have the same 
powers as the Secretary has under this section.

``Sec. 13302. Intervention

    ``Under regulations of the Secretary, reasonable notice of, and an 
opportunity to intervene and participate in, a proceeding under this 
part related to transportation subject to jurisdiction under subchapter 
I of chapter 135 shall be given to interested persons.

``Sec. 13303. Service of notice in proceedings

    ``(a) Agents for Service of Process.--A carrier, a broker, or a 
freight forwarder providing transportation or service subject to 
jurisdiction under chapter 135 shall designate, in writing, an agent by 
name and post office address on whom service of notices in a proceeding 
before, and of actions of, the Secretary may be made.
    ``(b) Filing With State.--A motor carrier providing transportation 
under this part shall also file the designation with the appropriate 
authority of each State in which it operates. The designation may be 
changed at any time in the same manner as originally made.
    ``(c) Notice.--A notice to a motor carrier, freight forwarder, or 
broker shall be served personally or by mail on the motor carrier, 
freight forwarder, or broker or on its designated agent. Service by mail 
on the designated agent shall be made at the address filed for the 
agent. When notice is given by mail, the date of mailing is considered 
to be the time when the notice is served. If a motor carrier, freight 
forwarder, or broker does not have a designated agent, service may be 
made by posting a copy of the notice at the headquarters of the 
Department of Transportation.

``Sec. 13304. Service of process in court proceedings

    ``(a) Designation of Agent.--A motor carrier or broker providing 
transportation subject to jurisdiction under chapter 135, including a 
motor carrier or broker operating within the United States while 
providing transportation between places in a foreign country or between 
a place in one foreign country and a place in another foreign country, 
shall designate an agent in each State in which it operates by name and 
post office address on whom process issued by a court with subject 
matter jurisdiction may be served in an action brought against that 
carrier or broker. The designation shall be in writing and filed with 
the Department of Transportation and each State in which the carrier 
operates may require that an additional designation be filed with it. If 
a designation under this subsection is not made, service may be made on 
any agent of the carrier or broker within that State.
    ``(b) Change.--A designation under this section may be changed at 
any time in the same manner as originally made.

[[Page 109 STAT. 859]]

                       ``CHAPTER 135--JURISDICTION

              ``SUBCHAPTER I--MOTOR CARRIER TRANSPORTATION

``Sec.
``13501. General jurisdiction.
``13502. Exempt transportation between Alaska and other States.
``13503. Exempt motor vehicle transportation in terminal areas.
``13504. Exempt motor carrier transportation entirely in one State.
``13505. Transportation furthering a primary business.
``13506. Miscellaneous motor carrier transportation exemptions.
``13507. Mixed loads of regulated and unregulated property.
``13508. Limited authority over cooperative associations.

              ``SUBCHAPTER II--WATER CARRIER TRANSPORTATION

``13521. General jurisdiction.

               ``SUBCHAPTER III--FREIGHT FORWARDER SERVICE

``13531. General jurisdiction.

                  ``SUBCHAPTER IV--AUTHORITY TO EXEMPT

``13541. Authority to exempt transportation or services.

              ``SUBCHAPTER I--MOTOR CARRIER TRANSPORTATION

``Sec. 13501. General jurisdiction

    ``The Secretary and the Board have jurisdiction, as specified in 
this part, over transportation by motor carrier and the procurement of 
that transportation, to the extent that passengers, property, or both, 
are transported by motor carrier--
            ``(1) between a place in--
                    ``(A) a State and a place in another State;
                    ``(B) a State and another place in the same State 
                through another State;
                    ``(C) the United States and a place in a territory 
                or possession of the United States to the extent the 
                transportation is in the United States;
                    ``(D) the United States and another place in the 
                United States through a foreign country to the extent 
                the transportation is in the United States; or
                    ``(E) the United States and a place in a foreign 
                country to the extent the transportation is in the 
                United States; and
            ``(2) in a reservation under the exclusive jurisdiction of 
        the United States or on a public highway.

``Sec. 13502. Exempt transportation between Alaska and other States

    ``To the extent that transportation by a motor carrier between a 
place in Alaska and a place in another State under section 13501 is 
provided in a foreign country--
            ``(1) neither the Secretary nor the Board has jurisdiction 
        to impose a requirement over conduct of the motor carrier in the 
        foreign country conflicting with a requirement of that country; 
        but
            ``(2) the motor carrier, as a condition of providing 
        transportation in the United States, shall comply, with respect 
        to all transportation provided between Alaska and the other 
        State, with the requirements of this part related to rates and 
        practices applicable to the transportation.

[[Page 109 STAT. 860]]

``Sec. 13503. Exempt motor vehicle transportation in terminal areas

    ``(a) Transportation by Carriers.--
            ``(1) In general.--Neither the Secretary nor the Board has 
        jurisdiction under this subchapter over transportation by motor 
        vehicle provided in a terminal area when the transportation--
                    ``(A) is a transfer, collection, or delivery;
                    ``(B) is provided by--
                          ``(i) a rail carrier subject to jurisdiction 
                      under chapter 105;
                          ``(ii) a water carrier subject to jurisdiction 
                      under subchapter II of this chapter; or
                          ``(iii) a freight forwarder subject to 
                      jurisdiction under subchapter III of this chapter; 
                      and
                    ``(C) is incidental to transportation or service 
                provided by the carrier or freight forwarder that is 
                subject to jurisdiction under chapter 105 of this title 
                or under subchapter II or III of this chapter.
            ``(2) Applicability of other provisions.--Transportation 
        exempt from jurisdiction under paragraph (1) of this subsection 
        is subject to jurisdiction under chapter 105 when provided by 
        such a rail carrier, under subchapter II of this chapter when 
        provided by such a water carrier, and under subchapter III of 
        this chapter when provided by such a freight forwarder.

    ``(b) Transportation by Agent.--
            ``(1) In general.--Except to the extent provided by 
        paragraph (2) of this subsection, neither the Secretary nor the 
        Board has jurisdiction under this subchapter over transportation 
        by motor vehicle provided in a terminal area when the 
        transportation--
                    ``(A) is a transfer, collection, or delivery; and
                    ``(B) is provided by a person as an agent or under 
                other arrangement for--
                          ``(i) a rail carrier subject to jurisdiction 
                      under chapter 105 of this title;
                          ``(ii) a motor carrier subject to jurisdiction 
                      under this subchapter;
                          ``(iii) a water carrier subject to 
                      jurisdiction under subchapter II of this chapter; 
                      or
                          ``(iv) a freight forwarder subject to 
                      jurisdiction under subchapter III of this chapter.
            ``(2) Treatment of transportation by principal.--
        Transportation exempt from jurisdiction under paragraph (1) of 
        this subsection is considered transportation provided by the 
        carrier or service provided by the freight forwarder for whom 
        the transportation was provided and is subject to jurisdiction 
        under chapter 105 of this title when provided for such a rail 
        carrier, under this subchapter when provided for such a motor 
        carrier, under subchapter II of this chapter when provided for 
        such a water carrier, and under subchapter III of this chapter 
        when provided for such a freight forwarder.

``Sec. 13504. Exempt motor carrier transportation entirely in one State

    ``Neither the Secretary nor the Board has jurisdiction under this 
subchapter over transportation, except transportation of house

[[Page 109 STAT. 861]]

hold goods, by a motor carrier operating solely within the State of 
Hawaii. The State of Hawaii may regulate transportation exempt from 
jurisdiction under this section and, to the extent provided by a motor 
carrier operating solely within the State of Hawaii, transportation 
exempt under section 13503 of this title.

``Sec. 13505. Transportation furthering a primary business

    ``(a) In General.--Neither the Secretary nor the Board has 
jurisdiction under this part over the transportation of property by 
motor vehicle when--
            ``(1) the property is transported by a person engaged in a 
        business other than transportation; and
            ``(2) the transportation is within the scope of, and 
        furthers a primary business (other than transportation) of the 
        person.

    ``(b) Corporate Families.--
            ``(1) In general.--Neither the Secretary nor the Board has 
        jurisdiction under this part over transportation of property by 
        motor vehicle for compensation provided by a person who is a 
        member of a corporate family for other members of such corporate 
        family.
            ``(2) Definition.--In this section, `corporate family' means 
        a group of corporations consisting of a parent corporation and 
        all subsidiaries in which the parent corporation owns directly 
        or indirectly a 100 percent interest.

``Sec. 13506. Miscellaneous motor carrier transportation exemptions

    ``(a) In General.--Neither the Secretary nor the Board has 
jurisdiction under this part over--
            ``(1) a motor vehicle transporting only school children and 
        teachers to or from school;
            ``(2) a motor vehicle providing taxicab service and having a 
        capacity of not more than 6 passengers and not operated on a 
        regular route or between specified places;
            ``(3) a motor vehicle owned or operated by or for a hotel 
        and only transporting hotel patrons between the hotel and the 
        local station of a carrier;
            ``(4) a motor vehicle controlled and operated by a farmer 
        and transporting--
                    ``(A) the farmer's agricultural or horticultural 
                commodities and products; or
                    ``(B) supplies to the farm of the farmer;
            ``(5) a motor vehicle controlled and operated by a 
        cooperative association (as defined by section 15(a) of the 
        Agricultural Marketing Act (12 U.S.C. 1141j(a)) or by a 
        federation of cooperative associations if the federation has no 
        greater power or purposes than a cooperative association, except 
        that if the cooperative association or federation provides 
        transportation for compensation between a place in a State and a 
        place in another State, or between a place in a State and 
        another place in the same State through another State--
                    ``(A) for a nonmember that is not a farmer, 
                cooperative association, federation, or the United 
                States Government, the transportation (except for 
                transportation otherwise exempt under this subchapter)--
                          ``(i) shall be limited to transportation 
                      incidental to the primary transportation operation 
                      of the coopera

[[Page 109 STAT. 862]]

                      tive association or federation and necessary for 
                      its effective performance; and
                          ``(ii) may not exceed in each fiscal year 25 
                      percent of the total transportation of the 
                      cooperative association or federation between 
                      those places, measured by tonnage; and
                    ``(B) the transportation for all nonmembers may not 
                exceed in each fiscal year, measured by tonnage, the 
                total transportation between those places for the 
                cooperative association or federation and its members 
                during that fiscal year;
            ``(6) transportation by motor vehicle of--
                    ``(A) ordinary livestock;
                    ``(B) agricultural or horticultural commodities 
                (other than manufactured products thereof);
                    ``(C) commodities listed as exempt in the Commodity 
                List incorporated in ruling numbered 107, March 19, 
                1958, Bureau of Motor Carriers, Interstate Commerce 
                Commission, other than frozen fruits, frozen berries, 
                frozen vegetables, cocoa beans, coffee beans, tea, 
                bananas, or hemp, or wool imported from a foreign 
                country, wool tops and noils, or wool waste (carded, 
                spun, woven, or knitted);
                    ``(D) cooked or uncooked fish, whether breaded or 
                not, or frozen or fresh shellfish, or byproducts thereof 
                not intended for human consumption, other than fish or 
                shellfish that have been treated for preserving, such as 
                canned, smoked, pickled, spiced, corned, or kippered 
                products; and
                    ``(E) livestock and poultry feed and agricultural 
                seeds and plants, if such products (excluding products 
                otherwise exempt under this paragraph) are transported 
                to a site of agricultural production or to a business 
                enterprise engaged in the sale to agricultural producers 
                of goods used in agricultural production;
            ``(7) a motor vehicle used only to distribute newspapers;
            ``(8)(A) transportation of passengers by motor vehicle 
        incidental to transportation by aircraft;
            ``(B) transportation of property (including baggage) by 
        motor vehicle as part of a continuous movement which, prior or 
        subsequent to such part of the continuous movement, has been or 
        will be transported by an air carrier or (to the extent so 
        agreed by the United States and approved by the Secretary) by a 
        foreign air carrier; or
            ``(C) transportation of property by motor vehicle in lieu of 
        transportation by aircraft because of adverse weather conditions 
        or mechanical failure of the aircraft or other causes due to 
        circumstances beyond the control of the carrier or shipper;
            ``(9) the operation of a motor vehicle in a national park or 
        national monument;
            ``(10) a motor vehicle carrying not more than 15 individuals 
        in a single, daily roundtrip to commute to and from work;
            ``(11) transportation of used pallets and used empty 
        shipping containers (including intermodal
cargo containers), and other used shipping devices (other than 
containers or devices used in the transportation of motor vehicles or 
parts of motor vehicles);
            ``(12) transportation of natural, crushed, vesicular rock to 
        be used for decorative purposes;

[[Page 109 STAT. 863]]

            ``(13) transportation of wood chips;
            ``(14) brokers for motor carriers of passengers, except as 
        provided in section 13904(d); or
            ``(15) transportation of broken, crushed, or powdered glass.

    ``(b) Exempt Unless Otherwise Necessary.--Except to the extent the 
Secretary or Board, as applicable, finds it necessary to exercise 
jurisdiction to carry out the transportation policy of section 13101, 
neither the Secretary nor the Board has jurisdiction under this part 
over--
            ``(1) transportation provided entirely in a municipality, in 
        contiguous municipalities, or in a zone that is adjacent to, and 
        commercially a part of, the municipality or municipalities, 
        except--
                    ``(A) when the transportation is under common 
                control, management, or arrangement for a continuous 
                carriage or shipment to or from a place outside the 
                municipality, municipalities, or zone; or
                    ``(B) that in transporting passengers over a route 
                between a place in a State and a place in another State, 
                or between a place in a State and another place in the 
                same State through another State, the transportation is 
                exempt from jurisdiction under this part only if the 
                motor carrier operating the motor vehicle also is 
                lawfully providing intrastate transportation of 
                passengers over the entire route under the laws of each 
                State through which the route runs;
            ``(2) transportation by motor vehicle provided casually, 
        occasionally, or reciprocally but not as a regular occupation or 
        business, except when a broker or other person sells or offers 
        for sale passenger transportation provided by a person 
        authorized to transport passengers by motor vehicle under an 
        application pending, or registration issued, under this part; or
            ``(3) the emergency towing of an accidentally wrecked or 
        disabled motor vehicle.

``Sec. 13507. Mixed loads of regulated and unregulated property

    ``A motor carrier of property providing transportation exempt from 
jurisdiction under paragraph (6), (8), (11), (12), or (13) of section 
13506(a) may transport property under such paragraph in the same vehicle 
and at the same time as property which the carrier is authorized to 
transport under a registration issued under section 13902(a). Such 
transportation shall not affect the unregulated status of such exempt 
property or the regulated status of the property which the carrier is 
authorized to transport under such registration.

``Sec. 13508. Limited authority over cooperative associations

    ``(a) <<NOTE: Records.>>  In General.--Notwithstanding section 
13506(a)(5), any cooperative association (as defined by section 15(a) of 
the Agricultural Marketing Act (12 U.S.C. 1141j(a))) or a federation of 
cooperative associations shall prepare and maintain such records 
relating to transportation provided by such association or federation, 
in such form as the Secretary or the Board may require by regulation to 
carry out the provisions of such section 13506(a)(5). The Secretary or 
the Board, or an employee designated by the Secretary or the Board, may 
on demand and display of proper credentials--

[[Page 109 STAT. 864]]

            ``(1) inspect and examine the lands, buildings, and 
        equipment of such association or federation; and
            ``(2) inspect and copy any record of such association or 
        federation.

    ``(b) Reports.--Notwithstanding section 13506(a)(5), the Secretary 
or the Board may require a cooperative association or federation of 
cooperative associations described in subsection (a) of this section to 
file reports with the Secretary or the Board containing answers to 
questions about transportation provided by such association or 
federation.
    ``(c) Enforcement.--The Secretary or the Board may bring a civil 
action to enforce subsections (a) and (b) of this section or a 
regulation or order of the Secretary or the Board issued under this 
section, when violated by a cooperative association or federation of 
cooperative associations described in subsection (a).
    ``(d) Reporting Penalties.--
            ``(1) In general.--A person required to make a report to the 
        Secretary or the Board, answer a question, or maintain a record 
        under this section, or an officer, agent, or employee of that 
        person, that--
                    ``(A) does not make the report;
                    ``(B) does not specifically, completely, and 
                truthfully answer the question; or
                    ``(C) does not maintain the record in the form and 
                manner prescribed under this section;
        is liable to the United States for a civil penalty of not more 
        than $500 for each violation and for not more than $250 for each 
        additional day the violation continues.
            ``(2) Venue.--Trial in a civil action under paragraph (1) 
        shall be in the judicial district in which--
                    ``(A) the cooperative association or federation of 
                cooperative associations has its principal office;
                    ``(B) the violation occurred; or
                    ``(C) the offender is found.
        Process in the action may be served in the judicial district of 
        which the offender is an inhabitant or in which the offender may 
        be found.

    ``(e) Evasion Penalties.--A person, or an officer, employee, or 
agent of that person, that by any means knowingly and willfully tries to 
evade compliance with the provisions of this section shall be fined at 
least $200 but not more than $500 for the first violation and at least 
$250 but not more than $2,000 for a subsequent violation.
    ``(f) Recordkeeping Penalties.--A person required to make a report, 
answer a question, or maintain a record under this section, or an 
officer, agent, or employee of that person, that--
            ``(1) willfully does not make that report;
            ``(2) willfully does not specifically, completely, and 
        truthfully answer that question in 30 days from the date that 
        the question is required to be answered;
            ``(3) willfully does not maintain that record in the form 
        and manner prescribed;
            ``(4) knowingly and willfully falsifies, destroys, 
        mutilates, or changes that report or record;
            ``(5) knowingly and willfully files a false report or record 
        under this section;

[[Page 109 STAT. 865]]

            ``(6) knowingly and willfully makes a false or incomplete 
        entry in that record about a business-related fact or 
        transaction; or
            ``(7) knowingly and willfully maintains a record in 
        violation of a regulation or order issued under this section;

shall be fined not more than $5,000.

              ``SUBCHAPTER II--WATER CARRIER TRANSPORTATION

``Sec. 13521. General jurisdiction

    ``(a) General Rules.--The Secretary and the Board have jurisdiction 
over transportation insofar as water carriers are concerned--
            ``(1) by water carrier between a place in a State and a 
        place in another State, even if part of the transportation is 
        outside the United States;
            ``(2) by water carrier and motor carrier from a place in a 
        State to a place in another State; except that if part of the 
        transportation is outside the United States, the Secretary only 
        has jurisdiction over that part of the transportation provided--
                    ``(A) by motor carrier that is in the United States; 
                and
                    ``(B) by water carrier that is from a place in the 
                United States to another place in the United States; and
            ``(3) by water carrier or by water carrier and motor carrier 
        between a place in the United States and a place outside the 
        United States, to the extent that--
                    ``(A) when the transportation is by motor carrier, 
                the transportation is provided in the United States;
                    ``(B) when the transportation is by water carrier to 
                a place outside the United States, the transportation is 
                provided by water carrier from a place in the United 
                States to another place in the United States before 
                transshipment from a place in the United States to a 
                place outside the United States; and
                    ``(C) when the transportation is by water carrier 
                from a place outside the United States, the 
                transportation is provided by water carrier from a place 
                in the United States to another place in the United 
                States after transshipment to a place in the United 
                States from a place outside the United States.

    ``(b) Definitions.--In this section, the terms `State' and `United 
States' include the territories and possessions of the United States.

               ``SUBCHAPTER III--FREIGHT FORWARDER SERVICE

``Sec. 13531. General jurisdiction

    ``(a) In General.--The Secretary and the Board have jurisdiction, as 
specified in this part, over service that a freight forwarder undertakes 
to provide, or is authorized or required under this part to provide, to 
the extent transportation is provided in the United States and is 
between--
            ``(1) a place in a State and a place in another State, even 
        if part of the transportation is outside the United States;
            ``(2) a place in a State and another place in the same State 
        through a place outside the State; or

[[Page 109 STAT. 866]]

            ``(3) a place in the United States and a place outside the 
        United States.

    ``(b) Exemption of Certain Air Carrier Service.--Neither the 
Secretary nor the Board has jurisdiction under subsection (a) of this 
section over service undertaken by a freight forwarder using 
transportation of an air carrier subject to part A of subtitle VII of 
this title.

                  ``SUBCHAPTER IV--AUTHORITY TO EXEMPT

``Sec. 13541. Authority to exempt transportation or services

    ``(a) In General.--In any matter subject to jurisdiction under this 
part, the Secretary or the Board, as applicable, shall exempt a person, 
class of persons, or a transaction or service from the application, in 
whole or in part, of a provision of this part, or use this exemption 
authority to modify the application of a provision of this part as it 
applies to such person, class, transaction, or service, when the 
Secretary or Board finds that the application of that provision--
            ``(1) is not necessary to carry out the transportation 
        policy of section 13101;
            ``(2) is not needed to protect shippers from the abuse of 
        market power or that the transaction or service is of limited 
        scope; and
            ``(3) is in the public interest.

    ``(b) Initiation of Proceeding.--The Secretary or Board, as 
applicable, may, where appropriate, begin a proceeding under this 
section on the Secretary's or Board's own initiative or on application 
by an interested party.
    ``(c) Period of Exemption.--The Secretary or Board, as applicable, 
may specify the period of time during which an exemption granted under 
this section is effective.
    ``(d) Revocation.--The Secretary or Board, as applicable, may revoke 
an exemption, to the extent specified, on finding that application of a 
provision of this part to the person, class, or transportation is 
necessary to carry out the transportation policy of section 13101.
    ``(e) Limitations.--
            ``(1) In general.--The exemption authority under this 
        section may not be used to relieve a person from the application 
        of, and compliance with, any law, rule, regulation, standard, or 
        order pertaining to cargo loss and damage, insurance, safety 
        fitness, or activities approved under section 13703 or 14302 or 
        not terminated under section 13907(d)(2).
            ``(2) Water carriers.--The Secretary or Board, as 
        applicable, may not exempt a water carrier from the application 
        of, or compliance with, section 13701 or 13702 for 
        transportation in the non-contiguous domestic trade.

    ``(f) Continuation of Certain Existing Exemptions for Water 
Carriers.--The Secretary or Board, as applicable, shall not regulate or 
exercise jurisdiction under this part over the transportation by water 
carrier in the non-contiguous domestic trade of any cargo or type of 
cargo or service which was not subject to regulation by, or under the 
jurisdiction of, either the Federal Maritime Commission or Interstate 
Commerce Commission under Federal law in effect on November 1, 1995.

[[Page 109 STAT. 867]]

                 ``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.

``Sec. 13701. Requirements for reasonable rates, classifications, 
                        through routes, rules, and practices for certain 
                        transportation

    ``(a) Reasonableness.--
            ``(1) Certain household goods transportation; joint rates 
        involving water transportation.--A rate, classification, rule, 
        or practice related to transportation or service provided by a 
        carrier subject to jurisdiction under chapter 135 for 
        transportation or service involving--
                    ``(A) a movement of household goods,
                    ``(B) a rate for a movement by or with a water 
                carrier in noncontiguous domestic trade, or
                    ``(C) rates, rules, and classifications made 
                collectively by motor carriers under agreements approved 
                pursuant to section 13703,
        must be reasonable.
            ``(2) Through routes and divisions of joint rates.--Through 
        routes and divisions of joint rates for such transportation or 
        service must be reasonable.

    ``(b) Prescription by Board for Violations.--When the Board finds it 
necessary to stop or prevent a violation of subsection (a), the Board 
shall prescribe the rate, classification, rule, practice, through route, 
or division of joint rates to be applied for such transportation or 
service.
    ``(c) Filing of Complaint.--A complaint that a rate, classification, 
rule, or practice in noncontiguous domestic trade violates subsection 
(a) may be filed with the Board.

    ``(d) Zone of Reasonableness.--
            ``(1) In general.--For purposes of this section, a rate or 
        division of a motor carrier for service in noncontiguous 
        domestic trade or water carrier for port-to-port service in that 
        trade is reasonable if the aggregate of increases and decreases 
        in any such rate or division is not more than 7.5 percent above, 
        or more than 10 percent below, the rate or division in effect 1 
        year before the effective date of the proposed rate or division.
            ``(2) Adjustments to the zone.--The percentage specified in 
        paragraph (1) shall be increased or decreased, as the case may 
        be, by the percentage change in the Producers Price Index, as 
        published by the Department of Labor, that has occurred during 
        the most recent 1-year period before the date the rate or 
        division in question first took effect.

[[Page 109 STAT. 868]]

            ``(3) Determinations after complaint.--The Board shall 
        determine whether any rate or division of a carrier or service 
        in noncontiguous domestic trade which is not within the range 
        described in paragraph (1) is reasonable if a complaint is filed 
        under subsection (c) or section 13702(b)(6).
            ``(4) Reparations.--Upon a finding of violation of 
        subsection (a), the Board shall award reparations to the 
        complaining shipper or shippers in an amount equal to all sums 
        assessed and collected that exceed the determined reasonable 
        rate, division, rate structure, or tariff. Upon complaint from 
        any governmental agency or authority and upon a finding or 
        violation of subsection (a), the Board shall make such orders as 
        are just and shall require the carrier to return, to the extent 
        practicable, to shippers all amounts plus interest, which the 
        Board finds to have been assessed and collected in violation of 
        subsection (a).

``Sec. 13702. Tariff requirement for certain transportation

    ``(a) In General.--Except when providing transportation for 
charitable purposes without charge, a carrier subject to jurisdiction 
under chapter 135 may provide transportation or service that is--
            ``(1) in noncontiguous domestic trade, except with regard to 
        bulk cargo, forest products, recycled metal scrap, waste paper, 
        and paper waste; or
            ``(2) for movement of household goods;

only if the rate for such transportation or service is contained in a 
tariff that is in effect under this section. The carrier may not charge 
or receive a different compensation for the transportation or service 
than the rate specified in the tariff, whether by returning a part of 
that rate to a person, giving a person a privilege, allowing the use of 
a facility that affects the value of that transportation or service, or 
another device. A rate contained in a tariff shall be stated in money of 
the United States.
    ``(b) Tariff Requirements for Noncontiguous Domestic Trade.--
            ``(1) <<NOTE: Publication.>>  Filing.--A carrier providing 
        transportation or service described in subsection (a)(1) shall 
        publish and file with the Board tariffs containing the rates 
        established for such transportation or service. The carriers 
        shall keep such tariffs available for public 
        inspection. <<NOTE: Regulations.>>  The Board shall prescribe 
        the form and manner of publishing, filing, and keeping
tariffs available for public inspection under this subsection.
            ``(2) Contents.--The Board may prescribe any specific 
        information and charges to be identified in a tariff, but at a 
        minimum tariffs must identify plainly--
                    ``(A) the carriers that are parties to it;
                    ``(B) the places between which property will be 
                transported;
                    ``(C) terminal charges if a carrier provides 
                transportation or service subject to jurisdiction under 
                subchapter III of chapter 135;
                    ``(D) privileges given and facilities allowed; and
                    ``(E) any rules that change, affect, or determine 
                any part of the published rate.
            ``(3) Inland divisions.--A carrier providing transportation 
        or service described in subsection (a)(1) under a joint rate for 
        a through movement shall not be required to state sepa

[[Page 109 STAT. 869]]

        rately or otherwise reveal in tariff filings the inland 
        divisions of that through rate.
            ``(4) Time-volume rates.--Rates in tariffs filed under this 
        subsection may vary with the volume of cargo offered over a 
        specified period of time.
            ``(5) Changes.--The Board may permit carriers to change 
        rates, classifications, rules, and practices without filing 
        complete tariffs under this subsection that cover matter that is 
        not being changed when the Board finds that action to be 
        consistent with the public interest. Those carriers may either--
                    ``(A) publish new tariffs that incorporate changes, 
                or
                    ``(B) plainly indicate the proposed changes in the 
                tariffs then in effect and make the tariffs as changed 
                available for public inspection.
            ``(6) Complaints.--A complaint that a rate or related rule 
        or practice maintained in a tariff under this subsection 
        violates section 13701(a) may be submitted to the Board for 
        resolution.

    ``(c) Tariff Requirements for Household Goods Carriers.--
            ``(1) In general.--A carrier providing transportation 
        described in subsection (a)(2) shall maintain rates and related 
        rules and practices in a published tariff. The tariff must be 
        available for inspection by the Board and be made available for 
        inspection by shippers upon reasonable request.
            ``(2) Notice of availability.--A carrier that maintains a 
        tariff under this subsection may not enforce the provisions of 
        the tariff unless the carrier has given notice that the tariff 
        is available for inspection in its bill of lading or by other 
        actual notice to individuals whose shipments are subject to the 
        tariff.
            ``(3) Requirements.--A carrier that maintains a tariff under 
        this subsection is bound by the tariff except as otherwise 
        provided in this part. A tariff that does not comply with this 
        subsection may not be enforced against any individual shipper.
            ``(4) Incorporation by reference.--A carrier may incorporate 
        by reference the rates, terms, and other conditions of a tariff 
        in agreements covering the transportation of household goods.
            ``(5) Complaints.--A complaint that a rate or related rule 
        or practice maintained in a tariff under this subsection 
        violates section 13701(a) may be submitted to the Board for 
        resolution.

    ``(d) Invalidation.--The Board may invalidate a tariff prepared by a 
carrier or carriers under this section if that tariff violates this 
section or a regulation of the Board carrying out this section.
``Sec. 13703. Certain collective activities; exemption from 
                      antitrust laws

    ``(a) Agreements.--
            ``(1) Authority to enter.--A motor carrier providing 
        transportation or service subject to jurisdiction under chapter 
        135 may enter into an agreement with one or more such carriers 
        to establish--
                    ``(A) through routes and joint rates;
                    ``(B) rates for the transportation of household 
                goods;
                    ``(C) classifications;
                    ``(D) mileage guides;
                    ``(E) rules;
                    ``(F) divisions;

[[Page 109 STAT. 870]]

                    ``(G) rate adjustments of general application based 
                on industry average carrier costs (so long as there is 
                no discussion of individual markets or particular 
                single-line rates); or
                    ``(H) procedures for joint consideration, 
                initiation, or establishment of matters described in 
                subparagraphs (A) through (G).
            ``(2) Submission of agreement to board; approval.--An 
        agreement entered into under subsection (a) may be submitted by 
        any carrier or carriers that are parties to such agreement to 
        the Board for approval and may be approved by the Board only if 
        it finds that such agreement is in the public interest.
            ``(3) Conditions.--The Board may require compliance with 
        reasonable conditions consistent with this part to assure that 
        the agreement furthers the transportation policy set forth in 
        section 13101.
            ``(4) Independently established rates.--Any carrier which is 
        a party to an agreement under paragraph (1) is not, and may not 
        be, precluded from independently establishing its own rates, 
        classification, and mileages or from adopting and using a 
        noncollectively made classification or mileage guide.
            ``(5) Investigations.--
                    ``(A) Reasonableness.--The Board may suspend and 
                investigate the reasonableness of any rate, rule, 
                classification, or rate adjustment of general 
                application made pursuant to an agreement under this 
                section.
                    ``(B) Actions not in the public interest.--The Board 
                may investigate any action taken pursuant to an 
                agreement approved under this section. If the Board 
                finds that the action is not in the public interest, the 
                Board may take such measures as may be necessary to 
                protect the public interest with regard to the action, 
                including issuing an order directing the parties to 
                cease and desist or modify the action.
            ``(6) Effect of approval.--If the Board approves the 
        agreement or renews approval of the agreement, it may be made 
        and carried out under its terms and under the conditions 
        required by the Board, and the antitrust laws, as defined in the 
        first section of the Clayton Act (15 U.S.C. 12), do not apply to 
        parties and other persons with respect to making or carrying out 
        the agreement.

    ``(b) Records.--The Board may require an organization established or 
continued under an agreement approved under this section to maintain 
records and submit reports. The Board, or its delegate, may inspect a 
record maintained under this section, or monitor any organization's 
compliance with this section.
    ``(c) Review.--The Board may review an agreement approved under this 
section, on its own initiative or on request, and shall change the 
conditions of approval or terminate it when necessary to protect the 
public interest. Action of the Board under this section--
            ``(1) approving an agreement,
            ``(2) denying, ending, or changing approval,
            ``(3) prescribing the conditions on which approval is 
        granted, or
            ``(4) changing those conditions,

[[Page 109 STAT. 871]]

has effect only as related to application of the antitrust laws referred 
to in subsection (a).

    ``(d) Expiration of Approvals; Renewals.--Subject to subsection (c), 
approval of an agreement under subsection (a) shall expire 3 years after 
the date of approval unless renewed under this subsection. The approval 
may be renewed upon request of the parties to the agreement if such 
parties resubmit the agreement to the Board, the agreement is unchanged, 
and the Board approves such renewal. The Board shall approve the renewal 
unless it finds that the renewal is not in the public interest. Parties 
to the agreement may continue to undertake activities pursuant to the 
previously approved agreement while the renewal request is pending.
    ``(e) Existing Agreements.--Agreements approved under former section 
10706(b) and in effect on the day before the effective date of this 
section shall be treated for purposes of this section as approved by the 
Board under this section beginning on such effective date.
    ``(f) Limitations on Statutory Construction.--
            ``(1) Undercharge claims.--Nothing in this section shall 
        serve as a basis for any undercharge claim.
            ``(2) Obligation of shipper.--Nothing in this title, the ICC 
        Termination Act of 1995, or any amendments or repeals made by 
        such Act shall be construed as creating any obligation for a 
        shipper based solely on a classification that was on file with 
        the Interstate Commerce Commission or elsewhere on the day 
        before the effective date of this section.

    ``(g) Industry Standard Guides.--
            ``(1) In general.--
                    ``(A) <<NOTE: Publication.>>  Public availability.--
                Routes, rates, classifications, mileage guides, and 
                rules established under agreements approved under this 
                section shall be published and made available for public 
                inspection upon request.
                    ``(B) Participation of carriers.--
                          ``(i) In general.--A motor carrier of property 
                      whose routes, rates, classifications, mileage 
                      guides, rules, or packaging are determined or 
                      governed by publications established under 
                      agreements approved under this section must 
                      participate in the determining or governing 
                      publication for such provisions to apply.
                          ``(ii) Power of attorney.--The motor carrier 
                      of property shall issue a power of attorney to the 
                      publishing agent and, upon its acceptance, the 
                      agent shall issue a written certification to the 
                      motor carrier affirming its participation in the 
                      governing publication, and the certification shall 
                      be made available for public inspection.
            ``(2) Mileage limitation.--No carrier subject to 
        jurisdiction under subchapter I or III of chapter 135 may 
        enforce collection of its mileage rates unless such carrier--
                    ``(A) is a participant in a publication of mileages 
                formulated under an agreement approved under this 
                section; or
                    ``(B) uses a publication of mileage (other than a 
                publication described in subparagraph (A)) that can be 
                examined by any interested person upon reasonable 
                request.

    ``(h) Single Line Rate Defined.--In this section, the term `single 
line rate' means a rate, charge, or allowance proposed by

[[Page 109 STAT. 872]]

a single motor carrier that is applicable only over its line and for 
which the transportation can be provided by that carrier.
``Sec. 13704. Household goods rates--estimates; guarantees of 
                      service

    ``(a) In General.--
            ``(1) Authority.--Subject to the provisions of paragraph (2) 
        of this subsection, a motor carrier providing transportation of 
        household goods subject to jurisdiction under subchapter I of 
        chapter 135 may establish a rate for the transportation of 
        household goods which is based on the carrier's written, binding 
        estimate of charges for providing such transportation.
            ``(2) Nonpreferential; nonpredatory.--Any rate established 
        under this subsection must be available on a nonpreferential 
        basis to shippers and must not result in charges to shippers 
        which are predatory.

    ``(b) Rates for Guaranteed Service.--
            ``(1) Authority.--Subject to the provisions of paragraph (2) 
        of this subsection, a motor carrier providing transportation of 
        household goods subject to jurisdiction under subchapter I of 
        chapter 135 may establish rates for the transportation of 
        household goods which guarantee that the carrier will pick up 
        and deliver such household goods at the times specified in the 
        contract for such services and provide a penalty or per diem 
        payment in the event the carrier fails to pick up or deliver 
        such household goods at the specified time. The charges, if any, 
        for such guarantee and penalty provision may vary to reflect one 
        or more options available to meet a particular shipper's needs.
            ``(2) Authority of secretary to require nonguaranteed 
        service rates.--Before a carrier may establish a rate for any 
        service under paragraph (1) of this subsection, the Secretary 
        may require such carrier to have in effect and keep in effect, 
        during any period such rate is in effect under paragraph (1), a 
        rate for such service which does not guarantee the pick up and 
        delivery of household goods at the times specified in the 
        contract for such services and which does not provide a penalty 
        or per diem payment in the event the carrier fails to pick up or 
        deliver household goods at the specified time.
``Sec. 13705. Requirements for through routes among motor carriers 
                      of passengers

    ``(a) Establishment; Reasonableness.--A motor carrier providing 
transportation of passengers subject to jurisdiction under subchapter I 
of chapter 135 shall establish through routes with other carriers of the 
same type and shall establish individual and joint rates applicable to 
them. Such through route must be reasonable.
    ``(b) Prescribed by Board.--When the Board finds it necessary to 
enforce the requirements of this section, the Board may prescribe 
through routes and the conditions under which those routes must be 
operated for motor carriers providing transportation of passengers 
subject to jurisdiction under subchapter I of chapter 135.

``Sec. 13706. Liability for payment of rates

    ``(a) Liability of Consignee.--Liability for payment of rates for 
transportation for a shipment of property by a shipper or con

[[Page 109 STAT. 873]]

signor to a consignee other than the shipper or consignor, is determined 
under this section when the transportation is provided by motor carrier 
under this part. When the shipper or consignor instructs the carrier 
transporting the property to deliver it to a consignee that is an agent 
only, not having beneficial title to the property, the consignee is 
liable for rates billed at the time of delivery for which the consignee 
is otherwise liable, but not for additional rates that may be found to 
be due after delivery if the consignee gives written notice to the 
delivering carrier before delivery of the property--
            ``(1) of the agency and absence of beneficial title; and
            ``(2) of the name and address of the beneficial owner of the 
        property if it is reconsigned or diverted to a place other than 
        the place specified in the original bill of lading.

    ``(b) Liability of Beneficial Owner.--When the consignee is liable 
only for rates billed at the time of delivery under subsection (a), the 
shipper or consignor, or, if the property is reconsigned or diverted, 
the beneficial owner is liable for those additional rates regardless of 
the bill of the lading or contract under which the property was 
transported. The beneficial owner is liable for all rates when the 
property is reconsigned or diverted by an agent but is refused or 
abandoned at its ultimate destination if the agent gave the carrier in 
the reconsignment or diversion order a notice of agency and the name and 
address of the beneficial owner. A consignee giving the carrier 
erroneous information about the identity of the beneficial owner of the 
property is liable for the additional rates.

``Sec. 13707. Payment of rates

    ``(a) Transfer of Possession Upon Payment.--Except as provided in 
subsection (b), a carrier providing transportation or service subject to 
jurisdiction under this part shall give up possession at the destination 
of the property transported by it only when payment for the 
transportation or service is made.
    ``(b) Exceptions.--
            ``(1) Regulations.--Under regulations of the Secretary 
        governing the payment for transportation and service and 
        preventing discrimination, those carriers may give up possession 
        at destination of property transported by them before payment 
        for the transportation or service. The regulations of the 
        Secretary may provide for weekly or monthly payment for 
        transportation provided by motor carriers and for periodic 
        payment for transportation provided by water carriers.
            ``(2) Extensions of credit to governmental entities.--Such a 
        carrier (including a motor carrier being used by a household 
        goods freight forwarder) may extend credit for transporting 
        property for the United States Government, a State, a territory 
        or possession of the United States, or a political subdivision 
        of any of them.

``Sec. 13708. Billing and collecting practices

    ``(a) Disclosure.--A motor carrier subject to jurisdiction under 
subchapter I of chapter 135 shall disclose, when a document is presented 
or electronically transmitted for payment to the person responsible 
directly to the motor carrier for payment or agent of such responsible 
person, the actual rates, charges, or allowances for any transportation 
service and shall also disclose, at such time,

[[Page 109 STAT. 874]]

whether and to whom any allowance or reduction in charges is made.

    ``(b) False or Misleading Information.--No person may cause a motor 
carrier to present false or misleading information on a document about 
the actual rate, charge, or allowance to any party to the transaction.
    ``(c) Allowances for Services.--When the actual rate, charge, or 
allowance is dependent upon the performance of a service by a party to 
the transportation arrangement, such as tendering a volume of freight 
over a stated period of time, the motor carrier shall indicate in any 
document presented for payment to the person responsible directly to the 
motor carrier that a reduction, allowance, or other adjustment may 
apply.
``Sec. 13709. Procedures for resolving claims involving unfiled, 
                      negotiated transportation rates

    ``(a) Transportation Provided at Rates Other Than Legal Tariff 
Rates.--
            ``(1) In general.--When a claim is made by a motor carrier 
        of property (other than a household goods carrier) providing 
        transportation subject to jurisdiction under subchapter II of 
        chapter 105 (as in effect on the day before the effective date 
        of this section) or subchapter I of chapter 135, by a freight 
        forwarder (other than a household goods freight forwarder), or 
        by a party representing such a carrier or freight forwarder 
        regarding the collection of rates or charges for such 
        transportation in addition to those originally billed and 
        collected by the carrier or freight forwarder for such 
        transportation, the person against whom the claim is made may 
        elect to satisfy the claim under the provisions of subsection 
        (b), (c), or (d), upon showing that--
                    ``(A) the carrier or freight forwarder is no longer 
                transporting property or is transporting property for 
                the purpose of avoiding the application of this section; 
                and
                    ``(B) with respect to the claim--
                          ``(i) the person was offered a transportation 
                      rate by the carrier or freight forwarder other 
                      than that legally on file at the time with the 
                      Board or with the Interstate Commerce Commission, 
                      as required, for the transportation service;
                          ``(ii) the person tendered freight to the 
                      carrier or freight forwarder in reasonable 
                      reliance upon the offered transportation rate;
                          ``(iii) the carrier or freight forwarder did 
                      not properly or timely file with the Board or with 
                      the Interstate Commerce Commission, as required, a 
                      tariff providing for such transportation rate or 
                      failed to enter into an agreement for contract 
                      carriage;
                          ``(iv) such transportation rate was billed and 
                      collected by the carrier or freight forwarder; and
                          ``(v) the carrier or freight forwarder demands 
                      additional payment of a higher rate filed in a 
                      tariff.
            ``(2) <<NOTE: Courts.>>  Forum.--If there is a dispute as to 
        the showing under paragraph (1)(A), such dispute shall be 
        resolved by the court in which the claim is brought. If there is 
        a dispute as to the showing under paragraph (1)(B), such dispute 
        shall be resolved by the Board. Pending the resolution of any 
        such

[[Page 109 STAT. 875]]

        dispute, the person shall not have to pay any additional 
        compensation to the carrier or freight forwarder.
            ``(3) Effect of satisfaction of claims.--Satisfaction of the 
        claim under subsection (b), (c), or (d) shall be binding on the 
        parties, and the parties shall not be subject to chapter 119 of 
        this title, as such chapter was in effect on the day before the 
        effective date of this section, or chapter 149.

    ``(b) Claims Involving Shipments Weighing 10,000 Pounds or Less.--A 
person from whom the additional legally applicable and effective tariff 
rate or charges are sought may elect to satisfy the claim if the 
shipments each weighed 10,000 pounds or less, by payment of 20 percent 
of the difference between the carrier's applicable and effective tariff 
rate and the rate originally billed and paid. In the event that a 
dispute arises as to the rate that was legally applicable to the 
shipment, such dispute shall be resolved by the Board.
    ``(c) Claims Involving Shipments Weighing More Than 10,000 Pounds.--
A person from whom the additional legally applicable and effective 
tariff rate or charges are sought may elect to satisfy the claim if the 
shipments each weighed more than 10,000 pounds, by payment of 15 percent 
of the difference between the carrier's applicable and effective tariff 
rate and the rate originally billed and paid. In the event that a 
dispute arises as to the rate that was legally applicable to the 
shipment, such dispute shall be resolved by the Board.
    ``(d) Claims Involving Public Warehousemen.--Notwithstanding 
subsections (b) and (c), a person from whom the additional legally 
applicable and effective tariff rate or charges are sought may elect to 
satisfy the claim by payment of 5 percent of the difference between the 
carrier's applicable and effective tariff rate and the rate originally 
billed and paid if such person is a public warehouseman. In the event 
that a dispute arises as to the rate that was legally applicable to the 
shipment, such dispute shall be resolved by the Board.
    ``(e) Effects of Election.--When a person from whom additional 
legally applicable freight rates or charges are sought does not elect to 
use the provisions of subsection (b), (c) or (d), the person may pursue 
all rights and remedies existing under this part or, for transportation 
provided before the effective date of this section, all rights and 
remedies that existed under this title on the day before such effective 
date.
    ``(f) Stay of Additional Compensation.--When a person proceeds under 
this section to challenge the reasonableness of the legally applicable 
freight rate or charges being claimed by a carrier or freight forwarder 
in addition to those already billed and collected, the person shall not 
have to pay any additional compensation to the carrier or freight 
forwarder until the Board has made a determination as to the 
reasonableness of the challenged rate as applied to the freight of the 
person against whom the claim is made.
    ``(g) Notification of Election.--
            ``(1) General rule.--A person must notify the carrier or 
        freight forwarder as to its election to proceed under subsection 
        (b), (c), or (d). Except as provided in paragraphs (2), (3), and 
        (4), such election may be made at any time.
            ``(2) Demands for payment initially made after december 3, 
        1993.--If the carrier or freight forwarder or party rep

[[Page 109 STAT. 876]]

        resenting such carrier or freight forwarder initially demands 
        the payment of additional freight charges after December 3, 
        1993, and notifies the person from whom additional freight 
        charges are sought of the provisions of subsections (a) through 
        (f) at the time of the making of such initial demand, the 
        election must be made not later than the later of--
                    ``(A) the 60th day following the filing of an answer 
                to a suit for the collection of such additional legally 
                applicable freight rate or charges, or
                    ``(B) March 5, 1994.
            ``(3) Pending suits for collection made before december 4, 
        1993.--If the carrier or freight forwarder or party representing 
        such carrier or freight forwarder has filed, before December 4, 
        1993, a suit for the collection of additional freight charges 
        and notifies the person from whom additional freight charges are 
        sought of the provisions of subsections (a) through (f), the 
        election must be made not later than the 90th day following the 
        date on which such notification is received.
            ``(4) Demands for payment made before december 4, 1993.--If 
        the carrier or freight forwarder or party representing such 
        carrier or freight forwarder has demanded the payment of 
        additional freight charges, and has not filed a suit for the 
        collection of such additional freight charges, before December 
        4, 1993, and notifies the person from whom additional freight 
        charges are sought of the provisions of subsections (a) through 
        (f), the election must be made not later than the later of--
                    ``(A) the 60th day following the filing of an answer 
                to a suit for the collection of such additional legally 
                applicable freight rate or charges, or
                    ``(B) March 5, 1994.

    ``(h) Claims Involving Small-Business Concerns, Charitable 
Organizations, and Recyclable Materials.--
            ``(1) In general.--Notwithstanding subsections (b), (c), and 
        (d), a person from whom the additional legally applicable and 
        effective tariff rate or charges are sought shall not be liable 
        for the difference between the carrier's applicable and 
        effective tariff rate and the rate originally billed and paid--
                    ``(A) if such person qualifies as a small-business 
                concern under the Small Business Act (15 U.S.C. 631 et 
                seq.),
                    ``(B) if such person is an organization which is 
                described in section 501(c)(3) of the Internal Revenue 
                Code of 1986 and exempt from tax under section 501(a) of 
                such Code, or
                    ``(C) if the cargo involved in the claim is 
                recyclable materials.
            ``(2) Recyclable materials defined.--In this subsection, the 
        term `recyclable materials' means waste products for recycling 
        or reuse in the furtherance of recognized pollution control 
        programs.

``Sec. 13710. Additional billing and collecting practices

    ``(a) Miscellaneous Provisions.--
            ``(1) Information relating to basis of rate.--A motor 
        carrier of property (other than a motor carrier providing 
        transportation in noncontiguous domestic trade) shall provide to 
        the shipper, on request of the shipper, a written or electronic 
        copy of the rate, classification, rules, and practices, upon 
        which

[[Page 109 STAT. 877]]

        any rate applicable to its shipment or agreed to between the 
        shipper and carrier is based.
            ``(2) Reasonableness of rates; collecting additional 
        charges.--When the applicability or reasonableness of the rates 
        and related provisions billed by a motor carrier is challenged 
        by the person paying the freight charges, the Board shall 
        determine whether such rates and provisions are reasonable under 
        section 13701 or applicable based on the record before it.
            ``(3) Billing disputes.--
                    ``(A) Initiated by motor carriers.--In those cases 
                where a motor carrier (other than a motor carrier 
                providing transportation of household goods or in 
                noncontiguous domestic trade) seeks to collect charges 
                in addition to those billed and collected which are 
                contested by the payor, the carrier may request that the 
                Board determine whether any additional charges over 
                those billed and collected must be paid. A carrier must 
                issue any bill for charges in addition to those 
                originally billed within 180 days of the receipt of the 
                original bill in order to have the right to collect such 
                charges.
                    ``(B) Initiated by shippers.--If a shipper seeks to 
                contest the charges originally billed or additional 
                charges subsequently billed, the shipper may request 
                that the Board determine whether the charges billed must 
                be paid. A shipper must contest the original bill or 
                subsequent bill within 180 days of receipt of the bill 
                in order to have the right to contest such charges.
            ``(4) Voiding of certain tariffs.--Any tariff on file with 
        the Interstate Commerce Commission on August 26, 1994, and not 
        required to be filed after that date is null and void beginning 
        on that date. Any tariff on file with the Interstate Commerce 
        Commission on the effective date of this section and not 
        required to be filed after that date is null and void beginning 
        on that date.

    ``(b) Resolution of Disputes Over Status of Common Carrier or 
Contract Carrier.--If a motor carrier (other than a motor carrier 
providing transportation of household goods) that was subject to 
jurisdiction under subchapter II of chapter 105, as in effect on the day 
before the effective date of this section, and that had authority to 
provide transportation as both a motor common carrier and a motor 
contract carrier and a dispute arises as to whether certain 
transportation that was provided prior to the effective date of this 
section was provided in its common carrier or contract carrier capacity 
and the parties are not able to resolve the dispute consensually, the 
Board shall resolve the dispute.
``Sec. 13711. Alternative procedure for resolving undercharge 
                      disputes

    ``(a) General Rule.--It shall be an unreasonable practice for a 
motor carrier of property (other than a household goods carrier) 
providing transportation subject to jurisdiction under subchapter I of 
chapter 135 or, before the effective date of this section, to have 
provided transportation that was subject to jurisdiction under 
subchapter II of chapter 105, as in effect on the day before the 
effective date of this section, a freight forwarder (other than a 
household goods freight forwarder), or a party representing such

[[Page 109 STAT. 878]]

a carrier or freight forwarder to attempt to charge or to charge for a 
transportation service the difference between (1) the applicable rate 
that was lawfully in effect pursuant to a tariff that was filed in 
accordance with this chapter or, with respect to transportation provided 
before the effective date of this section, in accordance with chapter 
107, as in effect on the date the transportation was provided, by the 
carrier or freight forwarder applicable to such transportation service, 
and (2) the negotiated rate for such transportation service if the 
carrier or freight forwarder is no longer transporting property between 
places described in section 13501(1) or is transporting property between 
places described in section 13501(1) for the purpose of avoiding 
application of this section.
    ``(b) Jurisdiction of Board.--
            ``(1) Determination.--The Board shall have jurisdiction to 
        make a determination of whether or not attempting to charge or 
        the charging of a rate by a motor carrier or freight forwarder 
        or party representing a motor carrier or freight forwarder is an 
        unreasonable practice under subsection (a). If the Board 
        determines that attempting to charge or the charging of the rate 
        is an unreasonable practice under subsection (a), the carrier, 
        freight forwarder, or party may not collect the difference 
        described in subsection (a) between the applicable rate and the 
        negotiated rate for the transportation service.
            ``(2) Factors to consider.--In making a determination under 
        paragraph (1), the Board shall consider--
                    ``(A) whether the person was offered a 
                transportation rate by the carrier or freight forwarder 
                or party other than that legally on file with the 
                Interstate Commerce Commission or the Board, as 
                required, at the time of the movement for the 
                transportation service;
                    ``(B) whether the person tendered freight to the 
                carrier or freight forwarder in reasonable reliance upon 
                the offered transportation rate;
                    ``(C) whether the carrier or freight forwarder did 
                not properly or timely file with the Interstate Commerce 
                Commission or the Board, as required, a tariff providing 
                for such transportation rate or failed to enter into an 
                agreement for contract carriage;
                    ``(D) whether the transportation rate was billed and 
                collected by the carrier or freight forwarder; and
                    ``(E) whether the carrier or freight forwarder or 
                party demands additional payment of a higher rate filed 
                in a tariff.

    ``(c) Stay of Additional Compensation.--When a person proceeds under 
this section to challenge the reasonableness of the practice of a motor 
carrier, freight forwarder, or party described in subsection (a) to 
attempt to charge or to charge the difference described in subsection 
(a) between the applicable rate and the negotiated rate for the 
transportation service in addition to those charges already billed and 
collected for the transportation service, the person shall not have to 
pay any additional compensation to the carrier, freight forwarder, or 
party until the Board has made a determination as to the reasonableness 
of the practice as applied to the freight of the person against whom the 
claim is made.
    ``(d) Treatment.--Subsection (a) is an exception to the requirements 
of section 13702 and, for transportation provided before

[[Page 109 STAT. 879]]

the effective date of this section, to the requirements of sections 
10761(a) and 10762, as in effect on the day before such effective date, 
as such sections relate to a filed tariff rate and other general tariff 
requirements.
    ``(e) Nonapplicability of Negotiated Rate Dispute Resolution 
Procedure.--If a person elects to seek enforcement of subsection (a) 
with respect to a rate for a transportation or service, section 13709 
shall not apply to such rate.
    ``(f) Definitions.--In this section, the term ``negotiated rate'' 
means a rate, charge, classification, or rule agreed upon by a motor 
carrier or freight forwarder and a shipper through negotiations pursuant 
to which no tariff was lawfully and timely filed and for which there is 
written evidence of such agreement.

    ``(g) Applicability to Pending Cases.--This section shall apply to 
all cases and proceedings pending on the effective date of this section.

``Sec. 13712. Government traffic

    ``A carrier providing transportation or service for the United 
States Government may transport property or individuals for the United 
States Government without charge or at a rate reduced from the 
applicable commercial rate. Section 3709 of the Revised Statutes (41 
U.S.C. 5) does not apply when transportation for the United States 
Government can be obtained from a carrier lawfully operating in the area 
where the transportation would be provided.

``Sec. 13713. Food and grocery transportation

    ``(a) Certain Compensation Prohibited.--Notwithstanding any other 
provision of law, it shall not be unlawful for a seller of food and 
grocery products using a uniform zone delivered pricing system to 
compensate a customer who picks up purchased food and grocery products 
at the shipping point of the seller if such compensation is available to 
all customers of the seller on a nondiscriminatory basis and does not 
exceed the actual cost to the seller of delivery to such customer.
    ``(b) Sense of Congress.--It is the sense of the Congress that any 
savings accruing to a customer by reason of compensation permitted by 
subsection (a) of this section should be passed on to the ultimate 
consumer.

                       ``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.

``Sec. 13901. Requirement for registration

    ``A person may provide transportation or service subject to 
jurisdiction under subchapter I or III of chapter 135 or be a broker for 
transportation subject to jurisdiction under subchapter I of that 
chapter, only if the person is registered under this chapter to provide 
the transportation or service.

[[Page 109 STAT. 880]]

``Sec. 13902. Registration of motor carriers

    ``(a) Motor Carrier Generally.--
            ``(1) In general.--Except as provided in this section, the 
        Secretary shall register a person to provide transportation 
        subject to jurisdiction under subchapter I of chapter 135 of 
        this title as a motor carrier if the Secretary finds that the 
        person is willing and able to comply with--
                    ``(A) this part and the applicable regulations of 
                the Secretary and the Board;
                    ``(B) any safety regulations imposed by the 
                Secretary and the safety fitness requirements 
                established by the Secretary under section 31144; and
                    ``(C) the minimum financial responsibility 
                requirements established by the Secretary pursuant to 
                sections 13906 and 31138.
            ``(2) Consideration of evidence; findings.--The Secretary 
        shall consider and, to the extent applicable, make findings on, 
        any evidence demonstrating that the registrant is unable to 
        comply with the requirements of subparagraph (A), (B), or (C) of 
        paragraph (1).
            ``(3) Withholding.--If the Secretary determines that any 
        registrant under this section does not meet the requirements of 
        paragraph (1), the Secretary shall withhold registration.
            ``(4) Limitation on complaints.--The Secretary may hear a 
        complaint from any person concerning a registration under this 
        subsection only on the ground that the registrant fails or will 
        fail to comply with this part, the applicable regulations of the 
        Secretary and the Board, the safety regulations of the 
        Secretary, or the safety fitness or minimum financial 
        responsibility requirements of paragraph (1) of this subsection.

    ``(b) Motor Carriers of Passengers.--
            ``(1) Registration of private recipients of governmental 
        assistance.--The Secretary shall register under subsection 
        (a)(1) a private recipient of governmental assistance to provide 
        special or charter transportation subject to jurisdiction under 
        subchapter I of chapter 135 as a motor carrier of passengers if 
        the Secretary finds that the recipient meets the requirements of 
        subsection (a)(1), unless the Secretary finds, on the basis of 
        evidence presented by any person objecting to the registration, 
        that the transportation to be provided pursuant to the 
        registration is not in the public interest.
            ``(2) Registration of public recipients of governmental 
        assistance.--
                    ``(A) Charter transportation.--The Secretary shall 
                register under subsection (a)(1) a public recipient of 
                governmental assistance to provide special or charter 
                transportation subject to jurisdiction under subchapter 
                I of chapter 135 as a motor carrier of passengers if the 
                Secretary finds that--
                          ``(i) the recipient meets the requirements of 
                      subsection (a)(1); and
                          ``(ii)(I) no motor carrier of passengers 
                      (other than a motor carrier of passengers which is 
                      a public recipient of governmental assistance) is 
                      providing, or is willing to provide, the 
                      transportation; or

[[Page 109 STAT. 881]]

                          ``(II) the transportation is to be provided 
                      entirely in the area in which the public recipient 
                      provides regularly scheduled mass transportation 
                      services.
                    ``(B) Regular-route transportation.--The Secretary 
                shall register under subsection (a)(1) a public 
                recipient of governmental assistance to provide regular-
                route transportation subject to jurisdiction under 
                subchapter I of chapter 135 as a motor carrier of 
                passengers if the Secretary finds that the recipient 
                meets the requirements of subsection (a)(1), unless the 
                Secretary finds, on the basis of evidence presented by 
                any person objecting to the registration, that the 
                transportation to be provided pursuant to the 
                registration is not in the public interest.
                    ``(C) Treatment of certain public recipients.--Any 
                public recipient of governmental assistance which is 
                providing or seeking to provide transportation of 
                passengers subject to jurisdiction under subchapter I of 
                chapter 135 shall, for purposes of this part, be treated 
                as a person which is providing or seeking to provide 
                transportation of passengers subject to such 
                jurisdiction.
            ``(3) Intrastate transportation by interstate carriers.--A 
        motor carrier of passengers that is registered by the Secretary 
        under subsection (a) is authorized to provide regular-route 
        transportation entirely in one State as a motor carrier of 
        passengers if such intrastate transportation is to be provided 
        on a route over which the carrier provides interstate 
        transportation of passengers.
            ``(4) Preemption of state regulation regarding certain 
        service.--No State or political subdivision thereof and no 
        interstate agency or other political agency of 2 or more States 
        shall enact or enforce any law, rule, regulation, standard or 
        other provision having the force and effect of law relating to 
        the provision of pickup and delivery of express packages, 
        newspapers, or mail in a commercial zone if the shipment has had 
        or will have a prior or subsequent movement by bus in intrastate 
        commerce and, if a city within the commercial zone, is served by 
        a motor carrier of passengers providing regular-route 
        transportation of passengers subject to jurisdiction under 
        subchapter I of chapter 135.
            ``(5) Jurisdiction over certain intrastate transportation.--
        Subject to section 14501(a), any intrastate transportation 
        authorized by this subsection shall be treated as transportation 
        subject to jurisdiction under subchapter I of chapter 135 until 
        such time as the carrier takes such action as is necessary to 
        establish under the laws of such State rates, rules, and 
        practices applicable to such transportation, but in no case 
        later than the 30th day following the date on which the motor 
        carrier of passengers first begins providing transportation 
        entirely in one State under this paragraph.
            ``(6) Special operations.--This subsection shall not apply 
        to any regular-route transportation of passengers provided 
        entirely in one State which is in the nature of a special 
        operation.
            ``(7) Suspension or revocation.--Intrastate transportation 
        authorized under this subsection may be suspended or revoked by 
        the Secretary under section 13905 of this title at any time.

[[Page 109 STAT. 882]]

            ``(8) Definitions.--In this subsection, the following 
        definitions apply:
                    ``(A) Public recipient of governmental assistance.--
                The term `public recipient of governmental assistance' 
                means--
                          ``(i) any State,
                          ``(ii) any municipality or other political 
                      subdivision of a State,
                          ``(iii) any public agency or instrumentality 
                      of one or more States and municipalities and 
                      political subdivisions of a State,
                          ``(iv) any Indian tribe,
                          ``(v) any corporation, board, or other person 
                      owned or controlled by any entity described in 
                      clause (i), (ii), (iii), or (iv), and
                which before, on, or after the effective date of this 
                subsection received governmental assistance for the 
                purchase or operation of any bus.
                    ``(B) Private recipient of government assistance.--
                The term `private recipient of government assistance' 
                means any person
(other than a person described in subparagraph (A)) who before, on, or 
after the effective date of this paragraph received governmental 
financial assistance in the form of a subsidy for the purchase, lease, 
or operation of any bus.

    ``(c) Restrictions on Motor Carriers Domiciled in or Owned or 
Controlled by Nationals of a Contiguous Foreign Country.--
            ``(1) Prevention of discriminatory practices.--If the 
        President, or the delegate thereof, determines that an act, 
        policy, or practice of a foreign country contiguous to the 
        United States, or any political subdivision or any 
        instrumentality of any such country is unreasonable or 
        discriminatory and burdens or restricts United States 
        transportation companies providing, or seeking to provide, motor 
        carrier transportation to, from, or within such foreign country, 
        the President or such delegate may--
                    ``(A) seek elimination of such practices through 
                consultations; or
                    ``(B) notwithstanding any other provision of law, 
                suspend, modify, amend, condition, or restrict 
                operations, including geographical restriction of 
                operations, in the United States by motor carriers of 
                property or passengers domiciled in such foreign country 
                or owned or controlled by persons of such foreign 
                country.
            ``(2) Equalization of treatment.--Any action taken under 
        paragraph (1)(A) to eliminate an act, policy, or practice shall 
        be so devised so as to equal to the extent possible the burdens 
        or restrictions imposed by such foreign country on United States 
        transportation companies.
            ``(3) Removal or modification.--The President, or the 
        delegate thereof, may remove or modify in whole or in part any 
        action taken under paragraph (1)(A) if the President or such 
        delegate determines that such removal or modification is 
        consistent with the obligations of the United States under a 
        trade agreement or with United States transportation policy.

[[Page 109 STAT. 883]]

            ``(4) Protection of existing operations.--Unless and until 
        the President, or the delegate thereof, makes a determination 
        under paragraph (1) or (3), nothing in this subsection shall 
        affect--
                    ``(A) operations of motor carriers of property or 
                passengers domiciled in any contiguous foreign country 
                or owned or controlled by persons of any contiguous 
                foreign country permitted in the commercial zones along 
                the United States-Mexico border as such zones were 
                defined on the day before the effective date of this 
                section; or
                    ``(B) any existing restrictions on operations of 
                motor carriers of property or passengers domiciled in 
                any contiguous foreign country or owned or controlled by 
                persons of any contiguous foreign country or any 
                modifications thereof pursuant to section 6 of the Bus 
                Regulatory Reform Act of 1982.
            ``(5) <<NOTE: Federal Register, publication.>>  Publication; 
        comment.--Unless the President, or the delegate thereof, 
        determines that expeditious action is required, the President 
        shall publish in the Federal Register any determination under 
        paragraph (1) or (3), together with a description of the facts 
        on which such a determination is based and any proposed action 
        to be taken pursuant to paragraph (1)(B) or (3), and provide an 
        opportunity for public comment.
            ``(6) Delegation to secretary.--The President may delegate 
        any or all authority under this subsection to the Secretary, who 
        shall consult with other agencies as appropriate. In accordance 
        with the directions of the President, the Secretary may issue 
        regulations to enforce this subsection.
            ``(7) Civil actions.--Either the Secretary or the Attorney 
        General may bring a civil action in an appropriate district 
        court of the United States to enforce this subsection or a 
        regulation prescribed or order issued under this subsection. The 
        court may award appropriate relief, including injunctive relief.
            ``(8) Limitation on statutory construction.--This subsection 
        shall not be construed as affecting the requirement for all 
        foreign motor carriers and foreign motor private carriers 
        operating in the United States to comply with all applicable 
        laws and regulations pertaining to fitness, safety of 
        operations, financial responsibility, and taxes imposed by 
        section 4481 of the Internal Revenue Code of 1986.

    ``(d) Transition Rule.--
            ``(1) In general.--Pending the implementation of the 
        rulemaking required by section 13908, the Secretary may register 
        a person under this section--
                    ``(A) as a motor common carrier if such person would 
                have been issued a certificate to provide transportation 
                as a motor common carrier under this subtitle on the day 
                before the effective date of this section; and
                    ``(B) as a motor contract carrier if such person 
                would have been issued a permit to provide 
                transportation as a motor contract carrier under this 
                subtitle on such day.
            ``(2) Definitions.--In this subsection, the terms `motor 
        common carrier' and `motor contract carrier' have the meaning 
        such terms had under section 10102 as such section was in effect 
        on the day before the effective date of this section.

[[Page 109 STAT. 884]]

    ``(e) Motor Carrier Defined.--In this section and sections 13905 and 
13906, the term `motor carrier' includes foreign motor private carriers.

``Sec. 13903. Registration of freight forwarders

    ``(a) In General.--The Secretary shall register a person to provide 
service subject to jurisdiction under subchapter III of chapter 135 as a 
freight forwarder if the Secretary finds that the person is fit, 
willing, and able to provide the service and to comply with this part 
and applicable regulations of the Secretary and the Board.
    ``(b) Registration as Carrier Required.--The freight forwarder may 
provide transportation as the carrier itself only if the freight 
forwarder also has registered to provide transportation as a carrier 
under this chapter.

``Sec. 13904. Registration of brokers

    ``(a) In General.--The Secretary shall register, subject to section 
13906(b), a person to be a broker for transportation of property subject 
to jurisdiction under subchapter I of chapter 135, if the Secretary 
finds that the person is fit, willing, and able to be a broker for 
transportation and to comply with this part and applicable regulations 
of the Secretary.
    ``(b) Registration as Carrier Required.--
            ``(1) In general.--The broker may provide the transportation 
        itself only if the broker also has been registered to provide 
        the transportation as a motor carrier under this chapter.
            ``(2) Limitation.--This subsection does not apply to a motor 
        carrier registered under this chapter or to an employee or agent 
        of the motor carrier to the extent the transportation is to be 
        provided entirely by the motor carrier, with other registered 
        motor carriers, or with rail or water carriers.

    ``(c) Regulations To Protect Shippers.--Regulations of the Secretary 
applicable to brokers registered under this section shall provide for 
the protection of shippers by motor vehicle.
    ``(d) Bond and Insurance.--The Secretary may impose on brokers for 
motor carriers of passengers such requirements for bonds or insurance or 
both as the Secretary determines are needed to protect passengers and 
carriers dealing with such brokers.

``Sec. 13905. Effective periods of registration

    ``(a) Person Holding ICC Authority.--Any person having authority to 
provide transportation or service as a motor carrier, freight forwarder, 
or broker under this title, as in effect on the day before the effective 
date of this section, shall be deemed, for purposes of this part, to be 
registered to provide such transportation or service under this part.
    ``(b) In General.--Except as otherwise provided in this part, each 
registration issued under section 13902, 13903, or 13904 shall be 
effective from the date specified by the Secretary and shall remain in 
effect for such period as the Secretary determines appropriate by 
regulation.
    ``(c) Suspension, Amendments, and Revocations.--On application of 
the registrant, the Secretary may amend or revoke a registration. On 
complaint or on the Secretary's own initiative and after notice and an 
opportunity for a proceeding, the Secretary

[[Page 109 STAT. 885]]

may suspend, amend, or revoke any part of the registration of a motor 
carrier, broker, or freight forwarder for willful failure to comply with 
this part, an applicable regulation or order of the Secretary or of the 
Board, or a condition of its registration.

    ``(d) Procedure.--Except on application of the registrant, the 
Secretary may revoke a registration of a motor carrier, freight 
forwarder, or broker, only after--
            ``(1) the Secretary has issued an order to the registrant 
        under section 14701 requiring compliance with this part, a 
        regulation of the Secretary, or a condition of the registration; 
        and
            ``(2) the registrant willfully does not comply with the 
        order for a period of 30 days.

    ``(e) Expedited Procedure.--
            ``(1) Protection of safety.--Without regard to subchapter II 
        of chapter 5 of title 5, the Secretary may suspend the 
        registration of a motor carrier, a freight forwarder, or a 
        broker for failure to comply with safety requirements of the 
        Secretary or the safety fitness requirements pursuant to section 
        13904(c), 13906, or 31144, of this title, or an order or 
        regulation of the Secretary prescribed under those sections.
            ``(2) Imminent hazard to public health.--Without regard to 
        subchapter II of chapter 5 of title 5, the Secretary may suspend 
        a registration of a motor carrier of passengers if the Secretary 
        finds that such carrier has been conducting unsafe operations 
        which are an imminent hazard to public health or property.
            ``(3) Notice; period of suspension.--The Secretary may 
        suspend under this subsection the registration only after giving 
        notice of the suspension to the registrant. The suspension 
        remains in effect until the registrant complies with those 
        applicable sections or, in the case of a suspension under 
        paragraph (2), until the Secretary revokes such suspension.

``Sec. 13906. Security of motor carriers, brokers, and freight 
                        forwarders

    ``(a) Motor Carrier Requirements.--
            ``(1) Liability insurance requirement.--The Secretary may 
        register a motor carrier under section 13902 only if the 
        registrant files with the Secretary a bond, insurance policy, or 
        other type of security approved by the Secretary, in an amount 
        not less than such amount as the Secretary prescribes pursuant 
        to, or as is required by, sections 31138 and 31139, and the laws 
        of the State or States in which the registrant is operating, to 
        the extent applicable. The security must be sufficient to pay, 
        not more than the amount of the security, for each final 
        judgment against the registrant for bodily injury to, or death 
        of, an individual resulting from the negligent operation, 
        maintenance, or use of motor vehicles, or for loss or damage to 
        property (except property referred to in paragraph (3) of this 
        subsection), or both. A registration remains in effect only as 
        long as the registrant continues to satisfy the security 
        requirements of this paragraph.
            ``(2) Agency requirement.--A motor carrier shall comply with 
        the requirements of sections 13303 and 13304. To protect the 
        public, the Secretary may require any such motor carrier to file 
        the type of security that a motor carrier is required

[[Page 109 STAT. 886]]

        to file under paragraph (1) of this subsection. This paragraph 
        only applies to a foreign motor private carrier and foreign 
        motor carrier operating in the United States to the extent that 
        such carrier is providing transportation between places in a 
        foreign country or between a place in one foreign country and a 
        place in another foreign country.
            ``(3) Transportation insurance.--The Secretary may require a 
        registered motor carrier to file with the Secretary a type of 
        security sufficient to pay a shipper or consignee for damage to 
        property of the shipper or consignee placed in the possession of 
        the motor carrier as the result of transportation provided under 
        this part. A carrier required by law to pay a shipper or 
        consignee for loss, damage, or default for which a connecting 
        motor carrier is responsible is subrogated, to the extent of the 
        amount paid, to the rights of the shipper or consignee under any 
        such security.

    ``(b) Broker Requirements.--The Secretary may register a person as a 
broker under section 13904 only if the person files with the Secretary a 
bond, insurance policy, or other type of security approved by the 
Secretary to ensure that the transportation for which a broker arranges 
is provided. The registration remains in effect only as long as the 
broker continues to satisfy the security requirements of this 
subsection.
    ``(c) Freight Forwarder Requirements.--
            ``(1) Liability insurance.--The Secretary may register a 
        person as a freight forwarder under section 13903 of this title 
        only if the person files with the Secretary a bond, insurance 
        policy, or other type of security approved by the Secretary. The 
        security must be sufficient to pay, not more than the amount of 
        the security, for each final judgment against the freight 
        forwarder for bodily injury to, or death of, an individual, or 
        loss of, or damage to, property (other than property referred to 
        in paragraph (2) of this subsection), resulting from the 
        negligent operation, maintenance, or use of motor vehicles by or 
        under the direction and control of the freight forwarder when 
        providing transfer, collection, or delivery service under this 
        part.
            ``(2) Freight forwarder insurance.--The Secretary may 
        require a registered freight forwarder to file with the 
        Secretary a bond, insurance policy, or other type of security 
        approved by the Secretary sufficient to pay, not more than the 
        amount of the security, for loss of, or damage to, property for 
        which the freight forwarder provides service.
            ``(3) Effective period.--The freight forwarder's 
        registration remains in effect only as long as the freight 
        forwarder continues to satisfy the security requirements of this 
        subsection.

    ``(d) Type of Insurance.--The Secretary may determine the type and 
amount of security filed under this section. A motor carrier may submit 
proof of qualifications as a self-insurer to satisfy the security 
requirements of this section. The Secretary shall adopt regulations 
governing the standards for approval as a self-insurer. Motor carriers 
which have been granted authority to self-insure as of the effective 
date of this section shall retain that authority unless, for good cause 
shown and after notice
and an opportunity for a hearing, the Secretary finds that the authority 
must be revoked.

[[Page 109 STAT. 887]]

    ``(e) Notice of Cancellation of Insurance. <<NOTE: Regulations.>> --
The Secretary shall issue regulations requiring the submission to the 
Secretary of notices of insurance cancellation sufficiently in advance 
of actual cancellation so as to enable the Secretary to promptly revoke 
the registration of any carrier or broker after the effective date of 
the cancellation.

    ``(f) Form of Endorsement.--The Secretary shall also prescribe the 
appropriate form of endorsement to be appended to policies of insurance 
and surety bonds which will subject the insurance policy or surety bond 
to the full security limits of the coverage required under this section.

``Sec. 13907. Household goods agents

    ``(a) Carriers Responsible for Agents.--Each motor carrier providing 
transportation of household goods shall be responsible for all acts or 
omissions of any of its agents which relate to the performance of 
household goods transportation services (including accessorial or 
terminal services) and which are within the actual or apparent authority 
of the agent from the carrier or which are ratified by the carrier.
    ``(b) Standard for Selecting Agents.--Each motor carrier providing 
transportation of household goods shall use due diligence and reasonable 
care in selecting and maintaining agents who are sufficiently 
knowledgeable, fit, willing, and able to provide adequate household 
goods transportation services (including accessorial and terminal 
services) and to fulfill the obligations imposed upon them by this part 
and by such carrier.
    ``(c) Enforcement.--
            ``(1) Complaint.--Whenever the Secretary has reason to 
        believe from a complaint or investigation that an agent 
        providing household goods transportation services (including 
        accessorial and terminal services) under the authority of a 
        motor carrier providing transportation of household goods has 
        violated section 14901(e) or 14912 or is consistently not fit, 
        willing, and able to provide adequate household goods 
        transportation services (including accessorial and terminal 
        services), the Secretary may issue to such agent a complaint 
        stating the charges and containing notice of the time and place 
        of a hearing which shall be held no later than 60 days after 
        service of the complaint to such agent.
            ``(2) Right to defend.--The agent shall have the right to 
        appear at such hearing and rebut the charges contained in the 
        complaint.
            ``(3) Order.--If the agent does not appear at the hearing or 
        if the Secretary finds that the agent has violated section 
        14901(e) or 14912 or is consistently not fit, willing, and able 
        to provide adequate household goods transportation services 
        (including accessorial and terminal services), the Secretary may 
        issue an order to compel compliance with the requirement that 
        the agent be fit, willing, and able. Thereafter, the Secretary 
        may issue an order to limit, condition, or prohibit such agent 
        from any involvement in the transportation or provision of 
        services incidental to the transportation of household goods if, 
        after notice and an opportunity for a hearing, the Secretary 
        finds that such agent, within a reasonable time after the date 
        of issuance of a compliance order under this section, but in

[[Page 109 STAT. 888]]

        no event less than 30 days after such date of issuance, has 
        willfully failed to comply with such order.
            ``(4) Hearing.--Upon filing of a petition with the Secretary 
        by an agent who is the subject of an order issued pursuant to 
        the second sentence of paragraph (3) of this subsection and 
        after notice, a hearing shall be held with an opportunity to be 
        heard. At such hearing, a determination shall be made whether 
        the order issued pursuant to paragraph (3) of this subsection 
        should be rescinded.
            ``(5) Court review.--Any agent adversely affected or 
        aggrieved by an order of the Secretary issued under this 
        subsection may seek relief in the appropriate United States 
        court of appeals as provided by and in the manner prescribed in 
        chapter 158 of title 28, United States Code.

    ``(d) Limitation on Applicability of Antitrust Laws.--
            ``(1) In general.--The antitrust laws, as defined in the 
        first section of the Clayton Act (15 U.S.C. 12), do not apply to 
        discussions or agreements between a motor carrier providing 
        transportation of household goods and its agents (whether or not 
        an agent is also a carrier) related solely to--
                    ``(A) rates for the transportation of household 
                goods under the authority of the principal carrier;
                    ``(B) accessorial, terminal, storage, or other 
                charges for services incidental to the transportation of 
                household goods transported under the authority of the 
                principal carrier;
                    ``(C) allowances relating to transportation of 
                household goods under the authority of the principal 
                carrier; and
                    ``(D) ownership of a motor carrier providing 
                transportation of household goods by an agent or 
                membership on the board of directors of any such motor 
                carrier by an agent.
            ``(2) Board review.--The Board, upon its own initiative or 
        request, shall review any activities undertaken under paragraph 
        (1) and shall modify or terminate the activity if necessary to 
        protect the public interest.

    ``(e) Definitions.--In this section, the following definitions 
apply:
            ``(1) Household goods.--The term `household goods' has the 
        meaning such term had under section 10102(11) of this title, as 
        in effect on the day before the effective date of this section.
            ``(2) Transportation.--The term `transportation' means 
        transportation that would be subject to the jurisdiction of the 
        Interstate Commerce Commission under subchapter II of chapter 
        105 of this title, as in effect on the day before such effective 
        date, if such subchapter were still in effect.

``Sec. 13908. Registration and other reforms

    ``(a) Regulations Replacing Certain Programs.--The Secretary, in 
cooperation with the States, and after notice and opportunity for public 
comment, shall issue regulations to replace the current Department of 
Transportation identification number system, the single State 
registration system under section 14504, the registration system 
contained in this chapter, and the financial responsibility information 
system under section 13906 with a single, on-line, Federal system. The 
new system shall serve as a clearing

[[Page 109 STAT. 889]]

house and depository of information on and identification of all foreign 
and domestic motor carriers, brokers, and freight forwarders, and others 
required to register with the Department as well as information on 
safety fitness and compliance with required levels of financial 
responsibility. In issuing the regulations, the Secretary shall consider 
whether or not to integrate the requirements of section 13304 into the 
new system and may integrate such requirements into the new system.
    ``(b) Factors To Be Considered.--In conducting the rulemaking under 
subsection (a), the Secretary shall, at a minimum, consider the 
following factors:
            ``(1) Funding for State enforcement of motor carrier safety 
        regulations.
            ``(2) Whether the existing single State registration system 
        is duplicative and burdensome.
            ``(3) The justification and need for collecting the 
        statutory fee for such system under section 14504(c)(2)(B)(iv).
            ``(4) The public safety.
            ``(5) The efficient delivery of transportation services.
            ``(6) How, and under what conditions, to extend the 
        registration system to motor private carriers and to carriers 
        exempt under sections 13502, 13503, and 13506.

    ``(c) Fee System.--The Secretary may establish, under section 9701 
of title 31, a fee system for registration and filing evidence of 
financial responsibility under the new system under subsection (a). Fees 
collected under the fee system shall cover the costs of operating and 
upgrading the registration system, including all personnel costs 
associated with the system. Fees collected under this subsection may be 
credited to the Department of Transportation appropriations account for 
purposes for which such fees are collected, and shall be available for 
expenditure until expended.

    ``(d) State Registration Programs.--If the Secretary determines that 
no State should require insurance filings or collect fees for such 
filings (including filings and fees authorized under section 14504), the 
Secretary may prevent any State or political subdivision thereof, or any 
political authority of 2 or more States, from imposing any insurance 
filing requirements or fees that are for the same purposes as filings or 
fees the Secretary requires under the new system under subsection (a). 
The Secretary may not take any action pursuant to this subsection 
unless--
            ``(1) fees that will be collected by the Secretary under 
        subsection (c) and distributed in each fiscal year to the States 
        will provide each State with at least as much revenue as that 
        State received in fiscal year 1995 under section 11506, as in 
        effect on the day before the effective date of this section; and
            ``(2) all States will receive from the distribution of such 
        fees a minimum apportionment.

    ``(e) Deadline for Conclusion; Modifications.--Not later than 24 
months after the effective date of this section, the Secretary--
            ``(1) shall conclude the rulemaking under this section;
            ``(2) may implement such changes under this section as the 
        Secretary considers appropriate and in the public interest; and
            ``(3) <<NOTE: Reports.>>  shall transmit to Congress a 
        report on any findings of the rulemaking and the changes being 
        implemented under

[[Page 109 STAT. 890]]

        this section, together with such recommendations for legislative 
        language necessary to conform this part to such changes.

                  ``CHAPTER 141--OPERATIONS OF CARRIERS

                  ``SUBCHAPTER I--GENERAL REQUIREMENTS

``Sec.
``14101. Providing transportation and service.
``14102. Leased motor vehicles.
``14103. Loading and unloading motor vehicles.
``14104. Household goods carrier operations.

                  ``SUBCHAPTER II--REPORTS AND RECORDS

``14121. Definitions.
``14122. Records: form; inspection; preservation.
``14123. Financial reporting.

                  ``SUBCHAPTER I--GENERAL REQUIREMENTS

``Sec. 14101. Providing transportation and service

    ``(a) On Reasonable Request.--A carrier providing transportation or 
service subject to jurisdiction under chapter 135 shall provide the 
transportation or service on reasonable request. In addition, a motor 
carrier shall provide safe and adequate service, equipment, and 
facilities.
    ``(b) Contracts With Shippers.--
            ``(1) In general.--A carrier providing transportation or 
        service subject to jurisdiction under chapter 135 may enter into 
        a contract with a shipper, other than for the movement of 
        household goods described in section 13102(10)(A), to provide 
        specified services under specified rates and conditions. If the 
        shipper and carrier, in writing, expressly waive any or all 
        rights and remedies under this part for the transportation 
        covered by the contract, the transportation provided under the 
        contract shall not be subject to the waived rights and remedies 
        and may not be subsequently challenged on the ground that it 
        violates the waived rights and remedies. The parties may not 
        waive the provisions governing registration, insurance, or 
        safety fitness.
            ``(2) Remedy for breach of contract.--The exclusive remedy 
        for any alleged breach of a contract entered into under this 
        subsection shall be an action in an appropriate State court or 
        United States district court, unless the parties otherwise 
        agree.

``Sec. 14102. Leased motor vehicles

    ``(a) General Authority of Secretary.--The Secretary may require a 
motor carrier providing transportation subject to jurisdiction under 
subchapter I of chapter 135 that uses motor vehicles not owned by it to 
transport property under an arrangement with another party to--
            ``(1) make the arrangement in writing signed by the parties 
        specifying its duration and the compensation to be paid by the 
        motor carrier;
            ``(2) carry a copy of the arrangement in each motor vehicle 
        to which it applies during the period the arrangement is in 
        effect;
            ``(3) inspect the motor vehicles and obtain liability and 
        cargo insurance on them; and

[[Page 109 STAT. 891]]

            ``(4) have control of and be responsible for operating those 
        motor vehicles in compliance with requirements prescribed by the 
        Secretary on safety of operations and equipment, and with other 
        applicable law as if the motor vehicles were owned by the motor 
        carrier.

    ``(b) Responsible Party for Loading and 
Unloading. <<NOTE: Regulations.>> --The Secretary shall require, by 
regulation, that any arrangement, between a motor carrier of property 
providing transportation subject to jurisdiction under subchapter I of 
chapter 135 and any other person, under which such other person is to 
provide any portion of such transportation by a motor vehicle not owned 
by the carrier shall specify, in writing, who is responsible for loading 
and unloading the property onto and from the motor vehicle.

``Sec. 14103. Loading and unloading motor vehicles

    ``(a) Shipper Responsible for Assisting.--Whenever a shipper or 
receiver of property requires that any person who owns or operates a 
motor vehicle transporting property in interstate commerce (whether or 
not such transportation is subject to jurisdiction under subchapter I of 
chapter 135) be assisted in the loading or unloading of such vehicle, 
the shipper or receiver shall be responsible for providing such 
assistance or shall compensate the owner or operator for all costs 
associated with securing and compensating the person or persons 
providing such assistance.
    ``(b) Coercion Prohibited.--It shall be unlawful to coerce or 
attempt to coerce any person providing transportation of property by 
motor vehicle for compensation in interstate commerce (whether or not 
such transportation is subject to jurisdiction under subchapter I of 
chapter 135) to load or unload any part of such property onto or from 
such vehicle or to employ or pay one or more persons to load or unload 
any part of such property onto or from such vehicle; except that this 
subsection shall not be construed as making unlawful any activity which 
is not unlawful under the National Labor Relations Act or the Act of 
March 23, 1932 (47 Stat. 70; 29 U.S.C. 101 et seq.), commonly known as 
the Norris-LaGuardia Act.

``Sec. 14104. Household goods carrier operations

    ``(a) General Regulatory Authority.--
            ``(1) Paperwork minimization.--The Secretary may issue 
        regulations, including regulations protecting individual 
        shippers, in order to carry out this part with respect to the 
        transportation of household goods by motor carriers subject to 
        jurisdiction under subchapter I of chapter 135. The regulations 
        and paperwork required of motor carriers providing 
        transportation of household goods shall be minimized to the 
        maximum extent feasible consistent with the protection of 
        individual shippers.
            ``(2) Performance standards.--
                    ``(A) In general.--Regulations of the Secretary 
                protecting individual shippers shall include, where 
                appropriate, reasonable performance standards for the 
                transportation of household goods subject to 
                jurisdiction under subchapter I of chapter 135.
                    ``(B) Factors to consider.--In establishing 
                performance standards under this paragraph, the 
                Secretary shall take into account at least the 
                following--

[[Page 109 STAT. 892]]

                          ``(i) the level of performance that can be 
                      achieved by a well-managed motor carrier 
                      transporting household goods;
                          ``(ii) the degree of harm to individual 
                      shippers which could result from a violation of 
                      the regulation;
                          ``(iii) the need to set the level of 
                      performance at a level sufficient to deter abuses 
                      which result in harm to consumers and violations 
                      of regulations;
                          ``(iv) service requirements of the carriers;
                          ``(v) the cost of compliance in relation to 
                      the consumer benefits to be achieved from such 
                      compliance; and
                          ``(vi) the need to set the level of 
                      performance at a level designed to encourage 
                      carriers to offer service responsive to shipper 
                      needs.
            ``(3) Limitations on statutory construction.--Nothing in 
        this section shall be construed to limit the Secretary's 
        authority to require reports from motor carriers providing 
        transportation of household goods or to require such carriers to 
        provide specified information to consumers concerning their past 
        performance.

    ``(b) Estimates.--
            ``(1) Authority to provide without compensation.--Every 
        motor carrier providing transportation of household goods 
        subject to jurisdiction under subchapter I of chapter 135, upon 
        request of a prospective shipper, may provide the shipper with 
        an estimate of charges for transportation of household goods and 
        for the proposed services. The Secretary shall not prohibit any 
        such carrier from charging a prospective shipper for providing a 
        written, binding estimate for the transportation and proposed 
        services.
            ``(2) Applicability of antitrust laws.--Any charge for an 
        estimate of charges provided by a motor carrier to a shipper for 
        transportation of household goods subject to jurisdiction under 
        subchapter I of chapter 135 shall be subject to the antitrust 
        laws, as defined in the first section of the Clayton Act (15 
        U.S.C. 12).

    ``(c) Flexibility in Weighing Shipments. <<NOTE: Regulations.>> --
The Secretary shall issue regulations that provide motor carriers 
providing transportation of household goods subject to jurisdiction 
under subchapter I of chapter 135 with the maximum possible flexibility 
in weighing shipments, consistent with assurance to the shipper of 
accurate weighing practices. The Secretary shall not prohibit such 
carriers from backweighing shipments or from basing their charges on the 
reweigh weights if the shipper observes both the tare and gross 
weighings (or, prior to such weighings, waives in writing the 
opportunity to observe such weighings) and such weighings are performed 
on the same scale.

                  ``SUBCHAPTER II--REPORTS AND RECORDS

``Sec. 14121. Definitions

    ``In this subchapter, the following definitions apply:
            ``(1) Carrier and broker.--The terms `carrier' and `broker' 
        include a receiver or trustee of a carrier and broker, 
        respectively.

[[Page 109 STAT. 893]]

            ``(2) Association.--The term `association' means an 
        organization maintained by or in the interest of a group of 
        carriers or brokers providing transportation or service subject 
        to jurisdiction under chapter 135 that performs a service, or 
        engages in activities, related to transportation under this 
        part.

``Sec. 14122. Records: form; inspection; preservation

    ``(a) Form of Records.--The Secretary or the Board, as applicable, 
may prescribe the form of records required to be prepared or compiled 
under this subchapter by carriers and brokers, including records related 
to movement of traffic and receipts and expenditures of money.
    ``(b) Right of Inspection.--The Secretary or Board, or an employee 
designated by the Secretary or Board, may on demand and display of 
proper credentials--
            ``(1) inspect and examine the lands, buildings, and 
        equipment of a carrier or broker; and
            ``(2) inspect and copy any record of--
                    ``(A) a carrier, broker, or association; and
                    ``(B) a person controlling, controlled by, or under 
                common control with a carrier if the Secretary or Board, 
                as applicable, considers inspection relevant to that 
                person's relation to, or transaction with, that carrier.

    ``(c) Period for Preservation of Records.--The Secretary or Board, 
as applicable, may prescribe the time period during which operating, 
accounting, and financial records must be preserved by carriers and 
brokers.

``Sec. 14123. Financial reporting

    ``(a) Reports.--
            ``(1) Annual reports.--The Secretary shall require Class I 
        and Class II motor carriers to file with the Secretary annual 
        financial and safety reports, the form and substance of which 
        shall be prescribed by the Secretary; except that, at a minimum, 
        such reports shall include balance sheets and income statements.
            ``(2) Other reports.--The Secretary may require motor 
        carriers, freight forwarders, brokers, lessors, and 
        associations, or classes of them as the Secretary may prescribe, 
        to file quarterly, periodic, or special reports with the 
        Secretary and to respond to surveys concerning their operations.

    ``(b) Matters To Be Covered.--In determining the matters to be 
covered by any reports to be filed under subsection (a), the Secretary 
shall consider--
            ``(1) safety needs;
            ``(2) the need to preserve confidential business information 
        and trade secrets and prevent competitive harm;
            ``(3) private sector, academic, and public use of 
        information in the reports; and
            ``(4) the public interest.

    ``(c) Exemptions.--
            ``(1) From filing.--The Secretary may exempt upon good cause 
        shown any party from the financial reporting requirements of 
        subsection (a). Any request for such exemption must demonstrate, 
        at a minimum, that an exemption is required to avoid competitive 
        harm and preserve confidential business information that is not 
        otherwise publicly available.

[[Page 109 STAT. 894]]

            ``(2) From public release.--
                    ``(A) In general.--The Secretary shall allow, upon 
                request, a filer of a report under subsection (a) that 
                is not a publicly held corporation or that is not 
                subject to financial reporting requirements of the 
                Securities and Exchange Commission, an exemption from 
                the public release of such report.
                    ``(B) Procedure.--After a request under subparagraph 
                (A) and notice and opportunity for comment but no event 
                later than 90 days after the date of such request, the 
                Secretary shall approve such request if the Secretary 
                finds that the exemption requested is necessary to avoid 
                competitive harm and to avoid the disclosure of 
                information that qualifies as a trade secret or 
                privileged or confidential information under section 
                552(b)(4) of title 5.
                    ``(C) Use of data for internal dot purposes.--If an 
                exemption is granted under this paragraph, nothing shall 
                prevent the Secretary from using data from reports filed 
                under this subsection for internal purposes of the 
                Department of Transportation or including such data in 
                aggregate industry statistics released for publication 
                if such inclusion would not render the filer's data 
                readily identifiable.
                    ``(D) Pending requests.--The Secretary shall not 
                release publicly the report of a carrier making a 
                request under subparagraph (A) while such request is 
                pending.
            ``(3) Period of exemptions.--Exemptions granted under this 
        subsection shall be for 3-year periods.

    ``(d) Streamlining and Simplification.--The Secretary shall 
streamline and simplify, to the maximum extent practicable, any 
reporting requirements the Secretary imposes under this section.

                         ``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.

``Sec. 14301. Security interests in certain motor vehicles

    ``(a) Definitions.--In this section, the following definitions 
apply:
            ``(1) Motor vehicle.--The term `motor vehicle' means a truck 
        of rated capacity (gross vehicle weight) of at least 10,000 
        pounds, a highway tractor of rated capacity (gross combination 
        weight) of at least 10,000 pounds, a property-carrying trailer 
        or semitrailer with at least one load-carrying axle of at least 
        10,000 pounds, or a motor bus with a seating capacity of at 
        least 10 individuals.
            ``(2) Lien creditor.--The term `lien creditor' means a 
        creditor having a lien on a motor vehicle and includes an 
        assignee for benefit of creditors from the date of assignment, a 
        trustee in a case under title 11 from the date of filing of the 
        petition in that case, and a receiver in equity from the date of 
        appointment of the receiver.
            ``(3) Security interest.--The term `security interest' means 
        an interest (including an interest established by a condi

[[Page 109 STAT. 895]]

        tional sales contract, mortgage, equipment trust, or other lien 
        or title retention contract, or lease) in a motor vehicle when 
        the interest secures payment or performance of an obligation.
            ``(4) Perfection.--The term `perfection', as related to a 
        security interest, means taking action (including public filing, 
        recording, notation on a certificate of title, and possession of 
        collateral by the secured party), or the existence of facts, 
        required under law to make a security interest enforceable 
        against general creditors and subsequent lien creditors of a 
        debtor, but does not include compliance with requirements 
        related only to the establishment of a valid security interest 
        between the debtor and the secured party.

    ``(b) Requirements for Perfection of Security Interest.--A security 
interest in a motor vehicle owned by, or in the possession and use of, a 
carrier registered under section 13902 of this title and owing payment 
or performance of an obligation secured by that security interest is 
perfected in all jurisdictions against all general, and subsequent lien, 
creditors of, and all persons taking a motor vehicle by sale (or taking 
or retaining a security interest in a motor vehicle) from, that carrier 
when--
            ``(1) a certificate of title is issued for a motor vehicle 
        under a law of a jurisdiction that requires or permits 
        indication, on a certificate or title, of a security interest in 
        the motor vehicle if the security interest is indicated on the 
        certificate;
            ``(2) a certificate of title has not been issued and the law 
        of the State where the principal place of business of that 
        carrier is located requires or permits public filing or 
        recording of, or in relation to, that security interest if there 
        has been such a public filing or recording; and
            ``(3) a certificate of title has not been issued and the 
        security interest cannot be perfected under paragraph (2) of 
        this subsection, if the security interest has been perfected 
        under the law (including the conflict of laws rules) of the 
        State where the principal place of business of that carrier is 
        located.

``Sec. 14302. Pooling and division of transportation or earnings

    ``(a) Approval Required.--A carrier providing transportation subject 
to jurisdiction under subchapter I of chapter 135 may not agree or 
combine with another such carrier to pool or divide traffic or services 
or any part of their earnings without the approval of the Board under 
this section.
    ``(b) Standards for Approval.--The Board may approve and authorize 
an agreement or combination between or among motor carriers of 
passengers, or between a motor carrier of passengers and a rail carrier 
of passengers if the carriers involved assent to the pooling or division 
and the Board finds that a pooling or division of traffic, services, or 
earnings--
            ``(1) will be in the interest of better service to the 
        public or of economy of operation; and
            ``(2) will not unreasonably restrain competition.

    ``(c) Procedure.--
            ``(1) Application.--Any motor carrier of property may apply 
        to the Board for approval of an agreement or combination with 
        another such carrier to pool or divide traffic or any services 
        or any part of their earnings by filing such agreement or 
        combination with the Board not less than 50 days before its 
        effective date.

[[Page 109 STAT. 896]]

            ``(2) Determination of importance and restraint on 
        competition.--Prior to the effective date of the agreement or 
        combination, the Board shall determine whether the agreement or 
        combination is of major transportation importance and whether 
        there is substantial likelihood that the agreement or 
        combination will unduly restrain competition. If the Board 
        determines that neither of these 2 factors exists, it shall, 
        prior to such effective date and without a hearing, approve and 
        authorize the agreement or combination, under such rules and 
        regulations as the Board may issue, and for such consideration 
        between such carriers and upon such terms and conditions as 
        shall be found by the Board to be just and reasonable.
            ``(3) Hearing.--If the Board determines either that the 
        agreement or combination is of major transportation importance 
        or that there is substantial likelihood that the agreement or 
        combination will unduly restrain competition, the Board shall 
        hold a hearing concerning whether the agreement or combination 
        will be in the interest of better service to
the public or of economy in operation and whether it will unduly 
restrain competition and shall suspend operation of such agreement or 
combination pending such hearing and final decision thereon. After such 
hearing, the Board shall indicate to what extent it finds that the 
agreement or combination will be in the interest of better service to 
the public or of economy in operation and will not unduly restrain 
competition and if assented to by all the carriers involved, shall to 
that extent, approve and authorize the agreement or combination, under 
such rules and regulations as the Board may issue, and for such 
consideration between such carriers and upon such terms and conditions 
as shall be found by the Board to be just and reasonable.
            ``(4) Special rules for household goods carriers.--In the 
        case of an application for Board approval of an agreement or 
        combination between a motor carrier providing transportation of 
        household goods and its agents to pool or divide traffic or 
        services or any part of their earnings, such agreement or 
        combination shall be presumed to be in the interest of better 
        service to the public and of economy in operation and not to 
        restrain competition unduly if the practices proposed to be 
        carried out under such agreement or combination are the same as 
        or similar to practices carried out under agreements and 
        combinations between motor carriers providing transportation of 
        household goods to pool or divide traffic or service of any part 
        of their earnings approved by the Interstate Commerce Commission 
        before the effective date of this section.
            ``(5) Streamlining and simplifying.--The Board shall 
        streamline, simplify, and expedite, to the maximum extent 
        practicable, the process (including any paperwork) for 
        submission and approval of applications under this section for 
        agreements and combinations between motor carriers providing 
        transportation of household goods and their agents.

    ``(d) Conditions.--The Board may impose conditions governing the 
pooling or division and may approve and authorize payment of a 
reasonable consideration between the carriers.
    ``(e) Initiation of Proceeding.--The Board may begin a proceeding 
under this section on its own initiative or on application.
    ``(f) Effect of Approval.--A carrier may participate in an 
arrangement approved by or exempted by the Board under this

[[Page 109 STAT. 897]]

section without the approval of any other Federal, State, or municipal 
body. A carrier participating in an approved or exempted arrangement is 
exempt from the antitrust laws and from all other law, including State 
and municipal law, as necessary to let that person carry out the 
arrangement.
    ``(g) Continuation of Existing Agreements.--Any agreements in 
operation under the provisions of this title on the effective date of 
this section that are succeeded by this section shall remain in effect 
until further order of the Board.
    ``(h) Definitions.--In this section, the following definitions 
apply:
            ``(1) Household goods.--The term `household goods' has the 
        meaning such term had under section 10102(11) of this title, as 
        in effect on the day before the effective date of this section.
            ``(2) Transportation.--The term `transportation' means 
        transportation that would be subject to the jurisdiction of the 
        Interstate Commerce Commission under subchapter II of chapter 
        105 of this title, as in effect on the day before such effective 
        date, if such subchapter were still in effect.

``Sec. 14303. Consolidation, merger, and acquisition of control of motor 
                        carriers of passengers

    ``(a) Approval Required.--The following transactions involving motor 
carriers of passengers subject to jurisdiction under subchapter I of 
chapter 135 may be carried out only with the approval of the Board:
            ``(1) Consolidation or merger of the properties or 
        franchises of at least 2 carriers into one operation for the 
        ownership, management, and operation of the previously 
        separately owned properties.
            ``(2) A purchase, lease, or contract to operate property of 
        another carrier by any number of carriers.
            ``(3) Acquisition of control of a carrier by any number of 
        carriers.
            ``(4) Acquisition of control of at least 2 carriers by a 
        person that is not a carrier.
            ``(5) Acquisition of control of a carrier by a person that 
        is not a carrier but that controls any number of carriers.

    ``(b) Standard for Approval.--The Board shall approve and authorize 
a transaction under this section when it finds the transaction is 
consistent with the public interest. The Board shall consider at least 
the following:
            ``(1) The effect of the proposed transaction on the adequacy 
        of transportation to the public.
            ``(2) The total fixed charges that result from the proposed 
        transaction.
            ``(3) The interest of carrier employees affected by the 
        proposed transaction.

The Board may impose conditions governing the transaction.
    ``(c) <<NOTE: Federal Register, publication.>>  Determination of 
Completeness of Application.--Within 30 days after the date on which an 
application is filed under this section, the Board shall either publish 
a notice of the application in the Federal Register or reject the 
application if it is incomplete.

[[Page 109 STAT. 898]]

    ``(d) Comments.--Written comments about an application may be filed 
with the Board within 45 days after the date on which notice of the 
application is published under subsection (c).
    ``(e) Deadlines.--The Board shall conclude evidentiary proceedings 
by the 240th day after the date on which notice of the application is 
published under subsection (c). The Board shall issue a final decision 
by the 180th day after the conclusion of the evidentiary proceedings. 
The Board may extend a time period under this subsection; except that 
the total of all such extensions with respect to any application shall 
not exceed 90 days.
    ``(f) Effect of Approval.--A carrier or corporation participating in 
or resulting from a transaction approved by the Board under this 
section, or exempted by the Board from the application of this section 
pursuant to section 13541, may carry out the transaction, own and 
operate property, and exercise control or franchises acquired through 
the transaction without the approval of a State authority. A carrier, 
corporation, or person participating in the approved or exempted 
transaction is exempt from the antitrust laws and from all other law, 
including State and municipal law, as necessary to let that person carry 
out the transaction, hold, maintain, and operate property, and exercise 
control or franchises acquired through the transaction.
    ``(g) Limitation on Applicability.--This section shall not apply to 
transactions involving carriers whose aggregate gross operating revenues 
were not more than $2,000,000 during a period of 12 consecutive months 
ending not more than 6 months before the date of the agreement of the 
parties.
    ``(h) Applicability of Certain Provisions.--When the Board approves 
and authorizes a transaction under this section in which a person not a 
carrier providing transportation subject to jurisdiction under 
subchapter I of chapter 135 acquires control of at least 1 carrier 
subject to such jurisdiction, the person is subject, as a carrier, to 
the following provisions of this title that apply to the carrier being 
acquired by that person, to the extent specified by the Board: sections 
504(f), 14121-14123, 14901(a), and 14907.
    ``(i) Interim Approval.--Pending determination of an application 
filed under this section, the Board may approve, for a period of not 
more than 180 days, the operation of the properties sought to be 
acquired by the person proposing in the application to acquire those 
properties, when it appears that failure to do so may result in 
destruction of or injury to those properties or substantially interfere 
with their future usefulness in providing adequate and continuous 
service to the public. Transportation provided by a motor carrier under 
a grant of approval under this subsection is subject to this part.
    ``(j) Supplemental Orders.--When cause exists, the Board may issue 
appropriate orders supplemental to an order made in a proceeding under 
this section.

                 ``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.

[[Page 109 STAT. 899]]

``Sec. 14501. Federal authority over intrastate transportation

    ``(a) Motor Carriers of Passengers.--No State or political 
subdivision thereof and no interstate agency or other political agency 
of 2 or more States shall enact or enforce any law, rule, regulation, 
standard, or other provision having the force and effect of law relating 
to scheduling of interstate or intrastate transportation (including 
discontinuance or reduction in the level of service) provided by motor 
carrier of passengers subject to jurisdiction under subchapter I of 
chapter 135 of this title on an interstate route or relating to the 
implementation of any change in the rates for such transportation or for 
any charter transportation except to the extent that notice, not in 
excess of 30 days, of changes in schedules may be required. This 
subsection shall not apply to intrastate commuter bus operations.
    ``(b) Freight Forwarders and Brokers.--
            ``(1) General rule.--Subject to paragraph (2) of this 
        subsection, no State or political subdivision thereof and no 
        intrastate agency or other political agency of 2 or more States 
        shall enact or enforce any law, rule, regulation, standard, or 
        other provision having the force and effect of law relating to 
        intrastate rates, intrastate routes, or intrastate services of 
        any freight forwarder or broker.
            ``(2) Continuation of hawaii's authority.--Nothing in this 
        subsection and the amendments made by the Surface Freight 
        Forwarder Deregulation Act of 1986 shall be construed to affect
the authority of the State of Hawaii to continue to regulate a motor 
carrier operating within the State of Hawaii.

    ``(c) Motor Carriers of Property.--
            ``(1) General rule.--Except as provided in paragraphs (2) 
        and (3), a State, political subdivision of a State, or political 
        authority of 2 or more States may not enact or enforce a law, 
        regulation, or other provision having the force and effect of 
        law related to a price, route, or service of any motor carrier 
        (other than a carrier affiliated with a direct air carrier 
        covered by section 41713(b)(4)) or any motor private carrier, 
        broker, or freight forwarder with respect to the transportation 
        of property.
            ``(2) Matters not covered.--Paragraph (1)--
                    ``(A) shall not restrict the safety regulatory 
                authority of a State with respect to motor vehicles, the 
                authority of a State to impose highway route controls or 
                limitations based on the size or weight of the motor 
                vehicle or the hazardous nature of the cargo, or the 
                authority of a State to regulate motor carriers with 
                regard to minimum amounts of financial responsibility 
                relating to insurance requirements and self-insurance 
                authorization;
                    ``(B) does not apply to the transportation of 
                household goods; and
                    ``(C) does not apply to the authority of a State or 
                a political subdivision of a State to enact or enforce a 
                law, regulation, or other provision relating to the 
                price of for-hire motor vehicle transportation by a tow 
                truck, if such transportation is performed without the 
                prior consent or authorization of the owner or operator 
                of the motor vehicle.
            ``(3) State standard transportation practices.--

[[Page 109 STAT. 900]]

                    ``(A) Continuation.--Paragraph (1) shall not affect 
                any authority of a State, political subdivision of a 
                State, or political authority of 2 or more States to 
                enact or enforce a law, regulation, or other provision, 
                with respect to the intrastate transportation of 
                property by motor carriers, related to--
                          ``(i) uniform cargo liability rules,
                          ``(ii) uniform bills of lading or receipts for 
                      property being transported,
                          ``(iii) uniform cargo credit rules,
                          ``(iv) antitrust immunity for joint line rates 
                      or routes, classifications, mileage guides, and 
                      pooling, or
                          ``(v) antitrust immunity for agent-van line 
                      operations (as set forth in section 13907),
                if such law, regulation, or provision meets the 
                requirements of subparagraph (B).
                    ``(B) Requirements.--A law, regulation, or provision 
                of a State, political subdivision, or political 
                authority meets the requirements of this subparagraph 
                if--
                          ``(i) the law, regulation, or provision covers 
                      the same subject matter as, and compliance with 
                      such law, regulation, or provision is no more 
                      burdensome than compliance with, a provision of 
                      this part or a regulation issued by the Secretary 
                      or the Board under this part; and
                          ``(ii) the law, regulation, or provision only 
                      applies to a carrier upon request of such carrier.
                    ``(C) Election.--Notwithstanding any other provision 
                of law, a carrier affiliated with a direct air carrier 
                through common controlling ownership may elect to be 
                subject to a law, regulation, or provision of a State, 
                political subdivision, or political authority under this 
                paragraph.
            ``(4) Nonapplicability to hawaii.--This subsection shall not 
        apply with respect to the State of Hawaii.

``Sec. 14502. Tax discrimination against motor carrier transportation 
                        property

    ``(a) Definitions.--In this section, the following definitions 
apply:
            ``(1) Assessment.--The term `assessment' means valuation for 
        a property tax levied by a taxing district.
            ``(2) Assessment jurisdiction.--The term `assessment 
        jurisdiction' means a geographical area in a State used in 
        determining the assessed value of property for ad valorem 
        taxation.
            ``(3) Motor carrier transportation property.--The term 
        `motor carrier transportation property' means property, as 
        defined by the Secretary, owned or used by a motor carrier 
        providing transportation in interstate commerce whether or not 
        such transportation is subject to jurisdiction under subchapter 
        I of chapter 135.
            ``(4) Commercial and industrial property.--The term 
        `commercial and industrial property' means property, other than 
        transportation property and land used primarily for agricultural 
        purposes or timber growing, devoted to a commercial or 
        industrial use, and subject to a property tax levy.

[[Page 109 STAT. 901]]

    ``(b) Acts Burdening Interstate Commerce.--The following acts 
unreasonably burden and discriminate against interstate commerce and a 
State, subdivision of a State, or authority acting for a State or 
subdivision of a State may not do any of them:
            ``(1) Excessive valuation of property.--Assess motor carrier 
        transportation property at a value that has a higher ratio to 
        the true market value of the motor carrier transportation 
        property than the ratio that the assessed value of other 
        commercial and industrial property in the same assessment 
        jurisdiction has to the true market value of the other 
        commercial and industrial property.
            ``(2) Tax on assessment.--Levy or collect a tax on an 
        assessment that may not be made under paragraph (1).
            ``(3) Ad valorem tax.--Levy or collect an ad valorem 
        property tax on motor carrier transportation property at a tax 
        rate that exceeds the tax rate applicable to commercial and 
        industrial property in the same assessment jurisdiction.

    ``(c) Jurisdiction.--
            ``(1) In general.--Notwithstanding section 1341 of title 28 
        and without regard to the amount in controversy or citizenship 
        of the parties, a district court of the United States has 
        jurisdiction, concurrent with other jurisdiction of courts of 
        the United States and the States, to prevent a violation of 
        subsection (b) of this section.
            ``(2) Limitation in relief.--Relief may be granted under 
        this subsection only if the ratio of assessed value to true 
        market value of motor carrier transportation property exceeds, 
        by at least 5 percent, the ratio of assessed value to true 
        market value of other commercial and industrial property in the 
        same assessment jurisdiction.
            ``(3) Burden of proof.--The burden of proof in determining 
        assessed value and true market value is governed by State law.
            ``(4) Violation.--If the ratio of the assessed value of 
        other commercial and industrial property in the assessment 
        jurisdiction to the true market value of all other commercial 
        and industrial property cannot be determined to the satisfaction 
        of the district court through the random-sampling method known 
        as a sales assessment ratio study (to be carried out under 
        statistical principles applicable to such a study), the court 
        shall find, as a violation of this section--
                    ``(A) an assessment of the motor carrier 
                transportation property at a value that has a higher 
                ratio to the true market value of the motor carrier 
                transportation property than the assessment value of all 
                other property subject to a property tax levy in the 
                assessment jurisdiction has to the true market value of 
                all such other property; and
                    ``(B) the collection of ad valorem property tax on 
                the motor carrier transportation property at a tax rate 
                that exceeds the tax ratio rate applicable to taxable 
                property in the taxing district.

``Sec. 14503. Withholding State and local income tax by certain carriers

    ``(a) Single State Tax Withholding.--
            ``(1) In general.--No part of the compensation paid by a 
        motor carrier providing transportation subject to jurisdiction

[[Page 109 STAT. 902]]

        under subchapter I of chapter 135 or by a motor private carrier 
        to an employee who performs regularly assigned duties in 2 or 
        more States as such an employee with respect to a motor vehicle 
        shall be subject to the income tax laws of any State or 
        subdivision of that State, other than the State or subdivision 
        thereof of the employee's residence.
            ``(2) Employee defined.--In this subsection, the term 
        `employee' has the meaning given such term in section 31132.

    ``(b) Special Rules.--
            ``(1) Calculation of earnings.--In this subsection, an 
        employee is deemed to have earned more than 50 percent of pay in 
        a State or subdivision of that State in which the time worked by 
        the employee in the State or subdivision is more than 50 percent 
        of the total time worked by the employee while employed during 
        the calendar year.
            ``(2) Water carriers.--A water carrier providing 
        transportation subject to jurisdiction under subchapter II of 
        chapter 135 shall file income tax information returns and other 
        reports only with--
                    ``(A) the State and subdivision of residence of the 
                employee (as shown on the employment records of the 
                carrier); and
                    ``(B) the State and subdivision in which the 
                employee earned more than 50 percent of the pay received 
                by the employee from the carrier during the preceding 
                calendar year.
            ``(3) Applicability to sailors.--This subsection applies to 
        pay of a master, officer, or sailor who is a member of the crew 
        on a vessel engaged in foreign, coastwise, intercoastal, or 
        noncontiguous trade or in the fisheries of the United States.

    ``(c) Filing of Information. <<NOTE: Reports.>> --A motor and motor 
private carrier withholding pay from an employee under subsection (a) of 
this section shall file income tax information returns and other reports 
only with the State and subdivision of residence of the employee.

``Sec. 14504. Registration of motor carriers by a State

    ``(a) Definitions.--In this section, the terms `standards' and 
`amendments to standards' mean the specification of forms and procedures 
required by regulations of the Secretary to prove the lawfulness of 
transportation by motor carrier referred to in section 13501.
    ``(b) General Rule.--The requirement of a State that a motor 
carrier, providing transportation subject to jurisdiction under 
subchapter I of chapter 135 and providing transportation in that State, 
must register with the State is not an unreasonable burden on 
transportation referred to in section 13501 when the State registration 
is completed under standards of the Secretary under subsection (c). When 
a State registration requirement imposes obligations in excess of the 
standards of the Secretary, the part in excess is an unreasonable 
burden.
    ``(c) Single State Registration System.--
            ``(1) In general.--The Secretary shall maintain standards 
        for implementing a system under which--
                    ``(A) a motor carrier is required to register 
                annually with only one State by providing evidence of 
                its Federal registration under chapter 139;

[[Page 109 STAT. 903]]

                    ``(B) the State of registration shall fully comply 
                with standards prescribed under this section; and
                    ``(C) such single State registration shall be deemed 
                to satisfy the registration requirements of all other 
                States.
            ``(2) Specific requirements.--
                    ``(A) Evidence of federal registration; proof of 
                insurance; payment of fees.--Under the standards of the 
                Secretary implementing the single State registration 
                system described in paragraph (1) of this subsection, 
                only a State acting in its capacity as registration 
                State under such single State system may require a motor 
                carrier registered by the Secretary under this part--
                          ``(i) to file and maintain evidence of such 
                      Federal registration;
                          ``(ii) to file satisfactory proof of required 
                      insurance or qualification as a self-insurer;
                          ``(iii) to pay directly to such State fee 
                      amounts in accordance with the fee system 
                      established under subparagraph (B)(iv) of this 
                      paragraph, subject to allocation of fee revenues 
                      among all States in which the carrier operates and 
                      which participate in the single State registration 
                      system; and
                          ``(iv) to file the name of a local agent for 
                      service of process.
                    ``(B) Receipts; fee system.--The standards of the 
                Secretary--
                          ``(i) shall require that the registration 
                      State issue a receipt, in a form prescribed under 
                      the standards, reflecting that the carrier has 
                      filed proof of insurance as provided under 
                      subparagraph (A)(ii) of this paragraph and has 
                      paid fee amounts in accordance with the fee system 
                      established under clause (iv) of this 
                      subparagraph;
                          ``(ii) shall require that copies of the 
                      receipt issued under clause (i) of this 
                      subparagraph be kept in each of the carrier's 
                      commercial motor vehicles;
                          ``(iii) shall not require decals, stamps, cab 
                      cards, or any other means of registering or 
                      identifying specific vehicles operated by the 
                      carrier;
                          ``(iv) shall establish a fee system for the 
                      filing of proof of insurance as provided under 
                      subparagraph (A)(ii) of this paragraph that--
                                    ``(I) is based on the number of 
                                commercial motor vehicles the carrier 
                                operates in a State and on the number of 
                                States in which the carrier operates;
                                    ``(II) minimizes the costs of 
                                complying with the registration system; 
                                and
                                    ``(III) results in a fee for each 
                                participating State that is equal to the 
                                fee, not to exceed $10 per vehicle, that 
                                such State collected or charged as of 
                                November 15, 1991; and
                          ``(v) shall not authorize the charging or 
                      collection of any fee for filing and maintaining 
                      evidence of Federal registration under 
                      subparagraph (A)(i) of this paragraph.

[[Page 109 STAT. 904]]

                    ``(C) Prohibited fees.--The charging or collection 
                of any fee under this section that is not in accordance 
                with the fee system established under subparagraph 
                (B)(iv) of this paragraph shall be deemed to be a burden 
                on interstate commerce.
                    ``(D) Limitation on participation by states.--Only a 
                State which, as of January 1, 1991, charged or collected 
                a fee for a vehicle identification stamp or number under 
                part 1023 of title 49, Code of Federal Regulations, 
                shall be eligible to participate as a registration State 
                under this subsection or to receive any fee revenue 
                under this subsection.

``Sec. 14505. State tax

    ``A State or political subdivision thereof may not collect or levy a 
tax, fee, head charge, or other charge on--
            ``(1) a passenger traveling in interstate commerce by motor 
        carrier;
            ``(2) the transportation of a passenger traveling in 
        interstate commerce by motor carrier;
            ``(3) the sale of passenger transportation in interstate 
        commerce by motor carrier; or
            ``(4) the gross receipts derived from such transportation.

      ``CHAPTER 147--ENFORCEMENT; INVESTIGATIONS; RIGHTS; REMEDIES

``Sec.
``14701. General authority.
``14702. Enforcement by the regulatory authority.
``14703. Enforcement by the Attorney General.
``14704. Rights and remedies of persons injured by carriers or brokers.
``14705. Limitation on actions by and against carriers.
``14706. Liability of carriers under receipts and bills of lading.
``14707. Private enforcement of registration requirement.
``14708. Dispute settlement program for household goods carriers.
``14709. Tariff reconciliation rules for motor carriers of property.

``Sec. 14701. General authority

    ``(a) Investigations.--The Secretary or the Board, as applicable, 
may begin an investigation under this part on the Secretary's or the 
Board's own initiative or on complaint. If the Secretary or Board, as 
applicable, finds that a carrier or broker is violating this part, the 
Secretary or Board, as applicable, shall take appropriate action to 
compel compliance with this part. If the Secretary finds that a foreign 
motor carrier or foreign motor private carrier is violating chapter 139, 
the Secretary shall take appropriate action to compel compliance with 
that chapter. The Secretary or Board, as applicable, may take action 
under this subsection only after giving the carrier or broker notice of 
the investigation and an opportunity for a proceeding.
    ``(b) Complaints.--A person, including a governmental authority, may 
file with the Secretary or Board, as applicable, a complaint about a 
violation of this part by a carrier providing, or broker for, 
transportation or service subject to jurisdiction under this part or a 
foreign motor carrier or foreign motor private carrier providing 
transportation registered under section 13902 of this title. The 
complaint must state the facts that are the subject of the violation. 
The Secretary or Board, as applicable, may dismiss a complaint

[[Page 109 STAT. 905]]

that it determines does not state reasonable grounds for investigation 
and action.
    ``(c) Deadline.--A formal investigative proceeding begun by the 
Secretary or Board under subsection (a) of this section is dismissed 
automatically unless it is concluded with administrative finality by the 
end of the 3d year after the date on which it was begun.

``Sec. 14702. Enforcement by the regulatory authority

    ``(a) In General.--The Secretary or the Board, as applicable, may 
bring a civil action--
            ``(1) to enforce section 14103 of this title; or
            ``(2) to enforce this part, or a regulation or order of the 
        Secretary or Board, as applicable, when violated by a carrier or 
        broker providing transportation or service subject to 
        jurisdiction under subchapter I or III of chapter 135 of this 
        title or by a foreign motor carrier or foreign motor private 
        carrier providing transportation registered under section 13902 
        of this title.

    ``(b) Venue.--In a civil action under subsection (a)(2) of this 
section--
            ``(1) trial is in the judicial district in which the 
        carrier, foreign motor carrier, foreign motor private carrier, 
        or broker operates;
            ``(2) process may be served without regard to the 
        territorial limits of the district or of the State in which the 
        action is instituted; and
            ``(3) a person participating with a carrier or broker in a 
        violation may be joined in the civil action without regard to 
        the residence of the person.

    ``(c) Standing.--The Board, through its own attorneys, may bring or 
participate in any civil action involving motor carrier undercharges.

``Sec. 14703. Enforcement by the Attorney General

    ``The Attorney General may, and on request of either the Secretary 
or the Board shall, bring court proceedings--
            ``(1) to enforce this part or a regulation or order of the 
        Secretary or Board or terms of registration under this part; and
            ``(2) to prosecute a person violating this part or a 
        regulation or order of the Secretary or Board or term of 
        registration under this part.

``Sec. 14704. Rights and remedies of persons injured by carriers or 
                        brokers

    ``(a) In General.--
            ``(1) Enforcement of order.--A person injured because a 
        carrier or broker providing transportation or service subject to 
        jurisdiction under chapter 135 does not obey an order of the 
        Secretary or the Board, as applicable, under this part, except 
        an order for the payment of money, may bring a civil action to 
        enforce that order under this subsection. A person may bring a 
        civil action for injunctive relief for violations of sections 
        14102 and 14103.
            ``(2) Damages for violations.--A carrier or broker providing 
        transportation or service subject to jurisdiction under chap

[[Page 109 STAT. 906]]

        ter 135 is liable for damages sustained by a person as a result 
        of an act or omission of that carrier or broker in violation of 
        this part.

    ``(b) Liability and Damages for Exceeding Tariff Rate.--A carrier 
providing transportation or service subject to jurisdiction under 
chapter 135 is liable to a person for amounts charged that exceed the 
applicable rate for transportation or service contained in a tariff in 
effect under section 13702.
    ``(c) Election.--
            ``(1) Complaint to dot or board; civil action.--A person may 
        file a complaint with the Board or the Secretary, as applicable, 
        under section 14701(b) or bring a civil action under subsection 
        (b) to enforce liability against a carrier or broker providing 
        transportation or service subject to jurisdiction under chapter 
        135.
            ``(2) Order of dot or board.--
                    ``(A) In general.--When the Board or Secretary, as 
                applicable, makes an award under subsection (b) of this 
                section, the Board or Secretary, as applicable, shall 
                order the carrier to pay the amount awarded by a 
                specific date. The Board or Secretary, as applicable, 
                may order a carrier or broker providing transportation 
                or service subject to jurisdiction under chapter 135 to 
                pay damages only when the proceeding is on complaint.
                    ``(B) Enforcement by civil action.--The person for 
                whose benefit an order of the Board or Secretary 
                requiring the payment of money is made may bring a civil 
                action to enforce that order under this paragraph if the 
                carrier or broker does not pay the amount awarded by the 
                date payment was ordered to be made.

    ``(d) Procedure.--
            ``(1) In general.--When a person begins a civil action under 
        subsection (b) of this section to enforce an order of the Board 
        or Secretary requiring the payment of damages by a carrier or 
        broker providing transportation or service subject to 
        jurisdiction under chapter 135 of this title, the text of the 
        order of the Board or Secretary must be included in the 
        complaint. In addition to the district courts of the United 
        States, a State court of general jurisdiction having 
        jurisdiction of the parties has jurisdiction to enforce an order 
        under this paragraph. The findings and order of the Board or 
        Secretary are competent evidence of the facts stated in them. 
        Trial in a civil action brought in a district court of the 
        United States under this paragraph is in the judicial district 
        in which the plaintiff resides or in which the principal 
        operating office of the carrier or broker is located. In a civil 
        action under this paragraph, the plaintiff is liable for only 
        those costs that accrue on an appeal taken by the plaintiff.
            ``(2) Parties.--All parties in whose favor the award was 
        made may be joined as plaintiffs in a civil action brought in a 
        district court of the United States under this subsection and 
        all the carriers that are parties to the order awarding damages 
        may be joined as defendants. Trial in the action is in the 
        judicial district in which any one of the plaintiffs could bring 
        the action against any one of the defendants. Process may be 
        served on a defendant at its principal operating office when 
        that defendant is not in the district in which the action

[[Page 109 STAT. 907]]

        is brought. A judgment ordering recovery may be made in favor of 
        any of those plaintiffs against the defendant found to be liable 
        to that plaintiff.

    ``(e) Attorney's Fees. <<NOTE: Courts.>> --The district court shall 
award a reasonable attorney's fee under this section. The district court 
shall tax and collect that fee as part of the costs of the action.

``Sec. 14705. Limitation on actions by and against 
                        carriers <<NOTE: Claims.>> 

    ``(a) In General.--A carrier providing transportation or service 
subject to jurisdiction under chapter 135 must begin a civil action to 
recover charges for transportation or service provided by the carrier 
within 18 months after the claim accrues.
    ``(b) Overcharges.--A person must begin a civil action to recover 
overcharges within 18 months after the claim accrues. If the claim is 
against a carrier providing transportation subject to jurisdiction under 
chapter 135 and an election to file a complaint with the Board or 
Secretary, as applicable, is made under section 14704(c)(1), the 
complaint must be filed within 3 years after the claim accrues.
    ``(c) Damages.--A person must file a complaint with the Board or 
Secretary, as applicable, to recover damages under section 14704(b) 
within 2 years after the claim accrues.

    ``(d) Extensions.--The limitation periods under subsection (b) of 
this section are extended for 6 months from the time written notice is 
given to the claimant by the carrier of disallowance of any part of the 
claim specified in the notice if a written claim is given to the carrier 
within those limitation periods. The limitation periods under 
subsections (b) and (c) of this section are extended for 90 days from 
the time the carrier begins a civil action under subsection (a) to 
recover charges related to the same transportation or service, or 
collects (without beginning a civil action under that subsection) the 
charge for that transportation or service if that action is begun or 
collection is made within the appropriate period.
    ``(e) Payment.--A person must begin a civil action to enforce an 
order of the Board or Secretary against a carrier within 1 year after 
the date of the order.
    ``(f) Government Transportation.--This section applies to 
transportation for the United States Government. The time limitations 
under this section are extended, as related to transportation for or on 
behalf of the United States Government, for 3 years from the later of 
the date of--
            ``(1) payment of the rate for the transportation or service 
        involved;
            ``(2) subsequent refund for overpayment of that rate; or
            ``(3) deduction made under section 3726 of title 31.

    ``(g) Accrual Date.--A claim related to a shipment of property 
accrues under this section on delivery or tender of delivery by the 
carrier.

``Sec. 14706. Liability of carriers under receipts and bills of lading

    ``(a) General Liability.--
            ``(1) Motor carriers and freight forwarders.--A carrier 
        providing transportation or service subject to jurisdiction 
        under subchapter I or III of chapter 135 shall issue a receipt 
        or bill of lading for property it receives for transportation 
        under this part. That carrier and any other carrier that 
        delivers

[[Page 109 STAT. 908]]

        the property and is providing transportation or service subject 
        to jurisdiction under subchapter I or III of chapter 135 or 
        chapter 105 are liable to the person entitled to recover under 
        the receipt or bill of lading. The liability imposed under this 
        paragraph is for the actual loss or injury to the property 
        caused by (A) the receiving carrier, (B) the delivering carrier, 
        or (C) another carrier over whose line or route the property is 
        transported in the United States or from a place in the United 
        States to a place in an adjacent foreign country when 
        transported under a through bill of lading and, except in the 
        case of a freight forwarder, applies to property reconsigned or 
        diverted under a tariff under section 13702. Failure to issue a 
        receipt or bill of lading does not affect the liability of a 
        carrier. A delivering carrier is deemed to be the carrier 
        performing the line-haul transportation nearest the destination 
        but does not include a carrier providing only a switching 
        service at the destination.
            ``(2) Freight forwarder.--A freight forwarder is both the 
        receiving and delivering carrier. When a freight forwarder 
        provides service and uses a motor carrier providing 
        transportation subject to jurisdiction under subchapter I of 
        chapter 135 to receive property from a consignor, the motor 
        carrier may execute the bill of lading or shipping receipt for 
        the freight forwarder with its consent. With the consent of the 
        freight forwarder, a motor carrier may deliver property for a 
        freight forwarder on the freight forwarder's bill of lading, 
        freight bill, or shipping receipt to the consignee named in it, 
        and receipt for the property may be made on the freight 
        forwarder's delivery receipt.

    ``(b) Apportionment.--The carrier issuing the receipt or bill of 
lading under subsection (a) of this section or delivering the property 
for which the receipt or bill of lading was issued is entitled to 
recover from the carrier over whose line or route the loss or injury 
occurred the amount required to be paid to the owners of the property, 
as evidenced by a receipt, judgment, or transcript, and the
amount of its expenses reasonably incurred in defending a civil action 
brought by that person.

    ``(c) Special Rules.--
            ``(1) Motor carriers.--
                    ``(A) Shipper waiver.--Subject to the provisions of 
                subparagraph (B), a carrier providing transportation or 
                service subject to jurisdiction under subchapter I or 
                III of chapter 135 may, subject to the provisions of 
                this chapter (including with respect to a motor carrier, 
                the requirements of section 13710(a)), establish rates 
                for the transportation of property (other than household 
                goods described in section 13102(10)(A)) under which the 
                liability of the carrier for such property is limited to 
                a value established by written or electronic declaration 
                of the shipper or by written agreement between the 
                carrier and shipper if that value would be reasonable 
                under the circumstances surrounding the transportation.
                    ``(B) Carrier notification.--If the motor carrier is 
                not required to file its tariff with the Board, it shall 
                provide under section 13710(a)(1) to the shipper, on 
                request of the shipper, a written or electronic copy of 
                the rate, classification, rules, and practices upon 
                which any rate applicable

[[Page 109 STAT. 909]]

                to a shipment, or agreed to between the shipper and the 
                carrier, is based. The copy provided by the carrier 
                shall clearly state the dates of applicability of the 
                rate, classification, rules, or practices.
                    ``(C) Prohibition against collective 
                establishment.--No discussion, consideration, or 
                approval as to rules to limit liability under this 
                subsection may be undertaken by carriers acting under an 
                agreement approved pursuant to section 13703.
            ``(2) Water carriers.--If loss or injury to property occurs 
        while it is in the custody of a water carrier, the liability of 
        that carrier is determined by its bill of lading and the law 
        applicable to water transportation. The liability of the initial 
        or delivering carrier is the same as the liability of the water 
        carrier.

    ``(d) Civil Actions.--
            ``(1) Against delivering carrier.--A civil action under this 
        section may be brought against a delivering carrier in a 
        district court of the United States or in a State court. Trial, 
        if the action is brought in a district court of the United 
        States is in a judicial district, and if in a State court, is in 
        a State through which the defendant carrier operates.
            ``(2) Against carrier responsible for loss.--A civil action 
        under this section may be brought against the carrier alleged to 
        have caused the loss or damage, in the judicial district in 
        which such loss or damage is alleged to have occurred.
            ``(3) Jurisdiction of courts.--A civil action under this 
        section may be brought in a United States district court or in a 
        State court.
            ``(4) Judicial district defined.--In this section, `judicial 
        district' means--
                    ``(A) in the case of a United States district court, 
                a judicial district of the United States; and
                    ``(B) in the case of a State court, the applicable 
                geographic area over which such court exercises 
                jurisdiction.

    ``(e) Minimum Period for Filing Claims.--
            ``(1) In general.--A carrier may not provide by rule, 
        contract, or otherwise, a period of less than 9 months for 
        filing a claim against it under this section and a period of 
        less than 2 years for bringing a civil action against it under 
        this section. The period for bringing a civil action is computed 
        from the date the carrier gives a person written notice that the 
        carrier has disallowed any part of the claim specified in the 
        notice.
            ``(2) Special rules.--For the purposes of this subsection--
                    ``(A) an offer of compromise shall not constitute a 
                disallowance of any part of the claim unless the 
                carrier, in writing, informs the claimant that such part 
                of the claim is disallowed and provides reasons for such 
                disallowance; and
                    ``(B) communications received from a carrier's 
                insurer shall not constitute a disallowance of any part 
                of the claim unless the insurer, in writing, informs the 
                claimant that such part of the claim is disallowed, 
                provides reason for

[[Page 109 STAT. 910]]

                such disallowance, and informs the claimant that the 
                insurer is acting on behalf of the carrier.

    ``(f) Limiting Liability of Household Goods Carriers to Declared 
Value.--A carrier or group of carriers subject to jurisdiction under 
subchapter I or III of chapter 135 may petition the Board to modify, 
eliminate, or establish rates for the transportation of household goods 
under which the liability of the carrier for that property is limited to 
a value established by written declaration of the shipper or by a 
written agreement.

    ``(g) Modifications and Reforms.--
            ``(1) Study.--The Secretary shall conduct a study to 
        determine whether any modifications or reforms should be made to 
        the loss and damage provisions of this section, including those 
        related to limitation of liability by carriers.
            ``(2) Factors to consider.--In conducting the study, the 
        Secretary, at a minimum, shall consider--
                    ``(A) the efficient delivery of transportation 
                services;
                    ``(B) international and intermodal harmony;
                    ``(C) the public interest; and
                    ``(D) the interest of carriers and shippers.
            ``(3) Report.--Not later than 12 months after the effective 
        date of this section, the Secretary shall submit to Congress a 
        report on the results of the study, together with any 
        recommendations of the Secretary (including legislative 
        recommendations) for implementing modifications or reforms 
        identified by the Secretary as being appropriate.

``Sec. 14707. Private enforcement of registration requirement

    ``(a) In General.--If a person provides transportation by motor 
vehicle or service in clear violation of section 13901-13904 or 13906, a 
person injured by the transportation or service may bring a civil action 
to enforce any such section. In a civil action under this subsection, 
trial is in the judicial district in which the person who violated that 
section operates.
    ``(b) Procedure.--A copy of the complaint in a civil action under 
subsection (a) shall be served on the Secretary and a certificate of 
service must appear in the complaint filed with the court. The Secretary 
may intervene in a civil action under subsection (a). The Secretary may 
notify the district court in which the action is pending that the 
Secretary intends to consider the matter that is the subject of the 
complaint in a proceeding before the Secretary. When that notice is 
filed, the court shall stay further action pending disposition of the 
proceeding before the Secretary.
    ``(c) Attorney's Fees.--In a civil action under subsection (a), the 
court may determine the amount of and award a reasonable attorney's fee 
to the prevailing party. That fee is in addition to costs allowable 
under the Federal Rules of Civil Procedure.

``Sec. 14708. Dispute settlement program for household goods carriers

    ``(a) Offering Shippers Arbitration.--As a condition of registration 
under section 13902 or 13903, a carrier providing transportation of 
household goods subject to jurisdiction under subchapter I or III of 
chapter 135 must agree to offer in accordance with this section to 
shippers of household goods arbitration as a means of settling disputes 
between such carriers and shippers of household goods concerning damage 
or loss to the household goods transported.

[[Page 109 STAT. 911]]

    ``(b) Arbitration Requirements.--
            ``(1) Prevention of special advantage.--The arbitration that 
        is offered must be designed to prevent a carrier from having any 
        special advantage in any case in which the claimant resides or 
        does business at a place distant from the carrier's principal or 
        other place of business.
            ``(2) Notice of arbitration procedure.--The carrier must 
        provide the shipper an adequate notice of the availability of 
        neutral arbitration, including a concise easy-to-read, accurate 
        summary of the arbitration procedure, any applicable costs, and 
        disclosure of the legal effects of election to utilize 
        arbitration. Such notice must be given to persons for whom 
        household goods are to be transported by the carrier before such 
        goods are tendered to the carrier for transportation.
            ``(3) Provision of forms.--Upon request of a shipper, the 
        carrier must promptly provide such forms and other information 
        as are necessary for initiating an action to resolve a dispute 
        under arbitration.
            ``(4) Independence of arbitrator.--Each person authorized to 
        arbitrate or otherwise settle disputes must be independent of 
        the parties to the dispute and must be capable, as determined 
        under such regulations as the Secretary may issue, to resolve 
        such disputes fairly and expeditiously. The carrier must ensure 
        that each person chosen to settle the disputes is authorized and 
        able to obtain from the shipper or carrier any material and 
        relevant information to the extent necessary to carry out a fair 
        and expeditious decisionmaking process.
            ``(5) Apportionment of costs.--No shipper may be charged 
        more than half of the cost for instituting an arbitration 
        proceeding that is brought under this section. In the decision, 
        the arbitrator may determine which party shall pay the cost or a 
        portion of the cost of the arbitration proceeding, including the 
        cost of instituting the proceeding.
            ``(6) Requests.--The carrier must not require the shipper to 
        agree to utilize arbitration prior to the time that a dispute 
        arises. If the dispute involves a claim for $1,000 or less and 
        the shipper requests arbitration, such arbitration shall be 
        binding on the parties. If the dispute involves a claim for more 
        than $1,000 and the shipper requests arbitration, such 
        arbitration shall be binding on the parties only if the carrier 
        agrees to arbitration.
            ``(7) Oral presentation of evidence.--The arbitrator may 
        provide for an oral presentation of a dispute concerning 
        transportation of household goods by a party to the dispute (or 
        a party's representative), but such oral presentation may be 
        made only if all parties to the dispute expressly agree to such 
        presentation and the date, time, and location of such 
        presentation.
            ``(8) Deadline for decision.--The arbitrator must, as 
        expeditiously as possible but at least within 60 days of receipt 
        of written notification of the dispute, render a decision based 
        on the information gathered; except that, in any case in which a 
        party to the dispute fails to provide in a timely manner any 
        information concerning such dispute which the person settling 
        the dispute may reasonably require to resolve the dispute, the 
        arbitrator may extend such 60-day period for a reasonable period 
        of time. A decision resolving a dispute may include

[[Page 109 STAT. 912]]

        any remedies appropriate under the circumstances, including 
        repair, replacement, refund, reimbursement for expenses, and 
        compensation for damages.

    ``(c) Limitation on Use of Materials.--Materials and information 
obtained in the course of a decision making process to settle a dispute 
by arbitration under this section may not be used to bring an action 
under section 14905.
    ``(d) Attorney's Fees to Shippers.--In any court action to resolve a 
dispute between a shipper of household goods and a carrier providing 
transportation or service subject to jurisdiction under subchapter I or 
III of chapter 135 concerning the transportation of household goods by 
such carrier, the shipper shall be awarded reasonable attorney's fees 
if--
            ``(1) the shipper submits a claim to the carrier within 120 
        days after the date the shipment is delivered or the date the 
        delivery is scheduled, whichever is later;
            ``(2) the shipper prevails in such court action; and
            ``(3)(A) a decision resolving the dispute was not rendered 
        through arbitration under this section within the period 
        provided under subsection (b)(8) of this section or an extension 
        of such period under such subsection; or
            ``(B) the court proceeding is to enforce a decision rendered 
        through arbitration under this section and is instituted after 
        the period for performance under such decision has elapsed.

    ``(e) Attorney's Fees to Carriers.--In any court action to resolve a 
dispute between a shipper of household goods and a carrier providing 
transportation, or service subject to jurisdiction under subchapter I or 
III of chapter 135 concerning the transportation of household goods by 
such carrier, such carrier may be awarded reasonable attorney's fees by 
the court only if the shipper brought such action in bad faith--
            ``(1) after resolution of such dispute through arbitration 
        under this section; or
            ``(2) after institution of an arbitration proceeding by the 
        shipper to resolve such dispute under this section but before--
                    ``(A) the period provided under subsection (b)(8) 
                for resolution of such dispute (including, if 
                applicable, an extension of such period under such 
                subsection) ends; and
                    ``(B) a decision resolving such dispute is rendered.

    ``(f) Limitation of Applicability to Collect-on-Delivery 
Transportation.--The provisions of this section shall apply only in the 
case of collect-on-delivery transportation of household goods.
    ``(g) Review by Secretary.--Not later than 18 months after the 
effective date of this section, the Secretary shall complete a review of 
the dispute settlement program established under this 
section. <<NOTE: Reports.>>  If, after notice and opportunity for 
comment, the Secretary determines that changes are necessary to such 
program to ensure the fair and equitable resolution of disputes under 
this section, the Secretary shall implement such changes and transmit a 
report to Congress on such changes.

``Sec. 14709. Tariff reconciliation rules for motor carriers of property

    ``Subject to review and approval by the Board, motor carriers 
subject to jurisdiction under subchapter I of chapter 135 (other than 
motor carriers providing transportation of household goods) and shippers 
may resolve, by mutual consent, overcharge and

[[Page 109 STAT. 913]]

under-charge claims resulting from incorrect tariff provisions or 
billing errors arising from the inadvertent failure to properly and 
timely file and maintain agreed upon rates, rules, or classifications in 
compliance with section 13702 or, with respect to transportation 
provided before the effective date of this section, sections 10761 and 
10762, as in effect on the day before the effective date of this 
section. Resolution of such claims among the parties shall not subject 
any party to the penalties for departing from a tariff.

               ``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. Recordkeeping and reporting violations.
``14908. Unlawful disclosure of information.
``14909. Disobedience to subpoenas.
``14910. General civil 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.
``14914. Civil penalty procedures.

``Sec. 14901. General civil penalties

    ``(a) Reporting and Recordkeeping.--A person required to make a 
report to the Secretary or the Board, answer a question, or make, 
prepare, or preserve a record under this part concerning transportation 
subject to jurisdiction under subchapter I or III of chapter 135 or 
transportation by a foreign carrier registered under section 13902, or 
an officer, agent, or employee of that person that--
            ``(1) does not make the report;
            ``(2) does not specifically, completely, and truthfully 
        answer the question;
            ``(3) does not make, prepare, or preserve the record in the 
        form and manner prescribed;
            ``(4) does not comply with section 13901; or
            ``(5) does not comply with section 13902(c);

is liable to the United States for a civil penalty of not less than $500 
for each violation and for each additional day the violation continues; 
except that, in the case of a person who is not registered under this 
part to provide transportation of passengers, or an officer, agent, or 
employee of such person, that does not comply with section 13901 with 
respect to providing transportation of passengers, the amount of the 
civil penalty shall not be less than $2,000 for each violation and for 
each additional day the violation continues.
    ``(b) Transportation of Hazardous Wastes.--A person subject to 
jurisdiction under subchapter I of chapter 135, or an officer, agent, or 
employee of that person, and who is required to comply with section 
13901 of this title but does not so comply with respect to the 
transportation of hazardous wastes as defined by the Environmental 
Protection Agency pursuant to section 3001 of the Solid Waste Disposal 
Act (but not including any waste the regulation

[[Page 109 STAT. 914]]

of which under the Solid Waste Disposal Act has been suspended by 
Congress) shall be liable to the United States for a civil penalty not 
to exceed $20,000 for each violation.
    ``(c) Factors To Consider in Determining Amount.--In determining and 
negotiating the amount of a civil penalty under subsection (a) or (d) 
concerning transportation of household goods, the degree of culpability, 
any history of prior such conduct, the degree of harm to shipper or 
shippers, ability to pay, the effect on ability to do business, whether 
the shipper has been adequately compensated before institution of the 
proceeding, and such other matters as fairness may require shall be 
taken into account.
    ``(d) Protection of Household Goods Shippers.--If a carrier 
providing transportation of household goods subject to jurisdiction 
under subchapter I or III of chapter 135 or a receiver or trustee of 
such carrier fails or refuses to comply with any regulation issued by 
the Secretary or the Board relating to protection of individual 
shippers, such carrier, receiver, or trustee is liable to the United 
States for a civil penalty of not less than $1,000
for each violation and for each additional day during which the 
violation continues.

    ``(e) Violation Relating to Transportation of Household Goods.--Any 
person that knowingly engages in or knowingly authorizes an agent or 
other person--
            ``(1) to falsify documents used in the transportation of 
        household goods subject to jurisdiction under subchapter I or 
        III of chapter 135 which evidence the weight of a shipment; or
            ``(2) to charge for accessorial services which are not 
        performed or for which the carrier is not entitled to be 
        compensated in any case in which such services are not 
        reasonably necessary in the safe and adequate movement of the 
        shipment;

is liable to the United States for a civil penalty of not less than 
$2,000 for each violation and of not less than $5,000 for each 
subsequent violation. Any State may bring a civil action in the United 
States district courts to compel a person to pay a civil penalty 
assessed under this subsection.
    ``(f) Venue.--Trial in a civil action under subsections (a) through 
(e) of this section is in the judicial district in which--
            ``(1) the carrier or broker has its principal office;
            ``(2) the carrier or broker was authorized to provide 
        transportation or service under this part when the violation 
        occurred;
            ``(3) the violation occurred; or
            ``(4) the offender is found.

Process in the action may be served in the judicial district of which 
the offender is an inhabitant or in which the offender may be found.
    ``(g) Business Entertainment Expenses.--
            ``(1) In general.--Any business entertainment expense 
        incurred by a water carrier providing transportation subject to 
        this part shall not constitute a violation of this part if that 
        expense would not be unlawful if incurred by a person not 
        subject to this part.
            ``(2) Cost of service.--Any business entertainment expense 
        subject to paragraph (1) that is paid or incurred by a water 
        carrier providing transportation subject to this part shall not 
        be taken into account in determining the cost of service or the 
        rate base for purposes of section 13702.

[[Page 109 STAT. 915]]

``Sec. 14902. Civil penalty for accepting rebates from carrier

    ``A person--
            ``(1) delivering property to a carrier providing 
        transportation or service subject to jurisdiction under chapter 
        135 for transportation under this part or for whom that carrier 
        will transport the property as consignor or consignee for that 
        person from a State or territory or possession of the United 
        States to another State or possession, territory, or to a 
        foreign country; and
            ``(2) knowingly accepting or receiving by any means a rebate 
        or offset against the rate for transportation for, or service 
        of, that property contained in a tariff required under section 
        13702;

is liable to the United States for a civil penalty in an amount equal to 
3 times the amount of money that person accepted or received as a rebate 
or offset and 3 times the value of other consideration accepted or 
received as a rebate or offset. In a civil action under this section, 
all money or other consideration received by the person during a period 
of 6 years before an action is brought under this section may be 
included in determining the amount of the penalty, and if that total 
amount is included, the penalty shall be 3 times that total amount.

``Sec. 14903. Tariff violations

    ``(a) Civil Penalty for Undercharging and Overcharging.--A person 
that offers, grants, gives, solicits, accepts, or receives by any means 
transportation or service provided for property by a carrier subject to 
jurisdiction under chapter 135 at a rate different than the rate in 
effect under section 13702 is liable to the United States for civil 
penalty of not more than $100,000 for each violation.
    ``(b) General Criminal Penalty.--A carrier providing transportation 
or service subject to jurisdiction under chapter 135 or an officer, 
director, receiver, trustee, lessee, agent, or employee of a corporation 
that is subject to jurisdiction under that chapter, that willfully does 
not observe its tariffs as required under section 13702, shall be fined 
under title 18 or imprisoned not more than 2 years, or both.
    ``(c) Actions of Agents and Employees.--When acting in the scope of 
their employment, the actions and omissions of persons acting for or 
employed by a carrier or shipper that is subject to this section are 
considered to be the actions and omissions of that carrier or shipper as 
well as that person.

    ``(d) Venue.--Trial in a criminal action under this section is in 
the judicial district in which any part of the
violation is committed or through which the transportation is conducted.

``Sec. 14904. Additional rate violations

    ``(a) Rebates by Agents.--A person, or an officer, employee, or 
agent of that person, that--
            ``(1) offers, grants, gives, solicits, accepts, or receives 
        a rebate for concession, in violation of a provision of this 
        part related to motor carrier transportation subject to 
        jurisdiction under subchapter I of chapter 135; or
            ``(2) by any means assists or permits another person to get 
        transportation that is subject to jurisdiction under that 
        subchapter at less than the rate in effect for that 
        transportation under section 13702,

[[Page 109 STAT. 916]]

is liable to the United States for a civil penalty of $200 for the first 
violation and $250 for a subsequent violation.
    ``(b) Undercharging.--
            ``(1) Freight forwarder.--A freight forwarder providing 
        service subject to jurisdiction under subchapter III of chapter 
        135, or an officer, agent, or employee of that freight 
        forwarder, that assists a person in getting, or willingly 
        permits a person to get, service provided under that subchapter 
        at less than the rate in effect for that service under section 
        13702, is liable to the United States for a civil penalty of not 
        more than $500 for the first violation and not more than $2,000 
        for a subsequent violation.
            ``(2) Others.--A person that by any means gets, or attempts 
        to get, service provided under subchapter III of chapter 135 at 
        less than the rate in effect for that service under section 
        13702, is liable to the United States for a civil penalty of not 
        more than $500 for the first violation and not more than $2,000 
        for a subsequent violation.

``Sec. 14905. Penalties for violations of rules relating to loading and 
                        unloading motor vehicles

    ``(a) Civil Penalties.--Whoever knowingly authorizes, consents to, 
or permits a violation of subsection (a) or (b) of section 14103 or who 
knowingly violates subsection (a) of such section is liable to the 
United States for a civil penalty of not more than $10,000 for each 
violation.
    ``(b) Criminal Penalties.--Whoever knowingly violates section 
14103(b) of this title shall be fined under title 18 or imprisoned not 
more than 2 years, or both.

``Sec. 14906. Evasion of regulation of carriers and brokers

    ``A person, or an officer, employee, or agent of that person, that 
by any means tries to evade regulation provided under this part for 
carriers or brokers is liable to the United States for a civil penalty 
of $200 for the first violation and at least $250 for a subsequent 
violation.

``Sec. 14907. Recordkeeping and reporting violations

    ``A person required to make a report to the Secretary or the Board, 
as applicable, answer a question, or make, prepare, or preserve a record 
under this part about transportation subject to jurisdiction under 
subchapter I or III of chapter 135, or an officer, agent, or employee of 
that person, that--
            ``(1) does not make that report;
            ``(2) does not specifically, completely, and truthfully 
        answer that question in 30 days from the date the Secretary or 
        Board, as applicable, requires the question to be answered;
            ``(3) does not make, prepare, or preserve that record in the 
        form and manner prescribed;
            ``(4) falsifies, destroys, mutilates, or changes that report 
        or record;
            ``(5) files a false report or record;
            ``(6) makes a false or incomplete entry in that record about 
        a business related fact or transaction; or
            ``(7) makes, prepares, or preserves a record in violation of 
        an applicable regulation or order of the Secretary or Board;

[[Page 109 STAT. 917]]

is liable to the United States for a civil penalty of not more than 
$5,000.

``Sec. 14908. Unlawful disclosure of information

    ``(a) Disclosure of Shipment and Routing Information.--
            ``(1) Violations.--A carrier or broker providing 
        transportation subject to jurisdiction under subchapter I, II, 
        or III of chapter 135 or an officer, receiver, trustee, lessee, 
        or employee of that carrier or broker, or another person 
        authorized by that carrier or broker to receive information from 
        that carrier or broker may not disclose to another person, 
        except the shipper or consignee, and a person may not solicit, 
        or receive, information about the nature, kind, quantity, 
        destination, consignee, or routing of property tendered or 
        delivered to that carrier or broker for transportation provided 
        under this part without the consent of the shipper or consignee 
        if that information may be used to the detriment of the shipper 
        or consignee or may disclose improperly to a competitor the 
        business transactions of the shipper or consignee.
            ``(2) Penalty.--A person violating paragraph (1) of this 
        subsection is liable to the United States for a civil penalty of 
        not more than $2,000.

    ``(b) Limitation on Statutory Construction.--This part does not 
prevent a carrier or broker providing transportation subject to 
jurisdiction under chapter 135 from giving information--
            ``(1) in response to legal process issued under authority of 
        a court of the United States or a State;
            ``(2) to an officer, employee, or agent of the United States 
        Government, a State, or a territory or possession of the United 
        States; or
            ``(3) to another carrier or its agent to adjust mutual 
        traffic accounts in the ordinary course of business.

``Sec. 14909. Disobedience to subpoenas

    ``Whoever does not obey a subpoena or requirement of the Secretary 
or the Board to appear and testify or produce records shall be fined 
under title 18 or imprisoned not more than 1 year, or both.

``Sec. 14910. General civil penalty when specific penalty not provided

    ``When another civil penalty is not provided under this chapter, a 
person that violates a provision of this part or a regulation or order 
prescribed under this part, or a condition of a registration under this 
part related to transportation that is subject to jurisdiction under 
subchapter I or III of chapter 135 or a condition of a registration of a 
foreign motor carrier or foreign motor private carrier under section 
13902, is liable to the United States for a civil penalty of $500 for 
each violation. A separate violation occurs each day the violation 
continues.

``Sec. 14911. Punishment of corporation for violations committed by 
                        certain individuals

    ``An act or omission that would be a violation of this part if 
committed by a director, officer, receiver, trustee, lessee, agent, or 
employee of a carrier providing transportation or service subject to 
jurisdiction under chapter 135 that is a corporation is also

[[Page 109 STAT. 918]]

a violation of this part by that corporation. The penalties of this 
chapter apply to that violation. When acting in the scope of their 
employment, the actions and omissions of individuals acting for or 
employed by that carrier are considered to be the actions and omissions 
of that carrier as well as that individual.

``Sec. 14912. Weight-bumping in household goods transportation

    ``(a) Weight-Bumping Defined.--For the purposes of this section, 
`weight-bumping' means the knowing and willful making or securing of a 
fraudulent weight on a shipment of household goods which is subject to 
jurisdiction under subchapter I or III of chapter 135.
    ``(b) Penalty.--Whoever has been found to have committed weight-
bumping shall be fined under title 18 or imprisoned not more than 2 
years, or both.

``Sec. 14913. Conclusiveness of rates in certain prosecutions

    ``When a carrier publishes or files a particular rate under section 
13702 or participates in such a rate, the published or filed rate is 
conclusive proof against that carrier, its officers, and agents that it 
is the legal rate for that transportation or service in a proceeding 
begun under section 14902 or 14903. A departure, or offer to depart, 
from that published or filed rate is a violation of those sections.

``Sec. 14914. Civil penalty procedures

    ``(a) In General.--After notice and an opportunity for a hearing, a 
person found by the Surface Transportation Board to have violated a 
provision of law that the Board carries out or a regulation prescribed 
under that law by the Board that is related to transportation which 
occurs under subchapter II of chapter 135 for which a civil penalty is 
provided, is liable to the United States for the civil penalty provided. 
The amount of the civil penalty shall be assessed by the Board by 
written notice. In determining the amount of the penalty, the Board 
shall consider the nature, circumstances, extent, and gravity of the 
prohibited acts committed and, with respect to the violator, the degree 
of culpability, any history of prior offenses, ability to pay, and other 
matters that justice requires.
    ``(b) Compromise.--The Board may compromise, modify, or remit, with 
or without consideration, a civil penalty until the assessment is 
referred to the Attorney General.
    ``(c) Collection.--If a person fails to pay an assessment of a civil 
penalty after it has become final, the Board may refer the matter to the 
Attorney General for collection in an appropriate district court of the 
United States.
    ``(d) Refunds.--The Board may refund or remit a civil penalty 
collected under this section if--
            ``(1) application has been made for refund or remission of 
        the penalty within 1 year from the date of payment; and
            ``(2) the Board finds that the penalty was unlawfully, 
        improperly, or excessively imposed.''.

SEC. 104. MISCELLANEOUS MOTOR CARRIER PROVISIONS.

    (a) Grants to States.--Section 31102(b)(1) of title 49, United 
States Code, is amended--
            (1) by striking ``and'' at the end of subparagraph (O);
            (2) by striking the period at the end of subparagraph (P) 
        and inserting in lieu thereof ``; and''; and

[[Page 109 STAT. 919]]

            (3) by adding at the end the following:
            ``(Q) ensures that the State will cooperate in the 
        enforcement of registration and financial responsibility 
        requirements under sections 31140 and 31146, or regulations 
        issued thereunder.''

    (b) Transport Vehicles for Off-Road, Competition Vehicles.--Section 
31111(b)(1) of such title is amended--
            (1) by striking ``or'' at the end of subparagraph (C);
            (2) by striking the period at the end of subparagraph (D) 
        and inserting in lieu thereof a semicolon and ``or''; and
            (3) by adding at the end thereof the following:
            ``(E) imposes a limitation of less than 46 feet on the 
        distance from the kingpin to the center of the rear axle on 
        trailers used exclusively or primarily in connection with 
        motorsports competition events.''.

    (c) Multiple Insurers.--Section 31138(c) of such title is amended by 
adding at the end the following new paragraph:
    ``(3) A motor carrier may obtain the required amount of financial 
responsibility from more than one source provided the cumulative amount 
is equal to the minimum requirements of this section.''.

    (d) Minimum Financial Responsibility Requirements With Respect to 
Certain Transportation Service.--Section 31138(e) is amended--
            (1) by striking ``or'' at the end of paragraph (2);
            (2) by striking the period at the end of paragraph (3) and 
        inserting in lieu thereof ``; or''; and
            (3) by adding at the end the following:
            ``(4) providing transportation service within a transit 
        service area under an agreement with a Federal, State, or local 
        government funded, in whole or in part, with a grant under 
        section 5307, 5310, or 5311, including transportation designed 
        and carried out to meet the special needs of elderly individuals 
        and individuals with disabilities; except that, in any case in 
        which the transit service area is located in more than 1 State, 
        the minimum level of financial responsibility for such motor 
        vehicle will be at least the highest level required for any of 
        such States.''.

    (e) Transporters of Property.--Section 31139(e) of such title is 
amended by adding at the end the following:
    ``(3) A motor carrier may obtain the required amount of financial 
responsibility from more than one source provided the cumulative amount 
is equal to the minimum requirements of this section.''.

    (f) Commercial Motor Vehicle Defined.--Section 31132(1) of such 
title is amended--
            (1) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (2) by striking subparagraph (B) and inserting in lieu 
        thereof the following:
                    ``(B) is designed or used to transport passengers 
                for compensation, but excluding vehicles providing 
                taxicab service and having a capacity of not more than 6 
                passengers and not operated on a regular route or 
                between specified places;
                    ``(C) is designed or used to transport more than 15 
                passengers, including the driver, and is not used to 
                transport passengers for compensation; or''.

[[Page 109 STAT. 920]]

    (g) Safety Fitness of Owners and Operators.--Section 31144 of such 
title is amended--
            (1) in the first sentence of subsection (a) by striking ``In 
        cooperation with the Interstate Commerce Commission, the'' and 
        inserting in lieu thereof ``The'';
            (2) in such sentence by striking ``sections 10922 and 
        10923'' and inserting in lieu thereof ``section 13902'';
            (3) in subsection (a)(1)(C) by striking ``and the 
        Commission''; and
            (4) by striking subsection (b) and inserting in lieu thereof 
        the following:

    ``(b) Findings and Action on Registrations.--The Secretary shall 
find that a person seeking to register as a motor carrier is unfit if 
such person does not meet the safety fitness requirements established 
under subsection (a) and shall not register such person.''.
    (h) <<NOTE: 49 USC 13906 note.>>  Self-Insurance Rules.--The 
Secretary of Transportation shall continue to enforce the rules and 
regulations of the Interstate Commerce Commission, as in effect on July 
1, 1995, governing the qualifications for approval of a motor carrier as 
a self-insurer, until such time as the Secretary finds it in the public 
interest to revise such rules. The revised rules must provide for--
            (1) continued ability of motor carriers to qualify as self-
        insurers; and
            (2) the continued qualification of all carriers then so 
        qualified under the terms and conditions set by the Interstate 
        Commerce Commission or Secretary at the time of qualification.
SEC. 105. <<NOTE: 5 USC 8332 note.>>  CREDITABILITY OF ANNUAL 
                        LEAVE FOR PURPOSES OF MEETING MINIMUM 
                        ELIGIBILITY REQUIREMENTS FOR AN IMMEDIATE 
                        ANNUITY.

    (a) In General.--An employee of the Interstate Commerce Commission 
who is separated from Government service pursuant to the abolition of 
that agency under section 101 shall, upon appropriate written 
application, be given credit, for purposes of determining eligibility 
for and computing the amount of any annuity under subchapter III of 
chapter 83 or chapter 84 of title 5, United States Code, for accrued 
annual leave standing to such employee's credit at the time of 
separation.
    (b) Limitation and Other Conditions. <<NOTE: Regulations.>> --Any 
regulations necessary to carry out this section shall be prescribed by 
the Office of Personnel Management. Such regulations shall include 
provisions--
            (1) defining the types of leave for which credit may be 
        given under this section (such definition to be similar to the 
        corresponding provisions of the regulations under section 
        351.608(c)(2) of title 5 of the Code of Federal Regulations, as 
        in effect on the date of the enactment of this Act);
            (2) limiting the amount of accrued annual leave which may be 
        used for the purposes specified in subsection (a) to the minimum 
        period of time necessary in order to permit such employee to 
        attain first eligibility for an immediate annuity under section 
        8336, 8412, or 8414 of title 5, United States Code (in a manner 
        similar to the corresponding provisions of the regulations 
        referred to in paragraph (1));
            (3) under which contributions (or arrangements for the 
        making of contributions) shall be made so that--

[[Page 109 STAT. 921]]

                    (A) employee contributions for any period of leave 
                for which retirement credit may be obtained under this 
                section shall be made by the employee; and
                    (B) Government contributions with respect to such 
                period shall similarly be made by the Interstate 
                Commerce Commission or other appropriate officer or 
                entity (out of appropriations otherwise available for 
                such contributions); and
            (4) under which subsection (a) shall not apply with respect 
        to an employee who declines a reasonable offer of employment in 
        another position in the Department of Transportation made under 
        this Act or any amendment made by this Act.

    (c) Extinguishment of Eligibility for Lump-Sum Payment.--A lump-sum 
payment under section 5551 of title 5, United States Code, shall not be 
payable with respect to any leave for which retirement credit is 
obtained under this section.

SEC. 106. PIPELINE CARRIER PROVISIONS.

    (a) Amendment to Title 49.--Subtitle IV of title 49, United States 
Code, is further amended by adding at the end the following:

                       ``PART C--PIPELINE CARRIERS

                    ``CHAPTER 151--GENERAL PROVISIONS

                    ``CHAPTER 151--GENERAL PROVISIONS

``Sec.
``15101. Transportation policy.
``15102. Definitions.
``15103. Remedies as cumulative.

``Sec. 15101. Transportation policy

    ``(a) In General.--To ensure the development, coordination, and 
preservation of a transportation system that meets the transportation 
needs of the United States, including the national defense, it is the 
policy of the United States Government to oversee of the modes of 
transportation and in overseeing those modes--
            ``(1) to recognize and preserve the inherent advantage of 
        each mode of transportation;
            ``(2) to promote safe, adequate, economical, and efficient 
        transportation;
            ``(3) to encourage sound economic conditions in 
        transportation, including sound economic conditions among 
        carriers;
            ``(4) to encourage the establishment and maintenance of 
        reasonable rates for transportation without unreasonable 
        discrimination or unfair or destructive competitive practices;
            ``(5) to cooperate with each State and the officials of each 
        State on transportation matters; and
            ``(6) to encourage fair wages and working conditions in the 
        transportation industry.

    ``(b) Administration To Carry Out Policy.--This part shall be 
administered and enforced to carry out the policy of this section.

``Sec. 15102. Definitions

    ``In this part--
            ``(1) Board.--The term `Board' means the Surface 
        Transportation Board.
            ``(2) Pipeline carrier.--The term `pipeline carrier' means a 
        person providing pipeline transportation for compensation.

[[Page 109 STAT. 922]]

            ``(3) Rate.--The term `rate' means a rate or charge for 
        transportation.
            ``(4) State.--The term `State' means a State of the United 
        States and the District of Columbia.
            ``(5) Transportation.--The term `transportation' includes--
                    ``(A) property, facilities, instrumentalities, or 
                equipment of any kind related to the movement of 
                property, regardless of ownership or an agreement 
                concerning use; and
                    ``(B) services related to that movement, including 
                receipt, delivery, transfer in transit, storage, 
                handling, and interchange of property.
            ``(6) United states.--The term `United States' means the 
        States of the United States and the District of Columbia.

``Sec. 15103. Remedies as cumulative

    ``Except as otherwise provided in this part, the remedies provided 
under this part are in addition to remedies existing under another law 
or common law.

                       ``CHAPTER 153--JURISDICTION

                       ``CHAPTER 153--JURISDICTION

``Sec.
``15301. General pipeline jurisdiction.
``15302. Authority to exempt pipeline carrier transportation.

``Sec. 15301. General pipeline jurisdiction

    ``(a) In General.--The Board has jurisdiction over transportation by 
pipeline, or by pipeline and railroad or water, when transporting a 
commodity other than water, gas, or oil. Jurisdiction under this 
subsection applies only to transportation in the United States between a 
place in--
            ``(1) a State and a place in another State;
            ``(2) the District of Columbia and another place in the 
        District of Columbia;
            ``(3) a State and a place in a territory or possession of 
        the United States;
            ``(4) a territory or possession of the United States and a 
        place in another such territory or possession;
            ``(5) a territory or possession of the United States and 
        another place in the same territory or possession;
            ``(6) the United States and another place in the United 
        States through a foreign country; or
            ``(7) the United States and a place in a foreign country.

    ``(b) No Jurisdiction Over Intrastate Transportation.--The Board 
does not have jurisdiction under subsection (a) over the transportation 
of property, or the receipt, delivery, storage, or handling of property, 
entirely in a State (other than the District of Columbia) and not 
transported between a place in the United States and a place in a 
foreign country except as otherwise provided in this part.
    ``(c) Protection of States Powers.--This part does not affect the 
power of a State, in exercising its police power, to require reasonable 
intrastate transportation by carriers providing transportation subject 
to the jurisdiction of the Board under this chapter

[[Page 109 STAT. 923]]

unless the State requirement is inconsistent with an order of the Board 
issued under this part or is prohibited under this part.

``Sec. 15302. Authority to exempt pipeline carrier transportation

    ``(a) In General--In a matter related to a pipeline carrier 
providing transportation subject to jurisdiction under this chapter, the 
Board shall exempt a person, class of persons, or a transaction or 
service when the Board finds that the application, in whole or in part, 
of a provision of this part--
            ``(1) is not necessary to carry out the transportation 
        policy of section 15101; and
            ``(2) either (A) the transaction or service is of limited 
        scope, or (B) the application, in whole or in part, of the 
        provision is not needed to protect shippers from the abuse of 
        market power.

    ``(b) Initiation of Proceeding.--The Board may, where appropriate, 
begin a proceeding under this section on its own initiative or an 
interested party.
    ``(c) Period of Exemption.--The Board may specify the period of time 
during which an exemption granted under this section is effective.
    ``(d) Revocation.--The Board may revoke an exemption, to the extent 
it specifies, when it finds that application, in whole or in part, of a 
provision of this part to the person, class, or transportation is 
necessary to carry out the transportation policy of section 15101.

                          ``CHAPTER 155--RATES

``Sec.
``15501. Standards for pipeline rates, classifications, through routes, 
              rules, and practices.
``15502. Authority for pipeline carriers to establish rates, 
              classifications, rules, and practices.
``15503. Authority and criteria: rates, classifications, rules, and 
              practices prescribed by Board.
``15504. Government traffic.
``15505. Prohibition against discrimination by pipeline carriers.
``15506. Facilities for interchange of traffic.
``Sec. 15501. Standards for pipeline rates, classifications, 
                      through routes, rules, and practices

    ``(a) Reasonableness.--A rate, classification, rule, or practice 
related to transportation or service provided by a pipeline carrier 
subject to this part must be reasonable. A through route established by 
such a carrier must be reasonable.
    ``(b) Nondiscrimination.--A pipeline carrier providing 
transportation subject to this part may not discriminate in its rates 
against a connecting line of any other pipeline, rail, or water carrier 
providing transportation subject to this subtitle or unreasonably 
discriminate against that line in the distribution of traffic that is 
not routed specifically by the shipper.

``Sec. 15502. Authority for pipeline carriers to establish rates, 
                        classifications, rules, and practices

    ``A pipeline carrier providing transportation or service subject to 
this part shall establish--
            ``(1) rates and classifications for transportation and 
        service it may provide under this part; and

[[Page 109 STAT. 924]]

            ``(2) rules and practices on matters related to that 
        transportation or service.

``Sec. 15503. Authority and criteria: rates, classifications, rules, and 
                        practices prescribed by Board

    ``(a) In General.--When the Board, after a full hearing, decides 
that a rate charged or collected by a pipeline carrier for 
transportation subject to this part, or that a classification, rule, or 
practice of that carrier, does or will violate this part, the Board may 
prescribe the rate, classification, rule, or practice to be followed. In 
prescribing the rate, classification, rule, or practice, the Board may 
utilize rate reasonableness procedures that provide an effective 
simulation of a market-based price for a stand alone pipeline. The Board 
may order the carrier to stop the violation. When a rate, 
classification, rule, or practice is prescribed under this subsection, 
the affected carrier may not publish, charge, or collect a different 
rate and shall adopt the classification and observe the rule or practice 
prescribed by the Board.
    ``(b) Factors To Consider.--When prescribing a rate, classification, 
rule, or practice for transportation or service by a pipeline carrier, 
the Board shall consider, among other factors--
            ``(1) the effect of the prescribed rate, classification, 
        rule, or practice on the movement of traffic by that carrier;
            ``(2) the need for revenues that are sufficient, under 
        honest, economical, and efficient management, to let the carrier 
        provide that transportation or service; and
            ``(3) the availability of other economic transportation 
        alternatives.

    ``(c) Proceeding.--The Board may begin a proceeding under this 
section on complaint. A complaint under this section must contain a full 
statement of the facts and the reasons for the complaint and must be 
made under oath.

``Sec. 15504. Government traffic

    ``A pipeline carrier providing transportation or service for the 
United States Government may transport property for the United States 
Government without charge or at a rate reduced from the applicable 
commercial rate. Section 3709 of the Revised Statutes (41 U.S.C. 5) does 
not apply when transportation for the United States Government can be 
obtained from a carrier lawfully operating in the area where the 
transportation would be provided.

``Sec. 15505. Prohibition against discrimination by pipeline carriers

    A pipeline carrier providing transportation or service subject to 
this part may not subject a person, place, port, or type of traffic to 
unreasonable discrimination.

``Sec. 15506. Facilities for interchange of traffic

    ``A pipeline carrier providing transportation subject to this part 
shall provide reasonable, proper, and equal facilities that are within 
its power to provide for the interchange of traffic between, and for the 
receiving, forwarding, and delivering of property to and from, its 
respective line and a connecting line of a pipeline, rail, or water 
carrier under this subtitle.

[[Page 109 STAT. 925]]

                  ``CHAPTER 157--OPERATIONS OF CARRIERS

                  ``CHAPTER 157--OPERATIONS OF CARRIERS

                  ``Subchapter A--General Requirements

``Sec.
``15701. Providing transportation and service.

                 ``Subchapter B--Operations of Carriers

``15721. Definitions.
``15722. Records: form; inspection; preservation.
``15723. Reports by carriers, lessors, and associations.

                  ``Subchapter A--General Requirements

``Sec. 15701. Providing transportation and service

    ``(a) Service on Reasonable Request.--A pipeline carrier providing 
transportation or service under this part shall provide the 
transportation or service on reasonable request.
    ``(b) Rates and Other Terms.--A pipeline carrier shall also provide 
to any person, on request, the carrier's rates and other service terms. 
The response by a pipeline carrier to a request for the carrier's rates 
and other service terms shall be--
            ``(1) in writing and forwarded to the requesting person 
        promptly after receipt of the request; or
            ``(2) promptly made available in electronic form.

    ``(c) Limitation on Rate Increases and Changes to Service Terms.--A 
pipeline carrier may not increase any common carrier rates or change any 
common carrier service terms unless 20 days have expired after written 
or electronic notice is provided to any person who, within the previous 
12 months--
            ``(1) has requested such rates or terms under subsection 
        (b); or
            ``(2) has made arrangements with the carrier for a shipment 
        that would be subject to such increased rates or changed terms.

    ``(d) Provision of Service.--A pipeline carrier shall provide 
transportation or service in accordance with the rates and service 
terms, and any changes thereto, as published or otherwise made available 
under subsection (b) or (c).
    ``(e) Regulations.--The Board shall, by regulation, establish rules 
to implement this section. The regulations shall provide for immediate 
disclosure and dissemination of rates and service terms, including 
classifications, rules, and practices, and their effective dates. The 
regulations may modify the 20-day period specified in subsection (c). 
Final regulations shall be adopted by the Board not later than 180 days 
after the effective date of this section.

                 ``Subchapter B--Operations of Carriers

``Sec. 15721. Definitions

    ``In this subchapter, the following definitions apply:
            ``(1) Carrier, lessor.--The terms `carrier' and `lessor' 
        include a receiver or trustee of a pipeline carrier and lessor, 
        respectively.
            ``(2) Lessor.--The term `lessor' means a person owning a 
        pipeline that is leased to and operated by a carrier providing 
        transportation under this part.
            ``(3) Association.--The term `association' means an 
        organization maintained by or in the interest of a group of

[[Page 109 STAT. 926]]

        pipeline carriers that performs a service, or engages in 
        activities, related to transportation under this part.

``Sec. 15722. Records: form; inspection; preservation

    ``(a) Form of Records.--The Board may prescribe the form of records 
required to be prepared or compiled under this subchapter by pipeline 
carriers and lessors, including records related to movement of traffic 
and receipts and expenditures of money.
    ``(b) Inspection.--The Board, or an employee designated by the 
Board, may on demand and display of proper credentials--
            ``(1) inspect and examine the lands, buildings, and 
        equipment of a pipeline carrier or lessor; and
            ``(2) inspect and copy any record of--
                    ``(A) a pipeline carrier, lessor, or association; 
                and
                    ``(B) a person controlling, controlled by, or under 
                common control with a pipeline carrier if the Board 
                considers inspection relevant to that person's relation 
                to, or transaction with, that carrier.

    ``(c) Preservation Period.--The Board may prescribe the time period 
during which operating, accounting, and financial records must be 
preserved by pipeline carriers and lessors.

``Sec. 15723. Reports by carriers, lessors, and associations

    ``(a) Filing of Reports.--The Board may require pipeline carriers, 
lessors, and associations, or classes of them as the Board may 
prescribe, to file annual, periodic, and special reports with the Board 
containing answers to questions asked by it.
    ``(b) Under Oath.--Any report under this section shall be made under 
oath.

    ``CHAPTER 159--ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND REMEDIES

    ``CHAPTER 159--ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND REMEDIES

``Sec.
``15901. General authority.
``15902. Enforcement by the Board.
``15903. Enforcement by the Attorney General.
``15904. Rights and remedies of persons injured by certain carriers.
``15905. Limitation on actions by and against pipeline carriers.
``15906. Liability of pipeline carriers under receipts and bills of 
           lading.
``15907. Liability when property is delivered in violation of routing 
           instructions.

``Sec. 15901. General authority

    ``(a) Investigation; Compliance Order.--Except as otherwise provided 
in this part, the Board may begin an investigation under this part only 
on complaint. If the Board finds that a pipeline carrier is violating 
this part, the Board shall take appropriate action to compel compliance 
with this part. The Board shall provide the carrier notice of the 
investigation and an opportunity for a proceeding.
    ``(b) Complaint.--A person, including a governmental authority, may 
file with the Board a complaint about a violation of this part by a 
pipeline carrier providing transportation or service subject to this 
part. The complaint must state the facts that are the subject of the 
violation. The Board may dismiss a complaint it determines does not 
state reasonable grounds for investigation and action. However, the 
Board may not dismiss a complaint made

[[Page 109 STAT. 927]]

against a pipeline carrier providing transportation subject to this part 
because of the absence of direct damage to the complainant.
    ``(c) Automatic Dismissal.--A formal investigative proceeding begun 
by the Board under subsection (a) is dismissed automatically unless it 
is concluded by the Board with administrative finality by the end of the 
3d year after the date on which it was begun.

``Sec. 15902. Enforcement by the Board

    ``The Board may bring a civil action to enforce an order of the 
Board, except a civil action to enforce an order for the payment of 
money, when it is violated by a pipeline carrier providing 
transportation subject to this part.

``Sec. 15903. Enforcement by the Attorney General

    ``(a) On Behalf of Board.--The Attorney General may, and on request 
of the Board shall, bring court proceedings to enforce this part or a 
regulation or order of the Board and to prosecute a person violating 
this part or a regulation or order of the Board issued under this part.
    ``(b) On Behalf of Others.--The United States Government may bring a 
civil action on behalf of a person to compel a pipeline carrier 
providing transportation or service subject to this part to provide that 
transportation or service to that person in compliance with this part at 
the same rate charged, or on conditions as favorable as those given by 
the carrier, for like traffic under similar conditions to another 
person.

``Sec. 15904. Rights and remedies of persons injured by pipeline 
                        carriers

    ``(a) Enforcement of Orders.--A person injured because a pipeline 
carrier providing transportation or service subject to this part does 
not obey an order of the Board, except an order for the payment of 
money, may bring a civil action to enforce that order under this 
subsection.
    ``(b) Liability of Carrier.--
            ``(1) Excessive charges.--A pipeline carrier providing 
        transportation subject to this part is liable to a person for 
        amounts charged that exceed the applicable rate for the 
        transportation.
            ``(2) Damages.--A pipeline carrier providing transportation 
        subject to this part is liable for damages sustained by a person 
        as a result of an act or omission of that carrier in violation 
        of this part.

    ``(c) Complaints.--
            ``(1) Filing.--A person may file a complaint with the Board 
        under section 11501(b) or bring a civil action under subsection 
        (b) to enforce liability against a pipeline carrier providing 
        transportation subject to this part.
            ``(2) Payment deadline.--When the Board makes an award under 
        subsection (b), the Board shall order the carrier to pay the 
        amount awarded by a specific date. The Board may order a carrier 
        providing transportation subject to this part to pay damages 
        only when the proceeding is on complaint. The person for whose 
        benefit an order of the Board requiring the payment of money is 
        made may bring a civil action to enforce that order under this 
        paragraph if the carrier does not pay the amount awarded by the 
        date payment was ordered to be made.

[[Page 109 STAT. 928]]

    ``(d) Civil Actions.--
            ``(1) Complaint.--When a person begins a civil action under 
        subsection (b) to enforce an order of the Board requiring the 
        payment of damages by a pipeline carrier providing 
        transportation subject to this part, the text of the order of 
        the Board must be included in the complaint. In addition to the 
        district courts of the United States, a State court of general 
        jurisdiction having jurisdiction of the parties has jurisdiction 
        to enforce an order under this paragraph. The findings and order 
        of the Board are competent evidence of the facts stated in them. 
        Trial in a civil action brought in a district court of the 
        United States under this paragraph is in the judicial district 
        in which the plaintiff resides or in which the principal 
        operating office of the carrier is located. In a civil action 
        under this paragraph, the plaintiff is liable for only those 
        costs that accrue on an appeal taken by the plaintiff.
            ``(2) Attorney's fees. <<NOTE: Courts.>> --The district 
        court shall award a reasonable attorney's fee as a part of the 
        damages for which a carrier is found liable under this 
        subsection. The district court shall tax and collect that fee as 
        a part of the costs of the action.

``Sec. 15905. Limitation on actions by and against 
                        pipeline <<NOTE: Claims.>>  carriers

    ``(a) In General.--A pipeline carrier providing transportation or 
service subject to this part must begin a civil action to recover 
charges for transportation or service provided by the carrier within 3 
years after the claim accrues.
    ``(b) Overcharges.--A person must begin a civil action to recover 
overcharges under section 15904(b)(1) within 3 years after the claim 
accrues. If an election to file a complaint with the Board is made under 
section 15904(c)(1), the complaint must be filed within 3 years after 
the claim accrues.
    ``(c) Damages.--A person must file a complaint with the Board to 
recover damages under section 15904(b)(2) within 2 years after the claim 
accrues.
    ``(d) Extensions.--The limitation periods under subsection (b) are 
extended for 6 months from the time written notice is given to the 
claimant by the carrier of disallowance of any part of the claim 
specified in the notice if a written claim is given to the carrier 
within those limitation periods. The limitation periods under subsection 
(b) and the 2-year period under subsection (c) are extended for 90 days 
from the time the carrier begins a civil action under subsection (a) to 
recover charges related to the same transportation or service, or 
collects (without beginning a civil action under that subsection) the 
charge for that transportation or service if that action is begun or 
collection is made within the appropriate period.
    ``(e) Payment.--A person must begin a civil action to enforce an 
order of the Board against a carrier for the payment of money within one 
year after the date the order required the money to be paid.
    ``(f) Government Transportation.--This section applies to 
transportation for the United States Government. The time limitations 
under this section are extended, as related to transportation for or on 
behalf of the United States Government, for 3 years from the date of--

[[Page 109 STAT. 929]]

            ``(1) payment of the rate for the transportation or service 
        involved,
            ``(2) subsequent refund for overpayment of that rate, or
            ``(3) deduction made under section 3726 of title 31,

whichever is later.
    ``(g) Accrual Date.--A claim related to a shipment of property 
accrues under this section on delivery or tender of delivery by the 
carrier.

``Sec. 15906. Liability of pipeline carriers under receipts and bills of 
                        lading

    ``(a) General Liability.--A pipeline carrier providing 
transportation or service subject to this part shall issue a receipt or 
bill of lading for property it receives for transportation under this 
part. That carrier and any other carrier that delivers the property and 
is providing transportation or service subject to jurisdiction under 
this part are liable to the person entitled to recover under the receipt 
or bill of lading. The liability imposed under this subsection is for 
the actual loss or injury to the property caused by the carrier over 
whose line or route the property is transported in the United States or 
from a place in the United States to a place in an adjacent foreign 
country when transported under a through bill of lading. Failure to 
issue a receipt or bill of lading does not affect the liability of a 
carrier.

    ``(b) Apportionment.--The carrier issuing the receipt or bill of 
lading under subsection (a) or delivering the property for which the 
receipt or bill of lading was issued is entitled to recover from the 
carrier over whose line or route the loss or injury occurred the amount 
required to be paid to the owners of the property, as evidenced by a 
receipt, judgment, or transcript, and the amount of its expenses 
reasonably incurred in defending a civil action brought by that person.
    ``(c) Civil Actions.--A civil action under this section may be 
brought against a delivering carrier in a district court of the United 
States or in a State court. Trial, if the action is brought in a 
district court of the United States is in a judicial district, and if in 
a State court, is in a State, through which the defendant carrier 
operates a line or route.
    ``(d) Minimum Period for Filing Claims.--A pipeline carrier may not 
provide by rule, contract, or otherwise, a period of less than 9 months 
for filing a claim against it under this section and a period of less 
than 2 years for bringing a civil action against it under this section. 
The period for bringing a civil action is computed from the date the 
carrier gives a person written notice that the carrier has disallowed 
any part of the claim specified in the notice. For the purposes of this 
subsection--
            ``(1) an offer of compromise shall not constitute a 
        disallowance of any part of the claim unless the carrier, in 
        writing, informs the claimant that such part of the claim is 
        disallowed and provides reasons for such disallowance; and
            ``(2) communications received from a carrier's insurer shall 
        not constitute a disallowance of any part of the claim unless 
        the insurer, in writing, informs the claimant that such part of 
        the claim is disallowed, provides reasons for such disallowance, 
        and informs the claimant that the insurer is acting on behalf of 
        the carrier.

[[Page 109 STAT. 930]]

               ``CHAPTER 161--CIVIL AND CRIMINAL PENALTIES

               ``CHAPTER 161--CIVIL AND CRIMINAL PENALTIES

``Sec.
``16101. General civil penalties.
``16102. Recordkeeping and reporting violations.
``16103. Unlawful disclosure of information.
``16104. Disobedience to subpenas.
``16105. General criminal penalty when specific penalty not provided.
``16106. Punishment of corporation for violations committed by certain 
           individuals.

``Sec. 16101. General civil penalties

    ``(a) General.--Except as otherwise provided in this section, a 
pipeline carrier providing transportation subject to this part, an 
officer or agent of that carrier, or a receiver, trustee, lessee, or 
agent of one of them, knowingly violating this part or an order of the 
Board under this part is liable to the United States for a civil penalty 
of not more than $5,000 for each violation. Liability under this 
subsection is incurred for each distinct violation. A separate violation 
occurs for each day the violation continues.
    ``(b) Recordkeeping and Reporting.--
            ``(1) Records.--A person required under chapter 157 to make, 
        prepare, preserve, or submit to the Board a record concerning 
        transportation subject to this part that does not make, prepare, 
        preserve, or submit that record as required under that chapter, 
        is liable to the United States for a civil penalty of $500 for 
        each violation.
            ``(2) Inspection.--A carrier providing transportation 
        subject to this part, and a lessor, receiver, or trustee of that 
        carrier, violating section 15722, is liable to the United States 
        for a civil penalty of $100 for each violation.
            ``(3) Reports.--A carrier providing transportation subject 
        to the jurisdiction of the Board under this part, a lessor, 
        receiver, or trustee of that carrier, and an officer, agent, or 
        employee of one of them, required to make a report to the Board 
        or answer a question that does not make the report or does not 
        specifically, completely, and truthfully answer the question, is 
        liable to the United States for a civil penalty of $100 for each 
        violation.
            ``(4) Continued violation.--A separate violation occurs for 
        each day violation under this subsection continues.

    ``(d) Venue.--Trial in a civil action under this section is in the 
judicial district in which the carrier has its principal operating 
office.

``Sec. 16102. Recordkeeping and reporting violations

    ``A person required to make a report to the Board, or make, prepare, 
or preserve a record, under chapter 157 about transportation subject to 
this part that knowingly and willfully--
            ``(1) makes a false entry in the report or record,
            ``(2) destroys, mutilates, changes, or by another means 
        falsifies the record,
            ``(3) does not enter business related facts and transactions 
        in the record,
            ``(4) makes, prepares, or preserves the record in violation 
        of a regulation or order of the Board, or
            ``(5) files a false report or record with the Board,

shall be fined under title 18 or imprisoned not more than 2 years, or 
both.

[[Page 109 STAT. 931]]

``Sec. 16103. Unlawful disclosure of information

    ``(a) General Prohibition.--A pipeline carrier providing 
transportation subject to this part, or an officer, agent, or employee 
of that carrier, or another person authorized to receive information 
from that carrier, that knowingly discloses to another person, except 
the shipper or consignee, or a person who solicits or knowingly receives 
information about the nature, kind, quantity, destination, consignee, or 
routing of property tendered or delivered to that carrier for 
transportation provided under this part without the consent of the 
shipper or consignee, if that information may be used to the detriment 
of the shipper or consignee or may disclose improperly, to a competitor 
the business transactions of the shipper or consignee, is liable to the 
United States for a civil penalty of not more than $1,000.
    ``(b) Limitation on Statutory Construction.--This part does not 
prevent a pipeline carrier providing transportation under this part from 
giving information--
            ``(1) in response to legal process issued under authority of 
        a court of the United States or a State;
            ``(2) to an officer, employee, or agent of the United States 
        Government, a State, or a territory or possession of the United 
        States; or
            ``(3) to another carrier or its agent to adjust mutual 
        traffic accounts in the ordinary course of business.

    ``(c) Board Employee.--An employee of the Board delegated to make an 
inspection or examination under section 15722 who knowingly discloses 
information acquired during that inspection or examination, except as 
directed by the Board, a court, or a judge of that court, shall be fined 
under title 18 or imprisoned for not more than 6 months, or both.

``Sec. 16104. Disobedience to subpenas

    ``Whoever does not obey a subpena or requirement of the Board to 
appear and testify or produce records shall be fined under title 18 or 
imprisoned not more than 1 year, or both.

``Sec. 16105. General criminal penalty when specific penalty not 
                        provided

    ``When another criminal penalty is not provided under this chapter, 
a pipeline carrier providing transportation subject to this part, and 
when that carrier is a corporation, a director or officer of the 
corporation, or a receiver, trustee, lessee, or person acting for or 
employed by the corporation that, alone or with another person, 
willfully violates this part or an order prescribed under this part, 
shall be fined under title 18 or imprisoned not more than 2 years, or 
both. A separate violation occurs each day a violation of this part 
continues.

``Sec. 16106. Punishment of corporation for violations committed by 
                        certain individuals

    ``An act or omission that would be a violation of this subtitle if 
committed by a director, officer, receiver, trustee, lessee, agent, or 
employee of a pipeline carrier providing transportation or service 
subject to this part that is a corporation is also a violation of this 
part by that corporation. The penalties of this chapter apply to that 
violation. When acting in the scope of their employment, the actions and 
omissions of individuals acting for or employed

[[Page 109 STAT. 932]]

by that carrier are considered to be the actions and omissions of that 
carrier as well as that individual.''.
    (b) <<NOTE: 49 USC 15101 note.>>  GAO Report.--Within 3 years after 
the effective date of this Act, the Comptroller General shall transmit 
to the Committee on Commerce, Science, and Transportation of the Senate 
and the Committee on Transportation and Infrastructure of the House of 
Representatives a report regarding the impact of regulations under part 
C of title 49, United States Code, on the competitiveness of pipelines 
and recommend whether to continue, revise, or sunset such regulations. 
Congress shall take into account the findings of this report when 
considering the Board's reauthorization.

                 TITLE II--SURFACE TRANSPORTATION BOARD

SEC. 201. TITLE 49 AMENDMENT.

    (a) Amendment.--Subtitle I of title 49, United States Code, is 
amended by adding at the end the following new chapter:

                ``CHAPTER 7--SURFACE TRANSPORTATION BOARD

                      ``SUBCHAPTER I--ESTABLISHMENT

``Sec.
``701. Establishment of Board.
``702. Functions.
``703. Administrative provisions.
``704. Annual report.
``705. Authorization of appropriations.
``706. Reporting official action.

                     ``SUBCHAPTER II--ADMINISTRATIVE

``721. Powers.
``722. Board action.
``723. Service of notice in Board proceedings.
``724. Service of process in court proceedings.
``725. Administrative support.
``726. Railroad-Shipper Transportation Advisory Council.
``727. Definitions.

                      ``SUBCHAPTER I--ESTABLISHMENT

``Sec. 701. Establishment of Board

    ``(a) Establishment.--There is hereby established within the 
Department of Transportation the Surface Transportation Board.
    ``(b) Membership.--(1) <<NOTE: President.>>  The Board shall consist 
of 3 members, to be appointed by the President, by and with the advice 
and consent of the Senate. Not more than 2 members may be appointed from 
the same political party.

    ``(2) At any given time, at least 2 members of the Board shall be 
individuals with professional standing and demonstrated knowledge in the 
fields of transportation or transportation regulation, and at least one 
member shall be an individual with professional or business experience 
(including agriculture) in the private sector.
    ``(3) The term of each member of the Board shall be 5 years and 
shall begin when the term of the predecessor of that member ends. An 
individual appointed to fill a vacancy occurring before the expiration 
of the term for which the predecessor of that individual was appointed, 
shall be appointed for the remainder of that

[[Page 109 STAT. 933]]

term. When the term of office of a member ends, the member may continue 
to serve until a successor is appointed and qualified, but for a period 
not to exceed one year. The President may remove a member for 
inefficiency, neglect of duty, or malfeasance in office.
    ``(4) On the effective date of this section, the members of the 
Interstate Commerce Commission serving unexpired terms on the date of 
the enactment of the ICC Termination Act of 1995 shall become members of 
the Board, to serve for a period of time equal to the remainder of the 
term for which they were originally appointed to the Interstate Commerce 
Commission. Any member of the Interstate Commerce Commission whose term 
expires on December 31, 1995, shall become a member of the Board, 
subject to paragraph (3).
    ``(5) No individual may serve as a member of the Board for more than 
2 terms. In the case of an individual who becomes a member of the Board 
pursuant to paragraph (4), or an individual appointed to fill a vacancy 
occurring before the expiration of the term for which the predecessor of 
that individual was appointed, such individual may not be appointed for 
more than one additional term.
    ``(6) A member of the Board may not have a pecuniary interest in, 
hold an official relation to, or own stock in or bonds of, a carrier 
providing transportation by any mode and may not engage in another 
business, vocation, or employment.
    ``(7) A vacancy in the membership of the Board does not impair the 
right of the remaining members to exercise all of the powers of the 
Board. The Board may designate a member to act as Chairman during any 
period in which there is no Chairman designated by the President.

    ``(c) Chairman.--(1) <<NOTE: President.>>  There shall be at the 
head of the Board a Chairman, who shall be designated by the President 
from among the members of the Board. The Chairman shall receive 
compensation at the rate prescribed for level III of the Executive 
Schedule under section 5314 of title 5.

    ``(2) Subject to the general policies, decisions, findings, and 
determinations of the Board, the Chairman shall be responsible for 
administering the Board. The Chairman may delegate the powers granted 
under this paragraph to an officer, employee, or office of the Board. 
The Chairman shall--
            ``(A) appoint and supervise, other than regular and full-
        time employees in the immediate offices of another member, the 
        officers and employees of the Board, including attorneys to 
        provide legal aid and service to the Board and its members, and 
        to represent the Board in any case in court;
            ``(B) appoint the heads of offices with the approval of the 
        Board;
            ``(C) distribute Board business among officers and employees 
        and offices of the Board;
            ``(D) prepare requests for appropriations for the Board and 
        submit those requests to the President and Congress with the 
        prior approval of the Board; and
            ``(E) supervise the expenditure of funds allocated by the 
        Board for major programs and purposes.

``Sec. 702. Functions

    ``Except as otherwise provided in the ICC Termination Act of 1995, 
or the amendments made thereby, the Board shall perform

[[Page 109 STAT. 934]]

all functions that, immediately before the effective date of such Act, 
were functions of the Interstate Commerce Commission or were performed 
by any officer or employee of the Interstate Commerce Commission in the 
capacity as such officer or employee.

``Sec. 703. Administrative provisions

    ``(a) Executive Reorganization.--Chapter 9 of title 5, United States 
Code, shall apply to the Board in the same manner as it does to an 
independent regulatory agency, and the Board shall be an establishment 
of the United States Government.
    ``(b) Open Meetings.--For purposes of section 552b of title 5, 
United States Code, the Board shall be deemed to be an agency.
    ``(c) Independence.--In the performance of their functions, the 
members, employees, and other personnel of the Board shall not be 
responsible to or subject to the supervision or direction of any 
officer, employee, or agent of any other part of the Department of 
Transportation.

    ``(d) Representation by Attorneys.--Attorneys designated by the 
Chairman of the Board may appear for, and represent the Board in, any 
civil action brought in connection with any function carried out by the 
Board pursuant to this chapter or subtitle IV or as otherwise authorized 
by law.
    ``(e) Admission To Practice.--Subject to section 500 of title 5, the 
Board may regulate the admission of individuals to practice before it 
and may impose a reasonable admission fee.
    ``(f) Budget Requests.--In each annual request for appropriations by 
the President, the Secretary of Transportation shall identify the 
portion thereof intended for the support of the Board and include a 
statement by the Board--
            ``(1) showing the amount requested by the Board in its 
        budgetary presentation to the Secretary and the Office of 
        Management and Budget; and
            ``(2) an assessment of the budgetary needs of the Board.

    ``(g) Direct Transmittal to Congress.--The Board shall transmit to 
Congress copies of budget estimates, requests, and information 
(including personnel needs), legislative recommendations, prepared 
testimony for congressional hearings, and comments on legislation at the 
same time they are sent to the Secretary of Transportation. An officer 
of an agency may not impose conditions on or impair communications by 
the Board with Congress, or a committee or Member of Congress, about the 
information.

``Sec. 704. Annual report

    ``The Board shall annually transmit to the Congress a report on its 
activities.

``Sec. 705. Authorization of appropriations

    ``There are authorized to be appropriated for the activities of the 
Board--
            ``(1) $8,421,000 for fiscal year 1996;
            ``(2) $12,000,000 for fiscal year 1997; and
            ``(3) $12,000,000 for fiscal year 1998.

``Sec. 706. Reporting official action

    ``(a) Reports on Proceedings.--The Board shall make a written report 
of each proceeding conducted on complaint or on its own initiative and 
furnish a copy to each party to that proceeding.

[[Page 109 STAT. 935]]

The report shall include the findings, conclusions, and the order of the 
Board and, if damages are awarded, the findings of fact supporting the 
award. The Board may have its reports published for public use. A 
published report of the Board is competent evidence of its contents.

    ``(b) Special Rules for Matters Related to Rail Carriers.--(1) When 
action of the Board in a matter related to a rail carrier is taken by 
the Board, an individual member of the Board, or another individual or 
group of individuals designated to take official action for the Board, 
the written statement of that action (including a report, order, 
decision and order, vote, notice, letter, policy statement, or 
regulation) shall indicate--
            ``(A) the official designation of the individual or group 
        taking the action;
            ``(B) the name of each individual taking, or participating 
        in taking, the action; and
            ``(C) the vote or position of each participating individual.

    ``(2) If an individual member of a group taking an official action 
referred to in paragraph (1) does not participate in it, the written 
statement of the action shall indicate that the member did not 
participate. An individual participating in taking an official action is 
entitled to express the views of that individual as part of the written 
statement of the action. In addition to any publication of the written 
statement, it shall be made available to the public under section 552(a) 
of title 5.

                     ``SUBCHAPTER II--ADMINISTRATIVE

``Sec. 721. Powers

    ``(a) In General.--The Board shall carry out this chapter and 
subtitle IV. Enumeration of a power of the Board in this chapter or 
subtitle IV does not exclude another power the Board may have in 
carrying out this chapter or subtitle IV. The Board may prescribe 
regulations in carrying out this chapter and subtitle IV.
    ``(b) Inquiries, Reports, and Orders.--The Board may--
            ``(1) inquire into and report on the management of the 
        business of carriers providing transportation and services 
        subject to subtitle IV;
            ``(2) inquire into and report on the management of the 
        business of a person controlling, controlled by, or under common 
        control with those carriers to the extent that the business of 
        that person is related to the management of the business of that 
        carrier;
            ``(3) obtain from those carriers and persons information the 
        Board decides is necessary to carry out subtitle IV; and
            ``(4) when necessary to prevent irreparable harm, issue an 
        appropriate order without regard to subchapter II of chapter 5 
        of title 5.

    ``(c) Subpoena Witnesses.--(1) The Board may subpoena witnesses and 
records related to a proceeding of the Board from any place in the 
United States, to the designated place of the proceeding. If a witness 
disobeys a subpoena, the Board, or a party to a proceeding before the 
Board, may petition a court of the United States to enforce that 
subpoena.
    ``(2) <<NOTE: Courts.>>  The district courts of the United States 
have jurisdiction to enforce a subpoena issued under this section. Trial 
is in the

[[Page 109 STAT. 936]]

district in which the proceeding is conducted. The court may punish a 
refusal to obey a subpoena as a contempt of court.

    ``(d) Depositions.--(1) In a proceeding, the Board may take the 
testimony of a witness by deposition and may order the witness to 
produce records. A party to a proceeding pending before the Board may 
take the testimony of a witness by deposition and may require the 
witness to produce records at any time after a proceeding is at issue on 
petition and answer.
    ``(2) If a witness fails to be deposed or to produce records under 
paragraph (1), the Board may subpoena the witness to take a deposition, 
produce the records, or both.
    ``(3) A deposition may be taken before a judge of a court of the 
United States, a United States magistrate judge, a clerk of a district 
court, or a chancellor, justice, or judge of a supreme or superior 
court, mayor or chief magistrate of a city, judge of a county court, or 
court of common pleas of any State, or a notary public who is not 
counsel or attorney of a party or interested in the proceeding.
    ``(4) Before taking a deposition, reasonable notice must be given in 
writing by the party or the attorney of that party proposing to take a 
deposition to the opposing party or the attorney of record of that 
party, whoever is nearest. The notice shall state the name of the 
witness and the time and place of taking the deposition.
    ``(5) The testimony of a person deposed under this subsection shall 
be taken under oath. The person taking the deposition shall prepare, or 
cause to be prepared, a transcript of the testimony taken. The 
transcript shall be subscribed by the deponent.
    ``(6) The testimony of a witness who is in a foreign country may be 
taken by deposition before an officer or person designated by the Board 
or agreed on by the parties by written stipulation filed with the Board. 
A deposition shall be filed with the Board promptly.
    ``(e) Witness Fees.--Each witness summoned before the Board or whose 
deposition is taken under this section and the individual taking the 
deposition are entitled to the same fees and mileage paid for those 
services in the courts of the United States.

``Sec. 722. Board action

    ``(a) Effective Date of Actions.--Unless otherwise provided in 
subtitle IV, the Board may determine, within a reasonable time, when its 
actions, other than an action ordering the payment of money, take 
effect.
    ``(b) Terminating and Changing Actions.--An action of the Board 
remains in effect under its own terms or until superseded. The Board may 
change, suspend, or set aside any such action on notice. Notice may be 
given in a manner determined by the Board. A court of competent 
jurisdiction may suspend or set aside any such action.
    ``(c) Reconsidering Actions.--The Board may, at any time on its own 
initiative because of material error, new evidence, or substantially 
changed circumstances--
            ``(1) reopen a proceeding;
            ``(2) grant rehearing, reargument, or reconsideration of an 
        action of the Board; or
            ``(3) change an action of the Board.

An interested party may petition to reopen and reconsider an action of 
the Board under this subsection under regulations of the Board.

[[Page 109 STAT. 937]]

    ``(d) Finality of Actions.--Notwithstanding subtitle IV, an action 
of the Board under this section is final on the date on which it is 
served, and a civil action to enforce, enjoin, suspend, or set aside the 
action may be filed after that date.

``Sec. 723. Service of notice in Board proceedings

    ``(a) Designation of Agent.--A carrier providing transportation 
subject to the jurisdiction of the Board under subtitle IV shall 
designate an agent in the District of Columbia, on whom service of 
notices in a proceeding before, and of actions of, the Board may be 
made.
    ``(b) Filing and Changing Designations.--A designation under 
subsection (a) shall be in writing and filed with the Board. The 
designation may be changed at any time in the same manner as originally 
made.
    ``(c) Service of Notice.--Except as otherwise provided, notices of 
the Board shall be served on its designated agent at the office or usual 
place of residence in the District of Columbia of that agent. A notice 
of action of the Board shall be served immediately on the agent or in 
another manner provided by law. If that carrier does not have a 
designated agent, service may be made by posting the notice in the 
office of the Board.
    ``(d) Special Rule for Rail Carriers.--In a proceeding involving the 
lawfulness of classifications, rates, or practices of a rail carrier 
that has not designated an agent under this section, service of notice 
of the Board on an attorney in fact for the carrier constitutes service 
of notice on the carrier.

``Sec. 724. Service of process in court proceedings

    ``(a) Designation of Agent.--A carrier providing transportation 
subject to the jurisdiction of the Board under subtitle IV shall 
designate an agent in the District of Columbia on whom service of 
process in an action before a district court may be made. Except as 
otherwise provided, process in an action before a district court shall 
be served on the designated agent of that carrier at the office or usual 
place of residence in the District of Columbia of that agent. If the 
carrier does not have a designated agent, service may be made by posting 
the notice in the office of the Board.
    ``(b) Changing Designation.--A designation under this section may be 
changed at any time in the same manner as originally made.

``Sec. 725. Administrative support

    ``The Secretary of Transportation shall provide administrative 
support for the Board.

``Sec. 726. Railroad-Shipper Transportation Advisory Council

    ``(a) Establishment; Membership.--There is established the Railroad-
Shipper Transportation Advisory Council (in this section referred to as 
the `Council') to be composed of 19 members, of which 15 members shall 
be appointed by the Chairman of the Board, after recommendation from 
rail carriers and shippers, within 60 days after the date of enactment 
of the ICC Termination Act of 1995. The members of the Council shall be 
appointed as follows:
            ``(1) The members of the Council shall be appointed from 
        among citizens of the United States who are not regular full-

[[Page 109 STAT. 938]]

        time employees of the United States and shall be selected for 
        appointment so as to provide as nearly as practicable a broad 
        representation of the various segments of the railroad and rail 
        shipper industries.
            ``(2) Nine of the members shall be appointed from senior 
        executive officers of organizations engaged in the railroad and 
        rail shipping industries, which 9 members shall be the voting 
        members of the Council. Council action and Council positions 
        shall be determined by a majority vote of the members present. A 
        majority of such voting members shall constitute a quorum. Of 
        such 9 voting members--
                    ``(A) at least 4 shall be representative of small 
                shippers (as determined by the Chairman); and
                    ``(B) at least 4 shall be representative of Class II 
                or III railroads.
            ``(3) The remaining 6 members of the Council shall serve in 
        a nonvoting advisory capacity only, but shall be entitled to 
        participate in Council deliberations. Of the remaining members--
                    ``(A) 3 shall be representative of Class I 
                railroads; and
                    ``(B) 3 shall be representative of large shipper 
                organizations (as determined by the Chairman).
            ``(4) The Secretary of Transportation and the members of the 
        Board shall serve as ex officio, nonvoting members of the 
        Council. The Council shall not be subject to the Federal 
        Advisory Committee Act. A list of the members appointed to the 
        Council shall be forwarded to the Chairmen and ranking members 
        of the Committee on Commerce, Science, and Transportation of the 
        Senate and the Committee on Transportation and Infrastructure of 
        the House of Representatives.
            ``(5) Each ex officio member of the Council may designate an 
        alternate, who shall serve as a member of the Council whenever 
        the ex officio member is unable to attend a meeting of the 
        Council. Any such designated alternate shall be selected from 
        individuals who exercise significant decision-making authority 
        in the Federal agency involved.

    ``(b) Term of Office.--The members of the Council shall be appointed 
for a term of office of 3 years, except that of the members first 
appointed--
            ``(1) 5 members shall be appointed for terms of 1 year; and
            ``(2) 5 members shall be appointed for terms of 2 years,

as designated by the Chairman at the time of appointment. Any member 
appointed to fill a vacancy occurring before the expiration of the term 
for which the member's predecessor was appointed shall be appointed only 
for the remainder of such term. A member may serve after the expiration 
of his term until his successor has taken office. Vacancies on the 
Council shall be filled in the same manner in which the original 
appointments were made. No member of the Council shall be eligible to 
serve in excess of two consecutive terms.
    ``(c) Election and Duties of Officers.--The Council Chairman and 
Vice Chairman and other appropriate officers of the Council shall be 
elected by and from the voting members of the Council. The Council 
Chairman shall serve as the Council's executive officer and shall direct 
the administration of the Council, assign officer

[[Page 109 STAT. 939]]

and committee duties, and shall be responsible for issuing and 
communicating the reports, policy positions and statements of the 
Council. In the event that the Council Chairman is unable to serve, the 
Vice Chairman shall act as Council Chairman.
    ``(d) Expenses.--(1) The members of the Council shall receive no 
compensation for their services as such, but upon request by the Council 
Chairman, based on a showing of significant economic burden, the 
Secretary of Transportation or the Chairman of the Board, to the extent 
provided in advance in appropriation Acts, may provide reasonable and 
necessary travel expenses for such individual Council members from 
Department or Board funding sources in order to foster balanced 
representation on the Council.
    ``(2) Upon request by the Council Chairman, the Secretary or 
Chairman of the Board, to the extent provided in advance in 
appropriations Acts, may pay the reasonable and necessary expenses 
incurred by the Council in connection with the coordination of Council 
activities, announcement and reporting of meetings, and preparation of 
such Council documents as are required or permitted by this section.
    ``(3) The Council may solicit and use private funding for its 
activities, subject to this subsection.
    ``(4) Prior to making any Federal funding requests, the Council 
Chairman shall undertake best efforts to fund such activities privately 
unless the Council Chairman determines that such private funding would 
create a conflict of interest, or the appearance thereof, or is 
otherwise impractical. The Council Chairman shall not request funding 
from any Federal agency without providing written justification as to 
why private funding would create any such conflict or appearance, or is 
otherwise impractical.
    ``(5) To enable the Council to carry out its functions--
            ``(A) the Council Chairman may request directly from any 
        Federal agency such personnel, information, services, or 
        facilities, on a compensated or uncompensated basis, as the 
        Council Chairman determines necessary to carry out the functions 
        of the Council;
            ``(B) each Federal agency may, in its discretion, furnish 
        the Council with such information, services,
and facilities as the Council Chairman may request to the extent 
permitted by law and within the limits of available funds; and
            ``(C) each Federal agency may, in its discretion, detail to 
        temporary duty with the Council, such personnel as the Council 
        Chairman may request for carrying out the functions of the 
        Council, each such detail to be without loss of seniority, pay, 
        or other employee status.

    ``(e) Meetings.--The Council shall meet at least semi-annually and 
shall hold other meetings at the call of the Council Chairman. 
Appropriate Federal facilities, where available, may be used for such 
meetings. Whenever the Council, or a committee of the Council, considers 
matters that affect the jurisdictional interests of Federal agencies 
that are not represented on the Council, the Council Chairman may invite 
the heads of such agencies, or their designees, to participate in the 
deliberations of the Council.
    ``(f) Functions and Duties; Annual Report.--(1) The Council shall 
advise the Secretary, the Chairman, the Committee on Commerce, Science, 
and Transportation of the Senate, and the Committee on Transportation 
and Infrastructure of the House of Representatives with respect to rail 
transportation policy issues

[[Page 109 STAT. 940]]

it considers significant, with particular attention to issues of 
importance to small shippers and small railroads, including car supply, 
rates, competition, and effective procedures for addressing legitimate 
shipper and other claims.
    ``(2) To the extent the Council addresses specific grain car issues, 
it shall coordinate such activities with the National Grain Car Council. 
The Secretary and Chairman shall cooperate with the Council to provide 
research, technical and other reasonable support in developing any 
reports and policy statements required or authorized by this subsection.
    ``(3) The Council shall endeavor to develop within the private 
sector mechanisms to prevent, or identify and effectively address, 
obstacles to the most effective and efficient transportation system 
practicable.
    ``(4) The Council shall prepare an annual report concerning its 
activities and the results of Council efforts to resolve industry 
issues, and propose whatever regulatory or legislative relief it 
considers appropriate. The Council shall include in the annual report 
such recommendations as it considers appropriate with respect to the 
performance of the Secretary and Chairman under this chapter, and with 
respect to the operation and effectiveness of meetings and industry 
developments relating to the Council's efforts, and such other 
information as it considers appropriate. Such annual reports shall be 
reviewed by the Secretary and Chairman, and shall include the 
Secretary's and Chairman's views or comments relating to--
            ``(A) the accuracy of information therein;
            ``(B) Council efforts and reasonableness of Council 
        positions and actions; and
            ``(C) any other aspects of the Council's work as they may 
        consider appropriate.

The Council may prepare other reports or develop policy statements as 
the Council considers appropriate. An annual report shall be submitted 
for each fiscal year and shall be submitted to the Secretary and 
Chairman within 90 days after the end of the fiscal year. Other such 
reports and statements may be submitted as the Council considers 
appropriate.

``Sec. 727. Definitions

    ``All terms used in this chapter that are defined in subtitle IV 
shall have the meaning given those terms in that subtitle.''.

    (b) Table of Chapters Amendment.--The table of chapters of subtitle 
I of title 49, United States Code, is amended by adding at the end the 
following new item:

            SURFACE TRANSPORTATION BOARD                          701''.

SEC. 202. <<NOTE: 49 USC 701 note.>>  REORGANIZATION.

    The Chairman of the Surface Transportation Board (in this Act 
referred to as the ``Board'') may allocate or reallocate any function of 
the Board, consistent with this title and subchapter I of chapter 7, as 
amended by section 201 of this title, among the members or employees of 
the Board, and may establish, consolidate, alter, or discontinue in the 
Board any organizational entities that were entities of the Interstate 
Commerce Commission, as the Chairman considers necessary or appropriate.

[[Page 109 STAT. 941]]

SEC. 203. <<NOTE: 49 USC 701 note.>>  TRANSFER OF ASSETS AND PERSONNEL.

    (a) To Board.--Except as otherwise provided in this Act and the 
amendments made by this Act, those personnel, property, and records 
employed, used, held, available, or to be made available in connection 
with a function transferred to the Board by this Act shall be 
transferred to the Board for use in connection with the functions 
transferred, and unexpended balances of appropriations, allocations, and 
other funds of the Interstate Commerce Commission shall also be 
transferred to the Board. Such unexpended balances, allocations, and 
other funds, together with any unobligated balances from user fees 
collected by the Commission during fiscal year 1996, may be used to pay 
for the closedown of the Commission and severance costs for Commission 
personnel, regardless of whether those costs are incurred at the 
Commission or at the Board.

    (b) To Secretary.--Except as otherwise provided in this Act and the 
amendments made by this Act, those personnel, property, and records 
employed, used, held, available, or to be made available in connection 
with a function transferred to the Secretary by this Act shall be 
transferred to the Secretary for use in connection with the functions 
transferred.
    (c) Separated Employees.--Notwithstanding all other laws and 
regulations, the Department of Transportation shall place all Interstate 
Commerce Commission employees separated from the Commission as a result 
of this Act on the DOT reemployment priority list (competitive service) 
or the priority employment list (excepted service).

SEC. 204. <<NOTE: 49 USC 701 note.>>  SAVING PROVISIONS.

    (a) Legal Documents.--All orders, determinations, rules, 
regulations, permits, grants, loans, contracts, agreements, 
certificates, licenses, and privileges--
            (1) that have been issued, made, granted, or allowed to 
        become effective by the Interstate Commerce Commission, any 
        officer or employee of the Interstate Commerce Commission, or 
        any other Government official, or by a court of competent 
        jurisdiction, in the performance of any function that is 
        transferred by this Act or the amendments made by this Act; and
            (2) that are in effect on the effective date of such 
        transfer (or become effective after such date pursuant to their 
        terms as in effect on such effective date),

shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with law by 
the Board, any other authorized official, a court of competent 
jurisdiction, or operation of law. The Board shall promptly rescind all 
regulations established by the Interstate Commerce Commission that are 
based on provisions of law repealed and not substantively reenacted by 
this Act.
    (b) Proceedings.--(1) The provisions of this Act shall not affect 
any proceedings or any application for any license pending before the 
Interstate Commerce Commission at the time this Act takes effect, 
insofar as those functions are retained and transferred by this Act; but 
such proceedings and applications, to the extent that they relate to 
functions so transferred, shall be continued. Orders shall be issued in 
such proceedings, appeals shall be taken therefrom, and payments shall 
be made pursuant to such orders, as if this Act had not been enacted; 
and orders issued in any such

[[Page 109 STAT. 942]]

proceedings shall continue in effect until modified, terminated, 
superseded, or revoked by a duly authorized official, by a court of 
competent jurisdiction, or by operation of law. Nothing in this 
subsection shall be deemed to prohibit the discontinuance or 
modification of any such proceeding under the same terms and conditions 
and to the same extent that such proceeding could have been discontinued 
or modified if this Act had not been enacted.
    (2) The Board and the Secretary are authorized to provide for the 
orderly transfer of pending proceedings from the Interstate Commerce 
Commission.

    (3)(A) Except as provided in subparagraphs (B) and (C), in the case 
of a proceeding under a provision of law repeal, and not reenacted, by 
this Act such proceeding shall be terminated.
    (B) Any proceeding involving a pipeline carrier under subtitle IV of 
title 49, United States Code, shall be continued to be heard by the 
Board under such subtitle, as in effect on the day before the effective 
date of this section, until completion of such proceeding.
    (C) Any proceeding involving the merger of a motor carrier property 
under subtitle IV of title 49, United States Code, shall continue to be 
heard by the Board under such subtitle, as in effect on the day before 
the effective date of this section, until completion of such proceeding.
    (4) Any proceeding with respect to any tariff, rate charge, 
classification, rule, regulation, or service that was pending under the 
Intercoastal Shipping Act, 1933 or the Shipping Act, 1916 before the 
Federal Maritime Commission on November 1, 1995, shall continue to be 
heard until completion or issuance of a final order thereon under all 
applicable laws in effect as of November 1, 1995.
    (c) Suits.--(1) This Act shall not affect suits commenced before the 
date of the enactment of this Act, except as provided in paragraphs (2) 
and (3). In all such suits, proceeding shall be had, appeals taken, and 
judgments rendered in the same manner and with the same effect as if 
this Act had not been enacted.
    (2) Any suit by or against the Interstate Commerce Commission begun 
before the effective date of this Act shall be continued, insofar as it 
involves a function retained and transferred under this Act, with the 
Board (to the extent the suit involves functions transferred to the 
Board under this Act) or the Secretary (to the extent the suit involves 
functions transferred to the Secretary under this Act) substituted for 
the Commission.
    (3) If the court in a suit described in paragraph (1) remands a case 
to the Board or the Secretary, subsequent
proceedings related to such case shall proceed in accordance with 
applicable law and regulations as in effect at the time of such 
subsequent proceedings.

    (d) Continuance of Actions Against Officers.--No suit, action, or 
other proceeding commenced by or against any officer in his official 
capacity as an officer of the Interstate Commerce Commission shall abate 
by reason of the enactment of this Act. No cause of action by or against 
the Interstate Commerce Commission, or by or against any officer thereof 
in his official capacity, shall abate by reason of enactment of this 
Act.
    (e) Exercise of Authorities.--Except as otherwise provided by law, 
an officer or employee of the Board may, for purposes of performing a 
function transferred by this Act or the amendments made by this Act, 
exercise all authorities under any other provision of law that were 
available with respect to the performance of

[[Page 109 STAT. 943]]

that function to the official responsible for the performance of the 
function immediately before the effective date of the transfer of the 
function under this Act or the amendments made by this Act.

SEC. 205. <<NOTE: 49 USC 701 note.>>  REFERENCES.

    Any reference to the Interstate Commerce Commission in any other 
Federal law, Executive order, rule, regulation, or delegation of 
authority, or any document of or pertaining to the Interstate Commerce 
Commission or an officer or employee of the Interstate Commerce 
Commission, is deemed to refer to the Board, a member or employee of the 
Board, or the Secretary, as appropriate.

                    TITLE III--CONFORMING AMENDMENTS

              Subtitle A--Amendments to United States Code

SEC. 301. TITLE 5 AMENDMENTS.

    (a) Compensation for Positions at Level III.--Section 5314 of title 
5, United States Code, is amended by striking ``Chairman, Interstate 
Commerce Commission.'' and inserting in lieu thereof ``Chairman, Surface 
Transportation Board.''.

    (b) Compensation for Positions at Level IV.--Section 5315 of title 
5, United States Code, is amended by striking ``Members, Interstate 
Commerce Commission.'' and inserting in lieu thereof ``Members, Surface 
Transportation Board.''.

SEC. 302. TITLE 11 AMENDMENTS.

    Subchapter IV of chapter 11 of title 11, United States Code, is 
amended--
            (1) by striking section 1162 and inserting in lieu thereof 
        the following:

``Sec. 1162. Definition

    ``In this subchapter, `Board' means the `Surface Transportation 
Board'.''; and
            (2) <<NOTE: 11 USC 1164, 1170, 1172.>>  by striking 
        ``Commission'' each place it appears and inserting in lieu 
        thereof ``Board''.

SEC. 303. TITLE 18 AMENDMENTS.

    Title 18, United States Code, is amended--
            (1) in section 921(a)(27) by striking ``10102'' and 
        inserting in lieu thereof ``13102''; and
            (2) in section 6001(1) by striking ``Interstate Commerce 
        Commission'' and inserting in lieu thereof ``Surface 
        Transportation Board''.

SEC. 304. INTERNAL REVENUE CODE OF 1986 AMENDMENTS.

    (a) Section 168.--Section 168(g)(4)(B)(i) of the Internal Revenue 
Code of 1986 <<NOTE: 26 USC 168.>>  is amended by striking ``domestic 
railroad corporation providing transportation subject to subchapter I of 
chapter 105'' and inserting in lieu thereof ``rail carrier subject to 
part A of subtitle IV''.

    (b) Section 281.--Subparagraphs (A) and (B) of section 281(d)(1) of 
such Code <<NOTE: 26 USC 281.>>  are each amended by striking ``domestic

[[Page 109 STAT. 944]]

railroad corporations providing transportation subject to subchapter I 
of chapter 105'' and inserting in lieu thereof ``rail carriers subject 
to part A of subtitle IV''.

    (c) Section 354.--Section 354(c) of such Code <<NOTE: 26 USC 354.>>  
is amended by striking ``or approved by the Interstate Commerce 
Commission under subchapter IV of chapter 113 of title 49,''.

    (d) Section 3231.--Section 3231 of such Code <<NOTE: 26 USC 3231.>>  
is amended--
            (1) in subsection (a) by striking ``Interstate Commerce 
        Commission'' and inserting in lieu thereof ``Surface 
        Transportation Board''; and
            (2) in subsection (g) by striking ``an express carrier, 
        sleeping car carrier, or rail carrier providing transportation 
        subject to subchapter I of chapter 105'' and inserting in lieu 
        thereof ``a rail carrier subject to part A of subtitle IV''.

    (e) Section 7701.--Section 7701(a) of such Code <<NOTE: 26 USC 
7701.>>  is amended--
            (1) in paragraph (33)(B) by striking ``Federal Power 
        Commission'' and inserting in lieu thereof ``Federal Energy 
        Regulatory Commission'';
            (2) in paragraph (33)(C)(i) by striking ``Interstate 
        Commerce Commission'' and inserting in lieu thereof ``Surface 
        Transportation Board'';
            (3) in paragraph (33)(C)(ii) by striking ``Interstate 
        Commerce Commission'' and inserting in lieu thereof ``Federal 
        Energy Regulatory Commission'';
            (4) in paragraph (33)(F) by striking ``common carrier'' and 
        all that follows through ``1933'' and inserting in lieu thereof 
        ``a water carrier subject to jurisdiction under subchapter II of 
        chapter 135 of title 49'';
            (5) in paragraph (33)(G) by striking ``railroad corporation 
        subject to subchapter I of chapter 105'' and inserting in lieu 
        thereof ``rail carrier subject to part A of subtitle IV''; and
            (6) in paragraph (33)(H) by striking ``subchapter I of 
        chapter 105'' and inserting in lieu thereof ``part A of subtitle 
        IV''.

SEC. 305. TITLE 28 AMENDMENTS.

    (a) Chapter 85.--Chapter 85 of title 28, United States Code, is 
amended--
            (1) in the section heading to section 1336 by striking 
        ``Interstate Commerce Commission's'' and inserting in lieu 
        thereof ``Surface Transportation Board's'';
            (2) in section 1336 by striking ``Interstate Commerce 
        Commission'' each place it appears and inserting in lieu thereof 
        ``Surface Transportation Board'';
            (3) in section 1337 by striking ``11707'' each place it 
        appears and inserting in lieu thereof ``11706 or 14706''; and
            (4) in the item relating to section 1336 of the table of 
        sections by striking ``Interstate Commerce Commission's'' and 
        inserting in lieu thereof ``Surface Transportation Board's''.

    (b) Section 1445.--Section 1445(b) of such title is amended--
            (1) by striking ``common''; and
            (2) by striking ``11707'' and inserting in lieu thereof 
        ``11706 or 14706''.

    (c) Chapter 157 Amendments.--
            (1) In general.--Chapter 157 of such title is amended--
                    (A) by striking ``INTERSTATE COMMERCE COMMISSION'' 
                in the chapter heading and inserting in lieu thereof 
                ``SURFACE TRANSPORTATION BOARD'';

[[Page 109 STAT. 945]]

                    (B) by striking ``Commission's'' in the section 
                heading to section 2321 and inserting in lieu thereof 
                ``Board's'';
                    (C) <<NOTE: 28 USC 2321, 2323.>>  by striking 
                ``Interstate Commerce Commission'' each place it appears 
                and inserting in lieu thereof ``Surface Transportation 
                Board'';
                    (D) in section 2323 by striking ``Commission'' the 
                second and third places it appears and inserting in lieu 
                thereof ``Board''; and
                    (E) in the item relating to section 2321 of the 
                table of sections by striking ``Commission's'' and 
                inserting in lieu thereof ``Board's''.
            (2) Table of chapters.--The item relating to chapter 157 in 
        the table of chapters of such title is amended by striking 
        ``Interstate Commerce Commission'' and inserting in lieu thereof 
        ``Surface Transportation Board''.

    (d) Chapter 158 Amendments.--Chapter 158 of such title is amended--
            (1) in section 2341(3)(A) by striking ``the Interstate 
        Commerce Commission,'';
            (2) by striking ``and'' at the end of section 2341(3)(C);
            (3) by striking the period at the end of section 2341(3)(D) 
        and inserting in lieu thereof ``; and'';
            (4) by inserting at the end of section 2341(3) the following 
        new subparagraph:
                    ``(E) the Board, when the order was entered by the 
                Surface Transportation Board.'';
            (5) in section 2342(3)(A) by striking ``41, or 43'' and 
        inserting in lieu thereof ``or 41'';
            (6) by inserting ``or pursuant to part B or (C) of subtitle 
        IV of title 49'' before the semicolon at the end of section 
        2342(3)(A);
            (7) in section 2342(3)(B)--
                    (A) by striking clauses (i) and (iii); and
                    (B) by redesignating clauses (ii), (iv), and (v) as 
                clauses (i), (ii), and (iii), respectively; and
            (8) by striking paragraph (5) of section 2342 and inserting 
        in lieu thereof the following:
            ``(5) all rules, regulations, or final orders of the Surface 
        Transportation Board made reviewable by section 2321 of this 
        title;''.

SEC. 306. TITLE 31 AMENDMENTS.

    Section 3726(b) of title 31, United States Code, is amended--
            (1) in paragraph (1) by striking ``on file with the 
        Interstate Commerce Commission,'' and inserting in lieu thereof 
        ``under title 49 or on file with'';
            (2) in paragraph (1) by striking ``or'' at the end;
            (3) by redesignating paragraph (2) as paragraph (3);
            (4) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) a lawfully quoted rate subject to the jurisdiction of 
        the Surface Transportation Board; or''; and
            (5) in paragraph (3), as redesignated by paragraph (4) of 
        this section, by striking ``sections 10721-10724'' and inserting 
        in lieu thereof ``sections 10721, 13712, and 15504''.

SEC. 307. TITLE 39 AMENDMENTS.

    Title 39, United States Code, is amended--

[[Page 109 STAT. 946]]

            (1) in section 5005(a)(4) by striking ``5201(7)'' and 
        inserting in lieu thereof ``5201(6)'';
            (2) in section 5005(b)(3) by striking ``Interstate Commerce 
        Commission'' and inserting in lieu thereof ``Surface 
        Transportation Board''; and
            (3) by striking paragraph (1) of section 5201 and inserting 
        in lieu thereof the following:
            ``(1) `Board' means the Surface Transportation Board;'';
            (4) in section 5201(2) by striking ``a motor common carrier, 
        or express carrier'' and inserting in lieu thereof ``or a motor 
        carrier'';
            (5) in section 5201(4)--
                    (A) by striking ``common''; and
                    (B) by striking ``permit'' and inserting in lieu 
                thereof ``registration'';
            (6) in section 5201(5)--
                    (A) by striking ``common'' each place it appears;
                    (B) by striking ``10102(14)'' and inserting in lieu 
                thereof ``13102(12)''; and
                    (C) by striking ``certificate of public convenience 
                and necessity'' and inserting in lieu thereof 
                ``registration'';
            (7) by striking paragraph (6) of section 5201;
            (8) in section 5201 by redesignating paragraphs (7) and (8) 
        as paragraphs (6) and (7), respectively;
            (9) in section 5201(6), as so redesignated, by striking 
        ``certificate of public convenience and necessity'' and 
        inserting in lieu thereof ``certificate or registration'';
            (10) in section 5203(f) by striking ``motor common carrier'' 
        each place it appears and inserting in lieu thereof ``motor 
        carrier'';
            (11) in the section heading to section 5207 by striking 
        ``Interstate Commerce Commission'' and inserting in lieu thereof 
        ``Surface Transportation Board'';
            (12) in sections 5208(a) and 5215(a) by striking 
        ``Commission's'' and inserting in lieu thereof ``Board's'';
            (13) in section 5215(a) by striking ``motor common carrier'' 
        and inserting in lieu thereof ``motor carrier'';
            (14) <<NOTE: 39 USC 5201, 5203, 5207-5209, 5212, 5215.>>  in 
        chapter 52 by striking ``Commission'' each place it appears and 
        inserting in lieu thereof ``Board''; and
            (15) in the item relating to section 5207 of the table of 
        sections of chapter 52, by striking ``Interstate Commerce 
        Commission'' and inserting in lieu thereof ``Surface 
        Transportation Board''.

SEC. 308. TITLE 49 AMENDMENTS.

    (a) Section 302.--Section 302(a) of title 49, United States Code, is 
amended by striking ``10101a'' and inserting in lieu thereof ``13101''.
    (b) Section 333.--Section 333 of such title is amended--
            (1) in subsection (c)(2) by striking ``11910(a)(1)'' and 
        inserting in lieu thereof ``11904''; and
            (2) in subsection (e)--
                    (A) by striking ``11343(a)'' and inserting in lieu 
                thereof ``11323(a)''; and
                    (B) by striking ``11344(b)'' and inserting in lieu 
                thereof ``11324(b)''.

[[Page 109 STAT. 947]]

    (c) Chapter 5.--Subchapter I of chapter 5 of such title is amended--
            (1) by striking ``DUTIES'' the first place it appears in the 
        subchapter heading; and
            (2) in section 501(a)(1) by striking ``section 10102'' and 
        inserting in lieu thereof ``sections 10102 and 13102''.

    (d) Section 5102.--Section 5102(7) of such title is amended--
            (1) by striking ``common'';
            (2) by striking ``motor contract carrier,''; and
            (3) by striking ``10102'' and inserting in lieu thereof 
        ``13102''.

    (e) Section 5333.--Section 5333(b)(3) of such title is amended by 
striking ``11347'' and inserting in lieu thereof ``11326''.
    (f) Chapter 221.--Chapter 221 of such title is amended--
            (1) in section 22101(a) by striking ``subchapter I of 
        chapter 105'' and inserting in lieu thereof ``part A of subtitle 
        IV'';
            (2) in section 22101(a)(1) by striking ``Interstate Commerce 
        Commission'' and inserting in lieu thereof ``Surface 
        Transportation Board'';
            (3) in section 22103(b)(1) by striking ``Interstate Commerce 
        Commission'' and inserting in lieu thereof ``Surface 
        Transportation Board'';
            (4) in section 22107(c)--
                    (A) by striking ``Interstate Commerce Commission'' 
                and inserting in lieu thereof ``Surface Transportation 
                Board''; and
                    (B) by striking ``Commission'' the second place it 
                appears and inserting in lieu thereof ``Board''; and
            (5) in section 22107(d) by striking ``subchapter I of 
        chapter 105'' and inserting in lieu thereof ``part A of subtitle 
        IV''.

    (g) Section 24301.--Section 24301 of such title is amended--
            (1) in subsection (c)--
                    (A) by striking ``Subtitle IV'' in paragraph (1) and 
                inserting in lieu thereof ``Part A of subtitle IV'';
                    (B) by striking ``sections 10721-10724 of this title 
                apply'' in paragraph (2)(A) and inserting in lieu 
                thereof ``section 10721 of this title applies''; and
                    (C) by striking ``Interstate Commerce Commission 
                under any provision of subtitle IV of this title 
                applicable to a carrier subject to subchapter I of 
                chapter 105'' in paragraph (2)(B) and inserting in lieu 
                thereof ``Surface Transportation Board under part A of 
                subtitle IV''; and
            (2) in subsection (d) by striking ``common carrier subject 
        to subchapter I of chapter 105'' and inserting in lieu thereof 
        ``rail carrier subject to part A of subtitle IV''.

    (h) Section 24501.--Section 24501(b) of such title is amended by 
striking ``subchapter I of chapter 105'' and inserting in lieu thereof 
``part A of subtitle IV''.
    (i) Section 24705.--Section 24705 of such title is amended by 
striking subsection (d).
    (j) Sections 30103 and 30166.--Sections 30103(a) and 30106(d) of 
such title <<NOTE: 49 USC 30166.>>  are each amended by striking 
``subchapter II of chapter 105'' each place it appears and inserting in 
lieu thereof ``subchapter I of chapter 135''.

    (k) Chapter 315.--Chapter 315 of such title is amended--
            (1) in section 31501(2) by striking ``10102'' and inserting 
        in lieu thereof ``13102'';

[[Page 109 STAT. 948]]

            (2) in section 31501(3)(A) by striking ``10521(a)'' and 
        inserting in lieu thereof ``13501'';
            (3) in section 31502(a)(1) by striking ``10521 and 10522'' 
        by inserting in lieu thereof ``13501 and 13502''; and
            (4) in section 31503(a) by striking ``subchapter II of 
        chapter 105'' and inserting in lieu thereof ``subchapter I of 
        chapter 135''.

    (l) Sections 41309 and 41502.--Sections 41309(b)(2)(A) and 41502 of 
such title are each amended by striking ``common'' each place it 
appears.
    (m) Section 60115.--Section 60115(b)(4)(A) of such title is amended 
by striking ``(referred to in section 10344(f) of this title)''.

                      Subtitle B--Other Amendments

SEC. 311. AGRICULTURAL ADJUSTMENT ACT OF 1938 AMENDMENTS.

    Section 201 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1291) is amended--
            (1) by striking ``Interstate Commerce Commission'' each 
        place it appears and inserting in lieu thereof ``Surface 
        Transportation Board'';
            (2) by striking ``Commission'' each place it appears (other 
        than a place to which paragraph (1) applies) and inserting in 
        lieu thereof ``Board''; and
            (3) by striking ``Commission's'' in subsection (b) and 
        inserting in lieu thereof ``Board's''.

SEC. 312. ANIMAL WELFARE ACT AMENDMENT.

    Section 15(a) of the Animal Welfare Act (7 U.S.C. 2145(a)) is 
amended by striking ``Interstate Commerce Commission'' and inserting in 
lieu thereof ``Surface Transportation Board''.

SEC. 313. FEDERAL ELECTION CAMPAIGN ACT OF 1971 AMENDMENTS.

    Section 401 of the Federal Election Campaign Act of 1971 <<NOTE: 2 
USC 451.>>  is amended--
            (1) by striking ``Interstate Commerce Commission shall each 
        promulgate, within ninety days after the date of enactment of 
        this Act'' and inserting in lieu thereof ``Surface 
        Transportation Board shall each maintain''; and
            (2) by inserting ``or Board'' after ``or such Commission''.

SEC. 314. FAIR CREDIT REPORTING ACT AMENDMENT.

    Section 621(b)(4) of the Fair Credit Reporting Act (15 U.S.C. 
1681s(b)(4)) is amended by striking ``Interstate Commerce Commission 
with respect to any common carrier subject to those Acts'' and inserting 
in lieu thereof ``Secretary of Transportation, with respect to all 
carriers subject to the jurisdiction of the Surface Transportation 
Board''.

SEC. 315. EQUAL CREDIT OPPORTUNITY ACT AMENDMENT.

    Section 704(a)(4) of the Equal Credit Opportunity Act (15 U.S.C. 
1691c(a)(4)) is amended by striking ``Interstate Commerce Commission 
with respect to any common carrier subject to those Acts'' and inserting 
in lieu thereof ``Secretary of Transportation, with respect to all 
carriers subject to the jurisdiction of the Surface Transportation 
Board''.

[[Page 109 STAT. 949]]

SEC. 316. FAIR DEBT COLLECTION PRACTICES ACT AMENDMENT.

    Section 814(b)(4) of the Fair Debt Collection Practices Act (15 
U.S.C. 1692l(b)(4)) is amended by striking ``Interstate Commerce 
Commission with respect to any common carrier subject to those Acts'' 
and inserting in lieu thereof ``Secretary of Transportation, with 
respect to all carriers subject to the jurisdiction of the Surface 
Transportation Board''.

SEC. 317. NATIONAL TRAILS SYSTEM ACT AMENDMENTS.

    The National Trails System Act is amended--
            (1) in section 8(d)-- <<NOTE: 16 USC 1247.>> 
                    (A) by striking ``Chairman of the Interstate 
                Commerce Commission'' and inserting in lieu thereof 
                ``Chairman of the Surface Transportation Board''; and
                    (B) by striking ``Commission'' the second place it 
                appears and inserting in lieu thereof ``Board''; and
            (2) in section 9(b) <<NOTE: 16 USC 1248.>>  by striking 
        ``Interstate Commerce Commission'' and inserting in lieu thereof 
        ``Surface Transportation Board''.

SEC. 318. CLAYTON ACT AMENDMENTS.

    The Clayton Act is amended--
            (1) in section 7 (15 U.S.C. 18)--
                    (A) by striking ``Interstate Commerce Commission'' 
                and inserting in lieu thereof ``Surface Transportation 
                Board''; and
                    (B) by inserting ``, Board,'' after ``vesting such 
                power in such Commission'';
            (2) in section 11(a) (15 U.S.C. 21(a)) by striking 
        ``Interstate Commerce Commission where applicable to common 
        carriers subject to the Interstate Commerce Act, as amended'' 
        and inserting in lieu thereof ``Surface Transportation Board 
        where applicable to common carriers subject to jurisdiction 
        under subtitle IV of title 49, United States Code''; and
            (3) in section 16 (15 U.S.C. 22) <<NOTE: 15 USC 26.>>  by 
        striking ``in equity for injunctive relief'' and all that 
        follows through ``Interstate Commerce Commission'' and inserting 
        in lieu thereof ``for injunctive relief against any common 
        carrier subject to the jurisdiction of the Surface 
        Transportation Board under subtitle IV of title 49, United 
        States Code''.

SEC. 319. INSPECTOR GENERAL ACT OF 1978 AMENDMENT.

    Section 8G(a)(2) of the Inspector General Act of 1978 (5 U.S.C. 
App.) is amended by striking ``the Interstate Commerce Commission,''.

SEC. 320. ENERGY POLICY ACT OF 1992 AMENDMENTS.

    Subsections (a) and (d) of section 1340 of the Energy Policy Act of 
1992 (42 U.S.C. 13369 (a) and (d)) are each amended by striking 
``Interstate Commerce Commission'' and inserting in lieu thereof 
``Surface Transportation Board''.

SEC. 321. MERCHANT MARINE ACT, 1920, AMENDMENTS.

    The Merchant Marine Act, 1920, is amended--
            (1) in section 8 (46 U.S.C. App. 867)--
                    (A) by striking ``Interstate Commerce Commission'' 
                both places it appears and inserting in lieu thereof 
                ``Surface Transportation Board''; and

[[Page 109 STAT. 950]]

                    (B) by striking ``commission'' and inserting in lieu 
                thereof ``Board'';
            (2) in section 27A (46 U.S.C. App. 883-1) by striking 
        ``common or contract'' and all that follows through ``, which 
        otherwise'' and inserting in lieu thereof ``carrier subject to 
        jurisdiction under subchapter II of chapter 135 of title 49, 
        United States Code, which otherwise''; and
            (3) in section 28 (46 U.S.C. App. 884)--
                    (A) by striking ``common'';
                    (B) by striking ``Interstate Commerce Commission'' 
                and inserting in lieu thereof ``Surface Transportation 
                Board''; and
                    (C) by striking ``commission'' each place it appears 
                and inserting in lieu thereof ``Board''.

SEC. 322. RAILWAY LABOR ACT AMENDMENTS.

    Section 1 of the Railway Labor Act (45 U.S.C. 151) is amended--
            (1) in the first paragraph by striking ``express company, 
        sleeping-car company, carrier by railroad, subject to the 
        Interstate Commerce Act'' and inserting in lieu thereof 
        ``railroad subject to the jurisdiction of the Surface 
        Transportation Board'';
            (2) in the first and fifth paragraphs by striking 
        ``Interstate Commerce Commission'' each place it appears and 
        inserting in lieu thereof ``Surface Transportation Board''; and
            (3) in the fifth paragraph by striking ``Commission'' the 
        second and fourth places it appears and inserting in lieu 
        thereof ``Board''.

SEC. 323. RAILROAD RETIREMENT ACT OF 1974 AMENDMENTS.

    Section 1 of the Railroad Retirement Act of 1974 (45 U.S.C. 231) is 
amended--
            (1) by striking subsection (a)(1)(i) and inserting in lieu 
        thereof the following:
            ``(i) any carrier by railroad subject to the jurisdiction of 
        the Surface Transportation Board under part A of subtitle IV of 
        title 49, United States Code;'';
            (2) in subsection (a)(2)(ii) by striking ``Interstate 
        Commerce Commission is hereby authorized and directed upon 
        request of the Board'' and inserting in lieu thereof ``Surface 
        Transportation Board is hereby authorized and directed upon 
        request of the Railroad Retirement Board''; and
            (3) in subsection (o) by inserting ``the Surface 
        Transportation Board,'' after ``the Interstate Commerce 
        Commission,''.

SEC. 324. RAILROAD UNEMPLOYMENT INSURANCE ACT AMENDMENTS.

    The Railroad Unemployment Insurance Act is amended--
            (1) in section 1(a) (45 U.S.C. 351(a)) by striking 
        ``Interstate Commerce Commission is hereby authorized and 
        directed upon request of the Board'' and inserting in lieu 
        thereof ``Surface Transportation Board is hereby authorized and 
        directed upon request of the Railroad Retirement Board'';
            (2) by striking paragraph (b) of such section 1 and 
        inserting in lieu thereof the following:

    ``(b) The term `carrier' means a railroad subject to the 
jurisdiction of the Surface Transportation Board under part A of 
subtitle IV of title 49, United States Code.''; and
            (3) by striking ``Interstate Commerce Commission, adjusted, 
        as determined by the Board'' in section 2(h)(3) (45 U.S.C.

[[Page 109 STAT. 951]]

        352(h)(3)) and inserting in lieu thereof ``Surface 
        Transportation Board, adjusted, as determined by the Railroad 
        Retirement Board''.

SEC. 325. EMERGENCY RAIL SERVICES ACT OF 1970 AMENDMENTS.

    The Emergency Rail Services Act of 1970 is amended--
            (1) in section 2 (45 U.S.C. 661)--
                    (A) by striking paragraph (2) and inserting in lieu 
                thereof the following:

    ``(2) `Board' means the Surface Transportation Board.''; and
                    (B) in paragraph (3) by striking ``common carrier by 
                railroad subject to part I of the Interstate Commerce 
                Act (49 U.S.C. 1-27)'' and inserting in lieu thereof 
                ``rail carrier subject to part A of subtitle IV of title 
                49, United States Code'';
            (2) in section 3--
                    (A) by striking ``the provisions of section 5 of the 
                Interstate Commerce Act'' in subsection (b)(4) and 
                inserting in lieu thereof ``subchapter II of chapter 113 
                of title 49, United States Code''; and
                    (B) by striking ``Commission'' each place it appears 
                and inserting in lieu thereof ``Board''; and
            (3) in section 6(a) (45 U.S.C. 665(a)) by striking 
        ``Interstate Commerce Commission'' and inserting in lieu thereof 
        ``Board''.

SEC. 326. ALASKA RAILROAD TRANSFER ACT OF 1982 AMENDMENTS.

    Section 608 of the Alaska Railroad Transfer Act of 1982 (45 U.S.C. 
1207) is amended--
            (1) by striking ``the jurisdiction of the Interstate 
        Commerce Commission under chapter 105'' in subsection (a)(1) and 
        inserting in lieu thereof ``part A''; and
            (2) by striking ``the jurisdiction of the Interstate 
        Commerce Commission under chapter 105'' in subsection (c) and 
        inserting in lieu thereof ``part A''.

SEC. 327. REGIONAL RAIL REORGANIZATION ACT OF 1973 AMENDMENTS.

    The Regional Rail Reorganization Act of 1973 is amended--
            (1) in section 102(15) (45 U.S.C. 702(15)) by striking 
        ``common carrier by railroad as defined in section 1(3) of part 
        I of the Interstate Commerce Act (49 U.S.C. 1(3))'' and 
        inserting in lieu thereof ``rail carrier subject to part A of 
        subtitle IV of title 49, United States Code'';
            (2) in section 301(b) (45 U.S.C. 741(b)) by striking 
        ``common carrier by railroad under section 1(3) of the 
        Interstate Commerce Act (49 U.S.C. 1(3))'' and inserting in lieu 
        thereof ``rail carrier subject to part A of subtitle IV of title 
        49, United States Code'';
            (3) in section 304 (45 U.S.C. 744)--
                    (A) by striking ``205(d)(6) of this Act'' in 
                subsection (a)(2)(B) and inserting in lieu thereof 
                ``10362(b)(6) of title 49, United States Code'';
                    (B) by striking ``Interstate Commerce Act'' and 
                inserting in lieu thereof ``part A of subtitle IV of 
                title 49, United States Code'';
                    (C) in subsection (d)(3)--

[[Page 109 STAT. 952]]

                          (i) by striking ``this title,'' and all that 
                      follows through ``(A) shall take'' and inserting 
                      in lieu thereof ``this title, the Commission shall 
                      take''; and
                          (ii) by striking ``this subsection; and'' and 
                      all that follows through ``205(d)(6) of this Act'' 
                      and inserting in lieu thereof ``this subsection'';
                    (D) in subsection (e)(4)--
                          (i) by striking ``and under regulations issued 
                      by the Office pursuant to section 205(d)(5) of 
                      this Act'' in subparagraph (A); and
                          (ii) by striking ``and regulations issued by 
                      the Office pursuant to section 205(d)(5) of this 
                      Act'' in subparagraph (C);
                    (E) in subsection (e)(5)--
                          (i) by striking ``and under regulations issued 
                      by the Office pursuant to section 205(d)(5) of 
                      this Act'' in subparagraph (A); and
                          (ii) by striking ``and under regulations 
                      issued by the Office pursuant to section 205(d)(5) 
                      of this Act'' in subparagraph (B);
                    (F) in subsection (e)(7)(A) by striking ``and under 
                regulations issued by the Office pursuant to section 
                205(d)(5) of this Act''; and
                    (G) in subsection (g) by striking ``the Interstate 
                Commerce Act'' and inserting in lieu thereof ``part A of 
                subtitle IV of title 49, United States Code'';
            (4) in section 308 (45 U.S.C. 748)--
                    (A) by striking ``10905(d)-(f)'' in subsection 
                (d)(1) and inserting in lieu thereof ``10904''; and
                    (B) by striking ``10903(b)(2)'' in subsection (f) 
                and inserting in lieu thereof ``10903(b)(3)''; and
            (5) by inserting after section 712 the following new 
        section:

            ``class ii railroads receiving federal assistance

    ``Sec. 713. <<NOTE: 49 USC 797l.>>  The Surface Transportation Board 
shall impose no labor protection conditions in approving an application 
under section 10902 of title 49, United States Code, when the 
application involves a Class II rail carrier which--
            ``(1) is headquartered in a State, and operates in at least 
        one State, with a population of less than 1,000,000 persons, as 
        determined by the 1990 census; and
            ``(2) has, as of January 1, 1996, been a recipient of 
        repayable Federal Railroad Administration assistance in excess 
        of $5,000,000.''.

SEC. 328. MILWAUKEE RAILROAD RESTRUCTURING ACT AMENDMENT.

    Section 18 of the Milwaukee Railroad Restructuring Act (45 U.S.C. 
916) is repealed.

SEC. 329. ROCK ISLAND RAILROAD TRANSITION AND EMPLOYEE ASSISTANCE ACT 
            AMENDMENTS.

    The Rock Island Railroad Transition and Employee Assistance Act is 
amended--
            (1) in section 104(a) (45 U.S.C. 1003(a)) by striking 
        ``section 11125 of title 49, United States Code, or''; and
            (2) by striking section 120 (45 U.S.C. 1015).

[[Page 109 STAT. 953]]

SEC. 330. RAILROAD REVITALIZATION AND REGULATORY REFORM ACT OF 1976 
            AMENDMENTS.

    The Railroad Revitalization and Regulatory Reform Act of 1976 is 
amended--
            (1) in section 102(7) (45 U.S.C. 802(7)) by striking 
        ``common carrier by railroad or express, as defined in section 
        1(3) of the Interstate Commerce Act (49 U.S.C. 1(3))'' and 
        inserting in lieu thereof ``rail carrier subject to part A of 
        subtitle IV of title 49, United States Code'';
            (2) in section 505(a)(3) (45 U.S.C. 825(a)(3))--
                    (A) by striking ``A financially responsible person 
                (as defined in section 10910(a)(1) of title 49, United 
                States Code)'' and inserting in lieu thereof ``(A) A 
                financially responsible person''; and
                    (B) by inserting at the end the following new 
                subparagraph:

    ``(B) For purposes of this paragraph, the term `financially 
responsible person' means a person who (i) is capable of paying the 
constitutional minimum value of the railroad line proposed to be 
acquired, and (ii) is able to assure that adequate transportation will 
be provided over such line for a period of not less than 3 years. Such 
term includes a governmental authority but does not include a class I or 
class II rail carrier.'';
            (3) in section 509(b) (45 U.S.C. 829(b)) by striking 
        paragraph (2); and
            (4) in section 510 (45 U.S.C. 830) by striking ``the 
        provisions of section 20a of the Interstate Commerce Act (49 
        U.S.C. 20a), nor''.

SEC. 331. NORTHEAST RAIL SERVICE ACT OF 1981 AMENDMENTS.

    The Northeast Rail Service Act of 1981 is amended in section 1164 
(45 U.S.C. 1112) by striking ``11344 or 11345'' each place it appears 
and inserting in lieu thereof ``11324 or 11325''.

SEC. 332. CONRAIL PRIVATIZATION ACT AMENDMENT.

    Section 4036 of the Conrail Privatization Act (45 U.S.C. 1344) is 
amended by striking ``(19)''.

SEC. 333. MIGRANT AND SEASONAL AGRICULTURAL WORKER PROTECTION ACT 
            AMENDMENTS.

    Section 401(b)(2)(C) of the Migrant and Seasonal Agricultural Worker 
Protection Act (29 U.S.C. 1841(b)(2)(C)) is amended by striking ``part 
II of the Interstate Commerce Act (49 U.S.C. 301 et seq.), or any 
successor provision of'' and inserting in lieu thereof ``part B of''.

SEC. 334. FEDERAL AVIATION ADMINISTRATION AUTHORIZATION ACT OF 1994.

    Section 601(d) of the Federal Aviation Administration Authorization 
Act of 1994 (Public Law 103-305) <<NOTE: 49 USC 10521 note.>>  is 
repealed.

SEC. 335. TERMINATION OF CERTAIN MARITIME AUTHORITY.

    (a) <<NOTE: Effective date.>>  Repeal of Intercoastal Shipping Act, 
1933.--The Intercoastal Shipping Act, 1933 (46 U.S.C. App. 843 et seq.) 
is repealed effective September 30, 1996.

    (b) <<NOTE: Effective date.>>  Repeal of Provisions of Shipping Act, 
1916.--The following provisions of the Shipping Act, 1916 are repealed 
effective September 30, 1996:

[[Page 109 STAT. 954]]

            (1) Section 3 (46 U.S.C. App. 804).
            (2) Section 14 (46 U.S.C. App. 812).
            (3) Section 15 (46 U.S.C. App. 814).
            (4) Section 16 (46 U.S.C. App. 815).
            (5) Section 17 (46 U.S.C. App. 816).
            (6) Section 18 (46 U.S.C. App. 817).
            (7) Section 19 (46 U.S.C. App. 818).
            (8) Section 20 (46 U.S.C. App. 819).
            (9) Section 21 (46 U.S.C. App. 820).
            (10) Section 22 (46 U.S.C. App. 821).
            (11) Section 23 (46 U.S.C. App. 822).
            (12) Section 24 (46 U.S.C. App. 823).
            (13) Section 25 (46 U.S.C. App. 824).
            (14) Section 27 (46 U.S.C. App. 826).
            (15) Section 29 (46 U.S.C. App. 828).
            (16) Section 30 (46 U.S.C. App. 829).
            (17) Section 31 (46 U.S.C. App. 830).
            (18) Section 32 (46 U.S.C. App. 831).
            (19) Section 33 (46 U.S.C. App. 832).
            (20) Section 35 (46 U.S.C. App. 833a).
            (21) Section 43 (46 U.S.C. App. 841a).
            (22) Section 45 (46 U.S.C. App. 841c).

    (c) Conforming Amendments.--
            (1) Merchant marine act, 1936.--Section 204(a) of the 
        Merchant Marine Act, 1936 (46 U.S.C. App. 1114(a)) is amended by 
        striking ``the Intercoastal Shipping Act, 1933,''.
            (2) Shipping act of 1984.--Section 5(e) of the Shipping Act 
        of 1984 (46 U.S.C. App. 1704(e)) is amended--
                    (A) by striking ``This Act, the Shipping Act, 1916, 
                and the Intercoastal Shipping Act, 1933,'' and inserting 
                ``This Act and the Shipping Act, 1916''; and
                    (B) by striking ``this Act, the Shipping Act, 1916, 
                or the Intercoastal Shipping Act, 1933,'' and inserting 
                ``this Act or the Shipping Act, 1916''.

SEC. 336. ARMORED CAR INDUSTRY RECIPROCITY ACT OF 1993 AMENDMENTS.

    Section 5(2) of the Armored Car Industry Reciprocity Act of 1993 (15 
U.S.C. 5904) is amended--
            (1) by striking ``subchapter II of chapter 105'' and 
        inserting in lieu thereof ``subchapter I of chapter 135''; and
            (2) by striking ``holding the appropriate certificate, 
        permit, or license issued under subchapter II of chapter 109'' 
        and inserting in lieu thereof ``is registered under chapter 
        139''.

SEC. 337. LABOR MANAGEMENT RELATIONS ACT, 1947 AMENDMENT.

    Section 302(b)(2) of the Labor Management Relations Act, 1947 (29 
U.S.C. 186(b)(2)) is amended by striking the parenthetical phrase and 
inserting in lieu thereof ``(as defined in section 13102 of title 49, 
United States Code)''.

SEC. 338. INLANDS WATERWAY REVENUE ACT OF 1978 AMENDMENT.

    Section 205(f)(1) of the Inlands Waterway Revenue Act of 1978 (33 
U.S.C. 1803(f)(1)) is amended by striking ``as set forth'' and all that 
follows through the period at the end and inserting in lieu thereof ``as 
set forth in sections 10101 and 13101 of title 49, United States 
Code.''.

[[Page 109 STAT. 955]]

SEC. 339. NOISE CONTROL ACT OF 1972 AMENDMENT.

    Section 18(d) of the Noise Control Act of 1972 (42 U.S.C. 4917(d)) 
is amended to read as follows:
    ``(d) For purposes of this section, the term `motor carrier' 
includes a motor carrier and motor private carrier as those terms are 
defined in section 13102 of title 49, United States Code.''.

SEC. 340. FAIR LABOR STANDARDS ACT OF 1938 AMENDMENT.

    Section 13(b)(2) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
213(b)(2)) is amended by striking ``common carrier by rail and subject 
to the provisions of part I of the Interstate Commerce Act'' and 
inserting in lieu thereof ``rail carrier subject to part A of subtitle 
IV of title 49, United States Code''.

                   TITLE IV--MISCELLANEOUS PROVISIONS

SEC. 401. <<NOTE: 42 USC 4332 note.>>  CERTAIN COMMERCIAL SPACE LAUNCH 
            ACTIVITIES.

    The licensing of a launch vehicle or launch site operator (including 
any amendment, extension, or renewal of the license) under chapter 701 
of title 49, United States Code, shall not be considered a major Federal 
action for purposes of section 102(C) of the National Environmental 
Policy Act of 1969 (42 U.S.C. 4332(C)) if--
            (1) the Department of the Army has issued a permit for the 
        activity; and
            (2) the Army Corps of Engineers has found that the activity 
        has no significant impact.
SEC. 402. DESTRUCTION OF MOTOR VEHICLES OR MOTOR VEHICLE 
                        FACILITIES; WRECKING TRAINS.

    (a) Destruction of Motor Vehicles or Motor Vehicle Facilities.--
Section 33 of title 18, United States Code, is amended--
            (1) by inserting ``(a)'' before ``Whoever'' the first place 
        it appears; and
            (2) by adding at the end the following:

    ``(b) Whoever is convicted of a violation of subsection (a) 
involving a motor vehicle that, at the time the violation occurred, 
carried high-level radioactive waste (as that term is defined in section 
2(12) of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10101(12))) or 
spent nuclear fuel (as that term is defined in section 2(23) of the 
Nuclear Waste Policy Act of 1982 (42 U.S.C. 10101(23))), shall be fined 
under this title and imprisoned for any term of years not less than 30, 
or for life.''.
    (b) Wrecking Trains.--Section 1992 of such title is amended--
            (1) by inserting ``(a)'' before ``Whoever'' the first place 
        it appears;
            (2) by inserting ``(b)'' before ``Whoever is convicted'';
            (3) striking ``any such crime, which'' and inserting ``a 
        violation of subsection (a) that'';
            (4) by inserting after the paragraph beginning ``Whoever is 
        convicted'' the following:

    ``Whoever is convicted of any such violation involving a train that, 
at the time the violation occurred, carried high-level radioactive waste 
(as that term is defined in section 2(12) of the Nuclear Waste Policy 
Act of 1982 (42 U.S.C. 10101(12))) or spent nuclear

[[Page 109 STAT. 956]]

fuel (as that term is defined in section 2(23) of the Nuclear Waste 
Policy Act of 1982 (42 U.S.C. 10101(23))), shall be fined under this 
title and imprisoned for any term or years not less than 30, or for 
life.''; and
            (5) by inserting ``(c)'' before ``A judgment''.

SEC. 403. VIOLATION OF GRADE-CROSSING LAWS AND REGULATIONS.

    (a) Federal Regulations.--Section 31310 of title 49, United States 
Code, is amended by adding at the end thereof the following:
    ``(h) Grade-Crossing Violations.--
            ``(1) Sanctions.--The Secretary shall issue regulations 
        establishing sanctions and penalties relating to violations, by 
        persons operating commercial motor vehicles, of laws and 
        regulations pertaining to railroad-highway grade crossings.
            ``(2) Minimum requirements.--The regulations issued under 
        paragraph (1) shall, at a minimum, require that--
                    ``(A) the penalty for a single violation is not less 
                than a 60-day disqualification of the driver's 
                commercial driver's license; and
                    ``(B) any employer that knowingly allows, permits, 
                authorizes, or requires an employee to operate a 
                commercial motor vehicle in violation of such a law or 
                regulation shall be subject to a civil penalty of not 
                more than $10,000.''.

    (b) <<NOTE: 49 USC 31310 note.>>  Deadline.--The initial regulations 
required under section 31310(h) of title 49, United States Code, shall 
be issued not later than 1 year after the date of the enactment of this 
Act.

    (c) State Regulations.--Section 31311(a) of title 49, United States 
Code, is amended by adding at the end thereof the following:
            ``(18) The State shall adopt and enforce regulations 
        prescribed by the Secretary under section 31310(h) of this 
        title.''.

SEC. 404. MISCELLANEOUS TITLE 23 AMENDMENTS.

    Section 127 of title 23, United States Code, is amended by adding at 
the end the following:
    ``(g) Operation of Certain Specialized Hauling Vehicles on Certain 
Pennsylvania Highways.--If the segment of United States Route 220 
between Bedford and Bald Eagle, Pennsylvania, is designated as part of 
the Interstate System, the single axle weight, tandem axle weight, gross 
vehicle weight, and bridge formula limits set forth in subsection (a) 
shall not apply to that segment with respect to the operation of any 
vehicle which could have legally operated on that segment before the 
date of the enactment of this subsection.''.

SEC. 405. TECHNICAL AMENDMENTS.

    (a) <<NOTE: Effective date.>>  NHS Designation Act.--Effective 
November 28, 1995, the National Highway System Designation Act of 1995 
(Public Law 104-59) is amended--
            (1) in section 312(b) (109 Stat. 584) <<NOTE: 23 USC 127.>>  
        by striking ``of such title'' and inserting in lieu thereof ``of 
        title 23, United States Code'';
            (2) in section 319(b)(3) (109 Stat. 589) <<NOTE: 23 USC 
        149.>>  by striking ``at the end'' and inserting in lieu thereof 
        ``after paragraph (3)'';
            (3) in section 332(a)(1)(C)(iii) (109 Stat. 596) by 
        inserting closing quotation marks after ``Mexico'';
            (4) in section 336(1) (109 Stat. 602)--
                    (A) by striking ``for'' each place it appears; and

[[Page 109 STAT. 957]]

                    (B) by inserting ``for'' after ``million'' each 
                place it appears; and
            (5) by inserting closing quotation marks and a period after 
        the period at the end of section 337(c)(1)(B) (109 Stat. 
        603). <<NOTE: 16 USC 1261.>> 

    (b) Title 23.--Section 149(b) of title 23, United States Code, is 
amended--
            (1) by inserting ``or'' after the semicolon at the end of 
        paragraph (3); and
            (2) by striking ``; or'' at the end of paragraph (4) and 
        inserting a period.

    (c) ISTEA.--Section 1069(v) of the International Surface 
Transportation Efficiency Act of 1991 (105 Stat. 2010) is amended by 
striking the period at the end of the first sentence.

SEC. 406. <<NOTE: 49 USC 5103 note.>>  FIBER DRUM PACKAGING.

    (a) <<NOTE: Rules.>>  In General.--In the administration of chapter 
51 of title 49, United States Code, the Secretary of Transportation 
shall issue a final rule within 60 days after the date of the enactment 
of this Act authorizing the continued use of fiber drum packaging with a 
removable head for the transportation of liquid hazardous materials with 
respect to those liquid hazardous materials transported by such drums 
pursuant to regulations in effect on September 30, 1991, if--
            (1) the packaging is in compliance with regulations of the 
        Secretary under the Hazardous Materials Transportation Act as in 
        effect on September 30, 1991; and
            (2) the packaging will not be used for the transportation of 
        hazardous materials that include materials which are poisonous 
        by inhalation or materials in Packing Groups I and II.

    (b) Expiration.--The regulation referred to in subsection (a) shall 
expire on the later of September 30, 1997, or the date on which funds 
are authorized to be appropriated to carry out chapter 51 of title 49, 
United States Code (relating to transportation of hazardous materials), 
for fiscal years beginning after September 30, 1997.
    (c) Study.--
            (1) <<NOTE: Contracts.>>  In general.--Within 90 days after 
        the date of the enactment of this Act, the Secretary shall 
        contract with the National Academy of Sciences to conduct a 
        study--
                    (A) to determine whether the requirements of section 
                5103(b) of title 49, United States Code (relating to 
                regulations for safe transportation), as they pertain to 
                fiber drum packaging with a removable head can be met 
                for the transportation of liquid hazardous materials 
                (with respect to those liquid hazardous materials 
                transported by such drums pursuant to regulations in 
                effect on September 30, 1991) with standards (including 
                fiber drum industry standards set forth in a June 8, 
                1992, exemption application submitted to the Department 
                of Transportation), other than the performance-oriented 
                packaging standards adopted under docket number HM-181 
                contained in part 178 of title 49, Code of Federal 
                Regulations; and
                    (B) to determine whether a packaging standard 
                (including such fiber drum industry standards), other 
                than such performance-oriented packaging standards, will 
                provide an equal or greater level of safety for the 
                transportation of

[[Page 109 STAT. 958]]

                liquid hazardous materials than would be provided if 
                such performance-oriented packaging standards were in 
                effect.
            (2) Completion.--The study shall be completed before March 
        1, 1997 and shall be transmitted to the Committee on Commerce, 
        Science, and Transportation of the Senate and the Transportation 
        and Infrastructure Committee of the House of Representatives.

    (d) <<NOTE: Regulations.>>  Secretarial Action.--By September 30, 
1997, the Secretary shall issue final regulations to determine what 
standards should apply to fiber drum packaging with a removable head for 
transportation of liquid hazardous materials (with respect to those 
liquid hazardous materials transported by such drums pursuant to 
regulations in effect on September 30, 1991) after September 30, 1997. 
In issuing such regulations, the Secretary shall give full and 
substantial consideration to the results of the study conducted in 
subsection (c).

SEC. 407. NONCONTIGUOUS DOMESTIC TRADE STUDY.

    Within 6 months after the effective date of this Act, the Secretary 
of Transportation shall transmit to the Committee on Commerce, Science, 
and Transportation of the Senate and the Committee on Transportation and 
Infrastructure of the House of Representatives a study that analyzes 
each of the noncontiguous domestic trades, including analyzing--
            (1) carrier competition in both regulated and unregulated 
        portions of those trades;
            (2) rate structures in those trades;
            (3) the impact of tariff filing on carrier pricing;
            (4) the problems of parallel pricing and its impact on 
        competition in the domestic trades;
            (5) the impact on domestic cargo pricing of foreign cargo 
        services;
            (6) whether additional protections are needed to protect 
        shippers from the abuse of market power; and
            (7) the extent to which statutory or regulatory changes 
        should be made to further the transportation policy of section 
        13101 of title 49, United States Code.

SEC. 408. <<NOTE: 49 USC 31136 note.>>  FEDERAL HIGHWAY ADMINISTRATION 
            RULEMAKING.

    (a) Advance Notice.--The Federal Highway Administration shall issue 
an advance notice of proposed rulemaking dealing with a variety of 
fatigue-related issues pertaining to commercial motor vehicle motor 
vehicle safety (including 8 hours of continuous sleep after 10 hours of 
driving, loading and unloading operations, automated and tamper-proof 
recording devices, rest and recovery cycles, fatigue and stress in 
longer combination vehicles, fitness for duty, and other appropriate 
regulatory and enforcement countermeasures for reducing fatigue-related 
incidents and increasing driver alertness) not later than March 1, 1996.

[[Page 109 STAT. 959]]

    (b) Rulemaking.--The Federal Highway Administration shall issue a 
notice of proposed rulemaking dealing with such issues within 1 year 
after issuance of the advance notice under subsection (a) is published 
and shall issue a final rule dealing with those issues within 2 years 
after the last day of such 1-year period.

    Approved December 29, 1995.

LEGISLATIVE HISTORY--H.R. 2539 (S. 1396):
---------------------------------------------------------------------------

HOUSE REPORTS: Nos. 104-311 (Comm. on Transportation and Infrastructure) 
and 104-422 (Comm. of Conference).
SENATE REPORTS: No. 104-176 accompanying S. 1396 (Comm. on Commerce, 
Science, and Transportation).
CONGRESSIONAL RECORD, Vol. 141 (1995):
            Nov. 14, considered and passed House.
            Nov. 28, considered and passed Senate, amended, in lieu of 
                S. 1396.
            Dec. 21, Senate agreed to conference report.
            Dec. 22, House agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 31 (1995):
            Dec. 29, Presidential statement.

                                  <all>
```