I

103D CONGRESS

1ST SESSION H. R. 1710

To amend title 49, United States Code, relating to procedures for resolving

claims involving unfiled, negotiated motor carrier transportation rates,

and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

APRIL 7, 1993

Mr. SHUSTER introduced the following bill; which was referred to the

Committee on Public Works and Transportation

A BILL

To amend title 49, United States Code, relating to procedures for resolving claims involving unfiled, negotiated

motor carrier transportation rates, and for other purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Negotiated Rate

5 Amendments of 1993’’.

6 SEC. 2. PROCEDURE FOR RESOLVING DISPUTES.

7 (a) GENERAL RULE.—For purposes of section 10701

8 of title 49, United States Code, it shall be an unreasonable
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1 practice for a nonhousehold goods motor carrier, a

2 nonhousehold goods freight forwarder, or a person rep3 resenting such a carrier or freight forwarder (hereinafter

4 in this section referred to as a ‘‘representative’’) to at5 tempt to charge or to charge for a transportation service

6 the difference between—

7 (1) the rate that is lawfully in effect pursuant

8 to a tariff that is filed in accordance with chapter

9 107 of such title by the carrier or freight forwarder

10 and that is applicable to such transportation service,

11 and

12 (2) the negotiated rate for such transportation

13 service,

14 if the carrier or freight forwarder is no longer transporting

15 property between places describe in section 10521(a)(1)

16 of such title or is transporting property between places

17 described in such section for the purpose of avoiding the

18 application of this subsection.

19 (b) JURISDICTION OF THE COMMISSION.—The Com20 mission shall have exclusive jurisdiction to make a deter21 mination of whether or not the attempting to charge or

22 the charging of a person for a transportation service a

23 rate by a carrier, freight forwarder, or a representative

24 is an unreasonable practice under subsection (a). In mak25 ing such a determination, the Commission shall consider—
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1 (1) whether such person was offered a transpor2 tation rate by the carrier or freight forwarder other

3 than that legally on file with the Commission for

4 such transportation service,

5 (2) whether such person tendered freight to the

6 carrier or freight forwarder in reasonable reliance

7 upon the offered transportation rate,

8 (3) whether the carrier or freight forwarder did

9 not properly or timely file with the Commission a

10 tariff providing for such transportation rate or failed

11 to execute a valid contract for such transportation

12 service,

13 (4) whether the transportation rate was billed

14 and collected by the carrier or freight forwarder, and

15 (5) whether the carrier, freight forwarder, or

16 representative demands additional payment of a

17 higher rate filed in a tariff.

18 (c) STAY OF ADDITIONAL COMPENSATION.—When a

19 person proceeds under this section to challenge the reason20 ableness of the practice of, or the legally applicable freight

21 rate or charges being claimed by, a carrier, freight for22 warder, or representative described in subsection (a) in ad23 dition to those already billed and collected, such person

24 shall not have to pay any additional compensation to such

25 carrier, freight forwarder, or representative until the Com-
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1 mission has made a determination as to the reasonable2 ness of the challenged rate as applied to the freight of

3 the person against whom the claim is made.

4 (d) TREATMENT OF SUBSECTION (a).—Subsection

5 (a) is enacted as an exception, and shall be treated as an

6 exception, to the requirement of sections 10761(a) and

7 10762 of title 49, United States Code, relating to a filed

8 tariff rate for a transportation or service subject to the

9 jurisdiction of the Commission and other general tariff re10 quirements.

11 (e) DEFINITIONS.—For purposes of this section:

12 (1) COMMISSION, HOUSEHOLD GOODS, AND

13 HOUSEHOLD GOODS FREIGHT FORWARDER.—The

14 terms ‘‘Commission’’, ‘‘household goods’’, and

15 ‘‘household goods freight forwarder’’ have the mean16 ing such terms have under section 10102 of title 49,

17 United States Code.

18 (2) NONHOUSEHOLD GOODS FREIGHT FOR19 WARDER.—The term ‘‘nonhousehold goods freight

20 forwarder’’ means a freight forwarder as defined in

21 section 10102 of title 49, United States Code, except

22 that such term does not include a household goods

23 freight forwarder.

24 (3) NONHOUSEHOLD GOODS MOTOR CARRIER.—

25 The term ‘‘nonhousehold goods motor carrier’’
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1 means a motor carrier as defined under section

2 10102 of title 49, United States Code of property

3 (other than household goods).

4 (4) NEGOTIATED RATE.—The term ‘‘negotiated

5 rate’’ means a rate, charge, classification, or rule

6 agreed upon by a nonhousehold goods motor carrier

7 or nonhousehold goods freight forwarder and a ship8 per through negotiations pursuant to which no tariff

9 was lawfully and timely filed with the Commission

10 and for which there is written evidence of such

11 agreement.

12 SEC. 3. STATUTE OF LIMITATIONS.

13 (a) MOTOR CARRIER CHARGES.—Section 11706(a)

14 of title 49, United States Code, is amended by striking

15 the period at the end and inserting the following: ‘‘; except

16 that a common carrier providing transportation or service

17 subject to the jurisdiction of the Commission under chap18 ter 105 of this title—

19 ‘‘(1) must begin, within 24 months after the

20 claim accrues, a civil action to recover charges for

21 such transportation or service if such transportation

22 or service is provided by the carrier on or after the

23 date of the enactment of this exception and before

24 the date that is one year after such date of enact25 ment; and
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1 ‘‘(2) must begin, within 18 months after the

2 claim accrues, such a civil action if such transpor3 tation or service is provided by the carrier on or

4 after the date that is one year after such date of en5 actment.’’.

6 (b) MOTOR CARRIER OVERCHARGES.—Section

7 11706(b) of title 49, United States Code, is amended by

8 striking the period at the end of the first sentence and

9 inserting the following: ‘‘except that a person must begin,

10 within 24 months after the claim accrues, a civil action

11 to recover overcharges from a carrier subject to the juris12 diction of the Commission under subchapter II of chapter

13 105 of this title for transportation or service if such trans14 portation or service takes place on or after the date of

15 the enactment of this exception and before the date that

16 is one year after such date of enactment, and a person

17 must begin, within 18 months after the claim accrues,

18 such a civil action for transportation or service taking

19 place on or after the date that is one year following such

20 date of enactment.’’.

21 (c) CONFORMING AMENDMENT.—Section 11706(d)

22 of title 49, United States Code, is amended by striking

23 ‘‘3-year period’’ each place it appears and inserting ‘‘limi24 tations period’’.
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1 SEC. 4. TARIFF RECONCILIATION RULES FOR MOTOR CAR2 RIERS OF PROPERTY.

3 (a) IN GENERAL.—Chapter 117 of title 49, United

4 States Code, is amended by adding at the end the follow5 ing new section:

6 ‘‘§ 11712. Tariff reconciliation rules for motor com7 mon carriers of property

8 ‘‘(a) MUTUAL CONSENT.—Subject to Commission re9 view and approval, motor carriers subject to the jurisdic10 tion of the Commission under subchapter II of chapter

11 105 of this title and shippers may resolve, by mutual con12 sent, overcharge and undercharge claims resulting from

13 incorrect tariff provisions or billing errors arising from the

14 inadvertent failure to properly and timely file and main15 tain agreed upon rates, rules, or classifications in compli16 ance with sections 10761 and 10762 of this title. Resolu17 tion of such claims among the parties shall not subject

18 any party to the penalties of chapter 119 of this title.

19 ‘‘(b) LIMITATION ON STATUTORY CONSTRUCTION.—

20 Nothing in this section shall relieve the motor carrier of

21 the duty to file and adhere to its rates, rules, and classi22 fications as required in sections 10761 and 10762, except

23 as provided in subsection (a) of this section.

24 ‘‘(c) RULEMAKING PROCEEDING.—Not later than 90

25 days after the date of the enactment of this section, the

26 Commission shall institute a proceeding to establish rules
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1 pursuant to which the tariff requirements of sections

2 10761 and 10762 of this title shall not apply under cir3 cumstances described in subsection (a) of this section.’’.

4 (b) CONFORMING AMENDMENT.—The analysis for

5 chapter 117 of title 49, United States Code, is amended

6 by adding at the end the following:

‘‘11712. Tariff reconciliation rules for motor common carriers of property.’’.

7 SEC. 5. CUSTOMER ACCOUNT CODES.

8 Section 10762 of title 49, United States Code, is

9 amended by adding at the end the following new sub10 section:

11 ‘‘(e) CUSTOMER ACCOUNT CODES.—No tariff filed

12 with the Commission before, on, or after the date of the

13 enactment of this subsection may be held invalid solely on

14 the basis that a numerical or alpha account code is used

15 in such tariff to designate customers or to describe the

16 applicability of rates. For transportation performed on

17 and after the 90th day following such date of enactment,

18 the name of the customer for each account code must be

19 set forth in the tariff.’’.

20 SEC. 6. EFFECTIVE DATE.

21 (a) GENERAL RULE.—Except as provided in sub22 section (b), this Act (including the amendments made by

23 this Act) shall take effect on the date of the enactment

24 of this Act.

25 (b) EXCEPTION.—Section 2 shall apply to—
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1 (1) any proceeding before the Interstate Com2 merce Commission, and

3 (2) any court action,

4 which is pending or commenced on or after the date of

5 the enactment of this Act.

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