```

[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2121 Reported in House (RH)]

                                                 Union Calendar No. 195

103d CONGRESS

  1st Session

                               H. R. 2121

                          [Report No. 103-359]

_______________________________________________________________________

                                 A BILL

   To amend title 49, United States Code, relating to procedures for 
 resolving claims involving unfiled, negotiated transportation rates, 
                        and for other purposes.

_______________________________________________________________________

                           November 15, 1993

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed

                                                 Union Calendar No. 195
103d CONGRESS
  1st Session
                                H. R. 2121

                          [Report No. 103-359]

   To amend title 49, United States Code, relating to procedures for 
 resolving claims involving unfiled, negotiated transportation rates, 
                        and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 13, 1993

Mr. Mineta (for himself and Mr. Shuster) introduced the following bill; 
 which was referred to the Committee on Public Works and Transportation

                            August 23, 1993

 Additional sponsors: Mr. Traficant, Mr. Valentine, Mr. Pete Geren of 
     Texas, Mr. Poshard, Mr. de Lugo, Mr. Barcia of Michigan, Mr. 
Coppersmith, Mr. Montgomery, Mr. Sisisky, Mr. Petri, Mr. Bereuter, Mr. 
 Inhofe, Mr. Gilchrest, Mr. Clinger, Mr. Hoekstra, Mr. Hutchinson, Mr. 
   Blute, Mr. Hyde, Mr. Kim, Mr. Ewing, Mr. Barlow, Mr. Clement, Mr. 
 Tucker, Mr. Ballenger, Ms. Dunn, Mr. Levy, Mr. McCrery, Mr. Burton of 
Indiana, Mr. Mazzoli, Mr. Parker, Mr. Everett, Mr. Bevill, Mr. Dingell, 
 Mr. Sundquist, Mr. Gillmor, Mr. Emerson, Mr. McKeon, Mr. Darden, Mr. 
 Slattery, Mr. Hastert, Mr. Walker, Mr. Lewis of Florida, Mr. Hughes, 
 Mr. Borski, Mr. Collins of Georgia, Mr. Deal, Mr. Dornan, Mr. Coble, 
 Mr. Bachus of Alabama, Mr. Whitten, Mr. Camp, Mr. Payne of Virginia, 
 Mr. Grandy, Mr. English of Oklahoma, Mr. Thornton, Mr. Moorhead, Mr. 
 Baker of California, Ms. Brown of Florida, Mr. Peterson of Minnesota, 
  Mr. King, Mr. Ramstad, Mr. Laughlin, Mr. Boucher, Mr. Brewster, Mr. 
 Cramer, Ms. Shepherd, Mr. Glickman, Ms. Eshoo, Mr. Hutto, Mr. Hall of 
Texas, Mr. Lancaster, Mrs. Mink, Mr. Penny, Mr. Rowland, Mr. Obey, Mr. 
 Murphy, Mr. Chapman, Mr. Taylor of North Carolina, Mr. Callahan, Mr. 
  Oxley, Mr. Dickey, Mr. Roberts, Mr. Upton, Mr. Barton of Texas, Mr. 
  Manzullo, Mr. Roth, Mr. Knollenberg, Mr. Quinn, Mr. Lightfoot, Mr. 
 Leach, Mr. Fawell, Mr. Boehner, Mr. Gingrich, Mr. Goss, Mr. Hoke, Mr. 
     Kingston, Mr. Myers of Indiana, Mr. Bunning, Mr. Schiff, Mr. 
 Faleomavaega, Mr. Stenholm, Mr. Barrett of Wisconsin, Mr. Johnson of 
South Dakota, Mr. Condit, Mr. Synar, Mr. Yates, Mr. Pomeroy, Mr. Heger, 
Mr. Houghton, Mr. Canady, Mr. Packard, Mr. Cunningham, Mr. Hancock, Mr. 
   Wolf, Mr. Linder, Mr. Cox, Mr. Kyl, Mr. Livingston, Mr. Mica, Mr. 
Shays, Mr. Price of North Carolina, Mr. Paxon, Mr. Goodlatte, Ms. Pryce 
   of Ohio, Mr. Richardson, Mr. Williams, Mr. McHugh, Ms. Furse, Mr. 
     Kreidler, Mr. Gallo, Mr. Portman, Mr. Barca of Wisconsin, Mr. 
    Sarpalius, Mr. Boehlert, Mr. Payne of New Jersey, Mr. Taylor of 
    Mississippi, Mr. Stump, Mr. Peterson of Florida, Mr. Horn, Mr. 
Sensenbrenner, Mr. Calvert, Mr. Shaw, Mr. Castle, Mr. Smith of Oregon, 
Mr. Bonilla, Mr. Markey, Ms. Schenk, Mr. Hunter, Mrs. Meyers of Kansas, 
 Mr. Porter, Mrs. Johnson of Connecticut, Ms. Lambert, Mr. Edwards of 
Texas, Mr. Neal of Massachusetts, Mr. Quillen, Mr. Kolbe, Mr. Fish, Mr. 
  Bacchus of Florida, Mr. Thompson, Mr. Inglis of South Carolina, Mr. 
Bliley, Mr. Tanner, Mr. Crapo, Mr. Andrews of Texas, Mr. Smith of Iowa, 
   Mr. Regula, Mr. Gunderson, Mr. Gekas, Mrs. Fowler, Mr. Johnson of 
   Georgia, Ms. Pelosi, Mr. Hinchey, Mr. Machtley, Mr. Gallegly, Mr. 
            Lazio, Mr. McMillan, and Mr. Barrett of Nebraska

                           November 15, 1993

Additional sponsors: Mr. Ravenel, Mr. Browder, Ms. Molinari, Mr. Miller 
 of Florida, Mr. Talent, Mr. McCollum, Mr. Rush, Mr. Duncan, Mr. Klug, 
   Mrs. Morella, Mr. Zimmer, Mr. Hobson, Mr. Smith of Texas, Mr. Sam 
 Johnson of Texas, Mr. Bateman, Mr. Schaefer, Ms. Margolies-Mezvinsky, 
   Mr. Johnston of Florida, Mr. Baker of Louisiana, Mr. Ortiz, Mrs. 
 Vucanovich, Mr. Walsh, Mr. Wynn, Mrs. Thurman, Ms. Long, Mr. Bishop, 
Mr. Brown of Ohio, Mr. Neal of North Carolina, Mr. Solomon, Mr. Royce, 
Mr. Wheat, Mr. Rohrabacher, Mr. Kanjorski, Mr. Combest, Mr. Torkildsen, 
 Mr. Greenwood, Mr. Towns, Mr. Andrews of New Jersey, Mr. Gordon, Mr. 
 Fields of Texas, Mr. Spence, Mrs. Lowey, Mr. Frank of Massachusetts, 
   Mr. Allard, Mr. Gilman, Mr. Michel, Mr. Bilirakis, Mr. Pombo, Mr. 
 Fingerhut, Mr. Thomas of Wyoming, Mr. Zeliff, Mr. Stearns, Mr. Franks 
                      of New Jersey, and Mr. Engel

                           November 15, 1993

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
[For text of introduced bill, see copy of bill as introduced on May 13, 
                                 1993]

_______________________________________________________________________

                                 A BILL

 
   To amend title 49, United States Code, relating to procedures for 
 resolving claims involving unfiled, negotiated transportation rates, 
                        and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Negotiated Rates Act of 1993''.

SEC. 2. PROCEDURES FOR RESOLVING CLAIMS INVOLVING UNFILED, NEGOTIATED 
              TRANSPORTATION RATES.

    (a) In General.--Section 10701 of title 49, United States Code, is 
amended by adding at the end the following:
    ``(f) Procedures for Resolving Claims Involving Unfiled, Negotiated 
Transportation 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 the jurisdiction of the Commission 
        under subchapter II of chapter 105 of this title, 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 paragraph 
        (2), (3), or (4) of this subsection, 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 
                subsection; 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 with 
                        the Commission 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 
                        Commission 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.
        If there is a dispute as to the showing under subparagraph (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 
        subparagraph (B), such dispute shall be resolved by the 
        Commission. Pending the resolution of any such dispute, the 
        person shall not have to pay any additional compensation to the 
        carrier or freight forwarder. Satisfaction of the claim under 
        paragraph (2), (3), or (4) of this subsection shall be binding 
        on the parties, and the parties shall not be subject to chapter 
        119 of this title.
            ``(2) 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 Commission.
            ``(3) 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 Commission.
            ``(4) Claims involving public warehousemen.--
        Notwithstanding paragraphs (2) and (3), 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 Commission.
            ``(5) 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 paragraph (2), 
        (3), or (4), the person may pursue all rights and remedies 
        existing under this title.
            ``(6) 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 described in paragraph (1) 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 Commission 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.
            ``(7) Limitation on statutory construction.--Except as 
        authorized in paragraphs (2), (3), (4), and (9) of this 
        subsection, nothing in this subsection shall relieve a motor 
        common carrier of the duty to file and adhere to its rates, 
        rules, and classifications as required in sections 10761 and 
        10762 of this title.
            ``(8) Notification of election.--
                    ``(A) General rule.--A person must notify the 
                carrier or freight forwarder as to its election to 
                proceed under paragraph (2), (3), or (4). Except as 
                provided in subparagraphs (B), (C), and (D), such 
                election may be made at any time.
                    ``(B) Demands for payment initially made after date 
                of enactment.--If the carrier or freight forwarder or 
                party representing such carrier or freight forwarder 
                initially demands the payment of additional freight 
                charges after the date of the enactment of this 
                subsection and notifies the person from whom additional 
                freight charges are sought of the provisions of 
                paragraphs (1) through (7) at the time of the making of 
                such initial demand, the election must be made not 
                later than the later of--
                            ``(i) 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
                            ``(ii) the 90th day following the date of 
                        the enactment of this subsection.
                    ``(C) Pending suits for collection made before or 
                on date of enactment.--If the carrier or freight 
                forwarder or party representing such carrier or freight 
                forwarder has filed, before or on the date of the 
                enactment of this subsection, a suit for the collection 
                of additional freight charges and notifies the person 
                from whom additional freight charges are sought of the 
                provisions of paragraphs (1) through (7), the election 
                must be made not later than the 90th day following the 
                date on which such notification is received.
                    ``(D) Demands for payment made before or on date of 
                enactment.--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 or on the date of 
                the enactment of this subsection and notifies the 
                person from whom additional freight charges are sought 
                of the provisions of paragraphs (1) through (7), the 
                election must be made not later than the later of--
                            ``(i) 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
                            ``(ii) the 90th day following the date of 
                        the enactment of this subsection.
            ``(9) Claims involving small-business concerns, charitable 
        organizations, and recyclable materials.--Notwithstanding 
        paragraphs (2), (3), and (4), 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, as defined in section 10733.''.
    (b) Conforming Amendment.--Subsection (e) of such section is 
amended by striking ``In'' and inserting ``Except as provided in 
subsection (f), in''.
    (c) Applicability.--The amendments made by subsections (a) and (b) 
of this section shall apply to all claims pending as of the date of the 
enactment of this Act and to all claims arising from transportation 
shipments tendered on or before the last day of the 24-month period 
beginning on such date of enactment.
    (d) Report.--Not later than 18 months after the date of the 
enactment of this Act, the Interstate Commerce Commission shall 
transmit to Congress a report regarding whether there exists a 
justification for extending the applicability of amendments made by 
subsections (a) and (b) of this section beyond the period specified in 
subsection (c).
    (e) Alternative Procedure for Resolving Disputes.--
            (1) General rule.--For purposes of section 10701 of title 
        49, United States Code, it shall be an unreasonable practice 
        for a motor carrier of property (other than a household goods 
        carrier) providing transportation subject to the jurisdiction 
        of the Commission under subchapter II of chapter 105 of such 
        title, a freight forwarder (other than a household goods 
        freight forwarder), or a party representing such a carrier or 
        freight forwarder to attempt to charge or to charge for a 
        transportation service provided before September 30, 1990, the 
        difference between the applicable rate that is lawfully in 
        effect pursuant to a tariff that is filed in accordance with 
        chapter 107 of such title by the carrier or freight forwarder 
        applicable to such transportation service and the negotiated 
        rate for such transportation service if the carrier or freight 
        forwarder is no longer transporting property between places 
        described in section 10521(a)(1) of such title or is 
        transporting property between places described in section 
        10521(a)(1) of such title for the purpose of avoiding the 
        application of this subsection.
            (2) Jurisdiction of commission.--The Commission 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 
        paragraph (1). If the Commission determines that attempting to 
        charge or the charging of the rate is an unreasonable practice 
        under paragraph (1), the carrier, freight forwarder, or party 
        may not collect the difference described in paragraph (1) 
        between the applicable rate and the negotiated rate for the 
        transportation service. In making such determination, the 
        Commission 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 Commission 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 Commission 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.
            (3) Stay of additional compensation.--When a person 
        proceeds under this subsection to challenge the reasonableness 
        of the practice of a motor carrier, freight forwarder, or party 
        described in paragraph (1) to attempt to charge or to charge 
        the difference described in paragraph (1) 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 Commission 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.
            (4) Treatment.--Paragraph (1) of this subsection is enacted 
        as an exception, and shall be treated as an exception, to the 
        requirements of sections 10761(a) and 10762 of title 49, United 
        States Code, relating to a filed tariff rate for a 
        transportation or service subject to the jurisdiction of the 
        Commission and other general tariff requirements.
            (5) Nonapplicability of negotiated rate dispute resolution 
        procedure.--If a person elects to seek enforcement of paragraph 
        (1) with respect to a rate for a transportation or service, 
        section 10701(f) of title 49, United States Code, as added by 
        subsection (a) of this section, shall not apply to such rate.
            (6) Definitions.--For purposes of this subsection, the 
        following definitions apply:
                    (A) Commission, household goods, household goods 
                freight forwarder, and motor carrier.--The terms 
                ``Commission'', ``household goods'', ``household goods 
                freight forwarder'', and ``motor carrier'' have the 
                meaning such terms have under section 10102 of title 
                49, United States Code.
                    (B) Negotiated rate.--The term ``negotiated rate'' 
                means a rate, charge, classification, or rule agreed 
                upon by a motor carrier or freight forwarder described 
                in paragraph (1) and a shipper through negotiations 
                pursuant to which no tariff was lawfully and timely 
                filed with the Commission and for which there is 
                written evidence of such agreement.
    (f) Prior Settlements and Adjudications.--Any claim that, but for 
this subsection, would be subject to any provision of this Act 
(including any amendment made by this Act) and that was settled by 
mutual agreement of the parties to such claim, or resolved by a final 
adjudication of a Federal or State court, before the date of the 
enactment of this Act shall be treated as binding, enforceable, and not 
contrary to law, unless such settlement was agreed to as a result of 
fraud or coercion.
    (g) Rate Reasonableness.--Section 10701(e) of title 49, United 
States Code, is amended by adding at the end the following: ``Any 
complaint brought against a motor carrier (other than a carrier 
described in subsection (f)(1)(A)) by a person (other than a motor 
carrier) for unreasonably high rates for past or future transportation 
shall be determined under this subsection.''.

SEC. 3. STATUTE OF LIMITATIONS.

    (a) Motor Carrier Charges.--Section 11706(a) of title 49, United 
States Code, is amended by striking the period at the end and inserting 
the following: ``; except that a motor carrier (other than a motor 
carrier providing transportation of household goods) or freight 
forwarder (other than a household goods freight forwarder)--
            ``(1) must begin such a civil action within 2 years after 
        the claim accrues if the transportation or service is provided 
        by the carrier in the 1-year period beginning on the date of 
        the enactment of the Negotiated Rates Act of 1993; and
            ``(2) must begin such a civil action within 18 months after 
        the claim accrues if the transportation or service is provided 
        by the carrier after the last day of such 1-year period.''.
    (b) Motor Carrier Overcharges.--Section 11706(b) of title 49, 
United States Code, is amended by striking ``. If that claim is against 
a common carrier'' and inserting the following: ``; except that a 
person must begin a civil action to recover overcharges from a motor 
carrier subject to the jurisdiction of the Commission under subchapter 
II of chapter 105 of this title for transportation or service--
            ``(1) within 2 years after the claim accrues if such 
        transportation or service is provided in the 1-year period 
        beginning on the date of the enactment of the Negotiated Rate 
        Act of 1993; and
            ``(2) within 18 months after the claim accrues if such 
        transportation or service is provided after the last day of 
        such 1-year period.
If the claim is against a common carrier''.
    (c) Conforming Amendment.--Section 11706(d) of title 49, United 
States Code, is amended--
            (1) by striking ``3-year period'' each place it appears and 
        inserting ``limitation periods'';
            (2) by striking ``is extended'' the first place it appears 
        and inserting ``are extended''; and
            (3) by striking ``each''.

SEC. 4. TARIFF RECONCILIATION RULES FOR MOTOR CARRIERS OF PROPERTY.

    (a) In General.--Chapter 117 of title 49, United States Code, is 
amended by adding at the end the following:
``Sec. 11712. Tariff reconciliation rules for motor common carriers of 
              property
    ``(a) Mutual Consent.--Subject to Commission review and approval, 
motor carriers subject to the jurisdiction of the Commission under 
subchapter II of chapter 105 of this title (other than motor carriers 
providing transportation of household goods) and shippers may resolve, 
by mutual consent, overcharge and undercharge 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 sections 10761 
and 10762 of this title. Resolution of such claims among the parties 
shall not subject any party to the penalties of chapter 119 of this 
title.
    ``(b) Limitation on Statutory Construction.--Nothing in this 
section shall relieve the motor carrier of the duty to file and adhere 
to its rates, rules, and classifications as required in sections 10761 
and 10762, except as provided in subsection (a) of this section.
    ``(c) Rulemaking Proceeding.--Not later than 90 days after the date 
of the enactment of this section, the Commission shall institute a 
proceeding to establish rules pursuant to which the tariff requirements 
of sections 10761 and 10762 of this title shall not apply under 
circumstances described in subsection (a) of this section.''.
    (b) Conforming Amendment.--The analysis for chapter 117 of title 
49, United States Code, is amended by adding at the end the following:

``11712. Tariff reconciliation rules for motor common carriers of 
                            property.''.

SEC. 5. CUSTOMER ACCOUNT CODES AND RANGE TARIFFS.

    (a) Customer Account Codes.--Section 10762 of title 49, United 
States Code, is amended by adding at the end the following:
    ``(h) Customer Account Codes.--No tariff filed by a motor carrier 
of property with the Commission before, on, or after the date of the 
enactment of this subsection may be held invalid solely on the basis 
that a numerical or alpha account code is used in such tariff to 
designate customers or to describe the applicability of rates. For 
transportation performed on and after the 180th day following such date 
of enactment, the name of the customer for each account code must be 
set forth in the tariff (other than the tariff of a motor carrier 
providing transportation of household goods).''.
    (b) Range Tariffs.--Such section is further amended by adding at 
the end the following:
    ``(i) Range Tariffs.--No tariff filed by a motor carrier of 
property with the Commission before, on, or after the date of the 
enactment of this subsection may be held invalid solely on the basis 
that the tariff does not show a specific rate or discount for a 
specific shipment if the tariff is based on a range of rates or 
discounts for specific classes of shipments. For transportation 
performed on or after the 180th day following such date of enactment, 
such a range tariff must identify the specific rate or discount from 
among the range of rates or discounts contained in such range tariff 
which is applicable to each specific shipment or must contain an 
objective means for determining the rate.''.

SEC. 6. CONTRACTS OF MOTOR CONTRACT CARRIERS.

    (a) In General.--Section 10702 of title 49, United States Code, is 
amended by adding at the end the following new subsection:
    ``(c) Contracts of Carriage for Motor Contract Carriers.--
            ``(1) General rule.--A motor contract carrier providing 
        transportation subject to the jurisdiction of the Commission 
        under subchapter II of chapter 105 of this title shall enter 
        into a written agreement, separate from the bill of lading or 
        receipt, for each contract for the provision of transportation 
        subject to such jurisdiction which is entered into after the 
        90th day following the date of the enactment of this 
        subsection.
            ``(2) Minimum content requirements.--The written agreement 
        shall, at a minimum--
                    ``(A) identify the parties thereto;
                    ``(B) commit the shipper to tender and the carrier 
                to transport a series of shipments;
                    ``(C) contain the contract rate or rates for the 
                transportation service to be or being provided; and
                    ``(D)(i) state that it provides for the assignment 
                of motor vehicles for a continuing period of time for 
                the exclusive use of the shipper; or
                    ``(ii) state that it provides that the service is 
                designed to meet the distinct needs of the shipper.
            ``(3) Retention by carrier.--All written agreements entered 
        into by a motor contract carrier under paragraph (1) shall be 
        retained by the carrier while in effect and for a minimum 
        period of 3 years thereafter and shall be made available to the 
        Commission upon request.
            ``(4) Random audits by commission.--The Commission shall 
        conduct periodic random audits to ensure that motor contract 
        carriers are complying with this subsection and are adhering to 
        the rates set forth in their agreements.''.
    (b) Civil Penalty.--Section 11901(g) of such title is amended--
            (1) by inserting ``or enter into or retain a written 
        agreement under section 10702(c) of this title'' after ``under 
        this subtitle'' the first place it appears; and
            (2) by striking ``or (5)'' and inserting ``(5) does not 
        comply with section 10702(c) of this title, or (6)''.
    (c) Criminal Penalty.--Section 11909(b) of such title is amended--
            (1) by inserting ``or enter into or retain a written 
        agreement under section 10702(c) of this title'' after ``under 
        this subtitle'' the first place it appears; and
            (2) in clause (1) by inserting after ``make that report'' 
        the following: ``or willfully does not enter into or retain 
        that agreement''.

SEC. 7. BILLING AND COLLECTING PRACTICES.

    (a) In General.--Subchapter IV of chapter 107 of title 49, United 
States Code, is amended by adding at the end the following:
``Sec. 10767. Billing and collecting practices
    ``(a) Regulations Limiting Reduced Rates.--Not later than 120 days 
after the date of the enactment of this section, the Commission shall 
issue regulations that prohibit a motor carrier subject to the 
jurisdiction of the Commission under subchapter II of chapter 105 of 
this title from providing a reduction in a rate set forth in its tariff 
or contract for the provision of transportation of property to any 
person other than (1) the person paying the motor carrier directly for 
the transportation service according to the bill of lading, receipt, or 
contract, or (2) an agent of the person paying for the transportation.
    ``(b) Disclosure of Actual Rates, Charges, and Allowances.--The 
regulations of the Commission issued pursuant to this section shall 
require a motor carrier to disclose, when a document is presented or 
transmitted electronically 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 the transportation 
service and shall prohibit any person from causing 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. Where 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 for the payment that a 
reduction, allowance, or other adjustment may apply.
    ``(c) Payments or Allowances for Certain Services.--The regulations 
issued by the Commission pursuant to this section shall not prohibit a 
motor carrier from making payments or allowances to a party to the 
transaction for services that would otherwise be performed by the motor 
carrier, such as a loading or unloading service, if the payments or 
allowances are reasonably related to the cost that such party knows or 
has reason to know would otherwise be incurred by the motor carrier.''.
    (b) Conforming Amendment.--The analysis for such subchapter is 
amended by adding at the end the following new item:

``10767. Billing and collecting practices.''.
    (c) Violation.--
            (1) In general.--Section 11901 of such title is amended by 
        redesignating subsection (l) as subsection (m) and by inserting 
        after subsection (k) the following:
    ``(l) Rate Discounts.--A person, or an officer, employee, or agent 
of that person, that knowingly pays, accepts, or solicits a reduced 
rate or rates in violation of the regulations issued under section 
10767 of this title is liable to the United States for a civil penalty 
of not less than $5,000 and not more than $10,000 plus 3 times the 
amount of damages which a party incurs because of such violation. 
Notwithstanding any other provision of this title, the express civil 
penalties and damages provided for in this subsection are the exclusive 
legal sanctions to be imposed under this title for practices found to 
be in violation of the regulations issued under section 10767 and such 
violations do not render tariff or contract provisions void or 
unenforceable.''.
            (2) Venue.--Section 11901(m)(2) of such title (as 
        redesignated by paragraph (1)) is amended by striking ``or 
        (k)'' and inserting ``(k), or (l)''.

SEC. 8. RESOLUTION OF DISPUTES RELATING TO CONTRACT OR COMMON CARRIER 
              CAPACITIES.

    Section 11101 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(d) Resolution of Disputes Relating to Contract or Common Carrier 
Capacities.--If a motor carrier (other than a motor carrier providing 
transportation of household goods) subject to the jurisdiction of the 
Commission under subchapter II of chapter 105 of this title has 
authority to provide transportation as both a motor common carrier and 
a motor contract carrier and a dispute arises as to whether certain 
transportation is provided in its common carrier or contract carrier 
capacity and the parties are not able to resolve the dispute 
consensually, the Commission shall have jurisdiction to, and shall, 
resolve the dispute.''.

SEC. 9. LIMITATION ON STATUTORY CONSTRUCTION.

    ``Nothing in this Act (including any amendment made by this Act) 
shall be construed as limiting or otherwise affecting application of 
title 11, United States Code, relating to bankruptcy; title 28, United 
States Code, relating to the jurisdiction of the courts of the United 
States (including bankruptcy courts); or the Employee Retirement Income 
Security Act of 1974.''
HR 2121 RH----2
HR 2121 RH----3
```