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

purposes.negotiated transportation rates, and for otherprocedures for resolving claims involving unfiled,

NOVEMBER 15, 1993

Reported with an amendment, committed to the Commitordered to be printed tee of the Whole House on the State of the Union, and
IB

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,
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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 proce-
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dures for resolving claims involving unfiled, negotiated

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 Rates Act

5 of 1993’’.

6 SEC. 2. PROCEDURES FOR RESOLVING CLAIMS INVOLVING

7 UNFILED, NEGOTIATED TRANSPORTATION

8 RATES.

9 (a) IN GENERAL.—Section 10701 of title 49, United

10 States Code, is amended by adding at the end the following:

11 ‘‘(f) PROCEDURES FOR RESOLVING CLAIMS INVOLVING

12 UNFILED, NEGOTIATED TRANSPORTATION RATES.—

13 ‘‘(1) IN GENERAL.—When a claim is made by a

14 motor carrier of property (other than a household

15 goods carrier) providing transportation subject to the

16 jurisdiction of the Commission under subchapter II of

17 chapter 105 of this title, by a freight forwarder (other

18 than a household goods freight forwarder), or by a

19 party representing such a carrier or freight forwarder

20 regarding the collection of rates or charges for such

21 transportation in addition to those originally billed

22 and collected by the carrier or freight forwarder for

23 such transportation, the person against whom the

24 claim is made may elect to satisfy the claim under
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1 the provisions of paragraph (2), (3), or (4) of this

2 subsection, upon showing that—

3 ‘‘(A) the carrier or freight forwarder is no

4 longer transporting property or is transporting

5 property for the purpose of avoiding the applica6 tion of this subsection; and

7 ‘‘(B) with respect to the claim—

8 ‘‘(i) the person was offered a transpor9 tation rate by the carrier or freight for10 warder other than that legally on file with

11 the Commission for the transportation serv12 ice;

13 ‘‘(ii) the person tendered freight to the

14 carrier or freight forwarder in reasonable

15 reliance upon the offered transportation

16 rate;

17 ‘‘(iii) the carrier or freight forwarder

18 did not properly or timely file with the

19 Commission a tariff providing for such

20 transportation rate or failed to enter into

21 an agreement for contract carriage;

22 ‘‘(iv) such transportation rate was

23 billed and collected by the carrier or freight

24 forwarder; and
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1 ‘‘(v) the carrier or freight forwarder

2 demands additional payment of a higher

3 rate filed in a tariff.

4 If there is a dispute as to the showing under subpara5 graph (A), such dispute shall be resolved by the court

6 in which the claim is brought. If there is a dispute

7 as to the showing under subparagraph (B), such dis8 pute shall be resolved by the Commission. Pending the

9 resolution of any such dispute, the person shall not

10 have to pay any additional compensation to the car11 rier or freight forwarder. Satisfaction of the claim

12 under paragraph (2), (3), or (4) of this subsection

13 shall be binding on the parties, and the parties shall

14 not be subject to chapter 119 of this title.

15 ‘‘(2) CLAIMS INVOLVING SHIPMENTS WEIGHING

16 10,000 POUNDS OR LESS.—A person from whom the

17 additional legally applicable and effective tariff rate

18 or charges are sought may elect to satisfy the claim

19 if the shipments each weighed 10,000 pounds or less,

20 by payment of 20 percent of the difference between the

21 carrier’s applicable and effective tariff rate and the

22 rate originally billed and paid. In the event that a

23 dispute arises as to the rate that was legally applica24 ble to the shipment, such dispute shall be resolved by

25 the Commission.
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1 ‘‘(3) CLAIMS INVOLVING SHIPMENTS WEIGHING

2 MORE THAN 10,000 POUNDS.—A person from whom the

3 additional legally applicable and effective tariff rate

4 or charges are sought may elect to satisfy the claim

5 if the shipments each weighed more than 10,000

6 pounds, by payment of 15 percent of the difference be7 tween the carrier’s applicable and effective tariff rate

8 and the rate originally billed and paid. In the event

9 that a dispute arises as to the rate that was legally

10 applicable to the shipment, such dispute shall be re11 solved by the Commission.

12 ‘‘(4) CLAIMS INVOLVING PUBLIC WAREHOUSE13 MEN.—Notwithstanding paragraphs (2) and (3), a

14 person from whom the additional legally applicable

15 and effective tariff rate or charges are sought may

16 elect to satisfy the claim by payment of 5 percent of

17 the difference between the carrier’s applicable and ef18 fective tariff rate and the rate originally billed and

19 paid if such person is a public warehouseman. In the

20 event that a dispute arises as to the rate that was le21 gally applicable to the shipment, such dispute shall be

22 resolved by the Commission.

23 ‘‘(5) EFFECTS OF ELECTION.—When a person

24 from whom additional legally applicable freight rates

25 or charges are sought does not elect to use the provi-
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1 sions of paragraph (2), (3), or (4), the person may

2 pursue all rights and remedies existing under this

3 title.

4 ‘‘(6) STAY OF ADDITIONAL COMPENSATION.—

5 When a person proceeds under this section to chal6 lenge the reasonableness of the legally applicable

7 freight rate or charges being claimed by a carrier or

8 freight forwarder described in paragraph (1) in addi9 tion to those already billed and collected, the person

10 shall not have to pay any additional compensation to

11 the carrier or freight forwarder until the Commission

12 has made a determination as to the reasonableness of

13 the challenged rate as applied to the freight of the per14 son against whom the claim is made.

15 ‘‘(7) LIMITATION ON STATUTORY CONSTRUC16 TION.—Except as authorized in paragraphs (2), (3),

17 (4), and (9) of this subsection, nothing in this sub18 section shall relieve a motor common carrier of the

19 duty to file and adhere to its rates, rules, and classi20 fications as required in sections 10761 and 10762 of

21 this title.

22 ‘‘(8) NOTIFICATION OF ELECTION.—

23 ‘‘(A) GENERAL RULE.—A person must no24 tify the carrier or freight forwarder as to its elec25 tion to proceed under paragraph (2), (3), or (4).
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1 Except as provided in subparagraphs (B), (C),

2 and (D), such election may be made at any time.

3 ‘‘(B) DEMANDS FOR PAYMENT INITIALLY

4 MADE AFTER DATE OF ENACTMENT.—If the car5 rier or freight forwarder or party representing

6 such carrier or freight forwarder initially de7 mands the payment of additional freight charges

8 after the date of the enactment of this subsection

9 and notifies the person from whom additional

10 freight charges are sought of the provisions of

11 paragraphs (1) through (7) at the time of the

12 making of such initial demand, the election must

13 be made not later than the later of—

14 ‘‘(i) the 60th day following the filing of

15 an answer to a suit for the collection of such

16 additional legally applicable freight rate or

17 charges, or

18 ‘‘(ii) the 90th day following the date of

19 the enactment of this subsection.

20 ‘‘(C) PENDING SUITS FOR COLLECTION

21 MADE BEFORE OR ON DATE OF ENACTMENT.—If

22 the carrier or freight forwarder or party rep23 resenting such carrier or freight forwarder has

24 filed, before or on the date of the enactment of

25 this subsection, a suit for the collection of addi-
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1 tional freight charges and notifies the person

2 from whom additional freight charges are sought

3 of the provisions of paragraphs (1) through (7),

4 the election must be made not later than the 90th

5 day following the date on which such notification

6 is received.

7 ‘‘(D) DEMANDS FOR PAYMENT MADE BE8 FORE OR ON DATE OF ENACTMENT.—If the car9 rier or freight forwarder or party representing

10 such carrier or freight forwarder has demanded

11 the payment of additional freight charges, and

12 has not filed a suit for the collection of such ad13 ditional freight charges, before or on the date of

14 the enactment of this subsection and notifies the

15 person from whom additional freight charges are

16 sought of the provisions of paragraphs (1)

17 through (7), the election must be made not later

18 than the later of—

19 ‘‘(i) the 60th day following the filing of

20 an answer to a suit for the collection of such

21 additional legally applicable freight rate or

22 charges, or

23 ‘‘(ii) the 90th day following the date of

24 the enactment of this subsection.
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1 ‘‘(9) CLAIMS INVOLVING SMALL-BUSINESS CON2 CERNS, CHARITABLE ORGANIZATIONS, AND RECYCLA3 BLE MATERIALS.—Notwithstanding paragraphs (2),

4 (3), and (4), a person from whom the additional le5 gally applicable and effective tariff rate or charges

6 are sought shall not be liable for the difference be7 tween the carrier’s applicable and effective tariff rate

8 and the rate originally billed and paid—

9 ‘‘(A) if such person qualifies as a small10 business concern under the Small Business Act

11 (15 U.S.C. 631 et seq.),

12 ‘‘(B) if such person is an organization

13 which is described in section 501(c)(3) of the In14 ternal Revenue Code of 1986 and exempt from

15 tax under section 501(a) of such Code, or

16 ‘‘(C) if the cargo involved in the claim is re17 cyclable materials, as defined in section 10733.’’.

18 (b) CONFORMING AMENDMENT.—Subsection (e) of such

19 section is amended by striking ‘‘In’’ and inserting ‘‘Except

20 as provided in subsection (f), in’’.

21 (c) APPLICABILITY.—The amendments made by sub22 sections (a) and (b) of this section shall apply to all claims

23 pending as of the date of the enactment of this Act and

24 to all claims arising from transportation shipments ten-
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1 dered on or before the last day of the 24-month period begin2 ning on such date of enactment.

3 (d) REPORT.—Not later than 18 months after the date

4 of the enactment of this Act, the Interstate Commerce Com5 mission shall transmit to Congress a report regarding

6 whether there exists a justification for extending the appli7 cability of amendments made by subsections (a) and (b) of

8 this section beyond the period specified in subsection (c).

9 (e) ALTERNATIVE PROCEDURE FOR RESOLVING DIS10 PUTES.—

11 (1) GENERAL RULE.—For purposes of section

12 10701 of title 49, United States Code, it shall be an

13 unreasonable practice for a motor carrier of property

14 (other than a household goods carrier) providing

15 transportation subject to the jurisdiction of the Com16 mission under subchapter II of chapter 105 of such

17 title, a freight forwarder (other than a household

18 goods freight forwarder), or a party representing such

19 a carrier or freight forwarder to attempt to charge or

20 to charge for a transportation service provided before

21 September 30, 1990, the difference between the appli22 cable rate that is lawfully in effect pursuant to a tar23 iff that is filed in accordance with chapter 107 of

24 such title by the carrier or freight forwarder applica25 ble to such transportation service and the negotiated
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1 rate for such transportation service if the carrier or

2 freight forwarder is no longer transporting property

3 between places described in section 10521(a)(1) of

4 such title or is transporting property between places

5 described in section 10521(a)(1) of such title for the

6 purpose of avoiding the application of this subsection.

7 (2) JURISDICTION OF COMMISSION.—The Com8 mission shall have jurisdiction to make a determina9 tion of whether or not attempting to charge or the

10 charging of a rate by a motor carrier or freight for11 warder or party representing a motor carrier or

12 freight forwarder is an unreasonable practice under

13 paragraph (1). If the Commission determines that at14 tempting to charge or the charging of the rate is an

15 unreasonable practice under paragraph (1), the car16 rier, freight forwarder, or party may not collect the

17 difference described in paragraph (1) between the ap18 plicable rate and the negotiated rate for the transpor19 tation service. In making such determination, the

20 Commission shall consider—

21 (A) whether the person was offered a trans22 portation rate by the carrier or freight forwarder

23 or party other than that legally on file with the

24 Commission for the transportation service;
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1 (B) whether the person tendered freight to

2 the carrier or freight forwarder in reasonable re3 liance upon the offered transportation rate;

4 (C) whether the carrier or freight forwarder

5 did not properly or timely file with the Commis6 sion a tariff providing for such transportation

7 rate or failed to enter into an agreement for con8 tract carriage;

9 (D) whether the transportation rate was

10 billed and collected by the carrier or freight for11 warder; and

12 (E) whether the carrier or freight forwarder

13 or party demands additional payment of a high14 er rate filed in a tariff.

15 (3) STAY OF ADDITIONAL COMPENSATION.—When

16 a person proceeds under this subsection to challenge

17 the reasonableness of the practice of a motor carrier,

18 freight forwarder, or party described in paragraph

19 (1) to attempt to charge or to charge the difference de20 scribed in paragraph (1) between the applicable rate

21 and the negotiated rate for the transportation service

22 in addition to those charges already billed and col23 lected for the transportation service, the person shall

24 not have to pay any additional compensation to the

25 carrier, freight forwarder, or party until the Commis-
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1 sion has made a determination as to the reasonable2 ness of the practice as applied to the freight of the

3 person against whom the claim is made.

4 (4) TREATMENT.—Paragraph (1) of this sub5 section is enacted as an exception, and shall be treat6 ed as an exception, to the requirements of sections

7 10761(a) and 10762 of title 49, United States Code,

8 relating to a filed tariff rate for a transportation or

9 service subject to the jurisdiction of the Commission

10 and other general tariff requirements.

11 (5) NONAPPLICABILITY OF NEGOTIATED RATE

12 DISPUTE RESOLUTION PROCEDURE.—If a person

13 elects to seek enforcement of paragraph (1) with re14 spect to a rate for a transportation or service, section

15 10701(f) of title 49, United States Code, as added by

16 subsection (a) of this section, shall not apply to such

17 rate.

18 (6) DEFINITIONS.—For purposes of this sub19 section, the following definitions apply:

20 (A) COMMISSION, HOUSEHOLD GOODS,

21 HOUSEHOLD GOODS FREIGHT FORWARDER, AND

22 MOTOR CARRIER.—The terms ‘‘Commission’’,

23 ‘‘household goods’’, ‘‘household goods freight for24 warder’’, and ‘‘motor carrier’’ have the meaning
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1 such terms have under section 10102 of title 49,

2 United States Code.

3 (B) NEGOTIATED RATE.—The term ‘‘nego4 tiated rate’’ means a rate, charge, classification,

5 or rule agreed upon by a motor carrier or freight

6 forwarder described in paragraph (1) and a

7 shipper through negotiations pursuant to which

8 no tariff was lawfully and timely filed with the

9 Commission and for which there is written evi10 dence of such agreement.

11 (f) PRIOR SETTLEMENTS AND ADJUDICATIONS.—Any

12 claim that, but for this subsection, would be subject to any

13 provision of this Act (including any amendment made by

14 this Act) and that was settled by mutual agreement of the

15 parties to such claim, or resolved by a final adjudication

16 of a Federal or State court, before the date of the enactment

17 of this Act shall be treated as binding, enforceable, and not

18 contrary to law, unless such settlement was agreed to as

19 a result of fraud or coercion.

20 (g) RATE REASONABLENESS.—Section 10701(e) of

21 title 49, United States Code, is amended by adding at the

22 end the following: ‘‘Any complaint brought against a motor

23 carrier (other than a carrier described in subsection

24 (f)(1)(A)) by a person (other than a motor carrier) for un-
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1 reasonably high rates for past or future transportation shall

2 be determined under this subsection.’’.

3 SEC. 3. STATUTE OF LIMITATIONS.

4 (a) MOTOR CARRIER CHARGES.—Section 11706(a) of

5 title 49, United States Code, is amended by striking the

6 period at the end and inserting the following: ‘‘; except that

7 a motor carrier (other than a motor carrier providing

8 transportation of household goods) or freight forwarder

9 (other than a household goods freight forwarder)—

10 ‘‘(1) must begin such a civil action within 2

11 years after the claim accrues if the transportation or

12 service is provided by the carrier in the 1-year period

13 beginning on the date of the enactment of the Nego14 tiated Rates Act of 1993; and

15 ‘‘(2) must begin such a civil action within 18

16 months after the claim accrues if the transportation

17 or service is provided by the carrier after the last day

18 of such 1-year period.’’.

19 (b) MOTOR CARRIER OVERCHARGES.—Section

20 11706(b) of title 49, United States Code, is amended by

21 striking ‘‘. If that claim is against a common carrier’’ and

22 inserting the following: ‘‘; except that a person must begin

23 a civil action to recover overcharges from a motor carrier

24 subject to the jurisdiction of the Commission under sub-
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1 chapter II of chapter 105 of this title for transportation

2 or service—

3 ‘‘(1) within 2 years after the claim accrues if

4 such transportation or service is provided in the 1-

5 year period beginning on the date of the enactment of

6 the Negotiated Rate Act of 1993; and

7 ‘‘(2) within 18 months after the claim accrues if

8 such transportation or service is provided after the

9 last day of such 1-year period.

10 If the claim is against a common carrier’’.

11 (c) CONFORMING AMENDMENT.—Section 11706(d) of

12 title 49, United States Code, is amended—

13 (1) by striking ‘‘3-year period’’ each place it ap14 pears and inserting ‘‘limitation periods’’;

15 (2) by striking ‘‘is extended’’ the first place it

16 appears and inserting ‘‘are extended’’; and

17 (3) by striking ‘‘each’’.

18 SEC. 4. TARIFF RECONCILIATION RULES FOR MOTOR CAR19 RIERS OF PROPERTY.

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

21 States Code, is amended by adding at the end the following:

22 ‘‘§ 11712. Tariff reconciliation rules for motor com23 mon carriers of property

24 ‘‘(a) MUTUAL CONSENT.—Subject to Commission re25 view and approval, motor carriers subject to the jurisdic-
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1 tion of the Commission under subchapter II of chapter 105

2 of this title (other than motor carriers providing transpor3 tation of household goods) and shippers may resolve, by mu4 tual consent, overcharge and undercharge claims resulting

5 from incorrect tariff provisions or billing errors arising

6 from the inadvertent failure to properly and timely file and

7 maintain agreed upon rates, rules, or classifications in

8 compliance with sections 10761 and 10762 of this title. Res9 olution of such claims among the parties shall not subject

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

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

12 Nothing in this section shall relieve the motor carrier of

13 the duty to file and adhere to its rates, rules, and classifica14 tions as required in sections 10761 and 10762, except as

15 provided in subsection (a) of this section.

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

17 days after the date of the enactment of this section, the Com18 mission shall institute a proceeding to establish rules pursu19 ant to which the tariff requirements of sections 10761 and

20 10762 of this title shall not apply under circumstances de21 scribed in subsection (a) of this section.’’.

22 (b) CONFORMING AMENDMENT.—The analysis for

23 chapter 117 of title 49, United States Code, is amended by

24 adding at the end the following:

‘‘11712. Tariff reconciliation rules for motor common carriers of property.’’.
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1 SEC. 5. CUSTOMER ACCOUNT CODES AND RANGE TARIFFS.

2 (a) CUSTOMER ACCOUNT CODES.—Section 10762 of

3 title 49, United States Code, is amended by adding at the

4 end the following:

5 ‘‘(h) CUSTOMER ACCOUNT CODES.—No tariff filed by

6 a motor carrier of property with the Commission before,

7 on, or after the date of the enactment of this subsection may

8 be held invalid solely on the basis that a numerical or alpha

9 account code is used in such tariff to designate customers

10 or to describe the applicability of rates. For transportation

11 performed on and after the 180th day following such date

12 of enactment, the name of the customer for each account

13 code must be set forth in the tariff (other than the tariff

14 of a motor carrier providing transportation of household

15 goods).’’.

16 (b) RANGE TARIFFS.—Such section is further amended

17 by adding at the end the following:

18 ‘‘(i) RANGE TARIFFS.—No tariff filed by a motor car19 rier of property with the Commission before, on, or after

20 the date of the enactment of this subsection may be held

21 invalid solely on the basis that the tariff does not show a

22 specific rate or discount for a specific shipment if the tariff

23 is based on a range of rates or discounts for specific classes

24 of shipments. For transportation performed on or after the

25 180th day following such date of enactment, such a range

26 tariff must identify the specific rate or discount from
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1 among the range of rates or discounts contained in such

2 range tariff which is applicable to each specific shipment

3 or must contain an objective means for determining the

4 rate.’’.

5 SEC. 6. CONTRACTS OF MOTOR CONTRACT CARRIERS.

6 (a) IN GENERAL.—Section 10702 of title 49, United

7 States Code, is amended by adding at the end the following

8 new subsection:

9 ‘‘(c) CONTRACTS OF CARRIAGE FOR MOTOR CONTRACT

10 CARRIERS.—

11 ‘‘(1) GENERAL RULE.—A motor contract carrier

12 providing transportation subject to the jurisdiction of

13 the Commission under subchapter II of chapter 105

14 of this title shall enter into a written agreement, sepa15 rate from the bill of lading or receipt, for each con16 tract for the provision of transportation subject to

17 such jurisdiction which is entered into after the 90th

18 day following the date of the enactment of this sub19 section.

20 ‘‘(2) MINIMUM CONTENT REQUIREMENTS.—The

21 written agreement shall, at a minimum—

22 ‘‘(A) identify the parties thereto;

23 ‘‘(B) commit the shipper to tender and the

24 carrier to transport a series of shipments;
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1 ‘‘(C) contain the contract rate or rates for

2 the transportation service to be or being pro3 vided; and

4 ‘‘(D)(i) state that it provides for the assign5 ment of motor vehicles for a continuing period of

6 time for the exclusive use of the shipper; or

7 ‘‘(ii) state that it provides that the service

8 is designed to meet the distinct needs of the ship9 per.

10 ‘‘(3) RETENTION BY CARRIER.—All written

11 agreements entered into by a motor contract carrier

12 under paragraph (1) shall be retained by the carrier

13 while in effect and for a minimum period of 3 years

14 thereafter and shall be made available to the Commis15 sion upon request.

16 ‘‘(4) RANDOM AUDITS BY COMMISSION.—The

17 Commission shall conduct periodic random audits to

18 ensure that motor contract carriers are complying

19 with this subsection and are adhering to the rates set

20 forth in their agreements.’’.

21 (b) CIVIL PENALTY.—Section 11901(g) of such title is

22 amended—

23 (1) by inserting ‘‘or enter into or retain a writ24 ten agreement under section 10702(c) of this title’’
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1 after ‘‘under this subtitle’’ the first place it appears;

2 and

3 (2) by striking ‘‘or (5)’’ and inserting ‘‘(5) does

4 not comply with section 10702(c) of this title, or (6)’’.

5 (c) CRIMINAL PENALTY.—Section 11909(b) of such

6 title is amended—

7 (1) by inserting ‘‘or enter into or retain a writ8 ten agreement under section 10702(c) of this title’’

9 after ‘‘under this subtitle’’ the first place it appears;

10 and

11 (2) in clause (1) by inserting after ‘‘make that

12 report’’ the following: ‘‘or willfully does not enter into

13 or retain that agreement’’.

14 SEC. 7. BILLING AND COLLECTING PRACTICES.

15 (a) IN GENERAL.—Subchapter IV of chapter 107 of

16 title 49, United States Code, is amended by adding at the

17 end the following:

18 ‘‘§ 10767. Billing and collecting practices

19 ‘‘(a) REGULATIONS LIMITING REDUCED RATES.—Not

20 later than 120 days after the date of the enactment of this

21 section, the Commission shall issue regulations that prohibit

22 a motor carrier subject to the jurisdiction of the Commis23 sion under subchapter II of chapter 105 of this title from

24 providing a reduction in a rate set forth in its tariff or

25 contract for the provision of transportation of property to
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1 any person other than (1) the person paying the motor car2 rier directly for the transportation service according to the

3 bill of lading, receipt, or contract, or (2) an agent of the

4 person paying for the transportation.

5 ‘‘(b) DISCLOSURE OF ACTUAL RATES, CHARGES, AND

6 ALLOWANCES.—The regulations of the Commission issued

7 pursuant to this section shall require a motor carrier to

8 disclose, when a document is presented or transmitted elec9 tronically for payment to the person responsible directly to

10 the motor carrier for payment or agent of such responsible

11 person, the actual rates, charges, or allowances for the

12 transportation service and shall prohibit any person from

13 causing a motor carrier to present false or misleading infor14 mation on a document about the actual rate, charge, or al15 lowance to any party to the transaction. Where the actual

16 rate, charge, or allowance is dependent upon the perform17 ance of a service by a party to the transportation arrange18 ment, such as tendering a volume of freight over a stated

19 period of time, the motor carrier shall indicate in any docu20 ment presented for payment to the person responsible di21 rectly to the motor carrier for the payment that a reduction,

22 allowance, or other adjustment may apply.

23 ‘‘(c) PAYMENTS OR ALLOWANCES FOR CERTAIN SERV24 ICES.—The regulations issued by the Commission pursuant

25 to this section shall not prohibit a motor carrier from mak-
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1 ing payments or allowances to a party to the transaction

2 for services that would otherwise be performed by the motor

3 carrier, such as a loading or unloading service, if the pay4 ments or allowances are reasonably related to the cost that

5 such party knows or has reason to know would otherwise

6 be incurred by the motor carrier.’’.

7 (b) CONFORMING AMENDMENT.—The analysis for such

8 subchapter is amended by adding at the end the following

9 new item:

‘‘10767. Billing and collecting practices.’’.

10 (c) VIOLATION.—

11 (1) IN GENERAL.—Section 11901 of such title is

12 amended by redesignating subsection (l) as subsection

13 (m) and by inserting after subsection (k) the follow14 ing:

15 ‘‘(l) RATE DISCOUNTS.—A person, or an officer, em16 ployee, or agent of that person, that knowingly pays, ac17 cepts, or solicits a reduced rate or rates in violation of the

18 regulations issued under section 10767 of this title is liable

19 to the United States for a civil penalty of not less than

20 $5,000 and not more than $10,000 plus 3 times the amount

21 of damages which a party incurs because of such violation.

22 Notwithstanding any other provision of this title, the ex23 press civil penalties and damages provided for in this sub24 section are the exclusive legal sanctions to be imposed under

25 this title for practices found to be in violation of the regula-
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1 tions issued under section 10767 and such violations do not

2 render tariff or contract provisions void or unenforceable.’’.

3 (2) VENUE.—Section 11901(m)(2) of such title

4 (as redesignated by paragraph (1)) is amended by

5 striking ‘‘or (k)’’ and inserting ‘‘(k), or (l)’’.

6 SEC. 8. RESOLUTION OF DISPUTES RELATING TO CON7 TRACT OR COMMON CARRIER CAPACITIES.

8 Section 11101 of title 49, United States Code, is

9 amended by adding at the end the following:

10 ‘‘(d) RESOLUTION OF DISPUTES RELATING TO CON11 TRACT OR COMMON CARRIER CAPACITIES.—If a motor car12 rier (other than a motor carrier providing transportation

13 of household goods) subject to the jurisdiction of the Com14 mission under subchapter II of chapter 105 of this title has

15 authority to provide transportation as both a motor com16 mon carrier and a motor contract carrier and a dispute

17 arises as to whether certain transportation is provided in

18 its common carrier or contract carrier capacity and the

19 parties are not able to resolve the dispute consensually, the

20 Commission shall have jurisdiction to, and shall, resolve the

21 dispute.’’.

22 SEC. 9. LIMITATION ON STATUTORY CONSTRUCTION.

23 ‘‘Nothing in this Act (including any amendment made

24 by this Act) shall be construed as limiting or otherwise af25 fecting application of title 11, United States Code, relating
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1 to bankruptcy; title 28, United States Code, relating to the

2 jurisdiction of the courts of the United States (including

3 bankruptcy courts); or the Employee Retirement Income

4 Security Act of 1974.’’

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