Union Calendar No. 163
104TH CONGRESS
1ST SESSION
H. R. 2539
[Report No. 104–311]
A BILL
To abolish the Interstate Commerce Commission, to
amend subtitle IV of title 49, United States
Code, to reform economic regulation of transpor-
tation, and for other purposes.
NOVEMBER 6, 1995
Reported with an amendment, committed to the Commit-
tee of the Whole House on the State of the Union, and
ordered to be printed
IB
Union Calendar No. 163
104TH CONGRESS
1ST SESSION
H. R. 2539
[Report No. 104–311]
To abolish the Interstate Commerce Commission, to amend subtitle IV of
title 49, United States Code, to reform economic regulation of transpor-
tation, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 26, 1995
Mr. SHUSTER (for himself, Mr. PETRI, Mr. RAHALL, and Ms. MOLINARI) in-
troduced the following bill; which was referred to the Committee on
Transportation and Infrastructure
NOVEMBER 6, 1995
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 October 26, 1995]
A BILL
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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘ICC Termination Act
of 1995’’.
TITLE I—ABOLITION OF INTER-
STATE COMMERCE COMMIS-
SION
SEC. 101. 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.
‘‘101.
GENERAL PROVISIONS ..............................................................
10101
‘‘103.
JURISDICTION ..............................................................................
10301
‘‘105.
RATES ..............................................................................................
10501
‘‘107.
LICENSING .....................................................................................
10701
‘‘109.
OPERATIONS .................................................................................
10901
‘‘111.
FINANCE .........................................................................................
11101
‘‘113.
FEDERAL-STATE RELATIONS .................................................
11301
‘‘115.
ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND REM-
EDIES.
11501
‘‘117.
CIVIL AND CRIMINAL PENALTIES .........................................
11701
‘‘PART B—MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND
FREIGHT FORWARDERS
‘‘CHAPTER
Sec.
‘‘131.
GENERAL PROVISIONS ..............................................................
13101
‘‘133.
ADMINISTRATIVE PROVISIONS ..............................................
13301
‘‘135.
JURISDICTION ..............................................................................
13501
‘‘137.
RATES AND THROUGH ROUTES ............................................
13701
‘‘139.
REGISTRATION .............................................................................
13901
‘‘141.
OPERATIONS OF CARRIERS ....................................................
14101
‘‘143.
FINANCE .........................................................................................
14301
‘‘145.
FEDERAL-STATE RELATIONS .................................................
14501
‘‘147.
ENFORCEMENT; 
INVESTIGATIONS; 
RIGHTS; 
REM-
EDIES.
14701
‘‘149.
CIVIL AND CRIMINAL PENALTIES .........................................
14901
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 nec-
essary to maintain the rail system and to attract cap-
ital;
‘‘(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 manage-
ment of railroads;
‘‘(10) to require rail carriers, to the maximum
extent practicable, to rely on individual rate in-
creases, and to limit the use of increases of general
applicability;
‘‘(11) to encourage fair wages and safe and suit-
able working conditions in the railroad industry;
‘‘(12) 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 mini-
mizing the burden on rail carriers of developing and
maintaining the capability of providing such infor-
mation; and
‘‘(14) to encourage and promote energy conserva-
tion.
‘‘§ 10102. Definitions
‘‘In this part—
‘‘(1) ‘car service’ includes (A) the use, control,
supply, movement, distribution, exchange, inter-
change, and return of locomotives, cars, other vehicles,
and special types of equipment used in the transpor-
tation of property by a rail carrier, and (B) the sup-
ply of trains by a rail carrier;
‘‘(2) ‘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;
‘‘(3) ‘Panel’ means the Transportation Adjudica-
tion Panel;
‘‘(4) ‘person’, in addition to its meaning under
section 1 of title 1, includes a trustee, receiver, as-
signee, or personal representative of a person;
‘‘(5) ‘rail carrier’ means a person providing
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, termi-
nal facility, and a freight depot, yard, and
ground, used or necessary for transportation;
‘‘(7) ‘rate’ means a rate, fare, 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, yard, prop-
erty, facility, instrumentality, or equipment of
any kind related to the movement of passengers
or property, or both, by rail, regardless of owner-
ship or an agreement concerning use; and
‘‘(B) services related to that movement, in-
cluding 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.
‘‘§10103. Remedies are exclusive
‘‘Except as otherwise provided in this part, the rem-
edies provided under this part are exclusive and preempt
the remedies provided under Federal or State law.
‘‘CHAPTER 103—JURISDICTION
‘‘Sec.
‘‘10301. General jurisdiction.
‘‘10302. Authority to exempt rail carrier transportation.
‘‘§ 10301. General jurisdiction
‘‘(a)(1) Subject to this chapter and other law, the
Panel has jurisdiction over transportation by rail carrier
that is—
‘‘(A) only by railroad; or
‘‘(B) by railroad and water, when the transpor-
tation is under common control, management, or ar-
rangement 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;
‘‘(B) a State and a place in a territory or pos-
session of the United States;
‘‘(C) a territory or possession of the United
States and a place in another such territory or pos-
session;
‘‘(D) a territory or possession of the United
States and another place in the same territory or pos-
session;
‘‘(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 Panel over—
‘‘(1) transportation by rail carriers, and the
remedies provided in this part with respect to rates,
classifications, rules (including car service, inter-
change, 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, en-
tirely in one State,
is exclusive.
‘‘(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 con-
tracts 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 Panel
does not have jurisdiction under this part over mass trans-
portation provided by a local governmental authority.
‘‘(3)(A) Notwithstanding paragraph (2) of this sub-
section, a local governmental authority, described in para-
graph (2), is subject to applicable laws of the United States
related to—
‘‘(i) safety;
‘‘(ii) the representation of employees for collective
bargaining; and
‘‘(iii) employment retirement, annuity, and un-
employment systems or other provisions related to
dealings between employees and employers.
‘‘(B) The Panel has jurisdiction under sections 10902
and 10903 of this title over mass transportation provided
by a local governmental authority.
‘‘§ 10302. Authority to exempt rail carrier transpor-
tation
‘‘(a) In a matter related to a rail carrier providing
transportation subject to the jurisdiction of the Panel under
this part, the Panel, to the maximum extent consistent with
this part, shall exempt a person, class of persons, or a trans-
action or service whenever the Panel finds that the applica-
tion of a provision of this part—
‘‘(1) is not necessary to carry out the transpor-
tation policy of section 10101 of this title; and
‘‘(2) either—
‘‘(A) the transaction or service is of limited
scope; or
‘‘(B) the application of the provision is not
needed to protect shippers from the abuse of mar-
ket power.
‘‘(b) The Panel may, where appropriate, begin a pro-
ceeding under this section on its own initiative or on appli-
cation by the Secretary of Transportation or an interested
party. The Panel shall, within 90 days after receipt of any
such application, determine whether to begin an appro-
priate proceeding. If the Panel decides not to begin a pro-
ceeding, 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 one year after it is begun.
‘‘(c) The Panel may specify the period of time during
which an exemption granted under this section is effective.
‘‘(d) The Panel may revoke an exemption, to the extent
it specifies, when it finds that application of a provision
of this part to the person, class, or transportation is nec-
essary to carry out the transportation policy of section
10101 of this title. The Panel shall, within 90 days after
receipt of a request for revocation under this subsection, de-
termine whether to begin an appropriate proceeding. If the
Panel decides not to begin a proceeding, the reasons for the
decision shall be published in the Federal Register. Any pro-
ceeding begun as a result of a request under this subsection
shall be completed within one year 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 11506 of this
title. Nothing in this subsection or section 11506 of this title
shall prevent rail carriers from offering alternative terms
nor give the Panel the authority to require any specific level
of rates or services based upon the provisions of section
11506 of this title.
‘‘(f) The Panel may exercise its authority under this
section to exempt transportation that is provided by a rail
carrier.
‘‘(g) The Panel may not exercise its authority under
this section to relieve a rail carrier of its obligation to pro-
tect the interests of employees as required by this part.
‘‘CHAPTER 105—RATES
‘‘SUBCHAPTER I—GENERAL AUTHORITY
‘‘Sec.
‘‘10501. Standards for rates, classifications, through routes, rules, and practices.
‘‘10502. Authority for rail carriers to establish rates, classifications, rules, and
practices.
‘‘10503. Authority for rail carriers to establish through routes.
‘‘10504. Authority and criteria: rates, classifications, rules, and practices pre-
scribed by Panel.
‘‘10505. Authority: through routes, joint classifications, rates, and divisions pre-
scribed by Panel.
‘‘10506. Rate agreements: exemption from antitrust laws.
‘‘10507. Determination of market dominance in rail rate proceedings.
‘‘10508. Inflation-based rate increases.
‘‘10509. Contracts.
‘‘SUBCHAPTER II—SPECIAL CIRCUMSTANCES
‘‘10521. Government traffic.
‘‘10522. Emergency rates.
‘‘10523. Car utilization.
‘‘SUBCHAPTER III—LIMITATIONS
‘‘10541. Prohibitions against discrimination by rail carriers.
‘‘10542. Facilities for interchange of traffic.
‘‘10543. Continuous carriage of freight.
‘‘10544. Transportation services or facilities furnished by shipper.
‘‘10545. Demurrage charges.
‘‘10546. Designation of certain routes by shippers.
‘‘SUBCHAPTER I—GENERAL AUTHORITY
‘‘§ 10501. 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 Panel under this part may not dis-
criminate in its rates against a connecting line of another
rail carrier providing transportation subject to the jurisdic-
tion of the Panel under this part or unreasonably discrimi-
nate 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 sec-
tion and unless a rate is prohibited by a provision of this
part, a rail carrier providing transporation subject to the
jurisdiction of the Panel under this part may establish any
rate for transportation or other service provided by the rail
carrier.
‘‘(d)(1) If the Panel determines, under section 10507
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.
‘‘(2) In determining whether a rate established by a
rail carrier is reasonable for purposes of this section, the
Panel shall recognize the policy of this part that rail car-
riers shall earn adequate revenues, as established by the
Panel under section 10504(a)(2) of this title.
‘‘(3) The Panel shall, within one year after the date
of the enactment of this paragraph, complete the pending
Interstate Commerce Commission non-coal rate guidelines
proceeding to establish simplified and expedited procedures
for the determination of rate reasonableness cases in which
a presentation of constrained market pricing evidence is
impractical.
‘‘§ 10502. Authority for rail carriers to establish rates,
classifications, rules, and practices
‘‘A rail carrier providing transportation or service
subject to the jurisdiction of the Panel under this part shall
establish reasonable—
‘‘(1) rates, including 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.
‘‘§ 10503. Authority for rail carriers to establish
through routes
‘‘Rail carriers providing transportation subject to the
jurisdiction of the Panel under this part shall establish
through routes with each other, 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.
‘‘§ 10504. Authority and criteria: rates, classifications,
rules, and practices prescribed by Panel
‘‘(a)(1) When the Panel, after a full hearing, decides
that a rate charged or collected by a rail carrier for trans-
portation subject to the jurisdiction of the Panel under this
part, or that a classification, rule, or practice of that car-
rier does or will violate this part, the Panel may prescribe
the maximum rate, classification, rule, or practice to be fol-
lowed. The Panel may order the carrier to stop the viola-
tion. When a rate, classification, rule, or practice is pre-
scribed 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 Panel.
‘‘(2) The Panel shall maintain and revise as necessary
standards and procedures for establishing revenue levels for
rail carriers providing transportation subject to its juris-
diction under this part that are adequate, under honest, eco-
nomical, and efficient management, to cover total operating
expenses, including depreciation and obsolescence, plus a
reasonable and economic profit or return (or both) on cap-
ital employed in the business. The Panel shall make an ade-
quate and continuing effort to assist those carriers in at-
taining revenue levels prescribed under this paragraph.
Revenue levels established under this paragraph should—
‘‘(A) provide a flow of net income plus deprecia-
tion adequate to support prudent capital outlays, as-
sure the repayment of a reasonable level of debt, per-
mit the raising of needed equity capital, and cover the
effects of inflation; and
‘‘(B) attract and retain capital in amounts ade-
quate to provide a sound transportation system in the
United States.
‘‘(3) On the basis of the standards and procedures de-
scribed in paragraph (2), the Panel shall annually deter-
mine which rail carriers are earning adequate revenues.
‘‘(b) The Panel may begin a proceeding under this sec-
tion on its own initiative or on complaint. A complaint
under subsection (a) of this section must be made under
section 11501 of this title, but the proceeding may also be
in extension of a complaint pending before the Panel.
‘‘§ 10505. Authority: through routes, joint classifica-
tions, rates, and divisions prescribed by
Panel
‘‘(a)(1) The Panel 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 oper-
ated, for a rail carrier providing transportation subject to
the jurisdiction of the Panel under this part.
‘‘(2) The Panel 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 intermedi-
ate railroad lies between the terminals of the through route
only when—
‘‘(A) required under sections 10541, 10542, or
11101 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 Panel decides that the proposed through
route is needed to provide adequate, and more effi-
cient or economic, transportation.
The Panel shall give reasonable preference, subject to this
subsection, to the rail carrier originating the traffic when
prescribing through routes.
‘‘(b) The Panel shall prescribe the division of joint
rates to be received by a rail carrier providing transpor-
tation subject to its jurisdiction under this part when it
decides that a division of joint rates established by the par-
ticipating carriers under section 10503 of this title, or
under a decision of the Panel under subsection (a) of this
section, does or will violate section 10501 of this title.
‘‘(c) If a division of a joint rate prescribed under a
decision of the Panel is later found to violate section 10501
of this title, the Panel may decide what division would have
been reasonable and order adjustment to be made retro-
active to the date the complaint was filed, the date the order
for an investigation was made, or a later date that the
Panel decides is justified. The Panel may make a decision
under this subsection effective as part of its original deci-
sion.
‘‘§ 10506. Rate agreements: exemption from antitrust
laws
‘‘(a)(1) In this subsection—
‘‘(A) the term ‘affiliate’ means a person control-
ling, controlled by, or under common control or own-
ership with another person and ‘ownership’ refers to
equity holdings in a business entity of at least 5 per-
cent;
‘‘(B) the term ‘single-line rate’ refers to a rate or
allowance proposed by a single rail carrier that is ap-
plicable only over its line and for which the transpor-
tation (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 Panel shall
by regulation prescribe.
‘‘(2)(A) A rail carrier providing transportation subject
to the jurisdiction of the Panel 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 com-
pensation paid or received for the use of facilities and
equipment), classifications, divisions, or rules related to
them, or procedures for joint consideration, initiation, pub-
lication, or establishment of them, shall apply to the Panel
for approval of that agreement under this subsection. The
Panel 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 ap-
proval. If the Panel approves the agreement, it may be made
and carried out under its terms and under the conditions
required by the Panel, and the Sherman Act (15 U.S.C.
1, et seq.), the Clayton Act (15 U.S.C. 12, et seq.), the Fed-
eral 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),
it by the 120th day after the proposal is docketed. Such
an organization may not—
‘‘(i) permit a rail carrier to discuss, to partici-
pate 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 Panel 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 partici-
pate in agreements related to, or to vote on rates re-
lated 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 re-
lated to, or to vote on rates except with a carrier
which forms part of a particular single route. If the
Panel 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 com-
bination 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 traf-
fic. 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 resulting from such discussion
or agreement, shall not be admissible if the discussion or
agreement—
‘‘(I) was in accordance with an agreement ap-
proved 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 satis-
fied before allowing the introduction of any such evidence.
‘‘(C) 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 Panel 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 disclo-
sure under section 552 of title 5, United States Code.
‘‘(4) Notwithstanding any other provision of this sub-
section, one or more rail carriers may enter into an agree-
ment, without obtaining prior Panel approval, that pro-
vides solely for compilation, publication, and other dis-
tribution of rates in effect or to become effective. The Sher-
man 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 per-
sons with respect to making or carrying out such agreement.
However, the Panel may, upon application or on its own
initiative, investigate whether the parties to such an agree-
ment have exceeded its scope, and upon a finding that they
have, the Panel may issue such orders as are necessary, in-
cluding an order dissolving the agreement, to ensure that
actions taken pursuant to the agreement are limited as pro-
vided 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 ju-
risdiction of the Panel under this part, for use by such rail
carriers of rolling stock owned or leased by such shippers,
the shippers shall apply to the Panel for approval of that
agreement under this paragraph. The Panel shall approve
the agreement only when it finds that the making and car-
rying out of the agreement will further the transportation
policy set forth in section 10101 of this title and may re-
quire compliance with conditions necessary to make the
agreement further that policy as a condition of approval.
If the Panel approves the agreement, it may be made and
carried out under its terms and under the terms required
by the Panel, and the antitrust laws set forth in paragraph
(2) of this subsection do not apply to parties and other per-
sons with respect to making or carrying out the agreement.
The Panel 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 Panel approves an agreement described in
subparagraph (A) of this paragraph and the shippers enter-
ing into such agreement and the rail carriers proposing to
use rolling stock owned 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 Panel.
The Panel shall render a binding decision, based upon a
standard of reasonableness and after taking into consider-
ation any past precedents on the subject matter of the nego-
tiations, no later than 90 days after the date of the submis-
sion of the dispute to the Panel.
‘‘(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 ship-
pers.
‘‘(b) The Panel may require an organization estab-
lished or continued under an agreement approved under
this section to maintain records and submit reports. The
Panel may inspect a record maintained under this section.
‘‘(c) The Panel 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
Panel shall postpone the effective date of a change of an
agreement under this subsection for whatever period it de-
termines to be reasonably necessary to avoid unreasonable
hardship.
‘‘(d) The Panel may begin a proceeding under this sec-
tion on its own initiative or on application. Action of the
Panel under this section—
‘‘(1) approving an agreement;
‘‘(2) denying, ending, or changing approval;
‘‘(3) prescribing the conditions on which ap-
proval 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) The Panel shall review each agreement approved
under subsection (a) of this section periodically, but at least
once every 3 years—
‘‘(1) to determine whether the agreement or an
organization established or continued under one of
those agreements still complies with the requirements
of that subsection and the public interest; and
‘‘(2) to evaluate the success and effect of that
agreement or organization on the consuming public
and the national rail freight transportation system.
If the Panel finds that an agreement or organization does
not conform to the requirements of that subsection, it shall
end or suspend its approval.
‘‘(f)(1) The Federal Trade Commission, in consulta-
tion with the Antitrust Division of the Department of Jus-
tice, shall prepare periodically an assessment of, and shall
report to the Panel 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 anti-
competitive feature, effect, or aspect in a manner that
will further the goals of this part and of the transpor-
tation policy of section 10101 of this title.
‘‘(2) Reports received by the Panel under this sub-
section shall be published and made available to the public
under section 552(a) of title 5.
‘‘§ 10507. Determination of market dominance in rail
rate proceedings
‘‘(a) In this section, ‘market dominance’ means an ab-
sence of effective competition from other rail carriers or
modes of transportation for the transportation to which a
rate applies.
‘‘(b) When a rate for transportation by a rail carrier
providing transportation subject to the jurisdiction of the
Panel under this part is challenged as being unreasonably
high, the Panel shall determine, within 90 days after the
start of a proceeding, whether the rail carrier proposing the
rate has market dominance over the transportation to which
the rate applies. The Panel may make that determination
on its own initiative or on complaint. A finding by the
Panel 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 Panel or set aside by a court of competent jurisdic-
tion.
‘‘(c) When the Panel finds in any proceeding that a
rail carrier proposing or defending a rate for transpor-
tation 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 ex-
ceeds a reasonable maximum.
‘‘(d)(1)(A) In making a determination under this sec-
tion, the Panel 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 car-
rier proves that the rate charged results in a revenue-vari-
able cost percentage for such transportation that is less than
180 percent.
‘‘(B) For purposes of this section, variable costs for a
Class I rail carrier shall be determined only by using such
carrier’s unadjusted costs, calculated using the Panel’s Rail
Form A cost finding methodology (or an alternative meth-
odology adopted by the Panel 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 Panel. 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 accord-
ance with such burden of proof, as the Panel shall prescribe.
‘‘(2) A finding by the Panel 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 presump-
tion that—
‘‘(A) such rail carrier has or does not have mar-
ket dominance over such transportation; or
‘‘(B) the proposed rate exceeds or does not exceed
a reasonable maximum.
‘‘§ 10508. Inflation-based rate increases
‘‘(a) The Panel may, on a quarterly basis and consist-
ent with the rail transportation policy set forth in section
10101 of this title, prescribe a percentage rate index for rail
carriers in order to compensate for inflationary cost in-
creases. Such percentage rate index may be applicable on
an industry-wide, territory-wide, or carrier-by-carrier
basis.
‘‘(b) For purposes of this section, a percentage rate
index may permit rate increases within a specified range
to allow carriers to recover a total revenue increase specified
by the Panel as necessary to compensate for inflationary
cost increases.
‘‘(c) The Panel shall, as often as practicable, but in
no event less often than quarterly, publish a rail cost adjust-
ment 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 Panel, with ap-
propriate adjustments to reflect the changing 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.
‘‘§ 10509. Contracts
‘‘(a) One or more rail carriers providing transpor-
tation subject to the jurisdiction of the Panel 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 sec-
tion 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 Panel 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.
‘‘(d) Documents, papers, and records (and any copies
thereof) relating to a contract described in subsection (a)
shall not be subject to the mandatory disclosure require-
ments 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.
‘‘SUBCHAPTER II—SPECIAL CIRCUMSTANCES
‘‘§ 10521. Government traffic
‘‘A rail 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 ob-
tained from a rail carrier lawfully operating in the area
where the transportation would be provided.
‘‘§ 10522. Emergency rates
‘‘(a) The Panel may authorize a rail carrier providing
transportation or service subject to its jurisdiction under
this part to give reduced rates for service and transpor-
tation of property to or from an area in the United States
to provide relief during emergencies. When the Panel takes
action under this subsection, it must—
‘‘(1) define the area of the United States in
which the reduced rates will apply;
‘‘(2) specify the period during which the reduced
rates are to be in effect; and
‘‘(3) define the class of persons entitled to the re-
duced rates.
‘‘(b) The Panel may specify those persons entitled to
reduced rates by reference to those persons designated as
being in need of relief by the United States Government
or by a State government authorized to assist in providing
relief during the emergency. The Panel may act under this
section without regard to subchapter II of chapter 5 of title
5.
‘‘§ 10523. 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 ap-
plicable to the movement. The Panel shall facilitate develop-
ment of such charges so as to increase the utilization of
equipment.
‘‘SUBCHAPTER III—LIMITATIONS
‘‘§ 10541. Prohibitions against discrimination by rail
carriers
‘‘(a)(1) A rail carrier providing transportation or
service subject to the jurisdiction of the Panel 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 ren-
dered, 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 contempora-
neous 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 10509 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 serv-
ices provided by rail carriers.
‘‘§ 10542. Facilities for interchange of traffic
‘‘A rail carrier providing transportation subject to the
jurisdiction of the Panel under this part shall provide rea-
sonable, 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 connect-
ing line of another rail carrier.
‘‘§ 10543. Continuous carriage of freight
‘‘A rail carrier providing transportation or service
subject to the jurisdiction of the Panel under this part may
not enter a combination or arrangement to prevent the car-
riage 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 pur-
pose, and with the intent of avoiding or unnecessarily inter-
rupting the continuous carriage or of evading this part.
‘‘§ 10544. Transportation services or facilities fur-
nished by shipper
‘‘A rail carrier providing transportation or service
subject to the jurisdiction of the Panel under this part may
publish 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 instrumental-
ity used in the transportation or service. The Panel 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 Panel
may begin a proceeding under this section on its own ini-
tiative or on application.
‘‘§ 10545. Demurrage charges
‘‘A rail carrier providing transportation subject to the
jurisdiction of the Panel under this part shall compute de-
murrage 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 prop-
erty.
‘‘§ 10546. Designation of certain routes by shippers
‘‘(a)(1) When a person delivers property to a rail car-
rier for transportation subject to the jurisdiction of the
Panel under this part, the person may direct the rail car-
rier 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 des-
ignation 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
‘‘(C) the rail carrier is a party to those routes
and rates.
‘‘(2) A rail carrier directed to route property trans-
ported 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 accord-
ing to the routing instructions and deliver it to the next
succeeding rail carrier or consignee according to the in-
structions.
‘‘(b) The Panel may prescribe exceptions to the author-
ity of a person to direct the movement of traffic under sub-
section (a) of this section.
‘‘CHAPTER 107—LICENSING
‘‘Sec.
‘‘10701. Authorizing construction and operation of railroad lines.
‘‘10702. Finance and construction transactions by Class II and Class III rail car-
riers and noncarriers.
‘‘10703. Filing and procedure for notice of intent to abandon or discontinue.
‘‘10704. Offers to purchase to avoid abandonment and discontinuance.
‘‘10705. Offering abandoned rail properties for sale for public purposes.
‘‘10706. Exception.
‘‘§ 10701. Authorizing construction and operation of
railroad lines
‘‘(a) A rail carrier providing transportation subject to
the jurisdiction of the Panel under this part may—
‘‘(1) construct an extension to any of its railroad
lines;
‘‘(2) construct an additional railroad line;
‘‘(3) acquire or operate an extended or addi-
tional railroad line; or
‘‘(4) provide transportation over, or by means of,
an extended or additional railroad line;
only if the Panel issues a certificate authorizing such activ-
ity under subsection (c).
‘‘(b) A proceeding to grant authority under subsection
(a) of this section begins when an application is filed. On
receiving the application, the Panel shall give reasonable
public notice of the beginning of such proceeding.
‘‘(c) The Panel shall issue a certificate authorizing ac-
tivities for which such authority is requested in an applica-
tion filed under subsection (b) unless the Panel 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 the Panel finds necessary in the public in-
terest.
‘‘(d)(1) When a certificate has been issued by the Panel
under this section or section 10702 authorizing the con-
struction or extension of a railroad line, no other rail car-
rier 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
‘‘(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 Panel for determination. The
Panel shall make a determination under this paragraph
within 90 days after the dispute is submitted for determina-
tion.
‘‘(e) The Panel may require any rail carrier proposing
both to construct and operate a new railroad line pursuant
to this section to provide a fair and equitable arrangement
for the protection of the interests of railroad employees who
may be affected thereby no less protective of and beneficial
to the interests of such employees than those established pur-
suant to section 11126 of this title.
‘‘(f) Subsections (a), (b), (c), and (e) of this section
shall only apply to Class I rail carriers.
‘‘§ 10702. Finance and construction transactions by
Class II and Class III rail carriers and
noncarriers
‘‘(a)(1) A Class II or Class III (as defined by the
Panel) rail carrier providing transportation subject to the
jurisdiction of the Panel under this part, or a noncarrier,
may—
‘‘(A) construct an extension of any of its rail-
road lines;
‘‘(B) construct an additional railroad line; or
‘‘(C) acquire or operate a railroad line,
only if the Panel issues a certificate authorizing such activ-
ity under subsection (c).
‘‘(2) A certificate issued by the Panel under subsection
(c) shall also be required for—
‘‘(A) a Class II or Class III rail carrier provid-
ing transportation subject to the jurisdiction of the
Panel under this part, or a noncarrier to provide
transportation over, or by means of, a railroad line
by trackage rights, lease, or joint ownership or joint
use of the railroad line (and terminals incidental
thereto);
‘‘(B) a consolidation or merger of the properties
or franchises of at least 2 Class II or Class III rail
carriers into one corporation for the ownership, man-
agement, and operation of the previously separately
owned properties;
‘‘(C) the acquisition of control of a Class II or
Class III rail carrier by one or more Class II or Class
III rail carriers;
‘‘(D) the acquisition of control of at least 2 Class
II or Class III rail carriers by a person that is not
a rail carrier; and
‘‘(E) the acquisition of control of a Class II or
Class III rail carrier by a person that is not a rail
carrier but that controls at least one Class II or Class
III rail carrier.
‘‘(b) A proceeding to grant authority under subsection
(a) begins when an application is filed. On receiving the
application, the Panel shall give reasonable public notice
of the beginning of such proceeding.
‘‘(c) The Panel shall issue a certificate authorizing ac-
tivities for which such authority is requested in an applica-
tion filed under subsection (b) unless the Panel finds that
such activities are inconsistent with the public convenience
and necessity because—
‘‘(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.
Such certificate may approve the application as filed, or
with modifications, and may require compliance with con-
ditions the Panel finds necessary in the public interest.
‘‘(d) When a person is involved in a transaction for
which approval is sought under this section, the Panel shall
require such person to protect the interest of affected em-
ployees to an extent equal to the protection required under
sections 2 through 5 of the Worker Adjustment and Retrain-
ing Notification Act (29 U.S.C. 2101–2104).
‘‘(e) The authority of the Panel over transactions de-
scribed in subsection (a)(2) is exclusive. A rail carrier or
corporation participating in or resulting from such a trans-
action may carry out the transaction, own and operate
property, and exercise control or franchises acquired
through the transaction without the approval of a State au-
thority. A rail carrier, corporation, or person participating
in that 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.
‘‘§ 10703. Filing and procedure for notice of intent to
abandon or discontinue
‘‘(a)(1) A rail carrier providing transportation subject
to the jurisdiction of the Panel under this part who intends
to—
‘‘(A) abandon any part of its railroad lines; or
‘‘(B) discontinue the operation of all rail trans-
portation over any part of its railroad lines,
must file a notice of intent relating thereto with the Panel.
An abandonment or discontinuance may be carried out
only as authorized under this chapter.
‘‘(2) When a rail carrier providing transportation sub-
ject to the jurisdiction of the Panel under this part files
a notice of intent, the notice shall include—
‘‘(A) an accurate and understandable summary
of the rail carrier’s reasons for the proposed abandon-
ment or discontinuance;
‘‘(B) a statement indicating that each interested
person is entitled to make recommendations to the
Panel on the future of the rail line; and
‘‘(C)(i) a statement that the line is available for
sale in accordance with section 10704 of this title, (ii)
a statement that the rail carrier will promptly pro-
vide to each interested party an estimate of the mini-
mum purchase price, calculated in accordance with
section 10704 of this title and (iii) the name and
business address of the person who is authorized to
discuss sale terms for the rail carrier.
‘‘(3) The rail carrier shall—
‘‘(A) send by certified mail a copy of the notice
of intent to the chief executive officer of each State
that would be directly affected by the proposed aban-
donment or discontinuance;
‘‘(B) post a copy of the notice in each terminal
and station on each portion of a railroad line pro-
posed to be abandoned or over which all transpor-
tation is to be discontinued;
‘‘(C) publish a copy of the notice for 3 consecu-
tive 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 Panel) of the railroad line
during the 12 months preceding the filing of the no-
tice of intent; and
‘‘(E) attach to the notice filed with the Panel an
affidavit certifying the manner in which subpara-
graphs (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 notice of intent is filed.
‘‘(b)(1) Except as provided in paragraph (2) or sub-
section (d), abandonment and discontinuance may occur as
provided in section 10704.
‘‘(2) If, after considering the scope of an abandonment
or discontinuance proposed in a notice of intent filed under
this section, the Panel considers it necessary, to improve
the viability of the lines included within the proposed aban-
donment or discontinuance for possible sale or transfer and
continued operation, and to enhance competitive alter-
natives in the event of such sale or transfer, the Panel may
require the filing of a new notice of intent which enlarges
the scope of the proposed abandonment or discontinuance
or provides for appropriate trackage rights.
‘‘(3) The Panel shall require as a condition of any
abandonment or discontinuance under this section provi-
sions to protect the interests of employees. The provisions
shall be at least as beneficial to those interests as the provi-
sions established under sections 11126 and 24706(c) of this
title.
‘‘(c)(1) In this subsection, the term ‘potentially subject
to abandonment’ has the meaning given the term in regula-
tions of the Panel. 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 dia-
gram of the transportation system operated, directly or in-
directly, by the rail carrier. The rail carrier shall submit
to the Panel 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
‘‘(B) identify each railroad line for which the
rail carrier plans to file a notice of intent to abandon
or discontinue under subsection (a) of this section.
‘‘(d) The Panel may disapprove a proposed abandon-
ment or discontinuance if the Panel finds it inconsistent
with the public convenience and necessity.
‘‘§ 10704. Offers to purchase to avoid abandonment
and discontinuance
‘‘(a) Any rail carrier which has filed a notice of intent
to abandon or discontinue shall provide promptly to a
party considering an offer to purchase and shall provide
concurrently to the Panel—
‘‘(1) a statement of the minimum purchase price
required;
‘‘(2) its most recent reports on the physical con-
dition of that part of the railroad line involved in the
proposed abandonment or discontinuance;
‘‘(3) traffic, revenue, and other data necessary to
determine the commercial potential of the railroad
line; and
‘‘(4) any other information that the Panel con-
siders necessary to allow a potential offeror to cal-
culate an adequate purchase offer.
‘‘(b) Within 6 months after a notice of intent is filed
under section 10703, any person may offer to purchase the
railroad line that is the subject of such notice of intent.
Such offer shall be filed concurrently with the Panel. If the
offer to purchase is less than the minimum purchase price
stated pursuant to subsection (a)(1), the offer shall explain
the basis of the disparity, and the manner in which the
offer is calculated.
‘‘(c)(1) Unless the Panel, within 15 days after the expi-
ration of the 6-month period described in subsection (b),
finds that one or more financially responsible persons (in-
cluding a governmental authority) have offered to purchase
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 10703.
‘‘(2) If the Panel finds that such an offer or offers to
purchase have 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
sale of the line; or
‘‘(B) the conditions and amount of compensation
are established under subsection (e).
‘‘(d) Except as provided in subsection (e)(3), if the rail
carrier and a financially responsible person (including a
governmental authority) fail to agree on the amount or
terms of the purchase, either party may, within 30 days
after the offer is made, request that the Panel establish the
conditions and amount of compensation.
‘‘(e)(1) Whenever the Panel is requested to establish the
conditions and amount of compensation under this sec-
tion—
‘‘(A) the Panel shall render its decision within
30 days;
‘‘(B) the Panel shall determine the price and
other terms of sale, except that in no case shall the
Panel 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).
‘‘(2) The decision of the Panel shall be binding on both
parties, except that the person who has offered to purchase
the line may withdraw his offer within 10 days of the Pan-
el’s decision. In such a case, the abandonment or dis-
continuance may 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
purchase, it shall select the offeror with whom it wishes to
transact business, and complete the sale agreement, or re-
quest that the Panel establish the conditions and amount
of compensation before the 40th day after the expiration of
the 6-month period described in subsection (b). If no agree-
ment on sale is reached within such 40-day period and the
Panel has not been requested to establish the conditions and
amount of compensation, any other offeror whose offer was
made within the 6-month period described in subsection (b)
may request that the Panel establish the conditions and
amount of compensation. If the Panel has established the
conditions and amount of compensation, and the original
offer has been withdrawn, any other offeror whose offer was
made within the 6-month period described in subsection (b)
may accept the Panel’s decision within 20 days after such
decision, and the Panel shall require the carrier to enter
into a sale agreement with such offeror, if such sale agree-
ment incorporates the Panel’s decision.
‘‘(4) 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 con-
summation of the sale, nor may such purchaser transfer
such line, except to the rail carrier from whom it was pur-
chased, prior to the end of the fifth year after consummation
of the sale.
‘‘(f) Upon abandonment of a railroad line under this
section, the obligation of the rail carrier abandoning the
line to provide transportation on that line, as required by
section 10901(a), is extinguished.
‘‘§ 10705. Offering abandoned rail properties for sale
for public purposes
‘‘When a rail carrier files a notice of intent to abandon
or discontinue under section 10703, the Panel 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 trans-
mission, or recreation. If the Panel finds that the rail prop-
erties 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 dis-
posed of only under conditions provided in the order of the
Panel. 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 pur-
poses.
‘‘§ 10706. Exception
‘‘Notwithstanding section 10701 and subchapter II of
chapter 111 of this title, and without the approval of the
Panel, a rail carrier providing transportation subject to the
jurisdiction of the Panel under this part may enter into
arrangements for the joint ownership or joint use of spur,
industrial, team, switching, or side tracks.
‘‘CHAPTER 109—OPERATIONS
‘‘SUBCHAPTER I—GENERAL REQUIREMENTS
‘‘Sec.
‘‘10901. Providing transportation, service, and rates.
‘‘10902. Use of terminal facilities.
‘‘10903. Switch connections and tracks.
‘‘SUBCHAPTER II—CAR SERVICE
‘‘10921. Criteria.
‘‘10922. Compensation and practice.
‘‘10923. Rerouting traffic on failure of rail carrier to serve the public.
‘‘10924. War emergencies; embargoes imposed by carriers.
‘‘SUBCHAPTER III—REPORTS AND RECORDS
‘‘10941. Definitions.
‘‘10942. Uniform accounting system.
‘‘10943. Depreciation charges.
‘‘10944. Records: form; inspection; preservation.
‘‘10945. Reports by rail carriers, lessors, and associations.
‘‘SUBCHAPTER IV—RAILROAD COST ACCOUNTING
‘‘10961. Implementation of cost accounting principles.
‘‘10962. Rail carrier cost accounting system.
‘‘10963. Cost availability.
‘‘10964. Accounting and cost reporting.
‘‘SUBCHAPTER I—GENERAL REQUIREMENTS
‘‘§ 10901. Providing transportation, service, and rates
‘‘(a) A rail carrier providing transportation or service
subject to the jurisdiction of the Panel 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 con-
tracts authorized under section 10509 of this title before re-
sponding to reasonable requests for service.
‘‘(b) A rail carrier shall also provide to any person,
on request, rates and other service terms. The response by
a rail carrier to a request for 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 car-
rier rates or change any common carrier service terms un-
less written notice is provided in accordance with subsection
(d) to—
‘‘(1) any person who has requested such rates or
terms under subsection (b); and
‘‘(2) any person who has made arrangements
with the carrier for a shipment that would be subject
to such increased rates or changed terms.
‘‘(d) The Panel shall, by regulation, establish rules to
implement this section, including appropriate periods of
notice.
‘‘§ 10902. Use of terminal facilities
‘‘(a) The Panel may require terminal facilities, includ-
ing main-line tracks for a reasonable distance outside of
a terminal, owned by a rail carrier providing transpor-
tation subject to the jurisdiction of the Panel under this
part, to be used by another rail carrier if the Panel finds
that use to be practicable and in the public interest without
substantially impairing the ability of the rail carrier own-
ing the facilities or entitled to use the facilities to handle
its own business. The rail carriers are responsible for estab-
lishing the conditions and compensation for use of the fa-
cilities. However, if the rail carriers cannot agree, the Panel
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 re-
quired 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 ap-
propriate, 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 Panel 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 agree-
ment shall establish the conditions and compensation appli-
cable to such agreement, but, if the rail carriers cannot
agree upon such conditions and compensation within a rea-
sonable period of time, the Panel may establish such condi-
tions and compensation.
‘‘(2) The Panel may require reciprocal switching
agreements entered into by rail carriers pursuant to this
subsection to contain provisions for the protection of the in-
terests of employees affected thereby.
‘‘(d) The Panel shall complete any proceeding under
subsection (a) or (b) within 180 days after the filing of the
request for relief.
‘‘§ 10903. 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 Panel 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.
‘‘(b) If a rail carrier fails to install and operate a
switch connection after application is made under sub-
section (a) of this section, the owner of the lateral branch
line of railroad or the shipper may file a complaint with
the Panel under section 11501 of this title. The Panel shall
investigate the complaint and decide the safety, practicabil-
ity, justification, and compensation to be paid for the con-
nection. The Panel may direct the rail carrier to comply
with subsection (a) of this section only after a full hearing.
‘‘SUBCHAPTER II—CAR SERVICE
‘‘§ 10921. Criteria
‘‘(a)(1) A rail carrier providing transportation subject
to the jurisdiction of the Panel under this part shall furnish
safe and adequate car service and establish, observe, and
enforce reasonable rules and practices on car service. The
Panel may require a rail carrier to provide facilities and
equipment that are reasonably necessary to furnish safe and
adequate car service if the Panel decides that the rail car-
rier has materially failed to furnish that service. The Panel
may begin a proceeding under this paragraph when an in-
terested person files an application with it. The Panel 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 transpor-
tation;
‘‘(B) the amount spent for the facilities or equip-
ment, 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 Panel may require a rail carrier to file its
car service rules with the Panel.
‘‘(b) The Panel may designate and appoint agents and
agencies to make and carry out its directions related to car
service and matters under sections 10923 and 10924(a)(1)
of this title.
‘‘§ 10922. Compensation and practice
‘‘(a) The regulations of the Panel 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 per-
son; 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 determin-
ing the rate of compensation, the Panel shall consider the
transportation use of each type of freight car, the national
level of ownership of each type of freight car, and other fac-
tors that affect the adequacy of the national freight car sup-
ply.
‘‘§ 10923. Rerouting traffic on failure of rail carrier to
serve the public
‘‘(a) When the Panel considers that a rail carrier pro-
viding transportation subject to the jurisdiction of the Panel
under this part cannot transport the traffic offered to it
in a manner that properly serves the public, the Panel may
direct the handling, routing, and movement of the traffic
of that rail carrier and its distribution over other railroad
lines to promote commerce and service to the public. Subject
to subsection (b)(2) of this section, the rail carriers may
establish the terms of compensation between themselves.
‘‘(b)(1) Except as provided in paragraph (2) of this
subsection, the Panel may act under this section on its own
initiative or on application without regard to subchapter
II of chapter 5 of title 5.
‘‘(2) When the rail carriers do not agree on the terms
of compensation under this section, the Panel may establish
the terms for them in a later proceeding.
‘‘(c) When there is a shortage of equipment, congestion
of traffic, or other emergency declared by the Panel, it may
prescribe temporary through routes that are desirable in the
public interest on its own initiative or on application with-
out regard to subchapter II of chapter 7 of this title, and
subchapter II of chapter 5 of title 5.
‘‘§ 10924. War emergencies; embargoes imposed by car-
riers
‘‘(a)(1) When the President, during time of war or
threatened war, notifies the Panel 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 Panel
shall direct that preference or priority be given to that traf-
fic.
‘‘(2) When the President, during time of war or threat-
ened 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 Panel under this part shall
adopt every means within their control to facilitate and ex-
pedite 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
‘‘§ 10941. Definitions
‘‘In this subchapter—
‘‘(1) the terms ‘rail carrier’ and ‘lessor’ include
a receiver or trustee of a rail carrier and lessor, re-
spectively;
‘‘(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 Panel under this part; and
‘‘(3) the term ‘association’ means an organiza-
tion maintained by or in the interest of a group of
rail carriers providing transportation or service sub-
ject to the jurisdiction of the Panel under this part
that performs a service, or engages in activities, relat-
ed to transportation under this part.
‘‘§ 10942. Uniform accounting system
‘‘The Panel may prescribe a uniform accounting sys-
tem for classes of rail carriers providing transportation
subject to the jurisdiction of the Panel under this part. To
the maximum extent practicable, the Panel shall conform
such system to generally accepted accounting principles,
and shall administer this subchapter in accordance with
such principles.
‘‘§ 10943. Depreciation charges
‘‘The Panel shall, for a class of rail carriers providing
transportation subject to its jurisdiction under this part,
prescribe, and change when necessary, those classes of prop-
erty 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 Panel 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—
‘‘(1) charge to operating expenses a depreciation
charge on a class of property other than that pre-
scribed by the Panel;
‘‘(2) charge another rate of depreciation; or
‘‘(3) include other depreciation charges in oper-
ating expenses.
‘‘§ 10944. Records: form; inspection; preservation
‘‘(a) The Panel may prescribe the form of records re-
quired 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 juris-
diction of the Panel under this part to the extent re-
lated to those cars or that service.
‘‘(b) The Panel, or an employee designated by the
Panel, 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;
and
‘‘(B) a person controlling, controlled by, or
under common control with a rail carrier if the
Panel considers inspection relevant to that per-
son’s relation to, or transaction with, that rail
carrier.
‘‘(c) The Panel may prescribe the time period during
which operating, accounting, and financial records must be
preserved by rail carriers, lessors, and persons furnishing
cars.
‘‘§ 10945. Reports by rail carriers, lessors, and asso-
ciations
‘‘(a) The Panel may require rail carriers, lessors, and
associations, or classes of them as the Panel may prescribe,
to file annual, periodic, and special reports with the Panel
containing answers to questions asked by it.
‘‘(b)(1) An annual report shall contain an account, in
as much detail as the Panel may require, of the affairs of
the rail carrier, lessor, or association for the 12-month pe-
riod ending on December 31 of each year.
‘‘(2) An annual report shall be filed with the Panel
by the end of the third month after the end of the year for
which the report is made unless the Panel extends the filing
date or changes the period covered by the report. The annual
report and, if the Panel requires, any other report made
under this section, shall be made under oath.
‘‘SUBCHAPTER IV—RAILROAD COST ACCOUNTING
‘‘§ 10961. Implementation of cost accounting prin-
ciples
‘‘Not less than once every five years after the promul-
gation of original rules implementing the cost accounting
principles established by the Railroad Accounting Prin-
ciples Board, the Panel shall review such principles and
shall, by rule, make such changes in such principles as are
required to achieve the regulatory purposes of this part. The
Panel 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 reg-
ulatory purposes. To the maximum extent practicable, the
Panel shall conform such rules to generally accepted ac-
counting principles.
‘‘§ 10962. Rail carrier cost accounting system
‘‘(a) Each rail carrier shall have and maintain a cost
accounting system that is in compliance with the rules pro-
mulgated by the Panel under section 10961 of this title. A
rail carrier may, after notifying the Panel, make modifica-
tions in such system unless, within 60 days after the date
of notification, the Panel finds such modifications to be in-
consistent with the rules promulgated by the Panel under
section 10961 of this title.
‘‘(b) For purposes of determining whether the cost ac-
counting system of a rail carrier is in compliance with the
rules promulgated by the Panel, the Panel 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 disclo-
sure requirements of section 552 of title 5.
‘‘§ 10963. Cost availability
‘‘As required by the rules of the Panel governing dis-
covery in Panel proceedings, rail carriers shall make rel-
evant cost data available to shippers, States, ports, commu-
nities, and other interested parties that are a party to a
Panel proceeding in which such data are required.
‘‘§ 10964. Accounting and cost reporting
‘‘(a) To obtain expense and revenue information for
regulatory purposes, the Panel may promulgate reasonable
rules for rail carriers providing transportation subject to
the jurisdiction of the Panel 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 require-
ments of those carriers. To the extent such rules are required
solely to provide expense and revenue information necessary
for determining railroad costs in regulatory proceedings
under this part, such rules shall be promulgated in accord-
ance with the cost accounting principles established by the
Railroad Accounting Principles Board.
‘‘(b) Any reports required by the rules established by
the Panel under this section shall include only information
considered necessary for disclosure under the cost account-
ing principles established by the Board or under generally
accepted accounting principles or the requirements of the
Securities and Exchange Commission.
‘‘CHAPTER 111—FINANCE
‘‘SUBCHAPTER I—EQUIPMENT TRUSTS AND SECURITY INTERESTS
‘‘Sec.
‘‘11101. Equipment trusts: recordation; evidence of indebtedness.
‘‘SUBCHAPTER II—COMBINATIONS
‘‘11121. Scope of authority.
‘‘11122. Limitation on pooling and division of transportation or earnings.
‘‘11123. Consolidation, merger, and acquisition of control.
‘‘11124. Consolidation, merger, and acquisition of control: conditions of approval.
‘‘11125. Consolidation, merger, and acquisition of control: procedure.
‘‘11126. Employee protective arrangements in transactions involving rail carriers.
‘‘11127. Supplemental orders.
‘‘SUBCHAPTER I—EQUIPMENT TRUSTS AND
SECURITY INTERESTS
‘‘§ 11101. Equipment trusts: recordation; evidence of
indebtedness
‘‘(a) A mortgage, lease equipment trust agreement,
conditional sales agreement, or other instrument evidencing
the mortgage, lease, conditional sale, or bailment of or secu-
rity interest in 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 Panel. 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
Panel. The instrument, assignment, or amendment must be
in writing, executed by the parties to it, and acknowledged
or verified under Panel 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 an-
other law of the United States, a State (or its political sub-
divisions), or territory or possession of the United States,
related to filing, deposit, registration, or recordation of
those documents.
‘‘(b) The Panel 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. The Panel 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, guaran-
tors, 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 Panel shall to the greatest extent practicable
perform its functions under this section through contracts
with private sector entities.
‘‘(d) The Panel shall assess user fees for services per-
formed by the Panel or a contractor thereof under this sec-
tion. Such fees may be used by the Panel to offset its costs,
to the extent provided in advance in appropriations Acts.
‘‘(e) A mortgage, lease, equipment trust agreement,
conditional sales agreement, or other instrument evidencing
the mortgage, lease, conditional sale, or bailment of or secu-
rity interest in 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 dom-
iciled in or corporation organized under the laws of
such country,
shall be recognized with the same effect as having been filed
under this section.
‘‘(f) 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.
‘‘SUBCHAPTER II—COMBINATIONS
‘‘§ 11121. Scope of authority
‘‘(a) The authority of the Panel under this subchapter
is exclusive. A rail carrier or corporation participating in
or resulting from a transaction approved by or exempted
by the Panel under this subchapter may carry out the trans-
action, own and operate property, and exercise control or
franchises acquired through the transaction without the ap-
proval of a State authority. A rail carrier, corporation, or
person participating in that approved or exempted trans-
action 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 ex-
ercise control or franchises acquired through the trans-
action.
‘‘(b) The requirement to obtain the approval or author-
ization of the Panel under this subchapter shall only apply
to transactions involving at least one Class I rail carrier,
and shall not apply to transactions described in section
10702.
‘‘§ 11122. Limitation on pooling and division of trans-
portation or earnings
‘‘(a) A rail carrier providing transportation subject to
the jurisdiction of the Panel 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 with-
out the approval of the Panel under this section or section
10923 of this title. The Panel may approve and authorize
the agreement or combination if the rail carriers involved
assent to the pooling or division and the Panel 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 Panel may impose conditions governing the
pooling or division and may approve and authorize pay-
ment of a reasonable consideration between the rail carriers.
‘‘(c) The Panel may begin a proceeding under this sec-
tion on its own initiative or on application.
‘‘§ 11123. Consolidation, merger, and acquisition of
control
‘‘(a) The following transactions involving rail carriers
providing transportation subject to the jurisdiction of the
Panel under this part may be carried out only with the
approval and authorization of the Panel:
‘‘(1) Consolidation or merger of the properties or
franchises of at least 2 rail carriers into one corpora-
tion 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 car-
riers 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 achiev-
ing the control or management, including the power to exer-
cise 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
Panel under this subchapter. In addition to other trans-
actions, 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 car-
rier.
‘‘(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 car-
riers, taken together, in control of another rail car-
rier.
‘‘(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.
‘‘§ 11124. Consolidation, merger, and acquisition of
control: conditions of approval
‘‘(a) The Panel may begin a proceeding to approve and
authorize a transaction referred to in section 11123 of this
title on application of the person seeking that authority.
When an application is filed with the Panel, the Panel shall
notify the chief executive officer of each State in which
property of the rail carriers involved in the proposed trans-
action is located and shall notify those rail carriers. The
Panel shall hold a public hearing unless the Panel deter-
mines that a public hearing is not necessary in the public
interest.
‘‘(b) In a proceeding under this section which involves
the merger or control of at least two Class I railroads, as
defined by the Panel, the Panel 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 car-
riers in the affected region or in the national rail sys-
tem.
‘‘(c) The Panel shall approve and authorize a trans-
action under this section when it finds the transaction is
consistent with the public interest. The Panel may impose
conditions governing the transaction, including the divesti-
ture of parallel tracks or requiring the granting of trackage
rights. Any trackage rights conditions imposed to alleviate
anticompetitive effects of the transaction shall provide for
compensation levels to ensure that such effects are allevi-
ated. When the transaction contemplates a guaranty or as-
sumption of payment of dividends or of fixed charges or
will result in an increase of total fixed charges, the Panel
may approve and authorize the transaction only if it finds
that the guaranty, assumption, or increase is consistent
with the public interest. The Panel may require inclusion
of other rail carriers located in the area involved in the
transaction if they apply for inclusion and the Panel 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 rail-
roads, as defined by the Panel, the Panel 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 Panel 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 Secretary of Trans-
portation.
‘‘(e)(1) To the extent provided in this subsection, a pro-
ceeding under this subchapter relating to a transaction in-
volving at least one Class I rail carrier shall not be consid-
ered 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.
‘‘(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 sub-
section.
‘‘(3)(A) Any member or employee of the Panel who
makes or receives a written ex parte communication con-
cerning 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 Panel 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 communica-
tion in the public docket of the proceeding.
‘‘(4) Nothing in this subsection shall be construed to
require the Panel 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 con-
strued to limit the authority of the members or employees
of the Panel, in their discretion, to note in the docket or
otherwise publicly the occurrence and substance of an ex
parte communication.
‘‘§ 11125. Consolidation, merger, and acquisition of
control: procedure
‘‘(a) The Panel shall publish notice of the application
under section 11124 in the Federal Register by the end of
the 30th day after the application is filed with the Panel.
However, if the application is incomplete, the Panel shall
reject it by the end of that period. The order of rejection
is a final action of the Panel. 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 Panel, to be decided
within the time limits specified in subsection (b) of
this section;
‘‘(2) transactions of regional or national trans-
portation significance, to be decided within the time
limits specified in subsection (c) of this section; or
‘‘(3) any other transaction covered by this sec-
tion, 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 Panel,
the following conditions apply:
‘‘(1) Written comments about an application
may be filed with the Panel within 45 days after no-
tice of the application is published under subsection
(a) of this section. Copies of such comments shall be
served on the Attorney General, 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 in-
tervene, preliminary comments about the application
must be sent to the Panel by the end of the 15th day
after the date of receipt of the written comments.
‘‘(2) The Panel shall require that applications
inconsistent with an application, notice of which was
published under subsection (a) of this section, and ap-
plications for inclusion in the transaction, be filed
with it by the 90th day after publication of notice
under that subsection.
‘‘(3) The Panel must conclude evidentiary pro-
ceedings by the end of the 6th month after the date
of publication of notice under subsection (a) of this
section. The Panel must issue a final decision by the
90th day after the date on which it concludes the evi-
dentiary 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 Panel, which the Panel has determined
to be of regional or national transportation significance,
the following conditions apply:
‘‘(1) Written comments about an application, in-
cluding comments of the Attorney General, may be
filed with the Panel within 30 days after notice of the
application is published under subsection (a) of this
section.
‘‘(2) The Panel shall require that applications
inconsistent with an application, notice of which was
published under subsection (a) of this section, and ap-
plications for inclusion in the transaction, be filed
with it by the 60th day after publication of notice
under that subsection.
‘‘(3) The Panel must conclude any evidentiary
proceedings by the 125th day after the date of publi-
cation of notice under subsection (a) of this section.
The Panel must issue a final decision by the 40th 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, in-
cluding comments of the Attorney General, may be
filed with the Panel within 30 days after notice of the
application is published under subsection (a) of this
section.
‘‘(2) The Panel must conclude any evidentiary
proceedings by the 105th day after the date of publi-
cation of notice under subsection (a) of this section.
The Panel must issue a final decision by the 40th day
after the date on which it concludes the evidentiary
proceedings.
‘‘§ 11126. Employee protective arrangements in trans-
actions involving rail carriers
‘‘When approval is sought for a transaction under sec-
tions 11124 and 11125 of this title, the Panel 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 af-
fected 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 Panel (or if an employee was employed for a lesser
period of time by the rail carrier before the action became
effective, for that lesser period).
‘‘§ 11127. Supplemental orders
‘‘When cause exists, the Panel may make appropriate
orders supplemental to an order made in a proceeding
under sections 11122 through 11126 of this title.
‘‘CHAPTER 113—FEDERAL-STATE
RELATIONS
‘‘Sec.
‘‘11301. Tax discrimination against rail transportation property.
‘‘11302. Withholding State and local income tax by rail carriers.
‘‘§ 11301. Tax discrimination against rail transpor-
tation 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 Panel, owned or
used by a rail carrier providing transportation sub-
ject to the jurisdiction of the Panel under this part;
and
‘‘(4) the term ‘commercial and industrial prop-
erty’ means property, other than transportation prop-
erty and land used primarily for agricultural pur-
poses or timber growing, devoted to a commercial or
industrial use and subject to a property tax levy.
‘‘(b) The following acts unreasonably burden and dis-
criminate against interstate commerce, and a State, sub-
division of a State, or authority acting for a State or sub-
division 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 in-
dustrial property.
‘‘(2) Levy or collect a tax on an assessment that
may not be made under paragraph (1) of this sub-
section.
‘‘(3) Levy or collect an ad valorem property tax
on rail transportation property at a tax rate that ex-
ceeds the tax rate applicable to commercial and in-
dustrial property in the same assessment jurisdiction.
‘‘(4) Impose another tax that discriminates
against a rail carrier providing transportation sub-
ject to the jurisdiction of the Panel under this part.
‘‘(c) Notwithstanding section 1341 of title 28 and with-
out regard to the amount in controversy or citizenship of
the parties, a district court of the United States has juris-
diction, concurrent with other jurisdiction of courts of the
United States and the States, to prevent a violation of sub-
section (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 as-
sessment 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 indus-
trial 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 prop-
erty in the taxing district.
‘‘§ 11302. Withholding State and local income tax by
rail carriers
‘‘(a) No part of the compensation paid by a rail car-
rier providing transportation subject to the jurisdiction of
the Panel under this part to an employee who performs reg-
ularly 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.
‘‘(b) 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 115—ENFORCEMENT:
INVESTIGATIONS, RIGHTS, AND REMEDIES
‘‘Sec.
‘‘11501. General authority.
‘‘11502. Enforcement by the Panel.
‘‘11503. Enforcement by the Attorney General.
‘‘11504. Rights and remedies of persons injured by rail carriers.
‘‘11505. Limitation on actions by and against rail carriers.
‘‘11506. Liability of rail carriers under receipts and bills of lading.
‘‘§ 11501. General authority
‘‘(a) The Panel may begin an investigation under this
part on its own initiative or on complaint. If the Panel
finds that a rail carrier is violating this part, the Panel
shall take appropriate action to compel compliance with
this part.
‘‘(b) A person, including a governmental authority,
may file with the Panel a complaint about a violation of
this part by a rail carrier providing transportation or serv-
ice subject to the jurisdiction of the Panel under this part.
The complaint must state the facts that are the subject of
the violation. The Panel may dismiss a complaint it deter-
mines does not state reasonable grounds for investigation
and action. However, the Panel may not dismiss a com-
plaint made against a rail carrier providing transportation
subject to the jurisdiction of the Panel under this part be-
cause of the absence of direct damage to the complainant.
‘‘(c) A formal investigative proceeding begun by the
Panel under subsection (a) of this section is dismissed auto-
matically unless it is concluded by the Panel with adminis-
trative finality by the end of the third year after the date
on which it was begun.
‘‘§ 11502. Enforcement by the Panel
‘‘The Panel may bring a civil action—
‘‘(1) to enjoin a rail carrier from violating sec-
tions 10701 through 10706 of this title, or a regula-
tion prescribed or order or certificate issued under
any of those sections;
‘‘(2) to enforce subchapter II of chapter 111 of
this title and to compel compliance with the order of
the Panel under that subchapter; and
‘‘(3) to enforce an order of the Panel, 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 Panel
under this part.
‘‘§ 11503. Enforcement by the Attorney General
‘‘The Attorney General may, and on request of the
Panel shall, bring court proceedings to enforce this part,
or a regulation or order of the Panel or certificate or permit
issued under this part, and to prosecute a person violating
this part or a regulation or order of the Panel or certificate
or permit issued under this part.
‘‘§ 11504. 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
Panel under this part does not obey an order of the Panel,
except an order for the payment of money, may bring a
civil action to enforce that order under this subsection.
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 Panel 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 dis-
trict—
‘‘(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 car-
rier runs.
In a civil action under this paragraph, the plaintiff is lia-
ble 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 any one of the defendants.
Process may be served on a defendant at its principal oper-
ating 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) The district court shall award a reasonable attor-
ney’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.
‘‘§ 11505. Limitation on actions by and against rail
carriers
‘‘(a) A rail carrier providing transportation or service
subject to the jurisdiction of the Panel 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 file a complaint with the Panel
to recover damages under section 11504(b) of this title with-
in 2 years after the claim accrues.
‘‘(c) The limitation period under subsection (b) of this
section is extended for 6 months from the time written no-
tice is given to the claimant by the rail carrier of disallow-
ance of any part of the claim specified in the notice if a
written claim is given to the rail carrier within that limita-
tion period. The limitation period under subsection (b) of
this section is 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 with-
in the appropriate period.
‘‘(d) A person must begin a civil action to enforce an
order of the Panel against a rail carrier for the payment
of money within one year after the date the order required
the money to be paid.
‘‘(e) 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.
‘‘(f) A claim related to a shipment of property accrues
under this section on delivery or tender of delivery by the
rail carrier.
‘‘§ 11506. Liability of rail carriers under receipts and
bills of lading
‘‘(a) A rail carrier providing transportation or service
subject to the jurisdiction of the Panel 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 rail carrier that delivers the property and is provid-
ing transportation or service subject to the jurisdiction of
the Panel 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 trans-
portation nearest the destination but does not include a rail
carrier providing only a switching service at the destina-
tion.
‘‘(b) The rail carrier issuing the receipt or bill of lad-
ing 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 Panel 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 re-
spect 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 lo-
cated;
‘‘(ii) against the delivering rail carrier, in the
judicial district in which the principal place of busi-
ness 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 dis-
trict 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.
‘‘(B) In this section, ‘judicial district’ means (i) in
the case of a United States district court, a judicial district
‘‘CHAPTER 117—CIVIL AND CRIMINAL
PENALTIES
‘‘Sec.
‘‘11701. General civil penalties.
‘‘11702. Interference with railroad car supply.
‘‘11703. Record keeping and reporting violations.
‘‘11704. Unlawful disclosure of information.
‘‘11705. Disobedience to subpoenas.
‘‘11706. General criminal penalty when specific penalty not provided.
‘‘11707. Punishment of corporation for violations committed by certain
individuals.
‘‘§ 11701. General civil penalties
‘‘(a) Except as otherwise provided in this section, a
rail carrier providing transportation subject to the jurisdic-
tion of the Panel under this part, an officer or agent of
that rail carrier, or a receiver, trustee, lessee, or agent of
one of them, knowingly violating an order of the Panel
under this part is liable to the United States Government
for a civil penalty of $5,000 for each violation. Liability
under this subsection is incurred for each distinct violation.
A separate violation occurs for each day the violation con-
tinues.
‘‘(b) A rail carrier providing transportation subject to
the jurisdiction of the Panel under this part, or a receiver
or trustee of that rail carrier, violating a regulation or
order of the Panel under section 10924 (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 10701 through 10706 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 vio-
lating an order or direction of the Panel under section
10923 or 10924(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) A person required under subchapter III of
chapter 109 of this title to make, prepare, preserve, or sub-
mit to the Panel a record concerning transportation subject
to the jurisdiction of the Panel under this part that does
not make, prepare, preserve, or submit that record as re-
quired 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 Panel under this part, and a lessor,
receiver, or trustee of that rail carrier, violating section
10944(b)(1) of this title, is liable to the United States Gov-
ernment for a civil penalty of $100 for each violation.
‘‘(3) A rail carrier providing transportation subject to
the jurisdiction of the Panel under this part, a lessor, re-
ceiver, or trustee of that rail carrier, a person furnishing
cars, and an officer, agent, or employee of one of them, re-
quired to make a report to the Panel or answer a question
that does not make the report or does not specifically, com-
pletely, 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 viola-
tion 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.
‘‘§ 11702. 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
Panel under this part intending to influence an action of
that other person related to supply, distribution, or move-
ment of cars or vehicles used in the transportation of prop-
erty, or because of the action of that 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
Panel under this part that solicits, accepts, or receives any-
thing of value—
‘‘(1) intending to be influenced by it in an ac-
tion 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.
‘‘§ 11703. Record keeping and reporting violations
‘‘A person required to make a report to the Panel, or
make, prepare, or preserve a record, under subchapter III
of chapter 109 of this title about transportation subject to
the jurisdiction of the Panel 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 Panel; or
‘‘(5) files a false report or record with the Panel,
shall be fined not more than $5,000, imprisoned for not
more than 2 years, or both.
‘‘§ 11704. Unlawful disclosure of information
‘‘(a) A—
‘‘(1) rail carrier providing transportation subject
to the jurisdiction of the Panel under this part, or an
officer, agent, or employee of that rail carrier, or an-
other 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 au-
thorized under section 10509 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 or broker
providing transportation subject to the jurisdiction of the
Panel under this part from giving information—
‘‘(1) in response to legal process issued under au-
thority 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 rail carrier or its agent to adjust
mutual traffic accounts in the ordinary course of
business.
‘‘(d) An employee of the Panel delegated to make an
inspection or examination under section 10944 of this title
who knowingly discloses information acquired during that
inspection or examination, except as directed by the Panel,
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 10963 of
this title by a rail carrier providing transportation subject
to the jurisdiction of the Panel under this part shall be fined
not more than $50,000.
‘‘§ 11705. Disobedience to subpoenas
‘‘A person not obeying a subpoena or requirement of
the Panel 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.
100
‘‘§ 11706. General criminal penalty when specific pen-
alty not provided
‘‘When another criminal penalty is not provided under
this chapter, a rail carrier providing transportation subject
to the jurisdiction of the Panel 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 act-
ing for or employed by the corporation that, alone or with
another person, willfully violates this part or an order pre-
scribed under this part, shall be fined not more than $5,000.
However, if the violation is for discrimination in rates
charged for transportation, 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 viola-
tion of section 11122 of this title continues.
‘‘§ 11707. 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 trans-
portation or service subject to the jurisdiction of the Panel
under this part that is a corporation is also a violation
of this part by that corporation. The penalties of this chap-
ter apply to that violation. When acting in the scope of their
employment, the actions and omissions of individuals act-
ing for or employed by that rail carrier are considered to
101
be the actions and omissions of that rail carrier as well
as that individual.’’.
(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:
‘‘PART B—MOTOR CARRIERS, WATER CARRIERS,
BROKERS, AND FREIGHT FORWARDERS
‘‘CHAPTER 131—GENERAL PROVISIONS
‘‘Sec.
‘‘13101. Transportation policy.
‘‘13102. Definitions.
‘‘13103. Remedies as cumulative.
‘‘§ 13101. Transportation policy
‘‘(a) IN GENERAL.—To ensure the development, coordi-
nation, and preservation of a transportation system that
meets the transportation needs of the United States, includ-
ing 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;
102
‘‘(B) to promote safe, adequate, economical,
and efficient transportation;
‘‘(C) to encourage sound economic condi-
tions in transportation, including sound eco-
nomic conditions among carriers;
‘‘(D) to encourage the establishment and
maintenance of reasonable rates for transpor-
tation, 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 car-
rier, to promote competitive and efficient transpor-
tation services in order to—
‘‘(A) encourage fair competition, and rea-
sonable rates for transportation by motor car-
riers 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;
103
‘‘(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 equip-
ment and energy resources;
‘‘(F) enable efficient and well-managed car-
riers to earn adequate profits, attract capital,
and maintain fair wages and working condi-
tions;
‘‘(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 mi-
norities in the motor carrier system; and
‘‘(K) promote intermodal transportation;
and
‘‘(3) in overseeing transportation by motor car-
rier of passengers—
104
‘‘(A) to cooperate with the States on trans-
portation matters for the purpose of encouraging
the States to exercise intrastate regulatory juris-
diction 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 initia-
tives enacted by section 31138 and the Bus Reg-
ulatory Reform Act of 1982 are not nullified by
State regulatory actions.
‘‘(b) ADMINISTRATION TO CARRY OUT POLICY.—This
part shall be administered and enforced to carry out the
policy of this section.
‘‘§ 13102. Definitions
‘‘In this part, the following definitions shall apply:
‘‘(1) BROKER.—The term ‘broker’ means a per-
son, 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.
105
‘‘(2) CARRIER.—The term ‘carrier’ means a
motor carrier, a water carrier, and a freight for-
warder, and, for purposes of sections 13902, 13905,
and 13906, the term includes foreign motor carriers
and foreign motor private carriers.
‘‘(3) 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).
‘‘(4) CONTROL.—The term ‘control’, when refer-
ring to a relationship between persons, includes ac-
tual control, legal control, and the power to exercise
control, through or by—
‘‘(A) common directors, officers, stockhold-
ers, a voting trust, or a holding or investment
company, or
‘‘(B) any other means.
‘‘(5) FOREIGN MOTOR CARRIER.—The term ‘for-
eign motor carrier’ means a person (including a
106
motor carrier of property but excluding a motor pri-
vate 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 inter-
state transportation of property by motor vehicle
under an agreement or contract entered into
with a motor carrier of property (other than a
motor private carrier or a motor carrier of prop-
erty described in subparagraph (A)).
‘‘(6) 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
107
with a person (other than a motor carrier of
property or a motor private carrier described in
subparagraph (A)).
‘‘(7) 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 prop-
erty 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 distribu-
tion operations of the shipments;
‘‘(B) assumes responsibility for the trans-
portation 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 part.
The term does not include a person using transpor-
tation of an air carrier subject to part A of subtitle
VII.
‘‘(8) HIGHWAY.—The term ‘highway’ means a
road, highway, street, and way in a State.
‘‘(9) HOUSEHOLD GOODS.—The term ‘household
goods’, as used in connection with transportation,
108
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 house-
holder, including transportation of property
from a factory or store when the property is pur-
chased by the householder with intent to use in
his or her dwelling, or
‘‘(B) arranged and paid for by another
party.
‘‘(10) 
HOUSEHOLD
GOODS
FREIGHT
FOR-
WARDER.—The term ‘household goods freight for-
warder’ means a freight forwarder of one or more of
the following items: household goods, unaccompanied
baggage, or used automobiles.
‘‘(11) MOTOR CARRIER.—The term ‘motor car-
rier’ means a person providing motor vehicle trans-
portation for compensation.
‘‘(12) 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;
109
‘‘(B) the person is the owner, lessee, or bail-
ee of the property being transported; and
‘‘(C) the property is being transported for
sale, lease, rent, or bailment or to further a com-
mercial enterprise.
‘‘(13) MOTOR VEHICLE.—The term ‘motor vehi-
cle’ means a vehicle, machine, tractor, trailer, or
semitrailer propelled or drawn by mechanical power
and used on a highway in transportation, or a com-
bination 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 pas-
senger transportation similar to street-railway serv-
ice.
‘‘(14) NONCONTIGUOUS DOMESTIC TRADE.—The
term ‘noncontiguous domestic trade’ means transpor-
tation subject to jurisdiction under chapter 135 in-
volving traffic originating in or destined to Alaska,
Hawaii, or a territory or possession of the United
States.
‘‘(15) PANEL.—The term ‘Panel’ means the
Transportation Adjudication Panel.
‘‘(16) PERSON.—The term ‘person’, in addition
to its meaning under section 1 of title 1, includes a
110
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 Colum-
bia.
‘‘(19) TRANSPORTATION.—The term ‘transpor-
tation’ includes—
‘‘(A) a motor vehicle, vessel, warehouse,
wharf, pier, dock, yard, property, facility, in-
strumentality, 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, in-
cluding receipt, delivery, elevation, transfer in
transit, refrigeration, icing, ventilation, storage,
handling, 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,
111
is capable of being used, or is intended to be used, as
a means of transportation by water.
‘‘(22) WATER CARRIER.—The term ‘water car-
rier’ means a person providing water transportation
for compensation.
‘‘§ 13103. Remedies as cumulative
‘‘Except as otherwise provided in this part, the rem-
edies 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.
‘‘§ 13301. Powers
‘‘(a) GENERAL POWERS OF SECRETARY.—Except as
otherwise specified, the Secretary shall carry out this part.
Enumeration of a power of the Secretary in this part does
not exclude another power the Secretary may have in carry-
ing 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, transpor-
tation 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
112
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 sub-
poena 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 tes-
timony 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.
113
‘‘(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 at-
torney 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 depo-
nent.
114
‘‘(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.
‘‘(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 PANEL.—For those provisions of this
part that are specified to be carried out by the Panel, the
Panel shall have the same powers as the Secretary has
under this section.
‘‘§ 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.
‘‘§ 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
115
designate, in writing, an agent by name and post office ad-
dress 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 designa-
tion with the authority of each State in which it operates
having jurisdiction to regulate transportation by motor ve-
hicle in intrastate commerce on the highways of that State.
The designation may be changed at any time in the same
manner as originally made.
‘‘(c) NOTICE.—A notice to a motor carrier, freight for-
warder, or broker shall be served personally or by mail on
the motor carrier, freight forwarder, or broker or on its des-
ignated 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, serv-
ice may be made by posting a copy of the notice at the
headquarters of the Department of Transportation.
‘‘§ 13304. Service of process in court proceedings
‘‘(a) DESIGNATION OF AGENT.—A motor carrier or
broker providing transportation subject to jurisdiction
under chapter 135 of this title, including a motor carrier
or broker operating within the United States while provid-
116
ing transportation between places in a foreign country or
between a place in one foreign country and a place in an-
other 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 jurisdic-
tion may be served in an action brought against that car-
rier or broker. The designation shall be in writing and filed
with the Department of Transportation. 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.
‘‘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.
117
‘‘SUBCHAPTER I—MOTOR CARRIER
TRANSPORTATION
‘‘§ 13501. General jurisdiction
‘‘The Secretary and the Panel shall have jurisdiction,
as specified in this part, over transportation by motor car-
rier and the procurement of that transportation, to the ex-
tent 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 ter-
ritory 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 juris-
diction of the United States or on a public highway.
118
‘‘§ 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 Panel has ju-
risdiction 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 provid-
ing 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.
‘‘§ 13503. Exempt motor vehicle transportation in ter-
minal areas
‘‘(a) TRANSPORTATION BY CARRIERS.—
‘‘(1) IN GENERAL.—Neither the Secretary nor the
Panel has jurisdiction under this subchapter over
transportation by motor vehicle provided in a termi-
nal area when the transportation—
‘‘(A) is a transfer, collection, or delivery;
‘‘(B) is provided by—
‘‘(i) a rail carrier subject to jurisdic-
tion under chapter 105;
119
‘‘(ii) a water carrier subject to juris-
diction under subchapter II of this chapter;
or
‘‘(iii) a freight forwarder subject to ju-
risdiction under subchapter III of this
chapter; and
‘‘(C) is incidental to transportation or serv-
ice 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 para-
graph (1) of this subsection is subject to jurisdiction
under chapter 105 when provided by such a rail car-
rier, under subchapter II of this chapter when pro-
vided 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 Sec-
retary nor the Panel has jurisdiction under this sub-
chapter over transportation by motor vehicle provided
in a terminal area when the transportation—
120
‘‘(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 jurisdic-
tion under chapter 105 of this title;
‘‘(ii) a motor carrier subject to juris-
diction under this subchapter;
‘‘(iii) a water carrier subject to juris-
diction under subchapter II of this chapter;
or
‘‘(iv) a freight forwarder subject to ju-
risdiction under subchapter III of this
chapter.
‘‘(2) TREATMENT OF TRANSPORTATION BY PRIN-
CIPAL.—Transportation exempt from jurisdiction
under paragraph (1) of this subsection is considered
transportation provided by the carrier or service pro-
vided by the freight forwarder for whom the transpor-
tation 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
121
under subchapter III of this chapter when provided
for such a freight forwarder.
‘‘§ 13504. Exempt motor carrier transportation en-
tirely in one State
‘‘Neither the Secretary nor the Panel has jurisdiction
under this subchapter over transportation, except transpor-
tation of household goods, by a motor carrier operating sole-
ly 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 oper-
ating solely within the State of Hawaii, transportation ex-
empt under section 13503 of this title.
‘‘§ 13505. Transportation furthering a primary busi-
ness
‘‘(a) IN GENERAL.—Neither the Secretary nor the
Panel has jurisdiction under this part over the transpor-
tation of property by motor vehicle when—
‘‘(1) the property is transported by a person en-
gaged in a business other than transportation; and
‘‘(2) the transportation is within the scope of,
and furthers a primary business (other than trans-
portation) of the person.
‘‘(b) CORPORATE FAMILIES.—
‘‘(1) IN GENERAL.—Neither the Secretary nor the
Panel has jurisdiction under this part over transpor-
122
tation 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.
‘‘§ 13506. Miscellaneous motor carrier transportation
exemptions
‘‘(a) IN GENERAL.—Neither the Secretary nor the
Panel 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 speci-
fied 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 common carrier;
‘‘(4) a motor vehicle controlled and operated by
a farmer and transporting—
‘‘(A) the farmer’s agricultural or horti-
cultural commodities and products; or
123
‘‘(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 associa-
tions if the federation has no greater power or pur-
poses than a cooperative association, except that if the
cooperative association or federation provides trans-
portation 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 cooperative 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
124
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 federa-
tion and its members during that fiscal year;
‘‘(6) transportation by motor vehicle of—
‘‘(A) ordinary livestock;
‘‘(B) agricultural or horticultural commod-
ities (other than manufactured products thereof);
‘‘(C) commodities listed as exempt in the
Commodity List incorporated in ruling num-
bered 107, March 19, 1958, Bureau of Motor
Carriers, Interstate Commerce Commission, other
than frozen fruits, frozen berries, frozen vegeta-
bles, 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 by-
products thereof not intended for human con-
sumption, other than fish or shellfish that have
been treated for preserving, such as canned,
125
smoked, pickled, spiced, corned, or kippered
products; and
‘‘(E) livestock and poultry feed and agricul-
tural seeds and plants, if such products (exclud-
ing products otherwise exempt under this para-
graph) 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 bag-
gage) by motor vehicle as part of a continuous move-
ment 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 ad-
verse weather conditions or mechanical failure of the
aircraft or other causes due to circumstances beyond
the control of the carrier or shipper;
126
‘‘(9) the operation of a motor vehicle in a na-
tional 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 trans-
portation of motor vehicles or parts of motor vehicles);
‘‘(12) transportation of natural, crushed, vesicu-
lar rock to be used for decorative purposes;
‘‘(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 pow-
dered glass.
‘‘(b) EXEMPT UNLESS OTHERWISE NECESSARY.—Ex-
cept to the extent the Secretary or Panel, as applicable,
finds it necessary to exercise jurisdiction to carry out the
transportation policy of section 13101, neither the Sec-
retary nor the Panel has jurisdiction under this part over—
‘‘(1) transportation provided entirely in a mu-
nicipality, in contiguous municipalities, or in a zone
127
that is adjacent to, and commercially a part of, the
municipality or municipalities, except—
‘‘(A) when the transportation is under com-
mon 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 juris-
diction under this part only if the motor carrier
operating the motor vehicle also is lawfully pro-
viding 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 trans-
portation provided by a person authorized to trans-
port passengers by motor vehicle under an applica-
tion pending, or registration issued, under this part;
or
128
‘‘(3) the emergency towing of an accidentally
wrecked or disabled motor vehicle.
‘‘§ 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 trans-
port 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 prop-
erty which the carrier is authorized to transport under such
registration.
‘‘§ 13508. Limited authority over cooperative associa-
tions
‘‘(a) 
IN
GENERAL.—Notwithstanding 
section
13506(a)(5), any cooperative association (as defined by sec-
tion 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 transpor-
tation provided by such association or federation, in such
form as the Secretary or the Panel may require by regula-
tion to carry out the provisions of such section 13506(a)(5).
The Secretary or the Panel, or an employee designated by
129
the Secretary or the Panel, may on demand and display
of proper credentials—
‘‘(1) inspect and examine the lands, buildings,
and equipment of such association or federation; and
‘‘(2) inspect and copy any record of such asso-
ciation or federation.
‘‘(b) REPORTS.—Notwithstanding section 13506(a)(5),
the Secretary or the Panel may require a cooperative asso-
ciation or federation of cooperative associations described
in subsection (a) of this section to file reports with the Sec-
retary or the Panel containing answers to questions about
transportation provided by such association or federation.
‘‘(c) ENFORCEMENT.—The Secretary or the Panel may
bring a civil action to enforce subsections (a) and (b) of
this section or a regulation or order of the Secretary or the
Panel issued under this section, when violated by a coopera-
tive association or federation of cooperative associations de-
scribed in subsection (a).
‘‘(d) REPORTING PENALTIES.—
‘‘(1) IN GENERAL.—A person required to make a
report to the Secretary or the Panel, answer a ques-
tion, or maintain a record under this section, or an
officer, agent, or employee of that person, that—
‘‘(A) does not make the report;
130
‘‘(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 Government 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 federa-
tion 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 know-
ingly and willfully tries to evade compliance with the provi-
sions 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.
131
‘‘(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;
‘‘(6) knowingly and willfully makes a false or
incomplete entry in that record about a business-re-
lated 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.
132
‘‘SUBCHAPTER II—WATER CARRIER
TRANSPORTATION
‘‘§ 13521. General jurisdiction
‘‘(a) GENERAL RULES.—The Secretary has jurisdic-
tion over transportation insofar as water carriers are con-
cerned—
‘‘(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—
133
‘‘(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
‘‘§ 13531. General jurisdiction
‘‘(a) IN GENERAL.—The Secretary and the Panel have
jurisdiction, as specified in this part, over service that a
134
freight forwarder undertakes to provide, or is authorized or
required under this part to provide, to the extent transpor-
tation 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
‘‘(3) a place in the United States and a place
outside the United States.
‘‘(b) EXEMPTION OF CERTAIN AIR CARRIER SERV-
ICE.—Neither the Secretary nor the Panel has jurisdiction
under subsection (a) of this section over service undertaken
by a freight forwarder using transportation of an air car-
rier subject to part A of subtitle VII of this title.
‘‘SUBCHAPTER IV—AUTHORITY TO EXEMPT
‘‘§ 13541. Authority to exempt transportation or serv-
ices
‘‘(a) IN GENERAL.—In any matter subject to jurisdic-
tion under this part, the Secretary or the Panel, as applica-
ble, shall exempt a person, class of persons, or a transaction
or service from the application 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,
135
transaction, or service, when the Secretary or Panel finds
that the application of that provision in whole or in part—
‘‘(1) is not necessary to carry out the transpor-
tation policy of section 13101;
‘‘(2) is not needed to protect shippers from the
abuse of market power or that the transaction or serv-
ice is of limited scope; and
‘‘(3) is in the public interest.
‘‘(b) INITIATION OF PROCEEDING.—The Secretary or
Panel, as applicable, may, where appropriate, begin a pro-
ceeding under this section on the Secretary’s or Panel’s own
initiative or on application by an interested party.
‘‘(c) PERIOD OF EXEMPTION.—The Secretary or Panel,
as applicable, may specify the period of time during which
an exemption granted under this section is effective.
‘‘(d) REVOCATION.—The Secretary or Panel, as appli-
cable, 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.—The exemption authority under
this section may not be used to relieve a person from the
application of, and compliance with, any law, rule, regula-
tion, standard, or order pertaining to cargo loss and dam-
136
age, insurance, safety fitness, or activities approved under
section 13703 or not terminated under section 13907(d)(2).
‘‘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. Billing and collecting practices.
‘‘13708. Procedures for resolving claims involving unfiled, negotiated transpor-
tation rates.
‘‘13709. Additional motor carrier undercharge provisions.
‘‘13710. Alternative procedure for resolving undercharge disputes.
‘‘13711. Government traffic.
‘‘13712. Food and grocery transportation.
‘‘§ 13701. Requirements for reasonable rates, classi-
fications, through routes, rules, and prac-
tices for certain transportation
‘‘(a) REASONABLENESS.—
‘‘(1) CERTAIN
HOUSEHOLD
GOODS
TRANSPOR-
TATION; JOINT RATES INVOLVING WATER TRANSPOR-
TATION.—A rate, classification, rule, or practice re-
lated to transportation or service provided by a car-
rier subject to jurisdiction under chapter 135 for
transportation or service involving—
‘‘(A) a movement of household goods de-
scribed in section 13102(9)(A), or
‘‘(B) a rate for a movement by or with a
water carrier in noncontiguous domestic trade,
must be reasonable.
137
‘‘(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 PANEL
FOR VIOLATIONS.—
When the Panel finds it necessary to stop or prevent a viola-
tion of subsection (a), the Panel shall prescribe the rate,
classification, rule, practice, through route, or division of
joint rates to be applied for such transportation or service.
‘‘(c) ZONE OF REASONABLENESS.—
‘‘(1) IN GENERAL.—For purposes of this section,
a rate or division of a carrier for service in non-
contiguous domestic trade is reasonable if the aggre-
gate of increases and decreases in any such rate or di-
vision is not more than 10 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 percent-
age 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.
138
‘‘§ 13702. Tariff requirement for certain transpor-
tation
‘‘(a) IN GENERAL.—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 described
in section 13102(9)(A);
only if the rate for such transportation or service is con-
tained 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 serv-
ice, 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) FILING.—A carrier providing transpor-
tation or service described in subsection (a)(1) shall
publish and file with the Panel tariffs containing the
rates established for such transportation or service.
The carriers shall keep such tariffs available for pub-
139
lic inspection. The Panel shall prescribe the form and
manner of publishing, filing, and keeping tariffs
available for public inspection under this subsection.
‘‘(2) CONTENTS.—The Panel may prescribe any
specific information and charges to be identified in a
tariff, but at a minimum tariffs must identify plain-
ly—
‘‘(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 deter-
mine 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 separately or otherwise
reveal in tariff filings the inland divisions of that
through rate.
140
‘‘(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 Panel 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
Panel finds that action to be consistent with the pub-
lic 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 kept open for
public inspection.
‘‘(c) TARIFF REQUIREMENTS FOR HOUSEHOLD GOODS
CARRIERS.—
‘‘(1) IN GENERAL.—A carrier providing trans-
portation described in subsection (a)(2) shall main-
tain rates and related rules and practices in a tariff.
The tariff must be submitted to the Panel for inspec-
tion 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 en-
force the provisions of the tariff unless the carrier has
141
given notice that the tariff is available for inspection
in its bill of lading or by other actual notice to indi-
viduals 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 in a tariff in agreements covering the
transportation of households described in section
13102(9)(B).
‘‘(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 sub-
mitted to the Panel for resolution.
‘‘(d) INVALIDATION.—The Panel may invalidate a tar-
iff prepared by a carrier or carriers under this section if
that tariff violates this section or a regulation of the Panel
carrying out this section.
‘‘§ 13703. Certain collective activities; exemption from
antitrust laws
‘‘(a) AGREEMENTS.—
142
‘‘(1) AUTHORITY TO ENTER.—A motor carrier
providing transportation or service subject to jurisdic-
tion 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 house-
hold goods described in section 13102(9)(A);
‘‘(C) classifications;
‘‘(D) mileage guides;
‘‘(E) rules;
‘‘(F) divisions;
‘‘(G) rate adjustments of general applica-
tion based on industry average carrier costs (so
long as there is no discussion of individual mar-
kets or particular single-line rates); or
‘‘(H) procedures for joint consideration, ini-
tiation, or establishment of matters described in
subparagraphs (A) through (G).
‘‘(2) SUBMISSION OF AGREEMENT TO PANEL; AP-
PROVAL.—An agreement entered into under subsection
(a) may be submitted by any carrier or carriers that
are parties to such agreement to the Panel for ap-
proval and may be approved by the Panel only if it
finds that such agreement is in the public interest.
143
‘‘(3) CONDITIONS.—The Panel may require com-
pliance with reasonable conditions consistent with
this part to assure that the agreement furthers the
transportation policy set forth in section 13101.
‘‘(4) INVESTIGATIONS.—The Panel may suspend
and investigate the reasonableness of any classifica-
tion or rate adjustment of general application made
pursuant to an agreement under this section.
‘‘(5) EFFECT OF APPROVAL.—If the Panel ap-
proves the agreement or renews approval of the agree-
ment, it may be made and carried out under its
terms and under the conditions required by the Panel,
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 Panel may require an organiza-
tion established or continued under an agreement approved
under this section to maintain records and submit reports.
The Panel, or its delegate, may inspect a record maintained
under this section, or monitor any organization’s compli-
ance with this section.
‘‘(c) REVIEW.—The Panel may review an agreement
approved under this section, on its own initiative or on re-
quest, and shall change the conditions of approval or termi-
144
nate it when necessary to protect the public interest. Action
of the Panel under this section—
‘‘(1) approving an agreement,
‘‘(2) denying, ending, or changing approval,
‘‘(3) prescribing the conditions on which ap-
proval is granted, or
‘‘(4) changing those conditions,
has effect only as related to application of the antitrust laws
referred to in subsection (a).
‘‘(d) EXPIRATION OF APPROVALS; RENEWALS.—Sub-
ject to subsection (c), approval of an agreement under sub-
section (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 Panel, the agreement
is unchanged, and the Panel approves such renewal. The
Panel shall approve the renewal unless it finds that the re-
newal is not in the public interest.
‘‘(e) EXISTING AGREEMENTS.—Agreements approved
under former section 10706(b) and in effect on the day be-
fore the effective date of this section shall be treated for pur-
poses of this section as approved by the Panel under this
section beginning on such effective date.
‘‘(f) LIMITATIONS ON STATUTORY CONSTRUCTION.—
145
‘‘(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) MILEAGE RATE LIMITATION.—No carrier subject
to jurisdiction under subchapter I or III of chapter 135
may enforce collection of its mileage rates unless such car-
rier—
‘‘(1) uses an independent publication of mileage
(other than a publication referred to in paragraph
(2)) which can be examined by any interested person
upon reasonable request; or
‘‘(2) is a participant in a publication of mile-
ages formulated under an agreement approved under
this section.
‘‘(h) SINGLE LINE RATE DEFINED.—In this section,
the term ‘single line rate’ means a rate, charge, or allowance
proposed by a single motor carrier that is applicable only
146
over its line and for which the transportation can be pro-
vided by that carrier.
‘‘§ 13704. Household goods rates—estimates; guaran-
tees of service
‘‘(a) IN GENERAL.—
‘‘(1) AUTHORITY.—Subject to the provisions of
paragraph (2) of this subsection, a motor carrier pro-
viding transportation of household goods subject to ju-
risdiction under subchapter I of chapter 135 may es-
tablish 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 avail-
able 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 pro-
viding transportation of household goods subject to ju-
risdiction under subchapter I of chapter 135 may es-
tablish rates for the transportation of household goods
which guarantee that the carrier will pick up and de-
liver such household goods at the times specified in
the contract for such services and provide a penalty
147
or per diem payment in the event the carrier fails to
pick up or deliver such household goods at the speci-
fied time. The charges, if any, for such guarantee and
penalty provision may vary to reflect one or more op-
tions 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 house-
hold goods at the specified time.
‘‘§ 13705. Requirements for through routes among
motor carriers of passengers
‘‘(a) ESTABLISHMENT; REASONABLENESS.—A motor
carrier providing transportation of passengers subject to ju-
risdiction 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.
148
‘‘(b) PRESCRIBED BY PANEL.—When the Panel finds
it necessary to enforce the requirements of this section, the
Panel may prescribe through routes and the conditions
under which those routes must be operated for motor car-
riers providing transportation of passengers subject to juris-
diction under subchapter I of chapter 135.
‘‘§ 13706. Liability for payment of rates
‘‘(a) LIABILITY OF CONSIGNEE.—Liability for pay-
ment of rates for transportation for a shipment of property
by a shipper or consignor to a consignee other than the ship-
per 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 addi-
tional 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
149
to a place other than the place specified in the origi-
nal bill of lading.
‘‘(b) LIABILITY OF BENEFICIAL OWNER.—When the
consignee is liable only for rates billed at the time of deliv-
ery 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 trans-
ported. The beneficial owner is liable for all rates when the
property is reconsigned or diverted by an agent but is re-
fused 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.
‘‘§ 13707. Billing and collecting practices
‘‘(a) TIMING.—A motor carrier subject to jurisdiction
under subchapter I of chapter 135 shall disclose, when a
document is presented or electronically transmitted for pay-
ment 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.
‘‘(b) FALSE OR MISLEADING INFORMATION.—No per-
son may cause a motor carrier to present false or mislead-
150
ing 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 perform-
ance of a service by a party to the transportation arrange-
ment, such as tendering a volume of freight over a stated
period of time, the motor carrier shall indicate in any docu-
ment presented for payment to the person responsible di-
rectly to the motor carrier that a reduction, allowance, or
other adjustment may apply.
‘‘§ 13708. Procedures for resolving claims involving
unfiled, negotiated transportation rates
‘‘(a) TRANSPORTATION PROVIDED BEFORE EFFECTIVE
DATE.—
‘‘(1) IN GENERAL.—When a claim is made by a
motor carrier of property (other than a household
goods carrier) providing transportation subject to ju-
risdiction under subchapter II of chapter 105, as in
effect on the day before the effective date of this sec-
tion, by a freight forwarder (other than a household
goods freight forwarder), or by a party representing
such a carrier or freight forwarder regarding the col-
lection of rates or charges for such transportation in
addition to those originally billed and collected by the
carrier or freight forwarder for such transportation,
151
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 applica-
tion of this section; and
‘‘(B) with respect to the claim—
‘‘(i) the person was offered a transpor-
tation rate by the carrier or freight for-
warder other than that legally on file with
the Interstate Commerce 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
Interstate Commerce Commission a tariff
providing for such transportation rate or
failed to enter into an agreement for con-
tract carriage;
152
‘‘(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) FORUM FOR RESOLUTION OF SHOWINGS.—
If there is a dispute as to the showing under para-
graph (1)(A), such dispute shall be resolved by the
court in which the claim is brought. If there is a dis-
pute as to the showing under paragraph (1)(B), such
dispute shall be resolved by the Panel. Pending the
resolution of any such dispute, the person shall not
have to pay any additional compensation to the car-
rier or freight forwarder.
‘‘(3) EFFECT
OF
SATISFACTION
OF
CLAIMS
UNDER DISPUTE RESOLUTION PROCEDURE.—Satisfac-
tion of a claim under subsection (b), (c), or (d) shall
be binding on the parties, and the parties shall not
be subject to chapter 119, as in effect on the day be-
fore the effective date of this section.
‘‘(b) CLAIMS INVOLVING SHIPMENTS WEIGHING 10,000
POUNDS OR LESS.—A person from whom the additional le-
gally applicable and effective tariff rate or charges are
sought may elect to satisfy the claim, if the shipments each
153
weighed 10,000 pounds or less, by payment of 20 percent
of the difference between the carrier’s applicable and effec-
tive 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 Panel .
‘‘(c) CLAIMS INVOLVING SHIPMENTS WEIGHING MORE
THAN 10,000 POUNDS.—A person from whom the addi-
tional 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 re-
solved by the Panel.
‘‘(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 car-
rier’s applicable and effective tariff rate and the rate origi-
nally billed and paid if such person is a public warehouse-
man. In the event that a dispute arises as to the rate that
154
was legally applicable to the shipment, such dispute shall
be resolved by the Panel.
‘‘(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 subsections
(b), (c) or (d), the person may pursue all rights and rem-
edies existing under this title on the day before the effective
date of this section.
‘‘(f) STAY OF ADDITIONAL COMPENSATION.—When a
person proceeds under this section to challenge the reason-
ableness 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 Panel 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 pro-
ceed under subsection (b), (c), or (d). Except as pro-
vided 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
155
forwarder or party representing 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 addi-
tional legally applicable freight rate or charges,
or
‘‘(B) March 5, 1994.
‘‘(3) PENDING SUITS FOR COLLECTION MADE BE-
FORE DECEMBER 4, 1993.—If the carrier or freight for-
warder or party representing such carrier or freight
forwarder has filed, before December 4, 1993, a suit
for the collection of additional freight charges and no-
tifies 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 DE-
CEMBER 4, 1993.—If the carrier or freight forwarder
156
or party representing such carrier or freight for-
warder has demanded the payment of additional
freight charges, and has not filed a suit for the collec-
tion of such additional freight charges, before Decem-
ber 4, 1993, and notifies the person from whom addi-
tional 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 addi-
tional legally applicable freight rate or charges,
or
‘‘(B) March 5, 1994.
‘‘(h) CLAIMS INVOLVING SMALL-BUSINESS CONCERNS,
CHARITABLE ORGANIZATIONS, AND RECYCLABLE MATE-
RIALS.—
‘‘(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 be-
tween 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.),
157
‘‘(B) if such person is an organization
which is described in section 501(c)(3) of the In-
ternal 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 re-
cyclable materials.
‘‘(2) RECYCLABLE MATERIALS DEFINED.—In this
subsection, the term ‘recyclable materials’ means
waste products for recycling or reuse in the further-
ance of recognized pollution control programs.
‘‘§ 13709. Additional motor carrier undercharge provi-
sions
‘‘(a) MISCELLANEOUS PROVISIONS.—
‘‘(1) INFORMATION
RELATING
TO
BASIS
OF
RATE.—A motor carrier of property (other than a
motor carrier providing transportation in noncontig-
uous 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 any rate agreed to between the shipper and
carrier may have been based.
‘‘(2) REASONABLENESS OF RATES; COLLECTING
ADDITIONAL
CHARGES.—With respect to transpor-
tation provided before the effective date of this section,
when the applicability or reasonableness of the rates
158
and related provisions billed by a motor carrier is
challenged by the person paying the freight charges,
the Panel shall determine whether such rates and pro-
visions are reasonable or applicable based on the
record before it. 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 Panel 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 with-
in 180 days of the receipt of the original bill in order
to have the right to collect such charges.
‘‘(3) CHARGES BEFORE EFFECTIVE DATE.—With
respect to transportation provided before the effective
date of this section, if a shipper seeks to contest the
charges originally billed or additional charges subse-
quently billed, the shipper may request that the Panel
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.
159
‘‘(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 Com-
mission 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 transpor-
tation 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 author-
ity to provide transportation as both a motor common car-
rier 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 com-
mon carrier or contract carrier capacity and the parties
are not able to resolve the dispute consensually, the Panel
shall resolve the dispute.
‘‘§ 13710. Alternative procedure for resolving under-
charge disputes
‘‘(a) GENERAL RULE.—It shall be an unreasonable
practice for a motor carrier of property (other than a house-
160
hold goods carrier) providing transportation that was sub-
ject to jurisdiction under subchapter II of chapter 105 before
the effective date of this section, a freight forwarder (other
than a household goods freight forwarder), or a party rep-
resenting such a carrier or freight forwarder to attempt to
charge or to charge for a transportation service the dif-
ference between the applicable rate that was lawfully in ef-
fect pursuant to a tariff that was filed in accordance with
chapter 107 of this 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 13501(1) of this title or is transporting
property between places described in section 13501(1) of
this title for the purpose of avoiding application of this sec-
tion.
‘‘(b) JURISDICTION OF PANEL.—
‘‘(1) DETERMINATION.—The Panel shall have ju-
risdiction 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 represent-
ing a motor carrier or freight forwarder is an unrea-
sonable practice under subsection (a). If the Panel de-
termines that attempting to charge or the charging of
the rate is an unreasonable practice under subsection
161
(a), the carrier, freight forwarder, or party may not
collect the difference described in subsection (a) be-
tween the applicable rate and the negotiated rate for
the transportation service.
‘‘(2) FACTORS TO CONSIDER.—In making a de-
termination under paragraph (1), the Panel shall
consider—
‘‘(A) whether the person was offered a trans-
portation rate by the carrier or freight forwarder
or party other than that legally on file with the
Interstate Commerce Commission at the time of
the movement for the transportation service;
‘‘(B) whether the person tendered freight to
the carrier or freight forwarder in reasonable re-
liance upon the offered transportation rate;
‘‘(C) whether the carrier or freight for-
warder did not properly or timely file with the
Interstate Commerce Commission a tariff provid-
ing 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 for-
warder; and
162
‘‘(E) whether the carrier or freight for-
warder 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 reason-
ableness 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) be-
tween 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 Panel has
made a determination as to the reasonableness of the prac-
tice 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 the effective date of this section, to the re-
quirements of sections 10761(a) and 10762, relating to a
filed tariff rate and other general tariff requirements, as
in effect on the day before such effective date.
‘‘(e) NONAPPLICABILITY OF NEGOTIATED RATE DIS-
PUTE RESOLUTION PROCEDURE.—If a person elects to seek
enforcement of subsection (a) with respect to a rate for a
163
transportation or service, section 13708 shall not apply to
such rate.
‘‘(f) DEFINITIONS.—In this section, the term ‘‘nego-
tiated 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.
‘‘§ 13711. Government traffic
‘‘A carrier providing transportation or service for the
United States Government may transport property or indi-
viduals 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 Govern-
ment can be obtained from a carrier lawfully operating in
the area where the transportation would be provided.
‘‘§ 13712. Food and grocery transportation
‘‘(a) CERTAIN
COMPENSATION
PROHIBITED.—Not-
withstanding any other provision of law, it shall not be un-
lawful for a seller of food and grocery products using a uni-
form zone delivered pricing system to compensate a cus-
tomer 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 nondiscrim-
164
inatory 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 Con-
gress 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 motor carrier brokers.
‘‘13905. Effective periods of registration.
‘‘13906. Security of motor carriers, brokers, and freight forwarders.
‘‘13907. Household goods agents.
‘‘13908. Registration and other reforms.
‘‘§ 13901. Requirement for registration
‘‘A person may provide transportation or service sub-
ject 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.
‘‘§ 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 pro-
vide transportation subject to jurisdiction under sub-
chapter I of chapter 135 of this title as a motor car-
165
rier if the Secretary finds that the person is willing
and able to comply with—
‘‘(A) this part and the applicable regula-
tions of the Secretary and the Panel;
‘‘(B) any safety regulations imposed by the
Secretary and the safety fitness requirements es-
tablished by the Secretary under section 31144;
and
‘‘(C) the minimum financial responsibility
requirements established by the Secretary pursu-
ant to sections 13906 and 31138.
‘‘(2) CONSIDERATION OF EVIDENCE; FINDINGS.—
The Secretary shall consider and, to the extent appli-
cable, make findings on, any evidence demonstrating
that the registrant is unable to comply with the re-
quirements of subparagraph (A), (B), or (C) of para-
graph (1).
‘‘(3) WITHHOLDING.—If the Secretary deter-
mines that any registrant under this section does not
meet the requirements of paragraph (1), the Secretary
shall withhold registration.
‘‘(4) LIMITATION
ON
COMPLAINTS.—The Sec-
retary may hear a complaint from any person con-
cerning a registration under this subsection only on
the ground that the registrant fails or will fail to
166
comply with this part, the applicable regulations of
the Secretary and the Panel, the safety regulations of
the Secretary, or the safety fitness or minimum finan-
cial 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 sub-
chapter I of chapter 135 as a motor carrier of pas-
sengers if the Secretary finds that the recipient meets
the requirements of subsection (a)(1), unless the Sec-
retary finds, on the basis of evidence presented by any
person objecting to the registration, that the transpor-
tation 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
167
as a motor carrier of passengers if the Secretary
finds that—
‘‘(i) the recipient meets the require-
ments 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
‘‘(II) the transportation is to be pro-
vided entirely in the area in which the pub-
lic recipient provides regularly scheduled
mass transportation services.
‘‘(B) REGULAR-ROUTE TRANSPORTATION.—
The Secretary shall register under subsection
(a)(1) a public recipient of governmental assist-
ance to provide regular-route transportation sub-
ject to jurisdiction under subchapter I of chapter
135 as a motor carrier of passengers if the Sec-
retary finds that the recipient meets the require-
ments 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.