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SEC. 4136. STATE LAWS RELATING TO VEHICLE TOWING. 
Nothing in section 14501(c) of title 49, United States 
Code, shall be construed to prevent a State from requiring 
that, in the case of vehicles towed from private property 
without the consent of the owner or operator of the vehi-
cle, towing companies have prior written authorization 
from the property owner or lessee (or an employee or 
agent thereof), or that such owner or lessee (or an em-
ployee or agent thereof) be present at the time the vehicle 
is towed from the property, or both. 
SEC. 4137. SPECIAL RULE FOR FISCAL YEAR 2004. 
In any case in which an amount is authorized to be 
appropriated, made available, allocated, set aside, taken 
down, or subject to an obligation limitation for fiscal year 
2004 for a program, project, or activity in any provision 
of this title, including an amendment made by this title, 
that is different than the amount authorized to be appro-
priated, made available, allocated, set aside, taken down, 
or subject to an obligation limitation for fiscal year 2004 
for such program, project, or activity in any provision of 
the Surface Transportation Extension Act of 2004, Part 
IV (Public Law 108–280), including any amendment 
made by such Act, the amount referred to in such Act 
shall be the amount authorized to be appropriated, made 
available, allocated, set aside, taken down, or subject to 
an obligation limitation.
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SEC. 4138. NEBRASKA CUSTOM HARVESTERS LENGTH EX-
EMPTION. 
Section 31112(c) of title 49, United States Code, is 
amended by adding at the end the following: 
‘‘(5) Nebraska may allow the operation of com-
mercial vehicle combinations of not to exceed 81 
feet, 6 inches that are used only for harvesting 
wheat, soybeans, and milo on a contract basis for 
agricultural producers during the harvest months for 
such crops as defined by the State of Nebraska.’’. 
SEC. 4139. TRUCKLOAD FUEL SURCHARGE. 
(a) IN GENERAL.—Chapter 137 of title 49, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 13714. Fuel surcharge 
‘‘(a) REQUIREMENT FOR FUEL SURCHARGE.—Any 
contract or agreement, providing for truckload transpor-
tation or service involving a motor carrier, broker, or 
freight forwarder subject to jurisdiction under chapter 135 
of this title that regularly provides such transportation or 
service, shall include a requirement that the payer of 
transportation charges pay a fuel surcharge that is no less 
than the amount of the Increased Cost of Fuel as deter-
mined under subsection (c). 
‘‘(b) IMPLEMENTATION.—The surcharge required by 
subsection (a)—
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‘‘(1) shall apply during any period in which the 
Current Diesel Fuel Price surpasses, by $0.05 per 
gallon of diesel fuel, the Benchmark Price deter-
mined under subsection (c); 
‘‘(2) shall expire when the Current Diesel Fuel 
Price equals or is less than $0.05 above the Bench-
mark Price set forth in subsection (c); 
‘‘(3) shall be calculated on the date the applica-
ble shipment is physically tendered to the motor car-
rier, broker, or freight forwarder; 
‘‘(4) shall be itemized separately on the invoices 
of the motor carrier, broker, or freight forwarder; 
‘‘(5) shall be paid to the motor carrier, broker, 
or freight forwarder by the payer of transportation 
charges; 
‘‘(6) shall not apply to any transportation con-
tract or agreement, in effect on the date of enact-
ment of this section, that provides for a fuel cost ad-
justment or surcharge; and 
‘‘(7) may be expressed on a mileage basis, as a 
percentage of the freight charge, or in any other 
manner the motor carrier, broker, or freight for-
warder elects. 
‘‘(c) CALCULATION OF INCREASED COST OF FUEL.—
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‘‘(1) INCREASED COST OF FUEL.—For purposes 
of this section, the Increased Cost of Fuel shall be 
the amount determined by subtracting the Bench-
mark Price from the Current Diesel Fuel Price and 
then multiplying the difference by the number of 
gallons of diesel fuel used in the transportation or 
service provided. 
‘‘(2) BENCHMARK PRICE.—For purposes of this 
section, the following apply: 
‘‘(A) INITIAL PRICE.—For the period be-
ginning on the date of enactment of this section 
and ending immediately before the effective 
date of the first adjusted Benchmark Price 
under subparagraph (B), the Benchmark Price 
shall be $1.10 per gallon of diesel fuel. 
‘‘(B) SUBSEQUENT
ADJUSTMENTS.—Dur-
ing each calendar year subsequent to the cal-
endar year of enactment of this section, the 
Secretary of Transportation shall adjust the 
Benchmark Price by the percentage change in 
the previous calendar year’s Annual Truckload 
Producer Price Index as determined by the De-
partment of Labor and shall publish that ad-
justed Benchmark Price in the Federal Reg-
ister. The effective date of each adjusted
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Benchmark Price shall be the first day of the 
month following the date of such publication. 
‘‘(3) CURRENT DIESEL FUEL PRICE.—For pur-
poses of this section, the Current Diesel Fuel Price 
shall—
‘‘(A) be the latest weekly average price for 
retail on-highway diesel fuel published by the 
Energy Information Administration for the Pe-
troleum Administration for Defense district or 
subdistrict where a shipment is physically ten-
dered to the motor carrier, broker, or freight 
forwarder; and 
‘‘(B) take effect the midnight after the 
weekly average price is published. 
‘‘(4) AMOUNT OF FUEL USED.—In calculating 
the number of gallons of diesel fuel used in pro-
viding transportation or service under paragraph 
(1)—
‘‘(A) it shall be assumed that a gallon of 
diesel fuel is used for each 5 miles of transpor-
tation; and 
‘‘(B) the mileage of the transportation or 
service provided shall be the number of miles as 
determined under the ‘Defense Table of Official 
Distances’ issued by the Surface Deployment
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and Distribution Command, Department of De-
fense or under any applicable mileage guide es-
tablished under section 13703(a)(1)(D). 
‘‘(d) LIMITATION ON AUTHORITY.—Notwithstanding 
any other provision of this part, any action to enforce this 
section may only be brought by the motor carrier, broker, 
or freight forwarder that provided the transportation serv-
ices against the payor of the transportation charges or by 
the payor of the transportation charges against the motor 
carrier, broker, of freight forwarder that provided the 
transportation services. In such action, a court shall have 
the authority to determine whether a fuel surcharge re-
quired under this section has been assessed or paid. A 
court shall not have the authority in such action to review 
any other charges imposed by the provider of the transpor-
tation services. Notwithstanding the publication of the 
Benchmark Price under subsection (c)(2), neither the Sec-
retary of Transportation nor the Surface Transportation 
Board shall have regulatory or enforcement authority re-
lating to provisions of this section. 
‘‘(e) DEFINITIONS.—In this section, the following 
definitions apply: 
‘‘(1) PAYER OF TRANSPORTATION CHARGES.—
The term ‘payer of transportation charges’ means
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any person who pays for the transportation or serv-
ice involved. 
‘‘(2) PERSON RESPONSIBLE FOR PAYING FOR 
FUEL.—The term ‘person responsible for paying for 
fuel’ means any person who bears the cost of fuel 
used for the transportation or service involved.’’. 
(b) CLERICAL AMENDMENT.—The analysis for such 
chapter is amended by adding at the end the following:
‘‘13714. Fuel surcharge.’’.
(c) CONFORMING AMENDMENT.—Section 14102 of 
title 49, United States Code is amended by adding at the 
end the following: 
‘‘(c) MANDATORY PASS-THROUGH TO COST BEAR-
ER.—
‘‘(1) IN GENERAL.—A motor carrier, broker, or 
freight forwarder providing transportation or service 
using fuel not paid for by it—
‘‘(A) shall pass through to the person re-
sponsible for paying for fuel any fuel surcharge 
or adjustment required pursuant to section 
13714 or provided for in a transportation con-
tract or agreement at the same time payment 
for the transportation or service is made to the 
person responsible for paying for fuel; 
‘‘(B) shall disclose in writing to the person 
responsible for paying for fuel the amount of all
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freight rates, charges, and fuel surcharges ap-
plicable to that transportation or service; and 
‘‘(C) may not reduce, for the purpose of 
adjusting for or avoiding the pass-through of a 
fuel surcharge, nonfuel related compensatory 
transportation payments to the person respon-
sible for paying for fuel. 
‘‘(2) LIMITATION
ON
AUTHORITY.—Notwith-
standing any other provision of this part, the person 
responsible for paying for fuel may bring an action 
to enforce this subsection under section 14704 
against the motor carrier, freight forwarder, or 
broker providing the transportation services with ve-
hicles not owned by it or with fuel not paid for by 
it. Neither the Secretary of Transportation nor the 
Surface Transportation Board shall have regulatory 
or enforcement authority relating to provisions of 
this subsection.’’. 
Subtitle B—Household Goods 
Transportation 
SEC. 4201. FEDERAL-STATE RELATIONS RELATING TO 
TRANSPORTATION OF HOUSEHOLD GOODS. 
(a) NONPREEMPTION
OF INTRASTATE TRANSPOR-
TATION
OF
HOUSEHOLD
GOODS.—Section
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14501(c)(2)(B) of title 49, United States Code, is amend-
ed by inserting ‘‘intrastate’’ before ‘‘transportation’’. 
(b) ENFORCEMENT
OF
CONSUMER
PROTECTION 
WITH RESPECT
TO INTERSTATE HOUSEHOLD GOODS 
CARRIERS.—Chapter 145 of such title is amended by add-
ing at the end the following: 
‘‘§ 14506. Enforcement of Federal regulations by State 
attorneys general 
‘‘(a) IN GENERAL.—A State, as parens patriae, may 
bring a civil action on behalf of a resident of the State 
in an appropriate district court of the United States to 
enforce a regulation or order of the Secretary or Board—
‘‘(1) to protect an individual shipper of house-
hold goods if such regulation or order governs the 
delivery of the shipper’s household goods; or 
‘‘(2) to impose a civil penalty under section 
14915 whenever the attorney general of the State 
has reason to believe that the interests of the resi-
dents of the State have been or are being threatened 
or adversely affected by—
‘‘(A) a carrier or broker providing trans-
portation of household goods subject to jurisdic-
tion under subchapter I or III of chapter 135 
who is committing repeat violations of section 
14915; or
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‘‘(B) a foreign motor carrier providing 
transportation of household goods who is reg-
istered under section 13902 and who is commit-
ting repeat violations of section 14915. 
‘‘(b) LIMITATION ON STATUTORY CONSTRUCTION.—
Nothing in this section shall be construed—
‘‘(1) as preventing an attorney general from ex-
ercising the powers conferred on the attorney gen-
eral by the laws of such State to conduct investiga-
tions or to administer oaths or affirmations or to 
compel the attendance of witnesses or the production 
of documentary and other evidence; 
‘‘(2) as prohibiting a State official from pro-
ceeding in State court to enforce a criminal statute 
of the State; 
‘‘(3) as authorizing a State or political subdivi-
sion of a State to bring an enforcement action under 
a consumer protection law, regulation, or other pro-
vision of the State relating to interstate transpor-
tation of household goods (as defined in section 
13102(10)(A)) with respect to an activity that is in-
consistent with Federal laws and regulations relating 
to interstate transportation of household goods; or 
‘‘(4) as authorizing a State, as parens patriae, 
to bring a class civil action on behalf of its residents
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to enforce a regulation or order of the Secretary or 
Board. 
‘‘(c) ACTIONS
BY
THE SECRETARY
OR BOARD.—
Whenever a civil action has been instituted by or on behalf 
of the Secretary or Board for violation of section 14915, 
no State may, during the pendency of such action, insti-
tute a civil action under subsection (a) against any defend-
ant named in the complaint relating to such violation. 
‘‘(d) VENUE; SERVICE OF PROCESS.—Any civil ac-
tion to be brought under subsection (a) in a district court 
of the United States may be brought in the district in 
which the defendant is found, is an inhabitant, or trans-
acts business or wherever venue is proper under section 
1391 of title 28. Process in such an action may be served 
in any district in which the defendant is an inhabitant or 
in which the defendant may be found.’’. 
(c) CONFORMING AMENDMENT.—The analysis for 
such chapter is amended by adding at the end the fol-
lowing:
‘‘14506. Enforcement of Federal regulations by State attorneys general.’’.
SEC. 4202. ARBITRATION REQUIREMENTS. 
(a) OFFERING SHIPPERS ARBITRATION.—Section 
14708(a) of title 49, United States Code, is amended by 
inserting before the period at the end the following: ‘‘and 
to determine whether carrier charges, in addition to those 
collected at delivery, must be paid by the shipper for trans-
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portation and services related to the transportation of 
household goods’’. 
(b) THRESHOLD FOR BINDING ARBITRATION.—Sec-
tion 14708(b)(6) of such title is amended by striking 
‘‘$5,000’’ each place it appears and inserting ‘‘$10,000’’. 
(c) DEADLINE FOR DECISION.—Section 14708(b)(8) 
of such title is amended—
(1) by striking ‘‘and’’; and 
(2) by inserting after ‘‘for damages’’ the fol-
lowing: ‘‘, and an order requiring the payment of ad-
ditional carrier charges’’. 
(d) ATTORNEY’S
FEES
TO
SHIPPERS.—Section 
14708(d)(3) of such title is amended—
(1) by redesignating subparagraphs (A) and 
(B) as subparagraphs (B) and (C), respectively; and 
(2) by inserting before subparagraph (B) (as so 
redesignated) the following: 
‘‘(A) the shipper was not advised by the carrier 
during the claim settlement process that a dispute 
settlement program was available to resolve the dis-
pute;’’.
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SEC. 4203. CIVIL PENALTIES RELATING TO HOUSEHOLD 
GOODS 
BROKERS 
AND 
UNAUTHORIZED 
TRANSPORTATION. 
Section 14901(d) of title 49, United States Code, is 
amended—
(1) by striking ‘‘If a carrier’’ and inserting the 
following: 
‘‘(1) IN GENERAL.—If a carrier’’; and 
(2) by adding at the end the following: 
‘‘(2) ESTIMATE OF BROKER WITHOUT CARRIER 
AGREEMENT.—If a broker for transportation of 
household goods subject to jurisdiction under sub-
chapter I of chapter 135 makes an estimate of the 
cost of transporting any such goods before entering 
into an agreement with a carrier to provide trans-
portation of household goods subject to such juris-
diction, the broker is liable to the United States for 
a civil penalty of not less than $10,000 for each vio-
lation. 
‘‘(3) UNAUTHORIZED TRANSPORTATION.—If a 
person provides transportation of household goods 
subject to jurisdiction under subchapter I of chapter 
135 or provides broker services for such transpor-
tation without being registered under chapter 139 to 
provide such transportation or services as a motor 
carrier or broker, as the case may be, such person
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is liable to the United States for a civil penalty of 
not less than $25,000 for each violation.’’. 
SEC. 4204. CIVIL PENALTY FOR HOLDING HOUSEHOLD 
GOODS HOSTAGE. 
(a) IN GENERAL.—Chapter 149 of title 49, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 14915. Holding household goods hostage 
‘‘(a) HOLDING HOUSEHOLD GOODS HOSTAGE DE-
FINED.—For purposes of this section, the term ‘holding 
household goods hostage’ means the knowing and willful 
refusal to relinquish possession of a shipment of household 
goods described in section 13102(10)(A) upon payment of 
not more than 100 percent of a binding estimate (or, in 
the case of a nonbinding estimate, not more than 110 per-
cent of the estimated charges for such shipment). 
‘‘(b) CIVIL PENALTY.—Whoever is found holding a 
household goods shipment hostage is liable to the United 
States for a civil penalty of not less than $10,000 for each 
violation. If such person is a carrier or broker, the Sec-
retary may suspend for a period of not less than 6 months 
the registration of such carrier or broker under chapter 
139.’’.
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(b) CONFORMING AMENDMENT.—The analysis for 
such chapter is amended by adding at the end the fol-
lowing:
‘‘14915. Holding household goods hostage.’’.
SEC. 4205. WORKING GROUP FOR DEVELOPMENT OF PRAC-
TICES AND PROCEDURES TO ENHANCE FED-
ERAL-STATE RELATIONS. 
(a) IN GENERAL.—Not later than 90 days after the 
date of enactment of this Act, the Secretary shall establish 
a working group of State attorneys general, State con-
sumer protection administrators, and Federal and local 
law enforcement officials for the purpose of developing 
practices and procedures to enhance the Federal-State 
partnership in enforcement efforts, exchange of informa-
tion, and coordination of enforcement efforts with respect 
to interstate transportation of household goods and of 
making legislative and regulatory recommendations to the 
Secretary concerning such enforcement efforts. 
(b) CONSULTATION.—In carrying out subsection (a), 
the working group shall consult with industries involved 
in the transportation of household goods. 
(c) FEDERAL ADVISORY COMMITTEE ACT EXEMP-
TION.—The Federal Advisory Committee Act (5 U.S.C. 
App.) shall not apply to the working group established 
under subsection (a).
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(d) TERMINATION DATE.—The working group shall 
remain in effect until September 30, 2009. 
SEC. 4206. CONSUMER HANDBOOK ON DOT WEB SITE. 
Not later than 1 year after the date of enactment 
of this Act, the Secretary shall take such action as may 
be necessary to ensure that publication ESA 03005 of the 
Federal Motor Carrier Safety Administration entitled 
‘‘Your Rights and Responsibilities When You Move’’, is 
prominently displayed, and available in language that is 
readily understandable by the general public, on the Web 
site of the Department of Transportation. 
SEC. 4207. RELEASE OF HOUSEHOLD GOODS BROKER IN-
FORMATION. 
Not later than 1 year after the date of enactment 
of this Act, the Secretary shall modify the regulations con-
tained in part 375 of title 49, Code of Federal Regula-
tions, to require a broker that is subject to such regula-
tions to provide shippers with the following information 
whenever they have contact with a shipper or potential 
shipper: 
(1) The Department of Transportation number 
of the broker. 
(2) The ESA 03005 publication referred to in 
section 4206 of this Act.
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(3) A list of all motor carriers providing trans-
portation of household goods used by the broker and 
a statement that the broker is not a motor carrier 
providing transportation of household goods. 
SEC. 4208. CONSUMER COMPLAINT INFORMATION. 
(a) ESTABLISHMENT OF SYSTEM.—Not later than 1 
year after the date of enactment of this Act, the Secretary 
shall—
(1) establish a system for filing and logging 
consumer complaints relating to motor carriers pro-
viding transportation of household goods and for 
compiling complaint information gathered by the De-
partment of Transportation and the States with re-
gard to such carriers, a database of the complaints, 
and a procedure for the public to have access to ag-
gregated information and for carriers to challenge 
duplicate or fraudulent information in the database; 
and 
(2) issue regulations requiring each motor car-
rier of household goods to submit on a quarterly 
basis a report summarizing—
(A) the number of shipments that originate 
and are delivered for individual shippers during 
the reporting period by the carrier;
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(B) the number and general category of 
complaints lodged by consumers with the car-
rier; 
(C) the number of claims filed with the 
carrier for loss and damage in excess of $500; 
(D) the number of such claims resolved 
during the reporting period; 
(E) the number of such claims declined in 
the reporting period; and 
(F) the number of such claims that are 
pending at the close of the reporting period. 
(b) USE OF INFORMATION.—The Secretary shall con-
sider information in the data base established under sub-
section (a) in its household goods compliance and enforce-
ment program. 
SEC. 4209. INSURANCE REGULATIONS. 
(a) REVIEW.—Not later than 1 year after the date 
of enactment of this Act, the Secretary shall undertake 
a review of the current Federal regulations regarding in-
surance coverage provided by motor carriers providing 
transportation of household goods and revise such regula-
tions in order to provide enhanced protection for shippers 
in the case of loss or damage as determined necessary. 
(b) DETERMINATIONS.—The review shall include, but 
not be limited to, a determination of—
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(1) whether the current regulations provide ade-
quate protection for shippers; 
(2) whether an individual shipper should pur-
chase insurance as opposed to the carrier; and 
(3) whether there are abuses of the current reg-
ulations that leave the shipper unprotected in loss 
and damage claims. 
SEC. 4210. ESTIMATING REQUIREMENTS. 
Section 14104(b)(1) of title 49, United States Code, 
is amended to read as follows: 
‘‘(1) REQUIRED TO BE IN WRITING.—
‘‘(A) IN GENERAL.—Except as otherwise 
provided in this subsection, every motor carrier 
providing transportation of household goods de-
scribed in section 13102(10)(A) subject to ju-
risdiction under subchapter I of chapter 135 
shall conduct a physical survey of the household 
goods to be transported on behalf of a prospec-
tive individual shipper and shall provide the 
shipper with a written estimate of charges for 
the transportation and all related services. 
‘‘(B) WAIVER.—A shipper may elect to 
waive a physical survey under this paragraph by 
written agreement signed by the shipper before 
the shipment is loaded. A copy of the waiver
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agreement must be retained as an addendum to 
the bill of lading and shall be subject to the 
same record inspection and preservation re-
quirements of the Secretary as are applicable to 
bills of lading. 
‘‘(C) ESTIMATE.—
‘‘(i) IN GENERAL.—Notwithstanding a 
waiver under subparagraph (B), a carrier’s 
statement of charges for transportation 
must be submitted to the shipper in writ-
ing and must indicate whether it is binding 
or nonbinding. 
‘‘(ii) BINDING.—A binding estimate 
under this paragraph must indicate that 
the carrier and shipper are bound by such 
charges. The carrier may impose a charge 
for providing a written binding estimate. 
‘‘(iii) NONBINDING.—A nonbinding 
estimate under this paragraph must indi-
cate that the actual charges will be based 
upon the actual weight of the individual 
shipper’s shipment and the carrier’s lawful 
tariff charges. The carrier may not impose 
a charge for providing a nonbinding esti-
mate.’’.
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SEC. 4211. APPLICATION OF STATE CONSUMER PROTEC-
TION LAWS TO CERTAIN HOUSEHOLD GOODS 
CARRIERS. 
(a) STUDY.—The Comptroller General shall conduct 
a study on the current consumer protection authorities 
and actions of the Department of Transportation and the 
impact on shippers and carriers of household goods in-
volved in interstate transportation of allowing State attor-
neys general to apply State consumer protection laws to 
such transportation. 
(b) MATTERS TO BE CONSIDERED.—In conducting 
the study, the Comptroller General shall consider, at a 
minimum—
(1) the level of consumer protection being pro-
vided to consumers through Federal household goods 
regulations and how household goods regulations re-
lating to consumer protection compare to regulations 
relating to consumer protection for other modes of 
transportation regulated by the Department of 
Transportation; 
(2) the history and background of State en-
forcement of State consumer protection laws on 
household goods carriers providing intrastate trans-
portation and what effects such laws have on the 
ability of intrastate household goods carriers to op-
erate;
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(3) what operational impacts, if any, would re-
sult on household goods carriers engaged in inter-
state commerce being subject to the State consumer 
protection laws; and 
(4) the potential for States to regulate rates or 
other business operations if State consumer protec-
tion laws applied to interstate household goods 
movements. 
(c) CONSULTATION.—In conducting the study, the 
Comptroller General shall consult with the Secretary, 
State attorneys general, consumer protection agencies, 
and the household goods industry. 
(d) REPORT.—Not later than 18 months after the 
date of enactment of this Act, the Comptroller General 
shall transmit to the Committee of Transportation and In-
frastructure of the House of Representatives and the Com-
mittee on Commerce, Science and Transportation of the 
Senate a report on the results of the study. 
SEC. 4212. APPLICABILITY TO HOUSEHOLD GOODS MOTOR 
CARRIERS. 
(a) IN GENERAL.—The provisions of title 49, United 
States Code, and this Act (including any amendments 
made by this Act) relating to the transportation of house-
hold goods shall only apply to household goods motor car-
riers.
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(b) HOUSEHOLD
GOODS
MOTOR
CARRIER
DE-
FINED.—In this section, the term ‘‘household goods motor 
carrier’’ means a motor carrier as defined in section 
13102(12) of title 49, United States Code, which, in the 
ordinary course of its business of providing transportation 
of household goods, offers some or all of the following ad-
ditional services: binding and nonbinding estimates, 
inventorying, protective packing and unpacking of indi-
vidual items, and loading and unloading at personal resi-
dences. 
SEC. 4213. VIOLATIONS OF OUT-OF-SERVICE ORDERS. 
Section 31310(i)(2) of title 49, United States Code, 
is amended by adding at the end the following: 
‘‘(D) an employer that knowingly and willfully 
allows or requires an employee to operate a commer-
cial motor vehicle in violation of an out-of-service 
order shall, upon conviction, be subject for each of-
fense to imprisonment for a term not to exceed one 
year or a fine under title 18, or both.’’. 
SEC. 4214. CRIMINAL PENALTY FOR HOLDING GOODS HOS-
TAGE . 
Section 14915 of title 49, United States Code, as 
added by section 4204 of this Act is amended by adding 
at the end the following:
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‘‘(c) CRIMINAL PENALTY.—A motor carrier that has 
been convicted of knowingly and willfully holding house-
hold goods hostage by falsifying documents or demanding 
the payment of charges for services that were not per-
formed or were not necessary in the safe and adequate 
movement of a shipment of household goods shall be fined 
under title 18, or imprisoned not more than 2 years, or 
both.’’. 
TITLE V—TRANSPORTATION 
RESEARCH AND EDUCATION 
Subtitle A—Funding 
SEC. 5101. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—The following sums are author-
ized to be appropriated out of the Highway Trust Fund 
(other than the Mass Transit Account): 
(1) SURFACE TRANSPORTATION RESEARCH, DE-
VELOPMENT, 
AND
DEPLOYMENT
PROGRAM.—To 
carry out sections 502, 503, 506, 507, 509, and 510 
of title 23, United States Code, and sections 5207, 
5210, 5211, and 5402 of this title—
(A) $169,000,000 for fiscal year 2004; 
(B) $239,500,000 for fiscal year 2005; 
(C) $239,500,000 for fiscal year 2006; 
(D) $239,500,000 for fiscal year 2007; 
(E) $239,500,000 for fiscal year 2008; and
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(F) $239,500,000 for fiscal year 2009. 
(2) TRAINING AND EDUCATION.—To carry out 
section 504 of title 23, United States Code, and sec-
tion 5211 of this Act, $24,500,000 for fiscal year 
2004 and $33,500,000 for each of fiscal years 2005 
through 2009. 
(3) BUREAU
OF
TRANSPORTATION
STATIS-
TICS.—For the Bureau of Transportation Statistics 
to carry out section 111 of title 49, United States 
Code, $31,000,000 for fiscal year 2004 and 
$33,000,000 for each of fiscal years 2005 through 
2009. 
(4) 
UNIVERSITY
TRANSPORTATION
RE-
SEARCH.—To carry out sections 5505 and 5506 of 
title 49, United States Code, $54,500,000 for fiscal 
year 2004 and $71,000,000 for each of fiscal years 
2005 through 2009. 
(5) INTELLIGENT
TRANSPORTATION
SYSTEMS 
(ITS) RESEARCH.—To carry out subtitle F of this 
title, $115,000,000 for each of fiscal years 2004 
through 2009. 
(6) ITS DEPLOYMENT.—To carry out sections 
5208 and 5209 of the Transportation Equity Act for 
the 21st Century (112 Stat. 458; 112 Stat. 460), 
$100,000,000 for fiscal years 2004 and 2005.
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(b) APPLICABILITY OF TITLE 23, UNITED STATES 
CODE.—Funds authorized to be appropriated by sub-
section (a) shall be available for obligation in the same 
manner as if such funds were apportioned under chapter 
1 of title 23, United States Code; except that the Federal 
share of the cost of a project or activity carried out using 
such funds shall be 50 percent, unless otherwise expressly 
provided by this Act (including the amendments made by 
this Act) or otherwise determined by the Secretary, and 
such funds shall remain available until expended and shall 
not be transferable. 
SEC. 5102. OBLIGATION CEILING. 
Notwithstanding any other provision of law, the total 
of all obligations from amounts made available from the 
Highway Trust Fund (other than the Mass Transit Ac-
count) by sections 5101(a) and 5401 of this Act shall not 
exceed $483,000,000 for fiscal year 2004, $484,000,000 
for fiscal year 2005, $485,000,000 for fiscal year 2006, 
$485,000,000 for fiscal year 2007, $486,000,000 for fis-
cal year 2008, and $487,000,000 for fiscal year 2009. 
SEC. 5103. FINDINGS. 
Congress finds the following: 
(1) Research and development are critical to de-
veloping and maintaining a transportation system 
that meets the goals of safety, mobility, economic vi-
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tality, efficiency, equity, and environmental protec-
tion. 
(2) Federally sponsored surface transportation 
research and development has produced many suc-
cesses. The development of rumble strips has in-
creased safety; research on materials has increased 
the lifespan of pavements, saving money and reduc-
ing the disruption caused by construction; and Geo-
graphic Information Systems have improved the 
management and efficiency of transit fleets. 
(3) Despite these important successes, the Fed-
eral surface transportation research and develop-
ment investment represents less than one percent of 
overall government spending on surface transpor-
tation. 
(4) While Congress increased funding for over-
all transportation programs by about 40 percent in 
the Transportation Equity Act for the 21st Century, 
funding for transportation research and development 
remained relatively flat. 
(5) The Federal investment in research and de-
velopment should be balanced between short-term 
applied and long-term fundamental research and de-
velopment. The investment should also cover a wide 
range of research areas, including research on mate-
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rials and construction, research on operations, re-
search on transportation trends and human factors, 
and research addressing the institutional barriers to 
deployment of new technologies. 
(6) Therefore, Congress finds that it is in the 
United States interest to increase the Federal in-
vestment in transportation research and develop-
ment, and to conduct research in critical research 
gaps, in order to ensure that the transportation sys-
tem meets the goals of safety, mobility, economic vi-
tality, efficiency, equity, and environmental protec-
tion. 
Subtitle B—Research, Technology, 
and Education 
SEC. 5201. RESEARCH, TECHNOLOGY, AND EDUCATION. 
(a) RESEARCH, TECHNOLOGY, AND EDUCATION.—
Title 23, United States Code, is amended—
(1) in the table of chapters by striking the item 
relating to chapter 5 and inserting the following:
‘‘5. RESEARCH, TECHNOLOGY, AND EDUCATION .......................
501’’.
(2) by striking the heading for chapter 5 and 
inserting the following:
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‘‘CHAPTER 5—RESEARCH, TECHNOLOGY, 
AND EDUCATION’’. 
(b) STATEMENT
OF PRINCIPLES GOVERNING RE-
SEARCH AND TECHNOLOGY INVESTMENTS.—Section 502 
of such title is amended—
(1) by redesignating subsections (a) through (g) 
as subsections (b) through (h), respectively; and 
(2) by inserting before subsection (b) (as so re-
designated) the following: 
‘‘(a) BASIC PRINCIPLES GOVERNING RESEARCH AND 
TECHNOLOGY INVESTMENTS.—
‘‘(1) COVERAGE.—Surface transportation re-
search and technology development shall include all 
activities leading to technology development and 
transfer, as well as the introduction of new and in-
novative ideas, practices, and approaches, through 
such mechanisms as field applications, education and 
training, and technical support. 
‘‘(2) FEDERAL RESPONSIBILITY.—Funding and 
conducting surface transportation research and tech-
nology transfer activities shall be considered a basic 
responsibility of the Federal Government when the 
work—
‘‘(A) is of national significance;
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‘‘(B) supports research in which there is a 
clear public benefit and private sector invest-
ment is less than optimal; 
‘‘(C) supports a Federal stewardship role 
in assuring that State and local governments 
use national resources efficiently; or 
‘‘(D) presents the best means to support 
Federal policy goals compared to other policy 
alternatives. 
‘‘(3) ROLE.—Consistent with these Federal re-
sponsibilities, the Secretary shall—
‘‘(A) conduct research; 
‘‘(B) support and facilitate research and 
technology transfer activities by State highway 
agencies; 
‘‘(C) share results of completed research; 
and 
‘‘(D) support and facilitate technology and 
innovation deployment. 
‘‘(4) PROGRAM CONTENT.—A surface transpor-
tation research program shall include—
‘‘(A) fundamental, long-term highway re-
search;
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‘‘(B) research aimed at significant highway 
research gaps and emerging issues with na-
tional implications; and 
‘‘(C) research related to policy and plan-
ning. 
‘‘(5) STAKEHOLDER
INPUT.—Federal surface 
transportation research and development activities 
shall address the needs of stakeholders. Stakeholders 
include States, metropolitan planning organizations, 
local governments, the private sector, researchers, 
research sponsors, and other affected parties, includ-
ing public interest groups. 
‘‘(6) COMPETITION
AND
PEER
REVIEW.—Ex-
cept as otherwise provided in this Act, the Secretary 
shall award all grants, contracts, and cooperative 
agreements for research and development under this 
Act based on open competition and peer review of 
proposals. 
‘‘(7) PERFORMANCE
REVIEW
AND
EVALUA-
TION.—To the maximum extent practicable, all sur-
face 
transportation 
research 
and 
development 
projects shall include a component of performance 
measurement and evaluation. Performance measures 
shall be established during the proposal stage of a 
research and development project and shall, to the
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maximum extent possible, be outcome-based. All 
evaluations shall be made readily available to the 
public.’’. 
(c) PROCUREMENT FOR RESEARCH, DEVELOPMENT, 
AND
TECHNOLOGY
TRANSFER
ACTIVITIES.—Section 
502(b)(3) of such title (as redesignated by subsection (b) 
of this section) is amended to read as follows: 
‘‘(3) 
COOPERATION, 
GRANTS, 
AND
CON-
TRACTS.—The Secretary may carry out research, de-
velopment, and technology transfer activities related 
to transportation—
‘‘(A) independently; 
‘‘(B) in cooperation with other Federal de-
partments, agencies, and instrumentalities and 
Federal laboratories; or 
‘‘(C) by making grants to, or entering into 
contracts, cooperative agreements, and other 
transactions with one or more of the following: 
the National Academy of Sciences, the Amer-
ican Association of State Highway and Trans-
portation Officials, any Federal laboratory, 
Federal agency, State agency, authority, asso-
ciation, institution, for-profit or nonprofit cor-
poration, organization, foreign country, any 
other person.’’.
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(d) TRANSPORTATION POOLED FUND PROGRAM.—
Section 502(b) of such title (as redesignated by subsection 
(b) of this section), is amended by adding at the end the 
following: 
‘‘(6) POOLED FUNDING.—
‘‘(A) COOPERATION.—To promote effective 
utilization of available resources, the Secretary 
may cooperate with a State and an appropriate 
agency in funding research, development, and 
technology transfer activities of mutual interest 
on a pooled funds basis. 
‘‘(B) SECRETARY
AS
AGENT.—The Sec-
retary may enter into contracts, cooperative 
agreements, grants, and other transactions as 
agent for all participating parties in carrying 
out such research, development, or technology 
transfer.’’. 
(e) OPERATIONS ELEMENTS IN RESEARCH ACTIVI-
TIES.—Section 502 of such title is further amended—
(1) in subsection (b)(1)(B) (as redesignated by 
subsection (b) of this section) by inserting ‘‘trans-
portation system management and operations,’’ after 
‘‘operation,’’.
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(2) in subsection (d)(5)(C) (as redesignated by 
subsection (b) of this section) by inserting ‘‘system 
management and’’ after ‘‘transportation’’; and 
(3) by inserting at the end of subsection (d) (as 
redesignated by subsection (b) of this section) the 
following: 
‘‘(12) Investigation and development of various 
operational methodologies to reduce the occurrence 
and impact of recurrent congestion and nonrecurrent 
congestion and increase transportation system reli-
ability. 
‘‘(13) Investigation of processes, procedures, 
and technologies to secure container and hazardous 
material transport, including the evaluation of regu-
lations and the impact of good security practices on 
commerce and productivity. 
‘‘(14) Research, development, and technology 
transfer related to asset management.’’. 
(f) FACILITATING TRANSPORTATION RESEARCH AND 
TECHNOLOGY
DEPLOYMENT
PARTNERSHIPS.—Section 
502(c)(2) of such title (as redesignated by subsection (b) 
of this section) is amended to read as follows: 
‘‘(2) COOPERATION, GRANTS, CONTRACTS, AND 
AGREEMENTS.—Notwithstanding any other provision 
of law, the Secretary may directly initiate contracts,
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cooperative research and development agreements 
(as defined in section 12 of the Stevenson-Wydler 
Technology Innovation Act of 1980 (15 U.S.C. 
3710a)), and other transactions to fund, and accept 
funds from, the Transportation Research Board of 
the National Research Council of the National Acad-
emy of Sciences, State departments of transpor-
tation, cities, counties, and their agents to conduct 
joint transportation research and technology ef-
forts.’’. 
(g) EXPLORATORY
ADVANCED
RESEARCH
PRO-
GRAM.—Section 502(e) of such title (as redesignated by 
subsection (b) of this section) is amended to read as fol-
lows: 
‘‘(e) EXPLORATORY ADVANCED RESEARCH.—
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish an exploratory advanced research program, con-
sistent with the surface transportation research and 
technology development strategic plan developed 
under section 508 that involves and draws upon 
basic research results to provide a better under-
standing of problems and develop innovative solu-
tions. In carrying out the program, the Secretary 
shall strive to develop partnerships with public and 
private sector entities.
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‘‘(2) RESEARCH AREAS.—In carrying out the 
program, the Secretary may make grants and enter 
into cooperative agreements and contracts in such 
areas of surface transportation research and tech-
nology as the Secretary determines appropriate, in-
cluding the following: 
‘‘(A) Characterization of materials used in 
highway infrastructure, including analytical 
techniques, microstructure modeling, and the 
deterioration processes. 
‘‘(B) Assessment of the effects of transpor-
tation decisions on human health. 
‘‘(C) Development of surrogate measures 
of safety. 
‘‘(D) Environmental research. 
‘‘(E) Data acquisition techniques for sys-
tem condition and performance monitoring. 
‘‘(F) System performance data and infor-
mation processing needed to assess the day-to-
day operational performance of the system in 
support of hour-to-hour operational decision-
making.’’. 
(h) LONG-TERM PAVEMENT PERFORMANCE PRO-
GRAM.—