Union Calendar No. 195
103D CONGRESS
1ST SESSION
H. R. 2121
[Report No. 103–359]
A BILL
To amend title 49, United States Code, relating to
procedures for resolving claims involving unfiled,
negotiated transportation rates, and for other
purposes.
NOVEMBER 15, 1993
Reported with an amendment, committed to the Commit-
tee of the Whole House on the State of the Union, and
ordered to be printed
IB
Union Calendar No. 195
103D CONGRESS
1ST SESSION
H. R. 2121
[Report No. 103–359]
To amend title 49, United States Code, relating to procedures for resolving
claims involving unfiled, negotiated transportation rates, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 13, 1993
Mr. MINETA (for himself and Mr. SHUSTER) introduced the following bill;
which was referred to the Committee on Public Works and Transportation
AUGUST 23, 1993
Additional sponsors: Mr. TRAFICANT, Mr. VALENTINE, Mr. PETE GEREN of
Texas, Mr. POSHARD, Mr. DE LUGO, Mr. BARCIA of Michigan, Mr. COP-
PERSMITH, Mr. MONTGOMERY, Mr. SISISKY, Mr. PETRI, Mr. BEREUTER,
Mr. INHOFE, Mr. GILCHREST, Mr. CLINGER, Mr. HOEKSTRA, Mr.
HUTCHINSON, Mr. BLUTE, Mr. HYDE, Mr. KIM, Mr. EWING, Mr. BAR-
LOW, Mr. CLEMENT, Mr. TUCKER, Mr. BALLENGER, Ms. DUNN, Mr.
LEVY, Mr. MCCRERY, Mr. BURTON of Indiana, Mr. MAZZOLI, Mr.
PARKER, Mr. EVERETT, Mr. BEVILL, Mr. DINGELL, Mr. SUNDQUIST,
Mr. GILLMOR, Mr. EMERSON, Mr. MCKEON, Mr. DARDEN, Mr. SLAT-
TERY, Mr. HASTERT, Mr. WALKER, Mr. LEWIS of Florida, Mr. HUGHES,
Mr. BORSKI, Mr. COLLINS of Georgia, Mr. DEAL, Mr. DORNAN, Mr.
COBLE, Mr. BACHUS of Alabama, Mr. WHITTEN, Mr. CAMP, Mr. PAYNE
of Virginia, Mr. GRANDY, Mr. ENGLISH of Oklahoma, Mr. THORNTON,
Mr. MOORHEAD, Mr. BAKER of California, Ms. BROWN of Florida, Mr.
PETERSON of Minnesota, Mr. KING, Mr. RAMSTAD, Mr. LAUGHLIN, Mr.
BOUCHER, Mr. BREWSTER, Mr. CRAMER, Ms. SHEPHERD, Mr. GLICK-
MAN, Ms. ESHOO, Mr. HUTTO, Mr. HALL of Texas, Mr. LANCASTER,
Mrs. MINK, Mr. PENNY, Mr. ROWLAND, Mr. OBEY, Mr. MURPHY, Mr.
CHAPMAN, Mr. TAYLOR of North Carolina, Mr. CALLAHAN, Mr. OXLEY,
Mr. DICKEY, Mr. ROBERTS, Mr. UPTON, Mr. BARTON of Texas, Mr.
MANZULLO, Mr. ROTH, Mr. KNOLLENBERG, Mr. QUINN, Mr. LIGHT-
FOOT, Mr. LEACH, Mr. FAWELL, Mr. BOEHNER, Mr. GINGRICH, Mr.
GOSS, Mr. HOKE, Mr. KINGSTON, Mr. MYERS of Indiana, Mr. BUNNING,
Mr. SCHIFF, Mr. FALEOMAVAEGA, Mr. STENHOLM, Mr. BARRETT of Wis-
consin, Mr. JOHNSON of South Dakota, Mr. CONDIT, Mr. SYNAR, Mr.
YATES, Mr. POMEROY, Mr. HEGER, Mr. HOUGHTON, Mr. CANADY, Mr.
PACKARD, Mr. CUNNINGHAM, Mr. HANCOCK, Mr. WOLF, Mr. LINDER,
Mr. COX, Mr. KYL, Mr. LIVINGSTON, Mr. MICA, Mr. SHAYS, Mr. PRICE
of North Carolina, Mr. PAXON, Mr. GOODLATTE, Ms. PRYCE of Ohio,
Mr. RICHARDSON, Mr. WILLIAMS, Mr. MCHUGH, Ms. FURSE, Mr.
KREIDLER, Mr. GALLO, Mr. PORTMAN, Mr. BARCA of Wisconsin, Mr.
SARPALIUS, Mr. BOEHLERT, Mr. PAYNE of New Jersey, Mr. TAYLOR of
Mississippi, Mr. STUMP, Mr. PETERSON of Florida, Mr. HORN, Mr. SEN-
SENBRENNER, Mr. CALVERT, Mr. SHAW, Mr. CASTLE, Mr. SMITH of Or-
egon, Mr. BONILLA, Mr. MARKEY, Ms. SCHENK, Mr. HUNTER, Mrs.
MEYERS of Kansas, Mr. PORTER, Mrs. JOHNSON of Connecticut, Ms.
LAMBERT, Mr. EDWARDS of Texas, Mr. NEAL of Massachusetts, Mr.
QUILLEN, Mr. KOLBE, Mr. FISH, Mr. BACCHUS of Florida, Mr. THOMP-
SON, Mr. INGLIS of South Carolina, Mr. BLILEY, Mr. TANNER, Mr.
CRAPO, Mr. ANDREWS of Texas, Mr. SMITH of Iowa, Mr. REGULA, Mr.
GUNDERSON, Mr. GEKAS, Mrs. FOWLER, Mr. JOHNSON of Georgia, Ms.
PELOSI, Mr. HINCHEY, Mr. MACHTLEY, Mr. GALLEGLY, Mr. LAZIO, Mr.
MCMILLAN, and Mr. BARRETT of Nebraska
NOVEMBER 15, 1993
Additional sponsors: Mr. RAVENEL, Mr. BROWDER, Ms. MOLINARI, Mr. MIL-
LER of Florida, Mr. TALENT, Mr. MCCOLLUM, Mr. RUSH, Mr. DUNCAN,
Mr. KLUG, Mrs. MORELLA, Mr. ZIMMER, Mr. HOBSON, Mr. SMITH of
Texas, Mr. SAM JOHNSON of Texas, Mr. BATEMAN, Mr. SCHAEFER, Ms.
MARGOLIES-MEZVINSKY, Mr. JOHNSTON of Florida, Mr. BAKER of Lou-
isiana, Mr. ORTIZ, Mrs. VUCANOVICH, Mr. WALSH, Mr. WYNN, Mrs.
THURMAN, Ms. LONG, Mr. BISHOP, Mr. BROWN of Ohio, Mr. NEAL of
North Carolina, Mr. SOLOMON, Mr. ROYCE, Mr. WHEAT, Mr.
ROHRABACHER, Mr. KANJORSKI, Mr. COMBEST, Mr. TORKILDSEN, Mr.
GREENWOOD, Mr. TOWNS, Mr. ANDREWS of New Jersey, Mr. GORDON,
Mr. FIELDS of Texas, Mr. SPENCE, Mrs. LOWEY, Mr. FRANK of Massa-
chusetts, Mr. ALLARD, Mr. GILMAN, Mr. MICHEL, Mr. BILIRAKIS, Mr.
POMBO, Mr. FINGERHUT, Mr. THOMAS of Wyoming, Mr. ZELIFF, Mr.
STEARNS, Mr. FRANKS of New Jersey, and Mr. ENGEL
NOVEMBER 15, 1993
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on May 13, 1993]
A BILL
To amend title 49, United States Code, relating to proce-
dures for resolving claims involving unfiled, negotiated
transportation rates, 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 ‘‘Negotiated Rates Act
of 1993’’.
SEC. 2. PROCEDURES FOR RESOLVING CLAIMS INVOLVING
UNFILED, 
NEGOTIATED 
TRANSPORTATION
RATES.
(a) IN GENERAL.—Section 10701 of title 49, United
States Code, is amended by adding at the end the following:
‘‘(f) PROCEDURES FOR RESOLVING CLAIMS INVOLVING
UNFILED, NEGOTIATED TRANSPORTATION RATES.—
‘‘(1) IN GENERAL.—When a claim is made by a
motor carrier of property (other than a household
goods carrier) providing transportation subject to the
jurisdiction of the Commission under subchapter II of
chapter 105 of this title, by a freight forwarder (other
than a household goods freight forwarder), or by a
party representing such a carrier or freight forwarder
regarding the collection of rates or charges for such
transportation in addition to those originally billed
and collected by the carrier or freight forwarder for
such transportation, the person against whom the
claim is made may elect to satisfy the claim under
the provisions of paragraph (2), (3), or (4) of this
subsection, upon showing that—
‘‘(A) the carrier or freight forwarder is no
longer transporting property or is transporting
property for the purpose of avoiding the applica-
tion of this subsection; 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 Commission for the transportation serv-
ice;
‘‘(ii) the person tendered freight to the
carrier or freight forwarder in reasonable
reliance upon the offered transportation
rate;
‘‘(iii) the carrier or freight forwarder
did not properly or timely file with the
Commission a tariff providing for such
transportation rate or failed to enter into
an agreement for contract carriage;
‘‘(iv) such transportation rate was
billed and collected by the carrier or freight
forwarder; and
‘‘(v) the carrier or freight forwarder
demands additional payment of a higher
rate filed in a tariff.
If there is a dispute as to the showing under subpara-
graph (A), such dispute shall be resolved by the court
in which the claim is brought. If there is a dispute
as to the showing under subparagraph (B), such dis-
pute shall be resolved by the Commission. Pending the
resolution of any such dispute, the person shall not
have to pay any additional compensation to the car-
rier or freight forwarder. Satisfaction of the claim
under paragraph (2), (3), or (4) of this subsection
shall be binding on the parties, and the parties shall
not be subject to chapter 119 of this title.
‘‘(2) CLAIMS INVOLVING SHIPMENTS WEIGHING
10,000 POUNDS OR LESS.—A person from whom the
additional legally applicable and effective tariff rate
or charges are sought may elect to satisfy the claim
if the shipments each weighed 10,000 pounds or less,
by payment of 20 percent of the difference between the
carrier’s applicable and effective tariff rate and the
rate originally billed and paid. In the event that a
dispute arises as to the rate that was legally applica-
ble to the shipment, such dispute shall be resolved by
the Commission.
‘‘(3) CLAIMS INVOLVING SHIPMENTS WEIGHING
MORE THAN 10,000 POUNDS.—A person from whom the
additional legally applicable and effective tariff rate
or charges are sought may elect to satisfy the claim
if the shipments each weighed more than 10,000
pounds, by payment of 15 percent of the difference be-
tween 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 Commission.
‘‘(4) CLAIMS
INVOLVING
PUBLIC
WAREHOUSE-
MEN.—Notwithstanding paragraphs (2) and (3), a
person from whom the additional legally applicable
and effective tariff rate or charges are sought may
elect to satisfy the claim by payment of 5 percent of
the difference between the carrier’s applicable and ef-
fective tariff rate and the rate originally billed and
paid if such person is a public warehouseman. In the
event that a dispute arises as to the rate that was le-
gally applicable to the shipment, such dispute shall be
resolved by the Commission.
‘‘(5) EFFECTS
OF
ELECTION.—When a person
from whom additional legally applicable freight rates
or charges are sought does not elect to use the provi-
sions of paragraph (2), (3), or (4), the person may
pursue all rights and remedies existing under this
title.
‘‘(6) STAY
OF
ADDITIONAL
COMPENSATION.—
When a person proceeds under this section to chal-
lenge the reasonableness of the legally applicable
freight rate or charges being claimed by a carrier or
freight forwarder described in paragraph (1) in addi-
tion to those already billed and collected, the person
shall not have to pay any additional compensation to
the carrier or freight forwarder until the Commission
has made a determination as to the reasonableness of
the challenged rate as applied to the freight of the per-
son against whom the claim is made.
‘‘(7) LIMITATION
ON
STATUTORY
CONSTRUC-
TION.—Except as authorized in paragraphs (2), (3),
(4), and (9) of this subsection, nothing in this sub-
section shall relieve a motor common carrier of the
duty to file and adhere to its rates, rules, and classi-
fications as required in sections 10761 and 10762 of
this title.
‘‘(8) NOTIFICATION OF ELECTION.—
‘‘(A) GENERAL RULE.—A person must no-
tify the carrier or freight forwarder as to its elec-
tion to proceed under paragraph (2), (3), or (4).
Except as provided in subparagraphs (B), (C),
and (D), such election may be made at any time.
‘‘(B) DEMANDS
FOR
PAYMENT
INITIALLY
MADE AFTER DATE OF ENACTMENT.—If the car-
rier or freight forwarder or party representing
such carrier or freight forwarder initially de-
mands the payment of additional freight charges
after the date of the enactment of this subsection
and notifies the person from whom additional
freight charges are sought of the provisions of
paragraphs (1) through (7) at the time of the
making of such initial demand, the election must
be made not later than the later of—
‘‘(i) the 60th day following the filing of
an answer to a suit for the collection of such
additional legally applicable freight rate or
charges, or
‘‘(ii) the 90th day following the date of
the enactment of this subsection.
‘‘(C) PENDING
SUITS
FOR
COLLECTION
MADE BEFORE OR ON DATE OF ENACTMENT.—If
the carrier or freight forwarder or party rep-
resenting such carrier or freight forwarder has
filed, before or on the date of the enactment of
this subsection, a suit for the collection of addi-
tional freight charges and notifies the person
from whom additional freight charges are sought
of the provisions of paragraphs (1) through (7),
the election must be made not later than the 90th
day following the date on which such notification
is received.
‘‘(D) DEMANDS
FOR
PAYMENT
MADE
BE-
FORE OR ON DATE OF ENACTMENT.—If the car-
rier or freight forwarder or party representing
such carrier or freight forwarder has demanded
the payment of additional freight charges, and
has not filed a suit for the collection of such ad-
ditional freight charges, before or on the date of
the enactment of this subsection and notifies the
person from whom additional freight charges are
sought of the provisions of paragraphs (1)
through (7), the election must be made not later
than the later of—
‘‘(i) the 60th day following the filing of
an answer to a suit for the collection of such
additional legally applicable freight rate or
charges, or
‘‘(ii) the 90th day following the date of
the enactment of this subsection.
‘‘(9) CLAIMS INVOLVING SMALL-BUSINESS CON-
CERNS, CHARITABLE ORGANIZATIONS, AND RECYCLA-
BLE
MATERIALS.—Notwithstanding paragraphs (2),
(3), and (4), a person from whom the additional le-
gally 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.),
‘‘(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, as defined in section 10733.’’.
(b) CONFORMING AMENDMENT.—Subsection (e) of such
section is amended by striking ‘‘In’’ and inserting ‘‘Except
as provided in subsection (f), in’’.
(c) APPLICABILITY.—The amendments made by sub-
sections (a) and (b) of this section shall apply to all claims
pending as of the date of the enactment of this Act and
to all claims arising from transportation shipments ten-
dered on or before the last day of the 24-month period begin-
ning on such date of enactment.
(d) REPORT.—Not later than 18 months after the date
of the enactment of this Act, the Interstate Commerce Com-
mission shall transmit to Congress a report regarding
whether there exists a justification for extending the appli-
cability of amendments made by subsections (a) and (b) of
this section beyond the period specified in subsection (c).
(e) ALTERNATIVE PROCEDURE FOR RESOLVING DIS-
PUTES.—
(1) GENERAL
RULE.—For purposes of section
10701 of title 49, United States Code, it shall be an
unreasonable practice for a motor carrier of property
(other than a household goods carrier) providing
transportation subject to the jurisdiction of the Com-
mission under subchapter II of chapter 105 of such
title, a freight forwarder (other than a household
goods freight forwarder), or a party representing such
a carrier or freight forwarder to attempt to charge or
to charge for a transportation service provided before
September 30, 1990, the difference between the appli-
cable rate that is lawfully in effect pursuant to a tar-
iff that is filed in accordance with chapter 107 of
such title by the carrier or freight forwarder applica-
ble to such transportation service and the negotiated
rate for such transportation service if the carrier or
freight forwarder is no longer transporting property
between places described in section 10521(a)(1) of
such title or is transporting property between places
described in section 10521(a)(1) of such title for the
purpose of avoiding the application of this subsection.
(2) JURISDICTION OF COMMISSION.—The Com-
mission shall have jurisdiction to make a determina-
tion of whether or not attempting to charge or the
charging of a rate by a motor carrier or freight for-
warder or party representing a motor carrier or
freight forwarder is an unreasonable practice under
paragraph (1). If the Commission determines that at-
tempting to charge or the charging of the rate is an
unreasonable practice under paragraph (1), the car-
rier, freight forwarder, or party may not collect the
difference described in paragraph (1) between the ap-
plicable rate and the negotiated rate for the transpor-
tation service. In making such determination, the
Commission 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
Commission 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 forwarder
did not properly or timely file with the Commis-
sion a tariff providing for such transportation
rate or failed to enter into an agreement for con-
tract carriage;
(D) whether the transportation rate was
billed and collected by the carrier or freight for-
warder; and
(E) whether the carrier or freight forwarder
or party demands additional payment of a high-
er rate filed in a tariff.
(3) STAY OF ADDITIONAL COMPENSATION.—When
a person proceeds under this subsection to challenge
the reasonableness of the practice of a motor carrier,
freight forwarder, or party described in paragraph
(1) to attempt to charge or to charge the difference de-
scribed in paragraph (1) between the applicable rate
and the negotiated rate for the transportation service
in addition to those charges already billed and col-
lected for the transportation service, the person shall
not have to pay any additional compensation to the
carrier, freight forwarder, or party until the Commis-
sion has made a determination as to the reasonable-
ness of the practice as applied to the freight of the
person against whom the claim is made.
(4) TREATMENT.—Paragraph (1) of this sub-
section is enacted as an exception, and shall be treat-
ed as an exception, to the requirements of sections
10761(a) and 10762 of title 49, United States Code,
relating to a filed tariff rate for a transportation or
service subject to the jurisdiction of the Commission
and other general tariff requirements.
(5) NONAPPLICABILITY
OF
NEGOTIATED
RATE
DISPUTE
RESOLUTION
PROCEDURE.—If a person
elects to seek enforcement of paragraph (1) with re-
spect to a rate for a transportation or service, section
10701(f) of title 49, United States Code, as added by
subsection (a) of this section, shall not apply to such
rate.
(6) DEFINITIONS.—For purposes of this sub-
section, the following definitions apply:
(A) 
COMMISSION, 
HOUSEHOLD
GOODS,
HOUSEHOLD GOODS FREIGHT FORWARDER, AND
MOTOR
CARRIER.—The terms ‘‘Commission’’,
‘‘household goods’’, ‘‘household goods freight for-
warder’’, and ‘‘motor carrier’’ have the meaning
such terms have under section 10102 of title 49,
United States Code.
(B) NEGOTIATED RATE.—The term ‘‘nego-
tiated rate’’ means a rate, charge, classification,
or rule agreed upon by a motor carrier or freight
forwarder described in paragraph (1) and a
shipper through negotiations pursuant to which
no tariff was lawfully and timely filed with the
Commission and for which there is written evi-
dence of such agreement.
(f) PRIOR SETTLEMENTS AND ADJUDICATIONS.—Any
claim that, but for this subsection, would be subject to any
provision of this Act (including any amendment made by
this Act) and that was settled by mutual agreement of the
parties to such claim, or resolved by a final adjudication
of a Federal or State court, before the date of the enactment
of this Act shall be treated as binding, enforceable, and not
contrary to law, unless such settlement was agreed to as
a result of fraud or coercion.
(g) RATE REASONABLENESS.—Section 10701(e) of
title 49, United States Code, is amended by adding at the
end the following: ‘‘Any complaint brought against a motor
carrier (other than a carrier described in subsection
(f)(1)(A)) by a person (other than a motor carrier) for un-
reasonably high rates for past or future transportation shall
be determined under this subsection.’’.
SEC. 3. STATUTE OF LIMITATIONS.
(a) MOTOR CARRIER CHARGES.—Section 11706(a) of
title 49, United States Code, is amended by striking the
period at the end and inserting the following: ‘‘; except that
a motor carrier (other than a motor carrier providing
transportation of household goods) or freight forwarder
(other than a household goods freight forwarder)—
‘‘(1) must begin such a civil action within 2
years after the claim accrues if the transportation or
service is provided by the carrier in the 1-year period
beginning on the date of the enactment of the Nego-
tiated Rates Act of 1993; and
‘‘(2) must begin such a civil action within 18
months after the claim accrues if the transportation
or service is provided by the carrier after the last day
of such 1-year period.’’.
(b) 
MOTOR
CARRIER
OVERCHARGES.—Section
11706(b) of title 49, United States Code, is amended by
striking ‘‘. If that claim is against a common carrier’’ and
inserting the following: ‘‘; except that a person must begin
a civil action to recover overcharges from a motor carrier
subject to the jurisdiction of the Commission under sub-
chapter II of chapter 105 of this title for transportation
or service—
‘‘(1) within 2 years after the claim accrues if
such transportation or service is provided in the 1-
year period beginning on the date of the enactment of
the Negotiated Rate Act of 1993; and
‘‘(2) within 18 months after the claim accrues if
such transportation or service is provided after the
last day of such 1-year period.
If the claim is against a common carrier’’.
(c) CONFORMING AMENDMENT.—Section 11706(d) of
title 49, United States Code, is amended—
(1) by striking ‘‘3-year period’’ each place it ap-
pears and inserting ‘‘limitation periods’’;
(2) by striking ‘‘is extended’’ the first place it
appears and inserting ‘‘are extended’’; and
(3) by striking ‘‘each’’.
SEC. 4. TARIFF RECONCILIATION RULES FOR MOTOR CAR-
RIERS OF PROPERTY.
(a) IN GENERAL.—Chapter 117 of title 49, United
States Code, is amended by adding at the end the following:
‘‘§ 11712. Tariff reconciliation rules for motor com-
mon carriers of property
‘‘(a) MUTUAL CONSENT.—Subject to Commission re-
view and approval, motor carriers subject to the jurisdic-
tion of the Commission under subchapter II of chapter 105
of this title (other than motor carriers providing transpor-
tation of household goods) and shippers may resolve, by mu-
tual consent, overcharge and undercharge claims resulting
from incorrect tariff provisions or billing errors arising
from the inadvertent failure to properly and timely file and
maintain agreed upon rates, rules, or classifications in
compliance with sections 10761 and 10762 of this title. Res-
olution of such claims among the parties shall not subject
any party to the penalties of chapter 119 of this title.
‘‘(b) LIMITATION ON STATUTORY CONSTRUCTION.—
Nothing in this section shall relieve the motor carrier of
the duty to file and adhere to its rates, rules, and classifica-
tions as required in sections 10761 and 10762, except as
provided in subsection (a) of this section.
‘‘(c) RULEMAKING PROCEEDING.—Not later than 90
days after the date of the enactment of this section, the Com-
mission shall institute a proceeding to establish rules pursu-
ant to which the tariff requirements of sections 10761 and
10762 of this title shall not apply under circumstances de-
scribed in subsection (a) of this section.’’.
(b) CONFORMING
AMENDMENT.—The analysis for
chapter 117 of title 49, United States Code, is amended by
adding at the end the following:
‘‘11712. Tariff reconciliation rules for motor common carriers of property.’’.
SEC. 5. CUSTOMER ACCOUNT CODES AND RANGE TARIFFS.
(a) CUSTOMER ACCOUNT CODES.—Section 10762 of
title 49, United States Code, is amended by adding at the
end the following:
‘‘(h) CUSTOMER ACCOUNT CODES.—No tariff filed by
a motor carrier of property with the Commission before,
on, or after the date of the enactment of this subsection may
be held invalid solely on the basis that a numerical or alpha
account code is used in such tariff to designate customers
or to describe the applicability of rates. For transportation
performed on and after the 180th day following such date
of enactment, the name of the customer for each account
code must be set forth in the tariff (other than the tariff
of a motor carrier providing transportation of household
goods).’’.
(b) RANGE TARIFFS.—Such section is further amended
by adding at the end the following:
‘‘(i) RANGE TARIFFS.—No tariff filed by a motor car-
rier of property with the Commission before, on, or after
the date of the enactment of this subsection may be held
invalid solely on the basis that the tariff does not show a
specific rate or discount for a specific shipment if the tariff
is based on a range of rates or discounts for specific classes
of shipments. For transportation performed on or after the
180th day following such date of enactment, such a range
tariff must identify the specific rate or discount from
among the range of rates or discounts contained in such
range tariff which is applicable to each specific shipment
or must contain an objective means for determining the
rate.’’.
SEC. 6. CONTRACTS OF MOTOR CONTRACT CARRIERS.
(a) IN GENERAL.—Section 10702 of title 49, United
States Code, is amended by adding at the end the following
new subsection:
‘‘(c) CONTRACTS OF CARRIAGE FOR MOTOR CONTRACT
CARRIERS.—
‘‘(1) GENERAL RULE.—A motor contract carrier
providing transportation subject to the jurisdiction of
the Commission under subchapter II of chapter 105
of this title shall enter into a written agreement, sepa-
rate from the bill of lading or receipt, for each con-
tract for the provision of transportation subject to
such jurisdiction which is entered into after the 90th
day following the date of the enactment of this sub-
section.
‘‘(2) MINIMUM
CONTENT
REQUIREMENTS.—The
written agreement shall, at a minimum—
‘‘(A) identify the parties thereto;
‘‘(B) commit the shipper to tender and the
carrier to transport a series of shipments;
‘‘(C) contain the contract rate or rates for
the transportation service to be or being pro-
vided; and
‘‘(D)(i) state that it provides for the assign-
ment of motor vehicles for a continuing period of
time for the exclusive use of the shipper; or
‘‘(ii) state that it provides that the service
is designed to meet the distinct needs of the ship-
per.
‘‘(3) RETENTION
BY
CARRIER.—All written
agreements entered into by a motor contract carrier
under paragraph (1) shall be retained by the carrier
while in effect and for a minimum period of 3 years
thereafter and shall be made available to the Commis-
sion upon request.
‘‘(4) RANDOM
AUDITS
BY
COMMISSION.—The
Commission shall conduct periodic random audits to
ensure that motor contract carriers are complying
with this subsection and are adhering to the rates set
forth in their agreements.’’.
(b) CIVIL PENALTY.—Section 11901(g) of such title is
amended—
(1) by inserting ‘‘or enter into or retain a writ-
ten agreement under section 10702(c) of this title’’
any person other than (1) the person paying the motor car-
rier directly for the transportation service according to the
bill of lading, receipt, or contract, or (2) an agent of the
person paying for the transportation.
‘‘(b) DISCLOSURE OF ACTUAL RATES, CHARGES, AND
ALLOWANCES.—The regulations of the Commission issued
pursuant to this section shall require a motor carrier to
disclose, when a document is presented or transmitted elec-
tronically for payment to the person responsible directly to
the motor carrier for payment or agent of such responsible
person, the actual rates, charges, or allowances for the
transportation service and shall prohibit any person from
causing a motor carrier to present false or misleading infor-
mation on a document about the actual rate, charge, or al-
lowance to any party to the transaction. Where 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 for the payment that a reduction,
allowance, or other adjustment may apply.
‘‘(c) PAYMENTS OR ALLOWANCES FOR CERTAIN SERV-
ICES.—The regulations issued by the Commission pursuant
to this section shall not prohibit a motor carrier from mak-
ing payments or allowances to a party to the transaction
for services that would otherwise be performed by the motor
carrier, such as a loading or unloading service, if the pay-
ments or allowances are reasonably related to the cost that
such party knows or has reason to know would otherwise
be incurred by the motor carrier.’’.
(b) CONFORMING AMENDMENT.—The analysis for such
subchapter is amended by adding at the end the following
new item:
‘‘10767. Billing and collecting practices.’’.
(c) VIOLATION.—
(1) IN GENERAL.—Section 11901 of such title is
amended by redesignating subsection (l) as subsection
(m) and by inserting after subsection (k) the follow-
ing:
‘‘(l) RATE DISCOUNTS.—A person, or an officer, em-
ployee, or agent of that person, that knowingly pays, ac-
cepts, or solicits a reduced rate or rates in violation of the
regulations issued under section 10767 of this title is liable
to the United States for a civil penalty of not less than
$5,000 and not more than $10,000 plus 3 times the amount
of damages which a party incurs because of such violation.
Notwithstanding any other provision of this title, the ex-
press civil penalties and damages provided for in this sub-
section are the exclusive legal sanctions to be imposed under
this title for practices found to be in violation of the regula-
tions issued under section 10767 and such violations do not
render tariff or contract provisions void or unenforceable.’’.
(2) VENUE.—Section 11901(m)(2) of such title
(as redesignated by paragraph (1)) is amended by
striking ‘‘or (k)’’ and inserting ‘‘(k), or (l)’’.
SEC. 8. RESOLUTION OF DISPUTES RELATING TO CON-
TRACT OR COMMON CARRIER CAPACITIES.
Section 11101 of title 49, United States Code, is
amended by adding at the end the following:
‘‘(d) RESOLUTION OF DISPUTES RELATING TO CON-
TRACT OR COMMON CARRIER CAPACITIES.—If a motor car-
rier (other than a motor carrier providing transportation
of household goods) subject to the jurisdiction of the Com-
mission under subchapter II of chapter 105 of this title has
authority to provide transportation as both a motor com-
mon carrier and a motor contract carrier and a dispute
arises as to whether certain transportation is provided in
its common carrier or contract carrier capacity and the
parties are not able to resolve the dispute consensually, the
Commission shall have jurisdiction to, and shall, resolve the
dispute.’’.
SEC. 9. LIMITATION ON STATUTORY CONSTRUCTION.
‘‘Nothing in this Act (including any amendment made
by this Act) shall be construed as limiting or otherwise af-
fecting application of title 11, United States Code, relating
to bankruptcy; title 28, United States Code, relating to the
jurisdiction of the courts of the United States (including
bankruptcy courts); or the Employee Retirement Income
Security Act of 1974.’’
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